Question 1

Trade sales promotions are popular among manufacturers because they can do all of the following at trade shows EXCEPT

Accepted Answer

Trade shows are not typically used to create any type of long-term relationships.

Question 2

Which of the following best describes relationship selling?

Accepted Answer

Relationship selling is also called consultative selling.It is more concerned with developing customer trust than with making a sale.Typically,industrial-type goods are sold using relationship selling.

Question 3

Which of the following is a sales practice that involves building,maintaining,and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships?

Accepted Answer

Relationship selling involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Networking is a method of making new contacts and building relationships, while adaptive selling and stimulus-response selling are focused on adapting to the customer's needs in the moment, rather than building long-term relationships.

Question 4

Which of the following statements does NOT describe an advantage personal selling has over other forms of promotion?

Accepted Answer

Personal selling is more expensive than mass advertising or sales promotions when calculated on a per-person-contacted basis.

Question 5

For which of the following products would its producer be more likely to choose personal selling rather than advertising or sales promotion to market it?

Accepted Answer

Washing machine/dryer combos are complex,buyers purchase them only infrequently,and the product has a high value.

Question 6

After deciding to end its backing of Canada's top tennis tournament,Molson has now agreed to sponsor the Canadian Open Tennis Championships in a new five-year,$20 million rights fee and media deal.Which promotional activity was most likely used in making this deal?

Accepted Answer

Personal selling is direct communication between a sales representative and one or more prospective purchasers for the purpose of making a sale.

Question 7

Broyhill is offering the sales force at Meers Furniture Emporium a $50 reward for each Broyhill Pleasant Isle Living Room Collection sold in the next 30 days.What type of trade sales promotion is the $50?

Accepted Answer

Intermediaries receive push money as a bonus for pushing the manufacturer's brand.

Question 8

Jefferson Smurfit Company is a multibillion-dollar supplier of packaging materials.One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from General Electric.The salesperson's action is typical of the company's sales philosophy.What does it emphasize?

Accepted Answer

Relationship selling or consultative selling is designed to help customers achieve their goals.

Question 9

The use of trade shows,conventions,and conferences to contact customers is which of the following?

Accepted Answer

Shows can be cost effective.The cost of closing a lead generated at a trade show is estimated to be 56 percent of the cost of closing a lead generated in the field.

Question 10

What is the term for money offered by a manufacturer to employees of channel intermediaries to encourage them to sell the manufacturer's product?

Accepted Answer

This type of money is called push money or spiffs, and it is specifically offered to channel intermediary employees as an incentive to sell the manufacturer's product. A trade allowance is a discount given to a channel intermediary, a selling deal is a general term for any type of promotional agreement, and a premium payment is a reward given to a customer, not an employee of a channel intermediary.

Question 11

As a manufacturer of ready-to-drink iced tea,Nestea sells a highly standardized product to consumers all over North America.What would you expect Nestea to rely on to promote its product?

Accepted Answer

With a standard product of low value and widely dispersed customers,the producer should rely on advertising.

Question 12

You are responsible for sales promotion for Replenishmints,long-lasting breath mints that contain a blend of vitamins and other nutrients specifically formulated for smokers and for people exposed to tobacco in their environment.You need to introduce the mints to supermarket managers and owners,attract and identify new store contacts,and test market the response to Replenishmints.Which type of trade promotion would most likely help you reach your objectives?

Accepted Answer

Trade shows are uniquely effective in introducing new products.

Question 13

Which of the following is NOT an example of a trade sales promotion?

Accepted Answer

Premiums and coupons are directed at consumers.

Question 14

Which of the following involves direct communication between a sales representative and one or more prospective buyers for the purpose of making a sale?

Accepted Answer

Personal selling involves one-on-one communication between a sales representative and a potential buyer with the goal of making a sale. Sales promotion refers to short-term incentives to encourage purchases, public relations is the management of communication between a company and its publics for building and maintaining relationships, and direct marketing involves promoting products or services directly to consumers through various channels such as mail, email, or phone.

Question 15

Which of the following is used because most businesses depend on repeat sales?

Accepted Answer

Relationship selling focuses on building long-term relationships with customers, which is essential for businesses that depend on repeat sales. This approach relies on creating trust and rapport with customers, identifying their needs, and providing personalized solutions to meet those needs.

Question 16

In which of the following cases is personal selling more important than advertising and sales promotion?

Accepted Answer

When the products being sold are technically complex, personal selling is more effective as it allows for direct communication between the salesperson and the customer. The salesperson can explain the technical details of the product and address any concerns or questions the customer may have. This level of interaction is difficult to achieve through advertising and sales promotion alone.

Question 17

Lopez is the largest Hispanic-owned meat processor in the United States.To assist retailers in marketing its products,Lopez provides point-of-sale materials and offers special introductory discounts to retailers.What does Lopez use?

Accepted Answer

Trade promotions are promotions targeted to retailers and wholesalers.

Question 18

Harland & Wolff in Belfast,North Ireland,makes oceangoing vessels.(It was the company that built the Titanic. )Last year its primary customer was the U.S.government.What would you expect Harland & Wolff to rely on to promote its vessels?

Accepted Answer

Harland & Wolff is selling a complex,high-value product to a few customers in a small area.

Question 19

Maureen Kye is a sales associate at a store that sells new and used CDs and DVDs.Recently,she was given a DVD containing scenes not in the theatre-released Disney's Pirates of the Caribbean: Dead Man's Chest to encourage her to suggest that customers buy this movie.What is the CD an example of?

Accepted Answer

Free merchandise to sales intermediaries is an example of a trade promotion.

Question 20

When compared to other forms of promotion,personal selling is which of the following?

Accepted Answer

Personal selling involves direct communication between the salesperson and customer, which allows for a message customized to the immediate needs of the customer. This can make personal selling more effective than other forms of promotion in terms of meeting customer needs and closing sales. Personal selling is also often used for selling complex, high-involvement products rather than simple, low-involvement products (as stated in option D). Option A is incorrect as personal selling can be highly effective at satisfying customers. Option B is incorrect as personal selling typically involves a higher level of sales resources, but this does not mean it is a waste of resources.

Quiz 17: Sales Promotion and Personal Selling