Chap 013

Chapter 13 - Sales Force, Internet and Direct Marketing ...
Chapter 13
Sales Force, Internet and Direct Marketing ...

True / False Questions

1. (p. 397) Sales force strategy requires deciding ho to use personal selling to contact sales
prospects, generate sales and de!elop the types of custo"er relationships that "anage"ent
considers necessary to acco"plish the organi#ation$s sales force o%&ecti!es.
TR!

Difficulty: Easy

'. (p. 400) ( co"pany ill ne!er use "ore than one of the selling strategies such as ne
%usiness, "issionary, consultati!e and trade.
F"#S!

Difficulty: Moderate

3. (p. 400) )rospecting is an unnecessary part of the sales process.
F"#S!


*. (p. 402) +here is a significant trend toard a greater focus on custo"ers ,"arket dri!en-
designs rather than products or geography as the %asis for the design of the sales
organi#ation.
TR!


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.. (p. 406) +he personal inter!ie although not i"portant is idely acknoledged as the "ost
en&oya%le part of the selection process for salespeople since sales "anagers are gregarious and
like to talk to people.
F"#S!

Difficulty: Easy

/. (p. 408) +he Internet is a orldide "eans of e0changing infor"ation and co""unicating
through a series of interconnected co"puters. It offers a fast and !ersatile co""unications
capa%ility. Internet initiati!es span a ide range of glo%al industries and co"panies.
TR!


1. (p. 411) +he fi!e reco""ended "easures of Internet effecti!eness for independent auditing
and !erification proposed ere ad i"pressions, clicks, unique !isitors, total !isits and page
i"pressions.
TR!

Difficulty: !alle"#i"#

2. (p. 411) (ccording to the te0t the i"pact of the Internet in the future pro"ises to %e
re!olutionary for certain industries and incre"ental for others.
TR!


3. (p. 412) +he purpose of direct "arketing is to "ake direct contact ith end-user custo"ers
through alternati!e "edia ,e.g., co"puter, telephone, "ail and kiosk-.
TR!

Difficulty: Easy

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14. (p. 414) +here are three types of netorks5 ,1- +he 60tranet is a co"pany internal capa%ility
using Internet softare standards, ,'- +he Internet is a glo%al interlink of co"puter netorks
that ha!e a co""on softare standard ,3- +he Intranet consists of pro!iding e0ternal partners
access to the 60tranet.
F"#S!


Multiple Choice Questions

11. (p. 399) 77777 in!ol!es o%taining sales fro" ne %uyers. +he %uyers "ay %e one-ti"e
purchasers or repeat %uyers.
". 8e %usiness selling
9. +rade selling
C. Missionary
D. Consultati!e:technical selling

Difficulty: Easy

1'. (p. 399) 77777 pro!ides assistance and support to !alue chain "e"%ers rather than o%taining
sales. ( producer "arketing through holesalers, retailers or other inter"ediaries "ay
pro!ide "erchandising, logistical, pro"otional and product infor"ation assistance.
(. 8e %usiness selling
$. +rade selling
C. Missionary

Difficulty: Easy

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13. (p. 399) 77777 is a for" of selling in hich the salespeople ork ith the custo"ers of a
channel "e"%er to encourage the" to purchase the producer$s product fro" the channel
"e"%er.
9. +rade selling
C. Missionary selling

Difficulty: Easy

1*. (p. 400) 77777 sells to an e0isting custo"er %ase and pro!ides technical and application
assistance. +hese positions "ay in!ol!e the sales of co"ple0 equip"ent or ser!ices such as
"anage"ent consulting. I"portantly, consultati!e selling requires gi!ing sales professionals
authority in negotiating sales.
9. +rade selling
C. Missionary selling

Difficulty: Easy

1.. (p. 400) (ccording to the te0t the selling process includes 77777, 77777 and 77777.
(. )rospecting for custo"ers; opening the relationship; ad!ertising
9. 9uilding the product, qualifying the prospect, presenting the sales "essage
C. Closing the sale, %roadcasting, ser!icing the account
D. )rospecting for custo"ers, ser!icing the account, presenting the sales "essage


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1/. (p. 9) 77777 guide,s- the selling process %y indicating the custo"ers and prospects the fir"
is targeting and pro!iding guidelines for de!eloping custo"er relationships and o%taining
sales results.
(. Direct "arketers
9. Marketing "anagers
C. Sales "anage"ent
D. Sales support


11. (p. 402) <hene!er the custo"er %ase is idely dispersed, 77777 is likely to %e rele!ant in
the organi#ational design of the sales force.
". =eography
9. Market dri!en
C. )roduct:"arket
D. )roduct dri!en


12. (p. 402) +he 77777 organi#ational design of the sales force is hea!ily influenced %y the
custo"er %ase.
(. =eography
$. Market dri!en
C. )roduct:"arket
D. )roduct dri!en


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13. (p. 403) Si"ilar custo"er needs and a co"ple0 range of products point to the 77777
organi#ational design of the sales force.
(. =eography
9. Market dri!en
C. )roduct:"arket
D. )roduct dri!en


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'4. (p. 403) +he assigned geographical area and ,or- accounts that are the responsi%ility of each
salesperson co"prise the 77777 or ork unit.
(. =eography design
9. Market dri!en design
C. Sales territory
D. )roduct dri!en design


'1. (p. 403) 77777 are "ethods for analy#ing sales force si#e. +hey require infor"ation on each
salesperson$s sales and:or costs and can help spot high perfor"ing and unprofita%le territories.
+hese techniques "ay esti"ate the profit i"pact of adding "ore salespeople in an area.
". >e!enue:cost analysis techniques
9. Single-factor "odels
C. Sales and effort response "odels
D. )ortfolio deploy"ent "odels


''. (p. 404) 77777 are "ethods for analy#ing sales force si#e. +he assu"e that si#e of the sales
force and:or effort deploy"ent are deter"ined %y one factor, such as "arket potential or
orkload hose !alues can %e used to deter"ine required selling effort.
(. >e!enue:cost analysis techniques
$. Single-factor "odels


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'3. (p. 404) 77777 are "ethods for analy#ing sales force si#e. +hey consider the i"pact of
"ultiple influences ,e.g., "arket potential, intensity of co"petition and orkload- on "arket
response hich can i"pro!e salesperson deploy"ent decisions.
(. >e!enue:cost analysis techniques
9. Single-factor "odels


'*. (p. 406) ?%&ecti!es for training salespeople include to 77777, 77777 and 77777.
". Increase producti!ity, i"pro!e "orale, loer turno!er
9. I"pro!e custo"er relations, ena%le %etter "anage"ent of ti"e, rope e0ercise
C. Increase producti!ity, trust e0periences, ena%le %etter "anage"ent of territory,
D. Dri!ing lessons, ena%le %etter "anage"ent of ti"e, loer turno!er

Difficulty: Easy

'.. (p. 406) <hich ould not %e an effecti!e tool to "oti!ate salespeople@
(. Salary and incenti!e pay
9. Managers assist salespeople
C. +i"e-consu"ing co"pany policies and procedures
D. )ro"ising selling opportunities

Difficulty: Easy

'/. (p. 412) +he e0panding popularity of direct "arketing "ethods is dri!en %y 77777 such as
to orking spouses i"posing "a&or ti"e constraints on households.
". Socioecono"ic trends
9. Ao access costs
C. Data%ase "anage"ent
D. Balue

Difficulty: Easy

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'1. (p. 412) +he e0panding popularity of direct "arketing "ethods is dri!en %y 77777 since the
cost per contact of face-to-face contact is higher.
(. Socioecono"ic trends
$. Ao access costs
D. Balue

Difficulty: Easy

'2. (p. 412) +he e0panding popularity of direct "arketing "ethods is dri!en %y 77777 since the
infor"ation in the syste"s includes internal data on custo"ers and purchased data on
custo"ers and prospects.
9. Ao access costs
D. Balue


'3. (p. 412) +he e0panding popularity of direct "arketing "ethods is dri!en %y the 77777 of
con!enience, reduced shopping ti"e, rapid response and co"petiti!e prices.
9. Ao access costs
D. 9undle of !alue


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34. (p. 413) +he e0panding popularity of direct "arketing "ethods is aided %y the "ethod of
77777 hich consists of the use of telephone contact %eteen the %uyer and seller to perfor"
all or so"e of the selling function.
". +ele"arketing
9. Ao access costs
D. 9undle of !alue


!ssa% Questions

31. (p. 397) 60plain the factors that influence the role of personal selling in the Integrated
Marketing Co""unications strategy.
+he sales quotas o%&ecti!es assigned to salespeople frequently in!ol!e e0pected sales results.
Salespeople and sales tea"s ho achie!e their quotas "ay recei!e incenti!es. ?%&ecti!es
other than sales "ay include increasing the nu"%er of ne accounts, pro!iding ser!ices to
custo"ers and channel organi#ations, retaining custo"ers, selecting and e!aluating !alue
chain inter"ediaries and o%taining "arket infor"ation. +he o%&ecti!es need to %e consistent
ith the "arketing strategy and "easura%le.
Selling roles range fro" transactional selling to consulting-type relationships. +he Internet is
replacing salespeople in transactional selling, hereas it "ay %e used to pro!ide support for
relationship-type selling roles. +ransactional selling is not restricted to s"all, lo !olu"e
%uyers %ut depends on ho "uch direct contact is needed %y the %uyer. Different types of
selling "ay %e needed for the sa"e custo"er.


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3'. (p. 400) 60plain the selling and sales support acti!ities in!ol!ed in the sales process.
Se!eral selling and sales support acti!ities are in!ol!ed in "o!ing fro" identifying a %uyer$s
needs to co"pleting the sale and "anaging the post-sale relationships %eteen %uyer and
seller. +his selling process includes5 ,1- prospecting for custo"ers; ,'- opening the
relationship; ,3- qualifying the prospect; ,*- presenting the sales "essage; ,.- closing the sale;
and ,/- ser!icing the account.


33. (p. 401) (n i"portant part of deciding the personal selling strategy is choice of the
alternati!e channels to end-user custo"ers. 60plain the issues in!ol!ed.
(n i"portant part of deciding the personal selling strategy is choice of the alternati!e
channels to end-user custo"ers. Manage"ent "ust decide5 ,1- hich channel,s- to use in
contacting !alue chain "e"%ers and end users and ,'- ho tele"arketing, Internet and direct
"arketing ill %e used to support the field sales force. For e0a"ple, "anage"ent "ay decide
to contact "a&or accounts using national or glo%al account "anagers, "anage regular
accounts using the field sales force and ser!ice s"all accounts !ia tele"arketing or the
Internet. +he reality is that direct contact %y face-to-face salespeople is !ery e0pensi!e and the
need for this resource should %e analy#ed in ter"s of %enefits and costs.
+he choice of a particular sales channel is influenced %y the %uying poer of custo"ers, the
selling channel threshold le!els and the co"ple0ity of %uyer-seller relationships.


3*. (p. 406) +o achie!e higher le!els of &o% satisfaction a"ong salespeople should "anagers
ha!e a high or lo le!el of "onitoring and directing the salespeople. 60plain your anser.
( "a&or study in!ol!ing a large ,1444 C- sa"ple of %usiness-to-%usiness salespeople found
that salespeople ho e0perienced higher le!els of "anage"ent "onitoring and directing %y
"anagers displayed higher perfor"ance, &o% satisfaction and organi#ational co""it"ent. +he
"anage"ent control efforts are colla%orati!e and appear to %e fa!ora%ly recei!ed %y "any
salespeople. +hese findings suggest that higher le!els of "anage"ent control are associated
ith fa!ora%le salesperson attitudes and %eha!ior.


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3.. (p. 409$410) 60plain the co""unications features of the Internet.
+he co""unications features of the Internet include.
Creating (areness and Interest5 (d!ertising on the Internet offers i"portant ad!antages to
"any co"panies. +he opportunity for glo%al e0posure pro!ides a co"pelling %rand %uilding
capa%ility.
Disse"inating Infor"ation5 )ro!iding product, application and co"pany infor"ation !ia the
Internet is essential in the co"petiti!e "arketplace. +his capa%ility offers an opportunity for
direct one-on-one contact.
?%taining >esearch Infor"ation. +he Internet offers a !ery cost effecti!e "eans of o%taining
infor"ation, such as user profiles. Doe!er, concerns ha!e %een !oiced a%out in!asion of
consu"er pri!acy.
9rand 9uilding. (ccess to users pro!ides an opportunity to %uild a %rand that is unique
co"pared to other "edia. +his highlights the i"portance of de!eloping effecti!e designs for
<e%sites.
I"pro!ing Custo"er Ser!ice. +he Internet pro!ides an i"portant a!enue of after-the-sale
custo"er contact. Dell Inc. offers a ide range of ser!ices to its corporate custo"ers !ia the
Internet.


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