Question

Personal selling likely to be

MOST

important when:

- the distribution network is well established (as opposed to poorly established).

- prices are negotiable (instead of fixed list prices) because of industry competition.

- the product is simple (as opposed to complex), requiring no demonstration.

- the target market is composed of thousands of small customers (as opposed to 50 large customers).

Kay was widely recognized in her firm and the industry as a superb leader and sales manager. The reps who

worked for her talked about her ability to motivate the sales force based on:

- the industry standards, which she had helped create

- the firm’s policies and procedures

- what was most important to each individual

- the sales contests she created which were always fair and always had a vacation at an exotic resort as a

prize

Which of the following best describes a salesperson who would be categorized as a value spendthrift?

- concedes on price in order to quickly close sales deals

- regularly gains more business at the same price

- believes management pursues a value-driven strategy

- documents claims to customers about superior monetary value

Which is

NOT

an advantage of a territorial sales force structure?

- Accountability is clearly defined for each salesperson.

- Each salesperson’s job is clearly defined.

- Salespeople have the opportunity and incentive to build strong relationships with customers.

- Salespeople develop in-depth knowledge of a product line.

Which explains why many firms have adopted the team selling approach to service large, complex accounts?

- Products have become too complicated for one salesperson to support.

- Customers prefer dealing with many salespeople rather than one salesperson.

- Salespeople prefer working in groups because of the opportunity for flex hours and job sharing.

- A group of salespeople assigned to one account is cost effective for corporations.

A potential drawback of using the latest sales technologies to make sales presentations and service accounts?

- Salespeople are more likely to use a “one-size-fits-all” selling approach.

- The cost of the technology outweighs any savings gained in eliminating the need for travel.

- The systems can intimidate some clients and salespeople, making them uncomfortable with the process.

- The technologies limit the degree of creativity a salesperson can use in making sales presentations.

Management uses the workload approach to ________.

- set the size of the sales force

- determine product availability

- identify desirable characteristics of the sales force

- establish sales quotas

Which activity is

NOT

typical for a sales assistant?

- call ahead and confirm appointments

- determine price points

- complete administrative tasks

- follow up on deliveries

An advantage of the straight commission compensation plan is that it:

- minimizes fluctuations in salesperson’ earnings.

- stimulates missionary selling, i.e., seeking out new customers.

- reduces the cost of selling as a percentage of net sales.

- encourages the salesperson to sell aggressively.

Answer 1

1). Personal selling likely to be most important when prices are negotiable (instead of fixed list prices) because of industry competition. (Explanation: Since prices are negotiable, marketing becomes very important as the price can be negotiated on a personal basis to ensure the best possible price.)

2). Kay was widely recognized in her firm and the industry as a superb leader and sales manager. The reps who worked for her talked about her ability to motivate the sales force based on what was most important to each individual. (Explanation: People can be motivated best, based on whatever holds importance for them on an individual basis.)

3). A salesperson who concedes on price in order to quickly close sales deals, would be categorized as a value spendthrift.

4). Salespeople develop in-depth knowledge of a product line - This is not an advantage which comes with a territorial sales force. (Explanation: This is so because in a territorial sales force structure, a sales person is assigned a territory where they are expected to sell the whole range of products. This results in lack of specialized knowledge about each and every product.)

5). Products have become too complicated for one salesperson to support - This has resulted in many firms taking the team selling approach.

6). The systems can intimidate some clients and salespeople, making them uncomfortable with the process. - This can be a potential drawback of using latest sales technologies for sales presentations and service accounts.

7). Management uses the workload approach to set the size of the sales force.

8). Determining price points is not a typical activity for a sales assistant.

9). An advantage of the straight commission compensation plan is that it encourages the salesperson to sell aggressively, as commission earned is directly based on the sales made during a given period by a sales person.