Deck 18: Personal Selling and Sales Promotion

Question 1

Effective sales persons must be able to focus on their customer's needs and create solutions to meet those needs.

Answer 1

True

Question 2

An approach is a salesperson's initial contact with the customer.

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

Personal selling is an important component of the promotional mix for a firm that markets to relatively few potential customers.

Question 5

When making a presentation, sales professionals typically connect a buyer's needs to the benefits of the product.

Question 6

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.

Question 7

Existing customers of a firm whose business problems require complex solutions are likely to be best served by telemarketers in the firm.

Question 8

Precall planning involves making unsolicited sales calls on randomly selected prospects.

Question 9

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.

Question 10

The steps in a sales process follow the AIDA (attention, interest, desire, action) concept.

Question 11

Taking steps to determine that a potential customer has the need, financial capability, and authority to make a purchase is called canvassing.

Question 12

Field selling is more expensive than other selling options and often requires considerable technical expertise.

Question 13

If a product or service being sold requires relatively little special handling, marketers typically emphasize personal selling in their promotional mix.

Question 14

Firms engage in precall planning to understand the needs and preferences of the customer before making a presentation.

Question 15

Personal selling is more costly and time consuming compared to other types of promotion.

Question 16

To be identified as a qualified prospect, a customer must meet certain criteria including having the resources and the authority to make purchase decisions.

Question 17

Over-the-counter personal selling efforts are frequently supplemented with other promotions such as special sales events, new product introductions, and direct-mail appeals.

Question 18

Inside sales reps support field representatives in building strong customer relationships.

Question 19

Over-the-counter selling usually requires the customer to take the initiative and travel to the seller's place of business.

Question 20

A salesperson assigned to answer the telephone and take orders or answer customers' questions is involved in outbound telemarketing.

Question 21

Sales promotions often lead to sales and profit growth in the long run.

Question 22

A straight salary plan could reduce the incentive to find new markets and land new accounts.

Question 23

A salesperson should be judged on the basis of potential ability rather than the actual sales performance.

Question 24

An important advantage of personal selling is that it gives the customer the opportunity to try a product before making a purchase.

Question 25

A straight salary plan for sales representatives gives management more control over how sales personnel allocate their efforts.

Question 26

Companies should create and enforce corporate cultures that reduce the opportunity for sales representatives to engage in unethical behavior.

Question 27

Recruiting and selecting successful salespeople are among the greatest challenges faced by a sales manager.

Question 28

The follow-up step in the sales process allows the salesperson to psychologically reinforce the customer's original decision to buy.

Question 29

Sales promotions encourage immediate action as they impose limited time frames.

Question 30

Closing, in which the salesperson asks the customer for a buying commitment, is the last step in the sales process.

Question 31

Personal selling and advertising are part of the marketing activities involved in a sales promotion.

Question 32

A salary is a payment tied directly to the sales or profits that a salesperson generates.

Question 33

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.

Question 34

The effectiveness of a salesperson is measured entirely on the basis of the sales volume and profitability.

Question 35

The concept of span of control refers to the number of sales representatives who report to first-level sales managers.

Question 36

A sales quota is often tied to the compensation system.

Question 37

Sales quotas are specified sales or profit targets that salespeople are expected to achieve.

Question 38

The follow-up step in the sales process often determines whether an individual who has made a recent purchase will become a repeat customer.

Question 39

Business firms that market highly technical and complex products will have a specialized sales force for each major category of the firm's products.

Question 40

A sweepstakes chooses winners from a group of people who have purchased the product.

Question 41

A customer-focused firm wants its sales representatives to:

A) work on commission because it motivates them to engage in quick sales.
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.

Question 42

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

Question 43

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

Question 44

Firms spend more on consumer-oriented sales promotions than on trade promotions.

Question 45

When sales professionals utilize creative efforts to call on prospects or existing customers at their businesses or homes, they are involved in:

A) telemarketing.
B) field selling.
C) over-the-counter selling.
D) inside selling.

Question 46

_____ is a personal selling function that involves identifying potential customers.

A) Screening
B) Prospecting
C) Approaching
D) Processing

Question 47

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.

Question 48

_____ 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

Question 49

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.

Question 50

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.

Question 51

Point-of-purchase advertising is a form of consumer-oriented sales promotion.

Question 52

Trade shows provide an effective opportunity to showcase products and services, meet with customers, and generate sales leads.

Question 53

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.

Question 54

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.

Question 55

A national grocery store runs an advertisement offering a coupon to "buy one get one free" on packages of Thomas' English muffins to consumers. This is an example of a trade-oriented promotion.

Question 56

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.

Question 57

Sales professionals who utilize inbound telemarketing and their extensive knowledge to assist customers via phone and also support a field sales force are known as:

A) customer sampling sales reps.
B) inside selling professionals.
C) relationship marketing sales reps.
D) over-the-counter selling professionals.

Question 58

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.

Question 59

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

Question 60

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.

Question 61

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.
D) interested customer.

Question 62

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

Question 63

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

Question 64

Prior to making the approach to a potential customer, the salesperson should:

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.

Question 65

Which of the following is the most effective way for a sales manager to motivate salespeople to give their best?

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

Question 66

The process of qualifying a sales prospect includes:

A) gathering information about the prospect to make initial contact go more smoothly.
B) determining a potential customer's needs, financial resources eligibility to purchase, 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.

Question 67

A _____ is a payment tied directly to the sales or profits a salesperson achieves.

A) fixed pay
B) commission
C) salary
D) periodic payment

Question 68

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.

Question 69

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

Question 70

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.

Question 71

_____ 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

Question 72

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.

Question 73

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.

Question 74

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.

Question 75

Salespeople usually face difficulties in:

A) approaching potential buyers.
B) precall planning.
C) closing the sale.
D) following up after the sale.

Question 76

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.

Question 77

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
D) prospecting

Question 78

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.

Question 79

Which of the following functions poses a great challenge to sales managers?

A) Training
B) Recruitment and selection
C) Supervision
D) Organization

Question 80

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