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MODERN BUSINESS.doc
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Test Questions

1.

A direct sales method that can be used by a producer is:

A.

Selling direct to retailers

B.

Placing mail order adverts in magazines

C.

Using persuasive TV advertising

D.

Employing agents to sell products direct to consumers

2.

Duties and responsibilities of sales staff in an organisation are likely to include all of the following except:

A.

Providing product information

B.

After-sales care

C.

Making repairs

D.

Giving refunds

3.

Which of the following is an indirect sales method?

A.

Factory sales

B.

Using wholesalers

C.

Door-to-door selling

D.

Pyramid selling

Questions 4 – 6 share the following answer options:

A.

Information

B.

Refund

C.

Product demonstration

D.

Spare parts

Which of the above customer needs could be satisfied by the following customer services?

4.

A technical telephone ‘hotline’

5.

An after-sales service department

6.

Point-of-sale services

7.

Which of the following Acts protects the consumer from false claims made about products?

A.

Sale of Goods Act

B.

Weights and Measures Act

C.

Trademark Act

D.

Trade Descriptions Act

8.

Sales staff may be expected to undertake the following administrative tasks except:

A.

Analysing the results of market research

B.

Processing orders and organising deliveries

C.

Credit clearance and credit control

D.

Prospecting

9.

Which of the following is an indirect method of distribution?

A.

Pyramid selling

B.

Mail order

C.

Agent sales

D.

Telesales

10.

Answer the following questions:

  • What is distribution, and why is it important?

  • What is a wholesaler?

  • Give two advantages to a manufacturer and a retail chain of using a wholesaler.

  • Suggest two reasons why wholesalers are declining in importance.

11.

Answer the following questions:

  • Suggest three needs customers have in making a purchase other than for the products they intend to buy.

  • Suggest and explain three services that sales staff in an organisation will be expected to provide in order to meet the customer requirements you have listed above.

  • How would you evaluate the performance of an organisation and its sales staff in meeting the needs of customers?

  • Outline two sales communications methods an organisation could use to inform and motivate their sales staff.

12.

Answer the following questions:

  • What is an indirect distribution channel?

  • Explain the role of a wholesaler retailer, and agent in an indirect distribution channel.

  • Suggest and describe three sales methods a manufacturer could use to distribute products direct to the final consumer.

  • What distribution channel and sales method would you advise the following organisations to use for their products? Give reasons for your recommendations.

- A large firm selling industrial lasers to a world-wide market

- A small carpet cleaning firm serving a localised market

- A manufacturer of frozen foods

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