ESB ESB - Entrepreneurship and Small Business Sales Strategies and Revenue Generation Questions and Answers 2

Question 1

What is a 'lead' in the sales process?

Accepted Answer

A potential customer who has expressed some level of interest in a product or service

Answer

A confirmed purchase order received from a new first-time customer

Answer

A returning customer with an established purchase history and account

Answer

A senior sales team manager responsible for mentoring and closing deals

Question 2

What is 'cost-plus pricing'?

Accepted Answer

Adding a standard profit markup percentage to the total cost of producing a product

Answer

Setting prices based on what direct competitors are currently charging in the market

Answer

Pricing based on the perceived value customers assign to the product or experience

Answer

Charging different prices to different customer segments based on their willingness to pay

Question 3

What does Customer Lifetime Value (CLV) measure?

Accepted Answer

The total revenue a business expects to generate from a customer over the entire relationship

Answer

The average number of years a typical customer remains active with a business

Answer

The total cost to acquire a single new customer through all marketing channels

Answer

The average number of products a customer buys during a single shopping visit

Question 4

What is the purpose of a 'call to action' (CTA) in sales and marketing?

Accepted Answer

To prompt the prospect or customer to take a specific next step toward purchasing

Answer

To schedule a recurring internal sales team performance review meeting

Answer

To document and report sales performance metrics to company leadership

Answer

To analyze competitor pricing strategies and market positioning data

Question 5

What does 'price elasticity' measure in a business context?

Accepted Answer

How sensitive customer demand is to changes in the price of a product

Answer

The flexibility of payment terms and financing options offered to customers

Answer

A company's operational ability to adjust prices in response to rising production costs

Answer

The discount percentage rates offered to customers during promotional sale events

Question 6

What does 'closing a sale' mean in the sales process?

Accepted Answer

Securing the customer's final commitment to purchase and completing the transaction

Answer

Shutting down a sales operation or territory at the end of a fiscal quarter

Answer

Formally ending the sales relationship with a consistently non-converting prospect

Answer

Processing customer refunds and returns from dissatisfied or returning buyers