CHAPTER 14

INTEGRATED MARKETING COMMUNICATIONS: PERSONAL SELLING AND DIRECT MARKETING MULTIPLE CHOICE QUESTIONS 1. __________________ is quoted as saying that everyone lives by selling something. a. Bill Gates b. Robert Louis Stevenson c. Arthur Miller d. Henry Ford Answer: (b) Difficulty: (2) Page: 513 2. All of the following were characterizations of salespeople brought about by Arthur Millers Death of Salesman and Meredith Wilsons The Music Man EXCEPT: a. loners. b. cigar-smoking. c. backslapping. d. conservative Bible-thumpers. Answer: (d) Difficulty: (1) Page: 513 3. Modern salespeople build __________________ by listening to their customers, assessing customer needs, and organizing the companys efforts to solve customer problems. (Pick the best fit.) a. profits b. territories c. perks d. relationships Answer: (d) Difficulty: (2) Page: 513, 514 4. A ____________ is an individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering. a. marketer b. distributor c. salesperson d. advertiser Answer: (c) Difficulty: (1) Page: 514

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5. Generally speaking, a department store salesperson that stands behind a counter is classified as a(n): a. order getter. b. order taker. c. creative selling person. d. missionary salesperson. Answer: (b) Difficulty: (2) Page: 514 6. If a salespersons position demands creative selling (such as in selling an airplane or insurance), their position is classified as being one of a(n): a. order getter. b. order taker. c. public relations specialist. d. missionary salesperson. Answer: (a) Difficulty: (2) Page: 514 7. Selling is most accurately described as being ________________ communication with respect to the relationship with consumers. a. nonpersonal b. nonstructured c. two-way, personal d. demand-directed Answer: (c) Difficulty: (2) Page: 514 8. All of the following are among the chief activities of a salesperson EXCEPT: a. profit analysis. b. prospecting. c. servicing. d. information gathering. Answer: (a) Difficulty: (2) Page: 514 9. The sales force serves as a critical link between a company and its customers. In many cases, salespeople serve both masters--the buyer and the seller. All of the following demonstrate this relationship EXCEPT: a. salespeople represent the company to the customer. b. salespeople represent the customer to the company. c. salespeople do research and intelligence for the company on the customer. d. salespeople serve as auditors for the company to trace what is happening in the environment. Answer: (d) Difficulty: (3) Page: 515

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10. _____________ is defined as the analysis, planning, implementation, and control of sales force activities. a. Sales force management b. Sales force strategy c. Sales force tactics d. Sales force motivation Answer: (a) Difficulty: (1) Page: 515 11. As mentioned in the text, there are six distinct major steps in sales force management. Which of the following is the first step in that process? a. recruiting and selecting salespeople b. supervising salespeople c. designing sales force strategy and structure d. evaluating salespeople Answer: (c) Difficulty: (1) Page: 515, Figure 14-1 12. All of the following are methods by which a company can divide up its sales responsibilities EXCEPT a: a. territorial sales force structure. b. pychographic trait sales force structure. c. product sales force structure. d. customer sales force structure. Answer: (b) Difficulty: (2) Page: 516, 517 13. Each salesperson is assigned to an exclusive area in which to sell the companys full line of products or services in which type of sales force structure? a. territorial sales force b. product sales force c. customer sales force d. hybrid sales force Answer: (a) Difficulty: (1) Page: 516, 517 14. Which of the following sales force design structures has the following advantages: the salespersons job is clearly defined; the salesperson gets credit for all sales made; there is encouragement to build local business relationships; and travel expenses are relatively small? a. territorial sales force b. product sales force c. customer sales force d. hybrid sales force Answer: (a) Difficulty: (3) Page: 516

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15. The type of sales force structure in which the sales force sells along product lines is called a: a. territorial sales force. b. product sales force. c. customer sales force. d. retail sales force. Answer: (b) Difficulty: (1) Page: 516 16. If Kodak uses different sales forces for its film products than for its industrial products, which of the following sales force structures would Kodak most likely be using? a. territorial sales force b. product sales force c. customer sales force d. hybrid sales force Answer: (b) Difficulty: (2) Page: 516 17. Designing the sales force organization around the needs of individual buyers is characteristic of which of the following sales force structures? a. territorial sales force b. product sales force c. customer sales force d. hybrid sales force Answer: (c) Difficulty: (1) Page: 516 18. Which of the following sales force designs is designed around customers in different industries, serving regular customers versus finding new ones, and for major accounts versus regular accounts? a. territorial sales force b. product sales force c. customer sales force d. hybrid sales force Answer: (c) Difficulty: (1) Page: 516 19. In determining sales force size, when a company groups accounts into different size classes and then determines the number of salespeople needed to call on them the desired number of times, it is called the: a. key-size approach. b. workload approach. c. product-need approach. d. call-service approach.

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Answer: (b) Difficulty: (3) Page: 517 20. Jeff Newman calls on about fifteen clients per day. He visits them in their offices and demonstrates his product line by carrying samples. If servicing is needed, Jeff contacts the home office for assistance. What would be the best description of the type of sales force that Jeff belongs to? a. customer sales force b. inside sales force c. missionary sales force d. outside or field sales force Answer: (d) Difficulty: (2) Page: 517 21. If a salesperson encounters a question he or she cannot answer when attempting to sell a new information system to a large corporate client, he or she will probably rely on a ______________________ for assistance. a. missionary salesperson b. master salesperson c. technical support person d. sales assistant Answer: (c) Difficulty: (2) Page: 517 22. If the field sales force has been supplied with new leads (via telephone) that have been qualified, they have probably been assisted by: a. master salespersons. b. sales assistants. c. technical support persons. d. telemarketers. Answer: (d) Difficulty: (2) Page: 517 23. The chief reason that telemarketers are increasing in their popularity versus outside selling is that: a. they are better closers. b. they are better at relationship selling. c. they can make more calls at a cheaper price. d. they are more knowledgeable the products. Answer: (c) Difficulty: (3) Page: 517

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24. Comtrex Corporation is a large, complex account that Cisco Systems would like to obtain. The problem is that Comtrex needs sales, marketing, engineering, and finance questions answered before any real chance of obtaining its business is possible. Which of the following selling approaches would probably be best for Cisco Systems to pursue if it would like to get Comtrexs business? a. use a salesperson from an outside sales force b. use a salesperson from an inside sales force c. use missionary selling d. use team selling Answer: (d) Difficulty: (2) Page: 519 25. All of the following would be considered to be pitfalls of team selling EXCEPT: a. honesty on selling teams is always open to question because of the number involved in the selling process. b. selling teams can confuse customers. c. selling teams can overwhelm customers. d. compensation for selling teams can be difficult to appraise and allocate. Answer: (a) Difficulty: (2) Page: 522 26. All of the following have been cited in the text as being characteristics of the successful salesperson EXCEPT: a. enthusiasm. b. persistence. c. loners. d. independent. Answer: (c) Difficulty: (2) Page: 522 27. The best salespeople possess four key talents. Which of the following WOULD NOT be among these key talents? a. the ability to close a sale b. a disciplined work style c. the ability to talk, and then talk some more d. intrinsic motivation Answer: (c) Difficulty: (2) Page: 523, Marketing at Work 14-2 28. New sales people are trained in most organizations. The average training period is: a. one month. b. four months. c. six months. d. one year.

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Answer: (b) Difficulty: (3) Page: 524 29. All of the following are among the general goals of most training programs EXCEPT: a. to have salespeople understand the history and objectives of the organization. b. to have salespeople know the companys products. c. to have salespeople know the customers and competitors characteristics. d. to have salespeople know about the fine line between bribery and perks. Answer: (d) Difficulty: (2) Page: 524 30. The element of the compensation mix for salespeople that refers to commissions or bonuses is the: a. fixed amount. b. variable amount. c. expense allowance. d. fringe benefits. Answer: (b) Difficulty: (2) Page: 525, 526 31. The element of the compensation mix that repays salespeople for undertaking jobrelated selling efforts is the: a. fixed amount. b. variable amount. c. expense allowance. d. fringe benefits. Answer: (c) Difficulty: (1) Page: 525, 526 32. According to research, the most popular compensation plan (70 percent use this) for sales forces is: a. straight salary. b. straight commission. c. a combination of base salary and incentives. d. profit sharing and stock incentives. Answer: (c) Difficulty: (2) Page: 526 33. The heaviest weight in most compensation plans is directed toward: a. demand sharing. b. salary. c. commissions. d. incentives. Answer: (b) Difficulty: (2) Page: 526

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34. The sales force compensation plan can both motivate salespeople and: a. punish them. b. frustrate them. c. improve their product performance. d. direct their activities. Answer: (d) Difficulty: (1) Page: 526 35. Through supervision, a company: a. keeps a suspicious eye on salespeople and their activities. b. commands and controls the actions of salespeople. c. directs and motivates the sales force to do a better job. d. seeks to weed out the weak from the strong salespeople. Answer: (c) Difficulty: (2) Page: 526 36. Salespeople spend their time in various ways. On average, which of the following accounts for the majority of the salespersons time? a. administrative tasks b. service calls c. waiting and traveling d. face-to-face selling Answer: (d) Difficulty: (2) Page: 527, Figure 14-2 37. The fastest-growing sales force technology tool is: a. the PDA (personal data assistant). b. the cell phone. c. the laptop computer. d. the Internet. Answer: (d) Difficulty: (2) Page: 528 38. ________________ describe(s) the feelings that salespeople have about their opportunities, value, and rewards for a good performance within the company. a. Positive incentives b. Sales quotas c. Organizational climate d. Profit goals Answer: (c) Difficulty: (2) Page: 529

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39. Standards stating the amount a salesperson should sell and how the sales should be divided among the companys products refer to: a. positive incentives. b. sales quotas. c. organizational climate. d. profit goals. Answer: (b) Difficulty: (2) Page: 529 40. Management gets information about its salespeople in several ways. The most important source is: a. the annual report. b. the consumer report. c. the sales report. d. the grapevine. Answer: (c) Difficulty: (2) Page: 530 41. Salespeople write up their completed activities on: a. call reports. b. sales quotas reports. c. expense reports. d. annual territory marketing plans. Answer: (a) Difficulty: (2) Page: 530 42. The steps that the salesperson follows when selling is called the: a. approach. b. objective-and-task method. c. selling process. d. direct marketing process. Answer: (c) Difficulty: (1) Page: 530 43. The step in the selling process characterized by identifying qualified potential customers is called the __________ step. a. closing b. approach c. presentation and demonstration d. prospecting Answer: (d) Difficulty: (1) Page: 530, Figure 14-3

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44. The first step in the selling process involves prospecting. What other function of selling is normally associated with the prospecting step? a. qualifying b. approaching c. demonstration d. presentation Answer: (a) Difficulty: (2) Page: 530, Figure 14-3 45. _________________ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. a. Prospecting b. Preapproach c. Approach d. Handling objections Answer: (b) Difficulty: (2) Page: 531 46. Setting call objectives is done during which of the following stages of the selling process? a. prospecting b. preapproach c. approach d. handling objections Answer: (b) Difficulty: (2) Page: 531 47. __________________ is the step in the selling process in which the salesperson meets and greets the buyer to get the relationship off to a good start. a. Prospecting b. Preapproach c. Approach d. Handling objections Answer: (c) Difficulty: (2) Page: 531 48. One of the crucial tasks that must be performed in the approach step (where the customer is met for the first time) is to: a. handle objections. b. qualify the customer. c. listen to the customer. d. close the customer on the validity of the offer. Answer: (c) Difficulty: (2) Page: 531

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49. The type of sales presentation approach that requires good listening and problemsolving skills is the: a. canned approach. b. formula approach. c. need-satisfaction approach. d. critical-thinking approach. Answer: (c) Difficulty: (2) Page: 531 50. Which type of salesperson fits better with todays marketing concept? a. hard-sell salesperson b. glad-handing extrovert c. relationship introvert d. problem-solver Answer: (d) Difficulty: (1) Page: 531 51. The step in the selling process where customer problems and concerns need to be addressed is called the ____________ step. a. prospecting b. preapproach c. approach d. handling objections Answer: (d) Difficulty: (1) Page: 532 52. One of the hardest stages for the salesperson to handle well is the ______________ stage. a. approach b. handling objections c. closing d. follow-up Answer: (c) Difficulty: (3) Page: 532 53. Asking for an order, reviewing points of agreement, or offering to help to write up the order are all indications of which stage in the selling process? a. closing b. feedback and Review c. approach d. handling objections Answer: (a) Difficulty: (1) Page: 532

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54. The last stage in the selling process is the ________________ stage. a. approach b. handling objections c. closing d. follow-up Answer: (d) Difficulty: (1) Page: 533 55. Most companies today are moving away from _________________ to the practice of relationship marketing. a. customer marketing b. value marketing c. transaction marketing d. supply marketing Answer: (c) Difficulty: (3) Page: 533 56. ______________ is the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. a. Transaction marketing b. Selling process marketing c. Relationship marketing d. Service marketing Answer: (c) Difficulty: (2) Page: 533 57. _________________ is direct communications with carefully targeted individual consumers to obtain an immediate response. a. Direct marketing b. Mass marketing c. Integrated marketing d. Demand marketing Answer: (a) Difficulty: (1) Page: 533 58. Which of the following has as one of its characteristics the ability and intent to communicate on an interactive basis? a. Direct marketing. b. Mass marketing. c. Demand marketing. d. Hybrid marketing. Answer: (a) Difficulty: (2) Page: 533

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59. Most marketers today see direct marketing as a means to interact with customers to: a. make enormous profits. b. build advertising brand identification. c. build long-term customer relationships. d. make quick sales. Answer: (c) Difficulty: (3) Page: 533 60. According to recent studies, all of the following are ways direct marketing benefits customers EXCEPT: a. home shopping is interactive. b. the consumer can do comparative shopping. c. the goods are always cheaper. d. home shopping is private. Answer: (c) Difficulty: (2) Page: 534 61. The fastest growing form of marketing today is: a. global marketing. b. micromarketing. c. individual marketing. d. direct marketing. Answer: (d) Difficulty: (2) Page: 537 62. According to the Direct Marketing Association, total U.S. spending of direct marketing exceeded _________ in 2000, or more than 56 percent of total U.S. advertising expenditures. a. $100 million b. $500 million c. $100 billion d. $190 billion Answer: (d) Difficulty: (3) Page: 537 63. A(n) ___________ is an organized collection of comprehensive data about individual customers or prospects. a. customer database b. customer statistical sample c. intranet d. extranet Answer: (a) Difficulty: (2) Page: 537

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64. All of the following would be appropriate ways to use a customer database EXCEPT: a. replace the need for information systems and marketing research. b. locate good potential customers. c. tailor products and services to special needs of targeted customers. d. maintain long-term customer relationships. Answer: (a) Difficulty: (2) Page: 537 65. All of the following are items or categories that are typically found in a customer database EXCEPT: a. customer demographics. b. psychographics. c. buying behavior. d. customer thought processes. Answer: (d) Difficulty: (1) Page: 537 66. Companies can use their databases in all of the following ways EXCEPT: a. to determine profitability. b. to identify prospects. c. to decide which customers should receive a particular offer. d. to deepen customer loyalty. Answer: (a) Difficulty: (2) Page: 538 67. All of the following are cited by the text as being forms of direct marketing communication EXCEPT: a. specialty advertising. b. face-to-face selling. c. kiosk marketing. d. online marketing. Answer: (a) Difficulty: (2) Page: 539, Figure 14-4 68. Telemarketing has become a major direct marketing tool. Toll-free numbers (800 numbers) are classified as _______________ telephone marketing. a. outbound b. inbound c. lateral d. parallel Answer: (b) Difficulty: (2) Page: 539

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69. Marketers use _____________ telephone marketing to sell directly to consumers and businesses. a. outbound b. inbound c. lateral d. parallel Answer: (a) Difficulty: (2) Page: 539 70. Junk phone calls are a problem that seems to be on the increase. In response, the view of the Direct Marketing Association is that: a. The consumer will always have this problem. b. The consumer should contact their legislators. c. This is one of the dangers of free speech. d. We want to target people who want to be targeted. Answer: (d) Difficulty: (3) Page: 540 71. If a company uses letters, ads, samples, foldouts, and other salespeople with wings sent to prospects on mailing lists, it is using which of the following direct marketing forms? a. online marketing b. catalog marketing c. direct-mail marketing d. kiosk marketing Answer: (c) Difficulty: (1) Page: 541 72. Which of the following direct marketing forms has the following characteristics: well suited to one-to-one communication, high target-market selectivity, can be personalized, is flexible, and allows easy measurement of results? a. catalog marketing b. direct-mail marketing c. kiosk marketing d. telemarketing Answer: (b) Difficulty: (2) Page: 541 73. All of the following have recently become popular forms of mail delivery EXCEPT: a. fax mail. b. e-mail. c. voice mail. d. second-class mail. Answer: (d) Difficulty: (1) Page: 541

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74. A(n) __________ is defined as being a printed, bound piece of at least eight pages, selling multiple products, and offering a direct ordering mechanism. a. specialty advertising piece b. catalog c. online ordering Web site d. corporate merchandising report Answer: (b) Difficulty: (2) Page: 542 75. The form of direct marketing where one could find infomercials and home shopping channels would be: a. kiosk marketing. b. telemarketing. c. online marketing. d. direct-response television marketing. Answer: (d) Difficulty: (1) Page: 544, 545 76. A 30-minute television program designed specifically to sell something is called a(n): a. advertisement. b. sales pitch. c. infomercial. d. home shopping spot. Answer: (c) Difficulty: (1) Page: 544 77. According information found in the text, the current infomercial champ is: a. jewelry on the Home Shopping Network. b. Suzanne Sommers and her thigh-master. c. Jane Fonda and her workout tapes. d. George Foreman and his grilling products. Answer: (d) Difficulty: (3) Page: 544-545 78. If a company places an information and ordering machine in stores, airports, or other locations, it is using a _____________ to market its products. a. vending machine b. push cart c. booth d. kiosk Answer: (d) Difficulty: (2) Page: 546

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79. American Greetings use ____________ to help customers create personalized cards. a. vending machines b. push carts c. booths d. kiosks Answer: (d) Difficulty: (2) Page: 546 80. ______________ is defined as being direct-marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits. a. Outbound marketing b. Continuing communication c. Integrated direct marketing d. Demand-based marketing Answer: (c) Difficulty: (2) Page: 547 81. The integrated direct marketing campaign begins with a(n): a. paid ad with a response channel. b. direct mail. c. outbound telemarketing. d. face-to-face sales call. Answer: (a) Difficulty: (2) Page: 547, Figure 14-5 82. The toughest public policy issue now facing the direct-marketing industry is: a. the invasion of privacy. b. pornography. c. copyright infringement. d. pressure selling. Answer: (a) Difficulty: (3) Page: 548 83. The largest association for businesses interested in interactive and database marketing is the: a. American Marketing Association. b. American Association of Advertising. c. U.S. Chamber of Commerce. d. Direct Marketing Association. Answer: (d) Difficulty: (2) Page: 548, 549

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TRUE/FALSE QUESTIONS 84. Robert Louis Stevenson was once quoted as saying that everyone lives by selling something. Answer: (True) Difficulty: (2) Page: 513 85. Selling is one of the oldest professions. Answer: (True) Difficulty: (1) Page: 513 86. The modern image of the salesperson is that of a loner, traveling their territories, trying to put their wares off on unsuspecting buyers. Answer: (False) Difficulty: (2) Page: 513 87. An order takers position demands skill in creative selling. Answer: (False) Difficulty: (2) Page: 514 88. Personal selling is the profit arm of the promotion mix. Answer: (False) Difficulty: (3) Page: 514 89. Sales force management is the analysis, planning, implementation, and control of sales force activities. Answer: (True) Difficulty: (1) Page: 515 90. The first major decision to be reached when constructing a sales force management system is to recruit and select salespeople. Answer: (False) Difficulty: (2) Page: 515, Figure 14-1 91. One of the critical problems with the territorial sales force structure is that because of extensive travel, travel expenses are relatively large. Answer: (False) Difficulty: (2) Page: 516 92. One of the problems with the product sales force structure is that if the company has a large customer, it could feasibly buy from many salespeople within the same company thus causing inefficiency and confusion for both buyer and seller alike. Answer: (True) Difficulty: (2) Page: 516

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93. One of the problems with the customer sales force structure is that companies have many product needs. Answer: (False) Difficulty: (2) Page: 516, 517 94. Sales assistants provide technical information and answers to customers questions. Answer: (False) Difficulty: (2) Page: 517 95. Team selling is often used to service large, complex accounts. Answer: (True) Difficulty: (1) Page: 519 96. At the heart of any successful sales force operation is the method by which employees are paid. Answer: (False) Difficulty: (2) Page: 522 97. According to research, the best salespeople have among their characteristics the ability to close a sale. Answer: (True) Difficulty: (1) Page: 523, Marketing at Work 14-2 98. A good illustration of a variable amount within a compensation package would be the salespersons salary. Answer: (False) Difficulty: (2) Page: 526 99. More and more companies are moving toward high commission plans as a way to encourage salespeople to sell more in the long term. Answer: (False) Difficulty: (2) Page: 526 100. The annual call plan shows how sales people spend their time selling, eating, driving, and resting. Answer: (False) Difficulty: (2) Page: 527 101. Salespeople spend more of their time doing administrative tasks than on any other area. Answer: (False) Difficulty: (2) Page: 527, Figure 14-2

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102. Perhaps the fastest growing sales force technology tool is the PowerPoint presentation done from a laptop computer. Answer: (False) Difficulty: (2) Page: 528 103. The most important way that management gets information about its salespeople is through sales reports. Answer: (True) Difficulty: (1) Page: 530 104. Learning about the buyer (and his or her habits) occurs in the approach step of the selling process. Answer: (False) Difficulty: (1) Page: 530, 531, Figure 14-3 105. Setting call objectives usually occurs in the preapproach step of the effective selling process model. Answer: (True) Difficulty: (1) Page: 531 106. The need-satisfaction approach calls for a quick close since consumers will have already solved their own problem and are looking to exit the sales situation with minimum of difficulty. Answer: (False) Difficulty: (2) Page: 531 107. Many salespeople do not handle the closing step of the selling process well. Answer: (True) Difficulty: (1) Page: 532 108. Most companies today take the transaction approach to personal selling. Answer: (False) Difficulty: (2) Page: 533 109. Direct marketing is characterized as being a marketing effort that targets broadly with standardized messages and marketing offers. Answer: (False) Difficulty: (1) Page: 533 110. Direct marketing is direct communications with carefully targeted individual consumers to obtain an immediate response. Answer: (True) Difficulty: (1) Page: 533

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111. The earliest direct marketers were found in the mass media--specifically in radio. Answer: (False) Difficulty: (2) Page: 534 112. Most companies still use direct marketing as a supplementary channel or medium for marketing their goods. Answer: (True) Difficulty: (1) Page: 534 113. Direct-marketing is now the fastest growing form of marketing. Answer: (True) Difficulty: (2) Page: 537 114. For all practical purposes, a customer mailing list is about the same thing as a customer database. Answer: (False) Difficulty: (2) Page: 537 115. One of the major forms of direct marketing is personal selling. Answer: (True) Difficulty: (1) Page: 539, Figure 14-4 116. Telephone marketing now accounts for more than 38 percent of all directmarketing media expenditures. Answer: (True) Difficulty: (2) Page: 539 117. One of the problems with direct mail as a direct marketing form is that it is not successful as one-to-one communication. Answer: (False) Difficulty: (2) Page: 541 118. An infomercial lasts about five minutes, which is considerably longer than the 30-second commercial. Answer: (False) Difficulty: (3) Page: 544 119. Kiosk marketing primarily takes place through vending machines. Answer: (False) Difficulty: (2) Page: 546 120. Integrated direct marketing is a direct-marketing campaign that uses multiple vehicles and multiple stages to improve response rates and profits. Answer: (True) Difficulty: (1) Page: 547

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121. The toughest public policy issue now confronting the direct-marketing industry is pornography via the Internet. Answer: (False) Difficulty: (2) Page: 548 ESSAY QUESTIONS 122. Lear Corporation, one of the largest, fastest growing, and most successful automotive suppliers in the world has a commitment to being customer driven and customer focused. In fact, Lears sales force was recently rated by Sales & Marketing Management magazine as one of Americas Best Sales Forces. According to information provided in the text, what makes this organization have such an outstanding sales force? Give examples and explain. Answer: Lear feels that to have a good sales force a company must have teamwork, build relationships, and always do what is best for the customer. The company feels that it excels in each of these areas. Lear feels that its sales depend completely on the success of its customers. Therefore, Lear strives to create not just sales, but customer success. In order to help with this process, Lear has diversified its product line to achieve one-stop shopping. It tries to provide complete solutions. Secondly, Lear has broken itself up into separate divisions that are dedicated to specific customers (such as a Ford division and a GM division). Lastly, Lear considers all of their employees to be on the same team as their customers. Difficulty: (2) Page: 511-513 123. Compare and contrast how salespeople were once viewed versus how they are viewed today. Answer: In the past the average person viewed the salesperson as the distraught loner (as depicted in Arthur Millers Death of a Salesman or like Harold Hill--the great con-artist--in The Music Man). The salesperson had a bad (and sometimes deserved) reputation. However, modern salespeople are a far cry from these unfortunate stereotypes. Today, most salespeople are well-educated, male or female, well-trained professionals who work to build and maintain long-term relationships with customers. They build these relationships by listening to their customers, assessing customer needs, and organizing the companys efforts to solve customer problems. Difficulty: (1) Page: 513-514

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124. Define sales force management and list the six major steps in the sales force management process. Answer: Sales force management is the analysis, planning, implementation, and control of sales force activities. The sales force management process consists of: (a) designing sales force strategy and structure; (b) recruiting and selecting salespeople; (c) training salespeople; (d) compensating salespeople; (e) supervising salespeople; and (f) evaluating salespeople. Difficulty: (1) Page: 515, Figure 14-1 125. List and characterize the three primary methods for establishing a structure for the sales force. Answer: (a) Territorial sales force structure--a sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the companys full line. This method is often called the most simple method of structure. (b) Product sales force structure--a sales force organization under which salespeople specialize in selling only a portion of the companys products or lines. This method can lead to problems if a single large customer might need to purchase many of the companys different products (such as a large hospital). (c) Customer sales force structure--a sales force organization under which salespeople specialize in selling only to certain customers or industries. This method seems to be the one that many companies are moving toward today because of the need to be closer to the customer and to form relationships with customers. Difficulty: (2) Page: 516-517 126. Discuss what traits have been found to spell success for a salesperson. Construct a profile of what you perceive to be the ideal salesperson. Answer: Many studies have addressed this issue. One survey suggested that good salespeople have a lot of enthusiasm, persistence, initiative, self-confidence, and job commitment. They are committed to sales as a way of life and have a strong customer orientation. Another study suggested that good salespeople are independent and self-motivated and are excellent listeners. Still another study advises that a salesperson should be a friend to the customer as well as persistent, enthusiastic, attentive, and--above all--honest. Salespeople must be internally motivated, disciplined, hardworking, and able to build strong relationships with customers. Finally, studies show that good salespeople are team players rather than loners.

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Marketing at Work 14-2 suggests that effective salespeople are intrinsically motivated, have a disciplined work style, have the ability to close a sale, and have the ability to build relationships with customers. Difficulty: (2) Page: 522-524, Marketing at Work 14-2 127. Indicate how most companies compensate their salespeople and evaluate each method. Answer: Compensation is made up of several elements--a fixed amount, a variable amount, expenses, and fringe benefits. Management must decide what mix of these compensation elements makes the most sense for each sales job. The normal combinations can be straight salary, straight commission, salary plus bonus, and salary plus commission. Straight salary has the advantage of telling the person what they will make, will not vary from that amount, will be good for down times, but is considered a low motivator. The straight commission system is very good at motivating but hard to design correctly so the average employee will be stimulated. This leads to the design of the combination plans that try to bring the best of both worlds to the table. Difficulty: (2) Page: 525-526, Table 14-1 128. List and briefly discuss each of the steps of the effective selling process mentioned in the text. Answer: The model mentioned in Figure 14-3 has seven distinct steps. They are: (a) Prospecting and qualifying--the salesperson identifies qualified potential customers. The salesperson may use a variety of sources to accomplish this. (b) Preapproach--the salesperson learns as much as possible about a prospective customer before making a sales call. For examples, what does the buyer need, who is involved in the buying, and what are the characteristics or styles of the buyer? (c) Approach--the salesperson meets and greets the buyer to get the relationship off to a good start. Analyzing customer needs and showing a sample or giving a demonstration are common at this stage. (d) Presentation and demonstration--the salesperson tells the product story to the buyer, showing how the product will make or save money for the buyer. A need-satisfaction approach is recommended. (e) Handling objections--the salesperson seeks out, clarifies, and overcomes customer objections to buying. A positive approach should be used, look for hidden objections, and take this as an opportunity to tell more about the product. (f) Closing--the salesperson asks the customer for an order. This is often a difficult step for the salesperson. Salespeople must know how to recognize closing signals and how to recognize unanswered objections. (g) Follow-up--the salesperson follows up after the sale to ensure customer satisfaction and repeat business. This step can take care of problems that might prevent future sales.

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Difficulty: (3) Page: 530-533, Figure 14-3 129. Discuss the differences between a transaction-oriented and relationship-oriented approach to marketing and selling. Answer: The principles of personal selling are often shown to be transaction-oriented. Their aim is to help salespeople close a specific sale with a customer. But in many cases the company is not just seeking a sale. Instead, it may have targeted a major customer that it would like to win and keep over the long haul. This often requires a relationship. Relationship marketing (relationship-oriented selling) emphasizes maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. This then becomes a process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. Difficulty: (2) Page: 533 130. Direct marketing is now the fastest-growing form of marketing. Discuss the benefits to the consumer and to sellers of this form of marketing. Answer: Direct marketing can benefit consumers in many ways. Consumers report that home shopping is fun, convenient, and hassle-free. It saves time and introduces them to a larger selection of merchandise. They can do comparative shopping by browsing through mail catalogs and online shopping services, then order products for themselves and or others. Industrial customers can learn about available products and service without waiting for and tying up time with salespeople. Sellers can benefit also. Direct marketers can buy mailing lists containing names of almost any group. They can personalize and customize their messages. With todays technology, a direct marketer can select small groups or even individual customers, customize the offers to their special needs and wants, and promote these offers through individualized communications. Difficulty: (2) Page: 533, 534, 536, 537 131. Companies can use their databases in several ways. List and briefly identify each of the ways described in the text. Answer: (a) Identifying prospects--many companies generate sales leads by advertising their products or offers. Business reply cards, telephone numbers, or online response is common. Databases can be built on these responses. These responses, which show interest, make sales calls more efficient.

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(b) Deciding which customers should receive a particular offer--profiles can be built. Tracking of responses aids in increasing proficiency. Follow-ups can be planned. (c) Deepening customer loyalty--companies can build customers interest and enthusiasm by remembering their preferences and by sending appropriate information, gifts, or other materials. (d) Reactivating customer purchases--the database can help to make attractive offers of product replacements, upgrades, or complementary products just when customers might be ready to act. Difficulty: (3) Page: 537-539 132. List the different forms of direct marketing communication. Pick one of the forms that you think is especially effective and cite the reasons for your belief. Answer: (a) Face-to-face selling. (b) Direct-mail marketing. (c) Catalog marketing. (d) Telemarketing. (e) Direct-response television marketing. (f) Kiosk marketing. (g) Online marketing. Difficulty: (2) Page: 539, Figure 14-4, 539-546 (for details on each method) 133. List and briefly identify the steps a company would normally follow if it wished to implement an integrated direct-marketing campaign. You may use an example if you wish, however, be sure to be specific in your identification of the steps followed in your example. Answer: Typical steps to implement an integrated direct-marketing campaign would be to roll-out with (a) a paid ad with a response channel, (b) followed by direct mail, (c) coordinated with outbound marketing, (d) personalized with face-to-face sales calls, (e) and continued with continuing communications to reach all customers. See text for additional details. Difficulty: (2) Page: 546, 547, Figure 14-5 APPLICATION QUESTION 134. Ron Samuels is reviewing all of the sales relationships that exist with his company. Mr. Samuels owns a medium-sized computer software manufacturing business. His primary product is a tax planning guide and program for individuals that need help with preparing personal income taxes. He feels that at present all of the salespeople that call on him are more interested in making sales (a transaction approach) than in truly helping

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him to achieve success (a relationship approach). Pretend that you are a salesperson seeking to get Mr. Samuels business (you may assume that you are selling any product or service that you think might be appropriate to this form of business). What would you put in a relationship marketing program that might attract Mr. Samuels attention and get you a contract with his company? Be specific in your suggestions and be sure to explain how your suggestions relate to relationship marketing and selling. Answer: *****Instructors Note: This question may be enhanced with additional instructions at the discretion of the instructor. This question may also be given as a take-home assignment. If the instructor wants to limit the creativity of the students, be sure to give appropriate instructions since this question often receives a wide variety of answers. The objective of the question is to get students to think about relationship marketing and selling and how to achieve success in those areas.***** Most companies are moving away from transaction marketing, with its emphasis on making a sale. Instead, (like the desire of Mr. Samuels) companies are practicing relationship marketing and selling, which emphasizes maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. Ways to achieve this relationship would be to consider the following: (a) Todays customers are large and often global. Therefore, they prefer suppliers who can sell and deliver a coordinated set of products and services to many locations. In the case of Mr. Samuels, this might mean servicing several plants, distributors, or retailers outside his immediate trade area or coordinating efforts with other suppliers. (b) Technical assistance is often needed (if not required). Mr. Samuels will probably look for companies that can not only assist him with his manufacturing responsibilities but will also provide him with specialized data on his markets, competition, and distribution outlets. Samuels will expect a value-laden approach. What might this be? Students must consider what might be a value to a manufacturer such as Samuels. (c) Relationship marketing is based on the premise that important accounts need focused and ongoing attention. Mr. Samuels will appreciate constant contact and aid in the solutions of his problems (whatever they may be). He will want his business improved. Marketing at Work 14-2 relates how some secrets of success might be brought into such a relationship (such as salespeople who work hard for an account, dont let loose ends dangle, and are empathetic, patient, caring, and responsive to the needs of the client). Difficulty: (3) Page: 523-524, Marketing at Work 14-2, 533

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