Deck 17: Personal Selling and Direct Marketing Strategies

Question 1

In which stage of the personal selling process would a salesperson say, "I'm able to give you a low introductory price if you place your order by the end of the week"?

A) preapproach
B) close the sale
C) prospecting
D) overcoming objections
E) follow-up

Answer 1

B

Question 2

A salesperson researching a company's buying styles and product lines is most likely in the ________ stage of the selling process.

A) overcome objections
B) preapproach
C) approach
D) sales presentation
E) close the sale

Answer 2

B

Question 3

The step that follows preapproach in the personal selling process is ________.

A) sales presentation
B) close the sale
C) overcome objections
D) prospecting
E) approach

Answer 3

E

Question 4

Which of the following is generally considered an advantage of personal selling over other marketing options?

A) cost-effectiveness for marketing inexpensive products
B) the development of personal relationships with customers
C) low rates of turnover
D) low compensation costs for employees
E) the ability to reach large numbers of customers

Question 5

What should a salesperson do during the fifth step of the personal selling process?

A) block objections
B) anticipate and address objections
C) begin building a bridge to the next sale
D) wait for signals that the customer is ready to buy
E) indirectly ask the customer for her business

Question 6

During which step of the personal selling process is it MOST important for a salesperson to build rapport with a potential customer?

A) preapproach
B) prospecting
C) follow-up
D) sales presentation
E) qualifying

Question 7

Which of the following marketing communication tools involves a representative of a company interacting directly with a consumer to provide information that helps the consumer make a buying decision?

A) personal selling
B) advertising
C) sponsorship
D) publicity
E) public relations

Question 8

Examples of ________ that can be used in the prospecting stage of personal selling include LinkedIn.com, Biznik.com, and WomanOwned.com.

A) CRM systems
B) local business publications
C) industry publications
D) professional online social networks
E) online databases

Question 9

The first step in the personal selling process is ________.

A) preapproach
B) prospecting
C) approach
D) overcome objections
E) sales presentation

Question 10

A disadvantage of personal selling is a high turnover rate. The turnover rate refers to which of the following?

A) the rate at which prospects are turned into qualified prospects
B) the rate at which qualified prospects are turned into customers
C) the percentage of customers who stop doing business with a company in a given year
D) the percentage of a sales force that leaves a company in a given year
E) the percentage of a sales force that moves into management positions in a given year

Question 11

Which of the following statements about consultative selling is true?

A) Consultative selling primarily uses hard-sell tactics.
B) A salesperson using consultative selling is more focused on selling products or services than on solving a customer's problems.
C) With consultative selling, the salesperson tries to develop a win-win relationship with customers.
D) People who engage in consultative selling do not prospect for new customers.
E) Consultative selling is a short-sighted approach.

Question 12

Using an alternative close, a salesperson would ask a prospect to ________.

A) buy immediately in order to get a discount
B) choose between buying or not buying
C) choose between product features or other options
D) express any objections to buying
E) identify how much will be ordered

Question 13

The salesperson makes contact with the customer for the first time in the ________ step of the selling process.

A) prospecting
B) overcome objections
C) preapproach
D) approach
E) sales presentation

Question 14

A question that broadly addresses the prospect's need and offers a solution can be effective at the beginning of the ________ step of the selling process.

A) preapproach
B) prospecting
C) follow-up
D) sales presentation
E) qualifying

Question 15

A prospect list that is generated internally is typically considered ________ than a prospect list generated from external sources.

A) more expensive
B) less reliable
C) less potentially profitable
D) more in-depth
E) more valuable

Question 16

A salesperson would be most likely to use Standard & Poor's during which stage of the personal selling process?

A) preapproach
B) approach
C) sales presentation
D) overcome objections
E) close the sale

Question 17

Which of the following is the most logical reason that an organization would rely heavily on personal selling?

A) to make more cost-efficient use of the promotional mix
B) to move the focus away from developing customer relationships
C) to better service many small customers
D) to more effectively sell highly technical products
E) to decrease marketing mix expenditures

Question 18

Prospecting is the step in the selling process in which the salesperson ________.

A) gathers detailed information about a prospective customer before making a sales call
B) meets the customer for the first time
C) identifies potential customers
D) tells the customer the product's general benefit
E) clarifies and overcomes customer objections to buying

Question 19

The more ________ the product, the more likely a company is to rely on personal selling to promote it.

A) popular
B) available
C) expensive
D) impersonal
E) marketable

Question 20

The general personal selling process, which is widely accepted, consists of ________ steps.

A) three
B) four
C) five
D) six
E) seven

Question 21

________ state what the sales force is expected to accomplish and when.

A) Compensation strategies
B) Key account strategies
C) Relationship objectives
D) Behavioral objectives
E) Sales force objectives

Question 22

It is the responsibility of a ________ to organize, motivate, and lead salespeople.

A) product specialist
B) customer service representative
C) sales manager
D) sales representative
E) new business developer

Question 23

When a company sets out to plan, implement, and control the personal selling function, the company is undertaking ________.

A) sales design
B) sales management
C) group sales efforts
D) co-op selling
E) sales promotion

Question 24

Under a pay-for-performance compensation strategy, salespeople are paid based on the ________.

A) number of new customers they secure
B) product knowledge they exhibit
C) quality of their relationships with major customers
D) amount of sales or profits they deliver
E) number of sales calls they make

Question 25

A marketer using information for a company's database of customer information such as previous inquiries, transactions, and servers is using a(n) ________.

A) house file
B) PURL
C) ROI
D) outside list
E) inside sale

Question 26

________ is any communication addressed to a consumer that is designed to generate a response.

A) Personal selling
B) Advertising
C) Direct marketing
D) Sales promotion
E) Publicity

Question 27

Members of a company's ________ conduct business from their offices using telephones, emails, or visits from prospective buyers to generate sales.

A) outside sales force
B) inside sales force
C) industry sales force
D) customer sales force
E) product sales force

Question 28

Psychographics data in a customer database used by direct marketers include information regarding a customer's ________ and ________.

A) interests; income
B) activities; opinions
C) age; buying preferences
D) opinions; age
E) hobbies; family stage

Question 29

A(n) ________ sales force is usually less expensive for a company to operate than a(n) ________ sales force.

A) product line; geographic
B) product line; key account
C) industry; geographic
D) inside; outside
E) outside; inside

Question 30

Which of the following is most important for direct marketing to be effective?

A) an online presence
B) a good customer database
C) a well-trained sales force
D) telephone marketing
E) catalogs

Question 31

Using a(n) ________ close, a salesperson would ask a prospect how much she would like to order.

A) trial
B) standing-room-only
C) alternative
D) assumptive
E) follow-up

Question 32

Which of the following is NOT necessarily a skill or quality possessed by an ideal salesperson candidate?

A) the ability to work as part of a team
B) the ability to work independently
C) management experience
D) strong listening skills
E) strong personal skills

Question 33

The sales management process begins with ________.

A) developing the sales force strategy
B) setting sales force objectives
C) recruiting and training the sales force
D) motivating the sales force
E) evaluating the sales force

Question 34

Information about a customer's age, income, and family make-up is in the ________ category of a customer database.

A) demographic
B) psychographic
C) geographic
D) behavioral
E) assessment

Question 35

Which of the following is an advantage of organizing the sales force by geography?

A) cost-efficiency
B) salespeople with in-depth product knowledge
C) salespeople with in-depth industry knowledge
D) stronger relationships with a company's most important customers
E) multiple salespeople calling on one customer

Question 36

Which of the following is NOT part of the sales management process?

A) determining the size of the sales force
B) recruiting and hiring salespeople
C) setting company objectives
D) motivating individual salespeople
E) evaluating the performance of individual salespeople

Question 37

Kim Smith is a sales manager for a large corporation. When organizing her sales force, Kim decided to have each selling team focus on only one very large customer. Kim has used the ________ sales force organization.

A) geographic
B) product line
C) services
D) key accounts
E) industry

Question 38

In which step in of the sales process would the salesperson call to ensure customer satisfaction and repeat business?

A) approach
B) sales presentation
C) overcome objections
D) close the sale
E) follow-up

Question 39

Through ________ used to train salespeople, all members of the sales force hear the company message at the same time and are motivated by the energy of the meeting.

A) sales meetings
B) webinars
C) on-demand training videos
D) Web-based knowledge centers
E) podcasts

Question 40

What is the term used to identify the individuals in a company who travel to call on customers in the field?

A) product sales force
B) outside sales force
C) inside sales force
D) industry sales force
E) customer sales force

Question 41

Last week, Andrew, who works for a beverage distributor, made his first sale at a new restaurant. Today, Andrew plans to stop by the restaurant to make sure that the order has arrived and that the staff is ready to sell the new products. Andrew is in the ________ step of the personal selling process.

A) approach
B) overcome objections
C) preapproach
D) close the sale
E) follow-up

Question 42

In which of the following situations would personal selling be the LEAST cost-effective choice?

A) a manufacturer selling a line of running shoes to a chain of department stores
B) an automobile dealer selling luxury cars
C) a real estate agent selling a home
D) a chain of supermarkets selling convenience products
E) a computer systems firm selling hardware and software to a large business

Question 43

A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its products to wholesalers and cities. This is an example of ________.

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

Question 44

The sales force of Conway Pools has identified a number of prospects. Which of the following will most likely occur next?

A) The outside sales force will call on all prospects.
B) The outside sales force will close the deal with one of the prospects.
C) The outside sales force will learn as much as possible about the prospects.
D) The inside sales force will attend meetings with qualified prospects.
E) The inside sales force will put together a presentation for the prospects.

Question 45

The ________ regulates email marketing.

A) Do Not Mail List
B) Commitment to Consumer Choice
C) Direct Marketing Association
D) CAN-SPAM Act
E) Do Not Call Registry

Question 46

Life cycle direct marketing is most likely to be used through which of the following?

A) infomercials
B) direct-response TV
C) email
D) telemarketing
E) direct-response advertising

Question 47

________ is direct communication to a consumer that is conducted over the telephone.

A) Direct order
B) Telemarketing
C) Direct-response advertising
D) Direct selling
E) Promotional selling

Question 48

Which kind of marketing involves sending a pamphlet or flyer containing an offer to a person at a particular address?

A) direct-response advertising
B) dynamic imaging
C) catalog
D) direct mail
E) Internet marketing

Question 49

After salesperson Danny O'Reilly has made a sale, he asks his customer if she knows of anyone else who might also be interested in buying his products. In doing so, he is ________.

A) prospecting
B) closing the sale
C) overcoming objections
D) preapproaching
E) completing follow-up

Question 50

The ________ was established by the Direct Marketing Association.

A) Do Not Mail List
B) House File
C) PURL
D) CAN-SPAM Act
E) Do Not Call Registry

Question 51

Cybele is a part of the sales force at Lenses for Less, a company that sells contact lenses, prescription glasses, and nonprescription glasses to consumers through direct marketing and to retail outlets through personal selling. Cybele provides sales support for several sales representatives, creating customized sales presentations and maintaining detailed customer information in the office as the sales representatives travel to meet with customers. Cybele is part of the company's ________ sales force.

A) product line
B) territorial
C) direct marketing
D) inside
E) outside

Question 52

Catalogs, brochures, and product samples are all examples of which type of marketing?

A) direct-response advertising
B) mail order
C) dynamic imaging
D) Internet
E) sales promotion

Question 53

A company is using ________ when it includes products targeted to specific customers, based on behavior patterns and inventory, in emails to those customers.

A) life cycle marketing
B) direct-response advertising
C) mail ordering
D) direct mailing
E) dynamic imaging

Question 54

All of the following are forms of direct marketing EXCEPT ________.

A) catalogs
B) public relations
C) mail order
D) direct-response advertising
E) telemarketing

Question 55

As the salesperson entered the prospect's office, the salesperson extended his hand and said, "Your old college roommate, Tiara Johns, suggested I call on you." This action occurred in which stage of the personal selling process?

A) approach
B) prospecting
C) preapproach
D) close the sale
E) follow-up

Question 56

Which of the following is the most accurate name for a 30-minute television advertising program marketing a single product?

A) sponsored entertainment
B) home shopping channel
C) integrated marketing
D) dynamic imaging
E) infomercial

Question 57

Johnson Business Solutions, Inc., maintains one sales force for its copy machines and a separate sales force for its computer systems. Johnson Business Solutions utilizes a ________ sales organization.

A) product line
B) industry
C) territorial
D) key accounts
E) complex

Question 58

Which of the following are two major forms of direct-response television marketing?

A) dynamic imaging and direct-response TV
B) home shopping channels and infomercials
C) home-selling and direct selling
D) call-in response and Web-site response
E) home shopping channels and life cycle marketing

Question 59

Lyall Electric, Inc., maintains a sales force for its small appliance customers and a separate sales force for its automotive customers. Lyall Electric utilizes a(n) ________ sales force organization.

A) intensive
B) geographic
C) industry
D) product line
E) key accounts

Question 60

Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer. Marlene is preparing for a first meeting with a wholesaler who is a potential customer. Marlene is learning as much as she can about the wholesaler's organization. Marlene is in the ________ step of the personal selling process.

A) prospecting
B) sales presentation
C) preapproach
D) approach
E) overcome objections

Question 61

The Do Not Call Registry and the Do Not Mail List were both established by the federal government.

Question 62

Sales management is responsible for supplying leads to the sales force so salespeople can focus on the preapproach.

Question 63

Telemarketing that is not outsourced requires relatively little financial investment from a company.

Question 64

Though direct marketing permits high target-market selectivity and can be personalized, it does not allow easy measurement of results.

Question 65

Refer to the scenario below to answer the following questions.
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tool only has fifteen customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tool are approximately $1 million. "You might say we have all of our eggs in one basket," says owner Arthur Deetz. Therefore, it is critical that a competent sales force nurture those few but large accounts. Ninety-five percent of Reliable Tool's customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is essential.
Which type of direct marketing would make the most sense for Reliable Tool to use to supplement personal selling, considering that the company has only a few customers but very deep lines of complex products?

A) life cycle marketing
B) DRTV
C) infomercials
D) catalogs
E) email blasting

Question 66

Few companies provide sales training beyond a few weeks or months for new members of the sales force.

Question 67

Fiona Lambrech is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Fiona wants to reach a selective market of individuals who have recently donated to international charities. Which of the following types of direct marketing is Fiona most likely to use?

A) direct-mail marketing
B) catalog marketing
C) telemarketing
D) direct-response TV marketing
E) m-commerce

Question 68

On average, direct marketing generates a return on investment that is less than that of nondirect marketing communication tools.

Question 69

Refer to the scenario below to answer the following questions.
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tool only has fifteen customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tool are approximately $1 million. "You might say we have all of our eggs in one basket," says owner Arthur Deetz. Therefore, it is critical that a competent sales force nurture those few but large accounts. Ninety-five percent of Reliable Tool's customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is essential.
How would a key accounts sales force organization benefit Reliable Tool?

A) It would increase the amount of travel required of each Reliable Tool salesperson.
B) It would enable Reliable Tool salespeople to build close relationships with clients.
C) It would help Reliable Tool salespeople become experts on the specific parts they sell.
D) It would allow Reliable Tool management to better supervise and evaluate its salespeople.
E) It would eliminate the need for inside salespeople at Reliable Tool.

Question 70

Refer to the scenario below to answer the following questions.
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tool only has fifteen customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tool are approximately $1 million. "You might say we have all of our eggs in one basket," says owner Arthur Deetz. Therefore, it is critical that a competent sales force nurture those few but large accounts. Ninety-five percent of Reliable Tool's customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is essential.
Because Reliable Tool has only a few customers, the sales force manager wants to make satisfying customers throughout the sales process as important as making large sales. Which of the following is the best strategy for the Reliable Tool sales manager to adopt in order to motivate the sales force to focus on customer satisfaction?

A) paying the sales force on a straight commission
B) making commissions a large portion of each salesperson's compensation package
C) creating a recognition program for salespersons with the highest ratings on customer surveys
D) organizing the sales force by product line
E) organizing the sales force by industry

Question 71

In the personal selling process, a prospect is a potential customer.

Question 72

Personal selling can take place in a business or nonbusiness environment.

Question 73

Financial services provider USAA sends materials about teaching teenagers how to drive safely to USAA customers who have children approaching driving eligibility age. USAA is using ________ information from a customer database to determine which customers should receive the materials.

A) demographic
B) geographic
C) psychographic
D) behavioral
E) key contact

Question 74

Virtually every salesperson follows the personal selling process to recruit new business.

Question 75

The number of salespeople in the United States is expected to continue to increase in the next five years.

Question 76

Companies that use the Internet for direct marketing are required by law to post their privacy policies on their Web sites.

Question 77

Order taker and customer service representative are among the key sales roles.

Question 78

The final stage of the creative selling process is the close.

Question 79

A company that uses a pull strategy is more likely to use personal selling than a company that markets a similar product using a push strategy.

Question 80

Today's direct marketers use databases to deliver their offerings through personalized communications to small target groups or even individual customers.