Chapter 19—Personal Selling and Sales Promotion
ESSAY
1. Identify and discuss the general steps in the personal selling process.
2. List the three major types of salespeople and indicate how they differ.
3. What is the rationale for having sales force objectives, and how are they developed?
4. Discuss why recruitment of salespeople should be a continuous activity.
5. Explain the major issues to consider when developing a sales training program.
6. Identify the major features of effective sales force compensation plans.
ANS:
7. List three major types of sales force compensation methods. What are the advantages and
disadvantages of each?
8. Identify and describe several ways to motivate sales personnel.
9. Discuss the major factors to consider when designing sales territories.
10. Explain how a salesperson’s performance can be evaluated.
11. How has the expenditure of promotional dollars on advertising, consumer sales promotion methods,
and trade sales promotion methods changed in recent years?
12. Identify and discuss some of the key objectives in using sales promotion.
13. What are some limitations of using sales promotion?
14. Describe consumer sales promotion and trade sales promotion, and then explain how they differ.
15. Identify four consumer and four trade sales promotion techniques, and describe each one.
MULTIPLE CHOICE
16. Paid personal communication that attempts to inform and persuade customers to purchase products in
an exchange situation is called
a.
advertising.
b.
sales promotion.
c.
personal selling.
d.
target marketing.
e.
public relations.
17. A major disadvantage of personal selling is that it
a.
is not remembered as well by consumers as advertising messages are.
b.
cannot easily adjust the message to satisfy a customer’s information needs.
c.
is very expensive per contact.
d.
does not provide immediate feedback.
e.
is not compatible with other promotional activities.
18. Personal selling is changing in today’s marketplace due to several factors. Which of the following is
not a factor that impacts today’s promotion through personal selling?
a.
The difficulty in keeping customers because they are fickle.
b.
New technology provides up-to-date information in the field.
c.
The way in which customers gain information about a company or product.
d.
Social CRM allows companies to discover and engage customers.
e.
Electronic sales presentations through social media technology.
19. Personal selling goals include finding prospects, convincing prospects to buy, and
a.
monitoring new products being developed.
b.
being aware of competitors’ sales activities.
c.
seeking one-sale customers.
d.
avoiding repeat transactions.
e.
keeping customers satisfied.
20. The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of
a.
chief executive officers.
b.
salespeople.
c.
sales managers.
d.
quality control experts.
e.
marketing directors.
21. Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern half of
the state as a sales territory. Last year, the director of marketing for the publishing company told
Jennifer’s sales manager to increase her territory to the entire state. Now Jennifer’s customers are less
satisfied with the company. They are most likely to blame ____ for their reduced level of customer
satisfaction.
a.
the textbook authors
b.
the company’s chief executive officer
c.
the marketing manager
d.
the sales manager
e.
Jennifer
22. Sayyid’s company has launched a new product line, and he is put in charge of sales. He decides his
first step will be to find potential customers in the company’s sales records. Sayyid is
a.
prospecting.
b.
screening.
c.
researching.
d.
pre-approaching.
e.
surveying.
23. The final stage of the selling process is
a.
closing.
b.
trial close.
c.
presentation.
d.
follow-up.
e.
overcoming objections.
24. Tara is beginning her week as a sales representative for Logitech Technology. She decides to start the
day by developing a list of potential customers, which is called
a.
preapproaching.
b.
surveying.
c.
scouting.
d.
prospecting.
e.
screening.
25. Scott Bartello, a salesperson for Lamkin Golf Products, develops a list of potential customers and
evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This
process is called
a.
customer search.
b.
preapproach.
c.
customer evaluation.
d.
customer pre-approval.
e.
prospecting.
26. Company sales records, commercial databases, newspaper announcements, telephone directories, and
public records are all sources used for
a.
surveying.
b.
screening.
c.
researching.
d.
preapproaching.
e.
prospecting.
27. Advertising that encourages customers to send in reply cards for additional information aids
salespeople in achieving which goal of personal selling?
a.
Convincing prospects to buy
b.
Finding prospects
c.
Keeping customers satisfied
d.
Making the presentation
e.
Following up the sale
28. Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied
customers, but like many salespeople, he does not frequently utilize one of the best ways to find new
prospects, which is through
a.
friends and coworkers.
b.
customer referrals.
c.
trade shows.
d.
past sales.
e.
other employees.
29. After compiling a list of potential customers, a salesperson must
a.
evaluate whether each prospect is able, willing, and authorized to buy the product.
b.
determine whether or not each prospect is really in his target market.
c.
find and analyze information about each prospect’s specific needs and current brand
choices.
d.
develop a presentation for each of the potential customers on his list.
e.
contact each of the prospects to get an initial feel for how likely they are to purchase his
products.
30. Janetta tells her sales manager that she will be devoting more effort to ____ in the coming weeks, as
her list of potential customers has dwindled below the level of 30 firms recommended by the selling
plan.
a.
approaching customers
b.
preapproaching
c.
closing the sale
d.
following up
e.
prospecting
31. Tim has just finished compiling a list of potential customers and evaluating their ability, willingness,
and authority to buy. He knows his next step in the personal selling process is to
a.
approach.
b.
preapproach.
c.
make the presentation.
d.
prospect.
e.
overcome objections.
32. Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes
information about the prospects’ product needs, feelings about brands, and personal characteristics.
This process is called
a.
prospecting.
b.
preapproach.
c.
approaching the customer.
d.
sales training.
e.
sales planning.
33. A salesperson finds and analyzes information about each prospect’s specific product needs, current use
of and feeling about brands, and personal characteristics during
a.
prospecting.
b.
the approach.
c.
presentation preparation.
d.
overcoming objections.
e.
the preapproach.
34. Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who called on
him before lunch was a real loser: “He has done a poor job of ____. He didn’t even know what brands
we carry or what types of retailers we service!”
a.
prospecting
b.
preapproach
c.
follow-up
d.
presenting
e.
approach
35. Rick is a sales representative for Lucent Technologies. He has reviewed a prospect’s account and
credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he
is ready for the ____ step of the personal selling process.
a.
objections
b.
presentation
c.
approach
d.
preapproach
e.
sales-planning
36. The step of the personal selling process in which a salesperson contacts a potential customer is called
a.
making the presentation.
b.
cold calling.
c.
the preapproach.
d.
the approach.
e.
prospecting.
37. Creating a favorable impression and developing rapport with prospective customers is a critical part of
the ____ step of personal selling.
a.
following up
b.
making the presentation
c.
approach
d.
prospecting
e.
preapproach
38. Stacey’s client group has been gradually shrinking and she is looking for new prospective clients. She
has decided to spend a couple of days approaching potential customers without any prior consent.
Stacey’s method of approach is known as
a.
referral approach.
b.
ambulance chasing.
c.
door–to-door selling.
d.
cold canvass.
e.
repeat contact.
39. The stage of the personal selling process in which the salesperson attempts to make a favorable
impression, gather information about the customer’s needs and objectives, and build a rapport with the
prospective customers is called
a.
prospecting.
b.
preapproach.
c.
approach.
d.
making the presentation.
e.
overcoming objections.
40. The salesperson must attract and hold the prospect’s attention, stimulate interest, and spark a desire for
the product during the
a.
prospecting.
b.
preapproach.
c.
follow up.
d.
approach.
e.
sales presentation.
41. Sebastian, Kevin’s sales manager, points out to him that his last shopper in the housewares department
didn’t seem interested or involved as he explained the new food processor to her. Sebastian suggests
that Kevin use a(n) ____ as part of his presentation next time.
a.
video
b.
information pamphlet
c.
demonstration
d.
trial close
e.
overcoming objections approach
42. Which of the following is not true when making the sales presentation?
a.
The salesperson should focus on anticipating questions and answering them before they’re
asked.
b.
The salesperson must spark interest in the product.
c.
The salesperson should not only talk but also listen to the customer.
d.
The salesperson should involve the customer by having him or her hold, touch, or use the
product.
e.
A salesperson should not sound like he or she is just reading a script (i.e., he or she should
be flexible and respond to the customers’ comments).
43. A salesperson will be better able to determine the prospect’s specific needs by
a.
listening carefully to questions and comments and watching reactions during the sales
presentation.
b.
waiting until after the sale to see how the client is enjoying the use of the product.
c.
doing extensive research before the approach and making the sales presentation without
adjustment.
d.
using trial closings throughout the sales presentation.
e.
making a very thorough and detailed sales presentation about the products and services
being offered.
44. Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains
that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for
another firm, hands Tony a book on
a.
listening skills.
b.
overcoming objections.
c.
prospect evaluation.
d.
product demonstrations.
e.
closing.
45. While anticipating objections and countering them before they are asked is a good idea, one negative
consequence of doing so is that the salesperson may
a.
annoy the customer.
b.
mention objections the customer had not thought of.
c.
take too long in trying to sell the product, and the customer may stop listening.
d.
not emphasize its features and benefits enough.
e.
begin to lie about the product.
46. During the personal selling process, a salesperson, if possible, should handle objections when
a.
they arise.
b.
the salesperson begins the trial close.
c.
the sales presentation is approximately half completed.
d.
when the customer appears to be unhappy or agitated.
e.
when the salesperson begins the sales presentation.
47. The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the
product.
a.
proposal
b.
closing
c.
overcoming objections
d.
approach
e.
trial
48. When a salesperson asks the customer to buy the product several times throughout the sales
presentation in an effort to uncover hidden objections, it is called
a.
order taking.
b.
new-business selling.
c.
trial closing.
d.
order getting.
e.
overcoming objections.
49. “Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn’t
you?” Cliff Davis, a salesperson at Midtown Ford, was using a(n) ____ when he made this statement.
a.
referral
b.
objective
c.
bandwagon approach
d.
follow-up
e.
trial close
50. During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, “Would you prefer
black or stainless steel?” This is an example of a
a.
referral.
b.
recommendation.
c.
follow up.
d.
trial close.
e.
closing argument.
51. A salesperson should try to close the sale
a.
at the end of the sales presentation.
b.
during the preapproach.
c.
about halfway through the sales presentation.
d.
after overcoming the biggest objection.
e.
several times during the sales presentation.
52. The purpose of the ____ stage in personal selling is to determine customers’ problems and questions
about using the product.
a.
prospecting
b.
approach
c.
overcoming-objections
d.
follow-up
e.
closing
53. Cheyenne calls to see if her customer’s new hardwood floors were installed correctly
a.
during the follow-up step.
b.
immediately after the closing.
c.
near the end of the sales presentation.
d.
the next time she makes a sales call to that customer.
e.
after she receives cash payment from that customer.
54. Creative selling, which requires that salespeople recognize a potential buyer’s needs and then provide
the prospect with the necessary information, is performed by
a.
order takers.
b.
order getters.
c.
missionary salespeople.
d.
trade salespeople.
e.
technical salespeople.
55. Yolanda’s job is to find new customers for her company’s telecommunication services. She encourages
existing customers to add more services and finds customers who are completely new to the company.
Yolanda would best be classified as a(n)
a.
order taker.
b.
order generator.
c.
missionary salesperson.
d.
technical salesperson.
e.
order getter.
56. Order-getting activities are divided into two categories:
a.
missionary sales and technical sales.
b.
current-customer sales and new-business sales.
c.
order takers and trade sales.
d.
current sales and support sales.
e.
inside order sales and field order sales.
57. Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat
sales. Dylan is most likely a(n)
a.
order getter..
b.
order recorder.
c.
order taker.
d.
follow-up salesperson.
e.
missionary salesperson.
58. The two groups of order takers in personal selling are
a.
current customer salespeople and new-business salespeople.
b.
missionary salespeople and trade salespeople.
c.
inside order takers and field order takers.
d.
trade salespeople and technical salespeople.
e.
advisory order takers and support order takers.
59. Hannah is a retail salesperson for Crate and Barrel in Chicago. She is most likely classified as
a.
an order getter.
b.
support personnel.
c.
trade salespeople.
d.
an inside order taker.
e.
a field order taker.
60. Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone
calls from customers who see infomercials on TV and call to order the product. Michelle is considered
a(n)
a.
order getter.
b.
inside order taker.
c.
support person.
d.
field order taker.
e.
trade salesperson.
61. A sales representative for Coca-Cola travels to various restaurants to determine how much syrup the
customer needs for the coming period. This sales representative would be classified as a(n)
a.
order getter.
b.
inside order taker.
c.
field order taker.
d.
missionary salesperson.
e.
trade salesperson.
62. Doug travels around to various established customers to see what new office supplies they need. His
customers have come to depend on him to check their supplies. Doug is a(n)
a.
field order taker.
b.
current customer order getter.
c.
missionary salesperson.
d.
inside order taker.
e.
trade salesperson.
63. A missionary salesperson is usually employed by
a.
a retailer.
b.
a wholesaler.
c.
either a retailer or a producer.
d.
a manufacturer.
e.
an independent intermediary.
64. Which of the following is least likely to be directly involved in actually making sales?
a.
Order taker
b.
Current-customer salesperson
c.
Order getter
d.
Field order taker
e.
Support sales personnel
65. Assisting the producer’s customers in selling to those customers is the major purpose of which type of
salesperson?
a.
Trade salesperson
b.
Technical salesperson
c.
Missionary salesperson
d.
Order getter
e.
Order taker
66. Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides current
customers with advice about a product’s characteristics and applications. He is a(n)
a.
missionary salesperson.
b.
trade salesperson.
c.
field order taker.
d.
inside order taker.
e.
technical salesperson.
67. Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state university that her
job is to call on doctors and explain the benefits of new prescription drugs that her firm develops.
Daphne would call herself a(n)
a.
technical salesperson.
b.
missionary salesperson.
c.
order taker.
d.
order getter.
e.
trade salesperson.
68. Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have
adequate quantities of products when they need them. However, she is directing much of her effort
toward helping the retailers promote the products. She would be characterized as belonging to which
group of salespeople?
a.
Trade salespeople
b.
Field order takers
c.
Advisory salespeople
d.
Technical salespeople
e.
Order getters
69. Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of
Hormel products to customers in supermarkets. Jana would best be classified as a(n)
a.
trade salesperson.
b.
technical salesperson.
c.
inside order taker.
d.
field order taker.
e.
missionary salesperson.
70. Nick is a salesperson for DuPont. His college degree is in engineering, with a minor in physical
science. Nick is most likely a(n)
a.
trade salesperson.
b.
missionary salesperson.
c.
technical salesperson.
d.
chemicals order taker.
e.
support to the sales staff.
71. A support salesperson who usually advises customers on product characteristics and application,
system design, and installation procedures is a(n)
a.
trade salesperson.
b.
inside order taker.
c.
tech support worker.
d.
missionary salesperson.
e.
technical salesperson.
72. Ryan Amerson leads his company’s clients through the installation procedure of their new industrial
equipment. He also helps answer their questions about product characteristics and system design both
before and after their purchases. Ryan is a
a.
trade salesperson.
b.
missionary salesperson.
c.
technical salesperson.
d.
systems engineer.
e.
field order taker.
73. Natalie is a sales representative with Nike. Tomorrow she will join with people from the firm’s
financial, engineering, and other functional areas to engage in the personal selling process. Natalie is
engaged in
a.
Trade selling
b.
Missionary selling
c.
Relationship selling
d.
Team selling
e.
Technical selling
74. Which of the following is particularly appropriate for pricey high-tech business products, such as jet
aircraft and medical equipment?
a.
Team selling
b.
Relationship selling
c.
Trade selling
d.
Technical selling
e.
Missionary selling
75. Which of the following involves building mutually beneficial long-term associations with a
customer⎯usually a business customer⎯through regular communications over prolonged periods of
time.
a.
CRM selling
b.
Missionary selling
c.
Exclusive selling
d.
Team selling
e.
Relationship selling
76. All of the following are key areas of sales force management except
a.
compensating salespeople.
b.
coordinating sales promotion efforts.
c.
recruiting salespeople.
d.
training sales personnel.
e.
motivating sales personnel.
77. Sales objectives can do all of the following except
a.
serve as a deterrent both to salespeople and their clients.
b.
give the sales force direction and purpose.
c.
serve as a standard for evaluating salesperson performance.
d.
let the sales force know what is expected of them.
e.
help to control the sales force.
78. Sales force objectives are generally established for
a.
the organization as a whole only.
b.
the total sales force and for each salesperson.
c.
just each salesperson but not the whole sales force.
d.
for each department or division of the company.
e.
long-term but not short-term salespeople.
79. Which of the following is the best example of a well-stated sales objective?
a.
Companywide sales should increase by 25 percent.
b.
Each salesperson should increase his or her client group by 10 percent.
c.
Each salesperson should bring in $25,000 in new sales by November 15.
d.
The sales force should increase the market share in all markets by December 1.
e.
Each salesperson should increase the number of calls they make by 20 percent.
80. Sales objectives for individual salespeople can be stated in several ways. Which of the following
would least likely be used for stating an individual salesperson’s goal?
a.
Dollar volume sales
b.
Unit volume sales
c.
Average order size
d.
Ratio of profits relative to number of sales calls
e.
Average number of calls per time period
81. A company may determine how many sales calls per year it needs to serve customers effectively and
divide that by the average number of sales calls made by one salesperson in order to
a.
recruit appropriate salespeople.
b.
set sales force calling objectives.
c.
compensate salespeople fairly.
d.
train its salespeople.
e.
determine sales force size.
82. When better market conditions prevail or when company growth occurs, a company may suffer if it
a.
lowered its sales force objectives.
b.
recruited additional salespeople.
c.
decided to use a combination compensation plan.
d.
provided additional training for its sales force.
e.
cut back the size of its sales force.
83. Recruiting and selection of salespeople should include enough steps to yield the information needed to
make accurate selection decisions. However, the stages of the process should be sequenced so that the
more expensive steps are
a.
near the beginning.
b.
always completed before anything else.
c.
near the end.
d.
paid by the prospects rather than the company.
e.
never reached.
84. The best advice for recruiting and selecting salespeople for one’s organization would be
a.
follow a clear set of generally accepted job characteristics when determining an applicant’s
qualifications.
b.
keep the expensive stages near the beginning of the recruiting process.
c.
find out how long the applicant plans to stay with the company.
d.
make recruitment a continuous activity aimed at seeking out the best applicants.
e.
recruit primarily from educational institutions.
85. Which of the following best characterizes the function of recruiting and selecting a sales force?
a.
It should be a continuous, systematic attempt to match applicants’ characteristics to the
firm’s needs.
b.
It is a process that should be set up that incorporates at least two steps: an interview and a
written application.
c.
Sources of applicants should be limited, since the recruitment process is expensive and
more applicants mean greater expense.
d.
After interviewing applicants, the manager should attempt to find a position that can be
tailored to fit applicants’ qualifications.
e.
It should not be made from personnel in other departments in the firm, as this would
necessitate training two people rather than one.
86. Zack Freedman is an experienced salesperson who has worked for the same company for 20 years.
When he is informed that he must attend a training seminar the following Tuesday, he believes it will
most likely be about
a.
the company.
b.
his customers’ companies.
c.
basic selling methods.
d.
new-product information.
e.
prospecting.
87. Olivia is the manager of Human Resources for Zappos.com. She is currently reviewing the sales force
compensation method used at Zappos.com to determine if there is a better way to manage
compensation. Olivia knows that the ____ method is easy to administer, yields more predictable
selling expenses, and provides sales managers with a large degree of control over salespeople.
a.
Straight commission
b.
Salary plus bonus
c.
Salary and commission
d.
Straight commission and combination
e.
Straight salary
88. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force
compensation method. He would like to have selling expenses relate directly to sales resources, an
aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would
best fulfill his requirements?
a.
Combination
b.
Straight salary
c.
Straight salary plus generous fringe benefits
d.
Straight commission
e.
Salary plus a bonus
89. Savanna is a sales person for Aeropostale. Her compensation is based on a set salary plus a
commission based on sales. Savanna’s compensation is based on a(an)
a.
straight salary compensation plan.
b.
combination compensation plan.
c.
cafeteria plan.
d.
straight commission compensation plan.
e.
salary plus bonus program.
90. Effective motivation of a sales force is best achieved through
a.
annual retreats at resort locations open to families.
b.
emphasizing sales force objectives and their connection to compensation.
c.
an organized set of activities performed continuously.
d.
motivation meetings when sales have declined.
e.
daily pep talks before the sales force makes sales calls.
91. In designing sales territories, a sales manager considers several major factors. The territories must be
constructed so that sales potential can be measured; the shape of the territories should facilitate
salespeople’s activities to provide the best possible coverage of customers; and
a.
territories should be designed to minimize selling costs.
b.
all territories should be of similar size.
c.
the territorial pattern should consist of concentric circles.
d.
the density of potential customers should be minimized.
e.
the distribution of customers should be relatively equal.
92. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in
geographic size; this will cause the salespeople with larger territories to
a.
develop larger income potentials.
b.
have to work longer and harder to generate a certain sales volume.
c.
work about the same amount, since potential is the same.
d.
have much larger sales than those salespeople with smaller territories.
e.
be limited to a smaller income potential.
93. Customer density and distribution are important factors in
a.
prospecting.
b.
motivating salespeople.
c.
creating sales territories.
d.
compensating salespeople.
e.
establishing sales force objectives.