Homework answers / question archive / Florida Institute of Technology - FM 431 Chapter 1 1)Which of the following statements is NOT true about the role of salespeople within a company? a

Florida Institute of Technology - FM 431 Chapter 1 1)Which of the following statements is NOT true about the role of salespeople within a company? a

Finance

Share With

---

Florida Institute of Technology - FM 431

Chapter 1

1)Which of the following statements is NOT true about the role of salespeople within a company?

a.            Sales positions have greater starting salaries on average than other positions such as Marketing.

b.            Sales managers earn more than managers in other areas.

c.             Sales positions will become harder to obtain because the market for sales is becoming saturated.

d.            Sales consumes an average of one-fifth of a company's revenue.

e.            Sales positions are the hardest jobs to fill.

2.            Which of the following characteristics is useful for both salespeople and sales managers?

a.            the ability to understand the sales process

b.            the ability to empathize personally with buyers

c.             the ability to delegate

d.            the ability to work independently

e.            the ability to organize activities and people

3.            All of the following are skills a sales manager must be able to perform EXCEPT:

a.            advocating on behalf of the sales department to other departments

b.            formulating strategies for others to implement

c.             helping employees improve their performances

d.            figuring out how to motivate different people

e.            leading the department in selling a personal quota

4.            A company's mission statement serves all of the following purposes EXCEPT:

 

a.            to give purpose to employees' actions

b.            to carry out the company's strategy

c.             to inspire the employees and shareholders

d.            to guide employees as they make decisions

e.            to serve as a standard against which decisions can be measured

5.            Which of the following is NOT a question that needs to be answered as part of developing a marketing strategy?

a.            What level of investment will be required, and how will we locate and allocate the needed resources?

b.            What markets do we serve with what products?

c.             What types of relationships do we form and with whom?

d.            What are the detailed objectives and action plans?

e.            What aspects of our mission statement will we communicate to the public and how?

6.            Finding a sustainable competitive advantage is difficult because:

a.            market penetration makes sustaining an advantage difficult

b.            a company needs a sustainable competitive advantage to succeed in the market

c.             it is easier for a company to focus on sales than on service

d.            many advantages (product and low price) can be mimicked by other companies

e.            it is a key component of a strategic plan for any business

7.            A company can grow through all of the following approaches EXCEPT:

a.            creating new products

b.            combining new products and new markets

c.             increasing market share with existing products

 

d.            finding new markets

e.            developing competing strategies

8.            What are the key differences between market penetration and product development?

a.            Market penetration focuses on new products to existing markets, while product development focuses on new products to new markets.

b.            Market penetration focuses on new products to new markets, while product development focuses on new products to existing markets.

c.             Market penetration focuses on current products to new markets, while product development focuses on new products to existing markets.

d.            Market penetration focuses on current products to existing markets, while product development focuses on new products to existing markets.

e.            Market penetration focuses on market development, while product development focuses on diversification.

9.            As a strategy to achieve growth, diversification is:

a.            the least risky, because if a new product fails, the new market may succeed, and vice versa

b.            the most risky, because it ties up human capital that could be used elsewhere

c.             the least risky, because if the management team researches the product and new market extensively, there is low likelihood of failure

d.            the most risky, because it requires developing both new products and new markets

e.            the most risky, because it is subject to more regulation

10.          Which of the following is a way a company can expand into markets in a foreign country without opening another facility in that country?

 

a.            outsourcing customer service representatives to that country

b.            hiring a consultant to help import parts from that country

c.             changing the labeling on its packaging to include instructions in foreign languages

d.            forming a partnership with a dealer in that country to distribute and service products

e.            moving its manufacturing plant to that country

11.          Which of the following sales decisions is an example of service dominant logic?

a.            outsourcing the sales function to cut costs and maximize the sales department budget

b.            pricing to undercut competitors in the market

c.             billing on a net 90 schedule

d.            offering a service contract for an extra fee to create another profit stream

e.            providing a lifetime no-questions-asked replacement warranty on all its products

12.          The sales management team at Goldman Landscapes is going through a six-month process of researching their customers and putting them into groups by preferences. This process is likely to result in:

a.            a lack of focus on the sales process and decreased sales for that six- month period

b.            the ability for Goldman to offer services more specifically tailored to what their customers need

c.             the chance to expand into markets that do not need landscaping services

d.            insider knowledge of their competitors' strategies

 

e.            interference by the marketing department in a process that belongs to the sales department

13.          The different dimensions of customer relationship management include all of the following EXCEPT:

a.            strategies to choose different types of salespeople to sell different products

b.            strategies to keep the customers the company already has

c.             strategies to sell more to existing customers

d.            strategies to categorize customers into groups to understand them better

e.            strategies to acquire new customers

14.          Which of the following is an example of using social capital to help grow a company?

a.            The CEO of a company asks a friend in the automotive industry to cut a company-wide discount on corporately-leased vehicles that saves the company $500,000 a year.

b.            The CTO of a company leads a software engineering team in developing an internal system that will cut corporate expenses by 12% in the first year alone.

c.             The Sales Director of a company institutes a policy requiring all new salespeople to train with a senior salesperson for six months before going out into the field alone.

d.            The CFO of a company increases the budget of the research and development department so they can create a product that will triple profits in 18 months.

e.            The HR manager of a company hires new employees to staff a project that will increase revenue by 25%.

15.          A company is in danger of losing money if they cannot complete an important project because they do not have the workers necessary to

 

implement the project's objectives. This is an example of the results of a lack of

a.            social capital

b.            financial capital

c.             strategic visioning

d.            strategic development

e.            human capital

16.          A company's mission statement may or may not mention the product(s) the company makes. This is because:

a.            the mission statement is written by managers who are not familiar with all the products

b.            the mission statement is an internal document only and does not need to list products

c.             mission statements are generic across all industries

d.            mission statements are deliberately vague so they inspire all customers equally

e.            the mission statement is not the list of objectives or the action plan that discusses specific products

17.          Which of the following is an example of a SMART goal?

a.            to go from 1 % market share to 90% market share in one month

b.            to be the best by 2015

c.             to improve customer satisfaction and loyalty

d.            to continue the sales process until we lead the industry

e.            to go from selling 500 units per month to 1000 units per month in 10 months

18.          The CEO of Englewood Educational Consulting announced that all departments must come up with SMART objectives, and that each

 

employee should determine SMART goals for his or her own position. SMART objectives have which advantage over less specific goals?

a.            Employees have a more direct plan of action when the goals are specific and detailed, as SMART goals are.

b.            SMART goals are inherently more challenging than other goals are.

c.             Departments using SMART goals will always achieve them.

d.            SMART goals are more easily automated than other goals are.

e.            Employees have an easier time implementing goals others set for them than goals they set for themselves.

19.          Which of the following is NOT an issue in transactional sales?

a.            The buyer does not need much assistance in making the decision to buy.

b.            The product is customizable for each buyer depending on the buyer's needs.

c.             The buyer and the salesperson do not form a long-term relationship.

d.            The goal is to get the sale completed as soon as possible.

e.            The salesperson succeeds by making as many calls as possible. 20.All of the following are problems that can result from having no formal

sales process EXCEPT:

a.            Sales managers have a hard time managing salespeople if there is no standard process to follow.

b.            The salespeople cannot be compared so relative performance cannot be assessed.

c.             The salespeople receive no training before they start working.

d.            Sales managers cannot take the time to formalize a sales approach.

e.            Sales managers cannot help salespeople improve because they can't diagnose specific problems.

 

21.          In an affiliative selling situation, the salesperson spends more time developing:

a.            the buyer's trust and friendship

b.            the buyer's desire to won the product

c.             the buyer's ability to afford the product

d.            the buyer's authority to purchase the product

e.            the buyer's knowledge of the product

22.          Consultative selling is most appropriate in a situation in which:

a.            the salesperson has the ability to discount the price of the product without a manager's approval

b.            the buyer has less money to purchase than the list price of the product

c.             the buyer is prepared to place a bulk order

d.            the salesperson has enough experience in the industry to understand the buyer's situation

e.            the buyer needs a simple product to fit a straightforward need 23.Enterprise selling requires a partnership between:

a.            a selling organization and a buyer

b.            a salesperson and an oversight group

c.             a fulfillment department and a buying organization

d.            a selling organization and a buying organization

e.            a salesperson and a buyer

24.          The sales process, a standard eight-step plan of action, creates a:

a.            series of events in which the buyer commits to the salesperson several times

b.            chain of opportunities for the salesperson to ask for money

 

c.             method that requires salespeople to do more research than necessary

d.            series of presentations on the features of the product

e.            method that ensures that the buyer will purchase a product

25.          A salesperson should not conduct a presentation of the product until he or she has determined that:

a.            the buyer understands the features and benefits of the product

b.            the buyer has the money and affiliation to understand the presentation

c.             the buyer has decided to purchase the product

d.            the buyer has the money, authority, and desire to buy the product

e.            the buyer has been approached previously by another salesperson 26.When a salesperson is formulating an opening statement to use to

approach a buyer, what should the salesperson focus on?

a.            solving a problem the buyer has

b.            explaining the features of the product

c.             identifying the company the salesperson works for

d.            asking for the buyer's name

e.            closing the sale

27.          All of the following are types of questions in the SPIN technique EXCEPT: a. questions that ask about a buyer's situation

b.            questions that suggest something the buyer needs and a payof f for the buyer

c.             questions that ask the buyer to take the next step

d.            questions that prompt a buyer to identify a problem

 

e.            questions that ask a buyer to consider the implications of the problem

28.          All of the following are functions of gaining pre-commitment from a buyer during the needs identification stage of the selling process EXCEPT:

a.            agreeing on a budget for the transaction

b.            identifying that the buyer has the money, authority, and desire to buy

c.             affirming the decision-making process

d.            recognizing the situation that the buyer has

e.            confirming that the salesperson has identified what the buyer needs 29.Buyers are more likely to buy a product if the salesperson can show why it:

a.            is flexible for many working environments

b.            is cheaper than the products sold by other companies

c.             is compliant with all industry standards

d.            is the best solution to a buyer's existing problem

e.            is the most advanced product on the market 30.Which of the following is NOT a feature of a good close?

a.            asking for a referral

b.            confirming the implementation schedule

c.             thanking the buyer

d.            overcoming the buyer's objections

e.            reinforcing the decision

31.          The logical next step after a salesperson alleviates a buyer's objections is:

a.            closing the sale

b.            qualifying the lead

 

c.             making a presentation

d.            implementing the product

e.            identifying the buyer's needs

32.          Implementation and follow-up after the sale is made is a key step in the sales process for all of the following reasons EXCEPT:

a.            to provide training in proper use of the product

b.            to set the salesperson apart from competitors

c.             to charge a fee for follow-up to increase revenue

d.            to make sure that the customer's experience with the product is positive

e.            to gain repeat business from current customers 33.Depending on the sales approach used:

a.            the buyer may be able to name the price of the product

b.            the salesperson may or may not need to follow all eight steps in sequential order

c.             the salesperson may not want to qualify the lead

d.            the buyer mayor may not take physical possession the product

e.            the salesperson may need to call in another salesperson to convince the buyer

34.          As a sales manager moves closer to the top of the organization chart, the manager's day-to-day tasks:

a.            involve filling out more paperwork each day

b.            have less to do with the sales process

c.             cannot be performed by just one person

d.            require more travel and entertainment

e.            involve selling to bigger and bigger accounts

 

35.          Quotas are an important part of a sales plan because:

a.            they report how much a salesperson sells each month

b.            they create a high-pressure environment that encourages innovation

c.             they determine the minimum amount that a salesperson should be selling

d.            they reflect changes in the market

e.            they allow salespeople to choose their own compensation levels 36.Which of the following is a determination made by a sales executive during

the process of organizing?

a.            Whether to outsource the shipping department

b.            What the quotas should be for the sales department

c.             How to market a particular product

d.            Which type of sales force to use for each product

e.            How to implement a sales plan

37.          All of the following are challenges sales executives face as they implement a sales plan EXCEPT:

a.            creating a culture that supports ethical behavior

b.            supporting employees to hit sales targets

c.             determining which type of salespeople will be used for each product

d.            delegating the plan to employees in a way that the employees understand

e.            choosing a compensation plan for salespeople

38.          Monitoring is an important duty for sales executives because it allows them to determine if:

a.            corporate management is giving support to the sales department

b.            salespeople are paying attention during weekly sales meetings

 

c.             the correct sales methods have been chosen and are being followed

d.            sales managers are focusing on performance more than on people

e.            buyers are being billed on the correct day of the month 39.The number one responsibility of a field sales manager is:

a.            to hire and fire salespeople

b.            to achieve a departmental sales quota

c.             to sell more product to current customers

d.            to develop sales strategy

e.            to be the public face of the company

40.          Technology can be used by sales managers and sales executives to:

a.            align the sales department with the company's mission statement

b.            motivate individual salespeople to make more sales calls

c.             perform need identification as part of the sales process

d.            obtain buy-in from the marketing department for sales strategies

e.            keep track of how salespeople are performing