WGU D099 Sales Management Pre-assessment Exam Questions and Answers

WGU D099 Sales Management Pre-assessment Exam Questions and Answers 1. A sales manager is designing a commission structure for sales team members. The commissions will be based on each salesperson's monthly sales less variable expenses. Which income statement is the basis for the sales commission structure? Contribution margin Full costing Traditional Balance sheet - ANSWER Contribution margin 2. A sales manager explains to the chief executive officer (CEO) that they can reduce costs by outsourcing the sales of the product. Which loss should concern the CEO if this change is approved? Control Market access Buyers Production - ANSWER Control 3. A sales manager wants to improve the return on assets managed and assumes that the profit margin will remain constant. Which action should the sales manager take? Increase its asset turnover rate Decrease its account development rate Decrease its use of quotas for salespeople Increase its focus on transactional selling - ANSWER Increase its asset turnover rate 4. A sales manager applies a costing method that is focused on reporting all direct costs associated with product sales for internal financial reporting. Which costing method is the sales manager using? Activity-based Full product Contract Job - ANSWER Activity-based 5. Managers in a company are evaluating external and internal factors in order to develop the sales plan. Which level of decision-making are the managers performing? Tactical Strategic Executive Programmed - ANSWER Strategic 6. A company fails to meet current annual sales goals. The sales manager is tasked with developing a plan to increase sales without incurring additional costs. Which solution should this sales manager choose? Offering customer discounts Focusing on product customization Creating new products Upselling prospective customers - ANSWER Upselling prospective customers 7. What is an advantage of using customer surveys as a means to collect data for forecasting and quota development? It provides detailed user information. It involves inexpensive data collection. It generates rich data for consumer goods. It collects generically valuable information. - ANSWER It provides detailed user information. 8. What is a disadvantage of using the Delphi method as a means to collect data for forecasting and quota development? Possibility of a dominating voice Time consuming in generating results Prevalence of argumentative discussion Discouragement in equal participation by introverts - ANSWER Time consuming in generating results 9. A sales manager for a manufacturing company is developing a sales forecast based on past sales trends in order to estimate a similar growth rate in sales. The sales data are divided into four segments for analysis. Which approach to sales forecasting is the sales manager using? Qualitative Time series Test market Buying plan - ANSWER Time series 10. A sales manager is considering all sales data since the start of the business. To develop a sales forecast for the upcoming year, the manager assigns a higher factor to recent sales and a lower factor to sales that were over seven years ago. Which approach to sales forecasting is being used by this sales manager? Market test Trend evaluation Exponential smoothing Decomposition analysis - ANSWER Exponential smoothing 11. A director of sales has been asked to create a sales forecast for the upcoming fiscal year for a company that manufactures various household goods. The director of sales wants to analyze data by using quantitative analysis. Which method should be used to meet this goal? Expert opinion Subjective approach Statistical review Delphi technique - ANSWER Statistical review 12. A director of sales has been asked to create a sales forecast for the upcoming fiscal year for a company that manufactures various snack foods. The director of sales is considering using a quantitative forecasting approach. Which approach should be used to meet this goal? Delphi method Time series technique Sales force composite Jury of executive opinion - ANSWER Time series technique 13. How are sales forecasting and quota development used to help a company make effective decisions? A sales forecast is developed after quotas are established. A sales forecast is developed before quotas are assigned to salespeople. A sales quota is assigned to salespeople if the forecast is not favorable. A sales quota is assigned to salespeople before the forecast is completed. - ANSWER A sales forecast is developed before quotas are assigned to salespeople. 14. A retailer is advertising its new product line and has designed a campaign that includes social media advertising, print promotional pieces, online promotions, and a special product launch event. Which concept is the retailer using to promote its new product line? Relationship selling Integrated marketing communications Buyer journey Marketing research - ANSWER Integrated marketing communications 15. A salesperson wants to get to know a prospective customer by establishing ongoing communication to ensure current as well as future sales. Which sales approach is the salesperson using? Transactional Relationship Adaptive Direct - ANSWER Relationship 16. Functional relationships - ANSWER Limited, ongoing relationships that develop when a buyer continues to purchase a product from a seller out of habit, as long as its needs are met 17. Modular structure - ANSWER Divides the business into small, tightly knit strategic business units (SBUs), which focus on specific elements of the organizational process 18. Value chain - ANSWER The process or activities by which a company adds value to a product, including production, marketing, and the provision of after-sales service 19. Strategic business units (SBUs) - ANSWER A profit center that focuses on product offering and market segment 20. Sustainable competitive advantage - ANSWER Company assets, attributes, or abilities that are difficult to duplicate or exceed and provide a superior or favorable long-term position over competitors 21. Factors that can help a business develop a sustainable competitive advantage - ANSWER Customer loyalty, location, distribution and information systems (Getting products at a cheap price and selling them at a reasonable price), unique merchandise, vendor relations, customer service, and multiple source advantage (being widely recognized by your strengths) 22. Business intelligence (BI) - ANSWER The use of data in an enterprise to facilitate decision-making 23. Big data analytics - ANSWER Large, complex data sets that require non-traditional data processing software to predict trends and forecasts 24. Four elements that make up ethical behavior within an organization - ANSWER A written code of ethics and standards. Ethics training to executives, managers, and employees. Availability of advice on ethical situations (advice lines or ethics offices). A system for confidential reporting. 25. Integrated marketing communications (IMC) - ANSWER The careful coordination of all promotional activities—media advertising, sales promotion, personal selling, and public relations, as well as direct marketing, packaging, and other forms of promotion—to produce a consistent, unified message that is customer focused 26. Marketing concept - ANSWER Identifying consumer needs and then producing the goods or services that will satisfy those needs while making a profit for the organization 27. Promotional techniques - ANSWER Advertising, sales promotion, and publicity, or creating new sales channels or new products 28. Promotional mix - ANSWER The combination of advertising, personal selling, sales promotion, and public relations used to promote a product 29. The main limitation of the AIDA model - ANSWER The model assumes consumers are passive and marketers are active during most of the buying process. 30. What is the main difference between the AIDA model of the buyer's journey and the six steps model of the buying process? - ANSWER The AIDA model assumes that the customer experience ends at the purchase while the six-step process considers the after-purchase relationship with the customer. 31. Transactional selling - ANSWER Focuses on short-term, often single, transactions. 32. Relationship selling - ANSWER Focused on long-term relationship building to keep customers satisfied and consequently convince them to return and make multiple purchases. 33. Adaptive selling - ANSWER Using social styles to customize a sales approach to the specific customer 34. Social style matrix - ANSWER A model that categorizes people according to personality traits and how they interact with others 35. Analyticals - ANSWER Focus on "how,"include facts, do not challenge their facts, demonstrate results, mention guarantees and warranties, give them time to decide, communicate the pros and cons, and provide history, data, financial details. Low responsiveness and low assertiveness 36. Drivers - ANSWER Focus on "what," get to the point quickly, provide options, use facts, focus on results, provide timelines, and make them feel in control. Low responsiveness and high assertiveness 37. Amiables - ANSWER Focus on "why," establish a personal relationship, demonstrate personal commitment, and work as a team. High responsiveness and low assertiveness 38. Expressives - ANSWER Focus on "who," take extra time to discuss everything, give them recognition and approval, ask them how they feel about the product or service, focus on the big picture, and use facts and figures to demonstrate what is possible. High responsiveness and high assertiveness 39. Consultative selling - ANSWER Sales approach where the seller becomes a trusted advisor to the customer and builds a relationship to truly understand his or her needs 40. Customer lifetime value (CLV) - ANSWER A prediction of the net profit attributed to the entire future relationship with a customer 41. Return on customer investment - ANSWER A metric that measures how much value a business can create per customer 42. Value proposition - ANSWER An innovation, service, or feature intended to make a company or product attractive to customers 43. A value proposition should be - ANSWER Clear (short and direct), compelling (motivates), and differentiating (sets the offering aprt). 44. Equation for ROI - ANSWER ROI = net profit ÷ investment × 100 45. Return on investment (ROI) - ANSWER A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments 46. Equation for CLV - ANSWER CLV = dollar value of purchases x gross profit percent x number of purchases 47. Sales channels - ANSWER A way of bringing products or services to market so they can be purchased by consumers 48. Distribution channels - ANSWER A chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer 49. Agents or brokers - ANSWER Their main job is to represent the producer to the final user in selling a product. 50. Wholesalers - ANSWER They sell the products to other intermediaries, such as retailers, for a higher price than they paid. They buy in bulk and store the products in their own warehouses and storage places until it is time to resell them. They are independently owned, and they own the products that they sell. 51. Distributors - ANSWER They take ownership of the product, store it, and sell it at a profit to retailers or other intermediaries. However, the key difference is that distributors ally themselves to complementary products 52. Retailers - ANSWER Whatever their size, retailers purchase products from market intermediaries and sell them directly to the end user for a profit 53. Missionary salespeople - ANSWER A salesperson who provides information to an individual who will influence the purchase decision 54. Technical salespeople - ANSWER Sales people who are experts in a specific product or service area. They promote and sell the product by demonstrating how it works along with the benefits it can offer potential customers 55. Trade salespeople - ANSWER A salesperson who calls on retailers and helps them display, advertise, and sell products to consumers 56. Inside salespeople - ANSWER People who routinely work inside the business taking orders and handling transactions 57. Outside salespeople - ANSWER Sales personnel who go out into the field to meet with customers 58. Account management - ANSWER Maintaining a long-term relationship with customers who purchased from the firm in the past 59. Account-based marketing (ABM) - ANSWER Concentrates sales and marketing resources on a clearly defined set of target accounts within a market and employs personalized campaigns designed to resonate with each account 60. Key account management (KAM) - ANSWER Developing and maintaining long-term, sustainable and mutually beneficial relationships with key accounts (customer) 61. Inactive accounts - ANSWER Clients who have not made a purchase for a specified period of time 62. Active accounts - ANSWER Have consistent transactions and engagement with the business 63. Passive accounts - ANSWER Clients who have established an ongoing relationship with the company through its website and may or may not have a recurring order 64. 80/20 rule - ANSWER Suggests that 20 percent of your activities will account for 80 percent of your results 65. Pareto principle - ANSWER The law of the vital few, or the principle of factor sparsity, states that, for many events, roughly 80 percent of the effects come from 20 percent of the causes 66. Business development - ANSWER Activities to develop and implement growth opportunities within organizations 67. Sales quotas - ANSWER The sales goal or figure set for a product line, company division, or sales representative 68. Power skills - ANSWER Personal attributes that enable someone to interact effectively and harmoniously with other people 69. Hard skills - ANSWER Teachable abilities or skill sets that are easy to quantify. Typically, you will learn hard skills in the classroom, through books or other training materials, or on the job 70. Types of power skills - ANSWER Empsthy, verbal communication, conflict resolution, and analytical decision making 71. Types of hard skills - ANSWER Product knowledge, proposals and contracts, technology proficiency, and software skills 72. Economic buyer - ANSWER The individual decision maker or group within the customer organization who controls the budget and writes the checks for new product purchases 73. Infrastructure buyer - ANSWER Someone who makes sure that purchasing rules defined in corporate governance procedures are followed 74. User buyer - ANSWER Someone who influences the buying decision as the person who will actually use the solution after the purchase decision is made 75. Procurement officers - ANSWER Persons who are responsible for the management, administration, and supervision of the company's acquisition programs 76. Merchandisers - ANSWER A staff member in a retail firm who is responsible for buying goods or products and displaying them in the store 77. Influencers - ANSWER Individuals who have experience or expertise that can help improve the buying decision 78. Initiators - ANSWER Individuals who suggest purchasing a product or service for a business 79. Users - ANSWER Individuals within an organization who actually use the product 80. Gatekeepers - ANSWER Individuals who will decide if and when one gets access to members of the buying center 81. Decision makers - ANSWER The person who makes the final purchasing decision 82. Purchasing managers - ANSWER An employee within a company, business or other organization who is responsible at some level for buying or approving the acquisition of goods and services needed by the company 83. Decision-making unit (DMU) - ANSWER A group of people within an organization who make business purchasing decisions 84. Selling centers - ANSWER Functional representation that supports a sales person to create a team-selling approach 85. Buying centers - ANSWER A group of people within an organization who make business purchasing decisions 86. Stages of B2B buying process - ANSWER Recognize the need, define the need, search for suppliers, bid analysis, supplier selection, order placement, and performance review 87. Recognize the need - ANSWER Someone recognizes that the organization has a need that can be solved by purchasing a good or service