CHAPTER 19 Personal Selling and Sales Promotion101. In recent
years the proportion of promotional dollars spent on sales promotion has
relative to advertising.
slightly, and the proportion spent on advertising has increased.
slightly, and the proportion spent on advertising has declined as well.
and the proportion spent on advertising has risen as well.
102. Which of
the following is not a reason why the proportion of promotional dollars spent
on sales promotion has increased in recent years?
have become more powerful relative to manufacturers and are demanding more trade
sales promotion efforts.
of an increased focus on value, consumers are more responsive to promotional
greater emphasis on improving long-term performance has resulted in an
increased use of sales promotion methods.
d) Sales promotions
aimed at convincing customers to change brands are more effective because of
declines in brand loyalty in general.
e) All of
these are reasons for the increasing proportion of promotional dollars being
spent on sales promotion efforts.
103. Heinz uses
various techniques such as coupons, free samples, and consumer contests to
encourage consumers to try its products. All of these marketing activities are
sales promotion methods.
sales promotion methods.104. As
Quaker Oats tries to decide how to introduce its new line of breakfast bars, it
considers all the advantages and disadvantages of the various consumer sales
promotion methods. After careful consideration, Quaker Oats decides to use
_____, which are the most widely used form of consumer sales promotion.
usage, inability to attract potentially brand-loyal customers, and use by
current customers but not new customers are believed to be disadvantages of
which of the following?
106. As a
promotional strategy, using coupons strives to achieve all of the following
a) show how
a product is used.
sales volume quickly.
new package sizes.
trial usage of a new product.
are offers of cash to customers who purchase a specific product, and
___________ are offers of cash to customers who purchase a specific quantity of
a specific product.
allowances; money refunds
108. Which of
the following is most likely to stimulate customer loyalty?
109. Jamba Juice
offers its customers a stamp card that allows them to receive a free smoothie
after they have filled an entire card. This is an example of a
counter pieces, racks, and self-service cartons are all forms of
Maybelline would like to use ______ as a consumer sales promotion method, this
method has extremely high labor costs that are more affordable for higher-end
make-up companies such as Clinique and Estée Lauder.
that her firm’s sales promotion budget was small and cut by 30 percent for the
coming year, Stacey Baronas rules out ___________ as playing a role in her
sales promotion plan.
113. To increase
sales of Chex cereals, Ralston Purina offered a free pound of bananas to
customers who bought the large-size box. This form of sales promotion is called
e) money refund.
are items offered free or at minimal cost as a bonus for purchasing a product.
115. At one
time, Wheaties offered two free golf balls with the purchase of a twin pack of
Wheaties cereal featuring Tiger Woods. This is an example of a
116. On a break
between classes, Kelley Macon selects two magazines and mails the Publishers
Clearing House entry form. She doubts that she will win $10 million, but she
never passes up a chance to participate in a
difference between consumer sales promotion methods and trade sales promotion
consumer sales promotion, marketers try to persuade retailers to carry their
trade sales promotion, marketers focus on trading with consumers.
and trade sales promotions aim at retailers, but only trade sales promotions
aim at wholesalers.
sales promotions focus on getting consumers to buy their products, whereas
trade sales promotions focus on getting wholesalers and retailers to buy.
sales promotions attempt to persuade people to buy at particular stores,
whereas consumer sales promotions focus on persuading people to buy particular
marketing tactic used to stimulate wholesalers and retailers to carry a
producer’s products and market those products more aggressively is a
sales promotion method.
sales promotion method.
119. Which of
the following is an example of a trade sales promotion method?
120. A temporary
price reduction to resellers for purchasing specified quantities of a product
c) a buying
e) a money
retailers are offered temporary price reductions for purchasing specified
quantities of a product. These offers are used to provide an incentive to
handle a new product, to achieve a temporary price reduction, or to stimulate
the purchase of an item in large quantities. What is this sales promotion?
122. If Green
Giant wants to provide its resellers with a secondary incentive to stimulate
repurchases after an initial consumer coupon campaign for its latest product,
it can offer resellers a sum of money for each unit purchased. This type of
sales promotion is a
123. When a
manufacturer rewards retailers based on the number of pieces moved through
their scanners, this sales promotion method is known as a
124. When Levi’s
agrees to pay JC Penney’s money for providing television advertising and Sunday
newspaper sales fliers emphasizing Levi’s jeans, Levi’s is offering
c) a dealer
d) a buying
arrangement in which a manufacturer pays a certain amount of a retailer’s media
costs for advertising that manufacturer’s products is
television advertisement for Miracle-Gro lawn fertilizer indicates that the
product is available at Kmart and Wal-Mart. This form of sales promotion is
__________ is a gift to a retailer who purchases a specified quantity of merchandise.
e) count and
128. A dealer
compensation to salespeople from the manufacturer to promote a line of goods.
agreement in which a producer offers free merchandise to a retailer.
advertisement that promotes a product and identifies retailers who sell the
d) a gift to
a retailer who purchases a specified quantity of merchandise.
temporary price reduction to resellers for purchasing a certain quantity of
Epstein tells his fellow retail salesperson at Zales Jewelers that during the
second quarter he is going to sell all the Alance watches he can and use his
extra earnings to go to Cancun. He exclaims, “Can you believe the __________
program they have on for this quarter?”
130. While sales
contests can motivate employees at all levels to participate, a disadvantage of
this method of sales promotion is that
a) they are
often too complicated.
b) they are
not taken seriously by the employees.
often discontinue their positive behavior after the contest is over.
point-of-purchase display materials are needed to implement a contest.
often feel they are not being recognized enough.
Use the following to answer questions 131-134:
Jafrum, Inc. is a wholesale supplier of motorcycle
accessories, clothing, and tools to various motorcycle retail stores around the
country. Jafrum does not manufacture
these items, but sells them to other retailers and also sells its merchandise
through its website. Sean Thompson is
one of the salespeople for Jafrum, and is responsible for obtaining new
customers, increasing sales to current customers, and visiting the retail
stores throughout the country. Recently,
he has been given the sales objective from Jafrum’s management to increase
sales dollars by 15% in the coming year by adding new customers. Sean’s current compensation is based on a
$1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going
to a compensation plan where he will earn 15% of all sales, but no draw.
131. Sean is
developing his list of potential new retail customers by accessing the yellow
pages online. Here he finds the contact
information for every motorcycle store in the 48 contiguous states, and
eliminates those who currently are his customers. Sean is involved in which step of the
personal selling process?
selects several motorcycle stores who are not currently his customers. He then obtains and analyzes information
about the current brands of motorcycle accessories they stock, their sales
trends, and credit history. Sean is
engaged in which of the following?
133. Sean has
narrowed his list and is preparing a packet of information about Jafrum and its
products to send to the prospects. He
also includes a letter of introduction and says he will contact them within the
next two weeks to set up a sales visit.
In this scenario, Sean is all of the following except
a) a trade
b) a field
d) an order
e) a new
Sean’s compensation is based on the ________ plan, however he is considering
changing to the _________ plan.
salary; salary plus commission
commission; straight salary
plus commission; straight commission
plus bonus; straight bonus
bonus; straight commission
Use the following to answer questions 135-138:
The Presto Company manufactures several types of household
appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores
such as Kohl’s, Macy’s, and J.C. Penney’s, through its own salesforce. Kerry Wilson is one of Presto’s salespeople,
and is responsible for stores headquartered in Region 1 of the U.S. Kerry has just come from a monthly meeting
where she has been informed about the new stovetop grill that will be part of
next season’s lineup. Presto’s marketing
department has developed a promotional plan for the new grill and outlined that
plan for the sales staff in the meeting.
The promotional plan for the next 60 days will include television
commercials which demonstrate the new grill, in-store rebates, and a customer
contest for the best grilled sandwich recipe.
In addition, Kerry and other members of the salesforce will be given a
free grill for their own home use so they can become more familiar with the
product. Presto is also offering a free
trip to New York City for their staff salesperson who has the highest dollar in
sales to his or her stores. To encourage
the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is
135. Kerry and
the other salesforce members are best described as a ______________ sales
appears to be using ______________ to educate its sales force.
137. Which of
the following are consumer sales promotion methods that Presto is using for the
new stovetop grill?
commercials and the customer contest
commercials and the in-store rebate
customer contest and the in-store rebate
d) the sales
force contest and the in-store rebate
e) the sales
force contest and the customer contest
use of a free trip to New York is an example of ____________, while the $5
discount to its retail stores is an example of _______________.
a) a trade
allowance; a buy-back allowance
b) a buying
allowance; a dealer loader
c) a dealer
loader; a buy-back allowance
d) a sales
contest; a buy-back allowance
e) a sales
contest; a buying allowance
139. T F
Personal selling is generally the most expensive element in the
140. T F
The primary goals of personal selling are finding prospects, convincing
prospects to buy, and keeping customers satisfied.
141. T F
Most marketers depend on one-sale customers for long-run survival.
142. T F
Developing a list of potential customers is called prospecting.
143. T F
The preapproach is the first step in the personal selling process.
144. T F
Even though salespeople do not use the exact same sales methods, they do
go through the same general selling process.
145. T F
In the cold canvass technique, the salesperson calls on potential
customers without their prior consent.
146. T F
Using referrals falls under the approach step in the personal selling
147. T F
The approach step is an important step for gathering information about a
buyer’s needs and objectives.
148. T F
Listening on the part of a salesperson is a major component in making a
149. T F
One of the best ways to overcome a prospect’s objections is to
anticipate them and to deal with them before the prospect has an opportunity to
150. T F
A salesperson should not attempt to close a transaction until he or she
has finished the entire presentation.
151. T F
Closing the sale is not a part of the sales presentation in which hidden
objections are discovered.
152. T F
It is never good to ask customers questions while giving the sales
presentation, as the customer may raise objections that the salesperson cannot
153. T F
If possible, the salesperson should handle objections only when they
154. T F
Following up involves listening to a customer’s response after finishing
the presentation and overcoming those objections.
155. T F
Order getters are sometimes called creative sellers.
156. T F
A single salesperson may perform the functions of order getting, order
taking, and support.
157. T F
Current customers are sources of leads for finding prospective
158. T F
Locating prospects, educating customers, and building goodwill are
functions performed by support personnel.
159. T F
The missionary salesperson’s primary purpose is to sell to the
160. T F
Some support personnel, such as trade salespeople, may perform
order-taking functions in addition to support functions.
161. T F
The focus of personal selling is shifting from selling a specific
product to building long-term relationships with customers by finding solutions
to their needs, problems, and challenges.
162. T F
Team selling involves building mutually beneficial long-term
associations with a customer through regular communications over prolonged
periods of time.
163. T F
Relationship selling is used especially in consumer marketing.
164. T F
Selection of the right type and proportion of salespeople is important
because it is a one-time decision that affects the company’s ability to
generate sales and profits.
165. T F
When determining the characteristics desirable in salespeople, the sales
manager should analyze the characteristics of the successful and ineffective
sales personnel within the firm.
166. T F
Among others, management recruits from within the firm or from
recommendations of individuals by current employees.
167. T F
Because salespeople are an expense to the company, yet they are the ones
who generate revenues for the company, management must strive to achieve
optimality in the size of its sales force.
168. T F
Sporadic recruiting is more desirable than continuous recruiting because
of the expense involved in the process.
169. T F
Regardless of one’s experience, firms always put new employees through a
training program geared for their specific firm.
170. T F
Training programs designed for experienced company salespeople generally
are oriented toward product information.
171. T F
A straight commission compensation program ensures that selling costs
will be predictable.
172. T F
Effective sales force motivation is achieved through a continual
organized set of activities performed by the company’s sales management.
173. T F
The aim of a motivational program is to create a working environment in
which sales personnel can achieve their goals.
174. T F
To equalize the workload, a sales manager divides a geographic market
into sales territories of equal size according to land area.
175. T F
Maximization of selling time and minimization of nonselling time are the
major goals of routing and scheduling decisions.
176. T F
A salesperson with a larger territory will have the advantage of being
able to achieve more sales than salespeople with smaller territories.
177. T F
Salespeople should know the sales objectives of the firm in order to
know what they are expected to accomplish.
178. T F
Generally, a salesperson’s performance is judged by comparing it with
predetermined standards rather than by comparing it with the performance of
179. T F
The factors used to evaluate a salesperson’s performance are based on
the sales objectives set by the sales manager for that salesperson.
180. T F
A salesperson’s performance is often compared with the performance of
other salespeople operating under similar conditions.
181. T F
Sales promotion activities are always supplementary to personal selling
182. T F
Decisions regarding sales promotion do not affect advertising decisions.
183. T F
Generally, sales promotion attempts to influence consumers to purchase
products but is not normally aimed at resellers.
184. T F
Sales promotion may facilitate personal selling.
185. T F
Sales promotion activities are generally used in conjunction with other
186. T F
Sales promotion objectives should be consistent with the organization’s
overall objectives and its marketing objectives.
187. T F
A marketer’s selection of sales promotion techniques is influenced by
the state of the competitive environment.
188. T F
Two major categories of sales promotion methods are consumer and trade.
189. T F
One objective of consumer sales promotion techniques is to encourage
patronage for a specific retail store.
190. T F
Many consumers redeem coupons only for products they normally buy.
191. T F
Most people who purchase rebated products actually apply for the
192. T F
Demonstrations in retail stores are not used widely because they are
expensive.193. T F
The use of sampling is declining.
194. T F
Consumer contests and sweepstakes are used to promote established
products and tend to generate similar levels of consumer response.
195. T F
Generally, consumer sweepstakes are more popular than consumer contests.
196. T F
Buying allowances are effective promotional techniques because they
result in profits for resellers.
197. T F
Merchandise allowances are generally used in conjunction with
high-volume, low-profit items.
198. T F
Cooperative advertising refers to advertisements promoting a product and
identifying participating retailers that sell the product.