Sales Chapter 6 1 Most written proposals include all of the following

subject Type Homework Help
subject Pages 14
subject Words 5171
subject Authors Barry L. Reece, Gerald L. Manning, Michael Ahearne

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Selling Today: Partnering to Create Value, 14e (Manning/Ahearne/Reece)
Chapter 6 Creating Product Solutions
1) Most written proposals include all of the following components EXCEPT a(n):
A) overview
B) schedule
C) objective
D) hypothesis
E) rationale
2) Which of the following statements is most likely true about products and product knowledge?
A) Knowledge of a company's history is essential to selling that company's product.
B) Product knowledge is not as important as selling technique for a professional salesperson.
C) Knowledge of one's product or service is not important in all areas of professional selling.
D) The extensive variety of available products in the market complicates the buying process.
E) Salespeople who learn and impart too much product knowledge hinder the buying process.
3) Rob Fernández is a sales representative employed by Computer Resources, a computer
supplier that develops customer solutions that combine computer hardware, software,
installation, and training. When Rob brings together many parts of the company's product mix in
order to develop a customized customer solution, this is referred to as:
A) developing a product configuration
B) establishing a strategic priority
C) qualifying product benefits
D) quantifying product features
E) creating a value statement
4) The written proposal is best described as a(n):
A) government formality that customers do not read
B) standardized document that highlights pricing
C) opportunity to demonstrate writing skills
D) plan of action based on facts and assumptions
E) analysis of competing products and services
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5) A manufacturer tests, modifies, and retests an original idea several times before offering it to
the consumer. This process is called:
A) data mining
B) product development
C) product application
D) manufacturing analysis
E) product configuration
6) The "invisible" customer who receives a salesperson's written proposal should most likely be
considered a(n):
A) ideal customer
B) current customer
C) neutral party
D) competing salesperson
E) decision maker
7) Which term refers to the process by which a salesperson uncovers and clarifies a customer's
problem, works with the customer to create a vision of how things could be better, and then
develops a plan for implementing the vision?
A) product development
B) quality control
C) field testing
D) solution selling
E) product configuration
8) When a salesperson figures out what the customer's problem is, works with the customer to
create a vision of a solution, and then comes up with a plan to realize that vision, it is called:
A) solution selling
B) a product strategy
C) a customer strategy
D) partner selling
E) visualizing
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9) The ShipNow salesperson's job is most likely to:
A) convince the customer into shipping everything with ShipNow
B) provide a solution for the customer's complex shipping needs
C) explain the packaging features offered by ShipNow
D) describe the many services offered by ShipNow
E) build rapport with the customer
10) What should the salesperson focus on to differentiate ShipNow's product from other shipping
services?
A) varying shipping speeds available to ShipNow customers
B) ShipNow's lower than average prices for equally fast shipping speeds
C) ShipNow's Internet tracking of packages through the company Website
D) auxiliary products that ShipNow sells, like boxes, envelopes, and packing tape
E) the added value the salesperson creates by making the shipping process easy for the customer
11) Sean, a ShipNow salesperson, has a meeting scheduled with Zippy Shoes, an online shoe
retailer that ships hundreds of packages each day. Sean is in the process of developing a written
proposal that will be included with his sales presentation. Which of the following should most
likely be addressed in the "Objective" part of the proposal?
A) how using ShipNow will benefit Zippy Shoes
B) when ShipNow will create value for Zippy Shoes
C) how ShipNow will fulfill obligations to Zippy Shoes
D) which ShipNow features will be available to Zippy Shoes
E) where ShipNow will be able to ship products for Zippy Shoes
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12) What service could Clyde most likely offer to eliminate stress for his customers that his
competitor does not offer?
A) free fabric softener on any drop-off order
B) free pick-up and delivery Monday to Friday from 9 a.m. to 5 p.m.
C) free pick-up and delivery seven days a week from 6 a.m. to 11 p.m.
D) drop-off and pick-up of laundry only on weekends, when customers are not as stressed
E) keeping the laundromat open 24 hours a day
13) Given Clyde's observations about his customers, which of the following would be the best
product configuration to increase business at Quick-Clean?
A) offering extended hours and free pick-up and delivery of laundry
B) training employees to fold clothes in a distinctive pattern
C) using bags labeled with the laundromat logo and address
D) using floral-scented laundry detergent on all orders
E) hiring workers with extensive laundry experience
14) The other laundromat, E-Z Clean, offers free pick-up and delivery during a narrow time
frame, which is most likely an example of:
A) a product based on a company's resources, not customers' needs
B) a product based on industry information, not company resources
C) a product developed after trial and error
D) a customer-facing sales staff
E) a customer loyalty program
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15) The training consultant finds that the sales representatives do not have a strong product
strategy. Without a proper product strategy, sales representatives are most likely unable to:
A) choose the correct products to sell to the customer
B) develop a marketing campaign for a given product
C) sell a product whether the customer needs it or not
D) fulfill an order once it has been placed
E) contact customers quickly
16) The sales director and consulting team discuss changing the entire sales model for the
company by terminating the sales representatives and allowing customers to order on their own
from the company website. What is the best argument against this plan?
A) The sales representatives rely on the income they receive from their jobs.
B) The products are complex and frequently require product configurations.
C) The company will need to alter its strategy to one based on e-commerce.
D) The products require quotation management systems for tax purposes.
E) A request for proposal is required for all government sales.
17) Quotation management software enables firms to prepare written proposals that comply with
federal RFP guidelines.
18) A product strategy involves becoming a product expert and configuring value-added
solutions.
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19) A solution is a mutually shared answer to a recognized customer problem.
20) The increase in the number of products being introduced to the marketplace makes it easier
for customers to assess what to buy and from whom.
21) The product selection process is often referred to as product configuration.
22) Leading companies are aggressively automating their quotation management process.
23) The product selection process is often referred to as ________.
24) List the three steps to developing a product strategy.
25) Which of the following is NOT an example of performance data?
A) a list of product service centers available to customers
B) the AHAM certification seal
C) a label on a storm window that indicates the product's "R" value
D) a window sticker on an automobile that lists the EPA gas mileage figures
E) research sheets on server downtime and data transfer rates
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26) Which of the following is most likely true of sales letters?
A) Sales letters should use the same format as an e-mail.
B) Sales letters should minimize the use of white space.
C) Most sales letters include not more than two paragraphs.
D) Because a sales letter is an introduction, formal language is unnecessary.
E) The use of the personal pronoun "I" should be minimized as much as possible.
27) Using the pronouns "you" and "your" in a sales letter:
A) assumes the customer will definitely buy
B) conveys an informal tone
C) keeps the focus on the customer
D) should be avoided if possible
E) follows standard business letter format
28) Which term refers to measuring products and services against established standards?
A) data mining
B) quality control
C) solution selling
D) feature dumping
E) product configuration
29) The Whirlpool company most likely created a house filled with company products so that
salespeople could:
A) conduct tests with competing products
B) see the full life cycle of the appliances
C) become familiar with the products
D) bring customers to see the products in use
E) explore price configuration options
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30) Customized service agreements add value to a sale by:
A) allowing salespeople to charge more money for features that are usually free
B) requiring salespeople to spend more time with customers
C) convincing customers to spend more money on longer terms
D) incorporating the customer's special priorities, feelings, and needs
E) requiring that customers trust salespeople to keep their verbal promises
31) Quantifying a solution can be performed with a cost-benefit analysis or with a(n):
A) frequency analysis
B) regression analysis
C) feature-benefit presentation
D) pricing model
E) ROI calculation
32) ShipNow requires every new store salesperson to ride along on deliveries with drivers for
two weeks before beginning the sales course necessary to be able to have contact with customers.
What is the most likely purpose of the ridealongs?
A) to enable the salesperson to empathize with drivers
B) to assign a mentor to provide support to the salesperson
C) to help the driver with deliveries during the rushed holiday season
D) to give the salesperson in-depth knowledge of the delivery process
E) to provide a trial period to determine if the salesperson will be a good employee
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33) Sean, a ShipNow salesperson, has a meeting scheduled with Zippy Shoes, an online shoe
retailer that ships hundreds of packages each day. Sean expects that price will be a significant
barrier to closing the sale with Zippy Shoes. What should Sean most likely do to prepare for
price objections?
A) Base the Zippy Shoes deal on prices offered to smaller ShipNow customers.
B) Calculate the commission on the Zippy Shoes deal to ensure that it is fair and equitable.
C) Refer all pricing questions to the ShipNow accounting department to ensure an accurate ROI.
D) Conduct a cost-benefit analysis to determine the savings Zippy Shoes should expect by using
ShipNow.
E) Ask a supervisor for the authorization to set a range of shipping prices for Zippy Shoes that
are based on industry standards.
34) After analyzing information gathered from prospects who did not buy from the company, it
becomes apparent that prospects felt that the sales representatives did not know about the full
line of products they carried or understand their uses. The prospects most likely did not buy
because they could not:
A) ensure that the company's billing process was ethical
B) understand what their business objectives were
C) pay the high prices the company was charging
D) store the chemicals once they were delivered
E) trust the sales reps to sell them the correct products
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35) To increase the sales representatives' product knowledge, the sales director arranges for each
of them to rotate through the product development department for a month to understand the way
the chemicals are developed. What is another department they should rotate through to gain more
product knowledge that will help them configure the right mix of products for customers?
A) customer service, so that they can learn how the chemicals are implemented and used by the
customer
B) logistics, so that they can understand how the products are delivered
C) billing, so that they understand the problems that arise when customers do not pay promptly
D) warehousing, so they can understand exactly how much room the chemicals take up in
storage
E) human resources, so they can understand what characteristics a successful salesperson should
have
36) Decision-making authority in the area of pricing gives the salesperson more responsibility
but less power because firms profit from all sales.
37) Salespeople who can develop a sales proposal that contains specific information about the
return on investment are more likely to get a favorable response from key decision makers.
38) Discuss the advantages of having in-depth knowledge of your product.
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39) A collection of beliefs, behaviors and work patterns held in common by people employed by
a specific firm is a(n):
A) organizational value
B) organizational culture
C) mission statement
D) strategic philosophy
E) corporate vision
40) When customers ask, "What is the anticipated rate of return on this mutual fund?" they are
requesting product information from the category of:
A) performance data
B) product design
C) manufacturing process
D) product application
E) quality improvement
41) Successful sales presentations convert product features into:
A) closed sales
B) buyer benefits
C) product applications
D) selling appeals
E) research statistics
42) The speed rating assigned to a motorcycle tire is an example of product:
A) qualities
B) applications
C) features
D) benefits
E) design
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43) Paula Hillison sells a line of copy machines that feature a "quick change" toner cartridge.
The empty toner cartridge can be replaced quickly, without any mess, in a matter of seconds.
Which of the following statements represents the most effective presentation of this feature?
A) "We have recently developed the only office copy machine that features a quick change toner
cartridge."
B) "After years of research and development, our engineers have developed a quick change toner
cartridge."
C) "If you purchase one of our copy machines, you will enjoy the benefits of a quick change
toner cartridge."
D) "All of our copy machines are equipped with a quick change toner cartridge, which means
you no longer waste time replacing an empty toner cartridge."
E) "We have set a new industry standard with the quick change toner cartridge."
44) Which of the following is a buyer benefit that could be used by a person selling automobile
tires?
A) steel belted
B) service in all 50 states
C) 30,000-mile rating
D) manufactured in the U.S.A.
E) greater driving safety
45) Which of the following statements regarding product benefits is most likely true?
A) People do not buy benefits, they buy features.
B) A benefit provides the customer with a personal advantage.
C) Prospects usually display equal interest in features and benefits.
D) Product features and benefits are the same but presented differently to consumers.
E) Salespeople should avoid describing features and focus exclusively on product benefits.
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46) Which of the following statements regarding general and specific benefits is most likely
true?
A) Benefit statements linked to explicit needs are not especially effective for complex sales.
B) A feature statement is general, but any benefit is specific when presented as an advantage.
C) A general benefit is a product feature for which the buyer has not expressed a need.
D) Experienced salespeople focus on bringing attention to a product's general benefits.
E) Highlighting as many general benefits as possible during a presentation tends to lead to a sale.
47) In terms of product knowledge, salespeople:
A) can know too much about the products they sell
B) are often better off appearing to be "in the dark" at times
C) should provide prospects with limited product information
D) cannot, generally, know too much about the products they sell
E) should assume the stance of novice users to develop customer empathy
48) When developing a product strategy, the salesperson must:
A) review information on consumer motivation
B) adopt the marketing concept
C) adopt the sure-win philosophy
D) consider price above other aspects of the product
E) use feature-benefit analysis
49) Salespeople who love their products, and possess vast product knowledge, sometimes
overload their customers with product data that is neither wanted nor needed. Which term best
describes this?
A) product integration
B) win-win selling
C) customer overload
D) feature dump
E) solution selling
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50) Which of the following should Clyde most likely emphasize when developing marketing
materials for Quick-Clean?
A) environmental impact of Quick-Clean and E-Z Clean washing machines
B) negative aspects of E-Z Clean services in comparison to Quick-Clean
C) benefits to customers of using Quick-Clean
D) statistical data about Quick-Clean sales
E) features offered by Quick-Clean
51) Before teaming up with another company, the strategic alliance buyer should learn about the
firm the salesperson represents.
52) Prospects are likely to use past performance of a company to evaluate the quality of the
current product offering.
53) Product knowledge has been ranked the number one characteristic of salespeople who are
able to build trust.
54) The customer who asks, "How many miles per gallon does the Honda CRV get?" is
requesting a type of product knowledge known as ________.
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55) ________ refers to the distinct norms, beliefs, behaviors, and work patterns of a company.
56) In a sales presentation, your knowledge of the product's features and your company's
strengths must be presented in terms of the resulting ________ to the buyer.
57) The training consultant feels that the sales representatives need to understand the entire
market to put their customers' needs and buying motives in context. To understand the entire
industry, the training consultant recommends that the sales representatives learn more about:
A) customers' business plans
B) competitor companies' products and pricing
C) management's five-year plan
D) the history of the lumber industry
E) the close rates of other sales reps in the company
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58) The sales director discovers that salespeople have been discussing competitors in an effort to
introduce doubt about competing products to prospects. Why has this backfired?
A) Discussing competitors makes the prospects wonder why the salespeople are so interested,
and the prospects do research on the competitors.
B) Prospects assume that the salespeople must be representing the competing companies, so they
send their orders in to the incorrect companies.
C) The insecurity that leads the salespeople to discuss their competitors with prospects also
prevents the salespeople from asking for the sale.
D) Prospects cannot understand the nuances of the competing features of the products until they
have used both products.
E) Salespeople are inadvertently discussing the benefits of competing products instead of the
ways in which they fall short of their own products.
59) One way to neutralize a competitor's proposal is by adding ________ to your own proposal.
60) Throughout the sales presentation, it is usually best to:
A) describe the weakness of competing products
B) discuss competing products even if you are unfamiliar with them
C) avoid shifting attention away from your product to competing products
D) refuse to answer any questions about competing products
E) be proactive about discussing competing products
61) Customers can be a source of product and company information for salespeople because:
A) customers do not trust the information salespeople give them
B) customers often do research on all options before buying
C) customers will trade information for discounts on products
D) salespeople do not have access to research that customers can find on the internet
E) salespeople tend to be less biased than are customers
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62) Clyde realizes that to improve sales he needs to fully understand the services and value
offered by E-Z Clean and other laundromats in the area. Which of the following would be the
LEAST useful resource for Clyde?
A) competitors' websites
B) competitors' press releases
C) appliance brands used by the competition
D) marketing materials used by the competition
E) pricing and service structures of the competition
63) One way to neutralize a competitor's proposal that beats your price or terms is by employing
a value-added approach.
64) Many companies believe that salespeople should visit the manufacturing plant and see the
production process firsthand.
65) In the field of personal selling, customers represent an important source of product
information.
66) A salesperson should mention a competing product as soon as possible during the sales
presentation to overcome objections.
67) Plant tours do not represent a good source of product information.
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68) List the seven sources of product information available to salespeople.
69) Which of the following is an example of a bridge statement?
A) "You will get good gas mileage when you buy this car."
B) "These are the finest fund-raising donuts you can buy."
C) "This hotel has 24-hour room service and free parking."
D) "Buy one, get one at half price."
E) "We have trained technicians, so you will experience less downtime."
70) Which of the following statements about sources of product knowledge is most likely true?
A) Company product literature is of less value to salespeople than it is to customers.
B) The best source of information on the product is the director of sales.
C) Plant tours would be of little value to people in retail and service selling.
D) A salesperson cannot really understand the product until spending time on the manufacturing
line producing it.
E) Examining and using the product can give a salesperson in-depth knowledge of its features.
71) The primary benefit of providing online product information to salespeople is that the
information:
A) allows software integration
B) builds customer relationships
C) highlights product benefits
D) can be accessed at any time
E) can be redesigned easily
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72) A problem a salesperson could run into with regard to knowing the product extensively is:
A) relying on written proposals
B) conducting a thorough presentation
C) knowing more than other salespeople
D) exhibiting a bad attitude at sales meetings
E) misjudging the customer's product knowledge
73) Which of the following is a product benefit rather than a feature?
A) five contour blades
B) cuts printing time in half
C) reaches speeds of 42 miles per hour
D) rust-resistant
E) monthly billing available
74) A general benefit shows how a feature can be helpful to a buyer, but it does not relate to a
specific need expressed by the buyer.
75) A benefit is whatever provides the customer with personal advantage or gain.
76) One of the best ways to present benefits is to use a bridge statement.
77) A(n) ________ is a transitional phrase that connects a statement of features with a statement
of benefits.
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78) Give the definitions of a feature and a benefit.

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