Deck 18: Personal Selling and Sales Promotion

Question 1

Identify the major features of effective sales force compensation plans.

Answer 1

In a straight salary compensation plan, salespeople are paid a specified amount per time period, regardless of selling effort. This sum remains the same until they receive a pay increase or decrease. Although this method is easy to administer and affords salespeople financial security, it provides little incentive for them to boost selling efforts.
In a straight commission compensation plan, salespeople's compensation is determined solely by sales for a given period. A commission may be based on a single percentage of sales or on a sliding scale involving several sales levels and percentage rates. Although this method motivates sales personnel to escalate their selling efforts, it offers them little financial security, and it can be difficult for sales managers to maintain control over the sales force.
In a combination compensation plan, salespeople receive a fixed salary plus a commission based on sales volume. Some combination programs require that a salesperson exceed a certain sales level before earning a commission; others offer commissions for any level of sales.

Question 2

Discuss the purpose of coupons in sales promotion.

Answer 2

Coupons reduce a product's price and aim to prompt customers to try new or established products, increase sales volume quickly, attract repeat purchasers, or introduce new package sizes or features. Savings are deducted from the purchase price. Coupons are the most widely used consumer sales promotion technique. Print advertisements with coupons are often more effective at generating brand awareness than print ads without coupons. Coupons reward current product users, win back former users, and encourage purchases in larger quantities.

Question 3

Personal selling is changing in today's marketplace due to several factors. Which of the following is not a factor that impacts today's promotion through personal selling?

A) The difficulty in keeping customers because they are fickle
B) New technology provides up-to-date information in the field
C) The way in which customers gain information about a company or product
D) Social CRM allows companies to discover and engage customers
E) Electronic sales presentations through social media technology

Answer 3

A

Question 4

Identify and discuss the general steps in the personal selling process.

Question 5

Identify and discuss some of the key objectives in using sales promotion.

Question 6

List three major types of sales force compensation methods. What are the advantages and disadvantages of each?

Question 7

What is the rationale for having sales force objectives, and how are they developed?

Question 8

How has the expenditure of promotional dollars on advertising, consumer sales promotion methods, and trade sales promotion methods changed in recent years?

Question 9

Describe consumer sales promotion and trade sales promotion, and then explain how they differ.

Question 10

Identify and describe several ways to motivate sales personnel.

Question 11

The greatest amount of responsibility for providing customer satisfaction falls on the shoulders of

A) chief executive officers.
B) salespeople.
C) sales managers.
D) quality control experts.
E) marketing directors.

Question 12

Explain how a salesperson's performance can be evaluated.

Question 13

Personal selling goals include finding prospects, convincing prospects to buy, and

A) monitoring new products being developed.
B) being aware of competitors' sales activities.
C) seeking one-sale customers.
D) avoiding repeat transactions.
E) keeping customers satisfied.

Question 14

Differentiate between team selling and relationship selling.

Question 15

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called

A) advertising.
B) sales promotion.
C) personal selling.
D) target marketing.
E) public relations.

Question 16

Discuss the major factors to consider when designing sales territories.

Question 17

Identify four consumer and four trade sales promotion techniques, and describe each one.

Question 18

Explain the major issues to consider when developing a sales training program.

Question 19

List the major types of salespeople and indicate how they differ.

Question 20

A major disadvantage of personal selling is that it

A) is not remembered as well by consumers as advertising messages are.
B) cannot easily adjust the message to satisfy a customer's information needs.
C) is very expensive per contact.
D) does not provide immediate feedback.
E) is not compatible with other promotional activities.

Question 21

Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on

A) listening skills.
B) overcoming objections.
C) prospect evaluation.
D) product demonstrations.
E) closing.

Question 22

The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the

A) prospecting.
B) preapproach.
C) follow up.
D) approach.
E) sales presentation.

Question 23

Scott Bartello, a salesperson for Lamkin Golf Products, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. This process is called

A) customer search.
B) preapproach.
C) customer evaluation.
D) customer pre-approval.
E) prospecting.

Question 24

Carlos generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through

A) friends and coworkers.
B) customer referrals.
C) trade shows.
D) past sales.
E) other employees.

Question 25

After compiling a list of potential customers, a salesperson must

A) evaluate whether each prospect is able, willing, and authorized to buy the product.
B) determine whether or not each prospect is really in his target market.
C) find and analyze information about each prospect's specific needs and current brand choices.
D) develop a presentation for each of the potential customers on his list.
E) contact each of the prospects to get an initial feel for how likely they are to purchase his products.

Question 26

Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ____ step of the personal selling process.

A) objections
B) presentation
C) approach
D) preapproach
E) sales-planning

Question 27

Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as

A) referral approach.
B) ambulance chasing.
C) door-to-door selling.
D) cold canvassing.
E) repeat contact.

Question 28

Tara is beginning her week as a sales representative for Logitech Technology. She decides to start the day by developing a list of potential customers, which is called

A) preapproaching.
B) surveying.
C) scouting.
D) prospecting.
E) screening.

Question 29

Which of the following is not true when making the sales presentation?

A) The salesperson should focus on anticipating questions and answering them before they're asked.
B) The salesperson must spark interest in the product.
C) The salesperson should not only talk but also listen to the customer.
D) The salesperson should involve the customer by having him or her hold, touch, or use the product.
E) A salesperson should not sound like he or she is just reading a script (i.e., he or she should be flexible and respond to the customers' comments).

Question 30

Company sales records, commercial databases, newspaper announcements, telephone directories, and public records are all sources used for

A) surveying.
B) screening.
C) researching.
D) preapproaching.
E) prospecting.

Question 31

A salesperson will be better able to determine the prospect's specific needs by

A) listening carefully to questions and comments and watching reactions during the sales presentation.
B) waiting until after the sale to see how the client is enjoying the use of the product.
C) doing extensive research before the approach and making the sales presentation without adjustment.
D) using trial closings throughout the sales presentation.
E) making a very thorough and detailed sales presentation about the products and services being offered.

Question 32

Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is

A) prospecting.
B) screening.
C) researching.
D) preapproaching.
E) surveying.

Question 33

The final stage of the selling process is

A) closing.
B) trial close.
C) presentation.
D) follow-up.
E) overcoming objections.

Question 34

Before contacting prospects, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called

A) prospecting.
B) preapproach.
C) approaching the customer.
D) sales training.
E) sales planning.

Question 35

Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to

A) approach.
B) preapproach.
C) make the presentation.
D) prospect.
E) overcome objections.

Question 36

The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called

A) prospecting.
B) preapproach.
C) approach.
D) making the presentation.
E) overcoming objections.

Question 37

A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during

A) prospecting.
B) the approach.
C) presentation preparation.
D) overcoming objections.
E) the preapproach.

Question 38

The step of the personal selling process in which a salesperson contacts a potential customer is called

A) making the presentation.
B) cold calling.
C) the preapproach.
D) the approach.
E) prospecting.

Question 39

Janetta tells her sales manager that she will be devoting more effort to ____ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan.

A) approaching customers
B) preapproaching
C) closing the sale
D) following up
E) prospecting

Question 40

Sebastian, Kevin's sales manager, points out to him that his last shopper in the housewares department didn't seem interested or involved as he explained the new food processor to her. Sebastian suggests that Kevin use a(n) ____ as part of his presentation next time.

A) video
B) information pamphlet
C) demonstration
D) trial close
E) overcoming objections approach

Question 41

During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would you prefer black or stainless steel?" This is an example of a

A) referral.
B) recommendation.
C) follow up.
D) trial close.
E) closing argument.

Question 42

A missionary salesperson is usually employed by

A) a retailer.
B) a wholesaler.
C) either a retailer or a producer.
D) a manufacturer.
E) an independent intermediary.

Question 43

Doug travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Doug is part of the

A) outside sales force.
B) inside sales force.
C) missionary sales force.
D) support personnel.
E) technical sales force.

Question 44

While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may

A) annoy the customer.
B) mention objections the customer had not thought of.
C) take too long in trying to sell the product, and the customer may stop listening.
D) not emphasize its features and benefits enough.
E) begin to lie about the product.

Question 45

Hannah is a retail salesperson for Crate and Barrel in Chicago. She is most likely classified as

A) an outside salesperson.
B) support personnel.
C) a trade salesperson.
D) an inside salesperson.
E) a technical salesperson.

Question 46

Yolanda's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Yolanda would best be classified as a(n)

A) team salesperson.
B) order generator.
C) missionary salesperson.
D) technical salesperson.
E) outside salesperson.

Question 47

When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called

A) order taking.
B) new-business selling.
C) trial closing.
D) order getting.
E) overcoming objections.

Question 48

"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ____ when he made this statement.

A) referral
B) objective
C) bandwagon approach
D) follow-up
E) trial close

Question 49

During the personal selling process, a salesperson, if possible, should handle objections when

A) they arise.
B) the salesperson begins the trial close.
C) the sales presentation is approximately half completed.
D) the customer appears to be unhappy or agitated.
E) the salesperson begins the sales presentation.

Question 50

A salesperson should try to close the sale

A) at the end of the sales presentation.
B) during the preapproach.
C) about halfway through the sales presentation.
D) after overcoming the biggest objection.
E) several times during the sales presentation.

Question 51

____________ requires that salespeople recognize potential buyers' needs and give them the necessary information.

A) Team selling
B) Creative selling
C) Missionary selling
D) Relationship selling
E) Technical selling

Question 52

Ron works as a salesperson at an automobile dealership. He is most likely focused on

A) prospecting.
B) current-customer sales.
C) new-business sales.
D) support services.
E) team selling.

Question 53

Which of the following is least likely to be directly involved in actually making sales?

A) Outside salesperson
B) Current-customer salesperson
C) Inside salesperson
D) New-business salesperson
E) Support sales personnel

Question 54

Dylan is a salesperson for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely focused on

A) new-business selling.
B) missionary selling.
C) current-customer selling.
D) team selling.
E) trade selling.

Question 55

Increasingly, inside salespersons manage ___________________ and outside salespersons are more _______________.

A) new-business sales; focused on current customers
B) relationships; focused on providing support
C) digital approaches to sales; relationship oriented
D) team selling; face-to-face oriented
E) end-use consumer sales; focused on selling to retailers

Question 56

Cheyenne calls to see if her customer's new hardwood floors were installed correctly

A) during the follow-up step.
B) immediately after the closing.
C) near the end of the sales presentation.
D) the next time she makes a sales call to that customer.
E) after she receives cash payment from that customer.

Question 57

Sales activities in the sales structure are divided into two categories:

A) missionary sales and technical sales.
B) current-customer sales and new-business sales.
C) order takers and trade sales.
D) current sales and support sales.
E) inside order sales and field order sales.

Question 58

Michelle works for a company that sells rotisseries for chicken and other foods. She answers phone calls from customers who see infomercials on TV and call to order the product. Michelle is considered a(n)

A) outside salesperson.
B) inside salesperson.
C) support person.
D) missionary salesperson.
E) trade salesperson.

Question 59

The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.

A) proposal
B) closing
C) overcoming objections
D) approach
E) trial

Question 60

The purpose of the ____ stage in personal selling is to determine customers' problems and questions about using the product.

A) prospecting
B) approach
C) overcoming-objections
D) follow-up
E) closing

Question 61

A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)

A) trade salesperson.
B) new-business salesperson.
C) tech support worker.
D) missionary salesperson.
E) technical salesperson.

Question 62

All of the following are key areas of sales force management except

A) compensating salespeople.
B) coordinating sales promotion efforts.
C) recruiting salespeople.
D) training sales personnel.
E) motivating sales personnel.

Question 63

Savanna is a salesperson for Aeropostale. Her compensation is based on a set salary plus a commission based on sales. Savanna's compensation is based on a

A) straight salary compensation plan.
B) combination compensation plan.
C) cafeteria plan.
D) straight commission compensation plan.
E) salary plus bonus program.

Question 64

Olivia is the manager of Human Resources for Zappos.com. She is currently reviewing the sales force compensation method used at Zappos.com to determine if there is a better way to manage compensation. Olivia knows that the ____ method is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople.

A) straight commission
B) salary plus bonus
C) salary and commission
D) straight commission and combination
E) straight salary

Question 65

Recruiting and selection of salespeople should include enough steps to yield the information needed to make accurate selection decisions. However, the stages of the process should be sequenced so that the more expensive steps are

A) near the beginning.
B) always completed before anything else.
C) near the end.
D) paid by the prospects rather than the company.
E) never reached.

Question 66

Which of the following is the best example of a well-stated sales objective?

A) Companywide sales should increase by 25%.
B) Each salesperson should increase his or her client group by 10%.
C) Each salesperson should bring in $25,000 in new sales by November 15.
D) The sales force should increase the market share in all markets by December 1.
E) Each salesperson should increase the number of calls they make by 20%.

Question 67

Effective motivation of a sales force is best achieved through

A) annual retreats at resort locations open to families.
B) emphasizing sales force objectives and their connection to compensation.
C) an organized set of activities performed continuously.
D) motivation meetings when sales have declined.
E) daily pep talks before the sales force makes sales calls.

Question 68

Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements?

A) Combination
B) Straight salary
C) Straight salary plus generous fringe benefits
D) Straight commission
E) Salary plus a bonus

Question 69

Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that retailers have adequate quantities of products when they need them. However, she is directing much of her effort toward helping the retailers promote the products. She would be characterized as belonging to which group of salespeople?

A) Trade salespeople
B) Outside sales force
C) Advisory salespeople
D) Technical salespeople
E) Missionary salespeople

Question 70

Sales objectives can do all of the following except

A) serve as a deterrent both to salespeople and their clients.
B) give the sales force direction and purpose.
C) serve as a standard for evaluating salesperson performance.
D) let the sales force know what is expected of them.
E) help to control the sales force.

Question 71

Which of the following involves building mutually beneficial long-term associations with a business customer through regular communications over prolonged periods of time?

A) CRM selling
B) Missionary selling
C) Exclusive selling
D) Team selling
E) Relationship selling

Question 72

Jana works for Hormel Foods and she frequently sets up special displays and distributes samples of Hormel products to customers in supermarkets. Jana would best be classified as a(n)

A) trade salesperson.
B) technical salesperson.
C) inside salesperson.
D) product salesperson.
E) missionary salesperson.

Question 73

If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to

A) develop larger income potentials.
B) have to work longer and harder to generate a certain sales volume.
C) work about the same amount, since potential is the same.
D) have much larger sales than those salespeople with smaller territories.
E) be limited to a smaller income potential.

Question 74

Nick is a salesperson for DuPont. His college degree is in engineering, with a minor in physical science. Nick is most likely a(n)

A) trade salesperson.
B) missionary salesperson.
C) technical salesperson.
D) chemicals order taker.
E) support to the sales staff.

Question 75

Zack Freedman is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about

A) the company.
B) his customers' companies.
C) basic selling methods.
D) new-product information.
E) prospecting.

Question 76

When better market conditions prevail or when company growth occurs, a company may suffer if it

A) lowered its sales force objectives.
B) recruited additional salespeople.
C) decided to use a combination compensation plan.
D) provided additional training for its sales force.
E) cut back the size of its sales force.

Question 77

Sales force objectives are generally established for

A) the organization as a whole only.
B) the total sales force and for each salesperson.
C) each salesperson but not the whole sales force.
D) for each department or division of the company.
E) long-term but not short-term salespeople.

Question 78

Assisting the producer's customers in selling to those customers is the major purpose of which type of salesperson?

A) Trade salesperson
B) Technical salesperson
C) Missionary salesperson
D) Outside sales force
E) Inside sales force

Question 79

A company may determine how many sales calls per year it needs to serve customers effectively and divide that by the average number of sales calls made by one salesperson in order to

A) recruit appropriate salespeople.
B) set sales force calling objectives.
C) compensate salespeople fairly.
D) train its salespeople.
E) determine sales force size.

Question 80

Ryan Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Ryan is a

A) trade salesperson.
B) missionary salesperson.
C) technical salesperson.
D) systems engineer.
E) order taker.