74 terms

Marketing Exam 1

T or F Information technology aids salespeople in creating and maintaining relationships with customers.
T or F Today we use the computer more for data crunching and less for connecting.
T or F Value-added selling can be defined as a series of creative improvements within the sales process that enhance the customer experience.
T or F Business firms vary in terms of how strongly they support the marketing concept.
T or F One of the earliest formal statements indicating corporate interest in the marketing concept came from a General Electric Executive in the 1950s.
T or F When measured by either the number of people employed or expenses as a percentage of sales, personal selling is often the major promotional method used by American businesses.
T or F Consultative-style selling practices have become popular because they can be easily mastered.
T or F A "strategy" can be best described as a collection of techniques, practices, or methods you use when you are face to face with a customer.
T or F Consultative-style selling, which emerged in the late 1960s and early 1970s, is an extension of the marketing concept.
T or F The four major strategies that form the strategic consultative selling model are independent of one another.
T or F Typical salespeople spend about 30 percent of their time in actual face-to-face selling situations.
T or F The presentation strategy includes a reminder that outstanding service should be the overriding theme of every sales presentation.
T or F A major reason for the demise of the product solution is the growing number of look-alike products.
T or F The partnering concept, as an enhancement of personal selling, became very popular in the 1970s.
T or F The goal of strategic alliances is to achieve a marketplace advantage by teaming up with another company whose products fit well with your own.
The term product should be broadly interpreted to encompass:
A) information, services, ideas, and issues
B) information and items
C) tangible items and issues
D) all tangible items
E) all intangible items
The development of a personal selling philosophy involves all of the following EXCEPT:
A) a full acceptance of the marketing concept
B) a full appreciation of the tenets of the free enterprise system
C) developing an appreciation for the expanding role of personal selling in our competitive national and international markets
D) assuming the role of a problem-solver in helping customers make complex buying decisions
E) assuming the role of a partner in helping customers make complex buying decisions
A major development that has helped the information economy is:
A) new demands for improved customer service
B) recognition that customers want more information
C) major advances in information technology
D) the need for more strategic alliances
E) diversification of products
Which of the following statements accurately describes value-added selling?
A) The value added by salespeople today is increasingly derived from tangibles.
B) The value added by salespeople today is increasingly derived from intangibles.
C) Value-added selling surfaced during the evolution of strategic selling.
D) Value-added selling would not be an appropriate strategy in international markets.
E) Value-added selling is only appropriate for services, not products.
The ultimate goal of the "marketing concept" is:
A) product diversification
B) customer satisfaction
C) brand loyalty
D) rising profit margins
E) efficiency of production
Which of the following statements would NOT be an application of the marketing concept?
A) Let's speed up production and get these products to customers faster by eliminating the field test.
B) Let's show these product designs to some prospective buyers for their reactions.
C) Let's examine our points of distribution to see if we're reaching the market effectively.
D) Let's do some research to see which colors the consumers prefer.
E) Let's ask customers which products they used most heavily.
When UPS was first established, founder Jim Casey described the firm's focus as follows:
A) To become a leader in international shipping
B) To become the world's most profitable company
C) To render perfect service to our stores and their customers
D) To become the world's most efficient shipping company
E) To become the fastest shipper in the world
All of the following are elements of the marketing mix EXCEPT:
A) personnel
B) product
C) promotion
D) place
E) price
The promotion element of a marketing program can be subdivided into the areas of:
A) sales, promotion, and advertising
B) market research, personnel, and product publicity
C) product research, product design, product production, and product publicity
D) public relations, place, personal selling, and personnel
E) sales promotion, public relations, personal selling, and advertising
In a market characterized by vigorous competition, look-alike products and customer loyalty that depends on quality relationships as well as quality products, the salesperson should fully utilize the:
A) product strategy
B) customer strategy
C) presentation strategy
D) relationship strategy
E) marketing strategy
) A well-thought-out plan for establishing, building, and maintaining quality relationships is a:
A) relationship strategy
B) customer strategy
C) product strategy
D) presentation strategy
E) personal selling philosophy
Sharon Wiley is a sales representative employed by a leading producer of pharmaceuticals used in veterinary medicine. Recently she attended a university-sponsored seminar that focused on new research findings in selected areas of veterinary medicine. Ms. Wiley is attempting to develop a:
A) relationship strategy
B) customer strategy
C) service strategy
D) presentation strategy
E) product strategy
All of the following are broad strategic areas of the Strategic/Consultative Selling Model EXCEPT:
A) relationship strategy
B) product strategy
C) customer strategy
D) service strategy
E) presentation strategy
Eric Villa obtained a license to sell real estate and then accepted a sales position with a local Century 21 agency. To prepare for this new position, he purchased and read a research report entitled "Buying Habits of Today's Home Buyers." Mr. Villa is attempting to develop a:
A) presentation strategy
B) product strategy
C) customer strategy
D) relationship strategy
E) price strategy
The four broad strategic areas of the Strategic/Consultative Selling Model are:
A) connected to each other
B) in conflict with each other
C) independent of each other
D) not independent of each other
E) identical to each other
Preparing objectives for the sales presentation and a plan to reach those objectives is the:
A) product strategy
B) customer strategy
C) presentation strategy
D) relationship strategy
E) marketing strategy
The customer strategy always takes into consideration:
A) maintaining a close partnership
B) what the customer needs
C) the profit margins of the product
D) the relationship between the selling partners
E) the company's sales quotas
When a marketer decides to adopt partnering, emphasis will be placed on:
A) selling strategies
B) product development
C) selling tactics
D) the customer
E) the salesperson
The evolution of strategic selling can be traced to:
A) a need to use fewer salespeople to sell more products
B) the growing demand for less expensive products
C) the need for salespeople to master sales force automation practices
D) new levels of competition
E) several trends that resulted in a more complex selling environment
Customers want quality products and:
A) quality relationships
B) low prices
C) free shipping
D) custom installation
E) little contact
The highest form of partnering is the:
A) marketing alliance
B) value-added alliance
C) partnering alliance
D) customer partnership alliance
E) strategic selling alliance
A partnership is beneficial for both parties because the successive sales are:
A) equal to the initial sales
B) greater than the initial or repeat sales
C) not necessarily guaranteed
D) a function of the price of the product
E) transactional in nature
Account managers from Campbell's help add value for their culinary customers by:
A) giving them cheaper prices
B) selling more products than the competition
C) helping them improve their menus
D) providing various payment options
E) expediting shipments
Achieving a marketplace advantage by teaming up with another company whose products or services fit well with your own is referred to as a:
A) marketing strategy
B) customer strategy alliance
C) sales strategy
D) strategic selling alliance
E) successive sales alliance
For a strategic alliance to be successful, the first step is for a company to:
A) enlist legal assistance to make sure its interests are protected
B) talk to the customer to discover what its needs are
C) assemble a team of product experts
D) define the ethical guidelines that will apply to the alliance
E) find out as much about the proposed partner as possible
Maintaining high ethical standards:
A) can strengthen your relationship with a customer
B) should be secondary to closing a sale
C) is rare in the world of sales
D) will lead to lost revenue for a company
E) often puts you in conflict with your customers
CRM software is used to hold information about all of the following EXCEPT:
A) customers
B) competitors
C) prospects
D) coworkers
E) suppliers
The process of building and maintaining strong customer relationships by providing customer value is called:
A) marketing concept
B) value-added selling
C) customer relationship management
D) personal sales philosophy
E) customer strategy
The effective exchange of information is the foundation of most economic transactions. This is known as:
A) exchange theory
B) personal selling
C) the value-added economy
D) the information economy
E) the post-consumer economy
All of the following are steps to creating and delivering the customer value model EXCEPT:
A) understanding the customer's value needs
B) creating the value proposition
C) communicating the value proposition
D) delivering the value proposition
E) presenting the value proposition
________ selling can be defined as a series of creative improvements within the sales process that enhance the customer experience.
Peter Drucker stated that "the ________ defines the business."
evolved because of broader and more diverse product lines, demand for specific customized solutions, and more competition.
Strategic selling
A ________ ________ is a well thought-out plan for establishing, building and maintaining quality selling relationships.
relationship strategy
A ________ ________ is a carefully conceived plan that will result in maximum responsiveness to customers.
customer strategy
List the three prescriptions for developing a personal selling philosophy.
Adopt marketing concept, value personal selling, and assume role of problem solver.
List and describe the five strategic steps of the Strategic Consultative Selling Model.
1. Developing a personal selling philosophy. This involves adopting the marketing concept, valuing personal selling, and assuming the role of problem-solver.
2. Developing a relationship strategy. Success in selling depends heavily on the salesperson's ability to develop, manage, and enhance interpersonal relations with the customer.
3. Developing a product strategy. Products and services represent the problem-solving tools available to salespeople.
4. Developing a customer strategy. Sales and marketing efforts must be organized around the needs and desires of the customer.
5. Developing a presentation strategy. The presentation is a critical part of the selling process because it is at this point that the salesperson determines whether the customer has a need for the product.
Knowledge workers are people who succeed by adding value to information. T or F
T or F A Business Development Manager is in the sales department.
T or F The highest compensation for salespeople generally goes to those focusing on transactional sales.
Examples of service industries include convention centers, banking, and advertising. T or F
The growth rate for service companies continues to be much higher than the growth rate for companies that are product-led. T or F
A sales representative for Dell who is selling a new form of sophisticated routing-to-server software would probably be classified as a sales engineer. T or F
Born salespeople have an advantage over people who learn selling skills through training. T or F
Which one of the following people would NOT be considered a "knowledge worker"?
A) someone who performs research to discover new information
B) someone who takes current research and uses it to facilitate a task
C) someone who relays information from one party to another without changing it
D) someone who puts information in a format that allows others to access it
E) someone who uses information to solve a problem
Salespeople are considered knowledge workers because:
A) they position and lay out information in a way that helps buyers understand it
B) they gain knowledge of the product before they can sell it
C) they repeat a script that they are given by their managers
D) they develop understanding of the best practices of sales
E) they create products themselves before they can sell them
The CEO of SwiftLink spends one week each month going to sales appointments with various salespeople in the company. In addition to assisting the salespeople with presentations, a likely reason the CEO goes on sales calls is:
A) to gather information on customer needs and preferences
B) to deduct mileage on his vehicle as a way to offset taxes
C) to undercut the salespeople in underperforming divisions of SwiftLink
D) to ensure that the salespeople do not give volume discount pricing
E) to trade information to customers in exchange for information on competitors
Some top-performing salespeople earn more than their managers. This compensation is made up of:
A) bonuses only
B) base salary, commissions, and bonuses
C) commissions and charge-backs
D) bonuses and dividends
E) IPOs and base salary
On average, an experienced, high performing salesperson will find the highest compensation opportunities with which approach?
A) feature/benefit
B) transactional
C) value-added
D) solution
E) directed
Psychic income in selling refers to which one of the following?
A) the visibility provided by working in the sales department
B) the satisfaction of being on a commission payment plan
C) the high commissions earned because of successful "intuitive" selling
D) the opportunity to be a member of the sales team
E) the job recognition afforded sales personnel
There is a pay gap between men and women in the field of sales, with men earning more than women do. Despite this, sales represents an excellent financial opportunity for women for which of the following reasons?
A) The pay gap in sales is less than the pay gap in the workforce overall.
B) The pay gap varies from company to company.
C) The pay gap is only an issue in certain industries.
D) The psychic income from sales is equivalent to the value of the pay gap.
E) The psychic income from sales cannot be quantified.
The duties of inside salespeople may overlap heavily with the duties of all of the following job positions EXCEPT:
A) outside salespeople
B) account managers
C) technical support personnel
D) customer service representatives
E) internal auditors
Sales opportunities in the service sector are expanding because:
A) service providers connect directly with consumers
B) the service industry has a higher growth rate than the product industry does
C) modern consumers need help with activities that they used to be able to do on their own
D) the service industry is starting to saturate the market relative to the industrial and product industries
E) the service industry provides a higher commission rate for salespeople than the other industries also
What event contributed most to the increased need for telecommunications salespeople?
A) deregulation of telephone service
B) anti-trust suits brought against the telecommunications industry
C) financial improprieties in the telecommunications industry discovered by internal auditor
D) creation of a national regulatory committee for telephone service
E) development of voice-over-IP (VOIP) technologies
Sales engineers are people with extensive knowledge of their product who also:
A) provide service on the product after the sale
B) develop the product as part of the research and development team
C) communicate the benefits of the product to the customers
D) have advanced degrees in science or technology
E) have graduate-level sales training
All of the following describe a category of sales personnel in the field of manufacturing EXCEPT:
A) sales engineer
B) field salesperson
C) detail salesperson
D) technical support representative
E) customer service representative
Salespeople in the U.S. report that they work in sales primarily to:
A) be promoted to management
B) avoid working traditional hours
C) have greater flexibility with retirement
D) make more money
E) generate pension credits
Terri Milano, employed by a manufacturer of home electronics, offers assistance to retailers in such areas as credit policies, pricing display and store layout. She also collects information regarding acceptance of her firm's products. She is performing the duties of a(n):
A) detail salesperson
B) retail salesperson
C) inside salesperson
D) field representative
E) manufacturer's representative
Corporate-sponsored sales training can include all of the following EXCEPT:
A) training on CRM software
B) training in accounting methods and theory
C) training delivered on the Internet
D) training that takes months to complete
E) training that is cost-intensive