Selling Strategically Exam 2

"Yo-to-go" is an entrepreneurial venture of a college student named Cathy Frank. She sells yogurts in cups and cones from a trailer at the beach during the tourist season. If Frank pays $500 for cartons of yogurts then sells it all for $1200, how much is her return on investment? $700 $500 $1200 $1700 $1900

$700

Maria, an office supply sales representative, is in the process of giving a sales presentation to the manager of a large accounting firm. Maria asks the manager, "How many desks do you think that you require?" The manager responds, "Three dozen. How soon can you deliver?" Which mental step has the manager reached? Interest Desire Action Attention Conviction

Action

What is the first step in learning how to overcome call reluctance? Practice verbal and nonverbal communication Avoid customers that will refuse to buy Admit having a call reluctance problem Determine your personality type Seek help for treating call reluctance

Admit having a call reluctance problem

_______ occurs when the salesperson brings company resource people to discuss a major problem or opportunity. Seminar selling SWOT selling Conference selling Need-satisfaction selling Educational selling

Conference selling

In which of the prospect's mental steps would interruptions be most difficult for a salesperson to overcome? Attention Conviction Desire Action Interest

Attention

Keri Marten has opened a day care center for children aged one to six. She seeks the assistance of local pediatricians in identifying those in need of her services. Identify the method of prospecting utilized by Keri. Center of influence Cold canvas Endless chain Group Public exhibition

Center of influence

Arminda sells wicker furniture. She invites the owner of Stanley Furniture to come outside with her to watch a demonstration. She pours a five-gallon bucket of water on a chair, chats with the storeowner for about 10 minutes, and then sits in the chair to show how water-resistant it is. When the customer tells her, "I've got to carry those chairs in my store. My customers will love them," he is in which stage of the purchasing decision? Interest Incubation Awareness Demand Conviction

Conviction

_______ is the performance of any helpful or professional work or activity for a person, family, or organization. Customer service Service customization Market follow-up Customer satisfaction Value creation

Customer service

Which of the following statements is NOT true about the endless chain referral method of prospecting? Satisfied customers are likely to buy again from the salesperson. It involves asking the customer if they know others who might be interested in the product. It is a very effective method for finding customers. The customer often refers the salesperson to friends and acquaintances. It involves a group of salespeople in related fields meeting regularly to share sales leads.

It involves a group of salespeople in related fields meeting regularly to share sales leads.

Identify the correct statement about sales training. A salesperson has to undergo sales training only at the beginning of a sales career. Sales knowledge gained from sales training typically does not benefit the salesperson. Most salespeople only go through about two weeks of sales training during their entire selling career. Knowledge of selling is primarily developed through experience. The only reason companies engage in sales training is to abide by federal government laws that require equity in positioning.

Knowledge of selling is primarily developed through experience.

Gulf Technology manufactures platforms for deep sea oil rigs. Costs for the platforms can exceed $1 million. Which sales approach would a Gulf Technology salesperson most likely use? Persuasive selling Need-satisfaction Participative AIDA selling Response-stimulus

Need-satisfaction

Which way to find new prospects is considered the most reliable and effective? Center of influence Networking Telemarketing Observation Endless chain

Networking

Which of the following would most likely be used by a salesperson to make a sales presentation that includes product video clips? Internet Explorer PowerPoint Windows Outlook Excel

PowerPoint

What is the key to being a strong negotiator? Preparation Oral communication skills Service Good product features Extroversion

Preparation

Which of the following would be best when making an appointment with a prospect over the telephone? Be creative and avoid planning what to say. Emphasize the product's features and characteristics. Present only enough information to create interest. Begin the call by describing your experience. Avoid being persistent when the prospect reacts negatively.

Present only enough information to create interest.

Which term refers to a person recommended as someone who would benefit from a salesperson's product or service? Referral Prequalified customer Telemarketing agent Orphan Rival customer

Referral

Which of the following is an appropriate guideline to follow when communicating with a cell phone? Speak louder into a cell phone than you would in other types of phones. Never ignore a cell phone call. Remember the person you are with should be the most important person for you to be communicating with. Always keep your phone in message mode. Never let your voice mail take the call.

Remember the person you are with should be the most important person for you to be communicating with.

_______ is the additional sum of money expected from an investment over and above the original investment. Contribution margin Net sale Return on sale Return on investment Return allowance

Return on investment

Which of the following is a disadvantage of the memorized sales presentation? The memorized sales presentation presents features, advantages and benefits that may not be important to the buyer. The memorized sales presentation is not effective when selling time is short. The difficulty involved in preparing and using the memorized sales presentation often frightens inexperienced salespeople. The memorized sales presentation includes too much prospect participation. Salespeople are often disorganized when they use the memorized sales presentation.

The memorized sales presentation presents features, advantages and benefits that may not be important to the buyer.

Randal Lamson sells carpet and rugs. He approaches a retail chain of home renovation stores with a plan to sell five rugs. In terms of "SMART", his goal meets the requirement to: relate to the present and future needs of the customer. be specific. identify the ROI. maximize the customer's order. put customer service first.

be specific.

A value analysis is defined as a: way to save costs while using high-end products. listing of those products with the lowest prices. way to save costs while using cheaper products. listing of those products with the highest prices. determination of the best product for the money.

determination of the best product for the money.

A salesperson engaged in sales call planning should: create nonspecific sales call objectives. develop the sales presentation. conduct vendor analyses. design after-the-sale service approach. join a sales lead club.

develop the sales presentation.

Abel, a teenager, is trying to earn money by operating a dog walking service. Abel is knocking on the door of every dog owner within a six-block radius of his house and asking if the homeowner would like to use his service. Abel is using the _______ method of prospecting. cold canvass endless chain referral Prospecting on the web group

cold canvass

For you as a salesperson to find an optimal prospecting method, the text suggests you do all the following EXCEPT: contact all prospects and current customers when you have a new product. copy the prospecting methods of successful salespeople. customize a prospecting method that suits the needs of your individual firm. always call back on prospects who did not buy. concentrate on high-potential customers before low-potential customers.

copy the prospecting methods of successful salespeople.

Salespeople use geographic information systems to: stay in constant contact with their sales managers. create more efficient routing patterns. acquire instant knowledge. increase their sales quotas. send text messages to customers and prospects.

create more efficient routing patterns.

Jack, an office supply salesperson, recently called on a customer who was trying to select photos to include in a catalog. The customer wanted to look at the 10 photos side-by-side for comparison, but his easel was too small and the cinderblock walls in the office would not hold tacks or tape. The customer explained that the situation was a regular issue for him. Jack obtained a roll of cork and a can of cork glue to convert an office wall into a giant bulletin board. In this instance, Jack acted as a(n): transactional partner. exchange creator. tactical partner. low-involvement decision maker. creative problem solver.

creative problem solver.

A simple way to remember the qualifying process is to think of the word "MAD." The letter "D" reminds the salesperson to ask if the prospect has: dedication. discernment. determination. desire. discretion.

desire.

In AIDA procedure, 'D' stands for: demand. define. desire. describe. develop.

desire.

Rob Stewart sells office equipment and calls on the office manager of a large firm. Rob wants to sell the prospect 30 units of general office supplies. In terms of the acronym SMART, Stewart's objective: was missing a valid order size. was probably not achievable. did not specify a time period. met all objective requirements. could not be measured.

did not specify a time period.

Avril is selling a uniform service to a company that cleans many of the office buildings in Baltimore. She is doing a sales presentation to all of the members of the company's buying center. She has just finished giving a brief history of her company and discussing her firm's philosophy to the 25 people in the room. She has also mentioned a few large companies her firm has worked with in the past. Avril has done this to: establish credibility. get the attention of her audience. create interest in her company. create a selling environment. outline benefits.

establish credibility.

'Preapproach' is the first stage in the selling process. false true

false

A salesperson knows that a prospect's desire for a product is solidified when the potential buyer asks a question about price. true false

false

According to the text, a salesperson's purpose, plan, and goal do not center on helping but on selling. false true

false

Closing the sale is always the most difficult part of the sales presentation. false true

false

During the sales presentation, the salesperson should not mention the company's relative position in terms of competition as it may sound too aggressive. true false

false

Empathy and kindness are the primary bridges between buyer and seller. true false

false

For success at trade shows, memorize your sales pitch so that you get your message across succinctly. false true

false

In order to become a creative problem solver, the salesperson may NOT have to invest a significant amount of effort into delving into the buyer's needs. true false

false

In sales, the need for netiquette mostly arises when using cell phones. false true

false

It is important for the salesperson using familiar terminology and buzzwords to speak in a formal tone to convey its importance. true false

false

Knowledge of selling is gained only through the company's formal training program. true false

false

Nervousness is a normal component of giving sales presentations, and there is nothing that can be done to reduce it. true false

false

Not all styles of sales presentation require that the salesperson be prepared to negotiate. true false

false

Nowadays, salespeople are not expected to be knowledge brokers for their sellers. true false

false

Salespeople should not question the listening skills of the group members by giving a benefit summary at the conclusion of a group sales presentation. false true

false

The basic difference in the four sales presentation methods is the type of product being sold. true false

false

The last step in planning your sales call is to develop a marketing plan for the prospect. true false

false

The memorized sales presentation cannot be used in telephone selling. false true

false

The training usage phases progress from natural to awkward to conscious. true false

false

Value analysis is an example of a business proposition for an industrial product. false true

false

Salespeople need to have knowledge for all of the following EXCEPT: building the buyer's confidence in the individual salesperson. meeting buyer's expectations increasing cognitive dissonance among customers. increasing the individual salesperson's self-confidence. building relationships with their customers.

increasing cognitive dissonance among customers.

Melissa sells insurance to homeowners and renters. Every weekend she goes out looking for moving vans and people unloading U-Haul trucks. She writes down the addresses of those who seem to be moving in. Every Monday she calls the list she has gathered during the weekend and asks them if they are interested in insurance. Melissa is using the _______ method of prospecting. observation center of influence networking endless chain preapproach

observation

Companies do all of the following while advertising their products EXCEPT: educate potential customers about products. develop leads for salespeople through mail-ins. presell even before a salesperson's call. increase intermediary cooperation. reduce buyers' cognitive dissonance about a purchase.

presell even before a salesperson's call.

All of the following would be potential bargaining chips for a salesperson during negotiations EXCEPT: extra services to offer. products available from competitors. price flexibility. training availability. optional equipment to provide.

products available from competitors.

The _______ involves a persuasive vocal and visual explanation of a business proposition. display premise trial close preapproach sales presentation service follow-up

sales presentation

Setting a goal and accomplishing it is called: target. success. goal. plan. quota.

success.

A salesperson, promoting a new type of energy drink to a grocery-store chain, develops a plan integrating promotions within the grocery store, such as in-store sampling, along with national initiatives conducted by the energy drink manufacturer, such as national advertising and social media programming. This exemplified how: the selling firm would create awareness of their product and incent grocery consumers to visit the stores and purchase their energy drinks. the salesperson is using sales promotions to support personal selling. the salesperson relies on other promotional elements as personal selling is not a very effective method to sell to retailers. the selling firm's advertising would support publicity. advertising is more important than personal selling.

the selling firm would create awareness of their product and incent grocery consumers to visit the stores and purchase their energy drinks.

A GIS is capable of revealing customer buying patterns. false true

true

A salesperson cannot make a sales call without a sales call objective. false true

true

According to the text, The value of a CRM system lies in its ability to manage knowledge. false true

true

Before developing your presentation, you need to determine the prospect to call on and make an appointment. true false

true

Careful planning of every aspect of the sales call helps the salesperson be organized and prepared to interact with the customer. true false

true

High-performing salespeople tend to be strategic problem solvers for their customers. false true

true

In the memorized sales presentation, the prospect does very little talking. false true

true

LinkedIn, a popular social networking website for businesses and their employees, has emerged as a method to assist in the prospecting process. false true

true

Sales force automation systems are used for managing customer follow-up calls. true false

true

Salespeople can focus their activities by writing down predetermined goals prior to sales calls. true false

true

The customer does most of the talking in the approach and presentation stages of the need- satisfaction method. false true

true

The key to selling and negotiating is to always seek a win-win situation in which both the buyer and seller are happy. true false

true

The problem-solution method is best suited for selling insurance and similar financial products. false true

true

The selection of the sales presentation method is dependent on the type of audience the salesperson is facing. true false

true

Today's salespeople need to be creative problem solvers who have the ability to develop and combine nontraditional alternatives to meet the specific needs of the customer. false true

true

According to The Core Principles of Professional Selling, a plan should primarily be based upon: truth. benefits. sales goals. personal success. action.

truth.

The business proposal document prepared by the salesperson after a group sales presentation should be: viewed as a customer reference source. written on company stationery. less than ten pages. used as a substitute for a presentation. an identical script of the sales presentation.

viewed as a customer reference source.