MAR 4418 Exam 1

A drawback to organizing the sales force in a geographical specialization is that: A. it results in more travel time for each sales rep. B. it leads to uneven coverage of the market. C. there is usually no specialization of marketing activities. D. customers may get called on by multiple reps from the same selling firm. E. All of the above

C

A problem with stress interviews is that A. They are not valid predictors of performance. B. They are too difficult to conduct. C. They are too costly to conduct. D. Applicants may get upset about having a stress interview. E. They are illegal.

D

A sales quota will most likely act as an aid in: A. Helping prepare a job description. B. Forecasting sales. C. Establishing territories. D. Controlling and directing salespeople's activities. E. Conducting sales training programs.

D

An organization which has many cross-functional teams: A. Is a thing of the past B. Is usually a vertically structured organization C. Does not believe that all marketing activities should be organizationally integrated and coordinated. D. Is usually a flatter organization in which coordination is across activities. E. Utilizes top-down control

D

An unwanted side effect of a sales contest might be: A. Motivate salespeople. B. Increase sales. C. Boost morale. D. Decline in post-contest sales. E. None of these.

D

Specific performance objectives: A. Are only needed when a rep misses quota. B. Are not a critical part of motivation. C. Are impossible to measure. D. Should be agreed upon by both the rep and manager.

D

When planning and conducting a sales contest, management should: A. Use an outside consulting firm to conduct the contest, thus ensuring objectivity B. Run the contest for at least six months. C. Not build the contest around a theme D. Provide each salesperson with a reasonably equal chance to win. E. Not give cash as an award.

D

When salespeople attribute a failure to "task difficulty," they are likely to do one or more of the following except: A. Become frustrated. B. Change strategy. C. They are likely to do All of these. D. Avoid the situation. E. Seek help.

D

When using selling teams, firms tend to A. Have more cross-functional communication B. Eliminate middle management positions C. Be flatter D. All of these E. None of these

D

Which of the following does not contribute to job enrichment A. Greater authority. B. Variety in tasks. C. All of these contribute to job enrichment. D. Greater compensation. E. Greater responsibility.

D

Line and Staff Organization

Dotted line is for advisory authority

A company wants to provide security and incentive in its sales compensation plan. The sales job involves some missionary activities, but management also wants to encourage aggressive selling. What type of compensation plan should this company use? A. Salary plus fringe benefits. B. Straight commission. C. Straight salary. D. Salary and expenses. E. Combination.

E

A company will most likely use a straight salary plan for compensating its sales force when: A. Adequate field supervision is not feasible. B. Part-time salespeople or independent contractors are used. C. Very little non-selling, missionary type of work is needed. D. The firm is in a weak financial position. E. The sale involves a complex product, and requires lengthy periods of service and negotiations.

E

When salespeople attribute their failure to their "lack of ability," they are likely to do one or more of the following except A. Seek help. B. Increase effort. C. They are likely to do All of these. D. Get additional training E. Avoid the situation.

E

Which of the following factors account for the growing use of e-commerce and telemarketing as a form of sales force specialization A. All of these contribute to telemarketing's growth. B. Many marketers find that it increases the efficiency of their selling effort. C. It is especially adaptable to major-account selling. D. Many buyers prefer it over personal sales calls in certain selling situations. E. Many buyers prefer it over personal sales calls in certain selling situations and many marketers find that it increases the efficiency of their selling effort.

E

Which is the most common job title for salespeople? A. Sales Rep B. Relationship Manager C. Business Development Manager D. Consultant E. Account Executive F. Account Manager

F

Product Operation Organization

For complex, unrelated products

Key Account Management

Group of salespeople that focus on one or a few large customers

As one of its goals, a good plan for paying salespeople should

Help management to direct the activities of the sales force.

Formal vs Informal Citizenship Behavior

How you are supposed to do this vs how you actually do them

A missionary salesperson should be paid: A. Commission plus bonus. B. Straight Salary. C. Salary plus commission. D. Salary plus profit sharing. E. Straight commission.

B

In general, a contest should: A. Have a broad goal. B. Have a definite purpose. C. Be altered as company objectives change. D. Be used for fun. E. Always include balloons.

B

When salespeople attribute their failure to "bad luck," they are likely to do which one of the following: A. Increase effort B. Avoid the situation C. Change strategy D. Seek help

B

The number one cause of plateauing is

Lack of clear career path

What are illegal interview questions?

Ones that have to do with: Age, Arrest Record, Health, Marital Status, Religion, Nationality, Drink Socially, Drugs

What is the marketing mix?

Product, Price, Place(Distribution), Promotion

Market Organization

Salespeople sells all products but only to certain type of customer

A recently promoted district sales manager was nominated by her company to attend an executive development program conducted by a well-known university. In Maslow's hierarchy of needs, this program is most closely related to the rep's need for

Self-actualization

Functional Organization

Solid line is for formal authority

The sales compensation plan that typically provides maximum security and stability of earnings for most sales reps is:

Straight salary

The idea underlying the use of a progressive rate of commission is that

The first sale is relatively easy to get, but it is difficult to get reorders.

Behavioral Concepts of Motivation

1. Are the rewards desirable? (valence) 2. Does better performance lead to greater rewards? (instrumentality) 3. Does more effort lead to better performance? (expectancy)

In order, what are the top five customer complaints about salespeople?

1. Does not understand our business 2. Inadequate product knowledge 3. Does not respond to our needs 4. Does not listen to our needs 5. Should be more of our advocate

Career Stages

1. Exploration 2. Establishment 3. Maintenance 4. Disengagement

Four types of sales forces

1. Outside (SP visit customers in person) 2. Across the counter (customers visit SP) 3. Inside (SP call on customers) E-commerce (alternative way to reach customers- not a sales force

Three dimensions of motivation

1. The choice to do actions to accomplish a specific task/outcome 2. Intensity of effort expended toward those actions 3. Persistence of effort

Selection tools such as application blanks, interviews, and reference checks: A. Are used to help measure each applicant against predetermined hiring qualifications. B. Are very useful in building a job description. C. None of these is true. D. Are used heavily in the recruiting stage of the selection process. E. Can be bypassed by sales managers who are good at judging people.

A

Role Conflict

Caught between customer wants and what the company allows

In addition to their large buying size, strategic accounts are likely to be differentiated from smaller accounts by their:

Complex buying process.

Horizontal Organization

Cross Functional

An advantage of the straight salary plan for compensating salespeople is that it: A. Provides a direct relationship between sales volume and salary expense. B. Offers a sales rep much freedom of operation. C. Enables management to reduce the amount of field supervision. D. Has no administrative problems. E. Is good for providing stability of income to a salesperson during the developmental stage of a territory or product.

E

Product Staff Organization

Each product line is supported by a highly specialized group headed by a product manager

Experts recommend that the incentive potential for outstanding performance compared to average performance should be

Three times that of average performance

What is the promotional mix?

advertising, public relations, sales promotion, personal selling

Role Ambiguity

each customer is unique and new, salespeople don't know what to do

Dual Factor Theory

identifies motivators and hygiene factors as two sets of conditions at work that can satisfy needs

A salesperson is least likely to earn more than the sales executives when the sales force pay plan is: A. A straight salary. B. A straight commission. C. A commission with a guaranteed drawing account. D. A salary plus commission on net sales. E. A salary plus commission on gross margin.

A

As a general rule in an interview for a sales job, which of the following questions are you legally allowed to ask an applicant before hiring the person A. Why did you leave your prior job? B. Are you married? (if it's a man, but not a woman.) C. How is your health? D. Have you ever been arrested? E. How old are you?

A

Gross margin quotas make more sense than sales volume quotas: A. If the sales reps have control over prices. B. If the salespeople are paid by commission. C. All of these. D. None of these. E. If the sales force pays its own expenses.

A

In a functional type of sales organization: A. Functional executives (for example, advertising manager or marketing research director) may have line authority over the sales force in matters relating to the given functional area. B. Sales planning and sales operating activities are not separated. C. There usually is a strong, one-man rule. D. There is no opportunity to specialize the sales force by product line. E. None of these is likely to occur.

A

In the text book's classification of types of sales jobs, which one of the following involves the most complex problem solving? A. Consultative Sellers B. New Business Sellers C. Sales Support Salespeople D. Delivery Sellers E. Order Takers

A

It is especially difficult to assimilate new sales reps when: A. They are placed into a sales territory with no home-office training. B. They begin a training program with no field experience. C. They are scheduled to have daily meetings with the sales manager. D. They are assigned to a team-based work group. E. They are assigned to the home-office.

A

The use of videoconferencing to conduct interviews A. Saves Money B. Overcomes all the difficulties of a face-to-face interview. C. None of these is true. D. Is not a very practical idea and therefore is not often used. E. Is only used for international positions.

A

When a company has its salespeople use virtual offices: A. Are "virtual" because salespeople are "in" them wherever they are. B. All of these. C. The company still has district offices. D. Sales manager must see their reps more frequently. E. It creates higher selling costs due to the increase use of technology.

A

Which of the following is a major trend today in sales force compensation? A. Companies are designing plans which stress customer satisfaction rather than straight sales volume. B. The average level of pay is decreasing. C. Combination plans are declining in popularity. D. Straight commission plans are increasing as a percentage of total plans. E. Fringe benefits are not being used as much as in the past.

A

Which of the following is an important reason companies give recruits literature about the company even before hiring them? A. Judging the culture fit and learning more about the company are both important reasons. B. So that the recruit can learn more about the company. C. So that the recruit can judge whether s/he will fit into the company culture. D. So that the recruit can share the information with other people who might be interested in the company. E. To keep up with other companies who are doing it.

A

With the straight-commission plan of compensating the sales force, a salesperson's earnings become a ______ cost. A. Variable B. Fixed. C. Taxable. D. Static. E. Marginal.

A

"Someone with experience, position, or power who adopts you as a protege and helps you advance your career" best describes a: A. None of these. B. Mentor. C. Trainer. D. Professor. E. Peer group.

B

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

B

Team selling is not the best alternative in every situation because: A. there is no specialization of marketing activities. B. it tends to be expensive. C. it does not lend itself to complex situations. D. customers generally do not like it. E. All of these

B

The fact that salespeople generally operate without close supervision is most likely to be a cause of: A. High level of safety and security. B. Role ambiguity. C. Motivation. D. None of these. E. High level of job satisfaction.

B

To satisfy a rep's motivation needs in contrast to her hygiene needs, a company might A. Provide her with a larger, better-furnished office. B. Promote her into a more challenging job with greater responsibility. C. Provide her with a company car. D. Increase her salary. E. Provide her with a larger expense account.

B

Which of the following is the best argument in favor of placing a limit on a salesperson's earnings? A. It encourages a sales representative to work harder. B. Salespeople should not receive financial benefit from "windfall" sales over which they had no influence. C. It helps the company control sales costs. D. It is good for executives' morale. E. A sales representative should not be able to earn an outrageous sum of money.

B

With regard to the motivation of those under them, managers A. Mangers most frequently rank job security as being most important to employees. B. Often don't know what is the most important to their employees. C. Can predict accurately what will appeal to their employees. D. Managers rank promotion as the number factor motivating their employees. E. None of these.

B

A personal interview with a sales rep is a reliable predictor of success in the sales job because: A. Interviews are the most widely used selection tool. B. The sales manager is known to be a highly effective interviewer and can consistently react so as to affect applicants' responses. C. The sales job requires skills similar to those which are on display in the interview. D. It enables the interviewer to get a "gut" reaction instead of a merely objective evaluation.

C

A regressive rate of sales commission is consistent with the idea that: A. Reorders bring in a higher rate of profit than initial orders. B. The company has the problem of split commissions. C. Reorders come frequently and inexpensively, but the initial order is hard to get. D. A guaranteed drawing account is used. E. The first sale is easy to get, but reorders are difficult to sell.

C

Frederick Herzberg, the psychologist, is most closely associated with the ______ theory of motivation. A. Psychoanalytical. B. Expectancy. C. Motivation-hygiene. D. Hierarchy of needs. E. Personality-reward.

C

Sales force specialization by type of customer or market group A. Means that more than one rep from a seller will call on the same customer. B. Is best suited for a company selling to similar types of customer groups. C. Enables a rep to become better qualified to deal with the needs and problems of a specific type of customer. D. Eliminates the situation of having more than one sales rep in each geographical area. E. Is not as popular an organizational structure as it was some years ago.

C

The most widely used of all sales selection tools is the A. Long application blank. B. Physical exam. C. Personal interview. D. Psychological tests. E. Reference check.

C

The selection tool most likely used as an initial screening device is a(n): A. Assessment center. B. Long guided interview. C. Resume. D. Battery of employment tests. E. Reference check.

C

When IBM reconfigured its sales force by assigning reps to different industries, it was using A. Sales force specialization. B. Geographic specialization. C. Market specialization. D. None of these. E. Product specialization.

C

When a sales force is organized by product lines: A. There is no opportunity for geographical specialization. B. A company cannot effectively use staff assistants who specialize by product line. C. More than one sales rep may call in the same customer. D. This is not a good structure for selling complex, technical products. E. Usually each customer is called on by only one salesperson in the company.

C

Which of the following factors is least likely to influence the level of sales force compensation? A. The firm's financial position. B. The method of compensation. C. The level of pay of factory and office workers in the firm. D. The size of the company. E. The age of the salespeople.

C

Which of the following is most likely to be classed as a "recognition and honor award" in motivating sales representatives? A. Salary increase. B. Company paid retirement plan. C. Desk trophy and congratulations from chief sales executive. D. Unlimited expense account. E. Bonus check at end of year.

C

Which of the following is the greatest limitation of a geographical territory type of sales organization? A. It is a high-cost type of organization. B. Large customers cannot be services properly. C. Sales reps may not have the necessary expertise in all the products they sell. D. It is difficult to set up sales territories. E. The company must develop territorial sales executives.

C

A competitive limitation to the straight salary plan for compensating a sales force is that: A. Usually it is not simple to understand or economical to administer. B. Management has more difficulty controlling the activities of the sales force. C. It usually is not workable when the job entails only missionary activities. D. It offers little direct incentive for the salespeople. E. It is the highest cost plan of all the major types.

D

In addition to compensation, the job offer is likely to include all of the following except: A. Packing and moving of all household furnishings and equipment. B. Insurance and vacation pay. C. Education benefits. D. Child care and household cleaning services. E. Retirement contributions and profit sharing.

D

In the design of a compensation plan, a factor over which a sales rep has some control, but which cannot be measured objectively is A. Number of product demonstrations made. B. Orders from new accounts. C. Gross margin by product line. D. Customer goodwill developed toward company. E. Number of shelf and window displays obtained.

D

In which of the following situations will the salesperson most likely be on an unlimited expense-payment plan? A. A manufacturer of small pumps who has a weak financial capability. B. A hardware wholesaler selling to retail stores in the midwest C. Missionary salespeople working for a large soap manufacturer D. A manufacturer of industrial valves who is opening a new territory in the southwest. E. A driver-salesperson for a beer distributor in Colorado.

D

Surveys of salespeople show that most salespeople say that they: A. Prefer cash incentives and are highly motivated by them. B. Prefer merchandise incentives but are not motivated by them. C. Prefer to have incentive programs tied to individual quotas rather than contests. D. Prefer cash incentives, but are not motivated by them. E. Prefer merchandise incentives and are highly motivated by them.

D

When designing a new sales organization or revising an existing one, a good generalization to follow is A. Build your organization around your good people. B. Build the organization around the informal structure, because that's the way the company really works. C. Design the organization from the top down, starting with the president and working your way logically down to the sales department. D. The structure should reflect a market orientation, so focus attention first on the market's needs and the sales force. E. Centralize the organization.

D

Which of the following is not a selection tool? A. Application forms B. Assessment centers C. Personal interviews D. Job advertisements E. Employment tests

D

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

D

A trend in sales force re-structuring is to: A. make the organization as inflexible as possible. B. structure around people, not activities. C. All of these. D. move decision-making authority to the managers (i.e., away from subordinates). E. move toward flatter organizations.

E

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

E

All of the following represent different types of mentoring programs except for A. Experienced co-workers chosen to guide and teach new reps the ropes. B. Senior manager assigned to a sales rep in order to learn the corporate culture. C. Co-workers who are chosen to be advisors and/or trainers to new hires. D. Senior executives help new salespeople climb the corporate ladder. E. New hires selected to share the learning experience with other new hires.

E

In the introduction to chapter 1, the textbook argues that it is critical for sales managers to hire salespeople who: A. Deliver a great sales pitch B. Understand the product C. Are excellent closers D. Work hard E. Listen to customers

E

Sony Electronics sells its products through its own Sony retail stores, through traditional retail stores (like Best Buy), and through its website sony.com. This most directly relates to A. Selling to executives B. Globalization C. CRM and SFA D. Diversity E. Complex channels of distribution

E

The main objective of a non-directed interview is to: A. Probe in depth into the applicant's work experience. B. Provide standards for comparing the various applicants. C. See how the applicant reacts under stress. D. Help a company who has inexperienced interviewers. E. Get the applicants to talk about themselves.

E

When a customer wants lenient credit terms but our credit department wants to offer short-term credit with very stringent terms, our sales reps are likely to experience A. Role ambiguity. B. None of these. C. Job satisfaction. D. Improved self-concept. E. Role conflict.

E

When making a reference check, the key question which a sales manager should ask an applicant's former employer is A. Did he (or she) cause any problems in your firm? B. Was he (or she) a good worker? C. Was he (or she) a good worker? D. Was he (or she) well liked by fellow workers? E. Would you rehire him (or her)?

E

Which of the following is one of the primary determinants of whether salespeople will cooperate with team selling efforts. A. Non-financial incentives. B. None of these. C. Financial Incentives. D. Peer expectations. E. Belief in the goal of the team.

E

Why do some managers prefer to make the job offer in person A. The recruit's body language can disclose important information. B. Can obtain quicker replies from recruit. C. Objections can be answered. D. Allows pressure to be put on the recruit. E. All of the above

E

Geographic Organization

Each salesperson sells all products to all customers Does not allow for product specialization

Attribution Theory

Perceived reasons for failure: 1. Ability 2. Effort 3. Strategy 4. Task Difficulty 5. Luck

According to your text, the most commonly used interview is

Something between guided and non-directed.

Expectancy Theory

only put forth effort when valence, instrumentality, and expectancy are all at high levels

Maslow's Hierarchy of Needs

physiological, safety, social, esteem, self-actualization

Role Theory

salespeople must understand exactly what they must do in order to improve their performance