Deck 13: Direct Channels of Distribution: Personal Selling and Direct Marketing

Question 1

Which of the following is typically characterized by people recruiting other people,who recruit others,and so on,to sell the products?

A)mass marketing
B)horizontal marketing
C)multilevel marketing
D)customized marketing

Answer 1

C

Question 2

Which of the following involves reviewing information provided by the company and past sales reports about competition?

A)planning the sales call
B)filling out the call report
C)post-call analysis
D)communicating with the customer

Answer 2

A

Question 3

Which of the following statements is true regarding a sales organization?

A)A national sales manager usually heads the sales organization.
B)The largest part of the organization is made up of the regional sales managers.
C)Sales organizations are usually a part of marketing.
D)The different titles in a sales organization are as per the size of the geographic territory covered.

Answer 3

D

Question 4

Which of the following types of selling includes order taking,but also entails responsibilities such as making sure the stock is adequately displayed on shelves,setting up displays,providing demos,and other merchandising activities?

A)response selling
B)trade selling
C)missionary selling
D)technical selling

Question 5

Amway,Mary Kay,Tupperware,Avon,and many other product and service lines are sold using ________ or network marketing distribution systems.

A)multilevel
B)lateral
C)horizontal
D)linear

Question 6

________ is the largest multilevel seller direct to homes with 5.4 million sales representatives.

A)Amway
B)Avon
C)Tupperware
D)Mary Kay Cosmetics

Question 7

________ become very familiar with customers' operations and problems and are in an excellent position to satisfy customers' needs by helping them develop a strategy for the product in question.

A)Regional sales managers
B)District sales managers
C)Key account managers
D)Field sales representatives

Question 8

Which of the following statements is true regarding the market/market structure of sales organizations?

A)The organization is aligned by product categories.
B)The sales force sells all products marketed by a division to a single market.
C)The sales force sells the entire product line to customers in the segment.
D)The sales force sells a product or product line to all markets.

Question 9

The fact that a customer may be called on by several salespeople from the same company is a disadvantage of a:

A)product/product system.
B)market/market system.
C)product/market system.
D)market/customer system.

Question 10

Which of the following best describes the kind of sales organization structure that sells a product or product line to all markets?

A)product/product system
B)market/market system
C)product/market system
D)market/customer system

Question 11

Which of the following best describes the selling situation where the salesperson attempts to influence the decision-maker rather than the user or purchasing agent?

A)response selling
B)trade selling
C)missionary selling
D)technical selling

Question 12

Which of the following best describes the sales organization structure where the sales force sells all products marketed by a division to a single market?

A)product/product system
B)market/market system
C)product/market system
D)product/customer system

Question 13

The largest part of a sales organization is made up of:

A)field sales representatives.
B)national sales managers.
C)direct sales managers.
D)regional sales managers.

Question 14

Which of the following types of selling typically involves developing new customers and maintaining old ones by investing a considerable amount of time in understanding buyers' needs and wants?

A)response selling
B)creative selling
C)trade selling
D)missionary selling

Question 15

The Hewlett-Packard salespeople in the Imaging Systems Division must be knowledgeable about the latest developments in ultrasound and other medical imaging technologies.These salespeople typically carry out:

A)response selling.
B)trade selling.
C)missionary selling.
D)technical selling.

Question 16

Which of the following is a type of sales organization?

A)customer/market system
B)market/market system
C)customer/supplier system
D)product/customer system

Question 17

Which of the following is one of the typical problems associated with multilevel marketing?

A)Customers are reluctant to buy products which use multilevel marketing.
B)Multilevel marketing raises the cost of the product for the end customer.
C)The amount of sales that actually occur is far less than that promised.
D)Multilevel marketing is considered illegal in many countries.

Question 18

Identify the selling situations where the salesperson is typically an order taker and the customer initiates the sale and gives the order to the sales person.

A)response selling
B)trade selling
C)missionary selling
D)technical selling

Question 19

Identify the title that typically heads the sales organization for a midsize sales organization.

A)the president
B)the vice president of marketing or sales
C)the sales manager
D)the national account manager

Question 20

Identify the type of sales organization where the sales force sells the entire product line to customers in the segment.

A)product/customer system
B)market/market system
C)product/market system
D)product/product system

Question 21

The salesperson analyzes what happened during the sales call,talks with his or her supervisor about the call,and collects feedback about the call.These activities are carried out to:

A)plan the sales call.
B)fill out the call report.
C)accomplish post-call analysis.
D)communicate with the customer.

Question 22

________ is derived from rewards such as promotions,salary increases,and sales contests.

A)Intrinsic motivation
B)Intrinsic satisfaction
C)Extrinsic motivation
D)Extrinsic satisfaction

Question 23

The salesperson's ________ is a basic force behind how much effort he or she devotes to the job and how he or she responds to different kinds of incentives.

A)motivation
B)technical knowledge
C)honesty
D)marketing skills

Question 24

This activity involves a detailed examination of what happened during the call,"win--loss" reports on new business won or customers lost,any information picked up about competition such as their prices,and any other market intelligence.Identify this salesperson activity.

A)planning the sales call
B)filling out the call report
C)post-call analysis
D)communicating with the customer

Question 25

Which of the following leads to intrinsic motivation?

A)different aspects of the job
B)promotion
C)salary increase
D)sales contests

Question 26

Which of the following methods of determining the optimal sales force size is based on the ability to calculate the total amount of work necessary to serve the entire market?

A)breakdown method
B)workload method
C)marginal economic method
D)breakout method

Question 27

Using the breakdown method,calculate how many salespeople will be needed if a company expects to sell $100 million worth of goods in 1998 and the average sale per salesperson is $5 million.

A)5
B)10
C)20
D)50

Question 28

Which of the following decisions is one of the three major,interrelated decisions concerning sales territories?

A)the skills required by salespeople
B)the number of salespeople
C)the monetary reward to be given to salespeople
D)the products allocated to the salespeople

Question 29

The salesperson needs to understand both his or her superior's expectations and the kind of selling that is necessary to be successful.This knowledge is called:

A)role perception.
B)role reversal.
C)role acceptance.
D)role requirements.

Question 30

Which of the following methods of determining the optimal sales force size is more difficult to implement because it is difficult to know what the "marginal" salesperson can generate in sales?

A)marginal breakdown method
B)marginal workload method
C)marginal economic method
D)marginal breakout method

Question 31

Which of the following is one of the external factors that have a major effect on the performance of salespeople?

A)the quality of the sales management
B)the amount of financial resources a company puts into sales efforts
C)changes in customers' tastes and buying behavior
D)the quality of the products sold by the organizations

Question 32

Which of the following best describes a person's natural ability to sell?

A)skill to sell
B)attitude to sell
C)aptitude to sell
D)expertise to sell

Question 33

Which of the following best describes a group of present and potential customers assigned to a salesperson?

A)a sales territory
B)a market segment
C)a market layout
D)a focus group

Question 34

Which of the following is a method of determining the size of the sales force needed that assumes an average productivity level for each salesperson?

A)breakdown method
B)workload method
C)marginal economic method
D)breakout method

Question 35

Which of the following is one of the internal factors that have a major effect on the performance of salespeople?

A)changes in technology
B)the quality of the sales management
C)economic shifts
D)changes in customers' tastes and buying behavior

Question 36

Which of the following is likely to occur if a company has too many territories?

A)A salesperson would spend too much time traveling.
B)Salespeople would fight over the geographic boundaries.
C)It would increase a salesperson's income.
D)A salesperson will not get enough time for selling.

Question 37

A salesperson's performance is positively correlated with:

A)job satisfaction.
B)marital status.
C)educational background.
D)personality type.

Question 38

Which of the following methods of determining the optimal size of the sales force has a problem of assumption that the number of salespeople is determined by the expected sales level when,in fact,the opposite is also true? That is,in many cases sales could be increased with more salespeople.

A)breakdown method
B)workload method
C)marginal economic method
D)breakout method

Question 39

Research has found that ________ is related to both intrinsic and extrinsic motivation.

A)satisfaction
B)loyalty
C)personality
D)education background

Question 40

Which of the following is likely to occur if a company has an insufficient number of territories?

A)A salesperson would spend too much time traveling and not enough time selling.
B)It would lower a salesperson's income.
C)Salespeople would fight over the geographic boundaries.
D)Territories would overlap.

Question 41

Identify the type of quota where it is difficult for the salesperson to know where she or he stands in relation to the quota.

A)sales volume based quota
B)profit based quota
C)combination quota
D)customer based quota

Question 42

Which of the following is an appropriate control unit for nuclear power plants?

A)states
B)counties
C)countries
D)blocks

Question 43

For a consumer product sold door-to-door through a multilevel selling company like Mary Kay,________ would be an appropriate control unit.

A)countries
B)states
C)counties
D)blocks

Question 44

Which of the following types of compensation usually rewards the best performers?

A)straight commission
B)straight salary
C)trade allowance
D)market development fund

Question 45

A payment based directly on a sale or some other activity is called a:

A)commission.
B)perk.
C)spiff.
D)trade allowance.

Question 46

A(n)________ is the basic amount of money paid regularly to a salesperson.

A)commission
B)salary
C)incentive payment
D)trade allowance

Question 47

Which of the following types of sales quotas is most commonly used by sales organizations?

A)sales volume based quota
B)profit based quota
C)activity based quota
D)customer based quota

Question 48

Which of the following is a monetary award typically given for particularly outstanding sales performance?

A)a salary
B)an incentive payment
C)a trade allowance
D)a spiff

Question 49

Which of the following components of a compensation plan rewards experience and competence?

A)salary
B)commission
C)bonus
D)incentive payment

Question 50

Which of the following represents specific sales goals that salespeople are required to meet?

A)sales quotas
B)sales objectives
C)market objectives
D)market potential

Question 51

Which of the following types of compensation scheme should be used when management is more interested in long-term goals rather than simply selling as much volume as possible?

A)a straight commission
B)a straight salary
C)a trade allowance
D)an incentive payment

Question 52

Which of the following types of sales quotas encourage salespeople toward the products and services that are the most profitable to the company,as opposed to those that have the highest prices or are easiest to sell?

A)sales volume based quota
B)profit based quota
C)combination quota
D)market based quota

Question 53

Which of the following types of quotas is most likely to give extra incentives to sell higher priced items?

A)profit based quota
B)combination quota
C)sales volume based quota
D)market based quota

Question 54

Which of the following is the basic form of compensation?

A)salary plus commission
B)spiff
C)bonus
D)benefits

Question 55

Commission is typically used:

A)when the products have long selling cycles like several years.
B)when management wants to encourage activities like market research that do not generate revenue.
C)for new salespeople,who are unlikely to generate substantial sales in the short run.
D)to reward the best performance and motivate a high level of selling effort.

Question 56

Which of the following types of quotas takes into consideration various activities such as number of customers called on and number of demonstrations made?

A)profit based quota
B)combination quota
C)sales volume based quota
D)market based quota

Question 57

With reference to the account planning matrix,for an account,allocating moderate level of sales resources to maintain current advantage is the best strategy for the account when the:

A)account potential is high and the competitive advantage is strong.
B)account potential is low and the competitive advantage is strong.
C)account potential is high and the competitive advantage is weak.
D)account potential is low and the competitive advantage is weak.

Question 58

Activities such as competitor analysis and market research are valuable investments of time that do not generate revenue.Which of the following components of a compensation plan is best suitable for encouraging such activities?

A)salary
B)commission
C)bonus
D)incentive payment

Question 59

A company would most likely use this component when it is introducing new products and wants to entice its salespeople to achieve some short-term goal.Identify this compensation scheme.

A)sales contests
B)bonuses
C)straight salaries
D)trade allowances

Question 60

Which of the following components of a compensation plan adjusts for differences in territory potential?

A)salary
B)commission
C)bonus
D)incentive payment

Question 61

Which of the following direct marketing methods has the highest response rate?

A)direct mail
B)telemarketing
C)catalogue marketing
D)direct e-mail

Question 62

When direct e-mails sent only to those customers who had agreed in advance to receive such contact,such programs are known as ________ programs.

A)opt-in
B)unchecked
C)check-in
D)pre-checked

Question 63

The two types of output measures used to evaluate sales force performance are:

A)orders and accounts.
B)time efficiency and sales calls.
C)sales calls and expenses.
D)orders and expenses.

Question 64

It is common for companies to establish a separate organization to deal with major accounts.

Question 65

Which of the following statements is true regarding direct marketing?

A)Direct marketing is engaged to deliver a long-run response.
B)Direct marketing typically uses multichannel distribution system.
C)Generally,direct marketing excludes the sales force.
D)Direct e-mail has the highest response rate of any other direct marketing method.

Question 66

________ is a service which is typically associated with medical professionals and it brings experts and new findings directly to doctors through the presentation,which also allow the doctors to submit questions by voice or online chats.

A)Medconference
B)Skype
C)WebEx
D)GotoMeeting

Question 67

A method of distribution that gives the customer access to the firm's products and services without any other intermediaries is referred to as:

A)reverse engineering.
B)virtual selling.
C)direct marketing.
D)multichannel distribution.

Question 68

Missionary selling typically entails responsibilities such as making sure the stock is adequately displayed on shelves,setting up displays,providing demonstrations,and other activities sometimes called merchandising.

Question 69

Amway,Mary Kay,and Tupperware use a multilevel or network marketing distribution system.

Question 70

The reengineering of sales in the 1990s,especially the impact of sales force automation and the salesperson's educated use of technological tools in working with prospective customers in a highly efficient way is referred to as:

A)reverse engineering.
B)virtual selling.
C)direct marketing.
D)mass marketing.

Question 71

Which of the following is one of the input measures used for evaluating sales performance?

A)number of orders
B)size of orders
C)number of active accounts
D)time spent on nonselling activities

Question 72

Which of the following direct marketing methods has the highest ROI index?

A)direct mail
B)telemarketing
C)catalogue marketing
D)direct e-mail

Question 73

Creative selling involves developing new customers and maintaining old ones by investing a considerable amount of time in understanding buyers' needs and wants.

Question 74

Which of the following best describes the type of software that tracks different kinds of information,from what happened on the last sales call,to customers' birthdays,and other special events?

A)contact management software
B)word processing software
C)spreadsheet software
D)Web conferencing software

Question 75

Good selling skills can be taught.

Question 76

In response selling the salesperson attempts to influence the decision maker rather than the user or purchasing agent.

Question 77

In a mid-size sales organization,typically the vice president of marketing or sales heads the sales organization.

Question 78

The largest part of a sales organization is made up of the regional sales managers.

Question 79

When a sales organization is structured as a product/product system,the sales force sells all products marketed by a division to a single market.

Question 80

The salesperson's motivation is a basic force behind how much effort he or she devotes to the job and how he or she responds to different kinds of incentives.