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Chapter 17: Personal Selling and Sales Management
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1. A sales manager's only job is to maximize sales at a reasonable cost while also maximizing profits.
a.
True
b.
False
ANSWER:
False
2. Salespeople selling in foreign markets should tailor their presentations and closing styles to each market.
a.
True
b.
False
ANSWER:
True
3. A sales presentation is a written document or professional presentation that outlines how a company's product or service
will meet or exceed the client's needs.
a.
True
b.
False
ANSWER:
False
4. When customers try to pit suppliers against each other to drive down the price of the product, the salesperson should
offer an initial discount and raise the price later on.
a.
True
b.
False
ANSWER:
False
5. A good salesperson perceives objections as a hindrance to the purchase decision.
a.
True
b.
False
ANSWER:
False
6. Personal selling provides a brief and precise explanation of the product.
a.
True
b.
False
ANSWER:
False
7. Unlike advertising and sales promotion, in personal selling, responses are provided only to the questions and objections
that the copywriter thinks are important to customers.
a.
True
b.
False
ANSWER:
False
8. Relationship selling is more often used in selling situations for consumer goods.
a.
True
b.
False
ANSWER:
False
9. Point-of-sale interaction is a touch point in stores or information kiosks that uses software to enable customers to easily
provide information about themselves without feeling violated.
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a.
True
b.
False
ANSWER:
True
10. While recruiting the sales force, sales managers prefer salespeople who:
a.
often avoid getting involved in unlikely sales.
b.
get their point across confidently without being overbearing or aggressive.
c.
ensure that there is no negotiation during the process of closing a sale.
d.
are transaction oriented rather than relationship oriented.
ANSWER:
b
11. Glenda, a sales representative for Revo Appliances Inc., had to deliver a presentation on her company's latest offering:
an innovative food processor. Her target clients were senior managers and chefs from a reputed restaurant. After her
presentation, Glenda faced tough objections from her clients who were skeptical about the product's necessity and
usefulness. As a good salesperson, how should Glenda respond to this situation?
a.
She must ignore the specifications of the product's competing products.
b.
She must offer a steep introductory discount and increase the price later.
c.
She must suggest to her company the use of testimonials as a sales strategy rather than personal selling.
d.
She must consider the objections as a legitimate part of the purchase decision.
ANSWER:
d
12. In the selling process, which of the following statements is true of developing and proposing solutions?
a.
The immediate step after presenting the sales proposal is the final purchase transaction.
b.
Often, customers are more likely to remember what salespeople say than how they present themselves.
c.
It is better to depend on a formal presentation than on a salesperson's ability to handle customer objections.
d.
The quality of both the sales proposal and the presentation can make or break the sale.
ANSWER:
d
13. Which of the following statements is a characteristic of negotiation?
a.
It plays an important role in the closing of the sale.
b.
Effective negotiators use price as a negotiation tool.
c.
Giving in to price negotiations too quickly increases the value of the product.
d.
It is a formal meeting in which the salesperson has the opportunity to present the sales proposal.
ANSWER:
a
14. Which of the following statements is true of lead qualification?
a.
It refers to a process in which a salesperson approaches potential buyers without any prior knowledge of the
prospects' needs or financial status.
b.
It refers to using friends, business contacts, coworkers, acquaintances, and fellow members in professional and
civic organizations to identify potential clients.
c.
It refers to a process that describes the ''homework'' that must be done by a salesperson before he or she
contacts a prospect.
d.
It refers to determining the recognized need, buying power, and receptivity and accessibility of a sales
prospect.
ANSWER:
d
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Chapter 17: Personal Selling and Sales Management
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15. A sales manager at Guilden Corporation, a manufacturer of consumer durable goods, instructed his new salesperson,
Rita, to sell five flat screen televisions per week. He informed her that, in addition to this, she was also expected to
identify ten potential customers. These instructions given to Rita are referred to as _____.
a.
referrals
b.
sales leads
c.
quotas
d.
touch points
ANSWER:
c
16. Which of the following statements is true of prequalification systems?
a.
They free sales representatives from the time-consuming task of following up on leads to determine need,
buying power, and receptiveness.
b.
They describe the ''homework'' that must be done by a salesperson before contacting the prospect.
c.
They use friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic
organizations to identify potential clients.
d.
They determine a customer's specific needs and wants and the range of options the customer has for satisfying
them.
ANSWER:
a
17. _____ is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to
develop long-term satisfaction through mutually beneficial partnerships.
a.
Price-based selling
b.
Adaptive selling
c.
Stimulus-response selling
d.
Relationship selling
ANSWER:
d
18. In the selling process, which of the following is true of the needs assessment of prospective clients by salespeople?
a.
It should be carried out when the salesperson is developing the sales proposal.
b.
It requires the salesperson be aware of regulation and legislation that affect the industry.
c.
It ignores the impact of competition on the demand of the product being sold.
d.
It does not give a comprehensive result for instances where relationship selling is used.
ANSWER:
b
19. Which of the following makes it necessary for salespeople to conduct a thorough and continued follow-up with the
clients?
a.
Conducting post-sales follow-up gives rise to cognitive dissonance.
b.
In present times, customers are more loyal toward brands and vendors now than before.
c.
Most businesses depend on repeat sales, which depend on follow-up by the salesperson.
d.
Buyers are more inclined to look for the best deal when they experience good post-sale follow-up.
ANSWER:
c
20. Laelle Inc., a leading manufacturer of industrial air conditioners, has developed a new air conditioner with high
cooling capacity. To identify potential clients who will be interested in the new air conditioner, the company has sent out
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pamphlets to many firms along with its contact details for anyone interested. This scenario illustrates _____.
a.
needs assessment
b.
lead generation
c.
sales presentation
d.
knowledge management
ANSWER:
b
21. Identify a true statement about sales force training.
a.
It is done by giving compensation to employees.
b.
It cannot occur during sales meetings, annual meetings, or during the course of everyday business.
c.
Training does not take place in the field or by using online modules.
d.
Conducting job training in the field via a live sales call provides real world experience for a trainee.
ANSWER:
d
22. Which of the following is a combination of sales automation and Internet technology that some marketers are using in
an effort to enhance customer satisfaction and bring in more business?
a.
The preapproach model
b.
The attribution model
c.
Geolocation home automation
d.
Automated e-mail follow-up marketing
ANSWER:
d
23. Personal selling is more important than advertising and sales promotion if the products being sold:
a.
are standardized.
b.
have many consumers.
c.
have a low value.
d.
are technically complex.
ANSWER:
d
24. In personal selling, costs of promoting a product or service can be controlled by:
a.
promoting a product to both qualified and non-qualified prospects.
b.
promoting undifferentiated sales messages toward prospective consumers.
c.
purchasing advertising and sales promotion in large amounts.
d.
adjusting the size of the sales force in one-person increments.
ANSWER:
d
25. Which of the following statements is true of traditional selling?
a.
It allows ample time for a detailed follow-up with customers after a sale.
b.
It results in more win-win transactions for salespeople than relationship selling.
c.
Minimal effort is placed on asking questions to identify customer needs.
d.
High emphasis is placed on matching customers' needs and wants to the benefits of the product.
ANSWER:
c
26. Maggie's Apparel Inc. manufactures apparel for men and women. It calls on other retailers to sell its products. The
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salespeople at Maggie's Apparel also travel to its customers' locations to finalize sales deals. In this scenario, the
salespeople at Maggie's Apparel are _____.
a.
business-focused salespeople
b.
consumer-focused salespeople
c.
opinion leaders
d.
late adopters
ANSWER:
a
27. _____ is the ultimate goal of a new trend in marketing that focuses on understanding consumers as individuals instead
of as part of a group.
a.
Organizational optimization
b.
Profit maximization
c.
Total quality management
d.
Customer relationship management
ANSWER:
d
28. Mandy's Inc. is a well-known supplier of industrial goods. While selling goods, it provides personalized benefits to
each customer. It focuses on developing trust over time instead of one-time sales. This is an example of _____.
a.
price-based selling
b.
relationship selling
c.
discount selling
d.
persuasive selling
ANSWER:
b
29. _____ occurs when a customer and a company representative exchange information and develop learning
relationships.
a.
Traditional selling
b.
An intervention
c.
Customer profiling
d.
An interaction
ANSWER:
d
30. _____ describes the ''homework'' that must be done by a salesperson before he or she contacts a prospect.
a.
Prequalification
b.
Preapproach
c.
Networking
d.
Cold calling
ANSWER:
b
31. Effective sales management begins with:
a.
determining sales goals.
b.
determining the most efficient structure for the sales force.
c.
specifying the sales force size.
d.
designing a compensation plan.
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ANSWER:
a
32. Which of the following statements is true of networking?
a.
It refers to a process in which a salesperson approaches potential buyers without any prior knowledge of the
prospects' needs or financial status.
b.
It refers to using friends, business contacts, coworkers, acquaintances, and fellow members in professional and
civic organizations to identify potential clients.
c.
It refers to a process that describes the ''homework'' that must be done by a salesperson before he or she
contacts a prospect.
d.
It refers to determining a customer's specific needs and wants and the range of options the customer has for
satisfying them.
ANSWER:
b
33. Fournotts Corp., an electronic equipment manufacturer, collects data about its customers through customer
interactions. On the basis of the data, the firm customizes its products and services according to the needs of the
appropriate customer segments. This is an example of effective _____.
a.
transaction management
b.
campaign management
c.
lead generation
d.
lead qualification
ANSWER:
b
34. Kay and Jenny's, a restaurant, implements a new system that identifies and gathers information about its regular
customers. It rewards these customers by giving them gift coupons and cash prizes. This is most likely an example of
_____.
a.
organizational optimization
b.
profit maximization
c.
total quality management
d.
customer relationship management
ANSWER:
d
35. Which of the following is part of defining the sales goal of a company?
a.
Assigning quotas to salespeople
b.
Evaluating the sales force
c.
Training new salespeople
d.
Designing the sales force structure
ANSWER:
a
36. Unlike consumer-focused salespeople, business-focused salespeople:
a.
require customers to come directly to a retail store.
b.
call on other companies to sell their products.
c.
shorten the sales process time.
d.
do not travel to customer locations.
ANSWER:
b
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Chapter 17: Personal Selling and Sales Management
37. Write a note on customer relationship management.
ANSWER:
Answers will vary. Customer relationship management (CRM) is the ultimate goal of a new trend in
marketing that focuses on understanding customers as individuals instead of as part of a group. To do so,
marketers are making their communications more customer specific using the CRM cycle and by developing
relationships with their customers through touch points and data mining. CRM was initially popularized as
one-to-one marketing. But CRM is a much broader approach to understanding and serving customer needs
than is one-to-one marketing.A CRM system assumes two key points. First, customers take center stage in
any organization. Second, the business must manage the customer relationship across all points of customer
contact throughout the entire organization. By identifying customer relationships, understanding the
customer base, and capturing customer data, marketers and salespeople can leverage the information not only
to develop deeper relationships but also to close more sales with loyal customers in a more efficient manner.
38. In the context of steps in the sales process, describe the methods of qualifying leads.
ANSWER:
Answers will vary. Lead qualification involves determining whether the prospect has three things:a.A
recognized need: The most basic criterion for determining whether someone is a prospect for a product is a
need that is not being satisfied. The salesperson should first consider prospects who are aware of a need but
should not disregard prospects who have not yet recognized that they have one. With a little more
information about the product, they may decide they do have a need for it. Preliminary questioning can often
provide the salesperson with enough information to determine whether there is a need.b.Buying power:
Buying power involves both authority to make the purchase decision and access to funds to pay for it. To
avoid wasting time and money, the salesperson needs to identify the purchasing authority and his or her
ability to pay before making a presentation. Organizational charts and information about a firm's credit
standing can provide valuable clues.c.Receptivity and accessibility: The prospect must be willing to see the
salesperson and be accessible to the salesperson. Some prospects simply refuse to see salespeople. Others,
because of their stature in their organization, will see only a salesperson or sales manager with similar
stature.
39. Briefly explain the impact of technology on personal selling.
ANSWER:
Answers will vary. E-business—buying, selling, marketing, collaborating with partners, and servicing
customers electronically using the Internet—has had a significant impact on personal selling. Virtually all
large companies and most medium and small companies are involved in e-commerce and consider it to be
necessary to compete in today's marketplace. For customers, the Web has become a powerful tool, providing
accurate and up-to-date information on products, pricing, and order status. The Internet also facilitates cost-
effective processing of orders and service requests. Although on the surface the Internet might appear to be a
threat to the job security of salespeople, the Web is actually freeing sales reps from tedious administrative
tasks like shipping catalogs, placing routine orders, or tracking orders. This leaves them more time to focus
on the needs of their clients.
40. Differentiate between traditional personal selling and relationship selling.
ANSWER:
Answers will vary. Traditional personal selling methods attempted to persuade the buyer to accept a point of
view or convince the buyer to take some action. Frequently, the objectives of the salesperson were at the
expense of the buyer, creating a win-lose outcome. Although this type of sales approach has not disappeared
entirely, it is being used less and less often by professional salespeople.By contrast, modern views of
personal selling emphasize the relationship that develops between a sales-person and a buyer. Relationship
selling, or consultative selling, is a multistage process that emphasizes personalization, win-win outcomes,
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Chapter 17: Personal Selling and Sales Management
enhancing the customer's bottom line. The end result of relationship selling tends to be loyal customers who
purchase from the company time after time, often with an increased share-of-purchase. A relationship selling
strategy focused on retaining customers is often less expensive to a company than having to constantly
prospect for and sell to new customers. Relationship selling provides many advantages over traditional
selling in the consumer goods market. Still, relationship selling is more often used in selling situations for
industrial-type goods, such as heavy machinery and computer systems, and services, such as airlines and
insurance, than in selling situations for consumer goods.
