Deck 33: Personal Selling and Sales Management

Question 1

Empowerment in a CRM environment is normally a process of collecting customer information through customers' feedback on products.

Answer 1

False
This is learning.Empowerment is the delegation of authority to solve customers' problems quickly.

Question 2

Internet companies use product and customer profiling to reveal cross-selling opportunities while a customer is surfing their sites.

Answer 2

True

Question 3

Customer relationship management requires that organizations develop relationships with their customers through touch points and data mining.

Answer 3

True

Question 4

To initiate the CRM cycle,a company must first identify customer relationships within the organization.

Question 5

If a potential customer has objections after the salesperson has made a presentation,that is an indication that the salesperson has done a poor job.

Question 6

With relationship selling,the objective is to build long-term branded relationships with customers,not just to sell products.

Question 7

Personal selling becomes a more important promotional tool as product value and complexity and increase.

Question 8

Relationship selling is more typical with selling situations for consumer goods.

Question 9

The first step in the selling process is approaching the customer and probing needs.

Question 10

To qualify a sales lead,a salesperson must identify the person in an organization who has the authority to buy the product and must close the sale with that individual.

Question 11

Campaign management is a process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization.

Question 12

Tara is a salesperson with several satisfied customers.She asks her customers to recommend her to their business associates.Tara is using cold calling to generate leads.

Question 13

Dave is in charge of finding sponsors for the 2013 Riverbend Festival.He is meeting with marketing representatives from Wrangler jeans and First Tennessee National Bank,attempting to convince them to sponsor the event.Dave is engaged in personal selling.

Question 14

Jayson typically negotiates the price with prospective customers because he knows price is the most effective negotiating tool when closing a sale.

Question 15

Customer-centric is an internal management philosophy similar to the marketing concept.

Question 16

Before approaching the customer,a salesperson should learn as much as possible about the prospect's organization and its buyer.

Question 17

Volvo has a Web site that caters to car enthusiasts who might want to see concept cars evolve into real-life products.Volvo would likely have used data mining to locate people who were car enthusiasts and innovators.

Question 18

With relationship selling,the salesperson would spend most of his or her contact time with the prospect talking about the product because the salesperson does not want to waste the customer's time.

Question 19

Consumers are reluctant to enter information through point-of-sale interactions because of privacy violation fears.

Question 20

The interaction between a customer and the organization is the foundation on which a CRM system is built.

Question 21

Personal selling is more important than advertising and sales promotion if:

A) the products being sold are standardized.
B) there are many customers for the product being sold.
C) the product being sold has a low value.
D) the buyers of the product are extremely dispersed.
E) the products being sold are technically complex.

Question 22

How can personal selling costs be controlled?

A) By increasing the time that the sales force spends on personal selling.
B) By adjusting the size of the sales force en masse.
C) By offering the sales force benefits such as stock options.
D) By dropping and replacing the entire sales force.
E) By adjusting the size of the sales force in one-person increments.

Question 23

Boeing is one of the largest aircraft manufacturers in the world.The company sells aircrafts to airlines around the world,such as Delta,China Air,and AirFrance.You would expect Boeing to rely on _____ to promote its vessels.

A) publicity
B) advertising and sales promotion
C) sales promotion
D) personal selling
E) product innovations and direct marketing

Question 24

The final selling duty for most successful salespeople is closing the sale.

Question 25

When did marketers move away from making one-time sales and toward relationship selling?

A) Marketers have always focused on relationship selling.
B) During the Industrial Revolution.
C) In the wake of the Great Depression.
D) Just after World War II.
E) Very recently.

Question 26

Which of the following professions likely requires an individual to make sales?

A) Salesperson
B) Chemist
C) Marketing manager
D) Engineer
E) All of the above.

Question 27

Meta Singh is expected to sell two surgical laser systems each month.This sales objective is an example of a quota.

Question 28

The final stage of sales management is evaluating the effectiveness and performance of the sales force.

Question 29

Which of the following is not true of traditional personal selling methods?

A) They often attempt to persuade the buyer to accept a point of view.
B) The objectives of the salesperson are frequently at the expense of the buyer.
C) They have disappeared in the wake of relationship selling.
D) They entail making a one-time sale and then moving on to the next prospect.
E) They sometimes create a win-lose outcome.

Question 30

Compensation planning is one of the sales manager's easiest jobs.

Question 31

Generally speaking,personal selling becomes more important as the number of potential customers _____ and as the value of the product _____.

A) increases; grows
B) increases; shrinks
C) decreases; shrinks
D) decreases; grows
E) None of the above.

Question 32

_____ is a sales practice that involves building,maintaining,and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

A) Networking
B) Adaptive selling
C) Stimulus-response selling
D) Relationship selling
E) Needs-dependent selling

Question 33

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?

A) Garden hose
B) HD television
C) Dry-cleaning
D) Coffee mug
E) Breakfast cereal

Question 34

As a manufacturer of jams and jellies,Smucker's sells a highly standardized product to consumers all over the United States.You would expect Smucker's to rely on _____ to promote its product.

A) public relations
B) personal selling
C) advertising and sales promotion
D) publicity and direct marketing
E) product innovation

Question 35

In relationship selling,salespeople focus more time on generating leads than on qualifying leads.

Question 36

Macy's,Nordstrom,Saks Fifth Avenue,and Barneys New York offer free personal shopping,whereby consultants pull clothing they feel will fit the customer's style and specified need.This free service:

A) encourages customers to develop a relationship with the store.
B) puts pressure on customers to buy more.
C) dissuades customers from shopping at the store.
D) is a good way to sell low-cost, low-involvement products.
E) Streamlines customer interactions, making sales easier.

Question 37

What role does technology play in personal selling?

A) Technology used to play a large role in personal selling, but its impact is diminishing.
B) Technology is the most important aspect of personal selling.
C) Technology plays an important role, especially in regards to social media.
D) Technology is completely irrelevant to personal selling.
E) Technology plays a small role in personal selling, but experts expect its importance to rise over time.

Question 38

Jefferson Smurfit Company is a multi-billion-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 and indicates an emphasis on:

A) consultative promotion.
B) relationship selling.
C) adaptive selling.
D) transformational selling.
E) transactional buying.

Question 39

When compared to other forms of promotion,personal selling:

A) is more important as the number of potential customers increases.
B) is more effective in selling frequently purchased products.
C) can use a message customized to the immediate needs of the customers.
D) is best for selling simple, low-involvement products.
E) is less expensive.

Question 40

Sales managers should look for sociability,creativity,and ego strength in applicants.

Question 41

Stores carrying Revlon Super Lustrous lipstick have begun using touch-screen televisions that allow customers to see how different styles might look on their own faces without talking to a makeup artist.Which of the following statements does this new development support?

A) Salespeople sell products, not advice and assistance.
B) Personal selling has taken a technology turn in the last decade.
C) Relationship selling promotes a win-win situation for both buyer and seller.
D) Personal selling offers several advantages over other forms of promotion.
E) Modern views of personal selling emphasize the relationship between a salesperson and a buyer.

Question 42

_____ involves delegating authority to solve customers' problems.

A) Consumer learning
B) Customerization
C) Empowerment
D) Autonomy
E) Interaction

Question 43

When Sony PlayStation users want to access amenities on the Sony Web site,they are required to log in and supply information such as their name,e-mail address,and birth date.They are also given the opportunity to complete a survey that captures much more information about them and their gaming habits.Sony gathers this information and makes it available internally to better serve the customer.This is an example of a company using:

A) learned research.
B) stimulus/response marketing.
C) knowledge management.
D) sales-oriented marketing.
E) motivational research.

Question 44

Using technology provided by Smart Button software,the WNBA's Los Angeles Sparks have implemented a new system that gathers information about its best customers,season ticket holders,and rewards those customers in many ways,including free tickets to Sparks home games and cash prizes.This is an example of a(n)_____ system.

A) organizational optimization
B) corporate relationship marketing (CRM)
C) total quality management (TQM)
D) customer relationship management (CRM)
E) call response marketing (CRM)

Question 45

To initiate the CRM cycle,a company must first:

A) establish marketing objectives.
B) capture relevant customer data on interactions.
C) identify customer relationships with the organization.
D) understand the interactions the company has with current customers.
E) decide on a segmentation strategy.

Question 46

Research has shown that positive customer-salesperson relationships result in:

A) win-lose situations.
B) decreased customer trust.
C) customers who purchase from the company just once.
D) higher costs for the company.
E) None of the above.

Question 47

Best Buy instituted a system in all of its stores that customizes their product offerings for the five key customer segments it has identified: affluent professional males,young entertainment enthusiasts,upscale suburban moms,families who are practical technology adopters,and small businesses with fewer than 20 employees.This focus implies that Best Buy is:

A) ethnocentric.
B) demand based.
C) sales-centric.
D) supply based.
E) customer-centric.

Question 48

Customer relationship management initially was popularized as _____.

A) one-to-one marketing.
B) a mass marketing approach.
C) total quality management.
D) a customer satisfaction program.
E) a differentiation strategy.

Question 49

Relationship selling is a _____ process that emphasizes _____ as a key ingredient in identifying prospects and developing them as long-term,satisfied customers.

A) multistage, empathy
B) popular, assertiveness
C) short-term, persuasion
D) win-lose, personalization
E) modern, standardization

Question 50

Sony wants to build long-lasting relationships by focusing on what satisfies and retains their customers.For example,Sony's PlayStation Web site is designed to create a community of users who can join PlayStation Underground where they will "feel like they belong to a subculture of intense gamers." Sony evidently:

A) is sales oriented.
B) has a standardization focus.
C) is ethnocentric.
D) has a customer-centric focus.
E) is product oriented.

Question 51

When Burpee Gardening company collects relevant information from customers,such as date of last communication with the customer and how often the customer contacts the company,this is an example of:

A) establishing marketing objectives.
B) capturing relevant customer data on interactions.
C) identifying customer relationships with the organization.
D) understanding the interactions the company has with current customers.
E) deciding on a segmentation strategy.

Question 52

Consultative selling:

A) uses limited sales planning.
B) uses a "lone wolf" approach to selling.
C) sells advice, assistance, and counsel rather than products.
D) uses short-term follow-ups, which focus on product delivery.
E) emphasizes closing the sale during the sales presentation.

Question 53

Relationship selling is also called:

A) long-term selling.
B) win-win selling.
C) consultative selling.
D) experiential selling.
E) interactive selling.

Question 54

_____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.

A) Knowledge management
B) Learning
C) Database marketing
D) Interactive marketing
E) Information marketing

Question 55

Relationship selling:

A) is also called adaptive selling.
B) is most concerned with making a sale.
C) is more typically used when selling low-involvement products in the consumer market.
D) is more concerned with developing customer trust than with making a sale.
E) is declining in popularity among businesses because the costs are becoming prohibitive.

Question 56

_____ is the ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group.

A) Organizational optimization
B) Consumer relationship marketing (CRM)
C) Total quality management (TQM)
D) Customer relationship management (CRM)
E) Market aggregation

Question 57

Which of the following statements about a CRM system is true?

A) A critical component of a CRM system is the use of the appropriate technology to store and manage customer data.
B) A CRM system operates on the theory that all customers are equally important.
C) Due to privacy laws, a CRM system only disseminates customer information to those who are actually in day-to-day contact with customers.
D) A company using a CRM system must view its customers as bits of data.
E) All of these statements about a CRM system are true.

Question 58

_____ in a CRM environment involves collecting customer information through comments and feedback on product and service performance.

A) Uncovering
B) Researching
C) Learning
D) Recording
E) Absorbing

Question 59

The knowledge that most businesses depend on repeat sales is the basis of:

A) traditional personal selling.
B) direct marketing.
C) all trade promotions.
D) relationship selling.
E) product-oriented selling.

Question 60

All of the following statements characterize the traditional personal selling approach EXCEPT:

A) Traditional selling focuses on closing sales.
B) Traditional selling uses short-term follow-ups that focus on product delivery.
C) Traditional personal selling takes a team approach to the account.
D) Salespeople sell products, not advice and assistance.
E) Proposals and presentations used emphasize pricing and product features.

Question 61

Which of the following would be an example of "social" CRM?

A) Placing a phone call to a local department store
B) Leaving a comment on a company's blog
C) Mailing a survey card back to an organization
D) Telling a friend about your experience with an online retailer
E) All of the above are examples of "social" CRM

Question 62

_____ involves developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.

A) Transaction management
B) Campaign management
C) Data mining
D) Consumerism
E) Knowledge management

Question 63

The first step in the selling process is:

A) qualifying leads
B) approaching the customer and probing needs
C) developing and proposing solutions
D) making a sales presentation
E) generating leads

Question 64

Walmart captures point-of-sale transactions from thousands of stores in several countries and continuously transmits these data to its massive data warehouse.Walmart allows more than 3,500 suppliers to access data on their products and perform data analyses.These suppliers use the data to identify customer buying patterns at the store level.They use this information to manage local store inventory and identify new merchandising opportunities.Both Walmart and its suppliers are engaged in:

A) information formatting.
B) database enhancement.
C) data mining.
D) data shading.
E) descriptive modeling.

Question 65

Every time Barry orders running shoes from Road Runner Sports,the Web site or the operator on the phone always tries to sell him something in addition to the shoes he ordered,such as socks or other apparel.This is an example of:

A) data mining.
B) cross-selling.
C) trading up.
D) database enhancement.
E) a database channel.

Question 66

The set of steps a salesperson goes through to sell a particular product is called the:

A) P-O-S cycle.
B) stimulus-response hierarchy.
C) sales presentation.
D) sales process.
E) sales continuum.

Question 67

Communications between customers and organizations that occur in stores or at information kiosks are called:

A) live interactions.
B) point-of-sale interactions.
C) empowerment points.
D) survey interactions.
E) product interactions.

Question 68

Many high-end hotel chains award points for every dollar spent in one of their hotels.Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights.This is an example of the leveraging of customer information to:

A) retain loyal customers.
B) reinforce competitive promotional decisions.
C) cross-sell other products and services.
D) design targeted marketing communications.
E) induce product trial by new customers.

Question 69

After Ruth and Mike had paid in advance for their week's stay at a Vermont Inn,Ruth felt that they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the Inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.The hospitality of the letter dealt with Ruth's cognitive dissonance by:

A) cross-selling.
B) disintermediation.
C) spamming and flaming.
D) implementing a penetration strategy.
E) reinforcing her purchase decision.

Question 70

Apple,Inc.has stores,a Web site,and a toll-free phone number where consumers can provide valuable information to the company in developing a CRM system.All these possible areas of the company where consumers can communicate with the business are called:

A) touch points.
B) focus areas.
C) data mining.
D) information search periods.
E) experimental points.

Question 71

When a company retains an additional 5 percent of its customers each year,profits will increase by as much as _____.

A) 5 percent
B) 15 percent
C) 25 percent
D) 35 percent
E) 45 percent

Question 72

Les Ailes de la Mode,a Quebec retail store that promotes the highest quality of customer service,has not only established itself as a top retailer in the province but also has a credit card and point program company,a cataloger and Internet seller,and even a publisher.Through gathering customer information for its credit cards and point program,through catalog and Internet orders,and through subscriptions to its publications,Les Ailes de la Mode has created several different:

A) focus areas.
B) touch points.
C) interrelationship promotions.
D) distribution channels.
E) sources of distribution information.

Question 73

Which of the following is a common CRM marketing database application?

A) Campaign management
B) Retaining loyal customers
C) Cross selling other products and services
D) Designing targeted marketing communications
E) All of these

Question 74

Which of the following is an example of a channel through which customer data are traditionally gathered?

A) Store visits
B) Conversations with salespeople
C) Interactions via the Web
D) Phone conversations
E) All of these

Question 75

A(n)_____ allows marketers to track customers' relationships to the company's products and services.

A) database
B) data profile
C) algorithm
D) byte
E) interaction profile

Question 76

According to the CEO of Allied Office Products,"We're a head-count business: I know that if you have a 60-person office,you should buy $300 worth of basic office supplies-paper,pens,staples-from us with each order,but if that's all we get,we stagnate.For us to grow,we have to convince the customer,who already likes our products and service,to buy more than just basic supplies; we have to increase the order by 10,20,or 30 times." Allied's salespeople are trained to push the company's less traditional,higher-margin lines such as coffee and refreshments,printing and forms management,and office furniture.Allied's salespeople are engaging in:

A) cross-selling.
B) trading up.
C) buyer empowerment.
D) alliance building.
E) bundling.

Question 77

Zappos is an online shoe and apparel retailer that promotes the highest quality of customer service by maintaining the importance of each _____,the point at which customer and store personnel exchange information and develop learning relationships.

A) moment of truth
B) intervention
C) data capture
D) response situation
E) interaction

Question 78

_____ provide the fuel that keeps the corporate engines humming.Without them,there would be no business.

A) Marketing messages
B) Sales
C) Communications
D) Managers
E) JIT processes

Question 79

Outdoor gear retailer Recreational Equipment,Inc.(REI)in Washington collects a vast amount of data through its Web site,direct mailings,and retail stores.When REI considers new store locations,it examines order data to find places with high concentrations of customers buying online and through the company's catalogs.REI would be using _____ to identify potential store locations.

A) information formatting
B) database enhancement
C) data mining
D) data shading
E) customer prediction

Question 80

To target outdoor enthusiasts,Subaru of America added an outdoor life section to its Web site that is organized by area of interest.The site will serve as a platform for co-marketing and promotional programs.This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of:

A) campaign management.
B) customer aggregation.
C) transaction segmentation.
D) data mining.
E) knowledge management.