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1 CORRECT

Which of the following is an example of a sales touchpoint?


A)
Production operations
B)
Call centers
C)
Supply chain alliances
D)
Warehouses
E)

Colleges

Feedback:
Page: 67.
Justification: Touchpoints are where the seller touches the customer in some
way. Call centers are an important touchpoint providing information to
sellers about their customers.

2 CORRECT
Customer relationship management is
A)
A mass marketing customer loyalty program
B)
Team selling in a top-to-top market
C)
An overarching business philosophy
D)
An integrated implementation system
E)

Answers C and D

Feedback:
Page: 67.
Justification: CRM is both an overarching business philosophy and an
integrated implementation system.

3
INCORRECT

The evolution of customer relationship marketing has progressed from:


A)
Mass, target, customer, to one-to-one marketing
B)
One-to-one, mass, target, to customer marketing
C)
Customer, mass, target, to one-to-one marketing
D)
Mass, target, one-to-one, to customer marketing
E)

Customer relationship marketing has always existed.

Feedback:
Page: 68.
Justification: CRM has evolved from mass marketing, to target marketing, to

customer marketing, to one-to-one marketing.

4
INCORRECT

Which of the following is an example of the advantages of CRM?


A)
Decreases advertising costs
B)
Makes it easier to target specific customers
C)
Allows greater competition based on service rather than price
D)
Prevents overspending on low-value customers
E)

All of the above

Feedback:
Page: 69.
Justification: CRM is both an overarching business philosophy and an
integrated implementation system. The advantages are that CRM:
Reduces advertising costs.
Makes it easier to target specific customers by focusing on their needs.
Makes it easier to track the effectiveness of a given promotional (marketing
communications) campaign.
Allows organizations to compete for customers based on service, not prices.
Prevents overspending on low-value clients or underspending on high-value
ones.
Speeds the time it takes to develop and market a product (the marketing
cycle).
Improves use of the customer channel, thus making the most of each contact
with a customer

5
INCORRECT

Projecting expected financial returns from different groups of customers is a


measure of
A)
Lifetime value of customers
B)
Supply chain cost and revenues
C)
Generic strategy returns
D)
Marketing mix profitability
E)

Data warehousing ROI

Feedback:
Page: 69.
Justification: One of the most important concepts in CRM is the lifetime value
of customers, allowing marketers to estimate the projected financial returns
from a customer and determine what level of service to provide.

6
INCORRECT

Your school is implementing a new CRM initiative. Which of the following


questions should they ask?

A)
What do our customers want and expect?
B)
How do we work together and share control?
C)
Who are we?
D)
How do we increase our capacity for change?
E)

All of the above

Feedback:
Page: 71.
Justification: Your school should ask all of the questions listed plus the other
six questions listed in the text.

7 CORRECT
__________ techniques can be used to learn more about current and potential
customers.
A)
Strategic partnerships
B)
Customer loyalty;
C)
Data mining
D)
Efficient customer response (ECR)
E)

Total quality management (TQM)

Feedback:
Page: 70.
Justification: Data mining takes advantage of the most valuable asset a
company has, its information about its customers.

8
INCORRECT

A company's ability to link production, customer service, and other internal


processes with its customers is its
A)
Functional relationships
B)
Customer value measures
C)
Strategic business units
D)
Spanning processes
E)

Top-to-top selling teams

Feedback:
Page: 73.
Justification: Spanning processes link internal processes with the customer.
Sales management is an important link in the spanning process.

9 CORRECT
A clearly defined mission helps management
A)
Prevent interdepartmental conflict.
B)
Evaluate available market opportunities and avoid those that are inconsistent.
C)
Plan and implement touchpoint functional conflicts
D)
Eliminates the need for specific functional objectives.
E)

Define the competition

Feedback:
Page: 75.
Justification: A mission statement attempts to answer the basic questions
about an organization. What is our business? What should it be? A mission
statement can focus attention and resources in a company.

10
INCORRECT

According to Michael Porter, salespeople in a firm practicing a differentiation


strategy:
A)
Emphasize efficient-scale facilities
B)Dominate a particular target market although its overall market share may be
low
C)
Choose high-growth markets while holding onto substantial mature markets
D)
Attempt to sell nonprice benefits and provide high quality customer service
E)

Insulate themselves from competitive rivalry by creating cost control centers.

Feedback:
Page: 77.
Justification: Porter identified three generic business strategies: low-cost
supplier, differentiation, and niche (or focus). Differentiation gives a
company some insulation against competitors through brand loyalty,
resulting in lower sensitivity to price.

11
INCORRECT

According to Miles and Snow, a firm using an analyzer strategy:


A)
Strives to be a pioneer in product/market development
B)
Emphasizes high volume sales
C)
Sells to high-growth markets while holding onto substantial mature markets
D)
Offers an unlimited stable product line to a dynamic market
E)

Must balance multiple roles servicing existing customers while prospecting

Feedback:
Page: 77.

Justification: Miles and Snow provide three typologies: prospector, defender,


and analyzer. In the analyzer strategy, salespeople have many roles
including attempting to service existing customers, prospecting for new
customers, uncovering applications for their products or services, holding
onto distribution of mature products while supporting campaigns for new
products.

12
CORRECT

The key factor in the generation of strategies is:


A)
Customer loyalty
B)
Consistency with the organizational culture
C)
Creativity
D)
Feasibility of market exchanges
E)

Acceptance by community stakeholders

Feedback:
Page: 79.
Justification: Typically, several strategies can be used to achieve the same
objective. The key is to be as creative as possible in generating strategies,
not evaluating ideas.

13
CORRECT

Which of the following represents a continuum from low to high market


relationships?
A)
Market exchange, strategic partnership, functional relationship
B)
Functional relationship, market exchange, strategic partnership
C)
Market exchange, functional relationship, strategic partnership
D)
Strategic partnership, functional relationship, market exchange
E)

None of the above

Feedback:
Page: 80.
Justification: Market exchanges are one-shot transactions without thought of
future transactions. Functional relationships are long-term relationships
based on cooperation. Strategic partnerships are long-term relationships in
which the partners make significant investments to improve profitability and
jointly achieve strategic objectives.

14
INCORRECT

A functional relationship between buyer and seller is identified by a:


A)
Short-time horizon
B)
Low concern for the other party

C)
Collaborative relationship between the participants
D)
Bargaining relationship between the participants
E)

Cooperative relationship between the participants

Feedback:
Page: 81.
Justification: A functional relationship between buyer and seller is identified
by a cooperative relationship, representing a middle-ground between
transactional and strategic partnerships.

15
INCORRECT

Relationships that result in strategic partnerships go through four stages


including:
A)
Beginning, adjustment, middle, end
B)
Awareness, integration, designation, and expansion
C)
Exploration, change, dynamics, restoration
D)
Suggestion, response, communication, concurrence
E)

Awareness, exploration, expansion, and commitment

Feedback:
Page: 82.
Justification: Relationships that result in strategic partnerships begin with
awareness, then exploration, followed by expansion, and finally
commitment.

16
INCORRECT

A sales strategy of underpromising and overdelivering is likely to result in:


A)
Customer exchange
B)
Transactional partnerships
C)
Relationship approval
D)
Customer delight
E)

Transformational restructuring

Feedback:
Page: 83.
Justification: Customer delight is exceeding customer expectations. One way
to do this is to underpromise and overdeliver.

17
CORRECT

A strategy of convincing customers to buy the higher-quality or newer product is


called

A)
Customer exchange
B)
Transactional partnership
C)
Upgrading
D)
Customer delight
E)

full-line selling

Feedback:
Page: 84.
Justification: Upgrading is similar to repeat sales. The buyer selects the
upgrade because it meets needs better or more efficiently than did the old
product.

18
INCORRECT

A salesperson who, once he or she has a customer relationship, attempts to sell


a wide variety of products or services engages in
A)
Customer value selling
B)
Integrated marketing
C)
Return on customer investment selling
D)
Efficient consumer selling
E)

Cross-selling

Feedback:
Page: 84-85.
Justification: Cross-selling is similar to full-line selling but may include
products that are not related. In cross-selling, the salesperson leverages
existing relationships.

19
INCORRECT

The various ways the firm strategically communicates its message about its
products to the marketplace are referred to as its:
A)
IMC
B)
CRM
C)
ECR
D)
TQM
Feedback:
Page: 86.
Justification: A sales force is just one element in the marketing
communication mix. Other elements, such as advertising, sales promotion,
direct marketing, and public relation/publicity, are also used to communicate
a relationship strategy. Taken as a whole, the various ways the firm

strategically communicates its message about its products to the


marketplace are referred to as its integrated marketing communication
(IMC) strategy.

20
INCORRECT

A manufacturer of bicycles wanting to use a push strategy could:


A)
Create point-of-purchase displays for bike shops
B)
Develop a sales contest for retail salespeople
C)
Teach the retail salespeople how to offer advice on choosing the right model
D)
Develop a just-in-time reordering system
E)Discount bikes to bike rental companies hoping to gain consumer interest and
sales.
Feedback:
Page: 89.
Justification: A push strategy is based on building support among resellers.
Incentives to wholesalers and retailers can encourage them to stock and sell
the product

Chapter 4

1
INCORRECT

In Brenda's company, she manages all functions related to the sales force and
reports directly to the regional sales manager. Brenda is in a
A)
Organization by customer type
B)
Line and staff organization
C)
Organization by selling function
D)
Geographic organization
E)

Line organization

Feedback:
Page: 100.
Justification: A line organization is a vertical system in which the chain of
command runs from the chief sales executive down through levels of
subordinates.

2
INCORRECT

In a _________________ form of vertical organization structure, several sales


management activities such as personnel selection, training, and distributor
relations are assigned to separate staff specialists.
A)
Organization by customer type
B)
Geographic organization
C)
Organization by selling function
D)
Line and staff organization
E)

Organization by product type

Feedback:
Page: 100.
Justification: The line and staff organization is the most common type of
vertical organizational structure used, especially in medium and large firms.

3 CORRECT
Which of the following questions that must be answered as an organization
determines its sales force organization?
A)
Who should be responsible for selling to major national accounts?
B)Should the company employ its own sales force or use manufacturers'
representatives?
C)
What is the appropriate span of control for each sales executive?
D)
How many different sales forces should the company have?
E)

All of the above

Feedback:
Page: 101.
Justification: All of the questions listed plus questions concerning whether
separate sales representatives should be assigned to different products,
types of customers, or sales functions, and how foreign sales should be
organized, need to be addressed.

4 CORRECT
Manufacturers' representatives:
A)
Do not take ownership of the merchandise they sell for manufacturers
B)
Do not take physical possession of the goods they sell
C)
Specialize in the type of products they handle
D)Have no authority to modify their principals' instructions concerning price or
terms of sale
E)
All of the above
Feedback:
Page s: 101-102.
Justification: Manufacturer's representatives are independent contractors
who sell the products of companies they represent.

5
INCORRECT

Selling agents differ from manufacturer's reps in that they:


A)
Are compensated solely by salary from their principals
B)
Act as the representative for the entire output of the principal
C)
Take ownership of the merchandise they sell for manufacturers
D)Have no authority to modify their principals' instructions concerning price or
terms of sale
E)
Have no input regarding the manufacturer's marketing programs
Feedback:
Page: 102.
Justification: Selling agents are similar to manufacturer's representatives
but usually handle the entire output of the seller they represent.

6
INCORRECT

Which of the following is NOT one of the six C's of finding the right sales
representative?
A)
Compatible lines
B)
Compatible territories
C)
Credibility of the rep
D)Control of the rep

E)

Capabilities of the rep

Feedback:
Page: 102.
Justification: The six C's of finding the right sales rep include: compatible
lines, compatible territories, compatible customers, credibility of the rep,
capabilities, and credits.

7
INCORRECT

Which of the following statements about the economic criteria used to decide
between using an independent agent or an internal sales force is true?
A)The fixed costs of using independent agents are higher than those of using a
company sales force.
B)
The variable costs of using independent agents do not change over time.
C)The variable costs of using independent agents are equal to the variable costs
expended on an internal sales force.
D)In terms of cost efficiency, an internal sales force is always more expensive
than independent agents.
E)The costs of using independent agents tend to rise faster as sales volumes
increase.
Feedback:
Page: 103.
Justification: Since independent reps work on straight commission, the cost
of independent agents rises directly with sales.

8
INCORRECT

Most marketing executives argue it is best to use sales representatives and


selling agents
A)
In volatile marketing environments
B)
When the company is small
C)
For territories with low sales potential
D)
When less control over selling efforts is needed
E)

All of the above

Feedback:
Page: 105.
Justification: Many factors influence the choice between an in-house sales
force and the use of independent agents. Selling agents are usually
preferable in volatile markets, when the company is small, in territories with
low sales potential, and when less control is needed over the sales effort.

9 CORRECT
Brad is shifting his sales force to a geographic organization. He knows the major
disadvantage of geographic organization is
A)Lack of division and specialization of labor

B)
Higher costs
C)
More levels of management are needed
D)
Increased customer confusion
E)

All of the above are disadvantages

Feedback:
Page: 106.
Justification: A geographic sales organization has many advantages but one
disadvantage is each salesperson is selling all of the company's products in
the territory.

10
INCORRECT

The major advantage of organizing the sales force by product is:


A)
Salespeople can develop familiarity with highly technical products
B)
Lower cost
C)
It requires fewer sales management personnel than a geographic organization
D)
It can avoid in duplication of sales effort
E)

It allows salespeople to travel less

Feedback:
Page: 107.
Justification: Companies with large. Diverse product lines often organize
salespeople by product lines, allowing people to develop familiarity with
their specific group of products.

11
CORRECT

Glenn is creating sales positions for government and industrial customers. He


knows the advantage of organizing sales efforts by customer type is
A)
Lower selling expenses
B)
Reduced confusion among customers
C)
Better understanding of customers' needs and requirements
D)
Reduced overlap among sales force members
E)

Increased senior management communication

Feedback:
Page s: 108-109.
Justification: Selling to government and industrial customers is often
different from selling to retailers or wholesalers. Many sales organizations
create a separate sales force to meet the needs of these customers.

12
INCORRECT

Reginald divides his sales force into prospectors and salespeople who assist
existing customer service. He is organizing his sales force by
A)
Team selling
B)
Geographic area
C)
Product
D)
Selling function
E)

Matrix organizations

Feedback:
Page: 109.
Justification: Dividing a sales force based on selling function allows sales
managers to take advantage of the different abilities and skills of their staff.

13
INCORRECT

Cameron encourages his sales force to use more telemarketing as part of their
sales efforts. He tells them telemarketing can be used for all of the following
EXCEPT
A)
Prospecting
B)
National key accounts
C)
Servicing existing accounts
D)
Seeking repeat purchases from existing accounts
E)

Gaining quicker communication of newsworthy developments

Feedback:
Page: 110.
Justification: National key accounts are usually very important to the
company and require significant direct contact and little or no telemarketing.

14
CORRECT

Many companies have national or key account sales positions because servicing
major accounts may require
A)
More experience
B)
More expertise
C)
Greater organizational authority
D)
All of the above
E)

None of the above

Feedback:

Page: 112.
Justification: National or key accounts are important and require experience,
expertise, and greater organizational authority.

15
INCORRECT

One of the benefits of team selling is


A)
Higher commissions
B)
People with similar interests can speak directly with one another.
C)
Reduced costs
D)
Lowered role ambiguity
E)

All of the above

Feedback:
Page: 113.
Justification: Selling can often be an isolated activity. When companies use
team selling, one of the benefits is people with similar interests can speak
directly with one another.

16
INCORRECT

Team selling can result in problems with coordination, motivation, and


A)
Manufacturer's representatives needs
B)
Matrix logistical alliance control
C)
Compensation of team members
D)
Co-marketing production scheduling
E)

All of the above

Feedback:
Page: 114.
Justification: Compensation of team members is one of the major stumbling
blocks of team selling, creating potential for resentment among team
members.

17
INCORRECT

Top-to-top is ________________ selling, a variation of team selling, using an ad


hoc arrangement where individuals at different organizational levels are
responsible for maintaining a key relationship with the customer but not as part
of an established team.
A)
Line organization
B)
Key account
C)
Co-marketing
D)Multilevel

E)

Logistical alliance

Feedback:
Page: 114.
Justification: In multilevel selling, each member of the selling team calls on a
person with corresponding status and authority. When the interaction takes
place at the highest levels of both firms, it is called top-to-top selling.

18
INCORRECT

When customers purchase large quantities of salsa at a supermarket it


automatically creates a reorder from the manufacturer. This is an example of a
A)
Line organization
B)
Key account
C)
Co-marketing
D)
Multilevel
E)

Logistical alliance

Feedback:
Page: 115.
Justification: Logistical alliances involve developing computerized
information and ordering systems, enabling customers to place orders
directly and often automatically.

19
CORRECT

Jennifer is assessing the vertical structure in her sales organization. The two key
questions she will answer are, how many levels of sales managers should there
be and
A)
When should salespeople report for work ?
B)
How many people should each manager supervise?
C)
How often should sales managers report to senior executives?
D)
Where to locate the sales staff support?
E)

What products will be sold?

Feedback:
Page: 116.
Justification: When creating a vertical sales organization the key questions
are how many levels of sales managers should there be and how many
people should each manager supervise? This is called span of control.

20
CORRECT

Which of the following is one of the key building blocks to starting a sales force?
A)Define the sales force's mission.

B)
Leverage existing organizational strengths.
C)
Develop compensation plans that motivate.
D)
Provide support.
E)

All of the above

Feedback:
Page: 119-120.
Justification: All of the choices represent key building blocks in starting a
sales force. In addition, appointing an expansion team and creating publicity
to attract salespeople can help in building a sales force.