Deck 16: Personal Selling and Sales Promotion

Question 1

Which of the following is true with regard to personal selling?

A) Personal selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships.
B) Personal selling involves making personal requests to potential buyers to enter into short-term business relationships with firms.
C) Personal selling distances the buyer from the seller and does not focus on building enduring relationships.
D) An outside sales force is not involved in personal selling.
E) Personal selling is a relatively new profession.

Answer 1

A

Question 2

________ is defined as analyzing, planning, implementing, and controlling sales force activities.

A) Benchmarking
B) Sales force management
C) Business intelligence
D) Sales force automation
E) Sampling

Answer 2

B

Question 3

In the ________, separate sales forces are set up for different industries.

A) territorial sales force structure
B) digital marketing system
C) product sales force structure
D) geographical operations system
E) customer sales force structure

Answer 3

E

Question 4

Which of the following is true about the customer sales force structure?

A) Customer sales force structure is a combination of territorial sales force structure and product sales force structure.
B) Each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory.
C) Salespersons specialize in only a particular product line as the company produces numerous and complex products.
D) Companies using customer sales force structure tend to ignore the importance of long-term relationship building with customers.
E) Separate sales forces are set up for different industries, serving current customers versus finding new ones, and serving major accounts versus regular accounts.

Question 5

In the ________, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that region.

A) territorial sales force structure
B) digital marketing system
C) product sales force structure
D) geographical operations system
E) customer sales force structure

Question 6

At Price & Wallace Inc., a pharmaceuticals company, members of the sales force and marketing department tend to have disagreements when things go wrong with a customer. The marketers blame the salespeople for poorly executing their strategies, while the salespeople blame the marketers for being out of touch with customers. Which of the following steps should the higher management at Price & Wallace take to help bring the sales and marketing functions closer together?

A) establish a customer sales force structure and make sure that sales quotas are easily achievable
B) establish a complex sales force structure
C) emphasize traditional methods of selling
D) adopt a sales force automation system and implement team selling
E) appoint a high-level marketing executive to oversee both marketing and sales

Question 7

Robin works in a manufacturing company in Ohio. She sells products and handles customer requests via the company's online live chat feature. In her company, Robin is most likely a part of the ________.

A) outside sales force
B) inside sales force
C) product designing team
D) operations management team
E) executive management

Question 8

A(n) ________ is an individual who represents a company to customers by prospecting, communicating, selling, servicing, information gathering, and/or relationship building.

A) salesperson
B) trainer
C) auditor
D) manager
E) human resource personnel

Question 9

Which of the following would most likely improve coordination between marketing and sales?

A) Salespeople should participate in marketing planning sessions by sharing firsthand customer knowledge.
B) Salespeople should directly participate in the development of new products.
C) The sales force should strategize promotional strategies and be the primary decision makers about marketing.
D) Marketing managers should field test new promotion strategies before the sales team.
E) The marketing and the sales departments should conduct annual job rotations.

Question 10

Kelly works as a sales representative at Ginner Machine Works. She uses the phone and the Internet to identify prospects and make sales. Kelly calls customers and explains the products offered by Ginner and the advantages of using them. If requested, she also mails the customer product information brochures. Which of the following is most likely Kelly involved in?

A) benchmarking
B) product development
C) telemarketing
D) innovation
E) performance appraisal

Question 11

All of the following are disadvantages of team selling EXCEPT ________.

A) selling teams can be confusing and overwhelming for customers
B) salespeople who are used to having customers all to themselves may have trouble learning to work with and trust others on a team
C) team selling reduces the overall efficiency of the selling process
D) individual contributions and compensations can be difficult to assess in team selling
E) team selling discourages individual contributors because the team receives credit for good performance

Question 12

Which of the following is true about the territorial sales force structure?

A) The territorial sales force structure does not define each salesperson's job clearly.
B) Salespeople specialize in selling only a small portion of the company's products.
C) In a territorial sales force structure, separate sales forces are set up for different industries.
D) Travel expenses are relatively small as each salesperson travels within a limited geographic area.
E) In a territorial sales force structure, separate sales forces are often established to handle a single, large account in every territory.

Question 13

Which of the following is true about the product sales force structure?

A) A product sales force structure is most appropriate for a company that manufactures a small number of simple products.
B) In a product sales force structure, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory.
C) In a product sales force structure, salespersons specialize in only a particular product line as the company produces numerous and complex products.
D) In a product sales force structure, a single salesperson can become an expert in all product categories.
E) In a product sales force structure, specialization is highly discouraged.

Question 14

If a company ________, it should adopt a product sales force structure, in which the sales force specializes along product lines.

A) specializes in a single product
B) manufactures a small number of simple products
C) maintains that product specialization is counter productive
D) has numerous and complex products
E) lacks salespeople with superior technical know-how

Question 15

Which of the following best explains why companies are adopting the team selling approach to service large, complex accounts?

A) Products have become too complicated for one salesperson to handle a large company's needs.
B) Customers prefer dealing with many salespeople rather than one sales representative.
C) Job rotation, an integral part of team selling, keeps workers motivated and boosts their morale.
D) Team selling facilitates the evaluation of individual contributions.
E) With team selling, companies are not required to train the outside sales force any longer.

Question 16

Which of the following is true about the sales force of a company?

A) Salespeople represent customers to the company and manage the buyer-seller relationship.
B) Salespeople represent workers' interests to upper management.
C) The primary responsibility of a sales force is to formulate operational strategies.
D) The sales force is responsible for product development and product strategy.
E) The sales force oversees the auditing process and recovers money from defaulting customers.

Question 17

Kevin is a salesperson working for a company manufacturing gardening tools. He is involved in door-to-door sales and travels everyday to call on customers. In his company, Kevin is most likely a part of the ________.

A) top management
B) outside sales force
C) product designing team
D) customer support team
E) inside sales force

Question 18

Which of the following helps companies in setting sales force size?

A) workload approach
B) pull strategy
C) push strategy
D) top-down approach
E) bottom-up approach

Question 19

All of the following are problems associated with the poor selection of salespeople EXCEPT ________.

A) lower sales
B) costly turnover
C) less productivity
D) fewer training expenses
E) disruptive customer relationships

Question 20

Amanda Perkins is a senior sales manager in Arlington Steelworks. As the customer base of her company has grown larger and more demanding over the last few years, Amanda insists on ________, or using groups of people from various departments such as, sales, technical support, engineering, and even upper management to service complex accounts.

A) cross selling
B) e-procurement
C) team selling
D) observational research
E) vendor screening

Question 21

Which of the following is an advantage of using a sales force automation system?

A) lowers sales team training costs
B) records major competitor's sales
C) eliminates the need for an inside sales force
D) eliminates employee attrition
E) improves customer service

Question 22

Which of the following involves computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere?

A) SWOT analysis
B) BCG matrix
C) digital marketing system
D) sales force automation system
E) field service management system

Question 23

All of the following are basic types of compensation plans for salespeople EXCEPT ________.

A) straight commission
B) straight salary
C) salary plus commission
D) salary plus company shares
E) salary plus bonus

Question 24

Ultra Tech Inc., a company manufacturing gardening tools, has decided to switch to a territorial sales force structure. Which of the following benefits is the company most likely to gain as a result of this decision?

A) The cost of training new recruits would be eliminated.
B) An increased focus on short-term customer relationships would boost local sales of specialized products.
C) Each salesperson would be assigned to sell a single product in which he/she specializes.
D) The capacity for mass production of a wide range of products would significantly increase.
E) As each salesperson travels within a limited geographic area, travel expenses would decline.

Question 25

Which of the following abilities would LEAST likely be measured when recruiting and testing applicants for a sales position?

A) sales aptitude
B) organizational skills
C) accounting skills
D) analytical skills
E) personality traits

Question 26

Which of the following is most likely a true statement about sales compensation in economically tough circumstances?

A) Cutting sales force compensation is usually a last resort for firms that want to maintain positive customer relationships.
B) Morale is boosted by distributing commissions equally among low and high sales performers.
C) Online selling is discontinued to improve customer relations.
D) Compensation for the inside sales force is reduced to increase commissions for the outside sales force.
E) Low performers are retained and top performers are dismissed to reduce commission payments.

Question 27

Which of the following is a primary reason that companies use e-learning to conduct sales training programs?

A) Customer needs and habits can be unambiguously conveyed through online training programs.
B) Sales training programs that do not use e-learning are mostly ineffective.
C) E-learning eliminates employee attrition.
D) E-learning is the best way to simulate real-life sales calls.
E) E-learning cuts travel and training costs.

Question 28

________ describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance in a company.

A) Culture shock
B) Organizational climate
C) Reverse culture shock
D) Segregation
E) Satisficing

Question 29

________ refers to the standard that establishes the amount each salesperson should sell and how sales should be divided among the company's products.

A) Conditional sale
B) A bill of sale
C) A sales quota
D) Prospecting
E) Satisficing

Question 30

Eric Brown is a human resource manager in a company selling and manufacturing personal computers. Who among the following is Eric most likely to hire as a salesperson if his objective is to minimize training costs post recruitment?

A) Samantha, a fresh college graduate
B) Richard, a product developer from a competing firm
C) Nancy, an experienced engineer with no prior experience in personal selling
D) Melissa, a proven salesperson from a competing firm
E) Henry, a young salesperson with a few months' experience in a large MNC

Question 31

A(n) ________ shows how much time is spent selling, traveling, waiting, taking breaks, and doing administrative chores by the salesperson.

A) customer relationship management tool
B) corporate social networking site
C) time-and-duty analysis tool
D) outsourcing relationship management tool
E) product lifecycle management analysis

Question 32

Which of the following refers to a positive incentive intended to increase the sales force effort?

A) sales contests
B) prospecting
C) telecommuting
D) sales collateral
E) annual sales plan

Question 33

The purpose of a training program for salespeople is to teach them about all of the following EXCEPT ________.

A) customers' buying habits
B) customers' buying motives
C) competitor strategies
D) industry history
E) company goals

Question 34

Which of the following is a potential drawback of using Web-based technologies for making sales presentations and servicing accounts?

A) Web-based technologies lower the overall efficiency of salespeople.
B) The cost of the technology outweighs the advantages gained through eliminating travel.
C) Web-based technologies can intimidate salespeople or clients who are unfamiliar with them.
D) Salespeople who use web-based technologies tend to be less attentive to customer needs.
E) Online selling usually takes more time than direct selling.

Question 35

Which of the following sales management tools helps a salesperson know which customers to visit and which activities to carry out during a week?

A) t-test
B) z-test
C) call plan
D) analysis of variance (ANOVA)
E) risk register

Question 36

More and more companies are moving away from high-commission plans because ________.

A) outside salespeople tend to undermine the efforts of the inside sales team
B) high-commission plans require salespeople to work overtime
C) salespeople tend to become pushy which affects customer relationships
D) salespeople are prone to taking multiple sales jobs to maximize their income
E) salespeople end up spending too much time traveling to meet customers

Question 37

A(n) ________ is a written representation of a salesperson's completed activities.

A) bill of sale
B) call report
C) tender
D) sales quotation
E) contract of sale

Question 38

Morrill Motors splits the United States of America into 10 sales regions. Within each of those regions, the company has separate sales personnel selling the company's full line of products. Which sales force structure does Morrill Motors use?

A) territorial
B) complex
C) customer
D) product
E) market

Question 39

Which of the following is the best way for a company to increase selling time?

A) implementing high-commission plans
B) reducing the number of customers
C) sharing less information with customers
D) simplifying administrative duties
E) implementing mass customization

Question 40

Johnson Business Solutions maintains one sales force for its copy machines and a separate sales force for its computer systems. Johnson Business Solutions utilizes a(n) ________.

A) product sales force structure
B) customer sales force structure
C) territorial sales force structure
D) digital marketing system
E) geographical operations system

Question 41

Hannah Adams is a senior sales manager in Elmo Corp., a rapidly-growing company manufacturing personal computers and printers. In order to handle sales effectively, Hannah insists on using the services of different groups of people from different departments within the company such as, the sales, marketing, technical support, and finance departments. In this instance, Hannah makes use of ________.

A) team selling
B) competitive marketing intelligence
C) hybrid selling
D) occasion segmentation
E) sales force automation systems

Question 42

Travis Computing Systems earns most of its revenue from sales and in-person computer services. The sales force at Travis recently began telemarketing and Web selling. How would telemarketing and Web selling most likely benefit Travis?

A) The need for an outside sales force would be completely eliminated through telemarketing.
B) Travis sales reps would be able to engage in more frequent face-to-face interaction with large, high-value customers.
C) Travis sales reps would be able to service hard-to-reach customers more effectively.
D) The overhead costs of Travis would significantly decrease.
E) The current liabilities of Travis would decrease.

Question 43

During the ________ step of the selling process, the salesperson tells the value story to the buyer, showing how the company's product or service solves the customer's problems.

A) prospecting
B) preapproach
C) presentation
D) closing
E) follow-up

Question 44

Prospects can be qualified by looking at all of the following characteristics EXCEPT ________.

A) occupational mobility
B) financial ability
C) volume of business
D) location
E) possibilities for growth

Question 45

Refer to the scenario below to answer the following questions.
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
Which of the following is the first step in the personal selling process?

A) handling objections
B) follow-up
C) presentation and demonstration
D) preapproach
E) prospecting and qualifying

Question 46

Sigma Inc. has 2,000 Type-A accounts, each requiring 35 calls per year, and 1,000 Type-B accounts, each requiring 15 calls per year. What is the sales force's workload?

A) 15,000 calls
B) 35,000 calls
C) 70,000 calls
D) 85,000 calls
E) 95,000 calls

Question 47

________ refers to the sales step in which a salesperson asks the customer for an order.

A) Prospecting
B) Demonstration
C) Approach
D) Closing
E) Handling objections

Question 48

A hybrid sales rep ________.

A) works exclusively from remote locations
B) is a modern cross between a field sales rep and an inside rep
C) rarely engages in face-to-face interactions with customers
D) performs sales audits
E) sets the sales objectives of companies

Question 49

At the beginning of each year, the management of Dee Decor states the exact amount a salesperson should sell. This specific sales target is also known as a ________.

A) sales lead
B) prospect
C) bill of sale
D) channel length
E) sales quota

Question 50

Mary Conti, a sales manager at National Computer Training, wants to evaluate the performance of her sales force in the New England territory. Which of the following would Mary most likely use?

A) SWOT analysis
B) breakeven analysis
C) sales forecast
D) expense reports
E) BCG matrix

Question 51

In the ________ stage of the selling process, a company first identifies qualified potential customers.

A) preapproach
B) follow-up
C) prospecting
D) presentation
E) approach

Question 52

Refer to the scenario below to answer the following questions.
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
How would a customer sales force structure benefit Reliable Tools?

A) It would eliminate the need for the company's salespeople to travel to meet customers.
B) It would enable the company's salespeople to build close relationships with customers.
C) It would help the company's salespeople become experts in the products they sell.
D) It would enable the company's management to cut training costs substantially.
E) It would make telemarketing irrelevant.

Question 53

Cravenshaw Metalworks has witnessed a rise in the number of its industrial customers in recent years. The company uses different groups of people from the sales, marketing, technical support and finance departments for servicing large, complex accounts. In this instance, Cravenshaw Metalworks uses ________ in order to enhance the quality of its customers' buying experience.

A) product differentiation
B) team selling
C) competitive marketing intelligence
D) satisficing
E) e-procurement

Question 54

Before calling on a prospect, the salesperson should learn as much as possible about the organization and its buyers. This step is known as ________.

A) preapproach
B) closing
C) approach
D) presentation
E) prospecting

Question 55

Refer to the scenario below to answer the following questions.
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
Which of the following promotions would be most appropriate for Reliable Tools to use in its attempt to promote its products and generate new business leads?

A) rebates and price packs
B) premiums
C) specialty advertising
D) samples
E) conventions and trade shows

Question 56

Which of the following refers to a closing technique used by salespeople?

A) asking customers for referrals
B) developing solutions to customers' problems
C) seeking out hidden objections
D) reviewing points of agreement
E) taking objections as opportunities to provide more information

Question 57

Which of the following is true with regard to the inside sales force of a company?

A) The inside sales force is invariably more attentive to customer needs than the outside sales force.
B) Unlike the outside sales force, the inside sales force does not require training.
C) Inside sales representatives engage in face-to-face interaction with customers.
D) The inside sales force is far more knowledgeable about customer habits than are outside salespeople.
E) Inside salespeople provide support for the outside sales force, freeing them to spend more time selling to major accounts and finding new prospects.

Question 58

In which of the following steps of the selling process is a salesperson most likely to meet the customer for the first time?

A) prospecting
B) pre-approach
C) follow-up
D) approach
E) closing

Question 59

During the prospecting stage, a salesperson needs to identify the good leads and screen out the poor ones through a process known as ________.

A) closing
B) satisficing
C) presenting
D) qualifying
E) approaching

Question 60

Stahl Inc. has 1,000 Type-A accounts, each requiring 30 calls per year, and 3,000 Type-B accounts, each requiring 10 calls per year. If each salesperson at Stahl Inc. can make 1,500 sales calls per year, how many salespeople would be needed to meet the total workload?

A) 25
B) 35
C) 40
D) 45
E) 60

Question 61

Capitalizing on the customer's complaints about the previous detergents she has used, Sheila, a salesperson, explains to the customer why her company's detergent Swish is better and how it can be a one-stop solution for everyday washing. In which of the following steps of the selling process is Sheila in?

A) follow-up
B) handling objections
C) preapproach
D) presentation
E) prospecting

Question 62

________ are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet.

A) Rebates
B) Promotional products
C) Premiums
D) Samples
E) Price packs

Question 63

After successfully overcoming a potential customer's objection to buying the vacuum cleaner he was selling, Terrence, a salesperson, asked the customer for an order. Terrence is in the ________ stage of the selling process.

A) follow-up
B) approach
C) preapproach
D) closing
E) prospecting

Question 64

Which of the following is the most effective-but most expensive-way to introduce a new product or create new excitement for an existing one?

A) coupons
B) sampling
C) cash refunds
D) cents-off deals
E) satisficing

Question 65

Richard, a saleperson, works for Wellington Steelworks. After researching a qualified lead, Richard is preparing opening lines for meeting the customer for the first time. Which step of the selling process is he about to enter?

A) follow-up
B) handling objections
C) approach
D) presentation
E) preapproach

Question 66

Which consumer promotion tool requires the consumer to send a proof of purchase to the manufacturer?

A) price packs
B) coupons
C) samples
D) rebates
E) displays

Question 67

________ consists of short-term incentives to encourage the purchase of a product or service.

A) Value selling
B) Conditional sale
C) Advertising
D) Sales promotion
E) Benchmarking

Question 68

Right after closing, Joshua, a senior sales manager at Halcyon Technologies called up the customer to ensure that she was satisfied with Halcyon's products. By calling the customer, Joshua also wanted to ensure repeat business. In this instance, Joshua is in the ________ stage of the selling process.

A) follow-up
B) handling objections
C) preapproach
D) closing
E) prospecting

Question 69

Which of the following steps in the selling process is most focused on ensuring customer satisfaction and repeat business?

A) preapproach
B) demonstration
C) handling objections
D) qualifying prospects
E) follow-up

Question 70

________ weakens a given promotion's ability to trigger an immediate purchase.

A) A customer-oriented promotion mix
B) Promotion clutter
C) Puffery
D) Local marketing
E) Niche marketing

Question 71

Which of the following is true with regard to value selling?

A) Value selling refers to earning business from customers by cutting down prices of value products.
B) Value selling refers to delivering superior customer value and capturing a fair return on that value.
C) Value selling refers to the mass production of inferior-quality goods for sale.
D) Value selling dilutes customer loyalty in the long run.
E) Value selling tarnishes the brand image of a product in the long run.

Question 72

________ refers to a practice in which salespeople drop in unannounced on various offices.

A) Hybrid selling
B) Niche marketing
C) Cold calling
D) Value selling
E) Direct marketing

Question 73

________ are offers of a trial amount of a product.

A) Samples
B) Coupons
C) Premiums
D) Rebates
E) Price packs

Question 74

Which of the following factors has most likely contributed to the rapid growth of sales promotion, particularly in consumer markets?

A) declining interest in quality
B) declining advertising efficiency
C) rising hostility toward large firms
D) increasing popularity of e-procurement
E) increasing number of international firms

Question 75

Jason has been recently hired as a salesperson by Matrix Inc., a company selling consumer durables. He is currently working on his first sales assignment. After identifying a good prospect, Jason is now learning everything about his prospect via online sources and common acquaintances. Which of the following stages of the selling process is Jason in?

A) follow-up
B) handling objections
C) preapproach
D) presentation
E) prospecting

Question 76

Melissa Price is a member of the sales force at Urban Fashions, a Houston-based manufacturer of women's apparel. Melissa is preparing for a first meeting with a wholesaler who is a potential customer. She is learning as much as she can about her prospect and his organization. Melissa is in the ________ step of the personal selling process.

A) prospecting
B) qualifying
C) preapproach
D) follow-up
E) demonstration

Question 77

In ________, the producer marks the reduced prices directly on the label or package. These offer consumers savings off the regular price of a product and are very effective in stimulating short-term sales.

A) promotional products
B) coupons
C) cents-off deals
D) samples
E) rebates

Question 78

A sales person of a manufacturing company has qualified a number of leads. Which of the following is most likely the next step in the selling process?

A) calling on all the prospects one by one
B) closing the deal with the most promising prospect
C) learning as much as possible about the qualified prospects.
D) handling all objections raised by the prospects
E) narrating the "value story" to the buyer

Question 79

Which of the following is the last step in the selling process?

A) qualifying
B) handling objections
C) demonstration
D) follow-up
E) approach

Question 80

Which of the following is true with regard to prospecting?

A) Salespersons meet and greet the buyer.
B) Salespersons learn as much as possible about the organization.
C) Salespersons identify qualified potential customers.
D) Salespersons tell the "value story" to the buyer, showing how the company's offer solves the customer's problems.
E) Salespersons ask for the order, review points of agreement, and offer to write up the order.