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Florida Institute of Technology - FM 431 CHAPTER 7 1)What is the guiding idea behind the way companies structure their sales forces? a

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Florida Institute of Technology - FM 431

CHAPTER 7

1)What is the guiding idea behind the way companies structure their sales forces?

a.            A happy salesperson will sell more for the company, so

maximizing sales staff satisfaction is key.

b.            The sales force should support the marketing department and its goals.

c.             Unless you guide them through the sales process, buyers will

not buy, so direct contact with salespeople should be prioritized over other channels.

d.            Fewer channels cause fewer complications, so choosing the

simplest organizational structure is best.

e.            Buyers will be more satisfied if they can purchase what, when, and the way they want to.

2.            All of the following are factors that can affect the way a company

structures its sales force EXCEPT:

a.            the recommendations of companies in other industries

b.            the habits of its customers

c.             the cost of each method of selling

d.            the sales history of different channels in the company

e.            the structure of the competition

3.            The organization of a company's sales force is most heavily influenced by:

a.            the sales manager

b.            the price customers are willing to pay for the product

c.             the marketing department

d.            the goals of the entire organization

e.            the metrics set by the sales department

4.            The organization of the sales force should work toward which of the following two goals?

 

a.            the salespeople increase their sales each month and the customers award the company a sole supplier contract

b.            the sales quotas of the department are met and the

department runs as efficiently as possible

c.             the sales quotas of the department are met and the customers pay the highest prices the market will bear

d.            the salespeople maximize their commissions and the sales

department is as small as possible

e.            the sales force carries out the goals set by the marketing department and the salespeople increase sales each month

5.            All of the following are roles of a sales manager that are affected

by the structure of the sales force EXCEPT:

a.            carrying out marketing goals

b.            training salespeople

c.             recruitment and selection of salespeople

d.            evaluating performance of salespeople

e.            compensating salespeople

6.            Which of the following is a mistake companies often make when choosing a structure for their sales force?

a.            They determine how many sales are necessary to achieve

the company's goals.

b.            They factor in CL V of different segments of their customers when choosing a sales structure.

c.             They choose a structure that includes different methods to

appeal to different types of buyers.

d.            They design the structure of the sales force according to the salespeople they currently employ.

e.            They put more weight on customer satisfaction than on

margins.

7.            According to economic theory, sales managers should hire as many salespeople as possible:

 

a.            as long as there are no compelling reasons to stop hiring

b.            as long as the salespeople are willing to work for the wages offered

c.             until the salespeople feel too much competition in the

workplace and become dissatisfied

d.            as long as each salesperson sells more than he or she costs the company

e.            until the market is saturated

8.            The breakdown method and workload method are:

a.            used to balance the different types of salespeople employed by a company

b.            used to manufacture products in Sigma 6 compliant

production plants

c.             used to compute sales commissions

d.            used to deliver product to customers in various locations

e.            used to calculate how many salespeople a company should hire

9.            The benefit of using the breakdown method to calculate how big

the salesforce should be is that it is a simple calculation. The limitation of the method is that:

a.            not everyone in the sales department knows what the yearly

goals are

b.            it does not account for the fact that some salespeople will sell more than others will

c.             sales forecasts can vary widely from quarter to quarter

d.            the manager might not know the yearly sales goal for the department

e.            it is difficult to know the true costs of hiring a salesperson

10.          The workload method of calculating the number of salespeople a company needs to hire:

 

a.            is logical in theory, but is impractical to calculate and implement

b.            is elegant, but overestimates the number of salespeople

needed

c.             takes into account the various duties of salespeople as well as the company's goals

d.            asks salespeople to perform duties traditionally performed

by other job functions

e.            uses computations that are too difficult to be practical

11.          To calculate the number of sales calls salespeople will need to make over the course of a year, the workload method starts by:

a.            asking current buyers whether they would prefer to be

visited more often by salespeople

b.            dividing current buyers into categories depending on how much contact they will need

c.             determining the optimal number of visits to make to a

customer

d.            calculating the maximum number of sales calls one salesperson can make each day

e.            determining what the budget is for hiring salespeople

12.          Once a company knows how many visits the sale force will need to make over the course of a year, what other things does it need to calculate?

a.            the number of sales calls current salespeople make per day,

on average

b.            the number of sales calls a salesperson can reasonably make each week, and then multiply that by 52

c.             the number of accounts each salesperson will handle

d.            the number of customers, then divide the number of calls by the customers to get the average per customer

 

e.            the number of sales calls a salesperson can reasonably make in a year, and an allowance for other duties that are not sales calls

13.          Which of the two calculating methods--breakdown and workload--

is better?

a.            The breakdown method is better because it strips away the complications and produces numbers that take into account multiple scenarios.

b.            The workload method is better because the information can

all be calculated using CRM software.

c.             The breakdown method is better because it keeps the control in the hands of sales managers instead of the marketing department.

d.            The workload method is better because it gives a fuller

picture of the actual workload salespeople encounter and is therefore more realistic.

e.            The breakdown method is better because it is a simpler

calculation.

14.          In which of the following situations would generalist salespeople make more sense than specialist salespeople?

a.            A company has a small product line that is used the same

way by all customers.

b.            A company has a large list of offerings and the customers have specific but differing needs.

c.             A company only has one product and the customers use it in

disparate ways.

d.            A company has a large list of specialized products and two distinct user groups of customers.

e.            A company has a small product line and the customers are

divided into three discrete user groups.

 

15.          A geographical sales structure:

a.            organizes the salesforce in teams of salespeople, each representing different regions

b.            organizes sales territories by physical areas of the world

c.             organizes sales territories by customer account

d.            organizes the salesforce according to where salespeople live

e.            organizes sales territories by product sold

16.          When a sales force is arranged geographically, the salespeople are:

a.            generalists

b.            specialists

c.             agents

d.            outsourced

e.            hybrid

17.          Which of the following is NOT an advantage of a geographical sales structure?

a.            It gives each customer one specific salesperson.

b.            It helps schedule customer visits efficiently.

c.             It reduces duplication of effort for salespeople.

d.            It means the salespeople have intimate knowledge of the customers' businesses.

e.            It is easy to layout.

18.          Why would a company decide NOT to use geographical sales structure?

a.            Customers want to deal with only one salesperson.

b.            Its product line is complex and varied.

c.             Its customers require in-person visits.

d.            It only sells one product.

e.            When business increases, they can divide up the territories.

19.          A product sales structure assigns salespeople:

a.            by size of the customer

b.            by geographical area

 

c.             according to product lines or divisions

d.            as if they were generalists

e.            according to seniority

20.          The three sales structures (geographic-based, product-based, and market/customer-based) have all of the following executive positions in common EXCEPT:

a.            General Sales Manager

b.            Sales Promotion Manager

c.             Advertising Manager

d.            Market Research Manager

e.            Sales Analyst

21.          What is one danger of a product-based sales structure?

a.            Sales calls are close together geographically, so are easy to schedule.

b.            It is easy to divide up product territories.

c.             Different salespeople may call on the same customer, confusing the customer.

d.            Customers have one specific sales representative to deal

with.

e.            Salespeople can be experts in the specific products they sell.

22.          If two or more salespeople call on the same account they may confuse the customer. What is another negative result of structuring a sales force so multiple salespeople deal with each account.?

a.            The salespeople may each have specialized knowledge of the

products they sell.

b.            The salespeople may spend less time per sales call on the customer.

c.             The customer may order more products that it would have

with just one sales contact.

 

d.            The salespeople may not share information about the account with each other, so they will be doing unnecessary work.

e.            The customer may award the company a sole supplier

contract.

23.          In the market sales structure, salespeople are assigned to customers based on:

a.            the market the customer is in

b.            the product the salesperson knows best

c.             the step in the sales process the customer is in

d.            the area of the country the customer is in

e.            the seniority the salesperson has

24.          The market sales structure is a sales model based on:

a.            understanding the customer's needs

b.            sending multiple salespeople to the same account

c.             selling at the price the market will bear

d.            maximizing return by segmenting customers

e.            achieving efficiency by reducing the number of salespeople

25.          A seller who wants to enter a new market will likely choose to structure its sales force using the:

a.            product sales structure

b.            market sales structure

c.             combination sales structure

d.            functional sales structure

e.            geographic sales structure

26.          A functional sales structure takes the sales process and:

a.            repeats it in multiple markets

b.            makes it easier by cutting out several steps

c.             unifies it by asking salespeople to implement the products they sell to customers

d.            separates it into several steps, each performed by a

specialist

 

e.            codifies the process in CRM software

27.          The biggest challenge of a functional sales structure is:

a.            compensating the specialists for the sales they make

b.            finding specialist salespeople with the appropriate expertise in their areas

c.             coordinating all the specialists so they service the customer

appropriately

d.            remembering which specialists are assigned to which customers

e.            advising the customers of who is servicing them

28.          A key account (or national account) is a customer that is:

a.            large in size and in a transactional relationship with the seller

b.            any size but with several locations

c.             large in size and strategically important to the seller

d.            any size but in an integrative relationship with the seller

e.            large in size and spread out over many locations

29.          Key accounts get more attention from salespeople because they exemplify the 80/20 Rule, which states that:

a.            80% of a company's profits come from 20% of its customers

b.            80% of the market is dominated by 20% of the vendors in the industry

c.             80% of customers pay their bills on time, while 20% will

delay paying

d.            80% of a company's salespeople service 20% of its customers

e.            80% of the customers are serviced by 20% of the salespeople

30.          What is the main disadvantage of assigning a regular territory- based salesperson to a key account?

a.            The customer might be insulted that a lower-level

salesperson has been assigned to their account.

 

b.            The salesperson might focus on quick sales instead of understanding the customer's needs to generate a long-term relationship.

c.             The salesperson might misread the buying signals of the

decision-makers at such a senior level.

d.            The customer might negotiate lower prices with an inexperienced salesperson.

e.            The salesperson might be unwilling to share information

about the customer with other departments in the company.

31.          Telemarketing salespeople can do all of the following EXCEPT:

a.            set appointments with customers for outside salespeople to visit them

b.            place calls to current customers for the purpose of selling

more products to them

c.             call customers to tell them where the company will be at trade shows near them

d.            travel to visit customers for in-person meetings

e.            receive calls from customers interested in buying a product

32.          A common customer perception that offshore call centers provided lower-quality service has led to:

a.            a "push" model of customer service

b.            increased demand for these offshore call centers

c.             new job duties for call center employees

d.            companies moving their call centers back to their home countries

e.            higher costs for the companies using these call centers

33.          One of the biggest issues companies who use computerized sales must deal with in relation to their customers is:

a.            making sure that the email messages they send to customers

are not experienced as spam

 

b.            making products that appeal to customers who prefer to do business by computer

c.             convincing salespeople to give their customer records to be

inputted to computers

d.            avoiding sending salespeople to call on them in person

e.            hiring reputable tech maintenance firms

34.          In a line organization reporting structure, the main disadvantage is that:

a.            decision-making is shared equally among all the

management levels

b.            salespeople have no idea who their managers report to

c.             salespeople are competing for customers with each other

d.            managers can only discipline the employees directly below them

e.            salespeople have little leeway to make on-the-spot decisions

to keep customers happy

35.          In general, the more specialized the selling:

a.            the less time each sale will take

b.            the more customers each salesperson will have

c.             the fewer salespeople one manager can manage

d.            the more salespeople one manager can manage

e.            the shorter the sales process will take

36.          An independent sales representative is:

a.            a salesperson who is not employed by the company and may sell products from several companies

b.            a salesperson who works on straight commission, with no

base salary

c.             a salesperson who is employed by the company, but does not work from an office

d.            a salesperson who is employed by two companies at the

same time and divides time equally between them

 

e.            a salesperson who gives sales presentations but does not close sales

37.          What is the core dilemma for an independent sales agent

representing a product line for a company?

a.            The company that hires the agent gets to set the retail price of the product.

b.            The agent cannot ever know as much about the product as

the company that manufactures it does.

c.             The agent is likely to lose the sales account if the agent sells too much or too little of the product.

d.            The agent may not have the specialized knowledge to sell

the product effectively.

e.            The company that hires the agent may not have face-to-face contact with the agent.

38.          What is the best practice for a harmonious relationship between a

company hiring an independent sales agent and the sales agent?

a.            The parties should agree to enter a mediation process if one or the other wants to terminate their business arrangement.

b.            The parties should write up an agreement about the level of

reporting and feedback they expect from each other.

c.             The company should not expect the sales agent to make as many sales as an in-house sales representative would.

d.            The company should commit to hiring the sales agent for a

minimum of 18 months before reevaluating the arrangement.

e.            The sales agent should ask for a benefits package from the

company.

39.          An ethical dilemma that comes up when a company uses sales agents to sell its products comes into play when the agents sell so much of the product that the company decides to:

 

a.            ask the sales agents to codify the sales process they go through to routinize best practices for selling to certain market segments

b.            fire the agent and use an in-house sales staff without giving

the agent any commissions on renewal or repeat business the agent established

c.             hire those sales agents in as in-house salespeople for the

company

d.            give the sales agents a larger margin on the products they sell

e.            decrease the retail price of the products

40.          A break-even analysis is a calculation that helps sales managers figure out:

a.            which products have the highest margins for the company

b.            if they should use a line organization reporting structure or a flattened-out reporting structure

c.             the monthly commissions they pay to salespeople

d.            how to structure the sales force for maximum efficiency

e.            whether it is more cost-effective to hire in-house salespeople or independent sales agents