Marketing Chapter 13

10) Which of the following is true of a territorial sales-force structure? A) It clearly defines each salesperson's job and establishes accountability. B) It benefits firms with many technological products requiring technically skilled salespeople. C) It is used by firms that organize their sales forces along customer or industry lines. D) It requires salespeople to sell a wide variety of products over a broad geographic area. E) It differentiates the sales force solely on the basis of product expertise.

A.

12) Which of the following statements is true of a product sales-force structure? A) A product sales-force structure is characterized by specialization along product lines. B) A product sales-force structure is used when a company has only one product line. C) A product sales-force structure requires every salesperson to be an expert in all the product categories of the company. D) A product sales-force structure organizes the sales force along customer or industry lines. E) A product sales-force structure uses a single sales force across different product lines.

A.

21) Lemony Inc. sells its popular bottled lemonade — the company's only product — in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.? A) market and territorial B) market and customer C) product and territorial D) market and product E) geographical and product

A.

23) Which of the following is most likely true about a sales force in the field? A) They build relationships with customers through face-to-face collaboration. B) They make most sales from their offices via media interactions. C) They provide administrative backup for outside salespeople. D) They rely on telemarketing efforts to gain leads and clients. E) They are prohibited to sell or service accounts directly.

A.

26) Which of the following is most likely true of a sales force? A) The performance difference between an average salesperson and a top salesperson is generally substantial. B) The cost of replacing a salesperson is usually low because minimal training is necessary. C) A sales force with many new people is typically more productive than one whose members have been around for a long time. D) Individuals within a sales force generally perform at the same level of efficiency. E) On-site sales training is more efficient and less costly than e-learning programs.

A.

28) Sales managers use a ________ that shows which customers and prospects to pursue and which activities to carry out. A) call plan B) sales quota C) sales contest D) bonus plan E) straight commission

A.

33) How have social media tools most likely affected personal selling? A) reducing the use of person-to-person selling efforts B) increasing the costs of selling products and services C) changing the basic fundamentals of interpersonal selling D) increasing the number of product reports given to customers E) slowing the sales-force response rate to customers' problems

A.

52) In which step of the selling process does a salesperson set call objectives? A) preapproach B) approach C) presentation D) qualifying E) prospecting

A.

54) Harry Potts is a salesperson for a national pet food company. He meets Karen Sharp, a buyer for a large, specialty pet retailer, and speaks to her at length about the product categories and brands of pet food the retailer currently carries as well as future needs. At which step of the selling process is Harry Potts in the above scenario? A) approach B) preapproach C) qualifying D) prospecting E) closing

A.

57) In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying? A) handling objections B) closing C) follow-up D) prospecting and qualifying E) preapproach

A.

59) What is the last step in the selling process? A) follow-up B) closing C) handling objections D) presentation E) prospecting

A.

72) In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail? A) rebate B) coupon C) sample D) premium E) price pack

A.

73) A toothpaste manufacturer that bands two products together, selling two for the price of one, is using which type of consumer promotion tool to build short-term sales? A) price packs B) coupons C) rebates D) advertising specialties E) samples

A.

77) AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________. A) event marketing program B) premium C) point-of-purchase promotion D) trade promotion E) price pack

A.

82) ________ help companies reach many prospects that are not reached through their sales forces. A) Trade shows B) Rebates C) Allowances D) Point-of-purchase promotions E) Sweepstakes

A.

9) A company that sells only one product line to one industry with customers in many locations would typically use a ________. A) product sales-force structure B) territorial sales-force structure C) market sales-force structure D) customer sales-force structure E) complex sales-force structure

B

36) The use of an inside sales force has grown due to the surge in online, mobile, and social media technologies.

True

58) In which of the following steps of the selling process does a salesperson ask a buyer for an order? A) preapproach B) qualifying C) closing D) prospecting E) approach

C.

71) ________ are certificates that save buyers money while they purchase specified products. A) Price packs B) Samples C) Coupons D) Point-of-purchase promotions E) Premiums

C.

14) GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE Infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a ________ sales-force structure. A) market B) product C) customer D) territorial E) complex

B.

20) Sleek Designs markets a wide range of kitchen cabinets, counter tops, and ceramic tile. Its salespeople are initially divided on the basis of their expertise in a product category. They're then further divided into teams addressing large home improvement retailers, kitchen and bath suppliers, and specialty home improvement stores. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure? A) territorial and market B) product and market C) product and territorial D) geographical and product E) market and customer

B.

27) A(n) ________ is the variable amount in a salesperson's compensation. A) bonus B) commission C) salary D) incentive E) profit-sharing plan

B.

30) ________ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products. A) Sales promotions B) Sales quotas C) Display allowances D) Time-and-duty analyses

B.

48) Salespeople need to know how to ________ leads, that is identifying good leads and screening out poor ones, at the beginning of the selling process. A) approach B) qualify C) consolidate D) generate E) manage

B.

60) The salesperson completes any details on delivery time, purchase terms, and other matters during the ________ step of the selling process. A) closing B) follow-up C) handling objections D) presentation E) prospecting

B.

68) Which of the following statements is true of consumer promotions? A) Their primary objective is to persuade resellers to carry a brand. B) They include a wide range of tools like samples, coupons, and refunds. C) They include the use of display allowances. D) They are primarily used to generate business leads and reward customers. E) They include the use of conventions and trade shows.

B.

70) The manufacturer of Two-In-One, a combination shampoo and conditioner, shrink wraps a 4- ounce foil packet of a smoothing hair pomade to its combo product. Which of the following promotion tools is being used in this case? A) rebates B) samples C) coupons D) advertising specialties E) price packs

B.

83) Which of the following is most likely an example of a business promotion tool? A) a free DVD for customers who purchase a new television at a retail store B) a trade fair showcasing a new audio system developed by an electronics firm C) a sweepstakes program inviting customers to enter for the chance to win a new car D) a toaster being sold at half its list price for any buyer who purchases a food processor E) a display allowance for retailers who feature a manufacturer's product in a favorable manner

B.

16) In which of the following structures does a company organize its sales force along customer or industry lines? A) demographic sales-force structure B) service sales-force structure C) market sales-force structure D) territorial sales-force structure E) product sales-force structure

C.

18) If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure. A) undifferentiated B) product C) market D) territorial E) demographic

C.

25) Which of the following statements is most likely true of team selling? A) It is used most often when the group of target customers is small and homogeneous. B) It consists of experts from a single area of the selling firm such as marketing or finance. C) It can unearth problems and provide solutions that no individual salesperson could. D) It is most often implemented when products are simple and distribution costs are low. E) It simplifies the process of evaluating the individual contributions of sales team members.

C.

34) The fastest-growing sales trend is ________ that involves the use of online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance. A) personal selling B) online selling C) social selling D) tele selling

C.

49) In which step of the selling process does a salesperson or company identify qualified potential customers? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C.

50) Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to identify potential customers in an effort to build long-term profitable relationships. Karen Rogers is engaging in which step of the selling process? A) demonstration B) preapproach C) prospecting D) approach E) presentation

C.

76) Wisconsin Cheddar has introduced an aged jalapeno cheddar. Displays are set up at various retail cheese stores in the state and patrons are offered free samples as well as $2 off coupons. Which promotion tool is Wisconsin Cheddar most likely using? A) rebates B) price packs C) point-of-purchase promotions D) coupons E) advertising specialties

C.

1) Which of the following statements is true of salespeople? A) They do not work with wholesalers and retailers. B) They are employed mostly in click-only companies. C) They do not represent the customers to the company. D) They represent a company to its customers by communicating and selling. E) They represent a new class of professionals who have emerged as part of the steep rise in retailing.

D.

15) Which of the following examples represents a product sales-force structure? A) Venson's produces frozen dinners at its factory in Ohio, and it sells them across the country through a network of sales representatives organized into regional and territorial tiers. B) AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and beauty parlors by selling teams assigned to serve small groups of key customers. C) Verra Designers operates from its landmark store in uptown New York and customers from all over the world come to this store to buy original merchandise at steep prices. D) Carlton Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range. E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the country through a network of area and regional sales officers.

D.

17) Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy, and Home Depot. Each Whirlpool sales team aligns with the large customer's buying team. Whirlpool has most likely adopted a ________ sales-force structure. A) product B) team-based C) territorial D) market E) complex

D.

2) The concept of ________ lends even more importance to the salesperson's customer-relationship-building abilities. A) sales-force territory B) sales promotion C) sales-force management D) salesperson-owned loyalty E) sales-force structure

D.

31) Weekly or monthly work plans used by management to get information about salespeople are referred to as ________. A) sales quotas B) ROI plans C) call objectives D) sales reports E) call plans

D.

32) Salespeople write up their completed activities in a(n) ________. A) sales quota report B) profit-sharing plan C) call plan D) call report E) expense report

D.

55) The presentation stage of the selling process most likely involves ________. A) cold calling in the absence of potential leads B) fixing the final meeting with a customer to close a deal C) gathering information about an organization and its buyers D) showing how a company's products can solve a customer's problems E) requesting an order from the customer after handling any minor objections

D.

61) Global Insurance sells health and life insurance policies to Fortune 500 companies for its employees. The company's salespeople regularly contact decision makers to ensure that the necessary paperwork has been filed and that contracts are executed. Updates are also provided regularly about premium changes for health insurance. Which of the following steps of the selling process does this scenario depict? A) approach B) presentation C) closing D) follow-up E) preapproach

D.

67) A freestanding insert in the Sunday newspaper for a local restaurant that contains a $5 off coupon for any meal over $20 is an example of a promotion targeted at ________. A) government buyers B) salespeople C) business customers D) final buyers E) retailers and wholesalers

D.

75) Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using? A) coupons B) price packs C) samples D) advertising specialties E) rebates

D.

78) Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions. A) consumer B) point-of-purchase C) sales-force D) trade E) business

D.

81) Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________. A) price pack B) rebate C) sample D) allowance E) discount

D.

84) Conventions, trade shows, and sales contests are types of ________. A) point-of-purchase promotions B) trade promotions C) advertising specialties D) business promotions E) premiums

D.

19) Companies that organize their sales force by customer and territory; product and territory; product and customer; or territory, product, and customer are using a ________ sales-force structure. A) market B) simple C) product D) territorial E) complex

E.

11) Rug Designs Inc, a manufacturer of large area rugs, markets its products throughout the United States using a network of regional sales offices. They are using a ________ sales-force structure. A) market B) customer C) product D) regional E) territorial

E.

13) Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure. A) customer B) product C) complex D) distributor E) territorial

E.

22) Which of the following is a characteristic of an inside sales force? A) It travels to make sales calls on customers in the field. B) It receives administrative backup from outside sales forces. C) It cannot sell or service accounts directly. D) It eliminates the need to have an outside sales force. E) It conducts business from an office via telephone.

E.

24) ________ use the phone, Internet, and social media to find new leads, learn about customers and their business, or sell and service accounts directly. A) Outside salespeople B) Sales managers C) Sales assistants D) Technical sales-support people E) Telemarketers and online sellers

E.

29) What is the purpose of a sales manager using a time-and-duty analysis? A) compensating salespeople B) prospecting customers C) recruiting salespeople D) forming sales teams E) supervising salespeople

E.

51) In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call? A) approach B) follow-up C) demonstration D) handling objections E) preapproach

E.

53) The salesperson should know how to meet and greet the buyer and get the relationship off to a good start in which step of the selling process? A) prospecting B) preapproach C) presentation D) qualifying E) approach

E.

69) ________ are offers of a trial amount of a product. A) Cash refunds B) Price packs C) Rebates D) Coupons E) Samples

E.

74) Cracker Jack, an American brand snack of caramel-coated popcorn and peanuts, has been in existence since 1896. The brand became popularized due to its free prize inside every box. Which of the following promotion tools does this exemplify? A) rebate B) coupon C) price pack D) sample E) premium

E.

79) What is the primary goal of trade promotions? A) boosting long-term relationships with final buyers B) motivating salespeople to attend trade shows C) generating qualified business leads and contacts D) rewarding customers for frequent purchases E) persuading resellers to carry a brand

E.

80) Which of the following is a promotion tool used for trade promotions? A) sweepstakes B) price packs C) conventions D) rebates E) allowances

E.

39) A compensation plan with a larger base-salary component and a smaller commission component is most effective for driving salespersons to acquire new businesses.

False

4) Sales promotions constitute the interpersonal arm of the promotional mix.

False

5) In consumer product companies such as P&G or Nike, the sales force works directly with customers.

False

86) Digital coupons are the slowest growing coupon segment because consumers are concerned about privacy issues and spamming.

False

87) The primary objective of trade promotions is to motivate salespeople.

False

89) Sales promotions typically create short-term sales but are viewed as ineffective at building long-term customer relationships.

False

90) Providing samples is the most inexpensive way to introduce a new product.

False

91) Price reductions from rebates are given to consumers at the point of sale.

False

92) Price packs are goods offered either free or at low cost as an incentive to buy a product, such as toys included with Disney DVDs.

False

94) Contests, premiums, and displays are tools solely used for trade promotions.

False

3) Order getters typically participate in creative selling, social selling, and relationship building.

True

35) In a territorial sales-force structure, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that area.

True

37) In today's digital, mobile, and social media environments, many buyers are more receptive to — or even prefer — phone and online contact versus the high level of face-to-face contact once required.

True

38) Commissions and bonuses are variable amounts of compensation.

True

40) Sales-force automation systems enable salespeople to profile prospects, forecast sales, and prepare expense reports.

True

41) Many companies motivate their salespeople by setting sales quotas.

True

42) Sales managers use sales reports, personal observations, and customer surveys to assess the performance of sales-force members.

True

6) Salespeople represent customers to a company and represent a company to customers.

True

63) While handling buyer objections, salespeople should use a positive approach to turn logical or psychological objections into reasons for buying.

True

85) Sales promotions targeted toward final buyers are called consumer promotions.

True

88) Manufacturers provide allowances to retailers as compensation for advertising or creating special displays for their products.

True

93) Sweepstakes give consumers a chance to win something, such as cash, trips, or goods, by luck or through extra effort.

True

95) The most common evaluation method of a sales promotion program is to compare sales before, during, and after a promotion.

True