Exam 2 - MAR 4418 (Strategic Sales Force Management) UCF

As a supervisory tool, reports from the sales force:

Are useful in helping to evaluate a sales representative's performance.

Excellent transactional leadership by the sales manager involves:

All of the Above (Informing, Clarifying, Monitoring, and Verbal Feedback)

To correct a poor performance problem, sales managers should:

Provide immediate feedback about the problem.

For the newly hired, inexperienced sales rep, the sales manager must first engage in a heavy dose of:

Transactional Leadership

Genuinely caring about each individual subordinate is an example or type of:

Transformational Leadership

To do the best leadership, a sales manager should exhibit:

Both Transformational and Transactional Leader Behaviors

The control system for a given sales organization falls on a continuum ranging from outcome-based control to:

Behavior-Based Control

Outcomes of effective leadership include citizenship behaviors, an example of which is when a rep:

All of the Above (shows up to work on time, offers tips to struggling fellow reps, tolerates problems without complaining, volunteers to serve on a committee)

Which of the following factors is likely to contribute the least to your leadership ability?

You own the company

Which of the following is least likely to serve as a supervisory tool or method:

Sales Forecasts

When a leader anticipates, analyzes, and makes decisions, the leader uses:

Problem-Solving Skills

Over-supervising a sales force is likely to:

Be resented by many sales reps

Transformational Leaders do not merely bank orders -- they lead by example. This leader behavior that best represents this is:

Role Modeling

When feasible, the best leadership tool or technique is typically:

Personal Contact

The following actions are available to managers or supervisors in the case of third party harrassment except for:

Do Nothing -- The company and manager have the fiduciary responsbility ot​ the representative to convince the coworker or customer to halt all sexual misconduct

The best method for a manager to use when dealing with a situation of substance abuse within a sales rep is:

Refer the sales rep to professional counseling.

An example of a transactional leader behavior is:

Clarifying Company Rules -- Direct Supervisor Jobs -- Short Term and Managing

Which of the following is the best definition of a budget in sales force management?

A financial plan which details the expected revenues and expenditures from sales force operations.

Salespeople:

Are often poor forecasters

An advantage of using the executive-opinion method of sales forecasting is that:

It can be done quickly and easily.

A sales forecasting period of less than one year is usually imperative for a producer of:

Fashion clothing for teenagers

As a guiding principle in demand forecasting, management should:

Use as many market factors as possible to gauge demand.

A company's ---- is the maximum share fo the market potential that this fir could achieve under ideal conditions. (We assume that the product market and time period have been stated)

Sales Potential

Which of the following forecasting methods is the most widely used?

Mathematical Methods

"Sales of lite beer are forecasted to $150 Million in 2007 in the United States", reported sales manager, Christi Feldman, to her boss. This statement is a:

Forecast of Market Potential (Sales Potential will be less than this reverting to the specific market share of a company based on the metrics of the market potential)

Which of the following would be the best market factor for estimating the deamnd for sales management textbooks?

The number of students enrolled in sales management courses.

Budgeting normally is part of the ----- stage in the management process.

Planning

Which of the following is the most subjective method of sales forecasting?

Executive Opinion -- Executives may have alternate opinions on the best direction for the company.

Surveys of buyer's intentions:

Are based on information obtained directly from product users, whose later buying decision will actually determine the sales.

One key difference between a company's sales forecast and this firm's sales potential is that:

The sales forecast is an estimate of sales the firm expects to make under a proposed marketing plan. -- Sales Forecast is always LOWER than Sales Potential

Which of the following managerial tools provides the best control over the expenditures and revenues in a firm?

Budgets -- Great Control Over a Firm's Financial Activities

Which of the following methods of sales forecasting is a least dependent on historical data?

Test Marketing -- Doesn't Use Historical Data

Scanner Technology has:

Scanner Technology has enabled retailers to provide their supplioers with useful sales data.

Which of the following best represents the market potential sales-potential relationship?

Camera Polaroid

The correct terminology in demand forecasting may be illustrated by saying that the ---- for snow skis in the Midwest next year is 800,000 pairs, while the ---- for Head (brand) skis in the market is 100,000.

Market Potential -- Sales Potential (Market Share)

As a forecasting method, a "survey of buyer intentions" is most effective when:

A high percentage of "I-intend-to-buy" respondents are likely to actually buy the product.

Accurate sales forecasts would be difficult to obtain for which of the following products?

Virtual Reality Games (New Product -- Lack of Historical Data-- Have to gather consumer data)

As for as the length of a budget period is concerned:

Quarterly budgets usually provide for more flexibility than do annual budgets.

When using the buildup method to establish sales territories, the first step ordinarily is to determine:

The call frequency per account per year

----- is when a salesperson sells to a customer that is in another salesperson territory.

Claim Jumping

Overlapping Territories:

Tends to be a result of management's trying to avoid friction. (Sales Reps don't want to limit morale can sometimes be intimidated by impeding traditional territories)

For which of the following reasons are computers used in sales?

All of the Above (Improved accuracy, decrease order processing time, and increased customer service capabilities)

All other factors being equal, a salesperson is likely to have a smaller territory if:

The rep sells directly to retailers instead of going through wholesalers.

Which of the following changes is apt to decrease the geographical size of a territory?

Cover an area more intensively with increased call frequencies, etc. in order to meet competition more effectively.

In sales territory design, which of the following factors is least likely to affect the salespeople's work load?

Whether the salesforce is paid under a straight salary or a combination plan.

For which of the following reasons are computers used in sales?

All of the Above: Improved Accuracy of orders, decrease in order processing time, and increased customer service capabilities.

If a rep works 8 hrs./day and the average length of a call is 30 min. and the average travel time is 30 min. and the rep works 250 days/year, then what is the total annual number of calls the rep can make?

2,000 calls/rep

A sales territory is:

A number of customers located within a given geographical area and assigned to a salesperson.

When using the breakdown method to establish sales territories, the first step ordinarily is to:

Determine the company's sales potential (that is, the total sales volume that the company can except in its full market)

The number of customers located within a geographical area and assigned to a salesperson is a:

Sales Territory

A system of well-designed sales territories will most likely result in:

A reduction in selling costs

All of the following except for ---- are commonly used as control units for territorial boundaries:

Sales Potential (Metro Area Statistics, States, Zip Codes, Counties)

When designing sales territories the ideal goal is to:

Have all districts be equal in both sales potential and work load for the reps.

As the sales potential of a given territory increases, sales performance of the sales rep assigned to that territory will generally:

Increase for a Short Time, but then level off

Regarding the drawing of territorial boundary lines:

A good generalization to follow is this: Do no split one of your basic control units.

It is recommended that sales managers review their territory structure:

Once every year

Misdirected marketing effort occurs in many firms because:

Management lacks reliable standards for determining what results should be expected from marketing expenditures.

When a large percentage of our products or customers account for only a small share of our total sales or profit, we refer to this situation as:

The 80-20 Principle (80% of the customers account for 20% of the proceeds)

Which of the following is true about salespeople and Sales Force Automation (SFA)?

SFA adds value to an organization only when reps regularly enter data.

In performance evaluation by sales managers, the soft-spot principle holds that:

An executive reaps the largest possible gain by working with he weakest segments of the organization.

In the past 20 years, salespeople have become:

More effective at retaining existing customers

When evaluating sales performance, a sales volume analysis alone is usually not sufficient because:

It does not indicate the profitability of sales territories or product lines.

The stage of sales performance evaluation in the marketing management process will most likely include:

Analyzing Sales Volume Results (Looking for each individuals stats to dictate their performance)

In the performance evaluation process, it is management's job to:

Find out what happened, why it happened, and decide what to do about it.

The three stages of the sales management process are:

Planning, Implementation, and Evaluation

Which of the following is the best reason for continuing to carry a product when a sales volume analysis indicates it is a low-volume item?

The item is needed to round out the company's product line.

Misdirected Marketing Effort:

Is a key reason underlying the existence of the 80-20 principle.

During the 2000s, the evaluation process is likely to become more important because of:

The emphasis on relationship selling.

The 80-20 principle exists in many companies because:

Marketing efforts and costs follow the number of territories, products, and customers, rather than actual sales or profit from these units.

Misdirected Marketing Effort:

Is a key reason underlying the existence of the 80-20 principle.

Among the following, sales performance evaluation is most closely related to:

Sales Control

The sales manager generally reaps the largest possible gain by working with the --- segments of the organization.

Weakest

A total evaluation program in marketing is best described as:

A Marketing Audit

When put together, a sales volume analysis and a marketing cost analysis constitute:

Marketing Profitability Analysis (MPA)

A quantitative factor which is useful for measuring output (results) in a sales rep's performance is:

Gross Margin

The evaluation activity takes on a fuller, richer meaning if we think of this activity in terms of evaluation and ----- of individual salespeople.

Development

A qualitative factor frequently used as a basis for evaluating salesforce performance is the rep's:

Ability to work with customers' salespeople.

Which of the following leads to greater sales and profits?

Evaluation based on both inputs and outputs

Max sells for Whatisits Company. His batting average is by far the highest in the firm - .400. Unfortunately, his average order is the lowest - $3,000. He only saves himself by making a large number of calls per day (5) while working 275 days/year. What is his sales volume for the year?

$1,650,000 (= 275(5) (.400) ($3000) )

The task of appraising the performance of individual salespeople is basically a part of the managerial function of:

Evaluation

Which of the following is the best example of a quantitative factor used as a basis for evaluating salesforce performance?

Number of Orders Generated

A sales rep worked 25 days last month, made 150 calls, and wrote 60 orders for a sales volume of $200,000. Which of the following is nearest to his batting average?

.400 (60 Orders/ 150 Calls)

Among the following steps in an evaluation procedure, which is the most difficult?

Setting Performance Standards --> Understanding how to hold sales reps accountable (think qualitative sales performance measures)

Regarding the sources of information used in a performance evaluation:

The company's records are the best source regarding performance output factors. (Remember: Output = Quantitative/ Input = Both, but Mainly Qualitative)

Regarding the use of gross margin as a basis for evaluating salespeople's performance:

This is a good basis when the company sells different product with widely varying gross margins. --> Each product brings a different sales amount. Ex. Upsells will generate more money than generic products.

An evaluation of sales reps' performance is important because it can:

Reduce selling costs, boost the reps' morale, and spot weaknesses in field selling efforts.

Which of the following tools is most useful in a sales force performance evaluation?

Good job description for the sales rep.

Marion sells for the Whatisits Company of Whoville. An analysis of the performance of the company's 25 person salesforce shows that the average sales rep works 250 days a year, makes 4 calls/day, obtains an order averaging $15,000 every 10 calls made. Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume. What was Marion's call rate?

3.5 Calls/Day (700 Calls / 200 Days)

Marion sells for the Whatisits Company of Whoville. An analysis of the performance of the company's 25 person salesforce shows that the average sales rep works 250 days a year, makes 4 calls/day, obtains an order averaging $15,000 every 10 calls made. Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume. What was Marion's average order size?

$30,000/Order ($1,500,000 / 50 Orders)

The evaluation procedure known as a 360 degree feedback involves getting feedback from which of the following?

The salesperson's peers, the salesperson's clients, and the salesperson's subordinates. All Stakeholders involved with the sale.

Evaluating a salesperson's performance is a difficult job because:

Many duties of a sales rep cannot be measured objectively.

The Robinson-Patman Act is most directly related to:

Price Discrimination

A U.S. company which conducts business abroad:

Is subject to laws regardless of the country in which they are conducting business.

Regarding the pressure to compromise one's personal ethics:

Some executives believe that they have to compromise their personal ethics to achieve company goals.

What percentage of companies have ethics codes?

84%

The main problem with using the Golden Rule as a basis for ethical evaluation is:

People have different values.

Establishing an ethical climate:

Is done by enacting policies that discourage, monitor, and correct unethical behavior.

Sales managers and salespeople of US companies who work overseas:

Must obey both US laws and the laws of the country in which they reside.

Bribery

All of the Above (is illegal in the US, can be effective, can lose customers, and can lead to career jeopardizing incidents)

Regarding business ethics and sales management:

Sales managers should not practice caveat emptor (let the buyer beware) philosophy.