Ch.1-2-3 (true or false )

1. Most executives believe that their greatest opportunity for growth is by acquiring new customers.

Ans: False

2. In a consultative selling situation, cold canvassing often wastes a lot of the salesperson’s time.

Ans: True

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

6. Corporate marketing executives are usually in the best position to determine the minimum size customer on which the sales force should be calling.

Ans: False

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

9. The minimum size customer that a salesperson should call on is directly related to the number of employees the customer employs.

Ans: False

10. Break-even sales volume is the sales volume necessary to cover all direct selling expenses.

Ans: True

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

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

Ch.4) )

Three different types of purchasing situations :

1- straight rebuy purchasing situation

2- A modified rebuy purchasing situation

3-the new rebuy purchasing situation

The components of the The Purchasing Process :

Recognition of Needs

Evaluation of Options

Purchase Decision

Implementation and Evaluation

Proposals :is a written offer by a seller to provide product or service to a purchasing organization

The buying center refer to :all the people formally or informally involved in the purchasing decision , that is all the people who must say yes for a sale to occur or influence the people who will ultimately say yes or no to the purchase .

The types of the buyer purchasing roles:

economic buyer

user buyers

technical buyer

advocate

Ways in Which an Advocate can Help :

Recommend selling strategies.

Build a groundswell of interest.

Refer you to other advocates.

Review your presentation.

Gain access to decision-makers.

Account Relationships Enhancers :

Creating Value:
Meeting Expectations:
Building Trust:

characteristics of salespeople :

LIKEABLE

COMPETENT

DEPENDABLE

CUSTOMER ORIENTED

HONEST

(ch.5)

PRE- INTERACTION :actions that are initiated prior to interaction with key decision makers , requiring skills in precall planning .

INTERACTION : actions initiated while interacting with decision makers ,calling on skills in relating ,discovery , advocating ,handling objectives, and closing

POST-INTERACTION : activities following a transaction involving supporting skills

Task motives can be defined as the logical ,practical , or functionalreasons for buying , they usually involve either money or productivity .

Personal motives :are the individual preferences that spur a person to buy , they are psychological in nature

Basic Types Of Selling Models :

  • Standardized model
  • Need satisfaction model
  • Problem solution model

benefitizing means translating features of a product into benefits believed to be of value to the customer.

ways for gaining access :

1--Direct personal contact (face to face )

2–-Phoning Ahead

3-- Personal letters

4– E-mail messages

Task Motives:

productivity

More Output or Quality
Less Effort

money

Less Cost

More Profit

Personal Motives

Respect

Power

Approval

Recognition

Handling Concerns (LSCPA)

Listen

Share

Clarify

Problem-solve

Ask for ACTION

Questions may be classified as :

Closed-ended

open-ended

Permission

Fact finding

Feeling –finding

Checking

(ch.6)

Four fundamental structures for organizing a sales force are:

Generalist

Product specialized

Customer specialized

Functional specialized

Who are Strategic Accounts?

When a customer purchases a significant volume and exhibits one or a combination of the following:

Multiple people are involved in the buying process

Purchasing is centralized

The customer desires a long-term, cooperative working relationship

The customer expects specialized attention and service

Telemarketing : refers to customer contacts utilizing telecommunications technology for personal selling without direct , face to face contact.

Advantages

Low cost per sales call

Profitably serve small to medium customers

Speed/time saving of telephone ordering

Challenges

Acceptance by field salespeople

Management

Role of the Internet

ch.7))

turnover rate = separation per year /average size of the sales force

Turnover mean the rate at which salesperson leave jobs

A job analysis is a systematic way to describe how a job is to be performed ,as well as the tasks that make up the job .

The number of applicants needed can be determined by using a simple formula based on the company experience from past recruiting efforts .

The number of recruits (R) = H/ (S*A )

H : required number of hires

S: percentage of recruits selected

A: percentage of those selected who accept to work

Recruiting Sources

  1. Classified Ads
  2. Present Employees
  3. Referrals/Networking
  4. Employment Agencies
  5. Schools & Colleges
  6. Customers, Suppliers & Competition

COMMON INTERVIEWER MISTAKES

  1. Failure to establish rapport
  2. Lack of plan
  3. Insufficient time
  4. Not listening
  5. Personal bias
  6. Questions
  7. First impressions

Ch.4

1. The most productive use of a salesperson's time is usually to call on existing customers, rather than prospects.

Ans: True

2. The first stage of the typical purchasing process in organizations is the evaluation of purchasing options.

Ans: False

3. In many consultative type of sales situations, the customer may not be aware that a need or opportunity exists.

Ans: True

4. In the U.S., the first step in organizational purchasing is for the buyer to develop a personal relationship with the seller.

Ans: False

5. The first stage of the typical purchasing process in organizations is to recognize that a need exists.

Ans: True

6. Derived demand refers to the opportunity to sell additional products and services once a supplier has established a good customer relationship.

Ans: False

7. The concept of “derived demand” refers to the close relationship between a supplier’s sales to a customer and the customer’s sales to their customers.

Ans: True

8. Developing product specifications involves developing a precise statement of a product's requirements and tolerances.

Ans: True

9. The submission of a sales proposal in a typical purchasing process precedes the purchase decision itself and follows the supplier selection phase.

Ans: False

10. Extranets are most likely to be involved in business-to-business transactions involving inventory replenishment.

Ans: True

. Which of the following is the first step in the typical purchasing process by organizations?

  1. a vendor analysis
  2. a Request for Proposal (RFP)
  3. recognitions of needs
  4. evaluation of alternatives
  5. none of the above

Ans: c

Derived demand is an important idea in business-to-business sales because:

  1. it usually determines how much can be sold.
  2. it is the only factor determining a product's price.
  3. it determines what arguments are included in the sales presentation.
  4. it is an indicator of the state of the economy.
  5. all of the above

Ans: a

Which of the following is likely to be associated with a request for proposal (RFP)?

  1. a set of product specifications
  2. an extensive amount of client information
  3. an extensive search for qualified suppliers
  4. a fixed price the customer wants all suppliers to charge
  5. none of the above

Ans: a

Value analysis focuses on the

cost of providing a necessary function or service.

  1. total
  2. direct
  3. indirect
  4. variable
  5. fixed

Ans: a

Which of the following questions is not likely to be asked during a value analysis?

  1. whether an item can be eliminated entirely
  2. whether an item is purchased individually or in bulk
  3. whether a part has excess capacity for the intended application
  4. whether a part is a standard item or specially ordered
  5. both b and c above

Ans: a

A vendor analysis may examine all of the following performance criteria except:

  1. delivery reliability.
  2. product quality.
  3. gross margins.
  4. after sales service.
  5. none of the above.

Ans: c

. When a customer views the supplier as a critical to the customer’s ongoing competitive position, then the supplier would most likely be considered a ______supplier?

  1. In
  2. Preferred
  3. Partner
  4. Extended
  5. Either c or d above

Ans: c

. Which of the following would be typical of the buyer-seller relationship of a Preferred Supplier?

  1. Usually involves product design collaborations.
  2. Usually involves inventory management collaborations.
  3. Usually involves a high level of trust.
  4. Usually involves an “exclusive” sourcing relationship.
  5. Usually is considered critical to the customer’s competitive success.

Ans: c

. The types of people salespeople are likely to call on when selling to organizations would include:

  1. purchasing agents.
  2. engineers.
  3. production managers.
  4. both a and c above.
  5. all of the above.

Ans: d

. The factor(s) which influence the number of people who are likely to be involved in the decision making process are:

  1. how many departments use the product.
  2. the dollar value of the purchase.
  3. the degree of technical sophistication of the product.
  4. both b and c above.
  5. all of the above.

Ans: e

Ch.5

1. Overcoming buying concerns is the first step in the personal selling process.

Ans: False

2. Direct marketing organizations such as Mary Kay Cosmetics and Avon Products will usually train their salespeople to use a need-satisfaction type of sales presentation.

Ans: False

3. Direct marketing organizations such as Mary Kay Cosmetics and Cutco usually train their salespeople to use a standardized type of sales presentation.

Ans: True

4. “Benefitizing” in a sales presentation refers to the practice of translating features of a product into benefits believed to be of value to the customer.

Ans: True

5. An example of a need-satisfaction type of selling process is when EDS studies a client’s business operation for six months before recommending an information system solution.

Ans: False

6. The standardized type of sales presentation can be especially useful for new salespeople.

Ans: True

7. An example of a problem-solution type of selling process is when clients pay EDS to perform an extended study of their information needs before recommending an information system.

Ans: True

8. Procter & Gamble may use a need-satisfaction type of sales presentation with some customers and a problem-solution presentation with others.

Ans: True

9. Precall planning should be used to help collect your thoughts and organize your sales strategy prior to meeting the buyer face to face.

Ans: True

10. “What is the size of the customer’s business?” is a question that should be answered in the transactional stage of the selling process.

Ans: False

. Which of the following skills are used in the post-interaction phase of the selling process?

  1. relating to the client
  2. dealing with dissatisfaction
  3. advocating a solution
  4. needs discovery
  5. all of the above

Ans: b

Which of the following skills are used in the interaction phase of the selling process?

  1. needs discovery
  2. dealing with dissatisfaction
  3. advocating a solution
  4. a and c only
  5. all of the above

Ans: d

When a sales force gives the same basic sales presentation to every prospect, this is probably an example of a ______selling model.

  1. needs-discovery
  2. needs-satisfaction
  3. standardized
  4. stimulous-response
  5. problem-solution

Ans: d

Most door-to-door direct marketing firms use which sales presentation process?

  1. standardized presentation
  2. problem solution
  3. needs satisfaction
  4. affective response
  5. both a and d above

Ans: a

Most encyclopedia companies have their sales representatives use a prepared flip chart notebook and examples of their books during a sales presentation. Which type of selling method is this?

  1. needs satisfaction
  2. problem solution
  3. standardized presentation
  4. both a and c above
  5. none of the above

Ans: c

. EDS often must conduct a six month or longer indepth investigation of a company’s information needs before presenting a proposal to address the customer’s needs. EDS’ sales force most likely utilizes which selling model?

  1. standardized selling model.
  2. stimulus-response selling model.
  3. need-satisfaction selling model.
  4. problem-solution selling model.
  5. both c and d above.

Ans: d

All the following are examples of appropriate client actions that salespeople may wish to accomplish when making a sales call, except:

  1. agree to meet again for lunch.
  2. arrange a future meeting with a previously uncontacted key buying influence.
  3. get a purchase order number.
  4. agree to supply information on historical inventory levels.
  5. all of the above are good examples of such actions

Ans: a

. Before meeting with a prospect, which of the following may be an important source of information:

  1. the prospect's business facilities.
  2. other salespeople.
  3. current customers.
  4. the internet
  5. all of the above

Ans: e

. Establishing rapport with the buyers is most directly related to:

  1. the sales person’s closing technique.
  2. the salesperson's introductory comments to the buyer.
  3. the salesperson’s follow-up servicing.
  4. the salesperson’s attention to detail.
  5. the salesperson’s ability to address important buyer concerns.

Ans: b

. Once a salesperson gains entry to a prospect's office, the first thing he or she should do is:

  1. hand a business card to the prospect.
  2. open with chit-chat.
  3. introduce him or herself.
  4. both a and c of the above.
  5. all of the above

Ans: d

Which of the following is not necessarily a good means for reducing relationship anxiety early in the sales call:

  1. not smoking in front of the buyer.
  2. demonstrating confidence.
  3. talking about sports.
  4. revealing the purpose of the sales call and its benefits.
  5. none of the above.

Ans: c

In the selling process, which of the following activities would occur first (before all the others):

  1. answering objections.
  2. determining customer needs.
  3. delivering a sales presentation.
  4. closing the sale.

Ans: b

. A buyer wants greater visibility in his/her organization and desires to demonstrate their leadership ability. The personal motive of this buyer is for:

  1. respect.
  2. approval.
  3. recognition.
  4. money.
  5. none of the above.

Ans: c

. Common task motives for buying include:

  1. better quality.
  2. less output.
  3. greater costs.
  4. less profit.
  5. more effort.

Ans: a

Ch.6

1. A firm may change their sales force organization in order to counter the actions of their competitors.

Ans: True

2. The most common form of sales force organization today is according to geographic territories without farther specialization.

Ans: False

3. Executives generally expect more and more sales forces to be organized according to the type of customer.

Ans: True

4. Organizing along product lines is the most common form of sales force organization today.

Ans: False

5. Most sales forces are organized along functional lines.

Ans: False

6. A simple geographic organization of a sales force generally works best when the product line is fairly broad and complex.

Ans: False

7. The most common way to organize a field sales force is in a generalist structure.

Ans: True

8. One of most serious problems with geographical organizations is that salespeople must sell the entire line, when they may not be equally knowledgeable about all product lines.

Ans: True

9. One of the key advantages of a customer specialization type of sales force organization is that it minimizes the sales force’s travel time.

Ans: False

10. One of the problems with organizing your company's sales force as generalists is that salespeople have a great deal of latitude to decide which products to emphasize.

Ans: True

. Which form of sales force organization is expected to increase in popularity the most over the next five years?