Question 1

An advantage of outsourcing the sales function is that selling costs can be shared with other manufacturers.If a company manufactures spark plugs,which would be the best company for them to share their outsourced salespeople with?
A)a company that manufactures spark plugs
B)a company that manufactures fan belts
C)a company that manufactures bicycle chains
D)a company that sells credit card processing services
E)a company that sells advertising in women's magazines

Accepted Answer

Sharing sales functions with a company that manufactures fan belts is advantageous because both products target similar markets (automotive industry), allowing for cost-effective cross-selling opportunities without direct competition.

Question 2

Which of the following is true of inside salespeople?
A)They may be within the company or outsourced,and they sell to customers at customer sites.
B)They may be within the company or outsourced,and they sell to customers from the company's site.
C)They are outsourced,and they sell to customers from the company's site.
D)They are kept within the company,and they sell to customers at customer sites.
E)They are kept within the company,and they sell to customers from the company's site.

Accepted Answer

Inside salespeople may be within the company or outsourced, but they typically sell to customers from the company's site. They are not usually sent to customer sites, as that would be the role of an outside salesperson. Therefore, option B is the most accurate description of inside salespeople.

Question 3

The sales function is different from the selling process for which reason?
A)The selling process is theoretical but the sales function is empirical.
B)The selling process is performed by sellers but the sales function is performed by buyers.
C)The sales function can only be carried out by salespeople,but the selling process refers to many methods of selling.
D)The sales function refers to many methods of selling,but the selling process is carried out by salespeople.
E)The sales function relies on metrics while the selling process relies on forecasts.

Accepted Answer

The sales function encompasses a broader range of activities and methods involved in selling a product or service, while the selling process specifically refers to the steps taken by salespeople to make a sale.

Question 4

Outsourcing is an increasingly-popular method of increasing profits.In what way can outsourcing selling activity benefit a company financially?
A)The average compensation per salesperson increases significantly.
B)Outsourced salespeople cost the company less money per sale.
C)Companies have to train the outsourced salespeople in American slang.
D)Some companies use a mix of in-house and outsourced salespeople.
E)Outsourced jobs may be filled either in the US or in foreign countries.

Accepted Answer

By outsourcing selling activity, a company can save money on overhead costs such as salaries, benefits, and training expenses. Outsourced salespeople can be paid on a commission basis, which means the company only pays them when they make a sale. This can result in a lower cost per sale for the company, ultimately increasing profits.

Question 5

The Board of Directors of GenTech Corporation,which manufactures silicone parts for use in surgical procedures,is urging the company's management to convert to an electronic data interchange system.Which of the following is NOT an advantage of electronic data interchange (EDI)?
A)lowered costs
B)real-time inventory management
C)increased human interaction
D)automatic reordering
E)efficient use of current technology

Accepted Answer

Electronic data interchange (EDI) reduces the need for human interaction, so it cannot be considered an advantage of the system.

Question 6

What is a supply chain?
A)A supply chain is everything that delivers a product to a buyer,from personnel to machines to technology.
B)A supply chain is the fleet of vehicles that deliver product from factories to retail locations.
C)A supply chain is all the elements of a manufacturing process,from machine design to transportation.
D)A supply chain is the hierarchy of personnel in charge of producing products for a company.
E)A supply chain is the detailed diagram of the sales process.

Accepted Answer

A supply chain encompasses all of the elements involved in delivering a product to a buyer, including personnel, machines, and technology. It includes manufacturing, transportation, storage, and logistics.

Question 7

Manufacturer's reps and distributors are both outsourced salespeople for a company.In what way is a manufacturer's rep different from a distributor?
A)A manufacturer's rep keeps an inventory of products,while a distributor does not.
B)A manufacturer's rep does not sell directly to contractors,while a distributor does.
C)A manufacturer's rep does not keep an inventory of products,while a distributor does.
D)A manufacturer's rep sells directly to contractors,while a distributor does not.
E)A manufacturer's rep is a type of field rep while a distributor is an inside salesperson.

Accepted Answer

A manufacturer's rep is an independent salesperson who contracts with a manufacturer to sell their products on their behalf, but they do not keep an inventory of products. Instead, they work to establish relationships with customers and promote the manufacturer's products. In contrast, a distributor buys products from a manufacturer and sells them to customers, often keeping an inventory of products. Therefore, choice C is the correct answer.

Question 8

The Director of Sales and Marketing for InNet Software Solutions is considering outsourcing salespeople,and is weighing the pros and cons of each approach.All of the following are advantages of keeping sales positions in-house instead of outsourcing EXCEPT:
A)a company can control the actions of its own employees,including non-sales job tasks.
B)a company can train the sales staff using its own methods
C)a company can control who they hire to sell for them
D)a company's salespeople will focus exclusively on selling that company's product line
E)a company's salespeople will have to learn American slang and expressions.

Accepted Answer

Learning American slang and expressions is not an advantage of keeping sales positions in-house. It is not relevant to the company's control over its employees, training, hiring, or focus on selling its product line.

Question 9

A salesperson can influence the supply chain passively or actively.All of the following are ways a salesperson can influence the supply chain actively EXCEPT:
A)The salesperson arranges for additional financing for the customer at lower rates than usual.
B)The salesperson works with the shipping department to arrange for special delivery methods for the customer.
C)The salesperson brings in product designers to modify the product for the customer.
D)The salesperson arranges for custom implementation at the customer's site.
E)The salesperson predicts the sales to one customer for the upcoming quarter.

Accepted Answer

Predicting sales to one customer for the upcoming quarter is not an action the salesperson can take to actively influence the supply chain. It is simply a forecast and does not involve any direct influence on the operations of the supply chain.

Question 10

Many companies,such as IBM,have turned to multiple sales channels to sell their products and services.Companies that use multiple sales channels find that this choice has which of the following effects?
A)Using multiple channels causes confusion,both for the customer and the sales force.
B)Using multiple channels causes harmony,as all the channels use the same salespeople.
C)Using multiple channels causes synergy,although it takes planning to make sure the channels compliment each other instead of competing.
D)Using multiple channels causes hostility,because the different channels bring commissions down for salespeople.
E)Using multiple channels causes efficiency,as all the channels are managed by the same person.

Accepted Answer

Using multiple sales channels can create synergy when they are planned and managed effectively to complement each other rather than compete. This can result in increased sales and a broader customer reach. However, it requires careful planning to avoid confusion among customers and sales force, and potential conflicts among the channels. Therefore, option C is the best choice.

Question 11

In what type of sales situation is a broker commonly used?
A)when the buyer is in one country and the seller is in another
B)when the buyer and the seller are divisions of the same company
C)when the buyer and seller are in the financial industry
D)when the buyer likes to place multiple orders from the same seller
E)when the buyer and seller have radically different metrics for success

Accepted Answer

Brokers are commonly used in situations where the buyer and the seller are in different countries and require a third party to facilitate the sale. This is often the case in international trade, where brokers can help navigate language and cultural barriers, as well as legal and logistical challenges.

Question 12

The Director of Sales at Hewitt Heavy Machinery asks all salespeople to write weekly sales forecasts.Once a salesperson writes a forecast,she or he posts it on the company's intranet so employees in other departments can access it.Which of the following employees would be LEAST likely to use the information in those weekly sales forecasts?
A)the customer service manager,who manages and schedules customer service employees
B)a tech support employee,who fields tech support calls and emails from customers
C)the accounting clerk,who bills clients and pays creditors
D)an auditor evaluating Hewitt's financial disclosure documents,checking for violations of law
E)a shipping coordinator,who sequences and expedites shipping to customers

Accepted Answer

An auditor evaluating financial disclosure documents would be focused on financial information such as revenue, expenses, and profits rather than individual sales forecasts. Customer service, tech support, accounting, and shipping departments are more closely linked to sales information and would be more likely to use the sales forecasts.

Question 13

Service providers that manage outsourced salesforces in foreign countries have all of the following challenges EXCEPT:
A)They have to train the workers to speak English with an American accent and using American expressions.
B)They have to set metrics in collaboration with the client company.
C)They have to write and implement the correct sales script for the client.
D)They have to sync their customer information tracking technology with the client's system.
E)They have to provide a college education for their workers.

Accepted Answer

The service providers are not responsible for providing a college education for their workers. Rather, they are responsible for managing the outsourced salesforce in foreign countries by training them to speak English with an American accent, setting metrics in collaboration with the client company, writing and implementing the correct sales script for the client, and syncing their customer information tracking technology with the client's system.

Question 14

If a company wanted to keep its salespeople within the company but wanted to outsource non-sales jobs,all of the following jobs could be outsourced EXCEPT
A)answering customer inquiries about installation
B)shipping product to customers
C)setting appointments for sales calls
D)sending bills to customers and following up to make sure they are paid
E)providing customers with pricing and product information before the sale

Accepted Answer

Providing customers with pricing and product information before the sale is typically a part of the sales process, which involves direct interaction with potential customers to facilitate a sale. Outsourcing this task could compromise the effectiveness of the sales strategy and customer experience, making it less suitable for outsourcing compared to the other options listed.

Question 15

Which of the following is LEAST likely to influence a customer's purchase?
A)a personal relationship with the salesperson
B)the company selling the particular product they want.
C)a choice of ways in which they can buy the product
D)a competitive price for the product
E)the sales forecast from the company

Accepted Answer

A customer is unlikely to be influenced by a sales forecast from the company as it is an internal measure used by the company to predict sales and does not directly affect the customer's decision to purchase a product. Factors such as personal relationships with salespeople, the reputation of the company, the availability of different purchasing options, and competitive pricing are more likely to influence a customer's purchase decision.

Question 16

A manufacturer's rep can sell one single product line,or can sell for non-competing companies (also known as "principals").What would be the main advantage for the manufacturer's rep of selling multiple product lines?
A)The manufacturer's rep would then become a "one-stop shop" for that industry,and would be able to leverage interest in one product line to sell more of others to the same customers.
B)The manufacturer's rep would sell fewer of each type of product but more products overall,thereby carrying less risk if the economy starts to soften.
C)The principals would give the manufacturer's rep a higher commission because the rep was carrying products from multiple principals,and they would feel the need to compete with each other for the rep's loyalty.
D)The principals would monitor the manufacturer's rep's sales closely to make sure the rep was not selling more of other product lines and neglecting theirs.
E)The principals would be able to sell their product through many different manufacturer's reps in the same geographic area.

Accepted Answer

Selling multiple product lines allows the manufacturer's rep to become a one-stop shop for customers, which can lead to increased sales of all product lines. The rep can leverage customers' interest in one product line to sell more of others to the same customers.

Question 17

Apex Ink Producers is considering moving from using its current salesperson-based sales channel to a multiple channel model.Which of the following is a reason Apex would use multiple sales channels instead of a single channel?
A)The company's sales model channels all customers through its web portal.
B)The company's customers would like to purchase products using various methods.
C)The company's costs associated with multiple channels are sure to be offset by increased margins on products.
D)The company's sales staff is requesting flex-time.
E)The company's customer base is located in multiple areas all over the country.

Accepted Answer

Using multiple sales channels allows customers to purchase products using various methods, catering to different preferences and potentially increasing sales.

Question 18

What does the word "purify" mean in terms of the sales function?
A)It means to change the ways non-sales activities occur so they cost the company less.
B)It means to ask all employees,regardless of job function,to sell to any customer they have contact with.
C)It means to carefully consider the product line and eliminate products that do not sell well.
D)It means to convert factories and production lines to have the least environmental impact possible.
E)It means to choose the most expensive method to reach customers.

Accepted Answer

The answer of What does the word "purify" mean in...

Question 19

Another word for "channel" in the phrase "sales channel" is:
A)groove
B)staff
C)method
D)website
E)order

Accepted Answer

In the phrase "sales channel," "channel" refers to the method or pathway through which a business sells its products or services. Therefore, the best choice is C, method.

Question 20

Reverse auctions are one method that uses the internet to facilitate sales of products and services.Reverse auctions tend to provide the price advantage for:
A)the vendor
B)the licensee
C)the wholesaler
D)the broker
E)the customer

Accepted Answer

Reverse auctions allow customers to request bids from multiple vendors, which often results in lower prices for the customer. Therefore, the price advantage is for the customer.

Quiz 2: The Sales Function and Multi-Sales Channels

An advantage of outsourcing the sales function is that selling costs can be shared with other manufacturers.If a company manufactures spark plugs,which would be the best company for them to share their outsourced salespeople with?

Which of the following is true of inside salespeople?

The sales function is different from the selling process for which reason?

Outsourcing is an increasingly-popular method of increasing profits.In what way can outsourcing selling activity benefit a company financially?

The Board of Directors of GenTech Corporation,which manufactures silicone parts for use in surgical procedures,is urging the company's management to convert to an electronic data interchange system.Which of the following is NOT an advantage of electronic data interchange (EDI) ?

What is a supply chain?

Manufacturer's reps and distributors are both outsourced salespeople for a company.In what way is a manufacturer's rep different from a distributor?

The Director of Sales and Marketing for InNet Software Solutions is considering outsourcing salespeople,and is weighing the pros and cons of each approach.All of the following are advantages of keeping sales positions in-house instead of outsourcing EXCEPT:

A salesperson can influence the supply chain passively or actively.All of the following are ways a salesperson can influence the supply chain actively EXCEPT:

Many companies,such as IBM,have turned to multiple sales channels to sell their products and services.Companies that use multiple sales channels find that this choice has which of the following effects?

In what type of sales situation is a broker commonly used?

Service providers that manage outsourced salesforces in foreign countries have all of the following challenges EXCEPT:

If a company wanted to keep its salespeople within the company but wanted to outsource non-sales jobs,all of the following jobs could be outsourced EXCEPT

Which of the following is LEAST likely to influence a customer's purchase?

A manufacturer's rep can sell one single product line,or can sell for non-competing companies (also known as "principals") .What would be the main advantage for the manufacturer's rep of selling multiple product lines?

Apex Ink Producers is considering moving from using its current salesperson-based sales channel to a multiple channel model.Which of the following is a reason Apex would use multiple sales channels instead of a single channel?

What does the word "purify" mean in terms of the sales function?

Another word for "channel" in the phrase "sales channel" is:

Reverse auctions are one method that uses the internet to facilitate sales of products and services.Reverse auctions tend to provide the price advantage for: