marketing ch. 18

The manner in which a salesperson contacts a potential customer

Approach

A sum of money given to a reseller for each unit bought after an initial promotional deal is over

Buy-Back Allowance

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.

Buy-Back Allownace

A temporary price reduction to resellers for purchasing specified quantities of a product

Buying Allowance

Promotions that allow buyers to pay less than the regular price to encourage purchase

Cents-Off Offers

The stage in the personal selling process when the salesperson asks the prospect to buy the product

Closing

Paying salespeople a fixed salary plus a commission based on sales volume

Combination Compensation Plan

Sales promotion methods in which individuals compete for prizes based on their analytical or creative skills

Consumer Contests

Sales promotion methods in which individuals compete for prizes based primarily on chance

Consumer Games

Sales promotion techniques that encourage consumers to patronize specific stores or try particular products

Consumer Sales Promotion Methods

A sales promotion in which entrants submit their names for inclusion in a drawing for prizes

Consumer Sweepstakes

An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products

Cooperative Advertising

Written price reductions used to encourage consumers to buy a specific product

Coupons

Advertisements that promote a product and identify the names of participating retailers that sell the product

Dealer Listings

A gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise

Dealer Loader

Sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works

Demonstrations

A salesperson should not attempt to close a transaction until he or she has finished the entire presentation. True False

False

Merchandise allowances are generally used in conjunction with high-volume, low-profit items. True False

False

A major benefit of personal selling over other promotional tools is _______________

Flexibility

A manufacturer's reward given to resellers that purchase a stated quantity of products

Free Merchandise

Samples of a product given out to encourage trial and purchase

Free Samples

A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display

Merchandise Allowance

Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers

Missionary Salespeople

Sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases

Money Refunds

Damian works at the Container Store. While he is placing inventory on the shelves, a customer comes up to him. The customer mentions she saw an advertisement on a new storage product that just came out. Damian informs the customer that the store is out of the product but will be getting a new shipment tomorrow. When the lady asks Damian if they have any similar products, Damian leads her to a product that he feels will meet her needs. He tells her while this a bit smaller, it also costs less and is on sale. Damian is engaging in _________________

Personal Selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation

Personal Selling

Signs, window displays, display racks, and similar devices used to attract customers

Point-of-Purchase (POP) Materials

Extra compensation to salespeople for pushing a line of goods

Premium Money (Push Money)

Items offered free or at a minimal cost as a bonus for purchasing a product

Premiums

Developing a database of potential customers

Prospecting

Sales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase

Rebates

Developing a list of qualified applicants for sales positions

Recruiting

The building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time

Relationship Selling

A sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements

Sales Contests

An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it

Sales Promotion

A manufacturer's reward to retailers based on the number of pieces scanned

Scan-Back Allowance

Paying salespeople according to the amount of their sales in a given time period

Straight Commission Compensation Plan

Paying salespeople a specific amount per time period, regardless of selling effort

Straight Salary Compensation Plan

Sales staff members who facilitate selling but usually are not involved solely with making sales

Support Personnel

The use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process

Team Selling

Support salespeople who give technical assistance to a firm's current customers

Technical Salespeople

Methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively

Trade Sales Promotion Methods

Salespeople involved mainly in helping a producer's customers promote a product

Trade Salespeople

Which personal selling process step may involve calling on customers without prior consent? a. Approach b. Making the presentation c. Preapproach d. Prospecting e. Overcoming objections

a. Approach

Which of the following is the most widely used sales promotion technique? a. Coupons b. Premiums c. Rebates d. Samples e. Incentives

a. Coupons

Lynn works in sales at a firm that sells large-scale printing equipment for printing companies. She recently sold a new model of the company's product. However, the machine did not work properly, and investigations showed that it was a mistake made on the part of the manufacturer stemming all the way back to its construction in the factory. Lynn's sales manager had put a lot of pressure on Lynn to sell as much of this new equipment as she could, and now Lynn is worried that more products she sold will also have defects in the machinery. In this case, there could be a major recall, and the firm's CEO would have to get involved. Suppose an organization who bought the machinery realizes it is not working. The customer is highly dissatisfied and is likely to express her discontent initially to _______. a. Lynn b. Lynn's sales manager c. the organization as a whole d. the CEO e. the manufacturing factory

a. Lynn

During which step in the personal selling process is listening especially important? a. Making the presentation b. Prospecting c. Following up d. Approach e. Overcoming objectives

a. Making the presentation

Sheila works at an industrial products firm. She is sent to an industrial products trade show to man a booth. At the booth she talks with a number of company representatives and urges them to write their names and contact information on a card, so she can contact them later. When she gets back to the office, Sheila plans to go over the contacts and do some research to determine whether they have bought from the firm before, their industry and interests, and whether they are the key decision makers of the businesses. When she gets back to the office, Sheila plans to engage in which step of the personal selling process? a. Preapproach b. Overcoming objections c. Prospecting d. Approach e. Making the presentation

a. Preapproach

Sheila works at an industrial products firm. She is sent to an industrial products trade show to man a booth. At the booth she talks with a number of company representatives and urges them to write their names and contact information on a card, so she can contact them later. When she gets back to the office, Sheila plans to go over the contacts and do some research to determine whether they have bought from the firm before, their industry and interests, and whether they are the key decision makers of the businesses. At the trade show, Sheila is engaging in which stage of the personal selling process. a. Prospecting b. Preapproach c. Closing the sale d. Making the presentation e. Approach

a. Prospecting

Which of the following is NOT a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years? a. The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. b. Because of an increased focus on value, consumers are more responsive to promotional offers. c. Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general. d. Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts.

a. The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods. (This shift in how promotional dollars are used has occurred for several reasons. Heightened concerns about value have made customers more responsive to promotional offers, especially price discounts and point-of-purchase displays. Thanks to their size and access to checkout scanner data, retailers have gained considerable power in the supply chain and are demanding greater promotional efforts from manufacturers to boost retail profits. Declines in brand loyalty have produced an environment in which sales promotions aimed at persuading customers to switch brands are more effective. Finally, the stronger emphasis placed on improving short-term performance results calls for greater use of sales promotion methods that yield quick (although perhaps short-lived) sales increases.)

Amelia is partnering with Frank, an engineer, to try and sell a new aerospace product. Amelia 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. Amelia is very eager to make sales. Normally, Amelia likes to work alone, but she appreciates Frank's expertise because she thinks it'll help increase sales significantly. Amelia 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, Frank will also provide the client organization with assistance on its applications and system design. Amelia and Frank are engaged in team selling. a. True b. False

a. True

Dell sells to both individual customers through its site as well as through retailers such as Best Buy. Sales have been down lately as a competitor just came out with a new, popular product. Dell 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 computers. The consumer will receive a form that they will need to fill out and mail to Dell to receive the money. Dell 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. The first type of sales promotion mentioned is a(n) _______ sales promotion. The second type is a _______ sales promotion. a. consumer; trade b. trade; consumer c. consumer; reseller d. individual; company e. trade; retail

a. consumer; trade

Sales promotion can increase sales by providing _______. a. extra purchasing incentives b. greater social media exposure c. a reduced price d. opportunities to win more products e. sales deterrents

a. extra purchasing incentives

The purpose of the _______ stage of the personal selling process is to determine customers' future needs and create a solid relationship with the customer. a. following up b. prospecting c. overcoming objections d. approach

a. following up

Landon has a part-time job as a salesperson for JCPenney, a retail department store. Landon's job is best classified as a(n) _______. a. inside order taker b. order getter c. missionary salesperson d. trade salesperson

a. inside order taker (Landon is an inside order taker. An inside order taker is an order taker who works in a sales office and receive orders. Some inside order takers such as retail salespeople communicate with customers face to face.)

During the personal selling process, a salesperson should, if possible, handle objections _______. a. when they arise b. immediately after the approach c. after the trial close d. during the follow-up

a. when they arise (One of the best ways to overcome objections is to anticipate and counter them before the prospect raises them. However, this approach can be risky because the salesperson may mention objections that the prospect would not have raised. As a result, the salesperson should handle objections as they arise.)

A sales manager has analyzed the cost of the average salesperson in her firm and has determined that hiring an additional salesperson would not bring in more revenue than the cost of that salesperson. The sales manager is performing which sales management task? a. Recruiting salespeople b. Determining the size of the sales force c. Training salespeople d. Setting sales objectives

b. Determining the size of the sales force (The sales manager is determining the size of the sales force. Sales force size can be determined using analytical techniques such as a marginal analysis in which additional salespeople are added to the sales force until the cost of an additional salesperson equals the additional sales generated by that person.)

A salesperson should always anticipate and counter objections before the prospect raises them. a. True b. False

b. False

Experts have determined that good salespeople exhibit a set of generally accepted characteristics. a. True b. False

b. False

Which of the following is the most expensive sales promotion method? a. Point-of-purchase materials b. Free samples c. Consumer contests d. Coupons e. Premiums

b. Free samples

When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is least likely to affect decisions regarding sales promotion methods? a. The legal environment b. Product packaging c. Product durability d. Customer shopping patterns

b. Product packaging

Which of the following involves the salesperson joining with people from the firm's financial, engineering, and other functional areas? a. Traditional selling b. Team selling c. Relationship selling d. Missionary selling e. Sales force management

b. Team selling

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

b. Team selling (Team selling is advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies. Examples include medical supplies and jet engines.)

Which of the following are likely to restock shelves, obtain more shelf space, set up displays, provide in-store demonstrations, and distribute samples to store customers? a. Technical salespeople b. Trade salespeople c. Missionary salespeople d. Inside salespeople e. Support personnel

b. Trade salespeople

To boost sales, ACME Corp. launched a sales promotion effort that required individuals to compete for a free iPad by collecting stickers on the inside of packaging of ACME widgets. This best describes a _______. a. consumer contest b. consumer game c. coupon d. rebate e. sweepstakes

b. consumer game

Mackenzie works closely with retailers who sell her company's products—fancy watches. Lately, one retailer has seemed reluctant to order more watches. According to the retailer, it does not seem to experience enough sales from their watches to justify selling them. Mackenzie's firm tells the retailer that it will include a silver tray with its next shipment of watches if the retailer will commit to purchasing one more shipment of their newest watch product and display the watches on the tray for at least a week. This is an example of a _______. a. push money b. dealer loader c. free merchandise d. merchandise allowance e. dealer listing

b. dealer loader

Lindsay is an exercise equipment salesperson. When making a sales presentation, she realizes that _______ would be most beneficial in keeping the potential customer's attention and enhancing the presentation. a .handing out an informational packet b. inviting the prospect to use the equipment c. overcoming objections d. showing a video of the equipment in use

b. inviting the prospect to use the equipment (The salesperson should have the prospect touch, hold, or use the product. If possible, the salesperson should demonstrate the product or invite the prospect to use it.)

Relationship selling differs from traditional personal selling due to its adoption of a(n) _______. a. recovery behavior b. long-term perspective c. automation technology d. short-term perspective e. team approach

b. long-term perspective

Lisa's position requires that she increase sales of her company's products. She finds ways to get existing customers to repurchase and finds new customers for her company's products. Lisa would best be described as a(n) _______. a. order taker b. order getter c. technical salesperson d. missionary salesperson

b. order getter (An order getter is a salesperson who sells to new customers and increases sales to current customers. Order getters include current-customer salespeople and new-business salespeople.)

Josh, who has an engineering degree, gives practical assistance to ACME Corp.'s current customers, advising them on product characteristics and applications, system designs, and installation procedures. Josh is best described as a(n) _______. a. missionary salesperson b. technical salesperson c. support person d. trade salesperson e. inside salesperson

b. technical salesperson

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) _______. a. missionary salesperson b. trade salesperson c. inside order taker d. technical salesperson e. outside salesperson

b. trade salesperson

When creating sales territories, managers should try to create territories _______. a. with similar shapes b. with similar sales potential c. that focus on urban areas d. that are geographically divisive e. that are the same size

b. with similar sales potential

Maria receives a fixed salary plus a commission based on sales volume after she sells $20,000 worth of merchandise for her company. Which of the following best describes her compensation? a. Salary benefits compensation plan b. Straight commission compensation plan c. Combination compensation plan d. Straight salary compensation plan e. Salary plus compensation plan

c. Combination compensation plan

Which of the following is NOT a factor affecting the routing and scheduling of sales calls? a. Sales call frequency b. Sales call duration c. Compensation method d. Sales territory size and shape e. Number of customers in the territory

c. Compensation method

Which of the following trade sales promotion methods is best suited to high-volume, high-profit, easily handled products? a. Scan-back allowance b. Cooperative advertising c. Merchandise allowance d. Dealer loader e. Buy-back allowance

c. Merchandise allowance

Which of the promotion methods is the most precise? a. Sales promotion b. Publicity c. Personal selling d. Advertising e. Public relations

c. Personal selling

Amelia is partnering with Frank, an engineer, to try and sell a new aerospace product. Amelia 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. Amelia is very eager to make sales. Normally, Amelia likes to work alone, but she appreciates Frank's expertise because she thinks it'll help increase sales significantly. Amelia 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, Frank will also provide the client organization with assistance on its applications and system design. What type of compensation system does Amelia have for her personal selling efforts? a. Straight salary compensation plan b. Profit-sharing compensation plan c. Straight commission compensation plan d. Combination compensation plan e. Team-based compensation plan

c. Straight commission compensation plan

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. a merchandise allowance b. a dealer listing c. a sales contest d. a dealer loader

c. a sales contest

ACME Corp. is running a sales promotion in which it offers to give retailers $1 for each case of widgets purchased during the promotion. This best describes _______. a. dealer listing b. free merchandise c. buying allowance d. dealer loader e. cooperative advertising

c. buying allowance

Taco Bell would like to create a sales promotion event 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. a. premium b. frequent-user incentive c. consumer contest d. consumer sweepstakes e. consumer game

c. consumer contest

The Kenmore brand released a new type of appliance. Shelby 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. a. free sample b. point-of-purchase display c. demonstration d. premium e. money refund

c. demonstration

Madeline works in the sales division of an office supply business. Most of her time is spent on the phone talking to current clients. Some of these customers consist of individual businesses, while others are retailers that will resell the office supplies. Most of Madeline's job involves taking reorders from their customers. Sometimes she also calls to ensure the products were delivered on time. Madeline is most likely a(n) _______ focused on _______. a. technical salesperson; current-customer sales b. missionary salesperson; new-business sales c. inside salesperson; current-customer sales d. trade salesperson; current-customer sales e. support salesperson; new-business sales

c. inside salesperson; current-customer sales

As the scenario describes Dell agrees to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays. This is most likely a _______. a. dealer loader b. cooperative advertising c. merchandise allowance d. buy-back allowance e. free merchandise promotion

c. merchandise allowance

Ryan and Megan sell printing solutions for the same company. Their target customers are small businesses with low printing volume. Their sales territories have the same sales potential, but Megan's territory covers the Atlanta metropolitan area while Ryan's territory is much larger and covers the rest of Georgia. As a result of the difference in size between the two territories, Ryan _______. a. will have much larger sales than Megan b. works the same as Megan since their territories have the same sales potential c. must work harder and longer to generate the same sales volume as Megan d. has a larger income potential than Megan

c. must work harder and longer to generate the same sales volume as Megan (Because of the larger territory, Ryan must work harder and longer to generate the same sales volume as Megan. If they are given the same amount of time, Megan will be able to see more customers on average because of the smaller geographic area of her territory, giving her larger income potential if they have the same commission structure.)

As the scenario describes, Dell plans to create a sales promotion in which it will send a specified amount of money to consumers who purchase their line of more expensive computers. This is most likely a _______. a. money refund b. buy-back allowance c. rebate d. cents-off offer e. coupon

c. rebate

Sales force objectives for the entire force are normally stated in terms of all of the following, except _______. a. unit sales volume b. market share c. sales territory d. dollar sales volume e. profit

c. sales territory

During a sales presentation, Tom asks, "When will you be available next week for our delivery team to install your new windows, Mrs. Gibson?" This is an example of a(n) _______. a. objection b. follow-up c. trial close d. recommendation

c. trial close (When the salesperson asks the customer several questions that assume they are buying the product, this is known as a trial close. The salesperson might ask the potential customer about financial terms, desired colors or sizes, or delivery arrangements.)

_______ are promotions that allow buyers to pay less than the regular price to encourage purchase, and _______ are promotions in which a consumer is sent a specified amount of money for making a single purchase. a. Premiums; money refunds b. Coupons; rebates c. Money refunds; premiums d. Cents-off offers; rebates

d. Cents-off offers; rebates (Cents-off offers are promotions that allow buyers to pay less than the regular price to encourage purchase. Rebates are promotions in which a consumer is sent a specified amount of money for making a single purchase.)

Which of the following is true about team selling? a. It involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. b. It usually involves the engineer or technical person taking the lead. c. It is usually suited for salespeople who operate in a highly competitive environment. d. It can be used to address short-term situations or ongoing needs. e. It is most effective for mature products that do not have much complexity.

d. It can be used to address short-term situations or ongoing needs.

Which of the following is the most important with business-to-business transactions involving the purchase of expensive products? a. Public relations b. Publicity c. Sales promotion d. Personal selling e. Advertising

d. Personal selling

Which of the following trade sales promotion methods is appropriate when personal selling is an important part of the marketing effort? a. Free merchandise b. Merchandise allowance c. Buy-back allowance d. Push money e. Dealer loader

d. Push money

At the end of each day, Deshawn submits a _______ to his sales manager that identifies the customers called on and provides detailed information about interactions with those clients. a. list of invoices b. customer feedback report c. performance standard d. call report

d. call report (The call report identifies the customers called on and provides detailed information about interactions with those clients. The information provided in the call report provides insights about Deshawn's performance.)

Randy Whitacre of Randy's Hardware is talking to one of his employees about a salesperson that had stopped by earlier in the day. Randy thought the salesperson had done a bad job with _______ because he had no idea what specific products Randy's Hardware sold or what the store's needs were. a. closing b. making the presentation c. following up d. preapproach

d. preapproach (The salesperson had done a poor job with preapproach. He did not take the time to find and analyze information about the specific needs of Randy's Hardware and was not able to develop a presentation that precisely communicates with Randy.)

Walmart is requiring more trade sales promotion from manufacturer Procter & Gamble to keep extensively promoting its products and displaying them on its shelves. Procter & Gamble will most likely comply with Walmart's request because _______. a. declines in brand loyalty have made sales promotions aimed at persuading customers to switch brands more effective b. Procter & Gamble prefers sales promotion over the costlier advertising c. retailers like Walmart have become more interested in long-term performance d. retailers like Walmart have gained considerable power in the supply chain e. heightened concerns about value have made customers more responsive to promotional offers

d. retailers like Walmart have gained considerable power in the supply chain

Which of the following support personnel or take orders, follow up on deliveries, and provide technical information? a. Trade salespeople b. Support personnel c. Technical salespeople d. Missionary salespeople e. Inside salespeople

e. Inside salespeople

Which of the following is true about relationship marketing? a. Relationship marketing is used more for business-to-consumer marketing. b. Relationship marketing is necessary for salespeople to be successful. c. Relationship marketing is only necessary for personal selling. d. Relationship marketing usually involves selling in teams. e. Relationship marketing involves interactions with customers over the long term.

e. Relationship marketing involves interactions with customers over the long term.

What type of sales position is Frank most likely to occupy? a. Inside salesperson b. Missionary salesperson c. Outside salesperson d. Trade salesperson e. Technical salesperson

e. Technical salesperson

Overuse of cents-off offers might lead to _______. a. fraud b. misredemption c. less brand loyalty d. complicated redemption e. a cheapened brand image

e. a cheapened brand image

In recent years, sales promotion has increased at the expense of _______. a. public relations b. buzz marketing c. trade promotion d. personal selling e. advertising

e. advertising

Salespeople from ACME Corp. are searching for potential customers from company sales records, trade shows, commercial databases, newspaper announcements, public records, telephone directories, trade association directories, and many other sources. This is best described as _______. a. presenting b. following up c. closing the sale d. approaching e. prospecting

e. prospecting