Chapter 9 - SmartBook
Salespeople should know the social styles of customers to strengthen a sales presentation. Match the social styles of customers (in the left column) with their preferences (in the right column). Expressives, Analyticals, Amiables, & Drivers
Expressives: Intense, strong colors and lots of photos, cartoons, fancy fonts, and positive images Analyticals: Clean, simple visuals, a list of references, and lots of details Amiables: Visuals that include people and a relatively slow-moving presentation Drivers: Professional and crisp visuals that have bold lettering to highlight important points
True or false: Most firms estimate the net present value (NPV) as a value less than $0 to quantify a solution in a selling situation.
False
True or false: Mostly, salespeople intend to use every visual aid in their portfolio in a single sales call to strengthen the call.
False
True or false: Suppliers and resellers with efficient consumer response (ECR) or quick response (QR) relationships avoid using electronic data interchange (EDI) to transmit purchase orders and shipping information.
False
True or false: The higher the risk posed by a situation to a prospect, the less attention the salesperson should pay to quantifying the solution during a sales presentation.
False
Tessa, a salesperson, plans to give an oral sales presentation to buyers. Match the methods she can choose to give a written proposal to the buyers (in the left column) with their procedures (in the right column). Giving the buyers a copy of the complete proposal before the presentation vs. Giving the proposal to the buyers during the presentation
Giving the buyers a copy of the complete proposal before the presentation: Spend about 5 to 10 minutes outlining the proposal and then ask for questions during the meeting Giving the proposal to the buyers during the presentation: Distribute the proposal a section at a time to avoid having the buyers read ahead instead of listening to the presentation
In the context of quantifying a solution for a prospect's problem during a sales presentation, match the levels of risks faced by the prospect (in the left column) with the corresponding situations (in the right column). Little risk, Moderate risk, High risk, Super-high risk
Little risk: Situations that involve products or services such as replacement parts or repairs Moderate risk: Situations that involve the expansion of the production capacity of a plant for an existing successful product High risk: Situations that involve programs designed to decrease costs or increase sales Super-high risk: Situations that involve brand-new products or services
As a method to quantify a solution in a selling situation, salespeople estimate the net profits, or savings, expected from a given investment, and express them as a percentage of the investment. This expression is known as the _____ _____ _____.
Return on Investment (ROI)
True or false: During buyer-seller interactions, the manner in which a salesperson handles a product suggests its value to a buyer.
True
Match the key issues that salespeople should address when writing their customer value proposition (in the left column) with their requirements (in the right column). What is important to a specific prospect? vs. How can the salespeople demonstrate their capability to a specific prospect?
What is important to a specific prospect? Requires the salespeople to understand the prospect's business model How can the salespeople demonstrate their capability to a specific prospect? Requires the salespeople to communicate value of a proposed solution to the prospect
A buying firm decides to spend $200 million to buy any of the following: a new computer system, a new production machine, or a controlling interest in another firm. To quantify a solution in a selling situation, salespeople should estimate the return the buying firm would have earned from this investment. This is referred to as the _____. a) opportunity cost b) customer value proposition c) cost-benefit analysis d) payback period
a
Identify a guideline for salespeople developing charts and related visuals for a sales presentation. a) Use layouts, scales, and art styles with consistency for a collection of charts and figures b) Use tables instead of graphics such as diagrams, pie charts, and bar charts c) Use more than six columns to provide a buyer with numbers d) Use more than five or six words per line on text visuals
a
Joshua, a salesperson, plans to give buyers handouts during a sales presentation. He should _____. a) avoid cramming too much information on a page of a handout b) avoid giving the handouts to foreign customers c) make the handouts look casual and unprofessional d) talk while the handouts are being passed out
a
Salespeople can quantify a solution in a selling situation by listing the costs to a buyer and the savings the buyer can expect from the investment. This is often known as a(n) _____. a) simple cost-benefit analysis b) automatic replenishment c) opportunity cost assessment d) root cause analysis
a
To develop charts and related visuals for a sales presentation, it is advisable for salespeople to _____. a) distinctly label each visual with a title b) use more than five or six words per line on text visuals c) include clip art instead of high-quality drawings d) use more than six columns to provide a buyer with numbers
a
To quantify a solution in a selling situation, salespeople estimate the payback period. Identify a formula to calculate the payback period expressed in years. a) Payback period = Investment ÷ Savings (or profits) per year b) Payback period = Investment x Savings (or profits) per year c) Payback period = Investment + Savings (or profits) per year d) Payback period = Investment - Savings (or profits) per year
a
Select all that apply Identify the guidelines that should be followed by salespeople when using a slide deck, such as Emaze, Prezi, PowerPoint, and Keynote, to give a sales presentation. (Check all that apply.) a) They should avoid merely progressing from one slide to the next. b) They should include visuals that encourage two-way conversation. c) They should use 14-point type for the titles and 12-point type for the text. d) They should extensively use transition effects and sound clips.
a & b
Select all that apply Identify the methods a salesperson should adopt to avoid a buyer's attention turning to other topics during interactions. (Check all that apply.) a) Alter the use of communication aids based on the buyer's social style b) Actively involve the buyer in the communication process c) Encourage passive listening behavior of the buyer d) Refrain from considering the social style of the buyer
a & b
Select all that apply In the context of a selling situation, how should a salesperson create a customer value proposition (CVP)? (Check all that apply.) a) By brainstorming with the sales team b) By creating a request for quote (RFQ) for prospects c) By engaging in backdoor selling d) By communicating with the customers
a & d
A $100 million investment of a firm is assumed to provide annual cash inflows over the next five years of $30 million per year. The cash inflows are discounted, at the firm's cost of capital, and the result is that they are actually worth $120 million in today's dollars. Based on this scenario, calculate the net present value (NPV) to quantify a solution in a selling situation. a) $30 million b) $20 million c) $40 million d) $10 million
b
A situation in which an opening price is set by the buyer and then sellers try to win the bidding competition by offering increasingly lower prices is called _____. a) sales puffery b) a reverse auction c) selling deeper d) a sneak attack
b
How should a seller strategically choose a method to strengthen his or her sales presentation? a) By checking whether the method sounds trendy b) By checking whether the method addresses a buyer's needs c) By checking whether the method focuses primarily on product description d) By checking whether the method worked in a previous sales call
b
Identify a true statement about a request for proposal (RFP) issued by a prospective buyer. a) It is primarily used when a seller makes a sales call for a new product. b) It should contain the buyer's specifications for a desired product. c) It is primarily used when the buyer has a vague idea of a product needed. d) It should contain the details of the vendors approached by the buyer in the past.
b
Salespeople estimate the return on investment (ROI) to quantify a solution in a selling situation. Which of the following is a formula to assess ROI? a) ROI = Net profits (or savings) + Investment b) ROI = Net profits (or savings) ÷ Investment c) ROI = Net profits (or savings) x Investment d) ROI = Net profits (or savings) - Investment
b
Salespeople give a written proposal to prospective buyers. The proposal include a one- or two-page synopsis that provides the total cost minus the total savings, a brief description of the problem to be solved, and a brief description of the proposed solution. This synopsis is known as a(n) _____. a) storyboard b) executive summary c) affidavit d) market profile
b
Sarah, a salesperson, intends to give customers handouts during her sales presentation. It is advisable for her to _____. a) include lots of information on a single page of a handout b) ensure that the handouts look professional c) talk while the handouts are being passed out d) avoid giving the handouts to foreign customers
b
The process of strengthening a sales presentation by showing a prospect that the cost of a proposal is offset by added value is known as _____. a) webcasting b) quantifying the solution c) seeding d) automatic replenishing
b
Select all that apply Identify the methods used by a salesperson to conduct a comparative cost-benefit analysis to quantify a solution in a selling situation. (Check all that apply.) a) By comparing his or her handouts with those of a competitor b) By comparing his or her product with that of a competitor c) By comparing the current situation's costs with the value of the proposed solution d) By comparing the request for proposal (RFP) issued by a buyer with that of another buyer
b & c
Select all that apply In the context of a selling situation, identify the main parts of a typical customer value proposition (CVP) created by a salesperson. (Check all that apply.) a) The similarities between the selling firm's product and a competitor's product with external proof b) The salesperson offering himself or herself as the personal problem solver c) The positioning of the selling firm as the prospect's short-term partner d) The product's or service's tangible and intangible benefits, including economical and emotional
b & d
A collection of visual aids that are often placed in a binder or on a computer is known as a _____, which salespeople develop to strengthen their sales presentations. a) spotter b) testimonial c) portfolio d) brochure
c
Liu, a salesperson, writes a proposal to a prospective buyer. When writing the proposal, he should avoid including _____. a) the benefits of the purchase for the buyer b) a description of the proposed solution to the buyer's problem c) buzzwords d) a budget
c
Salespeople calculate the net profit a reseller makes, expressed as a percentage of sales, to quantify a solution in a selling situation. This net profit is referred to as the _____. a) inventory turnover b) return on space c) profit margin d) net present value
c
Samantha, a salesperson, writes a proposal to a prospective buyer. When writing the proposal, she should _____. a) include trite words b) include buzzwords c) concentrate on the results that the prospect can gain from going with the proposal d) try to maximize the amount of time spent responding to a request for proposal (RFP)
c
Scarlett, a salesperson, intends to include a story as part of her sales presentation to a customer. She should _____. a) use a borrowed story and act as if it is her personal story b) avoid using silent periods while narrating a story c) select a story that fits her own style d) avoid watching her audience for cues while narrating a story
c
The ultimate presentation room used by salespeople to offer a hands-on product demonstration to a prospect during a sales call in order to sell a product most successfully is known as a(n) _____. a) electronic trading room b) business training center c) executive briefing center d) security control room
c
To quantify a solution for retail buyers during a sales presentation, salespeople must _____. a) create a single, common basic value proposition for all market segments b) ensure the buyers evaluate proposals without analyzing the return on investment (ROI) c) prove turnover and profit margins d) frame a proposal without an executive summary
c
When selling value to resellers, salespeople estimate the resellers' inventory turnover. It is typically estimated by _____. a) multiplying the annual sales to the average retail price of the inventory on hand b) subtracting the annual sales from the average retail price of the inventory on hand c) dividing the annual sales by the average retail price of the inventory on hand d) adding the annual sales with the average retail price of the inventory on hand
c
Which of the following dramatically increases a buyer's understanding about what a salesperson talks during interactions? a) The method of altering communication process by avoiding the buyer's social style b) The method of encouraging the buyer's passive listening behavior c) The method of appealing to more than one sense of the buyer with multiple-sense appeals d) The method of using nonadaptive communication process
c
WoodFab Furniture buys 100 furniture units for $2,000 each and spends $80,000 in expenses for advertising, salesperson commission, and store rent. It sells them all at an average price of $5,000 per unit. To quantify a solution in a selling situation, calculate the profit margin that WoodFab Furniture makes. a) 13 percent b) 63 percent c) 44 percent d) 24 percent
c
A competitive bidding process whereby buyers lay out the requirements with objective criteria and sellers compete with one another and bid for the business is referred to as a(n) _____ ______, also called formal bidding and formal competitive bidding.
competitive tenders
A guideline for salespeople to use testimonials in their sales presentations is that they should _____. a) make false testimonials to help business b) hand out a testimonial to every prospect c) realize that prospects never discount any kind of testimonials d) use the testimonials only if they help address a buyer's needs or concerns
d
A method to quantify a solution in a selling situation in which a seller's product will meet a prospect's requirements and how that is different from competitors' offerings, especially the next-best alternative, is known as a(n) _____. a) automatic replenishment b) efficient consumer response c) compliment opening d) customer value proposition
d
David, a salesperson, plans to use stories while making a sales presentation to a customer. It is advisable for him to _____. a) refrain from using props while telling a story b) avoid using silent periods while narrating a story c) use a borrowed story and act as if it is his personal story d) ensure that he has a reason for telling a story
d
Identify a true statement about an executive summary included in the written proposals given by salespeople to prospective buyers. a) It is also known as a request for quote (RFQ). b) It should provide its readers with the total cost of a purchase plus the total savings. c) It is also known as a request for bid (RFB). d) It should provide its readers with a quick glance at the benefits of a purchase.
d
Jacob, a salesperson, sends a written proposal to his prospect's home office. He should _____. a) realize that a local decision maker has no role in getting the proposal accepted b) ignore the support of a local decision maker c) assume a local decision maker is the ultimate decision maker d) secure the support of a local decision maker
d
When offering product demonstrations to a prospect during a sales call, salespeople utilize rooms that are exclusively used to highlight a firm's products and capabilities. These rooms are referred to as _____. a) security control rooms b) business training centers c) electronic trading rooms d) executive briefing centers
d
When using a slide deck, such as Emaze, Prezi, PowerPoint, and Keynote, to give a sales presentation, salespeople should _____. a) ensure to use complete sentences in each slide for clarity b) avoid incorporating case examples in the deck c) include seven or eight words per line in a text visual d) ensure that the slides focus on solving the buyer's problem
d
Resellers and vendors use a computer-to-computer transmission of data from resellers to vendors and back. It is referred to as _____ _____ ______.
electronic data interchange
To quantify a solution in a selling situation, salespeople estimate the return a buyer would have earned from a different use of the same investment capital. This return is known as the ______ _______.
opportunity costs
To quantify a solution in a selling situation, salespeople estimate the length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings. This length of time is known as the ______ ______.
payback period
A document issued by a prospective buyer asking for a proposal from salespeople is called a(n) _______ _______.
request for proposal (RFP)
Statements written by satisfied users of a product or service are known as _____, which are used by salespeople to strengthen their sales presentations. a) testimonials b) brochures c) portfolios d) catalogs
a
CeraTech Inc., a reselling firm, buys 100 units of laptop computers. In its outlet, it stocks only 5 units for daily sales. As part of selling value to resellers, calculate the inventory turnover of CeraTech Inc. a) 15.5 times b) 25.5 times c) 10 times d) 20 times
d
