Chapter 18 exam review

Question 1

Paid personal communication that informs customers and persuades them to buy products in an exchange situation

Answer 1

personal selling

Question 2

advantage: provides marketers the greatest freedom to adjust to satisfy customers
disadvantages: it is the most expensive element in the promotion mix

Answer 2

Personal selling

Question 3

7 steps of the general selling process:

Answer 3

1) Prospecting 2) Preapproach 3) Approach 4) Making the Presentation 5) Overcoming Objections 6) Closing the Scale 7) Following Up

Question 4

developing a database of potential customers
names can be found in a variety of sources internal and external to the firm: company sales records, trade shows, databases, trade association directories

Answer 4

1) Prospecting

Question 5

before contacting them, the salesperson analyzes information about the prospect’s needs
identify key decision-makers, review account histories and problems
contact other clients for information
asses credit histories and problems
prepare sales presentations
identify product needs
obtain relevant literature

Answer 5

2) Preapproach

Question 6

the manner in which a salesperson contacts a potential customer
is a critical step because the first impression of the salesperson may be long-lasting
the salesperson must create a relationship with the prospect, not just sell products
typical approaches: referrals, cold canvassing, repeat contact

Answer 6

3) Approach

Question 7

effective salespeople anticipate and counter objections before the prospect raises them
the safest approach is to be prepared and handle objections as they arise

Answer 7

5) overcoming objections

Question 8

the salesperson must attract and hold the prospect’s attention, stimulate interest in and sparks a desire for the product
adapt the presentation to the needs of the prospect

Answer 8

4) making the presentation

Question 9

the stage in the personal selling process when the salesperson asks the prospect to buy the product
the salesperson may attempt a “trial close” by asking questions that assume the prospect will buy

Answer 9

6) closing the sale

Question 10

the salesperson must follow up the sale
the salesperson should determine if the order was delivered on time and was installed properly; should learn whether the customer has problems or questions about the product; and should determine the customer’s future product needs

Answer 10

7) Following up

Question 11

sell to new customers and increase sales to current customers

Answer 11

order getters

Question 12

primarily seek repeat sales
inside OT works in sales offices
outside OT travel to customers

Answer 12

order takers

Question 13

staff members who facilitate selling but are not involved solely with making sales

Answer 13

support personnel

Question 14

assist producer’s customers in selling to their own customers

Answer 14

missionary salespeople

Question 15

take orders in addition to being support personnel

Answer 15

trade salespeople

Question 16

give technical assistance

Answer 16

technical salespeople

Question 17

using a team of experts from all functional areas pf a firm, led by a salesperson, to conduct the personal selling process

Answer 17

team selling

Question 18

building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time

Answer 18

relationship selling

Question 19

give a sale force direction and purpose

Answer 19

sales objectives

Question 20

additional salespeople are added to the sales force until the cost of an additional salesperson equals the additional sales generated by that person

Answer 20

marginal analysis

Question 21

a process by which the sales manager develops a list of qualified applicants for sales positions

Answer 21

Recruiting

Question 22

salespeople are paid a specified amount regardless of effort

Answer 22

straight salary compensation plan

Question 23

compensated solely by sales in a given period

Answer 23

Straight Commission compensation plan

Question 24

salespeople are paid a fixed salary plus commission based on sales volume

Answer 24

combination compensation plan

Question 25

pay for themselves by making workers happier and more committed

Answer 25

incentives Programs

Question 26

calls per day and cost per call
average sales per customer and gross profit per customer
actual sales vs sales potential

Answer 26

dimensions used to measure performance are determined by sales objectives

Question 27

an activity/ or material that acts as an inducement to resellers or salespeople to sell a product or consumers to buy it

Answer 27

Sales promotion

Question 28

written price reductions used to encourage consumers to try specific products; is the most widely consumers sales promotion technique

Answer 28

Coupons

Question 29

effective for brand awareness, reward present users, win back former users, encourage purchases in large quantities, are traceable to target market

Answer 29

advantages to coupons

Question 30

fraud and misrepresentation
many customers will not buy without a coupon
brand loyalty diminished
some customers will only redeem coupons for products they normally buy

Answer 30

Coupons disadvantages

Question 31

buyers pay a certain amount less

Answer 31

cents-off

Question 32

customers are mailed a specific amount of money with proof-of-purchase

Answer 32

money refunds

Question 33

customers are sent a specified amount of money for making a purchase

Answer 33

Rebate

Question 34

incentive programs to reward customers who engage in repeat purchases

Answer 34

frequent-user incentives

Question 35

signs, window displays,counter pieces, etc. designed to attract attention and inform customers

Answer 35

point-of-purchase materials

Question 36

sales promotions that show customers exactly how the product works

Answer 36

demonstrations

Question 37

given out to stimulate trial of the product, increase sales and improve distribution

Answer 37

Free samples

Question 38

items offered as a bonus for purchasing a product

Answer 38

Premiums

Question 39

individuals compete for prizes based on analytical or creative skills

Answer 39

consumer contests

Question 40

individuals compete for prizes based on chance

Answer 40

consumer games

Question 41

entrants include their names in a drawing for a prize

Answer 41

sweepstakes

Question 42

a temporary price reduction offered to resellers for purchasing set quantities of a product

Answer 42

Buying allowance

Question 43

a sum of money a producer gives to a reseller for each unit the reseller buys after a promotional deal expires

Answer 43

buy-back allowance

Question 44

a manufacturer’s reward to retailers based on the number of items they sell

Answer 44

scan-back allowance

Question 45

a manufacturer’s agreement to pay resellers certain amounts of money for providing special promo efforts

Answer 45

merchandise allowance

Question 46

an arrangement in which a manufacturer agrees to pay a certain amount of a retailer’s media costs for advertising the manufacturer’s products

Answer 46

cooperative advertising

Question 47

advertisement promoting a product and identifying the names of retailers that sell the product

Answer 47

dealer listings

Question 48

sometimes offered as an incentive for purchasing a stated quantity of products

Answer 48

Free merchandise

Question 49

a gift given to a retailer that purchases a specified quantity of merchandise; often used to coerce special display efforts

Answer 49

dealer leader

Question 50

additional compensation to salespeople offered by the manufacturer as an incentive to push a line of goods

Answer 50

premium (push) money

Question 51

used to motivate distributors, retailers and sales personnel through the recognition of outstanding achievements

Answer 51

sales contests