sales chapter 14

How to calculate break-even volume per hour

=cost per hour/ gross profit percentage

how to calculate break-even point (in dollars)

=salesperson's fixed cost/ gross profit percentage

Which of the following statements about using the telephone for territory coverage is true?

All of the above

break-even analysis

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

"To increase the number of sales calls each day," is an example of a(n):

account objective

undifferentiated selling approach can be used when?

an organization may see the accounts in its markets as similar and the selling strategies are designed and applied equally to all accounts

According to the text, which of the following is NOT one the seven basic factors that must be considered in the allocation of a salesperson's time?

availability of toll-free number for telephone ordering

Sales managers use the ELMS system to

categorize accounts in terms of profitability

Which of the following would be a good rule of salespeople to follow in handling their paperwork?

do their paperwork during nonselling hours: evenings are best

One of the seven key elements of proper time and territory management for the salesperson is:

establishment of the quota for the salesperson's territory

When a salesperson refers to her key accounts, she is talking about her __________.

extra large accounts

account analysis

identifying accounts and their varying levels of sales potential

Companies might give their salespeople strict formal route plans in order to

improve territory coverage

What does a strict formal route designs enable the company to do?

improve territory coverage minimize wasted time establish communication between management and the sales force in terms of the location and activities of individual salespeople

eighty/twenty principle

key accounts provide 80% of sales, but 20% of total accounts

According to the text which of the following is one of the seven basic factors the text indicates must be considered in the allocation of a salesperson's time?

nonselling time

Some companies choose NOT to establish sales territories because:

personal friendship may be the basis for attracting customers

account segmentation approach

recognizes that their territory contain accounts with heterogeneous needs and differing characteristics that require different selling strategies

An account analysis may categorize accounts according to the ELMS system. This system:

refers to extra large, large, medium, and small accounts

______________ is the establishment of a travel pattern to be used in working your territory.

routing

Typically the salesperson invests time in direct proportion to the actual or potential sales that the account represents. This relationship of sales volume to sales calls is the:

sales response function

As the office furniture salesperson plans her activities for next week, she is establishing a certain day and time to visit each customer's place of business. She is engaged in the process of:

scheduling

Michael delivers pesticides to farmers' cooperatives. When planning his daily routing pattern, Michael prefers to start at the customers furthest away and work his way back to his company's office. Which routing pattern would be most likely to allow Michael to do this?

straight-line

sales response function

the most productive number of calls is reached at the point at which additional calls do not increase sales

You are the salesperson for a wholesales business that makes scrapbooking kits. Your sales manager expects your frequency of sales calls on a particular customer will increase as:

the number of product lines sold cared by wholesalers increases

Many companies concentrate on improving the way their salespeople manage their time and territories because

time is always limited

Companies establish sales territories to accomplish all of the following objectives EXCEPT

to control the company's credit rating

The two general approaches to account analysis for salespeople are called:

undifferentiated selling and account segmentation

What are two approaches to account analysis?

undifferentiated selling approach and the account segmentation approach

Multivariable account segmentation

using more than one criterion to characterize the organization's accounts