University of Economics Ho Chi Minh City - MARKETING MISC

1)MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1. Which of the following statements is NOT true about the role of salespeople within a company?             
   1. Sales positions have greater starting salaries on average than other positions such as marketing.
   2. Sales positions will become harder to obtain because the market for sales is becoming saturated.
   3. Sales consumes an average of one-fifth of a company's revenue.
   4. Sales managers earn more than managers in other areas.
   5. Sales positions are the hardest jobs to fill.
2. Which of the following characteristics is useful for both salespeople and sales managers?                      
   1. the ability to understand the sales process
   2. the ability to work independently
   3. the ability to organize activities and people
   4. the ability to delegate
   5. the ability to empathize personally with buyers
3. All of the following are skills a sales manager must be able to perform EXCEPT:                     
   1. helping employees improve their performances
   2. figuring out how to motivate different people
   3. leading the department in selling a personal quota
   4. advocating on behalf of the sales department to other departments
   5. formulating strategies for others to implement
4. A company's mission statement serves all of the following purposes EXCEPT:                                        
   1. to carry out the company's strategy
   2. to guide employees as they make decisions
   3. to inspire the employees and shareholders
   4. to serve as a standard against which decisions can be measured
   5. to give purpose to employees' actions

5. Which of the following is NOT a question that needs to be answered as part of developing a marketing strategy?
   1. What markets do we serve with what products?
   2. What aspects of our mission statement will we communicate to the public and how?
   3. What types of relationships do we form and with whom?
   4. What are the detailed objectives and action plans?
   5. What level of investment will be required, and how will we locate and allocate the needed resources?

6. Finding a sustainable competitive advantage is difficult because:                                            
   1. many advantages (product and low price) can be mimicked by other companies
   2. it is easier for a company to focus on sales than on service
   3. it is a key component of a strategic plan for any business
   4. a company needs a sustainable competitive advantage to succeed in the market
   5. market penetration makes sustaining an advantage difficult
7. A company can grow through all of the following approaches EXCEPT:                                  
   1. finding new markets
   2. increasing market share with existing products
   3. developing competing strategies
   4. combining new products and new markets
   5. creating new products
8. What are the key differences between market penetration and product development?          
   1. Market penetration focuses on current products to new markets, while product development focuses on new products to existing markets.
   2. Market penetration focuses on current products to existing markets, while product development focuses on new products to existing markets.
   3. Market penetration focuses on new products to existing markets, while product development focuses on new products to new markets.
   4. Market penetration focuses on new products to new markets, while product development focuses on new products to existing markets.
   5. Market penetration focuses on market development, while product development focuses on diversification.

9. As a strategy to achieve growth, diversification is:                                                                             
   1. the least risky, because if the management team researches the product and new market extensively, there is low likelihood of failure
   2. the most risky, because it requires developing both new products and new markets
   3. the most risky, because it is subject to more regulation
   4. the least risky, because if a new product fails, the new market may succeed, and vice versa
   5. the most risky, because it ties up human capital that could be used elsewhere

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?
    1. hiring a consultant to help import parts from that country
    2. moving its manufacturing plant to that country
    3. changing the labeling on its packaging to include instructions in foreign languages
    4. forming a partnership with a dealer in that country to distribute and service products
    5. outsourcing customer service representatives to that country

11. Which of the following sales decisions is an example of service dominant logic?                                    
    1. pricing to undercut competitors in the market
    2. outsourcing the sales function to cut costs and maximize the sales department budget
    3. billing on a net 90 schedule
    4. providing a lifetime no-questions-asked replacement warranty on all its products
    5. offering a service contract for an extra fee to create another profit stream

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:
    1. a lack of focus on the sales process and decreased sales for that six-month period
    2. the ability for Goldman to offer services more specifically tailored to what their customers

need

12. 3. the chance to expand into markets that do not need landscaping services
    4. insider knowledge of their competitors' strategies
    5. 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:
    1. strategies to categorize customers into groups to understand them better
    2. strategies to keep the customers the company already has
    3. strategies to acquire new customers
    4. strategies to sell more to existing customers
    5. strategies to choose different types of salespeople to sell different products

14. Which of the following is an example of using social capital to help grow a company?            
    1. 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.
    2. The HR manager of a company hires new employees to staff a project that will increase

revenue by 25%.

1. 3. 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.
   4. 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.
   5. 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.

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
    1. financial capital
    2. strategic development
    3. social capital
    4. strategic visioning
    5. human capital

16. A company's mission statement may or may not mention the product(s) the company makes. This is because:
    1. the mission statement is not the list of objectives or the action plan that discusses specific products
    2. mission statements are generic across all industries
    3. the mission statement is written by managers who are not familiar with all the products
    4. the mission statement is an internal document only and does not need to list products
    5. mission statements are deliberately vague so they inspire all customers equally
17. Which of the following is an example of a SMART goal?
    1. to continue the sales process until we lead the industry
    2. to be the best by 2015
    3. to go from selling 500 units per month to 1000 units per month in 10 months
    4. to improve customer satisfaction and loyalty
    5. to go from 1% market share to 90% market share in one month
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?
    1. SMART goals are more easily automated than other goals are.
    2. Employees have an easier time implementing goals others set for them than goals they set for themselves.
    3. Employees have a more direct plan of action when the goals are specific and detailed, as SMART goals are.
    4. SMART goals are inherently more challenging than other goals are.
    5. Departments using SMART goals will always achieve them.
19. Which of the following is NOT an issue in transactional sales?
    1. The salesperson succeeds by making as many calls as possible.
    2. The buyer and the salesperson do not form a long-term relationship.
    3. The goal is to get the sale completed as soon as possible.
    4. The product is customizable for each buyer depending on the buyer's needs.
    5. The buyer does not need much assistance in making the decision to buy.
20. All of the following are problems that can result from having no formal sales process EXCEPT:
    1. Sales managers have a hard time managing salespeople if there is no standard process to follow.
    2. The salespeople cannot be compared so relative performance cannot be assessed.
    3. Sales managers cannot take the time to formalize a sales approach.
    4. Sales managers cannot help salespeople improve because they can't diagnose specific problems.
    5. The salespeople receive no training before they start working.

21. In an affiliative selling situation, the salesperson spends more time developing:                                     
    1. the buyer's knowledge of the product
    2. the buyer's trust and friendship
    3. the buyer's ability to afford the product
    4. the buyer's desire to won the product
    5. the buyer's authority to purchase the product
22. Consultative selling is most appropriate in a situation in which:                                               
    1. the buyer is prepared to place a bulk order
    2. the salesperson has the ability to discount the price of the product without a manager's approval
    3. the buyer needs a simple product to fit a straightforward need
    4. the buyer has less money to purchase than the list price of the product
    5. the salesperson has enough experience in the industry to understand the buyer's situation
23. Enterprise selling requires a partnership between:                                                                            
    1. a salesperson and a buyer
    2. a salesperson and an oversight group
    3. a selling organization and a buying organization
    4. a fulfillment department and a buying organization
    5. a selling organization and a buyer
24. The sales process, a standard eight-step plan of action, creates a:
    1. series of events in which the buyer commits to the salesperson several times
    2. method that requires salespeople to do more research than necessary
    3. series of presentations on the features of the product
    4. chain of opportunities for the salesperson to ask for money
    5. 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:       
    1. the buyer has been approached previously by another salesperson
    2. the buyer has decided to purchase the product
    3. the buyer understands the features and benefits of the product
    4. the buyer has the money, authority, and desire to buy the product
    5. the buyer has the money and affiliation to understand the presentation

26. When a salesperson is formulating an opening statement to use to approach a buyer, what should the salesperson focus on?
    1. solving a problem the buyer has
    2. identifying the company the salesperson works for
    3. asking for the buyer's name
    4. explaining the features of the product
    5. closing the sale

27. All of the following are types of questions in the SPIN technique EXCEPT:                                 
    1. questions that prompt a buyer to identify a problem
    2. questions that ask the buyer to take the next step
    3. questions that ask a buyer to consider the implications of the problem
    4. questions that ask about a buyer's situation
    5. questions that suggest something the buyer needs and a payoff for the buyer

1. recognizing the situation that the buyer has
2. affirming the decision-making process
3. agreeing on a budget for the transaction
4. identifying that the buyer has the money, authority, and desire to buy
5. 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:
    1. is flexible for many working environments
    2. is cheaper than the products sold by other companies
    3. is the most advanced product on the market
    4. is compliant with all industry standards
    5. is the best solution to a buyer's existing problem
30. Which of the following is NOT a feature of a good close?
    1. confirming the implementation schedule
    2. reinforcing the decision
    3. asking for a referral
    4. thanking the buyer
    5. overcoming the buyer's objections
31. The logical next step after a salesperson alleviates a buyer's objections is:
    1. identifying the buyer's needs
    2. qualifying the lead
    3. implementing the product
    4. closing the sale
    5. making a presentation
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:
    1. to gain repeat business from current customers
    2. to make sure that the customer's experience with the product is positive
    3. to provide training in proper use of the product
    4. to charge a fee for follow-up to increase revenue
    5. to set the salesperson apart from competitors

33. Depending on the sales approach used:                                                                                    
    1. the buyer may or may not take physical possession the product
    2. the salesperson may not want to qualify the lead
    3. the buyer may be able to name the price of the product
    4. the salesperson may need to call in another salesperson to convince the buyer
    5. the salesperson may or may not need to follow all eight steps in sequential order

34. As a sales manager moves closer to the top of the organization chart, the manager's day-to-day tasks:
    1. involve filling out more paperwork each day
    2. require more travel and entertainment
    3. cannot be performed by just one person
    4. involve selling to bigger and bigger accounts
    5. have less to do with the sales process

35. Quotas are an important part of a sales plan because:                                                            
    1. they determine the minimum amount that a salesperson should be selling
    2. they report how much a salesperson sells each month
    3. they reflect changes in the market
    4. they create a high-pressure environment that encourages innovation
    5. 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?
    1. How to implement a sales plan
    2. What the quotas should be for the sales department
    3. Which type of sales force to use for each product
    4. How to market a particular product
    5. Whether to outsource the shipping department

37. All of the following are challenges sales executives face as they implement a sales plan EXCEPT:                                                                                                                                     
    1. choosing a compensation plan for salespeople
    2. delegating the plan to employees in a way that the employees understand
    3. determining which type of salespeople will be used for each product
    4. supporting employees to hit sales targets
    5. creating a culture that supports ethical behavior
38. Monitoring is an important duty for sales executives because it allows them to determine if:
    1. buyers are being billed on the correct day of the month
    2. the correct sales methods have been chosen and are being followed
    3. sales managers are focusing on performance more than on people
    4. salespeople are paying attention during weekly sales meetings
    5. corporate management is giving support to the sales department

39. The number one responsibility of a field sales manager is:                                                       
    1. to develop sales strategy
    2. to achieve a departmental sales quota
    3. to hire and fire salespeople
    4. to be the public face of the company
    5. to sell more product to current customers
40. Technology can be used by sales managers and sales executives to:                                        
    1. align the sales department with the company's mission statement
    2. keep track of how salespeople are performing
    3. motivate individual salespeople to make more sales calls
    4. obtain buy-in from the marketing department for sales strategies
    5. perform need identification as part of the sales process

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

41. Buyers can be grouped by how they make decisions.                                                                         

42. The eight steps in the selling process work best when followed sequentially and all the steps are performed once.

43. A prospect is a lead that has been qualified.                                                                            

44. The FEBA approach consists of a series of questions designed to determine a buyer's needs.  
45. A customer who offers objections after a sales presentation will ultimately not buy the product.

46. By the time the salesperson asks the buyer for the close, the buyer has already given the salesperson commitment to several other requests.

47. Follow-up after a sale is polite, but does not lead to increased sales.                                                     

48. Sales managers who only manage and do not also sell are not able to understand the selling process.

49. Quotas can be set for individual salespeople as well as for larger groups such as regional or divisional offices.

50. High-performance selling and a company culture of high ethics are at odds with one another.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

51. In what ways is being a sales manager different from being a salesperson? What are some difficulties that successful salespeople can encounter when they are promoted to management? How can they overcome those difficulties?

52. What are the qualities of a good mission statement? Why is a mission statement necessary? What things does a good mission statement do for a company? What elements are not required in a good mission statement?

53. Explain the concept of strategy hierarchy. What are the elements of a corporate strategy? Give an example of a corporate strategy and a marketing and sales strategy that might follow from it.

54. What are the four ways a company can grow sales? Explain each one. Which one is the most risky? Why?

55. Explain the concept of customer lifetime value. What are some examples of products or services for which the customer's lifetime value is very close to the value of a single purchase? What are some examples of products or services for which the customer's lifetime value far exceeds the value of a single purchase?

56. What are the elements of a SMART objective or goal? What are the benefits of using SMART objectives or goals?

57. How many steps are there in the selling process? List each step, and briefly describe what that step entails and why it is important.
58. What are the characteristics of a "MAD buyer"? What is another name for a MAD buyer? Why is it important to determine if a lead is a MAD buyer?

59. Why is a good opening statement from a salesperson to a buyer necessary? What are the characteristics of a good opening statement?