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.

Accepted Answer

Market penetration involves increasing market share for an existing product in an existing market, while product development involves creating new product offerings for existing markets. Therefore, option A is the correct answer as it accurately describes the differences between the two concepts.

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

Accepted Answer

Diversification can be a risky strategy because it requires developing both new products and new markets, which can be a challenge. However, it can also lead to significant growth and can help hedge against market volatility or declines in certain industries. While there is some level of risk involved, proper research and planning can mitigate those risks. Therefore, option B is the best choice as it addresses the risks and benefits of diversification.

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.

Accepted Answer

There is currently a high demand for sales positions, and this demand is expected to continue in the future. Therefore, it is not accurate to say that sales positions will become harder to obtain due to market saturation.

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

Accepted Answer

Providing a lifetime no-questions-asked replacement warranty on all its products is an example of service dominant logic because it prioritizes customer satisfaction and building long-term relationships over short-term profits. It also reflects a belief that the company's success is tied to the value it creates for customers, rather than simply the products it sells.

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

Accepted Answer

A sales manager is responsible for leading and managing a sales team, focusing on overall sales strategies, developing and implementing sales plans, overseeing the sales process, and ensuring team members meet or exceed sales targets. A sales manager is not necessarily required to sell or meet 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.

Accepted Answer

SMART objectives have the advantage of being specific and detailed, which provides employees with a clear plan of action for achieving their goals. This specificity helps to ensure that goals are achieved and progress can be measured.

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?

Accepted Answer

The question about what aspects of a mission statement to communicate to the public is more related to tactical communication decisions rather than strategic marketing planning. Strategic marketing focuses on markets, relationships, investments, resources, and detailed objectives rather than specific communication content decisions.

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

Accepted Answer

The ability to understand the sales process is crucial for both salespeople, who need to execute it effectively, and sales managers, who need to oversee and optimize it.

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

Accepted Answer

A company's mission statement is not written to carry out the company's strategy. The mission statement is more focused on providing direction and purpose to the company as a whole, rather than being a tactical tool to achieve specific goals.

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

Accepted Answer

The different dimensions of customer relationship management include strategies to acquire new customers, strategies to keep the customers the company already has, strategies to sell more to existing customers, and strategies to categorize customers into groups to understand them better. The only option that is not included in the dimensions of customer relationship management is E, which refers to strategies to choose different types of salespeople to sell different products. This is more related to sales force management than customer relationship management.

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.

Accepted Answer

By leveraging their social capital and personal relationship with their friend in the automotive industry, the CEO was able to secure a cost-saving discount for the company. This is an example of using social capital to help grow the company.

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

Accepted Answer

Many advantages such as product and low price can be easily imitated by competitors, making it difficult for a company to sustain its competitive advantage. This is why finding a sustainable competitive advantage is a challenging task 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.

Accepted Answer

The other options all highlight problems that can arise from not having a formal sales process. Option C, however, suggests that sales managers are intentionally avoiding formalizing a sales approach rather than being unable to do so.

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

Accepted Answer

Developing competing strategies is not a viable option for a company to grow because it focuses on competing with existing strategies rather than expanding or innovating. All of the other options (increasing market share with existing products, creating new products, combining new products and new markets, and finding new markets) involve expansion and innovation, which are essential for a company's growth.

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

Accepted Answer

The answer of Which of the following is a way...

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.

Accepted Answer

In transactional sales, the product is not typically customizable for each buyer depending on their specific needs. The other options listed are all common characteristics of transactional sales.

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

Accepted Answer

SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Option B is a SMART goal because it is specific (increase sales from 500 to 1000 units), measurable (by tracking monthly sales), achievable (in 10 months), relevant (to the business), and time-bound (by the end of 10 months). The other options do not meet one or more of the SMART criteria.

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

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that a company's workforce possesses. A lack of human capital means that the company does not have the necessary workforce to carry out its projects and objectives, which can lead to losses for the company.

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

Accepted Answer

A mission statement is a broad statement that encompasses a company's overall purpose, values, and goals. It is not intended to be a list of specific actions or products. Instead, the mission statement should provide a clear direction for the company's actions without being overly prescriptive.

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

Accepted Answer

By grouping customers by preferences, Goldman Landscapes will be able to offer services that are specifically tailored to each group's needs. This will increase customer satisfaction and lead to more successful sales.

Quiz 1: Introduction to Sales Management

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

As a strategy to achieve growth,diversification is:

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

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

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

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?

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

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

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

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

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

Finding a sustainable competitive advantage is difficult because:

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

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

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

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

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

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

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: