Deck 1: Introduction to Sales Management in the Twenty-First Century

Question 1

As more and more countries reduce barriers to trade, a sales manager's _________ environment is changing rapidly.

A) Natural
B) Technological
C) Social and Cultural
D) Economic
E) Legal and Political

Answer 1

D

Question 2

The potential demand for a product within a country depends on that country's:

A) Economic growth rate
B) Unemployment rate
C) Inflation rate
D) Disposable income
E) All of the above

Answer 2

E

Question 3

Sales force ethics is considered to be a part of the _____ environment of organizations.

A) Economic
B) Internal
C) Political and legal
D) Ethical
E) Natural

Answer 3

E

Question 4

A few years ago, when Internet sales took off, the major automobile manufacturers had to decide whether they would sell directly or through their dealership network. In this situation a change in the industry's __________________ environment created a potential change in sales strategy.

A) Technological
B) Social and cultural
C) Political and legal
D) Ethical
E) Natural

Question 5

Which of the following is part of the external environment for a distributor of aquariums and everything needed to set up aquariums including tropical fish and plants?

A) Employees who care for fish before they are sold to retailers
B) Competitors who carry the same aquarium equipment
C) The financial resources needed to create the proper environment for breeding the fish
D) The participative organizational culture the distributor has
E) The distributor's privately-owned warehouse for storing the aquarium equipment

Question 6

Which of the following types of laws is most important to managers of sales programs?

A) Real estate
B) Civil liberties
C) Consumer protection
D) Criminal
E) All are important to sales programs

Question 7

Mike, a sales rep for a major computer software company, knows his company does not plan to maintain updates for the software. When selling the software package to customers he implies the company will continue to support the software. Mike could create a ________________ legal problem.

A) Truth-in-lending
B) Breach of warranty
C) Equal employment opportunity
D) Situational ethics
E) Tying agreement

Question 8

Which of the following statements about the legal-political environment is true?

A) The two broad categories of laws that are particularly relevant to salespeople are Federal Trade Commission regulations and state cooling-off laws
B) Antitrust laws have no impact on sales activities
C) The number of laws regulating personal selling and all other aspects of conducting business have decreased dramatically over the last three decades
D) A salesperson's claim that the refrigeration unit he was selling would keep food cold even if the electric power was off for six days could have legal consequences, but not ethical, because the salesperson was simply trying to make a sales when he made that statement
E) Many salespeople are unaware that they assume legal obligations every time they approach a customer

Question 9

Karen is studying the potential for selling her company's products in China. As part of her analysis, she is assessing the number, types and availability of wholesalers and retailers. Karen is studying the country's:

A) Natural conditions
B) Technological feasibility
C) Social and cultural norms
D) Distribution structure
E) Legal and political constraints

Question 10

Which of the following is NOT a part of a consumer products manufacturer's external economic environment?

A) The existing channels of distribution in the industry
B) The number of companies competing in that industry
C) Society's beliefs about savings and spending
D) Unemployment in the area where the manufacturing plant is located
E) Nationwide inflation

Question 11

One of your customers suggests ""I'll buy from you if you buy from me."" This could be a violation of ______________ laws.

A) Packaging and labeling
B) Cooling-off
C) Tying agreement
D) Reciprocal dealing
E) Truth-in-lending

Question 12

After purchasing a car from a dealership, Martin is told by the dealership that the interest rate will be higher than what he has agreed to when he bought the car. The dealership has probably violated ______________ laws.

A) Packaging and labeling
B) Cooling-off
C) Tying agreement
D) Reciprocal dealing
E) Truth-in-lending

Question 13

Which of the following statements about ethics and business is true?

A) Two-thirds of executives surveyed about their attitude toward commercial bribery said they considered bribes unethical and would never use them as a sales tactic
B) Written ethical policies are more harmful than helpful to the sales force because they diminish the salesperson's ability to be flexible
C) Bribes and kickbacks are not a problem in the United States
D) Management directives do not deal with many situations that are viewed as ethical dilemmas by the sales force
E) None of the above statements about ethics and business is true

Question 14

State _______________ laws allow consumers to cancel contracts signed with door-to-door salespeople within a limited number of days after agreeing to such contracts.

A) Packaging and labeling
B) Cooling-off
C) Tying agreement
D) Reciprocal dealing
E) Truth-in-lending

Question 15

The difference between a law and ethics is best described by:

A) What is ethical may not be legal
B) Laws are concerned with the development of moral standards
C) What is legal may not be ethical
D) Formal policies define what is legal and ethical for salespeople
E) Legal puffery is ethical too

Question 16

Jorge finds he has lost out to his major competitor on three recent contracts. Through his customers, he learns his competitor has cut prices and lowered financing costs. Jorge is observing a change in his _____________ environment.

A) Economic growth rate
B) Technological
C) Social and cultural
D) Natural
E) Legal and political

Question 17

Which of the following statements about sales programs and performance is true?

A) The sales manager must adapt his or her strategies to the existing environment rather than trying to make the environment fit the strategies
B) The sales program is the one part of the marketing strategy that seldom needs changing
C) Management should not engage in planning for organizations that operate in volatile environments because their plans would have to be revised or even scrapped frequently
D) Factors in the internal and external environment can have a strong influence on strategic plans, but not on strategic implementation
E) Changes in an organization's marketing strategy are unlikely to have any impact on its sales program

Question 18

Antitrust laws:

A) Restrict marketing activities that would reduce competition
B) Set standards of quality for specific products
C) Allow consumers to cancel contracts signed with door-to-door salespeople within a limited number of days after signing the contract
D) Prohibit unfair or deceptive packaging
E) Do not apply to companies that sell to the consumer market

Question 19

Equal employment opportunity legislation:

A) Directly affects how sales managers implement their sales programs
B) Is a form of consumer protection legislation
C) Is becoming less important as the sales force is becoming more culturally diverse
D) Is a form of antitrust legislation
E) Does not apply to sales positions

Question 20

The Robinson-Patman Act deals with:

A) Tying contracts
B) Discriminatory prices or services
C) Reciprocal dealing arrangements
D) Unfair or deceptive packaging
E) Price-fixing among competing firms

Question 21

When developing the sales program for her university, Yesenia recognized in the short run, her program:

A) Must fit within the organizational situation and limitations
B) Should push the envelope of institutional selling
C) Must include an analysis of long-term threats
D) Should emphasize possibilities rather than current conditions
E) Should maximize short run revenues

Question 22

Which of the following is an example of the external natural environment for a manufacturer of metal lawn furniture?

A) A longer than usual distribution channel due to a rail strike
B) Consumer trend toward treating gardens like another room
C) The popularity of metal lawn furniture that looks vintage rather than newly bought
D) A flood at the manufacturer's main warehouse
E) Inflationary pricing by competitors

Question 23

What six variables make up a firm's internal organizational environment?

Question 24

Discuss the issues forcing sales organizations to reinvent themselves in the twenty-first century.

Question 25

Equal employment opportunity laws make it unlawful to discriminate against a person in hiring or promotion based on what factors?

Question 26

What is demarketing?

Question 27

The most effective way for sales managers to influence the ethical performance of their salespeople is:

A) To have formal policy
B) Provide clear guidelines
C) Communicate policies clearly
D) Lead by example
E) Punish unethical performance

Question 28

How is ethics different from laws?

Question 29

What are the three categories of laws that are particularly relevant to sales programs?

Question 30

How is sales leadership different from sales management?

Question 31

The sales management process involves what three interrelated sets of decisions or processes?

Question 32

Briefly discuss the three ""new-age"" themes of sales management in the twenty-first century.

Question 33

John, the sales manager for a building materials company, knows the customers in one profitable sales territory, are particularly hostile to women sales reps. John faces an ethical dilemma primarily in the area of:

A) Determining compensation and incentives
B) Equal treatment in hiring and promotion
C) Respect for individuals in supervisory and training programs
D) Fairness in the design of sales territories
E) Fairness in the assignment of sales territories

Question 34

What two sets of ethical dilemmas are of particular concern to sales managers?

Question 35

Many firms use environmental scanning to assess their external environment. Environmental scanning should be used to:

A) Respond to current crises
B) Identify future threats and opportunities
C) Determine personnel performance
D) Allocate financial resources
E) Assist with service delivery

Question 36

After a major hurricane, a building products company rationed its supply of roofing materials among its major customers. This is an example of:

A) Internal environmental control
B) External environmental control
C) Demarketing
D) Transactional selling
E) Discontinuous change

Question 37

Sarah and Steve are sales reps for a major pharmaceutical company in the same geographic area. Sarah calls on private practice physicians, while Steve calls on hospital groups. Their sales manager would likely have an ethical dilemma in the area of:

A) Determining compensation and incentives
B) Equal treatment in hiring and promotion
C) Respect for individuals in supervisory and training programs
D) Fairness in the design of sales territories
E) Fairness in the assignment of sales territories

Question 38

In developing ethical standards for your company, you attempt to anticipate actions that would or could be harmful to consumers or the organization. For your company, ethics is:

A) Consistent with legal standards
B) More proactive than the law
C) Responding to negative consequences of past actions
D) A formal statement of legal requirements
E) All of the above

Question 39

What is the most effective way for management to influence the ethical performance of their salespeople?

Question 40

What are the major demographic trends in the United States affecting selling?

Question 41

The building of relationships between buyers and sellers requires a much greater emphasis on ethics than was expected with transactional exchanges.

Question 42

Many selling situations that involve ethical issues are not addressed by management directives.

Question 43

The five broad categories that make up the external environment are (1) economic, (2) social and cultural, (3) legal, political, and ethical, (4) natural and (5) technical.

Question 44

Antitrust laws are aimed primarily at preserving and enhancing competition among firms in an industry.

Question 45

The sales force is usually a firm's most direct link with the customer.

Question 46

The development of a sales program actually begins with top management's specification of a mission statement.

Question 47

Personal selling is the most expensive marketing communications tool that most organizations use.

Question 48

The most effective way for management to influence the ethical performance of their salespeople is to develop a comprehensive ethical policy.

Question 49

Dominique, the new national sales manager is learning about the internal organizational environment in her company. She will learn about all of the following EXCEPT:

A) Human resources
B) Financial resources
C) Service capabilities
D) Social and cultural environment
E) Research and development activities

Question 50

Today it is common for sales managers to direct rather than mentor salespeople.

Question 51

CH 1 How is sales leadership different from sales management?

Question 52

The sales manager of the future is more likely to be a coach or a team leader rather than an authoritative figure isolated in the upper reaches of a corporate hierarchy.

Question 53

The most obvious impact of the technical environment on marketing is the ability to create and maintain huge customer databases.

Question 54

An integrated marketing strategy is one part of a firm's sales program.

Question 55

A company's distribution system is part of its external economic environment.

Question 56

Selling skills and requirements vary due to the consistency of the buying process and constant level of product complexity.

Question 57

A focus on relationship selling usually increases the number of vendors a company does business with.

Question 58

Discontinuous changes are environmental changes so different from what has been experienced before that firms must take drastic strategic action in order to be successful.

Question 59

Mergers often take place so that the purchased companies can obtain the financial resources necessary to realize their full potential in the marketplace.

Question 60

What technologies, other than the Internet, are being widely used in sales force communication?

Question 61

Gwen, a sales manager for Delicious Diets, knows it is important to:

A) Monitor the marketing environment
B) Predict how the environment might change
C) Develop strategies for changing marketing environments
D) Create plans for the sales function suited to environmental conditions
E) All of the above

Question 62

The increasing number of Spanish-speaking consumers in many areas of the United States is an example of:

A) An environmental force that can constrain other organization's ability to pursue certain marketing strategies or activities
B) Environmental variables and changes in those variables over time, helping to determine the ultimate success or failure of marketing strategies
C) Changes in the environment creating new marketing opportunities for an organization
D) Environmental variables affected or changed by marketing activities
E) None of the above

Question 63

Much of what drives ethical behavior in sales organizations is the overall culture of the firm and:

A) Service capabilities
B) Technological support
C) Supply chain management strategies
D) The tone set by upper management
E) The external environment

Question 64

Which of the following statements about the sales force in the twenty-first century is true?

A) Sales managers will use a hands-off approach and let the professional salesperson be his or her own boss
B) Transactional exchanges no longer occur
C) Sales management must be smart and nimble and provide technology-centered solutions to support the sales effort
D) Salespeople make little use of the Internet because they realize the importance of the personal touch
E) All of the above statements about the sales force in the twenty-first century are true

Question 65

Which of the following statements about sales force management is true?

A) The sales force is the firm's most direct link to the customer
B) The statement, ""The world will beat a path to your door if you build a better mousetrap,"" reflects how business operates today
C) As organizations implement the marketing concept, they soon realize how important it is to be sales-oriented
D) Personal selling is usually less expensive than advertising
E) Sales management is no different from any other kind of management

Question 66

Sales management is a multi-step interrelated process. Which step is concerned with environmental factors and attempts to organize the overall selling efforts as well as integrate them with other elements of the firm's marketing strategy?

A) The organizing stage of the sales program
B) The implementation stage of the sales program
C) The evaluation and control of sales force program
D) The formulation of the sales program
E) All of the above processes are concerned with environmental factors and attempt to organize the overall selling efforts as well as integrate them with other elements of the firm's marketing strategy

Question 67

Alex is the new sales manager for FDP pet vitamins. He quickly recognizes his sales force does not have a global focus. To help motivate his staff toward expanding globally he points out:

A) Today, customers can communicate worldwide
B) There are significant growth opportunities outside the domestic market
C) Their customers are global
D) All of the above
E) None of the above

Question 68

Voice over Internet Protocol (VoIP) a technology allowing telephone calls using the Internet is an example of:

A) An environmental force that can constrain other organization's ability to pursue certain marketing strategies or activities
B) Environmental variables and changes in those variables over time, helping to determine the ultimate success or failure of marketing strategies
C) Changes in the environment creating new marketing opportunities for an organization
D) Environmental variables affected or changed by marketing activities
E) None of the above

Question 69

The difference between transactional selling and relationship selling is:

A) In transaction, selling buyers must pay cash
B) In relationship selling, buyers and sellers must be related
C) In transaction selling, sellers provide greater service
D) In relationship selling, sellers work to provide value to their customers
E) In transaction selling, the transaction is the beginning of a relationship

Question 70

Brenda is the newly appointed sales manager for Beta Business Products. She knows sales force management is a dynamic process and therefore:

A) Arranges her office to facilitate leadership
B) Studies her firm's environmental circumstances including both internal and external environments
C) Solicits business from old contacts as a first priority
D) Sells senior management on the idea of leaving the sales force alone
E) Offers bonuses to salespeople who meet their goals

Question 71

Sales force managers are confronted with many new issues in the twenty-first century including:

A) Creating more nimble sales force organization
B) Building long-term relationships with customers
C) Gaining greater commitment from salespeople
D) Leveraging available technology
E) All of the above

Question 72

Discontinuous changes force companies to:

A) Lower their prices
B) Take drastic strategies in order to be successful
C) Expand long-term research and development capabilities
D) Implement an integrated sales strategy into the corporate culture
E) Move from relationship to transactional selling

Question 73

In the twenty-first century, sales leaders are:

A) Controlling rather than communicative with personnel
B) Becoming coaches instead of supervisors
C) Empowering sales managers to make decision
D) Centralizing control as bosses
E) Directing sales people to achieve the defined goals

Question 74

Sales management is a multi-step interrelated process. Which step is concerned with selecting appropriate sales personnel and designing and implementing policies and procedures that will direct their efforts towards the desired objectives?

A) The organizing stage of the sales program
B) The implementation stage of the sales program
C) The evaluation and control of sales force performance
D) The formulation of the strategic sales program
E) All of the above processes are involved with selecting appropriate sales personnel and designing and implementing policies and procedures that will direct their efforts toward the desired objectives

Question 75

Anti-obesity promotions by the government and other health organizations is an example of:

A) An environmental force that can constrain other organization's ability to pursue certain marketing strategies or activities
B) Environmental variables and changes in those variables over time, helping to determine the ultimate success or failure of marketing strategies
C) Changes in the environment creating new marketing opportunities for an organization
D) Environmental variables affected or changed by marketing activities
E) None of the above

Question 76

Brendan is a new sales rep and is learning about his company's corporate culture. He will try to learn about the company's:

A) Financial condition
B) Service capabilities
C) History
D) Research and development efforts
E) Technological capacity

Question 77

The movement toward relationship selling causes most firms to:

A) Increase the size of the sales force
B) Reduce the number of vendors they do business with
C) Focus on maximizing sales
D) Increase the cost of value management
E) Solicit new sources of supply rather than from existing sources

Question 78

Microsoft's bundling of personal computer operating systems with its Web browser is an example of:

A) An environmental force that can constrain other organization's ability to pursue certain marketing strategies or activities
B) Environmental variables and changes in those variables over time, helping to determine the ultimate success or failure of marketing strategies
C) Changes in the environment creating new marketing opportunities for an organization
D) Environmental variables affected or changed by marketing activities
E) None of the above

Question 79

A sucker may be born every minute, but if your business depends on repeat business and word-of-mouth advertising:

A) Transactional sales will work best
B) Relationship selling will conflict with ethical standards
C) High ethical standards are required
D) Sales managers will need to control all aspects of the sales process
E) Static sales strategies will work best

Question 80

Which of the following questions addresses the internal organizational issue of supply chain capabilities?

A) Can we afford to do this?
B) Will we meet Wal-Mart's delivery deadline?
C) What will senior management think?
D) When will the new product line be developed?
E) All of the above are supply chain capability questions