Question 1

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

Accepted Answer

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.

Accepted Answer

Internet companies do use product and customer profiling to reveal cross-selling opportunities while a customer is surfing their sites. This is done through tracking a customer's browsing behavior, purchase history, and demographic data to suggest complementary products or services that the customer may be interested in.

Question 3

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

Accepted Answer

Customer relationship management (CRM) is a strategy that involves building and maintaining relationships with customers by utilizing various touch points (such as email, social media, phone calls, etc.) and data mining techniques to gather information about their needs and preferences. Therefore, the statement is true.

Question 4

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

Accepted Answer

Identifying customer relationships is the first step in initiating the CRM cycle.

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.

Accepted Answer

Objections from potential customers are a natural part of the sales process, even if the salesperson has done an excellent job. These objections can provide valuable feedback and allow the salesperson to address any concerns or questions the customer may have. It is not necessarily an indication of poor job performance by the salesperson. Rarely does a prospect agree to make a purchase right after a presentation.Objections are common and expected in the selling process.

Question 6

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

Accepted Answer

Relationship selling focuses on long-term relationships with customers, rather than solely on making a sale. The objective is to build trust and create a loyal customer base through communication and personalized experiences.

Question 7

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

Accepted Answer

Personal selling involves face-to-face communication between a salesperson and a prospective customer. It allows for a more personalized and interactive approach to sales, which is particularly effective for high-value and complex products. Personal selling strategies can help build relationships and trust with customers, provide technical assistance, and address any concerns or questions they may have, leading to greater customer satisfaction and increased sales. Therefore, personal selling becomes a more important promotional tool as product value and complexity increase. Generally speaking,personal selling becomes more important as the number of potential customers decreases,as the complexity of the product increases,and as the value of the product grows.See Exhibit 17.1.

Question 8

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

Accepted Answer

Relationship selling is more common in business-to-business (B2B) selling situations, rather than consumer goods selling situations. In B2B selling, building strong relationships with clients is important for building long-term partnerships and repeat business. In consumer goods selling, transactions are often one-time or infrequent, and the focus is more on product features and branding rather than building long-term relationships. Relationship selling is more typical with selling situations for industrial-type goods.

Question 9

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

Accepted Answer

The first step is generating leads.

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.

Accepted Answer

Qualifying a sales lead consists of determining the prospect's need,buying power,and receptivity and accessibility.

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.

Accepted Answer

Knowledge 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.

Accepted Answer

Tara is not using cold calling. She is using referral marketing by asking her satisfied customers for recommendations. This is a referral.

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.

Accepted Answer

Dave is meeting with potential sponsors and trying to convince them to sponsor the event, which is an example of 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.

Accepted Answer

Effective negotiators avoid using price as a sales tool.

Question 15

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

Accepted Answer

Customer-centric focuses on putting the customer at the center of decision-making and strategy development, similar to the marketing concept which also prioritizes customer needs and wants.

Question 16

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

Accepted Answer

This is true. It is important for a salesperson to gather information and research about the prospect's organization and its buyer before approaching them to have a better understanding of their needs and how their product or service can benefit them. This can help build rapport and increase the chances of a successful sale.

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.

Accepted Answer

Volvo would have used data mining techniques to find individuals who were car enthusiasts and likely interested in their concept cars becoming real-life products. This would help them target their website and marketing efforts effectively.

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.

Accepted Answer

With relationship selling, the salesperson would spend most of his or her contact time building a relationship with the prospect and understanding their needs and preferences. The salesperson would not solely focus on talking about the product and would not want to waste the customer's time with information they may not find relevant. With relationship selling,the salesperson spends most of his or her time attempting to build a problem-solving environment with the customer.See Exhibit 17.2.

Question 19

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

Accepted Answer

Many point-of-sale software programs enable customers to easily provide information about themselves without feeling their privacy has been violated.

Question 20

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

Accepted Answer

The interaction between a customer and the organization is the basis upon which CRM systems are built.

Quiz 33: Personal Selling and Sales Management