Sales Promotions & Personal Selling MCQ Quiz - Objective Question with Answer for Sales Promotions & Personal Selling - Download Free PDF

The correct answer is Unique Selling Point.

Key PointsUSP stands for Unique Selling Point. It is a marketing term that refers to the unique benefit that a product or service offers that distinguishes it from its competitors. The USP is what makes a product or service stand out from the crowd and gives customers a reason to choose it over the competition.

A good USP should be:

• Unique: The USP should be something that no other product or service offers.
• Perceptible: The USP should be something that customers can understand and appreciate.
• Important: The USP should be something that is important to customers and that they are willing to pay for.
• Difficult to Copy: The USP should be something that is difficult for competitors to copy.

 Hence, the correct answer is Unique Selling Point.

The correct answer is - Difficulty of getting right kind of salesman

Key Points

• Difficulty of getting right kind of salesman
  • Finding the right kind of salesman is critical for effective personal selling.
  • The salesman needs to have a specific skill set, including excellent communication skills, product knowledge, and the ability to build relationships.
  • Recruitment and training processes can be time-consuming and costly.
  • An inadequate salesman can lead to poor customer relations and lost sales opportunities.

Additional Information

• Characteristics of a good salesman
  • Possesses excellent communication skills to effectively convey product benefits.
  • Has in-depth product knowledge to answer customer queries and provide accurate information.
  • Shows strong interpersonal skills to build and maintain customer relationships.
  • Demonstrates problem-solving abilities to address customer concerns and objections.
• Challenges in personal selling
  • High costs associated with recruiting, training, and maintaining a sales force.
  • Potential for inconsistent performance among salespeople, affecting overall sales effectiveness.
  • Difficulty in maintaining uniformity in the sales message and approach.
  • Managing sales territories and ensuring adequate coverage can be complex.

The correct answer is B, A, D, C, E.

Key Points The correct sequence is:

Gathering relevant information about the prospects and their needs to plan the sales presentation (B): Before engaging with the customer, it is crucial to gather information about the prospect, their business, challenges, and needs. This step helps in tailoring the sales presentation to address specific customer requirements.

Making an appointment with the customer to establish rapport (A): Once the relevant information is collected, the salesperson can schedule an appointment with the customer. This step involves establishing initial contact, building rapport, and setting the stage for a productive sales conversation.

Discovering, clarifying, and understanding the buyer's needs (D): During the sales meeting, the salesperson should focus on understanding the buyer's needs and challenges. This involves asking open-ended questions, actively listening, and probing to gather deeper insights into the customer's requirements.

Handling customer's objections related to price/value/functionality of the product (C): As the sales presentation progresses, the customer may raise objections or concerns regarding the price, value, or functionality of the product. The salesperson should be prepared to address these objections by providing relevant information, offering solutions, and emphasizing the value proposition of the product.

Gaining buyer's commitment to action (E): Once the objections have been addressed and the customer's needs have been thoroughly understood, the salesperson aims to gain the buyer's commitment to take action. This step involves presenting the benefits of the product, demonstrating its value, and proposing a clear call to action, such as making a purchase or signing a contract.

Therefore, the correct sequence is: B, A, D, C, E.

The correct answer is Sales Promotion.

Key PointsA group of marketing strategies known as sales promotion attempt to increase demand for certain items and raise consumer awareness of brands. Due to its limited duration, it fosters a sense of urgency, produces new leads, and maintains the interest of current clients.

Important PointsSales Promotion: A transitory campaign or offer is used by a company as part of a sales promotion to raise interest or demand in its product or service.

Types of Sales Promotion

1. Competitions and challenges
2. Product bundles
3. Flash sales
4. Free trials
5. Free shipping and/or transfers
6. Free products
7. Early-bird or first-purchaser specials
8. BOGO specials: BOGO, or “buy one, get one free” 
9. Discount Coupons and vouchers
10. Upsell specials 
11. Subscriptions
12. Donations

Additional Information

1. Channel Distribution: A good or service's path from production to consumer is known as a distribution channel. The distribution channel clarifies how your company may get your goods in front of customers.
2. Personal Selling: In order to offer a product or service, a salesperson must personally meet with a potential customer or customers.
3. Advertising: According to the Advertising Association of the UK, advertisements are messages that are sent and paid for by their senders with the intention of informing or influencing the recipients.

Selling the products only through a single wholesaler or retailer is called an exclusive distribution strategy.

• Exclusive distribution is a mechanism of distributing goods wherein the manufacturer gives sole & special rights to one distributor to sell the goods.
• The exclusive distribution gives the single distributor authority to sell the goods in a particular region.
• In this, the role of wholesalers is minimized.
• Some key elements of exclusive distribution are Single branding by the distributor, Exclusive territory rights to sell goods, No role of wholesalers, and Exclusivity of high-quality goods.
• For instance, high-quality premium products usually utilize the exclusive distribution channel. Some key products like cars, furniture brands, exclusive clothing lines, premium watches, etc use this distribution channel. This maintains exclusivity as well as brand loyalty.

Additional Information 

Extensive Distribution Strategy:

• Under the extensive distribution strategy, all the possible outlets are used by a company to distribute its product from a small vendor to a big store.
• Virtually, a customer will be able to find the product everywhere he goes.
• Soft drinks and cigarettes are some of the examples on which intensive distribution is followed.
• Extensive Distribution Strategy is also known as Mass Distribution Strategy.

Therefore, a salesperson who has a customer relationship, selling products is said to be involved in Cross-selling.

The correct answer is All of the above.

Key PointsPersonal selling - Personal selling is one-on-one face-to-face sales where the salesperson tries to persuade the customer to purchase a product recommended by the firm.

Important PointsTwo-way conversation -The ideal instrument for selling to individuals is this. Personal selling is an Oral communication & Conversation with customers. Salespeople can collect client feedback and give them the essential information about the company's offer.

Face to face interaction or Personal Attention -  Personal selling is concentrated and is focused on one person, and since publicity and advertising are mass communication instruments, the outcomes will be ineffectual.

Thus, Personal selling includes Oral communication, Face to face interaction & Conversation with customers.

Personal selling is also known as face to face selling in which one person who is acting as a salesman will try to convince the customer to purchase the product.

Therefore, we can conclude that option 3) is the correct answer.

Steps in the Personal Selling Process:

1. Prospecting
2. Pre-approach
3. The approach
4. Sales Presentation 
5. Handling the Objectives
6. Closing the Sale
7. Follow Up

Therefore, from the above explanation, it is clear that both statements are not correct.

The correct answer is B, A, D, C, E.

Key Points The correct sequence is:

Gathering relevant information about the prospects and their needs to plan the sales presentation (B): Before engaging with the customer, it is crucial to gather information about the prospect, their business, challenges, and needs. This step helps in tailoring the sales presentation to address specific customer requirements.

Making an appointment with the customer to establish rapport (A): Once the relevant information is collected, the salesperson can schedule an appointment with the customer. This step involves establishing initial contact, building rapport, and setting the stage for a productive sales conversation.

Discovering, clarifying, and understanding the buyer's needs (D): During the sales meeting, the salesperson should focus on understanding the buyer's needs and challenges. This involves asking open-ended questions, actively listening, and probing to gather deeper insights into the customer's requirements.

Handling customer's objections related to price/value/functionality of the product (C): As the sales presentation progresses, the customer may raise objections or concerns regarding the price, value, or functionality of the product. The salesperson should be prepared to address these objections by providing relevant information, offering solutions, and emphasizing the value proposition of the product.

Gaining buyer's commitment to action (E): Once the objections have been addressed and the customer's needs have been thoroughly understood, the salesperson aims to gain the buyer's commitment to take action. This step involves presenting the benefits of the product, demonstrating its value, and proposing a clear call to action, such as making a purchase or signing a contract.

Therefore, the correct sequence is: B, A, D, C, E.

A sales technique or selling method is used by a salesperson or sales team to create revenue and help sell more effectively. The technique typically isn't a one-size-fits-all and is often refined through trial and error based on past experiences.

Upselling

• Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue.
• It usually involves marketing more profitable services or products, it can be simply exposing the customer to other options that were perhaps not considered. 
• For example, a housekeeping service might upsell a customer buying a weekly cleaning package by offering a package with more rooms, and cross-sell by also offering a carpet deep cleaning service.

• Cross-selling is the process of selling a different product or service to a customer to increase the value of a sale. It is often confused with upselling, which is anything that increases the price and functionality of the original purchase.
  • Example: A sales representative at an electronics retailer suggests that the customer purchasing a digital camera also buy a memory card. A new car dealer suggests the car buyer add a cargo liner or other after-market product when making the initial vehicle purchase.
• Down-selling is the technique of offering a more budget-friendly alternative to the product or service initially considered by the customer. While higher-priced items have a better profit margin, down-selling helps you close a sale even when the customer cannot afford to buy a premium product.
• Suggestive selling (also known as add-on selling or upselling) is a sales technique where an employee asks a customer if they would like to include an additional purchase or recommends a product that might suit the client.

Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue. Therefore Option 3 is the correct answer.

Therefore, a salesperson who has a customer relationship, selling products is said to be involved in Cross-selling.

Selling the products only through a single wholesaler or retailer is called an exclusive distribution strategy.

• Exclusive distribution is a mechanism of distributing goods wherein the manufacturer gives sole & special rights to one distributor to sell the goods.
• The exclusive distribution gives the single distributor authority to sell the goods in a particular region.
• In this, the role of wholesalers is minimized.
• Some key elements of exclusive distribution are Single branding by the distributor, Exclusive territory rights to sell goods, No role of wholesalers, and Exclusivity of high-quality goods.
• For instance, high-quality premium products usually utilize the exclusive distribution channel. Some key products like cars, furniture brands, exclusive clothing lines, premium watches, etc use this distribution channel. This maintains exclusivity as well as brand loyalty.

1. Extensive Distribution Strategy:

• Under the extensive distribution strategy, all the possible outlets are used by a company to distribute its product from a small vendor to a big store.
• Virtually, a customer will be able to find the product everywhere he goes.
• Soft drinks and cigarettes are some of the examples on which intensive distribution is followed.
• Extensive Distribution Strategy is also known as Mass Distribution Strategy.

The correct answer is Volume  discount promotions

Key Points

• Volume Discount means when you offer a volume discount, your customers end up paying less per item as long as they buy a larger amount of that item.
• The implementation consists of the following steps:

1. Creating the expression rules.
2. Creating and testing the user interface for administering the volume discount.
3. Creating unit tests for testing the promotion.

4. Testing the promotion.

• For example, Ujido, an online matcha tea provider, offers a 10-percent discount if you buy 8 boxes of their product. Ujido displays volume discount pricing examples.

The correct answer is All of the above.

Key PointsPersonal selling - Personal selling is one-on-one face-to-face sales where the salesperson tries to persuade the customer to purchase a product recommended by the firm.

Important PointsTwo-way conversation -The ideal instrument for selling to individuals is this. Personal selling is an Oral communication & Conversation with customers. Salespeople can collect client feedback and give them the essential information about the company's offer.

Face to face interaction or Personal Attention -  Personal selling is concentrated and is focused on one person, and since publicity and advertising are mass communication instruments, the outcomes will be ineffectual.

Thus, Personal selling includes Oral communication, Face to face interaction & Conversation with customers.