Deck 13: Sales and Sales Management

Question 1

The straight commission compensation plan allows the "best" salespeople to maximize their earnings,thereby ensuring that employees remain loyal and will willingly undertake a variety of non-selling tasks.

Answer 1

False

Question 2

Strategic partner selling really requires the sales force to "surrender" its firm's best interest to the profitability of its customers.

Answer 2

False

Question 3

In consultative selling,the salesperson brings his/her specialized knowledge to a complex customer problem to create a unique solution.

Answer 3

True

Question 4

Most sales teams are organized according to the matrix approach.

Question 5

Combination plans,consisting of commission and/or bonus and a salary,are the most commonly used method of sales force compensation.

Question 6

While salespeople add value,most of them rely on unethical sales practices.

Question 7

Geographically structured sales forces are more likely to employ a line-and-staff organization.

Question 8

Needs satisfaction selling allows the sales force to "tailor" the sales presentation to satisfy the demands of individual consumers.

Question 9

Full-line selling,a disguised form of full-line forcing,is illegal.

Question 10

During the exploration stage of the relationship building process,salespeople should promise whatever the customer wants in order to get to the next stage.

Question 11

A primary role of salespeople is creating value.

Question 12

Since the sales force is primarily tasked with producing revenue,performance quotas are the only control tool that should be used.

Question 13

While telemarketing is often outsourced,no firm wants to outsource its sales force.

Question 14

Used properly,the sales force is a valuable source of market,customer,and competitor information.

Question 15

The expansion stage is vital to the creation of trust-the vital foundation for any successful,lasting relationship.

Question 16

The duty of managing financial resources is not vested in salespeople.

Question 17

Script-based or canned selling is an outmoded,seller-focused technique which is never effective.

Question 18

In recent years,customer satisfaction has assumed a major role in the salesperson's evaluation ratings.

Question 19

"Preferred supplier" is a buyer's term for a partner.

Question 20

As the title "salesperson" suggests,the only task assigned to the sales force is to sell,and to do so effectively.

Question 21

Though generally believed to be outdated and obsolete,_____ is popular in telemarketing and in selling MRO items and supplies.

A) Consultative selling
B) Needs satisfaction selling
C) Scripted selling
D) Strategic partner selling
E) Multilevel selling

Question 22

The assembly of standard materials handling parts into a customized system is an outcome of:

A) Strategic partner selling
B) Consultative selling
C) Needs satisfaction selling
D) Profit-maximization selling
E) Script-based selling

Question 23

Buyers are most likely to desire a strategic partnership with sellers:

A) When the product/service supplied is a key element in their ability to create value
B) When dealing with a lead supplier
C) When buying processes are virtually identical
D) When there is little product/service differentiation
E) When needs are the same across all customers

Question 24

Which of the following stages of the relationship building process is characterized by limited relationships and complacency?

A) Exploration
B) Commitment
C) Dissolution
D) Expansion
E) Awareness

Question 25

Sales occupies an important place in the marketing mix because of all of the following EXCEPT:

A) It is an activity that requires very less time and effort to be executed
B) It "manages" the personal relationship between the firm and its customers
C) It is a prime source of customer information
D) It manages customer satisfaction by coordinating corporate resources
E) It is a prime source of market information

Question 26

_____ features both parties sharing expertise/resources to create customized solutions and a commitment to joint planning for mutual benefit.

A) Script-based selling
B) Consultative selling
C) Profit-maximization selling
D) Strategic partner selling
E) Needs satisfaction selling

Question 27

This strategy,used in the expansion phase of relationship building,requires recognizing buying cycles and being present at the buying time.

A) Upselling
B) Generating repeat sales
C) Full-line selling
D) Cross selling
E) Commitment

Question 28

Which of the following is NOT to be done by the salesperson in order to begin a relationship properly?

A) Setting proper expectations
B) Monitoring order processing and delivery
C) Ensuring proper use of the product
D) Assisting in servicing the customer
E) Inflating buyer's misconceptions

Question 29

_____ works best when there is variance in needs across buyers and choices have to be made among products,as opposed to custom-made solutions.

A) Needs satisfaction selling
B) Script-based selling
C) Consultative selling
D) Profit maximization selling
E) Strategic partnering

Question 30

This type of selling involves using scripts or memorized sales pitches from which the salesperson does not deviate.

A) Canned selling
B) Needs satisfaction selling
C) Consultative selling
D) Strategic partnering
E) Multilevel checking

Question 31

Which of the following is NOT a responsibility primarily attributed to the sales force?

A) Deciding which accounts to work with and which to bypass
B) Determining specific account strategy
C) Implementing account strategy
D) Framing human resource policies
E) Ensuring customer satisfaction

Question 32

In _____,the seller brings specialized expertise into a complex problem solving situation in order to produce somewhat customized solutions.

A) Needs satisfaction selling
B) Consultative selling
C) Profit-maximization selling
D) Script-based selling
E) Strategic partnering

Question 33

Under this type of selling,the salesperson seeks to identify the buyer's needs and tailors the presentation to them.

A) Strategic partnering
B) Script-based selling
C) Needs satisfaction selling
D) Consultative selling
E) Profit maximization selling

Question 34

Joe has just bought a state-of-the-art home entertainment system from BOSE which is quite complicated to use.The store offers a customer service facility which will teach Joe how to operate the basic features of the system.BOSE representatives are beginning a good personal relationship with the customer by:

A) Setting proper expectations
B) Monitoring order processing
C) Ensuring the proper use of the product
D) Monitoring order delivery
E) Inflating unreasonable hopes in the customer

Question 35

The major goal of the expansion stage of the relationship building process is:

A) Building trust
B) Maximizing profit
C) Maximizing volume
D) Maximizing revenue
E) Blocking out competitors

Question 36

Salespeople:

A) Must be unethical to be successful
B) Are ethical off-the-job, but unethical at work
C) Chose sales as a career because it is manipulative
D) Must deal with others ethically to be successful
E) Will do anything to get a sale

Question 37

Sellers are more likely to desire strategic partnerships with buyers when:

A) Buying processes are virtually identical
B) All customers are relatively the same size
C) Buyers who are lead users provide status
D) Buyers who are lead users, represent a small amount of revenue
E) Needs are the same across all customers

Question 38

MaxCom provides internet services to households.When a new purchase possibility arises,they also try to convince the customer to buy their international calling cards and wireless modems.This best exemplifies:

A) Outselling
B) Upgrading
C) Upselling
D) Cross-line forcing
E) Full-line selling

Question 39

If customer needs are quite uniform among customers,the firm is most likely to opt for which of the following strategies?

A) Strategic partnerships
B) Script-based selling
C) Consultative selling
D) Needs satisfaction selling
E) Profit maximization

Question 40

_____ involves convincing the buyer to use a higher-quality or newer product.

A) Cross selling
B) Outselling
C) Generating sales
D) Upgrading
E) Top selling

Question 41

Under _____ selling,members of the sales organization from various levels deal directly with their counterparts in the buying organization.

A) Key account
B) Team
C) Multilevel
D) Matrix
E) Multi-organizational

Question 42

A(n)_____ value is the sum of those customers' lifetime values in a given market or market segment.

A) Upselling lifetime
B) Matrix lifetime
C) Sales lifetime
D) Market lifetime
E) Product lifetime

Question 43

_____ are most likely to employ a line-and-staff organization.

A) Product specialists
B) Geographically structured sales forces
C) Matrix sales team
D) Customer focused team
E) Multilevel sales teams

Question 44

This strategy refers to selling additional products but the products may not be related.

A) Full-line selling
B) Full-line forcing
C) Upselling
D) Upgrading
E) Cross selling

Question 45

Which of the following types of accounts are assigned to one of the firm's sales executives with no commissions paid to anyone?

A) Key accounts
B) House accounts
C) Strategic accounts
D) Global accounts
E) Harvested accounts

Question 46

Sierra Communications Inc.,designs,manufactures and markets IP-based networking and other products relating to the communications and information technology industry worldwide.When reorders are placed,they always encourage buyers to use higher-quality or newer products which they feel meet the needs of the customer better than the old product.This is an instance of:

A) Bait and switch
B) Upselling
C) Cross-selling
D) Full-line forcing
E) Full-line selling

Question 47

In this type of organization,authority and responsibility move up and down the organizational line,not across.

A) Line-and-staff
B) Horizontal
C) Line
D) Staff
E) Closed

Question 48

These salespeople call on accounts at the accounts' locations.

A) Preferred salespeople
B) Inside salespeople
C) Exclusive salespeople
D) Field salespeople
E) Matrix salespeople

Question 49

Once in the _____ phase,the salesperson must take on a much stronger coordinative role and build direct lines of communication between the two organizations.

A) Commitment
B) Exploration
C) Dissolution
D) Expansion
E) Awareness

Question 50

RoadKing Inc.,manufactures a line of tires and related products for worldwide distribution.Frazer's,a retailer,wishes to buy light truck replacement tires.The RoadKing rep tries to convince the buyer to buy tires as well as the related products.This method of selling is called:

A) Bait and switch
B) Upselling
C) Cross-selling
D) Full-line forcing
E) Full-line selling

Question 51

A _____ status generally means that a supplier is assured a large percentage of the buyer's business and first chance at any new business.

A) Preferred supplier
B) Committed supplier
C) Specified supplier
D) Contractual supplier
E) Forced supplier

Question 52

A _____ team often places each product specialist in an "as-needed" working relationship with three or more account managers.

A) Marketing
B) Multilevel
C) Sales
D) Matrix sales
E) Multi-product sales

Question 53

Secura Insurance Company Limited provides life insurance to individuals and groups in China.Company representatives also try to sell their portfolio management services and fund management programs along with life insurance.This case best exemplifies:

A) Bait and switch
B) Upselling
C) Cross-selling
D) Full-line forcing
E) Upgrading

Question 54

In this type of selling a group of salespeople handle a single account.

A) Field selling
B) Organizational selling
C) Strategic selling
D) Team selling
E) House selling

Question 55

Selling the entire line of associated products is called:

A) Commitment
B) Cross selling
C) Full-line selling
D) Full-line forcing
E) Upselling

Question 56

The _____ is a structure that assigns customer responsibility to individuals across the organization,in sales and in other areas.

A) Customer-focused team
B) Telemarketing sales team
C) Multi-level sales team
D) Key account sales team
E) Preferred supplier sales team

Question 57

_____ occurs when the company forces distributors to carry the full line in order to be able to sell the top seller.

A) Commitment
B) Cross selling
C) Full-line selling
D) Full-line forcing
E) Upselling

Question 58

Key accounts may have a salesperson assigned only to their account.This salesperson is called a(n):

A) House account manager
B) Account salesperson
C) Strategic account manager
D) Field salesperson
E) Outside salesperson

Question 59

Consultative and needs satisfaction strategies tend to work best in a _____,especially when specialized expertise is needed to satisfy customer requirements but there is too much expertise required to reside in any one person.

A) Matrix sales team
B) Telemarketing sales team
C) Multi-level sales team
D) Key account sales team
E) Preferred supplier sales team

Question 60

These salespeople sell at the company's location.

A) Preferred salespeople
B) Inside salespeople
C) Exclusive salespeople
D) Field salespeople
E) Matrix salespeople

Question 61

All of the following are true of sound compensation programs EXCEPT:

A) They base rewards on results and efforts
B) They provide equal rewards for equal performance
C) They provide competitive rewards
D) They are easy to understand and implement
E) They satisfy only the need of the company and not of the salesperson

Question 62

A(n)_____ is a loan paid to the salesperson to provide stable cash flow and is repaid from commission.

A) Cap
B) Quota
C) Incentive
D) Draw
E) Bonus

Question 63

Which of the following compensation plans best encourages customer service activities?

A) Straight commission
B) A draw plan
C) Straight salary
D) Commission rate
E) A bonus plan

Question 64

_____ are a useful control mechanism,as they represent a quantitative minimum level of acceptable performance for a specific time period.

A) Quotas
B) Incentives
C) Caps
D) Commissions
E) Rewards

Question 65

Explain the three middle stages of a strategic partnership?

Question 66

All of the following are advantages of outsourcing the sales force EXCEPT:

A) Lower costs
B) More control
C) Selling expenses are borne by the distributor
D) Less up-front investment needed
E) Quicker foray into the market through established relationships

Question 67

How is sales force productivity measured? How would you classify customer satisfaction and why might this factor account for as much as 40 percent of total compensation?

Question 68

Activity quotas:

A) Are useful in situations where the sales cycle is long and sales are few
B) Specify levels of performance
C) Can be specified only for demonstrations
D) Can be specified only for proposal presentation
E) Are useful where the sales cycle is short and sales abound

Question 69

The _____ plan works well for firms engaged in transactional sales strategies and markets.

A) Straight commission
B) Straight salary
C) Draw plan
D) Salary and commission
E) Bonus

Question 70

All of the activities that a salesperson must do to cover a territory can be best defined as a salesperson's:

A) Incentive
B) Position
C) Cap
D) Quota
E) Workload

Question 71

_____ can be used in conjunction with either salary or commission or combination plan and motivates salespeople to overachieve quotas.

A) Bonuses
B) Draws
C) Credits
D) Chits
E) Allowances

Question 72

Differentiate between full-line selling,full-line forcing,and cross selling?

Question 73

_____ are the most commonly used method of sales force compensation.

A) Straight salary plans
B) Commission plans
C) Combination plans
D) Margin only plans
E) Discount plans

Question 74

_____ is best used when a team of people are involved and individual results are difficult to measure.

A) Straight commission
B) Draw plan
C) Straight salary
D) Salary and commission
E) Bonus

Question 75

Which of the following compensation component is likely to be unethical if salespeople are unaware of it?

A) Draw
B) Commission
C) Salary
D) Bonus
E) Cap

Question 76

_____ specifies levels of performance such as revenue in a period of time.

A) Performance quotas
B) Activity quotas
C) Gross margin quotas
D) Income quotas
E) Active quotas

Question 77

Why do most firms use some form of combination compensation plans?

Question 78

Why the personal salesperson is uniquely qualified as an "intelligence agent"? What types of information can (should)he/she collect?

Question 79

Salespeople can earn _____ based on customer satisfaction ratings,total sales revenue,and revenue growth over the previous year.

A) Draws
B) Perks
C) Salary
D) Bonuses
E) Caps

Question 80

Activity and performance measures may be combined to create:

A) Output measures
B) Effort measures
C) Ethical measures
D) Productivity measures
E) Business measures