Question 1

Cutco is a manufacturer of high-end cutlery for the home chef and markets their products through a sister company, Vector Marketing who often contracts with college students who are independent sales representatives for the company. Vector provides free product and sales training to their independent sales representatives and encourages them to take food with them on sales calls such as apples, cucumbers, tomatoes or other fresh produce so that prospective customers can actually use the knives and experience the Cutco difference. In addition, Cutco is relatively famous for their kitchen shears that can cut through a penny and during training, all Vector Marketing representatives are taught how to show the versatility and value of the shears. Which step in the sales process would a Vector Marketing representative have customers use the knives or kitchen shears?

Accepted Answer

Demonstration is the step in the sales process where the product's features and benefits are shown in action, such as using knives or shears to cut through various items to showcase their quality and effectiveness.

Question 2

As a new salesperson, you are concerned with how your decisions will affect your customers, your sales team, and your company. You notice that many of your workmates accept gifts and perks from clients, even though that practice is frowned upon by management and discouraged according to what you have read in the code of conduct handbook. Some colleagues have been reprimanded for accepting gifts from customers just in the short time you have been with the company. Which of the following best describes this activity?

Accepted Answer

Accepting gifts from clients, despite being discouraged by management and the code of conduct, directly relates to personal ethical behavior. It involves making decisions that align with or go against established ethical guidelines and personal integrity.

Question 3

The top marketing manager of your company has asked you to make recommendations about your sales representatives who make up the sales force for your business-to-business auto parts customers. These territories are geographically structured and the goal is to move away from territory-based sales to customer-oriented sales; as a result, these sales reps may be reassigned. Based on this project request, what element of the sales force management process will you focus on?
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Accepted Answer

The focus is on organizing the sales force to transition from a territory-based sales approach to a customer-oriented sales approach, which involves reassigning sales representatives to align with the new strategy.

Question 4

Bailee recently joined a direct sales company as an independent contractor and earns 20% on product sales. She's excited about the opportunity to earn additional income by using social media to market her products to friends. Recently, she was a top 10 producer and sold $1000 in product which translates to an extra $200 in income for Bailee. The type of compensation Bailee receives from the company is called:

Accepted Answer

Bailee earns a percentage of the sales she makes, which is defined as commission. This is a common compensation structure in sales roles, where income is directly tied to performance.

Question 5

​As Tom begins his new sales job, he is looking forward to interacting with customers. Tom's strengths are in personal, one-to-one communication. Choose the type(s) of sales channels that Tom probably hopes to use.

Accepted Answer

Tom's strengths in personal, one-to-one communication align well with field sales and over-the-counter sales, where direct interaction with customers is key.

Question 6

A manufacturer wants to increase purchase rates of its product and reward those consumers who make multiple purchases. It decides to use a consumer-oriented sales promotion that has an expiration date and requires the purchaser to submit a proof of purchase. Which sales promotion will the manufacturer use? ​

Accepted Answer

A rebate is a sales promotion that requires consumers to submit proof of purchase to receive a partial refund, and it often has an expiration date.

Question 7

​As a new employee in the sales promotion department of a hotel chain, you proudly tell a coworker about all the ways you can help the chain grow. Later, you're embarrassed when you realize you misspoke. You mistakenly claimed that sales promotion is especially well suited for:

Accepted Answer

Sales promotion is typically more focused on short-term tactics to boost sales, such as discounts or special offers, rather than long-term brand awareness, which is more effectively achieved through advertising and public relations.

Question 8

What are the typical first and last steps in the personal selling process? ​

Accepted Answer

Prospecting is typically the first step in the personal selling process, where potential customers are identified. Follow-up is the last step, ensuring customer satisfaction and building long-term relationships.

Question 9

​As head of sales for your firm, one of your key supervision-related responsibilities is determining an optimal span of control. You consider all of the following factors except:

Accepted Answer

The amount each salesperson is paid is not a factor in determining the optimal span of control. The span of control is more about managing workloads, complexity, interdependence, training, and managerial ability, rather than compensation levels.

Question 10

Scott has an 8-year-old Labrador Retriever who's starting to suffer from arthritis. On a recent trip to his veterinarian, the doctor recommended that Scott start using a prescription anti-inflammatory and pain medication for his dog. The veterinarian thinks a new drug, Previcox is extremely effective but relatively expensive at $1 per dose which is given daily. The drug sales representative has provided the veterinarian with a promotion opportunity where new customers can receive a VISA gift card of $12 when a new prescription is filled. The drug company is offering the veterinarian and their customers a(n):

Accepted Answer

The drug company is offering a rebate, which is a return of part of the purchase price by a seller to a buyer, usually on the condition of a purchase within a specified period. The VISA gift card acts as a form of rebate, providing a direct incentive to the customer after the purchase.

Question 11

Brandi is an account executive with Wirtz Beverage, a wine and spirits distributor with an extensive catalog of brands. She typically meets with restaurants, bars, and hotels to market her products and assists customers in developing their beverage menu to generate sales revenue and meet customer's needs. Recently, she had the opportunity to offer customers a great deal - if they ordered 5 cases of wine (assorted brands), they could receive the 6th case at 50% off retail. Wirtz Beverage offered this promotion in order to reduce warehouse inventory and shift inventory from their warehouses to the customer's business location. This is an example of a(n):

Accepted Answer

This is an example of a trade allowance, where a discount or deal is offered to the trade (in this case, restaurants, bars, and hotels) to encourage bulk purchases or to reduce inventory.

Question 12

In her role as sales manager, Julie tells her team to always behave ethically on the job. However, Barbara sees Julie talk a customer into buying an unneeded product just because the sale will fulfill her quarterly quota. If Julie really wants to create a culture that encourages ethical behavior, she must:

Accepted Answer

Creating and enforcing an ethical corporate culture is essential for ensuring that employees' actions align with the company's ethical standards. Julie's behavior contradicts her verbal encouragement of ethical behavior, undermining her credibility and the effectiveness of her message. By establishing clear ethical guidelines and holding everyone, including herself, accountable to them, Julie can better foster an environment that genuinely encourages ethical behavior.

Question 13

Carlos has always been interested in the medical profession and took advanced biology and human anatomy courses in college so he could pursue his dream of working in the medical device industry. He's now employed with Stryker that is a leading medical device company offering specialized products such as artificial joints and surgical tools. Carlos works in the orthopedics division and often demonstrates his company's products with surgeons in the operation room at hospitals and enjoys the opportunity to train physicians on new equipment or devices. Carlos has an office in his apartment and works with physicians, hospitals and medical offices in his 2-state territory. Stryker provides a company car, computer, and expense account so Carlos can minimize his out-of-pocket expenses when traveling to meet with prospects and customers. Which of the following sales channels is most appropriate to describe Carlos' position with Stryker?

Accepted Answer

Carlos' role involves traveling to meet with clients and demonstrating products in person, which is characteristic of field selling.

Question 14

Drew is a sales manager with Fastenal - an industrial distributor of supplies for manufacturing, facility managers, and other industrial customers. He currently supervises 7 people and is wondering the typical or optimal number of first-line sales representatives that he should supervise. Based on the text, what do you recommend as the optimal number for him to supervise?​

Accepted Answer

The optimal number of first-line sales representatives a manager should supervise is typically around 6, as it allows for effective management and communication without overburdening the manager.

Question 15

Which of the following statements is TRUE about personal selling?

Accepted Answer

Personal selling involves direct, face-to-face interaction between the salesperson and the customer, making the sales process interpersonal. This method is often used for complex, customizable, or high-value products that benefit from detailed explanations and demonstrations.

Question 16

Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop and automotive service providers as well as insurance agents. Chelsey knows that many automobile owners have car rental riders as part of their automobile insurance and when their car is damaged from a storm or accident, they could receive a rental car while their vehicle is being repaired. When Chelsey meets with her customers, she typically promotes the features and benefits of Enterprise such as how Enterprise provides exceptional service and goes above and beyond to pick-up customers at their preferred location and gives them their rental vehicle. In addition, most of Enterprise's fleet of vehicles are less than 2 years old and are well maintained to provide a comfortable driving experience. Chelsey tells her agent and body shop owner clients that by using Enterprise's services, their customers will have higher levels of customer satisfaction with their repair experience and that translates into loyalty for the insurance agent. During which step in the personal selling process will Chelsey share this information?

Accepted Answer

During the presentation step of the personal selling process, salespeople share information about their product or service, highlighting features and benefits, as Chelsey does by discussing Enterprise's exceptional service and fleet quality.

Question 17

​You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in the sales process?

Accepted Answer

Qualifying is crucial because it involves determining whether a potential customer has the need, desire, and financial capacity to purchase the product. In this scenario, while many young adults are enthusiastic, they may not have the financial means to afford a speedboat, making it essential to qualify them before proceeding further in the sales process.

Question 18

You are the head of sales training for a major financial services firm in New York City. You are conducting a sales training class for a group of new trainees. You are a strong believer in using a structured approach to personal selling. Based on this information, which of the following personal selling process steps are you going to tell the trainees to perform first?

Accepted Answer

The first step in a structured personal selling process is to identify and develop a database of potential customers, which is known as prospecting. This step is crucial as it lays the foundation for the subsequent steps in the sales process.

Question 19

Which of the following statements is accurate about sales promotion? ​

Accepted Answer

Sales promotion includes tactics like discounts, coupons, and contests to provide extra incentives for customers to make a purchase, thereby potentially increasing sales.

Question 20

Brittany is a sales representative with CDW, an information technology reseller. She is a specialist for the education market and contacts her customers who are typically information technology directors for K-12 schools and higher education. Her territory includes the entire United States and she is able to have flexible hours since some days she may arrive early to contact customers on the East Coast or stay late if she's contacting customers in the Mountain or Pacific time zones. Her company has a proprietary phone technology system which provides names and contact information of leads and current customers so Brittany can make the most of her sales calls and be more productive. She typically makes 20 to 25 dials an hour and on average is able to speak with 2-3 individuals each hour. She was initially surprised at her ability to connect with customers and create relationships through her phone conversations and has created trust-based relationships over time. Her customers value her advice and opinions because she understands their needs, has expertise in the products and services she represents, and always seeks to meet their needs. Brittany's position is best categorized as a(n) ________ channel position.

Accepted Answer

Brittany's role involves contacting customers and leads primarily through phone calls from a single location, without the need to travel to meet clients in person, which is characteristic of an inside sales position.

Quiz 18: Personal Selling and Sales Promotion

​As Tom begins his new sales job, he is looking forward to interacting with customers. Tom's strengths are in personal, one-to-one communication. Choose the type(s) of sales channels that Tom probably hopes to use.

​As a new employee in the sales promotion department of a hotel chain, you proudly tell a coworker about all the ways you can help the chain grow. Later, you're embarrassed when you realize you misspoke. You mistakenly claimed that sales promotion is especially well suited for:

What are the typical first and last steps in the personal selling process? ​

​As head of sales for your firm, one of your key supervision-related responsibilities is determining an optimal span of control. You consider all of the following factors except:

Which of the following statements is TRUE about personal selling?

​You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in the sales process?

Which of the following statements is accurate about sales promotion? ​

As Tom begins his new sales job, he is looking forward to interacting with customers. Tom's strengths are in personal, one-to-one communication. Choose the type(s) of sales channels that Tom probably hopes to use.

As a new employee in the sales promotion department of a hotel chain, you proudly tell a coworker about all the ways you can help the chain grow. Later, you're embarrassed when you realize you misspoke. You mistakenly claimed that sales promotion is especially well suited for:

What are the typical first and last steps in the personal selling process?

As head of sales for your firm, one of your key supervision-related responsibilities is determining an optimal span of control. You consider all of the following factors except:

You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in the sales process?

Which of the following statements is accurate about sales promotion?