Communicating Customer Value

Chapter 13
Communicating Customer Value: Personal Selling and

Direct Marketing
GENERAL CONTENT: Multiple-Choice Questions
1. These employees are well-educated, well-trained professionals who work to build and
maintain long-term customer relationships by listening to their customers, assessing
customer needs, and organizing the companys efforts to solve customer problems.
Who are these employees?
a. Managers.
b. Missionary salespeople.
c. Salespeople.
d. Sales managers.
e. All of the above.
(Answer: e; 401; Moderate)
2. Which of the following communication and promotion tools involve direct
connections with customers aimed toward building customer-unique value and lasting
relationships?
a. Personal selling.
b. Direct marketing.
c. E-commerce.
d. Publicity.
e. A and B.
(Answer: e; p. 401; Moderate)
3. Johnson Fabric Company has four selling positions for employees. One of them is not
really an actual selling position. Which is it?
a. Order taker.
b. Missionary salesperson.
c. Order getter.
d. Creative selling.
e. B and D
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. sales manager
b. sales executive
c. sales support person
d. salesperson
e. none of the above
(Answer: d; p. 402; Easy)
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5. _____ involves two-way, personal communication between salespeople and

individual customerswhether face-to-face, by telephone, through video or Web
conferences, or by other means.
a. Advertising
b. Persuasive selling
c. Personal selling
d. Integrated marketing communication
e. A and B
(Answer: c; p. 402; Easy)
6. Current view holds that salespeople should be concerned with producing customer
satisfaction and company profit. So whom do they generally serve?
a. They represent the company to customers.
b. They represent the company to investors.
c. They represent the customer to the company.
d. A and C
e. None of the above
(Answer: d; p. 402; Challenging)
7. When a firm sets out to analyze, plan, implement, and control sales force activities
through sales force management, it sets and designs its_____, recruits, selects, trains,
supervises, compensates, and evaluates the firms salespeople.
a. sales territories
b. sales force management
c. team selling efforts
d. coop selling and advertising
e. promotional objectives
(Answer: b; p. 414; Challenging)
8. Of the three typical types of sales force structures, which one is often supported by
many levels of sales management positions in specific geographical areas?
a. Territorial.
b. Product.
c. Customer.
d. Complex systems.
e. Matrix.
(Answer: a; p. 403; Moderate)
9. Which of the following is not a disadvantage of a product sales force structure?
a. Extra selling costs involved with multiple sales visits from separate divisions.
b. Attention given to individual products.
c. Salespeople may wait to see the same customers purchasing agents.
d. Increase customer delivery time.
e. B and C
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10. What do many companies use to set sales force size?

a. The workload approach.
b. Product availability.
c. Demographic characteristics of the sales force.
d. Sales quotas established.
e. Profit margin.
11. To reduce time demands on their outside sales forces, many companies have
increased the size of their inside sales forces, which include technical support people,
sales assistants, and _____.
a. order takers
b. order getters
c. telemarketers
d. administrative assistants
e. secretaries
12. Which activity was not mentioned in the text as typical for a sales assistant?
a. Call ahead and confirm appointments.
b. Provide technical support.
c. Conduct credit checks.
d. Follow up on deliveries.
e. C and D
(Answer: b; p. 40%; Moderate)
13. A growing trend for many companies is to use a group of people from sales,
marketing, engineering, finance, technical support, and even upper management to
service large, complex accounts. This approach is called _____.
a. department selling
b. multiple selling
c. team selling
d. management-controlled selling
e. simultaneous selling
14. In many cases today, a major reason to adopt team selling results from changes in
_____.
a. customers buying organizations
b. competition
c. rising costs
d. fewer skilled salespeople
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15. One of the following is not a pitfall or disadvantage of team selling. Which is it?
a. Selling teams can confuse or overwhelm consumers.
b. Individual salespeople may have trouble learning to work with and trust others.
c. In the long run, team selling ties up more time and increases overall costs.
d. Difficulties in evaluating individual contributions to the team selling effort can
create some sticky compensation issues.
(Answer: c; p. 408; Challenging)
16. The catalyst of any successful sales force organization is _____.
a. the recruitment and selection of good salespeople
b. current and relevant customer research data
c. relevant and extensive sales training
d. sales managers who work with their people
e. all of the above
(Answer: a; p. 408; Challenging)
17. In a typical sales force, the top 30 percent of the salespeople may bring in _____
percent of the sales.
a. 40
b. 50
c. 60
d. 70
e. 80
18. All of the following are problems associated with the poor selection of salespeople
except one. Which one?
a. Lower sales.
b. Costly turnover.
c. Less productivity.
d. Less office support.
e. Loss of company image.
19. Which of the following traits should salespeople have?
a. Honesty.
b. Patience.
c. Responsiveness.
d. All of the above.
e. A and C
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20. Studies show that good salespeople possess all of these traits except which one?
a. Honesty.
b. Patience.
c. Caring.
d. At least average listener.
e. None of the above.
(Answer: d; p. 409; Moderate)
21. Sales applicants are typically not tested for _____.
a. sales aptitude
b. organizational skills
c. accounting skills
d. analytical skills
e. B and D
(Answer: c; p. 409; Moderate)
22. Initial sales training typically covers all of the following topics except one. Which
one?
a. Companys history and objectives.
b. Companys financial structure.
c. Chief products and markets.
d. Field procedures and responsibilities.
e. B and C
23. The chapter suggests that Cisco benefits from the _____.
a. best products
b. best prices
c. best-trained sales force
d. best technical support
e. best market value
24. To attract salespeople, a company must have an appealing compensation plan. It is
made up of several elementsa fixed amount, _____, expenses, and fringe benefits.
a. bonuses
b. retirement
c. a variable amount
d. nonmonetary rewards
e. recognition
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25. Management at Happy Motors must decide what mix of compensation elements to
offer their sales force. Which of the following is not one of the four basic types of
compensation plans?
a. Straight commission.
b. Straight salary.
c. Salary and commission.
d. Commission and bonuses.
26. A recent study showed that 70 percent of all companies use a combination of _____
to compensate its sales force.
a. base salary and expense accounts
b. commission and fringe benefits
c. base salary and incentives
d. base salary only
27. Sales force compensation should direct the sales force toward activities that are
consistent with _____.
a. overall company strategies
b. overall marketing objectives
c. overall company objectives
d. overall department objectives
e. all of the above
(Answer: e; p. 410; Challenging)
28. Through sales management supervision, the company directs and _____the sales
force to do a better job.
a. coaches
b. motivates
c. coerces
d. influences
e. forces
(Answer: b; p. 410; Easy)
29. Which sales management tool shows which customers and prospects to see during the
next 12 months and in which months, as well as which activities to carry out?
a. Time-and-duty analysis.
b. Sales force automation systems.
c. Annual call plan.
d. Sales quota plan.
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30. Salespeople and sales managers now realize that perhaps the fastest-growing sales
force technology tool is _____.
a. the cell phone
b. the laptop computer
c. e-mail
d. the Internet
e. the U.S. mail
Companies are always looking for ways to increase selling time. All of the following are
ways to save time to accomplish this goal except one. Which one?
f. Use phones instead of traveling.
g. Simplify record keeping.
h. Find better call and routing plans.
i. Reduce the number of customers each sales rep should see.
j. Increase the number of customers each sales rep should see.
31. Sales efficiency has been greatly improved using sales force automation systems.
Salespeople primarily use laptops, handheld computing devices, _____, and
customer-contact software.
a. video conferencing
b. the U.S. mail
c. Web technologies
d. cell phones
32. Three common techniques sales managers use to boost sales force morale include the
organizational climate, sales quotas, and positive _____.
a. incentives
b. thinking
c. recognition
d. vocabularies and mannerisms
e. feedback
(Answer: a; p. 412; Easy)
33. Management sets standards that state the amount each salesperson should sell and
how sales should be divided among the companys products with _____.
a. sales goals
b. company quotas
c. sales quotas
d. sales incentives
e. all of the above
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34. Of all the tools commonly used, which one of the following is the best for
management to use in evaluating salespeople?
a. Call reports.
b. Sales reports.
c. Expense reports.
d. Sales quota reports.
e. Customer feedback reports.
(Answer: b; p. 413; Moderate)
35. The selling process consists of several steps that the salesperson must master. They
focus on the goals of _____ and _____ from them.
a. closing sales; getting orders
b. getting new customers; extracting their problems to solve
c. getting new customers; obtaining orders
d. overcoming objections; obtaining orders
e. quoting prices; obtaining orders
36. The step that follows preapproach in the selling process is _____.
a. presentation
b. demonstration
c. handling objections
d. approach
e. qualifying
37. What should the salesperson and the sales manager accomplish during an evaluation?
a. Provide constructive feedback.
b. Provide motivation to perform well.
c. Develop and communicate clear standards.
38. The prospecting step in the selling process includes identifying and _____ the
prospects. Without both of them much time and effort will be wasted.
a. calling
b. qualifying
c. preselling
d. making an appointment with
e. approaching
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39. Prospects can be qualified by looking at their financial ability, volume of business,
_____, location, and possibilities for growth.
a. ability to pay
b. longevity in the market
c. special needs
d. compensation
e. image
40. The type of salesperson that fits best with todays marketing concept is a _____.
a. hard-sell salesperson
b. problem-solver salesperson
c. razzle-dazzle salesperson
d. salesperson on salary and not on commission
e. salesperson on commission and not on salary
41. The qualities that buyers like most in salespeople include empathy, honesty,
dependability, thoroughness, follow-through, and _____.
a. being a good listener
b. being a good communicator
c. being sympathetic
d. being a caring person
e. candor
42. The qualities buyers dislike most in salespeople includes all of the following except
_____.
a. being pushy
b. being deceitful
c. being too early for an appointment
d. being unprepared
e. all of the above
43. To handle objections successfully, a salesperson should use a positive approach, seek
out hidden objections, ask the buyer to clarify any objections, take objections as
opportunities to provide more information, and _____.
a. turn the objections into humor
b. seek to minimize or play down the objections
c. compliment the buyer for bringing the objections up
d. turn the objections into reasons for buying
e. A and C
(Answer: d; pp. 415416; Challenging)
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44. Other than prospecting, a difficult step in the sales process for most people is to
_____ because they may lack confidence or feel guilty about asking for an order.
a. approach the prospect
b. make a professional presentation
c. handle the objections well
d. close the sale
e. follow up
45. Which step in the sales process is necessary if the salesperson wants to ensure
customer satisfaction and repeat business?
a. Proper approach.
b. Professional presentation.
c. Handling objections well.
d. Follow-up.
46. Today, most companies still use direct marketing as a _____ for marketing their
goods.
a. supplementary channel or medium
b. major marketing mix element
c. compliment to personal selling
d. technique reserved for mature and international markets
e. A, B, and C
47. Today, direct marketing relies heavily on database technologies and the Internet.
Early direct marketers used primarily direct mailers, telemarketers, and _____.
a. door-to-door salespeople
b. catalogs
c. C.O.D. delivery
d. A and C
48. For buyers, direct marketing is convenient, easy to use, and private. For sellers it is
_____.
a. a great tool for building customer relationships
b. great to find customers that a firm might otherwise overlook
c. a low-cost, efficient alternative for reaching their markets
d. all of the above
e. a hassle
(Answer: d; pp. 418419; Moderate)
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49. Belinda Stahl would like to reach more customers and save money in the process.
Through research she has learned that _____ is the fastest growing form of marketing.
a. personal selling
b. advertising
c. direct marketing
d. public relations
e. sales promotions
50. A comprehensive database is a tremendous tool for the direct marketer. It should
contain data that is geographic, demographic, psychographic, and _____ in nature.
a. specific
b. culturally oriented
c. current and relevant
d. behavioral
e. sociological
51. What might be found in a B2B marketing database? A customers profile might
contain products and services purchased, past volumes of purchases, and _____.
a. key contact people
b. personal information about buyers
c. history of the business
d. B and C
52. A great advantage of a comprehensive marketing database is that companies can
identify small groups of customers to receive _____ marketing offers and
communications.
a. frequent
b. finely tuned
c. low-cost
d. competitive
e. unusual
53. Which one of the following purposes is not a common use of a direct marketing
database?
a. Identify prospects.
b. Generate sales leads.
c. Profile customers based on previous purchases.
d. Reduce competitive loyalty by up to 50 percent.
e. A and D
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54. Which of the following is not a form of direct marketing?

a. Personal selling.
b. Advertising.
c. Telephone marketing.
d. Direct-mail marketing.
e. A and C
55. The major direct-marketing communications tool in todays business world is _____.
a. television marketing
b. kiosk marketing
c. telephone marketing
d. catalog marketing
e. the Internet
56. Direct mail has advantages over other forms of direct marketing, such as _____.
a. high target-market selectivity
b. it can be personalized
c. it is flexible
d. all of the above
57. During the last decade, three forms of mail delivery have become popular. Which one
is in direct competition with the post office and is highly automated?
a. Fax mail.
b. E-mail.
c. Voice mail.
d. Cell phone and laptop combination.
58. Catalog marketing can be personalized on a one-to-one basis. Which is not a common
form of catalog marketing?
a. Print catalog.
b. Video catalog.
c. Add-on catalog.
d. Electronic catalog.
e. B and D
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59. Catalog sales have grown tremendously in the last few years with more than 10,000
companies producing some 14,000 specialty catalogs. Sales were $69 billion in 1996
and are expected to be more than _____ billion by 2008.
a. $50
b. $175
c. $300
d. $500
e. $900
60. Which statement is true regarding catalog marketing?
a. More and more catalogs are going digital.
b. Consumers make 36 percent of their purchases online.
c. Customers who receive print catalogs are more likely to buy online.
d. Catalog marketing is increasing in popularity.
e. All of the above statements are true.
(Answer: e; p. 423; Easy)
61. Web-based catalogs present challenges. What is one of those challenges?
a. They are intrusive.
b. They create their own attention.
c. They are passive and must be marketed.
d. They offer limited selections.
e. They are difficult to locate on the Web.
62. An effective form of direct marketing today is using the 30-minute television
advertising programs for a single product called _____.
a. direct-response TV advertising
b. infomercials
c. home shopping TV
d. publicity
e. all of the above
63. The infomercial-selling champ of all time is _____.
a. Martha Ray
b. Martha Stewart
c. George Foreman
d. Ron Popeil
e. Faith Hill
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64. Direct-response ads always contain _____ to make it easier for marketers to gauge
whether consumers are paying attention to their sales pitches.
a. a mailing address for comments
b. a 1-800 number or the Web address
c. a hit button to record the number of viewers
d. an order number
e. pop-ups
65. In contrast to vending machines, which dispense only products, many companies are
using _____ to dispense information and take orders without direct human aid.
a. kiosks
b. TV monitors
c. the Internet
d. cell phones
66. Kiosk marketing is used for _____.
a. consumer marketing
b. business marketing
c. consumer and business marketing
d. industrial marketing
e. hot foods
67. Too often, a companys individual direct-marketing efforts are not _____ with one
another or with other elements of its _____.
a. well integrated; companys strategy
b. well integrated; marketing and promotion mix
c. timed; promotion
d. compared; marketing and promotion mix
e. A and B
68. Public policy and ethical issues related to direct marketing include all of the
following except one. Which one?
a. Irritation and unfairness.
b. Deception.
c. Fraud.
d. Invasion of privacy.
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69. The toughest public policy issue now confronting the direct-marketing industry is
_____.
a. deception
b. privacy
c. fraud
d. irritation
e. pornography
70. Which is the primary benefit to consumers from database marketing
a. More offers closely matched to their interests.
b. Availability of name-brand images.
c. Better prices.
d. Faster service.
e. Instant credit.
71. Using sophisticated computer technologies today, direct marketers can use their
databases to _____ their selling efforts.
a. track
b. integrate
c. microtarget
d. supplement
e. complement
72. Direct marketers know that, left unattended, problems such as privacy, fraud,
irritation, and deception issues can result in _____.
a. increasingly negative consumer attitudes
b. lower response rates
c. calls for more restrictive government legislation
d. A and C
e. all of the above
73. What is the common goal that both direct marketers and consumers want?
a. Honest marketing efforts.
b. Well-designed marketing efforts.
c. Efforts that consumers will appreciate and respond to.
d. A and C
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74. Call objectives may be to _____.

a. qualify the prospect
b. gather information
c. make an immediate sale
d. A and C
e. all of the above
True/False
75. Today, most salespeople are well-educated, well-trained professionals who work to
build and maintain long-term customer relationships by teaching their customers,
assessing their needs, and organizing the companys efforts to solve customer
problems.
(True; p. 400; Challenging)
76. In her position as an outside field salesperson, Anna Beruk, is the interpersonal arm of
her companys promotion mix.
(True; p. 404; Moderate)
77. Designing sales force strategy and structure is not a major step in sales force
management that a typical company might encounter.
(False; p. 404; Easy)
78. Of all the ways to structure a sales force, product sales force structure helps the
company to become more customer focused and build closer relationships with
important customers.
(False; p. 405; Moderate)
79. To allow outside salespeople more time to spend with customers, many companies
have increased their inside sales forces and added technical support people and sales
assistants.
(True; p. 404; Easy)
80. Team selling is ideal when customer problems become more complex and customers
become larger and more demanding. These teams have the advantages of uncovering
problems that an individual would not, and they can develop new opportunities.
(True; pp. 406407; Moderate)
81. The workload approach to set sales force size is outdated.
82. Networking equipment and software maker Cisco Systems has learned that using the
Internet to train salespeople offers few advantages.
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83. The last thing your manager wants is to have someone ruin a customer relationship
because he or she is pushing too hard to close a deal. Instead, companies are
designing compensation plans that reward salespeople for building customer
relationships and growing the long-run value of each customer.
84. Sales force automation systems have been developed for more efficient order-entry
transactions and improved customer service.
(False; p. 412; Challenging)
85. More and more companies are pushing their salespeople to make short-term goals for
business.
86. If Johnny Pages company is like most consumer goods companies today, he can
boost sales force morale and performance through his organizational climate, sales
contests, and positive incentives.
87. Formal sales force evaluation forces management to develop and communicate clear
standards for judging performance and provide constructive feedback and motivation
to perform well.
88. The step in the selling process where the salesperson learns as much as possible about
the buying organization, what its needs are, and who is involved in the buying, is
called qualifying.
89. During the presentation step of the selling process, the salesperson tells the product
story and explains the product benefits to the customer.
90. The major reason why Sonja Bergman might not be able to close sales to her clients
very well is because she may lack confidence, feel guilty about asking for the order,
or fail to recognize the need for the product being sold.
91. Todays large customers favor suppliers and salespeople who can sell and deliver a
coordinated set of products and services to many locations, and who can work closely
with customer terms to improve products and processes.
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92. The forerunners of todays direct marketing were the catalog companies, direct
mailers, and telemarketers who gathered customer names and sold goods mainly by
mail and telephone.
93. A strong set of reasons for companies to use direct marketing is that it is an easy,
private, and convenient way for customers to shop.
94. Customer databases are invaluable tools for the direct marketer. Typical, they contain
the customers demographics, psychographics, buying behavior, and other relevant
information.
95. My Favorite Flowers floral shops can use its database in many useful ways. The
owners can identify prospects and generate sales leads by advertising products or
offers. They can profile customers based on previous purchasing and decide which
customers should receive particular offers. Salespeople can also help the business to
deepen customer loyalty.
96. The major forms of direct marketing include personal selling, telephone marketing,
direct-mail marketing, catalog marketing, direct-response television marketing, kiosk
marketing, and fax marketing.
97. The method of inbound telephone marketing is to provide a toll-free 1-800 number to
receive orders from television and print ads, direct mail, or catalogs.
98. Direct mail is well suited to direct, one-to-one communication. It permits high targetmarket selectivity, can be personalized, and is flexible. However, it does not allow
easy measurement of results.
99.
Catalog marketing has grown explosively during the past 25 years. Most recently, the
Internet has helped boost the popularity even more.
100. In many instances, direct response television marketing has the advantages of
appealing to more than one of the physical senses, being in color, live product
demonstrations, and prime-time viewing.
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101. Kiosk marketing, typically used in stores, airports, malls, and other locations,
dispenses information and takes orders, as opposed to vending machines that dispense
products for sale.
102. The major public policy and ethical issues in direct marketing today are irritation,
unfairness, privacy, deception, and fraud.
103. Wing Supply sells game calls to hunters through direct mail and database marketing.
Their customers can benefit from this database marketing because they may receive
more offers that are closely matched to their interests.
104. In a typical sales force, the top 30 percent of the salespeople might bring in 60
percent of the sales.
Essay
105. Describe the nature of personal selling and the role of the sales force.
Today, most salespeople are well-educated and well-trained professionals who work
to build and maintain long-term customer relationships by listening to their
customers, assessing customer needs, and organizing the companys efforts to solve
customer problems. Salespeople act as order takers, order getters, and creative sellers.
Personal selling is the interpersonal arm of the promotion mix. The sales force acts as
a critical link between a company and its customers. Salespeople represent the
company to the customer and the customer to the company to produce customer
satisfaction and company profit.
(p. 401; Moderate)
106. Compare and contrast the three major sales force structures.
In the territorial sales force structure, each salesperson is assigned to an exclusive
geographic area and sells the companys full line of products or services to all
customers in that territory. This organization clearly defines each persons job, fixes
accountability, and increases the persons desire to build local business relationships
that improve selling effectiveness. The product sales force structure allows the sales
force to sell along product lines; the seller becomes very knowledgeable about
products. This method can cause duplication of efforts and several salespersons
calling on the same accounts. The customer sales force structure organizes along
customer or industry lines; this can help a company to become more customer
focused and build closer relationships with important customers.
(p. 403; Challenging)
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107. Why are more companies using team selling? What are its pros and cons?
Team selling is useful to service large, complex accounts. Sales teams can uncover
problems, solutions, and sales opportunities that no individual salesperson could.
Teams can help train their members informally and boost morale. Some pitfalls exist,
such as selling teams can confuse or overwhelm customers who are used to working
with only one salesperson. Some salespersons have trouble working with others.
Finally, difficulties in evaluating individual contributions to the team selling effort
can create some sticky compensation issues.
(pp. 4064077; Moderate)
108. What are the steps in finding and training an adequate sales force? Which step is more
important?
Recruiting and selecting the sales force comes first. Following selection, orientation
and training must be conducted based upon the knowledge and skill levels of the
recruits. The proper compensation method must be selected to motivate and assist
each person to reach his or her goals and the companys goals. Management must
supervise salespeople and assist them in reaching their goals. Management must also
evaluate salespeople and provide feedback to improve performance. The most
important step is probably the recruitment and selection step. Good performers
produce results; typically, 30 percent of the sales force produces 60 percent of the
sales.
109. Provide the seven steps in the selling process. What may be the two most difficult
steps for most salespeople?
Prospecting and qualifying begin the process, followed by the preapproach. Next, the
salesperson makes an approach to make a presentation or demonstration. Handling
objections follows, leading into closing the sale. Each sale requires a follow up to
make it complete. For most salespeople, especially new ones, the prospecting,
qualifying, and closing steps are the most difficult and require much skill.
(pp. 4134144; Easy)
110. Please explain the major benefits of direct marketing.
For buyers, direct marketing is convenient, easy to use, and private. It gives buyers
ready access to a wealth of products and information, at home or work and around the
globe. It is immediate and interactive. For sellers it is powerful for building customer
relationships. Using database marketing, marketers can target small groups or
individual consumers, tailor offers of individual needs, and promote these offers
through personalized communications. It provides great timing and offers a low-cost,
efficient alternative for reaching markets. Direct marketing has become the fastest
form of marketing.
(p. 417; Moderate)
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112. Provide the major advantage of each form of direct marketing.

Telephone marketing provides purchasing convenience and increased product and
service information. Direct mail marketing permits selectivity and personalization.
Catalog marketing allows customers to buy just about anything they desire. Directresponse television marketing allows live demonstrations with salespeople coming to
your home or business. Kiosk marketing places information and ordering machines in
convenient places, airports, stores, malls, and so forth.
(p. 421; Easy)
113. What are the five major public policy and ethical issues in direct marketing? Why are
consumers concerned about them?
The five major issues are irritation, unfairness, deception, fraud, and invasion of
privacy. Consumers are concerned those marketers know too much about their lives
and that they use this knowledge to take unfair advantage of consumers.
(p. 428; Easy)
114. How does database marketing benefit consumers?
Consumers often benefit from all this information kept about them in databases. They
receive more offers that are closely matched to their interests.
(p. 429; Moderate)
115. Explain the follow-up step of the selling process.
The follow-up step is necessary if the salesperson wants to ensure customer
satisfaction and repeat business. Right after closing, the salesperson should complete
any details on delivery time, purchase terms, and other matters. The salesperson then
should schedule a follow-up call when the initial order is received, to make sure there
is proper installation, instruction, and servicing. This visit would reveal any problems,
assure the buyer of the salespersons interest, and reduce any buyer concerns that
might have arisen since the sale.
(p. 416; Easy)
APPLICATION CONTENT: Multiple-Choice Questions
116. New Wave Music Company has decided to switch to a customer sales force structure.
Which of the following advantages may the company now enjoy?
a. The company can become more customer focused.
b. The company can build closer relationships with important customers.
c. The company can build a more knowledgeable and well-rounded sales force.
d. A and C
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117. East Bay Communications has increased its inside sales force. How will this help its
outside sales force?
a. It will allow them more time to sell to major accounts.
b. It will allow them more time to find major new prospects.
c. It will allow them more time to provide after-the-sale customer service.
d. A and B
(Answer: e; pp. 404405; Moderate)
118. Your sales manager wants to hire only proven salespeople. His reasoning includes all
of the following except _____.
a. They need less training.
b. They will not ask for a large expense account.
c. They can be immediately productive.
d. They can grasp both product knowledge and sales skills faster.
e. all of the above
119. Greg Burden is sales manager for High Grade Industrial Chemicals. He wants to raise
his sales force selling time by 33 percent. Currently they spend the nationwide
average of _____ percent of their workweek actually selling.
a. 20 to 30
b. 40 to 50
c. 60 to 70
d. 80 to 90
e. 100
120. Your firm wants to increase sales and reach new markets with direct marketing. To
accomplish this, the sales or marketing manager would choose which of the
following?
a. Sales promotions.
b. Advertising.
c. Kiosk marketing.
d. Public relations and publicity.
e. A or B
143
121. Pete Sanchez has added telemarketing as a form of direct marketing to his company.
He sees an opportunity to grow and at the same time offer advantages to his
customers. Which of the following is not a customer advantage?
a. Purchasing convenience.
b. Increased product information.
c. Increased delivery time.
d. Increased service information.
e. A and B
122. Neal Murphy sells his companys unique gift items on television programs and entire
channels dedicated to selling goods and services. Neal is using _____.
a. infomercials
b. home shopping channels
c. Internet-based infomercials
d. prime-time selling
e. public relations
123. Adam Fox Limited, a noted consumer goods company, uses integrated direct
marketing to greatly improve response rate. Which of the following is his company
not likely to use to accomplish this goal?
a. A Web site.
b. A toll-free number.
c. A faxing component to provide more information.
d. An outbound telemarketing effort.
124. Lyall Electric, Inc., maintains a sales force for its small appliance customers and a
separate sales force for its automotive customers. Lyall Electric utilizes a _____
structure.
a. product sales force
b. customer sales force
c. territorial sales force
d. a combination of B and C
125. Stahl, Inc., has 1,000 Type-A accounts, each requiring 28 calls per year, and 2,200
Type-B accounts, each requiring 15 calls per year. What is the sales forces workload?
144
a. 40,000 calls
b. 41,000 calls
c. 50,000 calls
d. 61,000 calls
e. 71,000 calls
126. If each salesperson at Stahl, Inc., can make 1,500 sales calls per year, based on the
information in question #125, approximately how many salespeople will be needed?
a. 31
b. 35
c. 41
d. 45
e. 48
127. You are responsible for hiring inside salespeople at Acme, Inc. What jobs might you
expect these people to perform?
a. Free outside salespeople to spend time with major accounts.
b. Use the phone to find new leads.
c. Act as liaisons between outside salespeople and customers.
d. Service accounts.
128. As a sales manager, you are not convinced that Web-based training is valuable until
someone demonstrates that _____.
a. salespeople can obtain text-based product training through the Web
b. sales skills are not likely to be acquired via Web-based training
c. sales skills are likely to be acquired via Web-based training
d. A and C
e. all of the above
129. Your companys goal is to maximize profitability; therefore, you will likely want a
salesperson who is _____.
a. an independent self-starter
b. a team player
c. not a team player
d. money driven
e. A and C
130. Your inside sales force is responsible for prospecting and qualifying customers.
Which of the following will likely occur?
a. The number of qualified customers will exceed the number of prospects.
145
b. The outside sales force will call on all prospects.

c. A salesperson may have to approach all qualified customers just to make one sale.
e. A and C
131. Saturn uses a database. How might this automobile manufacturer benefit?
a. Saturn can determine the geographic concentration of its customers in Illinois
versus Ohio, for example.
b. Saturn can determine what features to add to next years models.
c. Saturn can fine-tune certain marketing offers for specified customer groups.
d. A and B
132. As a marketing manager, you are trying to determine how much of your promotional
effort should be geared toward personal selling. Which factor(s) may influence your
choice?
a. Promotional dollars available.
b. Nature of your products.
c. Nature of your industry.
d. Target market characteristics.
(Answer: e; p 402; Easy)
133. Morrill Motors splits the United States into 10 sales regions. Within each of those
regions, the company maintains two sales teamsone for existing customers and one
for prospects. What type of sales force structure does Morrill Motors use?
a. Territorial.
b. Product.
c. Customer.
d. Complex.
e. Workload.
134. You want to collect information about your sales force in the New England states.
What might you consider in doing so?
a. Sales reports.
b. Call reports.
c. Expense reports.
d. Profit performance in the territory .
135. Your sales force is able to easily assess their opportunities within the firm. This
feeling describes your firms _____.
a. prospecting
146
b. organizational climate
c. workload approach
d. technical support
e. sales structure
Short Answer
136. What are three roles given to people who do the selling?
Salespeople are order takers, order getters, creative sellers, and relationship builders.
(p. 402; Easy)
137. What type of company may use the territorial sales force structure?
Companies who have split their customer bases up based on geographic location will
benefit from this type of structure. With a territorial sales force structure, the
organization clearly defines each salespersons job and accountability. In addition,
this type of structure increases the salespersons desire to build strong customervendor relationships.
(p. 403; Moderate)
138. What type of company may use a product sales force structure?
With this structure, the salespeople sell along product lines; this type of structure will
most likely be used by companies that carry extensive product lines with the need to
separate customers according to the products they buy.
(p. 403; Moderate)
139. What type of company may use a customer sales force structure?
With this type of structure, companies organize their sales forces according to
customer types. For example, a manufacturer of insulated wire for both the small
appliance and automotive industries may decide to segment their salespeople
according to either the small appliance category or the automotive category.
(p. 403; Moderate)
140. Explain how the workload approach helps companies set sales force size.
147
Using this approach, the company first groups accounts into different classes
according to size, account status, or other factors related to the amount of effort
required to maintain them. It then determines the number of salespeople needed to
call on each class of accounts the desired number of times.
(p. 404; Moderate)
141. Why might a company need to hire both an inside and an outside sales force?
For example, larger accounts may require special nurturing; therefore, an outside
sales force can call on those customers. Smaller accounts may be able to be taken care
of by an inside sales force.
(pp. 404405; Moderate)
142. Identify the four types of compensation plans available to salespeople.
These include: straight salary, straight commission, salary plus bonus, and salary plus
commission.
(p. 410; Easy)
143. What does the annual call plan indicate?
The annual call plan shows which customers and prospects to call on in which months
and which activities to carry out.
(p. 411; Moderate)
144. What does time-and-duty analysis reveal?
This tool indicates time spent selling, traveling, waiting, eating, taking breaks, and
doing administrative chores.
(p. 411; Easy)
145. What is a firms organizational climate?
Organizational climate describes the feeling that salespeople have about their
opportunities, value, and rewards for a good performance.
(p. 412; Moderate)
146. Why does a firms number of prospects always equal or exceed its number of
qualified customers?
Prospecting identifies the total number of potential customers in an area; qualifying
breaks that number of prospects down into the actual group that the salesperson will
target.
(p. 414; Moderate)
147. Why does a salesperson set call objectives?
148
Call objectives allow the salesperson to better qualify the prospect, gather more or
better information, and/or make an immediate sale.
148. In what situation might a demonstration be especially critical during a salespersons
presentation?
A demonstration may be important if the products use or value can be better
understood with a visual demonstration. For example, if comparing Brand A brass
cleaner with another leading brand, a demonstration of how much more quickly
Brand A works may be more convincing for the prospective buyer.
149. In what situation might the need-satisfaction approach be important to the
salesperson?
This approach calls for good listening and problem-solving skills. The salesperson
commits himself or herself to listening to the customers problems, providing viable
solutions, follow-up, and so forth.
150. What are three possible signs that the salesperson should close the call?
The call should be closed when the customer nods approvingly when asking about
price or credit terms. In addition, the salesperson should close the call after the
customer or prospect has asked for updated pricing or product samples, or when the
customer/prospective buyer suggests a future meeting date to discuss pricing, quality,
and so on.
151. Why might the follow-up be considered the most critical step of the sales process?
The follow-up allows the salesperson to assure his or her continued interest and to
address buyer concerns that might have arisen since the sale.
(p. 416; Moderate)
152. What types of information are stored in a customer database?
A database can store demographic, psychographic, geographic, and/or product-use
information. This information allows the marketer to keep track of numerous
characteristics of the typical customer.
(p. 420; Easy)
153. Why might e-mail eventually become an ineffective promotional medium?
149
As people receive more and more e-mail, they tend to resent the intrusion of
unrequested messages.
(p. 423; Easy)
154. What may be considered a huge disadvantage with kiosk marketing?
Kiosks provide an informal way of contacting customers and prospects; kiosks
provide an impersonal touch that many customers may appreciate from marketers.
(p. 426; Easy)
155. Why have firms adopted sales force automation systems?
Many firms have adopted sales force automation systems for more efficient orderentry transactions, improved customer service, and better salesperson decisionmaking support.
(p. 412; Moderate)
Scenario
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and
heavy truck industry. Though the customer base is small, monthly sales at Reliable are
approximately $1 million. You might say we have all of our eggs in one basket, says
owner Arthur Deetz. Reliable Tool has captured a small piece of the pie but is the sole
supplier of hub and axle components to its customers; therefore, it is critical that a
competent sales force be maintained in order to nurture those few but large accounts.
Ninety-five percent of Reliables customers are located in Michigan, Ohio, and Indiana.
Travel time to all customers is short but, given the nature of the industry, time spent with
each customer is essential.
156. Why might personal selling be the best way for Reliable to promote?
Personal selling provides face-to-face contact with Reliables customers. This is
essential because the scenario indicates that the current customer base demands a fair
amount of personal attention. In addition, a heavy emphasis on personal selling helps
to build Reliable Tools credibility among prospects as they quickly become familiar
with Reliables face-to-face efforts.
(p. 402; Easy)
157. What sales force structure will work best for Reliable Tool?
150
A customer sales force structure may work best; this structure allows separate
salespeople to contact current versus existing customers and allows salespeople to
build closer relationships with important customers and prospects. In addition, for
some of the larger accounts, a team effort may prove to be successful; this approach
would allow various employees from various departments at Reliable to make contact
with their customer contacts.
158. Will an inside or outside sales force benefit Reliable Tool the most?
An outside sales force provides the face-to-face contact necessary to nurture these
few but large accounts. In addition, attracting new customers may require intense
face-to-face communication with prospects in the industry.
(p. 404; Moderate)
159. In order to best motivate this workforce, which of the four compensation plans may
work best?
Students answers will vary. However, because Reliable Tools accounts require
special nurturing, a straight salary may work best. A straight salary may eliminate the
aggressiveness or assertiveness that can often accompany salespeople who are
working to earning a commission or bonuses.
160. Assess the organization climate at this company.
Students assessments will vary. However, because Reliables customers require a
level of attentiveness that may go beyond typical accounts in other industries, Arthur
Deetz must certainly understand that salespeople turnover, at whatever rate, would be
detrimental to the customer-vendor relations necessary for Reliables success.
161. What are some factors that may be considered when qualifying prospects at Reliable
Tool Company?
The prospects ability to pay, the prospects annual amount purchased, and the
prospects images in the marketplace may all play a role.
(p. 414; Easy)
162. What is an effective way for salespeople at Reliable Tool Company to follow up after
a call?
151
As with any sales call, a good follow-up will include an overview of the previous
sales meeting, an update on pricing or changes within the company since the
salesperson last spoke with the customer, any plans for a future visit, as well as a
thank-you for the customers time.
(p. 416; Moderate)
163. How could this company benefit from using a customer database?
Because the products produced at Reliable are probably customized hubs and axles,
a database may likely serve a diminished purpose. However, such a database can
provide the marketer with any types of product changes or evolutions that may have
occurred in the distant past as well as a number of other changes.
(p. 420; Moderate)
164. Should this company use kiosk marketing? Why or why not?
Unlikely. Kiosk marketing is most often used as a convenience tool; therefore, the
attention required by the typical Reliable Tool customer could not be given. In
addition, kiosks will not likely work well for products that are custom-made; a tradeshow may be a better tool for Reliable Tool.
(p. 426; Moderate)
165. What qualities might customers dislike most in salespeople at Reliable Tool?
Such qualities may include being deceitful, late, pushy, and unprepared or
disorganized.
(p. 415; Easy)
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Communicating Customer Value

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Communicating Customer Value

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Chapter 13

Communicating Customer Value: Personal Selling and

5. _____ involves two-way, personal communication between salespeople and

10. What do many companies use to set sales force size?

54. Which of the following is not a form of direct marketing?

74. Call objectives may be to _____.

112. Provide the major advantage of each form of direct marketing.

b. The outside sales force will call on all prospects.

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