Deck 17: Personal Selling and Sales Promotion

Question 1

Identify four consumer and four trade sales promotion techniques, and describe each one.

Answer 1

Students can pick any four items from each section (consumer sales promotion and trade sales promotion). Some of consumer sales promotion methods are coupons, cents-off offers, money refunds, rebates, frequent-user incentives, point-of-purchase materials and demonstrations, free samples, premiums, consumer contests, consumer games, and consumer sweepstakes.
Coupons: Coupons reduce a product's price and aim to prompt customers to try new or established products, increase sales volume quickly, attract repeat purchasers, or introduce new package sizes or features.
Cents-off offers: With cents-off offers, buyers pay a certain amount less than the regular price shown on the label or package.
Money refunds: With money refunds, consumers submit proof of purchase and are mailed a specific amount of money. Usually, manufacturers demand multiple product purchases before consumers qualify for money refunds.
Rebates: With rebates , the consumer is sent a specified amount of money for making a single product  purchase. Rebates are generally given on more expensive products than money refunds and are used to encourage customers.
Frequent-user incentives: Many firms develop incentive programs to reward customers who engage in repeat (frequent) purchases.
Point-of-purchase materials: Point-of-purchase (POP) materials include outdoor signs, window displays, counter pieces, display racks, and self-service cartons.
Demonstrations: Demonstrations are excellent attention-getters. Manufacturers offer them temporarily to encourage trial use and purchase of a product or to show how a product works.
Free samples: Marketers use free samples to stimulate trial of a product, increase sales volume in the early stages of a product's life cycle, and obtain desirable distribution.
Premiums: Premiums are items offered free or at a minimal cost as a bonus for purchasing a product.
Consumer contests: In consumer contests , individuals compete for prizes based on their analytical or creative skills. This method can be used to generate retail traffic and frequency of exposure to promotional messages.
Consumer games: In consumer games, individuals compete for prizes based primarily on chance-often by collecting game pieces like bottle caps or a sticker on a carton of French fries.
Consumer sweepstakes: Entrants in a consumer sweepstakes submit their names for inclusion in a drawing for prizes. Sweepstakes are employed more often than consumer contests and tend to attract a greater number of participants.
Some of trade sales promotion methods are buying allowances, buy-back allowances, scan-back allowances, merchandise allowance, cooperative advertising and dealer listings, free merchandise and gifts, premium money, and sales contests.
Buying allowances: A buying allowance is a temporary price reduction offered to resellers for purchasing specified quantities of a product.
Buy-back allowances: A buy-back allowance is a sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over.
Scan-back allowances: A scanback allowance is a manufacturer's reward to retailers based on the number of pieces moved through the retailers' scanners during a specific time period.
Cooperative advertising: Cooperative advertising is an arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products.
Dealer listings: Dealer listings are advertisements promoting a product and identifying participating retailers that sell the product.
Merchandise allowance: A merchandise allowance is a manufacturer's agreement to pay resellers certain amounts of money for providing promotional efforts like advertising or point-of-purchase displays.
Free merchandise: Manufacturers sometimes offer free merchandise to resellers that purchase a stated quantity of products.
Gifts: A dealer loader is a gift to a retailer that purchases a specified quantity of merchandise.
Premium money: Premium money (push money) is additional compensation offered by the manufacturer to salespeople as an incentive to push a line of goods.
Sales contest: A sales contest is designed to motivate distributors, retailers, and sales personnel by recognizing outstanding achievements.

Question 2

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.

Answer 2

B

Question 3

Differentiate between team selling and relationship selling.

Answer 3

Team selling involves the salesperson joining with people from the firm's financial, engineering, and other functional areas. Team selling is advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies like jet aircraft and medical equipment. It can be difficult, however, for highly competitive salespersons to adapt to a team selling environment.
Relationship selling, also known as consultative selling, involves building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time. Relationship selling involves finding solutions to customers' needs by listening to them, gaining a detailed understanding of their organizations, understanding and caring about their needs and challenges, and providing support after the sale.

Question 4

Identify and describe several ways to motivate sales personnel.

Question 5

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.

Question 6

Explain the major issues to consider when developing a sales training program.

Question 7

List the three major types of salespeople and indicate how they differ.

Question 8

What is the rationale for having sales force objectives, and how are they developed?

Question 9

Describe consumer sales promotion and trade sales promotion, and then explain how they differ.

Question 10

Identify the major features of effective sales force compensation plans.

Question 11

List three major types of sales force compensation methods. What are the advantages and disadvantages of each?

Question 12

Identify and discuss some of the key objectives in using sales promotion.

Question 13

Identify and discuss the general steps in the personal selling process.

Question 14

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.

Question 15

Explain how a salesperson's performance can be evaluated.

Question 16

Discuss the purpose of coupons in sales promotion.

Question 17

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.

Question 18

Discuss the major factors to consider when designing sales territories.

Question 19

How has the expenditure of promotional dollars on advertising, consumer sales promotion methods, and trade sales promotion methods changed in recent years?

Question 20

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.

Question 21

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.

Question 22

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

Question 23

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.

Question 24

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.

Question 25

The final stage of the selling process is

A) closing.
B) trial close.
C) presentation.
D) follow-up.
E) overcoming objections.

Question 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.

Question 27

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.

Question 28

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.

Question 29

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

Question 30

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.

Question 31

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

Question 32

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

Question 33

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.

Question 34

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.

Question 35

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.

Question 36

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.

Question 37

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

Question 38

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

Question 39

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.

Question 40

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.

Question 41

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.

Question 42

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.

Question 43

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

Question 44

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).

Question 45

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.

Question 46

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

Question 47

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.

Question 48

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.

Question 49

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.

Question 50

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.

Question 51

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.

Question 52

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

Question 53

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.

Question 54

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.

Question 55

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.

Question 56

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.

Question 57

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) the customer appears to be unhappy or agitated.
E) the salesperson begins the sales presentation.

Question 58

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.

Question 59

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

Question 60

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.

Question 61

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.

Question 62

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.

Question 63

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

Question 64

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

Question 65

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.

Question 66

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.

Question 67

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

Question 68

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

Question 69

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.

Question 70

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.

Question 71

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.

Question 72

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.

Question 73

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.

Question 74

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.

Question 75

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.

Question 76

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.

Question 77

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

Question 78

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.

Question 79

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

Question 80

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.