ABC’s Of Relationship Selling through Service 12th Edition by Charles Futrell  – Test Bank

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ABC’s Of Relationship Selling through Service 12th Edition by Charles Futrell  – Test Bank

 

Sample  Questions

 

Chapter 07 Planning the Sales Call Is a Must!

True / False Questions

  1. (p. 231)Purpose is a list of plans, goals, or objectives that differ from one sales call to another.
    Answer: False

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Purpose is not a list of plans, goals, or objectives that differ from one sales call to another. Purpose is a constant truth that guides your business life and directs how you approach each sales call.

 

  1. Successful people have a tendency to make, implement, and evaluate plans.
    Answer: True

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The difference between successful people and less successful people is that successful people plan, implement their plans, and evaluate the day’s sales results in order to know what to do tomorrow. Less successful people think about planning but seldom do it.

 

  1. A plan is defined as the act of setting a goal and accomplishing it.
    Answer: False

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A plan is a method of achieving an end. A plan involves what you want to accomplish and how you will do it.

 

  1. According to the text, a salesperson’s purpose, plan, and goal do not center on helping but on selling.
    Answer: False

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The author asserts that a salesperson’s purpose, plan, and goal should center on helping customers rather than on selling products.

 

  1. The lack of trust towards salespeople is caused by the self-centered nature of some salespeople.
    Answer: True

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Many people do not trust salespeople. Often salespeople are self-centered, only wanting to make a sale for their own benefit.

 

  1. Empathy and kindness are the primary bridges between buyer and seller.
    Answer: False

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Truth and trust build a bridge between a buyer and a seller. Long-term buyer-seller relationships rely on truth and trust.

 

  1. Careful planning of every aspect of the sales call helps the salesperson be organized and prepared to interact with the customer.
    Answer: True

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Careful planning of the sales call improves the salesperson’s organization and ability to communicate with the customer. Planning is part of ethical service which leads to building relationships with the customer.

 

  1. High-performing salespeople tend to be strategic problem solvers for their customers.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Top salespeople are able to assess and analyze customer’s strategic needs, develop creative solutions, and reach mutually beneficial agreements.

 

  1. Prospecting is often referred to as the preapproach.
    Answer: False

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Prospecting is the first step in the sales process. Preapproach, which involves planning the sales call, is the second step.

 

  1. The top salespeople who are effective strategic problem solvers have the skills and knowledge to develop mutually beneficial agreements.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Top salespeople have the skills and knowledge needed to assess and analyze customer’s strategic needs, develop creative solutions, and reach mutually beneficial agreements.

 

  1. The purpose of the strategic customer relationship between a salesperson and a customer is the joint pursuit of mutual goals.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A strategic customer relationship is formed to pursue mutual goals together. Customer goals may involve reducing costs, which a sales organization seeks to increase sales and profits.

 

  1. Mutual goals of customers and sales organizations include increasing sales and profits.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Strategic goals for a customer typically include reducing costs and/or increasing productivity, sales, and profits. The sales organization has goals of increasing sales and profits.

 

  1. Salespeople and customers need to work together to achieve a mutually beneficial agreement.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Salespeople and customers say that a significant shift has occurred in their expectations of the outcome of sales agreements—from the adversarial win–lose to the more collaborative “win–win” arrangement. To achieve a mutually beneficial agreement, salespeople and customers must work together to develop a common understanding of the issues and challenges at hand.

 

  1. In order to be a success, it is imperative that a salesperson be able to tailor a customized solution for each customer.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The ability of a salesperson to tailor a “custom” solution for each customer is critical today. The salesperson needs to use creative problem solving to identify the specific solution that meets each customer’s needs.

 

  1. According to surveys, there has been a shift in recent years from collaborative relationships between sellers and buyers to more adversarial arrangements.
    Answer: False

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Salespeople and customers say that a significant shift has occurred in their expectations of the outcome of sales agreements—from the adversarial win–lose to the more collaborative “win–win” arrangement. To achieve a mutually beneficial agreement, salespeople and customers must work together to develop a common understanding of the issues and challenges at hand.

 

 

  1. Planning the sales call is the key to success.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Planning improves the chances of success by showing professionalism, building confidence, and developing a positive atmosphere.

 

  1. Nervousness is a normal component of giving sales presentations, and there is nothing that can be done to reduce it.
    Answer: False

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: In giving a speech before a large group, most people are nervous. You can greatly reduce this nervousness and increase self-confidence by planning what to say and practicing your talk.

 

  1. By carefully planning and practicing your sales presentation, you increase confidence in yourself and your ability as a salesperson.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: In giving a speech before a large group, most people are nervous. You can greatly reduce this nervousness and increase self-confidence by planning what to say and practicing your talk.

 

  1. Good business relationships are built on your knowledge of your company, industry, and customers’ needs.
    Answer: True

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Good business relationships are built on your knowledge of your company, industry, and customer’s needs. Show prospects that you are calling on them to help solve their problems or satisfy their needs.

 

  1. Planning is most effective and efficient when done logically and methodically.
    Answer: True

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Like other beneficial presales call activities, planning is most effective (and time efficient) when done logically and methodically. Some salespeople try what they consider planning, later discarding the process because it took too much time. In many cases, these individuals were not aware of the basic elements of sales planning.

  1. A salesperson cannot make a sales call without a sales call objective.
    Answer: False

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: It is possible to make a sales call without having a sales call objective in mind. A survey call is a legitimate sales technique. However, when all the calls that salespeople make are survey calls, they should be working exclusively for the market research department.

 

  1. Selling is a very complex process, but it is easy to do on a consistent basis.
    Answer: False

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Selling is not a very complex process. It’s just difficult to do on a consistent basis. That’s why, whether you regard it as an art or a science, the discipline of selling starts with setting a precall objective.

 

  1. Salespeople can focus their activities by writing down predetermined goals prior to sales calls.
    Answer: True

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Writing down your precall objective increases the focus of your efforts. Professional sales representative should be moving their customers toward a predetermined goal.

 

  1. Planning is only necessary when a salesperson is making a formal presentation.

Answer: False

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Just because a salesperson isn’t making a formal presentation doesn’t mean that the call shouldn’t be planned. Sometimes the sales call has a limited objective.

 

  1. The sales call objective should be directly beneficial to the customer.
    Answer: True

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation:

 

  1. The best possible sales call objective is to get an order because it reflects the salesperson’s self-confidence and a specific goal.
    Answer: False

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Although getting an order is a positive goal, it is not specific. Sales goals should specify the needs of the prospect and the most suitable product or service.

 

  1. A SMART sales call objective is specific, measurable, actionable, reliable, and timely.
    Answer: False

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: SMART call objectives are specific, measurable, achievable, realistic, and timed.

 

  1. A customer profile should answer the question, “What are the purchasing policies and practices of the account?”
    Answer: True

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Customer profiles address questions related to purchasing policies and practices, as well as the history of the account, and the buyer’s background.

 

  1. The customer benefit plan contains the nucleus of the information used in the salesperson’s sales presentation.
    Answer: True

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Beginning with your sales call objectives and what you know about your prospect, you are ready to develop a customer benefit plan. The customer benefit plan contains the nucleus of the information used in your sales presentation; thus it should be developed to the best of your ability.

 

  1. The main reason the prospect should purchase your product is that its benefits fulfill certain needs.
    Answer: True

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Select the features, advantages, and benefits of your product to present to your prospect because these address the issue of why the buyer should purchase your product.  Your product should fulfill certain needs or solve certain problems for the buyer.

 

  1. When Mack Latham selects and then suggests the type of networking software his prospect should buy, he is working on step three of his customer benefit plan.
    Answer: False

Learning Objective: 07-03

Topic:

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first step of developing a customer benefit plan requires the salesperson to select the features, advantages, and benefits of a product to present to a prospect. This addresses the issue of why the buyer should purchase your product.

 

  1. Value analysis is an example of a business proposition for an industrial product.
    Answer: True

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A value analysis would be suitable when making a business proposition for an industrial product. Other topics to discuss include list price, shipping costs, and discounts.

 

  1. Topics to discuss during the business proposition segment of a sales presentation include list price, shipping costs, and ROI.

Answer: True

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: List price, shipping costs, discounts, markup, profit, financing, and ROI are just some of the topics that could be addressed during the business proposition segment of a presentation.

 

  1. Before developing your presentation, you need to determine the prospect to call on and make an appointment..
    Answer: True

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Before developing your presentation, you need to determine the prospect or customer to call on, make an appointment, and then plan the sales call. Once the prospect and objective have been identified, it’s time to plan out and prepare the sales presentation itself.

 

  1. The last step in planning your sales call is to develop a marketing plan for the prospect.
    Answer: False

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The final step is planning a sales call is developing and rehearsing the sales presentation. Developing a marketing plan would occur earlier in the process.

 

  1. The first of a prospect’s five mental steps in buying is ignorance.
    Answer: False

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first mental step is capturing and maintaining the prospect’s attention. This step may be difficult because the prospect may be distracted or lacking interest.

 

  1. A salesperson knows that a prospect’s desire for a product is solidified when the potential buyer asks a question about price.
    Answer: False

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Asking questions about a product is a normal component of communication during a sales presentation. However, asking a question about price does not guarantee that a prospect will make a purchase.

 

  1. The salesperson prepares to ask the prospect to make a purchase after conviction has been established.
    Answer: True

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Conviction about a product occurs when the prospect feels strongly that the product is necessary. At that point, the salesperson will close the deal by asking the prospect to take action and buy the product.

 

  1. Closing the sale is always the most difficult part of the sales presentation.
    Answer: False

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Closing the sale is the easiest step in the sales presentation when the steps leading up to that point have been implemented correctly.

 

  1. The FAB formula helps a salesperson increase a prospect’s desire for a product.
    Answer: True

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Using the FAB formula, strive to bring prospects from lukewarm interest to a boiling desire for your product. Desire is created when prospects express a wish or wanting for a product like yours.

 

Multiple Choice Questions

  1. According to the Golden Rule of Selling, your primary purpose for any sales call should be to:
    A. determine who has the authority and the ability to be a buyer.
    B. create a long-term relationship with all prospects.
    C.meet and provide help to a prospect.
  2. sell a product to every prospect.
    E. qualify leads efficiently.

Answer: c

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: You are meeting with a prospect with the purpose of helping him or her. Your purpose, plan, and goal do not center on selling but helping.

 

  1. Which of the following statements about the purpose for any sale is most likely false?
    A. Purpose is broad in scope
    B. Purpose helps define who you are as a sales professional
    C.Purpose is a list of objectives that differ from one sales call to another
    D. Purpose directs how you approach each sales call
    E. Purpose defines success for you

Answer: c

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Purpose is not a list of plans, goals, or objectives that differ from one sales call to another. Purpose is a constant truth that guides your business life. Purpose directs how you approach each sales call. It defines success for you. Purpose classifies your relationships. It helps define who you are as a sales professional.

 

  1. According to the Golden Rule of Selling, a salesperson should have a _____ that focuses all sales efforts on serving others.
    A. goal
    B. quota
    C. target
    D.purpose
    E. plan

Answer: d

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation:  A salesperson’s purpose for making any sales call should be to make a contribution to the welfare of the person or organization. Helping prospects requires making a plan that is related to the purpose.

 

  1. A _____ is a method of achieving an end.
    A.plan
    B. goal
    C. target
    D. purpose
    E. quota

Answer: a

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A plan is a method of achieving an end. A plan involves what you want to accomplish and how you will do it.

 

  1. According to the Golden Rule of Selling, a plan should primarily be based upon:
    A.truth.
    B. action.
    C. benefits.
    D. sales goals.
    E. personal success.

Answer: a

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A plan involves what you want to accomplish and how you will do it. The foundation of your plan must be based upon the truth.

 

  1. Setting a goal and accomplishing it is called:
    A. plan.
    B. goal.
    C. target.
    D.success.
    E. quota.

Answer: d

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Success is setting a goal and accomplishing it. You are meeting with someone with the purpose of helping him or her. Your purpose, plan, and goal do not center on selling but helping.

 

  1. Only through _____ can trust be supported to bridge the gap between sellers and buyers.
    A. purpose
    B. faith
    C. planning
    D.truth
    E. success

Answer: d

Learning Objective: 07-01

Topic:

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Only through truth can trust be supported to bridge the gap between people—seller and buyer. Truth that is without distortion due to personal feelings or prejudices is the center pole supporting trust.

 

  1. What is often referred to as the preapproach?
    A.Planning
    B. Targeting
    C. Evaluation
    D. Analysis
    E. Designing

Answer: a

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Planning is often referred to as the preapproach. Once the prospect has been located, or the salesperson determines which customer to call on, the salesperson is ready to plan the sales call.

 

  1. Which term refers to programs, goals, and problems of great importance to customers?
    A. Creative
    B. Analytical
    C.Strategic
    D. Evaluative
    E. Marginal

Answer: c

Learning Objective: 07-01

Topic:

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: High-performing salespeople tend to be strategic problem solvers for their customers. Strategic refers to programs, goals, and problems of great importance to customers.

 

  1. A(n) ________ is a formal relationship between a salesperson and a customer for the purpose of pursuing mutual goals.
    A. transactional relationship
    B. exchange-oriented dependency
    C. symbiotic relationship
    D.strategic customer relationship
    E. joint decision-making alliance

Answer: d

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The purpose of a strategic customer relationship is the joint pursuit of mutual goals. Strategic goals for a customer typically include reducing costs and/or increasing productivity, sales, and profits. The sales organization has goals of increasing sales and profits.

 

 

  1. Which of the following is critical to strategic problem solving?
    A. Nonverbal communication
    B. High-tech equipment
    C. Effective prospecting
    D.Creative solutions
    E. Industry alliances

Answer: d

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Strategic needs, creative solutions, and mutually beneficial agreements are critical to strategic problem solving. When properly executed by the salesperson, they create a strategic customer relationship.

  1. A salesperson and a customer enter into a strategic customer relationship in order to:
    A.pursue mutual goals.
    B. maintain an adversarial relationship.
    C. create transactional exchanges.
    D. eliminate routine buying decisions.
    E. broaden the channel of distribution.

Answer: a

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The purpose of a strategic customer relationship is the joint pursuit of mutual goals. Strategic goals for a customer typically include reducing costs and/or increasing productivity, sales, and profits. The sales organization has goals of increasing sales and profits.

 

  1. Nordstrom, the fashion retailer, is installing software in its 137 stores that will help the company gather customer preferences and product information. The software will assist the store’s salespeople to understand each customer as a person with unique wants and needs. Nordstrom is helping its salespeople create _____ with the store’s customers.
    A. transactional relationships
    B. exchange-oriented dependencies
    C. symbiotic relationships
    D.strategic customer relationships
    E. joint decision-making alliances

Answer: d

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The purpose of a strategic customer relationship is the joint pursuit of mutual goals. The Nordstrom system will help salespeople understand and meet the needs of customers, so both the seller and the customer benefit.

 

  1. A(n) _____ has the ability to develop and combine nontraditional alternatives to meet the specific needs of the customer.
    A. tactical partner
    B.creative problem solver
    C. low-involvement decision maker
    D. transactional partner
    E. exchange creator

Answer: b

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach Planning

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Today’s salespeople need to be creative problem solvers who have the ability to develop and combine nontraditional alternatives to meet the specific needs of the customer.

The better a salesperson is at creatively marshaling all available resources to address a customer’s strategic needs, the stronger the customer relationship becomes.

 

  1. Jack, an office supply salesperson, recently called on a customer who was trying to select photos to include in a catalog. The customer wanted to look at the 10 photos side-by-side for comparison, but his easel was too small and the cinderblock walls in the office would not hold tacks or tape. The customer explained that the situation was a regular issue for him. Jack obtained a roll of cork and a can of cork glue to convert an office wall into a giant bulletin board. In this instance, Jack acted as a(n):
    A. tactical partner.
    B.creative problem solver.
    C. low-involvement decision maker.
    D. transactional partner.
    E. exchange creator.

Answer: b

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Today’s salespeople need to be creative problem solvers who have the ability to develop and combine nontraditional alternatives to meet the specific needs of the customer.

Jack was able to creatively marshal his resources to address a customer’s strategic needs, which most likely strengthened the customer relationship.

 

 

  1. Lev Knossos sells high tech equipment and software to companies in Greece. When he first started selling to Greek businesses, he was told that the Greek market lagged behind others in the use of technology. After conducting research, Knossos visited the Commercial Bank of Greece and explained how his products could create Web pages for the bank and facilitate banking transactions. By applying his product knowledge to solve a technology issue that he identified, Knossos took the role of:
    A. tactical partner.
    B.creative problem solver.
    C. low-involvement decision maker.
    D. transactional partner.
    E. exchange creator.

Answer: b

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Today’s salespeople need to be creative problem solvers who have the ability to develop and combine nontraditional alternatives to meet the specific needs of the customer.

Knossos was able to identify a problem and explain the benefits of his creative solution to the bank.

 

  1. All of the following hold true of the customer relationship model EXCEPT:
    A. it requires consultative selling.
    B. the sales process unites the buyer’s strategic needs with the salesperson’s creative solutions.
    C.the relationship is expected to be short-term.
    D. the relationship must be mutually beneficial for the buyer and the seller.
    E. the customer reaches his/her goal along with the seller.

Answer: c

Learning Objective: 07-0

Topic:

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The customer relationship model brings together the main elements of consultative selling and shows that customers have strategic needs that salespeople must meet through creative solutions, which benefits both buyers and sellers. This results in the seller being able to sell the customer again and again and building a long-term relationship.

 

  1. ________ selling makes the customer-relationship model viable.
    A.Consultative
    B. Memorized
    C. Feature/
    D. Direct
    E. Close-ended

Answer: a

Learning Objective: 07-01

Topic:

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The customer relationship model brings together the main elements of consultative selling. It shows that customers have strategic needs that salespeople must meet through creative solutions.

 

  1. During the _____, the salesperson plans the sales call on a prospect.
    A.preapproach
    B. trial close
    C. sales presentation
    D. approach
    E. value analysis

Answer: a

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A salesperson plans the sales call on a prospect during the preapproach stage of the sales process.

 

  1. Which of the following is the LEAST likely reason for a sales call to be planned?
    A. Building confidence
    B. Developing goodwill
    C. Exhibiting professionalism
    D. Increasing the potential of a sale
  2. Eliminating customer objections

Answer: e

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Objections cannot be eliminated from a sales call, although planning may address many of them. Numerous reasons for planning the sales call including the fact that planning aids in building confidence. Planning also develops an atmosphere of goodwill between the buyer and seller, reflects professionalism, and increases sales because the salesperson understands the buyer’s needs.

 

  1. Which of the following is the most likely reason that salespeople plan their sales calls?
    A. Shortening the sales presentation
  2. Overcoming customer objections
    C.Establishing professionalism
    D. Utilizing new technologies
    E. Training new employees

Answer: c

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Numerous reasons for planning the sales call including the fact that planning reflects professionalism. Objections cannot be eliminated from a sales call, although planning may address many of them.

 

  1. When a salesperson is faced with a unique set of customer problems to solve, the salesperson will most likely need to:
    A. act professionally.
    B. build self-confidence.
    C. develop an atmosphere of goodwill.
    D. enhance the buying and selling procedure.
    E.customize a product to best address the client’s needs.

Answer: e

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: For each customer, a salesperson is often faced with a specific, unique set of problems to solve. The ability of a salesperson to tailor a “custom” solution for each customer is critical today.

 

  1. Which of the following is LEAST likely to be a performance goal of consultative selling in the customer relationship model?
    A. Costs
    B. Sales
    C. Profits
    D.Experience
    E. Productivity

Answer: d

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember   Understand

AACSB:

Level of Difficulty: Easy   Medium

Explanation: Although experience is essential to a sales career, it is not likely a performance goal of consultative selling. Performance goals should address costs, sales, profits, and productivity.

 

  1. Anthony is going on his first sales call, and he is very nervous. A professional salesperson would most likely tell Anthony that the key to selling success is the willingness to:
    A. motivate the customer to buy even if the customer does not really need the product.
    B. continually monitor the competition.
    C.plan and rehearse the sales call.
    D. ignore customer objections.
    E. schedule the length of each sales call to be no more than 30 minutes.

Answer: c

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: By carefully planning your presentation, you increase confidence in yourself and your ability as a salesperson, which will reduce nervousness. This is why planning the sales call is especially important.

 

  1. A salesperson engaged in sales call planning should:
    A. create nonspecific sales call objectives.
    B.develop the sales presentation.
    C. conduct vendor analyses.
    D. join a sales lead club.
    E. design after-the-sale service approach.

Answer: b

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A component of planning a sales call is to develop a sales presentation. The other steps include identifying call objectives, developing a customer profile, and reviewing customer benefits.

 

  1. Mervin Jacob sells professional barbeque grill equipment to high-end restaurants. His products come in different sizes and specifications. When he called on Grill Kingdom, a popular barbeque restaurant, he was determined to sell at least one of his top-end grill pro machines. Jacob decided his _____ even before his sales call.
    A. selling proposition
    B. marketing plan
    C. FAB plan
    D.objective
    E. prospect

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The sales call objective is the main purpose of a salesperson’s contact with a prospect or customer. Mervin clarified his objective prior to the sales call.

 

  1. The four elements of sales call planning (in their correct order) are:
    A. customer profile, sales call objective, sales presentation, and sales benefit.
    B.sales call objective, customer profile, customer benefit plan, and sales presentation.
    C. customer profile, sales call objective, customer benefit plan, and sales presentation.
    D. sales call objective, customer benefit plan, customer profile, and sales presentation.
    E. customer preapproach, customer profile, customer sales call objective, and sales presentation.

Answer: b

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember   Understand

AACSB:

Level of Difficulty: Easy   Medium

Explanation: The first step of sales call planning is identifying sales call objectives. Developing a customer profile, reviewing customer benefits, and creating a sales presentation are the next steps.

 

  1. Which of the following is one of the four components of the sales call planning process?
    A. A marketing audit
    B. A vendor analysis
    C.A customer profile
    D. Perceptual mapping
    E. Market testing

Answer: c

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first step of sales call planning is identifying sales call objectives.

Developing a customer profile, reviewing customer benefits, and creating a sales presentation are the next steps.

 

  1. A(n) _____ is the main purpose of a salesperson’s contact with a prospect.
    A.sales call objective
    B. sales mission
    C. sales profile
    D. marketing goal
    E. preapproach profile

Answer: a

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The main purpose of contacting a prospect is known as the sales call objective. Identifying the objective is the first step in the sales call planning process.

 

  1. Which of the following statements about sales call objectives is true?
    A. Sales call objectives should primarily benefit the salesperson.
  2. A sales call objective is only necessary when making formal presentations.
    C. A customer profile must be developed before making a sales call objective.
    D.The sales call objective is the main purpose of a salesperson’s contact with a prospect.
    E. A sales call objective is usually too complex to modify once a sales call has developed.

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The main purpose of a sales call is the objective, which should benefit the customer rather than the salesperson. Such objectives are essential both for sales presentations and less formal visits with a customer.

  1. Garth sells spray booths for repainting vehicles to shops that repair wrecked vehicles. The spray booths are used for painting cars and trucks and come in a variety of sizes. The spray booths are used to contain the paint and to protect the car surface while the paint is drying. When he called on Elwood Body Shop, his _____ was to sell the body shop owner one of his company’s taller spray booths designed for trucks.
    A. selling proposition
    B. marketing plan
    C.sales call objective
    D. FAB plan
    E. customer profile goal

Answer: c

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The main purpose of contacting a prospect is known as the sales call objective. Identifying the objective is the first step in the sales call planning process.

 

  1. What is needed in order to develop a customer benefit plan?
    A. Rehearsed preapproach
    B. Industry profile
    C. Customer profile
    D. Client referrals
    E. Customer profit ratio

Answer: c

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A sales objective and a customer profile are needed before a salesperson can develop a customer benefit plan. These are components of preapproach.

 

  1. Which of the following statements is most likely true?
    A. Selling is a very complex process.
    B. Selling is easy to do on a consistent basis.
    C.A sales call must move systematically toward a sale.
    D. Selling begins with negating a precall sales objective.
    E. Elaborate planning is necessary before making a sales call.

Answer: c

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: By definition, a sales call must move systematically toward a sale, but it doesn’t necessarily involve elaborate planning. Selling is not complex, but it is difficult to be successful consistently.

 

  1. In a SMART sales call objective, the “S” refers to the fact that the objective should:
    A.be specific.
    B. be sales-oriented.
    C. balance supply with demand.
    D. support organizational objectives.
    E. put customer service before self-gratification.

Answer: a

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. Merely stating the desire to get an order is not specific enough.

 

  1. In a SMART sales call objective, the “M” refers to the fact that the objective should:
    A. manage time wisely.
    B. maximize the customer’s order size.
    C. minimize the cost to the customer.
    D.be measurable.
    E. move the prospect to buy.

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember   Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. A goal should be quantifiable in number and size.

 

  1. In a SMART sales call objective, the “A” refers to the fact that the objective should:
    A. authorize immediate response.
    B.be achievable.
    C. create product awareness.
    D. augment the sales potential.
    E. be analytical.

Answer: b

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. The goal should not be too difficult to fulfill.

 

  1. Robert Hayden sells metal gazebos. He approaches a large retail chain of home improvement stores. He decides beforehand to sell 10 pieces to their regional procurement manager. In terms of the acronym “SMART”, his primary objective is to:
    A. have a targeted rate of return.
    B.be specific.
    C. put customer service first.
    D. maximize the customer’s order.
    E. relate to the present and future needs of the customer.

Answer: b

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. Deciding to sell 10 pieces is a very specific objective.

 

  1. Randal Lamson sells carpet and rugs. He approaches a retail chain of home renovation stores with a plan to sell five rugs. In terms of “SMART”, his goal meets the requirement to:
    A. be specific.
    B.identify the ROI.
    C. put customer service first.
    D. maximize the customer’s order.
    E. relate to the present and future needs of the customer.

Answer: a

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. Selling five rugs is a specific goal for Randal.

 

  1. John sells safety equipment to law enforcement agencies. Before calling on the Humphrey Sheriff’s Department, John decided that he wanted to get an order for eight new bulletproof vests from the sheriff before he left the office. In terms of the acronym SMART, John’s objective:
    A. is relevant.
    B.is very specific.
    C. puts customer service first.
    D. maximizes the customer’s order.
    E. is related to the present and future needs of the customer.

Answer: b

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. John’s objective of selling eight vests is specific.

 

  1. Rob Stewart sells office equipment and calls on the office manager of a large firm. Rob wants to sell the prospect 30 units of general office supplies. In terms of the acronym SMART, Stewart’s objective:
    A. could not be measured.
    B. was probably not achievable.
    C. was missing a valid order size.
    D.did not specify a time period.
    E. met all objective requirements.

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. Rob’s goal meets every criterion except for the time component because it does not state when he would like to accomplish the objective.

 

  1. In a SMART sales call objective, the “R” refers to the fact that the objective should:
    A. enhance relationship building.
    B. be based on marketing research.
    C. relate to future customer needs.
    D. create references.
    E.be realistic.

Answer: e

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. Realistic goals are not too easy to fulfill.

 

  1. In a SMART sales call objective, the “T” refers to the fact that the objective should:
    A.be timed.
    B. have a technical-orientation.
    C. be tested.
    D. have a targeted rate of return.
    E. describe trade areas.

Answer: a

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. The salesperson should identify when the objective will be accomplished.

 

  1. Steve sells paint to shops that repair wrecked vehicles. When Steve called on Elwood Body Shop, he wanted to sell the body shop owner six cases of his company’s base coating paint. In terms of the acronym SMART, Steve’s objective:
    A. could not be measured.
    B. was not readily achievable.
    C. did not have a valid order size.
    D.was missing the time component.
    E. met all call objective requirements.

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: SMART sales call objectives are specific, measurable, achievable, realistic, and timed. Steve’s objective failed to identify when the goal of selling six cases would be accomplished.

 

  1. Carlos sells mailing lists for a direct marketing company. He is interested in selling a mailing list to the publisher of a magazine devoted to new electronic products. Carlos learns that he cannot close the sale until meeting the publisher’s circulation vice president. This sort of information would be found in the _____ that Carlos created.
    A. sales call objective
    B. company’s marketing plan
    C. competitive portfolio
    D.customer profile sheet
    E. business proposition

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A customer profile sheet should include as much relevant information as possible regarding the firm, the buyer, and the individuals who influence the buying decision to properly develop a customized presentation.

 

  1. Loreen sells how-to books and is going on a sales call to a local bookstore. Loreen knows the purchasing policies of the store such as who makes buying decisions. Such information can be found in Loreen’s:
    A. sales call objective.
    B. marketing plan.
    C. competitive portfolio.
    D.customer profile.
    E. business proposition.

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A customer profile sheet should include as much relevant information as possible regarding the firm, the buyer, and the individuals who influence the buying decision to properly develop a customized presentation.

 

  1. Reyna sells children’s encyclopedias. Before a sales call at a local bookstore, Reyna collected background information about the company and reviewed the store’s typical business terms and requirements. Reyna compiled this information in her:
    A. sales call objective.
    B. overall marketing plan.
    C. competitive portfolio.
    D. business proposition.
    E.customer profile.

Answer: e

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A customer profile sheet should include as much relevant information as possible regarding the firm, the buyer, and the individuals who influence the buying decision to properly develop a customized presentation.

 

  1. A _____ would answer questions such as “What is the buyer’s background?” and “What are the company’s purchasing policies?”
    A. sales call objective
    B. company’s marketing plan
    C. competitive portfolio
    D.customer profile
    E. business proposition

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A customer profile sheet should include as much relevant information as possible regarding the firm, the buyer, and the individuals who influence the buying decision to properly develop a customized presentation. It should cover the buyer’s background and company policies.

 

  1. What is the primary purpose of developing a customer profile sheet?
    A. Understanding the structure of the company’s buying center
    B. Identifying the best strategy to use in a sales call
    C. Narrowing the objective of the sales call
    D.Using visual aids in a sales presentation
    E. Developing rapport with the prospect

Answer: d

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Analyze

AACSB:

Level of Difficulty: Hard

Explanation: A customer profile sheet can be a guide for determining the appropriate strategy to use in contacting each customer. The salesperson should review as much relevant information as possible regarding the firm, the buyer, and individuals who influence buying decisions in order to develop a customized presentation.

89. Carl, an office supply salesperson, determined during the preapproach process that a prospect could save 25 percent yearly by purchasing a bulk order of 30 units of Carl’s general supplies kit. Carl has defined this advantage while developing a(n):
A. value analysis.
B. customer benefit plan.
C. individualized sales call objective.
D. customer profile.
E. customized marketing objective.

Answer: b

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The customer benefit plan contains the nucleus of the information used in your sales presentation and includes the features, advantages, and benefits of your product.  The main reason the prospect should purchase your product is that its benefits fulfill certain needs, such as saving money on office supplies.

 

  1. Walter sells sporting goods. During sales call planning for an upcoming appointment with a prospect, Walter determines that the prospect could save 10% annually on golf balls by purchasing 50 units of Pinnacle golf balls from Walter. He has determined this advantage while developing a(n):
    A. value analysis.
    B.customer benefit plan.
    C. individualized sales call objective.
    D. customer profile.
    E. customized marketing objective.

Answer: b

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The customer benefit plan contains the nucleus of the information used in your sales presentation and includes the features, advantages, and benefits of your product.  The main reason the prospect should purchase your product is that its benefits fulfill certain needs, such as saving money on golf balls.

 

  1. The salesperson’s _____ contains the central information provided in the sales presentation.
    A.customer benefit plan
    B. sales call objective
    C. customer profile
    D. marketing plan
    E. business proposition

Answer: a

Learning Objective: 7-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The customer benefit plan contains the nucleus of the information used in your sales presentation and includes the features, advantages, and benefits of your product.  The main reason the prospect should purchase your product is that its benefits fulfill certain needs, such as saving money on golf balls.

  1. What is the first step in developing a customer benefit plan?
    A. Establish a marketing plan
    B. Creating a detailed customer profile
    C. Selecting a suggested purchase order for a prospect
    D. Developing a business proposition that includes a value analysis
    E.Choosing the features, advantages, and benefits to present to a prospect

Answer: e

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first step in creating a customer benefit plan is selecting the features, advantages, and benefits of your product to present to your prospect. Developing a market plan, a business proposition, and a suggested purchase order are the next three steps in the process.

 

  1. What is the second step in developing a customer benefit plan?
    A. Identifying benefits
    B.Creating a marketing plan
    C. Establishing a sales call objective
    D. Developing a business proposition
    E. Customizing a purchase order plan

Answer: b

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The second step in developing a customer benefit plan is to create a marketing plan. The third step is developing a business proposition, and the fourth is developing a suggested purchase order.

 

  1. Which component of a customer benefit plan most likely includes price, percent markup, and ROI?
    A. Customized marketing plan
    B.Business proposition
    C. Sales call objective
    D. Customer profile
    E. Purchase order

Answer: b

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The third step in developing a customer benefit plan involves creating a business proposition. This component includes items such as price, percent markup, forecasted profit per square foot of shelf space, return on investment, and payment plan.

 

  1. A marketing plan for a retailer should most likely include how to:
    A. identify benefits.
    B. utilize the SELL sequence.
    C.promote a specific product.
  2. evaluate return on investment.
    E. present a customer needs analysis.

Answer: c

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: An effective marketing plan includes suggestions on how a retailer, for example, should “promote” the product through displays, advertising, proper shelf space and positioning, and pricing.

 

  1. What is the final step in developing a customer benefit plan?
    A. Performing a value analysis that identifies ROI
    B.Assessing the prospect’s attitude with a trial close
    C. Creating an individualized sales call objective
    D. Developing a suggested purchase order
    E. Presenting a marketing plan

Answer: d

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The last step in the process is developing a suggested purchase order based on a customer benefit plan. A proper presentation of your customer needs analysis and your product’s ability to fulfill these needs, along with a satisfactory business proposition and marketing plan, allows you to justify to the prospect what product and/or how much to purchase.

 

  1. Tatum is a sales representative a gourmet cookware manufacturer. Tatum’s marketing plan for a store that would be a logical retail outlet for her products should include:
    A. how ultimate consumers should correctly dispose of old kitchen tools.
    B. how the retailer can adopt the role of end-user.
    C.how the reseller will promote the cookware once purchased.
    D. the business proposition which the retailer will adhere to.
    E. a purchase order based on a seller benefit plan.

Answer: c

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: An effective marketing plan includes suggestions on how a retailer should promote the product through displays, advertising, proper shelf space and positioning, and pricing.

 

  1. Strategies for selling a product to a reseller’s customers would most likely be included in a:
    A. business proposition.
    B. FAB statement.
    C.marketing plan.
    D. suggested purchase order.
    E. SELL sequence.

Answer: c

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: An effective marketing plan includes suggestions on how a retailer should promote the product through displays, advertising, proper shelf space and positioning, and pricing.

 

  1. Which of the following is an example of a topic often discussed in the marketing plan segment of a sales presentation for a reseller?
    A. Guarantees
    B. Maintenance
    C.Demonstrations
    D. List price
    E. Shipping costs

Answer: c

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: An effective marketing plan includes suggestions on how a retailer should promote the product through demonstrations, displays, advertising, proper shelf space and positioning, and pricing. Guarantees and maintenance would be included in a marketing plan segment for end users.

 

  1. A marketing plan created for an end-user most likely addresses:
    A. the business proposition.
    B. forecasted profit and ROI.
    C.how the product can be used.
    D. how a reseller will sell the product once purchased.
    E. the features, advantages, and benefits of the product.

Answer: c

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: For an end user of the product, such as the company that buys your manufacturing equipment, computer, or photocopier, develop a program showing how your product is most effectively used or coordinated with existing equipment.

 

  1. Which of the following is an example of a topic often discussed in the marketing plan segment of a sales presentation for an end-user?
    A. Geographic advertising
    B. Samples
    C.Availability
    D. Trade shows
    E. List price

Answer: c

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The marketing plan for an end user would most likely address availability, delivery, guarantee, and installation. Advertising, samples, and trade shows would be in a marketing plan for a reseller.

 

  1. Annette sells store fixtures such as clothing racks, wall shelving, and storage units. In developing her _____ for a prospect, Annette uses the square footage of the prospect’s retail store to predict profit as well as return on investment if her fixtures are purchased.
    A. sales call objective
    B. marketing call
    C. customer profile
    D. FAB
    E. business proposition

Answer: e

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A business proposition includes items such as price, percent markup, forecasted profit per square foot of shelf space, return on investment, and payment plan.

 

  1. Which of the following is an example of a topic discussed in the business proposition segment of a sales presentation for a reseller?
    A. Demonstrations
    B. Guarantees
    C. Maintenance/service
    D. Value analysis
    E.Discounts

Answer: e

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Discounts, markup, profit, and list price are topics addressed in the business proposition for resellers. A value analysis would be in a business proposition to end users.

 

  1. Which of the following is an example of a topic discussed in the business proposition segment of a sales presentation for an end-user?
    A.ROI
    B. Discounts
    C. Warranties
    D. Regional advertising
    E. Coupons

Answer: a

Learning Objective: 07-0

Topic:

Blooms: Remember   Understand

AACSB:

Level of Difficulty: Easy   Medium

Explanation: ROI would be in a business proposition to end users. Discounts and coupons are topics addressed in the business proposition for resellers.

 

  1. A suggested purchase order would most likely include all of the following information about a product EXCEPT:
  2. type.
    B. quantity.
    C. assortment.
    D. promotion ideas.
    E. shipment details.

Answer: d

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The last step in creating a customer benefit plan is developing a suggested purchase order. This suggestion may include, depending on the product, such things as what to buy, how much to buy, what assortment to buy, and when to ship the product to the customer. Promotion ideas would be included in a marketing plan.

 

  1. The first three steps involved in developing the customer benefit plan (in their correct order) are:
    A. developing marketing plan, developing FAB, and developing business proposition.
    B. developing benefits, developing business proposition, and developing marketing plan.
    C. developing marketing plan, developing business proposition, and closing the sale.
    D.developing FAB, developing marketing plan, and developing business proposition.
    E. developing business proposition, developing marketing plan, and closing the sale.

Answer: d

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first step in creating a customer benefit plan is selecting the features, advantages, and benefits of your product to present to your prospect. Developing a market plan, a business proposition, and a suggested purchase order are the next three steps in the process.

 

 

 

  1. Which of the following would most likely occur in the approach phase of a sales presentation?
    A. Describing features, advantages, and benefits
    B. Asking for the prospect’s business
    C. Explaining product usage
    D.Building rapport
    E. Reselling

Answer: d

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: During the approach phase of a sales presentation, a salesperson would build rapport with the prospect and then transition into the sales presentation. During the presentation, the salesperson would discuss product features and usage and eventually ask for the business.

 

  1. Recommending what to buy in order to fill the needs of the customer is uncovered in which phase of your sales presentation?
    A. Approach
    B. Present your marketing plan
    C. Explain your business proposition
    D.Suggest purchase order
    E. Close

Answer: d

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A suggested purchase order includes recommendations to meet the customer’s needs. A purchase order is suggested later in the presentation process after the salesperson has discussed the product and presented a marketing plan as well as a business proposition.

 

  1. Which of the following should be addressed in the closing phase of a sales presentation?
    A. Explaining usage
    B. Outlining features
    C. Building rapport
    D.Asking for business
    E. Explaining how to resell

Answer: d

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: During closing, the salesperson asks the prospect to make a purchase. Prior to closing, the salesperson explains the features and usage of the product.

 

  1. In which of the prospect’s mental steps would interruptions be most difficult for a salesperson to overcome?
    A. Interest
    B. Action
    C. Conviction
    D.Attention
    E. Desire

Answer: d

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first mental step of buying is the attention phase. This step may be difficult at times for salespeople because of distractions, pressing demands on the prospect’s time, or lack of interest.

 

  1. The first mental step of a prospect’s buying decision is:
  2. conviction.
    B.attention.
    C. purchase.
    D. desire.
    E. interest.

Answer: b

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first mental step of buying is the attention phase. Interest, desire, conviction, and purchase are the next four steps.

 

  1. A salesperson’s prospects go through several mental steps in deciding whether to buy or not to buy a product. Select these steps in their correct order.
    A. Attention, interest, desire, purchase, and action
    B. Attention, desire, interest, conviction, and purchase
    C.Attention, interest, desire, conviction, and purchase
    D. Attention, interest, desire, conviction, purchase, and action
    E. Attention, conviction, desire, interest, purchase, and action

Answer: c

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first mental step of buying is the attention phase. Interest, desire, conviction, and purchase are the next four steps.

 

  1. A prospect goes through five mental steps, which all lead to the purchase decision. The approach stage of the selling process should:
    A. move the prospect to the conviction stage.
    B.attract customer attention and interest.
    C. make the customer desire the product.
    D. get the customer to take some action.
    E. handle initial objections.

Answer: b

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: Grabbing customer attention is an element of the approach phase of a sales presentation and also the first mental step in the buyer’s purchasing decision. A salesperson must first capture the attention of the prospect so that the prospect will listen to the sales presentation.

 

  1. As a salesperson, you should know that the second of the five mental steps that a prospect goes through in deciding to buy from you is:
    A.interest.
    B. insight.
    C. intent.
    D. inference.
    E. incubation.

Answer: a

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first mental step of buying is the attention phase. Interest, desire, conviction, and purchase are the next four steps in order.

 

  1. As a salesperson for a restaurant equipment supplier, you have decided to call on Frederick Hawkins, the owner of Fred’s House of Pancakes. If Frederick decides to discuss your products then he is most likely in the ________ stage of the buying decision.
  2. attention
    B. conviction
    C.purchase
    D. interest
    E. desire

Answer: d

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Prospects enter the interest stage if they listen to and enter into a discussion with you. If Frederick expressed a wish to have a product like the one being discussed, then Frederick would be in the desire stage.

 

  1. Arminda, who sells wicker furniture, invites the owner of Stanley Furniture to watch a demonstration outside. Arminda pours a five-gallon bucket of water on a wicker chair, talks to the storeowner for about 10 minutes, and then sits in the chair to show its water-resistance. Assuming she had the customer’s attention and interest as soon as she poured the water on the chair, Arminda was trying to move the prospect into which stage next?
    A. Plan
    B.Desire
    C. Purchase
    D. Conviction
    E. Development

Answer: b

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first two steps of buying are attention and interest. Arminda was trying to move the owner towards the next stage, which is desire.

 

  1. The _____ can be used to move prospects from mild interest to a strong desire for a product.
    A. interactive method
    B. SELL sequence
    C. business proposition
    D.FAB process
    E. action enhancement method

Answer: d

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A salesperson can use the FAB formula to bring prospects from lukewarm interest to a boiling desire for a product. Desire is created when prospects express a wish or wanting for a product like yours.

 

  1. Assuming you are a salesperson, in which of the following mental steps does the prospect decide he should buy from you because there are no remaining doubts in his mind?
    A.Conviction
    B. Acceptance
    C. Desire
    D. Purchase
    E. Action

Answer: a

Learning Objective: 07-0

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Conviction is established when no doubts remain about purchasing the product from you. Desire is created when prospects express a wish or wanting for a product like yours, but doubts may still exist.

 

  1. Eugene sells clothing designed for skiing to the retail buyer for a large ski resort. When the prospect says, “I’ve seen enough, Eugene. There is no doubt in my mind that your company will provide our resort with the best quality ski clothes for the money,” he has reached the mental step called:
    A. action.
    B. interest.
    C.conviction.
    D. desire.
    E. purchase.

Answer: c

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Conviction is established when no doubts remain about purchasing the product from you. Desire is created when prospects express a wish or wanting for a product like yours, but doubts may still exist.

 

  1. Arminda sells wicker furniture. She invites the owner of Stanley Furniture to come outside with her to watch a demonstration. She pours a five-gallon bucket of water on a chair, chatts with the storeowner for about 10 minutes, and then sits in the chair to show how water-resistant it is. When the customer tells her, “I’ve got to carry those chairs into my store. My customers will love them,” he is in which stage of the purchasing decision?
  2. Awareness
    B.Conviction
    C. Incubation
    D. Demand
    E. Interest

Answer: b

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Conviction is established when no doubts remain about purchasing the product from you. By taking the chairs inside to show customers, the storeowner indicates that no doubts remain about the product.

 

  1. When attempting to close a sale, a salesperson most likely believes that a prospect is in the _____ phase of the purchasing decision.
  2. conviction
    B.action
    C. desire
    D. attention
    E. interest

Answer: b

Learning Objective: 07-04

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Once the prospect is convinced, the salesperson is ready to close the sale and ask the prospect to make a purchase or take some other action. If each of the preceding steps has been implemented correctly, closing the sale is the easiest step in the sales presentation.

 

  1. Maria, an office supply sales representative, is in the process of giving a sales presentation to the manager of a large accounting firm. Maria asks the manager, “How many desks to you think that you require?” The manager responds, “Three dozen. How soon can you deliver?” Which mental step has the manager reached?
    A. Attention
  2. Desire
    C. Interest
    D.Action
    E. Conviction

Answer: d

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Once the prospect is convinced, the salesperson is ready to close the sale and ask the prospect to make a purchase or take some other action. The manager takes action by order the desks from Maria, which means she has closed the sale.

 

Essay Questions

  1. What skills and knowledge do salespeople need to be effective strategic problem solvers?

Answer: They should be able to uncover and understand the customer’s strategic needs by gaining an in-depth knowledge of the customer’s organization. They develop solutions that demonstrate a creative approach to addressing the customer’s strategic needs in the most efficient and effective manner possible. They arrive at a mutually beneficial agreement.

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What is the customer relationship model? What are the implications of the model on salespeople?

Answer: The customer relationship model brings together the main elements of consultative selling. It shows that customers have strategic needs that salespeople must meet through creative solutions. In doing so, both buyer and seller benefit. The customer reaches his or her goal, as does the seller. This results in the seller being able to sell the customer again and again and again—building a long-term relationship. Strategic customer sales planning is extremely important to the success of today’s salespeople.

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Analyze

AACSB:

Level of Difficulty: Hard

  1. Discuss the following statement: “Today’s salespeople need to be creative problem solvers.”

Answer: Today’s salespeople need to be creative problem solvers to creatively marshal all available resources to address a customer’s specific strategic needs. The ability to tailor a custom solution is critical. The salesperson needs to use creative problem solving to identify the specific solutions that meet each customer’s needs. Instead of one product, the salesperson often must create the solution from a combination of goods and services. The better the salesperson is at creative problem solving, the stronger the customer relationship becomes.

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Analyze

AACSB:

Level of Difficulty: Hard

 

  1. List four reasons why a salesperson should carefully plan his or her sales call.

Answer: (1) Planning builds self-confidence. (2) Planning develops an atmosphere of goodwill between the buyer and seller. (3) Planning reflects professionalism. (4) Planning generally increases sales.

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What are the four components of sales call planning?

Answer: The salesperson should (1) determine the sales call objective, (2) develop or review the customer profile, (3) develop a customer benefit plan, and (4) develop an individual sales presentation based on the sales call objective, the customer profile, and the customer benefit plan.

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. How do experienced salespeople guide the customer in the direction of a preplanned outcome?

Answer: Experienced salespeople guide the customer in the direction of a preplanned outcome with such simple questions as these: If we can meet the spec, can you set up a trial? How soon will the vice president be available to make a decision? Can you schedule a demonstration before the end of the month?

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

  1. The text advises that when setting sales call objectives, the salesperson should think SMART. What do the letters in this acronym advise the salesperson to do?

Answer:

S = Have SPECIFIC objectives
M = Have MEASURABLE objectives
A = Have ACHIEVABLE objectives
R = Have REALISTIC objectives
T = Have TIMED objectives

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. List the four steps involved in creating a customer benefit plan.

Answer: The four steps involved in creating a customer benefit plan are: (1) Select the features, advantages, and benefits of your product to present to your prospect. (2) Develop your marketing plan. (3) Develop your business proposition. (4) Develop a suggested purchase order based on a customer benefit plan.

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What are the mental steps that lead to a purchase decision from a prospect? As a salesperson, which one do you think would be the most difficult and which one would be the easiest? Why?

Answer: The five steps are attention, interest, desire, conviction, and purchase. The most difficult is gaining the prospect’s attention because of distractions, pressing demands on the prospect’s time, or lack of interest. If each of the preceding steps has been implemented correctly, closing the sale is the easiest step in the sales presentation.

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Apply

AACSB:

Level of Difficulty: Hard

 

Short Answer Questions

  1. What is the purpose of making a sales call?

Answer: To make a contribution to the welfare of the person or organization.

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. What is a plan?

Answer: A plan is a method of achieving an end.

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. What is success?

Answer: Success is setting a goal and accomplishing it.

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. According to the author, what two components are necessary to bridge the gap between sellers and buyers?

Answer: Truth and trust

Learning Objective: 07-01

Topic: The Golden Rule: Planning

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. What is a strategic customer relationship?

Answer:  A formal relationship with the customer, the purpose of which is joint pursuit of mutual goals.

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. List some of the typical strategic goals for a customer.

Answer: Strategic goals for a customer typically include reducing costs and/or increasing productivity, sales, and profits.

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. What is the preapproach?

Answer: The planning of the sales call on a customer or prospect.

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. What is the main purpose of a salesperson’s contact with a prospect?

The sales call objective.

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. The goal of the salesperson who is calling on a gift store retailer is “to sell at least $100 worth of merchandise to the customer before the end of the fiscal year.” What technique would you use to determine if this is a good sales call objective?

Answer: By determining if this meets the criteria of a SMART sales call objective.

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. How would the FAB formula be used in a customer benefit plan?

Answer: To show the product’s features, advantages, and benefits to the prospect.

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. List three examples of topics contained in the business proposition segment of a sales presentation for an industrial product.

Value analysis, list price, shipping costs, discounts, financing, ROI, value analysis

Learning Objective: 07-03

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. List the prospect’s five mental steps in buying.

Answer: Attention, interest, desire, conviction, and action.

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Remember

AACSB:

Level of Difficulty: Easy

 

  1. At what stage of a prospect’s buying decision is it best for a salesperson to use the FAB formula?

Answer: Desire

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What is the salesperson’s goal when a prospect is in the conviction stage of the buying decision?

Answer: Develop a strong belief that the product is best suited to the prospects’ specific needs.

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

Multiple Choice Questions
Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. Clearwater has had several orders for more than a quarter of a million dollars. According to the company’s leading salesperson, Peter Austin, “We have lots of repeat corporate customers as a result of the importance we place on getting the hampers out on time and filled with the right products.”

 

  1. The fact that Clearwater Hampers has repeat corporate customers indicates that it creates _____ with its customers.
    A. transactional relationships
    B. exchange-oriented dependencies
    C. symbiotic relationships
    D.strategic relationships
    E. joint decision-making alliances

Answer: d

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: A strategic relationship is a formal relationship between buyers and sellers in which both benefit. The customer reaches his or her goal, as does the seller. This results in the seller being able to sell the customer again and again and again—building a long-term relationship.

 

  1. A corporate customer wanted to give similar Clearwater hampers to its customers who come from a variety of different ethnic backgrounds, which include those who do not eat pork or drink alcoholic beverages. This would require Clearwater to act as a _____ so that each individual gift was culturally-appropriate.
    A. tactical partner
    B.creative problem solver
    C. low-involvement decision maker
    D. transactional partner
    E. exchange creator

Answer: b

Learning Objective: 07-01

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Clearwater needs to tailor a custom solution for the customer to ensure that each recipient of a hamper receives one that is culturally appropriate. Clearwater’s salespeople need to be creative problem solvers who have the ability to develop and combine nontraditional alternatives to meet the specific needs of the customer.

 

  1. In planning a preapproach for a multinational corporation, Peter Austin should first:
    A. consider the types of gifts used in the industry in which the prospect operates.
    B. develop customer features, advantages, and benefits.
    C.determine a sales call objective.
    D. conduct a vendor analysis.
    E. identify and analyze its buying center.

Answer: c

Learning Objective: 07-02

Topic: Strategic Customer Sales Planning—The Preapproach

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The sales call objective is the main purpose of a salesperson’s contact with a prospect or customer, and it is the first decision Peter should make.

 

  1. A _____ would provide Peter Austin with information about who makes the buying decisions for a prospective corporate customer, the buyer’s background, and what kind of credit and delivery terms the account requires.
    A.customer profile
    B. FAB formula
    C. customer benefit plan
    D. value analysis
    E. SWOT analysis

Answer: a

Learning Objective: 07-02

Topic:

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A customer profile includes information about the buyer’s history, any financial considerations of the account, and the individuals involved in making buying decisions.

 

  1. Corporations in the _____ stage of the buying process would have a strong belief that no other company provides better gifts than Clearwater Hampers.
    A. interest
    B. closing
    C.conviction
    D. benefit
    E. attention

Answer: c

Learning Objective: 07-04

Topic: The Prospect’s Mental Steps

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Conviction is established when no doubts remain about purchasing the product from Clearwater. Once the prospect is convinced, the salesperson should ask the prospect to make a purchase.

Chapter 08 Carefully Select Which Sales Presentation Method to Use

True / False Questions

  1. (p. 255)According to the Golden Rule of Selling, the heart of the sales presentation is the salesperson’s approach to the customer or prospect.
    Answer: False

Learning Objective: 08-01

Topic: The Golden Rule: Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The heart of the sales presentation is the discussion of the product, marketing plan, and business proposition. The question is, “To whom is the presentation being given?” Once this question is answered, the salesperson can choose the type of sales presentation method best suited to the prospect or customer.

 

  1. According to the Golden Rule of Selling, the honesty of your sales presentation will convince people that you can be trusted.
    Answer: True

Learning Objective: 08-01

Topic: The Golden Rule: Presentation

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Honesty during a sales presentation conveys to a prospect that the salesperson can be trusted, which bridges the gap between buyer and seller.

 

  1. The selection of the sales presentation method is dependent on the type of audience the salesperson is facing.
    Answer: True

Learning Objective: 08-01

Topic: The Golden Rule: Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Choosing a sales presentation method depends on the audience, the salesperson’s knowledge of the customer, the sales call objective, and the customer benefit plan.

 

  1. The third step in the relationship selling process is the first step in sales presentation.
    Answer: True

Learning Objective: 08-01

Topic: The Golden Rule: Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The third step in the sales process is the first step in the sales presentation. The sales presentation method determines how you open your presentation.

 

  1. The basic difference in the four sales presentation methods is the type of product being sold.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The basic difference in the four methods is the percentage of the conversation controlled by the salesperson. In the more structured memorized and formula selling techniques, the salesperson normally has a monopoly on the conversation, whereas the less structured methods allow for greater buyer–seller interaction; both parties participate equally in the conversation.

 

  1. In the memorized sales presentation, the prospect does very little talking.
    Answer: True

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: In the more structured memorized and formula selling techniques, the salesperson normally has a monopoly on the conversation, whereas the less structured methods allow for greater buyer–seller interaction; both parties participate equally in the conversation.

 

  1. The canned presentation is ineffective in door-to-door selling.
    Answer: False

Learning Objective: 08-0

Topic:

Blooms: Remember   Understand

AACSB:

Level of Difficulty: Easy   Medium

Explanation: Canned presentations are still used today by telemarketers and door-to-door salespeople. The method is fairly effective in these situations.

 

  1. The memorized sales presentation is impractical to use when selling technical products.
    Answer: True

Learning Objective: 08-01

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method is impractical to use when selling technical products that require prospect input and discussion. In this method, the salesperson dominates the discussion.

 

  1. The canned sales presentation is primarily used by experienced salesmen.
    Answer: False

Learning Objective: 08-01

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method ensures that the salesperson gives a well-planned presentation and that all of the company’s salespeople discuss the same information. The method both aids and lends confidence to the inexperienced salesperson.

 

  1. The memorized sales presentation may focus on benefits unimportant to the prospect.
    Answer: True

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method has several major drawbacks. One of the disadvantages is that it presents features, advantages, and benefits that may not be important to the buyer.

 

  1. The memorized sales presentation cannot be used in telephone selling.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Canned presentations are still used today by telemarketers and door-to-door salespeople. The method is fairly effective in these situations where time is limited.

 

  1. The memorized sales presentation is referred to as persuasive selling presentation.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula presentation, often referred to as the persuasive selling presentation, is akin to the memorized method. However, the salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction.

 

  1. To use the formula sales presentation, the salesperson need not know anything about the prospect.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: For the formula method to be effective, the salesperson must first know something about the prospective buyer. The salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction.

 

  1. The formula presentation method is more structured compared to the canned sales presentation method.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula presentation is similar to the memorized method. However, with the formula method, the salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction.

 

  1. The formula presentation is appropriate for repeat purchases.
    Answer: True

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Straight rebuy situations, especially with consumer goods, lend themselves to the formula presentation method. Many prospects or customers buy because they are familiar with the salesperson’s company.

 

  1. A disadvantage of the formula sales presentation is that its format often prevents information from being logically presented.
    Answer: False

Learning Objective: 08-0

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula sales method ensures that all information is presented logically. The method obtains its name from the salesperson using the attention, interest, desire, and action (AIDA) procedure of developing and giving the sales presentation.

 

  1. The formula sales presentation can be adapted to a large majority of complex sales situations.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula technique is not adaptable to all complex selling situations. Such sales situations require other sales presentation methods.

 

  1. The need-satisfaction sales presentation is highly structured.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The need-satisfaction presentation is different from the memorized and the formalized approach; it is designed as a flexible, interactive sales presentation. It is the most challenging and creative form of selling.

 

  1. In the need-satisfaction presentation, the need-awareness phase occurs in the first stage of the presentation.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Need development occurs in the first stage of a need-satisfaction presentation. Need-awareness occurs next.

 

  1. In the need-satisfaction sales presentation, the first 50 to 60 percent of the conversation time is referred to as the need awareness phase.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first 50 to 60 percent of conversation time (referred to as the need-development phase) is devoted to a discussion of the buyer’s needs.

 

  1. The customer does most of the talking in the approach and presentation stages of the need- satisfaction method.
    Answer: True

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: During the approach and presentation stages of the need-satisfaction method, the customer dominates the conversation. The salesperson talks more in the closing stage.

 

  1. In the need-satisfaction presentation method, salespeople enjoy good control over the selling situation.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Some salespeople are uncomfortable with the need-satisfaction approach because they feel less in control of the selling situation than with a canned or formula presentation.

 

  1. Another name for the need-satisfaction presentation is the problem-solution presentation.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The need-satisfaction and problem-solution methods are two different techniques for giving sales presentations.

 

  1. The problem-solution sales presentation consists of six steps. It begins when the salesperson and the prospect agree on the problems that the buyer wants solved.
    Answer: False

Learning Objective: 08-0

Topic:

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The problem-solution presentation involves six steps. However, the first step is convincing the prospect to allow the salesperson to conduct the analysis. The salesperson and prospect agree on the problem to solve in the third step.

 

  1. The problem-solution method is best suited for selling insurance and similar financial products.
    Answer: True

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: In selling highly complex or technical products such as insurance, industrial equipment, accounting systems, office equipment, and computers, salespeople often are required to make several sales calls to develop a detailed analysis of a prospect’s needs. For this reason, the problem-solution method is best.

 

  1. The problem-solution presentation is a flexible method that requires a detailed analysis of the prospect’s needs.
    Answer: True

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The problem–solution presentation is a flexible, customized approach involving an in-depth study of a prospect’s needs, and it requires a well-planned presentation.

 

  1. The problem-solution approach is better than the memorized approach when time is limited.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized presentation method can be used when time is short and the product is simple. The problem–solution presentation is excellent for selling high-cost technical products or services, and especially for system selling involving several sales calls and a business proposition.

 

  1. Prior contact with the buyer is essential in the problem-solution method.
    Answer: False

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Prior contact with the buyer is not necessary with the problem-solution approach. With the formula approach, prior contact is common.

 

  1. When delivering a group presentation, the salesperson will find it necessary to be less structured when dealing with larger groups than when dealing with smaller groups.
    Answer: False

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The larger the group, the more structured your presentation. It would not work if everyone jumped in with feedback and ideas simultaneously, so a semblance of order has to be arranged.

 

  1. During the sales presentation, the salesman should not mention the company’s relative position in terms of competition as it may sound too aggressive.
    Answer: False

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Right up front you can succinctly tell the group where your company stands relative to the competition. Don’t get into a detailed analysis of comparative strengths and weaknesses; just make it clear that you can do better than the competition.

 

  1. Developing a proposal document that can serve as a script during the presentation is a part of the group presentation preparation.
    Answer: False

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: During your presentation, do not read from the document. It is not the presentation; it is strictly a resource of facts to give your prospect after a decision is made.

 

  1. When selling to a group, it is necessary to modify the ten step selling process by omitting the trial close step.
    Answer: False

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: When selling to a group, the trial close remains part of the selling process. It is important to gather feedback from the group by asking questions.

 

  1. For a group sales presentation, prices should be included in an appendix of the proposal document.
    Answer: False

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The best way to present a proposal document is without prices because some people will go directly to the prices without reading through the document. In addition, prices tend to prejudice non–decision makers, who should not be concerned with prices.

 

  1. Salespeople should not question the listening skills of the group members by giving a benefit summary at the conclusion of a group sales presentation.
    Answer: False

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: At the end, summarize your proposal by giving a benefits summary. It is important to remind the group about how the benefits will address their specific problems.

 

  1. Not all styles of sales presentation require that the salesperson be prepared to negotiate.
    Answer: False

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: No matter what type of presentation method you use, or whether you talk to one person or a group of people, be prepared to negotiate.

 

  1. The first phase of any sales negotiation is studying the prospect’s business.
    Answer: False

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Learning about the prospect’s business is the first step of negotiation. Search for reports of previous sales to the business and research the competition as well.

 

  1. The number one asset of a strong negotiator is his or her preparation.
    Answer: True

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The key to strong negotiations is preparation. Review the competition as well as previous sales to the business.

 

  1. The key to selling and negotiating is to always seek a win-win situation in which both the buyer and seller are happy.
    Answer: True

Learning Objective: 08-0

Topic:

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The successful resolution of a negotiation starts with a commitment to do business together. It is then necessary for both parties to maintain common interests and resolve any conflicts cooperatively. The key to selling and negotiating is to always seek a win–win solution for buyers and sellers.

 

  1. Every purchase is made with decision-making criteria in mind. There are usually four levels of desire within the decision-making criteria.
    Answer: False

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Every purchase is made with decision-making criteria in mind, either consciously or subconsciously. Within those criteria, there are usually three levels of desire: must have, should have, and would be nice to have.

 

  1. The successful resolution of a negotiation starts with a commitment to do business together.
    Answer: True

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The successful resolution of a negotiation starts with a commitment to do business together. It is then necessary for both parties to maintain common interests and resolve any conflicts cooperatively.

 

  1. The first discussion point in a sales presentation should address the features, advantages, and benefits that the prospect desires.
    Answer: True

Learning Objective: 08-05

Topic: The Parallel Dimensions of Selling

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Discussing the features, advantages, and benefits of a product is the first action to take in a sales presentation according to the parallel dimensions of selling.

 

  1. ‘Pre-approach’ is the first stage in the selling process.
    Answer: False

Learning Objective: 08-05

Topic:

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The first stage in the selling process is prospecting. Pre-approach and planning occur next.

 

  1. The training usage phases progress from natural to awkward to conscious.

Answer: False

Learning Objective: 08-05

Topic: Practice and Time

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Many salespeople feel awkward at first. In the second phase of training usage, the salesperson consciously uses the training more and more, slowly becoming better at its application on the job. In the third phase of training usage, the new techniques become a natural part of the day-to-day job.

 

Multiple Choice Questions

  1. Which of the following is the fourth step in the sales process?
    A. Prospecting
    B. Preapproach
    C.Presentation
    D. Approach
    E. Handling objections

Answer: c

Learning Objective: 08-01

Topic: The Golden Rule: Presentation

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The sales process begins with prospecting, which is followed by preapproach and approach. The sales presentation is the fourth step in the process.

 

  1. _____ selling occurs when a company’s sales team provides an education-oriented presentation for the customer.
    A. Problem-solution
    B. Need-satisfaction
    C. Seminar
    D. Direct
    E. Conference

Answer: c

Learning Objective: 08-01

Topic: Sales Presentation Strategy

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: During seminar selling, a company team conducts an educational seminar for the customer company about state-of-the-art developments. Conference selling involves the salesperson bringing company resource people to discuss a major problem or opportunity.

 

  1. _____ occurs when the salesperson brings company resource people to discuss a major problem or opportunity.
    A. Educational selling
    B. Need-satisfaction selling
    C. Seminar selling
    D.Conference selling
    E. SWOT selling

Answer: d

Learning Objective: 08-01

Topic: Sales Presentation Strategy

Blooms: Understand

AACSB:

Level of Difficulty: Easy

Explanation: Conference selling involves the salesperson bringing company resource people to discuss a major problem or opportunity. With seminar selling, a company team conducts an educational seminar for the customer company about state-of-the-art developments.

 

 

  1. Why should a salesperson first select a sales presentation method and then the approach?
    A. The sales presentation method is unimportant.
    B. The sales approach is the last step in a sales presentation.
    C. The salesperson can integrate trial closes into the approach.
    D.The sales presentation method determines how to open the presentation.
    E. A good sales presentation can compensate for a poor sales approach method.

Answer: d

Learning Objective: 08-01

Topic: The Golden Rule: Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Once you select the presentation method for a specific prospect or customer, it is time to determine how to open or begin the sales presentation. The sales opener, or approach, as shown is the first major step in the sales presentation.

 

  1. In all four sales presentation methods, the salesperson is most likely to dominate the conversation during the _____ stage.
    A. approach
    B. presentation
    C.close
    D. preapproach
    E. prospecting

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The basic difference in the four methods is the percentage of the conversation controlled by the salesperson. More interaction occurs in less structured methods, but in all cases, the salesperson talks more during closing since that is when the salesperson is trying to make a sale.

 

  1. The _____ involves a persuasive vocal and visual explanation of a business proposition.
    A. pre-approach
    B. display premise
    C. sales presentation
    D. trial close
    E. service follow-up

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Sales presentations involve both verbal and visual explanations of a business proposition for a prospect. Pre-approach refers to the preparation that occurs prior to the presentation.

 

  1. The _____ is the primary factor that differentiates the four sales presentation methods.
    A. type of customer
    B.percentage of the conversation controlled by the salesperson
    C. type of product
    D. measurability of the sales call objective
    E. number of decision makers

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The basic difference in the four methods is the percentage of the conversation controlled by the salesperson. More interaction occurs in less structured methods, but in all cases, the salesperson talks more during closing since that is when the salesperson is trying to make a sale.

 

  1. When compared to other types of sales presentations, memorized selling is the:
    A. least communicated.
    B. most interactive.
    C. least used in telemarketing.
    D. most used in technical sales.
    E.most structured.

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Memorized selling is the most structured type because the salesperson gives a canned speech and little interaction occurs. Formula selling is slightly less structured than memorized.

 

  1. Ashley Trist has selected a selling technique in which she has more control over the conversation between buyer and seller than with any other sales presentation method. What technique is Ashley most likely using?
    A. Professional
    B.Memorized
    C. Need-satisfaction
    D. Barrier
    E. Problem-solution

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Memorized selling is the most structured type because the salesperson gives a canned speech and little interaction occurs. Need-satisfaction and problem-solution methods encourage more interaction with the buyer.

 

  1. According to the text, which of the following is the most structured sales presentation method?
    A.The memorized approach
    B. The AIDA approach
    C. The need-satisfaction approach
    D. The formula approach
    E. The problem-solution approach

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Memorized selling is the most structured type because the salesperson gives a canned speech and little interaction occurs. Formula selling is semi-structured, while need-satisfaction and problem-solution methods are less structured.

 

  1. According to the text, _____ is the most customized sales presentation method.
    A. formula
    B.problem-solution
    C. memorized
    D. stimulus response
    E. need-satisfaction

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: A problem-solution presentation is customized to meet the specific needs of a prospect. Memorized, formula, and need-satisfaction involve less tailoring to specific customers.

  1. Which of the following is an unstructured sales presentation method that typically requires significant creativity?
    A. Memorized presentation
    B. Stimulus response presentation
    C.Need-satisfaction presentation
    D. Canned sales presentation method
    E. Problem-solution presentation

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The need-satisfaction presentation is designed as a flexible, unstructured, interactive sales presentation. It is the most challenging and creative form of selling.

 

  1. According to the text, the _____ method of sales presentation is semi-structured.
    A.formula
    B. memorized
    C. stimulus response
    D. need-satisfaction
    E. problem-solution

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The formula presentation method is less structured than the memorized method. The salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction.

 

  1. With the _____ sales technique, the salesperson monopolizes the conversation and often talks about benefits which are of no use to the prospect. This sales presentation method is often perceived as a high-pressure sales presentation method.
    A. professional
    B. need-satisfaction
    C. barrier
    D.memorized
    E. problem-solution

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method presents the same features, advantages, and benefits to all prospects without regard to interest. The salesperson dominates 80-90% of the conversation, which may be perceived as aggressive.

 

  1. You would most likely find canned sales presentations being used to sell:
    A. office equipment and cash registers.
    B. home entertainment centers.
    C. perishable products.
    D.vacuum cleaners.
    E. legal services.

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Simple products such as vacuum cleaners and cosmetics are often sold with the memorized approach. More costly and complex products require other methods that allow for customer interaction.

 

  1. Arlene, a new cosmetics salesperson, is planning to go door-to-door in a neighborhood in which she has never conducted business. Which sales presentation method would most likely be appropriate for Arlene?
    A. Need-satisfaction
  2. Problem-solution
    C. Customized
    D.Memorized
    E. Formula

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: The memorized approach is best when the product is simple and time is limited. In addition, Arlene is a new salesperson, so having a memorized presentation will most likely give her confidence.

 

  1. Donna is planning her first Pampered Chef party during which she will try to sell the company’s cooking utensils and gadgets. Donna is new to sales and feels nervous about the sales presentation. Which of the following methods would be best for Donna?
    A. Formula
    B.  Memorized
    C.  Customized
    D. Problem-solution
    E. Need-satisfaction

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: The memorized approach is best when the product is simple, time is limited, and the salesperson is inexperienced. Having a memorized presentation will most likely give Donna some confidence and reduce her nervousness.

 

  1. Which of the following is a major advantage of using the memorized sales presentation method?
    A. It allows moderate participation from the prospect.
    B. It allows the salespeople to highlight different benefits for different customers.
    C.It lends confidence to inexperienced salespeople.
    D. It allows salespeople to proceed quickly and answer more customer questions.
  2. It can be used well for selling technical products.

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized approach boosts the confidence of inexperienced salespeople who may not know what to say to prospects. However, the method offers little customer participation and presents benefits that may not be important to all customers. The method is perceived as high pressure because it moves so quickly.

 

  1. Which of the following is an advantage of using a memorized sales presentation?
    A.It ensures that the company’s salespeople provide the same information to all customers.
    B. It has a problem solving orientation that ensures customized benefits.
    C. It is flexible and adapts readily to long or short presentation times.
    D. It keeps prospect participation at a minimum.
    E. It can be used for highly technical products.

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: All salespeople present the same information in the same way, which is beneficial. However, the method offers little customer participation and presents benefits that may not be important to all customers.

 

  1. Which of the following is a disadvantage of the memorized sales presentation?
    A. The difficulty involved in preparing and using the memorized sales presentation often frightens inexperienced salespeople.
    B. The memorized sales presentation includes too much prospect participation.
    C. The memorized sales presentation is not effective when selling time is short.
    D.The memorized sales presentation presents features, advantages and benefits that may not be important to the buyer.
    E. Salespeople are often disorganized when they use the memorized sales presentation.

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method offers little customer participation and presents benefits that may or may not be important to all customers. However, the method boosts the confidence of new salespeople and is best when time is limited.

 

  1. Products that are suitable for the memorized sales presentation method are best described as:
    A. trendy.
    B. simple.
    C. complex.
    D.technical.
    E. industrial.

Answer:

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The memorized sales presentation method is best for trivial and simple products, such as cosmetics and knives. The formula, need-satisfaction, and problem-solution methods are better for increasingly complex or technical products.

 

  1. Which of the following is characteristic of the memorized sales presentation?
    A. Requires prior contact with buyer
    B.Perceived as high pressure selling
    C. Used for multi-day presentations
    D. Lacks structure and organization
    E. Opens with questions to prospect

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method is often perceived as a high-pressure sales approach. No prior contact with the buyer is necessary for the brief, structured presentation.

 

  1. One of the disadvantages of the memorized sales presentation is the fact it:
    A. does not allow the seller to control the conversation.
    B. requires the seller’s presentation to follow the AIDA approach.
    C. requires even inexperienced sellers to adapt to the buyer’s personality.
    D. is inappropriate for transactional selling.
    E.allows for limited prospect participation.

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized sales presentation method allows little participation from the prospect because the salesperson dominates the conversation. The method is best for transactional selling.

 

  1. All of the following are the advantages of a formula sales presentation EXCEPT:
    A. It ensures that all information is presented logically.
    B. It allows reasonable amount of buyer-seller interaction.
    C. It allows for smooth handling of anticipated questions.
    D. It is effective when the product is non-technical.
    E.It is a fully structured sales presentation method.

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula approach is semi-structured, which allows for some buyer-seller interaction. The method ensures that information about non-technical products is presented logically.

 

  1. The formula presentation is often referred to as the _____ presentation.
    A. modified rebuy
    B. AIDA
    C.persuasive selling
    D. transactional
    E. need-development

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The formula presentation, often referred to as the persuasive selling presentation, is akin to the memorized method.

 

  1. The _____ presentation method is based on the assumption that similar prospects in similar situations can be approached with similar presentations.
    A. need-satisfaction
    B. barrier
    C.persuasive selling
    D. relationship
    E. problem-solution

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The formula presentation, often referred to as the persuasive selling presentation, is akin to the memorized method: It is based on the assumption that similar prospects in similar situations can be approached with similar presentations.

 

  1. Which of these statements about formula presentations is true?
    A. The formula presentation is based on the SPIN procedure of developing and giving the sales presentation.
    B. New-task buying situations are a good time to use the formula presentation method.
    C. An advantage of the formula presentation is that it is most adaptable to complex selling situations.
    D. Customers get the greatest amount of talking time at the beginning of the formula sales presentation.
    E.To successfully use the formula sales presentation method, the salesperson must have previously identified the prospect’s needs and wants.

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Formula selling is effective for calling on customers who currently buy and for prospects about whose operations the salesperson has learned a great deal. The method involves the use of the AIDA procedure and is not very useful for complex selling situations.

 

  1. Shawn sells office supplies and paper to large corporations, many of whom are current customers. What sales presentation method should Shawn most likely use?
    A. Need-satisfaction
    B. Memorized
    C. Barrier
    D.Persuasive selling
    E. Problem-solution

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: Formula selling is effective for calling on customers who currently buy and for prospects about whose operations the salesperson has learned a great deal. Need-satisfaction and problem-solution are better for more technical or complex selling situations.

 

 

  1. _____ is effective for consumer goods salespeople in straight rebuy situations.
    A. Need-satisfaction
    B. Memorized
    C. Barrier
    D. Problem-solution
    E.Formula

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Formula selling is effective for calling on customers who currently buy and for prospects about whose operations the salesperson has learned a great deal. Straight rebuy situations, especially with consumer goods, lend themselves to the formula method.

 

  1. In the formula selling method, customer talking time peaks during:
    A. the approach stage.
    B. prospecting.
    C.the presentation stage.
    D. negotiation and close.
    E. preapproach.

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation:

 

  1. Which statement about the formula sales presentation is INCORRECT?
    A. The formula sales presentation is based on the AIDA procedure of developing and giving the sales presentation.
    B. Modified rebuy situations are a good time to use the formula sales presentation method.
    C.The formula sales presentation is the best method to use when the prospect allows a few minutes for the presentation.
    D. The customer has the largest amount of talking time during the latter half of the presentation phase of the formula sales presentation.
    E. To successfully use the formula sales presentation method, the salesperson must have previously identified the prospect’s needs and wants.

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized method is best when only a few minutes are available, but the formula method typically requires a half-hour. The method is based on the AIDA procedure and is best in rebuy situations with familiar customers.

 

  1. The formula sales presentation is most closely associated with:
    A.the AIDA procedure.
    B. the SELL sequence.
    C. need-development.
    D. problem-solution.
    E. the CCC GOMES steps.

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The formula selling approach obtains its name from the salesperson using the attention, interest, desire, and action (AIDA) procedure of developing and giving the sales presentation.

 

  1. In AIDA procedure, ‘D’ stands for:
    A. demand.
    B.desire.
    C. describe.
    D. develop.
    E. define.

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: AIDA refers to attention, interest, desire, and action. It is a method of developing and giving a sales presentation.

 

  1. Which of the following is the first step in AIDA procedure?
    A. Approach
    B.Attention
    C. Attraction
    D. Action
    E. Attire

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: AIDA refers to attention, interest, desire, and action. It is a method of developing and giving a sales presentation.

 

  1. A salesperson using the formula sales presentation method would most likely open with a:
    A.reminder of past purchases.
    B. canned introduction.
    C. open-ended question.
    D. request for analysis.
    E. brief story.

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Since the formula method is most often used in rebuy situations, a salesperson would probably remind the customer of previous purchases. A canned introduction is used with the memorized method, and questions are used to open the need-satisfaction approach.

 

  1. Which of the following statements describes an advantage associated with the formula sales presentation?
    A. It reduces anxiety and nervousness for new salespeople.
    B. It requires little prospect participation or interaction.
    C. It is best for selling technical products that require prospect input.
    D.It ensures that all sales information is presented logically.
    E. It is effective when the selling time is very brief.

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula sales presentation approach is flexible enough to allow prospect input and participation but structured enough so that information flows logically.

 

  1. Which of the following is the problem associated with using the formula sales approach without knowing customers’ needs?
    A. It will reduce the buyer-seller interaction and make the job difficult for the salesperson.
    B. The customer will raise objections only at the closing stage and complicate the sale.
    C. The salesperson cannot implement any trial closes with confidence.
    D. The customer may not respond to the salesperson’s questions.
    E.Customer objections may arise early in the presentation.

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The formula presentation method allows for smooth handling of anticipated questions and objections. However, if the salesperson does not know a customer’s needs and uses a planned presentation, the customer will probably raise objections early in the presentation.

 

  1. The _____ presentation is the most challenging and creative form of selling because it is designed to be interactive.
    A. formula
    B. stimulus-response
    C.need-satisfaction
    D. straight-rebuy
    E. problem-solution

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The need-satisfaction presentation is different from the memorized and the formalized approach; it is designed as a flexible, interactive sales presentation. It is the most challenging and creative form of selling.

 

  1. A salesperson opens his sales call with the question, “What type of functions are you looking for in your computer?” is most likely utilizing the _____ presentation method.
    A. transactional
    B.need-satisfaction
    C. stimulus-response
    D. participative
    E. formula selling

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The salesperson typically starts the presentation with a probing question. This opening starts a discussion of the prospect’s needs and also gives the salesperson an opportunity to determine whether any of the products being offered might be beneficial.

 

  1. Gulf Technology manufactures platforms for deep sea oil rigs. Costs for the platforms can exceed $1 million. Which sales approach would a Gulf Technology salesperson most likely use?
    A. Persuasive selling
    B.Need-satisfaction
    C. Response-stimulus
    D. AIDA selling
    E. Participative

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The need-satisfaction format is especially suited to the sale of industrial and technical goods with stringent specifications and high price tags.

 

  1. At the beginning of a presentation, a salesperson asks a catalog retailer, “What type of inventory management software would you like your company to use?” The salesperson is more than likely using the _____ sales presentation method.
    A. problem-solution
    B. stimulus-response
    C. participative
    D. persuasive selling
    E. need-satisfaction

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation:

 

  1. The need-satisfaction sales presentation has several phases. Which of the following presents those phases in the correct order?
    A. Need-perception, need-comprehension, and need-satisfaction
    B. Need-realization, need-utilization, and need-development
    C. Need-utilization, need-fulfillment, and need-satisfaction
    D.Need-development, need-awareness, and need-fulfillment
    E. Need-awareness, need-development, and need-satisfaction

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The need-satisfaction approach moves from need-development, to need-awareness, and then to need-fulfillment.

 

  1. During the _____ phase of the need-satisfaction sales presentation, the conversation is limited to a discussion of the buyer’s needs.
    A. need-feedback
    B. need-disclosure
    C.need-development
    D. need-fulfillment
    E. need-awareness

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first 50 to 60 percent of conversation time (referred to as the need-development phase) is devoted to a discussion of the buyer’s needs. Once aware of the prospect’s needs (the need-awareness phase), the salesperson begins to take control of the conversation by restating the prospect’s needs to clarify the situation.

 

  1. During the _____ phase of the need-satisfaction sales presentation, the salesperson begins to take control of the conversation by restating the prospect’s needs to clarify the situation.
    A. need-fulfillment
    B.need-awareness
    C. need-utilization
    D. need-feedback
    E. need-development

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Once aware of the prospect’s needs (the need-awareness phase), the salesperson begins to take control of the conversation by restating the prospect’s needs to clarify the situation. During the last stage of the presentation, the need-fulfillment (or need-satisfaction) phase, the salesperson shows how the product will satisfy mutual needs.

 

 

  1. Which of the following is a major difference between the need-satisfaction method and the formula sales method?
    A. The formula sales method opens with questions to the prospect unlike the need-satisfaction method.
    B. The need-satisfaction method is better for repeat buyers than the formula approach.
    C.The need-satisfaction method is more flexible than the formula selling technique.
    D. The formula sales approach is less structured than the need-satisfaction approach.
    E. The formula method is more interactive than the need-satisfaction method.

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The need-satisfaction method is a flexible and creative sales presentation method that involves opening with questions to the prospect. The formula approach is more structured than the need-satisfaction method.

 

  1. Windfall Computers instructs its salespeople to use a particular sales presentation method when selling to corporations. Initially, prospects are asked to discuss the different problems and requirements they have. After the prospects finish talking, the salesperson summarizes the requirements of the customer and presents solutions. The salesperson’s act of summarizing can be termed as:
    A. need-summary.
    B.need-awareness.
    C. need-development.
    D. need-diffusion.
    E. need-fulfillment.

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Hard

AACSB:

Level of Difficulty: Hard

Explanation: The need-development phase is devoted to a discussion of the buyer’s needs. Once aware of the prospect’s needs (the need-awareness phase), the salesperson begins to take control of the conversation by restating the prospect’s needs to clarify the situation.

 

  1. The salesperson is using a needs-satisfaction sales presentation. In the _____ phase, the salesperson will show how the product being sold will satisfy mutual needs.
    A.need-fulfillment
    B. need-awareness
    C. need-utilization
    D. need-development
    E. need-perception

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: During the last stage of the presentation, the need-fulfillment (or

need-satisfaction) phase, the salesperson shows how the product will satisfy mutual needs. The first part of the conversation is referred to as the need-development phase.

 

  1. In a need-satisfaction presentation, most of the time is spent in the _____ phase.
    A. need-fulfillment
    B. need-awareness
    C. need-utilization
    D.need-development
    E. need-diffusion

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Approximately 50 to 60 percent of conversation time is devoted to a discussion of the buyer’s needs. This discussion occurs in the need development phase.

  1. What is the most likely reason that some salespeople dislike the need-satisfaction sales presentation approach?
    A.The salesperson must give the prospect some control of the selling situation.
    B. The method is impractical for selling highly technical products.
    C. The salesperson must present unimportant benefits to the buyer.
  2. The approach requires the salesperson to close too quickly.
    E. The method allows very little prospect participation.

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: some salespeople are uncomfortable with the need-satisfaction approach because they feel less in control of the selling situation than with a canned or formula presentation. The first half of the presentation is turned over to the prospect to discuss needs, which can be uncomfortable to some salespeople.

 

  1. Which of sales presentation method is normally used while presenting the proposal to a group of individuals?
    A. Stimulus response
    B. Memorized
    C. Barrier
    D.Problem-solution
    E. Formula selling

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Often, the problem–solution presentation is used when it is necessary to present the proposal to a group of individuals. The problem–solution presentation is a flexible, customized approach involving an in-depth study of a prospect’s needs, and it requires a well-planned presentation.

 

  1. Elisha Levi believes that a flexible, customized approach to selling is best when dealing with highly complex products or services. She typically performs an in-depth study of a prospect’s needs before developing a well-planned presentation. Levi obviously favors the _____ presentation method.
    A. memorized
    B. stimulus response
    C.problem-solution
    D. need-satisfaction
    E. formula

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The problem–solution presentation is a flexible, customized approach involving an in-depth study of a prospect’s needs, and it requires a well-planned presentation. The method is best for complex products and negotiations.

 

  1. Typically the first step of the problem-solution sales presentation is to:
    A. prepare the presentation based on previously gathered customer knowledge.
    B.convince the prospect to allow the salesperson to analyze the problem.
  2. have the prospect and the salesperson agree on the nature of the problem.
    D. prepare a written problem-solution proposal for the prospect.
    E. analyze the prospect’s problem in order to find possible solution.

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first step of the problem-solution method is convincing the prospect to allow the salesperson to conduct an analysis. After making an analysis, both parties agree on the problem and determine that the buyer wants a solution.

 

  1. Identify the correct sequence of steps used in a problem-solution presentation.
    A.Permission to conduct analysis, analysis, problem identification, proposal, preparation, presentation.
    B. Permission to conduct analysis, analysis, proposal, negotiation, preparation, presentation.
    C. Permission to conduct analysis, preparation, analysis, proposal, and presentation.
    D. Preparation, permission to conduct analysis, analysis, problem identification, proposal, presentation.
    E. Preparation, permission to conduct analysis, analysis, proposal, presentation.

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The first step of the problem-solution method is convincing the prospect to allow the salesperson to conduct an analysis. After making an analysis, both parties agree on the problem and determine that the buyer wants a solution. A proposal is developed and then plans are made for a sales presentation.

 

  1. Which of the following products would most likely require a problem-solution sales presentation?
    A. Automobiles
    B. Cosmetics
    C.Corporate insurance
    D. Personal computers
    E. Home sound system

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: Complex products or services, like corporate-wide insurance, require the problem-solution method. The need-satisfaction method would be best for surround sound systems in the home.

 

  1. A salesperson using the problem-solution sales presentation method is most likely selling a(n) ________ product or service.
    A. trivial
  2. simple
    C.complex
    D. mechanical
    E. technical

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The problem-solution method is best for highly complex products and services that may or may not be technical or mechanical in nature.

 

  1. In selling highly complex products, such as industrial equipment and accounting systems, salespeople make several sales calls to develop a detailed analysis of a prospect’s needs. What kind of sales presentation method is most likely required?
  2. Formula
    B. Memorized
    C. Stimulus response
    D. Need-satisfaction
    E.Problem-solution

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: In selling highly complex or technical products such as insurance, industrial equipment, accounting systems, office equipment, and computers, salespeople often are required to make several sales calls to develop a detailed analysis of a prospect’s needs.

 

  1. The typical last step of the problem-solution sales presentation is to:
    A.make the sales presentation.
    B. propose follow-up activities.
    C. analyze prospect’s problems against those of its competitors’.
    D. prepare a written solution for the prospect’s problem(s).
    E. handle prospect’s objections to the solution.

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The final step for the problem-solution approach is making the actual sales presentation. Prior to the presentation, the salesperson analyzed the problem and developed a proposal.

 

  1. Which sales presentation method generally has the highest paid salespeople?
    A.Problem-solution
    B. Transactional selling
    C. Formula sales approach
    D. Canned sales approach
    E. Need satisfaction

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Salespeople who make calls requiring the problem-solution method generally earn the highest salary due to the complexity of such sales situations. The lowest earners are salespeople who use the memorized method.

 

  1. _____ presentation method is best suited for selling trivial products.
    A. Problem-solution
    B. Transactional selling
    C. Formula sales approach
    D. Canned sales approach
    E. Need satisfaction

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The memorized method is primary used for selling simple, trivial products, such as cosmetics and vacuum cleaners. The formula method would be best for selling cars and appliances.

 

  1. Which sales presentation method is best for selling group insurance policies to organizations?
    A. Need-satisfaction
    B. Transactional selling
    C. Formula sales approach
    D. Canned sales approach
    E.Problem-solution

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Selling complex products and services, such as group insurance to a corporation, requires the problem-solution sales presentation method.

 

  1. Why is it most important for a salesperson to invest time in preparing for a group sales presentation?
    A.Meet the different needs of each group member
    B. Prevent any questions from being raised
    C. Avoid having to reference the proposal
    D. Encourage more group involvement
    E. Present the data from memory

Answer: a

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Analyze

AACSB:

Level of Difficulty: Hard

Explanation: It is especially important prior to a group presentation that a salesperson considers all possible concerns and questions the various decision makers may have. Each person in a group has specific needs, and the salesperson must be prepared to address them all.

 

  1. The _____ sales presentation method is most appropriate when information needs to be gathered from the prospect, as is often the case in selling industrial products.
    A. stimulus-response
    B.need-satisfaction
    C. formula
    D. canned
    E. persuasive

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Need-satisfaction is the best method to use when the salesperson needs to collect information from a buyer regarding wants and needs. The method is often used when selling industrial products that require certain features and specifications.

 

  1. Identify the most appropriate sales presentation method that can be used when time is short and the product is simple.
    A. Stimulus response
    B.Memorized
    C. Barrier
    D. Problem-solution
    E. Formula selling

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The memorized or canned method is best for telemarketers and door-to-door salespeople who are selling simple products. Such salespeople have only a brief amount of time to catch the attention of a buyer and make a sale.

 

  1. Which type of sales presentation method is best when a salesperson has sold products to a prospect in the past?
    A. Stimulus response
    B. Memorized
    C. Barrier
    D. Problem-solution
    E.Formula selling

Answer: e

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The formula method is a semi-structured approach that is primarily used with repeat customers. The method requires opening the sales presentation with a reminder of the past purchases.

 

  1. Robert, a sales representative for JBR International, is giving a group sales presentation. Which of the following would be LEAST effective for Robert to do at the beginning of the presentation?
    A. Briefly explain the premise of the proposal
    B. Distribute account lists to group members
    C. Summarize the warranty policies of JBR
    D. State the competitive advantages of JBR
    E.Give a lengthy history of JBR and its mission

Answer: e

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Robert should give a brief history of JBR and its mission and philosophy, but he should not spend too much time on the subject. Instead, Robert should briefly explain the proposal, pass out account lists, and discuss JBR’s policies and competitive advantages.

 

  1. In the beginning of a group sales presentation, a salesperson should:
    A. explain how the FAB formula will be used in the presentation.
    B. provide every member of the group with a customer profile.
    C.give quality assurances and qualifications.
    D. ignore the group’s behavioral style.
    E. summarize the marketing plan.

Answer: c

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Remember   Understand

AACSB:

Level of Difficulty: Easy   Medium

Explanation: Providing the group with the seller’s qualifications is important because it establishes credibility and shows company pride. The salesperson does not need to discuss the FAB formal or provide customer profiles.

 

  1. Robert, a sales representative for JBR International, is giving a group sales presentation. Robert has gone through the opening steps of establishing the credibility of JBR. What should Robert most likely do next?
    A. Provide an overview of the firm’s growth
    B. Use visual aids to discuss proposal specifics
    C. Discuss the price for implementing the proposal
    D. Gather input about the criteria for making a purchase
    E. Summarize the short-term and long-term benefits of the product

Answer: d

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: After establishing the credibility of your company by discussing its history and qualifications, involve the group in the presentation. The first thing to do is go around the room asking for everyone’s input into the decision-making criteria for making the purchase.

 

  1. Avril is selling a uniform service to a company that cleans many of the office buildings in Baltimore. She is doing a sales presentation to all of the members of the company’s buying center. She has just finished giving a brief history of her company and discussing her firm’s philosophy to the 25 people in the room. She has also mentioned a few large companies her firm has worked with in the past. Avril has done this to:
    A. outline benefits.
    B.establish credibility.
    C. create a selling environment.
    D. get the attention of her audience.
    E. create interest in her company.

Answer: b

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Providing the history, philosophy, and experience of the company increases the credibility of Avril and her employer. The group needs to be reassured that the seller is experienced.

 

  1. Assuming that you are a salesperson making a group sales presentation, which of these statements is true?
    A. The larger the group, the less structured your presentation must be.
    B. Avoid talking to any members of the group prior to the presentation.
    C.Establish your credibility in the early stage of the presentation.
    D. Prepare a written proposal document that includes prices.
    E. Omit trial closes from your presentation.

Answer: c

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: It is important for a salesperson to establish credibility before moving into the heart of the presentation. The group needs to feel that the seller is competent and experienced.

 

  1. Which of the following statements about group sales presentations is most likely true?
    A. Use the proposal document as a script during the presentation.
  2. Provide a detailed SWOT analysis for each potential competitor.
    C. During the presentation avoid mentioning previous or current clients.
    D. Determine the behavioral style of the group to maintain the attention of all members.
  3. Avoid contact with decision makers prior to a presentation to prevent the appearance of being unethical.

Answer: d

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Every group comprises individuals with personal styles. However, a group also exhibits an overall or dominant style. If you can quickly determine the group style, you will hold their attention and give them what they want more effectively.

  1. All of the following should be included in a proposal document EXCEPT:
    A. testimonials.
    B. data and statistics.
    C.product prices.
    D. criteria for success.
    E. solutions to specific problems.

Answer: c

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The proposal document should include customer testimonials, data, success criteria, and solutions to problems. It is best not to include prices to avoid price being the focus.

 

  1. Why is it best to exclude price from a proposal document created for a group presentation?
    A. Fees and charges will create group confusion.
    B. Prices charged by competitors are hard to obtain.
    C. Fluctuations in the economy prevent pricing accuracy.
    D. Shipping and handling fees are difficult to estimate.
    E. Price rather than the document will become the focus.

Answer: e

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The best way to present a proposal document is without prices. Some people will go directly to the prices without reading through the document.

 

  1. The business proposal document prepared by the salesperson after a group sales presentation should be:
    A. less than ten pages.
  2. be written on company stationery.
    C. used as a substitute for a presentation.
    D.be viewed as a customer reference source
    E. an identical script of the sales presentation.

Answer: d

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The proposal document is a reference source that tells your customer what she bought if she said yes and what she didn’t buy if the answer was no. Proposals range in length from one page to an entire notebook.

 

  1. At the end of a group sales presentation, the salesperson should provide prospects with a(n):
    A. T-account.
    B.summary of benefits.
    C. order form.
    D. service contract.
    E. hierarchy of needs.

Answer: b

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: At the end of a sales presentation, summarize your proposal by giving a benefits summary. Talk about how the benefits will address their specific problems.

 

  1. Most inexperienced salespeople generally operate in a _____ mode during negotiation.
    A. cooperative
    B.competitive
    C. attitudinal
    D. organizational
    E. personal

Answer: b

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: There are cooperative, competitive, attitudinal, organizational, and personal modes of negotiating. Most inexperienced negotiators operate in the competitive mode because they mistakenly think the shrewd businessperson is one who wins at the other’s expense.

  1. What is the key to being a strong negotiator?
    A. Service
    B.Preparation
    C. Extroversion
    D. Good product features
    E. Oral communication skills

Answer: b

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The number one asset of a strong negotiator is preparation. During the planning phase, after completing a competition analysis, you know how your company compares with the competition for price, service, quality, reputation, and so on. This knowledge is important at negotiation time.

 

  1. What are the four phases of negotiation?
    A.Planning, meeting, studying, and proposing
    B. Attention, interest, desire, and action
    C. Interest, desire, conviction, and buying
    D. Planning, proposing, reciprocating, and closing
    E. Planning, studying, sampling, and closing

Answer: a

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: Negotiation consists of four phases: planning, meeting with the prospect, studying the prospect’s business, and making a proposal.

 

  1. All of the following would be potential bargaining chips for a salesperson during negotiations EXCEPT:
    A. price flexibility.
    B. training availability.
    C. extra services to offer.
    D. optional equipment to provide.
    E. products available from competitors.

Answer: e

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: During your preparation, review the various bargaining chips available to you, such as flexibility in price and items, training options, and extra services or equipment. The negotiation is about your product rather than the competitor’s.

 

  1. A salesperson’s chosen presentation method and approach technique should be based on which of the following?
  2. Delivery schedule
    B. Product and prospect
    C. Customer preference
    D. Interest and demand
    E.Group behavior

Answer: b

Learning Objective: 08-01

Topic: The Sales Presentation and Techniques

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Create a presentation that adapts to the buyer’s personality style. Choose your presentation method and then select your approach technique. This is based on your product and knowledge of the person and of the organization.

 

  1. The key to selling and negotiating is seeking to:
    A. identify gatekeepers.
    B.create a win-win situation.
    C. provide all product information.
    D. generate profitable, one-time sales.
    E. understand significant group behaviors.

Answer: b

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The key to selling and negotiating is to always seek a win–win solution in which both buyer and seller are happy.The successful resolution of a negotiation starts with a commitment to do business together. It is then necessary for both parties to maintain common interests and resolve any conflicts cooperatively.

 

  1. During the approach, it is best if a salesperson does all of the following EXCEPT:
    A. takes notes.
    B. makes eye contact.
    C. sits in the public space.
    D.provides a business card.
    E. uses the prospect’s name.

Answer: c

Learning Objective: 08-05

Topic: The Sales Presentation and Techniques

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: If possible, the salesperson should sit in the buyer’s personal space to observe nonverbal communication signals. Public space would be too far away.

 

  1. The parallel dimensions of selling enable salespeople to:
    A. negotiate with new customers.
    B. compare sales presentation methods.
    C.adhere to the Golden Rule of Selling.
    D. create sales where there is no customer need.
    E. understand the interactions between each component.

Answer: e

Learning Objective: 08-05

Topic: The Parallel Dimensions of Selling

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Top-performing salespeople use the parallel dimensions of selling to plan, create, and execute their presentations. The three dimensions of selling—discussion sequence, selling process, buyer’s mental steps—interact, often at the same time, to form a specific sales presentation.

 

  1. Which of the following correctly represent the discussion sequence in a sales presentation?
    A. Product discussion, presentation of marketing plan, explanation of business proposal, purchase suggestion, trial close, close, follow up.
    B. Approach, product discussion, marketing plan presentation, meeting objections, purchase suggestion.
    C. Approach, product discussion, marketing plan presentation, explain business proposal, meeting objections, purchase suggestion.
    D.Product discussion, presentation of marketing plan, explanation of business proposal, close.
    E. Attention, interest, desire, conviction, action.

Answer: d

Learning Objective: 08-05

Topic: The Parallel Dimensions of Selling

Blooms: Remember

AACSB:

Level of Difficulty: Easy

Explanation: The discussion sequence consists of discussing the product, presenting the marketing plan, explaining the business proposition, and closing.

 

  1. If a prospect chooses not to purchase a salesperson’s product, the salesperson should:
    A. leave quickly.
    B. ask the reasons why.
    C. attempt to negotiate.
    D. revise the marketing plan.
  2. send a follow-up questionnaire.

Answer: b

Learning Objective: 08-05

Topic: The Sales Presentation and Techniques

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Should the person not buy, do not take it personally. Try to discover why before leaving. This helps you prepare for your return visit. However, chances are the reason for not buying will come out in your presentation.

Essay Questions

  1. The use of the memorized sales presentation is based on two different assumptions. List them.

Answer: (1) A prospect’s needs can be stimulated by direct exposure to the product, via the sales presentation. (2) The prospect’s needs have already been stimulated because the prospect has made the effort to seek out the product.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What are three advantages of using the canned sales presentation method?

Answer: (1) It ensures that the salesperson gives a well-planned presentation and that all of the company’s salespeople discuss the same information. (2) It both aids and lends confidence to the inexperienced salesperson. (3) It is effective when selling time is short, as in door-to-door or telephone selling. (4) It is effective when the product is non-technical such as books, cooking utensils, and cosmetics.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What are three disadvantages associated with the use of the memorized sales presentation method?

Answer: (1) It presents features, advantages and benefits that may not be important to the buyer. (2) It allows for little prospect participation. (3) It is impractical to use when selling technical products that require prospect input and discussion. (4) It may be perceived by the buyer as high-pressure selling because it requires the salesperson to ask for the order several times.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. Explain the formula sales presentation method. When is it effective to use the formula sales method?

Answer: Formula sales presentation is based on the assumption that similar prospects in similar situations can be approached with similar presentations. The salesperson follows a semi-structured, general outline in making a presentation. For the formula method to apply, the salesperson must first know something about the prospective buyer. The formula sales approach is based on the AIDA procedure of developing and giving the sales presentation.
It is most effective with repeat purchases or when the salesperson knows or has already determined the needs of the prospect.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

 

  1. What are three advantages associated with using the formula sales presentation method?

Answer: (1) It ensures all information will be presented logically. (2) It allows for a reasonable amount of time for buyer-seller interaction. (3) It allows for smooth handling of all anticipated questions and objections.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What steps are involved in the problem-solution approach to selling?

Answer:  The problem-solution approach usually consists of six steps. (1) Convince the prospect to allow the salesperson to conduct the analysis. (2) Make the actual analysis. (3) Agree on the problem and determine the buyer wants to solve it. (4) Prepare the proposal for a solution to the prospect’s problem. (5) Prepare the sales presentation. (6) Make the sales presentation. Problem solution method is a flexible and customized approach. The steps listed above can be changed according to the situation and the type of customer.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. In what kind of selling situation is the need-satisfaction sales presentation approach the most effective?

Answer: Need-satisfaction selling is most effective when information needs to be gathered from the prospect. Information gathering is required for industrial and technical products. It can be used when the buyer’s interest level is not established.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

 

  1. Comment on the following statement: “No matter what the situation, the need-satisfaction presentation is always the most effective.”

Answer: This statement is incorrect. The situation determines which sales presentation is the best method to use. The need-satisfaction method is most appropriate when you must gather information from the prospect. Memorized presentation method can be used when time is short and the product is simple. Formula selling is effective in repeat purchases or when you know or have already determined the needs of the prospect. Finally, the problem–solution presentation is excellent for selling high-cost technical products or services, and especially for system selling involving several sales calls and a business proposition.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Analyze

AACSB:

Level of Difficulty: Hard

 

  1. Gracie Salazar sells women’s sportswear. She is experienced in making sales presentations to groups of two to four buyers. Gracie’s sales manager has told her to prepare her presentation for a group of thirty department store buyers. Does Gracie need to make any changes in her presentation to a larger group? Explain your answer.

Answer: Yes, she needs to change her presentation. The structure used for a larger group presentation must be less flexible than the one used for the smaller groups. It would result in chaos if everyone were allowed to give feedback whenever he or she wanted to ask questions simultaneously. She needs to plan a question and answer period as a part of her presentation.

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Apply

AACSB:

Level of Difficulty: Hard

 

  1. Pierre LaSaunt needs to make a proposal to a group of engineers. Why has his sales manager instructed him to omit prices from the proposal document?

Answer: Some people will go directly to the prices without reading the proposal. Furthermore, prices tend to prejudice non-decision makers—who should not be concerned with prices. The third reason is politics. Say the engineers have not received a raise lately and they learn the company is going to spend $3 million on this purchase. In this instance, prices could cause animosity.

Learning Objective: 08-03

Topic: The Golden Rule: Presentation

Blooms: Analyze

AACSB:

Level of Difficulty: Hard

 

  1. How successful will a salesperson be if he or she views every buyer as an adversary?

Answer: Salespeople with an adversarial approach will not be successful over the long-run because they have not built relationships with their customers. Buyers will experience tension, buyer’s remorse and mistrust as a result of the salesperson’s actions.

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. Discuss what a salesperson should review and analyze during the planning phase of negotiation.

Answer: Before you make a proposal to a client, search your company’s sales records to find any reports of previous sales to your prospect or similar businesses. If these records documented the successes and failures of negotiating, you will learn from other salespeople’s experience. You should also examine what is valuable to businesses in the prospect’s industry, such as service, price, training, discounts, or implementation. During your preparation, review the various bargaining chips available to you. These might include extra services, price flexibility, negotiable fees, optional equipment, and free training.

Some of the questions to answer include these:

Learning Objective: 08-04

Topic: Negotiating So Everyone Wins

Blooms: Apply

AACSB:

Level of Difficulty: Hard

 

Short Answer Questions

  1. What is the basic difference between the four sales presentation methods?

Answer: The percentage of the conversation controlled by the salesperson.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. What is another name for the formula sales presentation method?

Answer: The persuasive selling presentation.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

  1. Name the most challenging and creative type of sales presentation.

Answer: The need-satisfaction presentation.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

  1. List the three stages of the need-satisfaction sales presentation.

Answer: (1) Need-development, (2) need-awareness and (3) need-fulfillment.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Remember

AACSB:

Level of Difficulty: Easy

  1. What is the first step in a typical problem-solution sales presentation?

Answer: To convince the prospect to allow the salesperson to conduct an analysis.

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

 

  1. List the three parallel dimensions of selling.

Answer: The discussion sequence, the selling process and the buyer’s mental steps.

Learning Objective: 08-05

Topic: The Parallel Dimensions of Selling

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Multiple Choice Questions
Stage Technologies is a London-based company that supplies engineering solutions for the entertainment industry. It has helped the boy-band Westlife make a flying entrance onto stage and provided stage-rigging packages for Princess Cruise’s vessels. The company was established in 1994 after a couple of production designers decided that the automation of theater productions could be done more safely and more efficiently by using modular production rather than the old “build-as-needed” formula. The company installs winches, stage lifts, and other equipment commonly used in stage productions. The equipment is designed so it can be operated from a single console without awkward or heavy lifting. Both opera companies and theaters see the benefit of such a system, but many are reluctant to buy because of perceived costs. John Hastie and Mark Ager, the company’s best salespeople, must design sales presentations that address these concerns.

 

  1. Hastie and Ager would most likely use the formula presentation approach when:
    A. working with a prospect who has limited time.
    B. selling to a veteran stage production manager.
    C. making a proposal to a committee.
    D.dealing with a rebuy situation.
    E. negotiating with a manager.

Answer: d

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: Straight rebuy situations lend themselves to the formula sales method. Many prospects or customers buy because they are familiar with the salesperson’s company.

 

  1. What types of sales presentations would Hastie and Ager most likely use for new customers?
    A.Need-satisfaction and problem-solution
    B. Memorized and need-fulfillment
    C. Need-fulfillment and need-development
    D. Formula and problem-solution
    E. Persuasive selling and need-satisfaction

Answer: a

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Since the systems that the firm sells are technical and complex in nature, the need-satisfaction and problem-solution sales methods would be best, especially for new customers. The salespeople could use the formula approach for repeat customers.

 

  1. Hastie walks into a prospect’s office and asks, “How would you like to increase rehearsal time and ensure long-term cost savings?” From this opening line, you can assume that Hastie is most likely using a _____ presentation.
    A. persuasive selling
    B. logical reasoning
    C.need-satisfaction
    D. formula
    E. price/value

Answer: c

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: The need-satisfaction sales presentation method typically begins with questions to the prospect. The opening starts a discussion of the prospect’s needs.

 

  1. Ager is making a presentation to an opera company. The company’s producer is planning a show that involves the lead tenor hovering over the audience, a stunt that requires a customized winch and lift system. So far, Ager has made four trips to the set in order to take measurements and evaluate the facilities. Ager is most likely using the _____ presentation method to convince the opera company that Stage Technologies should design and build the needed equipment.
    A. logical reasoning
    B.problem-solution
    C. formula
    D. persuasive selling
    E. need-satisfaction

Answer: b

Learning Objective: 08-02

Topic: Sales Presentation Methods—Select One Carefully

Blooms: Apply

AACSB:

Level of Difficulty: Hard

Explanation: The problem–solution presentation is used for selling highly complex or technical products, such as a custom winch system. The fact that Ager has made multiple trips to the set for measurements suggests that the situation calls for the problem-solution approach. The need-satisfaction approach would be appropriate if the winch system did not have to be customized.

 

 

  1. Ager and Hastie are presenting a proposal to a theater group. People in attendance include various accountants, actors, and producers. The sales presentation should include all of the following EXCEPT a(n):
    A. statement regarding the firm’s guarantees.
    B. list of theaters the company has equipped.
    C. history of the company and its mission.
    D. list of the firm’s safety credentials.
    E. price list for basic systems.

Answer: e

Learning Objective: 08-03

Topic: The Group Presentation

Blooms: Understand

AACSB:

Level of Difficulty: Medium

Explanation: Price should not be included in a group proposal because some members of the group may ignore the presentation and focus only on cost. In most cases, some members of the group may not have authority in purchasing decisions.

 

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