Sales Management Final

TRUE OR FALSE: "fellow employees who receive my work are customers," is an example of internal customer mindset

True

salespeople encounter pressure challenging their behavior from:

customer, managers, and outside parties

the use of _______ creates a challenge for managers attempting to keep salespeople fully socialized to the culture of the organization

virtual offices

securing, building, maintaining long-term relationships with profitable customers are the goals of:

relationship selling

TRUE OR FALSE: value can be described as a "give-get" ratio

True

Laws affecting buyer-seller relationships are enacted at the ______ level.

state

glen and forty other students are trying to sell tickets to the university's basketball game. Glen is involved in ______ selling

transactional

the most significant set of laws affecting selling are defined in the:

uniform commercial code

the strategy of "under promise and over deliver" can result in:

customer delight

A key difference between transactional and relationship selling is:

the effort devoted to maintaining the relationship between face-to-face encounters

Objections are a natural part of any sales process. sales representatives can overcome objections by

both a and b

a. developing a trusting relationship with the client over the long run

b. working to negotiate win-win solutions

TRUE OR FLASE: new technology is sometimes resisted by employees

True

Which of the following are goals of CRM?

All of the above

a. To build relationships with customers

b. To focus on attributes of the company that represents value to the customer

c. To build customer loyalty

selling is part of the _____ part of the 4Ps of marketing

promotion

it generally takes ____ calls to close a new account than an existing account

more

because of the high cost of a typical sales call, and the number of calls it takes to close a new account, sales managers emphasize:

all of the choices are correct

a. Use technology where possible

b. Reallocating sales effort to customer retention

c. Eliminating nonessential tasks

a marketing communications mix for a large important purchase will be driven more by

Personal selling

while transactional selling works to reduce _______, relationship selling works to add _______.

Cost; value

to a customer, utility is:

the want-satisfying power of a good or service

TRUE OR FALSE: a company should never fire a customer

False

Michael porter articulated the concept of the ______, identifying ways to create more customer value within a selling form

Value chain

if your boss says, "we need to increase our margins," what is he or she referring to?

Profits

in a study of success factors, the factor rated most important was:

Listening skills

Serena is working to improve her value proposition. she should consider selling:

all of the choices are correct (Product quality, Trust, Brand equity)

TRUE OR FALSE: getting customers to commit to your products in the long run is customer loyalty

True

the moral principles and standards that define right and wrong and guide behavior in the world of business are called:

Business ethics

Ethical practices:

All of the choices are correct (Vary by region, Can vary from country to country, Vary with cultural norms)

in many areas of the world, other than the US, ______ are an accepted business practices

Bribes

when dealing with employees, salespeople encounter ethical concerns in the area of:

All of the choices are correct (Cheating, Misuse of company resources, Inappropriate relations with other employees)

TRUE OR FALSE: ethical norms do not change over time

False

gerry quickly left his new position when he saw how salespeople ignored the company guidelines and mislaid customers. gerrymandering was responding to the company's unethical:

Sales pressure

slander is unfair or untrue

Oral statements

libel is unfair or untrue

Written statements

_______ is somewhat like goodwill on a company's balance sheet

Brand equity

TRUE OR FALSE: a corporate code of ethics defines what a salesperson should do in each potential situation

False

Gaming, a CRM technology, is useful for all of the following reasons except:

Enhance the customer experience by having them play video games

Answers to key CRM questions guide which of the following:

All of the above are CRM guiding principles

a. The evolution of a company;s relationship with customers

b. Creation of a companywide management game plan

c. The selection of solutions with the most appropriate combination and application of supporting technology

which of the following are reasons for employees to resist CRM technology:

All of the above (Previous failed attempts, Lack of training, Desire to keep things status quo)

________ is the customer weighing the costs and benefits of a relationship with a seller, benefits outweigh the costs

Customer value

TRUE OR FALSE: it is perfectly legal to charge a lower price to a customer who buys more

True

Draw the Generic Value Chain

DONE

When developing a relationship with a new customer the focus should be on the relationship between the:

Company and the customer

braden is a highly successful salesman. he always considers where tomorrow's business will come from. Braden incorporates ______ as a continual part of his sales efforts.

Prospecting

Bailey is ready for her next sales presentation. she knows she needs to establish a link between her _____ and the customer's _______

Company products; problems

By definition, negotiation DOES NOT include

Exploitation

TRUE OR FALSE: the success of a sales call depends, in part, upon the salesperson's ability to distinguish the behaviors type of the product

True

Spencer closely monitors the dialogue with his customers, watching for buying signals, and the right time to close the sale. Spencer is engaged in

Active listening

managers design territories so that sales people must______ to reach the territory's full sales potential

Exert maximum effort

Wendell is a well-established salesman. He has numerous repeat buyers and but knows he needs to protect because his current customers:

All of the above

a. Might get into financial trouble

b. Might leave the firm or change positions

c. Might move to a different salesperson’s territory

TRUE OR FALSE: prospecting builds a salesperson's pipeline

True

Brian knows his company's value proposition. His challenges, in a sales presentation, is to:

Make sure the customer understands it clearly

Ryley is trying to get a customer to switch to her company's software. she knows she will have to clearly define her product's ______ so the customer will understand her value proposition

Features, advantages, benefits

One of the most powerful closing tools putting the ball into the prospect's court is:

Silence

TRUE OR FALSE: great sales presentations are the result of spontaneous creativity

False

One of the most constructive tools salespeople can use to build customer relationships is to effectively manage:

Customer time

Addison, the saleswoman in the next office, always seems to have a list of prospects. You ask her how she does it and she explains the best source of leads is from:

Loyal customers

Which of the following is a weakness associated with memorized sales presentation?

All of the choices are correct

a. Discussing aspects of the product that are not important to the customer

b. Limits customer participation

c. Often seems high pressure sales to customers

TRUE OR FALSE: unlike the memorized and formula presentations, the need satisfaction presentation shifts the focus to the customer

True

The best way to address a customer's loyalty to their existing supplier is to

Focus on your product and company

"our shipping department closes at 4PM. I will call them and get the order out by the end of the day is an example a ________ close

assumptive

TRUE OR FALSE: in general, it is better to bluff than to admit you do not know the answer to a customer's question

False

"do you want to charge the purchase or will you be paying cash?" is an example of

alternative choice

"what color do you prefer?" is an example of

minor point

Terrance knows wasting customer's time is not good for relationship selling. Terrance:

All choices are correct
a. Is on time for appointments

b. Deals with customer concerns promptly

c. Maximizes the time he as with customers

TRUE OR FALSE: while a customers concern may seem trivial to you, it is important to the customer

True

Brendan is developing a need satisfaction sales presentation to be used by his sales staff. The key to a successful need satisfaction sales presentation is:

All of the choices are correct
a. The right combination of questions

b. Listening

c. Analysis

Fiona is out of prospects. she needs to ask her customers for:

Referrals

TRUE OR FALSE: in relationship selling, closing is a natural progression of the process.

True

A good first impression does not guarantee a sale, but a bad first impression can:

Lose a sale

Jordan introduces herself to the client and then mentions that the client's brother recommended Jordan speak with him. Jordan is using the ____ sales approach

Referral

Graham, a sales manager, wants to assess sales performance. He will most likely ask questions about:

All of the choices are correct

a. individual sales territories

b. Product sales in each region

c. Why some customers have not re-ordered

Gretta is getting strong signals from the customer early into her sales presentation. Gretta should consider using a ____________ close.

Direct

Ryan is making sales presentation and finds reluctance upon the part of the customer to leave their existing supplier. Ryan knows that negative comments about the other supplier will

almost surely fail

Dakota developed a time management plan but has found the difficult part is

Implementing

TRUE OR FALSE: closing techniques should be customized depending on the buyer and the situation

True

Jorge is a highly qualified worker who is unemployed but looking for work. His expertise is in a small field and new jobs only open up sporadically. While he is waiting for one of those openings he is considered:

Common ground

TRUE OR FALSE: a salesperson's basic sales territory requirements include the number of customers and expected call frequency

True

Chad often has trouble during the price negotiation phase of sales presentation. he needs to remember that value is a function of price and:

Perceived benefits

To do their job sales managers must design effective sales territories and:

Measure sales performances

TRUE OR FALSE: when sales territories are roughly equal, it makes it easier for sales mangers to compare sales performances

True

Karen is in a sales presentation and the customer is not accepting her value proposition. She knows she cannot change the product. She can increase perceived value by changing:

All choices are correct (Financial terms, Customer support, Warranties)

SPIN Selling Approach?

Situation, Problem, Implication, Need Satisfaction

Good salespeople are not necessarily _______ with the inherent abilities to be good.

Born

TRUE or FALSE: If you monitor expenses regularly and your salespeople know that you are checking their reports, it is still necessary to have a written expense policy.

True

A salesperson’s behavior is:

What they do

A salesperson’s performance is:

His or hers contribution to the goals of the organization

A salesperson’s effectiveness is:

A summary index of organizational outcomes for which he or she is at least partially responsible

Perry is shifting the compensation plan for his sales force from straight commissions to a salary and bonus system. Perry know that setting the quota is important and quotas should be:

Specific, measurable, and realistically attainable

In recent years, the trend in sales compensation has been toward:

Combination plans

TRUE or FALSE: When using incentive plans, shorter intervals between performance and rewards increase the motivating power of the plan

True

When expanding to global markets, companies must consider:

All of the above
a. Whether to customize products to the regional needs to produce a standardized product
b. The pricing strategy
c. The marketing message

TRUE or FALSE: Countries that are similar in geography, such as France and Germany, develop the same culture

False