chapter 11 personal selling and sales promotion

8/11/2019 Chapter 11 Personal Selling and Sales Promotion

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Chapter 18Personal Selling and Sales Promotion

ESSAY

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

ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

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

ANS:

Answer not provided.PTS: 1 DIF: Moderate OBJ: 18-03 Identify the types of sales forcepersonnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

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

ANS:Answer not provided.PTS: 1 DIF: Moderate

OBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Promotion | MKTG: StrategyMSC: Knowledge

4. Discuss why recruitment of salespeople should be a continuous activity.

ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy

MSC: Knowledge

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

ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

6. Identify the major features of effective sales force compensation plans.

ANS:


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Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

7. List three major types of sales force compensation methods. What are the advantages anddisadvantages of each?ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

8. Identify and describe several ways to motivate sales personnel.

ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

9. Discuss the major factors to consider when designing sales territories.

ANS:Answer not provided.

PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Promotion | MKTG: StrategyMSC: Knowledge

10. Explain how a salesperson's performance can be evaluated.

ANS:Answer not provided.PTS: 1 DIF: Easy

OBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

11. How has the expenditure of promotional dollars on advertising, consumer sales promotionmethods, and trade sales promotion methods changed in recent years?ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-06 Explain what sales promotion activities are and how they are used.

NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge

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


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ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

13. What are some limitations of using sales promotion?ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

14. Describe consumer sales promotion and trade sales promotion, and then explain how theydiffer.ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods. | 18-08 Explore tradesales promotion methods. NAT: AACSB: Communication | MKTG: PromotionMSC: Knowledge

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

ANS:Answer not provided.PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods. | 18-08 Explore tradesales promotion methods. NAT: AACSB: Communication | MKTG: PromotionMSC: Knowledge

MULTIPLE CHOICE

16. Paid personal communication that attempts to inform and persuade customers to purchaseproducts in an exchange situation is called

a. advertising.b. sales promotion.c. personal selling.d. target marketing.e. public relations.

ANS: C PTS: 1 DIF: EasyOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

17. A major disadvantage of personal selling is that ita. is not remembered as well by consumers as


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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 promotionalactivities.

ANS: C PTS: 1 DIF: EasyOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

18. A sales career can offer all of the followingexcepta

a. structured, inflexible workday.b. high income.c. great deal of freedom.d. high level of training.

e. high level of job satisfaction.

ANS: A PTS: 1 DIF: EasyOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

19. 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.ANS: E PTS: 1 DIF: ModerateOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

20. The greatest amount of responsibility for providing customer satisfaction falls on theshoulders of

a. chief executive officers.b. salespeople.c. sales managers.d. quality control experts.

e. marketing directors.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Customer MSC: Knowledge

21. Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southernhalf of the state as a sales territory. Last year, the director of marketing for the publishingcompany told Jennifer's sales manager to increase her territory to the entire state. NowJennifer's customers are less satisfied with the company. They are most likelyto blame ____for their reduced level of customer satisfaction.

a. the textbook authors

b. the company's chief executive officerc. the marketing manager


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d. the sales managere. Jennifer

ANS: E PTS: 1 DIF: DifficultOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Application

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

a. prospecting.b. screening.c. researching.d. pre-approaching.e. surveying.

ANS: A PTS: 1 DIF: Moderate

OBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

23. The final stage of the selling process is

a. closing.b. trial close.c. presentation.d. follow-up.e. overcoming objections.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.

NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

24. Developing a list of potential customers is called

a. preapproaching.b. surveying.c. scouting.d. prospecting.e. screening.

ANS: D PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

25. Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluatesthem on the basis of their ability, willingness, and authority to purchase copy machines. Thisprocess is called

a. customer search.b. preapproach.c. approaching the customer.d. audience selection.e. prospecting.

ANS: E PTS: 1 DIF: Easy

OBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application


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26. 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.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

27. Advertising that encourages customers to send in reply cards for additional information aidssalespeople in achieving which goal of personal selling?

a. Convincing prospects to buyb. Finding prospects

c. Keeping customers satisfiedd. Making the presentatione. Following up the sale

ANS: B PTS: 1 DIF: DifficultOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Comprehension

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

a. telephone directories.b. customer referrals.c. trade shows.d. local restaurants.e. other employees.

ANS: B PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

29. 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 brandchoices.

d. develop a presentation for each of thepotential customers on his list.

e. contact each of the prospects to get an initialfeel for how likely they are to purchase hisproducts.

ANS: A PTS: 1 DIF: Moderate


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OBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

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

a. approaching customersb. preapproachingc. closing the saled. following upe. prospecting

ANS: E PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

31. 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.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: CustomerMSC: Application

32. Before contacting prospects, a salesperson for an industrial cleaning equipment company

analyzes information about the prospects' product needs, feelings about brands, and personalcharacteristics. This process is called

a. prospecting.b. preapproach.c. approaching the customer.d. sales training.e. sales planning.

ANS: B PTS: 1 DIF: Difficult

OBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Application

33. 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.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.


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NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

34. Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson whocalled on him before lunch was a real loser: "He has done a poor job of ____. He didn't evenknow what brands we carry or what types of retailers we service!"

a. prospectingb. preapproachc. follow-upd. presentinge. approach

ANS: B PTS: 1 DIF: DifficultOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: CustomerMSC: Application

35. Rick has reviewed a prospect's account and credit history, identified product needs, andgathered the appropriate literature. He feels he is ready for the ____ step of the personalselling process.

a. prospectingb. presentationc. approachd. preapproache. closing

ANS: C PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer

MSC: Application

36. The step of the personal selling process in which a salesperson contacts a potential customeris called

a. making the presentation.b. cold calling.c. the preapproach.d. the approach.e. prospecting.

ANS: D PTS: 1 DIF: Moderate


37. Creating a favorable impression and developing rapport with prospective customers is acritical part of the ____ step of personal selling.

a. following upb. making the presentationc. approachd. prospectinge. preapproach

ANS: C PTS: 1 DIF: Moderate



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38. 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 withoutany prior consent. Stacey's method of approach is known as

a. referral approach.

b. ambulance chasing.c. door-to-door selling.d. cold canvass.e. repeat contact.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

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

a. prospecting.b. preapproach.c. approach.d. making the presentation.e. overcoming objections.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

40. The salesperson must attract and hold the prospect's attention, stimulate interest, and spark adesire for the product during the

a. prospecting.b. preapproach.c. follow up.d. approach.e. sales presentation.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

41. Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the

housewares department didn't seem involved as he explained the new food processor to her.She suggests that he use a ____ as part of his presentation next time.

a. videob. referralc. demonstrationd. trial closee. qualification

ANS: C PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

42. Which of the following is nottrue when making the sales presentation?a. The salesperson should focus on anticipating


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questions and answering them before they'reasked.

b. The salesperson must spark interest in theproduct.

c. The salesperson should not only talk but also

listen to the customer.d. The salesperson should involve the customerby having him or her hold, touch, or use theproduct.

e. A salesperson should not sound like he or sheis just reading a script (i.e., he or she shouldbe flexible and respond to the customers'comments).

ANS: A PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge

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

a. listening carefully to questions and commentsand watching reactions during the salespresentation.

b. waiting until after the sale to see how theclient is enjoying the use of the product.

c. doing extensive research before the approachand making the sales presentation withoutadjustment.

d. using trial closings throughout the salespresentation.

e. making a very thorough and detailed salespresentation about the products and servicesbeing offered.

ANS: A PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

44. Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. Heexplains 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.

ANS: A PTS: 1 DIF: DifficultOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application

45. While anticipating objections and countering them before they are asked is a good idea, one

negative consequence of doing so is that the salesperson maya. annoy the customer.


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ANS: A PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: CustomerMSC: Application

54. Creative selling, which requires that salespeople recognize a potential buyer's needs and thenprovide the prospect with the necessary information, is performed by

a. order takers.b. order getters.c. missionary salespeople.d. trade salespeople.e. technical salespeople.

ANS: B PTS: 1 DIF: DifficultOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Comprehension

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

a. order taker.b. order generator.c. missionary salesperson.d. technical salesperson.e. order getter.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

56. Order-getting activities 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.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.


57. A person who primarily seeks repeat sales is called a(n)

a. current customer order getter.b. order recorder.c. order taker.d. follow-up salesperson.e. missionary salesperson.

ANS: C PTS: 1 DIF: EasyOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

58. The two groups of order takers in personal selling are


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a. current customer salespeople and new-business salespeople.

b. missionary salespeople and trade salespeople.c. inside order takers and field order takers.d. trade salespeople and technical salespeople.

e. advisory order takers and support order takers.

ANS: C PTS: 1 DIF: EasyOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

59. Retail salespeople are classified as

a. order getters.b. support personnel.c. trade salespeople.d. inside order takers.e. field order takers.

ANS: D PTS: 1 DIF: EasyOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

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

a. order getter.b. inside order taker.c. support person.d. field order taker.e. trade salesperson.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

61. A sales representative for Coca-Cola travels to various restaurants to determine how muchsyrup the customer needs for the coming period. This sales representative would be classifiedas a(n)

a. order getter.b. inside order taker.

c. field order taker.d. missionary salesperson.e. trade salesperson.

ANS: C PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

62. Doug Browton travels around to various established customers to see what new officesupplies they need. His customers have come to depend on him to check their supplies. Dougis a(n)

a. field order taker.

b. current customer order getter.c. missionary salesperson.


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d. inside order taker.e. trade salesperson.

ANS: A PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

63. 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.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

64. Which of the following is least likelyto be directly involved in actually making sales?

a. Order takerb. Current-customer salespersonc. Order getterd. Field order takere. Support sales personnel

ANS: E PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Comprehension

65. Assisting the producer's customers in selling to those customers is the major purpose of whichtype of salesperson?

a. Trade salespersonb. Technical salespersonc. Missionary salespersond. Order gettere. Order taker

ANS: C PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

66. Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He providescurrent customers with advice about a product's characteristics and applications. He is a(n)

a. missionary salesperson.b. trade salesperson.c. field order taker.d. inside order taker.e. technical salesperson.

ANS: A PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

67. Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state


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university that her job is to call on doctors and explain the benefits of new prescription drugsthat her firm develops. Daphne would call herself a(n)

a. technical salesperson.b. missionary salesperson.c. order taker.

d. order getter.e. trade salesperson.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

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

a. Trade salespeople

b. Field order takersc. Advisory salespeopled. Technical salespeoplee. Order getters


69. Jana works for Hormel Foods and she frequently sets up special displays and distributessamples of Hormel products to customers in supermarkets. Jana would best be classified asa(n)

a. trade salesperson.b. technical salesperson.c. inside order taker.d. field order taker.e. missionary salesperson.


70. The type of salesperson that usually requires training in physical science or engineering is the

a. trade salesperson.b. missionary salesperson.c. technical salesperson.d. order taker.e. order getter.

ANS: C PTS: 1 DIF: EasyOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

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

a. trade salesperson.b. inside order taker.


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c. tech support worker.d. missionary salesperson.e. technical salesperson.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

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

a. trade salesperson.b. missionary salesperson.c. technical salesperson.d. systems engineer.e. field order taker.

ANS: C PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

73. In which of the following does the salesperson join with people from the firm's financial,engineering, and other functional areas to engage in the personal selling process?

a. Trade sellingb. Missionary sellingc. Relationship sellingd. Team sellinge. Technical selling

ANS: D PTS: 1 DIF: EasyOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

74. Which of the following is particularly appropriate for pricey high-tech business products,such as jet aircraft and medical equipment?

a. Team sellingb. Relationship sellingc. Trade sellingd. Technical sellinge. Missionary selling

ANS: A PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

75. Which of the following involves building mutually beneficial long-term associations with a

customerusually a business customerthrough regular communications over prolongedperiods of time.

a. CRM sellingb. Missionary sellingc. Exclusive sellingd. Team selling

e. Relationship selling


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ANS: E PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

76. All of the following are key areas of sales force managementexcept

a. compensating salespeople.b. coordinating sales promotion efforts.c. recruiting salespeople.d. training sales personnel.e. motivating sales personnel.

ANS: B PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge

77. Sales objectives can do all of the following except

a. serve as a deterrent both to salespeople andtheir 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.

ANS: A PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Knowledge

78. Sales force objectives are generally established for

a. the organization as a whole only.b. the total sales force and for each salesperson.c. just 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.

ANS: B PTS: 1 DIF: Moderate


79. Which of the following is the bestexample of a well-stated sales objective?

a. Companywide sales should increase by 25percent.

b. Each salesperson should increase his or herclient group by 10 percent.

c. Each salesperson should bring in $25,000 innew sales by November 15.

d. The sales force should increase the marketshare in all markets by December 1.

e. Each salesperson should increase the numberof calls they make by 20 percent.


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ANS: C PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Comprehension

80. Sales objectives for individual salespeople can be stated in several ways. Which of the

following would least likelybe used for stating an individual salesperson's goal?a. Dollar volume salesb. Unit volume salesc. Average order sized. Ratio of profits relative to number of sales

callse. Average number of calls per time period

ANS: D PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

81. A company may determine how many sales calls per year it needs to serve customerseffectively and divide that by the average number of sales calls made by one salesperson inorder to

a. recruit appropriate salespeople.b. set sales force calling objectives.c. compensate salespeople fairly.d. train its salespeople.e. determine sales force size.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.

NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

82. When better market conditions prevail or when company growth occurs, a company maysuffer 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.

ANS: E PTS: 1 DIF: Difficult


83. Recruiting and selection of salespeople should include enough steps to yield the informationneeded to make accurate selection decisions. However, the stages of the process should besequenced 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.ANS: C PTS: 1 DIF: Easy


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OBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Comprehension

84. The bestadvice for recruiting and selecting salespeople for one's organization would be

a. follow a clear set of generally accepted job

characteristics when determining anapplicant's qualifications.b. keep the expensive stages near the beginning

of the recruiting process.c. find out how long the applicant plans to stay

with the company.d. make recruitment a continuous activity aimed

at seeking out the best applicants.e. recruit primarily from educational institutions.

ANS: D PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.


85. Which of the following bestcharacterizes the function of recruiting and selecting a salesforce?

a. It should be a continuous, systematic attemptto match applicants' characteristics to thefirm's needs.

b. It is a process that should be set up thatincorporates at least two steps: an interviewand a written application.

c. Sources of applicants should be limited, sincethe recruitment process is expensive and moreapplicants mean greater expense.

d. After interviewing applicants, the managershould attempt to find a position that can betailored to fit applicants' qualifications.

e. It should not be made from personnel in otherdepartments in the firm, as this wouldnecessitate training two people rather thanone.

ANS: A PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Comprehension

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

a. the company.b. his customers' companies.c. basic selling methods.d. new-product information.e. prospecting.

ANS: D PTS: 1 DIF: Easy

OBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Application


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87. Which of the sales force compensation methods is easy to administer, yields more predictable

selling expenses, and provides sales managers with a large degree of control oversalespeople?

a. Straight commission

b. Salary plus bonusc. Salary and commissiond. Straight commission and combinatione. Straight salary

ANS: E PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

88. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with asales force compensation method. He would like to have selling expenses relate directly tosales resources, an aggressive sales force, and minimization of nonselling tasks. What

compensation method(s) would bestfulfill his requirements?a. Combinationb. Straight salaryc. Straight salary plus generous fringe benefitsd. Straight commissione. Salary plus a bonus

ANS: D PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

89. Salespeople receive a set salary plus a commission based on sales with a

a. straight salary compensation plan.b. combination compensation plan.c. cafeteria plan.d. straight commission compensation plan.e. salary plus bonus program.

ANS: B PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

90. Effective motivation of a sales force is best achieved through

a. annual retreats at resort locations open tofamilies.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.




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91. In designing sales territories, a sales manager considers several major factors. The territories

must be constructed so that sales potential can be measured; the shape of the territories shouldfacilitate salespeople's activities to provide the best possible coverage of customers; and

a. territories should be designed to minimize

selling costs.b. all territories should be of similar size.c. the territorial pattern should consist of

concentric circles.d. the density of potential customers should be

minimized.e. the distribution of customers should be

relatively equal.

ANS: A PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Comprehension

92. 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.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Comprehension

93. Customer density and distribution are important factors in

a. prospecting.b. motivating salespeople.c. creating sales territories.d. compensating salespeople.e. establishing sales force objectives.

ANS: C PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

94. A primary goal of routing and scheduling decisions in personal selling is to

a. determine the sequence in which customerswill be called on.

b. use existing transportation facilities.c. minimize nonselling time.d. determine duration of sales calls.e. provide salespeople with an opportunity to

plan their own routes and schedules.

ANS: C PTS: 1 DIF: Easy


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95. ____ are designed to identify the customers called on and to present detailed informationabout interaction with those clients.

a. Invoicesb. Feedback noticesc. Work schedulesd. Call reportse. Recall files

ANS: D PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

96. The most common sales force evaluation practices are for sales managers to compare asalesperson's performance with other salespeople operating under similar selling conditions,

or to comparea. the size of sales territories.b. selling expenses by various members of the

sales force.c. the amount of new business generated.d. current performance with past performance.e. the ratio of costs to profits.

ANS: D PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge

97. Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluationof her performance for the prior year led to his conclusion that she lacked key productinformation. At their upcoming session, he will most likelydo which of the following?

a. Decrease the size of her territory.b. Increase her sales quotas.c. Terminate her.d. Recommend that she attend a training

program.e. Ignore this problem given that her sales

results were good.

ANS: D PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

98. Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producingmortgage loan officer at her company for the month of October. This contest exemplifies acompany's efforts at

a. motivating salespeople.b. compensating salespeople.c. providing training for the sales force.d. managing sales territories.e. selecting salespeople.

ANS: A PTS: 1 DIF: Easy


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99. In establishing sales promotion objectives, a marketer should always

a. concentrate on activities that will increase

consumer demand.b. focus on consumers.c. focus on resellers.d. be defensive in the methods used.e. align objectives with the organization's overall

objectives.

ANS: E PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

100. In recent years the proportion of promotional dollars spent on sales promotion has

a. increased relative to advertising.b. remained constant.c. declined slightly, and the proportion spent on

advertising has increased.d. declined slightly, and the proportion spent on

advertising has declined as well.e. increased, and the proportion spent on

advertising has risen as well.

ANS: A PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy

MSC: Knowledge

101. Which of the following is nota reason why the proportion of promotional dollars spent onsales promotion has increased in recent years?

a. Retailers have become more powerful relativeto manufacturers and are demanding moretrade sales promotion efforts.

b. Because of an increased focus on value,consumers are more responsive topromotional offers.

c. The greater emphasis on improving long-term

performance has resulted in an increased useof sales promotion methods.d. Sales promotions aimed at convincing

customers to change brands are more effectivebecause of declines in brand loyalty ingeneral.

e. All of these are reasons for the increasingproportion of promotional dollars being spenton sales promotion efforts.

ANS: C PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.

NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Knowledge


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102. Heinz uses various techniques such as coupons, free samples, and consumer contests to

encourage consumers to try its products. All of these marketing activities are considered

a. trade sales promotion methods.b. consumer incentives.

c. consumer sweepstakes.d. buying allowances.e. consumer sales promotion methods.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

103. As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers allthe advantages and disadvantages of the various consumer sales promotion methods. Aftercareful consideration, Quaker Oats decides to use ____, which are the most widely used formof consumer sales promotion.

a. free samplesb. rebatesc. point-of-purchase displaysd. couponse. cents-off offers

ANS: D PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Application

104. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current

customers but not new customers are believed to be disadvantages of which of the following?a. Sweepstakesb. Money refundsc. Frequent-user incentivesd. Couponse. Premiums

ANS: D PTS: 1 DIF: DifficultOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

105. As a promotional strategy, using coupons strives to achieve all of the following excepta. show how a product is used.b. increase sales volume quickly.c. introduce new package sizes.d. prompt trial usage of a new product.e. attract repeat users.

ANS: A PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

106. ____ are offers of cash to customers who purchase a specific product, and ____ are offers of

cash to customers who purchase a specific quantity of a specific product.a. Rebates; reimbursements


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b. Cents-off; refundsc. Rebates; premiumsd. Buy-back allowances; money refundse. Rebates; money refunds

ANS: E PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Application

107. Which of the following is most likelyto stimulate customer loyalty?

a. Couponsb. Sweepstakesc. Frequent-user incentivesd. Samplese. Premiums


OBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

108. Jamba Juice offers its customers a stamp card that allows them to receive a free smoothieafter they have filled an entire card. This is an example of a

a. free sample.b. rebate.c. frequent-user incentive.d. premium.e. consumer contest.

ANS: C PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

109. Signs, counter pieces, racks, and self-service cartons are all forms of

a. in-store attention grabbers.b. demonstrations.c. retail media.d. premiums.e. point-of-purchase displays.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

110. Although Maybelline would like to use ____ as a consumer sales promotion method, thismethod has extremely high labor costs that are more affordable for higher-end make-upcompanies such as Clinique and Este Lauder.

a. frequent-user incentivesb. demonstrationsc. couponsd. rebatese. consumer contests

ANS: B PTS: 1 DIF: Difficult


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OBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application

111. Realizing that her firm's sales promotion budget was small and cut by 30 percent for thecoming year, Stacey Baronas rules out ____ as playing a role in her sales promotion plan.

a. samplesb. couponsc. point-of-purchase materialsd. money refundse. premiums

ANS: A PTS: 1 DIF: DifficultOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Application

112. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to

customers who bought the large-size box. This form of sales promotion is called aa. premium.b. coupon.c. cents-off offer.d. free sample.e. money refund.

ANS: A PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

113. ____ are items offered free or at minimal cost as a bonus for purchasing a product.

a. Rebatesb. Premiumsc. Samplesd. Merchandise allowancese. Coupons

ANS: B PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

114. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of

Wheaties cereal featuring Tiger Woods. This is an example of aa. consumer prize.b. rebate.c. premium.d. free sample.e. free merchandise.

ANS: C PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Application

115. On a break between classes, Kelley Macon selects two magazines and mails the Publishers

Clearing House entry form. She doubts that she will win $10 million, but she never passes upa chance to participate in a


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a. premium.b. consumer contest.c. sampling.d. sales contest.e. sweepstakes.

ANS: E PTS: 1 DIF: EasyOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

116. The difference between consumer sales promotion methods and trade sales promotionmethods is

a. with consumer sales promotion, marketers tryto persuade retailers to carry their products.

b. with trade sales promotion, marketers focuson trading with consumers.

c. consumer and trade sales promotions aim at

retailers, but only trade sales promotions aimat wholesalers.

d. consumer sales promotions focus on gettingconsumers to buy their products, whereastrade sales promotions focus on gettingwholesalers and retailers to buy.

e. trade sales promotions attempt to persuadepeople to buy at particular stores, whereasconsumer sales promotions focus onpersuading people to buy particular products.

ANS: D PTS: 1 DIF: Difficult

OBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge

117. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's productsand market those products more aggressively is a

a. trade sales promotion method.b. point-of-purchase material.c. consumer sales promotion method.d. merchandise allowance.e. dealer loader.

ANS: A PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

118. Which of the following is an example of a trade sales promotion method?

a. Frequent-user incentivesb. Point-of-purchase displaysc. Retailer couponsd. Free merchandisee. Money refunds

ANS: D PTS: 1 DIF: Moderate

OBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge


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119. A temporary price reduction to resellers for purchasing specified quantities of a product is

a. premium money.b. a merchandise allowance.c. a buying allowance.

d. a buy-back allowance.e. a money refund.

ANS: C PTS: 1 DIF: EasyOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

120. Sometimes retailers are offered temporary price reductions for purchasing specified quantitiesof a product. These offers are used to provide an incentive to handle a new product, toachieve a temporary price reduction, or to stimulate the purchase of an item in largequantities. What is this sales promotion?

a. Push money

b. Buy-back allowancec. Buying allowanced. Cents-off offere. Money refund

ANS: C PTS: 1 DIF: DifficultOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Comprehension

121. If Green Giant wants to provide its resellers with a secondary incentive to stimulaterepurchases after an initial consumer coupon campaign for its latest product, it can offer

resellers a sum of money for each unit purchased. This type of sales promotion is aa. buying allowance.b. count-and-recount allowance.c. scan-back allowance.d. buy-back allowance.e. coupon follow-up campaign.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

122. When a manufacturer rewards retailers based on the number of pieces moved through theirscanners, this sales promotion method is known as a

a. merchandise allowance.b. count-and-recount allowance.c. buy-back allowance.d. scan-back allowance.e. scan-count allowance.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

123. When Levi's agrees to pay JC Penney's money for providing television advertising andSunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering


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a. premium money.b. cooperative advertising.c. a dealer loader.d. a buying allowance.e. a merchandise allowance.

ANS: E PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

124. An arrangement in which a manufacturer pays a certain amount of a retailer's media costs foradvertising that manufacturer's products is

a. a buy-back allowance.b. a merchandise allowance.c. premium money.d. push money.e. cooperative advertising.

ANS: E PTS: 1 DIF: DifficultOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

125. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product isavailable at Kmart and Wal-Mart. This form of sales promotion is called a(n)

a. cooperative advertising.b. dealer listing.c. push money.d. dealer loader.

e. advertising allowance.ANS: B PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

126. A ____ is a gift to a retailer who purchases a specified quantity of merchandise.

a. dealer loaderb. premiumc. dealer listingd. merchandise allowancee. count and recount

ANS: A PTS: 1 DIF: EasyOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

127. A dealer loader is

a. additional compensation to salespeople fromthe manufacturer to promote a line of goods.

b. an agreement in which a producer offers freemerchandise to a retailer.

c. an advertisement that promotes a product andidentifies retailers who sell the product.

d. a gift to a retailer who purchases a specifiedquantity of merchandise.


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e. a temporary price reduction to resellers forpurchasing a certain quantity of merchandise.

ANS: D PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

128. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the secondquarter he is going to sell all the Alance watches he can and use his extra earnings to go toCancun. He exclaims, "Can you believe the ____ program they have on for this quarter?"

a. buying allowanceb. merchandise allowancec. push moneyd. dealer loadere. sweepstakes

ANS: C PTS: 1 DIF: Difficult

OBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Application

129. While sales contests can motivate employees at all levels to participate, a disadvantage of thismethod of sales promotion is that

a. they are often too complicated.b. they are not taken seriously by the employees.c. people often discontinue their positive

behavior after the contest is over.d. many point-of-purchase display materials are

needed to implement a contest.

e. people often feel they are not beingrecognized enough.

ANS: C PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

Scenario 18.1Use the following to answer the questions.

Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to variousmotorcycle retail stores around the country. Jafrum does notmanufacture these items, but

sells them to other retailers and also sells its merchandise through its website. SeanThompson is one of the salespeople for Jafrum, and is responsible for obtaining newcustomers, increasing sales to current customers, and visiting the retail stores throughout thecountry. Recently, he has been given the sales objective from Jafrum's management toincrease sales dollars by 15% in the coming year by adding new customers. Sean's currentcompensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. Hissalary last year totaled $42,000. Management has given Sean the choice of going to acompensation plan where he will earn 15% of all sales, but no draw.

130. Refer to Scenario 18.1. Sean is developing his list of potential new retail customers byaccessing the yellow pages online. Here he finds the contact information for every motorcyclestore in the 48 contiguous states, and eliminates those who currently are his customers. Seanis involved in which step of the personal selling process?


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a. Prospecting and evaluatingb. Preapproachc. Overcoming objectionsd. Closinge. Following up

ANS: A PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Application

131. Refer to Scenario 18.1. Sean selects several motorcycle stores who are not currently hiscustomers. He then obtains and analyzes information about the current brands of motorcycleaccessories they stock, their sales trends, and credit history. Sean is engaged in which of thefollowing?

a. prospecting.b. the preapproach.

c. approaching the customer.d. making the presentation.e. overcoming objections.

ANS: B PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Application

132. Refer to Scenario 18.1. Sean has narrowed his list and is preparing a packet of informationabout Jafrum and its products to send to the prospects. He also includes a letter ofintroduction and says he will contact them within the next two weeks to set up a sales visit. In

this scenario, Sean is all of the following excepta. a trade salesperson.b. a field order taker.c. a missionary salesperson.d. an order getter.e. a new business salesperson.

ANS: C PTS: 1 DIF: DifficultOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

133. Refer to Scenario 18.1. Currently, Sean's compensation is based on the ____ plan, however heis considering changing to the ____ plan.

a. straight salary; salary plus commissionb. straight commission; straight salaryc. salary plus commission; straight commissiond. salary plus bonus; straight bonuse. straight bonus; straight commission

ANS: C PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

Scenario 18.2Use the following to answer the questions.


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The Presto Company manufactures several types of household appliances, including blenders,waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's,Macy's, and J.C. Penney's, through its own salesforce. Kerry Wilson is one of Presto'ssalespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has justcome from a monthly meeting where she has been informed about the new stovetop grill thatwill be part of next season's lineup. Presto's marketing department has developed apromotional plan for the new grill and outlined that plan for the sales staff in the meeting. Thepromotional plan for the next 60 days will include television commercials which demonstratethe new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. Inaddition, Kerry and other members of the salesforce will be given a free grill for their ownhome use so they can become more familiar with the product. Presto is also offering a freetrip to New York City for their staff salesperson who has the highest dollar in sales to his orher stores. To encourage the retail stores to push this product, Presto will offer the retail storea $5 discount for each grill that the store purchases after the 60-day promotion is over.

134. Refer to Scenario 18.2. Kerry and the other salesforce members arebestdescribed as a ____

sales force.a. technicalb. missionaryc. traded. fielde. pioneer

ANS: B PTS: 1 DIF: DifficultOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

135. Refer to Scenario 19.2. Presto appears to be using ____ to educate its sales force.

a. formal sales trainingb. on-the-job trainingc. negative motivationd. territorial meetingse. recruiting training

ANS: A PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

136. Refer to Scenario 19.2. Which of the following are consumer sales promotion methods thatPresto is using for the new stovetop grill?

a. television commercials and the customercontest

b. television commercials and the in-store rebatec. the customer contest and the in-store rebated. the sales force contest and the in-store rebatee. the sales force contest and the customer

contest

ANS: C PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy

MSC: Application


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137. Refer to Scenario 19.2. Presto's use of a free trip to New York is an example of ____, whilethe $5 discount to its retail stores is an example of ____.

a. a trade allowance; a buy-back allowanceb. a buying allowance; a dealer loaderc. a dealer loader; a buy-back allowance

d. a sales contest; a buy-back allowancee. a sales contest; a buying allowance

ANS: D PTS: 1 DIF: DifficultOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application

TRUE/FALSE

138. Personal selling is generally the most expensive element in the promotion mix.

ANS: T PTS: 1 DIF: EasyOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

139. The primary goals of personal selling are finding prospects, convincing prospects to buy, andkeeping customers satisfied.

ANS: T PTS: 1 DIF: ModerateOBJ: 18-01 Understand the major purpose of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

140. Most marketers depend on one-sale customers for long-run survival.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

141. Developing a list of potential customers is calledprospecting.ANS: T PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

142. The preapproach is the first step in the personal selling process.


143. Even though salespeople do not use the exact same sales methods, they do go through thesame general selling process.

ANS: T PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

144. In the cold canvass technique, the salesperson calls on potential customers without their priorconsent.


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145. Using referrals falls under the approach step in the personal selling process.


146. The approach step is an important step for gathering information about a buyer's needs andobjectives.

ANS: T PTS: 1 DIF: ModerateOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

147. Listening on the part of a salesperson is a major component in making a presentation.


148. One of the best ways to overcome a prospect's objections is to anticipate them and to dealwith them before the prospect has an opportunity to mention them.

ANS: T PTS: 1 DIF: EasyOBJ: 18-02 Describe the basic steps in the personal selling process.


149. A salesperson should not attempt to close a transaction until he or she has finished the entirepresentation.ANS: F PTS: 1 DIF: DifficultOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

150. Closing the sale is not a part of the sales presentation in which hidden objections arediscovered.


151. It is never good to ask customers questions while giving the sales presentation, as thecustomer may raise objections that the salesperson cannot overcome.


152. If possible, the salesperson should handle objections only when they arise.

ANS: T PTS: 1 DIF: Moderate


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153. Following up involves listening to a customer's response after finishing the presentation andovercoming those objections.

ANS: F PTS: 1 DIF: DifficultOBJ: 18-02 Describe the basic steps in the personal selling process.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

154. Order getters are sometimes called creative sellers.ANS: T PTS: 1 DIF: ModerateOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

155. A single salesperson may perform the functions of order getting, order taking, and support.

ANS: T PTS: 1 DIF: EasyOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

156. Current customers are sources of leads for finding prospective customers.

ANS: T PTS: 1 DIF: EasyOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

157. Locating prospects, educating customers, and building goodwill are functions performed bysupport personnel.ANS: T PTS: 1 DIF: EasyOBJ: 18-03 Identify the types of sales force personnel.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

158. The missionary salesperson's primary purpose is to sell to the producer's customers.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

159. Some support personnel, such as trade salespeople, may perform order-taking functions inaddition to support functions.

ANS: T PTS: 1 DIF: EasyOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

160. The focus of personal selling is shifting from selling a specific product to building long-termrelationships with customers by finding solutions to their needs, problems, and challenges.

ANS: T PTS: 1 DIF: ModerateOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Marketing Plan


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MSC: Knowledge

161. Team selling involves building mutually beneficial long-term associations with a customerthrough regular communications over prolonged periods of time.

ANS: F PTS: 1 DIF: DifficultOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion | MKTG: Marketing PlanMSC: Knowledge

162. Relationship selling is used especially in consumer marketing.

ANS: F PTS: 1 DIF: DifficultOBJ: 18-04 Recognize new types of personal selling.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

163. Selection of the right type and proportion of salespeople is important because it is a one-time

decision that affects the company's ability to generate sales and profits.ANS: F PTS: 1 DIF: DifficultOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

164. When determining the characteristics desirable in salespeople, the sales manager shouldanalyze the characteristics of the successful and ineffective sales personnel within the firm.

ANS: T PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

165. Among others, management recruits from within the firm or from recommendations ofindividuals by current employees.

ANS: T PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

166. Because salespeople are an expense to the company, yet they are the ones who generaterevenues for the company, management must strive to achieve optimality in the size of itssales force.


167. Sporadic recruiting is more desirable than continuous recruiting because of the expenseinvolved in the process.ANS: F PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Promotion | MKTG: StrategyMSC: Knowledge

168. Regardless of one's experience, firms always put new employees through a training programgeared for their specific firm.


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ANS: F PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

169. Training programs designed for experienced company salespeople generally are orientedtoward product information.


170. A straight commission compensation program ensures that selling costs will be predictable.


171. Effective sales force motivation is achieved through a continual organized set of activitiesperformed by the company's sales management.


172. The aim of a motivational program is to create a working environment in which salespersonnel can achieve their goals.

ANS: T PTS: 1 DIF: Easy


173. To equalize the workload, a sales manager divides a geographic market into sales territoriesof equal size according to land area.ANS: F PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

174. Maximization of selling time and minimization of nonselling time are the major goals ofrouting and scheduling decisions.

ANS: T PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

175. A salesperson with a larger territory will have the advantage of being able to achieve moresales than salespeople with smaller territories.

ANS: F PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

176. Salespeople should know the sales objectives of the firm in order to know what they areexpected to accomplish.


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ANS: T PTS: 1 DIF: EasyOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge

177. Generally, a salesperson's performance is judged by comparing it with predeterminedstandards rather than by comparing it with the performance of other salespeople.


178. The factors used to evaluate a salesperson's performance are based on the sales objectives setby the sales manager for that salesperson.

ANS: T PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.


179. A salesperson's performance is often compared with the performance of other salespeopleoperating under similar conditions.ANS: T PTS: 1 DIF: ModerateOBJ: 18-05 Understand sales management decisions and activities.NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

180. Sales promotion activities are always supplementary to personal selling and advertising.

ANS: F PTS: 1 DIF: Easy

OBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

181. Decisions regarding sales promotion do not affect advertising decisions.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Communication | MKTG: Promotion | MKTG: StrategyMSC: Knowledge

182. Generally, sales promotion attempts to influence consumers to purchase products but is notnormally aimed at resellers.

ANS: F PTS: 1 DIF: EasyOBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

183. Sales promotion may facilitate personal selling.

ANS: T PTS: 1 DIF: ModerateOBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

184. Sales promotion activities are generally used in conjunction with other promotional efforts.

ANS: T PTS: 1 DIF: Moderate


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OBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

185. Sales promotion objectives should be consistent with the organization's overall objectives andits marketing objectives.ANS: T PTS: 1 DIF: EasyOBJ: 18-06 Explain what sales promotion activities are and how they are used.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: StrategyMSC: Knowledge

186. A marketer's selection of sales promotion techniques is influenced by the state of thecompetitive environment.ANS: T PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy

MSC: Knowledge

187. Two major categories of sales promotion methods are consumer and trade.

ANS: T PTS: 1 DIF: EasyOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

188. One objective of consumer sales promotion techniques is to encourage patronage for aspecific retail store.ANS: T PTS: 1 DIF: Easy

OBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

189. Many consumers redeem coupons only for products they normally buy.

ANS: T PTS: 1 DIF: EasyOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

190. Most people who purchase rebated products actually apply for the rebates.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

191. Demonstrations in retail stores are not used widely because they are expensive.

ANS: T PTS: 1 DIF: EasyOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

192. The use of sampling is declining.ANS: F PTS: 1 DIF: Easy


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OBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

193. Consumer contests and sweepstakes are used to promote established products and tend togenerate similar levels of consumer response.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

194. Generally, consumer sweepstakes are more popular than consumer contests.

ANS: T PTS: 1 DIF: EasyOBJ: 18-07 Explore specifice consumer sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion | MKTG: CustomerMSC: Knowledge

195. Buying allowances are effective promotional techniques because they result in profits forresellers.ANS: T PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

196. Merchandise allowances are generally used in conjunction with high-volume, low-profititems.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.


197. Cooperative advertising refers to advertisements promoting a product and identifyingparticipating retailers that sell the product.

ANS: F PTS: 1 DIF: ModerateOBJ: 18-08 Explore trade sales promotion methods.NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

chapter 11 personal selling and sales promotion

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