Principles of Sales Chapter 14 Questions

A salesperson's direct costs are $90,000 and the gross profit percentage is 30 percent. Assume that the salesperson works for 250 days a year and eight hours each day. Every working day, the salesperson makes five sales calls. Based on the given data, calculate the break-even volume per hour. $150 $100 $350 $300

$150

A salesperson's direct costs are $90,000 and the gross profit percentage is 25 percent. Based on the given data, calculate the break-even point. $580,000 $170,000 $360,000 $220,000

$360,000

Certain steps are typically taken in properly managing a sales territory for reaching its sales quota. In this context, arrange the steps that follow the step of account analysis in the correct order of occurrence. (Place the first step at the top.) choices: territory and customer evaluation sales-call allocation setting account objectives and sales quotas scheduling and routing customer sales planning

1. setting account objectives and sales quotas 2. sales-call allocation 3. customer sales planning 4. scheduling and routing 5. territory and customer evaluation

Emotional intelligence (EI) is the combination of certain abilities. In the context of sales jobs, which of the following are these abilities? (Check all that apply.) A salesperson's ability to perceive others' sentiments A salesperson's ability to identify his or her own feelings A salesperson's ability to learn various selling techniques A salesperson's ability to schedule sales calls

A salesperson's ability to perceive others' sentiments A salesperson's ability to identify his or her own feelings

In the context of break-even analysis, which of the following gives break-even point (in dollars)? A salesperson's fixed costs + Gross profit percentage A salesperson's fixed costs − Gross profit percentage A salesperson's fixed costs × Gross profit percentage A salesperson's fixed costs / Gross profit percentage

A salesperson's fixed costs / Gross profit percentage

Which of the following are time management skills that can help sales professionals in achieving success? (Check all that apply.) Saving time by avoiding thinking about the time needed to complete work-related tasks Spending a lot of time on low-priority tasks Creating an effective plan to allocate efforts across goals, activities, and time periods Being selective in prioritizing time

Creating an effective plan to allocate efforts across goals, activities, and time periods Being selective in prioritizing time

Denny is a new salesperson. In the context of self-management, identify the guidelines that should be followed by Denny. (Check all that apply.) He should not do his due diligence. He should develop his potential to engage in activities such as moonlighting and backdoor selling. He should develop skills in managing time. He should not be afraid to act, make a recommendation, and get involved in organizational activities.

He should develop skills in managing time. He should not be afraid to act, make a recommendation, and get involved in organizational activities.

In the context of the ELMS system, there are few extra large or large accounts, but they often account for 80 percent of a company's profitable sales even though they represent only 20 percent of total accounts. This is known as the ________ / _________ principle.

eighty/twenty

In the context of self-management __________ ________ refers to a certain aura that a salesperson is perceived as possessing.

executive presence

Using more than one criterion to characterize a firm's accounts or customers is known as customer engagement multivariable account regression multivariable account segmentation customer retention

multivariable account segmentation

In the context of the time management skills that help sales professionals achieve success, salespeople should refrain from overcommitting to unnecessary tasks at the expense of core work tasks thinking about the time needed to complete tasks developing a plan to allocate efforts across their goals and activities spending time on high-priority tasks

overcommitting to unnecessary tasks at the expense of core work tasks

The next plausible opportunity to assist customers and provide their frontline salespeople with the needed tools to do so can be predicted by the _________ ________ software.

predictive analytics

The way in which salespeople develop a plan to allocate sales calls within their sales territories is referred to as

sales call allocation

In the context of sales jobs, the continuous method of making and utilizing contacts is known as _______ _________.

sales networking

In the context of sales call allocation, the most productive number of sales calls is reached at the point at which additional sales calls do not increase sales. This relationship of sales volume to sales calls is the _____ _____ _____ of a customer to a salesperson's calls.

sales response function

The transformation of manual sales activities to electronic processes through the use of various combinations of hardware and software applications is known as

sales technology

A group of customers or a geographic area assigned to a salesperson is known as a(n)

sales territory

In the context of sales jobs, ___________ - __________ refers to developing personal time management plans, setting priorities based on supervisors' expectations, keeping a watchful eye on industry trends, and having a vision for the future.

self-management

The establishment of performance standards for an individual sales territory in the form of qualitative and quantitative quotas or goals is known as _____. territorial reinforcement territorial evaluation sales coordination sales navigation

territorial evaluation

Identify the general approaches to account analysis. (Check all that apply.) the account referral approach the account segmentation approach the transaction selling approach the undifferentiated selling approach

the account segmentation approach the undifferentiated selling approach

Identify the basic factors to consider in sales call allocation. (Check all that apply.) time allotted for backdoor selling travel time around a sales territory return on time invested number of sales managers in the country number of accounts in a sales territory number of sales calls made on customers

travel time around a sales territory return on time invested number of accounts in a sales territory number of sales calls made on customers

A firm may see the accounts in its market as similar. When this happens and selling strategies are designed and applied equally to all accounts, a salesperson uses a(n) _____ approach. relationship selling transaction selling consultative selling undifferentiated selling

undifferentiated selling

A firm may see the accounts in its market as similar. When this happens and selling strategies are designed and applied equally to all accounts, a salesperson uses a(n) _____ approach. undifferentiated selling transactions selling consultative selling relationship selling

undifferentiated selling

Identify the true statements about sales territorial evaluation. (Check all that apply.) Its goal is to encourage salespeople to engage in practices such as moonlighting. It involves comparing the actual performance of a sales territory to the qualitative and quantitative goals. It lets a salesperson see how well sales territory plans were executed in meeting performance quotas. It refers to the formal path or route that salespeople travel when covering their sales territory.

It involves comparing the actual performance of a sales territory to the qualitative and quantitative goals. It lets a salesperson see how well sales territory plans were executed in meeting performance quotas.

When using the account segmentation approach to account analysis, a salesperson classifies accounts to identify profitable ones. In this context, match the types of accounts (in the left column) with their descriptions (in the right column). Choices: Key accounts Unprofitable accounts Regular accounts These accounts buy less than $1,000 from the salesperson annually. These accounts buy over $200,000 from the salesperson annually. These accounts include all accounts that are not part of the other types of accounts.

Key accounts: These accounts buy over $200,000 from the salesperson annually. Unprofitable accounts: These accounts buy less than $1,000 from the salesperson annually. Regular accounts: These accounts include all accounts that are not part of the other types of accounts.

Match the factors involved in sales territory management (in the left column) with their descriptions (in the right column). Choices: Scheduling Routing It is the travel pattern used in working a sales territory. It refers to establishing a fixed time (day and hour) for visiting a customer's business.

Scheduling: It refers to establishing a fixed time (day and hour) for visiting a customer's business. Routing: It is the travel pattern used in working a sales territory.

True or false: A salesperson should use the Core Principles of Selling as a guide in creating his or her strategic plan for his or her sales territory.

T

True or false: Emotional intelligence (EI) acts as a skill a salesperson can utilize when communicating with customers, colleagues, and supervisors.

T

True or false: In the context of sales networking, a salesperson should always remember that building and maintaining relationships requires the mutual investment of effort, time, and resources.

T

True or false: Once accounts are classified broadly, categories or types of accounts are defined in terms such as extra large (key), large, medium, and small, and this classification is referred to as the ELMS system.

T

True or false: Sales technology tools help salespeople with routine as well as strategic tasks, letting them focus on actual selling time.

T

Why do sales organizations use multivariable account segmentation? These organizations lack competitors in their markets. These organizations seek to create various employment opportunities for sales professionals. These organizations sell to several markets and use many channel members in these markets. These organizations aim to minimize customer retention.

These organizations sell to several markets and use many channel members in these markets.

In the context of sales territory management, which of the following are true in theory about strict formal route designs? (Check all that apply.) They enable an organization to establish communication between management and the sales force in terms of the location and activities of individual salespeople. They enable an organization to increase its accounts' purchase dissonance and encourage its salespeople to engage in backdoor selling. They enable an organization to improve territory coverage. They enable an organization to minimize wasted time. They enable an organization to minimize customer retention.

They enable an organization to establish communication between management and the sales force in terms of the location and activities of individual salespeople. They enable an organization to improve territory coverage. They enable an organization to minimize wasted time.

In the context of sales, identify the true statements about the artificial intelligence system used by firms. (Check all that apply.) This system helps salespeople better understand their customers. This system's application is limited to the service sector. The goal of this system is to improve the integration and learning of all the ways in which a firm and its customer base interact. When used for customer service, this system generally provides a more personalized approach to customers than do salespeople.

This system helps salespeople better understand their customers. The goal of this system is to improve the integration and learning of all the ways in which a firm and its customer base interact.

Why do companies develop and use sales territories? (Check all that apply.) To obtain complete coverage of the market To increase purchase dissonance To establish each salesperson's duties To reduce sales expense To minimize account penetration

To obtain complete coverage of the market To establish each salesperson's duties To reduce sales expense

Identify the true statements about the undifferentiated selling approach to account analysis. (Check all that apply.) Salespeople using this approach recognize that their territories contain accounts with heterogeneous needs that require different selling strategies. When using this approach, salespeople develop sales objectives based on overall sales and sales of each product for each customer and prospect. When using this approach, salespeople call on all potential accounts, devoting equal selling time to each of them. This approach is based on the assumption that the account requirements for a specific product or group of products are similar.

When using this approach, salespeople call on all potential accounts, devoting equal selling time to each of them. This approach is based on the assumption that the account requirements for a specific product or group of products are similar.

In the context of self-management, a new salesperson should understand that executive presence is _____. the salesperson's ability to perceive others' emotions about the ways in which others perceive the salesperson about the ways in which salespeople earn profits for their company the salesperson's ability to engage in activities such as moonlighting

about the ways in which others perceive the salesperson

The process of identifying accounts and their varying levels of sales potential is known as

account analysis

Salespeople using the ______ _________ approach to account analysis recognize that their territories contain accounts with heterogeneous needs and differing characteristics that require different selling strategies.

account segmentation

A quantitative technique for determining the level of sales at which total revenues equal total costs is

break-even analysis