Deck 5: Business-To-Business B2bsales and Customer Relationship Management

Question 1

The marketing manager at Norgren Windows would like to buy software that allows her to track the return on the ads she places in trade publications.She asks her assistant to contact software suppliers and get demonstrations of their software along with pricing and purchase options.Once her assistant has obtained and summarized the information,the marketing manager emails the info to the head of IT to see if he has any opinions about which software she should buy.After receiving feedback from the head of IT,the marketing manager makes her decision about which software to buy,and asks her boss,the VP of sales and marketing,to sign off on the decision. Which of the following roles does the head of IT play in this sales process?

A)decision maker
B)gatekeeper
C)controller
D)influencer
E)user

Answer 1

D

Question 2

Software that tracks the profitability of individual sales and groups of sales allows managers to do all of the following EXCEPT:

A)drop product lines or customers that do not make the company money
B)analyze how much each sale or customer costs the company
C)prevent salespeople from making unprofitable deals
D)compensate salespeople on profits,not total sales
E)access key decision-makers they have not previously been able to contact

Answer 2

E

Question 3

An example of multi-selling would be which of the following?

A)A tech support representative answers tech support requests from a programmer,and a salesperson calls on the gatekeeper at the same company.
B)A paper salesperson brings along his sales manager to call on the director of purchasing.
C)A director of sales requires all salespeople to bring along engineers on sales calls to explain the technical specifications of the product to the purchasers.
D)A software salesperson calls on the office manager who purchases,and the training director makes a training plan with the manager in charge of training the employees who will be using the software.
E)A buyer emails the salesperson to ask a question about pricing,and the customer service representative follows up on the question to make sure it was answered adequately.

Answer 3

D

Question 4

Use of an electronic data interchange (EDI)system is most appropriate for which type of buying situation?

A)a new buy
B)a modified re-buy
C)a straight re-buy
D)facilitative
E)integrative

Question 5

For the last 5 years,Dominguez Industrial has been buying diecast machines from Access Corp.Dominguez Industrial has been approached by DMC,a rival diecast machine manufacturing company,about purchasing from DMC instead of Access Corp.In this scenario,Access Corp is the:

A)customer
B)in-supplier
C)out-supplier
D)modified re-buyer
E)straight re-seller

Question 6

A good CRM software system allows managers to track all of the following EXCEPT:

A)monthly sales forecasts
B)interactions between customers and customer service representatives
C)salesperson call volume
D)customer purchasing history
E)industry growth forecasts

Question 7

What role can an account manager play on an extended selling team?

A)coordinator of different members of the team
B)technical expert
C)decisionmaker for the purchase process
D)figurehead for the team
E)gatekeeper for the other departments

Question 8

Who uses a multi-attribute matrix in a selling situation,and why?

A)the salesperson,to rate the potential lifetime value of the customer
B)the salesperson,to calculate monthly commission figures
C)the sales manager,to determine the likelihood that the sale will close
D)the buyer,to compare vendors by factors that are important in the process
E)the buyer,to determine which vendor is offering the lowest price

Question 9

Which of the following is true of the way buyers use the multi-attribute matrix to evaluate vendors?

A)The buyer uses a standard matrix that applies across all industries.
B)The buyer changes the weighting of different factors for different vendors.
C)The buyer weights the matrix so a strong performance in one area compensates for a weak performance in another.
D)The buyer always gives more importance to price than to other considerations.
E)The buyer evaluates out-suppliers by the matrix but does not evaluate in-suppliers with the matrix.

Question 10

Which of the following would be a step in a new buy situation that would NOT take place in a straight re-buy?

A)paying an invoice for product delivered
B)figuring out the specifications of the product
C)setting the amount of product needed
D)reexamining the performance of the product
E)evaluating proposals from various suppliers

Question 11

A buying center is most often:

A)a committee formed to meet to make a purchase decision or decisions
B)a group of people who perform the purchase decision roles without a formal structure
C)a department that controls all purchases for a given company
D)a person,usually a controller or purchaser,who has the final say in a purchase decision
E)a warehouse or facility the receives all the purchases for a company and forwards them to the person who ordered them

Question 12

A sales manager must build which of the following into any compensation plan for a selling team?

A)a bonus for landing a sale that a different team couldn't close
B)a penalty for not achieving a monthly quota
C)an incentive for the team to cooperate to make its goals
D)an allowance for the expenses required for so many people to communicate with one another
E)a fine for responding too slowly to customer requests

Question 13

What one development has made managing B2B customer relationships much easier than it was in the past?

A)the internet
B)emerging leader theory
C)CRM strategy
D)sales training courses
E)deregulation of certain industries

Question 14

A customer has purchased fittings from Allied Fitting Supply for the past three years and is happy with Allied's sales and service representatives.Which of the following is a reason the customer might begin a modified re-buy process instead of performing a straight re-buy?

A)The customer's product design has changed.
B)The customer's sales process has changed.
C)The customer's management structure has changed.
D)Allied Fitting Supply's catalog has gone from paper to digital.
E)Allied Fitting Supply's sales process has changed.

Question 15

Why is a salesperson's relationship with each business-to-business customer so important?

A)A good salesperson focuses on all customers equally as a matter of integrity.
B)Each business-to-business customer represents a higher percentage of a salesperson's total business.
C)Each business-to-business customer is the source of referrals,and referrals are essential to building a sales business.
D)Customer retention policy states that salespeople must provide follow-up service as a way to increase customer satisfaction and increase the volume of sales.
E)If a salesperson does not maintain a good relationship with each customer,that customer may leave the company and tell others to leave the company as well,starting a domino effect.

Question 16

Which of the following is NOT something a company could discover by mining its own data?

A)which production methods their competitors are using
B)which sales approaches work best with different sizes of customers
C)how the company has done historically in different economic climates
D)which divisions create the strongest relationships with clients
E)how many sales calls happen on average before a customer buys

Question 17

Recently,ADV computers started advertising that all their laptops contain Medula processors.This is an example of:

A)multi-selling
B)a marketing alliance
C)a value-added reseller
D)an extended sales effort
E)a B2B sale

Question 18

The phrase "data mine" means:

A)to calculate the lifetime value of current customers
B)to research potential prospects on the internet
C)to search for information on competitors on the internet
D)to examine information in your database
E)to look for industry research to improve your product

Question 19

Which of the following is NOT a major challenge in a team selling situation?

A)coordinating the members smoothly
B)communicating among all the members of the team and the customer
C)compensating the members fairly
D)sharing responsibility for closing or losing a sale
E)finding members with expertise in the product they are selling

Question 20

After a buyer recognizes a problem or opportunity,what does the buyer do next,in the normal purchase process?

A)evaluates alternatives
B)evaluates the purchase
C)searches for information
D)decides to purchase
E)approves a vendor

Question 21

The goal of a vendor working toward an integrative relationship with a customer is:

A)to design the product specifically for the customer
B)to maximize the profit on each transaction
C)to place employees at customer work sites
D)to perform multi-level sales with the customer
E)to become a sole source supplier for the customer

Question 22

Managing risk for the customer is an important job for a salesperson.This is because:

A)risk is a key factor in whether a customer will purchase from that vendor or not
B)risk is the biggest reason a selling relationship fails
C)risk always outweighs cost as a factor in a purchase decision
D)risk is at odds with the drivers of delight
E)risk is an unavoidable part of life for all organizations

Question 23

Computing a customer's lifetime value is:

A)both complicated and necessary
B)too complicated to be worth it except for the biggest customers
C)complicated,but possible with the assistance of special software
D)simple,but vital to knowing how much time to spend with the customer
E)simple to do,but not important for customer relationship management

Question 24

A company that has a customer-centric point of view puts what at the center of its activities?

A)information technology (IT)
B)profitable customer relationships
C)sales strategy
D)problem solving
E)the product

Question 25

A company can plan its sales strategy,including how much contact to make and money to spend on a customer if:

A)the customer agrees to award the company a sole source supplier contract
B)the customer is forthcoming about its buying needs
C)the company invests in external research about the customer
D)the company follows all standard sales processes
E)the company has calculated the customer's lifetime value

Question 26

A transactional relationship is more likely than other selling relationships to be:

A)hostile,because the sellers could refuse to provide price quotes to the buyer
B)hostile,because the buyer could force the sellers to compete against each other on price
C)cooperative,because the sellers can agree on a standard price to charge the buyer
D)cooperative,because the buyer can state a price it will pay and reduce competition among sellers
E)cooperative,because the buyer can take turns purchasing from buyers

Question 27

A integrative relationship is deeper than a facilitative relationship in that:

A)in an integrative relationship,the buying process is constantly being reevaluated
B)in an integrative relationship,the seller and buyer work so closely together that they actually become partners in helping the buyer use the product
C)in an integrative relationship,workers may be employed by both the buyer and the seller,and paid by both companies
D)in a facilitative relationship,the seller takes a consulting role in determining how best to match the product to the customer
E)in a facilitative relationship,multi-level selling opportunities give the two companies better knowledge of each other

Question 28

How does a facilitative relationship create value for both buyer and seller?

A)The buyer trusts that the seller will deliver the product and the seller trusts that the buyer will pay for the product.
B)The buyer increases costs by buying from one seller,and the seller decreases profits by selling to the same buyer.
C)The buyer saves time and money by using only one seller,and the seller reduces buying and marketing costs by repeat sales to the same buyer.
D)The buyer saves money by limiting the number of presentations it listens to,and the seller saves money by reducing the shipping costs it charges the buyer.
E)The buyer reduces costs by eliminating the buying center,and the seller reduces the sunk costs of developing elaborate sales presentations.

Question 29

Moving from a transactional model of sales to an integrative model of sales requires a move from:

A)asking questions to answering questions
B)communicating directly to communicating partially
C)a win-lose mentality to a win-win mentality
D)a paradigm of excellence to a paradigm of empathy
E)a repeat model to an episodic model

Question 30

Who decides which customers should receive excess time and resources from a company as part of the sales and relationship process?

A)the salesperson
B)the customer
C)management
D)the industry oversight organization
E)the competition

Question 31

The best way for a seller to increase value for a customer is to:

A)increase benefits and decrease costs
B)increase benefits and increase costs
C)decrease benefits and increase costs
D)decrease benefits and decrease costs
E)increase benefits and hold costs steady

Question 32

It is NOT a requirement of a good sales representative to:

A)understand the customers' business on a deep level
B)give the customer a bigger price discount than other vendors do
C)meet the commitments he or she makes to a customer
D)create a relationship with the customer that lasts for more than one transaction
E)provide service after the sale is completed

Question 33

In which of the following scenarios would a failed relationship not be the fault of the salesperson?

A)The salesperson quotes the customer a price for the product,and honors that price even though the customer purchases past the date on the written quote.
B)The tech support department is not able to figure out why they product is not connecting to the customer's other systems,but the salesperson does not check to see that implementation has been completed.
C)The customer service representative tells the salesperson that the customer does not know how to install the product,but the salesperson does not act on this information.
D)The sales manager asks all salespeople to offer incentives in the form of free service contracts to get the customers to purchase quickly.
E)The shipping department fails to ship product to the customer,but records in the CRM software that the product was shipped on schedule.

Question 34

CRM software helps firms understand how to increase income.Directly after management understands this stage,how does their understanding of the process increase?

A)They understand that managing customers creates more lifetime value from those customers.
B)They understand that careful routing of sales calls and assignment of territories can increase revenues significantly.
C)They understand that mistakes they've made in the relationship can be remedied by face-to-face contact.
D)They understand that they can find ways to maximize profits by managing customer relationships.
E)They understand that finding new business is a repeatable process.

Question 35

One of a salesperson's main goals with regard to each business-to-business customer is to:

A)treat that customer exactly the same as every other client company
B)treat that customer as if they might switch to another supplier at any moment
C)ask the customer for referrals to other potential customers
D)create a relationship that lasts long-term,instead of a one-time sale
E)create a relationship that is friendly instead of businesslike

Question 36

Providing a customer with service after the sale is:

A)important,because it is a commitment to the buyer that cements a long-term relationship
B)important,because it gives the customer the illusion that the vendor is a larger company than it is
C)important,because these follow-up services can generate more revenue for the vendor
D)a luxury,because most salespeople are busy chasing new customers
E)a luxury,because no money is generated by providing follow-up service

Question 37

When a business relationship fails,which party is often blamed for the failure?

A)the customer
B)the decision maker
C)the salesperson
D)the sales manager
E)the customer relationship director

Question 38

A "bow tie" relationship between the buying and selling company is characteristic of which type of selling relationship?

A)transactional
B)facilitative
C)consulting
D)integrative
E)adversarial

Question 39

In some Asian countries,the process of forming a sales relationship with a customer:

A)is not proscribed by customs or rituals
B)must be done at the customer's office
C)takes months,and perhaps even years
D)requires native knowledge of body language and customs
E)can only be done from an office in that country

Question 40

Companies that have which type of selling relationship with a buyer are least likely to have that relationship fail?

A)allied
B)transactional
C)facilitative
D)integrative
E)valued-added

Question 41

Buyers are less concerned with risk than with money when they make purchase decisions.

Question 42

What is an extended selling team? What are the advantages of an extended selling team in a selling situation?

Question 43

What is the difference between an in-supplier and an out-supplier? What advantage does an in-supplier have over an out-supplier?

Question 44

In the purchase process,another name for "decision maker" is "purchaser."

Question 45

List the main steps of the buyer's purchase process.Are there certain buying situations that alter this process? In what ways?

Question 46

Explain data mining.What kinds of things can companies discover by mining their own data?

Question 47

Explain the differences between a new boy,a modified re-buy,and a straight re-buy.

Question 48

What part do roles play in a purchase decision process? What different roles are possible in the decision process?

Question 49

Why is it especially important for sales executives to understand the issues surrounding business-to-business sales?

Question 50

A multi-attribute matrix is a standard formula used in all selling situations to evaluate potential vendors.

Question 51

The difference between a straight re-buy and a modified re-buy is that in a straight re-buy the customer does not solicit information from other vendors or products.

Question 52

Discuss the three selling relationships.Which one leaves room for the most hostility? Which one is the deepest?

Question 53

Each B2B customer is important because it represents a higher proportion of a salesperson's business than normal retail customers do.

Question 54

Putting profitable customer relationships at the center of strategy decisions makes a company customer-centric.

Question 55

Determining a customer's lifetime value can help determine how much time and how many resources should be put into that customer.

Question 56

In the normal purchase process,the buyer identifies a problem,searches for information,evaluates alternatives,makes a purchase decision,and reevaluates the purchase once it's made.

Question 57

Explain multi-level selling.How can it strengthen a sales relationship?

Question 58

The goal for sales representatives and managers is to establish and maintain long-term sales relationships with all their customers.

Question 59

What is a marketing alliance? Give an example of a marketing alliance.

Question 60

Multi-level selling is appropriate for transactional sales,but not facilitative or integrative sales.

Question 61

What are the ways the seller can increase the value of their products or services in the mind of the buyer?

Question 62

Should companies provide the same level of service to all customers? Why or why not?

Question 63

What does customer lifetime value mean? How is it calculated?

Question 64

What are some reasons a business relationship might end? Who is usually blamed for the end of a business relationship? Is this an accurate assignment of responsibility?

Question 65

What are the stages of business-to-business customer relationship management?