Sales Management Ch 17
15) Which compensation plan would appeal to a salesperson who likes the idea of "pay for performance," but also likes some job security? A) guaranteed salary B) straight salary C) fixed salary plus bonus D) straight commission plan E) commission plan with a draw provision
E
1) Scheduling a special luncheon to celebrate the closing of a large sale is a technique most likely characteristic of a supervisor who displays: A) high structure and high consideration B) high structure and low consideration C) low structure and low consideration D) self-expression tendencies E) high task orientation
A
13) To provide external motivation, Aspen is considering a sales contest. What is the best advice to give Aspen as she designs the contest? A) Keep contest time frames short to increase the number of winners. B) Use contests frequently to ensure long-term motivation. C) Expand territory sizes to ensure the contest motivates all salespeople. D) Utilize the same reward for every sales contest to ensure equity. E) Provide cash bonuses to all contest winners to ensure full participation.
A
7) Soon after receiving the promotion, Johan is approached by the administrative assistant of his former sales unit. She tells him that she wants to join his team as a sales representative. She points out that she has solid knowledge of the products and company procedures already, and that he knows that she is a hard worker. What other benefit would there be to Johan in hiring her as a sales representative? A) He knows that she fits into the company culture and understands its mission. B) He knows that he can pay her less than someone hired from outside the company. C) He has a personal friendship with her, which means he will be able to manage her better. D) He knows that she is outgoing, which is the primary characteristic of a good salesperson. E) He has never had a disagreement with her, so there is no reason not to hire her.
A
Victor Craig is sales director for a software company selling diagnostic software to automotive repair shops all across the country. He has been with the company for 14 months and manages a staff of six sales representatives. Victor also covers a four-state territory himself. On Monday the CEO of the company calls Victor into his office and states that management is dissatisfied with Victor's performance as sales director. Victor has 90 days to turn his performance around, or he will be fired. 1) The CEO suggests that Victor attend a training program for sales managers. If the program is like most others, which of the following topics will most likely be covered? A) motivating salespeople B) forecasting short-term sales C) managing sales territories D) handling office politics E) calculating ROI
A
12) Aspen manages a team of sales representatives who have all chosen careers in sales because it allows them to make a living interacting with and helping people. One of the biggest sources of internal motivation for her sales team is most likely the ability to: A) convince people to buy products they don't need B) solve their customers' problems C) ask people to spend money on sports equipment D) discount prices when they need to make a sale E) explore sports they would otherwise not have tried
B
12) What is the best suggestion for assessing sales force productivity? A) Recognize that frequency of sales calls is the best indicator of success. B) Realize that sales call frequency must be compared to the profit earned on each account. C) Recognize that assessing sales force productivity is more "art" than "science." D) Compare salespeople with others on the sales force who have similarly-sized territories. E) Compare a salesperson's current productivity with past productivity.
B
14) Each year, Aspen and the other sales managers meet with the director of sales to reevaluate the compensation plan for sales representatives. Last year they decided that the current compensation plan was tempting the sales representatives to compete too hard with each other and cross ethical lines. To maintain some healthy competition, provide employees with direct financial security, and encourage the sales representatives to act in the company spirit, a ________ compensation plan would be most appropriate. A) straight commission B) commission with a guaranteed salary C) fixed salary D) bonus with a straight commission E) straight salary
B
2) Since Victor spends part of his time on the road meeting with customers, which of the following would most likely help Victor manage his sales staff? A) active listening principles B) videoconferencing tools C) territory management skills D) stress relief activities E) blogging capabilities
B
2) The supervisor who holds monthly sales force meetings to explain specific goals for the future and changes in policy and procedure is exhibiting: A) consideration B) structure C) performance analysis D) recognition E) strategy
B
7) Paolo dos Santos, a sales manager for Paronille Corporation, provides all of his salespeople with scheduled performance appraisals. This behavior indicates that he is attempting to incorporate the dimension of: A) feedback B) structure C) empowerment D) consideration E) responsibility
B
Johan Yee has been a sales representative at a medium-sized textbook publishing house for five years. He has just been promoted by the sales director of his company to sales manager of a new territory. As sales manager, he is tasked with hiring and training three new sales representatives for his team. 6) What should Johan do first to begin the process of hiring new team members? A) Place job ads on Internet job search sites like Monster.com. B) Write a detailed description of job duties and requirements. C) Engage an employment agency to find qualified candidates. D) Draft a training schedule of what skills employees need. E) Sort through resumes to decide who should be interviewed first.
B
3) The first step toward identifying the type of applicant to be recruited for a sales job is to: A) determine the compensation plan B) consult the sales staff for recommendations C) determine the actual duties of the position D) develop personality and skills assessments E) search for applicants from traditional sources
C
8) A compensation plan which will likely produce the greatest degree of company-centeredness and financial security for the employee is: A) straight commission plan B) guaranteed salary C) straight salary D) guaranteed salary plus a bonus E) straight commission plus a bonus
C
14) According to Trudi Gallagher, people from which of the following countries are very punctual and private? A) Italy B) Saudi Arabia C) Mexico D) Switzerland E) France
D
19) Consideration is most likely characterized by: A) prioritizing the group over the individual B) caring more about the welfare of employees than about self C) becoming personal friends with employees and their family members D) establishing a climate of good two-way communication between a leader and team members E) ensuring close supervision of each salesperson to make sure they adhere to company policies
D
24) What is the primary benefit of seeking job candidates within your own company? A) Job descriptions are unnecessary. B) Mentors are more willing to provide assistance. C) Hiring requirements can be lowered for cost savings. D) Current employees are familiar with company policies. E) Private employment agencies charge fees for recruitment.
D
4) Some organizations are using ability or aptitude assessment instruments to determine future performance in certain types of sales jobs. Experts in the field of employment testing say that test scores: A) can be very misleading to the employer, so they should not be used B) should not be considered because of possible legal problems C) are not helpful for most firms because of validity issues D) can be helpful when used in conjunction with other criteria E) are excellent measures to determine future performance
D
9) What is the best motivation suggestion for sales managers? A) Use external motivation methods exclusively because of their success. B) Recognize that internal motives are consistent throughout a sales career. C) Recognize that external motivation has almost no impact on performance. D) Attempt to motivate with a mix of external rewards and internal satisfaction. E) Employees who do not respond to external motivation will never perform well.
D
10) The training programs of both small and large marketing firms should incorporate three dimensions. One of them is knowledge of the product line, company marketing strategies, territory information, and business trends. What are the other two? A) knowledge of personal selling skills; in-field sales training with supervision B) knowledge of personal selling skills; knowledge of self and others C) knowledge of company policies, procedures and benefits; stress management D) explanation of compensation methods; in-field sales training with supervision E) attitudes toward the company, its products, and its customers; application of personal selling principles and practices
E
20) Coaching focuses on helping the salesperson recognize the need to improve his or her performance and: A) using specially-sequenced exercises B) tracking performance improvements carefully C) encouraging salespeople to focus on primary tasks D) creating space for salespeople to develop professionally E) developing the salesperson's commitment to improve performance
E
25) Managers using rewards to motivate employees should most likely bear in mind that: A) short-term motivation contests should be used frequently due to their success B) motivational goals should be impractical to ensure that employees work hard C) rewards should be balanced out by long-term disciplinary actions D) employees prefer financial rewards over non-financial rewards E) not all employees value the same rewards
E
30) The number of calls made on an account should most likely: A) equate to the maturity of the product B) correspond to the seniority of the salesperson C) be the same for all accounts in the territory D) vary from salesperson to salesperson E) relate to the sales potential of the account
E
5) A sales manager screening applicants for a sales position should most likely seek an individual who: A) will close sales no matter what it takes B) is familiar with other employees at the firm C) can bring large accounts from a competitor D) has entrepreneurial ideas E) is self-motivated
E
5) Management sends Victor to a workshop about coaching employees to success. At the workshop, Victor learns that the first step in the coaching process is to: A) appeal to the salesperson's emotions by sharing personal experiences B) allow the salesperson to suggest ideas for improving performance C) enable a salesperson to admit that a performance problem exists D) create and implement a new presentation style for the salesperson E) observe and assess employee performance during actual sales calls
E
8) Johan crafts a descriptive ad and receives hundreds of resumes in response. He reads through them and chooses the 20 best candidates. To further screen candidates, he invites those 20 to take a test that profiles their skills. What is the best advice to give Johan about testing? A) Rely solely on predictive assessment instruments which are more reliable than quantitative interviews. B) Conduct testing online to ensure that candidates possess the technical skills needed for the position. C) Use test scores to predict a candidate's verbal and nonverbal communication skills which are necessary in sales. D) Provide candidates with multiple tests to ensure that results are both valid and reliable predictors of sales success. E) Use test results in conjunction with information obtained from the personal interview and reference checks.
E
Aspen Stewart is one of five sales managers at a sports equipment company. She and the other sales managers are under pressure from management to keep their teams of sales representatives motivated and hitting their sales quotas. Because of that, Aspen has studied psychology and motivation, and is always looking for better ways to motivate her team. 11) The biggest factor in motivation for sales representatives is enjoying sales as a career. This means that the best way for Aspen to build a motivated sales team is to: A) teach employees to cold-call more efficiently B) implement a straight commission compensation plan C) offer cash bonuses for the top sellers each month D) provide all employees with the same benefits E) provide a mix of external and internal rewards
E
16) Leadership is: A) a series of skills that can be acquired through study and practice B) a cluster of innate qualities that some people possess from birth C) malleable, so a leader in one situation may not be capable of leading in others D) synonymous with management E) more important in American culture than it is in other cultures
A
21) Ken Blanchard says that the key to developing people is to: A) focus on catching them doing something right B) give them a clear path to follow for their careers C) mentor them closely for many years D) make sure they're in jobs that fit their skill sets E) use both internal and external rewards
A
26) Managers who use rewards as external motivators for salespeople should most likely: A) set goals that are realistic B) set goals based only on final sales numbers C) give rewards at regular intervals D) give primarily financial rewards E) give the same rewards to all salespeople
A
28) Which of the following would LEAST likely be an objective of a compensation plan developed for sales team members? A) identifying sources for hiring new salespeople B) increasing sales by a specific percentage C) increasing the number of sales calls D) establishing new accounts E) selling specific products
A
6) Newly hired salespeople are more likely to become productive staff members if they participate in a job orientation and a(n): A) training program B) college recruitment session C) tour of the production facilities D) introduction to corporate personnel E) induction ceremony
A
10) Johan needs to determine the personal character and ethics of candidates. Which of the following interview questions would be LEAST relevant for this task? A) "What are your three core values?" B) "What does integrity mean to you?" C) "How do you handle negotiations?" D) "Who are your role models and why?" E) "How would your previous manager describe you?"
C
13) Situational leadership occurs when: A) the leader passes the character test B) good performance is properly rewarded C) the leader's style matches the situation D) the coach helps the salesperson recognize the need for performance improvement E) the leader guides the team through a changing situation
C
15) The sales managers and director of sales need to evaluate sales production levels. The company's policy has been to compare each sales representative's sales to their sales the previous year. Which of the following is the strongest argument for changing this method of evaluation? A) Sales representatives do not always sell the same amount each year. B) Sales representatives should not be evaluated by the amount that they sell. C) Changes in products or prices can change sales amounts, so yearly figures are not comparable. D) Because of the product life cycle, amounts should be compared quarter to quarter, not year to year. E) Comparisons should be made to the group as a whole, not to individuals themselves.
C
18) The Leadership Grid portrays dimensions of: A) leadership and management B) motivation and skills C) consideration and structure D) empathy and direction E) recruitment and training
C
23) Which of the following questions is LEAST relevant when developing a job description for a sales position? A) Will the person be developing a new sales territory? B) Is the product well established in the marketplace? C) What is the average rate of employee turnover? D) Will the salesperson work independently? E) What amount of travel will be required?
C
4) Several sales representatives complain that Victor shows a lack of consideration for their ideas and feelings and treats them all like cogs. Which of the following would most likely help Victor improve his consideration skills? A) Make blanket policies to treat employees equally and consistently. B) Take a communication skills class to learn how to read nonverbal clues. C) Schedule face-to-face meetings with sales representatives on a regular basis. D) Make decisions quickly and firmly to ensure the success of the entire sales team. E) Make SMART goals to improve sales results and increase long-term organizational profits.
C
29) The primary purpose of measuring sales force productivity is to: A) calculate the number of calls each salesperson makes every quarter B) compare the number of sales presentations each salesperson makes C) calculate the firm's total sales volume for a specific period of time D) analyze the profitability of each salesperson's sales volume E) assess the ratio of profits to sales for the sales force
D
3) One sales representative complains that she never knows where she stands with Victor because he rarely provides feedback. The sales representative also indicates that Victor fails to communicate his expectations to sales team members. Victor most likely needs to work on the leadership dimension of: A) mentoring B) motivation C) organization D) structure E) consideration
D
9) During the interviewing process, Johan needs to determine if candidates have certain qualities that are necessary for sales success. Which of the following characteristics is most important for a sales job? A) spatial skills B) physical stamina C) compliance D) self-motivation E) cognitive ability
D
11) Which of the following characteristics of a sales manager provides evidence of structure? A) Policies and procedures are clearly defined. B) Each salesperson is treated as an individual. C) Efficient communication is given a high priority. D) Members of the sales force receive regular recognition. E) Salespeople are encouraged to solve their own problems
A
22) All of the following are good sources for recruiting quality candidates for sales jobs EXCEPT: A) Internet job sites B) mediation agencies C) newspaper advertisements D) employment agencies E) candidates within the company
B
27) What is the first step in developing an effective sales training program? A) measuring sales training interest levels B) conducting a training needs assessment C) establishing a sales training budget D) setting sales training goals E) selecting a training provider
B
17) The process of planning, implementing, and controlling the personal selling function is called: A) leadership B) sales management C) comptrolling D) organizational strategy E) motivation
B
