Deck 16: Sales Promotion and Selling

Question 1

Through sales management supervision, the company directs and the salesforce to do a better job.

A) influences
B) motivates
C) coerces
D) coaches
E) forces

Answer 1

B

Question 2

Susie is employed as a sales assistant for an outside sales department. Her supervisor has given her a list of potential client's names and company details and asked her to do some background checks on the companies. Among the various checks that Susie conducts are: a company check with the Australian Securities Commission to establish that the company is solvent and a search for company annual reports which she uses to make a rough estimate of volume of business. Susie is MOST likely carrying out which sales task?

A) market research
B) prospecting for sales leads
C) qualifying leads
D) pre- approach
E) all of the above

Answer 2

C

Question 3

The total number of sales calls required per year is divided by the average number of calls each salesperson can make in determining the salesforce size based on:

A) division.
B) workload.
C) call productivity.
D) call- ratio.
E) all of the above

Answer 3

B

Question 4

To reduce the demands on their outside sales force, many companies have increased the size of inside salesforce, which includes technical support, sales assistants and:

A) marketing research assistants.
B) public relations professionals.
C) sales managers.
D) telemarketers.
E) all of the above

Question 5

A sales representative's annual outlines when to call on prospects or customers and which other activities to carry out.

A) workload plan
B) territory marketing plan
C) work plan
D) activity plan
E) call plan

Question 6

In store promotional displays, sampling and cooking demonstrations are all examples of:

A) self liquidating offers.
B) patronage rewards.
C) event marketing.
D) free samples.
E) point- of- purchase promotions.

Question 7

When a company's representatives conduct business from their offices via the phone or Internet, this is known as:

A) sales assistance.
B) a field salesforce.
C) an inside salesforce.
D) a contact team.
E) none of the above

Question 8

Promotional products carrying a manufacturer brand name and often in the form of key rings, pens, memory sticks and novelty items and distributed freely at events, in store and to trade dealers are known as:

A) freebies.
B) point- of- purchase promotional items.
C) incentives.
D) patronage gifts.
E) advertising specialities.

Question 9

Which of the following BEST describes the role of a sales assistant within an outside salesforce?

A) to accompany sales representatives on their rounds with a view to learning the sales business
B) to remain in the office and attend to clients that walk- in off the street and require service or who have queries
C) to provide clerical and administrative support to the salesforce
D) to engage in telemarketing to contact clients that cannot normally be reached via field sales
E) all of the above

Question 10

The Grey Lynn Widget Corporation markets numerous unrelated products, most of which are highly complex. The firm is most likely to use the salesforce structure based on the:

A) territory.
B) product.
C) technology.
D) customer.
E) none of the above

Question 11

A premium offer is BEST described as:

A) a high quality version of an established product or brand offered for sale via preferred dealers.
B) a high quality version of an established product or brand offered for sale for a short period of time.
C) a product offered for sale at greatly reduced prices as an incentive to buy.
D) a product produced in a limited production run and offered for sale in unusual packaging or with some other feature designed to enhance the value.
E) none of the above

Question 12

What is the most important source of information about a sales representative's performance?

A) conversations with other sale representatives
B) the company's performance appraisal format
C) personal observation
D) his or her customer reports
E) his or her sales reports

Question 13

Your text suggests that when firms display their offering at conventions and trade shows they might be seeking benefits such as:

A) selling more to existing customers.
B) finding new sales leads.
C) meeting new customers.
D) contacting existing customers.
E) all of the above

Question 14

This sales management tool shows which customers and prospects to see during the next 12 months and in which months, as well as which activities to carry out.

A) annual call plan
B) sales quota plan
C) time- and- duty analysis
D) salesforce automation systems
E) none of the above

Question 15

Management uses the workload approach to do which of the following?

A) evalute salesforce peformance
B) determine the company's requirements for new sales recruits
C) set the size of the salesforce
D) establish sales quotas
E) enalyse sales costs and profit margins

Question 16

Kellogg's is using a sales promotion campaign for its Special K breakfast cereals. The promotion involves coupons in magazines aimed at working mothers, offering refund offers for multiple purchases, and mailing samples to homes in selected postcodes. All of these methods that Kellogg's is using are types of:

A) trade promotions.
B) intermediary promotional activities.
C) consumer promotions.
D) functional promotions.
E) public relations activities.

Question 17

What kind of trade promotion is Minolta cameras using when it gives a camera store money to advertise its products?

A) a patronage award
B) a trade allowance
C) a tie- in promotion
D) a cross promotion
E) a cash refund

Question 18

A concept that is broader than traditional transaction- oriented personal selling is known as:

A) relationship marketing.
B) relationship selling.
C) customer marketing.
D) problem- oriented selling.
E) needs- oriented selling.

Question 19

A self- liquidating offer is a sales promotion that:

A) is only offered by retailers.
B) is not offered by manufacturers.
C) offers an item at a reduced price together with the purchased product.
D) involves liquid products such as Coca- Cola.
E) involves pens, keyrings and other speciality items.

Question 20

The last step in the selling process is:

A) follow- up.
B) presentation.
C) handling objections.
D) closing.
E) none of the above

Question 21

During his sales presentation, Billy notices that the client starts to ask specific questions such as "Does it come in a green colour?" and "How long before you can deliver it?" Billy should be aware that the selling process is moving towards the _ stage.

A) approach
B) closing
C) handling objections
D) follow- up
E) none of the above

Question 22

Murat Berish is a salesperson for a company that installs local area networks (LANs). He spends about 25 per cent of his time actually selling the product, and about 75 per cent of his time installing the computer systems, training customer employees in their use, and trouble shooting. Which sort of compensation would keep Berish satisfied with his job?

A) expense allowance and salary
B) a commission and quarterly bonuses
C) profit sharing, annual bonuses, and a commission
D) benefit package and a commission
E) a salary

Question 23

When Colgate- Palmolive wrap four bars of Palmolive soap together and offer it at price slightly less than if the bars were purchased separately, the offer is termed a:

A) cents- off promotion.
B) self- liquidating offer.
C) price pack.
D) multi- pack.
E) none of the above

Question 24

Which of the following sources of information are typically used to evaluate a salesperson's performance?

A) annual territory marketing plans
B) work plans
C) observation
D) call reports
E) all of the above

Question 25

When a company's sales representatives visit customers at their place of work, this is known as:

A) a field salesforce.
B) an outside salesforce.
C) external sales force.
D) A and B
E) A, B, or C

Question 26

involves two- way, personal communication between salespeople and individual customers-whether face to face, by telephone, through video or web conferences, or by other means.

A) Advertising
B) Persuasive selling
C) Personal selling
D) Integrated marketing communication
E) A and C

Question 27

After the presentation, the salesperson must be prepared to handle:

A) orders.
B) objections.
C) follow- ups.
D) money.
E) all of the above

Question 28

Which of the following is an example of fixed compensation?

A) annual bonus
B) salary
C) expense allowance
D) profit sharing
E) commission

Question 29

A salesperson typically meets the customer for the first time in the _ step of the selling process.

A) approach
B) qualifying
C) pre- approach
D) prospecting
E) presentation

Question 30

An organisation would choose to use a territorial salesforce structure instead of another type of structure because the territorial salesforce structure:

A) keeps travel expenses to a minimum.
B) allows the salesforce to engage in transformational marketing.
C) limits competition.
D) allows the salesperson to specialise in product knowledge.
E) provides opportunities for computerised selling.

Question 31

Salesforce compensation should direct the salesforce toward activities that are consistent with:

A) overall company objectives.
B) overall marketing objectives.
C) overall company strategies.
D) overall department objectives.
E) all of the above

Question 32

In today's world, marketers should utilise transaction- oriented approaches as well as:

A) relationship selling.
B) problem solving selling.
C) customer marketing.
D) relationship marketing.
E) follow- up selling.

Question 33

The sales manager at Bendigo Property Inc. requires her salespeople to submit a _ so she can compare what they intended to do with what they actually got accomplished. It also allows her to contact them during the day if a need should arise.

A) salesperson's work plan
B) call report
C) territory marketing plan
D) workload plan
E) route management form

Question 34

As part of developing a sales promotion programme, a marketing manager must do all of the following EXCEPT:

A) pretest the programme.
B) set the conditions for participation.
C) set the total sales promotion budget.
D) decide on the timing of the promotion.
E) determine the duration of the promotion.

Question 35

The structure that can create problems if many of the firm's products are bought by the same customers is based on the:

A) territory.
B) product.
C) customer.
D) missionary concept.
E) none of the above

Question 36

Which of the following is NOT a disadvantage of a product salesforce structure?

A) extra selling costs involved with multiple sales visits from separate divisions
B) attention given to individual products
C) salespeople may wait to see the same customer's purchasing agents
D) increase customer delivery time
E) B and C

Question 37

Gippsland Electronics sells over 30 different types of high- tech machines. Since Gippsland Electronics uses a _ salesforce structure, each salesperson has specialised knowledge. One knows about the company's extrusion machines. Another is an expert on its routers and trimming equipment. Still another is an expert on its thermoformers.

A) network
B) territorial
C) product
D) market
E) matrix

Question 38

Action Products Company sells a deep product line to a widely- based customer group. Which salesforce structure should Action Products use?

A) territorial and product salesforce structure
B) customer salesforce structure
C) product salesforce structure
D) territorial salesforce structure
E) none of the above

Question 39

When different clients exhibit widely varied needs, the firm will probably utilise the salesforce structure based on:

A) technology.
B) territory.
C) product.
D) customer.
E) none of the above

Question 40

Suppose a company calls on 2,000 small accounts, 1,000 medium accounts, and 200 large accounts each year. Small accounts warrant one call every three months, medium accounts every two months, and large accounts monthly. If the company wants to hire no more than 30 salespersons, then each salesperson must be able to make approximately calls a year.

A) 550
B) 700
C) 400
D) 600
E) 450

Question 41

The step in the selling process that poses the most difficult challenge to the salesperson simply because he/she lacks confidence in dealing with this step is:

A) handling objections.
B) presentation.
C) prospecting.
D) closing.
E) none of the above

Question 42

A firm that wants to encourage trial, reward loyal customers, or increase the repurchase rate of occasional users would be best served by:

A) sales promotion.
B) an unbiased public relations article.
C) personal selling.
D) advertising.
E) direct marketing.

Question 43

The Fashion Industry Association of Australia developed Australian Fashion Week, which consists of a series of fashion parades held at a variety of venues, to showcase and promote Australian designers and labels. Australian Fashion Week is an example of:

A) patronage promotion.
B) advertising speciality.
C) event marketing.
D) point- of- purchase promotion.
E) sampling.

Question 44

Sales promotions may be used to:

A) convert medium users into heavy users.
B) reward loyal customers.
C) reduce the time between purchases.
D) attract new buyers.
E) all of the above

Question 45

Michael, the sales manager for a commercial paper supplies company, is consulting his sales representative's work plans, call reports and also going out on selected sales calls with individual members of his team. Michael is MOST likely engaged in which of the following activities?

A) sales training
B) prospecting for new business
C) evaluating salesforce performance
D) setting sales quotas
E) preparing an annual territory marketing plan

Question 46

Which of the following reports would NOT normally be prepared by a salesperson?

A) expense report
B) return on sales investment report
C) call report
D) work plan
E) territory marketing plan

Question 47

Cardini's Marinades have seen how other products have profited from sales promotion activities and wants to do some of its own sales promotions. What is the first step for Cardini's in using sales promotions?

A) select media to advertise its sales promotion activities
B) select a consumer- franchise building promotion
C) decide if the purpose of the sales promotion will be to increase sales or to increase brand recognition
D) determine the value of coupons
E) decide how it's going to evaluate its sales promotion activities

Question 48

After Gian graduated with a marketing degree, he found work in a sales department responsible for selling computers and technical computing solutions. Gian's duties include preparing sales materials such as powerpoint presentations for sales representatives to use, confirming appointments, following up on deliveries and generally supporting the sales effort. Gian's role would be BEST described as a(n):

A) marketing assistant.
B) technical assistant.
C) sales assistant.
D) telemarketer.
E) inside sales representative.

Question 49

The emphasis is upon the identification of potential customers in the stage of the selling process known as:

A) preapproach.
B) approach.
C) presentation and demonstration.
D) prospecting.
E) none of the above

Question 50

Each salesperson is given an exclusive area in which to sell the firm's full line in the salesforce structure called:

A) closed- area.
B) exclusive dealing.
C) territorial.
D) monopolistic.
E) none of the above

Question 51

Which of the following would NOT be considered a sales promotion tool?

A) speciality store selling
B) samples
C) redeemable coupons
D) cash- back offers
E) premium packaging

Question 52

A growing trend for many companies is to use a group of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts. This approach is called .

A) department selling
B) management- controlled selling
C) multiple selling
D) simultaneous selling
E) team selling

Question 53

Which of the following statements partially explains the rapid growth of sales promotions?

A) Companies face more competition from competing product categories and brands.
B) Consumers have become more price- oriented.
C) The trade is demanding more deals from manufacturers.
D) Top management now views sales promotions as effective sales tools.
E) All of the above reasons help explain the rapid growth of sales promotions.

Question 54

When using the workload approach to establish salesforce size, a manager should:

A) design the sales territories so that each has equal potential for sales and growth.
B) determine the number of calls that need to be made on each account and the number of accounts that there will be per sales representative.
C) consider the territorial limits of the accounts.
D) review the number and size of the markets served by the salesforce.
E) consider the complexity of the product line.

Question 55

Which of the following best explains why many companies are adopting the team selling approach to service large, complex accounts?

A) Salespeople prefer working in groups because of the opportunity for flex hours and job sharing.
B) Fewer skilled salespeople are working in the high- tech industries.
C) Products have become too complicated for one salesperson to support.
D) Customers prefer dealing with many salespeople rather than one salesperson.
E) A group of salespeople assigned to one account is more cost effective for corporations.

Question 56

Every week the sales manager for Hokianga Tools prepares a report in which he outlines the standards expected of salespeople, how much they should sell and how the sales should be divided among the company's products. These standards are known as:

A) call reports.
B) territory evaluations.
C) a workload synopsis.
D) sales quotas.
E) work plans.

Question 57

A discount offered to dealers as a trade incentive may also be described as a:

A) off list.
B) price off.
C) off invoice.
D) A, B, and C
E) none of the above

Question 58

During his sales presentation, Billy notices that a client makes a number of negative statements such as, "The price is out of my league!" and "I think it is over- engineered for our needs." Billy should be aware that the selling process is moving towards the stage.

A) follow- up
B) approach
C) closing
D) termination
E) handling objections

Question 59

The salesperson who desires repeat business must do a good job of:

A) handling objections.
B) follow- up.
C) prospecting.
D) closing.
E) selling.

Question 60

Barbara works in the sales department of a large international hotel chain. Today she is calling on travel agents to provide them with information about the imminent opening of a new hotel property in Solomon Islands. Barbara has not called ahead but is simply "pounding pavement" and dropping in unannounced on travel agents in the central business district. Barbara is engaged in which type of sales activity?

A) follow- up
B) qualifying leads
C) prospecting for leads
D) administrative support
E) cold calling

Question 61

A cutlery firm with a limited variety of products and a desire to give its sales representatives maximum accountability, would use a salesforce structure.

A) territorial
B) network
C) product
D) matrix
E) market

Question 62

Once a salesperson has identified a hot prospect, she is now ready to enter the stage of the personal selling process.

A) approach
B) preapproach
C) canvassing
D) qualifying
E) presentation

Question 63

Firms which sell similar products to both industrial and consumer markets are likely to employ a customer salesforce structure.

Question 64

Advertising signs that hang off retail shelves announcing special deals or incentives are known as:

A) promotional sticks.
B) gondolas.
C) wobblers and danglers.
D) tremblers and shakers.
E) none of the above

Question 65

The stage of the selling process where the sales representative is MOST likely to tell the product's "value story" is known as:

A) the follow- up.
B) the approach.
C) the pre- approach.
D) the presentation.
E) all of the above

Question 66

In order to attract a large number of entries, a consumer- oriented sales contest should be designed in such a way that it is relatively easy for customers to enter.

Question 67

Of the three typical types of salesforce structures, which one is often supported by many levels of sales management positions in specific geographical areas?

A) territorial
B) customer
C) product
D) complex systems
E) matrix

Question 68

According to your text, free samples are primarily designed to:

A) build brand image.
B) overcome problems such as product defects.
C) cause repeat purchase.
D) give immediacy and encourage purchase.
E) all of the above

Question 69

Geelong Glass Company sells a broad mix of products. The salesforce structure that Geelong Glass Company should use is the:

A) product salesforce structure.
B) territorial salesforce structure.
C) customer salesforce structure.
D) territorial and product salesforce structure.
E) none of the above

Question 70

The qualities that buyers value most in salespeople include empathy, , honesty, dependability, thoroughness and follow- through.

A) good presenting
B) caring
C) good listening
D) candor
E) sympathy

Question 71

Sales managers agree that all sales quotas should be set at very high levels in order to challenge the salesforce.
Answer FALSE

Question 72

Successful salespeople identify qualified potential customers in the preapproach step of the selling process.

Question 73

A sales call report records market research and intelligence collected in the field.

Question 74

According to research quoted in your text, the average amount of time salespeople spend on actual selling is:

A) 10 per cent.
B) 20 per cent.
C) 30 per cent.
D) 40 per cent.
E) 50 per cent.

Question 75

B2B sales contests, used as incentives for a firm's salesforce, work best when:

A) the contest is tied to challenging objectives designed to win new business.
B) members of the sales team participating in the contest are competitive by nature.
C) the prize is valuable.
D) the contest is tied to precise, measurableand achievable sales objectives.
E) all of the above

Question 76

Physical actions, comments and questions from the prospective buyer indicate that the prospective buyer is:

A) asking for follow- up.
B) voicing objections.
C) interested.
D) sending closing signals.
E) no longer interested.

Question 77

Ryan Cooper sells classified ads for a trade- newspaper targeted at plastic manufacturers around the world. When he searches for new companies who might be interested in buying ads in his newspaper, he is:

A) prospecting.
B) allocating.
C) targeting.
D) information bartering.
E) servicing.

Question 78

Which of the following is NOT one of the pitfalls of a team- selling approach?

A) Salespeople who are accustomed to servicing clients may have difficulty learning to share this responsibility.
B) Clients who are used to a single salesperson may feel overwhelmed by multiple salespersons.
C) Salespeople are by nature competitive and respond to rewards for individual effort.
D) Sales managers may experience difficulties evaluating the relative contributions of salespeople.
E) The company is likely to find that the cost of servicing a client increases.

Question 79

Jim Peters has just completed a sales call. While the event is still fresh in his mind, Jim should create a work plan to guide his actions in future contacts with that customer.

Question 80

When running a contest in association with product promotion, many marketers consider a customer response rate of as a reasonable result.

A) 20- 25 per cent
B) 5- 10 per cent
C) 1- 2 per cent
D) more than 50 per cent
E) 3- 5 per cent