Sales Management Final 2

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consultative selling

1. a sale is not the sale of products or equipment. Rather a sale is the sale of a positive rate of return on the customer's investment.

Sales management can focus on selling skill rather than selling effort by employing a generalized salesforce.

False

Salesforce socialization begins when the sales recruit is hired by the firm and extends for as long as one month.

False

Salespeople should only overpromise if it will help them to obtain the sale.

False

Salespeople who focus on gaining new customers are sometimes referred to as farmers.

False

Selection tests today are a valid and proven method of accurately predicting future job performance.

False

Selling strategy involves the planning of internal messages and interactions with customers.

False

Staff sales management positions are part of the direct management hierarchy within the sales organization.

False

Stimulus response selling is the most flexible and most focused on the buyer's unique needs and strategic priorities.

False

Strategic accounts can be served in only one of two ways: have the regular salespeople handle the account along with their other accounts or assign these accounts to sales executives along with their regular duties.

False

Tall structures are most appropriate for decentralized organizations.

False

The "Lone Wolf Superstar" is highly regarded for its role in the salesforce

False

The assessment center provides an efficient, low cost means for evaluating job candidates.

False

The changing market environment is characteristic of a static market.

False

The first step in territory design is to analyze the planning and control unit opportunity.

False

The members of a firm's assessment center are generally outside directors who perform this service for a fee.

False

The planning and control unit is some entity larger than a territory into which the firm's total market area is divided.

False

The primary role of a salesperson practicing trust-based relationship selling is to make calls and close sales.

False

The radial search for referrals is a method of reference checking that requires getting additional references from the second-party references.

False

The recommended compensation system for the SBU objective "build market share" would be a straight salary.

False

The sales manager's primary responsibility is training the salesforce rather than directing the salesforce

False

The salesforce needs little supervision and monitoring.

False

The same sales knowledge and skills are required of salespeople regardless of the situation.

False

The smaller the span of control, the more subordinates that a sales manager must supervise

False

The specific reason for not hiring a candidate must be given, if requested.

False

The trends from transactions to relationships, individuals to teams, and management to leadership are producing a more centralized orientation in many sales organizations.

False

Typically the sales manager has little line authority.

False

Unfortunately, the need satisfaction selling approach tends to increase the defensiveness of some prospects because the salesperson rapidly moves to the persuasive part of the sales message.

False

When selection tests are used, the hiring decision should be based solely on the test results.

False

With transaction selling, salespeople focus on long-term relationships with customers rather than maximizing the outcomes of individual transactions.

False

In communicating with those offered jobs, it is now appropriate for the sales manager to "sell" the prospective salesperson on joining the firm.

True

In the best sales organizations, salespeople earn the trust of their customers and utilize selling strategies that satisfy customer needs.

True

Increasing salesforce size at the right time can provide a firm with a competitive advantage

True

Job satisfaction and performance are related to the realism and congruence achieved during the recruiting and selection process.

True

Line managers are directly involved in the sales-generation activities of the firm.

True

Most independent rep agencies are small.

True

One general recruitment and selection objective might be to reduce the number of underqualified or overqualified applicants.

True

One of the keys to integrating marketing communications successfully is greater coordination between the marketing and sales functions

True

One of the most important factors in determining the appropriate type of specialization is the complexity of products offered by the firm.

True

One of the most important factors in determining the appropriate type of specialization is the similarity of customer needs.

True

One potential problem associated with inadequate recruiting and selection is higher turnover rates.

True

One purpose of the ADAPT method is to develop an efficient, relevant line of questioning that will help both the salesperson and the buyer find common ground for sales dialogue and sales presentations.

True

One step in the process of developing a corporate strategy is the determination of the corporate mission and objectives.

True

One task of salespeople is to identify buying-center members and determine the specific role of each member.

True

Outsourcing the salesforce is an attractive option if a company needs salespeople quickly.

True

Personal selling involves interpersonal communications between buyers and sellers to initiate, develop, and enhance customer relationships.

True

Personal selling is an important element of a marketing communications strategy.

True

Problem solving selling has been popularized by the commercial success of SPIN selling.

True

Professional organizations are a viable source of sales recruits.

True

Recruiters sometimes reject job candidates due to information about them found online.

True

Requiring the job candidate to pass a physical examination is often a formal condition of employment.

True

Research suggests that salespeople who are satisfied with the design of their sales territory work harder.

True

Resume search services match qualified candidates with firms.

True

Sales is a vital part of every organization.

True

Sales management is affording more time to collaboration rather than control.

True

Sales professionals must be strong collaborators, both within their own organizations and with their customers.

True

Sales strategy is important because it has a major impact on a firm's sales and profit performance.

True

Salesforce performance will suffer if recruitment and selection are poorly executed.

True

Salesforce size decisions must also be consistent with the organizational strategy being implemented by a firm.

True

Salespeople who are customer oriented, honest, dependable, competent, and likable are in a good position to establish trust.

True

Salesperson compensation is often tied to the achievement of quotas.

True

Selection tests can often be completed online at relatively little expense.

True

Selling helps prepare individuals for management positions.

True

Several employers are brought together in one location for recruiting purposes by career fairs.

True

Software is available that allows sales managers to evaluate many possible territory designs and to assess the impact of territory design changes easily.

True

Some candidates may be "put on hold" until the top candidates have made their decisions about accepting the position.

True

Studies suggest that 75% of companies utilize some type of teamwork.

True

sales dialogue

business conversations that take place over time as salespeople attempt to initiate, develop, and enhance relationships with customers

___________ isn't sensitive to price unless their _______ is sensitive to price

business market; target market

personal selling is preferred in _________ where as advertising is emphasized in _________

business marketing; consumer marketing situations

If buying-center members want to reduce purchase risk and protect job security, they might.

buy the product with the most well known brand name. .

Sales training covering aspects of customer knowledge may include information on all of the following subjects except.

buyers' competitors. .

not all _______ are ___________

buyers; consumers

Sales strategy should be based on an understanding of all of the following critical elements of organizational buyer behavior except.

buying discrimination. .

Salespeople can increase profitability in all of the following ways except.

by reducing their order-call ratio. .

sales program planning

concerned with allocating the firm's sales effort across different types of potential customers

supervisory activities

concerned with day to day control of hte salesforce under routine operating conditions

marketing mix

consists of a marketing offer designed to appeal to the defined target market

sales training process

consists of assessing training needs, developing objectives, evaluating alternatives, designing the training program, carrying it out, and evaluating it

corporate strategy

consists of decisions that determine the mission, busines sportfolio, and future growth directions for hte entire corporate entity

entrepreneurial orientation

consists of three dimensions: proactiveness, risk taking and innovation. sales managers make things happen.

selling is viewed more as a _______ rather than a __________

core business process; tactical activity

Internal Environmental Variables: The Organizational Environment, Strengths and Weaknesses

corporate culture, personnel, financial resources, production capabilities, R&D capabilities

Formal recognition programs can provide all of the following benefits to a salesforce except.

costing little and reinforcing desirable behavior immediately after it occurs..

salespeople can add to or detract from customer value depending on criteria such as:

customer and market knowledge, coordination, efficiency, strategic alignment, and trustworthiness

trust building 5 attributes

customer orientation, competence or expertise, dependability, honesty, and compatibility

If personal selling is prominent in the firm's marketing strategy, some sort of _________ to help determine sales training needs is highly recommended..

customer survey .

need satisfaction selling

customers will be motivated to buy to satisfy particular needs. focus on the customer. customer typically dominates the sales interaction until needs have been established then the salesperson moves to a more active selling role. This can minimize the resistance from the prospect that sometimes surfaces when a salesperson rushes to the persuasive part of hte sales message without adequate attention to the buyer's need

Which of the five personal selling approaches involves the highest level of adaptive selling? Select one: a. Problem solving b. Mental states c. Need satisfaction d. Consultative selling e. Stimulus response

d. Consultative selling

A (n) __________ is a salesperson who provides physicians, nurses, and other medical professionals with pertinent information about drugs to support the overall sales effort..

detailer .

the key sales management task is what?

determining the appropriate type of relationship to pursue with specific customers

customer orientation

determining the buyer's unique needs before recommending a purchase, preventing and correcting problems, and sincere listening during sales calls.

market-oriented firms typically do what?

develop customer-centric cultures and establish organizational structures around customers rather than products

CRM

developing the most appropriate relationship with a customer, a process that is supported by technology and that may not necessarily yield deep or strategic partnerships with all customers. a business strategy. unsuccessful firms focus on technology and then adapt their strategy

Important legal reminders that should be included in a sales training program include all of the following except.

discuss only these topics with competitors: sales territories or markets to be served, and the rejection or termination of customers..

what is the major reason salespeople leave their firms

dissatisfaction with their sales manager

According to the text, all of the following are methods for enhancing employee referral programs except.

making the referral process a mandatory part of one's job..

This type of influence strategy is the only one that does not involve direct communication with the target of influence:.

manipulation. .

The most often encountered form of intensive interviewing is the.

multiple, sequential method. .

sales managers

must be able to deal effectively with people in the personal selling function, with people in other functional areas, and with people outside the org

the sales strategy, sales organization, and salesforce deployment decisions produce what?

the basic structure for personal selling efforts and can be considered similar to the machine decisions in a production operation

modified rebuys

the buying process involves need recognition, evaluation of suppliers and a decision. Used when a product or service is going to be purchased again, but perhaps from a different supplier.

new task buys

the complete buying process is used. This complete process is likely to be used for the purchase of products or services never purchased before

the development and integration of corporate, business, marketing, and sales strategies establishes what?

the basic strategic direction for personal selling and sales management activities

straight rebuys

the purchasing decision has been made and only the need recognition and placing the order stages are used. Used for products that bought automatically over and over again

The formation of a strategic sales program requires five major sets of decisions: 4-5 are?

4. What level of performance should each member of a sales force be expected to attain during the next planning period? This involves FORECASTING DEMAND and setting QUOTAS AND BUDGETS. 5. How should the sales force be deployed? How should sales territories be defined? What is the best way for each sales person's time to be allocated within his or her territory? This involves decisions about TIME AND TERRITORY MANAGEMENT.

cost _____ times more to get a new customer

Centralization within the management structure can be best described as a. the degree to which important decisions and tasks are performed at higher levels in the management hierarchy. b. definitive in nature, as organizations are either totally centralized or totally decentralized. c. the extent to which lower-level managers have become responsible for important decisions and tasks. d. the amount of task specialization that takes place within the major branches of the sales organization structure. e. characterized by the decision to divide sales efforts on the basis of products or related lines of products.

If the sales organization objective is to maintain sales volume then the SBU objective is likely to be a. hold market share. b. build market share. c. develop market share. d. establish market share. e. harvest market share.

Independent representatives are channel middlemen that take title to the goods that they market to end users.

False

Individual buying needs tend to be related to the use of the product.

False

Market specialization will result in customer duplication, but not geographic duplication.

False

hierarchy of plans

*Mission statement first 1. The Corporate Strategic Plan 2. Strategic Business Unit Plans 3. Marketing Plans 4. programs for individual marketing functions

Which of the following statements regarding productivity analysis is false?.

.The most useful input unit for productivity analysis is total sales per salesperson..

This training method includes business games and simulations, case studies, and role playing:.

.behavioral simulations .

Corporate strategic plan: strategic business units

1. a part of the company that has a separate mission and objectives, and that can be planned for independently from other company businesses. 2. Large bureaucratic organizations are commonly broken-up into smaller units called (SBU's) for planning purposes.

Objectives of the approach

1. Attention - frequently a prospect's mind is on something else. Under no circumstance should you carry on with the sale while the prospect's attention is diverted. 2. Interest - it is also possible that once you've gained attention the prospect will decide that they aren't interested in what you have to say. A good approach provides the prospect with a reason for listening. Tell them the benefits of your offer. 3. Transition - another objective of the approach is to lead smoothly into the presentation.

Preapproach: Qualification involves finding the answers to three important questions:

1. Does the prospect have a need for my product or service? 2. Can I make the people that are responsible for buying so aware of that need that I can make a sale? 3. Will the sale be profitable to my company?

Environmental factors influence marketing strategies and programs in what four basic ways?

1. Environmental factors can constrain the organizations ability to pursue certain marketing strategies or activities 2. Environmental variables, and changes in those variables over time, help determine the ultimate success or failure of marketing strategies 3. Changes in the environment can create new marketing opportunities for an organization 4. Environmental variables themselves are affected and changed by marketing activities

What 5 factors influence a sales person's job behavior and performance?

1. Environmental variables 2. Role perceptions 3. Aptitude 4. Skill level 5. Motivation level

The formation of a strategic sales program requires five major sets of decisions: 1-3 are?

1. How can the personal selling effort best be adapted to the COMPANY'S ENVIRONMENT and integrated with other elements of the firm's marketing strategy? 2. How can various types of potential customers be best approached? persuaded? serviced? What ACCOUNT MANAGEMENT POLICIES should be adopted? 3. How should the sales force be ORGANIZED to call on and manage various types of customers as efficiently and effectively as possible?

sales reps should devote a large percentage of time to prospecting if:

1. If the firm's product is in the introductory stage of its product life cycle. 2. If it is an infrequently purchased durable good. 3. If the typical customer does not require much service after the sale.

Approach: six basic approaches are used:

1. Introductory approach - the sales rep merely introduces him/herself and identifies the company he or she represents. 2. Assessment approach - the sales rep opens the interview with a plea for information or permission to investigate the company's problem. 3. Product approach - consists of handing the product to the prospect, with little to no conversation. 4. Customer-benefit approach - the sales rep selects a benefit package that will likely be of most interest to the prospect - based on what is known about the situation. 5. Referral approach - the sales rep receives permission of past or present customers to use their names as a reference in meeting a new prospect. 6. Consultative approach - the sales rep opens the sale by getting the prospect to talk about the problem

Mental-states approach

1. Is based on the idea that a buyer's mind passes through successive stages before he or she decides to make a purchase. Based on the AIDA theory of persuasion (Attention, Interest, Desire, Action). 2. Selling "formulas" are used to design a sales presentation that coincides with the buyers movement through the stages

Need-satisfaction approach

1. Is based on the idea that customers are to be served rather than products sold. 2. Customers needs are the starting point in making a sale. The sales person's task is to identify the prospects needs, make the prospect aware of that need, and then persuade the prospect that his or her product or service will satisfy that need better than any other alternative

Preapproach: Know Personal Information About the Prospect: 1-5

1. Learn to spell and pronounce the name of the prospect(s). 2. Age - older people respond to the respect that is due to them, younger people in high positions like to be recognized for rising quickly in the organization. 3. Education-may provide a topic of conversation. 4. Residence - may reveal something about a person's social position or friends. 5. The need for what you are selling - know how the person can best use what you are selling.

The presentation

1. Presentation - the main body of the sale where the sales rep presents the product or proposition and shows the prospect its benefits. 2. Good sales presentations are built around a forceful product demonstration 3. Generally, sales presentations can involve either vending or consultative selling

the 7 steps to the personal selling process

1. Prospecting 2. The Preapproach 3. The Approach 4. The Presentation 5. Meeting Objections 6. Closing 7. Follow-up

MILES AND SNOW SBU COMPETITIVE STRATEGY TYPOLOGY

1. Prospectors - attempt to pioneer in both product and market development 2. Defenders - offer a limited, stable product line to a predictable (i.e., nonchanging) market. Emphasize being the low-cost producer 3. Analyzers- pioneer in new products and markets while at the same time retain a foothold in mature markets. 4. Reactors - don't do anything proactive, they simply attempt to survive by reacting to environmental conditions.

Industrial selling involves 3 types of customers:

1. Sales to resellers (i.e., retailers) 2. Sales to business users (i.e., manufacturers) 3. Sales to institutions (i.e., hospitals or governments)

Prospecting: sales reps should spend most of their effort servicing existing customers if:

1. The firm has a large market share. 2. The firm sells frequently purchased nondurable products. 3. The firm's products require substantial service after the sale to guarantee customer satisfaction.

The activities involved in managing the personal selling function include:

1. The formation of the strategic plan (PLANNING). 2. The implementation of the sales program (IMPLEMENTATION). 3. The evaluation and control of sales force performance (CONTROL).

The formation of an effective account management policy requires an understanding of:

1. The organizational buying process 2. The activities sales people engage in when carrying out their jobs

What are the four philosophical orientations or approaches to dealing with customers?

1. The stimulus-response 2. Mental-states 3. Need-satisfaction 4. Problem-solving

the preapproach consists of what 5 functions

1. To qualify the lead or disclose the party's needs and ability to pay. 2. To provide information that will enable the seller to tailor the presentation to the prospect. 3. To provide information that may keep the sales rep from making serious tactical errors during the presentation. 4. To increase the sales reps confidence to feel able to handle what ever may arise during the sale. 5. To impress the prospect that the sales rep is diligent and professional.

Things to keep in mind when meeting objections

1. Welcome objections. 2. Be prepared to answer typical objections about price, quality, and current vendor objections 3. Avoid emotional objections - keep cool. 4. Visualize the sale.

Preapproach: Know Business Information (Company Operations)

1. What does it make or sell? 2. Who are its customers? 3. How are its products positioned in the market? 4. What is the capacity of the plant? 5. What parts of the finished product do they make/buy? 6. What manufacturing processes do they employ? 7. What type of machines do they own? 8. What types of materials do they buy? 9. What maintenance schedule do they operate on? 10. Where does the company rate in the industry - volume?

Preapproach: know business buying practices

1. What purchasing procedures are followed by the purchasing department? 2. When does the firm buy? 3. How much do they buy? 4. Who else do they buy from? Why? 5. Are they happy with their current sources of supply? 6. Does the firm practice reciprocity?

Preapproach: Know business information (personnel) about the prospect:

1. Who owns the company? 2. Who is on the board of directors? 3. What are the business affiliations of the members of the board? 4. Who has the final word on purchases? 5. Who else has an influence on purchases? 6. Who is in charge of the department that will use my product or services?

developing a corporate strategy 4 steps

1. analyzing the corporate situation an identify OT 2. determining corporate mission and objectives 3. defining strategic business units. and 4. setting objectives and resource allocations for each SBU

corporate strategy

1. consists of decisions that determine the mission, business portfolio, and future growth directions of the firm. 2. addresses decisions across business units

4 major stages of the sales management process

1. defining the strategic role of the sales function. 2. developing the sales force 3. directing the sales force 4. determining sales force effectiveness and performance

The presentation: trial close

1. determine whether the customer is ready to buy. This can be done by asking such questions as: Which model do you like best? Which color do you prefer? Cash or financing? 2. If this goes well they use the assumptive close 3. if all does not go well, the next phase of selling (i.e., meeting objections) must be undertaken.

consultative sellers

1. form partnerships with business function managers whose processes they improve. 2. re-frames the purchasing problem for the buying firm 3. gets the buying firm to focus on the savings that result from the purchase rather than on the cost of the purchase. slide 37-39 (do the prob)

Differences between industrial and retail selling:

1. industrial goods and services are more expensive and technically complex 2. industrial customers tend to be larger and engage in extensive decision making processes involving many people within their company

sales management

1. management of an organization's personal selling function. 2. sales managers are involved in the strategy (planning) and people (implementation), as well as in evaluating and controlling personal selling activities

Implementing a sales program involves what?

1. motivating and directing the behavior of the sales force 2. designing policies and procedures so that the job behavior and performance of each sales person is shaped

personal selling

1. personal communication with an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicator's organization as being the source of the message 2. personal communication whereas advertising and sales promotion are non personal

Consultative selling - Hanan

1. proposed that sales reps need to become more consultative in order to be successful. 2. Consultative selling is profit improvement selling. It is selling to the high-level customer decision makers who are concerned with profit..." "Consultative selling is selling at high margins so that the profits you improve can be shared with you.

What are the similarities between industrial and retail selling

1. require interpersonal skill 2. require solid knowledge of the products being sold 3. require an ability to discover the customer's needs and problems

personal selling driven strategies are appropriate when

1. the market consists of only a few buyers that tend to be concentrated in location 2. the buyer needs a great deal of info 3. the purchase is important 4. the product is complex and 5. service after the sale is important

Prospecting: how to get names and addresses

1.sales managers can prepare lists of prospects. 2. customers can suggest new leads (snowball technique). 3. present users may want new or different models. 4. competitors customers can make good prospects. 5. trade association and industry directories. 6. telephone directories. 7. other sales people. 8.suppliers, social and professional contacts.

80/20 rule

20% of your clients produce 80% of your revenue

Please calculate the profit contribution as a percentage of sales to be used in the ROAM calculation, if sales = $20,000,000; accounts receivable = $8,000,000; and profit contribution = $5,000,000:.

25 percent. .

3 major approaches that a company might utilize to evaluate and control the sales force and monitor sales program performance:

3 major approaches that a company might utilize to evaluate and control the sales force and monitor sales program performance: 1. Sales analysis approach (Volume) 2. Cost analysis approach (Costs) 3. Behavior analysis approach

strategic plan _____ years; tactical plan _____ year

5, 1

Preapproach: Know Personal Information About the Prospect: 6-8

6. Authority to buy - does the prospect have to ask another person? 7. Reference groups - Rotary Club, church, temple, country club, trade associations, etc. 8. Recreation, interests and hobbies.

what percent of companies utilize some type of sales teamwork?

What is the effectiveness index of a salesperson whose previous year's sales totaled $7,000 and whose sales quota for that period was $8,000?.

88..

. All of the following statements accurately reflect factors that pertain to need satisfaction selling except a. this method focuses on the salesperson and how to effectively make a sales presentation. b. the salesperson utilizes questioning, probing tactics to uncover important buyer needs. c. the salesperson waits until relevant needs have been established before discussing product offerings. d. the customer dominates the early portion of the sales interaction. e. it is the salesperson's duty to identify the need to be met and then help the buyer in meeting that need.

A job analysis is a. an investigation of the tasks, duties, and responsibilities of the job. b. an analysis of the amount of stress inherent in the job. c. a rating assigned to a particular job, indicating what grade and salary is appropriate. d. an investigation into the job history of the applicant to uncover any fraud or incompetence. e. a breakdown of the job into specific tasks, enumerating the times that each task is performed during a certain time period.

As _____________, salespeople assume a key role in revenue production for their firms. a. financial contributors b. product managers c. change agents d. communications agents e. customer value agents

Matching selling strategies and relationship strategies is an important upper-level management task.

False

In order to assess a sales candidate's follow-up skills, which of the following selection tools would be most appropriate? a. Assessment center exercises or simulations b. Individual interviews with internal parties c. Panel interview in a social setting d. Job sampling activities e. Reference checks

Perhaps the most significant managerial problem that can arise from improper recruiting and selection of salespeople is a. total salesforce performance is suboptimal. b. a higher turnover rate. c. inadequate sales coverage and lack of customer follow up. d. increased training costs to overcome deficiencies. e. difficulty in establishing good customer relationships.

Productivity is normally defined as a. a ratio between outputs and inputs. b. the number of salespeople in the field. c. a ratio of selling effort employed to number of salespeople. d. a ratio of sales generated to number of accounts. e. a ratio of accounts to salespeople.

Recruiting and developing salespeople who understand diverse cultures, languages, and business practices is a salesforce response to which of the following issues? a. Complexity issues b. Adaptability issues c. Collaboration issues d. Commitment issues e. Accountability issues

Salespeople who focus on gaining new customers are sometimes referred to as a. hunters. b. farmers. c. missionary salespeople. d. detailers. e. merchandisers.

The ________ provides direction for strategy development and execution throughout the organization. a. mission statement b. strategy statement c. corporate plan d. business unit portfolio e. goal statement

The __________ is usually designed to get an in-depth look at the candidate. a. intensive interview b. resume review c. job application d. letter of reference e. selection test

The buying center member who starts the organizational purchasing process is referred to as the a. initiator. b. user. c. influencer. d. decider. e. purchaser.

The decision-making process in a new task buying situation is often referred to as a. extensive problem solving. b. excessive problem solving. c. routinized response behavior. d. limited problem solving.

The generation of new business for the selling firm is associated with which type of salespeople? a. Hunters and pioneers b. Order-getters and order takers c. Missionaries and detail salespeople d. Pioneers and franchisers e. Order-takers and cold canvassers

The problem-solving view of personal selling is an extension of a. need satisfaction selling. b. stimulus response selling. c. contingency selling. d. mental states selling. e. consultative selling.

The third step in the process of recruiting and selecting salespeople is a. selection. b. prospecting. c. recruiting. d. planning. e. hiring.

To be successful at trust building, research indicates that salespeople should demonstrate all of the following characteristics EXCEPT a. salesperson orientation. b. competence. c. dependability. d. honesty. e. compatibility.

When a firm's competitive position is weak, but account opportunity is high, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

Which of the following is not a recommended suggestion for improving the usefulness of tests to sales managers as selection tools? a. Sales managers should construct tests for the purpose of selecting salespeople. b. If psychological tests are used, the standards of the American Psychological Association should be met. c. Utilize tests that have been based on a job analysis for the particular job in question. d. Select a test that minimizes the applicant's ability to anticipate desired responses. e. Do not base the hiring decision solely on test results.

Which of the following is not an example of an organizational need that might be important in a purchase situation? a. Desire for job security. b. Control cost in product use situation. c. Few breakdowns of product. d. Adequate supply of product. e. Cost within budget limit.

Which of the following is not one of the characteristics of collaborative relationships? a. focus on selling products b. provide a customized offering c. serve a limited number of customers d. involve a long-term perspective e. center on adding value

Which of the following is not one of the characteristics of trust-based relationship selling? a. Seeks to maximize outcomes of individual transactions. b. Focuses on customer needs. c. Seeks to earn customer trust. d. Relies on questioning and listening to establish dialogue with customers. e. Involves two-way collaborative communication between buyers and sellers.

____________ is matching the capabilities of the recruit with the needs of the organization. a. Achieving congruence b. Achieving realism c. Achieving self-esteem d. Achieving accuracy e. Initiation to task

Relations Among Environmental Factors, Marketing Plans, and the Sales Program

A. To be successful, a firm's plans must be adapted to the influences of the external and internal corporate environments. B. A firms sales program is only one part of an integrated marketing strategy. As changes are made in other parts of the marketing strategy, the sales program must be adjusted C. Regardless of how well conceived a sales program is, or how well it is integrated into a firms overall marketing strategy, its implementation depends on the willingness and ability of individual members of the sales force to carry out its policies and procedures.

The profit maximization point is when a. the total possible sales effort has been achieved. b. the marginal costs of adding a salesperson are equal to the marginal profits generated by that salesperson. c. the marginal profits for a salesperson are maximized by assigning them to a certain territory. d. the incremental profits of a salesperson provide a return over and above the cost to employ him or her. e. the optimal account to salesperson ratio has been determined.

Ensuring that salespeople know the ethical and legal framework for their markets, including cultural and global market variations, is a salesforce response to which of the following issues?/

Accountability issues /

Which of the following are characteristics of sales professionalism?.

All of the above are characteristics of sales professionalism. .

Trends from transactions to relations, individuals to teams, and management to leadership are producing a more ___ _ organization in many sales organizations. a. specialized b. decentralized c. generalized d. centralized e. functional

Which of the following is one of the steps in corporate strategy development?.

Analyzing the corporate situation to identify potential opportunities and threats..

A __________ selling strategy is the most appropriate strategy to use with a partnership relationship strategy. a. problem solving b. consultative c. need satisfaction d. mental states e. stimulus response

A company's marketing communications strategy consists of a mixture that includes all of the following except a. publicity. b. distribution intensity. c. advertising. d. personal selling. e. sales promotion.

A(n) __________________ strategy is the classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group. a. relationship b. account targeting c. selling d. sales channel e. marketing

Advertising-driven marketing communications strategies are best when all of the following characteristics exist except a. There are many buyers. b. Buyers are concentrated geographically. c. Purchase information needs are low. d. Purchases are not important. e. Products being purchased are low in complexity.

By creating something perceived industry wide as being unique, a company is employing the ___________ business unit strategy. a. generic b. differentiation c. low-cost d. segmentation e. niche

If the sales organization objective is to increase sales volume and expand distribution outlets, then the SBU objective is likely to be a. hold market share. b. build market share. c. develop market share. d. establish market share. e. harvest market share.

Increasing the efficiency and effectiveness of sales operations is a (an) a. complexity issue. b. accountability issue. c. adaptability issue. d. collaboration issue. e. commitment issue.

Roles that buying-center members might play in a particular purchasing decision include all of the following except a. purchasers. b. producers. c. influencers. d. users. e. deciders.

Sales strategy should be based on an understanding of all of the following critical elements of organizational buyer behavior except a. buying needs. b. buying discrimination. c. buying process. d. buying situation. e. buying center.

Salesforce socialization refers to a. the encouragement salespeople get to socialize with their colleagues after work hours. b. the process by which salespeople acquire the knowledge, skills, and values essential to perform in their role as salespeople. c. the overall social values held by the firm about contemporary issues affecting the firm. d. the salesperson's education concerning the ways other salespeople handle role conflict and role ambiguity. e. the process by which all new members of a firm's salesforce learn to coordinate their efforts with those of other employees in an effective manner.

The basic idea behind specialization is that a. certain individuals are more ideally suited for some types of jobs than others. b. if individuals can concentrate on a limited number of activities, they can become experts on those tasks. c. division of labor will lead to the most cost-effective selling effort possible. d. when salespeople become experts on certain products, integrating the efforts of different salesforces becomes easier. e. customers would rather speak with a salesperson that specializes in selling one product.

The buying center member who controls the flow of information between buying center members is referred to as the a. initiator. b. gatekeeper. c. influencer. d. decider. e. purchaser.

The decison-making process in straight rebuy buying situation is often referred to as a. extensive problem solving. b. routinized response behavior. c. rapid response behavior. d. limited problem solving.

The overall objective of territory design is to a. motivate salespeople to their fullest potential. b. ensure that all accounts are assigned salesperson responsibility and that each salesperson can adequately cover the assigned accounts. c. evaluate the workload for each territory. d. group the planning and control units into territories that are as equal as possible in opportunity. e. assess the potential sales that the firm might achieve in each planning and control unit.

Which of the following is a disadvantage of a product sales organization structure? a. Limited specialization b. Customer duplication c. Need for coordination d. Lack of management control over product emphasis e. Fewer management levels

Which of the following is not considered a common sales dialogue? a. Assessing the prospective customer's situation and buying processes. b. Explaining the features and benefits of the product. c. Confirming the prospective customer's strategic priorities. d. Negotiating an agreement to do business. e. Building customer value by providing additional opportunities.

Which of the following is not one of the steps in corporate strategy development as outlined in the text? a. Determining corporate mission and objectives. b. The development of an account management strategy. c. Defining strategic business units. d. Setting objectives and resource allocations for each strategic business unit. e. Analyzing the corporate situation to identify potential opportunities and threats.

Which of the following is the first phase in the buying process? a. Description of the characteristics of the item and the quantity needed. b. Recognition of problem or need. c. Description of the characteristics of the item and quantity needed. d. Search for and qualification of potential sources. e. Acquisition and analysis of proposals.

Which of the following statements regarding a buying center is true? a. The roles of buying-center members are generally pointed out to the seller ahead of time. b. Each individual may perform more than one buying center role. c. The purchasers buying role always includes making the final purchase decision. d. Each buying role is performed by only one individual at a time. e. The buying center is always formally designated on the company's organization chart.

Which of the following statements regarding organizational buying situations is true? a. There are no similarities in the types of buying situations facing different accounts. b. Buyers facing a new-task buying situation will typically use a lengthy process to collect and evaluate purchase information. c. Selling organizations can use the same sales strategy for each type of buying situation if they change their sales coverage strategy. d. In a modified-rebuy buying situation, the buyer has not previously purchased or used the product, but has used similar products. e. When buyers are merely reordering from the current supplier, they are in an ongoing- project buying situation.

___ _ is the only promotional tool that consists of personal communication between seller and buyer. a. Sales promotion b. Personal selling c. Advertising d. Public relations e. Publicity

__________ refers to the aptitude, skills, knowledge, personal traits, and willingness to accept occupational conditions necessary to perform the job. a. Job analysis b. Job qualifications c. Job description d. Job title e. Congruence

____________ is giving the recruit an accurate portrayal of the job. a. Achieving congruence b. Achieving realism c. Achieving self-esteem d. Achieving accuracy e. Initiation to task

Preapproach: qualifying the prospect

Before the sales person attempts to set up an appointment for a major sales presentation, he or she should determine whether the prospect qualifies as a worthwhile potential customer

This approach to leadership seeks to catalog behaviors associated with effective leadership:.

Behavior Approach.

Advertising-driven marketing communications strategies are best when all of the following characteristics exist except.

Buyers are concentrated geographically. .

A ___ _ structure facilitates decision making in the field and encourages the development of relationships with customers. a. specialized b. centralized c. decentralized d. generalized e. functional

A background investigation is generally performed a. after the initial interview. b. before the intensive interview. c. after the intensive interview. d. after resume screening, but before any interviewing. e. after the job has been accepted by the candidate.

A staff sales management position is a. less specialized than a line sales management position. b. part of the direct management hierarchy within the sales organization. c. responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.) and are not directly involved in sales generating activities. d. directly involved in the sales generation activities of the firm. e. directly responsible for a certain number of subordinates.

A(n) __________________ is the planned selling approach for each selling strategy. a. relationship b. account targeting c. selling d. sales channel e. marketing

Advantages of the geographic sales organization structure include all of the following except a. fewer management levels. b. no geographic duplication. c. salespeople develop better understanding of unique customer needs. d. low cost. e. no customer duplication.

As _____________, salespeople stimulate sales cycles and help customers reach buying decisions as soon as reasonably possible. a. financial contributors b. economic agents c. change agents d. communications agents e. customer value agents

Both costs to serve the customer and commitment between buyer and seller are lowest with this type of relationship strategy. a. Solutions Relationship b. Supplier Relationship c. Transaction Relationship d. Collaborative Relationship e. Partnership Relationship

Competitive position is defined as a. the strength of the relationship between the selling firm and an account. b. the number of active competitors for the account. c. the strength of the relationship between an account and each competing firm. d. a measure of the competitive strength of the firm in an area. e. a rank order of account desirability determining to what extent selling effort should be expended to win it.

Decisions regarding the allocation of selling effort, salesforce size, and design of territories are referred to as a. salesforce distribution. b. salesforce allocation. c. salesforce deployment. d. territorial apportionment. e. coverage decisions.

If the sales organization objective is to minimize selling costs and clear out inventory, then the SBU objective is likely to be a. hold market share. b. build market share. c. divest/liquidate market share. d. establish market share. e. harvest market share.

Implementing cross-functional programs to foster communication and cooperation is a salesforce response to which of the following issues? a. Complexity issues b. Adaptability issues c. Collaboration issues d. Commitment issues e. Accountability issues

In most sales organizations, __________ have the ultimate responsibility for recruiting and selection. a. district sales managers b. regional sales managers c. sales managers with direct supervisory responsibility d. SBU managers e. vice presidents of sales

Independent representatives can be characterized as a. the company's salesforce for industrial products. b. the end users for a company's product. c. independent sales organizations that sell complementary, but noncompeting, products from different manufacturers. d. channel middlemen that take title to the goods. e. channel middlemen that sell only in certain industries.

Personal selling driven strategies are appropriate when a. the market consists of only a few buyers scattered rather thinly over an area. b. a professional buyer is involved and does not need much information. c. the product is complex. d. the purchase is relatively unimportant. e. service after the sale is not necessary.

Span of control refers to a. the frequency with which subordinates are required to report to their immediate supervisor. b. the number of different hierarchical levels of sales management within the organization. c. the number of individuals that report to each sales manager. d. the actual structure of the sales organization, whether it is considered flat or tall. e. the amount of decision-making responsibility that each sales manager holds.

Mental states selling is largely a two-way interaction between salesperson and customer.

False

Most companies are replacing their field salesforce with the Internet.

False

The basic objective of market specialization is a. for salespeople to become experts in the assigned product category. b. to guarantee that there will be no duplication of selling effort. c. to ensure that salespeople understand how customers use and purchase their products. d. to more cost effectively serve the different needs of the customer. e. to make sure the needs of the large-volume customers are identified and met.

The buying center member who provides input for the purchasing decision is referred to as the a. initiator. b. gatekeeper. c. influencer. d. decider. e. purchaser.

The least specialized and most generalized type of salesforce is one that is a. product specialized. b. market specialized. c. geographically specialized. d. functionally specialized. e. strategic account specialized.

The preferred marketing communications tool for business marketing is a. public relations. b. advertising. c. personal selling. d. publicity. e. sales promotion.

The second step in the process of recruiting and selecting salespeople is a. selection. b. prospecting. c. recruitment. d. planning. e. hiring.

When a firm's competitive position is strong, and account opportunity is high, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts to take advantage of opportunity and maintain/improve competitive position. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

When salespeople are assigned specific types of customers and are required to satisfy all needs of these customers, this is referred to as a. product specialization. b. functional specialization. c. market specialization. d. geographic specialization. e. strategic account specialization.

When there is a high level of environmental uncertainty and when adaptability is critical to achieving performance objectives, a ___________ sales organization structure is suggested. a. decentralized b. generalized c. specialized d. centralized e. flat

Which of the following is not a key decision area of corporate strategy? a. Corporate mission b. Strategic business unit definition c. Target market selection d. Strategic business unit objectives e. Corporate growth orientation

Which of the following is not a recommendation when writing for an online recruitment ad? a. Keep it brief. b. Include key words and phrases. c. Avoid using crossheadings and bullet points. d. Use plain English and avoid long sentences. e. Make use of a link to give additional information to keep your word count down.

Which of the following statements regarding the marketing communications mix is false? a. The marketing communications mix should be consistent with the other elements of the marketing mix. b. An effective marketing communications mix must capitalize on the advantages of each marketing communications tool. c. In consumer marketing situations, the preferred marketing communications tool is personal selling. d. The benefits of personal selling may outweigh the costs in certain types of product/market situations. e. Firms in the direct selling industry, such as Avon and Mary Kay, use an atypical marketing communications strategy.

Which of the following statements regarding the straight-rebuy buying situation is false? a. The buyer is merely reordering from the current supplier and engaging in routinized response behavior. b. The account has considerable experience in using the product. c. The organization wants to collect additional information and may make a change when purchasing a replacement product. d. The account is satisfied with the current purchase arrangements. e. This is the least complex buying situation.

Which type of salesforce specialization does not result in any duplication of sales effort to an account or geographic area? a. Product specialized b. Market specialized c. Geographically specialized d. Functionally specialized e. Strategic account specialized

Most independent rep agencies have close to 100 salespeople and support staff.

False

Most sales organizations do not integrate the Internet with other sales channels.

False

Which of the following is not one of the four categories of training methods discussed in the text?.

Case studies .

One common sales job qualification is the ability to work well under close supervision.

False

One major trend in sales is the increase of transactional selling to foster sales growth.

False

__________ is based on the belief that one party can remove rewards and provide punishment to affect behavior..

Coercive power .

Which of the following is not a factor to be considered when developing a commission-only plan?.

Commission margin ..

According to the text, which of the following is not included in the implementation and control phase of the benchmarking process?.

Communicate benchmark findings and gain acceptance. .

Which one of the following statements regarding global compensation is false?.

Companies are increasing incentives for foreign-based employment. .

A company has one salesforce selling office equipment and another selling office supplies. They are organized according to geographic area and perform all selling activities to all types of accounts. They are considered to be a. market specialized. b. functionally specialized. c. strategic account specialized. d. product specialized. e. geographically specialized.

___________ rewards are those that are given in return for acceptable performance or effort..

Compensation .

Recruiting and developing salespeople who understand diverse cultures, languages, and business practices is a salesforce response to which of the following issues?.

Complexity issues .

Which of the following personal selling approaches focuses most on the buyer's needs and strategic priorities?/

Consultative selling /

Which of the following is a disadvantage of a product sales organization structure?.

Customer duplication .

A hybrid sales organization structure is a. generally composed of a combination of the strategic account and geographic sales organization structures. b. based on the premise that a mix of the different sales organization structures is always much better than any one. c. easier to implement than other sales organization structures. d. a complex structure that might include elements of geographic, product, market, function, and strategic account organizations. e. able to reduce geographic and customer duplication by using elements of a functional sales organization.

A low overall market share with domination in a particular region or segment is usually indicative of a company employing this business unit strategy: a. segmenting. b. regional. c. differentiation. d. niche. e. low cost.

A sales channel strategy can be defined as a. the type of relationship the selling firm desires to develop and maintain with the account. b. the decision to build either a relationship or transaction marketing type of salesforce. c. the number of accounts per field representative for a certain area. d. the methods by which accounts receive selling effort. e. decisions made by marketing management that determine whether sales will be personal selling or advertising driven.

A(n) __________________ strategy ensures that accounts receive selling effort coverage in an effective and efficient manner. a. relationship b. account targeting c. selling d. sales channel e. marketing

All of the following are elements of the third and final step of the recruiting and selection process, except a. background investigation. b. physical exam. c. screening resumes and job applications. d. locating prospective job candidates. e. testing.

All of the following regarding the mental states approach to personal selling are TRUE except a. It is largely a one-way presentation with the salesperson doing most of the talking. b. It requires that salespeople listen carefully to the customer to determine what stage they are in. c. Tailoring of the presentation is based on mental states rather than customer needs. d. It is customer oriented. e. It may be difficult to determine in which stage a customer resides.

All of the following would suggest the use of personal selling-driven marketing communications strategies except when a. trying to close the sale. b. the message timing is important. c. message flexibility is important. d. repetitive contact is important. e. reaction speed is important.

An example of one effect of integration of advertising and personal selling would be a. salespeople cold canvass to find interested prospects, then ask them to watch a videotape advertising their product. b. an advertisement gives a toll-free number where customers can call to place their order. c. a commercial on television promises a satisfaction guarantee on their product to potential customers. d. advertising is used to generate sales leads, which are then turned over to the salesforce to close the sale. e. qualified customers are located through the company's directories and then called on by the salesforce.

Because of the existence of salesforce turnover, a. firms should scale down their sales efforts to a level that the current salesforce can manage. b. firms should redesign their compensation programs if they are losing substantial salespeople each year. c. firms should have alternative sales allocation plans based on both a full strength and reduced salesforce. d. firms should determine the desired salesforce size and then adjust this figure to reflect expected turnover. e. firms should solicit their competitor's best salespeople to offset the opportunity costs of turnover.

Both costs to serve the customer and commitment between buyer and seller are highest with this type of relationship strategy. a. Solutions Relationship b. Supplier Relationship c. Transaction Relationship d. Collaborative Relationship e. Partnership Relationship

Decisions regarding the allocation of selling effort, salesforce size, and design of territories should be addressed a. independently. b. prior to determining the organizational structure. c. as being completely unrelated decisions. d. in an interrelated manner. e. as different parts of the puzzle.

Distributors can be characterized as a. the company's salesforce for industrial products. b. the end users for a company's product. c. independent sales organizations that sell complementary, but noncompeting, products from different manufacturers. d. channel middlemen that take title to the goods that they market to end users. e. channel middlemen that do not take title to the goods.

Employees, such as salespeople, are a good source of job referrals because a. if they like someone they are probably going to be able to work effectively with them. b. they meet many other salespeople while making sales calls. c. most salespeople have a natural talent for recruiting and selection. d. they have a good understanding of the type of person sought for a sales position. e. they appreciate an opportunity to help a friend get a job.

In the simplest type of sales organization structure, the following situation would exist: a. Each salesperson is responsible for selling one particular product. b. Each sales manager is responsible for only a few key accounts. c. One sales manager concentrates on training activities and another concentrates on planning activities. d. Each salesperson is responsible for selling all the company's products to all types of accounts. e. Each salesperson calls on only certain designated customers.

An account can be considered complex under any of the following circumstances except when a. it has multiple buying locations. b. top management heavily influences its purchasing decisions. c. multiple functions are involved in buying decisions. d. it requires special services. e. it purchases standardized products.

Need satisfaction personal selling is based on the notion that a. customers need to be told what they want. b. the customer needs to know what products the firm offers. c. salespeople should be friendly because customers need to feel that they are appreciated. d. customers will be motivated to buy to satisfy particular needs. e. customers have only one need at a time and it must be met before the salesperson can interest them in any other product.

One definition of an SBU is a. a qualitative description of the firm's strategic orientation in relation to customers and markets, products and services, geographic scope, and technology. b. the method by which corporate management implements, evaluates, and controls the corporate strategic plan. c. the corporate growth orientation of the firm. d. a designated unit within a corporation that is operated like an individual business. e. the firm's decision regarding market share objectives for different product lines.

Sales generally increase in a ________ manner with the addition of salespeople, while costs typically increase in a ________ manner. a. direct, indirect b. linear, nonlinear c. step-wise, linear d. nonlinear, linear e. nonlinear, step-wise

The buying center member who makes the final purchase decision is referred to as the a. boss. b. gatekeeper. c. influencer. d. decider. e. purchaser.

The concept "planning and control unit" can be defined as a. the division of the total market area of the firm into geographic areas with an equal number of accounts. b. the division of the total market area of the firm into geographic areas containing the same approximate square miles. c. the division of the total market area of the firm into geographic areas with an equal number of road miles. d. some entity smaller than a territory into which the total market area of the firm is divided. e. the division of the total market area of the firm into geographic areas called territories.

The concept buying center can be defined as a. the physical location of the purchasing agent's office. b. the division that handles the purchasing for the entire company. c. all individuals from a firm that participate in any selling operation. d. all individuals from a firm that participate in any particular buying decision. e. those individuals designated on the organization chart that have the authority to instigate purchases.

The decision-making process in modified rebuy buying situation is often referred to as a. extensive problem solving. b. routinized response behavior. c. minimal problem solving. d. limited problem solving.

The first step in the process of recruiting and selecting salespeople is a. selection. b. prospecting. c. recruitment. d. planning. e. hiring.

The first step of the recruitment and selection process for salespeople involves all of the following activities except a. establishing job qualifications. b. setting recruiting and selection objectives. c. conducting a job analysis. d. locating prospective candidates. e. developing a recruiting and selection strategy.

The individual needs that come into play in an organizational-buying situation tend to be a. the result of insecurity. b. related to the use of the product. c. entirely objective. d. career related. e. driven by a need to keep costs within a budget limit.

The mental states approach to personal selling assumes that buyers must be led through four mental states, which occur in this order: a. interest, attention, desire, action. b. attention, desire, interest, action. c. curiosity, interest, conviction, purchase. d. attention, interest, desire, action. e. listening, considering, aspiring, deciding.

The most successful mission statements are a. simple. b. complete. c. communicated directly to salespeople. d. all of the above.

When a firm's competitive position is strong, but account opportunity is low, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

When questioning references, questions concerning all of the following should be avoided except a. age. b. arrests. c. religion. d. education. e. marital status.

Which of the following is a key decision area for marketing strategy? a. account targeting strategy. b. relationship strategy. c. selling strategy. d. marketing mix development. e. sales channel strategy.

Which of the following is not an advantage of using independent sales representatives over company salesforces? a. The use of independent reps provides improved cash flow since payments to reps are typically not made until customers have paid for their purchases. b. The use of independent reps can provide greater territory coverage since companies can employ more reps than company salespeople for the same cost. c. Companies can usually penetrate new markets faster using reps because of their established customer relationships. d. Companies can maintain better control over the rep's selling activities than they can over a company salesforce. e. Independent reps provide a professional selling capability that is difficult to match with company salespeople.

Which of the following is not one of the changes expected to impact salesforces today? a. Salesforces will contain more elderly salespeople. b. Sales managers will face challenges associated with acquiring talent for an international salesforce. c. Sales managers will be involved with recruiting and selecting for team selling. d. Salesforces will be reduced or eliminated as companies continue to search for ways to cut costs. e. Salesforces will contain a higher proportion of women.

Personal selling is typically the preferred marketing communications tool in consumer marketing, while advertising is normally emphasized in industrial marketing situations.

False

Which of the following marketing mix situations would not indicate that an emphasis in personal selling would be appropriate? a. The channel system is relatively short and direct to the end users. b. The final price is negotiated between the buyer and seller. c. The product is complex and requires customer application assistance. d. The product needs to be "pulled" through the channel of distribution. e. The selling price or quantity purchased allows an adequate margin to support the selling expenses.

Which of the following statements pertaining to the stimulus response form of personal selling is true? a. The buyer takes a dominant role in the sales dialogue. b. The stimulus-response sales strategy cannot be used with a canned sales presentation. c. The stimulus-response sales strategy must be conducted in person because of the necessity for visual aids. d. Key selling points can be sequenced in a logical order and likely questions and objections can be addressed before they are voiced by the buyer. e. The stimulus-response sales strategy has the advantage of flexibility.

Which of the following statements relating to distributors is false? a. They typically employ their own field salesforce. b. They may carry competing products from different manufacturers. c. Firms that use distributors normally have a relatively small company salesforce. d. Distributors should not be treated as customers. e. They may carry the products of only one manufacturer.

With regards to designing the sales organization, which one of the following is not an emerging trend? a. Many sales organizations are moving to some type of specialization. b. Sales organization structures are flatter. c. Sales managers typically have larger spans of control. d. Sales management levels have been added. e. Some staff positions have been eliminated.

__ __ and __ __ are typically responsible for strategic decisions at the account level. a. Salespeople, SBU managers b. Corporate management, sales managers c. SBU managers, marketing managers d. Sales managers, salespeople e. Salespeople, marketing managers

An organizational structure concept where individuals concentrate on performing some of the required activities to the exclusion of other tasks is a. concentration. b. customer-oriented. c. market-oriented. d. strategic account-orientated e. specialization.

Problem solving selling is differentiated from other sales approaches because it focuses on achieving strategic goals of customers.

False

Cooper Tire and Rubber's use of separate salesforces for Cooper brands, Falls brands, and house brands of tires is an example of a. market specialization. b. functional specialization c. strategic account specialization. d. geographical specialization. e. product specialization.

Sales channel strategy determines the type of relationship to be developed with different account groups.

False

Which of the following decisions can be regarded as the starting point in a comprehensive salesforce deployment approach?.

Deciding how much selling effort is needed to cover accounts and prospects so that sales and profit objectives will be achieved..

Which is the correct order of the steps involved in the Six Sigma process?.

Define, measure, analyze, improve, control .

Which of the following is not true regarding the design of a global salesforce compensation system?.

Design the plan centrally and dictate to local countries. .

Which of the following is not an example of an organizational need that might be important in a purchase situation?.

Desire for job security. .

A territory is considered to be a. a geographical area in which the company has not previously prospected for accounts. b. the amount of geographical area that any one salesperson can cover effectively. c. all of the firm's accounts that do business within a certain area. d. the geographical area in which a salesperson resides. e. the assignment of specific accounts to a specific salesperson.

According to the text, when salespeople alter their sales messages and behavior during a sales presentation or as they encounter unique sales situations and customers they are using a. value based selling. b. response selling. c. contingency selling. d. situational selling. e. adaptive selling.

According to the text, which of the following is not one of the activities that require the marketing and the sales functions to work closely together? a. Sales forecasting b. Target marketing c. Value proposition development/customer messaging d. Customer account selection e. Merchandising

References need not be checked because as one sales manager puts it, "Even the losers have three good references so I don't bother checking them."

False

If buying-center members want to reduce purchase risk and protect job security, they might a. buy the lowest-priced alternative offered. b. buy the product with the record of fewest breakdowns. c. buy the product with the lowest operating costs. d. buy a product that they are told uses state-of-the-art technology. e. buy the product with the most well known brand name.

New customers may be turned over to account servicing salespeople referred to as a. hunters b. merchandisers c. missionary salespeople d. pioneers e. farmers

One main advantage of the functional sales organization structure is a. no geographic duplication. b. no customer duplication. c. sales efforts do not have to be coordinated. d. low cost to the firm. e. efficiency in performing specific selling activities.

To be considered as a strategic, the account should be both ________ and ________. a. high in volume sales, high in total dollar sales b. large, buy large amounts of one product c. complex, small d. profitable, large e. large, complex

When a firm's competitive position is weak, and account opportunity is low, the selling effort strategy should be to: a. perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts. b. provide minimal selling effort to accounts and replace the personal selling effort with advertising. c. invest heavy selling effort in accounts. d. invest sufficient selling effort in accounts to maintain current competitive position. e. provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

Which of the following are characteristics of sales professionalism? a. It requires a customer orientation. b. It involves the use of truthful, non-manipulative sales strategies. c. It requires that salespeople work from a dynamic, ever-changing knowledge base. d. It focuses on satisfying the long-term needs of customers and the selling firm. e. All of the above are characteristics of sales professionalism.

Which of the following is not a type of sales channel strategy outlined in the text? a. Internet b. Distributors c. Independent representatives d. Team selling e. Door-to-door selling

Which of the following is not one of the steps of the ADAPT questioning methodology? a. Assess the buyer's situation. b. Discover the buyer's needs. c. Activate the buying process. d. Project the impact of solving a problem or realizing an opportunity. e. Transition to the close.

Which of the following is one of the steps in corporate strategy development? a. Developing a marketing mix to serve a target market. b. The development of an account management strategy. c. Developing a corporate strategy for each of the SBUs. d. Determining the amount to spend on the personal selling function. e. Analyzing the corporate situation to identify potential opportunities and threats.

Which of the following statements regarding the stress interview is false? a. It is designed to put job candidates under extreme, unexpected psychological duress for the purpose of seeing how they will react. b. It may create an unfavorable image of the company. c. It may alienate some of the better candidates. d. It appears to be a risky and ethically questionable approach. e. It may be a form of discrimination in some cases, in which its use would make it illegal.

Which one of the following is not a stage in the SPIN selling technique? a. Investigate the customer's situation. b. Determine the customer's problem. c. Discuss implications of the problem if it is left unattended. d. Show how the salesperson's offering can solve the problem. e. Follow up the sale with additional product offerings.

________ support the sales effort by setting up point-of-purchase displays, rotating stock, and keeping store personnel informed about new products and sales promotions. a. order-getters. b. order-takers. c. missionary salespeople. d. complementary salespeople. e. merchandisers.

__________ are salespeople who support the sales effort by providing information and performing other supplemental services. a. Hunters b. Pioneers c. Order-takers d. Order-getters e. Missionary salespeople

__________________is the process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization. a. Need satisfaction selling b. Stimulus response selling c. Contingency selling d. Mental states selling e. Consultative selling

Which of the following statements regarding the objective and task method of determining expenditure levels for selling expense categories is true?.

Each sales manager prepares a separate budget request; these are reviewed and through an iterative process selling budgets are approved..

Sales and marketing are always clearly aligned in understanding what customers want and need.

False

Increasing sales productivity has little impact on profitability.

False

A decentralized organization structure is one where authority and responsibility are placed at higher management levels.

False

A disadvantage of recruiting online is its relatively high cost.

False

Accounts are more attractive the higher the account opportunity and the weaker the competitive position.

False

Although questions related to age, height, and weight should not be asked on a job application, it is perfectly acceptable to request information related to a military discharge and which holidays are observed by candidates.

False

An account targeting strategy is a determination of the type of relationship to be developed with different account groups.

False

An account targeting strategy is not needed to identify and classify accounts into useful categories.

False

An emerging trend affecting the design of sales organizations is the move toward smaller spans of control for sales managers.

False

As change agents, salespeople help to create, communicate, deliver and continually increase customer value.

False

As customer value agents, salespeople stimulate sales cycles and help customers reach buying decisions as soon as reasonably possible.

False

As one moves down the organizational chart from national sales manager to district sales manager, the number of individuals to be supervised directly decreases

False

At lower sales levels, using a company salesforce will normally be more cost-effective than using a rep organization.

False

Coaching is not an important role of the sales manager.

False

Consultative selling focuses on making short-term sales.

False

Consultative selling is appropriate for all sales situations.

False

Consumer goods companies typically do not employ professional salespeople.

False

Entrepreneurship is not a favorable characteristic of the sales manager.

False

Globalization is not considered an important element of the in the sales function.

False

In consultative selling, salespeople only need to be experts on the customer's business.

False

In general, management should use the largest planning and control unit that is feasible.

False

In product specialization, salespeople are assigned specific types of customers and required to satisfy all needs of these customers.

False

In a tall organization structure, there are more sales management levels and smaller spans of control.

True

The generation of new business for the selling firm is associated with which type of salespeople?.

Hunters and pioneers .

Which of the following statements regarding the marketing communications mix is false?.

In consumer marketing situations, the preferred marketing communications tool is personal selling..

PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS

Initiators - perceive the problem Users - must work with the product Influencers - provide information Gatekeepers - control information flow Buyers - purchasing agents Deciders - people with final authority

retail selling

Involves selling goods and services to ultimate consumers for their own personal use.

Stimulus response approach

Is based on the notion that every sensory stimulus produces a response. Sales recruits learn what to say (the stimulus) and what the buyers are likely to say (the response) in most circumstances.

Problem solving approach

Is similar to the need-satisfaction approach except that the sales person goes one step further to help the prospect identify SEVERAL alternative solutions, analyze their advantages and disadvantages, and select the best solution

Industrial selling

Is the sale of goods and services at the wholesale level.

All of the following are characteristics of benchmarking except.

It involves comparing an organization's current operating practices to average industry operating practices..

Which one of the following is not true regarding consultative selling?.

It is appropriate for all sales situations. .

All of the following regarding the mental states approach to personal selling are TRUE except.

It is customer oriented. .

vending approach

Justify the cost of the machine by telling the prospect that, although more expensive than competitor's machines, the features of your machine are superior than those of your competitors. slide 36

Which of the following likely is not one of the roles of the salesforce of the firm is using a differentiation strategy?.

Selecting customers based on high price sensitivity. .

High cost is one disadvantage of the market specialization sales organization structure.

True

A ____________ asks salespeople to indicate areas of need that could be addressed by sales training..

NOT customer survey.

A specialized structure is best when all of the following exist except.

NOT environmental uncertainty is high. .

Productivity improvements can be obtained by.

NOT increasing input with the same level of output.

New customers may be turned over to account-servicing salespeople referred to as.

NOT order getters

The most widely used type of financial pay plan is.

NOT salary plus a bonus.

If the sales organization objective is to minimize selling costs and clear out inventory, then the recommended compensation system is likely to be.

NOT salary plus commission or bonus.

According to the text, which of the following is not one of the key questions asked by those reluctant to use selection tests?.

NOTNOTNOT Are selection tests affordable?

Moral management would have what orientation toward the law?.

Obedience to the letter and the spirit of the law; the law represents minimal ethical behavior..

The generation of new business for the selling firm is associated with which type of salespeople?.

Order-getters and pioneers.

Which of the following is not mentioned in the text as a challenge to sales managers attempting to adjust their compensation plans to recognize team performance?.

Overall compensation and rewards increase with the use of team selling. .

Which of the following is not an advantage of a company specific job application form?.

Personal information, such as age and marital status that applicants have not included in their resumes can be requested..

canned presentation and its advantages

Prepared sales presentations Advantages: 1. gives new sales people confidence. 2. can utilize sales techniques proven effective. 3. gives some assurance that the complete story will be told. 4. greatly simplifies sales training.

__ __ and __ __ are typically responsible for strategic decisions at the account level..

Sales managers, salespeople .

If the SBU's objective is to "divest/liquidate market share," then its primary sales tasks would be to dump inventory and eliminate service.

True

Preapproach: complexity of products

Purchasing agent, very low complexity, sales rep. Buying center, very high complexity, sales rep or selling team.

According to the text, with regards to recruiting and selection strategy, which of the following is false?.

Recruitment and selection activities occur only when a job vacancy occurs..

Which of the following actions would improve future ROAM performance?.

Reducing inventory levels .

If a salesperson made this statement regarding his sales manager, "I like him personally and regard him as a friend," the manager is likely exercising what type of power?.

Referent power .

____________ is a data-driven methodology that attempts to eliminate defects in any process..

Six Sigma .

Which of the following is not considered a common sales dialogue?.

Speaking with competitors about potential customers. .

If the SBU's objective is to "harvest market share," then its sales organization objectives would be to reduce selling costs and target profitable accounts.

True

stated versus hidden objections

Stated objections may be phony.

If the firm has customers with similar needs and the firm sells a complex range of products, a product-specialized salesforce is recommended.

True

Which of the following is not a key decision area of corporate strategy?.

Target market selection .

If the firm has customers with similar needs and the firm sells a simple product offering, geography-driven specialization is recommended.

True

business unit strategy

The essence of a business unit strategy is to determine how the business unit can develop a competitive advantage over its competitors.

Which of the following marketing mix situations would not indicate that an emphasis in personal selling would be appropriate?.

The product needs to be "pulled" through the channel of distribution..

Which of the following statements regarding the use of the scale termed INDSALES is false?.

The scale uses statements designed to measure satisfaction in five general areas..

If you were a salesperson using the mental states approach and your customer was in the action state, you would attempt to close the deal.

True

Which of the following is not an advantage of combination plans?.

They are fairly simple to administer. .

Which of the following statements regarding changes in the reward system is false?.

They should be made during recessionary periods..

In a firm with geographic specialization, there is no attempt to specialize by product, market, or function.

True

Which of the following is not one of the steps of the ADAPT questioning methodology?.

Transition to the close. .

A college campus recruiting method that is gaining in popularity is the sales internship.

True

A company can test for drug use if the applicant is informed of the test prior to taking it, if the results are kept confidential, and drug testing is reasonably related to potential job functions.

True

A job analysis defines the expected behavior of salespeople.

True

A job description can be used to clarify duties and thereby reduce role ambiguity.

True

A job description may be used to aid in evaluating performance.

True

A market bonus is a one time payment to highly qualified salespeople that recognizes an existing imbalance in supply and demand in a given labor market.

True

A relationship strategy is a determination of the type of relationship to be developed with different account groups.

True

A selling strategy is the planned selling approach for each relationship strategy.

True

A solutions relationship emphasizes solving customer problems.

True

A strategic account is generally considered as one yielding a large amount of sales dollars and having a complex buying process.

True

A valid reference check may be useful in helping a company prevent a lawsuit resulting from a negligent hire.

True

Advances in computer hardware and software have made the task of territory design much simpler and less time consuming than in the past.

True

An SBU usually has its own sales organization with sales managers and salespeople

True

An emerging trend affecting sales volume is the emphasis on sales productivity.

True

As a communications agent, salespeople provide valuable information back to the company.

True

Because salespeople often encounter buyers with different personalities, communications styles, and needs and goals, adaptive selling is an important concept.

True

By setting specific objectives for recruiting and selection, sales managers can channel resources into priority areas and improve organizational and salesforce effectiveness.

True

Careful listening is required when using the mental states selling approach to determine which stage the buyer is in at a given point in time.

True

Centralization is most appropriate when sales organization activities are routine and repetitive

True

Centralization refers to the degree to which important decisions and tasks are performed at higher levels in the management hierarchy.

True

Companies are using the Internet in a way that meets customer needs and reduces selling costs.

True

Companies using an integrated advertising and personal selling effort might use advertising as a low cost-per-contact way to identify potential customers.

True

Consultative selling often requires that the salesperson be a coordinator, arranging for others in the selling company to play a role in the sales process.

True

Customer compatibility can help build trust.

True

Customer value is essentially defined as the customer's perception of what they receive in exchange for what they give up.

True

Customers appreciate the need satisfaction selling approach as they feel that their point of view and unique circumstances are being addressed.

True

For people who aspire to be entrepreneurs, selling experience can be indispensable.

True

The allocation of selling effort is one of the most important salesforce deployment decisions.

True

The best sales person is typically a person that gets excited every day and looks forward to their work.

True

The corporate mission statement has a direct effect on sales management activities.

True

The critical task for the marketing strategist is to develop a marketing mix that satisfies the needs of the target market better than competitive offerings.

True

The definition of SBUs must be consistent with the strategic orientation of the corporation.

True

The different strategies at different levels of the organization must be consistent and integrated for the firm to perform successfully.

True

The major disadvantage of personal selling is the high cost to reach each member of the audience.

True

The members of the buying center are often from different functional areas and desire different benefits from a purchasing agent.

True

The most successful approach to utilizing the mission statement appears to be when the complete corporate mission statement is simplified and communicated directly to salespeople.

True

The sales organization structure may have to be changed as the selling situation changes.

True

The sales organization structure provides a framework for sales organization operations by indicating what specific activities are performed by whom in the sales organization.

True

The sales strategy, sales organization and salesforce deployment decisions produce the basic structure for personal selling.

True

The salesperson's strong relationship within their company is often equally important to their relationship to the client.

True

The terms strategic account, key account and major account can be used interchangeably.

True

The unique aspects of organizational buyer behavior revolve around the buying situation, buying center, buying process, and buying needs.

True

The use of distributors adds another member to the distribution channel.

True

To be effective, the problem solving approach typically requires that salespeople clearly illustrate the significance of the existing problem.

True

To deal with the complex business environment, sales must become a "smarter" business function.

True

Trust-based relationship selling seeks to initiate, develop and enhance long-term customer relationships.

True

Valuable clues about the recruit may be gathered from the appearance and completeness of the resume.

True

When conducting a background check it is good advice to be wary of first-party references.

True

When finalizing territory design, the objective is to achieve the best possible balance between opportunity and workload for each territory.

True

When questioning references, avoid questions concerning arrests.

True

Without a TEAM effort, the salesperson may not succeed.

True

When conducting performance appraisals, which of the following may lead to a discriminatory appraisal lawsuit?.

Using different rating forms for rating different salespeople. .

To define a mission (mission statement) we must what 3 questions?

What is our business? Who are our customers? How are we positioned in the market?

All of the following are suggestions for coaching except.

Whenever possible, replace formal training with coaching. .

The sales growth experienced by different organizational levels can be determined by.

a comparison of actual sales results to previous periods' sales..

SBU

a designated unit within a corporation that is operated like an individual business. consist of a single product or line of products marketed to defined market segments. include all of the basic business functions with managers responsible for the performance of each function and the SBU

One definition of an SBU is.

a designated unit within a corporation that is operated like an individual business..

Research shows that more successful salespeople have all the following characteristics except.

a desire to avoid teamwork. .

business unit portfolio

a firms portfolio of their SBUs

core selling team

a formal sales team assigned to a specific customer. team members can come from all business functional areas. normally headed by a sales manager or salesperson. Most extreme form

A study of manufacturers' salespeople found ___________ relationship between job satisfaction and salespeople's commitment to the organization..

a positive .

detailer

a salesperson who provides pertinent info to support the overall sales effort

strategic business unit

a separate business strategy must be developed for each SBU. consists of multiple products serving different markets, each product/market combination requires as specific marketing strategy

mental states selling

a sequential approach to selling in which the salesperson leads the customer through stages, or mental states, in the buying process. Commonly expressed as AIDA. not customer oriented. any tailoring is based on which mental state the customer is in. it does force some pre planning. Tries to determine which stage the customer is in.

equity

a state of interactive equilibrium which is achieved when the individuals in an interaction are allocated outcomes that are proportional to their inputs

strategy

a statement of the fundamental pattern of present and planned objectives, resource deployments, and interactions with markets, competitors, and other environmental factors that indicate how an organization - or sub-unit or department within an org - intends to survive and prosper over time.

Which one of the following is not a stage in the SPIN selling technique? Select one: a. Follow up the sale with additional product offerings. b. Show how the salesperson's offering can solve the problem. c. Discuss implications of the problem if it is left unattended. d. Determine the customer's problem. e. Investigate the customer's situation.

a. Follow up the sale with additional product offerings.

According to the trust-based relationship selling process framework, "discovering prospect's needs" is a part of which component of the framework? Select one: a. Initiating customer relationships b. Enhancing customer relationships c. Selling strategy based on customer needs and value d. Developing customer relationships e. Selling foundations

a. Initiating customer relationships

Which of the following statements pertaining to the stimulus response form of personal selling is true? Select one: a. Key selling points can be sequenced in a logical order and likely questions and objections can be addressed before they are voiced by the buyer. b. The stimulus-response sales strategy must be conducted in person because of the necessity for visual aids. c. The buyer takes a dominant role in the sales dialogue. d. The stimulus-response sales strategy cannot be used with a canned sales presentation. e. The stimulus-response sales strategy has the advantage of flexibility.

a. Key selling points can be sequenced in a logical order and likely questions and objections can be addressed before they are voiced by the buyer.

__________ are salespeople who support the sales effort by providing information and performing other supplemental services. Select one: a. Missionary salespeople b. Pioneers c. Hunters d. Order-takers e. Order-getters

a. Missionary salespeople

how is legal/political an opportunity or threat?

a. antitrust law (Competition good) b. consumer protection legislation

As _____________, salespeople stimulate sales cycles and help customers reach buying decisions as soon as reasonably possible. Select one: a. change agents b. economic agents c. financial contributors d. communications agents e. customer value agents

a. change agents

How is 'social' an opportunity or threat?

a. demographic b. educational

How is the economy a opportunity or threat?

a. total potential demand (Elastic/Inelastic) b. level of competition (Monopoly, Oligopoly, etc.) c. distribution structure (#, Types & Availability of wholesalers, retailers and their power)

In coaching the salesforce, the sales manager may use all of the following learning tools or concepts except.

absorption training. .

farmers and order takers

account servicing salespeople who are given the new customers

account targeting .

According to the text, when salespeople alter their sales messages and behavior during a sales presentation or as they encounter unique sales situations and customers they are using ./

adaptive selling. .

advertising to consumers is __________

advertising

use _________ to reach masses, then ________ to see if they're prospects, then __________

advertising; telemarketing; personal selling

In general, when sending salespeople on international assignments, it is helpful if they are.

all of the above. .

Research suggests that salespeople's enthusiasm for participating in contests and their design preferences for goal type, number of winners, contest duration, and award value may vary by.

all of the above. .

The most successful mission statements are.

all of the above. .

To improve collaboration between sales and marketing, the two parties should agree on critical customer issues such as.

all of the above. .

With a self-directed training program, salespeople are responsible for.

all of the above. .

All of the following are consequences of ineffective territory design except.

all salespeople have equal opportunities for generating sales and profits. .

A definition for sales organization effectiveness would be.

an overall evaluation of how well the sales organization did in achieving its goals and objectives..

Sales training is conducted in.

any of the above. .

asking for the order. 5 types: assumptive, physical-action, standing-room-only, trap, special offer

financial contributors

assume a key role in revenue production

assumptive close

assumes that the sale has been made. The sales rep starts filling out the order form.

A more centralized sales organization will place budget responsibility.

at higher sales management levels. .

The mental states approach to personal selling assumes that buyers must be led through four mental states, which occur in this order:.

attention, interest, desire, action. .

publicity

audience perceives the medium, not the organization, as the source of the message

Which of the following is not one of the characteristics of trust-based relationship selling? Select one: a. Involves two-way collaborative communication between buyers and sellers. b. Seeks to maximize outcomes of individual transactions. c. Focuses on customer needs. d. Relies on questioning and listening to establish dialogue with customers. e. Seeks to earn customer trust.

b. Seeks to maximize outcomes of individual transactions.

The mental states approach to personal selling assumes that buyers must be led through four mental states, which occur in this order: Select one: a. listening, considering, aspiring, deciding. b. attention, interest, desire, action. c. attention, desire, interest, action. d. curiosity, interest, conviction, purchase. e. interest, attention, desire, action.

b. attention, interest, desire, action.

Which of the following is not one of the steps of the ADAPT questioning methodology? Select one: a. Assess the buyer's situation. b. Transition to the close. c. Discover the buyer's needs. d. Activate the buying process. e. Project the impact of solving a problem or realizing an opportunity.

b. Transition to the close.

Salespeople who focus on gaining new customers are sometimes referred to as Select one: a. farmers b. order-getters c. missionary salespeople d. merchandisers e. order-takers

b. order-getters

This evaluation procedure uses salespeople to identify important performance results and the critical activities and responses necessary to achieve these results:.

behaviorally anchored rating scales(BARS). .

to support the _______, salespeople are expected to achieve revenue goals or a healthy _____ on the profit and loss statement

bottom line; top line

if the sales organization objective is to increase sales volume and expand distribution outlets, then the SBU objective is likely to be.

build market share. .

The personal selling process

can be thought of as a chain, where each link must be successfully closed or the seller will fail to get the order.

customer compatibility

can help build trust. being viewed as a good person to do business with

The individual needs that come into play in an organizational-buying situation tend to be.

career related. .

The motivation task is incomplete unless salespeople's efforts are.

channeled in directions consistent with the overall strategic role of the salesforce within the firm..

When a sales manager provides the salesperson with information on how and why, the desired outcome is achieved, he/she is using this coaching technique:.

cognitive feedback. .

sales managers are playing more of a leadership role by emphasizing:

collaboration rather than control. coaching instead of criticism. salesperson empowerment rather than domination. sharing info rather than withholding it. adapting to individual salespeople rather than treating everyone the same.

A company that expects its salespeople to perform a variety of activities such as gain new customers, retain key customers, establish new product in the marketplace and maintain a balance between sales volume and profitability might use a.

combination pay plan. .

The sample statement, "Management is progressive," used in the INDSALES scale would be attempting to measure this dimension of job satisfaction:.

company policy and support. .

the essence of business strategy is what?

competitive advantage

The dimensions of job satisfaction that the INDSALES scale attempts to measure include all of the following except.

competitor sales jobs. .

____________ is a method in which salespeople furnish the stimuli (words and actions) to produce the desired response (a customer purchase). Select one: a. Continued acclamation b. Mental states selling c. Need satisfaction selling d. Stimulus response selling e. Problem solving selling Check

d. Stimulus response selling

According to H.R. Chally findings, customers appreciate salespeople who Select one: a. will solve customer problems. b. are personally accountable for the customer's desired results. c. will be a business consultant who thinks beyond the current transaction. d. do all of the above. e. understand the customer's business.

d. do all of the above.

Which of the following is not one of the four key roles expected of salespeople? Select one: a. Change agent b. Financial contributor c. Communication agent d. Product agent e. Customer value agent

d. Product agent

A (n) __________ is a salesperson who provides physicians, nurses, and other medical professionals with pertinent information about drugs to support the overall sales effort. Select one: a. pioneer b. hunter c. order-taker d. detailer e. merchandiser

d. detailer

planning

deciding what to do in the present to achieve what is desired in the future. requires decisions concerning the firm's goals and objectives for the future and the actions that should be taken to accomplish them

closely related to sales organization decisions are what kind of decisions?

decisions on the amount and allocation of selling effort

when selling to an elastic market when you _______ P you _______ revenue

decrease; increase

cross elasticity

demand of one product affecting the demand of another

customer value

depends on the buyer's situations, needs, and priorities, but essentially it can be defined as the customer's perception of what they receive in exchange for what they give up. determined by product/service capabilities and the support given by the sales org to the customer

Answers to the what, when, where, and how questions are finalized during this step in the sales training process:.

design sales training program .

During this step in the sales training process, sales managers may have to seek budget approval from upper management:.

design sales training program .

formal sales team

designed to close a transaction with a specific customer. intermediate form.

The assets that are typically included in the formula for calculating return on assets managed (ROAM) are.

inventory and accounts receivable. .

According to H.R. Chally findings, customers appreciate salespeople who.

do all of the above. .

Research suggests that printed advertising material should.

do all of the above. .

All of the following are negative aspects of the mental states approach to personal selling EXCEPT Select one: a. Tailoring of the presentation is based on mental states rather than customer needs. b. It is largely a one-way presentation with the salesperson doing most of the talking. c. It may be difficult to determine in which stage a customer resides. d. It is not customer oriented. e. It requires that salespeople listen carefully to the customer to determine what stage they are in.

e. It requires that salespeople listen carefully to the customer to determine what stage they are in.

Which of the five personal selling approaches is the least flexible and least focused on the buyer's unique needs? Select one: a. Need satisfaction b. Mental states c. Contingency selling d. Problem solving e. Stimulus response

e. Stimulus response

In their role as a communications agent, salespeople do all of the following EXCEPT Select one: a. report back to their company on competitive activity. b. report back to their company on buyer preferences and ideas for new products. c. provide product and marketplace information to customers. d. serve as a communications link between customers and their employers. e. stimulate sales cycles and help customers reach buying decisions.

e. stimulate sales cycles and help customers reach buying decisions

Which of the following is considered a common sales dialogue? Select one: a. Building customer value by providing additional opportunities. b. Confirming the prospective customer's strategic priorities. c. Negotiating an agreement to do business. d. Assessing the prospective customer's situation and buying processes. e. All of the above are common sales dialogue?

e. All of the above are common sales dialogue?

External Environmental Variables: Opportunities and Threats (SWOT). What are the 5?

economic, social, political/legal, natural (raw materials and energy sources), and technical (product development opportunities and SFA)

aggregate demand on part of the consumer market is _______

elastic

CHOICE administrators

emphasize a teamwork approach in providing health benefit programs to small and midsize businesses. the company has inside and outside salesofrce

sales productivity orientation

emphasizes producing more sales for a given level of costs by doing things more efficiently

Sales organizations are being scrutinized for ___________

ethics and fiscal responsibility

can presentation

everyone gets the same pitch

procrastinating objections

example: let me think about it for a while

These types of power bases have been found to be positively related to salespeople's satisfaction with their sales manager:.

expert and referent power. .

collaboration for customers

extend the concept of customer oriented selling to include problem solving and involving the salesforce in recovering from service problems

problem solving selling

extends need satisfaction selling beyond identifying needs to developing alternative solutions for satisfying these needs. SPIN selling.

Salespeople who focus on gaining new customers are sometimes referred to as Select one: a. order-takers b. none of the above c. detailers d. all of the above e. merchandisers f. pioneers g. missionary salespeople

f. pioneers

sales presentation

face to face interactions between buyers and sellers

According to the text, a common mistake made by salespeople who need training on sales techniques is.

failing to effectively confirm the sale. .

New customers may be turned over to account servicing salespeople referred to as/

farmers /

the expectations of salespeople can be viewed as achieving four key roles:

financial contributor, change agent, communications agent, and customer value agent

As _____________, salespeople assume a key role in revenue production for their firms..

financial contributors .

transition from management to leadership

flattens the hierarchy and empowers salespeople to make more decisions in the field.

outside salespeople

focus on developing the face to face relationship with customers

leadership activities

focus on influencing sales people through communication processes to attain specific goals and objectives

entrepreneurial sales organization

focuses on creativity, innovation, empowerment, strategy, technology, and collaboration

The least specialized and most generalized type of salesforce is one that is.

geographically specialized. .

special offer close

giving the customer a special offer to induce them to buy.

skills salespeople most desire from their managers are

good communication, ability to motivate, and training and coaching

This method of salesperson performance evaluation has been described as having problems related to the "halo effect":.

graphic rating/checklist method. .

physical-action close

hand the prospect a pen as an indication it's time to sign

communications agent

heavily involved as two way communications agent between their customers and their employers

customer value agent

help to create, communicate, deliver, and continually increase customer value

An evaluation of sales results throughout the sales organization from a top-down perspective is a.

hierarchical sales analysis. .

disadvantages of personal selling

high cost to reach each member of the audience

If the sales organization objective is to maintain sales volume then the SBU objective is likely to be.

hold market share. .

candor

honesty

One major question that must be addressed for prospecting:

how much emphasis sales people should give to prospecting for new customers versus servicing new accounts.

strategic planning

in most large firms typically occurs in several stages which guide activities at different levels within the organization.

management activities

includes all aspects of the sales management process, such as recruiting, selecting, and training salespeople

preapproach

includes all the information gathering activities necessary to learn relevant facts about the prospect and his or her needs and situation

sales productivity

includes the costs associated with generating sales and serving customers.

marketing strategy

includes the selection of target market segments and the development of a marketing mix to serve each target market

A behavior-based perspective to evaluating and controlling salesperson performance.

incorporates complex and often subjective assessments of salesperson characteristics..

Which of the following is not true regarding an outcome-based perspective to evaluating and controlling salesperson performance.

incorporates complex and often subjective assessments of salesperson characteristics..

when selling to an inelastic market when you _______ P you _______ revenue

increase; increase

The most rigorous approach for calculating salesforce size is the.

incremental method. .

This approach to determining salesforce size cannot normally be used for a new salesforce because it requires historical data or accurate management judgments:.

incremental method. .

sales strategies are designed for what kind of accounts?

individual and groups of similar accounts; therefor, an account targeting strategy is needed to identify and classify accounts into useful categories

inputs

individual's contribution to the exchange that entitle that person to rewards or costs

selling center

individuals are involved in a particular sales transaction in an informal teamwork approach. individuals can come from any business function and can participate at any stage of the sales process. responsible for orchestrating the resources of the selling org to meet the needs of the buying org. Least extreme form.

aggregate demand in organizational market is _____

inelastic

Asking candidates to tell you about their strengths and weaknesses will provide information about their.

insight. .

Approach

inspires interest in hearing more about the proposition, makes an easy transition into the presentation, and gets the prospects attention

The __________ is usually designed to get an in-depth look at the candidate..

intensive interview .

When different interviewers rate the same applicant differently, this is an example of.

interviewer bias. .

When a firm's competitive position is strong, and account opportunity is high, the selling effort strategy should be to.:

invest heavy selling effort in accounts to take advantage of opportunity and maintain/improve competitive position..

When a firm's competitive position is strong, but account opportunity is low, the selling effort strategy should be to:.

invest sufficient selling effort in accounts to maintain current competitive position.

personal selling 2

involves interpersonal communications between buyers and sellers to initiate, develop, and enhance customer relationships

When attempting to use the diagnostic information provided by salesperson-evaluation methods the major difficulty is in.

isolating the specific causes of low performance. .

All of the following are benefits of 360-degree feedback except.

it eliminates sales manager involvement. .

a firm's sales strategy is important for two reasons:

it has a major impact on a firm's sales and profit performance. it influences many other sales management decisions

Formal recognition programs have a better chance of success if sales managers do all of the following except:.

make it easy enough to allow for a majority of the salesforce to win. .

salespeople should...

know what motivates, be an expert, link features and benefits to buyer motives

The __________ model proposes that sales managers interact uniquely with individual salespeople rather than employing a specific leadership style for different situations..

leader-member exchange .

The principle of recency suggests that.

learning is facilitated when the salesperson is asked to apply a coaching suggestion soon after receiving it..

stimulus response selling

least flexible and least focused on the buyer's unique needs and strategic priorities. all customers get the same presentation. salespeople furnish the stimuli (word and actions) to produce the desired response (a customer purchase). Used by telemarketers. most suitable for unimportant purchase decisions.

Porter's 3 competitive SBU strategies

low cost, differentiation, and niche

generic business strategies

low cost, differentiation, or niche

According to the text, advantages of using expatriates to staff the international salesforce include all of the following except..

low turnover rates .

When the firm has a simple product offering but customers have different needs a ________ salesforce is recommended..

market specialized .

IMC marketers and sales functions roles

marketers: focus on products, analysis, processes and long term sales function: focus on customers, relationships, daily activity, short term

evaluation and control is the process of what?

measuring and assessing the performance of a sales person or sales force.

assumptive close

merely assume prospects are going to buy and begin taking orders by asking questions

A (n) __________ is a salesperson who supports the overall sales effort by "spreading the gospel" at the grassroots level..

missionary salesperson.

adaptive selling

modify their sales messages and behaviors during a sales presentation or as they encounter unique sales situations and customers

The primary responsibility of the sales manager while the training is being conducted is to.

monitor the progress of the trainees and ensure adequate presentation of the training topics..

only business environment where there is control of a price is a ________

monopolistic competition

the traditional transaction selling model is increasingly being replaced by _______________

more relationship oriented selling approaches

Changes in the definition of SBUs can affect the personal selling function in all of the following ways except.

more sales managers will always have to be hired..

sales organization audit

most comprehensive approach for evaluating the effectiveness of the sales organization as a whole

According to the text, common mistakes made by salespeople who need training on sales techniques include all of the following except.

not spending enough time with old customers. .

A company that asks candidates to engage in group discussions, business game simulations, presentations, and role play exercises, so that members of management may evaluate their performance capabilities is probably using this method of selection:.

notnotnot group interviewing.

meeting objections

objections should be welcomed and indicate that the prospect has some interest in the proposition

One suggested way of achieving realism in the recruiting and selection process is to.

offer a job preview through a field visit with a salesperson. .

According to research on relationship building characteristics, customers want salespeople who do all of the following except.

offer them the best discounts. .

distribution can be an __________ depending on if you can utilize the _______

opportunity and threat; channel

A firm offering a college tuition reimbursement program has made a commitment to providing this nonfinancial reward:.

opportunity for personal growth. .

This form of nonfinancial reward is generally considered to be more desirable to younger salespeople than to older salespeople:.

opportunity for promotion. .

When a sales manager provides the salesperson with information about whether a desired outcome was achieved, he/she is using this coaching technique:.

outcome feedback. .

During the initial interview, sales managers should not:.

oversell the job to candidates. .

Probably the most often used method to establish selling budgets is.

percentage-of-sales method. .

When a firm's competitive position is weak, but account opportunity is high, the selling effort strategy should be to:.

perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts..

Methods of needs assessment include all of the following except.

performance audit. .

advertising to businesses is _______

personal selling

Companies emphasize _________ and use ________ as supplemental tools

personal selling and advertising; publicity and promotion

what are the 4 marketing communication tools

personal selling, advertising, sales promotion, and publicity

For sales training purposes, some firms use classification methods to categorize buyers according to.

personality and the buying situation. .

The first step in the process of recruiting and selecting salespeople is.

planning. .

When critiquing training alternatives, all the following criteria should be established for preliminary screening except the:.

popularity of the form of training. .

Use of this analytical method requires that account opportunity and competitive position be measured for each account:.

portfolio model..

low cost strategy

position a supplier as a high volume producer with tight cost and overhead control. Capitalizes on economies of scale. Associated with relatively high market share

outcomes

positive or negative consequences resulting from interaction

All of the following topics are open to charges of discrimination except.

previous job experience. .

objection to price and product

price is too high or prospect can't afford price

demand in business market isn't sensitive to _______ but rather ______

price; quality

consultative selling

process of helping customers reach their strategic goals by using the products, services, and expertise of the sales org. Requires that the salesperson be an expert on the customer's business, competitors, and market developments. Educating the customer is an important activity. focuses on achieving strategic goals of customers.can solve customer problems, meet customer needs, and provide additional customer opportunities. Must focus on strategic priorities of the customer. Focus on long term. Must define value beyond price.

Usefulness, as a characteristic of salesperson performance evaluation methods, can be defined as.

the ability of the measure to provide information that is valuable to sales managers in making various decisions..

product specialized. .

inside salespeople

provide easy access for customers with questions or problems

what do corporate and business level strategic decision do?

provide guidelines within which sales managers and salespeople must operate. especially true for firms focusing on CRM

When a firm's competitive position is weak, and account opportunity is low, the selling effort strategy should be to:.

provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis..

If the SBU objective is harvest market share, the primary sales tasks include all of the following except.

provide product/market feedback. .

corporate strategy

provides direction and guidance for activities at all org levels

corporate mission statement

provides direction for strategy development and execution throughout the org. sales managers use these corporate guidelines as a basis for establishing specific policies for the entire sales org

ADAPT method

questions should be used to assess the buyer's situation, discover the buyers needs, activate the buying process, project the impact of solving a problem, and make a transition to the sales presentation. purpose is to develop an efficient, relevant line of questioning that will help hte saleperson and buyer find common ground for sales dialogue

While other methods of performance evaluation were rated very good on job relatedness and reliability criteria, this method received a poor rating:.

ranking methods. .

The second step in the process of recruiting and selecting salespeople is.

recruitment. .

All of the following would suggest the use of personal selling-driven marketing communications strategies except when.

repetitive contact is important. .

According to the text, all of the following should be done when using performance information to identify potential problems where salespeople need to improve for better performance in the future except.

report problem areas to top management. .

The importance of matching the abilities and needs of sales recruits to the ________ cannot be overstated..

requirements and rewards of the job .

target market selection

requires a definition of the specific market segment to be served

In their dealings with salespeople, sales managers have been criticized for placing too much emphasis on.

reward and coercive power. .

studies have shown that reciprocal trust between sales managers and salespeople has a positive effect on the salesperson-sales manager relationship. The research indicates positive relationships between trust and all of the following except.

role conflict. .

The concept of repetition suggests that.

sales managers should make a practice of holding coaching sessions after each sales call to help reinforce the suggestions given..

In most sales organizations, __________ have the ultimate responsibility for recruiting and selection..

sales managers with direct supervisory responsibility .

A ___________ constitutes only one part of a _____________, and the ________ is only one element of the total _________ in most firms.

sales program; marketing plan; marketing plan; strategic plan

standing room only close

sales rep tells prospect the product is hard to get in the hopes that the prospect will sign the order.

a _________ is designed to execute an orgs marketing strategy for individual accounts

sales strategy

Recruitment, selection, and sales training are examples of factors considered in this area of the sales organization audit framework:.

sales-management functions. .

Intraorganizational factors such as company organization are considered in this area of the sales organization audit framework:.

sales-organization environment. .

Decisions regarding the allocation of selling effort, salesforce size, and design of territories are referred to as.

salesforce deployment. .

transaction selling

salespeople focus on maximizing the outcomes of individual transactions rather than on longer relationship with customers. focuses on one way sales presentations (sales pitches) in which they try to get the customer to make an immediate purchase

hunters, pioneers, and order getters

salespeople who focus on gaining new customers

SPIN selling

salesperson investigates the customer's situation, determines a problem, discusses the implications of the problem if it is left unattended, and shows how the salesperson's offering can solve the problem (need payoff). not all customer problems are worth selling. determine the significance of the existing problem

AIDA

salesperson must get the prospective customers attention, then secure their interest, build the prospect's desire for the product, and then convince hte prospect to take action by making a purchase. this assumes that most buyers think alike and that salespeople can lead buyers through the steps in the buying process.

trust based relationship selling

seeks to initiate, develop, and enhance long term customer relationships by earning customer trust, focusing on customer needs, and having the salepserson play a key role in building the value received by the customer. rely on questioning and listening.

the key components in marketing strategy development

selecting target markets and designing marketing mixes

Which of the following is not one of the self-management behaviors mentioned in the text?.

self-control .

vending

selling price-performance benefits to purchasing agents. can take the form of tailored sales presentations or canned sales presentations.

When a sales manager assures salespeople that they fulfill a critical role in revenue production and other key activities within the company, he/she is offering this non-financial reward:.

sense of accomplishment. .

niche strategy

serving a particular target market, although market share in the industry might be low, the firm dominates a segment within the industry

dependability

should be the easiest to achieve for all salespeople. simple as doing what you say you will do; however, many people over promise and under deliver or forget to fulfill an obligation

If the company evaluates the market potential of each account, classifies all accounts into A, B, C, and D market potential categories, and then calculates and evaluates the average number of sales calls to make to an account in each category, they are using this analytical method:.

single factor model. .

MILES AND SNOW SBU COMPETITIVE STRATEGY TYPOLOGY

slide 28, ch 3

Consultative selling vs vending - Hanan

slide 32 & 33

what happens if strategic account selling programs are used?

specific attention must be directed toward determining the best organizational structure for serving these major accounts

account management policies

specify what individuals within each type of customer organization the sales person should attempt to contact, what kind of selling and service activities should be engaged in, and how these activities should be carried out

change agents

stimulate sales cycles and help customers reach buying decisions as soon as possible; heavily involved in the diffusion of innovation which frequently leads to improved quality of life for customers. can also positively impact economic cycles by assisting in recovery

5 personal selling approaches

stimulus response, mental states, problem solving, needs satisfaction, and consultative selling

3 types of buying situations

straight rebuys, modified rebuys, and new task buys

A ____________________ represents a type of market specialization based on account size and complexity..

strategic account organization .

What are the 5 Basic Considerations Buyers Use for Evaluating Alternative, First Time Suppliers

supplier performance, visits to suppliers plants, location of supplier's plants, supplier's plants capacity, and financial stability of the supplier

merchandisers

support he sales effort by setting up point of purchase displays, rotating stock, and keeping store personnel informed about new products and sales promotions

missionary salespeople

support hte overall sales effort by spreading the gospel at the grassroots level

the key components of any marketing strategy are the selection of a ________ and the development of a ________

target market; marketing mix

Compensation rewards might include all of the following except.

task significance. .

According to the text, which of the following is not considered one of the factors most likely to influence a sales team's success?.

team quotas .

A major advantage of productivity ratios is.

that they can be compared directly across the entire sales organization and with other sales organizations..

differentiation strategy

the creation of something perceived industry-wide as being unique. Provides insulation against competitive rivalry because of brand loyalty and decreased price sensitivity.

Centralization within the management structure can be best described as.

the degree to which important decisions and tasks are performed at higher levels in the management hierarchy..

In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure:.

the full-cost approach to income statement analysis. .

sales strategy must be based on:

the important and unique aspects of org buyer behavior

sales force management

the management of the personal selling component of an organization's marketing program.

The profit maximization point is when.

the marginal costs of adding a salesperson are equal to the marginal profits generated by that salesperson..

Validity in the salesperson evaluation method is necessary because it ensures that.

the measures provide accurate assessments of the criteria they are intended to measure..

prospecting

the method or system by which sales people learn the names of the people who need the product and can afford it

in terms of money spent, personal selling is....

the most important part of marketing communications, especially in business to business markets.

Standardization, as a characteristic of salesperson performance evaluation methods, can be defined as.

the need for the measurement instruments and evaluation process to be similar throughout the sales organization..

selling strategy

the planning of sales messages and interactions with customers. can be defined at 3 levels: 1. for a group of customers 2. individual customers and 3. specific customer encounters (sales calls)

more sales orgs are focusing on what?

the profitability of sales. this changes the focus from sales volume only to sales productivity

Internal sources of sales recruits include all of the following except.

use of a private employment agency. .

According to the text, controls typically used by companies to ensure judicious spending by the salesforce include all of the following except.

the requirement that expenses be charged and the bills sent directly to the company for payment by the accounting department..

as companies adopt a market orientation what happens?

the role of sales managers and salespeople becomes strategically more important

Limited research shows that behavior-based control appears to be used under all of the following conditions except..

the salesforce is large. .

A sales training workshop devoted to teaching the importance of selling the "substance" of the product offering and not just the "sizzle" is aimed at teaching salespeople how to work with this type of buyer:.

the straight shooter. .

integrated marketing communication

the strategic integration of multiple marketing communication tools in the most effective and efficient manner. objective is to use the most cost effective tool to achieve a desired communication objective and to ensure a consistent message is being communicated to the market

Advantages of straight-salary compensation plans include all of the following except.

the working capital requirements are lessened with the straight-salary compensation plan..

consumers

those that buy for household or personal use; other buyer is an org buyer

"If you do not call on your accounts at least once a week, you will lose your job," is an example of which influence strategy?.

threat. .

In an effort to increase salespeople's ethical standards, Certified Professional Salespeople are asked to pledge to all of the following except:.

to avoid obtaining information about competitors that could assist in making sales presentations..

The initial use of the information provided by the various salesperson performance evaluation methods is.

to determine the absolute and relative performance of each salesperson. .

major purpose of a sales strategy

to develop a specific approach for selling to individual accounts within a target market. capitalizes on the important differences among individual accounts or groups of similar accounts

The basic objective of market specialization is.

to ensure that salespeople understand how customers use and purchase their products..

Researchers have tried to determine the personality characteristics an effective leader should have by using this method:.

trait approach. .

A __________________ is characterized as a contingent reward on contingent punishment orientation..

transactional leadership style .

A __________________ is represented by an orientation toward inspiring subordinates to engage in desired behavior and perform at high levels..

transformational leadership style .

Behaviorally anchored rating scales (BARS) are a unique evaluation procedure because they are the only method that.

tries to link salesperson behaviors with specific results. .

Salespeople who are customer oriented, honest, dependable, competent, and compatible are in a good position to establish.

trust. .

order takers

try to increase sales as they build customer share; they seek to improve the seller's position within each account

sales professionalism

use of customer oriented, truthful, non manipulative sales strategies and tactics to satisfy the long term needs of customers and the selling firm. requires that salespeople work from a dynamic, ever changing knowledge base

trap close

using the prospects objections to close the sale.

vending approach

value=utility/price

tailored selling deals with _____ and _____

vending and consultative

advantages of personal selling

viewed as more credible and has more of an impression than messages delivered through mass media. allows for better timing of message deliver and it affords the flexibility of communicating different messages to different customers or changing a message during a sales call based on customer feedback

the most obvious need for a global orientation is?

when a company moves into unfamiliar international markets

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