Deck 2: The Sales Function and Multi-Sales Channels

Question 1

An advantage of outsourcing the sales function is that selling costs can be shared with other manufacturers.If a company manufactures spark plugs,which would be the best company for them to share their outsourced salespeople with?

A)a company that manufactures spark plugs
B)a company that manufactures fan belts
C)a company that manufactures bicycle chains
D)a company that sells credit card processing services
E)a company that sells advertising in women's magazines

Answer 1

B

Question 2

Which of the following is true of inside salespeople?

A)They may be within the company or outsourced,and they sell to customers at customer sites.
B)They may be within the company or outsourced,and they sell to customers from the company's site.
C)They are outsourced,and they sell to customers from the company's site.
D)They are kept within the company,and they sell to customers at customer sites.
E)They are kept within the company,and they sell to customers from the company's site.

Answer 2

B

Question 3

The sales function is different from the selling process for which reason?

A)The selling process is theoretical but the sales function is empirical.
B)The selling process is performed by sellers but the sales function is performed by buyers.
C)The sales function can only be carried out by salespeople,but the selling process refers to many methods of selling.
D)The sales function refers to many methods of selling,but the selling process is carried out by salespeople.
E)The sales function relies on metrics while the selling process relies on forecasts.

Answer 3

D

Question 4

Outsourcing is an increasingly-popular method of increasing profits.In what way can outsourcing selling activity benefit a company financially?

A)The average compensation per salesperson increases significantly.
B)Outsourced salespeople cost the company less money per sale.
C)Companies have to train the outsourced salespeople in American slang.
D)Some companies use a mix of in-house and outsourced salespeople.
E)Outsourced jobs may be filled either in the US or in foreign countries.

Question 5

The Board of Directors of GenTech Corporation,which manufactures silicone parts for use in surgical procedures,is urging the company's management to convert to an electronic data interchange system.Which of the following is NOT an advantage of electronic data interchange (EDI)?

A)lowered costs
B)real-time inventory management
C)increased human interaction
D)automatic reordering
E)efficient use of current technology

Question 6

What is a supply chain?

A)A supply chain is everything that delivers a product to a buyer,from personnel to machines to technology.
B)A supply chain is the fleet of vehicles that deliver product from factories to retail locations.
C)A supply chain is all the elements of a manufacturing process,from machine design to transportation.
D)A supply chain is the hierarchy of personnel in charge of producing products for a company.
E)A supply chain is the detailed diagram of the sales process.

Question 7

Manufacturer's reps and distributors are both outsourced salespeople for a company.In what way is a manufacturer's rep different from a distributor?

A)A manufacturer's rep keeps an inventory of products,while a distributor does not.
B)A manufacturer's rep does not sell directly to contractors,while a distributor does.
C)A manufacturer's rep does not keep an inventory of products,while a distributor does.
D)A manufacturer's rep sells directly to contractors,while a distributor does not.
E)A manufacturer's rep is a type of field rep while a distributor is an inside salesperson.

Question 8

The Director of Sales and Marketing for InNet Software Solutions is considering outsourcing salespeople,and is weighing the pros and cons of each approach.All of the following are advantages of keeping sales positions in-house instead of outsourcing EXCEPT:

A)a company can control the actions of its own employees,including non-sales job tasks.
B)a company can train the sales staff using its own methods
C)a company can control who they hire to sell for them
D)a company's salespeople will focus exclusively on selling that company's product line
E)a company's salespeople will have to learn American slang and expressions.

Question 9

A salesperson can influence the supply chain passively or actively.All of the following are ways a salesperson can influence the supply chain actively EXCEPT:

A)The salesperson arranges for additional financing for the customer at lower rates than usual.
B)The salesperson works with the shipping department to arrange for special delivery methods for the customer.
C)The salesperson brings in product designers to modify the product for the customer.
D)The salesperson arranges for custom implementation at the customer's site.
E)The salesperson predicts the sales to one customer for the upcoming quarter.

Question 10

Many companies,such as IBM,have turned to multiple sales channels to sell their products and services.Companies that use multiple sales channels find that this choice has which of the following effects?

A)Using multiple channels causes confusion,both for the customer and the sales force.
B)Using multiple channels causes harmony,as all the channels use the same salespeople.
C)Using multiple channels causes synergy,although it takes planning to make sure the channels compliment each other instead of competing.
D)Using multiple channels causes hostility,because the different channels bring commissions down for salespeople.
E)Using multiple channels causes efficiency,as all the channels are managed by the same person.

Question 11

In what type of sales situation is a broker commonly used?

A)when the buyer is in one country and the seller is in another
B)when the buyer and the seller are divisions of the same company
C)when the buyer and seller are in the financial industry
D)when the buyer likes to place multiple orders from the same seller
E)when the buyer and seller have radically different metrics for success

Question 12

The Director of Sales at Hewitt Heavy Machinery asks all salespeople to write weekly sales forecasts.Once a salesperson writes a forecast,she or he posts it on the company's intranet so employees in other departments can access it.Which of the following employees would be LEAST likely to use the information in those weekly sales forecasts?

A)the customer service manager,who manages and schedules customer service employees
B)a tech support employee,who fields tech support calls and emails from customers
C)the accounting clerk,who bills clients and pays creditors
D)an auditor evaluating Hewitt's financial disclosure documents,checking for violations of law
E)a shipping coordinator,who sequences and expedites shipping to customers

Question 13

Service providers that manage outsourced salesforces in foreign countries have all of the following challenges EXCEPT:

A)They have to train the workers to speak English with an American accent and using American expressions.
B)They have to set metrics in collaboration with the client company.
C)They have to write and implement the correct sales script for the client.
D)They have to sync their customer information tracking technology with the client's system.
E)They have to provide a college education for their workers.

Question 14

If a company wanted to keep its salespeople within the company but wanted to outsource non-sales jobs,all of the following jobs could be outsourced EXCEPT

A)answering customer inquiries about installation
B)shipping product to customers
C)setting appointments for sales calls
D)sending bills to customers and following up to make sure they are paid
E)providing customers with pricing and product information before the sale

Question 15

Which of the following is LEAST likely to influence a customer's purchase?

A)a personal relationship with the salesperson
B)the company selling the particular product they want.
C)a choice of ways in which they can buy the product
D)a competitive price for the product
E)the sales forecast from the company

Question 16

A manufacturer's rep can sell one single product line,or can sell for non-competing companies (also known as "principals").What would be the main advantage for the manufacturer's rep of selling multiple product lines?

A)The manufacturer's rep would then become a "one-stop shop" for that industry,and would be able to leverage interest in one product line to sell more of others to the same customers.
B)The manufacturer's rep would sell fewer of each type of product but more products overall,thereby carrying less risk if the economy starts to soften.
C)The principals would give the manufacturer's rep a higher commission because the rep was carrying products from multiple principals,and they would feel the need to compete with each other for the rep's loyalty.
D)The principals would monitor the manufacturer's rep's sales closely to make sure the rep was not selling more of other product lines and neglecting theirs.
E)The principals would be able to sell their product through many different manufacturer's reps in the same geographic area.

Question 17

Apex Ink Producers is considering moving from using its current salesperson-based sales channel to a multiple channel model.Which of the following is a reason Apex would use multiple sales channels instead of a single channel?

A)The company's sales model channels all customers through its web portal.
B)The company's customers would like to purchase products using various methods.
C)The company's costs associated with multiple channels are sure to be offset by increased margins on products.
D)The company's sales staff is requesting flex-time.
E)The company's customer base is located in multiple areas all over the country.

Question 18

What does the word "purify" mean in terms of the sales function?

A)It means to change the ways non-sales activities occur so they cost the company less.
B)It means to ask all employees,regardless of job function,to sell to any customer they have contact with.
C)It means to carefully consider the product line and eliminate products that do not sell well.
D)It means to convert factories and production lines to have the least environmental impact possible.
E)It means to choose the most expensive method to reach customers.

Question 19

Another word for "channel" in the phrase "sales channel" is:

A)groove
B)staff
C)method
D)website
E)order

Question 20

Reverse auctions are one method that uses the internet to facilitate sales of products and services.Reverse auctions tend to provide the price advantage for:

A)the vendor
B)the licensee
C)the wholesaler
D)the broker
E)the customer

Question 21

Companies strive to achieve alignment with all the divisions and areas of the company because:

A)alignment tells the shipping division what rates to use to hit the right combination of fast shipping and low cost
B)alignment means that one account rep will sell to all major accounts in each geographic region and will earn higher sales commissions
C)alignment means that all the divisions are working efficiently together to provide service and make money for the company
D)alignment tells the sales manager how accurate the sales forecasts are
E)alignment tells the customer-facing personnel what their sales quotas will be for the month

Question 22

"Suggestive selling" is defined as:

A)suggesting to customers that they buy something that suits them better than what they originally intended to buy
B)suggesting to customers that they buy something from a different company
C)suggesting to salespeople that they try a different sales script to see if they will have a higher number of sales
D)suggesting to customers that they buy something that goes along with their primary purchase
E)suggesting to salespeople that they make contact with current customers to try to sell them products they'd previously purchased

Question 23

In a contact center,ideas such as targeted number of calls per hour,call length,customer satisfaction,and amount of sales made are all examples of:

A)forecasts
B)metrics
C)channels
D)portals
E)distributors

Question 24

Account managers can be all of the following EXCEPT:

A)an inside salesperson
B)an outside salesperson
C)a geographic rep
D)a vertical rep
E)a customer service rep

Question 25

Alignment is most important to which of the following people in a company?

A)The shipping manager,because other divisions in the organization don't have to deal with as many outside delivery companies.
B)The accountant,because other divisions in the organization don't have to deal with complex laws and legal codes.
C)The billing clerk,because other divisions in the organization need to deliver product to the customer so the clerk can bill the customer.
D)The production manager,because other division in the organization need to be ready to process the product when it's manufactured.
E)The salesperson,because other divisions in the organization need to be united to fulfill the salesperson's promises to the customer.

Question 26

Recently,Turner Telecom decided to require all customer-facing personnel to sell to customers during routine interactions.Management created a set of standards to guide the roll-out process to the customer-facing departments.All of the following actions would advance this process EXCEPT:

A)providing extensive training in sales methods to the customer-facing employees
B)generating motivation for customer-facing employees to add the sales function to the job tasks
C)calculating appropriate compensation for the sales the customer-facing employees make
D)evaluating all employees based on whether or not they have met new sales quotas
E)enlisting management support to help the customer-facing employees complete sales-related job tasks

Question 27

Trade representatives sell to:

A)retail customers through the internet
B)retail customers in person
C)organizations that then sell to retail customers
D)organizations that represent a particular industry
E)organizations that provide marketing but not sales

Question 28

How can technology aid in alignment of different divisions of the same company?

A)Computer software can make customer information available to all the divisions that need access to it.
B)Computer software can allow customers to look at sensitive information about other customers.
C)Computer software requires extensive testing and training before it can be implemented by a company.
D)Computer hardware requires a significant capital investment from a company.
E)Computer hardware requires maintenance or a company's entire system can go down.

Question 29

Gulf Star Disc Sports is a new company selling a variety of products used in the growing sport of disc golf.Currently,the disc golf market is dominated by two entrenched competitors.Gulf Star's product compare favorably when customers try them out,but the majority of potential customers is not aware of Gulf Star's offerings.The company has made improving awareness an important goal for the current year. Which of the following actions,if adopted by Gulf Star,would be most likely to create misalignment with the company's goal of improving awareness?

A)expanding its product line to include discs designed for other sports besides disc golf
B)shifting resources from research and development to online advertising
C)adopting stricter limits on reimbursing sales representatives for travel and entertainment expenses
D)rewarding sales representatives more for creating new accounts than for servicing accounts that already exist
E)requiring customer service personnel to indicate how customers first heard about the company when an order is taken

Question 30

What two elements must be in harmony for a company to achieve alignment?

A)information and channels
B)information and divisions
C)information and objectives
D)forecasts and objectives
E)managers and objectives

Question 31

All of the following are examples of customer-facing personnel EXCEPT:

A)vertical reps
B)customer service reps
C)billing clerks
D)internal auditors
E)distributors

Question 32

Structuring the sales staff is a common challenge for sales managers at companies of all sizes.Which of the following is a reason for a sales manager to use field representatives instead of inside salespeople?

A)The salesperson needs to make many calls per hour.
B)The salesperson needs to show the product to the customer in person.
C)The salesperson needs to understand the sales cycle.
D)The salesperson needs to sell to incoming callers.
E)The salesperson needs to use a company vehicle for visits to customers.

Question 33

A vertical rep is one type of salesperson.Which of the following is an example of a vertical rep?

A)a salesperson who sells within accounts in a set geographic region,no matter what the industry
B)a salesperson who sells within accounts in one industry in a set geographic region
C)a salesperson who sells within accounts in the same industry,no matter where they are geographically
D)a salesperson who sells within accounts in one distributorship
E)a salesperson who sells within accounts in one alignment group

Question 34

Anderson Financial is embarking on a system-wide review of their sales and service process.In order to serve customers most efficiently and create profits for the company,Anderson could use a combination of all of the following EXCEPT:

A)inside salespeople and field reps
B)outsourced and company salespeople
C)account managers
D)multiple channels using diverse technologies
E)competing metrics

Question 35

The CEO of Rheon Industries would like customer service reps,tech support reps,and billing clerks to start actively selling to customers these reps have contact with.Rheon Industries' sales director feels that this decision may not be wise.What is the danger of requiring all customer-facing personnel to sell to customers?

A)The customer could be offended and the employee may have no desire to sell.
B)The fulfillment department could process an order slowly causing delays.
C)The salespeople could miss their quotas and the customer could order the wrong product.
D)The theories on suggestive selling could be difficult to communicate to employees.
E)The shipping department could experience technical challenges.

Question 36

Inside salespeople can sell at a company facility,or at which of the following locations?

A)a contact center
B)a channel center
C)a vertical center
D)a forecast center
E)an alignment center

Question 37

Marianne Tocaros is a retail sales rep for a jewelry store.She works only on commission.Which of the following MUST BE true about Marianne?

A)She only earns money if she makes a sale.
B)She makes a percentage of a sale on top of her regular salary.
C)She needs to have a manager's approval to offer a discount to a customer.
D)She is an outsourced employee.
E)She must be paid as an independent contractor.

Question 38

Jerry Rodriguez uses his car as his center of activity in his job selling energy drinks for LiquidZing Unlimited.All day he drives from customer site to customer site for sales meetings.Jerry is considered:

A)a distributing rep
B)a field rep
C)an alignment rep
D)an inside sales rep
E)an interchange rep

Question 39

Which of the following is NOT a type of company-employed sales job?

A)inside salesperson
B)field rep
C)vertical rep
D)manufacturer's rep
E)missionary salesperson

Question 40

Seamless integration is a goal for many companies but is not yet reality for most.Which of the following is NOT an example of seamless integration?

A)buying a product online and then returning it to a retail store
B)buying a product at a retail store and taking it back to the store for a refund
C)buying a product online and picking up the product at a retail location
D)calling a customer service rep on the phone to inquire about an order placed through the company's website
E)getting a quote from a salesperson and then completing the order process through the company's website

Question 41

Explain what "purifying" and "outsourcing" are.How are they similar,and how are they different? How can they save a company money?

Question 42

Customers always buy from the company that offers the lowest price,unless they have a personal relationship with a specific salesperson.

Question 43

Many companies that outsource sales jobs outsource them to India.What is special about India that makes it a good location to outsource to? What are the specific challenges involved in setting up workers in India to sell for American companies?

Question 44

What is the difference between an inside sales rep and an outside rep (field rep)? Where does each work? Which one is more expensive for the company per call,and why?

Question 45

What are some potential problems that can result from selling through multiple channels? How can those problems be avoided? Whose responsibility is it to avoid those problems?

Question 46

What is a "sales forecast"? Who writes a sales forecast? How does a sales forecast influence the supply chain?

Question 47

Customer service representatives may be asked to sell to current customers during the course of a customer service transaction.

Question 48

A reverse auction is won by the company that offers the lowest price.

Question 49

A salesperson writes up the previous month's sales in what is referred to as a sales forecast.

Question 50

An account manager may be responsible for all sales to a particular account,even across product lines.

Question 51

Explain the concept of multiple sales channels,including examples of some different types of channels.What are the benefits of using multiple channels?

Question 52

What does "seamless integration" mean and why is it beneficial for companies? Give an example of a sales and customer service scenario that involves seamless integration.

Question 53

Manufacturer's reps,distributors,and brokers are all salespeople that are not employed directly by a company.What are the benefits of using any of these three types of salespeople for a company?

Question 54

It costs companies more per transaction to take orders through a website than with a salesperson.

Question 55

Clear communication about which channels serve different customers is essential for a company to employ a multi-channel sales approach efficiently.

Question 56

Explain what an account manager does,including what the difference is between a geographic rep and a vertical rep.

Question 57

In the language of sales,"alignment" simply refers to coordinating the sales department and the shipping department.

Question 58

A company can only achieve seamless integration of sales channels by using an electronic data interchange system.

Question 59

Some forms of technology can help a company achieve alignment in the sales process.

Question 60

What does it mean to actively influence the supply chain? Give two examples of ways a salesperson can actively influence the supply chain.

Question 61

Alignment involves many areas and job functions within a company.To whom (which job function)is alignment most important to and why?

Question 62

Explain the idea of alignment within a company.Which departments in a company are involved in alignment,and how?

Question 63

What is a "metric"? How do metrics help the sales function? What happens when departments don't coordinate their metrics with each other?

Question 64

What are the dangers a company might encounter when it asks its non-sales staff,such as customer service and billing reps,to sell to customers during all interactions?

Question 65

What does "suggestive selling" mean? Why is it an effective technique?