nAmIB I A U n IVERS lTV OF SCIEnCE AnD TECHnOLOGY

FACUL TV OF MANAGEMENT SCIENCES

DEPARTMENT OF MARKETING AND LOGISTICS

QUALIFICATION: BACHELOR OF MARKETING

QUALIFICATION CODE: 07BMAR LEVEL: 6

COURSE CODE: POS611S COURSE NAME: PRINCIPLES OF SELLING

SESSION: JUNE 2016 PAPER: THEORY

DURATION: 3 HOURS MARKS: 100

FIRST OPPORTUNITY EXAMINATION QUESTION PAPER

EXAMINER(S) MR. CLEMENS KAZONDOVI

MODERATOR: MR. VETIRA HIJAMITA

INSTRUCTIONS 1. Answer ALL the questions.

2. Write clearly and neatly.

3. Number the answers clearly.

THIS QUESTION PAPER CONSISTS ｏｆｾ＠ PAGES {Including this front page)

SECTION A Question 1

Multiple choice questions

Choose the correct answer and use the table provided on [page 8] to answer these questions, detach and insert it into your answer booklet. 2 marks will be awarded for each correct answer.

15 x 2 = 30 Marks]

1.1 Which of the following is most important when selecting a wardrobe for sales work? A) fabric content B) appropriateness C) current fashion D) comfort E) cost

1.2 Which of the following is the best way of speaking to customers? A) very quickly B) very slowly C) with energy D) with little feeling E) with a strong accent

1.3 All of the following are components of the CARE model for building relationships with customers EXCEPT: A) convincing B) executing C) responding D) appreciating E) customizing

1.4 A sales rep is in a foreign country and has spent several days with a buyer for a large chain of convenience stores there. At the end of the week, the sales rep feels confident that the buyer is ready to purchase, so he asks for the close. The buyer responds that he will be happy to place a large order for the chain as soon as the sales rep gives him an appropriately-sized gift. What should the sales rep most likely do? A) The sales rep should give the buyer the gift. B) The sales rep should tell the buyer that Americans are not allowed to give gifts in exchange for business. C) The sales rep should convince the buyer that he will give him the gift after the papers are signed, and then refuse to give a gift after the order has been paid. D) The sales rep should consult with his sales manager to determine if gift-giving is an ethical and acceptable practice within the confines of an international business situation. E) The sales rep should give the buyer the gift but make this conditional on a longer-term relationships involving repeat orders.

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1.5 Which of the following would be most helpful to salespeople in dealing with bribery? A) a well-established corporate policy on bribing B) knowing that bribery is sometimes illegal C) knowing that bribery is often unethical D) a sales manager who has given bribes in the past E) college coursework on bribery

1.6 During a presentation, when communicating the value proposition to the customer, Jenny (who sells customized buses like the ones bands use while on road tours) should most likely focus on: A) the features that make the bus special B) how much money driving a bus saves over chartering a plane C) how the bus will solve problems for the customer D) the gas mileage the bus gets E) the materials used in the modification of the bus

1. 7 Right before graduation, Ronny receives two job offers. One is for a sales position and offers a base salary of N$30,000 plus commissions . The other is for a marketing assistant position and offers a straight salary of N$40,000. Which of the following is likely to be true about the two positions? A) The sales job could end up paying more than the marketing job if Ronny does well and makes more than N$1 0,000 in commissions . B) The sales and marketing positions will have roughly equivalent duties, but different salaries. C) Ronny will need more training to do the marketing job than to do the sales job. D) The marketing job pays more in salary because it is more demanding than the sales job is. E) The sales job relies more on personality and the marketing job relies more on skills.

1.8 A buyer's resistance to a salesperson's product is usually caused by: A) the salesperson failing to negotiate well B) another product satisfying the buyer's needs C) friends and acquaintances recommending the product D) the product's advanced stage in the product life cycle E) the product's price being equal to the buyer's current product

1.9 When using graphs and charts in a presentation, the salesperson should most likely: A) assume the customer will understand them

B) move past them quickly C) interpret them for the customer D) assume the customer will read them after the presentation E) bring only one or two hard copies, even when presenting for a group because they can share it.

1.1 0 If the customer's problem is not solved by any of the products or services the salesperson

sells, then it is most appropriate for the salesperson to: A) conduct a team-selling presentation to persuade the customer B) ask more summary questions C) request a second meeting in the future D) repeat the need-satisfaction presentation E) recommend another source

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1.11 Before the salesperson makes an approach, he or she needs to plan the: A) implementation B) solution C) presentation D) close E) preapproach

1.12 Which step in the presentation plan involves reviewing goals and making initial contact? A) approach B) needs identification C) presentation D) negotiation E) close

1.13 Marco asks his manager to listen in while he makes calls one day to help him figure out what he could be doing better. The manager concludes that Marco is doing an excellent job of building rapport but is not qualifying prospects as he talks to them. The manager suggests that Marco spend less time talking about the prospect's personal details and: A) more time talking about the features of the product B) focus on non-verbal ways to build rapport with the prospect, such as making active listening noises C) keep a list of qualifying questions in front of him so he makes sure to ask each one of them during the call

D) practice his elevator pitch so he can help the prospect understand the product more quickly, since they do not have time on the phone to do a long pitch E) instead, talk about himself so the prospect will be able to trust him more easily

1.14 A purchase based on the result of an objective review of available information is based on a(n): A) product buying motive B) patronage buying motive C) rational buying motive D) emotional buying motive E) stable buying motive

1.15 Phil has observed that today's car buyers are more knowledgeable than car buyers in the past, primarily due to the Internet. Such car buyers gather information on all aspects of a car, from the manufacturing process to service contracts, and they respond best to a value-added selling strategy. What advice should Phil most likely give to his sales team when they are faced with such knowledgeable buyers? A) Drop the price significantly under the list price. B) Create rapport with the buyer to build instant customer loyalty. C) Tailor the product to the buyer's needs and provide superior service. D) Augment the product by adding extra features for only a minimal fee. E) Appeal to the buyer's sense of style and luxury through differentiation.

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Question 2

True or False Questions

Use the table provided on [page 8] to answer these questions, detach and insert it into your answer booklet. 1 mark will be awarded for each correct answer. [20 x 1 = 20 Marks]

2.1 Firms that hire professionals such as accountants and engineers always hire separate sales staff so the professionals do not have to sell.

2.2 The secondary goal of a "detail" salesperson is to develop goodwill and stimulate demand for products.

2.3 A sales representative for Dell who is selling a new form of sophisticated routing-to-server software would probably be classified as a sales engineer.

2.4 A company that ignores the marketing concept will not have any negative effects as long as the sales reps do their work.

2.5 Value-added selling can be defined as a series of creative improvements within the sales process that enhance the customer experience.

2.6 E-commerce has contributed to the increase in popularity of transactional selling.

2.7 Consultative-style selling practices have become popular because they can be easily mastered.

2.8 Many business organizations, professional associations and certification agencies have established written codes of ethics.

2.9 It is almost impossible for management to develop guidelines for sales personnel regarding the giving of gifts to customers.

2.1 0 Ego drive is an inner force that propels a salesperson to attempt to close a sale.

2.11 The steps of self-improvement include setting goal, engaging in visualization, using positive self-talk, and rewarding your progress.

2.12 Probing questions help you to uncover and clarify the prospect's buying problem and the circumstances surrounding the problem.

2.13 A well-prepared salesperson will not find it necessary to recommend that a prospect purchase a product from another source.

2.14 When closing a sale, it is a good time to deal with controversial areas and problems.

2.15 As a general rule, a salesperson should ask for the sale no more than three times.

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2.16 When a customer says "no," there is no chance that the decision can be changed, so a salesperson should leave the office quickly.

2.17 Patronage buying motives are particularly important when product offerings from several companies are very similar.

2.18 A good way to get the prospect's attention would be to use the customer benefit approach.

2.19 The transition from the pre-approach to the approach is sometimes blocked by sales call reluctance.

2.20 In most situations, the involvement of technical experts on a sales team lengthens the selling cycle.

SECTION B

[Total 50 Marks]

Question 1 (20 marks)

1.1 Why should salespeople establish multiple-objective sales presentations? Explain. List and Discuss four (4) possible objectives that would be appropriate for Step one-Approach and Step two- Need Discovery of the Presentation Process. (10 marks)

1.2 The attitude you display towards your competition is of utmost importance. Every sales person should develop a set of basic beliefs about the best way of dealing with competing products. Name and Discuss (5) beliefs that you might have as a guideline. (10 marks)

Question 2 - Case Study (30 marks)

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Source: Manning, G.L. , Ahearne, M., & Reece, B. L. (2014) Selling today: Partnering to create value. (13th Edition)

Ray Perkins has been employed at Grant Hickman Real Estate for almost two years. Prior to receiving his real estate license, he was a property manager with a large real estate agency in another community. During his first year with Grant, he was assigned to the residential property division and sold properties totalling $825,000. He then requested and received a transfer to the commercial division.

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Three months ago, Ray obtained a commercial listing that consisted of 26 hectares (square kilometre) of land near a growing residential neighbourhood. The land is zoned commercial and appears to be ideally suited for a medium-sized shopping centre. Ray prepared a detailed prospectus and sent it to Vera Maynard, president of Mondale Growth Corporation, a firm specializing in development of shopping centres. One week later he received a letter from Ms. Maynard requesting more information. Shortly after receiving Ray's response, Ms. Maynard called to set up an appointment to inspect the property. A time and date were finalized, and Ray agreed to meet her plane and conduct a tour of the property. Ray is a quiet, amiable person who displays the Supportive communication style. Friends say that they like to spend time with him because he is a good listener.

Questions

2.1) If Ms. Maynard displays the characteristics of the Directive communication style, how should Ray conduct himself during the meeting? Be specific with five (5) examples as you describe those five (5) behaviours that would be admired by Ms. Maynard. (10 marks)

2.2) If Ms. Maynard wants to build a rapport with Ray Perkins, what behaviour should she display? Be specific with (5) examples as you describe those (5) behaviours that would be admired by Ray.

(10 marks)

2.3) It is not a good idea to put a label on someone and then assume the label tells us everything about the person. As Ray attempts to build rapport with Ms. Maynard, what other five (5) personal characteristics should he try to identify and why these five (5) characteristics?

(10 marks)

Total100 marks

(END)

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