Chapter 17 mktg

Drew is a sales manager with Fastenal - an industrial distributor of supplies for manufacturing, facility managers, and other industrial customers. He currently supervises 7 people and is wondering the typical or optimal number of first-line sales representatives that he should supervise. Based on the text, what do you recommend as the optimal number for him to supervise?

6

The sales promotion technique that rewards consumers with an item either for free or at a reduced cost when they purchase another product is called:

A premium

A cosmetics manufacturer decides to educate its customers about its new product during commercial breaks in a popular TV reality show. This represents which of the following forms of marketing?

Advertising

In the _____ stage of the sales process, the salesperson contacts the potential customer for the first time.

Approach

A _____ is a specially packaged item that gives the purchaser a larger quantity at regular price.

Bonus Pack

. Julia noticed that her favorite shampoo is being packaged in a slightly larger bottle for the same price as the standard size bottle. This is an example of a

Bonus pack

As a new employee in the sales promotion department of a hotel chain, you proudly tell a coworker about all the ways you can help the chain grow. Later, you're embarrassed when you realize you misspoke. You mistakenly claimed that sales promotion is especially well suited for:

Building awareness of the hotel brand

Which of the following financial incentives is designed to give retailers discounts on goods?

Buying Allowance

Which of the following statements is FALSE concerning personal selling in today's business environment?

Career opportunities for recent college graduates pursuing sales is projected to decline in the future

Which of the following can be classified as a creative approach to over-the-counter selling?

Clothing retailer Lord and Taylor expanding the capabilities of the fitting rooms in its stores

Zero Tech, a provider of game programming, directed its highly skilled and technically sound salespeople to visit customers without prior appointment and make a sales pitch on the spot. Which of the following techniques was used by the sales staff?

Cold Calling

Prior to making the approach to a potential customer, the salesperson should

Collect and analyze information about the potential customer.

A _____ is a payment tied directly to the sales or profits a salesperson achieves.

Commission

Bailee recently joined a direct sales company as an independent contractor and earns 20% on product sales. She's excited about the opportunity to earn additional income by using social media to market her products to friends. Recently, she was a top 10 producer and sold $1000 in product which translates to an extra $200 in income for Bailee. The type of compensation Bailee receives from the company is called:

Commission

A sales rep's actual sales relative to sales potential is relevant to the sales manager in which of the following phases of the sales management process?

Controlling and evaluating sales force performance

With regard to sales promotion, magazines, newspapers, and package inserts are the standard methods of distributing:

Coupons

When a considerable amount of analytical decision making by the customer is involved in purchasing a product or service, the salesperson will probably use:

Creative selling

You are conducting interviews for new sales representatives for your electronics firm. You are primarily looking for candidates that you believe can be successful in developing new business and selling to new customers. Your current staff is full of sales representatives who are exceptional at generating repeat sales. You will be looking for personal sales personnel who are proficient in which kind of sales task?

Creative selling

is a sales task in which salespeople use well-planned strategies to seek new customers by proposing innovative solutions to customers' needs

Creative selling

Cutco is a manufacturer of high-end cutlery for the home chef and markets their products through a sister company, Vector Marketing who often contracts with college students who are independent sales representatives for the company. Vector provides free product and sales training to their independent sales representatives and encourages them to take food with them on sales calls such as apples, cucumbers, tomatoes or other fresh produce so that prospective customers can actually use the knives and experience the Cutco difference. In addition, Cutco is relatively famous for their kitchen shears which can cut through a penny and during training, all Vector Marketing representatives are taught how to show the versatility and value of the shears. Which step in the sales process would a Vector Marketing representative have customers use the knives or kitchen shears?

Demonstration

Bits Inc., a manufacturer of server processors, sends out its trained salespeople to inform prospective and existing customers about its latest range of processors and provide demonstrations. The promotional effort adopted by this company is an example of:

Field selling

Carlos has always been interested in the medical profession and took advanced biology and human anatomy courses in college so he could pursue his dream of working in the medical device industry. He's now employed with Stryker who is a leading medical device company offering specialized products such as artificial joints and surgical tools. Carlos works in the orthopedics division and often demonstrates his company's products with surgeons in the operation room at hospitals and enjoys the opportunity to train physicians on new equipment or devices. Carlos has an office in his apartment and works with physicians, hospitals and medical offices in his 2-state territory. Stryker provides a company car, computer, and expense account so Carlos can minimize his out-of-pocket expenses when traveling to meet with prospects and customers. Which of the following sales channels is most appropriate to describe Carlos' position with Stryker?

Field selling

Because Signal Sales is losing money, its marketing director has been told to cut selling costs. While she is unenthusiastic, the director knows that her best approach is to shift sales personnel out of the _____ channel into the _____ channel.

Field selling, online selling

Which of the following products requires a high degree of creative selling?

Flat screen TVs

When you choose a career in personal selling, you are promoting your company and the products or services it offers. How do you communicate the advantages of your goods and services over those of the competition?

Focus on the customer; follow through; know the industry and the competition; exceed customer expectations.

Firms that market similar products throughout large areas often organize their sales forces:

Geographically

What is the major determinant of a successful salesperson?

He or she is customer-oriented.

As head of sales for your firm, one of your key supervision-related responsibilities is determining an optimal span of control. You consider all of the following factors except:

How much each salesperson is paid

Which of the following is a customer-oriented sales promotion technique?

IDK

Which of the following is a principal method used in sales training?

In-house classes

The Lands' End catalog provides a toll-free number for customers to call and place orders. The staff is pleasant and knowledgeable and will place orders and answer questions. This is an example of a(n):

Inbound telemarketing effort

Which of the following factors will increase the importance of personal selling in the promotional mix?

Increasing emphasis on productivity

Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage the "tech hotline." These individuals not only answer technical questions from customers, they also identify customer needs and recommend products that can fill those needs. They have the ability to initiate and close sales on the spot. These individuals are essentially participating in:

Inside Selling

Telemarketers who combine field selling with a strong customer orientation using both inbound and outbound communications are engaging in:

Inside selling

Your clients don't need to be sold a product—they have already subscribed to your expensive premium service. But they do need to be able to call on you when they have a problem with the service or when they require special consideration. You provide technical support, solve problems, and make sure the customer is included in special events that your company sponsors. You also make certain that everyone who is a premium subscriber is sent an annual gift, compliments of your company. Because you don't meet your customers face-to-face, you sometimes call yourself an electronic concierge! What kind of sales are you involved in?

Inside selling

Which of the following is true of personal selling?

It is interpersonal and basic to any enterprise

Which of the following is true of missionary selling?

It is used by salespeople to offer low value sales incentives to their customers for superior performance.

In her role as sales manager, Julie tells her team to always behave ethically on the job. However, Barbara sees Julie talk a customer into buying an unneeded product just because the sale will fulfill her quarterly quota. If Julie really wants to create a culture that encourages ethical behavior, she must:

Lead by example

Brandon is a sales manager and often is involved in recruiting new sales representatives to join the firm. He has been trained in conducting behavioral-based interviews so he can identify whether candidates possess the appropriate characteristics to be successful in a consultative sales position. Which of the following characteristics would MOST LIKELY be important to Brandon during his interviews?

Listening skills

First-line sales managers need very strong sales skills, while sales managers at higher organizational levels need more _____ skills.

Managerial

Draymond worked in the hospitality industry during college and had extensive experience in food service and dining centers. He obtained a sales position with Hormel and was attracted to the position because his job primarily involved promotion of Hormel's various products to restaurants, hospitals and other institutional buyers in cooperation with local distributors such as Sysco Foods. Draymond enjoys the opportunity to work as a team with his Sysco Foods sales representatives who often ask him to join them on their sales calls to customers. Draymond does not take orders from customers for Hormel products but works collaboratively with Sysco Foods whose representatives work directly with customers to identify and fulfill their needs for Hormel products. Draymond's position is best classified as _______ selling.

Missionary

A salesperson from Healthcare Pharmaceuticals provided free samples of the company's latest line of pain relievers to retailers in an effort to promote the firm's goodwill during a sales approach. Later, a wholesaler took orders and delivered the merchandise. Which of the following sales tasks had been performed by the salesperson?

Missionary selling

Megan sells a high-end line of cosmetics. All of her customers are family members and friends. She sells these products through an informal gathering at her home, where she demonstrates the products and explains how to use them. Some of her existing customers share their experiences and list the benefits of the product. This type of personal selling is known as:

Network Marketing

Which of the following is a characteristic of a corporate culture that encourages ethical behavior?

Open communication exists between employees and managers.

A salesperson of a beer company determines that a retail store has only 10 cases of beer left in stock when it normally carries an inventory of 60. The salesperson informs the store manager of the inventory situation. Which of the following sales tasks is being performed by this salesperson?

Order processing

When personal selling efforts use telephone technology in a sales approach where the sales representative initiates the calls, it is known as _____ telemarketing.

Outbound

Which of the following is the most effective method to promote products when the customers of a firm are geographically concentrated?

Personal Selling

As a new salesperson, you are concerned with how your decisions will affect your customers, your sales team, and your company. You notice that many of your workmates accept gifts and perks from clients, even though that practice is frowned upon by management and discouraged according to what you have read in the handbook. Some colleagues have been reprimanded for accepting gifts from customers just in the short time you have been with the company. What will be your focus regarding ethical business practice?

Personal ethical behavior

Which of the following might be classified as an unethical sales practice?

Persuading a customer to purchase a product or service that does not meet a customer's need

Which type of sales promotion is intended to capture the impulse purchase?

Point of purchase displays

After determining that a prospective customer is a good candidate to actually make a purchase, the salesperson will want to gather as much information about the customer as possible. This step in the sales process is known as:

Precall Planning

A2Z Microchips depends largely on outbound telemarketing for product promotion. Recently the organization was able to weed out busy signals and voice mail systems of its customers which doubled the number of calls made by its sales personnel. Which of the following technologies is A2Z using?

Predictive Dialers

Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop and automotive service providers as well as insurance agents. Chelsey knows that many automobile owners have car rental riders as part of their automobile insurance and when their car is damaged from a storm or accident, they could receive a rental car while their vehicle is being repaired. When Chelsey meets with her customers, she typically promotes the features and benefits of Enterprise such as how Enterprise provides exceptional service and goes above and beyond to pick-up customers at their preferred location and give them their rental vehicle. In addition, most of Enterprise's fleet of vehicles are less than 2 years old and are well maintained to provide a comfortable driving experience. Chelsey tells her agent and body shop owner clients that by using Enterprise's services, their customers will have higher levels of customer satisfaction with their repair experience and that translates into loyalty for the insurance agent. During which step in the personal selling process will Chelsey share this information?

Presentation

The role of a sales representative in the promotion process has changed from that of persuader to that of a: a. technician and expert on product repair.

Problem solver

Alpha Trendz, a clothing and apparel manufacturer, carefully studies information available on the Internet. It also checks computerized databases and trade show exhibits before launching its latest line of designer clothes. The company is in the _____ stage of the sales process.

Prospecting

_____ is a personal selling function that involves identifying potential customers.

Prospecting

What are the typical first and last steps in the personal selling process?

Prospecting, follow-up

_____ is a cash reward paid to retail salespeople for every unit of a product they sell.

Push Money

A manufacturer wants to increase purchase rates of his product and reward those consumers who make multiple purchases. He decides to use a consumer-oriented sales promotion that has an expiration date and requires the purchaser to submit a proof of purchase. Which sales promotion will the manufacturer use?

Rebate

Scott has an 8-year-old Labrador Retriever who's starting to suffer from arthritis. On a recent trip to his veterinarian, the doctor recommended that Scott start using a prescription anti-inflammatory and pain medication for his dog. The veterinarian thinks a new drug, Previcox is extremely effective but relatively expensive at $1 per dose which is given daily. The drug sales representative has provided the veterinarian with a promotion opportunity where new customers can receive a VISA gift card of $12 when a new prescription is filled. The drug company is offering the veterinarian and their customers a(n):

Rebate?

Which of the following is the most effective way for a sales manager to motivate salespeople to give their best?

Recognizing their efforts and offering simple incentives

The overall direction and control of the personal selling effort is in the hands of a firm's:

Sales managers

Which of the following statements is accurate about sales promotion?

Sales promotion has increased dramatically, primarily at the expense of personal selling.

Which of the following sales promotion techniques produces a higher response rate than most other promotions?

Sampling

The number of sales representatives who report to a first-level sales manager is referred to as:

Span of control

Which of the following is a sales promotion technique that places the manufacturer's name, address, and marketing message on useful articles that are then distributed to target customers?

Specialty Advertising

The compensation package for sales personnel that gives management more control over how sales personnel allocate their efforts, but may reduce the incentive to expand sales, is the:

Straight Salary Plan

When visiting one of his major accounts, Matt is accompanied by finance and product specialists. These specialists are able to answer specific questions so that a customer can make a purchase decision. This is an example of _____.

Team Selling

Today's salesperson often employs a combination of personal selling approaches in order to provide high levels of customer service and satisfaction. What is one advantage of team selling in business-to-business sales situations?

Team selling emphasizes being well prepared for a sales call and presenting professionally.

Brittany is a sales representative with CDW, an information technology reseller. She is a specialist for the education market and contacts her customers who are typically information technology directors for K-12 schools and higher education. Her territory includes the entire United States and she is able to have flexible hours since some days she may arrive early to contact customers on the East Coast or stay late if she's contacting customers in the Mountain or Pacific time zones. Her company has a proprietary phone technology system which provides names and contact information of leads and current customers so Brittany can make the most of her sales calls and be more productive. She typically makes 20 to 25 dials an hour and on average is able to speak with 2-3 individuals each hour. She was initially surprised at her ability to connect with customers and create relationships through her phone conversations and has created trust-based relationships over time. Her customers value her advice and opinions because she understands their needs, has expertise in the products and services she represents and always seeks to meet their needs. Brittany's position is best categorized as a(n) ________ channel position.

Telemarketing

When products require creative efforts on the part of the salesperson such as extensive explanation and interaction, the best sales method is usually:

Telemarketing

As a field salesperson for a firm that builds custom software for large corporations, Fred relies heavily on consultative selling. His reasons include all of the following except:

To meet his quota, he aims to close quick sales

Which of the following is the most important reason for manufacturers to use sales promotion?

To offer extra incentives to customers to buy products

Which of the following is a part of the consultative selling process?

Understanding Customer Problems

Which of the following will improve the quality of the presentation used for approaching a prospective customer?

Using precollected information for tailoring the presentation to match the customer's needs

Most firms that use a customer-oriented organizational structure to strengthen their relationship with the largest customers adopt:

a national accounts organization

The criteria for sales evaluations have changed to include customer satisfaction, profit contribution, and customer retention as measures of success. This change was motivated by:

an increasingly long-term orientation that results from greater quality management and customer relationship building efforts.

You have gotten quite a few complaints recently from unhappy clients, among them the following: One customer feels that the salesperson was not transparent about contractual issues; another client feels like he was taken advantage of because English is his second language; and a third client feels like he was pressured into a purchase without having sufficient time to try out the product. You want to emphasize to your sales team the importance of upholding the ethical business practices that are characteristic of your company. What can you do to encourage honesty and ethical behavior?

arrange for an ethics and diversity training workshop

Sales promotion techniques were originally intended:

as short-term incentives aimed at producing immediate buying responses

You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in the sales process?

b. Qualifying

Meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sale is called _____ selling.

consultative

Jamie works for a local bank. Whenever a new customer opens a checking account, Jamie makes sure to mention some of the other financial services the bank offers. Jamie is engaged in:

cross-selling

The process of qualifying a sales prospect involves:

determining a potential customer's needs, income, and purchase authority

You are the head of sales training for a major financial services firm in New York City. You are conducting a sales training class for a group of new trainees. You are a strong believer in using a structured approach to personal selling. Based on this information, which of the following personal selling process steps are you going to tell the trainees to perform first?

develop a database of potential customers

In the context of the analysis of sales tasks, when technical support personnel help to install, set up, and maintain equipment for one of their customers, they are:

engaging in missionary sales activities.

The most expensive sales method overall is:

field selling, largely because of the travel costs of sales personnel.

_____ refers to the postsale activities employed by salespeople that determine whether an individual who made a recent purchase will become a repeat customer.

follow-up

A customer-focused firm wants its sales representatives to:

form long-lasting relationships with buyers by providing high levels of customer service.

The first step in the sales process is to:

identify the prospective customers.

Although research shows that most consumers dislike the practice of telemarketing and more than 220 million have signed up for the national Do Not Call Registry, organizations still use telemarketing because:

it is cost effective; the average call costs are low.

Sales managers can best foster an ethical work environment by:

letting employees know what is expected of them.

You are conducting interviews for new sales representatives for your manufacturing firm. You are primarily looking for candidates that you think will be resources for your indirect customers, educating them, providing technical assistance, and demonstrating how a new product is used. You will be looking for personal sales personnel who are proficient in which kind of sales task?

missionary selling

The trade-oriented promotion that consists of a display or other promotion located near the site of the actual buying decision is known as:

point-of-purchase advertising.

One important advantage of personal selling over most advertising is:

the ability to actually demonstrate the good or service.

The use of technology in order-processing tasks can lead to an increase in:

the accuracy of processing an order.

Personal selling is likely to be the primary component of a firm's promotional mix when:

the transactions frequently involve trade-ins.

Sales promotion that appeals to marketing intermediaries rather than consumers is called

trade promotion.

New sales personnel often find prospecting frustrating because it:

usually offers no immediate payback.

Your company wants to expand the specialized market to which it sells athletic gear. The general public may be drawn to your items because they are attractive and popular, but most people will balk at the high price tag for features they consider superfluous. You decide to contact strategic partners who can recommend your product, and help explain the concept behind workout gear that regulates body temperature, and why that feature is not only valuable but worth the extra cost. What personal selling strategy will be beneficial to you in your upcoming marketing campaign?

virtual sales team selling

You have accepted a new job in personal sales that requires training in the use of technologies like predictive dialers, random-digit dialing, and autodialing. What is the new job that you have accepted?

​outbound telemarketer