Deck 9: Strengthening the Presentation

Question 1

Gift giving must be done with care and not violate the rules of the buyer's company.

Answer 1

True

Question 2

If buyers present at your demonstration have used your product before,then they should be discouraged from participating.

Answer 2

False

Question 3

Salespeople should hand out a testimonial to every prospect.

Answer 3

False

Question 4

A salesperson promoting a new brand of tomato ketchup gives free samples to his prospects at the end of his presentation.The salesperson appeals to more than one sense of the prospects in this case.

Question 5

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

Question 6

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

Question 7

During a product demonstration,a salesperson should always relate product features to a buyer's unique needs.

Question 8

Customer value proposition outlines the value of a particular customer to the selling firm.

Question 9

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

Question 10

A common practice during the sales presentation is to make a printed copy of presentation visuals for the members of the buying center.

Question 11

If a prospect has been to a competitor's product demonstration,then a salesperson should strategically include a demonstration of features the buyer liked about the competitor's product.

Question 12

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

Question 13

A salesperson can use catalogs and brochures during a presentation and then leave them with the buyer as a reminder of the issues covered.

Question 14

An RFP typically does not communicate details about budget.

Question 15

Complex charts and diagrams,even if they are helpful,should not be included in the handouts because these can confuse a prospect.

Question 16

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

Question 17

Quantifying a solution is unnecessary when a prospect is in a high risk situation.

Question 18

Handouts are important for foreign buyers,especially those who are nonnative English speakers.

Question 19

To increase the buyer's understanding of the product,sellers should use the multiple-sense appeals approach.

Question 20

When using video as a presentation tool,a salesperson should make sure the video is long and provides detailed product information.

Question 21

A salesperson can maximize the impact of his or her presentation by:

A) providing a lot of numerical data for a client to process and understand.
B) using tables instead of graphs, charts, and pie diagrams.
C) using current and accurate information.
D) designing the slides using a standard red and white template for all clients.
E) using a lot of transition effects, clip art, and sound clips.

Question 22

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

Question 23

Which of the following recommendations should be followed by salespeople when using stories in a sales presentation?

A) Use vivid word pictures in the stories.
B) Try to use stories from one's own experiences.
C) Make sure that there is 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.

Question 24

Buyers show a strong preference for investments with a longer payback period.

Question 25

During her presentation to a prospective customer,Lea informed him about the new wallboard's superiority.She also brought a sample so that the building contractor could see and feel the superiority of the product she was selling.Lea used a _____ to improve the buyer's understanding of her product.

A) multiple-sense appeal
B) standardized approach
C) collaborative approach
D) style flexing appeal
E) composite appeal

Question 26

Electronic data interchange (EDI)is a computer-to-computer transmission of data from resellers to vendors and back.

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) It is best to avoid recounting humorous experiences from one's own life.
C) It is recommended that salespeople practice telling jokes so that they are confident when using the jokes in a presentation.
D) Salespeople should not apologize before telling a joke.
E) All of the above.

Question 28

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

A) Vividly communicated features help buyers remember a seller's claims.
B) Salespeople should use humor to gain a prospect's attention during a presentation.
C) To strengthen impact, appeals should focus on only one of a prospect's five senses.
D) A buyer's attention span is affected by his or her personality.
E) Many buyers have difficulty forming clear images from a written or spoken word.

Question 29

Sales per square foot or sales per shelf foot is a measure of the investment resellers make in the purchase of their stock.

Question 30

A low inventory turnover rate for stores that carry a large inventory typically indicates that a product is selling really fast.

Question 31

In which of the following instances is the salesperson using the multiple-sense appeals approach?

A) Rhonda uses a canned presentation to deliver a standardized talk about her firm's sanitation systems.
B) William creates a customized sales presentation for a Webcasting session with an overseas client.
C) Jason leaves behind some brochures of his company's modular kitchens at the client's office for circulation among members of the buying center.
D) Norah uses a video to demonstrate the manner in which her company manufactures hospital goods that meet all quality control standards.
E) John makes a joke during his presentation when he notices that the main member of the buying center is visibly bored.

Question 32

A reseller does not necessarily want to increase inventory turnover by reducing the amount of inventory carried.

Question 33

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

Question 34

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

Question 35

Charts are particularly useful when:

A) presenting copies of recent ads.
B) communicating large amounts of information.
C) attempting to summarize key points of a sales presentation.
D) performing a what-if analysis using information supplied by a prospect during a presentation.
E) any of the above conditions occur.

Question 36

Sales asset management system is a computer-to-computer transmission of data from a reseller to a vendor and back.

Question 37

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) The punch line of the joke should be subtle so that the buyer is left to guess the idea.
C) Laughing over a good joke will help build rapport and put everyone at ease.
D) It is best to use jokes available on the Web because they are assured to make the buyer laugh.
E) All of the above.

Question 38

For her sales presentation,Myra wants to design a chart which shows how much faster wounds would 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) avoid the use of bullets as they arbitrarily differentiate the points in a presentation.
D) intermingle major and minor selling points.
E) none of the above.

Question 39

Which of the following is a guideline for the proper use of visual aids?

A) Selecting a few visual aids from a portfolio for each presentation
B) Looking at the visual aids throughout the presentation
C) Placing a portfolio with the visual aids between the salesperson and the customer
D) Using all the visuals in a portfolio for every presentation
E) Using detailed videos that outline a product's features in about half an hour

Question 40

A measure that retailers use to assess the return on their space investment is sales per square foot or sales per shelf foot.

Question 41

Sunil was illustrating the ease with which his company's newly designed lawnmower can be operated.However,during the presentation,the lawnmower stopped working.What is the most appropriate way for Sunil to handle this situation?

A) Sunil should blame the production division of his company for this failure.
B) Sunil should try to convince the buyer that the lawnmower rarely fails.
C) Sunil should use humor and accept that such mistakes do happen.
D) Sunil should gain the buyer's sympathy by describing how badly he needs to close the deal with the prospect.
E) Sunil should end the sales presentation and start afresh by taking another appointment.

Question 42

A written proposal should have an executive summary,a brief description of the problem and solution,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 43

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) A portfolio should not be placed, like a wall, between the salesperson and the buyer.
C) Items in a portfolio should be placed in an 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 44

Melanie,a salesperson for printers and scanners,is sending a proposal for printers to the home office of Helix Services in Cedartown.To convince the executives in Cedartown that the local Vinson Mountain branch office needs the printers and copiers she is selling,Melanie would most likely:

A) send just a product catalogue and let the buyer choose the final product.
B) skip the needs identification process since the needs of the home office and the local office are different.
C) secure the support of the Vinson Mountain branch manager.
D) include a clause stipulating that no competitive bidding will take place for this deal.
E) do all of the above.

Question 45

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 in public.
C) Testimonials should be used only if they help to address a buyer's needs or concerns.
D) The most effective testimonials are generic, which makes them usable with more types of customers.
E) None of the above.

Question 46

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

A) A salesperson can help a customer identify needs and specify product characteristics.
B) Some customers call RFPs proposed negotiation points (PNPs).
C) Buyers appreciate proposals that contain a large amount of material that require them to search for answers.
D) Delivery schedules are typically not included in the RFP.
E) All of the above.

Question 47

The salesperson for BM&M,a company manufacturing automated sawdust screens,was giving a presentation to a buying agent.During the presentation,the salesperson handed the buyer 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) demonstration
B) proposition
C) illustration
D) attestation
E) testimonial

Question 48

A product demonstration:

A) automatically leads to a sale.
B) allows prospects to check if the product works the way the salesperson claims.
C) occurs only after a prospect has been assured a significantly high return on investment for a product.
D) often distracts a prospect from the reason for a sales call.
E) none of the above.

Question 49

Proposals that a buyer receives as a result of issuing an RFP should include:

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

Question 50

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

A) If a prospect has seen a competitor's demonstration, it is advised to skip over parts of the seller's demonstration that would be redundant.
B) Allowing satisfied customers to assist a seller during a demonstration is dangerous and should be avoided.
C) Making a demonstration a separate, stand-alone activity is recommended
D) If a demonstration includes dead time, a salesperson should plan out how he or she will keep the buyers engaged during that period.
E) All of the above.

Question 51

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

A) Flame thrower
B) Funeral service
C) Carpet cleaner
D) Life insurance
E) None of the above

Question 52

A request for proposal (RFP):

A) is used when a customer has a firm idea of the product needed.
B) is often referred to as a payback period request.
C) is used when companies are looking at researching and designing new products.
D) is unlikely to discuss the cost and delivery schedules for a project.
E) is used when a salesperson has a firm idea of his or her company's product.

Question 53

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

A) avoid keeping any white space in the handout.
B) let the goal of the presentation determine what information should be included in the handout.
C) discuss the contents of the handout while circulating copies among the buyers.
D) eliminate the use of graphics in the handout.
E) ensure that the content in the handout and the presentation are identical.

Question 54

A customer value proposition will include:

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

Question 55

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

A) customer value proposition.
B) asset management statement.
C) customer relationship statement.
D) content analysis report.
E) credibility statement.

Question 56

Which of the following statements about the use of computers by salespeople 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 computers.
D) A computer can store only a small amount of information.
E) Information in computers is more difficult to retrieve than in larger computers.

Question 57

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

A) Practicing the demonstration
B) Planning for things that could possibly go wrong
C) Probing both during and after the demonstration
D) Keeping the demonstration simple, concise, and easily understandable
E) All of the above

Question 58

Which of the following is an appropriate situation for a sales representative to use a DVD during a sales presentation?

A) Richard wants to show the prospect testimonials from satisfied customers.
B) Frank wants his prospect to see the new television commercials that his company 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.
E) All of the above.

Question 59

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

A) Paper towels
B) Oil well drilling platforms
C) Stain removers
D) Automobile seat covers
E) Bottles and aluminum cans

Question 60

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

A) propositions.
B) demonstrations.
C) illustrations.
D) attestations.
E) testimonials.

Question 61

Goodman Woodworks has recently purchased a new saw costing $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 firm $1,200 each year that goes in wastage.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 62

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 63

The new deep-frying system installed in Roger's Deli is exactly like the old one except that it uses less electricity-$10 less electricity per day when compared to the old fryer.Assume that there are 21 workdays per month when the fryer is in use.Which of the following is the most accurate estimate of the payback period for the $1,500 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 64

Ramiro,a supermarket owner,decides to keep relatively high levels of inventory even though it costs him more.Ramiro most likely thinks that the cost of _____ is greater than the benefits of increasing his turnover rate.

A) collaterals
B) portfolios
C) stockouts
D) asset management systems
E) floor space

Question 65

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

A) failing to consider depreciation costs.
B) measuring opportunity costs.
C) discounting the cash flows.
D) calculating their gross income.
E) reducing the payback period.

Question 66

By investing in a John Deere PowerTech engine for $3,200,a 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 67

The payback period:

A) indicates how quickly the investment money will be returned in the form of cash inflows or savings.
B) reflects the return a buyer would have earned from a different use of the same investment capital.
C) fails to quantify the personal risk involved in any buying decision made by a purchasing agent.
D) indicates the total value of all future sales with a customer.
E) pertains solely to those investments that pose a small risk to the buyer.

Question 68

Ron Hurley purchased all the material he needed to make snow cones for $11,600 at the start of the summer.By the end of the season,he made a net profit of $6,000 by making and selling snow cones at a local amusement park.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 69

Which of the following is recommended as a good way to deal with jitters when making a sales presentation?

A) Realizing that professional salespeople do not get nervous
B) Apologizing to the buyer for being nervous before the presentation
C) Avoiding the use of visuals because they will distract the buyer during the presentation.
D) Avoiding the use of any stress management techniques before the presentation because it will alert the prospect of the nervousness
E) None of the above

Question 70

Jennifer wants to sell the Reiser Company billing department two top-of-the-line laser printers from her company at the cost of $8,000.To convince the buyers,she shows them that the new printers would print both the invoice form and the information about a particular sale on plain paper at the same time.This 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!" she said.She arrived at the figure of 300 percent savings by computing the:

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

Question 71

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

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

Question 72

Nathan and Carla are members of the buying center for Bonny Bakes who are attending a sales presentation for a new ad campaign.During the meeting,Nathan says,"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." Nathan is basing this objection on:

A) sunk costs.
B) variable costs.
C) opportunity costs.
D) fixed costs.
E) total costs.

Question 73

The _____ of an investment is the net value today of future cash inflows minus the investment.

A) net opportunity cost
B) return on investment
C) customer lifetime value
D) net present value
E) adjusted opportunity cost

Question 74

Sonya showed the office manager at Arunden Solutions how he could pay for the new copier she was selling by bringing more of Arunden's printing jobs in-house,and saving money that had previously been spent on local printers.Sonya 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 75

The buying center at Peoria Cabinetworks is not able to reach a consensus on a purchase decision.The production manager wants to spend $18,000 to buy a new laminating machine,while the operations manager wishes to 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 76

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

A) magnifying the benefit.
B) market analysis.
C) multiple-sense appeal.
D) value analysis.
E) content analysis.

Question 77

Identify a common method of applying this technique or quantifying the solution.

A) Cost-benefit analysis
B) Return on investment
C) Net present value
D) Payback period
E) All of the above

Question 78

The _____ is the net profits expected from a given investment,expressed as a percentage of the investment.

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

Question 79

Fiona,a manager of a retail store,wants to know whether she is maximizing her return on space investment.She will have to calculate the _____ for the area of the store.

A) sales per square foot
B) cost-benefit ratio
C) return on investment
D) QR correlation coefficient
E) sales per employee

Question 80

Tonya is a 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 to carry fewer items in the store and save money by increasing her:

A) opportunity costs.
B) value analysis.
C) stockouts.
D) inventory turnover rate.
E) multiple outlet profit performance.