Sales 2 - 3 exam
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Regional sales manager Oliver Tolliver is redeploying the sales force in her region. Chief customer officer Jayden Hayden has given Oliver the green light to adjust the number of territories and, if necessary, to hire additional sales representatives to ensure optimal account coverage. Oliver does an account analysis and categorizes the region's 1,480 accounts in the following manner. • Type A: Large or very attractive-370 • Type B: Medium or moderately attractive-450 • Type C: Small but still attractive-660
18
Hope Pope, a sales manager, is using the breakdown method to figure out how many salespeople she needs. Hope and her district's analytically gifted executive assistant Jermaine Tremaine have completed a market opportunity analysis, and the resulting sales forecast is $6 million. Hope believes that her sales reps can each be expected to sell $275,000 worth of the company's products in a year's time. If Hope's assumptions are valid, she needs sales reps on her team.
22
On average, approximately _____ percent of a firm's sales force will quit or be terminated in any given year.
34
The four career stages that salespeople typically go through are 1. Exploration 2. Establishment 3. Maintenance
4. Disengagement
Fill in the blanks: 4,360 4,214 4,209 4,527 4,790 4,934 4,905 4,875 5,343 5,916 6,024 5,754 5.520 4.260 4,287 4.370 4.499 4.730 4.847 4.904 5.128 5.395 5,684 5,835 5,772 If 2021 actual sales = $5,560,000 (which would appear in the table as 5,560), the two-year moving average forecast for 2022 would be 5512 , and the four-year moving average forecast for 2022 would be 5633
5512, 5633
The letters in NAICS stand for
@ North American Industry Classification System
When the authors speak of [ Select ] ~ rewards, they are talking about such things as recognition, [ Select ] and feeling of [ Select ]
Answer 1: higher-level Answer 2: personal growth Answer 3: accomplishment
Three sets of [ Select] ~ determine a salesperson's motivation to expend effort on a particular task: 1. [ Select ] V - the perceived relationship between expending more effort and achieving improved performance 2. Instrumentalities - the perceived relationship between improved performance and increased rewards 3. [ Select ] ~ for rewards - the perceived attractiveness of the rewards the salesperson might receive
Answer 1: perceptions Answer 2: Expectancies Answer 3: Valence
consist(s) of relatively enduring personal abilities, whereas I Select ] change-sometimes rapidly-with learning and experience. ~ is a proficiency level that can
Aptitude , a skill
The authors of your textbook present a research-based model to explain salesperson performance. It is depicted graphically in Exhibit 6.1 and described in the accompanying paragraphs. A model is a diagram of how a theory works. Models help managers visualize which variables leads to, or influence, a particular outcome. In this model. the factors that influence a salesperson's job performance are • Role perceptions . [ Select ] • Skill level • Motivation • Personal variables [ Select 1 . Environmental variables
Aptitude, Organizational variables
Extrinsic rewards are those that are given to the salesperson by other people, such as recognition.
Are given to the salesperson by other people , recognition
__________ are designed to satisfy salespeople's basic needs for security.
Benefits
Kim Grimm is a salesperson for a company that provides linens to hospitals. Kim takes time to make sure she is as accurate as possible when she enters customer information into Salesforce, and she also does so on a timely basis. Furthermore, Kim's boss, district manager Julie Dooley, knows that she can always expect Kim's monthly and quarterly reports ahead of their respective deadlines Which OCB does Kim's behavior best exemplify?
Conscientiousness
Based on the results of a meta-analysis by Ford, Walker, and Churchill*, which of the following sets of skills or traits is a better predictor of salesperson performance than the others?
Current marital status, number and ages of dependents (marital/family status)
After two weeks in the territory, Charlie is feeling good about his role, and he is 100% confident that he will achieve this year's sales quota. Charlie knows that his success is ultimately up to him, and he believes without a doubt that he can make great things happen. He plans to do whatever is necessary to start each day in a positive state of mind and to pursue every sales opportunity enthusiastically. Charlie also recognizes the value of follow-up and excellent customer service, and he is determined to be a hero to his customers. In the language of expectancy theory, Charlie's [ Select ] ~ estimates have great [ Select ]
Expectancy, magnitude
A salesperson who sells only to wholesalers does not need to understand the business needs of the retailers who buy from those wholesalers.
False
Disengagement happens only with salespeople who are at or near the end of their careers.
False
In most companies, sales training emphasizes product knowledge and selling skills--but rarely does it also cover legal and ethical issues.
False
In most companies, sales training emphasizes product knowledge and selling skills--but rarely does it also cover time and territory management.
False
In most industries, training for new salespeople begins with two weeks of classroom instruction.
False
It is rare for a company to have an out-of-date sales job description.
False
Like expectancies and instrumentalities, valences for rewards are probability estimates that a salesperson makes.
False
Salespeople are born, not made.
False
Very few companies use formal classroom training as part of their sales training program.
False
Regarding role conflict and ambiguity, which of the following statements is not consistent with the information in your textbook?
If an organization is well managed and healthy, there will be no disagreements and no uncertainty about a salesperson's role.
Which of the following statements is not consistent with the information in the textbook?
Incentive ceilings make a company's total sales compensation expense less predictable.
After six consecutive months of achieving or exceeding his monthly quota, Charlie begins to think about the future that lies beyond his current role. When Charlie was in is senior year of college, he set a goal to be an "executive" within three years after graduation. That is, he intends to be a manager with direct reports and a budget by that time. During his candid conversations with Parker, Charlie has learned that in this company (and across this industry), a salesperson always - without exception - has to rack up six or seven years of impressive sales results to be considered for a promotion to district manager. Charlie is confident that he can achieve impressive sales results, but his three-year goal is even more important to him now than it was when he was looking for a job. Finding out about the six- to seven-year path to management is a serious letdown for him. According to expectancy theory, what Charlie has learned about the company's promotion timeline will have a direct negative effect on his
Instrumentality estimates
Based on the results of a meta-analysis by Ford, Walker, and Churchill*, which of the following sets of skills or traits is a better predictor of salesperson performance than the others?
Job- and competency-specific skills, technical knowledge, knowledge of the company and its policies (vocational skills)
Volume quotas are usually set to be less than the sales potential in the territory and equal to or slightly greater than the sales forecast.
Less than , equal to or slogjtly greater than
__________ is a research technique that integrates and evaluates the findings of a large number of past research studies. It's sort of a "study of all the studies."
Meta-analysis
By recent estimates, the Frankfort KY [ Select ] ~ had a population of 73,408, with 27,609 of those individuals residing within Frankfort itself. By similar estimates, the Richmond-Berea KY [ Select ] V is populated by 109,118, of whom 35,894 live within the community of Richmond and 15,787 live in Berea.
Micro , micro
The authors of your textbook describe the job. as the amount of effort that the salesperson desires to expend on each activity or task associated with
Motivation
The method of sales forecasting uses historical sales data from more than one year to forecast the next year's sales
Moving average
Johnston and Marshall present six dimensions or requirements of a good job description. One of these is The mental and physical demands of the job, including the amount of technical knowledge the salesperson should have concerning the company's products, other necessary skills, and the amount of travel involved. In the GE job posting above, does the description mention the mental and physical demands of the job?
NO
On-the-job training (OJT) sometimes involves job rotation. That's where trainees are assigned to different departments (in sequence) where they learn such things as manufacturing, marketing, shipping, credit and collections , and servicing procedures.
On-the-job training (OJT), credit and collections
that are expected of a sales professional include sportsmanship, ( Select] , conscientiousness, and altruism.
Organizational citizenship behaviors (OCBs) , civic virtue
is the ability to switch between multiple tasks within the same block of time.
Polychronicity
Johnston and Marshall quote a vice president in a large company: You can throw money at people - bonuses, incentives, rewards, additional skills training - and they're all important parts of what the manager offers. But praise is number one. It goes a long way when you give them that pat on the back.
Praise , Pat on the back
For a salesperson's quota to be effective, it needs to be easy to understand, complete, timely, and
Realistically Attainable
__________ can be useful for double-checking the information that a candidate has put on a résumé or job application.
Reference checks
Stuart Ewart sells industrial products that his customers use in their factories. He is working toward a sale to (what will be) a new customer, and he believes his chances are good. Stuart can structure the recommended order one of two ways. One mix of products and quantities would maximize total revenue from the sale. The other would result in a lower dollar total, but would maximize the profit margin percentage that his company would make on the deal. Stuart does not know which result would be more consistent with his company's "unwritten policy" on such matters. He also doesn't know whether he is expected to aim for a modest sale in order to "get his company's foot in the door" with the new customer or whether, in fact, he is expected to "go big or go home." Stuart is experiencing perceived role ambiguity.
Role ambiguity
Travis Kravis is being interviewed for a sales position. The interview is being conducted by District Manager Miller Stiller. Miller is doing some things that make Travis uncomfortable. For example, Miller is silent for several seconds at a time, that is, for noticeably longer than is normal in a conversation between two people. Travis wonders whether he should say something to fill the gaps or wait for Miller to resume speaking. Additionally, some of Miller's questions seem a bit aggressive, and he's beginning to get under Travis' skin. Travis knows that Miller has not asked anything that is illegal to ask, but he feels at times like he is being interrogated. Travis remembers that Miller seemed pleasant when he greeted him at his office door earlier, and his email messages leading up to the interview seemed friendly and professional. Travis also knows that Miller is highly experienced and that his role requires the utmost professionalism. It just doesn't seem possible that Miller could ever have become successful by being so abrasive and socially inept. Suddenly, Travis remembers (from his sales management class in college) that sometimes, without warning, an interviewer will play the role of an unpleasant or overbearing customer. The interviewer's goal in doing so is to see how well the applicant handles some of the less-than-ideal behavior that customers and prospects sometimes dish out. So that's what Miller is doing. Travis now knows that he is on the receiving end of a(n) __________ interview.
STRESS
= the quantity or amount (of a product or service) that is the sales goal of a marketing unit in a stated time period. "Marketing unit" may be a sales region or district, a sales territory, or an individual salesperson.
Sales Quota
The forecast period. method of sales forecasting begins with each member of the field sales staff stating how much he or she expects to sell during the
Sales force composite
A company that recruits well-educated people for sales position has to compete not only with other companies, but also with other occupations.
TRUE
As technology becomes more sophisticated, the quality of a salesperson's presentation becomes more important.
TRUE
Increasingly, salespeople need to be bilingual or multilingual.
TRUE
The authors of the textbook believe that sales job satisfaction has seven dimensions. They are . [ Select ] • Coworkers • Supervision . [ Select ] • Pay • Promotion and advancement opportunities • Customers
The job itself, company policies and support
Which of the following statements is not consistent with the information in your textbook?
The sales manager's task is to eliminate all conflict and ambiguity from the salesperson's role.
With regard to recruiting, which of the following statements is not consistent with the information in the textbook?
The search for potential new sales recruits should always begin with external sources.
All of the following are subjective (as opposed to objective) methods of sales forecasting, except.
Time series analysis
All other things being equal, a salesperson who has a strong sense of internal control will have higher expectancies.
True
External environmental characteristics - such as general economic conditions, strength of competitors, and restrictions on product availability - can lower a salesperson's expectancies.
True
Salespeople who are uncertain about what is expected of them tend to have lower levels of job satisfaction than salespeople who have clarity about the company's expectations.
True
Salespeople who have high levels of role conflict tend to have lower levels of job satisfaction than salespeople who do not.
True
Setting a salesperson's quota way too high can cause the salesperson to engage in unethical behavior in order to make that quota.
True
The company wants to increase sales of one of its products - we'll call it Product A - and is sponsoring the contest to incentivize the sales reps above and bevond their usual commission. At the end of the three-month contest. the rep who has sold the most Product A (in each district) will receive a five-day, all-expenses-paid trip for two to the Maldives. The rep with the second highest total Product A sales will receive a $500 night on the town (local to each district). The rep with the third highest total Product A sales will receive a $200 Amazon gift card. As luck would have it, the contest is beginning just as Charlie becomes eligible to compete. Charlie doesn't think he has any chance of winning first or second prize, and he is correct. He's up against some very experienced reps who have strong relationships with their customers (and who really want to go to the Maldives). Charlie thinks he would have a shot at third prize, if he were to really try, but he doesn't feel that $200 is worth the extra work hours and missed social opportunities that it would cost him. If we apply expectancy theory to diagnose Charlie's lack of motivation to try for third prize, we can conclude that it is a problem with
Valence for rewards
District sales manager Shirley Hurley has just explained field sales representative Fred Shedd's 2023 sales quota to him. Fred is expected to sell at least 200 drill presses, 60 lathes, 250 circular saws. Fred's quota is a(n) quota.
Volume
With regard to recruiting, which of the following statements is not consistent with the information in the textbook?
When advertising an open sales position, it is more important to appeal to a broad range of applicants than to portray the job realistically.
Johnston and Marshall present six dimensions or requirements of a good job description. One of these is The mental and physical demands of the job, including the amount of technical knowledge the salesperson should have concerning the company's products, other necessary skills, and the amount of travel involved. In the GE job posting above, does the description specify the amount of travel involved?
YES
Johnston and Marshall present six dimensions or requirements of a good job description. One of these is The nature of product(s) or service(s) to be sold. In the GE job posting above, does the description address the nature of product(s) or service(s) to be sold?
YES
The most common sales training delivery format is __________.
a blend of online and in person
According to the Klein Institute for Aptitude Testing, all of the following characteristics are frequently found among salespeople who fail, except __________.
a college degree that is not business related
The six-digit NAICS code for Toyota Motor Manufacturing's Georgetown, Kentucky factory (where the Camry, Avalon, and Lexus ES 350 are assembled) is 336111. The first four digits (3361) of this NAICS code identify the facility as
a plant that manufactures motor vehicles
Extrinsic rewards are those that [ Select] v such as [ Select]
are given to the salesperson by other people , recognition
When a sales organization is recruiting, the objective is to attract a few good applicants .
attract a few good applicants
The most common form of compensation for salespeople is __________.
base salary plus incentive pay
According to the Klein Institute for Aptitude Testing, all of the following characteristics are frequently found among salespeople who fail, except __________.
being terrible at golf
Of the selection tools and procedures that are available for sales managers to use, ____ have the greatest ability to predict a potential employee's future job performance, and _____ have the least
composite personality test scores, evaluations based on personal interviews
According to the authors of your textbook, the most difficult part of the recruitment and selection process is __________.
determining what qualifications are necessary to do a sales job well
Recent research suggests that __________ is positively related to success in B2C (i.e., retail) sales but negatively related to performance in B2B roles.
extraversion
If a sales job requires substantial product knowledge and industry experience, a firm is more likely to recruit ____ or ____
from other departments in the company, :by referrals from other people in the same industry
For building trust with customers, salespeople will usually say that ____ (on the salesperson's part) is/are most important. Customers, on the other hand, are likely to say that the salesperson's _____ is/are most important.
good listening skills Answer 2:product knowledge
According to the Klein Institute for Aptitude Testing, all of the following characteristics are frequently found among salespeople who fail, except __________.
having been an athlete in college
Under federal law, as presented by Johnston and Marshall, it is permissible to ask whether the applicant is a minor or ____ but not ____
is a minor Answer 2:is over the age of 70 (Correct) Answer 3:the applicant's specific age or date of birth
According to the Klein Institute for Aptitude Testing, all of the following characteristics are frequently found among salespeople who fail, except __________.
lack of sales experience with similar products or services
To evaluate the effectiveness of sales training, __________ must be measured.
learning, behavior change, and sales results
Johnston and Marshall state that __ companies usually have to interview between [ Select ] and [ Select ] people to find one hire.
life insurance, 60, 120
Johnston and Marshall state that more than one-half of U.S. industrial goods producers hire at least some of their salespeople from other departments in the company, such as engineering or purchasing. This is an example of recruiting from internal sources.
more than one-half, internal
When evaluating candidates for a sales job, managers use __________ more than any other selection tool.
personal interviews
Typically, in a sales training program, more time is spent on __________ than any other topic.
product knowledge
The authors summarize research studies that have looked for variables that would account for differences in sales performance from one sales rep to another. The variables fall into six categories: aptitude, personal characteristics, skill levels, role perceptions , motivation, and organizational and environmental factors. Of these six factors, the only two that a sales manager cannot influence or change are aptitude and personal characteristics
role perceptions Answer 2:aptitude Answer 3:personal characteristics
At a drug manufacturer that is mentioned by the authors, new salespeople who will be selling conventional over-the-counter consumer products receive seven weeks of training. Those recruits who will be selling the company's more technical products, on the other hand, receive two years of training.
seven weeks, two years
Salespeople are more likely to be successful when they are dealing with prospects similar to themselves in demographic characteristics, personality traits, and attitudes than when their prospects have characteristics different from their own. (Therefore, managers should hire salespeople with demographic and personality characteristics as similar as possible to those of the prospects on whom they will be calling.) This is also called the ____ and ___ been supported by research findings.
similarity hypothesis Answer 2:has not
All other things being equal, it takes six to nine months for a company to break even on a new salesperson's compensation and expenses, not including the amount that the company has spent on training that individual.
six to nine Answer 2:not including
Compared to other compensation methods, straight salary is especially useful when compensating new sales reps or when reps must perform many nonselling activities.
straight salary
Tomorrow, Elton Shelton will be interviewing for a sales job at Thomson Reuters. The title of the job is Sales Engineer. After reading the job description, Elton knows that the Sales Engineer is an integral part of a sales team. If Elton gets the job, he'll spend a lot of time collaborating with sales representatives, IT specialists, and managers in order to develop the proper customized product demonstration for each prospective customer. The job description does not mention how the Sales Engineer is to be paid, but Elton knows that the compensation is probably __________.
straight salary
For a sales job, a good job description will typically include all of the following except __________.
the ideal age for a candidate
For a sales job, a good job description will typically include all of the following except __________.
the ideal height and weight for a candidate
To estimate demand for a consumer product in a territory, sales managers may look at all of the following information about that area, except
the number of people employed by companies that have a particular NAICS code
To estimate demand for an industrial product in an individual territory, sales managers might look at all of the following information about that area, except
the total number of households
When Johnston and Marshall state that salespeople occupy a boundary position, they mean that a salespe son operates on the boundary between their own company and their company's customers
their own company, their company's customers
A company that conducts sales training may do so to satisfy one or more of the following objectives: to teach selling skills to increase productivity to improve morale to decrease turnover _______________ to improve time and territory management
to improve customer relations
A firm is more likely to recruit through advertisements, employment agencies, or educational institutions if it is looking for a __________.
trade servicer
For the sales manager who is choosing a forecasting method, which of the following pieces of advice is most consistent with Johnston and Marshall's recommendations?
• Use at least one objective method, combined with at least one subjective method.