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Chapter 1
True or false :
2. According to Department of Labor statistics, about 5% of the U.S. work force are employed in sales positions.
Ans: False
3. Public relations is not usually considered one of the elements of the promotion mix.
Ans: False
4. The advantage of advertising and sales promotion over other elements of the promotion mix is that they involve two-way communication.
Ans: False
5. Advertising is generally more effective than personal selling in closing the sale.
Ans: False
6. Sales management can be defined as the control and implementation of personal contact programs designed to achieve the sales objectives of the firm.
Ans: True
8. Sales and customer relationship skills are most important during the growth phase (i.e., the middle of the product life cycle) of the product life cycle.
Ans: False
9. The competitive change of “blurred boundaries” refers to the practice of selling in multiple countries.
Ans: False
10. The desire by many customers to buy from fewer suppliers has been a welcomed and beneficial development for most suppliers.
Ans: False
13. Relationship selling means the sales force emphasizes skills such as communicating product benefits, helping customers make purchase decisions, and making the entire process easier and more convenient for the buyer.
Ans: False
15. One change many sales forces are experiencing is that they are spending more time meeting with people inside their own company.
Ans: True
16. The sales force is only responsible for generating revenues.
Ans: False
Multiple Choice
24. An advantage of personal selling is not:
a. two way communication.
b. reaching a massive number of people quickly.
c. detailed explanation.
d. direction towards qualified prospects.
e. all are advantages of personal selling
Ans: b
25. Compared to other promotional tools, the most important advantage(s) of person selling is in:
a. locating prospects.
b. gaining customer commitment
c. creating customer value.
d. both b and c above.
e. all of the above.
Ans: d
26. Personal selling has many advantages over the other promotional tools. For instance, personal selling:
a. is perceived by the customer as offering less biased product information.
b. is far less expensive than the other promotion tools.
c. can adapt the communications message to the needs of the individual customer.
d. involves highly effective one-way communication.
e. all of the above.
Ans: c
27. The most effective way to close a sale and to get the customer's signature on the order form is generally through:
a. advertising.
b. personal selling.
c. public relations.
d. sales promotion.
e. both a and b of the above.
Ans: b
28. "The planning, organizing, leading, and control of personal contact programs designed to achieve the sales and profit objectives of the firm" is a definition of:
a. sales management.
b. personal selling.
c. sales support.
d. the relationship selling model.
e. none of the above.
Ans: a
29. In general, which is more effective in "closing" the sale?
a. advertising
b. personal selling
c. selling promotion
d. a, b, and c are equally effective
Ans: b
30. Which is not an important aspect of the sales manager's job?
a. recruiting
b. training
c. motivating
d. evaluating
e. mass advertising
Ans: e
32. Which of the following are considered to represent some key customer changes occurring today?
a. a desire to purchase from fewer suppliers
b. rising service expectations
c. increasing negotiating power
d. all of the above with the exception of b
e. all of the above
Ans: e
33. The most powerful motivator for salespeople is usually:
a. compensation.
b. meetings.
c. quotas.
d. contests.
e. awards.
Ans: a
35. Having a good understanding of the industry and the strengths and weaknesses of the organization are aspects of which of the following competencies:
a. team building .
b. coaching.
c. strategic action.
d. self-management.
e. both a and c.
Ans: c
Chapter 2 :
True of false
1. A firm’s sales force strategy should be derived from its marketing strategy.
Ans: True
2. A company’s sales force program should follow directly from top management’s business strategy decisions.
Ans: False
3. Supply chain management is a Level 1, top management decision.
Ans: False
4. Strategic marketing planning focuses on identifying market segments and a designing targeting strategy.
Ans: False
6. Target marketing refers to the selection and prioritizing of segments to which the company will market its products or services.
Ans: True
7. A positioning strategy is concerned with how a company wants customers to perceive the company vis-à-vis competitors.
Ans: True
10. The first step in developing a go-to-market strategy is to segment the market.
Ans: True
11. The first step in developing a go-to-market strategy is to identify all the activities that are needed to serve customers properly.
Ans: False
12. Most large companies access their markets exclusively through a direct sales force.
Ans: False
15. The internet is proving to be more of a substitute for the sales force, rather than a tool to help the sales force become more effective.
Ans: False
20. Supply chain management is primarily concerned with the integration and coordination of a firm’s own logistical operations.
Ans: False
23. The sales force is generally responsible for designing and implementing a firm’s customer relationship management (CRM) processes.
Ans: False
24. "The purpose of marketing is to make a sale," is an example of a consultative relationship perspective.
Ans: False
25. When a customer purchases from a particular supplier primarily because of the consistency of its product quality, the customer and supplier are most likely in a transactional relationship.
Ans: True
26. A consultative relationship is likely to differ from a transactional relationship in that success depends more on intimately grasping a customer’s current business issues.
Ans: True
27. One way in which consultative selling attempts to create value is by making the purchasing process easy for the customer.
Ans: False
28. One method for creating value in a consultative relationship is for the seller to help the customer develop a better solution to their problems than they would have discovered on their own.
Ans: True
29. For a consultative relationship to be profitable for the supplier, it usually must be a long-term relationship.
Ans: True
Multiple Choice
33. Strategies are employed to:
a. make better use of company resources.
b. set specific and achievable objectives.
c. sustain an advantage over the competition.
d. both a and c of the above.
e. all of the above.
Ans: e
34. The three C's of an organization's business, often used to describe the basic character of an organization, are:
a. customers, competitors, cost.
b. customers, competitors, company.
c. customers, cost, company.
d. customers, compensation, company.
e. none of the above.
Ans: b
35. A should include a statement about (1) the type of customers served, (2) the needs to be fulfilled, and (3) the technology used to fulfill the needs.
a. customer-product matrix
b. customer base triangle
c. segmentation
d. business mission
e. target marketing
Ans: d
37. Which of the following are examples of commonly used organizational goals:
a. dollar revenue.
b. social responsibility.
c. dollar profits.
d. both a and c above.
e. all of the above.
Ans: e
39. Is the way an organization attempts to achieve its overall performance objectives.
a. strategy
b. positioning
c. business mission
d. target marketing
e. none of the above
Ans: a
44. Focusing your product on a special part of the market is an example of:
a. capital budgeting.
b. segmenting.
c. target marketing.
d. centralization.
e. penetration programming.
Ans: c
45. Identifying customers with common needs is always a part of:
a. capital budgeting.
b. segmentation.
c. Setting business unit objectives.
d. a differentiated strategy.
e. a harvesting strategy.
Ans: b
46. Market segmentation involves aggregating customers into groups that:
a. are the same size.
b. are in the same industry.
c. have similar needs.
d. both a and b above.
e. all of the above.
Ans: c
47. Identifying customers with common needs is called:
a. capital budgeting
b. segmentation
c. differentiation
d. penetration programming
e. harvesting
Ans: b
38. Aggregating customers into groups based on common needs is referred to as:
a. target marketing.
b. needs-based grouping.
c. market segmentation.
d. market implication.
e. strategic marketing.
Ans: c
50. Developing a plan for how you want your customers to perceive your product is referred to as:
a. customer relationship management.
b. a go-to-market strategy.
c. positioning.
d. a customer strategy.
e. a segmentation strategy.
Ans: c
51. Which of the following are considered to be “essential activities” when developing a go-to-market strategy?
a. Interest creation activities.
b. Pre-purchase activities.
c. Post-purchase activities.
d. Only b and c above.
e. all of the above.
Ans: e
52. Which of the following participants in a firm’s go-to-market strategy is most efficient in that it is inexpensive per customer contact?
a. independent sales agents.
b. telemarketing.
c. advertising.
d. resellers.
e. integrators.
Ans: c
53. Which of the following are given exclusive contracts to perform the selling function within specified geographic areas?
a. independent sales agents.
b. telemarketing.
c. alliances.
d. resellers.
e. integrators.
Ans: a
59. Which of the following is best characterized by offering a product of acceptable quality that is competitively priced with an emphasis on convenience?
a. a transactional relationship
b. a consultative relationship
c. a enterprise relationship
d. a differentiation strategy
e. a niche strategy
Ans: a
Chapter 3
True or false :
1. Most executives believe that their greatest opportunity for growth is by acquiring new customers.
Ans: False
3. Trade shows are generally not very effective in generating good sales leads.
Ans: False
4. Prospects are considered a qualified lead when it is established that they have both a need for the product and the authority to buy the product.
Ans: False
5. The minimum size customer that a salesperson should call on is closely related to the cost of making a sales call.
Ans: True
7. Direct selling expenses are those associated with selling a product directly to the final user of the product.
Ans: False
8. Although important for evaluating current customers, calculating a breakeven sales volume is not necessary when prospecting for new customers.
Ans: False
10. Break-even sales volume is the sales volume necessary to cover all direct selling expenses.
Ans: True
11. Break-even sales volume analysis is as important when prospecting for new customers as it is when serving existing customers.
Ans: True
17. A salesperson is well advised to provide the same level of service (e.g., number of sales calls) to all accounts in an effort to increase sales volume.
Ans: False
20. The easiest and most widely used model for allocating salespeople's time is the multiple factor model.
Ans: True
21. The ABC account classification procedure typically considers multiple factors when determining customer value.
Ans: False
22. Portfolio models evaluate account attractiveness based on both account opportunity and competitive position.
Ans: True
37. According to salespeople, telephone interruptions are considered to be the most common time waster.
Ans: True
Multiple Choice Questions
40. According to surveys of top executives, executives are most likely to feel that their biggest opportunities for growing sales volume is by:
a. acquiring new customers
b. introducing new products
c. increasing business with existing customers
d. mergers and acquisitions
e. both a and c above.
Ans: c
40. Which of the following actions is considered the best opportunity by which to grow:
a. acquiring new customers
b. mergers and acquisitions
c. increasing business with existing customers
d. introducing new products
e. none of the above
Ans: c
42. Methods of locating prospects include all of the following except:
a. inquiries from possible customers.
b. using directories.
c. conducting logistic analysis.
d. trade shows.
Ans: c
45. In order for a prospect to be a qualified lead a salesperson must gather information about whether the prospect has:
a. a genuine need for the product or service.
b. the buying authority to purchase the product or service.
c. the financial resources to purchase the product or service.
d. only a and b above are true.
e. a, b, and c above are all true.
Ans: e
46. The first step in determining the minimum customer size on which the sales force should call is to calculate the:
a. cost per sales call.
b. the growth potential of the customer.
c. sales promotion budget needed.
d. cost of product development.
e. gather the customer’s past sales record.
Ans: a
47. Which of the following is not considered when calculating the minimum sized customer on which to call:
a. direct selling costs.
b. the average number of sales calls required to close the sale.
c. the cost structure of the selling company.
d. the growth rate of the customer.
Ans: d
Given the following information:
Compensation - $90,000 Direct Communications - $5,000
Automobile - $7,000 Meals & entertainment - $6,000
Overhead - $12,000 Promotional materials - $10,000
Calls per day - 5 Profit margin - 10%
Net selling days - 200
48. The average cost per call is:
a. $111.00
b. $113.00
c. $118.00
d. $130.00
e. none of the above are correct.
Ans: c
Given the following information:
Compensation - $90,000 Direct Communications - $5,000
Automobile - $7,000 Meals & entertainment - $6,000
Overhead - $12,000 Promotional materials - $10,000
Calls per day - 5 Profit margin - 10%
Net selling days – 200 Number of calls to close – 4 calls
Direct sales costs - 4%
51. The average cost per call is:
f. $1,800
g. $4,720
h. $11,800
i. $47,200
j. None of the above are correct.
Ans: e
53. Which of the following are methods for determining time allocation?
a. single factor.
b. ABC approach.
c. portfolio.
d. sales funnel.
e. all are allocation methods.
Ans: e
56. Although portfolio models offer several benefits over single factor models, a problem that still remains is:
a. only one characteristic is used to classify accounts.
b. the lack of an optimal solution to the allocation of sales calls.
c. a lack of priorities for customer data collection and analysis.
d. it does not promote forward-focused thinking by the sales team.
e. none of the above.
Ans: b
65. Which of the following is the greatest time waster according to salespeople?
a. unclear communication
b. meetings
c. telephone interruptions
d. procrastination
Ans: c
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