Final

Which sales forecast is correct based on the regression model described below if the company decides to spend $10,000 on advertising (y = 70.5 + 3.0x) where: y = unit sales in thousands. x = dollars spent on advertising on thousands). What are forecasted unit sales?

100.5 units.

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?

2,000.

Regarding the drawing of territorial boundary lines:

A good generalization to follow is this: Do not split one of your basic control units.

A limited-payment plan for reimbursing the salespeople's expenses is likely to be used when:

A hardware wholesaler has reps regularly calling on hardware stores in the southeast

In which of the following situations will the salesperson most likely be on an unlimited expense-payment plan?

A manufacturer of industrial valves who is opening a new territory in the southwest.

In which of the following situations is it best for the company to have a formal sales territorial structure?

A medium-sized manufacturer of gardening tools is selling to garden nurseries throughout five Midwestern states.

Illicit drug use among salespeople is:

A pervasive and costly problem.

A performance goal assigned for a specific period of time to a marketing unit such as a salesperson or a branch office is:

A sales quota.

Provision for a centralized sales training department probably would be included in the:

Administrative budget.

Which of the following data types is most commonly used as a GIS input?

Aerial photographs.

A sales manager must use a combination of tools and techniques to be an effective leader. These include:

All of these (sales reports, personal contact, fax messages, sales meetings)

Sales managers in a behavior-based control system are expected to actively engage in:

All of these (transactional, transformational, situational)

Which of the following is sufficient for high group morale among salespeople?

All reps believe in and are striving to achieve the same goal.

A well-designed plan for paying salespeople's expenses should:

Allow a representative to earn the same net income whether on a business trip or at home after work each day.

An unlimited-payment plan for controlling sales force expenses:

Allows for cost differentials due to variations in territories or jobs.

As a supervisory tool, reports from the sales force:

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

Over-supervising a sales force is likely to:

Be resented by many sales reps.

An example of a citizenship behavior exhibited by a salesperson:

Being courteous and respectful of the rights of others. Never missing a meeting. Having a positive attitude, and never complaining about a problem. Volunteering to serve on a community service committee. All of these.

_____________ is when a salesperson sells to a customer that is in another salesperson territory.

Claim jumping

Transactional leader behavior is:

Clarifying company rules

An example of a transactional leader behavior is:

Clarifying company rules.

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Wayne Rexburg is asked which of the models - moving average models, exponential smoothing models, and regression analyses - is most accurate? Wayne should reply:

Depending on the data and the objectives of the forecaster, any one of the techniques may provide the most accurate sales forecasts.

When using the breakdown method to establish sales territories, the first step ordinarily is to:

Determine the company's sales potential (that is, the total sales volume that the company can except in its full market).

The following actions are available to managers or supervisors in the case of third party harassment except for:

Do nothing

The sales budget, in contrast to other budgets in the sales department, is most likely to include items for:

Dollar and unit revenue anticipated from each product.

An activity quota will probably be used when management wants to:

Enter and develop a new market

An example of unethical behavior is:

Expense account abuse.

A manufacturer has 20 sales representatives using their own cars to cover territories of various sizes in the eastern half of the United States. To reimburse these people for the use of their cars, the plan most equitable to both management and the sales force is a:

Flexible allowance per month

A producer of industrial valves and gauges has a sales force of 40 people who use their own cars to cover territories of various sizes in the western half of the United States. To reimburse these people for the use of their cars, the plan most equitable to both management and the sales force is:

Flexible allowance such as the Runzheimer Plan

Which of the following expenses is least likely to be reimbursed by the company?

Fuel costs for personal use of company car.

Which of the following statements is true?

Garment makers tend to use shorter budget periods than auto manufacturers.

A drawback to basing sales quotas on last year's sales is that this method:

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

When designing sales territories the ideal goal is to:

Have all districts be equal in both sales potential and work load for the reps..

Ultimately, the measure of good leadership is:

How the manager behaves

With respect to revising sales territories:

If territorial revision has been done properly, a sales rep in a now-smaller district may end up with higher sales and earnings than before the redistricting.

For which of the following reasons are computers used in sales?

Improved accuracy of orders. Decrease in order processing time. Increased customer service capabilities. All of these.

All of the following are transformational leader behaviors except:

Informing basic rules.

Situational leadership involves which of the following leader behaviors?

Informing basic rules. verbal feedback. articulating a vision. individualized support. All of these.

A good business relationship exemplifies the leader's appropriate use of:

Interpersonal skills

Call frequencies:

Involve management determining how many times per year an account should be visited. Are affected by the sales potential, the nature of the product, customer buying habits, competition, and cost of calling on a customer. Can be determined using computer models. A, B, and C.

An advantage of using the executive-opinion method of sales forecasting is that:

It can be done quickly and easily.

All of the following are reasons for establishing sales territories, except:

It reduces the number of salespeople needed.

Regarding a strategic sales forecast:

It should be done within the broader context of strategic marketing planning.

All of the following are characteristics of a good quota plan, except for:

It should have unlimited flexibility

When a joint sales call is made, the sales manager is looking to evaluate the sales rep's ability to:

Know and understand their customer's businesses and their needs. Respect their customer's time. Treat customers in a consistent and equitable manner. Gain commitment. All of these.

Today most firms are willing to pay for:

Laptops, Home photocopiers, Car Phones, Home fax machines. All of these

An unlimited payment plan for sales reps expenses

Makes it difficult for management to accurately forecast travel and business expenses of sales reps

Which of the following is an advantage of a limited payment plan for controlling sales force expenses?

Management can budget its sales expenses more accurately

Forecasting sales is an iterative process involving the sales forecast and:

Marketing expenditures.

Which of the following forecasting methods is the most widely used?

Mathematical models

The method of budgeting by percentage of sales reflects all of the following except:

Multiplying the sales forecast by exactly the same percentage for each category of expense.

All reps of a given sales force having high job satisfaction is:

Necessary but not sufficient for high group morale.

Regarding the budgeting process for the entire firm:

None of these is correct.

Personal characteristics associated with excellent leadership include all of the following, except:

Older age (50 years, plus)

It is recommended that sales managers review their territory structure:

Once every year.

For sales forecasting, the sales force composite method has the merit of:

Placing responsibility on those who will have to meet the target.

Elements of a good quota plan include

Realistically attainable. Easy to understand. Fair. Based on objective market research. All of these

The best method for a manager to use when dealing with a situation of substance abuse within a sales rep is:

Refer the sales rep to professional counseling.

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

With respect to sales reps' expenses, the federal income tax law:

Requires some substantiation of each expense which is claimed as a deduction

Transformational leader do not merely bark orders- they lead by example. This is best represented by

Role modeling

Which of the following behaviors is a transformational leader behavior?

Role modeling.

The managerial activity that establishes a formal pattern for sales reps as they go through their territories is called:

Routing.

What the textbook referred to as "indirect supervisory aids" includes:

Sales Quotas. The expense account plan. Only two of A-B-C.

Changes in planned marketing expenditures have an effect on which of the following:

Sales budgets and sales forecasts.

The controlling factor in all budgeting and operational planning in a company is the:

Sales forecast.

Which of the following is least likely to serve as a supervisory tool or method.

Sales forecasts.

To assist in the evaluation of the productivity of salespeople, management can use:

Sales quota plan.

The most widely used type of sales quota is one based on:

Sales volume.

Which of the following usually is the first step in the process for establishing sales territories?

Select the basic control unit.

In sales department budgeting, items for salesforce salaries and sales force commissions are most likely to be found in the ______ budget.

Selling expense.

When sales-volume quotas are based on territorial potentials:

Sometimes quotas based on territorial potentials have to be adjusted downward because a new rep is covering that district.

Corporate policies which would discourage sexual harassment include:

Statements about behavior which are prohibited. Penalties for misconduct. Procedures for making, investigating, and resolving complaints. Procedures for education and training. All of these.

As more salespeople use virtual offices:

Supervisors will spend more time in the field with their reps.

Which of the following statements are correct about test marketing?

Test marketing involves observing sales results in one market and using the results to forecast sales in other markets or the whole market.

Which of the following statements is true?

The budget making process begins with a determination of the company's forecast for sales and resultant activities for the budget period.

Which of the following statements is wrong?

The cash budget and the profit and loss budget are the same. Everything starts with the production budget. Time lags are factored out of the budgets. All of these are wrong.

When problems are encountered with subordinates, it is critical that communication is established between the sales manager and sales rep. Effective feedback should include all but:

The dismissal of any and all extenuating circumstances.

A company will most likely own the cars used by the salespeople when:

The firm has its own truck fleet with appropriate maintenance facilities.

One feature of a plan whereby the salespeople pay their own expenses is that:

The plan is relatively simple and economical to administer

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.

Management's decision regarding which type of expense plan to use is least likely to be affected by:

The sales forecast for the coming year

Which of the following statements is true?

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

Activity quotas are most likely to be used in which situations:

The sales reps take no direct orders.

To say that "the market potential for snow skis in Colorado and Utah is 200,000 pairs" is not a correct way of stating market potential because:

The time period for these sales is not stated

Which of the following is a function of the budget?

To control expense/revenue ratio.

A company is likely to use a sales volume quota when management wants:

To correct an unbalanced inventory situation by pushing sales of one item

Charisma is something most commonly associated with:

Transformational leadership.

Genuinely caring about each individual subordinate is an example or type of:

Transformational leadership.

First step in the budgetary process is to:

Translate the sales forecasts into work that must be done.

A sound principle to follow in demand forecasting is to:

Try to use more than one forecasting technique in order to check one against the other. Develop minimum and maximum estimates to get a range of possible market variation. Only two of A-B-C are correct.

Accurate sales forecasts would be difficult to obtain for which of the following products?

Virtual reality games.

An annual (rather than quarterly) budget period is most likely to be used in a company that:

Wants to minimize the time and detail that goes into the budgeting process.

Which of the following factors is likely to have the least influence on who owns the cars used by the sales force?

Whether the reps are on a limited or unlimited expense plan.

If a manager wants to motivate experienced salespeople to perform at higher levels or to do certain aspects of their jobs better, the best leadership behavior or style to use is:

articulate a vision.

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As the sales potential of a given territory increases, sales performance of the sales rep assigned to that territory will generally:

increase for a time, but then level off.

When sophisticated computer modeling is used to design territories,

it typically involves computer technology known as GIS.

Overlapping territories:

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