MKTG 321 CH. 17 Professional Selling and Sales Promotion

Which of the following is the best example of a well-stated sales objective? - Each salesperson should increase their average order size by November 1. - The sales force should increase domestic market share by 5 percent by the end of the fiscal year. - Each salesperson should increase the number of orders placed per call made. - Each salesperson should triple their daily dollar sales volume by March 1.

The sales force should increase domestic market share by 5 percent by the end of the fiscal year.

LOFT sends out a cents-off offer to its email subscribers to push sales. The next day, LOFT sends another. Overuse of cents-off offers might lead to what? - Misredemption - Complicated redemption - Fraud - Less brand loyalty - A cheapened brand image

- A cheapened brand image

Scenario 17.1. Maya is a sales representative for an artificial intelligence company. She attends a trade show and sets up a booth so attendees can learn more about her company. She collects the name and contact information of trade show attendees who visit her booth on an iPad. When she gets back to her office, Maya plans to review the contacts and determine whether they are current or previous clients of her firm, their industry and interests, and whether they are the key decision makers of the businesses. After this, her coworker Alan will call any relevant contacts to create a favorable impression and build rapport. Refer to Scenario 17.1. Alan plans to engage in which step of the personal selling process? - Overcoming objections - Preapproach - Approach - Prospecting - Making the presentation

- Approach

Scenario 17.3. Constance is partnering with Archie, an engineer, to try and sell a new aerospace product. Constance has the sales expertise, but the firm believes that the product is so high-tech that an engineer who helped design the product is needed to explain more of the technical details for clients who have questions. Constance is very eager to make sales. Normally, Constance likes to work alone, but she appreciates Archie's expertise because she thinks his advice on product characteristics and applications will help increase sales significantly. Constance is paid by the sale, so her compensation depends entirely upon her sales during a given period. In addition to answering specific questions about the product, Archie will also provide the client organization with assistance on its applications and system design. Refer to Scenario 17.3. Suppose Constance is paid a fixed salary plus a sizable commission based on sales volume. What type of compensation system does Constance have for her personal selling efforts? - Straight salary compensation plan - Team-based compensation plan - Combination compensation plan - Straight commission compensation plan - Profit-sharing compensation plan

- Combination compensation plan

Mitch works for Yelp. He helps existing clients optimize their business pages on Yelp so they get maximum exposure. New features are released regularly, so many clients have outdated pages. He informs them of new features and provides personal instruction. Mitch follows up with each client quarterly or as needed just to check in and make sure his clients are getting the most out of Yelp. What role is Mitch most likely in? - Technical salesperson - Support salesperson - Trade salesperson - Customer success manager - Inside salesperson

- Customer success manager

Which of the following statements is true about personal selling? - It is among the cheapest forms of promotion. - It gives marketers the greatest freedom to adjust a message to satisfy consumers' information needs. - Personal selling is most important in business-to-consumer sales. - Personal selling goals are the same for every company that engages in personal selling.

- It gives marketers the greatest freedom to adjust a message to satisfy consumers' information needs.

Makara works for a mobile marketing company that provides companies with a way to communicate with guests that frequently visit their stores. After Makara presents his company's services to a prospect, the prospect says that they are concerned about respecting the privacy of their guests. Makara quickly reassures the prospect that the technology is opt-in based, so guests have to provide their phone number and agree that the service can track their purchase behavior. What part of the personal selling process is Makara engaging in? - Preapproach - Overcoming objections - Closing the sale - Following up - Making the presentation

- Overcoming objections

Scenario 17.1. Maya is a sales representative for an artificial intelligence company. She attends a trade show and sets up a booth so attendees can learn more about her company. She collects the name and contact information of trade show attendees who visit her booth on an iPad. When she gets back to her office, Maya plans to review the contacts and determine whether they are current or previous clients of her firm, their industry and interests, and whether they are the key decision makers of the businesses. After this, her coworker Alan will call any relevant contacts to create a favorable impression and build rapport. Refer to Scenario 17.1. When she gets back to the office, Maya plans to engage in which step of the personal selling process? - Preapproach - Prospecting - Overcoming objections -Approach - Making the presentation

- Preapproach

Scenario 17.1. Maya is a sales representative for an artificial intelligence company. She attends a trade show and sets up a booth so attendees can learn more about her company. She collects the name and contact information of trade show attendees who visit her booth on an iPad. When she gets back to her office, Maya plans to review the contacts and determine whether they are current or previous clients of her firm, their industry and interests, and whether they are the key decision makers of the businesses. After this, her coworker Alan will call any relevant contacts to create a favorable impression and build rapport. Refer to Scenario 17.1. At the trade show, Maya is engaging in which stage of the personal selling process? - Closing the sale - Making the presentation - Approach - Prospecting - Preapproach

- Prospecting

Jordan is a sales representative for a company that sells drones. He has been working to build mutually beneficial long-term associations with his clients by regularly calling and emailing them. Jordan is confident he understands his clients' challenges and needs. What type of selling is Jordan doing? - Prospecting - Relationship selling - Team selling - Training - Trade selling

- Relationship selling

Tienlon is a sales representative for Dana Holding Corporation, a manufacturer of axles, driveshafts, and other car parts. She spends her time listening to her clients, which include auto manufacturers, to understand their organizations. She also understands their needs and challenges and provides support to her clients after the sale. Which type of selling is Tienlon engaged in? - Relationship selling - Team selling - Order taking - Technical selling

- Relationship selling

Walmart is requiring more trade sales promotion from Bolthouse Farms, a juice and smoothie company, to keep extensively promoting its products and displaying them on their shelves. Why will Bolthouse Farms most likely comply with Walmart's request? - Retailers like Walmart have become more interested in long-term performance. - Bolthouse Farms prefers sales promotion over the costlier advertising. - Retailers like Walmart have gained considerable power in the supply chain. - Heightened concerns about value have made customers more responsive to promotional offers. - Declines in brand loyalty have made sales promotions aimed at persuading customers to switch brands more effective.

- Retailers like Walmart have gained considerable power in the supply chain.

Rhiannon is an inside sales representative at a natural cosmetics company. She recently sold a new primer the company released to many clients. However, the pump on the primer bottle does not work properly. Investigation shows the error stems from the manufacturer of the pump. Rhiannon's sales manager had pressured Rhiannon to sell this new product, and now Rhiannon is worried that this is not an isolated incident. In this case, there could be a major recall, and the firm's CEO would have to get involved. If a client is highly dissatisfied and wants to express discontent, who are they most likely to contact first? - The CEO - Rhiannon's sales manager - The organization as a whole - Rhiannon - The manufacturing factory

- Rhiannon

Scenario 17.3. Constance is partnering with Archie, an engineer, to try and sell a new aerospace product. Constance has the sales expertise, but the firm believes that the product is so high-tech that an engineer who helped design the product is needed to explain more of the technical details for clients who have questions. Constance is very eager to make sales. Normally, Constance likes to work alone, but she appreciates Archie's expertise because she thinks his advice on product characteristics and applications will help increase sales significantly. Constance is paid by the sale, so her compensation depends entirely upon her sales during a given period. In addition to answering specific questions about the product, Archie will also provide the client organization with assistance on its applications and system design. Refer to Scenario 17.3. Suppose Constance is paid by the sale, so her compensation depends entirely upon her sales during a given period. What type of compensation system does Constance have for her personal selling efforts? - Combination compensation plan - Team-based compensation plan - Profit-sharing compensation plan - Straight salary compensation plan - Straight commission compensation plan

- Straight commission compensation plan

Which of the following types of selling is most appropriate when selling new technology that needs specific technical expertise due to its complexity? - Technical selling - Order taking - Relationship selling - Team selling

- Team selling

Scenario 17.3. Constance is partnering with Archie, an engineer, to try and sell a new aerospace product. Constance has the sales expertise, but the firm believes that the product is so high-tech that an engineer who helped design the product is needed to explain more of the technical details for clients who have questions. Constance is very eager to make sales. Normally, Constance likes to work alone, but she appreciates Archie's expertise because she thinks his advice on product characteristics and applications will help increase sales significantly. Constance is paid by the sale, so her compensation depends entirely upon her sales during a given period. In addition to answering specific questions about the product, Archie will also provide the client organization with assistance on its applications and system design. Refer to Scenario 17.3. What type of sales position is Archie most likely to occupy? - Inside salesperson - Customer success manager - Outside salesperson - Trade salesperson - Technical salesperson

- Technical salesperson

Which of the following statements is true about the follow-up step of the personal selling process? - The follow-up helps create loyalty on the part of the buyer. - The follow-up must occur within 24 hours of the closing. - The follow-up occurs immediately after the sales presentation. - The purpose of the follow-up is to ask for referrals.

- The follow-up helps create loyalty on the part of the buyer.

Angie is the vice president of sales for a marketing analytics company that sells software to analyze social media data and provide predictive analytics. The software has become so complex, a single salesperson can no longer be an expert in every aspect of the product and purchase process. The CEO suggests Angie look into team selling. Which of the following is true about team selling? - It is usually suited for salespeople who operate in a highly competitive environment. - It usually involves the engineer or technical person taking the lead. - The salesperson takes the lead in the personal selling process, but other members of the team bring their unique skills, knowledge, and resources to the process. - It is most effective for mature products that do not have much complexity. - It involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time.

- The salesperson takes the lead in the personal selling process, but other members of the team bring their unique skills, knowledge, and resources to the process.

Makita, a manufacturer of power tools, is offering _______ to motivate its distributors to sell more of its products. It is offering recognition and a prize to the distributor who sells the most of its power tools to retail stores in the next month. - a dealer loader - a sales contest - a merchandise allowance - a dealer listing

- a sales contest

The use of sales promotion has increased dramatically over the past 30 years, primarily at the expense of _______. - personal selling - advertising - direct marketing - public relations

- advertising

A _______ is a secondary incentive and is a sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over. - merchandise allowance - scan-back allowance - buying allowance - cooperative advertising - buy-back allowance

- buy-back allowance

After offering a cents-off offer to consumers, DiGiorno Pizza offers its retailers a sum of money for each pizza the retailer purchases. This would be an example of a _______. - buying allowance - scan-back allowance - merchandise allowance - buy-back allowance

- buy-back allowance

Mountain Dew is known for its high customer engagement on social media. Mountain Dew would like to create a sales promotion that would allow customers to have fun. After doing some research, it decided upon a _______ because contestants would be more highly involved even if participation might be somewhat lower. - consumer game - consumer contest - consumer sweepstakes - premium - frequent-user incentive

- consumer contest

Bo finds a code under the cap of the soft drink he just bought. He visits a website where he enters the code for a chance to win a prize. This is an example of a _______. - consumer game - consumer contest - premium - consumer sweepstakes

- consumer sweepstakes

Scenario 17.2. Samsung sells household appliances to both individual customers through its site as well as through retailers such as Best Buy or Home Depot. Sales have been down lately as LG just came out with a new, popular refrigerator. Samsung wants to offer an additional inducement to encourage its customers to buy. It decides to send a specified amount of money to consumers who purchase one of their more expensive appliances. The consumer will receive a form that they will need to fill out and mail to Samsung to receive the money. Samsung also wants to encourage resellers to promote the product, so it agrees to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays. Refer to Scenario 17.2. The first type of sales promotion mentioned is a(n) _______ sales promotion. The second type is a _______ sales promotion. - consumer; trade - consumer; reseller - trade; retail - trade; consumer - individual; company

- consumer; trade

Walmart puts an advertisement in the Sunday newspaper that features toys from Fisher-Price and electronics from Samsung. Because they are featured in the ad, Fisher-Price and Samsung have agreed to pay a portion of Walmart's media costs. This is an example of _______. - a dealer listing - cooperative advertising - a buy-back allowance - a merchandise allowance

- cooperative advertising

In the weeks leading up to Halloween, Hershey's decides to use _______, the most common form of sales promotion, to encourage consumers to buy Hershey's products. - free samples - coupons - rebates - premiums

- coupons

Kya has a great relationship with retailers who sell her company's diamond engagement rings. Lately, one jewelry store has seemed reluctant to order more rings. According to the retailer, it does not seem to experience enough sales from their rings to justify selling them. Kya's firm tells the retailer that it will include a sterling silver tray with its next shipment of rings if the retailer will commit to purchasing one more shipment of their newest engagement rings and display the rings on the tray for at least a week. This is an example of a _______. - push money - free merchandise - dealer listing - merchandise allowance - dealer loader

- dealer loader

Sam is the owner of a regional chain of convenience stores. He recently made a large purchase of Slim Jim snacks for his stores and received a gift from ConAgra Foods, the makers of Slim Jim. This gift is referred to as a _______. - dealer listing - buying allowance - merchandise allowance - dealer loader

- dealer loader

Dyson released a new hairdryer made with advanced technology. Evelyn is in charge of sales promotion. After examining the types of sales promotion that would be most effective, she chooses a _______. Although labor costs will be high, she knows it has proven to be a highly effective way of selling appliances. - demonstration - premium - money refund - free sample - point-of-purchase display

- demonstration

Demetrius works for a small manufacturer of salsa. For his job, he travels to various grocery stores within his territory to find out how much salsa each store plans on ordering in the coming month. Demetrius is best classified as a(n) _______. - trade salesperson - field order taker - customer success manager (CSM) - inside order taker

- field order taker

Personal selling goals typically include finding prospects, determining their needs, persuading prospects to buy, and _______. - matching the sales levels of the competition - following up on the sale - identifying new selling techniques - developing new products to sell

- following up on the sale

Each time customers visit Dave's Sandwich Shoppe, they swipe a card through a scanner that allows them to earn points for discounts on future purchases. This is an example of a _______. - frequent-user incentive - consumer contest - rebate - free sample

- frequent-user incentive

Nikkie works in the sales department of a business that sells hair styling pomade for men. For the majority of her workday, Nikkie talks to current customers. Some are individual consumers, while others are wholesalers that will resell the products. Most of Nikkie's job involves taking reorders from the customers. Sometimes she also follows up with a phone call to ensure the products were delivered on time. Nikkie is most likely a(n) _______ focused on _______. - support salesperson; new-business sales - trade salesperson; current-customer sales - inside salesperson; current-customer sales - customer success manager; new-business sales - technical salesperson; current-customer sales

- inside salesperson; current-customer sales

Kevin and Tayshia both manage accounts for their company. Kevin is based at the company's headquarters and takes orders, follows up on deliveries, and provides technical information. Tayshia engages in personal selling through face-to-face interactions by visiting clients regularly and prospecting new clients regularly. Kevin is likely a(n) _______ while Tayshia is a(n) _______. - customer success manager; outside salesperson - outside salesperson; outside salesperson - inside salesperson; current-customer sales - trade salesperson; inside salesperson - inside salesperson; outside salesperson

- inside salesperson; outside salesperson

Scenario 17.2. Samsung sells household appliances to both individual customers through its site as well as through retailers such as Best Buy or Home Depot. Sales have been down lately as LG just came out with a new, popular refrigerator. Samsung wants to offer an additional inducement to encourage its customers to buy. It decides to send a specified amount of money to consumers who purchase one of their more expensive appliances. The consumer will receive a form that they will need to fill out and mail to Samsung to receive the money. Samsung also wants to encourage resellers to promote the product, so it agrees to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays. Refer to Scenario 17.2. As the scenario describes Samsung agrees to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays. This is most likely a _______. - cooperative advertising - merchandise allowance - buy-back allowance - dealer loader - free merchandise promotion

- merchandise allowance

Desiree's job as a salesperson has her mostly contacting existing customers to gain repeat sales. Her position is most likely a(n) _______. - order taker - order getter - technical salesperson - trade salesperson

- order taker

Damian works at Ulta. A customer approaches him and mentions they saw an advertisement for a new eyeshadow palette that just came out. Damian informs the customer that the store is sold out but will get a new shipment in two weeks. Damian also informs the customer the store has several eyeshadow palettes that are very similar and leads them to a product that he feels will meet their needs. Damian is engaging in _______. - advertising - personal selling - prospecting - public relations - sales promotion

- personal selling

Before she calls potential clients for her accounting firm, Joy is identifying key decision-makers at each company, contacting other clients for information about them, and identifying the needs of each company. This process is called _______. - making the presentation - prospecting - preapproach - approach

- preapproach

Salim has recently been hired as a salesperson for an air conditioner sales firm. When he started his job, he decided the first thing to do was to go through his company's sales records and through telephone directories to find potential customers. During this process, Salim was _______. - obtaining referrals - evaluating - prospecting - approaching

- prospecting

Scenario 17.2. Samsung sells household appliances to both individual customers through its site as well as through retailers such as Best Buy or Home Depot. Sales have been down lately as LG just came out with a new, popular refrigerator. Samsung wants to offer an additional inducement to encourage its customers to buy. It decides to send a specified amount of money to consumers who purchase one of their more expensive appliances. The consumer will receive a form that they will need to fill out and mail to Samsung to receive the money. Samsung also wants to encourage resellers to promote the product, so it agrees to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays. Refer to Scenario 17.2. As the scenario describes, Samsung plans to create a sales promotion in which it will send a specified amount of money to consumers who purchase one of Samsung's more expensive appliances. This is most likely a _______. - rebate - coupon - buy-back allowance - money refund - cents-off offer

- rebate

Senior management at Best Buy is reviewing the compensation strategy for the company's salespeople. They currently use _______, which gives the company the benefits of being easy to administer, yielding predictable selling expenses, and providing managers greater control over their salespeople. - salary plus commission - salary plus bonus - straight commission - straight salary

- straight salary

In designing sales territories, a sales manager considers several major factors. The territories must be constructed so sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and _______. - the territorial pattern should consist of concentric circles - territories should be designed to minimize selling costs - all territories should be of a similar size - the density of potential customers should be minimized

- territories should be designed to minimize selling costs

Jeff works in the sales department of a large firm that sells to retailers. His main duties are to help clients restock shelves, obtain more shelf space, set up displays, provide in-store demonstrations, and distribute samples to store customers. Jeff is most likely a(n) _______. - customer success manager - technical salesperson - outside salesperson - trade salesperson - inside order taker

- trade salesperson

Sarah's startup which sells smart home devices has a growing sales force across the country. It's finally time to divide the sales territories. When creating sales territories, Sarah should try to create territories _______. - that are the same size - that focus on urban areas - with similar sales potential - that are geographically divisive - with similar shapes

- with similar sales potential