Deck 1: Introduction to Sales Management

Question 1

What are the key differences between market penetration and product development?

A)Market penetration focuses on current products to existing markets,while product development focuses on new products to existing markets.
B)Market penetration focuses on current products to new markets,while product development focuses on new products to existing markets.
C)Market penetration focuses on new products to existing markets,while product development focuses on new products to new markets.
D)Market penetration focuses on new products to new markets,while product development focuses on new products to existing markets.
E)Market penetration focuses on market development,while product development focuses on diversification.

Answer 1

A

Question 2

As a strategy to achieve growth,diversification is:

A)the most risky,because it ties up human capital that could be used elsewhere
B)the most risky,because it requires developing both new products and new markets
C)the most risky,because it is subject to more regulation
D)the least risky,because if a new product fails,the new market may succeed,and vice versa
E)the least risky,because if the management team researches the product and new market extensively,there is low likelihood of failure

Answer 2

B

Question 3

Which of the following statements is NOT true about the role of salespeople within a company?

A)Sales positions are the hardest jobs to fill.
B)Sales consumes an average of one-fifth of a company's revenue.
C)Sales positions have greater starting salaries on average than other positions such as marketing.
D)Sales managers earn more than managers in other areas.
E)Sales positions will become harder to obtain because the market for sales is becoming saturated.

Answer 3

E

Question 4

Which of the following sales decisions is an example of service dominant logic?

A)billing on a net 90 schedule
B)outsourcing the sales function to cut costs and maximize the sales department budget
C)pricing to undercut competitors in the market
D)offering a service contract for an extra fee to create another profit stream
E)providing a lifetime no-questions-asked replacement warranty on all its products

Question 5

All of the following are skills a sales manager must be able to perform EXCEPT:

A)figuring out how to motivate different people
B)helping employees improve their performances
C)formulating strategies for others to implement
D)advocating on behalf of the sales department to other departments
E)leading the department in selling a personal quota

Question 6

The Ceo of Englewood Educational Consulting announced that all departments must come up with SMART objectives,and that each employee should determine SMART goals for his or her own position.SMART objectives have which advantage over less specific goals?

A)Employees have an easier time implementing goals others set for them than goals they set for themselves.
B)Employees have a more direct plan of action when the goals are specific and detailed,as SMART goals are.
C)SMART goals are inherently more challenging than other goals are.
D)SMART goals are more easily automated than other goals are.
E)Departments using SMART goals will always achieve them.

Question 7

Which of the following is NOT a question that needs to be answered as part of developing a marketing strategy?

A)What markets do we serve with what products?
B)What types of relationships do we form and with whom?
C)What level of investment will be required,and how will we locate and allocate the needed resources?
D)What aspects of our mission statement will we communicate to the public and how?
E)What are the detailed objectives and action plans?

Question 8

Which of the following characteristics is useful for both salespeople and sales managers?

A)the ability to work independently
B)the ability to understand the sales process
C)the ability to organize activities and people
D)the ability to delegate
E)the ability to empathize personally with buyers

Question 9

A company's mission statement serves all of the following purposes EXCEPT:

A)to carry out the company's strategy
B)to inspire the employees and shareholders
C)to guide employees as they make decisions
D)to give purpose to employees' actions
E)to serve as a standard against which decisions can be measured

Question 10

The different dimensions of customer relationship management include all of the following EXCEPT:

A)strategies to acquire new customers
B)strategies to keep the customers the company already has
C)strategies to sell more to existing customers
D)strategies to categorize customers into groups to understand them better
E)strategies to choose different types of salespeople to sell different products

Question 11

Which of the following is an example of using social capital to help grow a company?

A)The HR manager of a company hires new employees to staff a project that will increase revenue by 25%.
B)The CFO of a company increases the budget of the research and development department so they can create a product that will triple profits in 18 months.
C)The CTO of a company leads a software engineering team in developing an internal system that will cut corporate expenses by 12% in the first year alone.
D)The Sales Director of a company institutes a policy requiring all new salespeople to train with a senior salesperson for six months before going out into the field alone.
E)The CEO of a company asks a friend in the automotive industry to cut a company-wide discount on corporately-leased vehicles that saves the company $500,000 a year.

Question 12

Finding a sustainable competitive advantage is difficult because:

A)a company needs a sustainable competitive advantage to succeed in the market
B)market penetration makes sustaining an advantage difficult
C)many advantages (product and low price)can be mimicked by other companies
D)it is easier for a company to focus on sales than on service
E)it is a key component of a strategic plan for any business

Question 13

All of the following are problems that can result from having no formal sales process EXCEPT:

A)The salespeople receive no training before they start working.
B)Sales managers have a hard time managing salespeople if there is no standard process to follow.
C)Sales managers cannot take the time to formalize a sales approach.
D)Sales managers cannot help salespeople improve because they can't diagnose specific problems.
E)The salespeople cannot be compared so relative performance cannot be assessed.

Question 14

A company can grow through all of the following approaches EXCEPT:

A)increasing market share with existing products
B)creating new products
C)developing competing strategies
D)combining new products and new markets
E)finding new markets

Question 15

Which of the following is a way a company can expand into markets in a foreign country without opening another facility in that country?

A)moving its manufacturing plant to that country
B)outsourcing customer service representatives to that country
C)forming a partnership with a dealer in that country to distribute and service products
D)changing the labeling on its packaging to include instructions in foreign languages
E)hiring a consultant to help import parts from that country

Question 16

Which of the following is NOT an issue in transactional sales?

A)The goal is to get the sale completed as soon as possible.
B)The buyer and the salesperson do not form a long-term relationship.
C)The buyer does not need much assistance in making the decision to buy.
D)The product is customizable for each buyer depending on the buyer's needs.
E)The salesperson succeeds by making as many calls as possible.

Question 17

Which of the following is an example of a SMART goal?

A)to go from 1% market share to 90% market share in one month
B)to go from selling 500 units per month to 1000 units per month in 10 months
C)to improve customer satisfaction and loyalty
D)to be the best by 2015
E)to continue the sales process until we lead the industry

Question 18

A company is in danger of losing money if they cannot complete an important project because they do not have the workers necessary to implement the project's objectives.This is an example of the results of a lack of

A)strategic development
B)strategic visioning
C)social capital
D)human capital
E)financial capital

Question 19

A company's mission statement may or may not mention the product(s)the company makes.This is because:

A)mission statements are generic across all industries
B)mission statements are deliberately vague so they inspire all customers equally
C)the mission statement is not the list of objectives or the action plan that discusses specific products
D)the mission statement is written by managers who are not familiar with all the products
E)the mission statement is an internal document only and does not need to list products

Question 20

The sales management team at Goldman Landscapes is going through a six-month process of researching their customers and putting them into groups by preferences.This process is likely to result in:

A)the ability for Goldman to offer services more specifically tailored to what their customers need
B)the chance to expand into markets that do not need landscaping services
C)insider knowledge of their competitors' strategies
D)a lack of focus on the sales process and decreased sales for that six-month period
E)interference by the marketing department in a process that belongs to the sales department

Question 21

Which of the following is a determination made by a sales executive during the process of organizing?

A)How to market a particular product
B)How to implement a sales plan
C)Which type of sales force to use for each product
D)Whether to outsource the shipping department
E)What the quotas should be for the sales department

Question 22

Implementation and follow-up after the sale is made is a key step in the sales process for all of the following reasons EXCEPT:

A)to make sure that the customer's experience with the product is positive
B)to provide training in proper use of the product
C)to set the salesperson apart from competitors
D)to charge a fee for follow-up to increase revenue
E)to gain repeat business from current customers

Question 23

Enterprise selling requires a partnership between:

A)a salesperson and a buyer
B)a selling organization and a buyer
C)a selling organization and a buying organization
D)a fulfillment department and a buying organization
E)a salesperson and an oversight group

Question 24

Consultative selling is most appropriate in a situation in which:

A)the salesperson has the ability to discount the price of the product without a manager's approval
B)the salesperson has enough experience in the industry to understand the buyer's situation
C)the buyer is prepared to place a bulk order
D)the buyer has less money to purchase than the list price of the product
E)the buyer needs a simple product to fit a straightforward need

Question 25

Technology can be used by sales managers and sales executives to:

A)keep track of how salespeople are performing
B)align the sales department with the company's mission statement
C)motivate individual salespeople to make more sales calls
D)perform need identification as part of the sales process
E)obtain buy-in from the marketing department for sales strategies

Question 26

All of the following are functions of gaining pre-commitment from a buyer during the needs identification stage of the selling process EXCEPT:

A)confirming that the salesperson has identified what the buyer needs
B)agreeing on a budget for the transaction
C)recognizing the situation that the buyer has
D)affirming the decision-making process
E)identifying that the buyer has the money,authority,and desire to buy

Question 27

Depending on the sales approach used:

A)the salesperson may need to call in another salesperson to convince the buyer
B)the salesperson may not want to qualify the lead
C)the salesperson may or may not need to follow all eight steps in sequential order
D)the buyer may or may not take physical possession the product
E)the buyer may be able to name the price of the product

Question 28

The sales process,a standard eight-step plan of action,creates a:

A)series of events in which the buyer commits to the salesperson several times
B)series of presentations on the features of the product
C)chain of opportunities for the salesperson to ask for money
D)method that ensures that the buyer will purchase a product
E)method that requires salespeople to do more research than necessary

Question 29

Buyers are more likely to buy a product if the salesperson can show why it:

A)is cheaper than the products sold by other companies
B)is the best solution to a buyer's existing problem
C)is the most advanced product on the market
D)is flexible for many working environments
E)is compliant with all industry standards

Question 30

A salesperson should not conduct a presentation of the product until he or she has determined that:

A)the buyer has the money and affiliation to understand the presentation
B)the buyer has the money,authority,and desire to buy the product
C)the buyer has been approached previously by another salesperson
D)the buyer understands the features and benefits of the product
E)the buyer has decided to purchase the product

Question 31

In an affiliative selling situation,the salesperson spends more time developing:

A)the buyer's knowledge of the product
B)the buyer's trust and friendship
C)the buyer's desire to won the product
D)the buyer's authority to purchase the product
E)the buyer's ability to afford the product

Question 32

All of the following are challenges sales executives face as they implement a sales plan EXCEPT:

A)choosing a compensation plan for salespeople
B)delegating the plan to employees in a way that the employees understand
C)creating a culture that supports ethical behavior
D)supporting employees to hit sales targets
E)determining which type of salespeople will be used for each product

Question 33

The number one responsibility of a field sales manager is:

A)to hire and fire salespeople
B)to achieve a departmental sales quota
C)to be the public face of the company
D)to sell more product to current customers
E)to develop sales strategy

Question 34

Quotas are an important part of a sales plan because:

A)they reflect changes in the market
B)they determine the minimum amount that a salesperson should be selling
C)they report how much a salesperson sells each month
D)they allow salespeople to choose their own compensation levels
E)they create a high-pressure environment that encourages innovation

Question 35

The logical next step after a salesperson alleviates a buyer's objections is:

A)closing the sale
B)identifying the buyer's needs
C)making a presentation
D)implementing the product
E)qualifying the lead

Question 36

When a salesperson is formulating an opening statement to use to approach a buyer,what should the salesperson focus on?

A)asking for the buyer's name
B)identifying the company the salesperson works for
C)closing the sale
D)solving a problem the buyer has
E)explaining the features of the product

Question 37

Which of the following is NOT a feature of a good close?

A)thanking the buyer
B)asking for a referral
C)reinforcing the decision
D)confirming the implementation schedule
E)overcoming the buyer's objections

Question 38

Monitoring is an important duty for sales executives because it allows them to determine if:

A)corporate management is giving support to the sales department
B)sales managers are focusing on performance more than on people
C)buyers are being billed on the correct day of the month
D)the correct sales methods have been chosen and are being followed
E)salespeople are paying attention during weekly sales meetings

Question 39

As a sales manager moves closer to the top of the organization chart,the manager's day-to-day tasks:

A)have less to do with the sales process
B)involve filling out more paperwork each day
C)cannot be performed by just one person
D)involve selling to bigger and bigger accounts
E)require more travel and entertainment

Question 40

All of the following are types of questions in the SPIN technique EXCEPT:

A)questions that ask about a buyer's situation
B)questions that prompt a buyer to identify a problem
C)questions that ask a buyer to consider the implications of the problem
D)questions that ask the buyer to take the next step
E)questions that suggest something the buyer needs and a payoff for the buyer

Question 41

The eight steps in the selling process work best when followed sequentially and all the steps are performed once.

Question 42

In what ways is being a sales manager different from being a salesperson? What are some difficulties that successful salespeople can encounter when they are promoted to management? How can they overcome those difficulties?

Question 43

What are the four ways a company can grow sales? Explain each one.Which one is the most risky? Why?

Question 44

How many steps are there in the selling process? List each step,and briefly describe what that step entails and why it is important.

Question 45

What are the characteristics of a "MAD buyer"? What is another name for a MAD buyer? Why is it important to determine if a lead is a MAD buyer?

Question 46

The FEBA approach consists of a series of questions designed to determine a buyer's needs.

Question 47

Follow-up after a sale is polite,but does not lead to increased sales.

Question 48

A customer who offers objections after a sales presentation will ultimately not buy the product.

Question 49

High-performance selling and a company culture of high ethics are at odds with one another.

Question 50

Explain the concept of strategy hierarchy.What are the elements of a corporate strategy? Give an example of a corporate strategy and a marketing and sales strategy that might follow from it.

Question 51

Why is a good opening statement from a salesperson to a buyer necessary? What are the characteristics of a good opening statement?

Question 52

Buyers can be grouped by how they make decisions.

Question 53

What are the qualities of a good mission statement? Why is a mission statement necessary? What things does a good mission statement do for a company? What elements are not required in a good mission statement?

Question 54

What are the elements involved in the needs identification step of the sales process? Explain each step and why it is important.

Question 55

What are the elements of a SMART objective or goal? What are the benefits of using SMART objectives or goals?

Question 56

Explain the concept of customer lifetime value.What are some examples of products or services for which the customer's lifetime value is very close to the value of a single purchase? What are some examples of products or services for which the customer's lifetime value far exceeds the value of a single purchase?

Question 57

A prospect is a lead that has been qualified.

Question 58

Quotas can be set for individual salespeople as well as for larger groups such as regional or divisional offices.

Question 59

Sales managers who only manage and do not also sell are not able to understand the selling process.

Question 60

By the time the salesperson asks the buyer for the close,the buyer has already given the salesperson commitment to several other requests.

Question 61

In transactional selling,which of the eight steps in the selling process is most important? Why? Which steps may be least important? Why?

Question 62

What are the four activities completed by sales executives? Explain each one,and why it is important.

Question 63

Explain how a sales executive creates a sales approach for a product.How does the sales approach differ from the marketing strategy?

Question 64

What are the differences between organizing and implementing for the sales executive? Why is implementing nearly impossible without prior organization?

Question 65

What are the four statements of the FEBA approach? Describe each statement.During which step of the sales process is FEBA used? What is one advantage of using the FEBA approach?