Marketing 3000- Final Exam

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Personal selling
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A purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
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1st advantage of personal selling
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Provides a detailed explanation or demonstration of the product.
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2nd advantage of personal selling
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Sales message can be varied according to the motivations and interests of each prospective customer
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3rd advantage of personal selling
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Can be directed only to qualified prospects
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4th advantage of personal selling
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Costs can be controlled by adjusting the size of the sales force
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Most important advantage of personal selling
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More effective than other forms of promotion in obtaining a sale and gaining a satisfied customer
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Relationship selling is also known as
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consultative selling
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Relationship selling
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A multistage process that emphasizes personalization and empathy as key ingredients in identifying prospects and developing them as long-term, satisfied customers
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What is the focus on relationship selling?
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Building mutual trust between the buyer and seller through the delivery of long-term, value-added benefits that are anticipated by the buyer
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Relationship or consultative salespeople become
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Consultants, partner,s and problem solvers for their customers
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Customer relationship management (CRM)
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The ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group
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How was CRM initially popularized?
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One-to-one marketing
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How are marketers making their communications more specific?
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CRM cycle
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Two key points of CRM
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1) Customers take center stage in any organization 2) The business must manage the customer relationship across all points of customer contact throughout the entire organization
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Companies that have CRM systems follow a _________ focus or model
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customer-centric
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Customer-centric
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An internal management philosophy similar to the marketing concept in Chapter 1
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What does learning in a CRM environment involve?
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Collecting customer information through comments and feedback on product and service performance
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Knowledge management
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A process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization
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When does an interaction occur?
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When a customer and a company and a company representative exchange information and develop learning relationships
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How can the success of CRM be measured?
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The effectiveness of the interaction between the customer and the organization
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Following a customer-centric approach, an interaction can occur through a __________ or direct communication channel
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Formal
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Touch points
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In a CRM system, touch points are all areas of a business where customers have contact with the company and data might be gathered
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The net promoter score
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Measures how much a customer influences the behavior of other customers through recommendations on social media
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Point-of-sale interactions
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Another touch point in stores or at information kosks
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What is the traditional approach for acquring data from customers?
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Channel interactions
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What do channel interactions include?
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Store visits, conversations with salespeople, interactions via the Web, traditional phone conversations, and wireless communications
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Is the issue with CRM how much data can be obtained or what type of data should be acquired?
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What type of data should be acquired
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What is leveraging customer information?
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When you data mine then tailor design marketing strategies
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Improving customer retention by a mere 2 percent can decrease costs by ____
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10 percent
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Campaign management
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Involves montiroing and leveraging customer interactions to sell a company’s products and to increase customer service
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When a company retains an additional 5 percent of its customers each year, profits will increase by ______
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25 percent
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Sales process is also known as the
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sales cycle
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Sales process
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The set of steps a salesperson goes through to sell a particular product or service
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True or false: The sales process or cycle can be unique for each product or service
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True
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Seven steps in the personal selling process
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1) Generating leads 2) Qualifying leads 3) Approaching the customer and probing needs 4) Developing and proposing solutions 5) Handling objections 6) Closing the sale 7) Following up
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The final step in the sales process is…
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Following up
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Follwoing up lowers
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Cognitive dissonance
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True or false: Traditional selling and relationship selling follow the same basic steps
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True
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How do traditional selling and relationship selling differ in relation to the sales process?
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The relative importance placed on key steps in the process
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Traditional selling efforts are ________ oriented
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Transaction
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Step 1: Lead generation is also called
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Prospecting
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Lead generation
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the identification of those firms and people most likely to buy the seller’s offerings
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Referall
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A recommendation from a customer or business associate
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Referrals are typically as much as _____ times more productive in generating sales than cold calls
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10
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Networking
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Using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients
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Step 2
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Qualifying leads
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Qualifying leads
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When a prospect shows interest in learning more about a product, the salesperson has the opportunity to follow up (or qualify) the lead
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Qualified leads are
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Real prospects who answer questions, value your time, and are realistic about money and when they are prepared to buy
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Lead qualification involves determining whether the prospect has 3 things:
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1) A recognized need 2) Buying power 3) Receptivity and accessibility
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Preapproach
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The “homework” that must be done by the salesperson before contacting the prospect
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In a needs assessment, the consultative salesperson must know everything there is to know about
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1) The product 2) Customers and their needs 3) The competition 4) The industry
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Sales proposal
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Written document or professional presentation that outlines how the company’s product will meet or exceed the client’s needs
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Sales presentation
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The formal meeting in which the salesperson has the opportunity to present the sales proposal
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Quota
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A statement of the salesperson’s sales goals, usually based on sales volume alone but sometimes including key accounts, new accounts, repeat sales, etc
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Compensation planning is one of the sales manager’s _____ jobs
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toughest
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_______ are one of the most rapidly adopted consumer technologies in history
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Tablets
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Social commerce
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Combines social media with the basics of e-commerce. Example, Pinterest
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The bulk of the marketing budget goes to
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Search marketing and display advertising
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Social media budget in marketing went from 19% in 2011 to _____ in 2016
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35%
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Unique consequence of social media
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Widespread shift from one-to-many communication to many-to-many communication
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Crowdsourcing
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Using consumers to develop and market products
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First action a marketing team should take when initiating a social media campaign
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Listen
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Social media monitoring
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The process of identifying and assessing what’s being said about a company, individual, product, or brand
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After establishing a listening platform, the organization should develop
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a list of objectives for its social media team to accomplish
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6 categories of social media users
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1) Creators 2) Critics 3) Collectors 4) Joiners 5) Spectators 6) Inactives
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Corporate blogs
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Sponsored by a company or one of its brands and are maintained by one or more of the company’s employees
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Noncorporate blogs
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Independent and not associated with the marketing efforts of any particular company or brand
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Microblogs
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Blogs that entail shorter posts than traditional blogs (like Twitter)
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Price plays 2 roles in the evaluation of product alternatives:
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1) A measure of sacrifice 2) An information cue
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Do we infer quality information from price?
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Yes
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Revenue
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The price charged to customers multiplied by the number of units sold
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3 categories of pricing objectives
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1) Profit oriented 2) Sales oriented 3) Status quo
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Proxit maximization
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Setting prices so that total revenue is as large as possible relative to total costs
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Return on investment =
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Net profits after taxes / Total assets
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ROI measures management’s overall effectiveness in
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generating profits with the available assets
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The higher the firm’s ROI,
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the better
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Firms seek ROIs in the 10 to
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30% range
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Sales-oriented pricing objectives are based either on
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market share or on dollar/unit sales
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Market share
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a company’s product sales as a percentage of total sales for the industry
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status quo pricing
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seeks to maintain existing prices or to meet the competition’s prices
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price equilibrium
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When demand and supply are equal
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elasticity of demand
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consumer’s responsiveness or sensitivity to changes in price
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Elastic demand
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a situation in which consumer demand is sensitive to price changes
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Inelastic demand
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An increase or a decrease in price will not significantly affect demand for the product
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Elasticity =
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% change in quantity demanded of good A / % change in price of good A
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If E in the elasticity formula is > 1, demand is
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elastic
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E < 1, demand is
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inelastic
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E = 1, demand is
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unitary
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unitary elasticity
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an increase in sales exactly offsets a decrease in prices, so total revenue remains the same
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If price goes down and revenue goes up, demand is
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elastic
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If price goes down and revenue goes down, demand is
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inelastic
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If price goes up and revenue goes down, demand is
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elastic

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