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Name:
Class:
Date:
chapter 17
Indicate whether the statement is true or false.
1. It's often less expensive to attract new customers than to market different products to existing customers.
a.
True
b.
False
2. In a cold calling situation, the approach and presentation often take place at the same time.
a.
True
b.
False
3. A customer shopping at Sports Authority for new running gear is assisted by a salesperson in the shoe
department. This is an example of inside selling.
a.
True
b.
False
4. Girl Scouts selling cookies door-to-door exemplify cold-call selling.
a.
True
b.
False
5. Team selling creates relationships between companies rather than between individuals.
a.
True
b.
False
6. An effective salesperson uses order-processing techniques to expand an existing business relationship.
a.
True
b.
False
7. Push money refers to cash incentives paid by manufacturers to wholesalers to stock new products.
a.
True
b.
False
8. Over-the-counter selling is a lower-cost alternative compared to telemarketing or online selling.
a.
True
b.
False
9. Creative selling is typically utilized to develop new business by adding new customers or introducing new
products or services.
a.
True
b.
False
10. The steps in a sales process follow the AIDA (attention, interest, desire, action) concept.
a.
True
b.
False
11. Network marketing is a form of field selling in customers’ homes.
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a.
True
b.
False
12. Trade shows provide an effective opportunity to introduce a new product and to generate sales leads.
a.
True
b.
False
13. A straight salary plan for sales representatives gives management more control over how sales personnel
allocate their efforts.
a.
True
b.
False
14. An expensive gift could be interpreted as a bribe if given in anticipation of doing business with a buyer or
company.
a.
True
b.
False
15. Order processing becomes the primary task in situations in which needs are readily identified and are
acknowledged by the customer.
a.
True
b.
False
16. Kelly is a dentist who knows that her patients are more likely to take home pens inscribed with her name and
phone number instead of an ordinary business card. The inscribed pens distributed by Kelly for her practice
represent specialty advertising.
a.
True
b.
False
17. Recruiting and selecting successful salespeople are among the greatest challenges faced by a sales manager.
a.
True
b.
False
18. Personal selling and advertising are part of the marketing activities involved in a sales promotion.
a.
True
b.
False
19. A sweepstakes chooses winners from a group of people who have purchased the product.
a.
True
b.
False
20. An assessment center is a testing approach used by sales managers to measure a candidate’s skills,
knowledge, and ability.
a.
True
b.
False
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chapter 17
21. A national grocery store runs an advertisement offering “buy one get one free” on packages of Thomas’
English muffins to consumers. This is an example of a trade promotion.
a.
True
b.
False
22. Online sellers can quickly communicate the benefits and features of their products to customers through
consultative selling.
a.
True
b.
False
23. Relationship selling involves regular contacts between sales representatives and customers over an extended
period.
a.
True
b.
False
24. Existing customers of a firm whose business problems require complex solutions are likely to be best served
by telemarketers in the firm.
a.
True
b.
False
25. In creating an ethical environment, employees prefer a complete list of “do’s and don’ts” over an open
environment where they can approach management with ethics questions.
a.
True
b.
False
26. A hotel provides a toll-free number to its customers which they can use to obtain information and make
reservations. This is an example of inbound telemarketing.
a.
True
b.
False
27. Due to intense competition in the market, present-day sales promotion techniques mainly focus on providing
short-term incentives to customers in order to obtain a purchase.
a.
True
b.
False
28. Instituting a companywide code of ethics helps guide salespeople to ethical behavior in personal selling.
a.
True
b.
False
29. A salary is a payment tied directly to the sales or profits that a salesperson generates.
a.
True
b.
False
30. An important advantage of personal selling is that it gives the customer the opportunity to try a product
before making a purchase.
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a.
True
b.
False
31. Sales promotions encourage immediate action as they impose limited time frames.
a.
True
b.
False
32. To create strong, long-lasting relationships with customers, salespeople must demonstrate high ethical
standards and communicate honestly at all times.
a.
True
b.
False
33. A firm must define its product in terms of what it can do for a customer before beginning its prospecting
effort.
a.
True
b.
False
34. Consultative selling involves offering multiple goods or services to the same customer.
a.
True
b.
False
35. Coupons are the most widely used forms of consumer-oriented sales promotion.
a.
True
b.
False
36. Manufacturers pay a handling fee to retailers to help consumers redeem coupons at their outlets.
a.
True
b.
False
37. Personal selling is an important component of the promotional mix for a firm that markets to relatively few
potential customers.
a.
True
b.
False
38. Point-of-purchase advertising encourages retailers to improve on-site merchandising.
a.
True
b.
False
39. Salespeople involved order-processing tasks persuade their wholesale or retail customers to carry more
complete inventories of their firm’s merchandise.
a.
True
b.
False
40. Team selling offers a distinct competitive advantage in sales situations that call for detailed knowledge of
new, complex, or rapidly changing technologies.
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a.
True
b.
False
41. Precall planning involves making unsolicited sales calls on randomly selected prospects.
a.
True
b.
False
42. Cross-selling services and products to existing customers is less expensive than trying to find new customers
for the same services.
a.
True
b.
False
43. Missionary selling is an indirect sales approach that focuses on promoting goodwill for the firm.
a.
True
b.
False
44. The follow-up step in the sales process often determines whether an individual who has made a recent
purchase will become a repeat customer.
a.
True
b.
False
45. Inside sales reps support field representatives in building strong customer relationships.
a.
True
b.
False
46. A Frito-Lay driver who covers a geographic route of grocery stores taking orders, restocking shelves, and
removing products past the expiration date is classified as a field salesperson.
a.
True
b.
False
47. A salesperson should be judged on the basis of potential ability rather than the actual sales performance.
a.
True
b.
False
48. Creative selling mainly deals with maintaining existing business with customers.
a.
True
b.
False
49. Business firms that market highly technical and complex products will have a specialized sales force for
each major category of the firm’s products.
a.
True
b.
False
50. Firms spend more on consumer-oriented sales promotions than on trade promotions.
a.
True
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b.
False
51. Personal selling is a less important component in the promotional mix when individual orders account for
large amounts of revenue.
a.
True
b.
False
52. The first presentation being made to a potential customer is likely to be more detailed than that used for an
existing customer.
a.
True
b.
False
53. Sales promotions often lead to sales and profit growth in the long run.
a.
True
b.
False
54. Closing, in which the salesperson asks the customer for a buying commitment, is the last step in the sales
process.
a.
True
b.
False
55. A firm that has an existing relationship with a customer is allowed to call that customer even if the customer
has signed up for the national Do Not Call Registry.
a.
True
b.
False
56. Today's successful sales representative focuses on creating value for their own firm and generating revenue
by producing quick sales.
a.
True
b.
False
57. Providing technical and operational assistance is a significant part of missionary selling.
a.
True
b.
False
58. Firms engage in precall planning to understand the needs and preferences of the customer before making a
presentation.
a.
True
b.
False
59. Team selling is usually a temporary arrangement intended to serve the customer from the initial contact
through the initial sale.
a.
True
b.
False
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60. A sales talk that presents a product or service in terms that are meaningful to the buyer is referred to as a
“features-benefits” presentation.
a.
True
b.
False
61. Direct mail and advertising campaigns are effective in identifying prospective customers.
a.
True
b.
False
62. A bonus pack is an item given free or at a reduced cost with purchases of other products.
a.
True
b.
False
63. A sales quota is often tied to the compensation system.
a.
True
b.
False
64. Listening to customers and using problem-solving skills to meet customer needs is called advisory selling.
a.
True
b.
False
65. Advertising specialties help reinforce previous or future advertising and sales messages.
a.
True
b.
False
66. The effectiveness of a salesperson is measured entirely on the basis of the sales volume and profitability.
a.
True
b.
False
67. Field selling is more expensive than other selling options and often requires considerable technical expertise.
a.
True
b.
False
68. To be identified as a qualified prospect, a customer must have both the resources and the authority to make
purchase decisions.
a.
True
b.
False
69. Taking steps to determine that a potential customer has the need, financial capability, and authority to make
a purchase is called canvassing.
a.
True
b.
False
70. The follow-up step in the sales process allows the salesperson to psychologically reinforce the customer’s
original decision to buy.
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a.
True
b.
False
71. Creative selling can generate buzz for a product.
a.
True
b.
False
72. A salesperson assigned to answer the telephone and take orders or answer customers’ questions is involved
in outbound telemarketing.
a.
True
b.
False
73. Sampling produces a higher response rate compared to other forms of promotions.
a.
True
b.
False
74. If a product or service being sold requires relatively little special handling, marketers typically emphasize
personal selling in their promotional mix.
a.
True
b.
False
75. Over-the-counter personal selling efforts are frequently supplemented with other promotions such as special
sales events, new product introductions, and direct-mail appeals.
a.
True
b.
False
76. Salespeople involved in creative selling use well-planned strategies to seek new customers by proposing
innovative solutions to customer’s needs.
a.
True
b.
False
77. Over-the-counter selling usually requires the customer to take the initiative and travel to the seller's place of
business.
a.
True
b.
False
78. The concept of span of control refers to the number of sales representatives who report to first-level sales
managers.
a.
True
b.
False
79. Sales representatives often mimic or imitate the behavior of other sales representatives or managers in their
company. If one or more individuals displays unethical behavior and is not reprimanded for their actions, other
sales representatives or managers may be tempted to engage in similar unethical actions.
a.
True
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b.
False
80. Sales quotas are specified sales or profit targets that salespeople are expected to achieve.
a.
True
b.
False
81. An approach is a salesperson’s initial contact with the customer.
a.
True
b.
False
82. Most of today’s salespeople are limited to performing tasks in a single category.
a.
True
b.
False
83. A straight salary plan could reduce the incentive to find new markets and land new accounts.
a.
True
b.
False
84. Personal selling is more costly and time consuming compared to other types of promotion.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
85. Which of the following is a customer-oriented sales promotion technique?
a.
Point-of-purchase advertising
b.
Dealer incentives
c.
Trade shows
d.
Specialty advertising
86. Which of the following types of personal selling relies on lists of family members and friends of the
salesperson who organizes a gathering of potential customers for an in-home demonstration of products?
a.
Missionary selling
b.
Cross-selling
c.
Network marketing
d.
Inbound marketing
87. Sales promotion techniques were originally intended:
a.
to promote the company’s goodwill.
b.
as short-term incentives aimed at producing immediate buying responses.
c.
as international promotions designed to replace advertising.
d.
to build long-lasting customer relationships.
88. Prior to making the approach to a potential customer, the salesperson should:
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a.
outline objections and effective responses.
b.
break down product features and benefits by category.
c.
understand the way in which the industry operates.
d.
collect and analyze information about the potential customer.
89. In the context of the analysis of sales tasks, when technical support personnel help to install, set up, and
maintain equipment for one of their customers, they are:
a.
conducting the activity of qualifying prospects.
b.
engaging in missionary sales activities.
c.
undertaking the activity of order processing.
d.
involved in creative selling.
90. The process of qualifying a sales prospect involves:
a.
gathering information about the prospect to make initial contact go more smoothly.
b.
determining a potential customer’s needs, income, and purchase authority.
c.
defining the company’s product in terms of what it can do for the customer.
d.
making the initial contact with the prospect.
91. A _____ is a payment tied directly to the sales or profits a salesperson achieves.
a.
fixed pay
b.
commission
c.
salary
d.
periodic payment
92. Today's salesperson often employs a combination of personal selling approaches in order to provide high
levels of customer service and satisfaction. What is one advantage of team selling in business-to-business sales
situations?
a.
Team selling forms relationships between companies rather than between individuals.
b.
Team selling capitalizes on a firm's strengths by selling to existing customers.
c.
Team selling emphasizes being well prepared for a sales call and presenting professionally.
d.
Team selling builds company loyalty.
e.
Team selling helps develop the patience necessary to cooperate with sales team members.
93. Which of the following factors will increase the importance of personal selling in the promotional mix?
a.
Increasing emphasis on productivity
b.
Lower priced products
c.
Standardized products that are easy to understand
d.
Transactions that seldom involve trade-ins
94. A customer-focused firm wants its sales representatives to:
a.
work on commission because it motivates them to engage in quick sales.
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b.
form long-lasting relationships with buyers by providing high levels of customer service.
c.
focus on persuading customers to buy products rather than solving issues.
d.
work as separate entities independent of the sales team.
95. Which of the following is a characteristic of a corporate culture that encourages ethical behavior?
a.
Salespeople focus on short-term or quick sales.
b.
Management focuses only on sales and profits.
c.
Open communication exists between employees and managers.
d.
Management announces discounts on bulk sales to wholesalers.
96. Which of the following is the most important reason for manufacturers to use sales promotion?
a.
To appeal to marketing intermediaries than final consumers
b.
To offer extra incentives to customers to buy products
c.
To overcome poor brand images and product deficiencies
d.
To create awareness of their products among consumers
97. _____ is a personal selling approach that focuses on establishing a sustained buyer-seller relationship with
customers through regular contacts over an extended period.
a.
Telemarketing
b.
Team selling
c.
Inside selling
d.
Relationship selling
98. _____ refers to a personal selling approach in which customers comes to the seller's place of business to buy
products largely on their own initiative.
a.
Order processing
b.
Outbound telemarketing
c.
Over-the-counter selling
d.
Relationship selling
99. In the _____ stage of the sales process, the salesperson contacts the potential customer for the first time.
a.
precall planning
b.
prospecting
c.
approach
d.
qualifying
100. Alpha Trendz, a clothing and apparel manufacturer, carefully studies information available on the Internet.
It also checks computerized databases and trade show exhibits before launching its latest line of designer
clothes. The company is in the _____ stage of the sales process.
a.
order processing
b.
missionary selling
c.
planning
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d.
prospecting
101. Carlos has always been interested in the medical profession and took advanced biology and human
anatomy courses in college so he could pursue his dream of working in the medical device industry. He's now
employed with Stryker who is a leading medical device company offering specialized products such as artificial
joints and surgical tools. Carlos works in the orthopedics division and often demonstrates his company's
products with surgeons in the operation room at hospitals and enjoys the opportunity to train physicians on new
equipment or devices. Carlos has an office in his apartment and works with physicians, hospitals and medical
offices in his 2-state territory. Stryker provides a company car, computer, and expense account so Carlos can
minimize his out-of-pocket expenses when traveling to meet with prospects and customers. Which of the
following sales channels is most appropriate to describe Carlos' position with Stryker?
a.
field selling
b.
over-the-counter selling
c.
inside selling
d.
outbound telemarketing
102. Which of the following functions poses a great challenge to sales managers?
a.
Training
b.
Recruitment and selection
c.
Supervision
d.
Organization
103. A _____ is a specially packaged item that gives the purchaser a larger quantity at regular price.
a.
rebate
b.
premium
c.
sample
d.
bonus pack
104. Which of the following can be classified as a creative approach to over-the-counter selling?
a.
Clothing retailer Lord and Taylor expanding the capabilities of the fitting rooms in its stores
b.
Gap stores providing virtual gift cards to customers
c.
Lord and Taylor promising its online customers product delivery in five business days
d.
Gap making its web portal highly efficient to save its customers search time
105. Which of the following financial incentives is designed to give retailers discounts on goods?
a.
Rebate
b.
Buying allowance
c.
Commission
d.
Promotional allowance
106. Bailee recently joined a direct sales company as an independent contractor and earns 20% on product sales.
She's excited about the opportunity to earn additional income by using social media to market her products to
friends. Recently, she was a top 10 producer and sold $1000 in product which translates to an extra $200 in
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income for Bailee. The type of compensation Bailee receives from the company is called:
a.
commission
b.
salary
c.
quota
d.
incentive
107. A salesperson of a beer company determines that a retail store has only 10 cases of beer left in stock when
it normally carries an inventory of 60. The salesperson informs the store manager of the inventory situation.
Which of the following sales tasks is being performed by this salesperson?
a.
Order processing
b.
Creative selling
c.
Missionary selling
d.
Planning
108. _____ refers to the postsale activities employed by salespeople that determine whether an individual who
made a recent purchase will become a repeat customer.
a.
sales maintenance
b.
post-closing
c.
dissonance reduction
d.
follow-up
109. Draymond worked in the hospitality industry during college and had extensive experience in food service
and dining centers. He obtained a sales position with Hormel and was attracted to the position because his job
primarily involved promotion of Hormel's various products to restaurants, hospitals and other institutional
buyers in cooperation with local distributors such as Sysco Foods. Draymond enjoys the opportunity to work as
a team with his Sysco Foods sales representatives who often ask him to join them on their sales calls to
customers. Draymond does not take orders from customers for Hormel products but works collaboratively with
Sysco Foods whose representatives work directly with customers to identify and fulfill their needs for Hormel
products. Draymond's position is best classified as _______ selling.
a.
missionary
b.
creative
c.
telemarketing
d.
inside
110. _____ is a sales task in which salespeople use well-planned strategies to seek new customers by proposing
innovative solutions to customers’ needs.
a.
Consultative selling
b.
Creative selling
c.
Missionary selling
d.
Order processing
111. Julia noticed that her favorite shampoo is being packaged in a slightly larger bottle for the same price as the
standard size bottle. This is an example of a:
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a.
bonus pack.
b.
premium.
c.
sample.
d.
de facto rebate.
112. The use of technology in order-processing tasks can lead to an increase in:
a.
the accuracy of processing an order.
b.
the demand for the number of salespeople.
c.
the time required to process an order accurately.
d.
the sales quota to be fulfilled by each salesperson.
113. Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop and automotive
service providers as well as insurance agents. Chelsey knows that many automobile owners have car rental
riders as part of their automobile insurance and when their car is damaged from a storm or accident, they could
receive a rental car while their vehicle is being repaired. When Chelsey meets with her customers, she typically
promotes the features and benefits of Enterprise such as how Enterprise provides exceptional service and goes
above and beyond to pick-up customers at their preferred location and give them their rental vehicle. In
addition, most of Enterprise's fleet of vehicles are less than 2 years old and are well maintained to provide a
comfortable driving experience. Chelsey tells her agent and body shop owner clients that by using Enterprise's
services, their customers will have higher levels of customer satisfaction with their repair experience and that
translates into loyalty for the insurance agent. During which step in the personal selling process will Chelsey
share this information?
a.
presentation
b.
demonstration
c.
prospecting
d.
closing
114. Scott has an 8-year-old Labrador Retriever who's starting to suffer from arthritis. On a recent trip to his
veterinarian, the doctor recommended that Scott start using a prescription anti-inflammatory and pain
medication for his dog. The veterinarian thinks a new drug, Previcox is extremely effective but relatively
expensive at $1 per dose which is given daily. The drug sales representative has provided the veterinarian with
a promotion opportunity where new customers can receive a VISA gift card of $12 when a new prescription is
filled. The drug company is offering the veterinarian and their customers a(n):
a.
rebate
b.
contest
c.
coupon
d.
trade allowance
115. In the sales process, a person who not only needs a product, but has the resources and authority to purchase
it, is a(n):
a.
existing customer.
b.
innovator.
c.
potential customer.
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d.
interested customer.
116. Which of the following statements is accurate about sales promotion?
a.
Sales promotion can increase sales by providing extra purchasing incentives.
b.
Sales promotion encompasses personal selling.
c.
Sales promotion has increased dramatically, primarily at the expense of personal selling.
d.
Product characteristics are not relevant when deciding on sales promotions.
e.
Sales promotion encompasses public relations.
117. Which of the following is true of missionary selling?
a.
It is mainly used to persuade wholesalers and retailers to carry complete inventories of the firm’s
merchandise.
b.
It is used by salespeople to offer low value sales incentives to their customers for superior
performance.
c.
It is mostly used by nonprofit-making organizations for educating people about their cause.
d.
It is a form of direct marketing.
118. In her role as sales manager, Julie tells her team to always behave ethically on the job. However, Barbara sees Julie
talk a customer into buying an unneeded product just because the sale will fulfill her quarterly quota. If Julie really wants
to create a culture that encourages ethical behavior, she must:
a.
Lead by example
b.
Reduce quotas
c.
Increase commissions
d.
Tell her sales team to avoid unethical decision making
e.
Better understand what products her customers need
119. The number of sales representatives who report to a first-level sales manager is referred to as:
a.
span of control.
b.
locus of control.
c.
sphere of influence.
d.
hierarchy.
120. With regard to sales promotion, magazines, newspapers, and package inserts are the standard methods of
distributing:
a.
coupons.
b.
samples.
c.
premiums.
d.
specialty items.
121. Which of the following statements is FALSE concerning personal selling in today's business environment?
a.
career opportunities for recent college graduates pursuing sales is projected to decline in the future
b.
computer technologies are vital tools for sales professionals
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c.
today's sales representative focuses on building long-term relationships
d.
many salespeople now operate in sales teams
122. Which type of sales promotion is intended to capture the impulse purchase?
a.
Trade allowances
b.
Trade shows
c.
Point-of-purchase displays
d.
Push money
123. The business department in Skandsoft Technologies, a computer software company, consists of technically
trained, nonmarketing experts such as engineers or programmers. A salesperson continues to play the lead role
in most sales situations while technical experts add value to the sales process. Which form of personal selling is
being used by this organization?
a.
Consultative selling
b.
Team selling
c.
Cross-selling
d.
Inside selling
124. When visiting one of his major accounts, Matt is accompanied by finance and product specialists. These
specialists are able to answer specific questions so that a customer can make a purchase decision. This is an
example of _____.
a.
transaction selling
b.
team selling
c.
cross-selling
d.
missionary selling
125. The most expensive sales method overall is:
a.
over-the-counter sales, largely because of the high overhead in retail operations.
b.
inbound telemarketing because of the technology costs.
c.
outbound telemarketing because of the high rejection rate from customers who avoid telemarketers.
d.
field selling, largely because of the travel costs of sales personnel.
126. Megan sells a high-end line of cosmetics. All of her customers are family members and friends. She sells
these products through an informal gathering at her home, where she demonstrates the products and explains
how to use them. Some of her existing customers share their experiences and list the benefits of the product.
This type of personal selling is known as:
a.
indirect selling.
b.
network marketing.
c.
inside selling.
d.
over-the-counter marketing.
127. What are the typical first and last steps in the personal selling process?
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a.
prospecting; closing the sale
b.
approach; closing the sale
c.
prospecting; follow-up
d.
approach; follow-up
e.
presentation; follow-up
128. Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage
the “tech hotline.” These individuals not only answer technical questions from customers, they also identify
customer needs and recommend products that can fill those needs. They have the ability to initiate and close
sales on the spot. These individuals are essentially participating in:
a.
market analysis.
b.
inside selling.
c.
network marketing.
d.
outside sales.
129. Cutco is a manufacturer of high-end cutlery for the home chef and markets their products through a sister
company, Vector Marketing who often contracts with college students who are independent sales
representatives for the company. Vector provides free product and sales training to their independent sales
representatives and encourages them to take food with them on sales calls such as apples, cucumbers, tomatoes
or other fresh produce so that prospective customers can actually use the knives and experience the Cutco
difference. In addition, Cutco is relatively famous for their kitchen shears which can cut through a penny and
during training, all Vector Marketing representatives are taught how to show the versatility and value of the
shears. Which step in the sales process would a Vector Marketing representative have customers use the knives
or kitchen shears?
a.
demonstration
b.
presentation
c.
closing
d.
follow-up
130. A salesperson from Healthcare Pharmaceuticals provided free samples of the company’s latest line of pain
relievers to retailers in an effort to promote the firm’s goodwill during a sales approach. Later, a wholesaler
took orders and delivered the merchandise. Which of the following sales tasks had been performed by the
salesperson?
a.
Order processing
b.
Creative selling
c.
Missionary selling
d.
Networking
131. Which of the following might be classified as an unethical sales practice?
a.
persuading a customer to purchase a product or service that does not meet a customer's need
b.
providing only the positive attributes of a product's capabilities
c.
using a customer success story as part of a sales presentation
d.
asking customers for referrals to other potential customers who may have a similar need for a product
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or service
132. Bits Inc., a manufacturer of server processors, sends out its trained salespeople to inform prospective and
existing customers about its latest range of processors and provide demonstrations. The promotional effort
adopted by this company is an example of:
a.
push-cash selling.
b.
field selling.
c.
networking.
d.
over-the-counter selling.
133. Your company wants to expand the specialized market to which it sells athletic gear. The general public
may be drawn to your items because they are attractive and popular, but most people will balk at the high price
tag for features they consider superfluous. You decide to contact strategic partners who can recommend your
product, and help explain the concept behind workout gear that regulates body temperature, and why that
feature is not only valuable but worth the extra cost. What personal selling strategy will be beneficial to you in
your upcoming marketing campaign?
a.
relationship selling
b.
virtual sales team selling
c.
cross-selling
d.
consultative selling
e.
personalized selling
134. Your clients don't need to be sold a product—they have already subscribed to your expensive premium
service. But they do need to be able to call on you when they have a problem with the service or when they
require special consideration. You provide technical support, solve problems, and make sure the customer is
included in special events that your company sponsors. You also make certain that everyone who is a premium
subscriber is sent an annual gift, compliments of your company. Because you don't meet your customers face-
to-face, you sometimes call yourself an electronic concierge! What kind of sales are you involved in?
a.
inbound telemarketing
b.
field selling
c.
over-the-counter selling
d.
inside selling
e.
network selling
135. As head of sales for your firm, one of your key supervision-related responsibilities is determining an optimal span of
control. You consider all of the following factors except:
a.
The complexity of your sales team's work activities
b.
The interdependence of individual salespeople
c.
The extent of each salesperson's training
d.
How much each salesperson is paid
e.
The ability of individual sales managers
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136. As a new salesperson, you are concerned with how your decisions will affect your customers, your sales
team, and your company. You notice that many of your workmates accept gifts and perks from clients, even
though that practice is frowned upon by management and discouraged according to what you have read in the
handbook. Some colleagues have been reprimanded for accepting gifts from customers just in the short time
you have been with the company. What will be your focus regarding ethical business practice?
a.
unreported ethics violations
b.
lax example of management
c.
personal ethical behavior
d.
permissive corporate culture
e.
lack of a written code of ethics
137. Brandon is a sales manager and often is involved in recruiting new sales representatives to join the firm.
He has been trained in conducting behavioral-based interviews so he can identify whether candidates possess
the appropriate characteristics to be successful in a consultative sales position. Which of the following
characteristics would MOST LIKELY be important to Brandon during his interviews?
a.
listening skills
b.
entertaining personality
c.
mathematical and quantitative skills
d.
physical attractiveness
138. A cosmetics manufacturer decides to educate its customers about its new product during commercial breaks
in a popular TV reality show. This represents which of the following forms of marketing?
a.
Personal selling
b.
Network marketing
c.
Publicity
d.
Advertising
139. Drew is a sales manager with Fastenal - an industrial distributor of supplies for manufacturing, facility
managers, and other industrial customers. He currently supervises 7 people and is wondering the typical or
optimal number of first-line sales representatives that he should supervise. Based on the text, what do you
recommend as the optimal number for him to supervise?
a.
6
b.
5
c.
8
d.
10
140. Most firms that use a customer-oriented organizational structure to strengthen their relationship with the
largest customers adopt:
a.
geographic organization.
b.
decentralization.
c.
a vertical structure.
d.
a national accounts organization.
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141. The trade-oriented promotion that consists of a display or other promotion located near the site of the actual
buying decision is known as:
a.
specialty advertising.
b.
missionary selling.
c.
push-on-premises display.
d.
point-of-purchase advertising.
142. Which of the following is a sales promotion technique that places the manufacturer’s name, address, and
marketing message on useful articles that are then distributed to target customers?
a.
Sampling
b.
Point-of-purchase advertising
c.
Trade shows
d.
Specialty advertising
143. In the _____ stage of the sales process, a salesperson describes a product’s features and relates them to the
customer’s needs.
a.
approach
b.
recall
c.
closure
d.
presentation
144. As a field salesperson for a firm that builds custom software for large corporations, Fred relies heavily on
consultative selling. His reasons include all of the following except:
a.
Fred's product is likely to be complicated and high-priced
b.
His buyers are likely to be knowledgeable
c.
His buyers are likely to be cost-conscious
d.
He wants to create long-term customers
e.
To meet his quota, he aims to close quick sales
145. When you choose a career in personal selling, you are promoting your company and the products or
services it offers. How do you communicate the advantages of your goods and services over those of the
competition?
a.
Be vibrant and personable; focus on making a profit; direct major resources at advertising; be
professional.
b.
Focus on efficiency; know the competition and the industry; be professional; follow through with
customers.
c.
Know the industry and the competition; focus on advertising; be vibrant and professional; exceed
customer expectations.
d.
Focus on the customer; follow through; know the industry and the competition; exceed customer
expectations.
e.
Follow through with customers; be professional; know the competition; direct major resources to
advertising.
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146. The first step in the sales process is to:
a.
determine the potential customers.
b.
identify the prospective customers.
c.
advertise the product.
d.
approach the potential customer.
147. Which of the following trade promotion techniques give especially effective opportunities to introduce new
products and generate sales leads?
a.
Dealer incentives
b.
Point-of-purchase advertising
c.
Trade shows
d.
Specialty advertising
148. A sales rep’s actual sales relative to sales potential is relevant to the sales manager in which of the
following phases of the sales management process?
a.
managing sales territories
b.
motivating salespeople
c.
compensating salespeople
d.
training sales people
e.
controlling and evaluating sales force performance
149. After determining that a prospective customer is a good candidate to actually make a purchase, the
salesperson will want to gather as much information about the customer as possible. This step in the sales
process is known as:
a.
presales research.
b.
prospecting.
c.
precall planning.
d.
qualifying.
150. Sales managers can best foster an ethical work environment by:
a.
closely monitoring sales representatives by recording their phone calls.
b.
sending salespeople to sensitivity training.
c.
letting employees know what is expected of them.
d.
taking strict action against employees who are unethical in their behavior.
151. The sales manager of your fitness center has convinced several members to buy the center's nutritional counseling
service as well as its personal training package. You are pleased at this accomplishment in ____ selling.
a.
Cross
b.
Field
c.
Upstream
d.
Downstream
e.
Inbound
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152. When personal selling efforts use telephone technology in a sales approach where the sales representative
initiates the calls, it is known as _____ telemarketing.
a.
inbound
b.
proactive
c.
network
d.
outbound
153. The overall direction and control of the personal selling effort is in the hands of a firm’s:
a.
board of directors.
b.
sales analysts.
c.
existing customers.
d.
sales managers.
154. You are the head of sales training for a major financial services firm in New York City. You are conducting
a sales training class for a group of new trainees. You are a strong believer in using a structured approach to
personal selling.
Based on this information, which of the following personal selling process steps are you going to tell the
trainees to perform first?
a.
develop a database of potential customers
b.
develop an engaging sales presentation
c.
practice closing the sale
d.
develop a prospect follow-up checklist
e.
analyze information about potential customers’ needs
155. You have gotten quite a few complaints recently from unhappy clients, among them the following: One
customer feels that the salesperson was not transparent about contractual issues; another client feels like he was
taken advantage of because English is his second language; and a third client feels like he was pressured into a
purchase without having sufficient time to try out the product. You want to emphasize to your sales team the
importance of upholding the ethical business practices that are characteristic of your company. What can you do
to encourage honesty and ethical behavior?
a.
establish reasonable customer expectations
b.
arrange for an ethics and diversity training workshop
c.
screen new applicants for the way in which they deal with ethical issues
d.
encourage salespeople to report ethics violations to you
e.
set the proper example of ethical business practices
156. Since each purchase decision possesses unique circumstances, presentations are:
a.
usually flexible and can be modified to suit customer needs.
b.
often prepared in detail ahead of time.
c.
generally somewhat negative and disorganized to many potential clients.
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d.
usually short on detail, lacking current price quotes and specifications.
157. A manufacturer wants to increase purchase rates of his product and reward those consumers who make
multiple purchases. He decides to use a consumer-oriented sales promotion that has an expiration date and
requires the purchaser to submit a proof of purchase. Which sales promotion will the manufacturer use?
a.
bonus pack
b.
trade allowance
c.
coupon
d.
rebate
e.
sweepstakes
158. Which of the following will improve the quality of the presentation used for approaching a prospective
customer?
a.
Using complex graphics to explain product features
b.
Making the presentation precise without going into product price details
c.
Focusing on educating the prospective customer about the firm’s goodwill rather than on product
features
d.
Using precollected information for tailoring the presentation to match the customer’s needs
159. One important advantage of personal selling over most advertising is:
a.
the cost factor; personal selling is much cheaper.
b.
the ability to actually demonstrate the good or service.
c.
the minimal dependence on technology.
d.
the low requirement for skilled salespeople.
160. _____ explains that motivation depends on the aspirations people have of their ability to perform a job, and
how performance relates to attaining rewards they desire.
a.
Marketing research
b.
Maslow's hierarchy of needs
c.
Performance theory
d.
Expectancy theory
161. Jamie works for a local bank. Whenever a new customer opens a checking account, Jamie makes sure to
mention some of the other financial services the bank offers. Jamie is engaged in:
a.
cross-selling.
b.
team selling.
c.
transaction selling.
d.
virtual selling.
162. When a considerable amount of analytical decision making by the customer is involved in purchasing a
product or service, the salesperson will probably use:
a.
missionary selling.
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b.
telemarketing.
c.
creative selling.
d.
inside selling.
163. You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would
love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in
the sales process?
a.
Prospecting
b.
Qualifying
c.
Approach
d.
Presentation
e.
Demonstration
164. Because Signal Sales is losing money, its marketing director has been told to cut selling costs. While she is
unenthusiastic, the director knows that her best approach is to shift sales personnel out of the _____ channel into the
_____ channel.
a.
Field selling, online selling
b.
Field selling, over-the-counter
c.
Over-the-counter selling, field selling
d.
Online selling, field selling
e.
Online selling, over-the-counter selling
165. When products require creative efforts on the part of the salesperson such as extensive explanation and
interaction, the best sales method is usually:
a.
telemarketing.
b.
field selling.
c.
over-the-counter selling.
d.
indirect selling.
166. Which of the following is a principal method used in sales training?
a.
In-house classes
b.
Application screening
c.
Aptitude tests
d.
Assessment center
167. The compensation package for sales personnel that gives management more control over how sales
personnel allocate their efforts, but may reduce the incentive to expand sales, is the:
a.
pure commission program.
b.
salary plus bonus system.
c.
straight salary plan.
d.
salary plus commission system.
168. Telemarketers who combine field selling with a strong customer orientation using both inbound and
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outbound communications are engaging in:
a.
customer sampling.
b.
inside selling.
c.
relationship marketing.
d.
over-the-counter selling.
169. The criteria for sales evaluations have changed to include customer satisfaction, profit contribution, and
customer retention as measures of success. This change was motivated by:
a.
complaints from upper-level management about the cost of commission-based compensation
programs.
b.
difficulty in recruiting competent employees because of the variability of sales personnel's
compensation.
c.
reluctance to encourage sales personnel to develop new accounts.
d.
an increasingly long-term orientation that results from greater quality management and customer
relationship building efforts.
170. Although research shows that most consumers dislike the practice of telemarketing and more than 220
million have signed up for the national Do Not Call Registry, organizations still use telemarketing because:
a.
it provides employment to a large number of people.
b.
it guarantees a sales order with every call.
c.
it is cost effective; the average call costs are low.
d.
it does not require experienced and trained sales personnel.
171. What is the major determinant of a successful salesperson?
a.
He or she is college-educated.
b.
He or she is customer-oriented.
c.
He or she is technology-proficient.
d.
He or she aspires to higher career goals.
e.
He or she has a competitive spirit.
172. Which of the following products requires a high degree of creative selling?
a.
Flat screen TVs
b.
Gasoline
c.
Laundry detergent
d.
Ballpoint pens
173. Brittany is a sales representative with CDW, an information technology reseller. She is a specialist for the
education market and contacts her customers who are typically information technology directors for K-12
schools and higher education. Her territory includes the entire United States and she is able to have flexible
hours since some days she may arrive early to contact customers on the East Coast or stay late if she's
contacting customers in the Mountain or Pacific time zones. Her company has a proprietary phone technology
system which provides names and contact information of leads and current customers so Brittany can make the
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most of her sales calls and be more productive. She typically makes 20 to 25 dials an hour and on average is
able to speak with 2-3 individuals each hour. She was initially surprised at her ability to connect with
customers and create relationships through her phone conversations and has created trust-based relationships
over time. Her customers value her advice and opinions because she understands their needs, has expertise in
the products and services she represents and always seeks to meet their needs. Brittany's position is best
categorized as a(n) ________ channel position.
a.
inside
b.
field
c.
over-the-counter
d.
telemarketing
174. You are conducting interviews for new sales representatives for your manufacturing firm. You are
primarily looking for candidates that you think will be resources for your indirect customers, educating them,
providing technical assistance, and demonstrating how a new product is used.
You will be looking for personal sales personnel who are proficient in which kind of sales task?
a.
order processing
b.
support personnel
c.
order getters
d.
technical sales reps
e.
missionary selling
175. Which of the following is true of personal selling?
a.
It is less time consuming compared to other types of promotions.
b.
It is an ineffective promotional strategy for firms that market to relatively few potential customers.
c.
It accounts for a small share of the marketing budget in a firm.
d.
It is interpersonal and basic to any enterprise.
176. Firms that market similar products throughout large areas often organize their sales forces:
a.
geographically.
b.
on a product basis.
c.
by types of customers.
d.
by specific accounts.
177. _____ is a personal selling function that involves identifying potential customers.
a.
Screening
b.
Prospecting
c.
Approaching
d.
Processing
178. Which of the following is the most effective way for a sales manager to motivate salespeople to give their
best?
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a.
Setting annual goals for individuals instead of quarterly or monthly goals
b.
Setting extremely high targets
c.
Recognizing their efforts and offering simple incentives
d.
Creating expensive incentive programs
179. First-line sales managers need very strong sales skills, while sales managers at higher organizational levels
need more _____ skills.
a.
training
b.
interactive
c.
managerial
d.
technical
180. The top marketing manager of your company has asked you to make recommendations about your sales
representatives who make up the sales force for your business-to-business auto parts customers. These
territories are geographically structured and the goal is to move away from territory-based sales to customer-
oriented sales; as a result, these sales reps may be reassigned.
Based on this project request, what element of the sales force management process will you focus on?
a.
establishing expectancy
b.
organizing the sales force
c.
recruiting and selecting salespeople
d.
evaluating and controlling personnel
e.
compensating salespeople
181. The role of a sales representative in the promotion process has changed from that of persuader to that of a:
a.
technician and expert on product repair.
b.
process designer.
c.
problem solver.
d.
confidant.
182. Which of the following sales promotion techniques produces a higher response rate than most other
promotions?
a.
Sweepstakes
b.
Rebates
c.
Sampling
d.
Coupons
183. Brandi is an account executive with Wirtz Beverage, a wine and spirits distributor with an extensive
catalog of brands. She typically meets with restaurants, bars and hotels to market her products and assists
customers in developing their beverage menu to generate sales revenue and meet customer's needs. Recently,
she had the opportunity to offer customers a great deal - if they ordered 5 cases of wine (assorted brands), they
could receive the 6th case at 50% off retail. Wirtz Beverage offered this promotion in order to reduce
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warehouse inventory and shift inventory from their warehouses to the customer's business location. This is an
example of a(n):
a.
trade allowance
b.
specialty advertising
c.
sweepstake
d.
coupon
184. Which of the following is a part of the consultative selling process?
a.
Salespeople and specialists working together to promote products
b.
Offering multiple goods or services to the same customer
c.
Understanding customer problems
d.
Concentrating mostly on short-term or quick sales
185. Which of the following is the most effective method to promote products when the customers of a firm are
geographically concentrated?
a.
Advertising
b.
Publicity
c.
Public relations
d.
Personal selling
186. You are conducting interviews for new sales representatives for your electronics firm. You are primarily
looking for candidates that you believe can be successful in developing new business and selling to new
customers. Your current staff is full of sales representatives who are exceptional at generating repeat sales.
You will be looking for personal sales personnel who are proficient in which kind of sales task?
a.
order processing
b.
support personnel
c.
creative selling
d.
missionary selling
e.
technical sales reps
187. Sales promotion that appeals to marketing intermediaries rather than consumers is called:
a.
network marketing.
b.
trade promotion.
c.
publicity.
d.
inside selling.
188. _____ is a cash reward paid to retail salespeople for every unit of a product they sell.
a.
Rebate
b.
Push money
c.
Handling fee
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d.
Buying allowance
189. New sales personnel often find prospecting frustrating because it:
a.
can only be accomplished during certain times of the year.
b.
can be done in a variety of ways.
c.
is subject to a number of laws and regulations.
d.
usually offers no immediate payback.
190. Zero Tech, a provider of game programming, directed its highly skilled and technically sound salespeople
to visit customers without prior appointment and make a sales pitch on the spot. Which of the following
techniques was used by the sales staff?
a.
Creative selling
b.
Inbound telemarketing
c.
Cold calling
d.
Missionary selling
191. Salespeople usually face difficulties in:
a.
approaching potential buyers.
b.
precall planning.
c.
closing the sale.
d.
following up after the sale.
192. The Lands’ End catalog provides a toll-free number for customers to call and place orders. The staff is
pleasant and knowledgeable and will place orders and answer questions. This is an example of a(n):
a.
marketing communications element.
b.
promotional mix component.
c.
inbound telemarketing effort.
d.
customer-driven technology.
193. You have accepted a new job in personal sales that requires training in the use of technologies like
predictive dialers, random-digit dialing, and autodialing. What is the new job that you have accepted?
a.
inbound telemarketer
b.
network marketer
c.
team selling
d.
inside selling
e.
outbound telemarketer
194. A2Z Microchips depends largely on outbound telemarketing for product promotion. Recently the
organization was able to weed out busy signals and voice mail systems of its customers which doubled the
number of calls made by its sales personnel. Which of the following technologies is A2Z using?
a.
Predictive dialers
b.
Autodialers
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c.
Random-digit-dialers
d.
Toll-free dialers
195. The sales promotion technique that rewards consumers with an item either for free or at a reduced cost
when they purchase another product is called:
a.
sampling.
b.
a prize.
c.
a premium.
d.
specialty advertising.
196. Meeting customer needs by listening to them, understanding their problems, paying attention to details, and
following through after the sale is called _____ selling.
a.
consultative
b.
transaction
c.
missionary
d.
cross
197. Personal selling is likely to be the primary component of a firm’s promotional mix when:
a.
the firm markets inexpensive products that require no special handling.
b.
the transactions frequently involve trade-ins.
c.
the price of the products is relatively low.
d.
the firm markets to a large number of customers in various locations.
198. As a new employee in the sales promotion department of a hotel chain, you proudly tell a coworker about all the
ways you can help the chain grow. Later, you're embarrassed when you realize you misspoke. You mistakenly claimed
that sales promotion is especially well suited for:
a.
Speeding up the sales of hotel rooms
b.
Increasing numbers of hotel bookings
c.
Encouraging tourists to try the hotel
d.
Building awareness of the hotel brand
e.
Fostering repeat bookings
Indicate one or more answer choices that best complete the statement or answer the question.
199. You want to improve your performance in field selling, so you have set out to build your skills in the order
processing part of the job. Those skills will be related to several tasks, including:
a.
Identifying customer needs
b.
Pointing out needs to the customer
c.
Completing orders
d.
Cross selling
e.
All of the above
200. Sue is the daughter of a salesman, but she knows that her job in the same field will be different from her father's.
Unlike many sales professionals in the past, Sue is likely to experience:
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a.
Working in a team
b.
Prioritizing customer service over quick sales
c.
Prioritizing quick sales over customer service
d.
A more dominant role for personal selling in the marketing mix
e.
A less dominant role for personal selling in the marketing mix
201. As Tom begins his new sales job, he is looking forward to interacting with customers. Tom's strengths are in
personal, one-to-one communication. Choose the type(s) of sales channels that Tom probably hopes to use.
a.
Online
b.
Field
c.
Over-the-counter
d.
Telemarketing
e.
Promotional
Match each item with the correct statement below.
a.
span of control
b.
field selling
c.
inside selling
d.
order processing
e.
virtual sales team
f.
team selling
g.
approach
h.
creative selling
i.
presentation
j.
sales promotion
k.
premium
l.
coupon
m.
network marketing
n.
cold calling
o.
expectancy theory
p.
over-the-counter selling
q.
missionary selling
r.
relationship selling
s.
push money
t.
consultative selling
202. _____ is another term for spiffs.
203. _____ refers to personal selling conducted in retail and some wholesale locations in which customers come
to the seller’s place of business.
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204. _____ involves making calls on prospective and existing customers at their businesses or homes.
205. _____ is a type of personal selling that relies on lists of family members and friends of a salesperson, who
organizes gatherings of potential customers for an in-home demonstration of products.
206. Selling by phone, mail, and electronic commerce is known as _____.
207. Most firms now emphasize _____, a technique used by firms for building a mutually beneficial partnership
with a customer through regular contacts over an extended period.
208. This personal selling technique works hand in hand with relationship selling _____ and involves meeting
customer needs by listening to them, understanding their problems, paying attention to details, and following
through after the sale.
209. _____ is a type of personal selling in which a salesperson joins with specialists from other functional areas
of the firm to complete the selling process.
210. A(n) _____ is a network of strategic partners, suppliers, and others qualified and willing to recommend a
firm’s goods and services.
211. _____ is selling at the wholesale and retail levels that involves identifying customer needs, pointing them
out to customers, and completing orders.
212. _____ is a type of personal selling in which salespeople use well-planned strategies to seek new customers
by proposing innovative solutions to customer’s needs.
213. _____ is an indirect selling method in which salespeople promote goodwill for the firm by educating
consumers and providing technical and operational assistance.
214. A(n) _____ is a salesperson’s initial contact with the prospective customer.
215. _____ is a personal selling function of describing a product’s major features and relating them to a
customer’s problems and needs.
216. Phoning or visiting the customer without a prior appointment and making a sales pitch on the spot is known
as _____.
217. _____ refers to the number of sales representatives who report to first-level sales managers.
218. _____ states that motivation depends on an individual’s expectations of his/her ability to perform a job and
how that performance relates to attaining a desired award.
219. _____ refers to marketing activities other than personal selling, advertising, and publicity that enhance
consumer purchasing and dealer effectiveness.
220. A(n) _____ is a sales promotion technique that offers a discount on the purchase price of goods or services.
221. A(n) _____ is an item given free or at a reduced cost with purchases of other products.
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222. What are the basic functions of a sales manager?
223. Discuss the different types of consumer-oriented sales promotions.
224. How do firms integrate various sales channels to create a cost-effective sales organization?
225. What is network marketing? Give an example.
226. What is a follow-up? Why is follow-up an important step in the sales process?
227. What do buyers expect from professional salespeople?
228. Distinguish between inbound and outbound telemarketing.
229. What is cold calling? How can a salesperson make a successful cold call?
230. State the expectancy theory of motivation. How can sales managers apply this theory to motivate their sales
force?
231. Define sales promotion. How does sales promotion support other promotional activities of a firm?
232. What are the three questions a sales manager must address as part of a salesperson’s evaluation? How can a
sales manager ensure that all employees are treated equally while completing an evaluation summary?
233. What is trade promotion? What are the different trade promotion methods used by marketers?
234. Describe over-the-counter and field selling.
235. Briefly describe the three basic sales tasks.
236. Give three characteristics of a corporate culture that encourages ethical behavior. Why is it important for
salespeople to maintain ethical behavior?
237. Under what conditions does personal selling typically become a primary component of the firm's
promotional mix?
238. What are the various methods used by salespeople to close a sales process?
239. Describe the three major personal selling approaches.
240. How has the role of a salesperson in a firm’s promotional activities changed over the years?
241. Briefly describe the various steps involved in the sales process.
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Answer Key
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