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One of the first sales management decisions a firm must make is whether the company should build its own salesforce or hire independent agents such as manufacturers' representatives.Abacus Designs sells high-end furniture to retailers and needs to make this decision.Independent agents would receive a 5 percent commission on sales while a company salesforce would receive a 3 percent commission,salaries,and benefits.In addition,with company salespeople,sales administration costs would be incurred for a total fixed cost of $500,000 per year.At what sales level would independent salespeople be less costly?

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The decision to use company salespeople ...

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The final stage in the personal selling process is referred to as


A) presentation.
B) assumptive close.
C) decision confirmation.
D) urgency close.
E) follow-up.

F) None of the above
G) A) and B)

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Sales research and practice show that knowledge of the customer and sales situation are key ingredients for


A) progressive selling.
B) team selling.
C) formula selling.
D) adaptive selling.
E) missionary selling.

F) All of the above
G) D) and E)

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Which is the simplest salesforce organizational structure?


A) profit
B) customer
C) product
D) geographical
E) market

F) B) and E)
G) C) and D)

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Team selling would most likely be used by a company that sells


A) file cabinets.
B) washing machines.
C) dining room tables.
D) four-wheel drive sports utility vehicle (SUVs) .
E) automated industrial milling machines.

F) B) and E)
G) B) and D)

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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.

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Sales management consists of three inter...

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The personal selling process begins with the ________ stage and ends with the ________ stage.


A) preapproach;close
B) preapproach;presentation
C) prospecting;close
D) prospecting;follow-up
E) approach;close

F) B) and D)
G) B) and E)

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Russ Berry Co.sells stuffed animals and holiday gifts.When its salesperson asks a retailer,"Do you want to order the two dozen assorted bears or two dozen white-only bears?" he has executed which stage of the selling process?


A) approach
B) presentation
C) handling objections
D) closing
E) follow-up

F) C) and E)
G) A) and D)

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Adaptive selling is a presentation format that


A) emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.
B) focuses on problem identification,where the salesperson serves as an expert on problem recognition and resolution.
C) consists of information that must be provided in an accurate,thorough,and step-by-step manner to inform the prospect.
D) assumes that given the appropriate stimulus by a salesperson,the prospect will buy.
E) involves adjusting the presentation to fit the selling situation,such as knowing when to offer solutions and when to ask for more information.

F) B) and E)
G) All of the above

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According to Lindsey Smith of GE Healthcare,all of the following are necessary skills to be successful in serving her customers except which?


A) an MBA degree
B) strategic thinking
C) product knowledge
D) communication skills
E) analytical thinking

F) A) and B)
G) All of the above

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In a ________,the salesperson tries one appeal after another,hoping to "hit the right button."


A) formula selling presentation
B) persuasive sales presentation
C) categorical satisfaction presentation
D) stimulus-response presentation
E) progressive selling presentation

F) A) and C)
G) A) and D)

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When Jason called the toll-free number to order two children's books from the Chinaberry catalog,the firm was using


A) social networking.
B) interactive marketing.
C) multichannel selling.
D) inbound telemarketing.
E) outbound telemarketing.

F) A) and B)
G) A) and C)

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Many firms such as Xerox and IBM use a cross-functional sales practice known as


A) collaborative selling.
B) team selling.
C) cooperative selling.
D) account selling.
E) formula selling.

F) A) and E)
G) B) and D)

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A disadvantage of a straight commission compensation plan is that


A) it does not provide incentive to expand sales volume.
B) it can discourage salespeople from providing customer service.
C) it includes non-selling activities that take time away from selling.
D) the overall compensation is usually lower than a straight salary compensation plan.
E) it not perceived as equitable by most salespeople.

F) A) and D)
G) A) and C)

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At the ________ stage in the personal selling process,a salesperson begins converting a prospect into a customer by creating a desire for the product or service he or she is selling.


A) preapproach
B) approach
C) presentation
D) close
E) follow-up

F) B) and C)
G) All of the above

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An advantage of the straight salary compensation plan is that it


A) provides an incentive to expand sales volume.
B) can be easily adapted to changes in the economy.
C) doesn't include non-selling activities that take time away from selling.
D) allows salaries to be lower.
E) is easy to administer.

F) C) and D)
G) A) and E)

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Sales force automation is typically applied to all of the following except which?


A) product and sales training
B) communication between sales managers and salesforce
C) account development and analysis
D) proposal generation
E) order processing

F) C) and D)
G) B) and E)

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Aspects of ________ policies might include which individuals in a buying organization should be contacted,the amount of sales and service effort that different customers should receive,and the kinds of information salespeople should collect before or during a sales call.


A) sales response management
B) account management
C) sales administration
D) customer interaction
E) prospect administration

F) C) and D)
G) D) and E)

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When specific knowledge is required to sell certain types of products or services,then a ________ is used.


A) territorial sales organization
B) customer sales organization
C) product sales organization
D) geographical sales organization
E) multilevel marketing sales organization

F) B) and E)
G) B) and C)

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At White Chemical Co. ,management is examining its selling strategy and wants to acknowledge the role its sales staff has in undertaking sales support (non-selling) activities,yet keep the salespeople directed toward increasing sales for the next year.What advice is most likely to be appropriate here?


A) Provide a base salary and a commission on sales generated.
B) Give a raise to every salesperson as a motivational incentive.
C) Provide year-end bonuses to reward the salesforce 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.

F) A) and B)
G) None of the above

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