115. Refer to Digital Cookware. The company’s first task is to define its exact sales promotion objective. If
the goal of the company is to persuade customers to buy its brand of skillet as opposed to one of the
skillets made by its competition, it should:
a.
use on-pack coupons
b.
run a cooking contest that has contestants enter recipes that use the new skillet
c.
use price-off packages
d.
use bonus packs
e.
institute a loyalty marketing program
116. Refer to Digital Cookware. Why might rebates be a really good sales promotion for Digital Cookware
to use?
a.
They are useful in building long-term relationships with customers.
b.
They can create a great amount of publicity.
c.
They create mutually beneficial relationships between the manufacturer and its customers.
d.
They are good at enticing purchases, but most rebates are not redeemed.
e.
They can be piggybacked with similar products.
117. Refer to Digital Cookware. If consumers receive a free spatula with the purchase of Digital
Cookware, this is an example of which type of consumer sales promotion?
a.
sample
b.
premium
c.
rebate
d.
bonus pack
e.
add-on
118. Refer to Digital Cookware. Digital Cookware is offering retailers a price reduction for allocating space
for special displays its products. This type of trade sales promotion is called:
a.
push money
b.
trade allowances
c.
event sponsorship
d.
store demonstrations
e.
trade shows
119. Refer to Digital Cookware. If Digital Cookware offered the sales associates at a chain of cooking
stores a bonus for each digital skillet they sold, it would be an example of:
a.
push money
b.
a trade allowance
c.
a trade rebate
d.
pull money
e.
a functional discount
Every fall, Americans eat turkey during the holiday season. For some consumers, that is the only time
they cook a turkey. Butterball has satisfied loyal customers for more than 50 years and fields about
100,000 phone calls every November from consumers asking cooking questions. So this year,
Butterball decided to include a meat thermometer with each turkey so consumers can know when the
big bird is ready to eat. Each year, Butterball also selects the best leftover recipe from those posted on
its Web site through an online vote with consumers. The consumer submitting the recipe receiving
the most votes wins a $1,000 prize. Butterball also hires a company to go into stores and provide
bite-size turkey nuggets to consumers so they can taste how moist Butterball turkeys can be. Usually,
the person providing the turkey will be standing next to temporary shelves with all the Thanksgiving
fixings on it that are set up in the stores this time of year.
120. Refer to Butterball Turkey. If Butterball printed a certificate in a newspaper or magazine
advertisement that allowed consumers to receive $2.00 off if they purchase a Butterball turkey, they
would be using:
a.
coupons
b.
price-offs
c.
premiums
d.
loyalty marketing
e.
sampling
121. Refer to Butterball Turkey. The meat thermometer Butterball provides with each turkey is an
example a(n):
a.
add-on
b.
trade promotion
c.
bonus pack
d.
rebate
e.
premium
122. Refer to Butterball Turkey. Consumers submitting a recipe online in hopes of winning the $1,000
prize are participating in which type of sales promotion?
a.
premium
b.
sweepstake
c.
social network
d.
contest
e.
loyalty program
123. Refer to Butterball Turkey. Which sales promotion tool is Butterball using when shoppers in a store
are offered a bite-sized portion of the turkey?
a.
coupon
b.
premium
c.
sweepstake
d.
primary
e.
sampling
124. Refer to Butterball Turkey. The temporary shelves that are put up in the stores that include
complementary products for a holiday meal, such as dressing mixes, canned vegetables, cranberry
sauce, and so on, is an example of a(n):
a.
P-O-P display
b.
trade allowance
c.
push money
d.
interactive kiosk
e.
sampling station
Kraft Foods has established dedicated teams to focus on their business with many of their largest
customers. With “Team Kroger,” Kraft has combined with Nabisco selling organizations in order to
bring more unique shopper insights to Kroger supermarkets. This helps Kroger understand their
shoppers and customize their programs to grow even more. At the same time, Kraft has strengthened
its relationship with Kroger by gaining a better understanding of the supermarket’s needs and how it
can help support Kroger’s business objectives concurrently with its own.
125. Refer to Kraft Foods. Which type of selling does this Kraft perform with Kroger?
a.
Traditional personal selling
b.
Relationship or consultative selling
c.
Customer selling
d.
Interactive selling
e.
Focused selling
126. Refer to Kraft Foods. The AIDA concept is encouraged among the sales teams that focus on other
resellers besides Kroger because it can help in the:
a.
JIT process
b.
communication process
c.
networking process
d.
selling process
e.
cold calling process
127. Refer to Kraft Foods. _____ is the identification of those firms and people most likely to buy Kraft
products.
a.
Prospecting
b.
Lead qualification
c.
The sales presentation
d.
The close procedure
e.
The sales approach
128. Refer to Kraft Foods. Each Kraft sales team member is given a statement of his or her individual sales
objectives, usually based on sales volume. This is called a(n):
a.
sales lead
b.
objective report
c.
order forecast
d.
account report
e.
quota
129. Refer to Kraft Foods. Team Kroger devotes all of its efforts on satisfying the needs of one of its
largest customers, Kroger. This is an example of a sales force organized by:
a.
geographic region
b.
product line
c.
market
d.
industry
e.
individual client or account
Most colleges and universities have a campus activity board that brings entertainers and special events
to campuses. To locate and hire these entertainers, many campuses send their student activity board
members to one of the seven regional or the national NACA (National Association of Campus
Activities) conventions. More than 100 entertainers, talent agencies, and companies that provide
promotional services exhibit their products at these conventions in an area similar to a trade show.
(Conference attendees call this the Marketplace.)
Approximately 20 entertainers are selected to present a short program (called a showcase) in which
they demonstrate what they would do if hired to perform on campus. Many other entertainers have
videos and CDs, which they hand out to student attendees. Only one or two members of any student
group can actually set up a contractual agreement with an entertainer or his or her agency. Other
student attendees provide input as to which entertainers best match the demographics of their
institutions.
130. Refer to College Entertainers. When some of the entertainers visit campuses, they give free T-shirts to
people who came to see them perform. These T-shirts are examples of:
a.
rebates
b.
loyalty reminders
c.
premiums
d.
informative advertising
e.
trade promotions
131. Refer to College Entertainers. The entertainers’ showcases are examples of:
a.
sampling
b.
event sponsorships
c.
frequency programs
d.
reminder advertising
e.
product placement
132. Refer to College Entertainers. The entertainers and agency representatives engage in _____ in the
Marketplace.
a.
transformational management
b.
countertrades
c.
all types of marketing communications
d.
personal selling
e.
loyalty marketing programs
133. Refer to College Entertainers. The student activity board members who attended a NACA convention
were approached by a talent agent who represents a group of comedians who have been known to use
profane language in their routines. Several of the college students told the agent that type of language
would not be welcome at their college. The agent promised the group that the comedians were able
and willing to perform an act that the students could bring their grandmothers to see without being
embarrassed. In this example, the agent was:
a.
getting referrals
b.
doing a preapproach
c.
qualifying leads
d.
using trade promotions
e.
handling objections
134. Refer to College Entertainers. The student members might agree to pay lodging and travel expenses in
return for the entertainer reducing his or her fees by $100. This is an example of:
a.
engage in cross promotion
b.
negotiation
c.
countertrade
d.
cross-sell
e.
create a value chain
Advanced Bionics is a global leader in the development of implantable, high-tech neurostimulation
devices used to treat deafness and chronic pain. Just two-and-a- half years after introducing its new
stimulators, the firm is doing $200 million in domestic sales.
How has Advanced Bionics been so successful? Its success can be attributed to its outstanding
products and to three aspects of its sales approach. First, Advanced Bionics hired the right talent for its
sales force. Companies tend to use experienced sales reps—often hired away from competing
companies—to sell new medical devices. This can be very expensive since experienced reps generally
expect as much as $200,000 in annual income. So when Advanced Bionics brought its medical device
to market, it hired people with no experience selling medical devices and turned them into sales reps.
Hiring inexperienced salespeople created some problems, however, and the company experienced high
turnover rates during its first two years in operation. Second, Advanced Bionics provided salespeople
with a rigorous training program. Third, Advanced Bionics allowed salespeople to plan their own
activities while managers monitored their progress and pushed them to improve. In short, the company
has been able to succeed by selecting good salespeople, training them well, and managing them
carefully.
135. Refer to Advanced Bionics. Advanced Bionics’ technology is cutting-edge and their customers are
very sophisticated. Salespeople need to persuade physicians, neurosurgeons, and orthopedic doctors to
use Advanced Bionics’ products. All of the following statements are advantages personal selling offers
the company in comparison to other techniques EXCEPT:
a.
It can tailor the message to the customer needs.
b.
It is good for explaining the merits of complex products.
c.
It is inexpensive on a per contact basis.
d.
It can be specifically directed to the different types of accounts.
e.
It is effective in convincing a prospective client.
136. Refer to Advanced Bionics. Personal selling is important for Advanced Bionics because _____.
a.
its products are standardized
b.
its buyers are not very technologically savvy
c.
the complexity of its products has decreased
d.
its buyers are extremely dispersed
e.
its products are high value
137. Refer to Advanced Bionics. Medical Education Training Associates (META) handles the training of
new Advanced Bionics sales reps. One of META’s advanced courses focuses on building networks
among the company’s various stakeholders. Networking is often discussed as an approach for
developing:
a.
new product ideas
b.
potential new clients
c.
strategic resources
d.
sales force morale
e.
cost reduction strategies
138. Refer to Advanced Bionics. One of the keys to Advanced Bionics’ success has been finding and hiring
the right talent for sales positions. Finding and hiring new salespeople is known as sales force _____.
a.
motivation
b.
evaluation
c.
personnel management
d.
recruiting
e.
qualification
139. Refer to Advanced Bionics. District sales managers at Advanced Bionics often spend three days per
week in the field coaching and monitoring sales reps. This time in the field with sales reps is an
important final task in the management process known as:
a.
compensation
b.
networking
c.
quota determination
d.
qualifying sales leads
e.
evaluating performance
ESSAY
1. What is sales promotion? What are the objectives of sales promotion?
2. Oakley Grove and Abraham Enterprises both market oranges and grapefruits. Oakley Grove has been
in business for almost 40 years, while Abraham Enterprises has only been selling citrus fruit for about
18 months. Abraham Enterprises would like to take business away from Oakley Grove, and Oakley
Grove wants to retain all of its customers. Explain which sales promotions each should emphasize in
its marketing mix.
3. Consumer sales promotion seeks to reach new users, keep current users, and entice users to stock up. It
can also be used to reinforce advertising for the good or service. Name and define five consumer sales
promotional tools.
4. You are the sales promotion manager for Vita-Balls, a new children’s vitamin that is designed to be
chewed like gum. Your company uses a pull strategy, and you are responsible for recommending sales
promotion tools to accomplish this strategy. Describe three specific sales promotion activities you
would recommend for Vita-Balls.
5. Compare and contrast contests and sweepstakes.
6. Business-to-business marketers use many of the same sales promotion tools used in consumer
promotions. There are several tools, however, that are unique to these marketers. Name and briefly
describe five of these unique sales promotion tools.
7. List the advantages personal selling offers over other forms of promotion.
•
8. Discuss the customer and product conditions that suggest personal selling is more important than
advertising and sales promotion. Give some examples of products for which personal selling would
likely be the best tactic.
9. Compare and contrast relationship selling and traditional personal selling.
10. List the seven steps in the personal selling process.
11. Use the chart to indicate the relative amount of time spent in each of the key steps of the selling
process for both traditional selling and relationship/consultative selling. The first step has been
completed for you.
Key Selling Steps
Traditional Selling
Relationship/Consultative
Selling
Generating leads
High
Low
Qualifying leads
Approaching the customer and
probing needs
Developing and proposing
solutions
Handling objections
Closing the sale
Following up
Key Selling Steps
Traditional Selling
Relationship/Consultative
Generating leads
High
Low
Qualifying leads
Low
High
Approaching the customer and
probing needs
Low
High
Handling objections
High
Low
Closing the sale
High
Low
Following up
Low
High
12. The first step in the personal selling process is sales lead generation. Define lead generation and
explain why referral is a superior method for generating leads.
13. Shelby is a salesperson for Kohler, a company that sells plumbing fixtures. He has a prospect who is
showing interest in learning more about his company’s products, so now he must qualify this sales
lead. What will Shelby do?
14. Tremaine Hughes is a salesperson for Allied Pets, a company that sells veterinarian supplies. He is
working on a needs assessment for East Athens Veterinary Clinic. What information will he need to
find out about East Athens?
15. What is automated e-mail follow-up marketing? How does it work?
16. What are the tasks in the sales management process?
17. You are the sales manager for K-D Lamp Company, a manufacturer of custom-made lighting fixtures.
You are responsible for designing the training program for its new salespeople. List four major areas in
which you would like your salespeople to receive instruction.