Chapter 17
PERSONAL SELLING AND SALES MANAGEMENT
Test Item Table
Level of Learning
Major Section of the Level 1: Definition Level 2: Conceptual Level 3: Application
Chapter (Knows Basic Terms (Understands Concepts & (Applies Principles)
& Facts) Principles)
Selling the Way 1
Customers Want to
Buy
(pp. 365)
Scope and Significance 2, 3, 6, 7, 10, 11, 12, 8, 9, 14, 141, 143 4, 5, 13, 142
of Personal Selling and 140
Sales Management
(pp. 366-367)
The Many Forms of 16, 17, 21, 22, 23, 27, 15, 18, 19, 20, 29 24, 25, 26, 31
Personal Selling 28, 30, 144
(pp. 368-369)
The Personal Selling 32, 33, 38, 44, 48, 49, 36, 37, 40, 43, 45, 46, 50, 59, 34, 35, 39, 41, 42, 47, 54, 55, 57,
Process: Building 51, 52, 53, 56, 58, 61, 60, 62, 63, 89, 90, 145, 146, 64, 65, 67, 69, 71, 72, 73, 74, 75,
Relationships 66, 68, 70, 76, 80, 81, 147 77, 78, 79, 82, 83, 86, 88
(pp. 370-374) 84, 85, 87, 148
The Sales 92, 93, 95, 96, 99, 106, 91, 94, 97, 98, 100, 101, 103, 102, 104, 105, 111, 121, 124,
Management Process 107, 108, 113, 114, 117, 109, 110, 112, 115, 116, 118, 129, 134, 135, 150, 154
(pp. 374-381) 119, 120, 122, 123, 126, 125, 128, 132, 136, 137, 149,
127, 130, 131, 133 151, 152, 153
Video Case: Reebok 139, 155 138
(pp. 383-385)
Note: Bold numbers indicate short essay questions.
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CHAPTER 17
PERSONAL SELLING AND SALES MANAGEMENT
MULTIPLE CHOICE QUESTIONS
17-1 CHAPTER OPENING EXAMPLE DEFINITION
Anne Mulcahy's task at Xerox Corporation is to:
a. manage its transactional website so as to eliminate channel conflict.
b. gain back its market share one customer at a time.
c. limit the number of goods and services the company provides.
d. increase the importance of the advertising element of its promotion mix.
e. open Xerox stores around the world.
Answer: b Page: 365
Rationale: As CEO of Xerox, Anne Mulcahy sees her task as “winning back market share one
customer at a time, one sale at a time.”
17-2 PERSONAL SELLING DEFINITION
Personal selling:
a. occurs when Keith sees an advertisement in Sports Illustrated.
b. is a one-way flow of communication between buyer and seller.
c. occurs when Becca sees a character on Friends eating a Snickers bar.
d. occurs when a Girl Scout asks you to buy a box of cookies.
e. is not part of the promotion mix.
Answer: d Page: 366
Rationale: Personal selling involves the two-way flow of communication between a buyer and
seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase
decision. Alternative a describes advertising. Personal selling is the two-way flow of
communication, not a one-way flow, between a buyer and seller. Alternative c describes product
placement.
17-3 PERSONAL SELLING DEFINITION
__________ is the two-way flow of communication between a buyer and seller, often in a
face-to-face encounter, designed to influence a person's or group's purchase decision.
a. Sales management
b. Personal selling
c. Sales promotion
d. Transformational selling
e. Marketing management
Answer: b Page: 366 Other Location: web
Rationale: Key term definition—personal selling
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17-4 PERSONAL SELLING APPLICATION
Which of the following statements is an example of personal selling?
a. A Tupperware dealer demonstrates the company's products to you and your friends in the
comfort of your own home.
b. You purchase an 18 carat gold wristwatch through an interactive computer network.
c. You watch a product demonstration through a video teleconferencing system.
d. You purchase a three-year subscription to Martha Stewart Living as the result of a telephone
call.
e. All of the above are examples of personal selling.
Answer: e Page: 366
Rationale: Personal selling is the two-way flow of communication between a buyer and seller,
often in a face-to-face encounter, designed to influence a person's or group's purchase decision.
With advances in telecommunications technology, personal selling takes place over the telephone,
through video-teleconferencing, and through interactive computer networks in addition to
in-person encounters.
17-5 PERSONAL SELLING APPLICATION
Which of the following does NOT describe a situation in which personal selling occurs?
a. a clerk at the jewelry counter
b. a telemarketer selling magazine subscriptions
c. a stockbrokers using a video teleconference to tell customers about a new retirement plan
d. a mail-order catalog featuring homemade candy
e. the host of a television home shopping program demonstrating gardening tools
Answer: d Page: 366
Rationale: Personal selling is the two-way flow of communication between a buyer and seller,
often in a face-to-face encounter, designed to influence a person's or group's purchase decision.
With advances in telecommunications technology, personal selling takes place over the telephone,
through video-teleconferencing, and through interactive computer networks in addition to
in-person encounters. A mail-order catalog does not provide a two-way flow of communication.
17-6 SALES MANAGEMENT DEFINITION
__________ involves planning the selling program and implementing and controlling the personal
selling effort of the firm.
a. Relationship marketing
b. Team selling
c. Personal selling
d. Sales management
e. Sales engineering
Answer: d Page: 366
Rationale: Key term definition—sales management
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17-7 SALES MANAGEMENT DEFINITION
Sales management is most accurately defined as the:
a. allocation of funds for promotion and advertising.
b. recruiting, hiring or firing, and training of a company's sales force.
c. segmentation and selection of target markets to be addressed by a company's sales force.
d. planning of the selling program and implementing and controlling of the personal selling effort
of the firm.
e. process of assigning territories and providing appropriate compensation for sales force
performance.
Answer: d Page: 366 Other Location: web
Rationale: Key term definition—sales management
17-8 SALES MANAGEMENT CONCEPTUAL
As part of performing their jobs, sales managers will:
a. set objectives for the sales force.
b. organize the sales force.
c. evaluate the performance of individual salespeople.
d. recruit, select, train, and compensate salespeople.
e. do all of the above.
Answer: e Page: 366
Rationale: Sales management involves planning the selling program and implementing and
controlling the personal selling effort of the firm. The tasks involved in managing personal selling
include (1) setting objectives; (2) organizing the sales force; (3) recruiting, selecting, training, and
compensating salespeople; and (4) evaluating the performance of individual salespeople.
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17-9 PERSONAL SELLING CONCEPTUAL
Which of the following statements does NOT describe a role personal selling plays in an
organization's marketing effort?
a. Salespeople are the critical link between organizations and their customers.
b. Salespeople match company interests with customer needs to satisfy both parties.
c. Salespeople play a dominant role in implementing an organization's push strategy.
d. Salespeople monitor investments in R&D and production facilities.
e. Salespeople are the organization in customers' eyes.
Answer: d Page: 367
Rationale: Personal selling serves three major roles in a firm’s overall marketing effort. First,
salespeople are the critical link between the firm and its customers. This role requires that
salespeople match company interests with customer needs to satisfy both parties in the exchange
process. Salespeople are the company in a consumer’s eyes. The represent what a company is or
attempts to be and are often the only personal contact a customer has with the company. Personal
selling may play a dominant role in a firm’s marketing program. While salespeople have an
interest in new and current products, they typically are not involved in decisions to invest in R&D
or production facilities.
17-10 RELATIONSHIP SELLING DEFINITION
Relationship selling:
a. makes customer value creation possible.
b. builds ties to customers based on a salesperson's attention and commitment to customer needs
over time.
c. focuses on creating long-term sales—not one-time customers.
d. involves mutual respect and trust among buyers and sellers.
e. is accurately described by all of the above.
Answer: e Page: 367
Rationale: Key term definition—relationship selling
17-11 RELATIONSHIP SELLING DEFINITION
__________ is the practice of building ties to customers based on a salesperson's attention and
commitment to customer needs over time.
a. Order processing
b. Order taking
c. Customer value creation
d. Relationship selling
e. Transactional selling
Answer: d Page: 367
Rationale: Key term definition—relationship selling
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17-12 RELATIONSHIP SELLING DEFINITION
Customer value creation is made possible by __________, the practice of building ties to customers
based on a salesperson's attention and commitment to customer needs over time.
a. conference selling
b. relationship selling
c. formula selling
d. seminar selling
e. team selling
Answer: b Page: 367
Rationale: Key term definition—relationship selling
17-13 RELATIONSHIP SELLING APPLICATION
Bombardier makes corporate jets and its strategy involves streamlining production activities,
maintaining its reputation for quality, and reducing its costs. It has developed the Continental, an
airplane assembled from just a dozen large component parts. All parts are supplied by carefully
chosen independent companies that share the development costs and market risk with Bombardier
as part of being its suppliers. To sell subassemblies to Bombardier, the salespeople for its supplier
companies used:
a. order processing.
b. order taking.
c. customer value creation.
d. relationship selling.
e. transactional selling.
Answer: d Page: 367 Other Location: web
Rationale: Relationship selling is the practice of building ties to customers based on a
salesperson's attention and commitment to customer needs over time. In this case the subassembly
producers share the development costs and market risk with Bombardier, so they are providing
attention and commitment to customer needs over time.
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17-14 RELATIONSHIP SELLING CONCEPTUAL
How does relationship selling create customer value?
a. by expressing periodic concerns about sizes of orders
b. by providing discounts based on the length of the customer relationship
c. by using a common sales promotion for each sales call
d. by identifying creative solutions to customer problems
e. by doing all of the above
Answer: d Page: 367
Rationale: Relationship selling is the practice of building ties to customers based on a
salesperson's attention and commitment to customer needs over time. Relationship selling involves
mutual respect and trust among buyers and sellers. Salespeople create customer value by
identifying creative solutions to customer problems; by easing the customer buying process; and by
following through after the sale.
17-15 TYPES OF PERSONAL SELLING CONCEPTUAL
Which of the following does NOT have a type of sales job?
a. salesclerk
b. outside order taker
c. order getter
d. inside order taker
e. account supervisor
Answer: e Page: 368-369
Rationale: A salesclerk, also called an inside order taker, answers simple questions, takes orders,
and completes transactions with customers. Outside order takers visit customers, arrange displays,
and replace inventory stocks of resellers, such as retailers or wholesalers. An order getter sells in a
conventional sense and identifies prospective customers, provides customers with information,
persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.
An account supervisor does not participate in personal selling.
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17-16 ORDER TAKER DEFINITION
An order taker is a:
a. salesperson who specializes in identifying, analyzing, and solving customer problems, but who
does not actually sell products and services.
b. salesperson who processes routine orders or reorders for products that were already sold by the
company.
c. salesperson who identifies prospective customers, provides customers with information,
persuades customers to buy, closes sales, and follows up on a customer's use of a product or
service.
d. person on the selling team who are responsible for obtaining qualified leads.
e. member of the sales support team who does not directly solicit orders but rather concentrates
on performing promotional activities and introducing new products.
Answer: b Page: 368
Rationale: Key term definition—order taker
17-17 ORDER TAKER DEFINITION
A(n) __________ is a salesperson who processes routine orders or reorders for products that were
already sold by the company.
a. order taker
b. order getter
c. missionary salesperson
d. sales engineer
e. team seller
Answer: a Page: 368
Rationale: Key term definition—order taker
17-18 ORDER TAKER CONCEPTUAL
Which type of salesperson would routinely be involved in an industrial straight rebuy situation?
a. an order taker
b. an outside order getter
c. a missionary salesperson
d. a sales engineer
e. all of the above
Answer: a Page: 368
Rationale: An order taker processes routine orders or reorders for products that were already sold
by the company—an industrial straight rebuy situation.
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17-19 ORDER TAKER CONCEPTUAL
Which form of personal selling has the lowest requirement for problem solving?
a. order taker
b. order getter
c. sales engineer
d. missionary salesperson
e. partnership salesperson
Answer: a Page: 368
Rationale: Order takers, for the most part, do little selling in a conventional sense and engage in
little problem solving with customers.
17-20 ORDER TAKER CONCEPTUAL
Which of the following activities is NOT typically a responsibility of an order taker?
a. processing of routine orders
b. replenishing inventory of resellers
c. soliciting new accounts
d. answering simple questions
e. completing customer transactions
Answer: c Page: 368 Other Location: web
Rationale: An order taker processes routine orders or reorders for products that were already sold
by the company. The primary responsibility of order takers is to preserve an ongoing relationship
with existing customers and maintain sales. Order solicitation is typically the responsibility of
order getters.
17-21 OUTSIDE ORDER TAKERS DEFINITION
Salespeople called outside order takers visit customers and __________ of resellers, such as
retailers and wholesalers.
a. survey the technical problems
b. identify targets of opportunity
c. replace inventory stocks
d. investigate materials handling procedures
e. discreetly observe personnel management
Answer: c Page: 368
Rationale: Text term definition—outside order takers
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17-22 INSIDE ORDER TAKERS DEFINITION
Inside order takers are also called:
a. managers.
b. directors.
c. missionaries.
d. salesclerks.
e. go-getters.
Answer: d Page: 368
Rationale: Text term definition—inside order takers
17-23 INBOUND TELEMARKETING DEFINITION
__________ is the use of toll-free telephone numbers that customers call to obtain information
about products and make purchases.
a. Inbound telemarketing
b. Outbound telemarketing
c. Outbound videoconferencing
d. Interactive marketing
e. Multichannel selling
Answer: a Page: 368 Other Location: web
Rationale: Text term definition—inbound telemarketing
17-24 INBOUND TELEMARKETING APPLICATION
On the television show West Wing, the president called the Butterball hotline to learn how to
prepare his Thanksgiving turkey and dressing. The toll-free number that Butterball uses each
holiday season to provide information on how to prepare turkey is an example of:
a. inbound telemarketing.
b. outbound telemarketing.
c. outbound videoconferencing.
d. interactive marketing.
e. multichannel selling.
Answer: a Page: 368
Rationale: Inbound telemarketing is the use of toll-free telephone numbers that customers call to
obtain information about products and make purchases, what the president was doing.
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17-25 INBOUND TELEMARKETING APPLICATION
When Margot called the toll-free number to order one dozen water lilies from the Van Ness Water
Gardens, she was using:
a. inbound telemarketing.
b. outbound telemarketing.
c. outbound videoconferencing.
d. interactive marketing.
e. multichannel selling.
Answer: a Page: 368
Rationale: Inbound telemarketing is the use of toll-free telephone numbers that customers call to
obtain information about products and make purchases, exactly what Margot was doing.
17-26 ORDER TAKER APPLICATION
On a recent shopping excursion at the local Target store, Jim Krause went from aisle to aisle
selecting the products he needed. He bought a variety of products, including shampoo, toothpaste,
a green plant for his office, and several pair of socks. Interestingly, the only salesperson Krause
encountered was the person at the checkout counter. The checkout person at Target is an example
of a(n):
a. inside order taker.
b. outside order taker.
c. inside order getter.
d. outside order getter.
e. missionary salesperson.
Answer: a Page: 368
Rationale: Inside order takers are also called sales clerks or order clerks. Inside order takers are
not actively involved in the creative personal selling process. Rather, these salespeople answer
simple questions of the consumer, check out the customer's purchases at the cash register, and
otherwise facilitate the completion of marketing exchange.
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17-27 ORDER GETTER DEFINITION
An order getter is a:
a. salesperson who specializes in identifying, analyzing, and solving customer problems, but who
does not actually sell products and services.
b. salesperson who processes routine orders or reorders for products that are presold by the
company.
c. salesperson who identifies prospective customers, provides customers with information,
persuades customers to buy, closes sales, and follows up on a customer's use of a product or
service.
d. person on the selling team who are responsible for obtaining qualified leads.
e. member of the sales support team who does not directly solicit orders but rather concentrates
on performing promotional activities and introducing new products.
Answer: c Page: 369
Rationale: Key term definition—order getter
17-28 ORDER GETTER DEFINITION
A(n) __________ is a salesperson who sells in a conventional sense and identifies prospective
customers, provides customers with information, persuades customers to buy, closes sales, and
follows up on a customer's use of a product or service.
a. order taker
b. order getter
c. missionary salesperson
d. sales engineer
e. team seller
Answer: b Page: 369
Rationale: Key term definition—order getter
17-29 ORDER GETTER CONCEPTUAL
Which of the following statements about order getters is true?
a. Order getters often replenish a retailer’s inventories.
b. Order getters handle orders obtained on inbound telemarketing.
c. Order getters require considerable product knowledge.
d. Order getters typically process reorders for products already sold by the company.
e. All of the above statements about order getters are true.
Answer: c Page: 369
Rationale: An order getter sells in a conventional sense and identifies prospective customers,
provides customers with information, persuades customers to buy, closes sales, and follows up on
customers’ use of a product or service. Alternatives a, b, and d describe activities of order takers.
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17-30 OUTBOUND TELEMARKETING DEFINITION
__________ is the practice of using the telephone rather than personal visits to contact customers.
a. Cross-docking
b. Cold canvassing
c. Buttonholing
d. Outbound telemarketing
e. Lobbying
Answer: d Page: 369
Rationale: Text term definition—outbound telemarketing
17-31 PERSONAL SELLING APPLICATION
Alvin Whitaker has just been hired by Snapple, a New York-based marketer of flavored beverages.
The firm wants Whitaker to call on supermarkets, gas stations, convenience stores, and other
grocery-type outlets in the Denver area where consumers purchase point-of-sale beverages.
Included in his job description are the following responsibilities: (1) stock and arrange
point-of-purchase displays of present customers—60 percent of his work week; and (2) receive
orders from customers and complete the transactions—40 percent of his work week. What form of
personal selling is Whitaker engaged in?
a. outside order taking
b. relationship selling
c. inside order taking
d. order getting
e. all of the above
Answer: a Page: 369 Other Location: web
Rationale: The person's job description involves outside order taking—stocking inventory and
routine order taking.
17-32 PERSONAL SELLING PROCESS DEFINITION
__________ consists of the following six stages: prospecting, preapproach, approach,
presentation, close, and follow-up.
a. The product marketing process
b. The strategic marketing process
c. The personal selling process
d. The consumer purchase decision process
e. Relational selling.
Answer: c Page: 370; Figure 17-2
Rationale: Key term definition—personal selling process
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17-33 PROSPECTING DEFINITION
At which stage in the personal selling process does a salesperson search for and qualify potential
customers?
a. prospecting
b. preapproach
c. introduction
d. initial canvassing
e. planning stage
Answer: a Page: 370; Figure 17-2
Rationale: Text term definition—prospecting
17-34 PROSPECTING APPLICATION
In the personal selling process, a telemarketer who calls and asks the head of the household, “Do
you have young children?” is engaged in:
a. stimulus-response selling.
b. closing the sale.
c. prospecting.
d. order taking.
e. creating a preapproach.
Answer: c Page: 370; Figure 17-2
Rationale: Prospecting is the search for and qualification of potential customers. Here, the
telemarketer is attempting to produce prospects through cold canvassing. This is the first step of
the personal selling process.
17-35 PROSPECTING APPLICATION
Encyclopedia Britannica pays to have a business reply card bound into magazines adjacent to its
advertisement. The ad asks people to return the card for more information on how its
encyclopedias can help children do better in school. Encyclopedia Britannica is engaging in:
a. cold-canvassing.
b. order taking.
c. sales follow-up.
d. gold-mining.
e. prospecting.
Answer: e Page: 370; Figure 17-2 Other Location: web
Rationale: Encyclopedia Britannica is looking for leads, the names of persons who may be
possible customers, or “prospecting,” which is the first step of the personal selling process.
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17-36 PROSPECTING CONCEPTUAL
During the prospecting stage of the personal selling process, salespeople will deal with:
a. leads, prospects, and customers.
b. leads, prospects, and clients.
c. leads, prospects, and qualified prospects.
d. leads, qualified prospects, and competitors' salespeople.
e. customers, qualified prospects, and competitors' salespeople.
Answer: c Page: 370; Figure 17-2
Rationale: A lead is the name of a person who may be a possible customer. A prospect is a
customer who wants or needs the product. If an individual wants the product, can afford to buy it,
and is the decision maker, this individual is a qualified prospect. When the individual becomes a
customer or client, the process has moved beyond the prospecting stage. Competitors' salespeople
are not involved.
17-37 PROSPECTING CONCEPTUAL
Which of the following statements describes the major difference between a prospect and a
qualified prospect?
a. Prospects are more likely than qualified prospects to become customers.
b. During the sales presentation, prospects are more likely to raise objections than qualified
prospects.
c. There are far more qualified prospects than prospects.
d. Qualified prospects have not only the need or desire for your product, but they have the ability
and authority to purchase it; prospects are missing either ability, or the authority to purchase.
e. The only difference between a prospect and a qualified prospect is that a qualified prospect has
purchased your product in the past, and a prospect has not.
Answer: d Page: 370-371; Figure 17-2
Rationale: A prospect is a customer who wants or needs the product. If an individual wants the
product, can afford to buy it, and is the decision maker, this individual is a qualified prospect. A
qualified prospect wants the product, is the decision maker, and has the ability to buy it.
17-38 QUALIFIED PROSPECT DEFINITION
A(n) __________ is an individual or organization that wants a product, can afford to buy it, and is
the decision maker:
a. opinion leader
b. lead
c. prospect
d. qualified prospect
e. gatekeeper
Answer: d Page: 371
Rationale: Text term definition—qualified prospect
17-39 COLD CANVASSING APPLICATION
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Louisa wanted to make some extra money, so she went door-to-door in her neighborhood asking
people if they had any small jobs that they could hire her to perform. Louisa had no idea of whether
anyone had any jobs for her, and she picked the doors she knocked on randomly. In terms of the
selling process, Louisa was engaged in __________ when she knocked on a door.
a. stimulus response selling
b. the preapproach
c. cold canvassing
d. closing
e. traffic generation
Answer: c Page: 371
Rationale: Cold canvassing is a form of prospecting in which the salesperson makes a sales call
without any previous knowledge of the person upon which the call is made. It is often criticized by
U.S. consumers and is now regulated. Louisa is doing cold canvassing, an approach to generating
leads of people that might want her to perform small jobs.
17-40 PROSPECTING CONCEPTUAL
During the prospecting stage of personal selling, a salesperson might be encouraged to do all of the
following EXCEPT:
a. look for more lead-generating sources.
b. participate in a trade show as an exhibitor.
c. try to find out the customers' important buying criteria.
d. use cold canvassing approach.
e. use a contest to generate leads.
Answer: c Page: 371; Figure 17-2
Rationale: During the prospect stage, leads and prospects are generated using several sources. For
example, advertising may contain a coupon or a toll-free number to generate leads. Exhibits at
trade shows, professional meetings, and conferences are other ways to generate leads. Lists and
directories are also used, as well as cold canvassing in person or by telephone. Identifying
important buying criteria is not done in the prospecting stage of the personal selling process, but in
the preapproach stage.
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17-41 COLD CANVASSING APPLICATION
Roman, Inc. is a company that makes gifts and collectibles. When its southeastern sales rep is
driving through a community on her way to make a sales call, she looks for small independent
florists and gift shops. When she finds a retailer she knows is not carrying Roman products, she
stops and makes a sales call. The company's sales rep uses ____ to find prospects.
a. stimulus response selling
b. the preapproach
c. cold canvassing
d. cross-docking
e. traffic generation
Answer: c Page: 371
Rationale: Cold canvassing is a form of prospecting in which the salesperson makes a sales call
without any previous knowledge of the person upon which the call is made.
17-42 PROSPECTING APPLICATION
Alice Faulkner is a professional salesperson. She earns her living by selling advertising for The
New York Times newspaper. In addition to selling advertising to her regular accounts, Alice is
responsible for generating new advertising accounts for the newspaper. In order to fulfill her
responsibilities, Faulkner works hard to make sure the potential customers she sells to are qualified
prospects. What criteria does Faulkner use to determine if the prospects she is selling to are
qualified prospects?
a. Qualified prospects have an interest in buying display advertising in the paper.
b. Qualified prospects have the money to buy display advertising in the paper.
c. Qualified prospects have the authority to make the decision to buy the advertising.
d. Qualified prospects have a need for the advertising, can afford to buy it, and have the authority
to make the purchase decision.
e. Qualified prospects read the newspaper daily and recognize that it is a good advertising
medium.
Answer: d Page: 371
Rationale: A qualified prospect wants the product, can afford to buy it, and is the decision-maker.
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17-43 COLD CANVASSING CONCEPTUAL
Which of the following statements about cold canvassing is true?
a. Federal regulations of cold canvassing require complete disclosure, curb early morning or late
night calling, and impose fines for violations.
b. Some 75 percent of U.S. consumers consider cold canvassing an intrusion on their privacy.
c. The refusal rate is high, but this approach can be successful.
d. Cold canvassing is criticized by U.S. consumers.
e. All of the above statements about cold canvassing are true.
Answer: e Page: 371
Rationale: Cold canvassing is a form of prospecting in which the salesperson makes a sales call
without any previous knowledge of the person upon which the call is made. Alternatives a, b, and d
describe concerns about cold canvassing while alternative c describes the main reason for it.
17-44 PREAPPROACH DEFINITION
At which stage in the personal selling process would the salesperson obtain further information on
the prospect and decide on the best method of approach?
a. prospecting
b. preapproach
c. approach
d. presentation
e. close
Answer: b Page: 371; Figure 17-2
Rationale: Text term definition—preapproach
17-45 PREAPPROACH CONCEPTUAL
What would occur at the preapproach stage in a business-to-business selling situation?
a. The order getter would make initial contact with the order taker.
b. The search for and qualification of prospects.
c. The initial meeting would occur and business would be discussed.
d. A decision would be made concerning whether the sale was to be a straight rebuy, a modified
rebuy, or a new buy.
e. The buying role of the prospect, important buying criteria, and the prospect's receptivity to a
presentation would be determined.
Answer: e Page: 371; Figure 17-2
Rationale: For business-to-business products the preapproach involves identifying the buying role
of a prospect, important buying criteria, and the prospect's receptivity to a formal or informal
presentation.
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17-46 PREAPPROACH CONCEPTUAL
Identifying the prospect's role in the buying center would be typically done at the __________
stage of the personal selling process
a. prospecting
b. preapproach
c. approach
d. presentation
e. closing
Answer: b Page: 371; Figure 17-2 Other Location: web
Rationale: The preapproach stage involves obtaining further information on the prospect (such as
their role in the buying center) and deciding on the best method of approach.
17-47 PREAPPROACH APPLICATION
During the __________ stage of personal selling, a salesperson would learn if her prospect liked to
talk about sports before getting down to business or preferred to waste no time with idle chatter.
a. prospecting
b. preapproach
c. approach
d. presentation
e. closing
Answer: b Page: 371; Figure 17-2
Rationale: The preapproach stage involves obtaining further information on the prospect (such as
such if they liked to talk about sports before business) and deciding on the best method of approach.
17-48 APPROACH DEFINITION
At the __________ stage in the personal selling process, a salesperson gains a prospect's attention,
stimulates interest, and builds the foundation for the sales presentation itself.
a. prospecting
b. preapproach
c. approach
d. qualifying
e. trial close
Answer: c Page: 371; Figure 17-2
Rationale: Text term definition—approach
1126
17-49 APPROACH DEFINITION
The __________ stage of the personal selling process involves the initial meeting between the
salesperson and prospect. Its objectives are to gain the prospect's attention, stimulate interest, and
build the foundation for the sales presentation itself and the basis for a working relationship.
a. prospecting
b. preapproach
c. approach.
d. close
e. follow-up
Answer: c Page: 372; Figure 17-2 Other Location: web
Rationale: Text term definition—approach
17-50 APPROACH CONCEPTUAL
At the __________ stage in the personal selling process, a salesperson's physical appearance,
speech habits, personality, and even hygiene will have the greatest effect.
a. prospecting
b. preapproach
c. approach
d. presentation
e. close
Answer: c Page: 372; Figure 17-2
Rationale: The approach stage involves the initial meeting between the salesperson and prospect.
The first impression is critical at this stage.
17-51 PRESENTATION DEFINITION
At the __________ stage in the personal selling process, a salesperson begins converting a prospect
into a customer by creating a desire for the product he or she is selling.
a. preapproach
b. approach
c. presentation
d. close
e. follow-up
Answer: c Page: 372; Figure 17-2 Other Location: web
Rationale: Text term definition—presentation
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17-52 STIMULUS-RESPONSE PRESENTATION DEFINITION
The __________ is a selling format based on the assumption that if given the appropriate stimulus
by the salesperson, the prospect will buy.
a. formula selling presentation
b. stimulus-response presentation
c. stimulus -satisfaction presentation
d. stimulus-hard sell presentation
e. persuasive sales presentation
Answer: b Page: 372
Rationale: Text term definition—stimulus-response presentation
17-53 STIMULUS-RESPONSE PRESENTATION DEFINITION
Suggestive selling is a type of:
a. formula selling presentation.
b. stimulus-response presentation.
c. needs-satisfaction presentation.
d. hard sell presentation.
e. formalized sales presentation.
Answer: b Page: 372
Rationale: Text term definition—stimulus-response presentation
17-54 SUGGESTIVE SELLING APPLICATION
A waitress at a Cracker Barrel restaurant is using __________ when she asks a family if they have
left any room for dessert.
a. inquiry selling
b. suggestive selling
c. formula selling
d. method selling
e. need-satisfaction selling
Answer: b Page: 372
Rationale: The stimulus-response format assumes that given the appropriate stimulus by the
salesperson, the prospect will buy. Offering the dessert is suggestive selling, a form of stimulus
response format.
1128
17-55 STIMULUS-RESPONSE FORMAT APPLICATION
A waitress at a Cracker Barrel restaurant is using __________ when she asks a family if they have
left any room for dessert.
a. stimulus-response selling
b. formula-selling
c. need-satisfaction
d. consultative selling
e. a transactional sales presentation
Answer: a Page: 372
Rationale: The stimulus-response format assumes that given the appropriate stimulus by the
salesperson, the prospect will buy. Offering the dessert is suggestive selling, a form of stimulus
response format.
17-56 FORMULA SELLING PRESENTATION DEFINITION
A selling format that assumes a presentation consists of information that must be provided in an
accurate, thorough, and step-by-step manner to inform the prospect is called a:
a. formula selling presentation.
b. stimulus-response presentation.
c. needs-satisfaction presentation.
d. hard sell.
e. straight rebuy pitch.
Answer: a Page: 372
Rationale: Text term definition—formula selling presentation
17-57 FORMULA SELLING PRESENTATION APPLICATION
When Tracy went to work as a new sales rep for Paradise Candles, she was told to use the following
speech in her sales presentations: “Hello, __(Mr./Mrs. customer name)__, my name is __(your
name here)__. I'm calling for Paradise Candles. We carry the best wax-burning mechanical candles
available in the commercial decorating industry. . . ." Paradise instructed Tracy to use:
a. a formula selling presentation.
b. a stimulus-response presentation.
c. a needs-satisfaction presentation.
d. suggestive selling.
e. consultative selling.
Answer: a Page: 372
Rationale: Formula selling is a format that consists of providing information in an accurate,
thorough, step-by-step manner to inform the prospect. One form of formula selling is the canned
sales presentation, which is a memorized, standardized message, conveyed to every
prospect—what Tracy is using here.
17-58 CANNED SALES PRESENTATION DEFINITION
1129
A memorized, standardized message conveyed to every prospect is called a:
a. stimulus-response presentation.
b. straight rebuy pitch.
c. canned sales presentation.
d. regulated sales format.
e. standardized sales format.
Answer: c Page: 372
Rationale: Text term definition—canned sales presentation
17-59 CANNED SALES PRESENTATION CONCEPTUAL
Which type of sales presentation would be suitable for an inexperienced, less knowledgeable
salesperson?
a. need-satisfaction presentation
b. canned sales presentation
c. stimulus-response presentation
d. cold canvassing
e. assumptive close
Answer: b Page: 372
Rationale: Formula selling is a format that consists of providing information in an accurate,
thorough, step-by-step manner to inform the prospect. One form of formula selling is the canned
sales presentation, which is a memorized, standardized message, conveyed to every prospect.
Canned sales presentations can be advantageous when the differences between prospects are
unknown, or with novice salespeople who are less knowledgeable about the product and selling
process than experienced salespeople.
1130
17-60 CANNED SALES PRESENTATION CONCEPTUAL
Which of the following statements describes a major drawback associated with canned sales
presentations?
a. There is too little information provided with a canned sales presentation.
b. A canned sales presentation is difficult for inexperienced salespeople to use.
c. A canned sales presentation allows little room for customer feedback.
d. A canned sales presentation is too expensive and time consuming.
e. With a canned sales presentation, there is a lack of consistency if more than one salesperson
calls on the same customer.
Answer: c Page: 372
Rationale: Formula selling is a format that consists of providing information in an accurate,
thorough, step-by-step manner to inform the prospect. One form of formula selling is the canned
sales presentation, which is a memorized, standardized message, conveyed to every prospect.
Although a canned sales presentation guarantees a comprehensive presentation, it lacks flexibility
and spontaneity, and more importantly, does not provide feedback from the prospective buyer, a
critical component of the communication process.
17-61 NEED-SATISFACTION PRESENTATION DEFINITION
The __________ is a selling format that emphasizes probing and listening by salespeople to
identify what prospective buyers are interested in, want, and need.
a. formula selling presentation
b. stimulus-response presentation
c. need-satisfaction presentation
d. modified rebuy presentation
e. straight rebuy presentation
Answer: c Page: 373
Rationale: Key term definition need-satisfaction presentation
17-62 NEED-SATISFACTION PRESENTATION CONCEPTUAL
Which type of personal selling presentation is the most consistent with the marketing concept?
a. stimulus-response presentation
b. formula selling presentation
c. need-satisfaction presentation
d. straight rebuy presentation
e. canned sales presentation
Answer: c Page: 373
Rationale: The need-satisfaction presentation emphasizes probing and listening by the
salesperson to identify needs and interests of prospective buyers. Once these are identified, the
salesperson tailors the presentation to the prospect and highlights product benefits that may be
valued by the prospect. This format, which emphasizes problem solving, is the most consistent
with the marketing concept and relationship building.
1131
17-63 NEED-SATISFACTION PRESENTATION CONCEPTUAL
Two selling styles associated with the need-satisfaction presentation format are:
a. adaptive selling and confrontational selling.
b. suggestive selling and supportive selling.
c. adaptive selling and suggestive selling.
d. adaptive selling and consultative selling.
e. suggestive selling and consultative selling.
Answer: d Page: 373
Rationale: Two selling styles are associated with the need-satisfaction format. Adaptive selling
involves adjusting the presentation to fit the selling situation, such as knowing when to offer
solutions and when to ask for more information. Knowledge of the customer and sales situation are
key ingredients for adaptive selling. Many consumer service firms such as brokerage and insurance
firms and consumer product firms like AT & T affectively apply this selling style. Consultative
selling focuses on problem identification, where the salesperson serves as an expert on problem
recognition and resolution. With consultative selling, problem solution options are not simply a
matter of choosing from an array of existing products or services. Rather, novel solutions often
arise, thereby creating unique value for the customer. Consultative selling is prominent in
business-to-business marketing.
17-64 NEED-SATISFACTION PRESENTATION APPLICATION
The car salesman was overheard having the following conversation with a prospective customer:
"What type of driving do you do?” “How many people will you usually have riding in your car?”
“Maybe, you should look at vans instead of sedans." From this information, you should recognize
the car salesman was using a:
a. stimulus-response presentation.
b. formula selling presentation.
c. need-satisfaction presentation.
d. persuasive selling presentation.
e. canned sales presentation.
Answer: c Page: 373
Rationale: The need-satisfaction presentation emphasizes probing and listening by the
salesperson to identify needs and interests of prospective buyers. Once these are identified, the
salesperson tailors the presentation to the prospect and highlights product benefits that may be
valued by the prospect. In this case, a larger vehicle may have provided the benefits the customer
was seeking.
1132
17-65 NEED-SATISFACTION PRESENTATION APPLICATION
Bob Doe, known as "Battery Bob", is the national sales manager for Duracell batteries. Duracell
has lost its market share lead to Eveready and the "Energizer Bunny". At present, Wal-Mart only
carries Eveready batteries. Battery Bob has "knocked on the door" for three years trying to get a
meeting with the Wal-Mart buyer for consumer electronics products. Last week, she agreed to one
presentation of a new marketing and advertising program developed by Duracell to "make
mince-meat out of that rabbit!" Based on the relationship developed thus far, Battery Bob believes
Wal-Mart requires a unique presentation to convince it that Duracell markets not only a better
battery, but that Duracell has the marketing savvy and creativity to surpass Eveready and resume its
position as the market leader. Which of the following sales presentations would have the greatest
likelihood of converting Wal-Mart into a customer?
a. suggestive selling
b. consultative selling
c. formula selling
d. need-satisfaction selling
e. adaptive selling
Answer: d Page: 373
Rationale: The need-satisfaction presentation emphasizes probing and listening by the
salesperson to identify needs and interests of prospective buyers. Once these are identified, the
salesperson tailors the presentation to the prospect and highlights product benefits that may be
valued by the prospect, in this case that Duracell markets not only a better battery, but also that
Duracell has the marketing savvy and creativity to surpass Eveready and resume its position as the
market leader. Alternative a is not correct because Battery Bob will only have one chance to
present to Wal-Mart; he does not have the opportunity to suggest appeal after appeal. Alternative b
is incorrect because Battery Bob already has diagnosed the problem and its solution. Alternative c
is not correct because a systematic recitation of product information is not the purpose of the sales
presentation. Alternative e is incorrect because Battery Bob already knows he can offer only one
solution and will not have the opportunity to ask for more information to tailor the sales
presentation to fit the selling situation.
17-66 ADAPTIVE SELLING DEFINITION
__________ involves adjusting the presentation to the selling situation, such as knowing when to
offer solutions and when to ask for more information.
a. Suggestive selling
b. Relationship selling
c. Adaptive selling
d. Consultative selling
e. Proactive selling
Answer: c Page: 373 Other Location: web
Rationale: Key term definition—adaptive selling
1133
17-67 ADAPTIVE SELLING APPLICATION
As a salesperson asks questions about a prospect's office operations, the prospect asks, "What I
really want is quality bond paper at the lowest price I can get." The salesperson stops asking
questions and pulls out a comparative price list that shows her company's paper is the lowest priced
on the market. The salesperson has engaged in:
a. adaptive selling.
b. suggestive selling.
c. formula selling.
d. consultative selling.
e. relationship selling.
Answer: a Page: 373
Rationale: Adaptive selling involves being flexible enough to know when to offer
solutions—pulling out the comparative price list showing her company’s paper is the lowest priced
on the market—and when to ask for more information.
17-68 CONSULTATIVE SELLING DEFINITION
Consultative selling:
a. focuses on problem identification, where the salesperson serves as an expert on problem
recognition and resolution.
b. involves hiring sales experts or consultants to help an organization in its personal selling
efforts.
c. is the activity involved in team selling.
d. emphasizes probing and listening by the salesperson to identify needs and interests of
prospective buyers.
e. involves adjusting the presentation by knowing when to offer solutions and when to ask for
more information.
Answer: a Page: 373
Rationale: Key term definition—consultative selling
1134
17-69 NEED SATISFACTION FORMAT APPLICATION
Davidson-Uphoff & Company sells ironware accessories for home and garden to retailers. The
salespeople for this company are trained to ask probing questions such as “What are the decorating
trends in this region?” and “What are you doing to take advantage of this trend?” This company
trains its salespeople to develop a sales presentation style that emphasizes the needs and wants of its
retailers. Once key needs have been uncovered, the salesperson is taught to tailor his or her sales
presentation so that the retailer can see why he or she should carry Davidson-Uphoff products.
Davidson-Uphoff's salespeople are learning the __________ selling format.
a. need-satisfaction
b. formula
c. stimulus-response
d. creative
e. problem resolution
Answer: a Page: 373
Rationale: The need-satisfaction presentation emphasizes probing and listening by the
salesperson to identify needs and interests of prospective buyers. Once these are identified, the
salesperson tailors the presentation to the prospect and highlights product benefits that may be
valued by the prospect. Salespeople using the need-satisfaction presentation format ask questions
and listen and then build their presentation around the customer's needs as indicated by their
responses to the questions—the situation in this case.
17-70 OBJECTIONS DEFINITION
Excuses for not making a purchase commitment or decision are called:
a. rationalizations.
b. constraints.
c. objections.
d. refusals.
e. qualifications.
Answer: c Page: 373
Rationale: Text term definition—objections
1135
17-71 HANDLING OBJECTIONS APPLICATION
Which of the following statements should the salesperson use to acknowledge and convert the
prospect's objection into a reason for buying?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "Yes, you're right, it is lighter, but that is done intentionally to make your work easier."
c. "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is so
popular it never gets to stay on the shelf that long anyway."
d. "Where did you hear that? Your source must have erroneous information."
e. "As I was saying, . . . "
Answer: b Page: 373
Rationale: This technique involves using the objection as a reason for buying, the situation with
alternative b.
17-72 HANDLING OBJECTIONS APPLICATION
Which of the following statements should the salesperson use to postpone a prospect's objection?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "Yes, you're right, it is lighter, but that is done intentionally to make your work easier."
c. "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is so
popular it never gets to stay on the shelf that long anyway."
d. “Where did you hear that? Your source must have erroneous information.”
e. "As I was saying, . . . "
Answer: a Page: 373
Rationale: The postpone technique described in alternative a is used when the objection will be
dealt with later in the presentation.
17-73 HANDLING OBJECTIONS APPLICATION
During the sales presentation, the prospect interrupted the salesperson's presentation and said,
"Wait a minute; this looks like it's going to cost too much." The salesperson responded, "I think
you'll be delighted with how relatively inexpensive this program is. I'll address the subject of price
in just a moment." Which objection-handling technique has the salesperson used?
a. Acknowledge and convert the objection.
b. Postpone.
c. Agree and neutralize.
d. Denial.
e. Ignore the objection.
Answer: b Page: 373
Rationale: The postpone technique is used when the objection will be dealt with later in the
presentation. “Postponing,” as a way of handling objections, is described in this example.
1136
17-74 HANDLING OBJECTIONS APPLICATION
Which of the following statements should the salesperson use to agree with and neutralize an
objection?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "Yes, you're right, it is lighter, but that is done intentionally to make your work easier."
c. "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is so
popular it never gets to stay on the shelf that long anyway."
d. "Where did you hear that? Your source must have erroneous information."
e. "As I was saying, . . . "
Answer: c Page: 373
Rationale: A salesperson agrees with the objection and then shows that it is unimportant with the
“agree and neutralize” method, used here.
17-75 HANDLING OBJECTIONS APPLICATION
Which of the following statements should the salesperson use to accept the objection?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "I think you have a point there; do you have any idea how we can improve that situation?"
c. "That's completely misconstrued. It does have a shorter shelf life, but I would say it was an
advantage because it never gets to stay on the shelf very long."
d. "Where did you hear that? Your source must have erroneous information."
e. "As I was saying, . . . "
Answer: b Page: 373
Rationale: Sometimes an objection is valid. The salesperson should allow the prospect to express
those views and attempt to stimulate further discussion on the objection in the “accept the
objection” strategy used here.
17-76 HANDLING OBJECTIONS DEFINITION
A purchasing agent who has previously ordered from your company refuses to reorder on the
grounds that "your deliveries are always late." You respond by courteously, "You're absolutely
right, and I am going to make it my business to be sure that never happens again." Which method
have you used to handle the customer's objection?
a. postponing
b. denying
c. agreeing and neutralizing
d. ignoring
e. converting
Answer: c Page: 373 Other Location: web
Rationale: Text term definition—agree and neutralize
1137
17-77 HANDLING OBJECTIONS APPLICATION
Which of the following statements should the salesperson use as a denial response to a prospect's
objection?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "I think you have a point there; do you have any idea how we can improve that situation?"
c. "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is so
popular it never gets to stay on the shelf that long anyway."
d. "Where did you hear that? Your source must have erroneous information."
e. "As I was saying, . . . "
Answer: d Page: 373
Rationale: When the prospect's objection is clearly untrue, it is wise to meet the objection head on
with a firm denial, the “denial” strategy in alternative d.
17-78 HANDLING OBJECTIONS APPLICATION
Which of the following statements should the salesperson use if he wished to ignore the objection?
a. "I think I might be able to explain that better to you after showing you this diagram."
b. "I think you have a point there; do you have any idea how we can improve that situation?"
c. "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is so
popular it never gets to stay on the shelf that long anyway."
d. "Where did you hear that? Your source must have erroneous information."
e. "As I was saying, . . . "
Answer: e Page: 373
Rationale: This technique of “ignore the objection” is used when it appears that the objection is a
stalling mechanism or is clearly not important to the prospect.
1138
17-79 HANDLING OBJECTIONS APPLICATION
Doug Ames sells Mercedes Benz automobiles. While making his sales presentation to a newly
qualified prospect, the prospect said, "Doug, I would really like to buy the car, but, you know, the
price of the automobile is just too high". In order to answer the prospect's objection, Ames
responded, "Sir, you are correct. The price of the Mercedes Benz automobile is high because of
what you are getting for that price. . . . ". Ames then proceeded to describe the quality of the
materials used in the car, the high resale value of the car, the dependability, and the prestige
associated with the Mercedes Benz. What technique did Ames use to handle the prospect's
objection?
a. the postpone technique
b. the agree and neutralize technique
c. the denial technique
d. the accept the objection technique
e. the acknowledge and convert technique
Answer: e Page: 373
Rationale: In this situation, “acknowledge and convert,” the salesperson attempts to turn the
client's objection into a reason for buying. This is accomplished by acknowledging the reason for
the objection and then providing information that shows the consumer that the reason for the
objection is actually a reason to buy. In this case the high price is a function of using the highest
quality materials, the high resale value of the car, the dependability, and the prestige associated
with the Mercedes Benz.
17-80 CLOSING DEFINITION
At which stage of the personal selling process would a salesperson obtain a purchase commitment
from the prospect?
a. approach
b. presentation
c. close
d. follow-up
e. sale
Answer: c Page: 374
Rationale: Text term definition—closing
1139
17-81 CLOSING DEFINITION
Three closing techniques are used when a salesperson believes a buyer is about ready to make a
purchase. They are __________ closes.
a. assumptive, trial, and presumptive
b. presumptive, trial, and final
c. trial, assumptive, and urgency
d. trial, final, and urgency
e. assumptive, presumptive, and final
Answer: c Page: 374
Rationale: Text term definition—closing
17-82 CLOSING APPLICATION
When a salesperson in the computer store asks, "Will that be a charge or cash?" he has executed
which stage of the selling process?
a. approach
b. presentation
c. handling objections
d. closing
e. follow-up
Answer: d Page: 374
Rationale: “Closing” in the selling process involves obtaining a purchase commitment from the
prospect—what the computer salesperson is doing in the example by asking for the payment type.
17-83 CLOSING APPLICATION
SRC Refrigeration sells refrigerated display cases for flowers. When its salesperson asks a retailer,
“Do you want to order the two-door model 350F or the Model 719F with the single door?” he has
executed which stage of the selling process?
a. approach
b. presentation
c. handling objections
d. close
e. follow-up
Answer: d Page: 374 Other Location: web
Rationale: “Closing” in the selling process involves obtaining a purchase commitment from the
prospect—what the refrigerated display case salesperson is doing in the example by asking which
specific model the prospect would like to order, a trial close.
1140
17-84 TRIAL CLOSE DEFINITION
A trial close:
a. asks the prospect to make a decision on some aspect of the purchase.
b. allows the prospect to use or lease the item on a limited temporary basis before making a final
commitment of purchase.
c. commits the prospect quickly by making references to the time limits of the purchase.
d. makes an exchange of money or other unit of value.
e. asks the prospect to make choices concerning delivery, warranty, or financing terms.
Answer: a Page: 374
Rationale: Text term definition—trial close
17-85 ASSUMPTIVE CLOSE DEFINITION
An assumptive close:
a. asks the prospect to make a decision on some aspect of the purchase.
b. allows the prospect to use or lease the item on a limited temporary basis before making a final
commitment of purchase.
c. commits the prospect quickly by making references to the time limits of the purchase.
d. makes an exchange of money or other unit of value.
e. asks the prospect to make choices concerning delivery, warranty, or financing terms.
Answer: e Page: 374
Rationale: Text term definition—assumptive close
17-86 ASSUMPTIVE CLOSE APPLICATION
SRC Refrigeration markets refrigerated display cases for flowers. At the end of her sales
presentation, the SRC salesperson asks, “Will you be wanting to make monthly payments of $75
with a 10 percent down payment or will you be writing a check for the full amount today?” She has
just executed a(n):
a. assumptive close.
b. consultative close.
c. proactive close.
d. urgency close.
e. adaptive.
Answer: a Page: 374
Rationale: An assumptive close asks the prospect to make choices concerning delivery, warranty,
or financing terms under the assumption that the sale has been finalized, the situation here.
1141
17-87 URGENCY CLOSE DEFINITION
An urgency close:
a. asks the prospect to make a decision on some financial aspect of the purchase.
b. allows the prospect to use or lease the item on a limited temporary basis before making a final
commitment of purchase.
c. commits the prospect quickly by making references to the time limits of the purchase.
d. makes an exchange of money or other unit of value.
e. asks the prospect to make choices concerning delivery, warranty, or financing terms.
Answer: c Page: 374
Rationale: Text term definition—urgency close
17-88 URGENCY CLOSE APPLICATION
Davidson-Uphoff & Company sells ironware accessories for home and garden to retailers. When
its salesperson told the prospect, “For this week only, we will pay the all the shipping costs for new
customers,” the salesperson was using a(n):
a. reactive close.
b. assumption close.
c. urgency close.
d. consultative close.
e. definitive close.
Answer: c Page: 374
Rationale: An urgency close is used to commit the prospect quickly by making reference to the
time limits of the purchase, the situation described in this example.
17-89 FOLLOW-UP CONCEPTUAL
At which stage in the personal selling process would the salesperson ensure the customer is
satisfied with the product?
a. assumptive close
b. final close
c. urgency close
d. follow-up
e. postpurchase
Answer: d Page: 374
Rationale: The follow-up stage includes making certain the customer's purchase has been
properly delivered and installed and difficulties experienced with the use of the item are addressed,
the situation described here.
1142
17-90 FOLLOW-UP CONCEPTUAL
The final stage in the personal selling process is the:
a. presentation.
b. assumptive close.
c. trial close.
d. urgency close.
e. follow-up.
Answer: e Page: 374
Rationale: The selling process does not end with the closing of a sale. Rather, professional selling
requires customer follow-up, the final stage of the personal selling process. The follow-up includes
making certain the customer’s purchase has been properly delivered and installed. Any difficulties
experienced with the use of the item are addressed. Attention to this stage of the selling process
solidifies the buyer-seller relationship.
17-91 SALES MANAGEMENT PROCESS CONCEPTUAL
The __________ consists of three interrelated functions: (1) sales plan formation, (2) sales plan
implementation, and (3) evaluation of the sales force.
a. sales management process
b. sales rep hiring process
c. marketing plan process
d. strategic plan process
e. follow-up process.
Answer: a Page: 374; Figure 17-3
Rationale: As shown in Figure 17-3, the sales management process consists of three interrelated
functions: (1) sales plan formation, (2) sales plan implementation, and (3) evaluation of the sales
force.
1143
17-92 SALES PLAN DEFINITION
A sales plan is a(n):
a. method of determining a fair and equitable compensation plan that considers more than simply
sales revenue; it includes a weighted system for different types of items or different sized
territories to cover.
b. method of identifying the target market that most closely meets the special skills of the sales
force.
c. formula-based method for determining the size of a sales force that integrates the number of
customers served, call frequency, call length, and available selling time to arrive at a sales
force size figure.
d. statement describing what is to be achieved and where and how the selling effort of salespeople
is to be directed.
e. evaluation methodology that specifies times and places for direct communications between
salespeople and their supervisor.
Answer: d Page: 375 Other Location: web
Rationale: Key term definition—sales plan
17-93 SALES PLAN DEFINITION
Formulating the sales plan involves three tasks. The first step is __________. It is following by
organizing the sales force and developing account management policies.
a. hiring sales reps
b. developing the marketing plan
c. establishing the budget
d. setting objectives
e. strategic planning
Answer: d Page: 375
Rationale: Key term definition—sales plan
17-94 SALES PLAN CONCEPTUAL
Which of the following is NOT a sales manager's task in the implementation stage of the sales
management process?
a. sales force organization
b. sales force recruitment
c. sales force training
d. sales force motivation
e. sales force compensation
Answer: a Page: 375; Figure 17-3
Rationale: The sales plan implementation step of the sales management process includes (1) sales
force recruitment and selection, (2) sales force training, and (3) sales force motivation and
compensation. Sales force organization occurs in the sales plan formulation stage of the sales
management process, not in the implementation phase.
1144
17-95 SALES PLAN DEFINITION
Which of the following tasks are involved in the formulation stage of the sales management
process?
a. recruiting and selecting the sales force, training the sales force, and compensating the sales
force
b. developing account management policies, implementing the account management policies,
correcting the account management policies
c. setting sales objectives, organizing the sales force, and developing account management
policies
d. organizing the sales force, quantitative assessment, and follow-up
e. organizing the sales force, setting motivational sales quotas, and evaluating the individual
members of the sales force
Answer: c Page: 375; Figure 17-3
Rationale: Formulating the sales plan is the most basic of the three sales management functions.
The sales plan is a statement describing what is to be achieved and where and how the selling effort
of salespeople is to be directed. Formulating the sales plan involves three tasks: (1) setting
objectives, (2) organizing the sales force, and (3) developing account management policies.
17-96 OUTPUT-RELATED SALES OBJECTIVES DEFINITION
Output-related sales objectives focus on:
a. dollar or unit sales volume.
b. product knowledge.
c. number of sales calls.
d. sales expenses.
e. selling and communication skills.
Answer: a Page: 375
Rationale: Output-related sales objectives focus on dollar or unit sales volume, number of new
customers added, and profit.
17-97 OUTPUT-RELATED SALES OBJECTIVES CONCEPTUAL
The sales manager told the salesperson, "Increase sales volume for the second quarter 5 percent
over the sales volume of the first quarter." The sales manager used a __________ sales objective.
a. output-related
b. input-related
c. behavior-related
d. canvassing
e. market-related
Answer: a Page: 375
Rationale: Output-related sales objectives focus on dollar or unit sales volume, number of new
customers added, and profit.
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17-98 INPUT-RELATED SALES OBJECTIVES CONCEPTUAL
The sales manager instructed the salesperson to "make five hundred customer contacts between
January 1st and July 1st." The sales manager used a(n) __________ sales objective.
a. output-related
b. input-related
c. behavior-related
d. canvassing
e. market-related
Answer: b Page: 375
Rationale: Input-related sales objectives emphasize the number of sales calls and sales expenses.
Canvassing is contacting potential prospects—customers.
17-99 BEHAVIORALLY-RELATED SALES OBJECTIVES DEFINITION
Which of the following is an example of a behaviorally-related sales objective?
a. to improve communication skills
b. to increase product knowledge
c. to improve selling skills
d. to provide a higher level of customer service
e. all of the above
Answer: e Page: 375 Other Location: web
Rationale: A third type of objective is behaviorally related and is typically specific for each
salesperson: his or her product knowledge, customer service, and selling and communication
skills.
17-100 SALES FORCE ORGANIZATIONAL STRUCTURE CONCEPTUAL
The three organizational sales force structures a company may use if it chooses to employ its own
sales force are based on:
a. dollar volume, geography, and customer.
b. geography, customer, and product.
c. geography, market size, and product.
d. market size, product, and customer.
e. dollar volume, market size, and product.
Answer: b Page: 375
Rationale: Establishing a selling organization is the second task in formulating the sales plan.
Companies organize their sales force on the basis of (1) geography, (2) customer, or (3) product or
service.
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17-101 GEOGRAPHIC SALES ORGANIZATION CONCEPTUAL
Which sales force organizational structure minimizes travel time, expenses, and duplication of
effort?
a. management
b. customer
c. product
d. geographical
e. market
Answer: d Page: 375
Rationale: A geographical structure is the simplest organization, where the United States, or
indeed the globe, is first divided into regions and each region is divided into districts or territories.
Sales people are assigned to each district with defined geographical boundaries and call on all
customers and represent all products sold by the company. Organizing the sales force
geographically reduces the average distance salespeople have to travel, minimizes expenses, and
duplication of selling effort.
17-102 GEOGRAPHIC SALES ORGANIZATION APPLICATION
The office memo read, "Sales representatives from Kansas, Nebraska, Iowa, and Missouri will
report directly to the regional manager." From this information, it would appear the company that
issued the memo uses a ___________ organization for its sales force.
a. profit
b. customer
c. product
d. geographical
e. market
Answer: d Page: 375
Rationale: Geographical sales organization takes a total area on the globe such as the United
States and divides it into regions and then divides each region into districts or territories, the
situation described in the example.
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17-103 CUSTOMER SALES ORGANIZATION CONCEPTUAL
The best organizational structure to use when different buying organizations have different needs is
a __________ sales organization.
a. geographic
b. customer
c. product
d. profit-based
e. market size
Answer: b Page: 375
Rationale: When different types of buyers have different needs, a customer sales organizational
structure is used. In practice, this means that a different sales force calls on each separate type of
buyer or marketing channel. More effective, specialized customer support and knowledge are
provided to buyers, though often this leads to higher administrative costs and some duplication of
selling effort, because two separate sales forces are used to represent the same products.
17-104 CUSTOMER SALES ORGANIZATION APPLICATION
Clauss Cutlery sells knives to the floral industry. These knives are designed to slice through foam
blocks, cut wire, and perform other similar tasks. It also sells cutting utensils to the
meat-processing industry. These large heavy-duty blades can saw through carcasses quickly.
Clauss also sells a line of cutting tools to people in the woodworking industry for sawing and
shaping wood cutouts. Clauss Cutlery should use a __________ sales organization.
a. production
b. market size
c. customer
d. profit-based
e. geographic
Answer: c Page: 375 Other Location: web
Rationale: When different types of buyers have different needs, a customer sales organizational
structure is used. In practice, this means that a different sales force calls on each separate type of
buyer or marketing channel. More effective, specialized customer support and knowledge are
provided to buyers, though often this leads to higher administrative costs and some duplication of
selling effort, because two separate sales forces are used to represent the same products. Clauss has
3 very different types of customers, so a customer sales organization would be used.
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17-105 PRODUCT SALES ORGANIZATION APPLICATION
ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At
one time, ABB had a sales force that sold only generators, one that only sold boilers, another that
only sold transformers, and so forth. Each of its salespeople was an expert on the items he or she
sold. Its sales force was organized by:
a. workload.
b. customer type.
c. geography.
d. product.
e. customer size.
Answer: d Page: 376
Rationale: When specific knowledge is required to sell a product (the situation here), then a
product sales organization is used. The primary advantage of this structure is that salespeople can
develop expertise with technical characteristics, applications, and selling methods associated with a
particular product or family of products. However, this structure also produces high administrative
costs and duplication of selling effort because two company salespeople may call on the same
customer.
17-106 MAJOR ACCOUNT MANAGEMENT DEFINITION
__________ is the practice of using team selling to focus on important customers so as to build
mutually beneficial, long-term relationships.
a. Relationship marketing
b. Relationship selling
c. Customer account management
d. Major account management
e. Team selling
Answer: d Page: 375-376
Rationale: Key term definition—major account management
17-107 MAJOR ACCOUNT MANAGEMENT DEFINITION
__________ is a variation of the customer organizational structure.
a. Sales management
b. Formula selling
c. Adaptive selling
d. Consultative selling
e. Major account management
Answer: e Page: 375
Rationale: Key term definition—major account management
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17-108 ACCOUNT MANAGEMENT POLICIES DEFINITION
__________ policies specify whom salespeople should contact, what kinds of selling and customer
service activities should be engaged in, and how these activities should be carried out.
a. Sales-response
b. Territorial management
c. Account management
d. Customer contact
e. Relationship upgrade
Answer: c Page: 376
Rationale: Key term definition—account management policies
17-109 ACCOUNT MANAGEMENT POLICIES CONCEPTUAL
Which of the following activities is NOT a part of account management policies?
a. specifying whom salespeople should contact
b. determining the types of selling activities
c. preparing a job analysis
d. deciding how sales activities will be carried out
e. determining the types of customer services
Answer: c Page: 376
Rationale: Account management policies specify whom salespeople should contact, what kinds of
selling and customer service activities should be engaged in, and how these activities should be
carried out. Preparing a job analysis is part of the sales plan implementation, not account
management.
17-110 MARKETING NEWSNET CONCEPTUAL
Cross-functional teams provide customer value by:
a. specifying whom salespeople should contact.
b. determining the types of selling activities.
c. finding better ways of doing things and improving relationships.
d. deciding how sales activities will be carried out.
e. determining the types of product distribution.
Answer: c Page: 376
Rationale: Cross-functional teams of professionals work with customers to improve relationship,
find better ways of doing things, and create and sustain value for their customers. The team may
include various types of professionals such as chemists, engineers, sales and marketing executives,
depending on the customer problem to be solved.
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17-111 ACCOUNT MANAGEMENT POLICY GRID APPLICATION
When using an account management policy grid, an account would typically be contacted by a
telemarketer or direct mail if it has a:
a. high opportunity rating, and the sales organization has a strong position.
b. low opportunity rating, and sales organization has a strong position.
c. high opportunity rating, and there is a likelihood that a strong sales position can be achieved.
d. low opportunity rating, and the sales organization has a weak position.
e. high opportunity rating, and the sales organization has strong position.
Answer: d Page: 377; Figure 17-4
Rationale: For accounts, which fall into the low account opportunity and low competitive position
cell of the account management policy grid, consideration should be given to replacing personal
calls with telephone sales or direct mail. This is the situation in the example here.
17-112 SALES PLAN IMPLEMENTATION DEFINITION
The three major tasks involved in the implementation stage of the sales management process are:
a. sales force recruitment and selection, sales force training, and sales force motivation and
compensation.
b. developing account management policies, implementing the account management policies,
correcting the account management policies.
c. setting sales objectives, organizing the sales force, and developing account management
policies.
d. organizing the sales force, quantitative assessment, and follow-up.
e. organizing the sales force, setting motivational sales quotas, and evaluating the individual
members of the sales force.
Answer: a Page: 377; Figure 17-3 Other Location: web
Rationale: The three major tasks involved in implementing a sales plan are (1) sales force
recruitment and selection, (2) sales force training, and (3) sales force motivation and compensation.
17-113 JOB ANALYSIS DEFINITION
Applied to recruiting and selecting salespeople, a __________ is a study of a particular sales
position, including how the job is to be performed and the tasks that make up the job.
a. job description
b. sales plan
c. job analysis
d. performance contract
e. personal performance plan
Answer: c Page: 377
Rationale: Text term definition—job analysis
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17-114 JOB DESCRIPTION DEFINITION
Applied to recruiting and selecting salespeople, a __________ is a written document that describes
job relationships and requirements that characterize each sales position.
a. job description
b. sales plan
c. job analysis
d. performance contract
e. personal performance plan
Answer: a Page: 378
Rationale: Text term definition—job description
17-115 SALES FORCE TRAINING CONCEPTUAL
Which of the following statements is true about sales force training?
a. The salesperson only has to go through it once.
b. Sales training covers selling practices.
c. Individual instruction is not important.
d. On-the-job training is the most popular type of training.
e. All of the above statements are true about sales force training.
Answer: d Page: 378
Rationale: Sales force training is an ongoing process that affects both new and seasoned
salespeople. Sales training covers much more than selling practices. For example, IBM Global
Services salespeople, who sell consulting and various information technology services, take at least
two weeks of in-class and Web-based training on both consultative selling and the technical aspects
of business. On-the-job training is the most popular type of training, followed by individual
instruction taught by experienced salespeople.
17-116 SALES FORCE MOTIVATION CONCEPTUAL
To produce a motivated salesperson, research suggests all of the following need to be present
EXCEPT:
a. clear superior-subordinate relationships with supervisor.
b. a personal need for achievement.
c. effective sales management practices.
d. proper compensation, incentives, or rewards.
e. clear job description.
Answer: a Page: 378
Rationale: Research on salesperson motivation suggests that (1) a clear job description, (2)
effective sales management practices, (3) a personal need for achievement, and (4) proper
compensation, incentives, or rewards will produce a motivated salesperson.
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17-117 SALES FORCE MOTIVATION DEFINITION
Research on salesperson motivation suggests that what produces motivated salespeople is a clear
job description, effective sales management practices, a personal need for achievement, and:
a. a swift kick in the butt now and then.
b. freedom to do one's own thing.
c. an unlimited expense account.
d. proper compensation, incentives, or rewards.
e. a higher-than-average salary.
Answer: d Page: 378 Other Location: web
Rationale: Research on salesperson motivation suggests that (1) a clear job description, (2)
effective sales management practices, (3) a personal need for achievement, and (4) proper
compensation, incentives, or rewards will produce a motivated salesperson.
17-118 U.S. SALES FORCE COMPOSITION CONCEPTUAL
Which of the following statements accurately describes the composition of the U.S. sales force?
a. The fastest growth in sales positions held by an ethnic group belongs to Asians.
b. Whites have had the slowest growth in sales positions.
c. Males and females each make up 50 percent of the U.S. sales force.
d. Whites make up 80 percent of the U.S. sales force.
e. All of the above statements are true regarding the composition of the U.S. sales force.
Answer: e Page: 378; Figure 17-5
Rationale: As shown in Figure 17-5, the sales force composition by sex is 50 percent male and
female; Whites make up 80 percent of the sales force; Asians have increased in the sales force by
310 percent since 1985, the highest growth rate of any racial/ethnic group.
17-119 STRAIGHT SALARY COMPENSATION PLAN DEFINITION
A straight salary compensation plan is a compensation plan:
a. that assigns the same percentage of commission regardless of a product's size or value,
frequency of sale, or difficulty level of sales effort.
b. in which a salesperson is paid a specified salary plus a commission and/or bonus on sales or
profits he or she generates.
c. for determining a fair and equitable compensation plan that includes a weighted system for
different types of items or different-sized territories.
d. in which the salesperson is paid a fixed fee per week, month, or year.
e. in which a salesperson's earnings are directly tied to the sales or profits he or she generates.
Answer: d Page: 379
Rationale: Text term definition—straight salary compensation plan
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17-120 STRAIGHT SALARY COMPENSATION PLAN DEFINITION
With a __________, a salesperson is paid a fixed fee per week, month, or year.
a. sales response compensation plan
b. combination compensation plan
c. straight salary compensation plan
d. straight commission compensation plan
e. sales function compensation plan
Answer: c Page: 379
Rationale: Text term definition—straight salary compensation plan
17-121 STRAIGHT SALARY COMPENSATION PLAN APPLICATION
When Joshua was hired to work for Bush Refrigeration Company he was told, "The sales training
program is 18 weeks, and we'll pay you $750 per week during that time." While in training, the
company used a __________ to compensate Joshua for his time and effort.
a. sales response compensation plan
b. combination compensation plan
c. straight salary compensation plan
d. straight commission compensation plan
e. sales function compensation plan
Answer: c Page: 379
Rationale: Under a straight salary compensation plan, a salesperson is paid a fixed fee per week,
month or year. This is the sales compensation plan used for Joshua while he is in training.
17-122 STRAIGHT COMMISSION COMPENSATION PLAN DEFINITION
A straight commission compensation plan is a compensation plan:
a. that assigns the same percentage of commission regardless of a product's size or value,
frequency of sale, or difficulty level of sales effort.
b. in which a salesperson is paid a specified salary plus a commission and/or bonus on sales or
profits he or she generates.
c. for determining fair and equitable compensation that includes a weighted system for different
types of items or different sized territories.
d. in which the salesperson is paid a fixed amount per week, month, or year.
e. in which a salesperson's earnings are directly tied to the sales or profits he or she generates.
Answer: e Page: 379
Rationale: Text term definition—straight commission compensation plan
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17-123 STRAIGHT COMMISSION COMPENSATION PLAN DEFINITION
With a __________, a salesperson's earnings are directly tied to sales or profits generated.
a. sales response compensation plan
b. combination compensation plan
c. straight sales compensation plan
d. straight commission compensation plan
e. sales function compensation plan
Answer: d Page: 379
Rationale: Text term definition—straight commission compensation plan
17-124 STRAIGHT COMMISSION COMPENSATION PLAN APPLICATION
When after completing an 18-week sales training program, Joshua was told, "You will be paid 4
percent on net dollar volume up to $10 million. Sales in excess of $10 million command a rate of 6
percent." The company Joshua works for is using a __________ for him after he completed his
sales training program.
a. sales response compensation plan
b. combination compensation plan
c. straight sales compensation plan
d. straight commission compensation plan
e. sales function compensation plan
Answer: d Page: 379
Rationale: A compensation plan where a salesperson's earnings are directly tied to his or her sales
or profit generated is called a straight commission compensation plan, the situation for Joshua after
he completed sales training.
17-125 STRAIGHT COMMISSION COMPENSATION PLAN CONCEPTUAL
Which form of compensation provides salespeople with the greatest incentive to make sales?
a. straight salary compensation plan
b. straight commission compensation plan
c. combination compensation plan
d. weighted compensation plan
e. delayed compensation plan
Answer: b Page: 379
Rationale: With a straight commission compensation plan, a salesperson’s earnings are directly
tied to the sales or profit generated. Straight commission provides the maximum amount of
incentive to make sales. By increasing commission rates for particular products, sales managers can
encourage salespeople to sell certain items.
1155
17-126 COMBINATION COMPENSATION PLAN DEFINITION
A combination compensation plan is a compensation plan:
a. that assigns the same percentage of commission regardless of a product's size or value,
frequency of sale, or difficulty level of sales effort.
b. in which a salesperson is paid a specified salary plus a commission on sales or profits he or she
generates.
c. for determining fair and equitable compensation that a includes weighted system for different
types of items or different sized territories.
d. in which the salesperson is paid a fixed amount per week, month, or year.
e. is accurately described by none of the above.
Answer: b Page: 379
Rationale: Text term definition—combination compensation plan
17-127 COMBINATION COMPENSATION PLAN DEFINITION
With a __________, a salesperson is paid a specified salary plus a commission on sales or profits
generated.
a. sales response compensation plan
b. combination compensation plan
c. straight sales compensation plan
d. straight commission compensation plan
e. sales function compensation plan
Answer: b Page: 379
Rationale: Text term definition—combination compensation plan
17-128 COMBINATION COMPENSATION PLAN CONCEPTUAL
The most preferred type of compensation plan for salespeople is a:
a. straight salary compensation plan.
b. straight commission compensation plan.
c. combination compensation plan.
d. weighted compensation plan.
e. delayed compensation plan.
Answer: c Page: 379
Rationale: Combination compensation plans are most preferred by salespeople and attempt to
build on the advantages of salary and commission plans while reducing potential shortcomings of
each.
1156
17-129 COMBINATION COMPENSATION PLAN APPLICATION
White Chemical Company is examining its selling strategy and one of the issues it believes needs
attention is the role its sales staff has in undertaking sales support (non-selling) activities; yet it
wants to keep the salespeople directed towards increasing sales for the next year. If you did NOT
know which plan it presently uses, what advice would you give?
a. Give a raise to every salesperson as a motivating tool.
b. Provide a base salary and a commission on sales generated.
c. Provide year-end bonuses to reward the sales force personnel who perform the best.
d. Offer straight salaries and give raises if the sales go up.
e. Offer straight commission and if sales improve, raise the commission rates.
Answer: b Page: 379
Rationale: Since not all desired results can be measured by sales generated, a salary base is needed
to encourage the nonselling activities of the sales force, so the combination compensation plan in
alternative b is the best alternative.
17-130 QUANTITATIVE ASSESSMENTS DEFINITION
Quantitative assessments of sales performance may be based on input-related objectives set forth in
the sales plan, such as those involving:
a. number of new accounts generated.
b. selling expenses.
c. orders produced compared with sales calls made.
d. sales produced.
e. all of the above.
Answer: b Page: 379
Rationale: Quantitative assessments of sales performance may be based on input-related
objectives set forth in the sales plan, such as those involving sales calls, selling expenses, and
account management policies. Alternatives a, c, and d describe output-related objectives.
17-131 QUANTITATIVE ASSESSMENTS DEFINITION
Quantitative assessments of sales performance may be based on output-related measures, such as:
a. sales produced.
b. accounts generated.
c. profit achieved.
d. orders produced compared with calls made.
e. all of the above.
Answer: e Page: 379
Rationale: Output measures focus on the results obtained and include sales produced, accounts
generated, profit achieved, and orders produced compared with calls made. Dollar sales volume,
last year/current year sales ratio, the number of new accounts, and sales of specific products are
frequently used measures when evaluating salesperson output.
1157
17-132 BEHAVIORAL EVALUATION CONCEPTUAL
Which of the following is NOT an example of behavioral measures used to evaluate salespeople?
a. assessment of salesperson's attitude and attention to customers
b. product knowledge and selling and communication skills
c. appearance and professional demeanor
d. accounts generated and profits achieved
e. customer satisfaction
Answer: d Page: 379-380 Other Location: web
Rationale: Behavioral measures are also used to evaluate salespeople and include assessments of a
salesperson’s attitude, attention to customers, product knowledge, selling and communication
skills, appearance, and professional demeanor. Customer satisfaction is also included by about 60
percent of U.S. companies. Accounts generated and profits achieved are output measures, are
quantitative assessments, and are NOT behavioral measures.
17-133 SALES FORCE AUTOMATION DEFINITION
__________ is the use of technology designed to make the sales function more effective and
efficient.
a. Decentralization
b. Field computerization
c. Sales force automation
d. Commercial hacking
e. Media convergence
Answer: c Page: 380
Rationale: Key term definition—sales force automation
17-134 SALES FORCE AUTOMATION APPLICATION
Before the salespeople for Ascom Timeplex, Inc., set out to make a sales call, they use their laptop
comuters to dial into the company's database. There, the salespeople can retrieve the latest price
lists, engineering and configuring notes for each customer, and status reports on previous orders.
The laptops can also be used to send customer orders to Ascom Timeplex headquarters in New
Jersey. __________ helps make the Ascom Timeplex salespeople more efficient and more
effective.
a. Decentralization
b. Field computerization
c. Sales force automation
d. A combination compensation plan
e. Media convergence
Answer: c Page: 380 Other Location: web
Rationale: Sales force automation (SFA) is the use of technology designed to make the sales
function more effective and efficient, the situation described here.
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17-135 SALES FORCE AUTOMATION APPLICATION
Compaq Computer Corporation shifted its entire U.S. sales force into home offices and saved $10
million in staff salaries and office rent despite spending $8,000 to equip each home office with a
notebook computer, fax/copier, cellular phone, two phone lines, and office furniture. Such
decreased selling costs are among the benefits of:
a. personal selling.
b. direct marketing.
c. sales force automation.
d. decentralization.
e. account management policies.
Answer: c Page: 381
Rationale: Sales force automation (SFA) is the use of technology designed to make the sales
function more effective and efficient, the situation described here with Compaq.
17-136 SALES FORCE COMPUTERIZATION CONCEPTUAL
Computer technology has become an integral part of field selling. Which of the following ways are
laptops used by field sales personnel?
a. process orders
b. plan time usage
c. forecast sales
d. transmit the order
e. all of the above
Answer: e Page: 380
Rationale: The alternatives listed are used by Godiva Chocolates salespeople, for example.
Toshiba’s sales force uses laptops to provide interactive presentations for their medical equipment.
17-137 SALES FORCE COMMUNICATION CONCEPTUAL
Which of the following are true for sales force communication?
a. Some salespeople equip minivans with a complete sales office.
b. Cell phones technology allows data as well as voice transmission.
c. Salespeople use their company’s Intranet to download client material.
d. Company Intranet’s offer training classes that salespeople can take anytime, anywhere.
e. All of the above are true.
Answer: e Page: 381
Rationale: Advances in communication and computer technologies have made possible the
mobile and home sales office. Some salespeople now equip minivans with a fully functional desk,
swivel chair, light, computer, printer, fax machine, cellular phone and a satellite dish. Salespeople
are using their company’s Intranet for a variety of purposes including downloading client material,
marketing content, account information, technical papers, and competitive profiles. Training
classes are also given via the Intranet.
17-138 VIDEO CASE APPLICATION
1159
Reebok's commitment to relationship selling is evident in its:
a. frequent sales calls on its retailers.
b. continuous innovative activities.
c. gathering of competitive intelligence.
d. reactive approach to establishing channels of distribution.
e. use of the unplanned sales call.
Answer: a Page: 383
Rationale: Reebok’s selling involves building trust with the retailer, providing them with the
information needed to sell Reebok products, and after-sale support—all characteristics of
relationship selling
17-139 VIDEO CASE CONCEPTUAL
Which of the following statements about Reebok International Ltd. is true?
a. Reebok is the second largest athletic shoe manufacturer behind the market leader, Nike.
b. Reebok also sells Rockport, Greg Norman Collection, and Ralph Lauren Footwear shoes.
c. Reebok is unique in that it emphasizes relationships with retailers as an integral part of its
marketing strategy.
d. Reebok has recently issued laptop computers to its entire sales force that enable the
salespeople to check inventories in the warehouses.
e. All of the above statements about Reebok International Ltd. are true.
Answer: e Page: 383-385
Rationale: Alternatives a through d describe characteristics of Reebok’s marketing operations
today.
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CHAPTER 17
PERSONAL SELLING AND SALES MANAGEMENT
SHORT ESSAY QUESTIONS
17-140 PERSONAL SELLING, SALES MANAGEMENT DEFINITION
Define personal selling. Define sales management.
Answer:
Personal selling involves the two-way flow of communication between a buyer and a seller, often
in a face-to-face encounter, designed to influence a person's or group's purchase decision. Sales
management involves planning the selling program and implementing and controlling the personal
selling effort of the firm.
Page: 366
17-141 THE ROLE OF PERSONAL SELLING CONCEPTUAL
What are the three major roles of personal selling in a firm's overall marketing effort?
Answer:
Personal selling serves three major roles. First, salespeople are the critical link between the firm
and its customers. Second, because salespeople are often the only personal contact a customer has
with the company, salespeople are the company. That is, the salesperson represents what a
company is and conveys an image to all buyers. Finally, personal selling may play a dominant role
in firm's marketing program, as when a firm elects to use a push marketing strategy.
Page: 367
17-142 CREATING CUSTOMER VALUE THROUGH SALESPEOPLE APPLICATION
How do the salespeople at Medtronic add value to their customers?
Answer:
Medtronic, Inc. is the world leader in the heart pacemaker market. Their salespeople are in the
operating room for more tha 90 percent of the procedures performed with their product and are on
call, wearing pagers, 24 hours a day. “It reflects the willingness to be there in every situation, just
in case a problem arises—even though nine times out of ten the procedure goes just fine,” notes a
satisfied customer.
Page: 367
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17-143 RELATIONSHIP SELLING CONCEPTUAL
How is customer value creation made possible by relationship selling?
Answer:
Relationship selling, the practice of building ties to customers based on a salesperson’s attention
and commitment to customer needs over time, adds value by encouraging mutual respect and trust
among buyers and sellers. It focuses on creating long-term customers, not a one-time sale. It
emphasizes the importance of learning about customer needs and wants and tailoring solutions to
customer problems as a means to customer value creation.
Page: 367
17-144 FORMS OF PERSONAL SELLING DEFINITION
Describe orders takers and order getters. How do they differ from each other?
Answer:
Order takers process routine orders or reorders for products that were already sold to the customer
by the company. In addition, order takers are responsible for preserving an ongoing relationship
with existing customers and maintaining sales. The two types of order takers are:
(1) outside order takers who visit customers and replenish inventory
(2) inside order takers who answer simple questions, take orders and complete transactions with
customers, usually by phone.
In general, order takers do little selling and often represent simple products that have few options.
Order getters must identify prospective customers, provide customers with information, persuade
customers to buy, close sales, and follow up on customers' use of a good or service. Like order
takers, order getters can be inside or outside. Order getting involves a high degree of creativity and
customer empathy and typically is required for selling complex products.
Page: 368-369
17-145 THE PERSONAL SELLING PROCESS CONCEPTUAL
What are the six stages of the personal selling process? What is the objective of each stage?
Answer:
The personal selling process consists of six stages--prospecting, preapproach, approach,
presentation, close, and follow-up.
The objective of prospecting is to search for and qualify prospects.
The objective of the preapproach is to gather information.
The objective of the approach is to gain prospect's attention and stimulate interest.
The objective of the presentation is to create a desire for the product.
The objective of the close is to obtain a purchase commitment.
The objective of the follow-up is to ensure the customer is satisfied.
Page: 370; Figure 17-2
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17-146 NEED-SATISFACTION PRESENTATION CONCEPTUAL
What are the keys to effective need-satisfaction presentations?
Answer:
The need-satisfaction format of sales presentation emphasizes probing and listening by the
salesperson to identify needs and interests of prospective buyers. The responses provided by the
prospect allow the salesperson to identify sales opportunities, which in turn allows the salesperson
to tailor the presentation to the prospect and highlight product benefits that may be valued by the
prospect.
Page: 373
17-147 HANDLING OBJECTIONS CONCEPTUAL
During the presentation stage, a salesperson may encounter objections. What are the six basic types
of objections, and how should they be handled?
Answer:
Objections are excuses for not making a purchase commitment or decision. They may be valid and
based on the characteristics of the product, or they may be invalid, which reflects prospect
skepticism or indifference to the product. The six techniques for handling objections are:
(1) Acknowledge and convert the objection by using the objection as a reason for buying
(2) Postpone an immediate response by informing the prospect that the objection will be dealt
with later in the presentation
(3) Agree and neutralize the objection by comparing relative benefits
(4) Accept the objection as valid, probe the prospect for the reason behind it, and attempt to
stimulate further discussion on the objection
(5) Deny a prospect's objection when it is based on misinformation or is untrue
(6) Ignore the objection when it appears that it is a mere stalling mechanism or is clearly not
important to the prospect.
When using the above techniques salespeople must be courteous, ethical, and professional in their
manner.
Page: 373
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17-148 CLOSING DEFINITION
What occurs during the closing stage of the selling process? List the three types of close discussed
in the text.
Answer:
The closing stage in the selling process involves obtaining a purchase commitment from the
prospect. Any of the three closing techniques are used when a salesperson believes a buyer is ready
to make a purchase. They are:
(1) trial close
(2) assumptive close
(3) urgency close.
Page: 540
17-149 THE SALES MANAGEMENT PROCESS CONCEPTUAL
Although firms may differ in the specifics of how salespeople are managed, the sales management
process has many similarities across firms. Briefly describe the three interrelated functions of the
sales management process.
Answer:
Sales management consists of three interrelated functions.
(1) Sales Plan Formulation. The sales plan is a statement describing what is to be achieved and
where and how the selling effort of salespeople is to be directed. Formulating the sales plan
is the most basic of the three functions and involves three tasks—setting objectives,
organizing the sales force, and developing account management policies.
(2) Sales Plan Implementation. Sales plan implementation is the process of putting the tasks
specified during formulation into practice. The three major tasks involved in implementing a
sales plan are sales force recruitment and selection, sales force training, and sales force
motivation and compensation.
(3) Sales Force Evaluation. The evaluation function assesses how effective salespeople were in
meeting sales objectives and following company policies. Quantitative measures such as
selling expenses and sales calls, and behavioral measures such as product knowledge and
communication skills are frequently used.
Page: 375-380; Figure 17-3
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17-150 CUSTOMER SALES ORGANIZATION APPLICATION
ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At
one time, ABB had a sales force that sold only generators, one that only sold boilers, another that
only sold transformers, and so forth. Each of its salespeople was an expert on the product line he or
she sold. Its sales force was organized by product. Then it adopted a customer organizational
structure. Why might ABB have adopted a customer organization?
Answer:
The rationale for a customer organizational structure is the ability to provide more specialized
customer support and knowledge to buyers. Salespeople are able to develop an understanding of
the industry in which their customers operate and help them more efficiently operate in that
industry. With ABB, the industries its different salespeople specialize in might be electric power
generation, chemical processing industries, and gasoline refining. When ABB’s sales force had a
product organization, it might have received complaints from some customers who might have had
to see a half-dozen different ABB salespeople in order to acquire the equipment needed for a
complete industrial process system. So ABB hopes that its customer organizational structure will
give its salespeople special expertise in their industry and reduce redundant sales calls on the same
customer by several ABB salespeople.
Page: 375
17-151 ACCOUNT MANAGEMENT POLICY GRID CONCEPTUAL
Describe an account management policy grid and give an example of how it might be used.
Answer:
An example of an account management policy grid would plot account opportunity (low and high)
versus competitive position of the sales organization (low and high). Different accounts or
customers can then be grouped according to level of opportunity and the firm’s competitive sales
position. When specific account names are placed in each cell, salespeople clearly see which
accounts should be contacted, with what level of selling and service activity, and how to deal with
them. Accounts classified as high opportunity and high competitive position of the sales
organization, should have high frequencies of personal sales calls and service to retain and build
accounts. Conversely, for accounts classified as low opportunity and a low competitive position of
the sales organization the firm should perhaps consider replacing personal calls with telephone
sales or direct mail or even dropping the account.
Page: 377
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17-152 COMPENSATION CONCEPTUAL
Which type of compensation plan—straight salary, straight commission, or combination--is most
useful when compensating new salespeople? When are the other plans useful?
Answer:
A straight salary compensation plan is especially useful when:
(a) compensating new salespeople
(b) moving into new territories
(c) many non-selling tasks are required.
A straight commission is best when:
(a) aggressive selling is required
(b) nonselling tasks are minimized
(c) the company cannot control sales force activities.
Combination plans are used most frequently and are most appropriate when territories have similar
sales potentials, incentive is desired, and the firm wants to maintain control of sales force activities.
Page: 378-379
17-153 SALES FORCE EVALUATION CONCEPTUAL
In order to evaluate different selling dimensions, two types of evaluative assessments are used.
Explain what they are.
Answer:
(a) Quantitative assessments, called quotas, are based on input- and output-related objectives set
forth in the sales plan. Input-related measures focus on the actual activities performed by
salespeople, such as those involving sales calls, selling expenses, and account management
policies. The number of sales calls made, selling expense related to sales made, and the
number of reports submitted to superior are frequently used input measures.
(b) Quantitative assessments that are output based focus on the results obtained and include sales
produced, accounts generated, profit achieved, and orders produced compared with calls made.
Dollar sales volume, last year/current year sales ratio, the number of new accounts, and sales of
specific products are frequently used measures when evaluating salesperson output.
(c) Behavioral Evaluation is the second type of measure used to evaluate salespeople. These
include assessments of a salesperson’s attitude, attention to customers, product knowledge,
selling and communication skills, appearance, and professional demeanor. Customer
satisfaction is also used by 60 percent of U.S. companies.
Page: 379-380
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17-154 SALES FORCE AUTOMATION APPLICATION
Explain how Godiva Chocolates and Toshiba America Medical System field salespeople use their
laptops to service their customers.
Answer:
Salespeople for Godiva Chocolates use their laptop computers to process orders, plan time usage,
forecast sales, and communicate with Godiva personnel and customers. While in a department
store candy buyer’s office, such as Neiman Marcus, a salesperson can calculate the order cost (and
discount), transmit the order, and obtain a delivery date within minutes from Godiva’s order
processing department.
Toshiba America Medical System salespeople now use laptop computers to provide interactive
presentations for their computerized tomography (CT) and magnetic resonance imaging (MRI)
scanners. In it the customer sees elaborate three-dimensional animations, high-resolution scans,
and video clips of the company’s products in operation as well as narrated testimonials from
satisfied customers. Toshiba has found this application to be effective both for sales presentations
and for training its salespeople.
Page: 380
17-155 VIDEO CASE CONCEPTUAL
How has Reebok International Ltd. created customer value by relationship selling?
Answer:
Reebok is unique in that it emphasizes relationships with the retailers as an integral part of its
marketing strategy. Reebok sells in teams that consist of the account representatives, who do the
actual selling to the retailer, and the “vector” representatives, who spend their time in the stores
training the store salespeople and reporting trends back to the account manager. Selling teams live
and work in the area they are selling in, allowing them to understand the consumer intuitively. The
teams visit stores regularly, updating the store salespeople on new information and new products.
The process at Reebok follows the six steps of the personal selling process, emphasizing Reebok's
commitment to partnership with the retailer. Follow-up includes frequent visits by various
members of the sales force to provide assistance.
Page: 383-385
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