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Marketing Chapter 13

Which of the following statements is true of salespeople?
A) They do not work with wholesalers and retailers.
B) They are employed mostly in click-only companies.
C) They do not represent the customers to the company.
D) They represent a company to its customers by communicating and selling.
E) They represent a new class of professionals who have emerged as part of the steep rise in retailing.
D) They represent a company to its customers by communicating and selling.
A company that sells only one product line to one industry with customers in many locations would typically use a ________.
A) product sales-force structure
B) territorial sales-force structure
C) market sales-force structure
D) customer sales-force structure
E) complex sales-force structure
B) territorial sales-force structure
Which of the following is an advantage of a territorial sales-force structure?
A) The sale of multiple product lines to more than one industry is facilitated.
B) Each salesperson is assigned to multiple geographical areas.
C) Several types of sales-force structures are combined.
D) Travel expenses are relatively small.
E) The sales force specializes across different product lines.
D) Travel expenses are relatively small.
Which of the following is true of a territorial sales-force structure?
A) It clearly defines each salesperson’s job and establishes accountability.
B) It benefits firms with many technological products requiring technically-skilled salespeople.
C) It is used by firms that organize their sales forces along customer or industry lines.
D) It requires salespeople to sell a wide variety of products over a broad geographic area.
E) It differentiates the sales force solely on the basis of product expertise.
A) It clearly defines each salesperson’s job and establishes accountability.
Which of the following examples represents a territorial sales-force structure?
A) Maxine Pharmaceuticals organizes its sales force based on each salesperson’s expertise on specific drugs manufactured by the firm.
B) Cherrie Boutique sells its products through a network of teams, each of which handles a specific product, but products are sold from only one location.
C) Verra Designers operates from its landmark store in New York, and customers from around the world visit the store to buy original merchandise at steep prices.
D) Milton’s, a specialty liquor brewery, uses half of its sales force to cater to existing customers, and the rest to identify new customers.
E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.
E) Oriental Meals, producers of precooked Chinese meals, markets its products throughout the country using a network of regional sales offices.
Which of the following statements is true of a product sales-force structure?
A) A product sales-force structure is characterized by specialization along product lines.
B) A product sales-force structure is used when a company has only one product line.
C) A product sales-force structure requires every salesperson to be an expert in all the product categories of the company.
D) A product sales-force structure organizes the sales force along customer or industry lines.
E) A product sales-force structure uses a single sales force across different product lines.
A) A product sales-force structure is characterized by specialization along product lines.
Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure.
A) customer
B) product
C) complex
D) distributor
E) territorial
E) territorial
Simpson Ltd., located in San Diego, provides a range of household and healthcare goods to consumers within the region. The firm also runs a number of local hotels and resorts under its brand name. Simpson employs different sales forces for each major division, so there are sales teams for household goods, healthcare goods, hotel management, and resort management. Simpson has most likely adopted a(n) ________ sales-force structure.
A) market
B) product
C) customer
D) territorial
E) complex
B) product
Which of the following examples represents a product sales-force structure?
A) Venson’s produces frozen dinners at its factory in Ohio, and it sells them across the country through a network of sales representatives organized into regional and territorial tiers.
B) AmWeb produces an expensive brand of herbal cosmetics called “Green You” that are sold in select boutiques and beauty parlors by selling teams assigned to serve small groups of key customers.
C) Verra Designers operates from its landmark store in uptown New York and customers from all over the world come to this store to buy original merchandise at steep prices.
D) Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range.
E) Nutters Inc., producers of cookies and other baked goods, markets its products throughout the country through a network of area and regional sales officers.
D) Cartlon Computers sells its range of highly specialized computers through special teams, each of which has received training in the configuration, uses, and USPs of a single model in the range.
In which of the following structures does a company organize its sales force along client or industry lines?
A) demographic sales-force structure
B) service sales-force structure
C) market sales-force structure
D) territorial sales-force structure
E) product sales-force structure
C) market sales-force structure
Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts of his company. His job involves ensuring that key customers receive the best service from Hilton Brews. Sandy is also responsible for acquiring new customers with high consumption needs on a nation-wide basis. Despite his lack of product specialization in all the product lines, Sandy is hired for this position because of his excellent interpersonal skills. Hilton Brews has most likely adopted a ________ sales-force structure.
A) product
B) team-based
C) territorial
D) market
E) complex
D) market
If a company assigns individual teams of salespeople to big retail customers, it most likely has a(n) ________ sales-force structure.
A) undifferentiated
B) product
C) market
D) territorial
E) demographic
C) market
A ________ sales-force structure combines several types of sales force organizations.
A) market
B) simple
C) product
D) territorial
E) complex
E) complex
Easy Life manufactures a wide range of kitchen appliances, healthcare products, and cosmetics. Its salespeople are divided on the basis of their expertise in a product category. Again, within each category, they are divided into teams addressing large retail customers, convenience stores, and the general public. Which of the following sales-force structures has most likely been combined to form this complex sales-force structure?
A) territorial and market
B) product and market
C) product and territorial
D) geographical and product
E) market and customer
B) product and market
Lemony Inc. sells its popular bottled lemonade-the company’s only product-in various geographic locations through tie-ups and agreements with retailers. Each location is represented by two salespersons, one of whom serves current customers while the other finds new ones. Which of the following sales-force structures has most likely been combined to form the complex sales-force structure at Lemony Inc.?
A) market and territorial
B) market and customer
C) product and territorial
D) market and product
E) geographical and product
A) market and territorial
Which of the following is a characteristic of an inside sales force?
A) It travels to make sales calls on customers in the field.
B) It receives administrative backup from outside sales forces.
C) It cannot sell or service accounts directly.
D) It eliminates the need to have an outside sales force.
E) It conducts business from an office via telephone.
E) It conducts business from an office via telephone.
Which of the following is most likely true about salespeople in a field sales force?
A) They build relationships with customers by traveling to see them.
B) They make most sales from their offices via media interactions.
C) They provide administrative backup for outside salespeople.
D) They rely on telemarketing efforts to gain leads and clients.
E) They are prohibited to sell or service accounts directly.
A) They build relationships with customers by traveling to see them.
The difference between an inside sales force and an outside sales force is that an outside sales force ________.
A) acquires more decision-maker contacts each day
B) consists mostly of telemarketers and Internet sellers
C) conducts business from headquarters via telephone
D) spends less money to reach and support customers
E) travels frequently to call on customers in the field
E) travels frequently to call on customers in the field
Which of the following statements is most likely true of team selling?
A) It is used most often when the group of target customers is small and homogeneous.
B) It consists of experts from a single area of the selling firm such as marketing or finance.
C) It can unearth problems and provide solutions that no individual salesperson could.
D) It is most often implemented when products are simple and distribution costs are low.
E) It simplifies the process of evaluating the individual contributions of sales team members.
C) It can unearth problems and provide solutions that no individual salesperson could.
Which of the following is most likely true of a sales force?
A) The performance difference between an average salesperson and a top salesperson is generally substantial.
B) The cost of replacing a salesperson is usually low because minimal training is necessary.
C) A sales force with many new people is typically more productive than one whose members have been around for a long time.
D) Individuals within a sales force generally perform at the same level of efficiency.
E) On-site sales training is more efficient and less costly than e-learning programs.
A) The performance difference between an average salesperson and a top salesperson is generally substantial.
Which term refers to the fixed amount in a salesperson’s compensation?
A) bonus
B) commission
C) salary
D) incentive
E) profit-sharing plan
C) salary
Which term refers to a tool used by managers to supervise their salespeople?
A) call plan
B) sales quota
C) sales contest
D) bonus plan
E) straight commission
A) call plan
What is the purpose of a sales manager using a time-and-duty analysis?
A) compensating salespeople
B) prospecting customers
C) recruiting salespeople
D) forming sales teams
E) supervising salespeople
E) supervising salespeople
________ are the standards stating the amount salespersons should sell and how sales should be divided among the company’s products.
A) Sales promotions
B) Sales quotas
C) Display allowances
D) Time-and-duty analyses
E) Sales reports
B) Sales quotas
Weekly or monthly work plans used by management to get information about salespeople are referred to as ________.
A) sales quotas
B) ROI plans
C) call objectives
D) sales reports
E) call plans
D) sales reports
Salespeople write up their completed activities in a(n) ________.
A) sales quota report
B) profit-sharing plan
C) call plan
D) call report
E) expense report
D) call report
How have social media tools most likely affected personal selling?
A) reducing the use of person-to-person selling efforts
B) increasing the costs of selling products and services
C) changing the basic fundamentals of interpersonal selling
D) increasing the number of product reports given to customers
E) slowing the sales force response rate to customers’ problems
A) reducing the use of person-to-person selling efforts
Which of the following is a disadvantage of using social media tools for selling?
A) Social media tools have transformed the fundamentals of selling.
B) Social media tools tend to make sales forces less efficient.
C) Social media tools can intimidate low-tech sales people or clients.
D) Social media tools make it difficult to spot buying trends.
E) Social media tools increase the time taken to solve customer problems.
C) Social media tools can intimidate low-tech sales people or clients.
What is the first step in the selling process?
A) approach
B) prospecting
C) demonstration
D) handling objections
E) sales presentation
B) prospecting
In which step of the selling process does a salesperson or company identify qualified potential customers?
A) demonstration
B) preapproach
C) prospecting
D) approach
E) presentation
C) prospecting
Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict?
A) demonstration
B) preapproach
C) prospecting
D) approach
E) presentation
C) prospecting
In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call?
A) approach
B) follow-up
C) demonstration
D) handling objections
E) preapproach
E) preapproach
In which step of the selling process does a salesperson set call objectives?
A) preapproach
B) approach
C) presentation
D) qualifying
E) prospecting
A) preapproach
In which step of the selling process does a salesperson most likely meet a customer for the first time?
A) prospecting
B) preapproach
C) presentation
D) qualifying
E) approach
E) approach
Sheldon Parks works as a salesperson in a large company that sells vending machines and beverages like coffee, tea, and hot chocolate. He meets Rosa Thoms, a potential client who heads the administration department of a large MNC, and speaks to her at length to determine the kind of vending machine and beverages her company would need. After understanding the specifications, he provides her team of employees with samples to obtain their feedback. At which step of the selling process is Sheldon in the above scenario?
A) approach
B) preapproach
C) qualifying
D) prospecting
E) closing
A) approach
The presentation stage of the selling process most likely involves ________.
A) cold calling in the absence of potential leads
B) fixing the final meeting with a customer to close a deal
C) gathering information about an organization and its buyers
D) showing how a company’s products can solve a customer’s problems
E) requesting an order from the customer after handling any minor objections
D) showing how a company’s products can solve a customer’s problems
Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children’s ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard?
A) prospecting
B) qualifying
C) follow-up
D) handling objections
E) presentation and demonstration
E) presentation and demonstration
In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying?
A) handling objections
B) closing
C) follow-up
D) prospecting and qualifying
E) preapproach
A) handling objections
In which of the following steps of the selling process does a salesperson ask a buyer for an order?
A) preapproach
B) qualifying
C) closing
D) prospecting
E) approach
C) closing
What is the last step in the selling process?
A) follow-up
B) closing
C) handling objections
D) presentation
E) prospecting
A) follow-up
In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order?
A) closing
B) follow-up
C) handling objections
D) presentation
E) prospecting
B) follow-up
ABM Connect is one of the largest Internet service providers in India. The company’s salespersons regularly contact buyers to make sure that the installation and services have been properly executed. Which of the following steps of the selling process does this scenario depict?
A) approach
B) presentation
C) closing
D) follow-up
E) preapproach
D) follow-up
Sales promotions targeted at ________ are called trade promotions.
A) government buyers
B) salespeople
C) business customers
D) final buyers
E) retailers and wholesalers
E) retailers and wholesalers
Which of the following statements is true of consumer promotions?
A) Their primary objective is to persuade resellers to carry a brand.
B) They include a wide range of tools like samples, coupons, and refunds.
C) They include the use of display allowances.
D) They are primarily used to generate business leads and reward customers.
E) They include the use of conventions and trade shows.
b) They include a wide range of tools like samples, coupons, and refunds
________ are offers of a trial amount of a product.
A) Cash refunds
B) Price packs
C) Rebates
D) Coupons
E) Samples
E) Samples
Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case?
A) rebates
B) samples
C) coupons
D) advertising specialties
E) price packs
B) samples
________ are certificates that save buyers money while they purchase specified products.
A) Price packs
B) Samples
C) Coupons
D) Point-of-purchase promotions
E) Premiums
C) Coupons
In which of the following promotion tools does a customer send a proof of purchase to a manufacturer, who then refunds part of the purchase price by mail?
A) rebate
B) coupon
C) sample
D) premium
E) price pack
A) rebate
Which consumer promotion tool involves selling two products for the price of one?
A) price packs
B) coupons
C) rebates
D) advertising specialties
E) samples
A) price packs
Kartoffel, a food processing company, offers a free toy inside every 50g packet of their potato chips. Which of the following promotion tools does this exemplify?
A) rebate
B) coupon
C) price pack
D) sample
E) premium
E) premium
Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using?
A) coupons
B) price packs
C) samples
D) advertising specialties
E) rebates
D) advertising specialties
Cream Bay has come out with a new range of ice creams. To promote the new products, Cream Bay has set up shopping mall kiosks to offer free ice cream samples to potential customers. Which promotion tool is Cream Bay most likely using?
A) rebates
B) price packs
C) point-of-purchase promotions
D) coupons
E) advertising specialties
C) point-of-purchase promotions
AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________.
A) event marketing program
B) premium
C) point-of-purchase promotion
D) trade promotion
E) price pack
A) event marketing program
Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions.
A) consumer
B) point-of-purchase
C) sales-force
D) trade
E) business
D) trade
What is the primary goal of trade promotions?
A) boosting long-term relationships with final buyers
B) motivating salespeople to attend trade shows
C) generating qualified business leads and contacts
D) rewarding customers for frequent purchases
E) persuading resellers to carry a brand
E) persuading resellers to carry a brand
Which of the following is a promotion tool used for trade promotions?
A) sweepstakes
B) price packs
C) conventions
D) rebates
E) allowances
E) allowances
Millie Foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. In this case, the promotion tool used by the company is referred to as a(n) ________.
A) price pack
B) rebate
C) sample
D) allowance
E) discount
D) allowance
________ are sales promotion tools used to generate new business leads, stimulate purchases, educate customers, and motivate salespeople.
A) Trade shows
B) Rebates
C) Allowances
D) Point-of-purchase promotions
E) Sweepstakes
A) Trade shows
Which of the following is most likely an example of a business promotion tool?
A) a free DVD for customers who purchase a new television at a retail store
B) a trade fair showcasing a new audio system developed by an electronics firm
C) a sweepstakes program inviting customers to enter for the chance to win a new car
D) a toaster being sold at half its list price for any buyer who purchases a food processor
E) a display allowance for retailers who feature a manufacturer’s product in a favorable manner
B) a trade fair showcasing a new audio system developed by an electronics firm
Conventions, trade shows, and sales contests are types of ________.
A) point-of-purchase promotions
B) trade promotions
C) advertising specialties
D) business promotions
E) premiums
D) business promotions

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