Test 3 Sales
At the start of the simulation, you have five trained salespeople ready to be deployed. Which of the following actions can you NOT take in quarter 1?
Fire one of the 5 salespeople Add a sixth salesperson who can be deployed without training. Re-train one of the 5 salespeople, deploying only four. Change, for one of the five salespeople, the promised territory assignment.
The manual suggests an initial price for the premium model. This is:
5500 4500 2500 3500
There are two models of the product, a base and a premium model. The cost to manufacture the base model is:
1000 2000 3000 4000
There are two models of the product, a base and a premium model. The cost to manufacture the premium model is:
1000 2000 3000 4000
If a team sells 200 units of Model A and 200 units of Model B in a quarter, pricing A at $3500 and B at the same price, what will their total Gross Margin be?
200,000 100,000 zero -200,000
The manual suggests an initial price for the base model. This is:
2500 4500 3500 5500
The offers you make to the people you recruit:
Are rejected if they fall short of the candidate's expectations by $5,000 or more. Are rejected if they fall short of the candidate's expectations by $3,000 or more. Are rejected if they fall short of the candidate's expectations by $1,000 or more. Are rejected if they fall short of the candidate's expectations.
The Net Promoter Score is calculated from answers to the question: "How likely is it that you would recommend our company/product/service to a friend or colleague?" Answers are on a "0" to "10" point scale, with 10 being the highest likelihood. Those who answer with a "9" or a "10" are promoters, with a "7" or a "8" are passive, and with a "6" or less are detractors. Based on these answers the score is computed by:
Dividing the number of promoters by the total number of respondents. Subtracting the number of detractors from the number of promoters and dividing this by the total number of respondents. Subtracting the number of detractors and the number passive from the number of promoters and dividing this by the total number of respondents. Subtracting the number of detractors from the number of promoters and dividing this by the sum of detractors and promoters.
The product being marketed in the simulation is:
Electric Cars. Electric Bicycles. Grocery Carts for Supermarkets. Solar Powered Tractors for Farms.
The market is the United States. The country is divided into 10 regions. Included in region 10 is the state of:
Illinois California Ohio Arizona
You can direct the amount of time salespeople spend on:
Internal versus external selling alone. Base versus premium product alone. Both internal versus external selling and base versus premium product. Different areas of their territory.
Company reputation (a better place to work for) does NOT depend on:
Its salespeople's average compensation, the more the better the reputation. Paying salespeople more through salary than commissions, the greater the proportion the better the reputation. Its ability to avoid production overtime, the greater the proportion of overtime to total production the worse the reputation. The more time its salespeople spend selling internally rather than externally, the greater the proportion the better the reputation.
The market is the United States. The country is divided into 10 regions. Included in region 1 is the state of:
New York Florida Texas Colorado
If you produce more than what you are able to sell then, in this simulation, you:
Pay $25 per unit to carry inventory—the amount you were unable to sell. Pay $40 per unit to carry inventory. Pay $50 per unit to carry inventory. Pay nothing to carry inventory.
If you produce less than what you are able to sell then, in this simulation, you:
Produce the shortfall in overtime that costs $40 more per unit. Produce the shortfall in overtime that costs $25 more per unit. Produce the shortfall in overtime that costs $50 more per unit. Sell only what you have produced
Performance in the simulation is measured by 4 criteria that do not include:
Profit Number of Salespeople in the Salesforce Net Promoter Score Company Reputation
A highly effective way to improve profit, in a developing market, is to:
Raise margins for the premium product and skew sales effort towards this product. Raise margins for the base product and skew sales effort towards this product. Lower margins for the premium product and skew sales effort towards this product. Lower margins for the base product and skew sales effort towards this product.
Net promoter score (positive word of mouth) does NOT depend on:
The prices the firm charges, the lower the better. The skill of its salesforce, the more skilled the better. The extent to which sales effort is focused on the premium product, the more the focus the better. The number of salespeople the company fields in the territories they are in, the more the better.
When you recruit more than one salesperson in a quarter:
You can offer each of them a different commission rate but the same salary. You can offer each of them different salaries and different commission rates. You can offer each of them different salaries but the same commission rate. You can only offer one, uniform commission rate, and one, uniform salary across the salespeople.
You start playing the simulation in quarter 1. When you start:
You have no trained salespeople. You need to hire and train salespeople before you can deploy them in the field. The earliest you can deploy salespeople, in the field, is quarter 2. You have 5 trained salespeople, all of whom you can deploy in quarter 1. You have 3 trained salespeople, all of whom you can deploy in quarter 1. You have 1 trained salespeople who you can deploy in quarter 1.
