Quiz Questions

Marion sells for the Whatisits Company of Whoville. An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year, makes four calls a day, obtains an order, averaging $15,000, every ten 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? $150,000. None of these. $ 30,000. $ 50,000. $ 7,500.

$ 30,000.

ABC Company's total sales volume is $10 million, with a cost of goods sold equal to 50% of sales, and total indirect expenses of $2 million. The Eastern territory has sales volume that equals $1 million and direct expenses of $200,000. In a marketing cost analysis, the contribution margin of the Eastern territory is: $100,000 None of these $300,000 $500,000 zero (no profit)

$300,000.

If a rep works eight hours per day and the average length of a call is 30 minutes and the average travel time is 30 minutes and the rep works 250 days per year, then what is the total annual number of calls the rep can make? 1,750. 2,450. 2,400. 2,000. 2,100.

2,000.

Marion sells for the Whatisits Company of Whoville. An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year, makes four calls a day, obtains an order, averaging $15,000, every ten 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? 4. 3. None of these. 14. 3.5.

3.5.

In a marketing cost analysis: A given marketing cost is always allocated on the same basis. To determine the contribution margin of product groups, you must allocate all marketing expenses among these product groups. In a well-managed firm all marketing costs will be direct costs. A common approach is to allocate ledger expenses to activity-cost groups, and then allocate these activity costs among marketing units such as territories or products. Indirect expenses should not be allocated if you want to know the net profit of a territory or product.

A common approach is to allocate ledger expenses to activity-cost groups, and then allocate these activity costs among marketing units such as territories or products.

Which of the following is the best definition of a budget in sales force management? A performance goal for salespeople. A geographical arrangement of sales force assignments. The strategies and tactics to achieve the company's targeted market share. A financial plan which details the expected revenues and expenditures from sales force operations. An estimate of what the company will sell in the next financial period.

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

As a forecasting method, a "survey of buyer intentions" is most effective when: We need the forecast by tomorrow. Respondents do not yet know their intentions. We are looking for a very low-cost method. There are many potential buyers. A high percentage of "I-intend-to-buy" respondents are likely to actually buy the product.

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

A total evaluation program in marketing is best described as: The management process. A marketing audit. Management of the sales force. Marketing. The marketing concept.

A marketing audit.

A sales territory is: A Metropolitan Statistical Area. A sales performance goal. A number of customers located within a given geographical area and assigned to a salesperson. The geographical pattern followed by sales reps when calling on their accounts. The sales potential in a geographic region.

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

Zach is working as a sales rep for a manufacturer earning a straight commission on the sales volume he generates. Part of the satisfaction with his job comes from the fact that he has full control over scheduling his call activity throughout the month. Recently, his employer has introduced a customer relationship management (CRM) system for the salesforce that requires sales reps to input data about their schedule and call activity and that produces valuable information for reps in terms of who to call next and when. The following are concern(s) that Zach might have about the adoption such a system After adoption of the system he will have less information about potential customers. After adoption of the system his sales manager can monitor his activity and identify when he slacks. After adoption of the system he will be monitored more AND he will have less information about potential customers. After adoption of the system his commission payment will go down. All of the statements are true.

After adoption of the system his sales manager can monitor his activity and identify when he slacks.

Excellent transactional leadership by the sales manager involves: Monitoring. All of these. Informing. Verbal feedback. Clarifying.

All of these.

Outcomes of effective leadership include citizenship behaviors, an example of which is when a rep: always shows up to work on time, never missing meetings. tolerates problems without complaining. offers tips and encouragement to a struggling fellow rep. volunteer to serve on a committee. All of these.

All of these.

Situational leadership involves which of the following leader behaviors? individualized support. verbal feedback. All of these. informing basic rules. articulating a vision.

All of these.

A well-designed plan for paying salespeople's expenses should: Pay the same amount to each salesperson. Allow sales reps to earn the same net income whether they are at home or on the road. Allow just a small amount of expense account padding. Cut down on nonselling activities. Pay for all entertainment expenses incurred by a salesperson.

Allow sales reps to earn the same net income whether they are at home or on the road.

In performance evaluation by sales managers, the soft-spot principle holds that: It is more useful to measure soft spots on a percentage basis rather than dollar volume. A company should not get rid of a territory or product that is a soft spot. If a company does a good job in sales-volume analysis, it won't have any soft spots. The principle is applicable only to a territorial volume analysis and not to a product or customer analysis. An executive reaps the largest possible gain by working with the weakest segments of the organization.

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

The stage of sales performance evaluation in the marketing management process will most likely include: Setting sales quotas. Analyzing sales volume results. Sales forecasting. Determining market potentials. Selecting salespeople.

Analyzing sales volume results.

As a supervisory tool, reports from the sales force: Are bad for sales force morale. Should not be required from high caliber salespeople. Are ineffective because the sales representatives are not likely to report truthfully. Are useful in helping to evaluate a sales representative's performance. Are no help in planning sales force activities.

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

To do the best leadership, a sales manager should exhibit: Transformational, but not transactional leader behaviors. Let the salespeople lead themselves. None of these. Transactional, but not transformational leader behaviors. Both transformational and transactional leader behaviors.

Both transformational and transactional leader behaviors.

A manufacturer is likely to reduce the loss on small orders by: Bypassing the wholesalers and dealing directly with customers. Encouraging customers to buy on a hand-to-mouth basis. Reducing quantity discounts. Changing pricing structure to pass some of the costs on to the buyer. Having salespeople call more frequently on small-order accounts.

Changing pricing structure to pass some of the costs on to the buyer.

_____________ is when a salesperson sells to a customer that is in another salesperson territory. None of these. Call frequenting Claim jumping Routing Buildup

Claim jumping.

An example of a transactional leader behavior is: Mentoring. Clarifying company rules. Coaching. Team building. Articulating a vision.

Clarifying company rules.

The evaluation activity takes on a fuller, richer meaning if we think of this activity in terms of the evaluation and ______ of individual salespeople. Criticizing. Reorganizing. Selection. Compensation. Development.

Development.

Which of the following sales force business expenses is likely to arouse most questions from government tax auditors? Portable dictating equipment. Air travel. Office supplies. Entertainment. Lodging.

Entertainment.

A drawback to basing sales quotas on last year's sales is that this method: Places too much emphasis on territorial sales potential. Cannot be used when quotas are based on sales volume. Ignores the fact that an older sales rep has covered the territory or is still there. Is a complex system to administer. Generally ignores current changes in a territory's sales potential.

Generally ignores current changes in a territory's sales potential.

Which of the following tools is most useful in a sales force performance evaluation? Good selection and recruiting program. Compensation plan. Good job descriptions for the sales rep. Sales training program. Battery of psychological tests.

Good job descriptions for the sales rep.

A quantitative factor which is useful for measuring output (results) in a sales rep's performance is: Advertising displays set up. Days worked. Direct selling expense. Gross margin. Meeting held with dealers.

Gross margin.

The salesperson with the highest sales volume is not the top performer when: His customer satisfaction scores are high. He has a lot of product knowledge His expense account is so large that his contribution margin is much lower than other sales rep's contribution margins. None of the statements is true. His expense account is the lowest in the sales force.

His expense account is so large that his contribution margin is much lower than other sales rep's contribution margins.

Most of the problems in cost allocation arise in connection with ___________ costs. Variable. Direct. Separable Ledger. Indirect.

Indirect.

An unlimited payment plan for controlling sales force expenses: Eliminates the need for salespeople to itemize their expenses. Does None of these. Is not used very widely. Is flexible so management can allow for cost differentials arising from variations in jobs or territories. Eliminates expense account padding.

Is flexible so management can allow for cost differentials arising from variations in jobs or territories.

An advantage of using the executive-opinion method of sales forecasting is that: None of these. The salespeople are closest to the market situation. It is highly accurate. It can be done quickly and easily. It is subject to statistical measures of validity.

It can be done quickly and easily.

The "80-20" principle exists in many companies because: A company does not conduct a marketing cost analysis. Management does not evaluate the marketing performance. All sales generate about the same rate of profit. Marketing efforts and costs follow the number of territories, products, and customers, rather than actual sales or profit from these units. Most marketing executives are sales-oriented and not profit-oriented.

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

When a leader anticipates, analyzes, and makes decisions, the leader uses: None of these. Problem-solving skills. Social skills. communication skills. Persuasive skills.

Problem-solving skills.

As far as the length of a budget period is concerned: The longer the budget period, the more accurate is the budget. None of these is correct. It is a mistake to tie the budget period to a product's seasonality. Quarterly budgets usually provide for more flexibility than do annual budgets. Longer budget periods provide for closer managerial control than do short periods.

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

An evaluation of sales reps' performance is important because it can: Reduce selling costs and boost the reps' morale. Reduce selling costs. Boost the reps' morale. Spot weaknesses in field selling efforts. Reduce selling costs, boost the reps' morale, and spot weaknesses in field selling efforts.

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

Which of the following ordinarily is the least controversial sales force travel and business expense, from the company's standpoint? Rental cars for calls on out-of-town customers. Laundry. Gasoline for personal use of company car. Personal telephone calls to home. Gifts for customers.

Rental cars for calls on out-of-town customers.

All of the following are qualitative bases for performance evaluation, except: Reps' knowledge of customers. Reps' selling expenses. The reps' ability to manage their time. Reps' personal appearance and health. Reps' ability to accept responsibility.

Reps' selling expenses.

One drawback to having the salespeople pay their own expenses is that this plan: None of these is correct. Encourages the salespeople to pad their expense accounts. Results in management's losing considerable control over the sales reps' activities. Is complex and expensive to administer. Cannot be used when the sales force is paid a straight commission.

Results in management's losing considerable control over the sales reps' activities.

The managerial activity that establishes a formal pattern for sales reps as they go through their territories is called: Call frequency. Routing. The buildup method. Breakdown method. Establishing territories.

Routing.

Among the following, sales performance evaluation is most closely related to: Sales operation. The marketing concept. Sales control. Marketing. Staffing the sales force.

Sales control.

The controlling factor in all budgeting and operational planning in a company is the: Sales forecast. Market potential. Sales quota. Sales potential. Market share.

Sales forecast.

Which of the following is least likely to serve as a supervisory tool or method. Sales quotas. Sales forecasts. Printed aids like sales manuals. Reports from the sales force. Telephone calls from a sales manager.

Sales forecasts.

A company's ______ is the maximum share of the market potential that this firm could achieve under ideal conditions. (We assume that the product market and time period have been stated.) Sales forecast. Sales potential. Market index. Sales quota. Marketing goal.

Sales potential.

All of the following, except for ______, are commonly used as control units for territorial boundaries: Metropolitan Statistical Areas. States. Counties. Sales potentials. Postal zip-code areas.

Sales potentials.

Tom works as a sales rep for a medical device manufacturer. He earns 10 % commission on sales volume in addition to a relatively high base salary of $30,000 dollars. However, his contract states that he has to cover all of his sales expenses out of his own pocket. This is a disadvantage of this kind of expense plan: Both Sales reps tend to spend less than optimal AND the expense plan is complex to administer. Answer Sales reps tend to spend less than optimal. Sales reps tend to spend excessively. The expense plan is complex to administer. None of the statements is true.

Sales reps tend to spend less than optimal.

The number of customers located within a geographical area and assigned to a salesperson is a: Sales territory. Sales quota. Sales potential. Territory budget. Metropolitan Statistical Area.

Sales territory.

Scanner technology has: Sales forecast are no longer needed because of scanner technology. Scanner technology has enabled retailers to provide their suppliers with useful sales data. None of these is true. Scanner technology has not improved sales forecasts. Manufacturers usually own the scanner technology that retailers use.

Scanner technology has enabled retailers to provide their suppliers with useful sales data.

The amount and type of leadership received by salespeople: Should vary among reps based on their individual differences and should vary over time based on the stability of the business environment. Usually should increase as the sales force gets larger. Should vary among reps based on their individual differences. Should be the same for all reps. Should vary over time, based on the stability of the business environment.

Should vary among reps based on their individual differences and should vary over time based on the stability of the business environment.

Consider a company's record of $ sales in territories A and B shown in the table below. Furthermore, the company incurred indirect advertising cost of $500,000 dollars. If the company decides to allocate the indirect advertising cost across the territories in proportion to $ sales volume then the allocation would be as follows: $ Sales Volume Territory A $1,200,000 Territory B $800,000 Territory A: $300,000 dollars, Territory B: $200,000 dollars None of the mentioned options. Territory A: $350,000 dollars, Territory B: $150,000 dollars Territory A: $200,000 dollars, Territory B: $300,000 dollars

Territory A: $300,000 dollars, Territory B: $200,000 dollars.

When using the buildup method to establish sales territories, the first step ordinarily is to determine: How many territories are needed. How many accounts to assign each salesperson. Call frequency for the average salesperson. The market potential. The call frequency per account per year.

The call frequency per account per year.

During the 2000s, the evaluation process is likely to become more important because of: The emphasis on profitable sales. The emphasis on relationship selling. The trend toward international sales. The emphasis on transactional sales.

The emphasis on relationship selling.

Chad and Betty both sell computer hardware for a distributor to educational institutions. They both graduated from UCF 5 years ago with a degree in Marketing and have produced the around the same total annual sales volume in the last 2 years working in territories of the same size. Sales management sets the annual quota for Chad to be $300,000 dollars and for Betty to be $200,000 dollars for 2022. Upon reaching the quota sales reps get a $10,000 dollars bonus in addition to salary and commission. This quota plan violates the following principle: The quota plan is not easily implementable. The quota plan is not quantifiable. None of the statements is true. Both The quota plan is not fair AND it is not quantifiable. The quota plan is not fair.

The quota plan is not fair.

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. The rep sells a specialty product, rather than a convenience good. The firm uses selective, rather than intensive distribution. The district is a newly-opened market, rather than being a well-developed territory. None of these makes for smaller territories.

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

Which of the following statements is true? No consideration for the sales rep's age or health should be given in setting sales quotas. Sales quotas should be given to the sales force by top management to protect the sales manager from frictions with the sales force. None of these. All of these. The sales manager should involve the sales force in the development of sales quotas.

The sales manager should involve the sales force in the development of sales quotas.

Genuinely caring about each individual subordinate is an example or type of: Transactional leadership. Task orientation. Verbal feedback. Articulating a vision. Transformational leadership.

Transformational leadership.

Suzy works as a senior sales executive for a company that promotes traveling to Orlando. This company receives payments from amusement parks, restaurants and hotels in the area. Suzy's sales manager sets he quota to visit with 5 clients per day. Upon consistently reaching the quota Suzy receives a bonus of $3,000 dollars at the end of the month. In this plan the quota is set based on _________. expenses not exceeded results delivered activity provided None of these is true.

activity provided.

An analysis of ledger expenses: is a relatively expensive type of analysis. is one of the most valuable types of analysis for a sales organization. can be looked at over time to determine trends. provides highly detailed information. All of these.

can be looked at over time to determine trends.

As the sales potential of a given territory increases, sales performance of the sales rep assigned to that territory will generally: stay the same. increase for a time, but then level off. increase for a time, but then decrease significantly. increase at the same rate as the increase in sales potential. decrease.

increase for a time, but then level off.

In a marketing cost analysis, the textbook identifies three methods used to allocate indirect costs. One method is to divide indirect cost equally among territories. This method: None of these. is the method that is fairest to all territories. is the easiest of the three methods. uses the underlying philosophy of applying the cost burden to where it can best be borne. is the most accurate method.

is the easiest of the three methods.

An analysis of sales volume tells us nothing about the ______________ of each territory. usefulness popularity profitability All of these relative success

profitability.

Overlapping territories: generally result in increased selling efficiency. Both A and D. often make sense. tend to be a result of management's trying to avoid friction. are good for morale.

tend to be a result of management's trying to avoid friction.

The sales manager generally reaps the largest possible gain by working with the ______________ segments of the organization. strongest weakest biggest fastest. oldest

weakest.