Florida International University

MAR 3023

Chapter 16-Directing and Managing the Field Sales Effort

True/ False Questions

1)Strategic account managers develop and execute plans to optimize the firm’s business and direct teams that may include local sales and customer service and personnel from brand management, finance, HR, logistics, market research, operations, product classes, and trade marketing.

2. Simply defined, sales objectives are the firm’s desired results and the sales force’s central task.

3. Intermediate objectives focus on actions that the firm requires the customer to take such as being awarded qualified supplier status.

4. In a bottom-up process, senior sales managers partition overall revenue objective among sales regions.

5. Calendarizing allows the firm to monitor performance on a continuous basis and sets the stage for making course corrections if performance deviates negatively from the objectives.

6. The experimental method to sales force sizing uses the following three steps: (1) estimate the total number of selling hours required to achieve sales objectives, (2) calculate the number of available selling hours per salesperson, and (3) calculate the required sales force size.

7. When a salesperson has total responsibility in a specific geographic area, the sales force organizational form is referred to as geographic.

8. According to the text, a firm in a mature industry is perhaps most likely to focus on the current customers/current products category.

9. Stereotyping is a major criterion relevant to a firm’s decision to outsource the selling process.

10. According to the text, commission is variable compensation based on sales or profits.

11. Compensation paid regardless of short-term sales performance is referred to as salary.

12. Different salespeople are responsible for the firm’s most important customers in the key account organization form.

13. Compensation paid regardless of sales performance is referred to as commission.

14. According to the text, salary is variable compensation based on sales or profits.

15. Bonus describes compensation based on attaining a level of sales or profits.

16. Sizing and defining the pool from which salespeople will be selected is referred to as recruitment.

17. According to the text, selection is using a set of criteria to choose salespeople from the recruitment pool.

18. An example of a Type I error is not hiring a salesperson who would have succeeded had he or she been hired.

19. Retaining is maintaining high-performing salespeople in the sales force.

20. Designing critical organizational processes is a sales management task that focuses on developing sales strategy.

Multiple Choice Questions

21. Which of the following best describes the 80/20 rule?

a.) 80 percent of the firm’s cost comes from 20 percent of its revenues. b.) 80 percent of the firm’s revenues comes from 20 percent of its costs, c.) 80 percent of the firm’s cost comes from 20 percent of its customers.

d.) 80 percent of the firm’s revenues comes from 20 percent of its customers.

22. According to the text, which tier of customers provides the higher levels of sales and profits and are considered strategic or key accounts due to the high percentage of revenues and profits they represent today and/or tomorrow?

a.) Tier II customers

b.) Tier I customers

c.) Tier III customers d.) Tier IV customers

22.                                                 develop and execute plans to optimize the firm’s business and direct teams that may include local sales and customer service and personnel from brand management, finance, HR, logistics, market research, operations, product classes, and trade marketing.

a.) Global account managers b.) Sales representatives

c.) Strategic account managers

d.) Sales managers

22.                                             develop plans for multinational accounts and manage the global account teams that implement their strategies.

a.) Global account managers

b.) Strategic account managers c.) Sales representatives

d.) Sales managers

23. Which of the following is NOT mentioned in the text as a lower-cost method to address customers whose revenues and profits do not justify face-to-face selling effort?

a.) Develop new communications strategy. b.) Hand off to third parties.

c.) Develop new product offerings.

d.) Fire customers.

24. Which of the following is NOT mentioned in the text as a key task of sales management? a.) Achieve sales objectives.

b.) Develop new product offerings.

c.) Determine and allocate sales force effort. d.) Design the sales organization.

25. Simply defined,                                             is/are the firm’s desired results and the sales force’s central task.

a.) the company’s vision b.) the company’s mission c.) strategic plans

d.) sales objectives

26. Sales objectives turned into specific performance requirements are called

                                        .

a.) sales quotas

b.) sales forecasts c.) commissions d.) rebates

27. Typically, the most common way the sales force deals with overall sales objectives is to break them down into                                                                                 like sales regions, sales districts, and individual sales territories.

a.) input objectives b.) strategic units

c.) control units

d.) output objectives

28. In a                                           process, senior sales managers partition overall revenue objective among sales regions.

a.) top-down

b.) horizontal c.) bottom-up d.) virtual

29. In a                                           process, the district manager asks each salesperson to commit to certain sales levels by product and segment.

a.) top-down b.) horizontal

c.) bottom-up

d.) virtual

30.                                             allows the firm to monitor performance on a continuous basis and sets the stage for making course corrections if performance deviates from the objectives.

a.) Calendarizing

b.) Consolidating c.) Forecasting d.) Satisficing

31. All of the following represent alternative measures of sales performance EXCEPT: a.) Customer retention

b.) Close rate

c.) Calendarizing

d.) Customer satisfaction

32. Which of the following is NOT mentioned in the text as a related decision that concerns the assessment and allocation of the selling effort?

a.) Sales force size

b.) Sales force activity focus c.) Selling effort allocation

d.) Competitor focus

33. Which of the following represent the two methods for approaching the sales force sizing decision?

a.) Experimental and analytic

b.) Systematic and analytic c.) Experimental and intuitive d.) Standardized and analytic

34. The                                           method to sales force sizing uses the following three steps: (1) estimate the total number of selling hours required to achieve sales objectives, (2) calculate the number of available selling hours per salesperson, and (3) calculate the required sales force size.

a.) experimental

b.) analytic

c.) judgmental d.) standardized

35. For which of the following approaches to sales force sizing does the firm classify accounts on multiple dimensions?

a.) Experimental b.) Analytic

c.) Judgmental

d.) Portfolio model

36. All of the following are mentioned in the text as steps used in sales training programs EXCEPT:

a.) Call objectives b.) Need elicitation

c.) Determining breakeven points

d.) Handling objections

37. All of the following are mentioned in the text as distinct steps necessary to translate the generalized market segment offer into the specific message delivered by individual salespersons to individual customers EXCEPT:

a.) Salespeople and sales managers must analyze the specific customer needs and competitive threats at their accounts.

b.) Salespeople must translate the core strategy statements into specific benefits for their accounts.

c.) Salespeople must be prepared to answer objections and sell against strong competition.

d.) Salespeople must be willing to make unethical decisions to compete against strong competition.

38. All of the following are mentioned in the text as critical issues that should be considered when designing the sales organization EXCEPT:

a.) Whether or not the selling effort should be conducted by firm employees or outsourced to another organization

b.) Determining how a competitor-based sales force should be organized

c.) Determining how an employee-based sales force should be organized

d.) Determining how the entire firm/customer organizational interface should be managed

39. Which of the following is NOT mentioned in the text as a major criterion relevant in a firm’s decision to outsource the selling process?

a.) Control b.) Cost

c.) Modification

d.) Stereotyping

40. The cost of all of the following salespeople is frequently almost completely variable EXCEPT:

a.) For a company’s own sales force

b.) For agents

c.) For representatives d.) For brokers

41. Specialized selling effort can be constructed in all of the following ways EXCEPT: a.) By product

b.) By distribution channel member

c.) By competitor

d.) By market segment

42. When a salesperson has total responsibility in a specific geographic area, the sales force organizational form is referred to as                                                                           .

a.) product form

b.) geographic form

c.) market-segment form d.) key account form

43. Different salespeople are responsible for the firm’s most important customers in which of the following sales force organizational forms?

a.) Product form

b.) Geographic form

c.) Market segment form

d.) Key account form

44. Compensation paid regardless of sales performance is referred to as                                               .

a.) salary

b.) commission c.) gainshare d.) bonus

45. According to the text,                                             is variable compensation based on sales or profits.

a.) salary

b.) commission

c.) gainshare d.) bonus

46. Which of the following describes compensation based on attaining a level of sales or profits?

a.) Salary

b.) Commission c.) Gainshare

d.) Bonus

47. All of the following are mentioned in the text as questions that salespeople should be able to answer affirmatively before the reward system will motivate the required behavior and results EXCEPT:

a.) Do I believe that I can achieve my objectives?

b.) Do I value the promised rewards contingent on my achieving these objectives?

c.) Is the reward system legal?

d.) Do I believe that I will receive these rewards if I achieve my objectives?

48. To secure the right people, sales managers must work with all of the following important variables EXCEPT:

a.) Recruitment b.) Selection

c.) Proofing

d.) Training

49. Sizing and defining the pool from which salespeople will be selected is referred to as

                                           .

a.) recruitment

b.) selection c.) proofing d.) training

50. According to the text,                                             is using a set of criteria to choose salespeople from the recruitment pool.

a.) recruitment

b.) selection

c.) proofing d.) training

51. Ensuring that those salespeople hired acquire the necessary knowledge, skills, and abilities to make them effective is referred to as                                                                         .

a.) recruitment b.) selection c.) proofing

d.) training

52.                                          is maintaining high performing salespeople in the sales force.

a.) Retaining

b.) Recruitment c.)   Selection d.) Proofing

53. Which of the following trade-offs is NOT mentioned in the text as a requirement for considering the decision to hire a qualified salesperson?

a.) Time

b.) Demographic

c.) Tolerance for failure d.) Company philosophy

54. An example of a                                        is hiring a salesperson who eventually fails. a.) Type IV error

b.) Type III error c.) Type II error

d.) Type I error

66.      An example of a                                        is not hiring a salesperson who would have succeeded had he or she been hired.

a.) Type IV error b.) Type III error

c.) Type II error

d.) Type I error

Essay Questions

56. In a short essay, list the six tasks of sales management.

57. In a short essay, list and discuss the three crucial questions when deciding whether or not to outsource the firm’s selling efforts.

58. In a short essay, list and discuss three major criteria that are relevant to a firm’s decision of whether to develop its own sales organization or contract the selling function to third-party agents.