MARKETING CHAPTER 14

Most selling presentations follow the AIDA approach, attempting to secure which four aspects of the customer? (Check all that apply.)

Interest Action Attention Desire

Marcus owns a small company that doesn't have much working capital. It would be best for Marcus to pay his sales force with _____ so they only get paid when they make a sale.

a straight commission

The number of salespeople needed for a given product or brand ______.

changes as sales tasks change

In her work as a salesperson for The Computer Store, Nicole maintains contact with small service businesses that have been customers of her firm for years. She completes sales transactions and maintains relationships, keeps her customers informed of all products and services, answers their questions, and handles any complaints. Nicole's sales job has her acting primarily as a(n) ______.

order taker

Salespeople who sell to the regular or established customers, complete most sales transactions, and maintain relationships with customers are called ______.

order takers

Marla works as a salesperson at a used car dealership. She is expected to close sales on 5 cars a month. This is called a sales ___________.

quota

Order takers at ______ businesses sometimes work at a customer checkout counter making minimum wage and may be unmotivated. This can lead to poor service to customers.

retail

A sales territory can be very large or very small, depending on ______.

the market potential

Ronnie was hired to sell books through door-to-door sales. His training involved a memorized presentation with several trial closes—where he would ask the customer to buy. The approach does not change from customer to customer. Ronnie is using ______.

a prepared sales presentation.

The __________ sales presentation approach uses a memorized presentation that is not adopted to each individual customer.

prepared

True or false: One of the challenges of hiring the correct number and type of salespeople is that every sales job is different.

True

True or false: Personal selling and customer service are important in both domestic and international markets.

True

When Maria saw the long line at the airport check-in, she decided to use the kiosk and checked herself in for the flight. This kiosk is an example of which selling emphasis?

Digital self service

Which two factors determine whether a firm should use personal selling, e-commerce, or a combination of the two? (Check all that apply.)

The level of relationship building required The extent to which the information exchanged is standardized

Which of the following are characteristics of a customer service rep? (Check all that apply.)

They ensure that a customer is satisfied with their last purchase. They build repeat business by promoting a customer's next purchase. They deal with problem customers as well as regular customers.

Which of the following are characteristics of a technical specialist? (Check all that apply.)

Understands the various uses a customer may have for a product Typically has a science or engineering degree

Which of the following are steps a sales manager can take to determine how many salespeople are needed to have an effective sales force? (Check all that apply.)

Use work and customer statistics to determine how many people are required to achieve company objectives. Specify important sales tasks to be accomplished. Estimate how much work can be done by a single salesperson in a given amount of time.

When a company does not wait for a customer to contact them with a complaint, but instead uses technology and research to identify and contact seemingly unhappy customers, the company is engaging in _____.

proactive customer service

In order to identify prospects or decision makers in a customer firm, a salesperson may rely on ______. (Check all that apply.)

good detective work on her own prospect lists provided by the firm a customer relationship management database

Simone is a missionary sales person for an organic juice producer. In her role, she might also be called a(n) __________ or a detailer.

merchandiser

Another name for the consultative selling approach is the ______ approach.

need-satisfaction

Most of a customer service rep's time is spent helping to remedy ______.

problems with a purchase

Target lists provided by the firm help salespersons identify ___________.

prospects

Using your knowledge and Exhibit 14-5, place the following steps in the selling process in order; starting with the earliest step at the top.

Set effort priorities Select target customer Preplan sales call Make sales presentation Close the sale Follow up to maintain relationship

Which of the following is typical of a good salesperson?

A good salesperson will try to help the customer by understanding their needs.

Which of these sales reps is showing how technology can provide a competitive advantage for a company?

During the sales call, Rhoda was able to access data on past sales and recommend new products to her customer based on these sales.

Which of the following are ways in which the sales force can aid in the marketing information function? (Check all that apply.)

Sharing a competitor's strategy with the firm Sharing customer ideas for new products with the firm Conveying new uses that customers devise for existing products

Which of the following is not a benefit associated with training salespeople?

Improved product designs

Which two factors should be considered when deciding how much time to spend on potential customers? (Check all that apply.)

Potential sales volume Likelihood of a sale

In the personal selling process, which step comes after a salesperson has selected a target customer?

Preplanning

An order taker's job begins ______.

after an order getter has secured a customer's interest in a product.

A salesperson typically ______.

coordinates the relationship between firm and customer

When hiring salespeople, the best practices for progressive companies include _____. (Check all that apply.)

keeping an updated list of potential job candidates scheduling candidates for multiple interviews conducting thorough background checks

When a firm places special emphasis on large customers, it may use a(n) _____ to sell to these customers.

major accounts sales force

A memorized presentation that does not change depending on customer needs is called a(n) _____ sales presentation.

prepared

A salesperson does most of the talking early to make key points before bringing the customer along to answer questions in the ______.

selling formula approach

After meeting with a small business owner, point of sale technology salesman Ernesto decides that his customer would be better served by a less-complex terminal offered by a competing firm, and provides the customer with a referral. This is an example of ______.

the consultative selling approach

Personal selling is often ______.

a company's largest single operating expense

Salespeople who help others secure orders, but do not try to get orders themselves are known as ______.

supporting salespeople

Prepared sales presentations are most often used by ______.

telemarketers

Prepared sales presentations are useful when ______.

there is not a lot of time for the presentation

True or false: The National Do Not Call Registry has boosted the use of telemarketing for many companies.

False

What are three challenges associated with retail order takers? (Check all that apply.)

Repetitive tasks High turnover Minimal training

True or false: Even if the customer simply changes his or her mind about a purchase, the customer service rep must figure out a way to make the customer happy.

True

Wendy sells customized software to accountants and bookkeepers. In a series of sales calls, Wendy tries to get a good understanding of the customer's needs. She carefully considers the different software products she has available and customizes an offer for each customer. Wendy appears to be using a _____.

consultative selling approach

Several customers of Mike's Machine Works live beyond the territory of the sales force, so the company relies on a team of employees who call these customers on the phone to tell them about new products. These employees are an example of a(n) _____.

inside sales force

In order for a firm to determine the best salespeople, a _____ that includes 10-20 specific tasks or performance requirements should be developed.

job description

What is the first step in the AIDA approach?

Attention

At the company where Rick works, one sales team is responsible for selling generators, while another team is responsible for selling heating units, and a third team handles air conditioning systems. How does Rick's company divide its sales teams?

By product line

In which way can the sales force help with the marketing information function?

Identifying new competitors

Which of the following are true of order-getting? (Check all that apply.)

It involves intimately knowing the product or service. It involves searching for potential buyers.

True or false: A poor management decision about personal selling expenses can lead to lost sales.

True

Regular salesperson performance reviews help managers to ensure that ______.

areas needing attention by salespeople or management are identified compensation plans are aligned with employees' effort and results a salesperson is performing all of the tasks described in his or her job description

Which of the following are responsibilities of a salesperson? (Check all that apply.)

Explain company policies Diagnose technical problems Negotiate prices Represent the whole company

Which of the following activities are performed by supporting salespeople? (Check all that apply.)

Helping order getters and order takers Enhancing relationships with existing customers

Sales training should cover company policies and practices, product information, professional selling skills and

relationship building

Firms that pay a straight ______ to their sales force will probably need to invest more in close supervision of its salespeople.

salary

Building a competitive sales force requires paying ______.

the going market wage

Which of the following is a source of ethical conflict regarding personal selling?

A marketing mix that only partially addresses customer needs

What is one big advantage of using an inside sales force as opposed to an external sales force?

Saves time

A sales __________ allows responsibilities to be divided geographically among different salespeople in order to more efficiently service customer accounts.

territory

Firms can find it difficult to determine the correct number and kinds of salespeople because ______. (Check all that apply.)

changes in strategy may require a firm to restructure its sales force too many salespeople wastes company money too few salespeople can lead to important selling tasks being overlooked

Firms often retain an elite sales team to deal with ______.

large accounts

Jeremy is developing a compensation plan for his company's sales team. The two basic decisions he must make include the level of compensation and the _____.

method of payment

Merchandiser or detailer are alternate terms used to describe ______ salespeople.

missionary

In order to compete effectively, it is most important for firms to make use of _____.

modern technology

The Ross Consulting Group advises hospitals on ways to save money. Each situation is unique and involves a high degree of problem solving, coordination, and cooperation. There is almost no standard information sharing. The relationship between Ross Consulting Group and its customers needs _____.

personal selling

Paula's Projection Screens Inc. is trying to sell its product to a chain of movie theaters. This requires the sales rep, an engineer, and a quality control manager to attend meetings with the movie theater staff to provide answers to their questions. This is an example of _____.

team selling

In what ways does a well-written job description help a firm? (Check all that apply.)

Determining training guidelines Narrowing down the list of job candidates Creating performance expectations

When Oscar sold $100,000 worth of lighting equipment in January, he was paid $6,000. In February he sold nothing and was paid $3,000. In March he closed $50,000 in sales and was paid $4,500. It would appear that Oscar's compensation is a ______.

combination plan

When it is difficult to directly supervise the sales force, a firm might use a _____ plan to better control their sales force.

commission-based compensation

In order to make sure a firm can afford to pay competitive salaries to salespeople, managers should ______.

compare the estimated value of a salesperson to the salary amount

To attract, retain, and motivate effective salespeople, a firm needs an effective ______ plan.

compensation

After an order getter secures a customer's interest in a product, an order taker will then ______.

complete the sales transaction answer any remaining questions the customer may have

In a commission-based compensation arrangement the size of incentives should be linked to ______.

effort and results

A firm should only base its compensation plan on incentives when there is a strong correlation between ______.

employee effort and results

Order getters are responsible for ______.

establishing relationships with new customers finding new business opportunities

In July, Roseanne sold 15 printing presses that cost $10,000 each. Her compensation for the month was $15,000. In August, she was able to sell 5 printing presses and earned $5,000 in compensation. In September she sold 20 printing presses and earned $20,000. It appears that Roseanne's compensation is a ______.

straight commission plan

True or false: In order to decide how much time to spend with different customers, a sales person weighs the potential sales volume and the potential for a sale for each customer.

True

Which of the following activities are performed by order takers? (Check all that apply.)

Completing sales transactions Selling to established customers Maintaining customer relationships

An ATM found at a grocery store is an example of which selling emphasis?

Digital self-service

Which of the following are characteristics of good salespeople? (Check all that apply.)

They build lasting relationships. They try to understand the customers' needs. They present advantages and disadvantages of their products. They try to help the customer to buy.

What are three characteristics of missionary salespeople? (Check all that apply.)

They develop goodwill and stimulate demand. They help intermediaries train their salespeople. They work for producers.

True or false: Customer service is important to both business customers and final consumers.

True

Customer service reps play the role of ______.

customer advocates

Poor customer service reduces the firm's ______.

customer equity

A ______ rep works with customers to resolve problems that arise with a purchase.

customer service

When customers of High Mountain Internet Services have a problem with their service, they call and talk to Jared. Jared tries to help customers resolve any problems and encourages them to remain clients of High Mountain. Jared sounds like a(n) ______.

customer service rep

During her sales call to the housing contractor, Kendra was discussing the new home monitoring system her company had introduced. When she wasn't able to answer an electrical question about the system, she called Marietta at the company for the answer. Marietta is acting as a(n) ______.

technical specialist

Selling over the telephone is known as ______.

telemarketing

Customer service reps usually ______.

work to remedy something that went wrong with a customer purchase

Which of the following are considered basic sales tasks? (Check all that apply.)

Order-taking Order-getting Supporting

The level of sales or profits that a salesperson is expected to produce in a given time period is known as a ______.

sales quota

When customers are located far from a company, the only link between the customers and the company might be the _____.

salesperson

When several employees work together on the same account and each handles a different sales task, they are said to be ______.

team selling

The first step that sales managers take in order to decide how many salespeople are needed is ______.

to estimate how much work can be done by one person in a given time period

Companies often neglect teaching selling techniques as part of a salesperson's ____________ because they assume anyone can do it and that the only qualification is a friendly personality.

training

In order to select good salespeople, a company should ______.

use a systematic approach based on different inputs

From one country to another, the techniques used for personal selling and customer service ______.

vary

Which of the following statements about the consultative selling approach is true?

It requires tailoring a sales presentation to individual customer needs.

Jesse T. works for a professional hockey franchise and sells season tickets to corporate clients. Jesse typically cold-calls big companies and tries to establish relationships with those customers. He has developed a well-organized sales presentation to sell the ticket packages and sponsorships he can offer. Which basic sales task is Jesse performing?

Order getter

Which of the following are important areas to cover in sales training? (Check all that apply.)

Product information Professional selling skills Company policies and practices Relationship building

Which of the following are methods a company should employ to compensate the sales force? (Check all that apply.)

Sales contests among salespeople Personal and public recognition for accomplishments Competitive salary and commissions

Lilly doesn't want to pay her sales team unless they make a sale. Which compensation plan should Lilly use?

Straight commission

Which of the following are basic methods of paying salespeople? (Check all that apply.)

Straight salary Straight commission Combination of salary and commission

A prepared sales presentation always includes a(n) __________, a request for a customer to place an order.

close

Sales managers should regularly ______.

evaluate the performance of salespersons

Carl works for a producer of vitamins and supplements. He is very knowledgeable about all of his company's products and those sold by the competition. He calls on the wholesalers and retailers in his territory, generating interest in his company's products and training retailers' sales staff. When a retailer is ready to buy, Carl turns the business over to a wholesaler's sales rep. Carl is a(n) ______.

missionary salesperson

When customers consider whether to buy the same product a second time, they are most likely to think about ______ first.

negative experiences

At the end of her sales presentation, Jessica asked the potential customer to place an order, also known as a ______.

close

Which of the following should managers consider when developing a compensation plan? (Check all that apply.)

The method of compensation The level of compensation

The types and numbers of salespeople needed should be determined ______.

on an ongoing basis

Salespeople who work to generate new business opportunities and build relationships with customers are known as ______.

order getters

Sol routinely handles his regular customers, big or small. He likes to maintain the hands-on contact and make sure his regular customers are happy. Sol is a(n) ______.

order taker

The three basic sales tasks are ______.

order-getting, order-taking, and supporting

Ethical decisions may require salespersons to balance ______.

personal interests customer interests company interests

Samsung uses inbound telemarketing to respond to customer questions. In addition, the company has people who search the Internet and access big data from Facebook, Twitter, blogs, and discussion forums to find complaints related to Samsung and to attempt to remedy the complaint. The company is using a(n) ______ customer service policy.

proactive

The biggest advantage to specializing sales people by product line is that it _____.

provides a level of expertise to the customer

While paying a salesperson a straight ___________ provides the most security for the salesperson, a straight ___________ offers the most incentive and is tied to results.

salary; commission

When the salesperson begins a presentation with several standardized remarks, then leads the customer through questions designed to determine the correct closing strategy, he or she is using ______.

the selling formula approach