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web.groovymark@gmail.com
- December 7, 2024
Question 21
What is the primary role of a “Missionary Salesperson”?
a) To handle technical aspects of product sales
b) To take customer orders directly
c) To provide information to those who influence purchasing decisions
d) To negotiate prices and close deals
Answer: c) To provide information to those who influence purchasing decisions
Explanation: Missionary salespeople focus on providing information to key influencers in the buying process, rather than directly closing sales.
Question 22
Which of the following is a key characteristic of consultative selling?
a) Focusing on product features and pricing
b) Building long-term relationships by understanding customer needs
c) Using one standard sales script for all customers
d) Offering large discounts to close deals quickly
Answer: b) Building long-term relationships by understanding customer needs
Explanation: Consultative selling emphasizes understanding customer needs and offering tailored solutions, often resulting in long-term relationships.
Question 23
Which term describes the activities involved in planning, implementing, and controlling the physical flow of goods from point of origin to point of consumption?
a) Distribution channels
b) Market segmentation
c) Logistics
d) Procurement
Answer: c) Logistics
Explanation: Logistics involves managing the flow of goods to ensure they are delivered to the right place at the right time.
Question 24
Which phase in the CRM cycle is primarily focused on customer interaction?
a) Knowledge discovery
b) Market planning
c) Customer interaction
d) Analysis and refinement
Answer: c) Customer interaction
Explanation: Customer interaction occurs at the touchpoints where customers directly engage with the company, influencing their overall experience.
Question 25
What is the key purpose of a sales quota?
a) To reduce the number of products sold
b) To increase marketing efforts
c) To set performance targets for sales representatives
d) To determine the pricing of products
Answer: c) To set performance targets for sales representatives
Explanation: Sales quotas are goals set for sales teams or representatives to ensure they meet specific performance targets, such as revenue or units sold.
Question 26
What is the role of an “Account-Based Marketing” (ABM) strategy?
a) To target individual consumers
b) To concentrate resources on a specific set of target accounts
c) To sell as many products as possible to any market
d) To rely on social media for all marketing efforts
Answer: b) To concentrate resources on a specific set of target accounts
Explanation: ABM focuses on targeting key accounts with personalized campaigns, optimizing sales and marketing efforts for those accounts.
Question 27
Which of the following describes the “Pareto Principle” often applied in sales?
a) 20% of activities account for 80% of results
b) 80% of products result in 20% of revenue
c) 80% of customers generate 80% of sales
d) 20% of sales are driven by 80% of customers
Answer: a) 20% of activities account for 80% of results
Explanation: The Pareto Principle suggests that a small percentage of activities or inputs often account for a large percentage of outcomes or results.
Question 28
What is the key goal of “Upselling”?
a) Encouraging customers to buy more of the same product
b) Offering complementary products to customers
c) Showing customers a higher-end version of a product
d) Reducing the cost of a purchase
Answer: c) Showing customers a higher-end version of a product
Explanation: Upselling involves suggesting higher-end products to customers in order to increase the value of a sale.
Question 29
Which term refers to the process of gaining new customers by persuading them to purchase a company’s products or services?
a) Customer retention
b) Customer profitability
c) Customer acquisition
d) Customer interaction
Answer: c) Customer acquisition
Explanation: Customer acquisition refers to the process of attracting and converting new customers to purchase a company’s products or services.
Question 30
What is the purpose of using “SPIF” (Sales Performance Incentive Fund)?
a) To offer stock options to employees
b) To motivate sales of specific products
c) To track customer feedback
d) To reduce overhead costs
Answer: b) To motivate sales of specific products
Explanation: SPIF is a financial incentive used to encourage sales teams to focus on selling specific items or product lines.
Question 31
What does the “customer focus” aspect of CRM emphasize?
a) Increasing sales calls to potential customers
b) Improving customer experience by tracking interactions across all touchpoints
c) Reducing the cost of marketing to existing customers
d) Predicting customer satisfaction levels
Answer: b) Improving customer experience by tracking interactions across all touchpoints
Explanation: Customer focus in CRM aims to enhance the customer experience by capturing interactions at all points of contact with the organization.
Question 32
Which of the following is an example of a fringe benefit?
a) Base salary
b) Commission
c) Health insurance
d) Performance bonuses
Answer: c) Health insurance
Explanation: Fringe benefits are non-salary compensations provided to employees, such as health insurance, retirement plans, or paid leave.
Question 33
What type of reward is considered intrinsic?
a) A merit-based pay increase
b) Recognition from a manager
c) Job satisfaction from completing a challenging task
d) A quarterly bonus
Answer: c) Job satisfaction from completing a challenging task
Explanation: Intrinsic rewards come from within, such as personal satisfaction or a sense of achievement, unlike extrinsic rewards which are provided externally.
Question 34
Which of the following measures the average dollar value of purchases made by a customer?
a) Sales quota
b) Average purchase value
c) Customer Lifetime Value (CLV)
d) Lead conversion rate
Answer: b) Average purchase value
Explanation: Average purchase value measures the average amount spent by a customer per transaction, helping businesses understand spending patterns.
Question 35
What is a key disadvantage of adopting a matrix organizational structure?
a) It reduces collaboration between teams
b) It leads to power struggles and confusion among team members
c) It increases decision-making efficiency
d) It reduces flexibility in handling projects
Answer: b) It leads to power struggles and confusion among team members
Explanation: A matrix structure can cause confusion due to overlapping responsibilities and authority, leading to potential conflicts.
Question 36
In the AIDA model, what does the “D” stand for?
a) Desire
b) Decision
c) Demand
d) Delivery
Answer: a) Desire
Explanation: The "D" in AIDA stands for "Desire," which reflects the stage where potential customers develop a want or need for the product or service being offered.
Question 37
What type of data is captured by Customer Relationship Management (CRM) systems?
a) Financial data only
b) Customer transaction history and interactions
c) Employee satisfaction data
d) Supplier contract details
Answer: b) Customer transaction history and interactions
Explanation: CRM systems collect and store customer-related data, including transaction history, preferences, and interactions, to improve customer service and sales.
Question 38
What is the main difference between transactional selling and relationship selling?
a) Transactional selling focuses on building long-term relationships
b) Transactional selling focuses on one-time sales, while relationship selling focuses on long-term customer engagement
c) Transactional selling focuses on providing advice and recommendations
d) Transactional selling offers personalized solutions for customers
Answer: b) Transactional selling focuses on one-time sales, while relationship selling focuses on long-term customer engagement
Explanation: Transactional selling aims for quick sales with minimal customer interaction, whereas relationship selling emphasizes long-term engagement and loyalty.
Question 39
In the sales process, what is the purpose of prospecting?
a) Closing deals
b) Managing customer relationships
c) Identifying potential customers
d) Negotiating prices
Answer: c) Identifying potential customers
Explanation: Prospecting is the first step in the sales process, where sales representatives search for and identify potential customers who may be interested in their products or services.
Question 40
What is the purpose of a “Sales Growth” metric?
a) To track the number of customers added over time
b) To measure changes in sales volume or revenue over time
c) To identify underperforming sales representatives
d) To evaluate customer satisfaction levels
Answer: b) To measure changes in sales volume or revenue over time
Explanation: Sales growth measures how sales performance improves or declines over a specific period, such as month-over-month or year-over-year.
