Sales Midterm SG
Since it is much more costly to acquire new customers than to retain existing ones, many firms are now emphasizing the importance of
customer lifetime value.
When attempting to gain commitment, Samuel simply asks his buyer if he is comfortable moving forward with the proposed solution. Which commitment-gaining technique is Samuel utilizing?
direct request
"The process we have been using works fine—we do not need to change it" is an example of which type objection?
no-need
If a customer states that he has too many other problems to address to focus on the one being discussed by the salesperson, what type of objection is the customer voicing?
time
Today, more so than ever, buyers are relying upon the salesperson as they begin their search process when uncovering a need.
false
Inexperienced salespeople often focus too much on product ________, which are factual statements about the characteristics of a market offering.
features
In Ann's sales presentation, she is following a less structured, general outline, allowing for more flexibility in addressing customer questions. This is an example of a formula presentation.
true
Reading directly from PowerPoint slides or talking with your back to people is something that you want to avoid doing during a sales presentation.
true
Relationship selling is a sales approach that involves building and maintaining customer trust over a long period of time.
true
To prepare for a presentation a salesperson should come up with a concise understanding of how the sales offering will add value to the buyer and/or their organization. This is called a customer value proposition.
true
A customer ________ statement details how the sales offering will create added benefits to the buyer and/or their organization.
value proposition
Nonprofit organizations generally are organized to further a social cause or advocate for a point of view. As such, they have little need for personal selling.
False
Brielle sells beach gear to surf shops and other businesses located near beach resorts and communities. She is talking with the manager of a successful surf shop, Life's a Beach, and the manager has been sending buying signals. Brielle is ready to close the sale. In the past, she's found that the balance-sheet approach has been useful. What might she say to the manager of Life's a Beach if she decides to use that approach to gain commitment?
"I realize that our products take up more shelf space, and that you'll be able to stock fewer products from other suppliers. But our products fly off the shelves quickly, which means greater inventory turnover and more profit for you."
Aria sells high-fashion handbags and purses at an exclusive boutique. Most of the handbags are priced between $3,000 and $5,000, but some of them are priced as high as $12,000. A star of a reality TV show wants to purchase an $8,000 Louis Vuitton bag, but she complains that the price is too high. If Aria decides to use the compensation technique, how might she respond to this price objection?
"It's true, this bag has a premium price. But the ingredients are so high quality that it'll last you forever. Plus, these bags hold their value, so if you ever decided to sell it, you'd get a lot of your money back. Many women in this country would love to own a handbag that once belonged to you!"
Next week, Taylor will be making a presentation to the buying team for a large public school district in California. Taylor's company sells technology solutions that make distance learning much easier, and she believes strongly in her product. She wants to tell a story that will grab her audience's attention and make them see the benefit of her product. Which of the following stories is most likely to help her achieve her goal?
A story about sick children who used her product to keep up with their schoolwork after having serious operations; all of these children were able to graduate on time with their classmates
Jing sells cloud storage systems to companies that make heavy use of data. Today she did a sales presentation for the buying team at GenX, a biotechnology company. The following people attended the presentation: Gabriel, who was the first person at GenX to recognize the need for more cloud storage; Sofia, who frequently backs up large amounts of research to the cloud; Scarlett, who has a great deal of experience with cloud storage and is involved in deciding how much storage GenX needs to buy; Ari, who is in charge of choosing the supplier and signing the contract for cloud storage services; and Drue, the buying team's assistant who manages their calendars and appointments. Which member of the buying team is the purchaser?
Ari
A(n) ________ system enables the salesperson to see everything in one place—a customer's previous history with the firm, the status of their orders, any outstanding customer service issues, and more.
CRM
Ella uses specialized software produced by a company called Salesforce to help her manage relationships and interactions with her customers and potential customers. Salesforce is a type of ________ system.
CRM
Which of the following salespeople is engaged in a need-satisfaction sales presentation?
Ella gathers a buying team in a rented conference room at a local hotel. For the first two hours of her presentation she probes deeply about the problems that the buying team is trying to solve, and in the final half hour she presents a turnkey solution that will solve those problems.
As noted in the text, the most important social platform for business networking is
LinkedIn.
________ selling is a sales approach that involves building and maintaining customer trust over a long period of time.
Relationship
Allegra, a sales manager, is looking at five résumés, trying to decide whom she will hire as the newest salesperson on her staff. The new salesperson will manage several complicated and demanding accounts. For this reason, Allegra wants to hire someone who is dedicated to being a consultative problem solver. Which of the following five candidates should she hire?
Zion, who states, "The most important thing I can do as a salesperson is provide and implement solutions to my customer's problems."
When attempting to gain commitment, Mary Elizabeth presents her buyer two legitimate options from which she can choose. Which commitment-gaining technique is Mary Elizabeth utilizing?
alternative choice
When attempting to gain commitment, Teresa lists out all of the positives and negatives associated with the buyer moving forward with the proposed solution. Which commitment-gaining technique is Teresa utilizing?
balance sheet
If a salesperson seeks to avoid customer interactions, what are they suffering from?
call reluctance
In terms of gaining commitment, transitionary signals are cues sent by the customer indicating a shift in thinking from if we should do this to how we should do this.
false
Which of the following is not one of the question types contained in the SPIN selling methodology?
issue questions
Nasir sells software that permits fast, simple reordering of commonly used products. During a long conversation with a prospect, Nasir asks, "Can you speculate on the benefits of a direct-reordering system that allows your customers to order directly from an app rather than having to wait on hold on the phone, or to fill out and mail in complicated paperwork?" Nasir has asked a(n) ________ question.
need-payoff
When questioning the customer, Suzanne asks, "How would your business improve if we were able to help you eliminate these problems?" Which type of SPIN selling question is this?
need-payoff question
The ________ provides salespeople with an opportunity to practice their response to potential buyer objections.
role-play
If a customer states that he or she has concerns over the fact that the selling company manufactures many of its products overseas, what type of objection is the customer voicing?
source
Peng sells value-priced clothing to discount retail stores. The prices are low, but the clothes don't last much longer than a year or two. While trying to gain commitment from the buyer of Fast Fashion, a chain that sells fashionable clothing for teenagers, Peng is surprised to hear the buyer say, "I really am concerned about buying from you. Your clothes are all made in the Philippines, where people work for very little money in sweatshops with dangerous conditions." What type of objection has the buyer raised?
source objection
When attempting to gain commitment, Rachelle tells the story of another customer who agreed to something similar and has benefited from the decision. Which commitment-gaining technique is Rachelle utilizing?
success story
Trial close questions refer to questions that are designed to assess whether the customer has comments or concerns about what has previously been discussed.
true
In the ________ phase of the relationship, the customer receives increasing benefits and becomes increasingly dependent on the salesperson and the selling firm.
expansion
For most given purchase situations, the ultimate decider will be the CEO.
false
Electronic data interchange (EDI) is a technology designed to integrate the computer systems of supplier and buyer firms.
true
When a salesperson utilizes LinkedIn in an attempt to generate sales leads, the salesperson is utilizing what lead-generation technique?
virtual networking
In large, complex sales decisions in business-to-business (B2B) settings, the quality of the personal selling is often the most important aspect in the decision.
True
Customer input that results from the customer playing an active role in the problem-solving process is known as customer
co-creation.
Jeff encourages his sales reps to use high-pressure tactics. He regularly berates them for not pushing a certain high-margin product, even when the rep knows it is not a good match for the prospect's needs. By doing these things, Jeff is creating significant _________ dilemmas for his employees.
ethical
The only requirement for trust is that the other person act reliably.
false
Under no circumstances should a salesperson ever bring up on objection on his or her own (i.e., the salesperson should always wait for the customer to voice the objection).
false
When utilizing the boomerang objection handling technique, the salesperson is candid in admitting that the objection is valid but also discusses other benefits that offset the objection.
false
With the compensation technique, the salesperson transitions the conversation away from price alone to more fully describe the value being offered through the solution.
false
Within the buying team, the product user is always the individual or group of individuals who first recognizes the customer's need.
false
A salesperson with a(n) ________ orientation tends to focus more on selling to existing customers by building long-term relationships.
farming
If you are working a trade show and an individual steps into your booth to have a conversation with you about the products and/or services your company sells, this individual would be categorized as a
hot lead.
When questioning the customer, Suzanne asks, "How are these issues affecting your business?" Which type of SPIN selling question is this?
implication question
In a(n) ________ sales presentation, the salesperson presents the same selling points in the same order to all their customers.
memorized
In SPIN selling, which of the following questions is designed to help buyers think of possibilities as opposed to problems?
need-payoff questions
A two-way flow of seller-paid for communication between a buyer and a seller that is intended to influence a buyer's purchase decision is often referred to as
personal selling
When questioning the customer, Matt asks: "What are some typical customer complaints you hear?" Which type of SPIN selling question is this?
problem question
If a customer states that her current product can address the problem just as well as the one the salesperson is suggesting, what type of objection is the customer voicing?
product
In the absence of a ________ plan, it is unlikely that the salesperson will do what is required to acquire new business.
prospecting
If Meghan asks a current customer for the name of another individual or organization who may benefit from the products and/or service her company offers, she is seeking a
referral.
When questioning the customer, Devin asks: "How do your customers typically engage with you?" Which type of SPIN selling question is this?
situational question
Erica has set up a Google Alert using a set of keywords and topics that help her monitor digital channels for direct mentions of her firm's brand as well as for key topics and events that are relevant to her buyers. Erica is engaged in activities that are associated with the concept of
social listening.
A center of influence is someone who is both connected to and respected by a group of prospects.
true
A quota is a quantifiable sales goal for a given time period.
true
Customer engagement refers to the connection that exists between the salesperson, the selling firm, and the customer.
true
The acronym AIDA sums up the buying process. AIDA stands for
Attention, Interest, Desire, Action.
Antonio is a very successful salesperson in the jewelry industry. His company sources exquisite, one-of-a-kind jewelry from craftspeople all over the world, and Antonio sells that jewelry to upscale jewelry stores across the United States. About 70% of his sales go to DeLuxe Jewelers, which sells rings, bracelets, and necklaces to wealthy celebrities and businesspeople. Which of the following may explain why Antonio is hesitant to prospect for new customers?
He may fear that prospecting will take too much time away from his existing customer relationships.
________ salespeople interact with customers only remotely, though phone, email, text, social media, the Internet, or some other form of remote technology.
Inside
________ perform selling activities at the employer's location, typically using email and the telephone.
Inside salespeople
________ is a process by which you motivate someone else to voluntarily do something you would like them to.
Persuasion
________ is the practice of generating insights from sales data, trends, and metrics.
Sales analytics
Which of the following dimensions distinguishes personal selling from traditional advertising?
The flow of communication is bidirectional.
Personal selling is more effective than other promotion mix elements when the good or service is
customizable.
A product ________ is one of your best sales tools if you have a high-quality product.
demonstration
Jack leads the construction team at Contemporary Home Builders. He has been buying lumber from Quicken Brothers Lumber for more than ten years. However, in the past few years, he has become displeased with Quicken Brothers' prices, delivery, and customer service. After conducting a great deal of research into other possible lumber suppliers, he has decided to go with Washington Lumber for all of his company's lumber needs. In terms of the relationship life cycle, Jack is in the ________ phase with Quicken Brothers.
dissolution
A product demonstration is not one of your best sales tools if you have a high-quality product.
false
A salesperson with a(n) ________orientation tends to focus more on securing new customers through lead generation, prospecting, precall planning, and delivering sales presentations.
hunting
Marsha is a salesperson for Modular Design, a company that sells modular additions to existing production facilities. Marsha is working with a company that needs an addition, as they do not have the space necessary to keep up with their current demand. The company has never had to purchase an addition like this and is hesitant because the total cost is approximately $500,000. Mindful of this, the company is involving many people in the decision-making process. Marsha should recognize that this is what type of purchase for the company?
new task
In which of the following purchase situations is the CEO most likely to be the key decision maker?
new-task
Today is a good day for Zach. He's been a top sales performer for the past three years, and today he is promoted to senior sales representative. The promotion comes with a raise and a new car from the fleet. When congratulating him on his promotion, Zach's manager says, "Zach, we've been consistently impressed by your deep knowledge of the products we sell. I don't think there's another rep who understands our goods and services so well. Your level of knowledge in this area has definitely been a key to your success in developing cost-effective solutions for our customers." Zach's manager is referring to Zach's ________ knowledge.
product
Erin is responsible for creating both standardized and ad hoc reports for the VP of Global Sales. Her position is designed to help sales management utilize existing customer data to create added opportunities and create more accurate forecasts of future sales in each of the vertical and regional markets the firm serves. Erin would best be described as a(n)
sales analyst.
Landing a position as a(n) ________ in a high-tech firm usually requires an educational background in a technical field like engineering, computer science, or physics.
sales engineer
According to data from the U.S. Bureau of Labor Statistics (BLS), sales remain the ________ largest occupational category.
second
Aubrey is slightly nervous because tomorrow she will be making a presentation to a 20-person buying team at a major pharmaceuticals firm. Her manager offers her many good tips, including "Be careful with your body language. Make sure it matches your message." When managing her body language, Aubrey should be careful to
sit up straight and face the person to whom she is speaking at any given moment.
Joi acts as the buyer for an automotive repair facility. In talking with salespeople, Joi has noted that the vast majority of her purchases are made out of habit—so long as there are no major issues she typically continues purchasing from the same supplier. She does this, in part, because of the time demands she faces in her job and the fact that she cannot dedicate an inordinate amount of time to every purchasing decision. Based on this description, Joi is exhibiting ________ loyalty.
spurious
Nonverbal communication is often referred to as
body language
A benefit of storytelling in sales is that it can trigger a prospect's emotions and motivate them to take action.
true
Jakob sells small, upscale appliances that take little counter space and are therefore well suited to people who live in small apartments in expensive cities. Today he is presenting a new toaster to upscale retailers who cater to wealthy people. Which one of the following statements emphasizes a benefit rather than describes a feature?
"No more waiting for your bagel to toast while you rush around in the morning. The XOX toaster makes your bagel golden brown and perfectly toasted in just 20 seconds."
A key advantage of personal selling relative to other promotion mix elements is that it enables the selling firm to
-gain key market insights based on customers' feedback, objections, and concerns. -adapt their marketing communication based on a buyer's nonverbal behaviors. -adapt their marketing communication based on direct verbal customer feedback. -develop more detailed and customized solutions.
According to the Marketing Science Institute, firms on average receive around a ________ percent return on investment for sales-related expenditures.
30
One recent study found that more than ________ percent of sales and marketing managers believe their salespeople have lied on a sales call.
50
A little more than ________ percent of all B2B sales start with a referral.
80
In a memorized sales presentation, the salesperson typically talks about ________ percent of the time
90
Maria works for a company that specializes in document storage and shredding. She sells these services to companies of all sizes, from mom-and-pop retail stores to huge multinational corporations. In the course of a typical day, she responds to many types of sales leads. Which of the following would she classify as a hot and inbound lead?
An operations manager at Apple sends Maria an email asking her to schedule a phone call to describe her company's services.
Imani is a sales manager for a garden supply company. She receives an email from Owen, the manager of a chain of assisted-care facilities whose parent company plans to build ten large new buildings in Imani's region in the coming year. Owen writes, "Our architects and designers have very specific and inflexible needs, so can you please assign a rep to my account who has a proven track record of meeting his or her customer's expectations precisely?" Which sales rep should Imani assign to the account?
Ellie, who has a reputation for being highly dependable
A group of college friends all graduate at the same time, and all five take jobs that involve selling. Natalie sells sophisticated film-editing software to Hollywood filmmakers by visiting their studios in person. Samira uses social media platforms, such as Twitter and LinkedIn, to sell home-security devices, such as security cameras and high-tech doorbells. Juan sells printing services to publishers. Omar sells iPhones, iPads, and other Apple products at a local Apple Store. Aiden sells contemporary office furnishings, such as desks and chairs, to small- and medium-sized companies that want an open floor plan for their office. Which of the friends is engaged in social selling?
Samira
________ selling is the process of developing, nurturing, and leveraging relationships online to sell products or services.
Social
Which of the following software technologies are particularly useful in helping salespeople track their prospecting results?
customer relationship management (CRM) software
When a customer feels this type of loyalty, he or she feels a strong attitudinal connection with the salesperson and/or selling firm.
affective loyalty
Research from Salesforce has found that ________ percent of business buyers feel that technology has changed their expectations of how companies should interact with them.
around 75
Which of the following is the first phase in the overall customer relationship life cycle?
awareness
The first step in most customer's decision-making process is information search.
false
Why is it so important for salespeople to be able to quantify opportunity costs when selling?
because doing so helps buyers understand the true costs associated with doing nothing or with other alternatives
Jim is a financial planning expert. He writes columns in the local newspaper, and even makes radio and television appearances to discuss the importance of financial planning. He also holds seminars in which he talks with audiences about specific things they should be doing to ensure their financial security into retirement. As described, Jim operates as a
center of influence.
Melanie is taking the time to go back and examine her success rates with the different cold-calling scripts she utilizes. In doing so, which of the following prospecting strategy steps is Melanie addressing?
evaluate lead-generation methods and overall prospecting processes
A cold call is a lead provided by an existing customer, based on a belief that the potential buyer may benefit from the products or services provided by the selling firm.
false
A memorized sales presentation typically involves the salesperson talking 10 percent of the time and listening around 90 percent.
false
Competing salespeople can be a valuable resource through which leads are generated.
false
Historically, the marketing and sales functions have worked well together in the lead-generation process.
false
If you are maintaining a relationship with a company only because you are locked into a contract with a company, you are exhibiting spurious loyalty.
false
In a new-task purchase situation, there are typically fewer people involved in the purchase decision.
false
Inbound leads are those in which the firm proactively contacts the lead.
false
Joseph works for a wholesale organization and is responsible for selling fresh produce and other agricultural products to regional grocery chains. His sales processes rely heavily on building strong relationships with organizational buyers and establishing long-term contracts with the chains. Based on this description, Joseph is most likely a(n)
field sales representative.
The main advantage of employing a(n) ________ presentation is that it enables salespeople to hit specific selling points while still soliciting customer feedback.
formula
If a salesperson develops a profile of organizational characteristics shared by current, highly desirable customers, and prioritizes prospects based on their level of similarity with this profile, the salesperson is utilizing a(n)
ideal customer profile.
Which member of the buying team helps determine the priorities to be addressed when making the purchase decision and expresses their opinions regarding potential solutions?
influencer
By definition, a ________ is an individual or organization that exhibits characteristics similar in nature to those exhibited by current customers.
lead
Which of the following captures the correct sequence of steps in the prospecting process?
lead generation, lead prioritization, lead qualification, prospect prioritization, call planning
Based on the chapter discussion, which of the following character-based trust builders is least important?
likeability
When a retailer conducts a line review (i.e., a review to decide which products that will regularly stock in the coming year), it is an example of a
modified rebuy.
In a(n) ________ presentation, salespeople probe into the needs of the consumer and then prepare their sales presentation in accordance to address these needs in order to satisfy the consumer.
need-satisfaction
Which of the following marketing communication channels is not recognized as an element of the promotion mix?
social media
Pitney Bowes, a global technology company, was one of the first companies to adopt a sales strategy that encouraged salespeople to proactively create and share content with prospects and customers over B2B networking sites, such as LinkedIn. Pitney Bowes is considered a pioneer and leader in the area of
social selling
Which of the following would not be described as a social selling activity?
soliciting referrals
A ________ is an effective communication tool, because it enables the salesperson to more clearly contextualize product features and benefits.
story
Phillip is a salesperson for Diamond Products, a company that sells low-end, inexpensive shelves that retailers can use to stock goods. Phillip is working with a company he has been selling to for a number of years; they understand his product and how it works within their store. He is going to meet with a buyer for the company, who has informed him that he will be the only one involved in the purchase decision. Phillip should recognize that this is what type of purchase for the company?
straight rebuy
Rosalyn works as a purchasing manager for her company. In this role, Rosalyn ensures that all "routine" orders are being handled correctly via the company's electronic data interchange (EDI) system. Knowing this, what type of purchases is Rosalyn overseeing in her role?
straight rebuy
Daniel has a high-stakes presentation tomorrow at a downtown hotel. He wants this business badly, so he makes sure that he has a back-up plan in case anything goes wrong. He backs his presentation up to two thumb drives. He ensures that he carries two extra fully charged batteries for his laptop. Although the hotel presentation room has a display screen, Daniel brings an extra one just in case. Finally, Daniel makes sure that no part of his presentation requires him to go to "live" web links, just in case the hotel's internet service is down. Overall, Daniel has done his best to ensure that ________ don't sabotage his presentation.
technical problem
Chris goes to a business conference to represent his company at which he talks face-to-face with many professionals in his field. This allows him to build several professional and social relationships. This is an example of
traditional networking.
