Notes:

Question 1

What information is required when planning a sales call?
A. Only the names of top executives and contact info.
B. Buying center roles, purchasing requirements, competition analysis.
C. Company website design and social media presence.
D. Recent marketing campaign details.

Answer 1

B. Buying center roles, purchasing reqs, and competition analysis

Question 2

When is a market-centered sales force structure preferable?
A. When the product is highly technical
B. When customer needs are complex or diverse
C. When the company operates only in one location
D. When sales reps have limited product knowledge

Answer 2

B. When customer needs are complex or diverse

Question 3

Which of the following best describes the role of a Key Account Manager (KAM)?
A. Focuses on transactional sales with many small clients
B. Performs mainly cold calls and territory prospecting
C. Manages strategic, long-term relationships with few high-value clients
D. Tracks inventory and processes returns

Answer 3

C. Manages strategic, long-term relationships with few high-value clients

(KAM = Melanie, Shawn, LeeAnn, Trey)

Question 4

How does sales training help reduce recruiting costs?
A. It eliminates the need for any new hires
B. It improves retention and shortens ramp-up time for new hires
C. It increases the cost of onboarding
D. It replaces the need for external HR support

Answer 4

B. It improves retention and shortens ramp-up time for new hires

Question 5

Which skill is most associated with high-performing salespeople?
A. Reliance on scripts and automation
B. Strong focus on daily task completion
C. Consultative, value-based selling and emotional intelligence
D. Avoiding risk by sticking to known accounts

Answer 5

C. Consultative, value-based selling and emotional intelligence

Question 6

What does “dispersion” refer to in a sales territory analysis?
A. The variety of products sold
B. The geographic spread of customers
C. The number of competitors
D. The frequency of sales call

Answer 6

B. The geographic spread of customers

Question 7

Which of the following best supports salesperson satisfaction?
A. Autonomy, recognition, and growth opportunities
B. Reducing commissions to save costs
C. Assigning more admin work to reduce field time
D. Strict oversight and micromanagement

Answer 7

A. Autonomy, recognition, and growth opportunities

Question 8

What is a key step in enhancing salesperson job satisfaction?
A. Assigning high-pressure sales quotas
B. Limiting strategy involvement
C. Providing recognition and tools for success
D. Minimizing feedback to avoid conflict

Answer 8

C. Providing recognition and tools for success

Question 9

What is a likely consequence of poor territory alignment?
A. Increased product returns
B. Improved morale and fairness
C. Higher marketing expenses
D. Unequal opportunities and compensation imbalances

Answer 9

D. Unequal opportunities and compensation imbalances

Question 10

Which accounts should be prioritized for major investment in the Sales Resource Opportunity Grid?
A. Low opportunity, high attractiveness
B. High opportunity, high attractiveness
C. Low opportunity, low attractiveness
D. High opportunity, low attractiveness

Answer 10

B. High opp & high attractiveness

Question 11

Polymath:

Answer 11

-person whose knowledge spans many different subjects

Question 12

The Formal Sales Process:

-A structured series of steps firm’s follow in order to identify prospects & close sales.

Answer 12

1) Prospect for Sales Leads: Gather potential customer information.
2) Make the Initial Contact: Reach out to the prospects.
3) Qualify the Lead: Determine if the prospect has the potential to become a customer.
4) Make the Sales Presentation: Present the product or service to the prospect.
5) Meet Objections & Concerns: Address any questions or concerns the prospect may have.
6) Close the Sale: Finalize the sale agreement.
7) Follow Up: Ensure customer satisfaction and build long-term relationships.

Question 13

Guerilla Marketing:

Answer 13

-an Unconventional & Low-Cost marketing strategy designed to achieve maximum exposure w/ minimal resources, often relying on Ingenuity, Cleverness, & Surprise rather than traditional techniques.

Question 14

Basic Types of Accounting:

Answer 14

Managerial Accounting –
-providing information to internal management for decision-making.

Question 15

Company Brand:

Answer 15

Set of Attributes:
-unique identity
-image
-perception of a company
(seen by public, encompassing its name, logo, values, & reputation)

Question 16

Tagline:

Answer 16

-catchy phrase a firm consistently uses to reinforce its position in the marketplace.
-used in a firm’s Literature, Advertisements, Stationery, Social Media Platforms, & even Invoices. (“Ace is the Place”)

Question 17

Intellectual Property (IP):

-inventions
-artistic works
-symbols
-names
-images

Answer 17

Creations of the Mind Protected by Law through:
-Patents
-Copyrights
-Trademarks
-Trade Secrets

Question 18

Intellectual Property Audit:

Answer 18

-systematic review of a company’s IP assets to assess their value, ensure protection, & identify potential risks or opportunities.

Question 19

Patents:

(usually 20 years)

Answer 19

-legal rights granted to inventors to exclude others from making, using, or selling their invention for a set period (usually 20 years), in exchange for public disclosure of the invention.

Question 20

3 Basic Requirements for a Patent to be Granted:

Answer 20

1) Novelty-
-invention must be new

2) Non-Obviousness-
-must not be obvious to someone skilled in the field

3) Utility-
-must be useful

Question 21

• Trademarks: *

Answer 21

-any word, name, symbol, or device that identifies the source or origin of products/services that distinguishes them from other products/services.

Question 22

Service Marks:

Answer 22

-type of Trademark that specifically identifies & distinguishes the Source of a Service rather than a product.

Question 23

U.S. Patent & Trademark Office: (USPTO)

Answer 23

-federal agency responsible for Granting Patents & Registering Trademarks in the U.S.

Question 24

Copyrights:

-books
-music
-software
-art

Answer 24

-legal protection for original works of authorship, giving the creator exclusive rights to use, reproduce, & distribute the work.

Question 25

Trade Secrets:

Answer 25

-any formula, pattern, physical device, idea, process, or other information that provides the owner of the information w/ a competitive advantage in the marketplace.

Question 26

Economic Espionage Act: (1996)

Answer 26

-U.S. law that makes theft/misappropriation of Trade Secrets a federal crime (especially when done to benefit a foreign entity).

Question 27

Quality Control:

Answer 27

-processes & procedures used to ensure that a product or service meets defined standards of quality & consistency.

Question 28

Adverse Selection: ex.) higher-risk individuals are more likely to buy insurance

Answer 28

-situation where one party in a transaction has more or better info. than the other (often leading to negative outcomes)

Question 29

* Organizational Life Cycle: *

Answer 29

-stages a business goes through from Inception to Decline, typically including Startup, Growth, Maturity, & Renewal or Decline.

Question 30

* Economy of Scale: *

Answer 30

-cost advantages that a business obtains due to expansion, resulting in a reduction in per-unit cost as output increases.

Question 31

* Economy of Scope: *

Answer 31

-cost advantages that result from a company offering a Variety of products rather than specializing in a single product.

Question 32

* 10 warning signs that a Business is Growing Too Fast: *

Answer 32

-Cash flow shortages -Customer complaints -Declining product/service quality -Inability to meet demand -High employee turnover -Increasing debt

Question 33

Types of Growth: (2)

Answer 33

ORGANIC GROWTH- -expansion from within the company ex.) increased sales INORGANIC GROWTH- -expansion through acquisitions, alliances, or mergers.

Question 34

* Types of Franchises: *

Answer 34

Business Format Franchise- -includes entire business concept, brand, marketing, & operations. Product Distribution Franchise- -focuses on distribution of products.

Question 35

Advantages of Buying a Franchise:

Answer 35

Established Brand Recognition- ex.) opening a Chick-fil-A gives you instant customer trust compared to starting a new chicken brand from scratch. Proven Business Model- -lower risk due to a system that’s already worked in other locations. Training & Ongoing Support- -franchisors often provide training in operations, hiring, and marketing. Marketing Resources- -access to national ad campaigns, branded materials, & promotions. Easier Access to Financing -banks may be more willing to lend when there’s a known franchise involved.

Question 36

Disadvantages of Buying a Franchise:

Answer 36

High Initial & Ongoing Costs- ex.) McDonald’s requires a large upfront investment & royalty payments. Limited Creative Control- -you must follow franchisor rules on layout, menu, pricing, etc. Strict Operational Guidelines- -everything from uniforms to store hours is often regulated. Reputation Tied to the Brand- -if other franchisees perform poorly, your location can suffer too. Challenges in Ending or Selling the Franchise- -transfer & exit clauses can be complex/restrictive.

Question 37

Costs that are typically associated w/ Buying a Franchise:

Answer 37

-initial franchise fee -ongoing royalties -marketing fees -equipment & inventory costs -training expenses

Question 38

Situation when Franchising is Typically Appropriate:

Answer 38

When a business model is: -proven -easily replicable -can be standardized across locations

Question 39

Franchise Agreement: -Legally binding contract between franchisor & franchisee outlining the Terms, Conditions, & Obligations of both parties in the franchise relationship. Franchise Disclosure Document (FDD): -Comprehensive legal document required by the FTC that provides prospective franchisees w/ detailed information abt. the franchisor, the franchise system, fees & obligations BEFORE a franchise is purchased. 21 points Franchise Arrangement: Overall relationship & structure between franchisor & franchisee, including… -rights -responsibilities -operational framework Market Penetration Strategy: A growth strategy focused on increasing sales of existing products or services within the current market, often through… -Pricing -Promotion -Increased Distribution Keys to effective new product development: Understanding customer needs Fostering innovation Rapid prototyping Iterative testing Cross-functional collaboration Clear go-to-market strategies Foreign Market Entry Strategies: -Methods for entering international markets, such as exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries. External Growth Strategies: -Business expansion through mergers, acquisitions, alliances, or partnerships rather than internal development. Strategic alliances focused on Marketing: -Partnerships between companies to collaborate on marketing efforts, share channels, or co-brand products to reach wider audiences. Advantages of participating in Strategic Alliances & Joint Ventures: Access to new markets Shared resources Risk sharing Enhanced capabilities Disadvantages of participating in strategic alliances & joint ventures: Potential for conflict Loss of control Cultural mismatches Sharing of proprietary information VRINE: A framework for evaluating resources and capabilities based on 5 criteria: Value, Rarity, Inimitability, Non-substitutability, & Exploitability, used to assess competitive advantage.

Question 40

BMW (case):

Answer 40

Barriers to Entry: -strength of management team & brand loyalty. -complexed ecosystem that they work within

Question 41

ABC-Google (case):

Answer 41

Single Biggest Factor: Innovation in online advertising. Barriers to Entry: First-mover advantage & unique business model. Intangible Assets: Brand recognition & proprietary algorithms.

Question 42

ZO Rooms (case):

Answer 42

Single Biggest Factor: Affordable & standardized accommodation. Business Model: Aggregating budget hotels & providing a standardized experience. Barriers to Entry: Unique business model & first-mover advantage. Intangible Assets: Network of hotel partnerships & brand recognition.

Question 43

Pfizer (case):

Answer 43

Single Biggest Factor: Research & development capabilities. Business Model: Developing, manufacturing, & selling pharmaceuticals. Barriers to Entry: Passion of management team & employees. (unique business model) Intangible Assets: Patents, brand reputation, & R&D expertise. Alternatives: Generic drug manufacturers & other pharmaceutical companies.