MGMT 454 Final Exam
Which of the following is most likely to be an economic buying influence? A. An engineer B. A senior officer C. A purchasing agent D. A production supervisor E. A financial analyst
B. A senior officer
True or False: Listening skills are one of the top five skills needed to be successful in a solutions selling model according to a recent survey of sales executives.
True
True or False: Many sales forces are taking-on a bigger role in identifying new product opportunities for their companies.
True
True or False: One danger of using price discounts to close a sale is that the customer may seek further discounts in the future.
True
You have a top notch, energetic, dynamic sales performer who is asking to be promoted to a sales manager
You will lose this person's revenues as they transition away from production to management Aggressive, dynamic sales producers are often individual contributors and may 'scorch' their new sales team, resulting in unnecessary voluntary terminations. The best sales managers are often not the best producers. They are good listeners, demonstrate patience and take deliberate action. If you are going to promote a hyper performer to sales manger, be sure to give them training that helps them develop their people and analytical skills...and patience.
Hot Referral
a person you know introduces you to their friend/colleague
Warm Referral
a person you know says you can use their name
True or False: It is usually necessary to establish rapport prior to engaging in customer needs analysis.
True
How many approaches should make before 'suspending' a Referred "Suspect" and calling the referrer? 1-2 5-6 3-4 7
3-4
You should be able to figure out 3 of a person's traits what % of the time?
65%
During the Pursuit Phase, how many approach attempts should you make before abandoning a Targeted "Suspect?" 1-2 5-6 3-4 7
7
By observing a person for about 2 minutes, you should be able to figure out his/her dominant trait what % of the time?
85%
The main objective of a salesperson's formal presentation is to: A. Explain how your product or solutions meets the Prospect's needs and pains B. Establish rapport C. Minimizing all other competitive products on the market D. Handle concerns effectively E. None of the above
A. Explain how your product or solutions meets the Prospect's needs and pains
May I ask you a few questions about your current manufacturing processes?" is an example of a: A. Permission question B. Fact-finding question C. Feeling-finding question D. Verification question
A. Permission question
Which of the following are commonly performed by independent sales agents? A. Prospecting for new customers B. Advertising C. Product Delivery D. B and C E. All of the above are performed by independent sales agents
A. Prospecting for new customers
"The planning, organizing, leading, and control of personal contact programs designed to achieve the sales and profit objectives of the firm" is a definition of: A. Sales Management B. Personal Selling C. Sales Support D. The relationship selling model E. none of the above
A. Sales Management
According to Wilson Learning Corporation's process for addressing customer concerns, what is the first thing you should do after listening to a client's concern? A. Share the concern with the buyer B. Clarify the real issue C. Problem solve D. Present alternative solutions E. None of the above
A. Share the concern with the buyer
An economic buying influence is likely to be further up the organizational ladder under what condition A. The more depressed the firm's business condition B. The more experience they have with you and you company C. The less expensive the product D. Both B and C E. None of the above
A. The more depressed the firm's condition
User buyers are most likely to be concerned with which of the following issues? A. The operational advantages of the purchase B. Dollar amount of the purchase C. The purchasing organization's business condition D. The potential organizational impact of the purchase E. The impact on the final consumer
A. The operational advantages of the purchase
In the sales classic "Spin Selling," a study off 35,000 B2B sales calls, written by industrial psychologist Neil Rackham, sales executives with the highest closing rates: A. Exhibited the highest number of closing behaviors B. Exhibited almost no overt closing behaviors C. Developed the costs and implications of doing nothing D. Developed the personal consequences of doing nothing for decision makers E. called personal consequences "Pain"
B. Exhibited almost no overt closing behaviors C. Developed the costs and implications of doing nothing D. Developed the personal consequences of doing nothing for decision makers E. called personal consequences "Pain"
When a strong outside sales person applies the skills she/he perfected in successful transactional B2C sales to complex, consultative B2B sales, she/he will: A. Have the same high closing rates B. Have very low closing rates C. May be asked to leave the premises
B. Have very low closing rates C. May be asked to leave the premises
Which elements of this scripted 'cold' phone conversation should you use? A. Hi, Ms. Smith, my name is Chris James, and I'm an account rep with Business Safety Technologies. How are you today? (pause) Excellent! Let me describe the services we offer to other satisfied clients in your industry. We provide unique safety programs to improve your safety B. Hi, Ms. Smith, my name is Chris, and this is a sales call. I promise to take no more than three minutes of your time. C. If I can help you in any of the areas we specialize in, we may talk further, but if not, I'll get you right back to work. Would that be OK? D. Thanks! We work with companies in the following industries (list 2 -3 and be sure they include the Prospect's) and help them if they are having problems with A, B or C (select those that are most likely). Are any of these issues for you?
B. Hi, Ms. Smith, my name is Chris, and this is a sales call. I promise to take no more that three minutes of your time. C. If I can help you in any of the areas we specialize in, we may talk further, but if not, I'll get you right back to work. Would that be OK? D. Thanks! We work with companies in the following industries (list 2 -3 and be sure they include the Prospect's) and help them if they are having problems with A, B or C (select those that are most likely). Are any of these issues for you?
The most effective way to close a sale and to get the customer's signature on the order form is generally through: A. Advertising B. Personal, face-to-face selling C. Public relations D. Sales promotions E. Both A and B
B. Personal, face-to-face selling
Identifying customers with common needs is always a part of: A. Capital Budgeting B. Segmenting C. Settle business unit objectives D. A differentiated strategy E. A harvesting strategy
B. Segmenting
Which of the following buying center people is implementation oriented, takes a tactical view of the decision, and whose daily life is most affected by the seller's product or service? A. Economic buyer B. User buyer C. Technical buying influence D. Outside expert buying influence E. The advocate
B. User buyer
According to surveys, the median age of newly appointed field sales managers is: A. 26 B. 28 C. 30 D. 32
C. 30
In the selling process, which of the following activities would occur first (before all the others): A. Answering objections B. Delivering a sales presentation C. Determining customer needs D. Closing the sale
C. Determining customer needs
A vendor analysis may examine all of the following performance criteria except: A. Reliability of delivery B. Financial stability C. Gross margin D. After sale service E. none of the above
C. Gross Margin
Market segmentation involves aggregating customers into groups that: A. Are the same size B. Are in the same industry C. Have similar needs D. Both A and B E. All the above
C. Have similar needs
Developing a plan for how you want your customers to perceive your product is referred to as: A. Customer relationship management B. A go-to-market strategy C. Positioning D. A customer strategy E. Segmentation strategy
C. Positioning
Which of the following is the first step in the typical purchasing process by organizations? A. A vendor analysis B. A request for proposal C. Recognition of needs D. Evaluating of alternatives E. none of the above
C. Recognition of needs
Technical buyers are most likely to be concerned with which of the following issues? A. The potential organizational impact of the purchase B. Dollar amount of the purchase C. Screening out suppliers not meeting product specifications D. The operational advantages of the purchase E. None of the above
C. Screening out suppliers not meeting product specifications
Focusing your product on a special part of the market is an example of: A. Capital Budgeting B. Segmenting C. Target Marketing D. Centralization E. Penetration Programming
C. Target Marketing
Written sales proposals have all of the following advantages over oral sales proposals except: A. They often help buyer-seller communications B. They may be read over time by multiple parties C. They are less expensive and easier to prepare D. They reduce the chances of misunderstandings E. All of the above are advantages of written proposals
C. They are less expensive and easier to prepare
Written sales proposals should discuss which of the following? A. The reasons for changing something B. The incentives for changing C. The solution D. The cost, time to payback and ROI E. All of the above
E. All of the above
Once a salesperson enters a Prospect's office, the first things s/he should do are: A. Hand the prospect a business cars B. Introduce him herself C. Confirm the first two elements of TAPS (time & agenda) D. All of the above
D. All of the above
This type of relationship is characterized by the selling company spending considerable time understanding the special needs of the customer and marshalling resources inside the supplier's company to meet those special needs. A. A transactional relationship B. A consultative relationship C. An enterprise relationship D. Both B and C E. Both A and B
D. Both B and C
Which of the following is likely to be associated with a request for proposal (RFP)? A. A set of product specifications B. An extensive amount of client information C. Detailed description of the length and format of the proposal D. A fixed price that the customer wants all the suppliers to charge E. A and C
E. A and C
The factor(s) which influence the number of people who are likely to be involved in the decision making process are: A. How many departments use the product B. The dollar value of the purchase C. The degree of technical sophistication of the product D. Both B and C E. All of the above
E. All of the above
When selling to an economic buying influence such as a chief executive officer, salespeople are likely to do which of the following? A. Emphasize the contract's financial consequences of the organization B. Discuss how the deal would improve the firm's large image and competitive position C. Discuss how the purchase will improve the firm's productivity D. Discuss how the product could contribute to the stability of operations E. All of the above
E. All of the above
Which of the following is true regarding the role the advocate may be expected to play in the complex business-to-business sales situation? A. Provides key information B. Sells for you when you can't be there C. Recommends selling strategies to you D. Helps you gain access to key decision makers E. All of the Above
E. All of the above
Paths for increasing revenues include which of the following? A. Acquiring new customers B. Retaining existing customers C. Selling more to existing customers D. A and B of the above E. All of the above
E. All the above
Which is not an important aspect of the sales manager's job? A. Recruiting B. Training C. Motivating D. Evaluating E. Mass Advertising
E. Mass Advertising
Which of the following are likely to be good reasons for wanting to be promoted to sales management? A. Bored with the sales job B. The opportunity to make more money C. The opportunity to exercise power over others D. Both B and C E. none of the above
E. none of the above
True of False: Trade shows are generally not very effective in generating good sales leads
False
True or False: A salesperson is well advised to provide the same level of service (e.g., number of sales calls) to all accounts in an effort to increase sales volume.
False
True or False: A typical sales management career path might be hired as a district sales manager, then be promoted to regional sales manager to national sales manager and then to the Vice President of Marketing.
False
True or False: In general, the field sales manager's job is limited to sales forecasting and budgeting, training, and motivating sales personnel.
False
True or False: In the U.S., the first step in organizational purchasing (working with the 'purchasing' or 'procurement' department) is for the buyer to develop a personal relationship with the seller.
False
True or False: It is generally good advice for salespeople to concentrate all their efforts on the purchasing agent when selling to organizations.
False
True or False: Most buying organizations assign an "advocate" to new salespeople for the purpose of educating them about their operations.
False
True or False: Most sales force automation initiatives have been successful.
False
True or False: Research has shown that direct selling costs as a percentage of sales remain fairly constant between industries.
False
True or False: Sales process models such as the Sales Funnel are best suited for salespeople selling big-ticket items (e.g., computers), where prospecting for new sales opportunities is important.
False
True or False: Selling to organizations is somewhat easier than selling to an individual consumer because organizational buying centers are staffed with professionals.
False
True or False: The best advice about when to close is to close early and decisively.
False
True or False: Value to a buyer generally means paying the lowest possible list price for a product or service.
False
In the Hannover Bates Case what could the new sales manager have done better? (check all that are correct)
He could have allowed his sales team to analyze the data, compare their performance to that of Region 6 and to have arrived at the inescapable conclusions by themselves. People believe numbers and calculations more often if they perform them themselves. He should have accepted the voluntary resignation of the senior sales executive. Doing so would have removed the legal liabilities and the disruption of having to fire him later on. This outcome was likely due to the bad habits he had developed during years of underperformance, his poor attitude and the toxic effect it would have something on the remaining sales executives.
When new sales manager Dough Bloom took over his new district, which of the following actions hurt him?
He didn't take the time to get to know members of his team and their issues before implementing changes. He tried to convince them to transition to a new program which involved longer sales cycle times, lower closing rates and reduced commissions. He didn't focus on the most important objective, meeting or exceeding his assigned revenue quotas. He prescribed solutions to problems (known as 'cram downs') rather than having his sales force assist in the analysis of problems and in the development of solutions.
Which type(s) of sales offend more prospects than others and why? A. Complex and consultative sale B. Enterprise sale C. Transactional sale
Transactions sale: The sale person, who is usually a High D/I and is compensated mostly by a commission, had only one chance to close the sale and, as result, may use transparent and manipulative closing behaviours as well as pressure.
True of False: Sales management can be defined as "the control and implementation of personal contact programs designed to achieve the sales objectives of the firm."
True
True of False: The salesperson should learn to follow up on everything that she/he requests others in the company do for the customer.
True
True or False: "Recognition by one's boss" is an example of a personal motive for making a purchase decision.
True
True or False: A "Suspect" is an unqualified Prospect.
True
True or False: A consultative relationship is likely to differ from a transactional relationship in that success depends more on intimately grasping a customer's current business issues.
True
True or False: A customer far below the breakeven sales volume may be a good candidate for servicing via phone calls, rather than face-to-face sales calls.
True
True or False: According to one study of successful and less successful salespeople, those who are successful typically open the selling process by asking questions.
True
True or False: According to salespeople, telephone interruptions are considered to be the most common time waster.
True
True or False: According to the Sales Funnel model, a "qualified" selling situation is one in which all the buying influences have been contacted.
True
True or False: An example of a problem-solution type of selling process (consultative sale) is when clients pay EDS to perform an extended study of their information needs before recommending an information system.
True
True or False: Break-even sales volume is the sales volume necessary to cover all direct selling expenses.
True
True or False: Compared to less successful salespeople, very successful salespeople are more likely to use referrals from present customers to identify prospects.
True
True or False: Customer Lifetime Value (CLV) uses an estimate of a customer's future sales.
True
True or False: For a consultative relationship to be profitable for the supplier, it usually must be a long-term relationship.
True
True or False: If during a sales presentation for industrial canning equipment you ask the prospective buyer, "Do you prefer the added labeling equipment or the automated lid cleaners?" and she replies, "The labels." You would then most likely move directly to the final close.
True
True or False: If the specifications contained in a Request for Proposal are very large in number and are unusually detailed, this could mean that the vendor has 'wired' the RFP in favor of another vendor with which it has worked in the past.
True
True or False: In a consultative selling situation, cold canvassing (as opposed to calling targeted "A" Suspects) often wastes a lot of the salesperson's time.
True
True or False: In many consultative type of sales situations, the customer may not be aware that a need or opportunity exists.
True
True or False: It is possible for one person in an organization to occupy the role of both a technical and an economic buyer.
True
True or False: It is possible for one person to function in the roles of being the user, economic, and technical buyer for a particular purchase.
True
True or False: One method for creating value in a consultative relationship is for the seller to help the customer develop a better solution to their problems than they would have discovered on their own.
True
True or False: One of the most productive uses of a salesperson's time is usually to call on existing customers, rather than on new prospects.
True
True or False: Sales people should keep their e-mails brief and mention the top 2 - 3 problems that they help their customers with.
True
True or False: Salespeople should anticipate possible customer concerns that may arise during a sales call and prepare strategies to address them.
True
True or False: Salespeople should be prepared to discuss interest rates and financing terms with the Economic Buying Influencer.
True
True or False: Target marketing refers to the selection and prioritizing of segments to which the company will market its products or services.
True
True or False: The best way to prepare a highly effective presentation or written proposal is to ask the Prospect or the Advocate what a perfect solution would look like and to ask the Prospect or the Advocate what a perfect solution would look like and to preview a draft of it.
True
True or False: The biggest time wasters for most people are activities/events that have high apparent urgency, but are low in personal importance.
True
True or False: The concept of "derived demand" refers to the close relationship between a supplier's sales to a customer (such as a distributer) and that customer's sales to their own end users.
True
True or False: The first step in developing a go-to-market strategy is to segment the market.
True
True or False: The minimum size customer that a salesperson should call on is closely related to the cost of making a sales call.
True
True or False: The most difficult sales approach occurs when the sales call is the first meeting with the suspect and there has been no prior attempt to communicate with the buyer.
True
True or False: The problem-solution model of selling is based on the notion that only certain customers will and should buy your product or service.
True
True or False: The role of the user-buyer is to determine the impact of the purchase on the job in which the product is used.
True
True or False: When engaging in a consultative or enterprise type sale, it is typical for 80% or more of the selling time to focus on needs discovery.
True
True or false: A Suspect is considered a Qualified Prospect when the have sufficient Pain, Budget and Decision making authority.
True
In the sales formula, a sale 'happens' when the values of which of the following are sufficiently high: Price Coverage Budget Wildcard Service Reputation Decision Features Trust Pain Offering Benefits
Trust, pain, Budget, decision, offering, wildcard
Closing rate
closed sales/qualified prospects
You should begin the process of hiring new outside sales rep (hunters)
immediately and continuously whenever you have or anticipate an opening whenever you have a poor performer who is not responding quickly enough to coaching whenever a sales rep has threatened to resign because their DISC profiles (High D and High I) are rare (1 in 50) and it takes awhile to find them
A qualified Prospect is one with sufficient
pain, budget, and decision