87 terms

Sales Management Chp3

STUDY
PLAY
Which of the following is not a key decision area of corporate strategy?
a. Corporate mission
b. Strategic business unit definition
c. Target market selection
d. Strategic business unit objectives
e. Corporate growth orientation
C
Which of the following is one of the steps in corporate strategy development?
a. Developing a marketing mix to serve a target market.
b. The development of an account management strategy.
c. Developing a corporate strategy for each of the SBUs.
d. Determining the amount to spend on the personal selling function.
e. Analyzing the corporate situation to identify potential opportunities and threats.
E
Which of the following is not one of the steps in corporate strategy development as outlined in the text?
a. Determining corporate mission and objectives.
b. The development of an account management strategy.
c. Defining strategic business units.
d. Setting objectives and resource allocations for each strategic business unit.
e. Analyzing the corporate situation to identify potential opportunities and threats.
B
Which of the following is a key decision area for marketing strategy?
a. account targeting strategy.
b. relationship strategy.
c. selling strategy.
d. marketing mix development.
e. sales channel strategy.
D
The ________ provides direction for strategy development and execution throughout the organization.
a. mission statement
b. strategy statement
c. corporate plan
d. business unit portfolio
e. goal statement
A
The most successful mission statements are
a. simple.
b. complete.
c. communicated directly to salespeople.
d. all of the above.
D
One definition of an SBU is
a. a qualitative description of the firm's strategic orientation in relation to customers and markets, products and services, geographic scope, and technology.
b. the method by which corporate management implements, evaluates, and controls the corporate strategic plan.
c. the corporate growth orientation of the firm.
d. a designated unit within a corporation that is operated like an individual business.
e. the firm's decision regarding market share objectives for different product lines.
D
If the sales organization objective is to maintain sales volume then the SBU objective is likely to be
a. hold market share.
b. build market share.
c. develop market share.
d. establish market share.
e. harvest market share.
A
If the sales organization objective is to increase sales volume and expand distribution outlets, then the SBU objective is likely to be
a. hold market share.
b. build market share.
c. develop market share.
d. establish market share.
e. harvest market share.
B
If the sales organization objective is to minimize selling costs and clear out inventory, then the SBU objective is likely to be
a. hold market share.
b. build market share.
c. divest/liquidate market share.
d. establish market share.
e. harvest market share.
C
By creating something perceived industry wide as being unique, a company is employing the ___________ business unit strategy.
a. generic
b. differentiation
c. low-cost
d. segmentation
e. niche
B
A low overall market share with domination in a particular region or segment is usually indicative of a company employing this business unit strategy:
a. segmenting.
b. regional.
c. differentiation.
d. niche.
e. low cost.
D
A company's marketing communications strategy consists of a mixture that includes all of the following except
a. publicity.
b. distribution intensity.
c. advertising.
d. personal selling.
e. sales promotion.
B
___ _ is the only promotional tool that consists of personal communication between seller and buyer.
a. Sales promotion
b. Personal selling
c. Advertising
d. Public relations
e. Publicity
B
All of the following would suggest the use of personal selling-driven marketing communications strategies except when
a. trying to close the sale.
b. the message timing is important.
c. message flexibility is important.
d. repetitive contact is important.
e. reaction speed is important.
D
Personal selling driven strategies are appropriate when
a. the market consists of only a few buyers scattered rather thinly over an area.
b. a professional buyer is involved and does not need much information.
c. the product is complex.
d. the purchase is relatively unimportant.
e. service after the sale is not necessary.
C
Advertising-driven marketing communications strategies are best when all of the following characteristics exist except
a. There are many buyers.
b. Buyers are concentrated geographically.
c. Purchase information needs are low.
d. Purchases are not important.
e. Products being purchased are low in complexity.
B
The preferred marketing communications tool for business marketing is
a. public relations.
b. advertising.
c. personal selling.
d. publicity.
e. sales promotion.
C
Which of the following statements regarding the marketing communications mix is false?
a. The marketing communications mix should be consistent with the other elements of the marketing mix.
b. An effective marketing communications mix must capitalize on the advantages of each marketing communications tool.
c. In consumer marketing situations, the preferred marketing communications tool is personal selling.
d. The benefits of personal selling may outweigh the costs in certain types of product/market situations.
e. Firms in the direct selling industry, such as Avon and Mary Kay, use an atypical marketing communications strategy.
C
Which of the following marketing mix situations would not indicate that an emphasis in personal selling would be appropriate?
a. The channel system is relatively short and direct to the end users.
b. The final price is negotiated between the buyer and seller.
c. The product is complex and requires customer application assistance.
d. The product needs to be "pulled" through the channel of distribution.
e. The selling price or quantity purchased allows an adequate margin to support the selling expenses.
D
An example of one effect of integration of advertising and personal selling would be
a. salespeople cold canvass to find interested prospects, then ask them to watch a videotape advertising their product.
b. an advertisement gives a toll-free number where customers can call to place their order.
c. a commercial on television promises a satisfaction guarantee on their product to potential customers.
d. advertising is used to generate sales leads, which are then turned over to the salesforce to close the sale.
e. qualified customers are located through the company's directories and then called on by the salesforce.
D
According to the text, which of the following is not one of the activities that require the marketing and the sales functions to work closely together?
a. Sales forecasting
b. Target marketing
c. Value proposition development/customer messaging
d. Customer account selection
e. Merchandising
E
Which of the following statements regarding organizational buying situations is true?
a. There are no similarities in the types of buying situations facing different accounts.
b. Buyers facing a new-task buying situation will typically use a lengthy process to collect and evaluate purchase information.
c. Selling organizations can use the same sales strategy for each type of buying situation if they change their sales coverage strategy.
d. In a modified-rebuy buying situation, the buyer has not previously purchased or used the product, but has used similar products.
e. When buyers are merely reordering from the current supplier, they are in an ongoing- project buying situation.
B
Which of the following statements regarding the straight-rebuy buying situation is false?
a. The buyer is merely reordering from the current supplier and engaging in routinized response behavior.
b. The account has considerable experience in using the product.
c. The organization wants to collect additional information and may make a change when purchasing a replacement product.
d. The account is satisfied with the current purchase arrangements.
e. This is the least complex buying situation.
C
The decision-making process in a new task buying situation is often referred to as
a. extensive problem solving.
b. excessive problem solving.
c. routinized response behavior.
d. limited problem solving.
A
The decision-making process in modified rebuy buying situation is often referred to as
a. extensive problem solving.
b. routinized response behavior.
c. minimal problem solving.
d. limited problem solving.
D
The decison-making process in straight rebuy buying situation is often referred to as
a. extensive problem solving.
b. routinized response behavior.
c. rapid response behavior.
d. limited problem solving.
B
Sales strategy should be based on an understanding of all of the following critical elements of organizational buyer behavior except
a. buying needs.
b. buying discrimination.
c. buying process.
d. buying situation.
e. buying center.
B
The concept buying center can be defined as
a. the physical location of the purchasing agent's office.
b. the division that handles the purchasing for the entire company.
c. all individuals from a firm that participate in any selling operation.
d. all individuals from a firm that participate in any particular buying decision.
e. those individuals designated on the organization chart that have the authority to instigate purchases.
D
Roles that buying-center members might play in a particular purchasing decision include all of the following except
a. purchasers.
b. producers.
c. influencers.
d. users.
e. deciders.
B
The buying center member who starts the organizational purchasing process is referred to as the
a. initiator.
b. user.
c. influencer.
d. decider.
e. purchaser.
A
The buying center member who controls the flow of information between buying center members is referred to as the
a. initiator.
b. gatekeeper.
c. influencer.
d. decider.
e. purchaser.
B
The buying center member who provides input for the purchasing decision is referred to as the
a. initiator.
b. gatekeeper.
c. influencer.
d. decider.
e. purchaser.
C
The buying center member who makes the final purchase decision is referred to as the
a. boss.
b. gatekeeper.
c. influencer.
d. decider.
e. purchaser.
D
Which of the following statements regarding a buying center is true?
a. The roles of buying-center members are generally pointed out to the seller ahead of time.
b. Each individual may perform more than one buying center role.
c. The purchasers buying role always includes making the final purchase decision.
d. Each buying role is performed by only one individual at a time.
e. The buying center is always formally designated on the company's organization chart.
B
Which of the following is the first phase in the buying process?
a. Description of the characteristics of the item and the quantity needed.
b. Recognition of problem or need.
c. Description of the characteristics of the item and quantity needed.
d. Search for and qualification of potential sources.
e. Acquisition and analysis of proposals.
B
The individual needs that come into play in an organizational-buying situation tend to be
a. the result of insecurity.
b. related to the use of the product.
c. entirely objective.
d. career related.
e. driven by a need to keep costs within a budget limit.
D
If buying-center members want to reduce purchase risk and protect job security, they might
a. buy the lowest-priced alternative offered.
b. buy the product with the record of fewest breakdowns.
c. buy the product with the lowest operating costs.
d. buy a product that they are told uses state-of-the-art technology.
e. buy the product with the most well known brand name.
E
__ __ and __ __ are typically responsible for strategic decisions at the account level.
a. Salespeople, SBU managers
b. Corporate management, sales managers
c. SBU managers, marketing managers
d. Sales managers, salespeople
e. Salespeople, marketing managers
D
Which of the following is not an example of an organizational need that might be important in a purchase situation?
a. Desire for job security.
b. Control cost in product use situation.
c. Few breakdowns of product.
d. Adequate supply of product.
e. Cost within budget limit.
A
A(n) __________________ strategy is the classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group.
a. relationship
b. account targeting
c. selling
d. sales channel
e. marketing
B
Which of the following is not one of the characteristics of collaborative relationships?
a. focus on selling products
b. provide a customized offering
c. serve a limited number of customers
d. involve a long-term perspective
e. center on adding value
A
Both costs to serve the customer and commitment between buyer and seller are highest with this type of relationship strategy.
a. Solutions Relationship
b. Supplier Relationship
c. Transaction Relationship
d. Collaborative Relationship
e. Partnership Relationship
D
Both costs to serve the customer and commitment between buyer and seller are lowest with this type of relationship strategy.
a. Solutions Relationship
b. Supplier Relationship
c. Transaction Relationship
d. Collaborative Relationship
e. Partnership Relationship
C
A __________ selling strategy is the most appropriate strategy to use with a partnership relationship strategy.
a. problem solving
b. consultative
c. need satisfaction
d. mental states
e. stimulus response
B
A sales channel strategy can be defined as
a. the type of relationship the selling firm desires to develop and maintain with the account.
b. the decision to build either a relationship or transaction marketing type of salesforce.
c. the number of accounts per field representative for a certain area.
d. the methods by which accounts receive selling effort.
e. decisions made by marketing management that determine whether sales will be personal selling or advertising driven.
D
A(n) __________________ is the planned selling approach for each selling strategy.
a. relationship
b. account targeting
c. selling
d. sales channel
e. marketing
C
A(n) __________________ strategy ensures that accounts receive selling effort coverage in an effective and efficient manner.
a. relationship
b. account targeting
c. selling
d. sales channel
e. marketing
D
Which of the following is not a type of sales channel strategy outlined in the text?
a. Internet
b. Distributors
c. Independent representatives
d. Team selling
e. Door-to-door selling
E
Distributors can be characterized as
a. the company's salesforce for industrial products.
b. the end users for a company's product.
c. independent sales organizations that sell complementary, but noncompeting, products from different manufacturers.
d. channel middlemen that take title to the goods that they market to end users.
e. channel middlemen that do not take title to the goods.
D
Which of the following statements relating to distributors is false?
a. They typically employ their own field salesforce.
b. They may carry competing products from different manufacturers.
c. Firms that use distributors normally have a relatively small company salesforce.
d. Distributors should not be treated as customers.
e. They may carry the products of only one manufacturer.
D
Independent representatives can be characterized as
a. the company's salesforce for industrial products.
b. the end users for a company's product.
c. independent sales organizations that sell complementary, but noncompeting, products from different manufacturers.
d. channel middlemen that take title to the goods.
e. channel middlemen that sell only in certain industries.
C
Which of the following is not an advantage of using independent sales representatives over company salesforces?
a. The use of independent reps provides improved cash flow since payments to reps are typically not made until customers have paid for their purchases.
b. The use of independent reps can provide greater territory coverage since companies can employ more reps than company salespeople for the same cost.
c. Companies can usually penetrate new markets faster using reps because of their established customer relationships.
d. Companies can maintain better control over the rep's selling activities than they can over a company salesforce.
e. Independent reps provide a professional selling capability that is difficult to match with company salespeople.
D
The different strategies at different levels of the organization must be consistent and integrated for the firm to perform successfully.
True
The corporate mission statement has a direct effect on sales management activities.
True
One step in the process of developing a corporate strategy is the determination of the corporate mission and objectives.
True
The most successful approach to utilizing the mission statement appears to be when the complete corporate mission statement is simplified and communicated directly to salespeople.
True
The definition of SBUs must be consistent with the strategic orientation of the corporation.
True
An SBU usually has its own sales organization with sales managers and salespeople
True
The recommended compensation system for the SBU objective "build market share" would be a straight salary.
False
If the SBU's objective is to "harvest market share," then its sales organization objectives would be to reduce selling costs and target profitable accounts.
True
If the SBU's objective is to "divest/liquidate market share," then its primary sales tasks would be to dump inventory and eliminate service.
True
The critical task for the marketing strategist is to develop a marketing mix that satisfies the needs of the target market better than competitive offerings.
True
Personal selling is an important element of a marketing communications strategy.
True
The major disadvantage of personal selling is the high cost to reach each member of the audience.
True
Personal selling is typically the preferred marketing communications tool in consumer marketing, while advertising is normally emphasized in industrial marketing situations.
False
Companies using an integrated advertising and personal selling effort might use advertising as a low cost-per-contact way to identify potential customers.
True
One of the keys to integrating marketing communications successfully is greater coordination between the marketing and sales functions
True
Sales strategy is important because it has a major impact on a firm's sales and profit performance.
True
The unique aspects of organizational buyer behavior revolve around the buying situation, buying center, buying process, and buying needs.
True
One task of salespeople is to identify buying-center members and determine the specific role of each member.
True
The members of the buying center are often from different functional areas and desire different benefits from a purchasing agent.
True
Individual buying needs tend to be related to the use of the product.
False
An account targeting strategy is a determination of the type of relationship to be developed with different account groups.
False
A relationship strategy is a determination of the type of relationship to be developed with different account groups.
True
A solutions relationship emphasizes solving customer problems.
True
A selling strategy is the planned selling approach for each relationship strategy.
True
Matching selling strategies and relationship strategies is an important upper-level management task.
False
Sales channel strategy determines the type of relationship to be developed with different account groups.
False
Most companies are replacing their field salesforce with the Internet.
False
Most sales organizations do not integrate the Internet with other sales channels.
False
Companies are using the Internet in a way that meets customer needs and reduces selling costs.
True
The use of distributors adds another member to the distribution channel.
True
Independent representatives are channel middlemen that take title to the goods that they market to end users.
False
Most independent rep agencies are small.
True
Most independent rep agencies have close to 100 salespeople and support staff.
False
At lower sales levels, using a company salesforce will normally be more cost-effective than using a rep organization.
False