Sales Management 66 Exam 1 Questions
- Gupta
. The advantage of advertising and sales promotion over other elements of the promotion mix is that
they involve two-way communication. (T/F) - ✔ ✔ False
Working with a telemarketing sales force is generally welcomed by the outside sales force. (T/F) - ✔ ✔
False
Written sales proposals have the following advantage: - ✔ ✔ (all of the above) less chance of
misunderstanding because both parties do not have to rely on memory, improve communication to
buying or executive committees, durability that allows multiple readings and evaluations.
Written sales proposals should discuss which of the following? - ✔ ✔ (all of the above) reasons for
changing something, the incentives for changing, confirm the confidence to invest in a solution, lay out
the solution.
. The purchasing practice of utilizing supplier tiers is becoming a less popular practice. (T/F) - ✔ ✔
False
"May I ask you a few questions about your current manufacturing processes?" is an example of a: - ✔
✔ permission question
A simple geographic organization of a sales force generally works best when the product line is fairly
broad and complex. (T/F) - ✔ ✔ False
A strategic account program is essentially an effort to provide the kinds of services and products
necessary to establish a long-term relationship with key customers. (T/F) - ✔ ✔ True
A Technical buyer influence's primary focus in the purchasing process is on product or service
specifications. (T/F) - ✔ ✔ True
A viable approach to addressing the problem of customers who are too small to order generate enough
sales volume to exceed the break-even sales volume is: - ✔ ✔ (A, B, & C are correct) to increase
prices to these customers, to decrease the number of calls made on these customers, to have brokers
call on these customers
According to the findings of a study comparing successful with less successful salespeople, successful
people will open the selling process by focusing on product benefits. (T/F) - ✔ ✔ False
Advertising is generally more effective than personal selling in closing the sale. (T/F) - ✔ ✔ False
, Although portfolio models offer several benefits over single factor models, a problem that still remains
is: - ✔ ✔ the lack of an optimal solution to the allocation of sales calls.
An advantage of personal selling is not: - ✔ ✔ reaching a massive number of people quickly.
"Who is your current supplier of gaskets?" is an example of a: - ✔ ✔ fact-finding question
A company is considering whether to hire independent agents or develop its own sales force. Agents are
paid a 4% commission, alternatively a company sales force would consist of 6 people paid a $25,000
salary each along with a 2% commission. A company sales force is economically viable if sales are
forecasted to be: - ✔ ✔ above $7,500,000.
A customer demographic that might be used in building a prospect profile might include - ✔ ✔ (Only
A & B are correct) Geographic location, size of business.
A excellent way to identify a good sales advocate is to listen for the name of the person that other
people in the buying center frequently mention. (T/F) - ✔ ✔ True
A sales response function generally indicates that a salesperson can always increase the sales volume of
an account by calling on it more often. (T/F) - ✔ ✔ False
An example of a functional specialist type sales organization is to have new customer and retention
specialists. (T/F) - ✔ ✔ True
An example of a problem-solution type of selling process is when clients pay EDS to perform an
extended study of their information needs before recommending an information system. (T/F) - ✔ ✔
True
As a result of cutting out the middle man to reduce costs and prices, the number of channels through
which consumer products can be sold has decreased in recent years. (T/F) - ✔ ✔ False
Before meeting with a prospect, which of the following may be an important source of information: - ✔
✔ (All of the above) the prospect's business facilities, other salespeople, current customers, the
internet.
Break-even sales volume is the sales volume necessary to cover all direct selling expenses. (T/F) - ✔ ✔
True
Compared to less successful salespeople, very successful salespeople are more likely to use referrals
from present customers to identify prospects. - ✔ ✔ True
Customer Lifetime Value (CLV) uses an estimate of a customer's future sales. (T/F) - ✔ ✔ True
Direct marketing organizations such as Mary Kay Cosmetics and Cutco usually train their salespeople to
use a standardized type of sales presentation. (T/F) - ✔ ✔ True
- Gupta
. The advantage of advertising and sales promotion over other elements of the promotion mix is that
they involve two-way communication. (T/F) - ✔ ✔ False
Working with a telemarketing sales force is generally welcomed by the outside sales force. (T/F) - ✔ ✔
False
Written sales proposals have the following advantage: - ✔ ✔ (all of the above) less chance of
misunderstanding because both parties do not have to rely on memory, improve communication to
buying or executive committees, durability that allows multiple readings and evaluations.
Written sales proposals should discuss which of the following? - ✔ ✔ (all of the above) reasons for
changing something, the incentives for changing, confirm the confidence to invest in a solution, lay out
the solution.
. The purchasing practice of utilizing supplier tiers is becoming a less popular practice. (T/F) - ✔ ✔
False
"May I ask you a few questions about your current manufacturing processes?" is an example of a: - ✔
✔ permission question
A simple geographic organization of a sales force generally works best when the product line is fairly
broad and complex. (T/F) - ✔ ✔ False
A strategic account program is essentially an effort to provide the kinds of services and products
necessary to establish a long-term relationship with key customers. (T/F) - ✔ ✔ True
A Technical buyer influence's primary focus in the purchasing process is on product or service
specifications. (T/F) - ✔ ✔ True
A viable approach to addressing the problem of customers who are too small to order generate enough
sales volume to exceed the break-even sales volume is: - ✔ ✔ (A, B, & C are correct) to increase
prices to these customers, to decrease the number of calls made on these customers, to have brokers
call on these customers
According to the findings of a study comparing successful with less successful salespeople, successful
people will open the selling process by focusing on product benefits. (T/F) - ✔ ✔ False
Advertising is generally more effective than personal selling in closing the sale. (T/F) - ✔ ✔ False
, Although portfolio models offer several benefits over single factor models, a problem that still remains
is: - ✔ ✔ the lack of an optimal solution to the allocation of sales calls.
An advantage of personal selling is not: - ✔ ✔ reaching a massive number of people quickly.
"Who is your current supplier of gaskets?" is an example of a: - ✔ ✔ fact-finding question
A company is considering whether to hire independent agents or develop its own sales force. Agents are
paid a 4% commission, alternatively a company sales force would consist of 6 people paid a $25,000
salary each along with a 2% commission. A company sales force is economically viable if sales are
forecasted to be: - ✔ ✔ above $7,500,000.
A customer demographic that might be used in building a prospect profile might include - ✔ ✔ (Only
A & B are correct) Geographic location, size of business.
A excellent way to identify a good sales advocate is to listen for the name of the person that other
people in the buying center frequently mention. (T/F) - ✔ ✔ True
A sales response function generally indicates that a salesperson can always increase the sales volume of
an account by calling on it more often. (T/F) - ✔ ✔ False
An example of a functional specialist type sales organization is to have new customer and retention
specialists. (T/F) - ✔ ✔ True
An example of a problem-solution type of selling process is when clients pay EDS to perform an
extended study of their information needs before recommending an information system. (T/F) - ✔ ✔
True
As a result of cutting out the middle man to reduce costs and prices, the number of channels through
which consumer products can be sold has decreased in recent years. (T/F) - ✔ ✔ False
Before meeting with a prospect, which of the following may be an important source of information: - ✔
✔ (All of the above) the prospect's business facilities, other salespeople, current customers, the
internet.
Break-even sales volume is the sales volume necessary to cover all direct selling expenses. (T/F) - ✔ ✔
True
Compared to less successful salespeople, very successful salespeople are more likely to use referrals
from present customers to identify prospects. - ✔ ✔ True
Customer Lifetime Value (CLV) uses an estimate of a customer's future sales. (T/F) - ✔ ✔ True
Direct marketing organizations such as Mary Kay Cosmetics and Cutco usually train their salespeople to
use a standardized type of sales presentation. (T/F) - ✔ ✔ True
