mar4418

Red Motley, a noted sales trainer and writer, once said, "Nothing happens until somebody... ...pays attention." ...wines and dines the customer." ...sells something." ...goes to work." ...smiles."

...sells something."

WHAT ARE WE GONNA GET ON THIS TEST????

A 100!!!

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

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

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

A straight salary.

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

All of these

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

All of these.

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

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

Are "virtual" because salespeople are "in" them wherever they are.

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

Are used to help measure each applicant against predetermined hiring qualifications.

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

Avoid the situation

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

Avoid the situation.

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

Avoid the situation.

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

Belief in the goal of the team.

Relationship selling is: Focused on generating new accounts. Building long term associations with a select number of carefully chosen accounts. Reminiscent of the back-slapping, joke-telling sales professional of days gone by. Building short term associations with a large number of accounts. More the responsibility of the sales manager than the salesperson.

Building long term associations with a select number of carefully chosen accounts.

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

Child care and household cleaning services.

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? Salary plus fringe benefits. Straight commission. Combination. Salary and expenses. Straight salary.

Combination.

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

Companies are designing plans which stress customer satisfaction rather than straight sales volume.

In addition to their large buying size, strategic accounts are likely to be differentiated from smaller accounts by their: Desire to concentrate on domestic markets, to the exclusion of foreign markets. Preference for using a line organizational structure. Desire to avoid dealing with a selling team - preferring instead to deal with one sales rep. None of these is correct. Complex buying process.

Complex buying process.

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: Complex channels of distribution Selling to executives Diversity CRM and SFA Globalization

Complex channels of distribution

In the text book's classification of types of sales jobs, which one of the following involves the most complex problem solving? Consultative sellers. Sales support salespeople. New business sellers. Delivery sellers. Order takers.

Consultative sellers.

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

Controlling and directing salespeople's activities.

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

Customer goodwill developed toward company.

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

Decline in post-contest sales.

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

Desk trophy and congratulations from chief sales executive.

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

Enables a rep to become better qualified to deal with the needs and problems of a specific type of customer.

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

Entertainment.

When an American firm establishes foreign sales offices to sell directly to retailers or manufacturers, this ordinarily is done because: Demand is too small to warrant using foreign middlemen. Foreign middlemen perform fewer services than U.S. middlemen. Foreign middlemen are too aggressive in their selling. Foreign wages are going up too fast. Foreign governments prefer to have the American sales offices.

Foreign middlemen perform fewer services than U.S. middlemen.

In a functional type of sales organization: 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. There is no opportunity to specialize the sales force by product line. There usually is a strong, one-man rule. Sales planning and sales operating activities are not separated. None of these is likely to occur.

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.

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

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

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

Get the applicants to talk about themselves.

Which of the following does not contribute to job enrichment? Greater authority. All of these contribute to job enrichment. Greater responsibility. Greater compensation. Variety in tasks.

Greater compensation.

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

Have a definite purpose.

Customer Relationship Management (CRM) refers to a program designed to: Establish new accounts. Help companies manage customer information. Manage the expenses of calling on customers. Minimize company liability with regard to the products it sells to customers. Manage the distribution of goods and services to customers.

Help companies manage customer information.

As one of its goals, a good plan for paying salespeople should: Help management to direct the activities of the sales force. Discourage a salesperson from spending time on non-selling activities. Result in a sales rep selling the same dollar volume in each product line. Equate efforts and rewards. Equate level and method of compensation.

Help management to direct the activities of the sales force.

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

If the sales reps have control over prices.

An unlimited payment plan for controlling sales force expenses: Eliminates expense account padding. 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.

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

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

Is good for providing stability of income to a salesperson during the developmental stage of a territory or product.

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

Is usually a flatter organization in which coordination is across activities.

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

It offers little direct incentive for the salespeople.

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

Judging the culture fit and learning more about the company are both important reasons.

The number one cause of plateauing is: None of these. Burnout. Satisfaction with income levels. Boredom. Lack of clear career path.

Lack of clear career path.

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

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.

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

Market specialization.

"Someone with experience, position, or power who adopts you as a protege and helps you advance your career" best describes a: Mentor. Trainer. Professor. Peer group.

Mentor

For which of the following groups will management most likely use an activity quota? Women's ready-to-wear salesperson calling on department stores. Sales reps selling janitorial supplies to industrial users. Sales reps working for a wholesale sporting goods firm. Auto insurance salespeople. Missionary salespeople working for a pharmaceutical firm calling on doctors

Missionary salespeople working for a pharmaceutical firm calling on doctors

What is the most important factor to customers when selecting a sales force?

More than anything else, customers want their salespeople to provide service that solves problems and responds to their needs

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

More than one sales rep may call in the same customer.

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

Motivation-hygiene.

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

New hires selected to share the learning experience with other new hires.

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

Often don't know what is the most important to their employees.

In a sales force compensation plan, an example of indirect financial compensation is: Paid vacation. Field supervision. Christmas cash bonus. Salary payment. Air-conditioned office.

Paid vacation.

The most widely used of all sales selection tools is the: Long application blank. Physical exam. Psychological tests. Personal interview. Reference check.

Personal interview.

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

Prefer cash incentives, but are not motivated by them.

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

Promote her into a more challenging job with greater responsibility.

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

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

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

Reorders come frequently and inexpensively, but the initial order is hard to get.

The sales job is different from other types of jobs in that normally a salesperson: Requires more social intelligence than other employees on the same level in the organization. Requires less motivation. Is under less psychological pressure than most other employees. Works shorter hours than most other employees. Receives more direct supervision than do other workers.

Requires more social intelligence than other employees on the same level in the organization.

With respect to sales reps' expenses, the federal income tax law: Requires some substantiation of each expense which is claimed as a deduction. Is not applicable if sales reps were to pay their own expenses. Is applicable if sales reps drive their own cars on company business. Limits expenses as a percentage of a firm's sales. Limits the number of business gifts which a firm may give.

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

One drawback to having the salespeople pay their own expenses is that this plan: 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. None of these is correct. 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 selection tool most likely used as an initial screening device is a(n): Battery of employment tests. Assessment center. Resume. Reference check. Long guided interview.

Resume.

Salespeople tend to experience Role Stress, which consists of these two dimensions:

Role Conflict Salespeople are often caught in the middle between what the customer wants and what the company allows Role Ambiguity Because each customer has a unique set of needs, salespeople often face new situations in which they don't know what to do

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

Role ambiguity.

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: None of these. Role conflict. Role ambiguity. Improved self-concept. Job satisfaction.

Role conflict.

The most widely used pay plan for sales forces today is: Salary plus some incentive feature. None of these. Salary plus fringe benefits (vacation, pension, etc.). Variable-percentage commission. Straight commission.

Salary plus some incentive feature.

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

Sales reps may not have the necessary expertise in all the products they sell.

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

Saves money.

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. Love and acceptance. Belonging to a group. Safety. Physiological support.

Self-actualization.

Challenges Facing Sales Force Management

Selling by, and to, executives Important customers expect to interact with top executives Adapting to new technology Known as Customer Relationship Management (CRM) and/or Sales Force Automation (SFA) programs Sales force diversity Assuring women and minorities are represented in sales jobs of all industries Complex channels of distribution For example, integrating both outside and inside sales forces to meet customer needs Globalization Facing increasing competition from foreign firms

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

Should be agreed upon by both the rep and manager.

Excellent salespeople may not make good sales managers because: Salespeople don't respect a boss who has had no previous managerial experience. Top salespeople, when promoted to management, always expect too much from the people working under them. None of these is correct. As a manager, the former sales rep does not spend enough time in the field working with the sales force. Some of the traits and skills needed to be a good sales rep are different from those needed to be a successful manager.

Some of the traits and skills needed to be a good sales rep are different from those needed to be a successful manager.

According to your text, the most commonly used interview is: Guided. Totally structured. None is more prevalent than another. Something between guided and non-directed. Non-directed.

Something between guided and non-directed.

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

Straight Salary.

Management wants aggressive selling in a job that involves virtually no missionary activities. The company is not financially strong, so management wants the compensation costs related directly to sales revenue. This firm should use a plan for paying its sales force. Salary plus commission. Straight salary. Combination. Correct Answer Straight commission. Salary plus bonus.

Straight salary.

A firm is least likely to sell through a wholesale distributor in situations where: Buyers want local service facilities. The buying process is very complex. Producer wants inventories located near the customers. Individual sales are small. Rapid delivery to customers is important.

The buying process is very complex.

Management will most likely prefer to furnish company-owned cars for the sales force when: Each sales rep drives about 5,000 miles a year on company business. The company has centralized storage and repair facilities. The sales force is small. The firm is financially weak. No special color or design is needed.

The company has centralized storage and repair facilities.

The idea underlying the use of a progressive rate of commission is that: Reorders come frequently and inexpensively, but the initial order is hard to get. House accounts deprive the salespeople of high-income opportunities. The first sale is relatively easy to get, but it is difficult to get reorders. Reorders bring in less profit than the initial order. A guaranteed drawing account is also being used.

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

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

The level of pay of factory and office workers in the firm.

Which of the following is the best reason for having no ceilings on a sales rep's potential earnings? It will encourage sales managers to get out in the field and do more selling. It is good for executives' morale. A rep should receive full financial benefit from all windfall sales. Good sales reps should always earn more than their boss. The more a rep earns, the more the company makes, especially when the company is paying with some type of commission plan.

The more a rep earns, the more the company makes, especially when the company is paying with some type of commission plan.

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

The sale involves a complex product, and requires lengthy periods of service and negotiations.

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

The sales job requires skills similar to those which are on display in the interview.

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

Activity quotas are most likely to be used in which situations: All of these. The sales reps take no direct orders. None of these. In consumer selling. With new recruits.

The sales reps take no direct orders.

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

The structure should reflect a market orientation, so focus attention first on the market's needs and the sales force.

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

They are placed into a sales territory with no home-office training.

Experts recommend that the incentive potential for outstanding performance compared to average performance should be: Slightly above that of average performance. Twenty percent more than that of average performance. Three times that of average performance. No more than a $10,000 bonus for outstanding performance. No more than a $5000 bonus for outstanding performance.

Three times that of average performance.

In terms of motivation, management's challenge is: None of these. To design a total program which is the same for all of the reps. To design a program which allows every rep to self-actualize. To design a program which is tailor made for each rep. To design a basic program which appeals to the whole group, but has some flexibility to appeal to individual needs as well.

To design a basic program which appeals to the whole group, but has some flexibility to appeal to individual needs as well.

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

Would you rehire him (or her)?

With regard to the roles of the buying center, a purchasing agent is almost always the: decider. user. buyer. gatekeeper. influencer.

buyer

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

it tends to be expensive.

Which of the following is not a selection tool? Application forms Personal interviews Assessment centers Job advertisements Employment tests

job advertisements

In the introduction to chapter 1, the textbook argues that it is critical for sales managers to hire salespeople who: deliver a great sales pitch are excellent closers listen to customers work hard understand the product

listen to customers

Today's sales manager must be sensitive to individual needs, caring more about communicating and coaching than: listening strategy training people skills monitoring and controlling

monitoring and controlling

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

move toward flatter organizations.

All of the following are common responsibilities of today's sales managers, EXCEPT: performance evaluation. hiring and training. product design. territory design. forecasting and budgeting.

product design

Salespeople often feel caught in the middle between the contradictory demands of the people they must satisfy. This is known as: Role conflict Role clarity Role rejection Role representation Role ambiguity

role conflict

If a salesperson can make an appointment with a C-level executive, the sales process tends to be: diverse impossible more complex longer shorter

shorter

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

there is usually no specialization of marketing activities.