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Chapter 13 Communicating Customer Value: Personal Selling and Direct Marketing

GENER ! C"N#EN#: Multiple$Choice %uestions 1. These employees are well-educated, well-trained professionals who work to build and maintain long-term customer relationships by listening to their customers, assessing customer needs, and organizing the companys efforts to solve customer problems. Who are these employees a. !anagers. b. !issionary salespeople. c. "alespeople. d. "ales managers. e. #ll of the above. $#nswer% e& '(1& !oderate) *. Which of the following communication and promotion tools involve direct connections with customers aimed toward building customer-uni+ue value and lasting relationships a. ,ersonal selling. b. -irect marketing. c. .-commerce. d. ,ublicity. e. # and /. $#nswer% e& p. '(1& !oderate) 0. 1ohnson 2abric 3ompany has four selling positions for employees. 4ne of them is not really an actual selling position. Which is it a. 4rder taker. b. !issionary salesperson. c. 4rder getter. d. 3reative selling. e. / and $#nswer% e& p. '(*& !oderate) '. # 55555 is an individual acting for a company by performing one or more of the following activities% prospecting, communicating, servicing, and information gathering. a. sales manager b. sales e6ecutive c. sales support person d. salesperson e. none of the above $#nswer% d& p. '(*& .asy) 1**

7. 55555 involves two-way, personal communication between salespeople and individual customers8whether face-to-face, by telephone, through video or Web conferences, or by other means. a. #dvertising b. ,ersuasive selling c. ,ersonal selling d. 9ntegrated marketing communication e. # and / $#nswer% c& p. '(*& .asy) :. 3urrent view holds that salespeople should be concerned with producing customer satisfaction and company profit. "o whom do they generally serve a. They represent the company to customers. b. They represent the company to investors. c. They represent the customer to the company. d. # and 3 e. ;one of the above $#nswer% d& p. '(*& 3hallenging) <. When a firm sets out to analyze, plan, implement, and control sales force activities through sales force management, it sets and designs its55555, recruits, selects, trains, supervises, compensates, and evaluates the firms salespeople. a. sales territories b. sales force management c. team selling efforts d. coop selling and advertising e. promotional ob=ectives $#nswer% b& p. '1'& 3hallenging) >. 4f the three typical types of sales force structures, which one is often supported by many levels of sales management positions in specific geographical areas a. Territorial. b. ,roduct. c. 3ustomer. d. 3omple6 systems. e. !atri6. $#nswer% a& p. '(0& !oderate) ?. Which of the following is not a disadvantage of a product sales force structure a. .6tra selling costs involved with multiple sales visits from separate divisions. b. #ttention given to individual products. c. "alespeople may wait to see the same customers purchasing agents. d. 9ncrease customer delivery time. e. / and 3 $#nswer% d& p. '(0& 3hallenging) 1*0

1(. What do many companies use to set sales force size a. The workload approach. b. ,roduct availability. c. -emographic characteristics of the sales force. d. "ales +uotas established. e. ,rofit margin. $#nswer% a& p. '('& !oderate) 11. To reduce time demands on their outside sales forces, many companies have increased the size of their inside sales forces, which include technical support people, sales assistants, and 55555. a. order takers b. order getters c. telemarketers d. administrative assistants e. secretaries $#nswer% c& p. '(7& .asy) 1*. Which activity was not mentioned in the te6t as typical for a sales assistant a. 3all ahead and confirm appointments. b. ,rovide technical support. c. 3onduct credit checks. d. 2ollow up on deliveries. e. 3 and $#nswer% b& p. '(@& !oderate) 10. # growing trend for many companies is to use a group of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, comple6 accounts. This approach is called 55555. a. department selling b. multiple selling c. team selling d. management-controlled selling e. simultaneous selling $#nswer% c& p. '(<& .asy) 1'. 9n many cases today, a ma=or reason to adopt team selling results from changes in 55555. a. customers buying organizations b. competition c. rising costs d. fewer skilled salespeople e. none of the above $#nswer% a& p. '(<& !oderate)

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17. 4ne of the following is not a pitfall or disadvantage of team selling. Which is it a. "elling teams can confuse or overwhelm consumers. b. 9ndividual salespeople may have trouble learning to work with and trust others. c. 9n the long run, team selling ties up more time and increases overall costs. d. -ifficulties in evaluating individual contributions to the team selling effort can create some sticky compensation issues. e. #ll of the above. $#nswer% c& p. '(>& 3hallenging) 1:. The catalyst of any successful sales force organization is 55555. a. the recruitment and selection of good salespeople b. current and relevant customer research data c. relevant and e6tensive sales training d. sales managers who work with their people e. all of the above $#nswer% a& p. '(>& 3hallenging) 1<. 9n a typical sales force, the top 0( percent of the salespeople may bring in 55555 percent of the sales. a. '( b. 7( c. :( d. <( e. >( $#nswer% c& p. '(>& .asy) 1>. #ll of the following are problems associated with the poor selection of salespeople e6cept one. Which one a. Aower sales. b. 3ostly turnover. c. Aess productivity. d. Aess office support. e. Aoss of company image. $#nswer% d& p. '(>& .asy) 1?. Which of the following traits should salespeople have a. Bonesty. b. ,atience. c. Cesponsiveness. d. #ll of the above. e. # and 3 $#nswer% d& p. '(?& .asy)

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*(. "tudies show that good salespeople possess all of these traits e6cept which one a. Bonesty. b. ,atience. c. 3aring. d. #t least average listener. e. ;one of the above. $#nswer% d& p. '(?& !oderate) *1. "ales applicants are typically not tested for 55555. a. sales aptitude b. organizational skills c. accounting skills d. analytical skills e. / and $#nswer% c& p. '(?& !oderate) **. 9nitial sales training typically covers all of the following topics e6cept one. Which one a. 3ompanys history and ob=ectives. b. 3ompanys financial structure. c. 3hief products and markets. d. 2ield procedures and responsibilities. e. / and 3 $#nswer% d& p. '(?& !oderate) *0. The chapter suggests that 3isco benefits from the 55555. a. best products b. best prices c. best-trained sales force d. best technical support e. best market value $#nswer% c& p. '1(& !oderate) *'. To attract salespeople, a company must have an appealing compensation plan. 9t is made up of several elements8a fi6ed amount, 55555, e6penses, and fringe benefits. a. bonuses b. retirement c. a variable amount d. nonmonetary rewards e. recognition $#nswer% c& p. '1(& !oderate)

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*7. !anagement at Bappy !otors must decide what mi6 of compensation elements to offer their sales force. Which of the following is not one of the four basic types of compensation plans a. "traight commission. b. "traight salary. c. "alary and commission. d. 3ommission and bonuses. e. ;one of the above. $#nswer% d& p. '1(& .asy) *:. # recent study showed that <( percent of all companies use a combination of 55555 to compensate its sales force. a. base salary and e6pense accounts b. commission and fringe benefits c. base salary and incentives d. base salary only e. none of the above $#nswer% c& p. '1(& !oderate) *<. "ales force compensation should direct the sales force toward activities that are consistent with 55555. a. overall company strategies b. overall marketing ob=ectives c. overall company ob=ectives d. overall department ob=ectives e. all of the above $#nswer% e& p. '1(& 3hallenging) *>. Through sales management supervision, the company directs and 55555the sales force to do a better =ob. a. coaches b. motivates c. coerces d. influences e. forces $#nswer% b& p. '1(& .asy) *?. Which sales management tool shows which customers and prospects to see during the ne6t 1* months and in which months, as well as which activities to carry out a. Time-and-duty analysis. b. "ales force automation systems. c. #nnual call plan. d. "ales +uota plan. e. ;one of the above. $#nswer% c& p. '11& !oderate)

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0(. "alespeople and sales managers now realize that perhaps the fastest-growing sales force technology tool is 55555. a. the cell phone b. the laptop computer c. e-mail d. the 9nternet e. the D.". mail $#nswer% d& p. '1*& .asy) 3ompanies are always looking for ways to increase selling time. #ll of the following are ways to save time to accomplish this goal e6cept one. Which one f. Dse phones instead of traveling. g. "implify record keeping. h. 2ind better call and routing plans. i. Ceduce the number of customers each sales rep should see. =. 9ncrease the number of customers each sales rep should see. $#nswer% d& p. '11& 3hallenging) 01. "ales efficiency has been greatly improved using sales force automation systems. "alespeople primarily use laptops, handheld computing devices, 55555, and customer-contact software. a. video conferencing b. the D.". mail c. Web technologies d. cell phones e. none of the above $#nswer% c& p. '1*& !oderate) 0*. Three common techni+ues sales managers use to boost sales force morale include the organizational climate, sales +uotas, and positive 55555. a. incentives b. thinking c. recognition d. vocabularies and mannerisms e. feedback $#nswer% a& p. '1*& .asy) 00. !anagement sets standards that state the amount each salesperson should sell and how sales should be divided among the companys products with 55555. a. sales goals b. company +uotas c. sales +uotas d. sales incentives e. all of the above $#nswer% c& p. '1*& !oderate)

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0'. 4f all the tools commonly used, which one of the following is the best for management to use in evaluating salespeople a. 3all reports. b. "ales reports. c. .6pense reports. d. "ales +uota reports. e. 3ustomer feedback reports. $#nswer% b& p. '10& !oderate) 07. The selling process consists of several steps that the salesperson must master. They focus on the goals of 55555 and 55555 from them. a. closing sales& getting orders b. getting new customers& e6tracting their problems to solve c. getting new customers& obtaining orders d. overcoming ob=ections& obtaining orders e. +uoting prices& obtaining orders $#nswer% c& p. '10& !oderate) 0:. The step that follows preapproach in the selling process is 55555. a. presentation b. demonstration c. handling ob=ections d. approach e. +ualifying $#nswer% d& p. '1'& .asy) 0<. What should the salesperson and the sales manager accomplish during an evaluation a. ,rovide constructive feedback. b. ,rovide motivation to perform well. c. -evelop and communicate clear standards. d. #ll of the above. e. ;one of the above. $#nswer% d& p. '10& !oderate) 0>. The prospecting step in the selling process includes identifying and 55555 the prospects. Without both of them much time and effort will be wasted. a. calling b. +ualifying c. preselling d. making an appointment with e. approaching $#nswer% b& p. '1'& !oderate)

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0?. ,rospects can be +ualified by looking at their financial ability, volume of business, 55555, location, and possibilities for growth. a. ability to pay b. longevity in the market c. special needs d. compensation e. image $#nswer% c& p. '1'& !oderate) '(. The type of salesperson that fits best with todays marketing concept is a 55555. a. hard-sell salesperson b. problem-solver salesperson c. razzle-dazzle salesperson d. salesperson on salary and not on commission e. salesperson on commission and not on salary $#nswer% b& p. '(?& .asy) '1. The +ualities that buyers like most in salespeople include empathy, honesty, dependability, thoroughness, follow-through, and 55555. a. being a good listener b. being a good communicator c. being sympathetic d. being a caring person e. candor $#nswer% a& p. '17& !oderate) '*. The +ualities buyers dislike most in salespeople includes all of the following e6cept 55555. a. being pushy b. being deceitful c. being too early for an appointment d. being unprepared e. all of the above $#nswer% c& p. '17& .asy) '0. To handle ob=ections successfully, a salesperson should use a positive approach, seek out hidden ob=ections, ask the buyer to clarify any ob=ections, take ob=ections as opportunities to provide more information, and 55555. a. turn the ob=ections into humor b. seek to minimize or play down the ob=ections c. compliment the buyer for bringing the ob=ections up d. turn the ob=ections into reasons for buying e. # and 3 $#nswer% d& pp. '17E'1:& 3hallenging)

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''. 4ther than prospecting, a difficult step in the sales process for most people is to 55555 because they may lack confidence or feel guilty about asking for an order. a. approach the prospect b. make a professional presentation c. handle the ob=ections well d. close the sale e. follow up $#nswer% d& p. '1:& !oderate) '7. Which step in the sales process is necessary if the salesperson wants to ensure customer satisfaction and repeat business a. ,roper approach. b. ,rofessional presentation. c. Bandling ob=ections well. d. 2ollow-up. e. #ll of the above. $#nswer% d& p. '1:& 3hallenging) ':. Today, most companies still use direct marketing as a 55555 for marketing their goods. a. supplementary channel or medium b. ma=or marketing mi6 element c. compliment to personal selling d. techni+ue reserved for mature and international markets e. #, /, and 3 $#nswer% e& p. '1<& 3hallenging) '<. Today, direct marketing relies heavily on database technologies and the 9nternet. .arly direct marketers used primarily direct mailers, telemarketers, and 55555. a. door-to-door salespeople b. catalogs c. 3.4.-. delivery d. # and 3 e. none of the above $#nswer% b& p. '1<& .asy) '>. 2or buyers, direct marketing is convenient, easy to use, and private. 2or sellers it is 55555. a. a great tool for building customer relationships b. great to find customers that a firm might otherwise overlook c. a low-cost, efficient alternative for reaching their markets d. all of the above e. a hassle $#nswer% d& pp. '1>E'1?& !oderate)

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'?. /elinda "tahl would like to reach more customers and save money in the process. Through research she has learned that 55555 is the fastest growing form of marketing. a. personal selling b. advertising c. direct marketing d. public relations e. sales promotions $#nswer% c& p. '1?& .asy) 7(. # comprehensive database is a tremendous tool for the direct marketer. 9t should contain data that is geographic, demographic, psychographic, and 55555 in nature. a. specific b. culturally oriented c. current and relevant d. behavioral e. sociological $#nswer% d& p. '*(& 3hallenging) 71. What might be found in a /*/ marketing database # customers profile might contain products and services purchased, past volumes of purchases, and 55555. a. key contact people b. personal information about buyers c. history of the business d. / and 3 e. none of the above $#nswer% a& p. '*(& !oderate) 7*. # great advantage of a comprehensive marketing database is that companies can identify small groups of customers to receive 55555 marketing offers and communications. a. fre+uent b. finely tuned c. low-cost d. competitive e. unusual $#nswer% b& p. '*(& !oderate) 70. Which one of the following purposes is not a common use of a direct marketing database a. 9dentify prospects. b. Fenerate sales leads. c. ,rofile customers based on previous purchases. d. Ceduce competitive loyalty by up to 7( percent. e. # and $#nswer% d& p. '*(& !oderate)

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7'. Which of the following is not a form of direct marketing a. ,ersonal selling. b. #dvertising. c. Telephone marketing. d. -irect-mail marketing. e. # and 3 $#nswer% b& p. '*1& .asy) 77. The ma=or direct-marketing communications tool in todays business world is 55555. a. television marketing b. kiosk marketing c. telephone marketing d. catalog marketing e. the 9nternet $#nswer% c& p. '*1& !oderate) 7:. -irect mail has advantages over other forms of direct marketing, such as 55555. a. high target-market selectivity b. it can be personalized c. it is fle6ible d. all of the above e. none of the above $#nswer% d& p. '**& !oderate) 7<. -uring the last decade, three forms of mail delivery have become popular. Which one is in direct competition with the post office and is highly automated a. 2a6 mail. b. .-mail. c. Goice mail. d. 3ell phone and laptop combination. e. #ll of the above. $#nswer% b& p. '*0& .asy) 7>. 3atalog marketing can be personalized on a one-to-one basis. Which is not a common form of catalog marketing a. ,rint catalog. b. Gideo catalog. c. #dd-on catalog. d. .lectronic catalog. e. / and $#nswer% c& p. '*'& .asy)

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7?. 3atalog sales have grown tremendously in the last few years with more than 1(,((( companies producing some 1',((( specialty catalogs. "ales were H:? billion in 1??: and are e6pected to be more than 55555 billion by *((>. a. H7( b. H1<7 c. H0(( d. H7(( e. H?(( $#nswer% b& p. '*'& !oderate) :(. Which statement is true regarding catalog marketing a. !ore and more catalogs are going digital. b. 3onsumers make 0: percent of their purchases online. c. 3ustomers who receive print catalogs are more likely to buy online. d. 3atalog marketing is increasing in popularity. e. #ll of the above statements are true. $#nswer% e& p. '*0& .asy) :1. Web-based catalogs present challenges. What is one of those challenges a. They are intrusive. b. They create their own attention. c. They are passive and must be marketed. d. They offer limited selections. e. They are difficult to locate on the Web. $#nswer% c& p. '*'& 3hallenging) :*. #n effective form of direct marketing today is using the 0(-minute television advertising programs for a single product called 55555. a. direct-response TG advertising b. infomercials c. home shopping TG d. publicity e. all of the above $#nswer% b& p. '*'& .asy) :0. The infomercial-selling champ of all time is 55555. a. !artha Cay b. !artha "tewart c. Feorge 2oreman d. Con ,opeil e. 2aith Bill $#nswer% d& p. '*'& !oderate)

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:'. -irect-response ads always contain 55555 to make it easier for marketers to gauge whether consumers are paying attention to their sales pitches. a. a mailing address for comments b. a 1->(( number or the Web address c. a hit button to record the number of viewers d. an order number e. pop-ups $#nswer% b& p. '*'& 3hallenging) :7. 9n contrast to vending machines, which dispense only products, many companies are using 55555 to dispense information and take orders without direct human aid. a. kiosks b. TG monitors c. the 9nternet d. cell phones e. none of the above $#nswer% a& p. '*:& .asy) ::. Iiosk marketing is used for 55555. a. consumer marketing b. business marketing c. consumer and business marketing d. industrial marketing e. hot foods $#nswer% c& p. '*:& !oderate) :<. Too often, a companys individual direct-marketing efforts are not 55555 with one another or with other elements of its 55555. a. well integrated& companys strategy b. well integrated& marketing and promotion mi6 c. timed& promotion d. compared& marketing and promotion mi6 e. # and / $#nswer% e& p. '*<& 3hallenging) :>. ,ublic policy and ethical issues related to direct marketing include all of the following e6cept one. Which one a. 9rritation and unfairness. b. -eception. c. 2raud. d. 9nvasion of privacy. e. ;one of the above. $#nswer% e& p. '*>& !oderate)

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:?. The toughest public policy issue now confronting the direct-marketing industry is 55555. a. deception b. privacy c. fraud d. irritation e. pornography $#nswer% b& p. '*>& !oderate) <(. Which is the primary benefit to consumers from database marketing a. !ore offers closely matched to their interests. b. #vailability of name-brand images. c. /etter prices. d. 2aster service. e. 9nstant credit. $#nswer% a& p. '*>& .asy) <1. Dsing sophisticated computer technologies today, direct marketers can use their databases to 55555 their selling efforts. a. track b. integrate c. microtarget d. supplement e. complement $#nswer% c& p. '*>& 3hallenging) <*. -irect marketers know that, left unattended, problems such as privacy, fraud, irritation, and deception issues can result in 55555. a. increasingly negative consumer attitudes b. lower response rates c. calls for more restrictive government legislation d. # and 3 e. all of the above $#nswer% e& p. '0(& .asy) <0. What is the common goal that both direct marketers and consumers want a. Bonest marketing efforts. b. Well-designed marketing efforts. c. .fforts that consumers will appreciate and respond to. d. # and 3 e. #ll of the above. $#nswer% e& p. '0(& !oderate)

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<'. 3all ob=ectives may be to 55555. a. +ualify the prospect b. gather information c. make an immediate sale d. # and 3 e. all of the above $#nswer% e& p. '1'& !oderate) #rue&'alse <7. Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships by teaching their customers, assessing their needs, and organizing the companys efforts to solve customer problems. $True& p. '((& 3hallenging) <:. 9n her position as an outside field salesperson, #nna /eruk, is the interpersonal arm of her companys promotion mi6. $True& p. '('& !oderate) <<. -esigning sales force strategy and structure is not a ma=or step in sales force management that a typical company might encounter. $2alse& p. '('& .asy) <>. 4f all the ways to structure a sales force, product sales force structure helps the company to become more customer focused and build closer relationships with important customers. $2alse& p. '(7& !oderate) <?. To allow outside salespeople more time to spend with customers, many companies have increased their inside sales forces and added technical support people and sales assistants. $True& p. '('& .asy) >(. Team selling is ideal when customer problems become more comple6 and customers become larger and more demanding. These teams have the advantages of uncovering problems that an individual would not, and they can develop new opportunities. $True& pp. '(:E'(<& !oderate) >1. The workload approach to set sales force size is outdated. $2alse& p. '('& .asy) >*. ;etworking e+uipment and software maker 3isco "ystems has learned that using the 9nternet to train salespeople offers few advantages. $2alse& p. '1(& !oderate) 10<

>0. The last thing your manager wants is to have someone ruin a customer relationship because he or she is pushing too hard to close a deal. 9nstead, companies are designing compensation plans that reward salespeople for building customer relationships and growing the long-run value of each customer. $True& p. '1(& 3hallenging) >'. "ales force automation systems have been developed for more efficient order-entry transactions and improved customer service. $2alse& p. '1*& 3hallenging) >7. !ore and more companies are pushing their salespeople to make short-term goals for business. $2alse& p. '1(& .asy) >:. 9f 1ohnny ,ages company is like most consumer goods companies today, he can boost sales force morale and performance through his organizational climate, sales contests, and positive incentives. $2alse& p. '1*& !oderate) ><. 2ormal sales force evaluation forces management to develop and communicate clear standards for =udging performance and provide constructive feedback and motivation to perform well. $True& p. '10& .asy) >>. The step in the selling process where the salesperson learns as much as possible about the buying organization, what its needs are, and who is involved in the buying, is called +ualifying. $2alse& p. '1'& !oderate) >?. -uring the presentation step of the selling process, the salesperson tells the product JstoryK and e6plains the product benefits to the customer. $True& p. '17& .asy) ?(. The ma=or reason why "on=a /ergman might not be able to close sales to her clients very well is because she may lack confidence, feel guilty about asking for the order, or fail to recognize the need for the product being sold. $2alse& p. '1:& 3hallenging) ?1. Todays large customers favor suppliers and salespeople who can sell and deliver a coordinated set of products and services to many locations, and who can work closely with customer terms to improve products and processes. $True& p. '1:& .asy)

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?*. The forerunners of todays direct marketing were the catalog companies, direct mailers, and telemarketers who gathered customer names and sold goods mainly by mail and telephone. $True& p. '1<& !oderate) ?0. # strong set of reasons for companies to use direct marketing is that it is an easy, private, and convenient way for customers to shop. $True& p. '1<& .asy) ?'. 3ustomer databases are invaluable tools for the direct marketer. Typical, they contain the customers demographics, psychographics, buying behavior, and other relevant information. $True& p. '*(& !oderate) ?7. !y 2avorite 2lowers floral shops can use its database in many useful ways. The owners can identify prospects and generate sales leads by advertising products or offers. They can profile customers based on previous purchasing and decide which customers should receive particular offers. "alespeople can also help the business to deepen customer loyalty. $True& p. '*(& 3hallenging) ?:. The ma=or forms of direct marketing include personal selling, telephone marketing, direct-mail marketing, catalog marketing, direct-response television marketing, kiosk marketing, and fa6 marketing. $2alse& p. '*1& !oderate) ?<. The method of inbound telephone marketing is to provide a toll-free 1->(( number to receive orders from television and print ads, direct mail, or catalogs. $True& p. '*1& .asy) ?>. -irect mail is well suited to direct, one-to-one communication. 9t permits high targetmarket selectivity, can be personalized, and is fle6ible. Bowever, it does not allow easy measurement of results. $2alse& p. '**& 3hallenging) ??. 3atalog marketing has grown e6plosively during the past *7 years. !ost recently, the 9nternet has helped boost the popularity even more. $True& p. '*'& .asy) 1((. 9n many instances, direct response television marketing has the advantages of appealing to more than one of the physical senses, being in color, live product demonstrations, and prime-time viewing. $True& p. '*'& !oderate)

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1(1. Iiosk marketing, typically used in stores, airports, malls, and other locations, dispenses information and takes orders, as opposed to vending machines that dispense products for sale. $True& p. '0*& .asy) 1(*. The ma=or public policy and ethical issues in direct marketing today are irritation, unfairness, privacy, deception, and fraud. $True& p. '*>& !oderate) 1(0. Wing "upply sells game calls to hunters through direct mail and database marketing. Their customers can benefit from this database marketing because they may receive more offers that are closely matched to their interests. $True& p. '*>& .asy) 1('. 9n a typical sales force, the top 0( percent of the salespeople might bring in :( percent of the sales. $True& p. '(7& !oderate) Essa( 1(7. -escribe the nature of personal selling and the role of the sales force. Today, most salespeople are well-educated and well-trained professionals who work to build and maintain long-term customer relationships by listening to their customers, assessing customer needs, and organizing the companys efforts to solve customer problems. "alespeople act as order takers, order getters, and creative sellers. ,ersonal selling is the interpersonal arm of the promotion mi6. The sales force acts as a critical link between a company and its customers. "alespeople represent the company to the customer and the customer to the company to produce customer satisfaction and company profit. $p. '(1& !oderate) 1(:. 3ompare and contrast the three ma=or sales force structures. 9n the territorial sales force structure, each salesperson is assigned to an e6clusive geographic area and sells the companys full line of products or services to all customers in that territory. This organization clearly defines each persons =ob, fi6es accountability, and increases the persons desire to build local business relationships that improve selling effectiveness. The product sales force structure allows the sales force to sell along product lines& the seller becomes very knowledgeable about products. This method can cause duplication of efforts and several salespersons calling on the same accounts. The customer sales force structure organizes along customer or industry lines& this can help a company to become more customer focused and build closer relationships with important customers. $p. '(0& 3hallenging) 1'(

1(<. Why are more companies using team selling What are its pros and cons Team selling is useful to service large, comple6 accounts. "ales teams can uncover problems, solutions, and sales opportunities that no individual salesperson could. Teams can help train their members informally and boost morale. "ome pitfalls e6ist, such as selling teams can confuse or overwhelm customers who are used to working with only one salesperson. "ome salespersons have trouble working with others. 2inally, difficulties in evaluating individual contributions to the team selling effort can create some sticky compensation issues. $pp. '(:E'(<<& !oderate) 1(>. What are the steps in finding and training an ade+uate sales force Which step is more important Cecruiting and selecting the sales force comes first. 2ollowing selection, orientation and training must be conducted based upon the knowledge and skill levels of the recruits. The proper compensation method must be selected to motivate and assist each person to reach his or her goals and the companys goals. !anagement must supervise salespeople and assist them in reaching their goals. !anagement must also evaluate salespeople and provide feedback to improve performance. The most important step is probably the recruitment and selection step. Food performers produce results& typically, 0( percent of the sales force produces :( percent of the sales. $p. '(>& 3hallenging) 1(?. ,rovide the seven steps in the selling process. What may be the two most difficult steps for most salespeople ,rospecting and +ualifying begin the process, followed by the preapproach. ;e6t, the salesperson makes an approach to make a presentation or demonstration. Bandling ob=ections follows, leading into closing the sale. .ach sale re+uires a follow up to make it complete. 2or most salespeople, especially new ones, the prospecting, +ualifying, and closing steps are the most difficult and re+uire much skill. $pp. '10E'1''& .asy) 11(. ,lease e6plain the ma=or benefits of direct marketing. 2or buyers, direct marketing is convenient, easy to use, and private. 9t gives buyers ready access to a wealth of products and information, at home or work and around the globe. 9t is immediate and interactive. 2or sellers it is powerful for building customer relationships. Dsing database marketing, marketers can target small groups or individual consumers, tailor offers of individual needs, and promote these offers through personalized communications. 9t provides great timing and offers a low-cost, efficient alternative for reaching markets. -irect marketing has become the fastest form of marketing. $p. '1<& !oderate) 1'1

11*. ,rovide the ma=or advantage of each form of direct marketing. Telephone marketing provides purchasing convenience and increased product and service information. -irect mail marketing permits selectivity and personalization. 3atalog marketing allows customers to buy =ust about anything they desire. -irectresponse television marketing allows live demonstrations with salespeople coming to your home or business. Iiosk marketing places information and ordering machines in convenient places, airports, stores, malls, and so forth. $p. '*1& .asy) 110. What are the five ma=or public policy and ethical issues in direct marketing Why are consumers concerned about them The five ma=or issues are irritation, unfairness, deception, fraud, and invasion of privacy. 3onsumers are concerned those marketers know too much about their lives and that they use this knowledge to take unfair advantage of consumers. $p. '*>& .asy) 11'. Bow does database marketing benefit consumers 3onsumers often benefit from all this information kept about them in databases. They receive more offers that are closely matched to their interests. $p. '*?& !oderate) 117. .6plain the follow-up step of the selling process. The follow-up step is necessary if the salesperson wants to ensure customer satisfaction and repeat business. Cight after closing, the salesperson should complete any details on delivery time, purchase terms, and other matters. The salesperson then should schedule a follow-up call when the initial order is received, to make sure there is proper installation, instruction, and servicing. This visit would reveal any problems, assure the buyer of the salespersons interest, and reduce any buyer concerns that might have arisen since the sale. $p. '1:& .asy) PP!)C #)"N C"N#EN#: Multiple$Choice %uestions 11:. ;ew Wave !usic 3ompany has decided to switch to a customer sales force structure. Which of the following advantages may the company now en=oy a. The company can become more customer focused. b. The company can build closer relationships with important customers. c. The company can build a more knowledgeable and well-rounded sales force. d. # and 3 e. #ll of the above. $#nswer% e& p. '(0& 3hallenging) 1'*

11<. .ast /ay 3ommunications has increased its inside sales force. Bow will this help its outside sales force a. 9t will allow them more time to sell to ma=or accounts. b. 9t will allow them more time to find ma=or new prospects. c. 9t will allow them more time to provide after-the-sale customer service. d. # and / e. #ll of the above. $#nswer% e& pp. '('E'(7& !oderate) 11>. Lour sales manager wants to hire only proven salespeople. Bis reasoning includes all of the following e6cept 55555. a. They need less training. b. They will not ask for a large e6pense account. c. They can be immediately productive. d. They can grasp both product knowledge and sales skills faster. e. all of the above $#nswer% b& p. '(>& 3hallenging) 11?. Freg /urden is sales manager for Bigh Frade 9ndustrial 3hemicals. Be wants to raise his sales force selling time by 00 percent. 3urrently they spend the nationwide average of 55555 percent of their workweek actually selling. a. *( to 0( b. '( to 7( c. :( to <( d. >( to ?( e. 1(( $#nswer% a& p. '11& !oderate) 1*(. Lour firm wants to increase sales and reach new markets with direct marketing. To accomplish this, the sales or marketing manager would choose which of the following a. "ales promotions. b. #dvertising. c. Iiosk marketing. d. ,ublic relations and publicity. e. # or / $#nswer% c& p. '*:& !oderate)

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1*1. ,ete "anchez has added telemarketing as a form of direct marketing to his company. Be sees an opportunity to grow and at the same time offer advantages to his customers. Which of the following is not a customer advantage a. ,urchasing convenience. b. 9ncreased product information. c. 9ncreased delivery time. d. 9ncreased service information. e. # and / $#nswer% c& p. '*1& 3hallenging) 1**. ;eal !urphy sells his companys uni+ue gift items on television programs and entire channels dedicated to selling goods and services. ;eal is using 55555. a. infomercials b. home shopping channels c. 9nternet-based infomercials d. prime-time selling e. public relations $#nswer% b& p. '*:& .asy) 1*0. #dam 2o6 Aimited, a noted consumer goods company, uses integrated direct marketing to greatly improve response rate. Which of the following is his company not likely to use to accomplish this goal a. # Web site. b. # toll-free number. c. # fa6ing component to provide more information. d. #n outbound telemarketing effort. e. ;one of the above. $#nswer% c& p. '*<& .asy) 1*'. Ayall .lectric, 9nc., maintains a sales force for its small appliance customers and a separate sales force for its automotive customers. Ayall .lectric utilizes a 55555 structure. a. product sales force b. customer sales force c. territorial sales force d. a combination of / and 3 e. none of the above $#nswer% a& p. '(0& !oderate)

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1*7. "tahl, 9nc., has 1,((( Type-# accounts, each re+uiring *> calls per year, and *,*(( Type-/ accounts, each re+uiring 17 calls per year. What is the sales forces workload a. '(,((( calls b. '1,((( calls c. 7(,((( calls d. :1,((( calls e. <1,((( calls $#nswer% d& p. '('& 3hallenging) 1*:. 9f each salesperson at "tahl, 9nc., can make 1,7(( sales calls per year, based on the information in +uestion M1*7, appro6imately how many salespeople will be needed a. 01 b. 07 c. '1 d. '7 e. '> $#nswer% c& p. '('& 3hallenging) 1*<. Lou are responsible for hiring inside salespeople at #cme, 9nc. What =obs might you e6pect these people to perform a. 2ree outside salespeople to spend time with ma=or accounts. b. Dse the phone to find new leads. c. #ct as liaisons between outside salespeople and customers. d. "ervice accounts. e. #ll of the above. $#nswer% e& p. '('& !oderate) 1*>. #s a sales manager, you are not convinced that Web-based training is valuable until someone demonstrates that 55555. a. salespeople can obtain te6t-based product training through the Web b. sales skills are not likely to be ac+uired via Web-based training c. sales skills are likely to be ac+uired via Web-based training d. # and 3 e. all of the above $#nswer% d& p. '(?& 3hallenging) 1*?. Lour companys goal is to ma6imize profitability& therefore, you will likely want a salesperson who is 55555. a. an independent self-starter b. a team player c. not a team player d. money driven e. # and 3 $#nswer% b& p. '11& .asy)

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10(. Lour inside sales force is responsible for prospecting and +ualifying customers. Which of the following will likely occur a. The number of +ualified customers will e6ceed the number of prospects. b. The outside sales force will call on all prospects. c. # salesperson may have to approach all +ualified customers =ust to make one sale. d. #ll of the above. e. # and 3 $#nswer% e& p. '1'& 3hallenging) 101. "aturn uses a database. Bow might this automobile manufacturer benefit a. "aturn can determine the geographic concentration of its customers in 9llinois versus 4hio, for e6ample. b. "aturn can determine what features to add to ne6t years models. c. "aturn can fine-tune certain marketing offers for specified customer groups. d. # and / e. #ll of the above. $#nswer% e& p. '*(& !oderate) 10*. #s a marketing manager, you are trying to determine how much of your promotional effort should be geared toward personal selling. Which factor$s) may influence your choice a. ,romotional dollars available. b. ;ature of your products. c. ;ature of your industry. d. Target market characteristics. e. #ll of the above. $#nswer% e& p '(*& .asy) 100. !orrill !otors splits the Dnited "tates into 1( sales regions. Within each of those regions, the company maintains two sales teams8one for e6isting customers and one for prospects. What type of sales force structure does !orrill !otors use a. Territorial. b. ,roduct. c. 3ustomer. d. 3omple6. e. Workload. $#nswer% d& p. '(0& 3hallenging) 10'. Lou want to collect information about your sales force in the ;ew .ngland states. What might you consider in doing so a. "ales reports. b. 3all reports. c. .6pense reports. d. ,rofit performance in the territory . e. #ll of the above. $#nswer% e& p. '10& .asy) 1':

107. Lour sales force is able to easily assess their opportunities within the firm. This feeling describes your firms 55555. a. prospecting b. organizational climate c. workload approach d. technical support e. sales structure $#nswer% b& p. '1*& !oderate) Short ns*er 10:. What are three roles given to people who do the selling "alespeople are order takers, order getters, creative sellers, and relationship builders. $p. '(*& .asy) 10<. What type of company may use the territorial sales force structure 3ompanies who have split their customer bases up based on geographic location will benefit from this type of structure. With a territorial sales force structure, the organization clearly defines each salespersons =ob and accountability. 9n addition, this type of structure increases the salespersons desire to build strong customervendor relationships. $p. '(0& !oderate) 10>. What type of company may use a product sales force structure With this structure, the salespeople sell along product lines& this type of structure will most likely be used by companies that carry e6tensive product lines with the need to separate customers according to the products they buy. $p. '(0& !oderate) 10?. What type of company may use a customer sales force structure With this type of structure, companies organize their sales forces according to customer types. 2or e6ample, a manufacturer of insulated wire for both the small appliance and automotive industries may decide to segment their salespeople according to either the small appliance category or the automotive category. $p. '(0& !oderate)

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1'(. .6plain how the workload approach helps companies set sales force size. Dsing this approach, the company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort re+uired to maintain them. 9t then determines the number of salespeople needed to call on each class of accounts the desired number of times. $p. '('& !oderate) 1'1. Why might a company need to hire both an inside and an outside sales force 2or e6ample, larger accounts may re+uire special nurturing& therefore, an outside sales force can call on those customers. "maller accounts may be able to be taken care of by an inside sales force. $pp. '('E'(7& !oderate) 1'*. 9dentify the four types of compensation plans available to salespeople. These include% straight salary, straight commission, salary plus bonus, and salary plus commission. $p. '1(& .asy) 1'0. What does the annual call plan indicate The annual call plan shows which customers and prospects to call on in which months and which activities to carry out. $p. '11& !oderate) 1''. What does time-and-duty analysis reveal This tool indicates time spent selling, traveling, waiting, eating, taking breaks, and doing administrative chores. $p. '11& .asy) 1'7. What is a firms organizational climate 4rganizational climate describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance. $p. '1*& !oderate) 1':. Why does a firms number of prospects always e+ual or e6ceed its number of +ualified customers ,rospecting identifies the total number of potential customers in an area& +ualifying breaks that number of prospects down into the actual group that the salesperson will target. $p. '1'& !oderate) 1'>

1'<. Why does a salesperson set call ob=ectives 3all ob=ectives allow the salesperson to better +ualify the prospect, gather more or better information, andNor make an immediate sale. $p. '1'& 3hallenging) 1'>. 9n what situation might a demonstration be especially critical during a salespersons presentation # demonstration may be important if the products use or value can be better understood with a visual demonstration. 2or e6ample, if comparing /rand # brass cleaner with another leading brand, a demonstration of how much more +uickly /rand # works may be more convincing for the prospective buyer. $p. '17& 3hallenging) 1'?. 9n what situation might the need-satisfaction approach be important to the salesperson This approach calls for good listening and problem-solving skills. The salesperson commits himself or herself to listening to the customers problems, providing viable solutions, follow-up, and so forth. $p. '17& 3hallenging) 17(. What are three possible signs that the salesperson should close the call The call should be closed when the customer nods approvingly when asking about price or credit terms. 9n addition, the salesperson should close the call after the customer or prospect has asked for updated pricing or product samples, or when the customerNprospective buyer suggests a future meeting date to discuss pricing, +uality, and so on. $p. '1:& 3hallenging) 171. Why might the follow-up be considered the most critical step of the sales process The follow-up allows the salesperson to assure his or her continued interest and to address buyer concerns that might have arisen since the sale. $p. '1:& !oderate) 17*. What types of information are stored in a customer database # database can store demographic, psychographic, geographic, andNor product-use information. This information allows the marketer to keep track of numerous characteristics of the JtypicalK customer. $p. '*(& .asy)

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170. Why might e-mail eventually become an ineffective promotional medium #s people receive more and more e-mail, they tend to resent the intrusion of unre+uested messages. $p. '*0& .asy) 17'. What may be considered a huge disadvantage with kiosk marketing Iiosks provide an informal way of contacting customers and prospects& kiosks provide an impersonal touch that many customers may appreciate from marketers. $p. '*:& .asy) 177. Why have firms adopted sales force automation systems !any firms have adopted sales force automation systems for more efficient orderentry transactions, improved customer service, and better salesperson decisionmaking support. $p. '1*& !oderate) Scenario Celiable Tool 3ompany is a manufacturer of hubs and a6les for the trailer and heavy truck industry. Though the customer base is small, monthly sales at Celiable are appro6imately H1 million. JLou might say we have all of our eggs in one basket,K says owner #rthur -eetz. Celiable Tool has captured Ja small piece of the pieK but is the sole supplier of hub and a6le components to its customers& therefore, it is critical that a competent sales force be maintained in order to nurture those few but large accounts. ;inety-five percent of Celiables customers are located in !ichigan, 4hio, and 9ndiana. Travel time to all customers is short but, given the nature of the industry, time spent with each customer is essential. 17:. Why might personal selling be the best way for Celiable to promote ,ersonal selling provides face-to-face contact with Celiables customers. This is essential because the scenario indicates that the current customer base demands a fair amount of personal attention. 9n addition, a heavy emphasis on personal selling helps to build Celiable Tools credibility among prospects as they +uickly become familiar with Celiables face-to-face efforts. $p. '(*& .asy)

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17<. What sales force structure will work best for Celiable Tool # customer sales force structure may work best& this structure allows separate salespeople to contact current versus e6isting customers and allows salespeople to build closer relationships with important customers and prospects. 9n addition, for some of the larger accounts, a team effort may prove to be successful& this approach would allow various employees from various departments at Celiable to make contact with their customer contacts. $p. '(0& 3hallenging) 17>. Will an inside or outside sales force benefit Celiable Tool the most #n outside sales force provides the face-to-face contact necessary to nurture these Jfew but largeK accounts. 9n addition, attracting new customers may re+uire intense face-to-face communication with prospects in the industry. $p. '('& !oderate) 17?. 9n order to best motivate this workforce, which of the four compensation plans may work best "tudents answers will vary. Bowever, because Celiable Tools accounts re+uire special nurturing, a straight salary may work best. # straight salary may eliminate the aggressiveness or assertiveness that can often accompany salespeople who are working to earning a commission or bonuses. $p. '1(& 3hallenging) 1:(. #ssess the organization climate at this company. "tudents assessments will vary. Bowever, because Celiables customers re+uire a level of attentiveness that may go beyond typical accounts in other industries, #rthur -eetz must certainly understand that salespeople turnover, at whatever rate, would be detrimental to the customer-vendor relations necessary for Celiables success. $p. '1*& 3hallenging) 1:1. What are some factors that may be considered when +ualifying prospects at Celiable Tool 3ompany The prospects ability to pay, the prospects annual amount purchased, and the prospects images in the marketplace may all play a role. $p. '1'& .asy)

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1:*. What is an effective way for salespeople at Celiable Tool 3ompany to follow up after a call #s with any sales call, a good follow-up will include an overview of the previous sales meeting, an update on pricing or changes within the company since the salesperson last spoke with the customer, any plans for a future visit, as well as a Jthank-youK for the customers time. $p. '1:& !oderate) 1:0. Bow could this company benefit from using a customer database /ecause the products produced at Celiable are probably customized hubs and a6les, a database may likely serve a diminished purpose. Bowever, such a database can provide the marketer with any types of product changes or evolutions that may have occurred in the distant past as well as a number of other changes. $p. '*(& !oderate) 1:'. "hould this company use kiosk marketing Why or why not Dnlikely. Iiosk marketing is most often used as a convenience tool& therefore, the attention re+uired by the typical Celiable Tool customer could not be given. 9n addition, kiosks will not likely work well for products that are custom-made& a tradeshow may be a better tool for Celiable Tool. $p. '*:& !oderate) 1:7. What +ualities might customers dislike most in salespeople at Celiable Tool "uch +ualities may include being deceitful, late, pushy, and unprepared or disorganized. $p. '17& .asy)

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