MRKT 257 Chapter 9 ( Exam 2)

During her presentation to a prospective customer, Lea informed him about the new wallboard's superiority. She also brought a sample so that the building contractor could see and feel the superiority of the product she was selling. Lea used a ___ to improve the buyer's understanding of her product.

multiple-sense appeal

Which of the following statements about a buyer's attention and understanding is FALSE?

to strengthen impact, appeals should focus on only one of a prospect's five senses

In which of the following instances is the salesperson using the multiple-sense appeals approach?

Norah uses a video to demonstrate the manner in which her company manufactures hospital goods that meet all quality control standards.

Which of the following recommendations should be followed by salespeople when using stories in a sales presentation?

all of the above (stories)

Which of the following statements about the use of humor in sales presentation is true?

salespeople should not apologize before telling a joke

Which of the following statements about the use of humor in sales presentations is true?

laughing over a good joke will help build rapport and put everyone at ease

Charts are particularly useful when:

communicating large amounts of information

For her sales presentation, Myra wants to design a chart which shows how much faster wounds would heal when protected with SoloSite, a water-based ointment. To create the most effective chart, she should:

none of the above

Which of the following is a guideline for the proper use of visual aids?

selecting a few visual aids from a portfolio for each presentation

A salesperson can maximize the impact of his or her presentation by:

using current and accurate information

For which of the following products would samples be the most effective as a sales kid?

carpet cleaner

For which of the following products would samples be least effective as a sales aid?

oil well drilling platforms

The salesperson for BM&M, a company manufacturing automated sawdust screens, was giving a presentation to a buying agent. During the presentation, the salesperson handed the buyer a letter from a pallet manufacturer in Georgia. The letter praised the efficiency of the BM&M screen and was especially complementary of the fact that the screen only has six moving parts. This letter is an example of a(n):

testimonial

"Mr. Smock, here are copies of letters from three owners of flower shops in the area who consistently buy cut flowers from our company. As you can see, they are extremely pleased with our quick delivery and product freshness." The letters this sales representative is showing Mr. Smock are examples of:

testimonials

Which of the following statements about testimonials is true?

testimonials should be used only if they help to address a buyer's needs or concerns

Which of the following statements about portfolios is true?

a portfolio should not be placed, like a wall, between the salesperson and the buyer

Which of the following is an appropriate situation for a sales representative to use a DVD during a sales presentation?

all of the above (DVD)

Which of the following statements about the use of computers by salespeople is true?

salespeople use collateral management systems to archive, catalog, and retrieve digital media and text

A product demonstration:

allows prospects to check if the product works the way the salesperson claims

Which of the following is a good advice for the use of demonstrations as part of a sales presentation?

all of the above

Which of the following is a good advice for the sue of demonstrations as part of a sales presentation?

If a demonstration includes dead time, a salesperson should plan out how he or she will keep the buyers engaged during that period.

Sunil was illustrating the ease with which his company's newly designed lawnmower can be operated. However, during the presentation, the lawnmower stopped working. What is the most appropriate way for Sunil to handle this situation?

Sunil should use humor and accept that such mistakes do happen.

A salesperson who wants to make effective use of handouts during his or her sales presentation should:

let the goal of the presentation determine what information should be included in the handout

A request for proposal (RFP):

is used when a customer has a firm idea of the product needed

Which of the following statements about RFP's (request for proposal) is true?

a salesperson can help a customer identify needs and specify product characteristics

Proposals that a buyer receives as a result of issuing an RFP should include:

an executive summary

A written proposal should have an executive summary, a brief description of the problem and solution, and:

a description of the current situation relative to the proposed solution

Melanie, a salesperson for printers and scanners, is sending a proposal for printers to the home office of Helix Services in Cedartown. To convince the executives in Cedartown that the local Vinson Mountain branch office needs the printers and copiers she is selling, Melanie would most likely:

secure the support of the Vinson Mountain branch manager

Jorge is developing a presentation for a customer. He wants to show the customer how his product will meet the prospect's needs and how it is different from the offerings of competitors. Jorge is developing a(n):

customer value proposition

A customer value proposition will include:

features and benefits tailored to a prospect's needs

Salespeople can strengthen their presentations by showing the prospect the cost of the proposal is offset by added value; this process is called:

value analysis

Identify a common method of applying this technique or quantifying the solution.

all of the above

Sonya showed the office manager at Arunden Solutions how he could pay for the new copier she was selling by bringing more of Arunden's printing jobs in-house, and saving money that had previously been spent on local printers. Sonya is using ___ to quantify the solution.

cost-benefit analysis

Jennifer wants to sell the Reiser Company billing department two top-of-the-line laser printers from her company at the cost of $8,000. To convince the buyers, she shows them that the new printers would print both the invoice form and the information about a particular sale on plain paper at the same time. This would save the company $32,000 because preprinted forms would no longer have to be purchased and filed in using a typewriter. "That's a savings of 300 percent!" she said. She arrived at the figure of 300 percent savings by computing the:

return on investment

The ___ is the net profits expected from a given investment, expressed as a percentage of the investment.

return on investment

Ron Hurley purchased all the material he needed to make snow cones for $11,600 at the start of the summer. By the end of the season, he made a net profit of $6,000 by making and selling snow cones at a local amusement park. Calculate Hurley's return on investment (ROI).

51.7 percent

By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able to show a net savings of $500 in annual maintenance costs. Calculate the return on investment for the engine.

15.6 percent

By investing $36,000 in an electronic gate for the employee parking lot, Risco USA was able to save $90,000 on salaries and benefits previously paid to security guards who monitored the parking lot entrance. The return on investment (ROI) is ___ percent.

250

The payback period:

indicates how quickly the investment money will be returned in the form of cash inflows or savings

The new deep-frying system installed in Roger's Deli is exactly like the old one except that it uses less electricity-$10 less electricity per day when compared to the old fryer. Assume that there are 21 workdays per month when the fryer is in use. Which of the following is the most accurate estimate of the payback period for the $1,500 investment in the new fryer?

a little more than 7 months

Goodman Woodworks has recently purchased a new saw costing $14,000. Because of a revolutionary new cutting blade, the new saw will not cause the veneer to splinter and will make clean cuts. This clean cut will save the firm $1,200 each year that goes in wastage. Calculate the payback period for the $14,000 investment.

11.67 years

When the purchasing team at PDQ Plastics Inc. recalculates the value of future income to be earned by a new molding machine into terms of current dollars, they are:

discounting the cash flows

The ___ of an investment is the net value today of future cash inflows minus the investment.

net present value

Nathan and Carla are members of the buying center for Bonny Bakes who are attending a sales presentation for a new ad campaign. During the meeting, Nathan says, "Carla, if instead of spending the $20,000 you're asking us to put into this new advertising idea, we put that money in a new packaging machine to replace the one in the Cartersville plant, we'll save $3,500 annually in maintenance and utility costs." Nathan is basing this objection on:

opportunity costs

The ___ is the return a buyer would have earned from a different use of the same investment capital.

opportunity cost

The buying enter at Peoria Cabinetworks is not able to reach a consensus on a purchase decision. The production manager wants to spend $18,000 to buy a new laminating machine, while the operations manager wishes to use that money to build an extension on its loading dock. The salesperson selling the laminating machine must realize that buyers should look at all ___ before making any major investments.

opportunity costs

Tonya is a manager of a retail clothing store. A sales rep calling on her offers overnight delivery on all re-orders at no extra shipping cost. This will allow Tonya to carry fewer items in the store and save money by increasing her.

inventory turnover rate

Ramiro, a supermarket owner, decides to keep relatively high levels of inventory even though it costs him more. Ramiro most likely thinks that the cost of ___ is greater than the benefits of increasing his turnover rate.

stockouts

Fiona, a manager of a retail store, wants to know whether she is maximizing her return on space investment. She will have to calculate the ___ for the area of the store.

sales per square foot

Which of the following is recommended as a good way to deal with jitters when making a sales presentation?

none of the above