Marketing 4420 Sales Management Exam Two Multiple Choice

The phenomenon of a small percentage of customers or products accounting for a high percentage of the company's sales is called the

80:20 principle

Which of the following statements about sales quotas is true?

A, B, & C

Activity quotas:

Are accurately described by all of the above

In which stage of sales territory design is the assumption that all salespeople have equal abilities first questioned?

Assignment of salespeople to sales territories

For a sales quota to be effective, the quota must be:

Attainable, easy to understand and complete

For less attractive sales jobs, such as telemarketing, some sales recruiters use _____________ to obtain many number of applicants without giving much information about the job.

Blind ads in newspapers

Which of the following is one of the major causes of plateauing?

Boredom

What is the most popular motivator for salespeople?

Cash awards

The buying power index (BPI) would be most useful in predicting sales for which of the following products?

Chocolate cake mixes

Which of the following statements provides important knowledge to the sales manager who wants to plan successful strategy?

Company policies can hinder a salesperson's effectiveness by indirectly affecting their valence for rewards, accuracy of their expectations and instrumentality perceptions

Which of the following selection criteria has the highest level of predictive validity?

Composites of intelligence, personality and aptitude tests

The recruitment effort should:

Concentrate on sources that are most likely to produce the kind of people needed to fill the job

In a sales organization, what would be an appropriate strategy to motivate a person at the "Disengaged stage"?

Create a project or account and put them in charge of it

When conducting a job analysis, current salespeople should be observed and/or interviewed to

Determine what they actually do

The breakdown method of determining sales force size:

Determines the number of sales personnel needed by dividing the forecasted sales volume by the estimated productivity of one salesperson

Natalie is conducting a personal history evaluation of her existing sales force members to hire new sales representatives. She will likely use this in

Determining which characteristics differentiate between good and poor performing salespeople

The four steps in the decision process for recruiting and selecting salespeople include each of the following EXCEPT

Develop a mission statement

Elizabeth is a sales manager for a golf products company. She has conducted first a job analysis and second written a job description. Next, she will

Develop a statement of job qualifications

Teresa is a highly motivated sales rep. She will likely spend considerable time

Developing sales presentations

The ratio of the total financial compensation of the highest paid salesperson to the average in a sales force is the:

Earnings opportunity ratio

Pam is a sales manager for a medical imaging device company. The sales positions involve technical selling requiring substantial product knowledge and industry experience. She will probably focus on recruiting salespeople through

Employees and referrals within the industry

After deciding which basic control unit to use for her sales force, Natalie's next step in territorial design is to:

Estimate market potential for each control unit

Which of the following is NOT one of the steps in the work load approach to determining sales force size?

Estimate the revenue generated by one salesperson

The conceptual framework for studying motivation is called

Expectancy theory

The four stages that make up the sales career path are:

Exploration, establishment, maintenance and disengagement

All firms actively recruit salespeople.

False

For a quota to be effective, it must be challenging, quantitative and easy to understand.

False

Inexperienced salespeople are likely to have larger expectancy estimates than experienced ones.

False

Junior colleges and vocational schools are poor sources of recruits for sales jobs.

False

People in a company's production, accounting and human resources departments are always poor candidates for sales jobs.

False

The disengagement stage of a salesperson's career is also referred to as the self-termination period.

False

The magnitude of a salesperson's instrumentality estimates reflects the sales rep's perceptions of his or her ability to control or influence his or her own job performance.

False

The psychosocial needs of a salesperson in the establishment stage of his or her sales career are lower-level needs.

False

Application blanks:

Help managers to prepare for job interviews with applicants

Which of the following statements about how personal characteristics affect a salesperson's level of motivation is true?

Intelligent salespeople have higher expectancy and instrumentality perceptions than those with less intelligence

Brad is a salaried sales rep for an engineering company. Brad is likely to have a higher magnitude of instrumentality estimate associated with

Performance of sales

Which of the following statements about who is responsible for selecting and recruiting salespeople is true?

Personnel department members are often involved in the recruiting and selecting of salespeople to reduce friction between the two functional departments

Long Enterprises makes and sells x-ray equipment. It needs to hire three new salespeople with specific qualifications and abilities. The company decided to have a company __________ participate in the hiring process with the sales manager.

Recruiting specialist

The most popular type of sales quotas is ______ quotas.

Sales dollar (volume)

Bell-Mark Sales sells a single-color flexographic printer to plastic manufacturers that need to print company logos, product descriptions, warning logos and bar codes on plastic film to be used in making packaging. The ________ for Bell-Mark in 2017 for the European plastics manufacturer market is $20 million or a 50 percent market share.

Sales potential

Which of the following statements BEST defines the relationship between sales forecasts and sales potentials?

Sales potential is the portion of the market potential a specific firm can reasonably expect to achieve; sales forecasts are estimates of the dollar or unit sales for a specified future period under a proposed marketing plan

The first step in the actual process of designing sales territories is to:

Select basic control unit

The magnitude of a salesperson's expectancy perceptions indicates:

The degree to which that individual believes expending effort on job activities will influence ultimate job performance

Valences of rewards are the salesperson's perception of:

The desirability of receiving more of a particular reward

There are currently two popular ways to estimate sales response functions based on the number of sales calls. They are:

The judgment-based and empirical-based methods

Expectancies are the salesperson's perception of:

The linkage between job effort and performance

Which of the following is NOT typically included in a job description for a sales job?

The size of the sales force and existing salary structure

The inaccurate expectancy perceptions in the existing sales force can be improved:

Through expanded sales training programs

Customers can be an excellent source of sales recruits as referrals.

True

Generally, older, more experienced salespeople have lower valences for rewards that provide food, shelter, clothing and security and higher valence for rewards that create opportunities for esteem and self-actualization.

True

Ideally, firms like to form sales territories that are equal in both potential and work load.

True

In terms of sales forecasting, exponential smoothing is a type of moving average.

True

Job descriptions help to determine what a company is looking for in terms of job applicants.

True

The breakdown of a sales analysis into a series of reports is called hierarchical sales analysis.

True

The higher the earnings opportunity ratio is within the company, the higher the average salesperson's valence for pay is likely to be.

True

The methods of conducting personal interviews can be classified as either structured or unstructured.

True

Choose a subjective forecasting method.

User expectations

Without a detailed up-to-date job description, a sales manager will have difficulty deciding

What kind of personnel are needed such as qualification or preferred standards

The first decision that must be made when recruiting and selecting salespeople considers:

Who will participate in the process

When designing sales territories, the sales manager should strive to make territories equal in terms of:

Work load and sales potential