MAR4418 FINAL EXAM

Lisa is asked to predict $ sales for 2022 for his company using the sales number for the previous years given in the table below: Year $ sales volume 2018. $5,000,000 2019. $7,000,000 2020. $16,000,000 2021. $13,000,000 2022. ? Lisa is asked to use exponential smoothing with a smoothing constant L=0.4 to derive her prediction, and to predict 2021 $sales using the 2 months moving average. Which of the following predictions is correct: - $13,600,000 - $12,400,000 - None of the results are correct. - $13,900,000 - $12,100,000

$12,100,000

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? 2,100. 1,750. 2,400. 2,000. 2,450.

2,000.

In a marketing cost analysis: In a well-managed firm all marketing costs will be direct costs. A common approach is to allocate ledger expenses to activity-cost groups, and then allocate these activity costs among marketing units such as territories or products. To determine the contribution margin of product groups, you must allocate all marketing expenses among these product groups. Indirect expenses should not be allocated if you want to know the net profit of a territory or product. A given marketing cost is always allocated on the same basis.

A common approach is to allocate ledger expenses to activity-cost groups, and then allocate these activity costs among marketing units such as territories or products.

Regarding the drawing of territorial boundary lines: This usually is the first or second step in determining basic sales territory. The boundaries should be drawn after reps are assigned to a territory. A good generalization to follow is this: Do not split one of your basic control units. The lines should be drawn so that the territories are all about the same physical size. None of these is correct.

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

A total evaluation program in marketing is best described as: Management of the sales force. The management process. Marketing. The marketing concept. A marketing audit.

A marketing audit.

A sales territory is: The sales potential in a geographic region. A Metropolitan Statistical Area. A number of customers located within a given geographical area and assigned to a salesperson. A sales performance goal. The geographical pattern followed by sales reps when calling on their accounts.

A number of customers located within a given geographical area and assigned to a salesperson.

Zach is working as a sales rep for a manufacturer earning a straight commission on the sales volume he generates. Part of the satisfaction with his job comes from the fact that he has full control over scheduling his call activity throughout the month. Recently, his employer has introduced a customer relationship management (CRM) system for the salesforce that requires sales reps to input data about their schedule and call activity and that produces valuable information for reps in terms of who to call next and when. The following are concern(s) that Zach might have about the adoption such a system - After adoption of the system his commission payment will go down. - After adoption of the system his sales manager can monitor his activity and identify when he slacks. - After adoption of the system he will be monitored more AND he will have less information about potential customers. - All of the statements are true. - After adoption of the system he will have less information about potential customers.

After adoption of the system his sales manager can monitor his activity and identify when he slacks.

Excellent transactional leadership by the sales manager involves: Verbal feedback. All of these. Informing. Monitoring. Clarifying.

All of these.

Outcomes of effective leadership include citizenship behaviors, an example of which is when a rep: always shows up to work on time, never missing meetings. tolerates problems without complaining. All of these. offers tips and encouragement to a struggling fellow rep. volunteer to serve on a committee.

All of these.

Situational leadership involves which of the following leader behaviors? informing basic rules. All of these. verbal feedback. articulating a vision.

All of these.

In performance evaluation by sales managers, the soft-spot principle holds that: A company should not get rid of a territory or product that is a soft spot. The principle is applicable only to a territorial volume analysis and not to a product or customer analysis. If a company does a good job in sales-volume analysis, it won't have any soft spots. It is more useful to measure soft spots on a percentage basis rather than dollar volume. An executive reaps the largest possible gain by working with the weakest segments of the organization.

An executive reaps the largest possible gain by working with the weakest segments of the organization.

Surveys of buyer's intentions: Are easy to employ in markets where users are numerous. Are based on information obtained directly from product users, whose later buying decision will actually determine the sales. Can be done quickly and inexpensively. None of these is correct. Are based on actual sales of the product.

Are based on information obtained directly from product users, whose later buying decision will actually determine the sales.

Oversupervising a sales force is likely to: Leave new reps with the feeling that the boss doesn't know or care what is happening. Lead to None of these. Result in a sales manager not knowing what is going on in the field. Be resented by many sales reps. Reduce the costs of supervision.

Be resented by many sales reps.

An example of a transactional leader behavior is: Team building. Articulating a vision. Mentoring. Clarifying company rules.

Clarifying company rules.

Which of the following changes is apt to decrease the geographical size of a territory? - Company substitutes a selective distribution policy instead of mass distribution. - None of these. - Cover an area more intensively with increased call frequencies, etc., in order to meet competition more effectively. - Company decides to sell to retailers instead of door-to-door. - Have a sales rep discontinue the missionary phases of his job and do nothing but straight selling.

Cover an area more intensively with increased call frequencies, etc., in order to meet competition more effectively.

When using the breakdown method to establish sales territories, the first step ordinarily is to: Decide how many accounts to assign to each rep. Draw tentative boundary lines, realizing that later they will have to be adjusted. Decide how much sales volume should be generated by each rep. Determine the desirable call patterns. Determine the company's sales potential (that is, the total sales volume that the company can except in its full market).

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

A sales forecasting period of less than one year is usually imperative for a producer of: Peanuts in Georgia. Breakfast cereals. Television sets. Fashion clothing for teenagers. Large office copy machines, like Xerox.

Fashion clothing for teenagers.

"Sales of lite beer are forecasted to $150 million in 2007 in the United States," reported sales manager, Christi Feldman, to her boss. This statement is a: Forecast of sales. Forecast of market potential. Forecast of sales potential. Forecast of territory potential. Forecast of market share.

Forecast of market potential.

Misdirected marketing effort: Usually is corrected when a company conducts a sales volume analysis. Is a key reason underlying the existence of the 80-20 principle. Means that a company should reduce its marketing activities. Is easy to detect. Rarely occurs in a well-managed firm.

Is a key reason underlying the existence of the 80-20 principle.

In the past 20 years, salespeople have become: More effective at finding new accounts. Less effective at finding new accounts. Less effective at retaining existing accounts. More effective at retaining existing customers. None of these.

More effective at retaining existing customers.

It is recommended that sales managers review their territory structure: Once every month. Once every year. Once every ten years. Once every five years. Territories do not need to be reviewed.

Once every year.

When feasible, the best leadership tool or technique is typically: Sales contests. Personal contact. A well-designed compensation plan. Daily phone calls or correspondence. Daily report.

Personal contact.

In the management process in a sales department: Evaluation in this year's cycle is not related to any activities in next year's management process. Operational activities usually precede planning. Planning tells us what really was done. None of these is correct. Planning and evaluation are interdependent activities.

Planning and evaluation are interdependent activities.

Budgeting normally is part of the ______ stage in the management process. Operating. Evaluating. Staffing. Planning. Organizing.

Planning.

To correct a poor performance problem, sales managers should: Above all be understanding and flexible. Provide immediate feedback about the problem. Be cautious, and wait for the problem to resolve itself. Be supportive, but not mention the specific problem.

Provide immediate feedback about the problem.

A company's ______ is the maximum share of the market potential that this firm could achieve under ideal conditions. (We assume that the product market and time period have been stated.) Sales quota. Sales potential. Marketing goal. Market index. Sales forecast.

Sales potential.

All of the following, except for ______, are commonly used as control units for territorial boundaries: Metropolitan Statistical Areas. Sales potentials. Postal zip-code areas. States. Counties.

Sales potentials.

The number of customers located within a geographical area and assigned to a salesperson is a: Territory budget. Sales quota. Sales territory. Metropolitan Statistical Area. Sales potential.

Sales territory.

The amount and type of leadership received by salespeople: Usually should increase as the sales force gets larger. Should be the same for all reps. Should vary over time, based on the stability of the business environment. Should vary among reps based on their individual differences. Should vary among reps based on their individual diferences and should vary over time based on the stability of the business environment.

Should vary among reps based on their individual diferences and should vary over time based on the stability of the business environment.

Which of the following methods of sales forecasting is least dependent on historical data? Direct derivation. Test marketing. Trend analysis. Correlation analysis. Analysis of past sales.

Test marketing.

When using the buildup method to establish sales territories, the first step ordinarily is to determine: The call frequency per account per year. How many territories are needed. Call frequency for the average salesperson. How many accounts to assign each salesperson. The market potential.

The call frequency per account per year.

During the 2000s, the evaluation process is likely to become more important because of: The trend toward international sales. The emphasis on profitable sales. The emphasis on relationship selling. The emphasis on transactional sales.

The emphasis on relationship selling.

Which of the following is the best reason for continuing to carry a product when a sales volume analysis indicates it is a low-volume item? The primary demand for the product is declining. The item is needed to round out the company's product line. The product accounts for 5 percent of the sales volume and 2 percent of the profit. The product was what gave the company its start in life. The product's gross margin is also low.

The item is needed to round out the company's product line.

Tom is asked to predict $ sales for 2022 for his company using the sales number for the previous years given in the table below: Year $ sales volume 2018. $5,000,000 2019. $7,000,000 2020. $10,000,000 2021. $13,000,000 2022. ? Which of the following statements is correct: - The prediction for 2022 based on 3 months moving average is $13,000,000 dollars - The prediction for 2022 based on 2 months moving average is $6,000,000 dollars - The prediction for 2022 based on 3 month moving average is $10,000,000 dollars and based on 2 months moving average is $11,500,000 dollars - The prediction for 2022 based on 3 month moving average is $10,000,000 dollars and based on 2 months moving average is $8,500,000 dollars - None of the statements is correct.

The prediction for 2022 based on 3 month moving average is $10,000,000 dollars and based on 2 months moving average is $11,500,000 dollars

Genuinely caring about each individual subordinate is an example or type of: Transactional leadership. Articulating a vision. Transformational leadership. Task orientation. Verbal feedback.

Transformational leadership.

Accurate sales forecasts would be difficult to obtain for which of the following products? Microwave ovens. Commercial aircraft. Virtual reality games. Domestic automobiles. Soft drinks.

Virtual reality games.

Which of the following factors is likely to contribute the least to your leadership ability? People have confidence in you. You own the company. You have a high level of social skills. You have a high energy level.

You own the company.

Overlapping territories: often make sense. tend to be a result of management's trying to avoid friction. generally result in increased selling efficiency. Both A and D. are good for morale.

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