MKT 337 Final Review

During the course of a sales presentation, the customer is given the opportunity to see the performance of a sample product. The salesperson and the customer both observe how the product functions. This time period during a sales demonstration is usually known as the:

Dead time

The most frequently contacted references are ________

Former employers

Veronica is a new salesperson at an insurance company. Her primary task is to locate potential buyers of insurance products in a particular area. Veronicas activity is known as:

Prospecting

The process of determining if a lead is indeed a prospect is referred to as:

Qualifying a lead

"Mr. Rogers, if I could show you a way to increase sales in your bookstore by 20 percent per year, would you be interested?" probed Leesa. In this example, Leesa is using the _______ opening.

Question

Which of the following topics is avoided when a person prepares a conventional business resume?

Religious views

The ___________ is the net profits expected from a given investment, expressed as a percentage of the investment.

Return on investment

Vindurem Inc. has developed a software that would reduce the time taken by manufacturers to identify suppliers of raw materials and distributors of finished goods for a particular region. The company assigns its sales team to call on all potential customers that exist within a two-mile radius of the city's shipping port to market this new software. The company conducts this cold calling for a period of two days. This type of cold canvassing is called ______.

a blitz

To keep commissions paid to salespeople from becoming so high that they become demoralizing to company executives, some companies place upper limits on how much a sales representative can earn. This limit is called a:

cap

The payback period:

indicates how quickly the investment money will be returned in the form of cash inflows or savings

Request for Proposal (RFP)

is used when a customer has a firm idea of the product needed

What is the easiest method to evaluate the performance of salespeople?

measuring total sales

The most important step for a salesperson in planning a sales call is to:

set objectives for the call.

Ed works for Lainer Business Products as a sales representative. He receives a straight commission. In weeks when his earned commission is less than $600, the company loans him enough money against future commissions to allow him to receive $600. In weeks when Ed earns more than $600, the extra is used for repaying the previous loan period. For Ed, the guaranteed $600 is his ______

straight salary

Which of the following is an example of an objection related to price?

"I do not believe the money we would earn form using your company's subsea oil drilling machine would offset its costs."

Which of the following is an objection related to a product?

"I do not understand how your company's system can remove water vapor from our gas pipelines."

The profit margin on the sale of a good is 20 percent, and the selling price of the good is $5,000. Calculate the cost of good.

$4,000

Which of the following is an example of selling?

-An engineer convincing his manager to support his R&D activity -An employee making a presentation to a job interview -A salesperson talking about the advantages of the washing machines at his store -A college student asking a professor to let him enroll in a course that is closed for admissions (All of these)

Which of the following is a good advice for the use of demonstrations as part of a sales presentation?

-Planning for things that could possibly go wrong -Practicing the demonstration -Keeping the demonstration simple, concise, and easily understandable -Probing both during and after the deomnstration (All of these)

A salesperson receives $200 commission per sale and has set a goal of earning $3,000 per month. With a conversion rate of 1 out of 8 prospects, he will need to make sales presentations to _______ prospects to achieve his performance goal.

120

By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able to show a net savings of $500 in annual maintenance costs. Calculate the return on investment for the engine.

15.6 percent

Alex and Rick are discussing Alex's last sales presentation as they walk to the car from the customer's office. Rick—Alex's sales manager—is giving Alex feedback on the strengths and weaknesses he noticed during Alex's presentation. This immediate feedback should help Alex improve his ability as a sales rep. This form of feedback is known as _____.

A curbside conference

Constance was a little early for her interview at the college placement center. Fortunately, the interviewer had brought along a recent graduate of the college who had been hired two years ago, and she was able to pass the time talking to him prior to the interview. Constance was unaware that this person was also evaluating her. Which of the following types of interviews is being illustrated in this scenario?

A disguised interview

After a full day of taking tests and attending interviews, Candace and two other job candidates from other universities were taken to a conference room by several executives of Poly-Tex, Inc. Candace and the other candidates were further evaluated here. This is an example of a _____ interview.

A group interview

Identify a true statement about team selling:

A group of salespeople supports a single account, and each team member brings a different area of expertise

During her second interview with Poly-Tex, Inc., April was jointly interviewed by the sales manager, the personnel manager, and a sales rep for Poly-Tex. They each had several questions for April. This interview was a _____ interview.

A panel interview

Identify a true statement about trial orders.

A trial order is no commitment, and all too often a buyer will agree to a trial just to get rid of the salesperson

Eva is the sales manager of Orange Candies Industries. To classify her sales accounts and allocate resources for them, Eva classifies her customers into three groups. Group 1 constitutes her best accounts that buy the most, Group 2 consists of accounts of moderate value, and Group 3 is comprised of non-customers or accounts with low potential for sales. Identity the method used by Eva to clarify her sales accounts.

ABC Analysis

While a salesperson was trying to sell a new textbook, a professor began to complain about the rising cost of textbooks. The salesperson responded, "Yeah, it's not cheap to get quality education these days." Then, after a pause, the salesperson continued, "Say, did I tell you who wrote the test bank that comes with this book?" Which method did the salesperson use to deal with the objection?

Acknowledge

Lennie is a salesperson with Eddy's Laboratories. Lennie's sales manager expects him to make at least five sales calls per day and meet at least five customers per week. Identify the type of quota assigned to Lennie by his sales manager.

Activity quota

Which of the following is a reason why salespeople fail to obtain commitment?

All of these Speaking more than listening, fear of asking, poor presentation, displaying unwarranted excitement

Which of the following is an example of an outbound salesperson?

Annette, uses her telephone to solicit new business from a list of prospects

House accounts ________

Are usually covered by the home office

Which of the following is an illegal question to ask in an interview?

Are you married, and if so, what characteristics do you think drew your spouse to you?

________ salespeople are self-confident and positive, and they maintain the proper perspective by being responsive to customer needs.

Assertive

Al sells everything a company needs to market decorative balloons—the balloons themselves, ribbons, helium tanks, etc. He wants to talk to the owner of a large catering company because balloons are great decorations for birthday tables, baby showers, and other such social occasions. Unfortunately, every time he tries to talk to the owner of the catering company, he finds himself in an unnecessarily long conversation with the assistant caterer who does not let him talk to the owner. The assistant caterer is assuming the role of a(n):

Barrier

Which of the following is the most important characteristic of successful sales representatives?

Being able to discover client needs

"This model 107 electric nail gun will reduce the amount of time your crew spends roofing a 3,000 square foot home by 30 percent. This will lower your labor costs and allow you to bid more competitively in the market for your service." This opening statement is an example of a(n) ________ opening.

Benefit

George tries to sell his firm's new air conditioner to a prospect. He opens his sales presentation by talking about how the new air conditioner reduces the average power consumption by 33 percent and how it would save nearly $150 a month is the prospect runs the air conditioner for six hours every day. In this case, George is using the _________ opening.

Benefit

Harold needs to sell a new drug to physicians and doctors in a locality. Without even checking with the doctors and physicians, he visits the clinics and hospitals in the locality, assuming that someone would be interested in buying the new drug. This is an example of:

Cold calling

Jill is newly appointed as a salesperson with Feurs Perfumes. For every case of fragrance that Jill sells, she earns $10. Identify this extra payment that Jill receives for every case of fragrance.

Commmision

A salesperson using the _______ method of responding to objections acknowledges that an objection is valid and proceeds to offer some offsetting advantages of the good or service being sold.

Compensation

Valerie's goal as a sales rep is to _______, which is the total benefit that her company's products and services provide to the buyer.

Create Value

Jorge is developing a presentation for a customer. He wants to show the customer how his product will meet the prospect's needs and how it is different from the offerings of competitors. Jorge is developing a(n):

Customer value proposition

Which of the following methods of handling a prospect's objection is only appropriate when the prospects statement is blatantly untrue?

Direct denial

As Sandra concluded her sales interview with Burt, she said, "I'm pleased you see the value of this new software for managing your inventory. Can you suggest some other small business owners who might like to see it?" Sandra is using the _____ method of prospecting.

Endless-chain

When a salesperson can only sell to prospects located within a certain geographical location, the salesperson is said to be managing sales for a(n) _______.

Exclusive sales territory

Which of the following nonverbal signals indicates that a buyer is ready to make a commitment?

Eyes open and relaxed

One of the advantages of personal selling is that it is the most ________ method used to communicate with customers.

Flexible

The proactive method of anticipating objections and answering them before the customer has a chance to raise them is known as:

Forestalling

In a buying center, a screen can take on the role of a(n) _____.

Gatekeeper

Jane, a stock analyst, is giving a sales presentation to a group of clients. She talks about the various investment options available. She gives each of them a few sheets of paper that contain all the important points covered in the sales presentation because it would help them remember what was discussed during the sales presentation. In this case, the bunch of papers is most likely known as a(n):

Handout

When a customer account is specifically assigned to a home office sales executive rather than to a salesperson who handles the territory containing that customer account, that customer account is usually known as a __________.

House account

In the ________ method of handling an objection, the salesperson tells the prospect the objection presented is not true but does so in a manner that softens the response.

Indirect denial

"Ms. Hallgren, thank you for seeing me today. My name is Daniel Mundt, and I'm with ServiceMaster." In the context of a sales presentation, this is an example of a(n) _________ opening.

Introduction

Gary, a new salesperson for a reputed cellphone manufacturer, meets the owner of a transport company that employs 50,000 people as cab drivers. On his first meeting, he plans to sell mobile phones to all the 50,000 cab drivers because he believes his firms mobile phones are the best in the market. Which of the following is a drawback of this primary call objective?

It is unrealistic

Jennifer and Selena are employed by their firm to sell its products. Jennifer is required to go to the customers' residence and demonstrate the features and benefits of the products, whereas Selena is required to conduct sales by calling existing customers. Which of the following statements is most likely true about the scenario?

Jennifer is a field salesperson

If Joe's Safety Supply Inc. quotes an FOB destination price to a factory buying five hazardous waste disposal units, it indicates that:

Joe's Safety Supply will pay for all freight charges

Which of the following salespeople best exemplifies a field salesperson?

John, a pharmaceutical sales representative who visits doctors offices to sell drugs

Robina received a memo with the name of a person who wrote to her company inquiring about the firms radiology equipment. The person who made the inquiry is best classified as a:

Lead

Manufacturers' Representatives Inc. (MRI) is an independent company that employs sales representatives to sell the products of many different producers. MRI's sales rep sell these products of many different producers. MRI's sales reps sell these products to wholesalers and retailers. MRI receives a commission from the producers for the products it sells. MRI is an example of a:

Manufacturers agents

_______ work for a manufacturer and promote the manufacturer's products to other firms that buy the products from distributors or other manufacturers, not directly from the salesperson's firm.

Missionary salespeople

A salesperson for FS Tools asked Justin, a cabinet maker, "If I can show you how to cut melamine, high-pressure laminates, and fine veneer without any chips or breaks, would that save you any money?" In terms of the SPIN technique, this is an example of a(n) _______ question.

Need payoff

A(n) ______ is a concern or a question raised by a buyer.

Objection

________ require a prospect to go beyond a simple yes-no response and share a great deal of useful information.

Open questions

Selling a new and different good, service, or idea is called:

Pioneer selling

When a buyer asked the price of a particular model of meat slicer, a company's salesperson said, "If you don't mind, could we discuss that later, after I show you how this slicer can handle everything from steaks to onions." In this scenario, the salesperson was using the _____ method to respond to the buyer's objections.

Postpone

Which of the following statements about time management is true?

Prime selling time depends on the buyer's industry

"Do you have trouble keeping your delivery trucks running?" is an example of a(n) ________ question in the SPIN technique.

Problem

A(n) ______ opening involves actually providing a demonstration of a good or service as soon as a salesperson meets the prospect.

Product

Michael is a salesperson for a company that manufactures television sets. He begins his sales presentation with a prospect by telling him that he was recommended by the prospect's friend, Vincent. Michael tells the prospect, "Vincent said that you were interested in buying a televisions et with state-of-the-art technology. Our firm has just about the right type of television sets that could cater to your needs." In this case, Michael is using the _________ opening to get the attention of his prospect.

Referral

The use of a third-party testimonial letter strengthens the ________ method of responding to a prospect's objections.

Referral

When a golfing club manager says, "I am concerned that our club members will find the low center of gravity in the Taylor clubs mess up their golf swings," the Taylor salesperson responds, "I understand how you feel about the clubs. Another buyer felt the same way as you do until he tried the clubs for a month. He found them easy to use and that they actually improved his average score." Which method of dealing with objections is the Taylor salesperson using?

Referral

Tom has been invited to spend the weekend at Hilton Head by his stockbroker, Nathan. He asks Tom to bring along a few of his professional friends as well. The stockbroker is organizing a:

Referral event

A salesperson sells a mobile phone to Karen. Karen tells the salesperson that her friend Jenna is also interested in buying a similar mobile phone. The name of Jenna provided by Karen would be treated by the salesperson as a:

Referral lead

Mack is a salesperson with Cible Department Store. His manager has given him a target of selling $525,000 worth of merchandise in his territory in the current financial year. Identify the type of quota that Mack is expected to achieve

Revenue quota

Robert works long hours in his firm, making calls to household consumers. Unlike other salespeople in his team, he is not required to visit customers' residences to sell products. He also handles the customer grievance helpline of his firm. Which of the following statements is true about Robert?

Robert is an inside salesperson

_____ is the amount of money paid to a salesperson at regular intervals regardless of his or her performance.

Salary

Why does personal selling work better then other communication options available to firms selling in the business-to-business market?

Salespeople are able to tailor unique messages for each prospective buyer.

As the CEO's personal assistant, Robert's job involves taking calls from sales representatives from different companies. He sorts them and selects the salespeople who get to speak directly to his boss. In this situation, Robert is acting as the _____.

Screen

Kumar is a salesperson for a cosmetic brand. Before meeting his prospect, he send the prospect a few fashion and lifestyle magazines to improve the prospect's knowledge about cosmetic products. In this case, Kumar is most likely engaging in _______.

Seeding

Melanie was about 10 minutes into her third interview with a sales manager when, without warning, the manager picked up the ashtray from her desk and handed it to Melanie saying, "Here, sell me this ashtray." Melanie was in a(n) _____ interview.

Stress interview

Which of the following statements is true about the probing method of obtaining commitment?

The rep should ask a series of questions designed to discover the customer needs

Identify an accurate statement about testimonials.

They are usually written by satisfied users of a product or service

Tyler maintains a calendar in which he notes various tasks he is required to perform in the future and when they are due to be done. He also keeps information about call backs he is supposed to make. In addition, he has information about many of his customer's birthdays (so he can send a card). This calendar helps him prepare his to-do lists to get things done in a timely manner. Which of the following terms best describes this calendar?

Tickler file

Which of the following is the best example of a performance goal?

To increase the amount of sales revenue by 10 percent

______ sell to firms that resell the products rather than using them within the firm

Trade salespeople

April, a sales rep for Beta-Z Equipments, was recently assigned to work with Leapheart construction. Typically, Leapheart purchases about $15,000 worth of materials per quarter from Beta-Z, but since April took over as the sales rep to work with Leapheart, the volume has dropped drastically. Sam, the inventory manager at Leapheart, often ends April's sales calls saying something like, "Look, little lady, I don't need someone like you in here telling me how to build houses. Why don't you just run along and bake some cookies or something." April has been professional in every way, but now her manager believes that the client should be assigned to Wayne. This change is called a:

Turnover

While setting objectives for a sales call, the actual goal a salesperson hope to achieve is known as:

a primary call objective

A goal to increase the number of sales calls made in one day from 8 to 9 is an example of a ________ goal

activity

A product demonstration:

allows prospects to check if the product works the way the salesperson claims

If a salesperson uses the postpone method of responding to an objection and the prospect obstinately insists on an answer right at the time, the salesperson should:

answer the objection

After two weeks of looking and comparing alternatives, Julie finally bought an iMac computer. For days following the purchase, she kept pondering if she should have purchased a different brand. In this scenario, Julie is experiencing ______________

buyer's remorse

A prospective buyer says, "This is a great product you're selling. I don't know why someone didn't come up with this product years ago." In this scenario, the salesperson is most likely to perceive these comments as:

buying signals

Arnold is a salesperson. His company's compensation plan involves paying him 14% of the total sales he makes per month. This 14% percent is known as the ___________

commission rate

If Perkston's Aquatic Store, a retailer of aquarium fish and supplies, buys one 200-gallon fish tank from Merida's Aquarium Products, it will be billed $329. If it buys more than six during the upcoming year, it will get a 20 percent discount on each aquarium. This savings is referred to as a:

cumulative discount

A telemarketer who was trying to get Chloe to change her Internet usage plan asked her, "Are you ready to switch now?" This scenario indicates that he was using the ________ closing method

direct request

Often the primary function of salespeople at trade shows is to:

discover and qualify leads for future follow-up.

Kirk's resume is organized around the things he can do and the things he has learned. He has developed a _______ resume

functional resume

Victor is calling on Meridian Cabinetworks. His goal is to close a deal for a customized profile sander valued at about $3,500. He'd be willing to accept if Meridian purchases one of one his firm's ready-made sanders, which cost about $2,000. Victor wants to convince the owner of Meridian to use the sander and to provide his company with a testimonial that would help him approach other local wood workers. For Victor, the sale of the less expensive ready-made profile sander is his _____. A. minimum call objective B. strategic mission C. sales quota D. primary call objective E. optimistic call objective

minimum call objective

Ivan's actual goal from his sales call is to get 10 people to buy his firms insurance policies. Ivan hopes to get more than 25 people to buy his insurance policies, get their relatives and friends to buy the policies too, and develop a long-term relationship with these customers. This long-term relationship that Ivan hopes to build in the future is an example of his:

optimistic call objective

Goals relating to outcomes are _____ goals.

performance

Using a customer relationship management (CRM) software, salespeople can perform ___________, which is a process for identifying and managing sales opportunities

pipeline analysis

Veronicas goal for her upcoming sales call is to sell 70 chairs to an IT company. She would be willing to sanction and order for 30 chairs if the owner of the company is ready to make a small investment. She is also hoping to convince the manager of the IT company for 200 chair and to sell them at a 15 percent discount. For veronica, the sale of 70 chairs is her ________.

primary call objective

Roderick sells restaurant supplies to eateries in western Kentucky. Because his clients do much of their own business at lunch time, he discovers that they prefer to have him call between 9:00 and 11:00 A.M. and between 1:30 and 4:30 P.M. The time he devotes to making these sales calls is referred to as the _____.

prime selling time

The owner of Sherwyn's Hardware will receive a discount of 15 percent if she orders 12 or more Mandarin bird feeders from Darren Products. If fewer than 12 bird feeders are ordered, she will not receive the _____ discount.

quantity

When responding to a buyer's objection, a salesperson should:

restate the objection to get customer acknowledgement and then respond.

______ is a method of planning a sales call in a specific order to minimize travel time

routing

Taylor sells roller coasters, carousels, bumper cars, and other similar rides to amusement parks. His manager has told him that he must find buyers for at least six water flume rides, three carousels, two coaster rides, and ten kiddie rides this fiscal year. Taylor's manager has given him his:

sales quota

Candace enjoys meeting potential buyers. They always have a nice time discussing the products she represents. She assumes that since the prospect will buy when he or she is ready, there is no need for her to be pushy. She never tries to obtain commitment from the buyer because of her fear of rejection. Candace is a(n) _____ salesperson.

submissive

Judith a salesperson for an automobile firm, gives a presentatoin to a buying agent. During her presentation, she gives the buyer a letter from a customer in New York. The letter praises the efficiency of the supply chain process of Judith's firm and compliments the punctuality and timely delivery of the products. This letter is an example of a(n) ________.

testimonial

If Berylia Nursery Company quotes an FOB origin price to a plant retailer, it indicates that:

the plant retailer will pay all shipping costs

______ is dividing a territory into specific areas, based on ease of travel and concentration of customers, in order to minimize travel time

zoning