Sales and Selling Ch. 6-10

A typical company will lose approximately what percent of its customers every year?

15 to 20

Joe Girard's "Ferris wheel" concept assumes which of the following?

A certain number of customers will be lost every year by most companies.

According to the text, Ashley Pineda of the PulteGroup needs to do which of the following before meeting with customers?

Conduct research to determine each customer's specific needs

A habitual rebuy is characterized by perceived brand differences and high customer involvement.

False

A solution is a mutually shared answer to an unrecognized customer problem.

False

As a product moves through its life cycle, strategies relating to competition, promotion, pricing, and others must remain the same.

False

Joe Girard's "Ferris wheel" concept illustrates how many calls it takes to close a sale.

False

Networking is another word for prospecting.

False

Product knowledge is a lower ranked characteristic of salespeople who are able to build trust with customers.

False

Selling a product versus a solution requires greater effort.

False

The sales strategy used to sell a new and emerging product is similar to the strategy used to sell a mature, well-established product.

False

The three prescriptions for developing a customer strategy focus on (1) the customer's buying process, (2) why customers buy, and (3) negotiating the transaction.

False

The use of referrals has been used in a limited range of selling situations.

False

Which of the following is true regarding prospecting at trade shows?

It is easier to identify good prospects and close sales at a trade show.

Product positioning is largely a function of:

Product differentiation

Which of the following is not a prescription of developing a product strategy?

Project a professional image.

Which of the following statements is most likely true about products and product knowledge?

The extensive variety of available products in the market complicates the buying process.

Buyer resolution theory says that the buyer can only decide to buy after having answered a series of five questions about the purchase.

True

Customers have so much power in the buying process now because they have instant information from the Internet, immense choice, and real-time price comparisons.

True

One difference between organizational and consumer buyers is that organizational buyers' purchases are made for some purpose other than personal consumption.

True

Pricing is a critical factor in the sale of many products and services.

True

Qualifying is the process of identifying prospects who should be contacted.

True

Salespeople at the dealer level can play an important role in positioning an automobile for competitive advantage.

True

Salespeople who have knowledge of their competitor's strengths and weaknesses are better able to emphasize the benefits they offer and add value.

True

Successful sales presentations create value by translating product features into benefits that meet a specific need expressed by the customer.

True

The goal of prospecting is to build a prospect base made up of current and potential customers.

True

Transactional buyers are well aware of their needs and usually know a great deal about the products or services they intend to purchase.

True

Which one of the following is a guideline for effective networking?

When you meet someone, tell the person what you do.

To increase the odds that customers will give referrals, a salesperson should most likely:

build value into the sales process

Which buyer behavior theory focuses the salesperson's attention on five important factors that the customer is likely to consider before making a purchase?

buyer resolution theory

The sales director of a medium-sized company selling chemicals to the lumber industry has analyzed sales and found serious problems with the closing rate of sales representatives relative to the number of prospects. The sales director commissioned a research company to analyze the numbers in the CRM system and conduct interviews with prospects who became customers as well as with prospects who did not buy from the company. He also hired a sales training consultant to analyze the sales representatives and the training they receive.The training consultant finds that the sales representatives do not have a strong product strategy. Without a proper product strategy, sales representatives are most likely unable to:

choose the correct products to sell to the customer

In which value creation selling approach do salespeople focus a great deal of attention on customers' needs awareness?

consultive selling

The process of differentiation does which of the following?

creates barriers that make it difficult for a competitor to get customers to switch based on price alone

Your ability to separate yourself and your product from that of your competitors is referred to as:

differentiation

The term social network most likely refers to a salesperson's:

direct and indirect contacts

Salespeople should most likely think of needs in terms of:

each specific customer

Which term refers to a salesperson's brief, cold call opener that summarizes the salesperson's product and company?

elevator presentation

Which type of consumer buying situation requires very little consumer involvement and brand differences are usually insignificant?

habitual buying decision

Most written proposals include all of the following components EXCEPT a(n):

hypothesis

Customized service agreements add value to a sale by:

incorporating the customer's special priorities, feelings, and needs

A major barrier to prospecting is time. Therefore, salespeople should:

integrate prospecting activities with regular selling duties

The positioning process:

must be continually modified to match customer wants and needs

The three major types of organizational buying situations are:

new task buy, straight rebuy, and modified rebuy

The written proposal is best described as a(n):

plan of action based on facts and assumptions

Creating a value proposition is a way of:

positioning your product in the marketplace

When a salesperson asks a customer to prepare a note or letter of introduction that can be delivered to the potential customer, this person is using which prospecting method?

referral

Which influence on buying decisions is defined as a set of characteristics and social behaviors based on the expectations of others?

role

A key concept in networking is to:

select who you will follow up with based on their usefulness

Part of the customer strategy is understanding how a given customer plans to make a purchase, because:

the selling process should be aligned with the buying process to make the sale go smoothly

The concept "Treat different customers differently" is based on the idea that:

understanding a customer's needs and motivations as an individual allows you to sell them the correct solution