D099 Sales Management

The sales team of a reputable appliance retailer reaches out to their current customers two weeks after a purchase to ensure their products have met their customers' expectations and to determine if they have any other needs or wants.

How do the actions of the appliance retailer exemplify the primary role of sales in a business?

They are creating a customer base by building a relationship with their customers.

3 multiple choice options

A national restaurant chain is having financial trouble and wants to cut costs by eliminating underperforming restaurants. Store managers were tasked with reviewing their sales reports from the last quarter to help the executive team make an informed decision about which restaurants to close.

What should the executive team use in the decision-making process?

Business intelligence (BI)

3 multiple choice options

What is the relationship between sales and marketing?

Marketing attracts prospective customers to the business while sales attempt to convert these prospects into paying customers.

How does personal selling offer an advantage over other forms of promotion?

Personal selling provides a detailed sales message that is adapted to the interests of each customer.

What is the main limitation of the AIDA model?

The model assumes consumers are passive and marketers are active during most of the buying process.

What is transactional selling?

A sales strategy that initially identifies potential customers, offers the product, and attempts to quickly close the deal

What is adaptive selling?

A sales approach that focuses on tailoring the selling style to the customer's behavior

What is customer lifetime value (CLV)?

The present value of all potential business from the same customer throughout the span of that customer's relationship with the company

What is an intermediary?

People or businesses that connect buyers and sellers together as a conduit for goods or services in the supply chain

A food distributor is analyzing data from their CRM to understand the status of their accounts. They are specifically looking for those customers who consistently make purchases with the company so they can offer promotional items to retain those clients.

Which type of accounts is the food distributor specifically trying to identify?

Active accounts

What is the purpose of key account management (KAM)?

To focus efforts on building and sustaining long-term, jointly beneficial relationships with major accounts

A sales manager for a major packaging distributor works with the sales team to generate company growth and increase revenue by looking for opportunities with current clients and seeking out potential clients.

Which type of activity is this sales manager performing?

Business development

A global cell phone producer sets a target to sell one million new phone models by the end of the second quarter. They send this figure to regional sales managers who in turn guide the sales teams in meeting this target.

What is this target set by the company called?

Sales quota

What is the difference between power skills and hard skills?

Power skills are personal attributes that help people effectively interact with others. Hard skills are abilities that are easily measurable.

A salesperson was just given a new account to service. She decides that before going to meet the client, she will research the client's website, find out information about the company contact on social media, and look at CRM data to see what the client activity has been in the last few months.

What essential skill is this salesperson utilizing?

Research

A sales manager for a national insurance company is faced with unexpected changes in the market and must manage his team in meeting sales goals as these changes arise. To do this, he sets up ongoing training sessions to improve the sales team's knowledge of the market.

What type of managing skill is this sales manager utilizing?

Coaching

A sales manager for a clothing distributor notices that one sales region is not doing as well as the others. She develops a roadmap to better distribute the sales team and direct the sales efforts in the underperforming region.

What process is the sales manager using?

Strategic plan development

A software salesperson is meeting with a client to demonstrate new features of their application and answer questions as to why it brings value to the client's company. The salesperson also takes the opportunity to discuss with the client why this software is better than the competitor's version and how it provides the solutions the client needs.

What two sequential steps of the sales process is this salesperson applying?

Presenting and handling objections

How has the use of the internet and social media changed the selling process?

The internet and social media ensure that each step now includes increased collaboration between buyers and sellers.

At which stage of the sales funnel does the sales team focus on converting prospects into paying customers?

BOFU

bottom of the sales funnel (BOFU)

A consumer is looking to buy a new house. He has chosen the neighborhood, price point, and type of house he is looking for. He has even been pre-approved for the loan. He contacts a real estate agent and asks to see houses that match his requirements.

At which stage is this consumer on the buyer's journey?

Desire

What are the 4Ps of Marketing mix?

Price, Place, Product, Promotion

What are the 4 stages of the product lifecycle?

introduction, growth, maturity, decline

T or F: Sales are slow and profits are low during the introductory phase.

True

Dina's PetMart has started offering free delivery to customers within a five mile radius of the physical store. What part of the marketing mix does this strategy represent?

Place

Taco Bell creates a value meal, bundling tacos, chips and salsa, and a drink into a menu offering, for a special price. Which controllable marketing mix element is Taco Bell utilizing to appeal to its target market?

Product

Price

Promotion

Place

Product, Price

Cassandra's Halloween Emporium has established an e-commerce website, and has started advertising on social media to drive traffic to the website. Which marketing mix elements are represented in these strategies?

Place, Promotion

The sales team of a reputable appliance retailer reaches out to their current customers two weeks after a purchase to ensure their products have met their customers' expectations and to determine if they have any other needs or wants. How do the actions of the appliance retailer exemplify the primary role of sales in a business?

They are creating a customer base by building a relationship with their customers.

The combination of advertising, personal selling, sale promotion, and public relations used to promote a product..

Promotional mix

What does AIDA stand for?

Attention, Interest, Desire, Action

What is a sales funnel?

Leads, Suspects, Prospects, Customer

A department store is launching a new clothing brand. The brand sends a representative to help the store set up an area to display the latest apparel. Which type of salesperson is the representative from the brand?

Trade

A food distributor is analyzing data from their CRM to understand the status of their accounts. They are specifically looking for those customers who consistently make purchases with the company so they can offer promotional items to retain those clients. Which type of accounts is the food distributor specifically trying to identify?

Active accounts

What is the purpose of key account management (KAM)?

To focus efforts on building and sustaining long-term, jointly beneficial relationships with major accounts

A sales manager for a major packaging distributor works with the sales team to generate company growth and increase revenue by looking for opportunities with current clients and seeking out potential clients.

Business development

A salesperson was just given a new account to service. She decides that before going to meet the client, she will research the client's website, find out information about the company contact on social media, and look at CRM data to see what the client activity has been in the last few months. What essential skill is this salesperson utilizing?

Research

A sales manager for a national insurance company is faced with unexpected changes in the market and must manage his team in meeting sales goals as these changes arise. To do this, he sets up ongoing training sessions to improve the sales team's knowledge of the market. What type of managing skill is this sales manager utilizing?

Coaching

A sales manager for a clothing distributor notices that one sales region is not doing as well as the others. She develops a roadmap to better distribute the sales team and direct the sales efforts in the underperforming region. What process is the sales manager using?

Strategic plan development

Which two areas of the sales funnel are considered TOFU?

Leads and suspects

Which two areas of the sales funnel are considered MOFU?

Suspects and prospects

Which tow areas of the sales funnel are considered BOFU?

Prospects and customers

Name the sales funnel in order.

Leads, Suspects, Prospects, Customers

At which stage of the sales funnel does the sales team focus on converting prospects into paying customers?

BOFU

MOFU

ABM

AIDA

BOFU

A consumer is looking to buy a new house. He has chosen the neighborhood, price point, and type of house he is looking for. He has even been pre-approved for the loan. He contacts a real estate agent and asks to see houses that match his requirements. At which stage is this consumer on the buyer's journey?

Desire

Which type of account is the community college where Maya works?

Passive (there is an ongoing relationship with the publisher, but does not make recurring orders)

A salesperson is demonstrating a product and explains how the item will add value to the customer's manufacturing operations. The difference between the price the customer will pay and the improvement in manufacturing will result in a threefold increase in production efficiency. Which concept is the salesperson describing to the customer?

Return on investment

The chief financial officer (CFO) for a Fortune 500 company requests company data for the past five years. The CFO uses business intelligence to develop a number of reports to determine areas where the company can cut costs and to determine departmental budget allocations for the coming year. Which aspect of business intelligence is being used during this process?

Decision-making

A consumer sees an ad for a new product on the internet and does some research to learn more about the product. Which stage of the buyer's journey is illustrated by this action?

Interest

A car salesperson uses an inbound marketing campaign to send a customized communication to each lead that has visited the showroom in the last 90 days. What is the primary goal of this inbound marketing campaign?

To increase chance of selling

A sales manager is categorizing existing clients by recency, frequency, and monetary value. Which process is the sales manager using?

Account management

A sales manager wants to motivate the sales team to provide value to clients in order to achieve sales goals. Which activity should a sales manager use?

Coach techniques for handling objections

What is the order of steps in the sales process?

Prospecting, approaching customers, demonstrating product, handling objections, closing sale, following up

A local company has exclusive rights to make a nationally known soft drink and put it into grocery stores for sale in the local area. The company's agreement with the soft drink's headquarters precludes it from making or selling any rival brands of soft drink. Which type of intermediary role is the local company performing in this distribution channel?

Distributor

The person who makes the final purchasing decision.

Decision Maker

This individual typically works in the IT department and influences the buying decision at the execution level.

Economic Buyer

User Buyer

Infrastructure Buyer

Infrastructure Buyer

This individual purchases products from other companies that can help the organization to achieve a business advantage.

Economic Buyer

This individual decides whether the organization will achieve its financial objectives through the purchase.

User Buyer

These are the people and groups within the organization who actually use the product.

Users

These are the people within the organization who first see the need for the product; they start the process.

Initiators

People who may or may not use the product but have experience or expertise that can help improve the buying decision.

Influencers

The people who sign the contract. They differ from the decision maker in that they are focused on the financial aspects of the purchase and how the purchase can positively impact organizational metrics.

Buyer

An individual who has specifications in mind for products and how they should perform for the organization.

User

What is the third stage of the business-to-business (B2B) buying process?

Search for suppliers

What are the three types of customers in B2B markets?

Producer, Reseller, Orgaization

Companies that buy products to make or build a product or service to sell for a profit. This describes which customer type in B2B?

Producer (ex. Reebok)

Companies that purchase finished goods to sell, lease, or rent to B2B or B2C purchasers.

reseller (ex. Footlocker reselling Reebok)

What is the term when companies sell to local, state, and federal governments?

B2G, Business -to-government

How should a company maintain compliance when doing business with government entities?

Adhere to labor standard statutes

A _____ is a situation in which a purchaser buys the same product in the same quantities from the same vendor, nothing changes.

Straight Rebuy

A ____ situation occurs when a firm purchases a product for the first time. These are the most time-consuming for both the purchasing firm and the firms selling to them

new task purchase

A _____ occurs when a company wants to buy the same type of product it has in the past but makes some changes to it. Maybe the buyer wants different quantities, packaging, or delivery, or the productis customized slightly differently.

modified rebuy

What are the strategies, priorities, and performance metrics that influence business-to-business (B2B) transactions?

Organizational factors

What kind of strategic partnership includes a formal agreement between companies to share resources?

Alliance agreement

A mobile phone manufacturer recently purchased a new operating system that is openly sourced by volunteer coders. The manufacturer decides to survey users of the new operating system to determine whether the operating system is working properly. Which organizational buying decision stage is reflected in this scenario?

Performance review

A computer retailer purchases laptops without software and installs custom programs on the laptops for commercial customers. Which type of customer does this company represent?

Value-added reseller of products

Two companies have decided to combine their efforts in a promotional campaign to increase each individual company's brand influence and sales. Which strategic relationship is being sought by these two companies?

Strategic alliance

Two marketing agencies represent clients in different industries. The agencies have decided to share resources to increase each company's competitive advantage. Which strategic relationship was sought by these two companies?

Alliance agreement

An airline and a bed-and-breakfast network create an agreement to increase travel and tourism to the West Coast of the United States. Which type of relationship is described in this agreement?

Strategic partnership

Which part of the customer relationship management (CRM) process involves gathering insight about why a customer purchases a specific product?

Knowledge discovery

Integrated CRM systems have instruments for collecting, analyzing, and making sense of customers' and prospects' information, so an organization can gather ideas to enhance its services and offerings.

Data accessibility

A CRM system increases a favorable customer experience and improves communication through tracking the connection of an organization with

Customer focus

A CRM system can improve workflows and communication between teams and employees, defining roles and responsibilities in an organization.

Enhanced accountability

A CRM system organizes information, records, and reports and automates, streamlines, and monitors workflows and activities quickly. CRM systems are also intended to integrate with a broad range of company and office platforms in order to provide superior flexibility

Improved efficiency

Why does an organization use key performance indicators (KPIs) in customer relationship management?

To assess success in dealing with customers

Which business practice does relationship marketing focus on?

Emphasizing customer retention and satisfaction

Which business practice is essential to creating one-to-one marketing?

Creating a marketing database with customer information

A week after he brings his bike home, Freedom Rock emails Daniel a survey asking about his experience, which he answers. A year later, he is sent an automated email reminder for an upcoming tune-up. However, unlike other customers, Daniel does not receive an email about a sale on new bikes, because he indicated in the survey that his bike is only one year old. How is Freedom Rock Bicycles demonstrating customer relationship management (CRM) when it sends Daniel a welcome brochure in the mail?

Customer acquisition

Which benefit of the customer relationship management (CRM) process is illustrated by the automated nature of the email that Freedom Rock Bicycles sends to Daniel?

Improved efficiency

Which segmentation practice does Freedom Rock Bicycles follow when it does not alert Daniel of its bicycle sale?

Behavioral segmentation

Country, state, zip code

geographic

Age, gender, race, ethnicity, education, and income.

demographic

Country of origin, language, religion, dietary preferences, family structure, and social roles.

cultural

Values, opinions, attitudes, and lifestyle.

psychographic

Customer usage of product, desired benefits, how they shop or pay, their loyalty status.

behavioral

Answers "What happened?"

descriptive analytics

Answers "How can we make it happen?"

prescriptive analytics

Answers "Why did it happen?"

diagnostic analytics

Answers "What will happen?"

predictive analytics

Which type of data is used for market segmentation?

The demographics of a company's customer base

The sales department is informed that there will be delays with merchandise deliveries for the next month due to a change in the company's delivery carrier. The sales manager takes this into account as she forecasts performance for the next month. Which factor does the delivery delay represent for the sales forecast?

Planning issue