Deck 2: Relationship Marketing: Where Personal Selling Fits

Question 1

A "product" is a bundle of tangible attributes, while intangible attributes are called a "service."

Answer 1

False

Question 2

A firm's marketing mix consists of product, price, place, and performance.

Answer 2

False

Question 3

A transaction is a trade of values between two parties.

Answer 3

True

Question 4

Before the Great Depression, few firms had either sales or marketing departments.

Question 5

Firms typically spend more money on advertising and promotion than on the sales force.

Question 6

Relationship marketing is based on an idea that important customers need continuous attention.

Question 7

The purpose of business is to increase the general well-being of humankind through the sale of goods and services.

Question 8

One of the fundamental beliefs of the marketing concept is that all company planning and operations should be customer oriented.

Question 9

A company practicing the marketing concept bends consumer demand to fit the company's supply.

Question 10

There are two types of products: consumer and industrial.

Question 11

Marketing helps generate sales by providing the quality of service customers expect.

Question 12

The trend in relationship marketing today is away from creating customers for tomorrow to selling well to customers today.

Question 13

Soon after World War II, most firms focused on training salespeople in effective selling techniques and developing products to meet the needs of customers.

Question 14

Wholesalers are in the distribution channels exclusively for industrial products, whereas retailers deal with consumer products.

Question 15

"Household" refers to a decision-making unit buying for personal use.

Question 16

"Government" is an organization that supplies goods and services to households and firms.

Question 17

The corporate marketing department determines each product's initial price.

Question 18

The promotional element of the marketing mix is designed to increase company sales by communicating product information to potential customers.

Question 19

The typical salesperson sells either goods or services, but not both.

Question 20

The difference between the selling and marketing concepts is that in selling the emphasis is on customers' wants.

Question 21

Technology has advanced so rapidly that it has become a burden to sales managers and sales representatives in certain industries.

Question 22

Virtually every product you see in any retail store was sold to it by a salesperson.

Question 23

Relationship marketing and the marketing concept both emphasize sales volume and product features.

Question 24

_____ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

A) Consumerism
B) Profit maximization
C) Marketing
D) Salesmanship
E) Professional selling

Question 25

Transaction selling is practiced by firms producing low-profit, low-priced products.

Question 26

Salespeople who fulfill the consultative role of long-term ally work to eliminate the relationship gap.

Question 27

In the role of team leader, the salesperson coordinates all of the information, resources, and activities needed to support customers before, during, and after the sale.

Question 28

The goal of partnering is that the profits are shared by the buyer and seller, but the risk is borne by the buyer alone.

Question 29

Which of the following statements about transactions and exchanges is most likely true?

A) Service-oriented businesses have exchanges but no transactions.
B) Marketing-oriented businesses have transactions but no exchanges.
C) The completion of an exchange is unrelated to the occurrence of a transaction.
D) Once a transaction has occurred, the exchange is complete.
E) The terms "transaction" and "exchange" can be used as synonyms.

Question 30

A bartering relationship, such as when Patricia agrees to take care of Timothy's horses and receives in return free riding lessons, is an example of:

A) an exchange.
B) top-to-top partnering.
C) relational marketing.
D) transactional partnering.
E) consultative selling.

Question 31

Marketing's main customer contacts are buyers.

Question 32

The main function of personal selling is to build relationships with customers.

Question 33

According to the text, what are the two major functions of a business firm?

A) Strategies and tactics
B) Production and marketing
C) Production and selling
D) Selling and marketing
E) Buying and selling

Question 34

As a business consultant, the salesperson gives advice and service to the customer.

Question 35

Customers tend to become less price-sensitive when they become accustomed to dealing with a salesperson.

Question 36

Companies that put partnering into practice find they increase conflicts of interest between themselves and their clients.

Question 37

In transaction selling, the seller contacts customers after the purchase to determine if they are satisfied and have future needs.

Question 38

Service quality is an objective assessment determined by customers who compare service levels with industry benchmarks.

Question 39

Today, the typical sales call focuses on a specific product and is tightly controlled by the salesperson.

Question 40

You are giving a tour of businesses to several classical musicians from China. One of the Chinese in the tour group has asked you to define the purpose of business. How should you answer this question?

A) Produce goods and then wait for consumers to buy them
B) Encourage consumers to buy products they may not want
C) Speed up changes in the economic environment
D) Create large profit-oriented organizations
E) Increase the general well-being of people by selling goods and services

Question 41

Businesses that have a marketing orientation:

A) are sales-volume oriented.
B) emphasize the product over the other marketing mix elements.
C) first make the product and then figure out how to sell it.
D) emphasize long-term planning.
E) stress the needs of sellers.

Question 42

A sales representative in the 1940s would most likely receive training from an employer on which of the following topics?

A) Customer service
B) Product features
C) Market analysis
D) Sales presentations
E) Promotional techniques

Question 43

The headline of an advertisement for a 1930s automobile manufacturer read, "We know what our customers want! They want our new luxury sedan!" You can infer from reading this headline that the manufacturer had a(n) _____ orientation.

A) customer
B) environmental
C) marketing
D) production
E) promotion

Question 44

Which of the following links customers and organizations?

A) Marketing group
B) Top management
C) Production department
D) Human resources department
E) Staff-level employees

Question 45

Before the Great Depression of the 1930s, companies were primarily focused on:

A) production.
B) bartering.
C) customer service.
D) relationship marketing.
E) social responsibility.

Question 46

The major thrust of the marketing concept is to:

A) sell the product at a low cost to customers.
B) satisfy customers, no matter what the costs.
C) satisfy customer wants, while still making a profit.
D) distribute products more equitably.
E) maximize stakeholder relationships.

Question 47

Ford is offering customers $1,000 cash back if they purchase a Ford Focus in the month of December. Which component of the marketing mix is most likely illustrated by Ford's tactic?

A) Destination
B) Presentation
C) Product
D) Distribution
E) Price

Question 48

Businesses that have a selling orientation:

A) emphasize the product over all other marketing mix elements.
B) train salespeople to analyze customer wants and needs.
C) emphasize long-term planning and globalization.
D) identify customer wants before making products.
E) pursue consumer satisfaction as a primary objective.

Question 49

Which of the following statements about products, goods, and services is true?

A) Products are a bundle of purely intangible attributes.
B) Services are tangible products.
C) Goods are physical objects that can be purchased.
D) Salespeople never or rarely sell services.
E) Products only refer to physical objects.

Question 50

Roy loves cooking and recently quit his job as an engineer to open a restaurant in a small, rural town. Roy serves the most exquisite cuisine in an elegant atmosphere. Nevertheless, sales have been so slow that Roy may have to close the restaurant. Roy's only competitor is a very successful café that serves your choice of one meat, three vegetables, and dessert cooked "country style" with tea or coffee for under $6.00 per person. Roy's business is most likely struggling because Roy has a _____ orientation.

A) customer
B) selling
C) marketing
D) production
E) promotion

Question 51

The marketing manager of NevaFlat Tire Company must make the firm's products available to customers in convenient locations. This activity is associated with the _____ element of the marketing mix.

A) facility
B) availability
C) direction
D) distribution
E) promotion

Question 52

When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons on how to safely enjoy jet skis. Neither the financing nor the lessons were included in the price of the Jet Ski; both are examples of:

A) value-added benefits.
B) bundling.
C) profit maximization.
D) privileges.
E) add-on pricing.

Question 53

In order for a firm to realize the full benefits of the marketing concept, that philosophy must be translated into action. This means marketing activities must be fully coordinated, well managed, and:

A) the mission statement must be time-sensitive.
B) management must have a sales volume orientation.
C) the company must rely on short-term strategic windows.
D) the chief marketing executive must be given a key role in company planning.
E) marketing goals must be customer-oriented, nonspecific, flexible, and quantitative.

Question 54

The four main elements of the marketing mix are:

A) product, packaging, people, and price.
B) price, process, prestige, and product.
C) promotion, product, prestige, and price.
D) product, price, place, and promotion.
E) place, production, packaging, and promotion.

Question 55

_____ purchase products and then sell the products to organizations and/or individuals.

A) Transactional intermediaries
B) Resellers
C) Value-added specialists
D) Manufacturers
E) End-users

Question 56

Customers fall into one of three groups. They are:

A) individuals, households, and other businesses.
B) stakeholders, governments, and nonprofit groups.
C) households, firms, and governments.
D) retailers, wholesalers, and consumers.
E) governments, stakeholders, and manufacturers.

Question 57

The development of package design, trademarks, warranties, and service policies is associated with the _____ element of the marketing mix.

A) product
B) presentation
C) price
D) place
E) promotion

Question 58

Which of the following statements is most likely true?

A) Products are tangible but not intangible.
B) Products contain many value-added features.
C) Salespeople sell goods and services but not products.
D) Product is a term that refers to both goods and services.
E) Three general types of products exist: consumer, industrial, and global.

Question 59

As a customer, a government is best described as an organization that:

A) provides goods and services to households and firms.
B) produces goods for profit and global redistribution.
C) sells products at wholesale prices to other nations.
D) promotes local and national businesses.
E) manages the exchange process.

Question 60

The main role of marketing in an organization is to:

A) use revenues to create new products.
B) manage financial resources to meet legal requirements.
C) generate sales so the company can stay in business.
D) serve as a conduit between the firm and its stakeholders.
E) identify and correct quality control issues.

Question 61

Which type of selling would most likely be used when a firm sells low-priced products to customers who are geographically dispersed?

A) Benefit selling
B) Relationship selling
C) Partnering
D) Team-based
E) Transaction selling

Question 62

The appearance of actor Sarah Jessica Parker in commercials for The Gap, a retail store, is an example of the use of the _____ element of the marketing mix.

A) sales presentation
B) personal selling
C) product
D) profit
E) promotion

Question 63

_____ involves activities or materials used to create sales for goods and services, such as coupons and sales contests.

A) Direct selling
B) Public relations
C) Customer service
D) Sales promotion
E) Advertising

Question 64

The goal of an organization when creating its _____ is to create the right product, at the right price, at the right time, with the right promotional effort.

A) sales promotion
B) mission statement
C) operational plan
D) vision statement
E) marketing mix

Question 65

Relationship marketing is based on the idea that:

A) important customers need continuous attention.
B) a salesperson can never really know too many people.
C) the burden of quality rests with the seller of the product.
D) a salesperson is only as successful as the product being sold.
E) friends and referrals are the key to long-term sales performance.

Question 66

Which of the following statements about personal selling is true?

A) It falls under the marketing mix category of promotion.
B) It is the primary tool of non-personal communication.
C) It involves giving free samples and coupons to potential buyers.
D) It is the communication of information that is not paid for by the firm.
E) It is divided into consumer and trade personal selling.

Question 67

In most cases, which of the following receives the highest percentage of a firm's promotional budget?

A) Commercials
B) Sales force
C) Human resources
D) Public relations
E) Print advertising

Question 68

_____ marketing is the creation of customer loyalty.

A) Transaction
B) Relationship
C) Value-added
D) Continuous
E) Covenant

Question 69

When you visit a gift shop while on vacation, your purchase of a T-shirt would be an example of _____ selling.

A) team
B) relationship
C) partnership
D) consultative
E) transaction

Question 70

_____ are composed of multifunctional specialists who ensure that their organizations convey their needs to the seller and evaluate the accuracy of the supplier's recommendations.

A) Buying teams
B) Focus groups
C) Executive juries
D) Customer advisors
E) Selling teams

Question 71

In the role of team leader, the consultative salesperson:

A) can be called a "lone ranger."
B) encourages business that is not in the customer's long-term interest.
C) brings together all the organization's resources for the customer.
D) expects customers to provide all the confidential information before making purchase recommendations.
E) considers his/her job complete once the sale is over.

Question 72

The text defines _____ as "personal communication of information to unselfishly persuade a prospective customer to buy something that satisfies an individual's needs."

A) promotion
B) personal selling
C) publicity
D) sales promotion
E) advertising

Question 73

Through use of ________, marketers can determine the customers with whom they wish to build a partnering relationship.

A) the principle of unbundling
B) benefit maximization
C) the 80/20 principle
D) value-driven marketing
E) the iceberg principle

Question 74

Which term refers to the process of helping the customer achieve strategic goals through use of the seller's good and/or service?

A) Consultative selling
B) Transactional selling
C) Aggressive selling
D) Telemarketing selling
E) One-time selling

Question 75

When Ford Motor Company pays to use nonpersonal communication to present information to potential buyers, it is using which promotional activity?

A) Multilevel marketing
B) Personal selling
C) Publicity
D) Direct selling
E) Advertising

Question 76

The marketing manager for a large furniture store has received numerous complaints about the store's delivery personnel. While the manager believes his delivery personnel do a good job because the deliveries are made quickly and generally at their scheduled time, customers find the delivery personnel rude. The marketing manager must deal with problems associated with:

A) social responsibility.
B) promotional integrity.
C) marketing strategy.
D) value-added pricing.
E) service quality.

Question 77

Which of the following is a unique benefit of personal selling?

A) Highlighting product features
B) Achieving high sales at minimal costs
C) Explaining credit terms to potential customers
D) Customizing presentations to match customer needs
E) Reaching mass audiences quickly and cost effectively

Question 78

When Stuart sold a computer network to a Fortune 500 company, he often called on the company's purchasing department to see if employees were satisfied with the network and to see if the company had any need for an upgrade or additional software. This is an example of:

A) transformational selling.
B) aggressive selling.
C) relationship selling.
D) transaction selling.
E) sales promotion.

Question 79

Margaret is unhappy about her experience with All-Brand Appliance Store. When she purchased a new refrigerator on Monday, she explained that her old one had stopped functioning and that speedy delivery of the new one was vital because she was trying to keep her food fresh in an ice chest. It is late Thursday afternoon and her refrigerator has not yet arrived. Margaret is unhappy with All-Brand's:

A) social responsibility.
B) ethical ombudsmanship.
C) marketing strategy.
D) sales quotas.
E) service quality.

Question 80

Which marketing mix activity is being used when the salesperson participates in a trade show or uses telemarketing?

A) Pricing
B) Distribution
C) Direct sales
D) Product
E) Promotion