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Marketing Ch.'s 12 and 19

For many professionals offering intangible services, an ethical marketing dilemma exists. The dilemma centers on

how to balance the need to gain clients while retaining an image of professionalism and integrity

Standards Gap

When the management or owners of a service establishment have a different idea than the customers do about the expectations and service standards,

Delivery Gap

Occurs when a service offered is not met as advertised by the staff or company

Assurance (one of 5 service quality dimensions)

a positive declaration intended to give confidence

Tangibles (one of 5 service quality dimensions)

the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service

Responsiveness (one of 5 service quality dimensions)

state of reacting readily to appeals, orders, etc.

Important service quality dimension

Talking directly with customers

When confronted with an angry and emotional customer, the best first step toward service recovery is to

listen carefully and with empathy until the customer feels he or she has been heard


any intangible offering that involves a deed, performance, or effort that cannot be physically possessed

Services account for

An increasing share of jobs ex. U. S.

Household maintenance activities

Food preparation, lawn maintenance, and house cleaning services

Services an aging population will increase demand for:

Medical services, assisted living care, and active senior travel

Market research

provides a means to better understand consumers' service expectations and their perceptions of service quality

Systematic Voice-of-customer program:

collects customer inputs and integrates them into managerial decisions

Service Standards

Training service providers to know exactly what a "good job" entails

"Service with a smile"

Service needs to be pleasant even if the customer is not

Effective service recovery entails all of the following EXCEPT

Estimating the damage

Personal selling can take place in all of the following situations EXCEPT

Through the newspaper

Taylor loves the lifestyle associated with being a salesperson. She particularly values the _________________ associated with creating her own schedule


Judson likes analyzing problems, and prefers a structured work environment with a secure income stream. Judson should pursue a career in:

Something other than sales

Advantage of Personal Selling over other types of Marketing Communications

salespeople can customize their message for a specific buyer

Another advantage of personal selling over other types of marketing communications

It can be directed toward those customers with the highest potential

Disadvantage of personal selling

It is expensive

Construct Customer Database

First action taken when attempting to create stronger customer relationships

Customer Relationship Management System

Information about customers' preferences, past-purchases, contact information, and biographical data

Rodney was a very effective sales representative who combined the technology inherent in his CRM system with a high-touch approach where he _________________

Frequently called clients and prospects to share news with them while not always trying to sell something

As marketing manager for a start-up business software company, Katrina is deciding whether to hire a company sales force. The bottom line influencing Katrina's decision will be:

Is a sales force worth more than it costs

Sales Force

the division of a business that is responsible for selling products or services

Personal selling adds value to customers by all of the following EXCEPT

Reducing marketing costs to the seller

Consumers often ask workers in supermarkets where something is located only to learn the worker is a vendor stacking and straightening their company's products on the store shelves. These manufacturers' sales representatives benefit retailers by _________________

Saving them time and money

Whether or not a salesperson will go through all five steps of the selling process depends on the sales situation and:

The buyers' readiness to purchase

When Patrick begins the selling process for new customers who are not familiar with his company's commercial coffee service, he assumes he will need to:

Go through all 5 steps of the selling process

Which of the following would NOT be appropriate in the Personal Selling Process?

Closing the sale is the final- and most satisfying- part of the process

Bridgette went to The Gap ready to buy a new blouse, but not sure which color or style she wanted. The sales representative, sensing Bridgette's buying mode, began with the _________________ stage of the selling process.

Sales Presentation

Sales Presentation

a formal meeting in which the salesperson presents a sales proposal to a prospective buyer

Monica works as a salesperson in a retail clothing store. Of the five stages in the selling process, Monica is least likely to engage in

Generate and Qualify Leads

Veronica took over the sales territory managed by a very successful salesperson. Veronica should use __________________ as a first source of leads

Current Customers

Galena is a new agent for a financial services company. She decides to join the local chamber of commerce, association of business women, and United Way organization. Galena is attempting to use _______________ to generate leads



A way of making and using contacts to get job information and advice

Trade shows are a particularly good source of B2B sales leads because

people who attend are interested in the products and services being offered


business-to-business e-commerce; most widely used applications: e-banking, stock trading

When realtors meet with new customers, they frequently offer to estimate how much mortgage lenders will be willing to lend the customer. In the process, realtors assess buyers'

Ability to purchase houses in different price ranges

One of the reasons why B2B salespeople spend considerable time qualifying potential customers is:

the cost of preparing and making a presentation to most business customers

Preapproach Stage

The stage that occurs prior to meeting the customer for the first time and extends the qualification of leads procedure

Before approaching a potentially major B2B customer, a salesperson will likely

try to find out everything possible about the customer and their needs

During the preapproach stage, a salesperson usually conducts additional research about prospects and:

Develops plans for meeting with the customer

Kathleen has found out everything she can about the new qualified leads. She has practiced making her presentation to the customers and determined what goals she has for the first meeting. Kathleen has finished the ________________ stage of the selling process


Boris tells a colleague all about a major prospect Boris plans to call on in the next few days and asks the colleague to pretend to be a customer while he makes his sales presentation. Boris and his colleague are engaged in:

Role Playing

The First Goal of a Sales Presentation:

Create Interest

The beginning of the sales presentation may be the most important part of the selling process, because this is where the salesperson establishes:

Where the customer is in the buying process

Naren knows he needs to ask a series of questions early in his sales presentation, but he also knows he:

Needs to listen carefully to answers

Often, inexperienced salespeople mistakenly believe that during the sales call, they should:

Do all the talking

Asking questions and listening closely to customers' replies, allows salespeople to:

Create value by solving problems or addressing specific needs

Kyle is preparing for an important sales presentation. He knows that customers are more likely to _______________________ during his presentation than during other stages of the selling process

Raise Objections

Evelyn knows prospective customers are likely to raise reservations about price and quality. She knows she needs to convince customers that her products represent:

A good value

Often the best way to handle customers' reservations is to relax, listen, and:

Ask questions to clarify any reservations

Mary Ann is a commission advertising sales representative. She knows that if she does not successfully _____________, she will go away empty handed.

Close the sale

For salespeople working on straight commissions, closing the sale can be an extremely stressful point in the selling process because, if they do not close the sale:

They generate no income

For salespeople who practice ____________________, an unsuccessful close one day may lay the groundwork for a successful close during the next meeting.

Relationship Selling

The ______________ stage of the selling process offers a prime opportunity for salespeople to solidify customer relationships through great service quality.

Follow Up

Follow Up Stage

Sales-People Reestablishing Connections

For salespeople, ________________ provide a major contact point with customers in the follow-up stage of the selling process, and an opportunity to build and improve relationships.


PDAs, cell phones and the Internet give salespeople the ability to ___________________ at almost any time or place.

Reach out, gather information, advertise, ect.

Willy is an old-school salesman. He keeps all his information about customers, competitors, and products in his personal selling diary. Willy's reluctance to use sales support technology could hurt:

His credibility, effectiveness, ect.

Internet technology allows customers to directly order and check order status online, allowing salespeople to:

Focus more time on creative and technical aspects of their jobs

While the Internet offers new options and opportunities, in the end electronic communication between a retailer and a customer must be effective and ________________.

Add value to the Shopping Experience

Sales representatives are often compensated, at least in part, on a percentage of the sales revenue. This percentage is known as a _______________________.


While ethical and legal issues are associated with all aspects of marketing, personal selling presents unique issues because:

Sales people interact directly with customers

Federal equal employment opportunity laws make it unlawful for sales managers to discriminate against a person in either hiring or promotion because of any of the following EXCEPT:


Sales Management:

Involves the planning, direction and control of personal selling activities, including recruitment, selection, training, motivation, compensation and evaluation of members of the sales force.

Most beverage distributors have their delivery people act as the firm's sales representatives. The delivery people primarily function as:

Order takers

Sue spent much of her time checking inventories, processing straight rebuys, setting up displays and making sure everything is going smoothly. Sue was primarily a(n) _________________.

Order Taker

By a margin of seven to one in a survey of sales and marketing executives, respondents believe:

Training and Supervision are most important determinants of selling success.

Which of the following is NOT considered as one of the significant financial rewards for sales representatives?

Days off of work

Sales, profits, orders and ratios are all _____________ measures that can be used to evaluate sales representatives.


Salespeople should be evaluated and rewarded for those activities and outcomes that:

Fall under their control

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