Professional Documents
Culture Documents
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
Feedback:
Page: 68.
Justification: CRM has evolved from mass marketing, to target marketing, to
4
INCORRECT
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
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
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)
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)
Feedback:
Page: 70.
Justification: Data mining takes advantage of the most valuable asset a
company has, its information about its customers.
8
INCORRECT
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)
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
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
Feedback:
Page: 77.
12
CORRECT
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
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
C)
Collaborative relationship between the participants
D)
Bargaining relationship between the participants
E)
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
Feedback:
Page: 82.
Justification: Relationships that result in strategic partnerships begin with
awareness, then exploration, followed by expansion, and finally
commitment.
16
INCORRECT
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)
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
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
20
INCORRECT
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
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)
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
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)
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
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)
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
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
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)
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)
Feedback:
Page: 112.
Justification: National or key accounts are important and require experience,
expertise, and greater organizational authority.
15
INCORRECT
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
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
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
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)
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)
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.