Chapter 17 Personal Selling and Direct Marketing Strategies
1) Which of the following marketing communication tools involves a representative of a company interacting
directly with a consumer to provide information that helps the consumer make a buying decision?
A) personal selling
B) advertising
C) sponsorship
D) publicity
E) public relations
Answer: A
2) Which of the following is generally considered an advantage of personal selling over other marketing
options?
A) cost-effectiveness for marketing inexpensive products
B) the development of personal relationships with customers
C) low rates of turnover
D) low compensation costs for employees
E) the ability to reach large numbers of customers
Answer: B
3) A disadvantage of personal selling is a high turnover rate. The turnover rate refers to which of the following?
A) the rate at which prospects are turned into qualified prospects
B) the rate at which qualified prospects are turned into customers
C) the percentage of customers who stop doing business with a company in a given year
D) the percentage of a sales force that leaves a company in a given year
E) the percentage of a sales force that moves into management positions in a given year
Answer: D
4) The more ________ the product, the more likely a company is to rely on personal selling to promote it.
A) popular
B) available
C) expensive
D) impersonal
E) marketable
Answer: C
5) Which of the following is the most logical reason that an organization would rely heavily on personal
selling?
A) to make more cost-efficient use of the promotional mix
B) to move the focus away from developing customer relationships
C) to better service many small customers
D) to more effectively sell highly technical products
E) to decrease marketing mix expenditures
Answer: D
6) The general personal selling process, which is widely accepted, consists of ________ steps.
A) three
B) four
C) five
D) six
E) seven
Answer: E
7) The first step in the personal selling process is ________.
A) preapproach
B) prospecting
C) approach
D) overcome objections
E) sales presentation
Answer: B
8) Prospecting is the step in the selling process in which the salesperson ________.
A) gathers detailed information about a prospective customer before making a sales call
B) meets the customer for the first time
C) identifies potential customers
D) tells the customer the product's general benefit
E) clarifies and overcomes customer objections to buying
Answer: C
9) A prospect list that is generated internally is typically considered ________ than a prospect list generated
from external sources.
A) more expensive
B) less reliable
C) less potentially profitable
D) more in-depth
E) more valuable
Answer: E
10) Examples of ________ that can be used in the prospecting stage of personal selling include [Link],
[Link], and [Link].
A) CRM systems
B) local business publications
C) industry publications
D) professional online social networks
E) online databases
Answer: D
11) A salesperson researching a company's buying styles and product lines is most likely in the ________ stage
of the selling process.
A) overcome objections
B) preapproach
C) approach
D) sales presentation
E) close the sale
Answer: B
12) A salesperson would be most likely to use Standard & Poor's during which stage of the personal selling
process?
A) preapproach
B) approach
C) sales presentation
D) overcome objections
E) close the sale
Answer: A
13) The step that follows preapproach in the personal selling process is ________.
A) sales presentation
B) close the sale
C) overcome objections
D) prospecting
E) approach
Answer: E
14) The salesperson makes contact with the customer for the first time in the ________ step of the selling
process.
A) prospecting
B) overcome objections
C) preapproach
D) approach
E) sales presentation
Answer: D
15) During which step of the personal selling process is it MOST important for a salesperson to build rapport
with a potential customer?
A) preapproach
B) prospecting
C) follow-up
D) sales presentation
E) qualifying
Answer: D
16) A question that broadly addresses the prospect's need and offers a solution can be effective at the beginning
of the ________ step of the selling process.
A) preapproach
B) prospecting
C) follow-up
D) sales presentation
E) qualifying
Answer: D
17) Which of the following statements about consultative selling is true?
A) Consultative selling primarily uses hard-sell tactics.
B) A salesperson using consultative selling is more focused on selling products or services than on solving a
customer's problems.
C) With consultative selling, the salesperson tries to develop a win-win relationship with customers.
D) People who engage in consultative selling do not prospect for new customers.
E) Consultative selling is a short-sighted approach.
Answer: C
18) What should a salesperson do during the fifth step of the personal selling process?
A) block objections
B) anticipate and address objections
C) begin building a bridge to the next sale
D) wait for signals that the customer is ready to buy
E) indirectly ask the customer for her business
Answer: B
19) In which stage of the personal selling process would a salesperson say, "I'm able to give you a low
introductory price if you place your order by the end of the week"?
A) preapproach
B) close the sale
C) prospecting
D) overcoming objections
E) follow-up
Answer: B
20) Using an alternative close, a salesperson would ask a prospect to ________.
A) buy immediately in order to get a discount
B) choose between buying or not buying
C) choose between product features or other options
D) express any objections to buying
E) identify how much will be ordered
Answer: C
21) Using a(n) ________ close, a salesperson would ask a prospect how much she would like to order.
A) trial
B) standing-room-only
C) alternative
D) assumptive
E) follow-up
Answer: D
22) In which step in of the sales process would the salesperson call to ensure customer satisfaction and repeat
business?
A) approach
B) sales presentation
C) overcome objections
D) close the sale
E) follow-up
Answer: E
23) When a company sets out to plan, implement, and control the personal selling function, the company is
undertaking ________.
A) sales design
B) sales management
C) group sales efforts
D) co-op selling
E) sales promotion
Answer: B
24) It is the responsibility of a ________ to organize, motivate, and lead salespeople.
A) product specialist
B) customer service representative
C) sales manager
D) sales representative
E) new business developer
Answer: C
25) What is the term used to identify the individuals in a company who travel to call on customers in the field?
A) product sales force
B) outside sales force
C) inside sales force
D) industry sales force
E) customer sales force
Answer: B
26) Members of a company's ________ conduct business from their offices using telephones, emails, or visits
from prospective buyers to generate sales.
A) outside sales force
B) inside sales force
C) industry sales force
D) customer sales force
E) product sales force
Answer: B
27) A(n) ________ sales force is usually less expensive for a company to operate than a(n) ________ sales
force.
A) product line; geographic
B) product line; key account
C) industry; geographic
D) inside; outside
E) outside; inside
Answer: D
28) Which of the following is NOT part of the sales management process?
A) determining the size of the sales force
B) recruiting and hiring salespeople
C) setting company objectives
D) motivating individual salespeople
E) evaluating the performance of individual salespeople
Answer: C
29) ________ state what the sales force is expected to accomplish and when.
A) Compensation strategies
B) Key account strategies
C) Relationship objectives
D) Behavioral objectives
E) Sales force objectives
Answer: E
30) The sales management process begins with ________.
A) developing the sales force strategy
B) setting sales force objectives
C) recruiting and training the sales force
D) motivating the sales force
E) evaluating the sales force
Answer: B
31) Which of the following is an advantage of organizing the sales force by geography?
A) cost-efficiency
B) salespeople with in-depth product knowledge
C) salespeople with in-depth industry knowledge
D) stronger relationships with a company's most important customers
E) multiple salespeople calling on one customer
Answer: A
32) Kim Smith is a sales manager for a large corporation. When organizing her sales force, Kim decided to
have each selling team focus on only one very large customer. Kim has used the ________ sales force
organization.
A) geographic
B) product line
C) services
D) key accounts
E) industry
Answer: D
33) Which of the following is NOT necessarily a skill or quality possessed by an ideal salesperson candidate?
A) the ability to work as part of a team
B) the ability to work independently
C) management experience
D) strong listening skills
E) strong personal skills
Answer: C
34) Under a pay-for-performance compensation strategy, salespeople are paid based on the ________.
A) number of new customers they secure
B) product knowledge they exhibit
C) quality of their relationships with major customers
D) amount of sales or profits they deliver
E) number of sales calls they make
Answer: D
35) Through ________ used to train salespeople, all members of the sales force hear the company message at
the same time and are motivated by the energy of the meeting.
A) sales meetings
B) webinars
C) on-demand training videos
D) Web-based knowledge centers
E) podcasts
Answer: A
36) ________ is any communication addressed to a consumer that is designed to generate a response.
A) Personal selling
B) Advertising
C) Direct marketing
D) Sales promotion
E) Publicity
Answer: C
37) Which of the following is most important for direct marketing to be effective?
A) an online presence
B) a good customer database
C) a well-trained sales force
D) telephone marketing
E) catalogs
Answer: B
38) Information about a customer's age, income, and family make-up is in the ________ category of a customer
database.
A) demographic
B) psychographic
C) geographic
D) behavioral
E) assessment
Answer: A
39) Psychographics data in a customer database used by direct marketers include information regarding a
customer's ________ and ________.
A) interests; income
B) activities; opinions
C) age; buying preferences
D) opinions; age
E) hobbies; family stage
Answer: B
40) A marketer using information for a company's database of customer information such as previous inquiries,
transactions, and servers is using a(n) ________.
A) house file
B) PURL
C) ROI
D) outside list
E) inside sale
Answer: A
41) All of the following are forms of direct marketing EXCEPT ________.
A) catalogs
B) public relations
C) mail order
D) direct-response advertising
E) telemarketing
Answer: B
42) Catalogs, brochures, and product samples are all examples of which type of marketing?
A) direct-response advertising
B) mail order
C) dynamic imaging
D) Internet
E) sales promotion
Answer: B
43) Which kind of marketing involves sending a pamphlet or flyer containing an offer to a person at a particular
address?
A) direct-response advertising
B) dynamic imaging
C) catalog
D) direct mail
E) Internet marketing
Answer: D
44) ________ is direct communication to a consumer that is conducted over the telephone.
A) Direct order
B) Telemarketing
C) Direct-response advertising
D) Direct selling
E) Promotional selling
Answer: B
45) Which of the following is the most accurate name for a 30-minute television advertising program marketing
a single product?
A) sponsored entertainment
B) home shopping channel
C) integrated marketing
D) dynamic imaging
E) infomercial
Answer: E
46) Which of the following are two major forms of direct-response television marketing?
A) dynamic imaging and direct-response TV
B) home shopping channels and infomercials
C) home-selling and direct selling
D) call-in response and Web-site response
E) home shopping channels and life cycle marketing
Answer: B
47) Life cycle direct marketing is most likely to be used through which of the following?
A) infomercials
B) direct-response TV
C) email
D) telemarketing
E) direct-response advertising
Answer: C
48) A company is using ________ when it includes products targeted to specific customers, based on behavior
patterns and inventory, in emails to those customers.
A) life cycle marketing
B) direct-response advertising
C) mail ordering
D) direct mailing
E) dynamic imaging
Answer: E
49) The ________ regulates email marketing.
A) Do Not Mail List
B) Commitment to Consumer Choice
C) Direct Marketing Association
D) CAN-SPAM Act
E) Do Not Call Registry
Answer: D
50) The ________ was established by the Direct Marketing Association.
A) Do Not Mail List
B) House File
C) PURL
D) CAN-SPAM Act
E) Do Not Call Registry
Answer: A
51) A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its
products to wholesalers and cities. This is an example of ________.
A) sales promotion
B) personal selling
C) public relations
D) direct marketing
E) advertising
Answer: B
52) In which of the following situations would personal selling be the LEAST cost-effective choice?
A) a manufacturer selling a line of running shoes to a chain of department stores
B) an automobile dealer selling luxury cars
C) a real estate agent selling a home
D) a chain of supermarkets selling convenience products
E) a computer systems firm selling hardware and software to a large business
Answer: D
53) After salesperson Danny O'Reilly has made a sale, he asks his customer if she knows of anyone else who
might also be interested in buying his products. In doing so, he is ________.
A) prospecting
B) closing the sale
C) overcoming objections
D) preapproaching
E) completing follow-up
Answer: A
54) The sales force of Conway Pools has identified a number of prospects. Which of the following will most
likely occur next?
A) The outside sales force will call on all prospects.
B) The outside sales force will close the deal with one of the prospects.
C) The outside sales force will learn as much as possible about the prospects.
D) The inside sales force will attend meetings with qualified prospects.
E) The inside sales force will put together a presentation for the prospects.
Answer: C
55) Marlene Arau is a member of the sales force at Urban Fashions, a clothing manufacturer. Marlene is
preparing for a first meeting with a wholesaler who is a potential customer. Marlene is learning as much as she
can about the wholesaler's organization. Marlene is in the ________ step of the personal selling process.
A) prospecting
B) sales presentation
C) preapproach
D) approach
E) overcome objections
Answer: C
56) As the salesperson entered the prospect's office, the salesperson extended his hand and said, "Your old
college roommate, Tiara Johns, suggested I call on you." This action occurred in which stage of the personal
selling process?
A) approach
B) prospecting
C) preapproach
D) close the sale
E) follow-up
Answer: A
57) Last week, Andrew, who works for a beverage distributor, made his first sale at a new restaurant. Today,
Andrew plans to stop by the restaurant to make sure that the order has arrived and that the staff is ready to sell
the new products. Andrew is in the ________ step of the personal selling process.
A) approach
B) overcome objections
C) preapproach
D) close the sale
E) follow-up
Answer: E
58) Cybele is a part of the sales force at Lenses for Less, a company that sells contact lenses, prescription
glasses, and nonprescription glasses to consumers through direct marketing and to retail outlets through
personal selling. Cybele provides sales support for several sales representatives, creating customized sales
presentations and maintaining detailed customer information in the office as the sales representatives travel to
meet with customers. Cybele is part of the company's ________ sales force.
A) product line
B) territorial
C) direct marketing
D) inside
E) outside
Answer: D
59) Johnson Business Solutions, Inc., maintains one sales force for its copy machines and a separate sales force
for its computer systems. Johnson Business Solutions utilizes a ________ sales organization.
A) product line
B) industry
C) territorial
D) key accounts
E) complex
Answer: A
60) Lyall Electric, Inc., maintains a sales force for its small appliance customers and a separate sales force for
its automotive customers. Lyall Electric utilizes a(n) ________ sales force organization.
A) intensive
B) geographic
C) industry
D) product line
E) key accounts
Answer: C
61) Fiona Lambrech is the marketing director of a charity that raises funds to help provide educational services
to children and families in developing countries. Fiona wants to reach a selective market of individuals who
have recently donated to international charities. Which of the following types of direct marketing is Fiona most
likely to use?
A) direct-mail marketing
B) catalog marketing
C) telemarketing
D) direct-response TV marketing
E) m-commerce
Answer: A
62) Financial services provider USAA sends materials about teaching teenagers how to drive safely to USAA
customers who have children approaching driving eligibility age. USAA is using ________ information from a
customer database to determine which customers should receive the materials.
A) demographic
B) geographic
C) psychographic
D) behavioral
E) key contact
Answer: A
Refer to the scenario below to answer the following questions.
Reliable Tool Company is a manufacturer of hubs and axles for the trailer and heavy truck industry.
Although Reliable Tool only has fifteen customers, the company is the sole supplier of hub and axle
components to those customers. Monthly sales at Reliable Tool are approximately $1 million. "You might say
we have all of our eggs in one basket," says owner Arthur Deetz. Therefore, it is critical that a competent sales
force nurture those few but large accounts. Ninety-five percent of Reliable Tool's customers are located in
Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given
the nature of the industry, time spent with each customer is essential.
63) How would a key accounts sales force organization benefit Reliable Tool?
A) It would increase the amount of travel required of each Reliable Tool salesperson.
B) It would enable Reliable Tool salespeople to build close relationships with clients.
C) It would help Reliable Tool salespeople become experts on the specific parts they sell.
D) It would allow Reliable Tool management to better supervise and evaluate its salespeople.
E) It would eliminate the need for inside salespeople at Reliable Tool.
Answer: B
64) Because Reliable Tool has only a few customers, the sales force manager wants to make satisfying
customers throughout the sales process as important as making large sales. Which of the following is the best
strategy for the Reliable Tool sales manager to adopt in order to motivate the sales force to focus on customer
satisfaction?
A) paying the sales force on a straight commission
B) making commissions a large portion of each salesperson's compensation package
C) creating a recognition program for salespersons with the highest ratings on customer surveys
D) organizing the sales force by product line
E) organizing the sales force by industry
Answer: C
65) Which type of direct marketing would make the most sense for Reliable Tool to use to supplement personal
selling, considering that the company has only a few customers but very deep lines of complex products?
A) life cycle marketing
B) DRTV
C) infomercials
D) catalogs
E) email blasting
Answer: D
66) Personal selling can take place in a business or nonbusiness environment.
Answer: TRUE
67) A company that uses a pull strategy is more likely to use personal selling than a company that markets a
similar product using a push strategy.
Answer: FALSE
68) The number of salespeople in the United States is expected to continue to increase in the next five years.
Answer: TRUE
69) Virtually every salesperson follows the personal selling process to recruit new business.
Answer: TRUE
70) Sales management is responsible for supplying leads to the sales force so salespeople can focus on the
preapproach.
Answer: FALSE
71) In the personal selling process, a prospect is a potential customer.
Answer: TRUE
72) The final stage of the creative selling process is the close.
Answer: FALSE
73) Order taker and customer service representative are among the key sales roles.
Answer: TRUE
74) Few companies provide sales training beyond a few weeks or months for new members of the sales force.
Answer: FALSE
75) Today's direct marketers use databases to deliver their offerings through personalized communications to
small target groups or even individual customers.
Answer: TRUE
76) Though direct marketing permits high target-market selectivity and can be personalized, it does not allow
easy measurement of results.
Answer: FALSE
77) On average, direct marketing generates a return on investment that is less than that of nondirect marketing
communication tools.
Answer: FALSE
78) Telemarketing that is not outsourced requires relatively little financial investment from a company.
Answer: FALSE
79) Companies that use the Internet for direct marketing are required by law to post their privacy policies on
their Web sites.
Answer: FALSE
80) The Do Not Call Registry and the Do Not Mail List were both established by the federal government.
Answer: FALSE
81) Of all the ways to structure a sales force, product sales force structure is most effective in helping the
company to become more customer focused and build closer relationships with important customers.
Answer: FALSE
82) Do-not-call legislation has made telemarketing an ineffective form of direct marketing, especially for
nonprofit groups.
Answer: FALSE
83) The Internet is a more appropriate direct marketing medium for life cycle marketing than direct-response
advertising is.
Answer: TRUE
