MKT 3360 - Exam 1 practice questions

17. The first step in determining the minimum customer size on which the sales force should call is to calculate the:

cost per sales call.

44. In the selling process, which of the following activities would occur first (before all the others):

determining customer needs.

66. Relatively smaller territories and reduced travel time and expenses are advantages related to which organizational approach?

Geographical

31. Which of the following is likely to be associated with a request for proposal (RFP)?

a set of product specifications

67. A company is considering whether to hire independent agents or develop its own salesforce. Agents are paid a 4% commission, alternatively a company sales force would consist of 6 people paid a $25,000 salary each along with a 2% commission. A company sales force is economically viable if sales are forecasted to be:

above $7,500,000.

65. One common concern by manufacturers who use independent agents is:

agents not devoting enough of their time to selling your product.

63. J&J Medical has over 100 operating units producing products such as orthopedic implants, pharmaceuticals, and sutures. Based on this information, how is their sales force most likely to be organized?

along product lines

19. Although portfolio models offer several benefits over single factor models, a problem that still remains is:

the lack of an optimal solution to the allocation of sales calls.

29. User buyers are most likely to be concerned with which of the following issues?

the operational advantages of the purchase

Given the following information: Compensation - $90,000 Direct Communications - $5,000 Automobile - $7,000 Meals & entertainment - $6,000 Overhead - $12,000 Promotional materials - $10,000 Calls per day - 5 Profit margin - 10% Net selling days - 200 20. The average cost per call is:

$118.00

15. In order for a prospect to be a qualified lead a salesperson must gather information about whether the prospect has:

- a genuine need for the product or service. - the buying authority to purchase the product or service. - the financial resources to purchase the product or service.

33. When selling to an economic buying influence such as a chief executive officer, salespeople are likely to do which of the following?

- emphasize the contract's financial consequences for the organization - discuss how the deal would improve the firm's competitive position - discuss how corporate wide contracts can reduce costs per unit to the buyer

61. Typical issues requiring coordination between the sales force and customer service include:

- equipment installation - warranty servicing - customer training on equipment

16. A customer demographic that might be used in building a prospect profile might include:

- geographic location - size of business

47. Written sales proposals have the following advantage:

- less chance of misunderstanding because both parties do not have to rely on memory. - improve communication to buying or executive committees. - durability that allows multiple readings and evaluations.

45. Written sales proposals should discuss which of the following?

- reasons for changing something - the incentives for changing - confirm the confidence to invest in a solution - lay out the solution

41. Before meeting with a prospect, which of the following may be an important source of information:

- the prospect's business facilities. - other salespeople. - current customers. - the internet

18. A viable approach to addressing the problem of customers who are too small to order generate enough sales volume to exceed the break-even sales volume is:

- to increase prices to these customers. - to decrease the number of calls made on these customers. - to have brokers call on these customers.

62. Which form of sales force organization is expected to increase in popularity the most over the next five years?

Customer

10. Research has shown that the number of calls required to close a sale is about the same regardless of the type of product or service being sold.

False

11. The ABC account classification procedure typically considers multiple factors when determining customer value.

False

12. A sales response function generally indicates that a salesperson can always increase the sales volume of an account by calling on it more often.

False

14. It is not necessary to calculate the minimum account size when a sale is assured.

False

2. In general, the field sales manager's job is limited to sales forecasting and budgeting, training, and motivating sales personnel.

False

22. The purchasing practice of utilizing supplier tiers is becoming a less popular practice.

False

3. The advantage of advertising and sales promotion over other elements of the promotion mix is that they involve two-way communication.

False

35. According to the findings of a study comparing successful with less successful salespeople, successful people will open the selling process by focusing on product benefits.

False

4. Advertising is generally more effective than personal selling in closing the sale.

False

49. A simple geographic organization of a sales force generally works best when the product line is fairly broad and complex.

False

5. As a result of cutting out the middle man to reduce costs and prices, the number of channels through which consumer products can be sold has decreased in recent years.

False

52. Multiple salespeople calling on the same customer is one of the drawbacks to customer specialization type of sales force organization.

False

56. Working with a telemarketing sales force is generally welcomed by the outside sales force.

False

32. When a customer views the supplier as a critical to the customer's competitive position, then the supplier would most likely be considered a ___________ supplier?

Partner

30. Which of the following buying center people is concerned with the product's specs, is focused on the present, is most likely to ask what a product does?"

Technical Buying Influence

8. The minimum size customer that a salesperson should call on is closely related to the cost of making a sales call.

True

9. Break-even sales volume is the sales volume necessary to cover all direct selling expenses.

True

1. Recent advances in technology have created an explosion of new sales and service channels.

True

13. Customer Lifetime Value (CLV) uses an estimate of a customer's future sales.

True

21. The first stage of the typical purchasing process in organizations is to recognize that a need exists.

True

23. The Economic Buyer controls the money to make a purchase.

True

24. It is possible for one person to function in the roles of being the user, economic, and technical buyer for a particular purchase.

True

25. The role of the user buyer is to determine the impact of the purchase on the job in which the product is used.

True

26. A Technical buyer influence's primary focus in the purchasing process is on product or service specifications.

True

27. A excellent way to identify a good sales advocate is to listen for the name of the person that other people in the buying center frequently mention.

True

28. Value analysis focuses on the relative costs of providing a necessary function or service.

True

34. An example of a problem-solution type of selling process is when clients pay EDS to perform an extended study of their information needs before recommending an information system.

True

36. Direct marketing organizations such as Mary Kay Cosmetics and Cutco usually train their salespeople to use a standardized type of sales presentation.

True

37. Compared to less successful salespeople, very successful salespeople are more likely to use referrals from present customers to identify prospects.

True

38. When engaging in an enterprise type customer relationship, it is typical for 80% or more of the selling time to focus on needs discovery.

True

39. It is usually necessary to establish rapport prior to engaging in customer needs analysis.

True

40. Many salespeople are reluctant to close — the major reason being fear of rejection.

True

48. Executives generally expect more and more sales forces to be organized according to the type of customer.

True

50. One of most serious problems with geographical organizations is that salespeople must sell the entire line, when they may not be equally knowledgeable about all product lines.

True

51. One of the problems with organizing your company's sales force as generalists is that salespeople have a great deal of latitude to decide which products to emphasize.

True

53. One benefit of a customer specialized sales force is that they are able to be very knowledgeable about their clients and the clients' industry.

True

54. An example of a functional specialist type sales organization is to have new customer and retention specialists.

True

55. A strategic account program is essentially an effort to provide the kinds of services and products necessary to establish a long-term relationship with key customers.

True

57. If a company's objective is to minimize total sales force costs, then a generalist sales force structure is the best option for organizing your sales force.

True

58. It is not uncommon for firms to turn to independent sales agents to develop new markets.

True

59. Independent sales agents are almost always compensated by paying a commission on sales.

True

60. Many companies service their small accounts by using telemarketing.

True

46. "Who is your current supplier of gaskets?" is an example of a:

fact-finding question.

42. "May I ask you a few questions about your current manufacturing processes?" is an example of a:

permission question.

7. In general, which is more effective in "closing" the sale?

personal selling

6. An advantage of personal selling is not:

reaching a massive number of people quickly.

64. Some common ways in which telemarketing is used by businesses includes all of the following except:

sales training - answering salespeople's questions about specific products

43. Most encyclopedia companies have their sales representatives use a prepared flip chart notebook and examples of their books during a sales presentation. Which type of selling method is this?

standardized presentation