Sales Management 4420 Exam Two Review

Stages in Sales Terriotory

1. Select basic Control Unit 2. Estimate market potential in each control unit 3. Combine control units into tentative territories 4. Perform workload analysis 5. Adjust tentative territories to allow for sales potential and coverage difficulty differences 6. aSSign salespeople to territories

The phenomenon of a small percentage of customer or products accounting for a high percntage of the companys sales is called the

80:20 Principle

6. Assign salespeople to territorys

All salespeople do not have the same abilities, nor are they equally effective. Assign salesperson to territory where they will contribute the most success.

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 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 the newspaper

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

Boredom

What is the most popular motivator for salespeople?

Cash awards

3. Form Tentative Territories

Combining basic control units into one larger one.

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

Company policies can hinder a salesperons effectiveness by indirectly affecting their valences for rewards accuracy of their epectations and instrumentality perceptions

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

Composites of intelligence personallity and apitude tests

2. Estimate Market potential

Considering likely demand from each customer and prospect i the control unit.

When conducting a job analysis current salespeople should be observed and or interview to

Determine what they actually do

The breakdown method of determining sales force size

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

4. Perform workload analysis

Determining how much work is required to cover each territory.

Elizabeth is a sales manager for a golf products company. She has conducted first job anaalysis and second written a job desription. Next

Develop a statement of job qualifications

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

Earnings oppurtunity Ratio

Pam is 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

The magnitude of a salespersons instrumentality estimates reflects the sales reps perceptions of his or her ability to control or influence his or her own performance

False

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

False

Brad is a salaried sales rep for an engineering company, brad is likely to have a higher magnitude of instrumentatlity estimate associated with

Performance of sales

Long enterprise makes and sells xray equipment. It needs to hire three new salespeople with specific qualifications and abilities. The company decided to have a company ____ particpate in the hiring process with the sales manager

Recruiting specialist

Bell- mark sales sells a single color flexographic printer to plastic manufacturers that need to print company logos, poducts desription, 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% market share.

Sales potential

There are currently two types of popylar ways to estimate sales response functions based on the number of sales cells

The judgement based and empiracal based methods

1. Select Basic Control Unit

The most elemental geographic area used to form sales territories Commonly used: States, trading areas, counties, cities, or metrpolitian statistical areas, zip codes.

Account Analysis

The sales potential for each customer and prospect in the territory is estimated. The sales potential derived from the account analysis is then used to decide how often each account should be called on and for how long.

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 breakdown of sales analysis into a series of report is called hierchical sales analysis

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 oppurtunities for esteem and self actualization

True

Which of the following statements about sales quotas is true?

a b and C

5. Adjust tentative territories

adjusts the boundaries of the tentative territories established to compensate the differences in the workload.

For a sales quota to be effective the quota must be

attainable, easy to understand and complete

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

attainable, easy to understand, and complete

the buying power index would be most useful in predicting sales for which of the following products

chocolate cake mix

The recruitment effort should

concentrate on sources that are most likely to produce the kind of people needed to fill a 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

Natalie is conducting a personnal history evaluation of her existing sales force members to hire new sales reps 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 statemetn

Teresa is highly motivated sales rep she will likely spend considerable time

developing sales presentations

After deciding which basic control unit to use for her sales force, natalies next step in territoiral design is to:

estimate market potential for each control unit

Which of the following is NOT one of the steps in the workload approach to determing 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 sales career path are

exploration, establishment, maintence and disengaement

For a quota to be effective it must be challenging quantitive and easy to understnad

false

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

false

The disengagement stage of a salespersons career is also referred to as the self termination period

false

all firms actively recruit salespeople

false

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

false

people in a companys production accounting and HR departments are always poor candidates for sales jobs

false

application blanks

help managers to prepare for job interviews with applicants

Which of the following statements about how personal characteristics affect a salespersons level of motivation is true

intelligent sales[people have higher expectny and instrumentatlity perceptions than those with less intelligence

which of the following statements about who is responsiable 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

The most popular type of sales quota is _____

sales dollar quotas

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

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 step in the actual process of designing sales territories is to

select basic control unit

The magnitude of a salespersons expectancy perceptions indicates

the degree to which that individual believes expending effort on job activities will infuence ultimate job performance

Valences of rewards are the salepersons perception of

the desirability of receiving more fo a particular reward

Expectancies are the salespersons perception of

the linakge between job effort and perfomance

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

through expanded sales training programs

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

true

In terms of sales forecastng expotential smoothing is a type of moving average

true

The higher the earnings oppurunity ratio is within the company the higher the average salespersons valence for pay is likely to be

true

The methods of conducting personal interviews can be classifed as either structural or unstructured

true

customers can be an excellent source of sales recruits as referrals

true

job descriptions help to determine what a company is looking for in terms of job applicaants

true

choose a subjective forecasting method

user expectations

WIthout a detailed up to date job description a sales managerwill have difficulty deciding

what kind of personnel are needed such as qualification or perferred 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