M7042N Sales and Procurement Course Review

Practice questions based on the M7042N lecture transcript covering sales management, procurement, and negotiation strategies.

How is a company where sales, logistics, and production cooperate to satisfy customer needs best described?

Customer-centric

What is the primary focus of relationship selling?

Long-term trust and commitment

Which statement best reflects the concept of servitization?

Sell outcomes and integrated solutions

What is distributive negotiation mainly focused on?

Value claiming

What is the term for the overlap between reservation points in a negotiation?

ZOPA

What is the term for a concession given only if something is received in return?

Contingent concession

What type of bargaining do long-term relationships usually involve?

Integrative bargaining

What are the $3$ dimensions of the Spend Cube?

Supplier, Commodity, Cost Center

Which factor is NOT listed as one of the Spend Cube dimensions?

Price fluctuation

How does category management differ from transactional purchasing?

Aligning procurement with strategic business goals

What is the primary use of the Dutch Windmill model?

Analyze supplier-buyer dependence and relationship management

In industrial selling, which skill is considered most important?

Listening

Which orientation assumes customers will automatically buy superior technical products?

Product orientation

Which of the following is NOT typically considered a compensation plan according to the notes?

Performance metrics

What is identified as the key component regarding cash flow?

Predictability

What does the acronym BATNA stand for?

Best Alternative To a Negotiated Agreement

What does the acronym ZOPA stand for?

Zone Of Possible Agreement

What type of negotiation is focused on value creation?

Integrative negotiation

How can a negotiator avoid being anchored by the other party?

Anchor first and re-anchor with counteroffers

What action should negotiators avoid regarding concessions?

Making unilateral concessions without reciprocity

According to Porter’s Value Chain, how does procurement contribute to competitive advantage?

Enabling cost-efficient input acquisition across activities

In the Outsourcing Matrix, when is turnkey outsourcing appropriate?

When the function has low strategic importance and can be fully externalized

What does Key Account Management (KAM) involve?

Dedicated managers and cross-functional coordination

What is the focus of the New Sales Imperative?

Giving buyers the right choice instead of more choices

What serves to save margins when commoditization increases?

Solutions, not products

What is an important motivational factor for the salesforce?

Targets, contests, and promotion

Why is it often difficult to sell sustainable solutions?

High upfront costs and short-term customer focus

Who is responsible for controlling the flow of information in a Decision Making Unit (DMU)?

Gatekeeper

What is considered the most important part of the sales process?

Effective need identification

What is the purpose of sales management?

Planning, organizing, and controlling sales activities

What is one key benefit associated with servitization?

Recurring revenue and stronger customer relationships

What is an example of an internal capability?

Engineering expertise

What is an example of an external factor affecting business?

Environmental regulation

What is anchoring bias in negotiation?

The first number strongly influences negotiation outcomes

In the context of negotiation, what is a reservation point?

The worst acceptable deal before walking away