Deck 10: Strengthening the Presentation

Question 1

Unless you can get the buyer actively involved in the communication process, the buyer's attention will probably turn to other topics.

Answer 1

True

Question 2

ECR, AR, QR, and JIT are acronyms referring to systems designed to maximize inventory holdings.

Answer 2

False

Question 3

The recommended approach for showing trends and relationships is a series of tables.

Answer 3

False

Question 4

To make the buying process more competitive, firms that issue RFPs usually require sellers to avoid direct reference to those documents when submitting a proposition in response.

Question 5

Murphy's Law is a real part of sales demonstrations.

Question 6

Often the simplest method of quantifying the solution is to list the costs and benefits to the buyer.

Question 7

One of the most effective methods of appealing to the buyer's senses is through product demonstrations or performance tests.

Question 8

The longer the payback period, the better a buyer likes it.

Question 9

Inventory turnover is measured by dividing the average retail price of the inventory on hand by the annual sales.

Question 10

On average people immediately forget 50 percent of what they hear.

Question 11

Value analysis is another name for quantifying the source of the problem.

Question 12

Since a buyer's RFP contains specifications for the desired product and delivery schedules, it makes sense for a salesperson to be involved in the specifying process if at all possible.

Question 13

Payback period can be a good measure of personal risk for a buyer.

Question 14

To strengthen impact, sellers should make multi-sense appeals.

Question 15

Few people at the buying firm will read the executive summary of a salesperson's written proposal.

Question 16

If a prospect does not buy, it is inappropriate to leave a gift with that individual.

Question 17

Net present value analysis allows a buyer to compare the net value of future cash inflows to the initial investment.

Question 18

Quantifying the solution is most important when the prospect is in a high risk situation.

Question 19

Once a salesperson has found an effective method of presentation, he or she should use it regularly with all prospects.

Question 20

After Innam used a particular visual in her presentation, she would be smart to remove it from sight unless the prospect asks her not to do so.

Question 21

According to the text, the manner in which the salesperson handles the product can be used to communicate:

A) respect for the prospect
B) his or her degree of comfort with the product
C) how well the product has been accepted by other buyers
D) that the product is valuable
E) the contents of the salesperson's portfolio

Question 22

For which of the following products would samples be most effective as a sales aid?

A) flame thrower
B) funeral service
C) long distance telephone service
D) life insurance
E) none of the above

Question 23

For which of the following products would samples be least effective as a sales aid?

A) paper towels
B) oil well drilling platform
C) stain-removers
D) automobile seat covers
E) bottles and aluminum cans

Question 24

In making her presentation to the building contractor, Lea not only told him about the new wallboard's superiority, she let him see and feel a sample. Lea is using a:

A) multiple-sense appeal
B) triple whammy
C) collaborative approach
D) mixed media approach
E) composite appeal

Question 25

Which of the following items could be used to attract and keep a prospect's attention during a sales presentation for a company that manufactures industrial laundry equipment?

A) a catalog that lists prices and specifications of different models of machines sold by the company
B) test results showing how little water is wasted by the company's water reclamation system
C) a brochure that compares the company's water reclamation to an ATM machine
D) maps indicating all the countries where the company sells its products
E) all of the above

Question 26

Which of the following is suggested by the text as a guideline for the proper use of visual aids?

A) Decide ahead of time which visuals you will leave with the buyer and have copies already made when you arrive.
B) Check your visuals carefully for errors.
C) Always relate features to benefits for the buyer.
D) Mark your visuals so you can find them easily.
E) All of the above

Question 27

Which of the following statements about the use of humor in sales presentations is true?

A) Humor should never be used in sales presentations.
B) Be sure to use humor that is relevant to the group to which you are selling--such as tax humor for accountants.
C) Do not practice telling jokes because rehearsed jokes are boring.
D) Don't apologize before telling a joke.
E) All of the above statements about the use of humor in sales presentations are true.

Question 28

Why should a salesperson use visual aids and get a prospect actively involved in the communication process?

A) to avoid repetitive customization
B) to create a sustainable competitive advantage
C) to get and keep the prospect's attention
D) to prevent any distractions from interrupting the presentation
E) to do any or all of the above

Question 29

Which of the following statements about the buyer's attention and understanding is FALSE?

A) Some product benefits cannot be explained adequately in non-technical language.
B) If the salesperson does not successfully involve the prospect in the presentation, his or her attention will wander.
C) To strengthen impact, appeals should be focus on only one of the prospect's five senses.
D) The buyer's attention span is affected by his or her personality.
E) Many buyers have difficulty forming clear images from the written or spoken word.

Question 30

For which of the following products would a multiple-sense approach be effective for ensuring the buyer's understanding of the product?

A) products for cleaning public restrooms
B) fresh produce
C) toilet paper
D) low-fat bacon
E) any or all of the above

Question 31

One of the best ways to deal with jitters associated with a sales presentation is to minimize your practice and preparation in order to reduce stress.

Question 32

For her sales presentation, Myra wants to design a chart which shows how much faster chronic wounds heal when protected with SoloSite, a water-based ointment. To create the most effective chart, she should:

A) avoid the use of pie charts or other graphical representation
B) use complete sentences so the buyer does not have to wonder what words are missing
C) use an occasional misspelling to ask as a check to see if the buyer is paying attention
D) intermingle major and minor selling points
E) do none of the above

Question 33

A new restaurant equipment salesperson who is trying to make the most effective use of her visual aids should NOT:

A) arrange her visuals in a logical order
B) vary the art styles, layouts, and scales for her collection of charts and figures to keep them interesting
C) make sure the buyer can see the visuals
D) maintain proper control of the visuals, otherwise the prospect may start thumbing through your catalog or looking ahead at other visuals before you finish the current visual
E) let the visual interfere with her interaction with the buyer

Question 34

One tool salespeople can use to strengthen a sales presentation and to make it more interesting is to use stories. Which of the following recommendations should be followed when using stories in a sales presentation?

A) Use vivid word pictures in your stories.
B) Try to use stories from your own experiences.
C) Make sure you have a reason for telling the story.
D) Use the "hook" of the story to tie back directly into the presentation.
E) All of the above are recommended actions when using a story to strengthen a sales presentation.

Question 35

Why would a salesperson for Visa stain-resistant fabric give his prospective client a shirt made of the Visa fabric?

A) The shirt is meant to be a bribe.
B) Prospects expect gifts before they will consider a salesperson's product.
C) The shirt is meant to gain and keep the buyer's interest in the fabric.
D) The gift of the shirt is an unethical act but not an illegal one.
E) The salesperson would not give the prospect a shirt because it would be both unethical and illegal.

Question 36

Which of the following statements about the use of humor in sales presentations is true?

A) If used at all, humor should always be derived from the buyer's personal experiences.
B) Let the prospect figure out where the humor is; keep a straight face when telling a joke.
C) Remember the time spent laughing over a good joke will put everyone more at ease.
D) Sell the joke like you sell your product and your company.
E) All of the above statements about the use of humor in sales presentations are true.

Question 37

The salesperson for the BM&M automated sawdust screen walked into the pallet manufacturer's buying agent's office and handed him a letter from a pallet manufacturer in Georgia. The letter praised the efficiency of the BM&M screen and was especially complementary of the fact that the screen only has six moving parts. This letter is an example of a(n):

A) affirmation
B) fabrication
C) illustration
D) attestation
E) testimonial

Question 38

Charts are particularly useful when:

A) copies of recent ads are necessary
B) communicating large amounts of information
C) you need to show that other buyers have been satisfied with your good or service
D) the salesperson needs to perform what-if analyses using information supplied by the prospect during the presentation
E) any of the above conditions occur

Question 39

A salesperson who wants to make effective use of visual aids should do all of the following EXCEPT:

A) use current ads
B) use bullets to emphasize key points
C) label each visual with a title
D) don't overload the buyer with numbers
E) hand every customer any and all available testimonials

Question 40

Which of the following is a communication tool that can be used to strengthen a salesperson's presentation?

A) testimonial
B) the product itself
C) portfolio
D) advertisements
E) all of the above

Question 41

A salesperson who wants to make effective use of handouts during his or her sales presentation should:

A) avoid having any white space
B) let the goal of the presentation determine what information should be included in the handout
C) remember information overload is better than information underload
D) use text rather than graphics whenever possible
E) use homemade-appearing handouts to avoid appearing too sophisticated

Question 42

Which of the following situations is an appropriate situation for a sales representative to use a VCR?

A) Richard must train the salespeople at the retail store that bought his product how to sell it.
B) Frank wants his prospect to see the new television commercials that will begin airing next month.
C) Cleo desires to show this prospect how others are using the product she sells.
D) Allison wants to present how quality is built into her product at the factory, but the factory is on the other side of the world.
E) All of the above describe appropriate situations for a sales representative to use a VCR.

Question 43

The use of laptop computers by salespeople in their demonstrations has increased dramatically in recent years. Which of the following statements about their use is true?

A) Salespeople use collateral management systems to archive catalog, and retrieve digital media and text.
B) Computers are generally not able to offer excellent visuals and graphics.
C) It is difficult to perform what-if analyses on laptop computers.
D) A laptop computer can store only a small amount of information.
E) Information in laptop computers is more difficult to retrieve than in larger computers.

Question 44

"Mr. Smock, here are copies of letters from three owners of flower shops in the tri-cities area who consistently buy cut flowers for their shops from our company. As you can see, they are extremely pleased with our quick delivery and product freshness." The letters this sales rep is showing Mr. Smock are examples of:

A) affirmations
B) fabrications
C) illustrations
D) attestations
E) testimonials

Question 45

Since Melanie's proposal will be sent to the home office in Cedartown to convince executives that the local Vinson Mountain branch office needs the vacuum molding machine she is selling, Melanie would be smart to:

A) include her resume' so people in the Cedartown office will be knowledgeable about her
B) enclose a self-addressed, stamped envelope for a reply
C) secure the support of the Vinson Mountain branch manager
D) have the documents delivered by an overnight express company
E) do all of the above

Question 46

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

A) If your prospect has seen a competitor's demonstration, skip over parts of your demonstration that would be redundant.
B) Allowing previous buyers of your product to assist you in your demonstration is dangerous and should be avoided.
C) Make your demonstration a separate, stand-alone activity.
D) If the demonstration includes dead time, plan what you will do during the lull.
E) All of the above is good advice when using demonstrations as a part of the sales presentation.

Question 47

Which of the following statements concerning RFPs (request for proposal) is true?

A) It may prove to be advantageous to the salesperson to help the customer set specifications.
B) Some customers call RFPs proposed negotiation points (PNPs).
C) Buyers appreciate proposals that contain stacks of materials that require the buyer to search for answers he or she needs.
D) The original RFP may specify the seller's delivery expectations.
E) All of the above statements about RFPs are true.

Question 48

Which of the following statements about testimonials is true?

A) Progressive sales organizations rarely use testimonials.
B) To be valid, testimonials must be sworn before a notary public.
C) Testimonials are particularly useful when selling intangibles and relatively new and unusual products.
D) The most effective testimonials are generic, which makes them usable with more types of customers.
E) None of the above statements about testimonials is true.

Question 49

_____ is any system used to archive catalog, and retrieve digital media and text.

A) Sales asset management system
B) Marketing information system (MIS)
C) Database marketing
D) Database selling aid (DSA)
E) Computer marketing assistant (CMA)

Question 50

Jorge is developing a value proposition for a prospect. He will include:

A) a quantified projection of reasonable market share costs
B) features/benefits tailored to the prospect and proof the benefits exist
C) visual presenters of sales asset management solutions
D) a prototype synthesis based on generally accepted accounting procedures.
E) all of the above

Question 51

Sunil was illustrating the ease with which the gear shift lever on his company's newly designed lawn mower can be repaired when the bolt holding the lever to the body of the mower would not budge even after a good dosage of lubricant. What is the most appropriate way for Sunil to handle this situation?

A) Find himself a more reliable company to work for.
B) Immediately call his company's vice-president of production and request an explanation.
C) Take a humorous tone and realize mistakes do happen.
D) Write the buyer a personal letter of apology.
E) Recognize the sale is lost.

Question 52

A written proposal, according to the text, should have three parts, an executive summary, a budget, and:

A) a description of the current situation relative to the proposed solution
B) a collection of testimonials from satisfied customers
C) a statement of support from the buying committee
D) photographs of the selling company's officers and buildings
E) the selling firm's pro-forma balance sheet

Question 53

Which of the following is NOT one of the tips for effectively using computers in sales presentations?

A) Be prepared by having backup batteries, adapters, disks, or CDs.
B) Make sure both you and the customer can comfortably view the output.
C) To avoid embarrassing downtime when systems crash, have your technical support team on call when you are making presentations
D) Really get to know your software.
E) Make sure your audience has ample opportunity to ask questions.

Question 54

A product demonstration:

A) automatically leads to a sale
B) allows prospects to prove to themselves the product works the way the salesperson claims
C) often wastes time the salesperson should be talking about the product
D) often distracts a prospect from the reason for the sales call
E) does none of the above

Question 55

Purchasers who issue RFPs like to see the proposal that responds to the RFP include:

A) a positioning map
B) a postscript
C) an index
D) an executive summary
E) all of the above

Question 56

Which of the following statements about portfolios is true?

A) Because of cultural and language differences, portfolios should be avoided in international selling situations.
B) Remember to look at the buyer, not the visual.
C) Items in the portfolio should be placed in it in the order in which they will be used to make sure none is omitted.
D) Only insurance salespeople place their portfolios in a binder.
E) Every portfolio should include the tangible product itself.

Question 57

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

A) Practice.
B) Plan for things to go wrong.
C) Probe both during and after the demonstration.
D) Keep the demonstration simple, concise, and easily understood.
E) Do all of the above.

Question 58

A request for proposal (RFP):

A) is used when the customer has a firm idea of the product needed
B) is often referred to as a payback period request
C) means that the salesperson will not need to use the needs identification process
D) should be prepared using the finest paper, printing, and ink available as well as the skill of your most adept marketers
E) is used when the salesperson has a firm idea of the product needed

Question 59

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

A) value proposition
B) stack the numbers analysis
C) turkey trot proposition
D) prototype synthesis
E) benefit to yield proposal

Question 60

The best writer of a testimonial is:

A) someone above reproach and respected by his or her peers
B) a friend of the salesperson
C) unknown to the prospect
D) someone who no longer uses the product
E) the chief executive officer (CEO) of the selling firm

Question 61

The _____ is the return a buyer would have earned from a different use of the same investment capital.

A) sunk cost
B) net present value
C) opportunity cost
D) gross revenue
E) net revenue

Question 62

The Peoria Cabinetworks can either spend $18,000 to buy a new laminating machine or use that money to build an extension on its loading dock. The salesperson selling the laminating machine must realize that buyers should look at all _____ before making any major investments.

A) sunk costs
B) net present values
C) opportunity costs
D) gross revenues
E) net revenues

Question 63

By investing $36,000 in an electronic gate for the employee parking lot, Risco USA was able to save $90,000 on salaries and benefits previously paid to security guards who monitored the parking lot entrance. The return on investment (ROI) is _____ percent.

A) 40
B) 60
C) 66.67
D) 150
E) 250

Question 64

When a sales rep divides the net profits (or savings) produced for a client by the amount of money the client is investing, the resulting figure is called the:

A) net revenue
B) return on investment
C) net present value
D) payback percentage
E) opportunity cost

Question 65

Ron Hurley purchased everything he needed to make sno-cones for $11,600. Last summer he made a net profit of $6,000 making and selling sno-cones at a local lake. Calculate Hurley's return on investment (ROI).

A) 11.6 percent
B) 17 percent
C) 19.3 percent
D) 51.7 percent
E) 60 percent

Question 66

"Carla, if instead of spending the $20,000 you're asking us to put into this new advertising idea, we put that money in a new packaging machine to replace the one in the Cartersville plant, we'll save $3,500 annually in maintenance and utility costs." The buyer is basing this objection on:

A) sunk costs
B) net present value
C) opportunity costs
D) payback period
E) all of the above

Question 67

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

A) 1.6 percent
B) 6.4 percent
C) 15.6 percent
D) 21.3 percent
E) 32 percent

Question 68

The _____ of an investment is the value of future income (discounted at the firm's cost of capital) minus the up-front investment costs.

A) net opportunity cost
B) adjusted payback period
C) discounted payback period
D) net present value
E) adjusted opportunity cost

Question 69

Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset by added value; this is called:

A) magnifying the benefit
B) stacking the numbers
C) stuffing the turkey
D) value analysis
E) building the benefit

Question 70

Tonya is manager of a retail clothing store. A sales rep calling on her offers overnight delivery on all re-orders at no extra shipping cost. This will allow Tonya carry fewer items in the store and save money by increasing her:

A) collateral cost-benefit ratio
B) value analysis
C) portfolio rate of return
D) inventory turnover rate
E) multiple outlet profit performance

Question 71

Kenya showed the office manager at Arunden Wholesale Nursery how he could pay for the new copier she was suggesting by bringing more of Arunden's printing jobs in-house and saving money that had previously been spent with local printers. Kenya is using _____ to quantify the solution.

A) cost benefit analysis
B) return on investment
C) net present value
D) payback period
E) opportunity cost

Question 72

The deep-frying system for the supermarket deli is exactly like the old one except that it uses less electricity--$10 less electricity per day than the old fryer. Assume there are 21 workdays per month when the fryer is in use. Using the formula in the text, what is the payback period for the $1500 investment in the new fryer?

A) a little more than seven months
B) a little less than six years
C) a little over 9.5 years
D) 12.5 years
E) none of the above

Question 73

Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset by added value. A method of applying this technique, called quantifying the solution, is:

A) cost benefit comparison
B) return on investment
C) net present value
D) payback period
E) all of the above

Question 74

The length of time it takes for an investment's cash outflow to be returned in the form of cash inflows or savings is the:

A) net capital refill
B) return on investment
C) net present value
D) payback period
E) opportunity cost return

Question 75

Jennifer showed the Reiser Company billing department that spending $8,000 to buy two top-of-the-line laser printers that would print both the invoice "form" and the information about a particular sale on plain paper at the same time would save the company $32,000 because preprinted forms would no longer have to be purchased and filled in using a typewriter. "That's a savings of 300 percent!" he said. She could have called the 300 percent a(n):

A) cost benefit analysis
B) return on investment
C) net present value
D) payback percentage
E) opportunity cost

Question 76

Ramiro decides to keep relatively high levels of inventory even though it costs him more. Most likely Ramiro thinks the cost of _______________ are greater than the benefits of increasing his turnover rate.

A) collateral
B) portfolios
C) stockouts
D) revenue enhancements
E) handouts

Question 77

The payback period:

A) indicates how quickly the investment money will be returned in the form of cash inflows or savings
B) can be determined by using depreciation values
C) is in no way a determination of personal risk involved in any buying decision made by a purchasing agent
D) requires that the buyer know the net present value of his or her investment in order to calculate
E) is accurately described by all of the above

Question 78

Emily is trying to convince her customer that she can help him improve his inventory turnover rate. She will likely describe her company's __________ system.

A) ECR
B) QR
C) AR
D) JIT
E) any of the above

Question 79

The cost of the new saw to cut wood veneers is $14,000. Because of a revolutionary new cutting blade, the new saw will not cause the veneer to splinter and will make clean cuts. This clean cut will save the company $1,200 each year. Using the formula in the text, calculate the payback period for the $14,000 investment.

A) 1.67 years
B) 8.6 years
C) 11.67 years
D) 86 years
E) cannot be calculated from the information provided

Question 80

When the purchasing team at PDQ Plastics Inc. recalculates the value of future income to be earned by a new molding machine into today's dollars, they are:

A) quantifying qualitative information
B) measuring opportunity costs
C) discounting the cash flows
D) calculating ROI
E) reducing the payback period