Exam 2

Question 1

advertising designed to reach all users of the product, whether consumers or industrial buyers.

Answer 1

national advertising

Question 2

used by a retailer to reach customers within its geographic trading area

Answer 2

retail advertising

Question 3

advertising the retailer conducts with the cost paid for by the manufacturer or shared by the manufacturer and retailer

Answer 3

co-op advertising

Question 4

undertaken by the manufacturer and directed toward the wholesaler or retailer.

Answer 4

trade advertising

Question 5

aimed at individuals and organizations that purchase products used in manufacturing other products

Answer 5

industrial advertising

Question 6

mailed directly to the consumer or industrial user; it is an effective method of exposing these users to a product or it reminds them that the product is available to meet a specific need

Answer 6

direct-mail advertising

Question 7

includes free samples, coupons, contests, and demonstrations to consumers

Answer 7

consumer sales promotion

Question 8

encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise (for example, buy 10 cases of a product and get 1 case free).

Answer 8

trade sales promotion

Question 9

allow a product to be seen easily and purchased.

Answer 9

point-of-purchase displays

Question 10

refers to the physical placement of the product within the retailer’s store.

Answer 10

shelf positioning

Question 11

the number of individual products placed beside each other on the shelf.

Answer 11

shelf facings

Question 12

an article of merchandise offered as an incentive to the user to take some action

Answer 12

premium

Question 13

allows salespeople to view and manipulate customer and/or prospect information on an electronic map.

Answer 13

geographic information system

Question 14

can abbreviate the time it takes to accomplish this task to no more than a minute or two, the time it takes to execute a few keystrokes.

Answer 14

word processing system

Question 15

the standard price charged to customers

Answer 15

list price

Question 16

the price after allowance for all discounts

Answer 16

net price

Question 17

the price based on geographic location or zone of customers

Answer 17

zone price

Question 18

means the buyer pays transporta-
tion charges on the goods—the title to goods passes to the customer when they
are loaded on shipping vehicles.

Answer 18

FOB shipping point

Question 19

the seller pays all shipping costs

Answer 19

FOB destination

Question 20

One-time reduction in price

Answer 20

noncumulative quantity discounts

Question 21

discounts the customer receives for buying a certain amount of a product over a stated period, such as one year

Answer 21

cumulative quantity discounts

Question 22

are earned by buyers who pay bills within a stated period

Answer 22

cash discounts

Question 23

he manufacturer may reduce prices to channel members (middlemen) to compensate them for the services they perform.

Answer 23

trade discounts

Question 24

the dollar amount added to the product cost to determine its selling price.

Answer 24

markup

Question 25

the money available to cover the costs of marketing the product, operating the business, and profit.

Answer 25

gross profit

Question 26

the money remaining after the costs of marketing and operating the business are paid.

Answer 26

net profit

Question 27

illustrates how all leads and prospects are considered and filtered out as they are subjected to the three mad questions

Answer 27

sales prospecting funnel

Question 28

all salespeople lose X percent of sales or customers per year, this is known as...

Answer 28

leaking bucket customer concept

Question 29

based of the law of averages

Answer 29

cold canvass prospecting methods

Question 30

when a customer refers the salesperson to someone she knows

Answer 30

endless chain referral method

Question 31

a person or organization recommended to you by someone who feels that this person or organization could benefit from you or your product

Answer 31

referral

Question 32

customers whose salesperson has left the company

Answer 32

orphaned customers

Question 33

involves finding and cultivating people in a community or territory who are willing to cooperate in helping to find prospects

Answer 33

center of influence method

Question 34

to contact a large number of prospects across a vast area is far less costly than use of a canvassing sales force, though usually more costly than mailouts.5

Answer 34

telephone prospecting

Question 35

is a marketing com- munication system using telecommunication technology and trained personnel to conduct planned, measurable marketing activities directed at targeted groups of consumers.

Answer 35

telemarketing

Question 36

A salesperson often can find prospects by constantly watching what is happening in the sales area

Answer 36

observation method

Question 37

group of names gathered from various sources

Answer 37

prospect pool

Question 38

people and organizations you know nothing or very little about

Answer 38

leads

Question 39

people or organizations you frequently know very little about other what you learned from the referral

Answer 39

referrals

Question 40

provides guidelines for a salesperson to ask for referrals in four commonly faced situations,

Answer 40

referral cycle

Question 41

Salespeople must sell the product, plus sell the prospect on providing referrals.

Answer 41

parallel referral sale

Question 42

not wanting to contact a prospect or customer

Answer 42

call reluctance

Question 43

a method of achieving an end

Answer 43

a plan

Question 44

refers to programs, goals, and problems of great importance to customers

Answer 44

strategy

Question 45

refers to planning the sales call on a customer or prospect

Answer 45

preapproach

Question 46

4 components of sales call planning

Answer 46

determining the sales call objective; (2) developing or reviewing the customer profile; (3) developing a customer benefit plan; and (4) developing the individual sales presentation based on the sales call objective, customer profile, and customer benefit plan.

Question 47

contains the nucleus of the information used in your sales presentation; thus it should be developed to the best of your ability.

Answer 47

customer benefit plan

Question 48

prospects enter this stage if they listen and enter into a discussion with you

Answer 48

interset

Question 49

Using the FAB formula (Chapter 3), strive to bring prospects from lukewarm interest to a boiling what

Answer 49

desire

Question 50

in this step strive to develop a strong belief that the product is best suited to prospects’ specific needs.

Answer 50

conviction

Question 51

Once the prospect is convinced, plan the most appropriate method of asking the prospect to make a blank

Answer 51

purchase

Question 52

devoted to a discussion of the buyer's needs

Answer 52

need-development

Question 53

the salesperson begins to take control of the conversation by restating the prospect's needs to clarify the situation

Answer 53

need awareness

Question 54

salesperson shows how the product will satisfy mutual needs

Answer 54

need fulfillment