200) The sales manager instructed the salesperson to ” make at least 500 customer contacts
between January 1 and July 1.” The sales manager voiced a(n)________ sales objective.
A) output-related
B) input-related
C) behaviorally related
D) comprehensive-related
E) market-related
201) One type of sales objective is ________, which is typically specific for each salesperson
and includes his or her product knowledge, customer service, and selling and communication
skills.
A) output-related
B) input-related
C) profit-related
D) expertise-related
E) behaviorally related
202) All of the following are behaviorally related sales objectives except which?
A) communication skills
B) customer service satisfaction ratings
C) number of new customers
D) selling skills
E) product knowledge
203) All of the following are types of sales objectives except which?
A) input-related
B) employer-related
C) competitor-related
D) behaviorally related
E) output-related
204) An effective sales plan objective should be
A) general, measurable, and flexible.
B) profitable, subjective, and measurable.
C) precise, profitable, and flexible.
D) precise, measurable, and time specific.
E) general, flexible, and profitable.
205) Research indicates that 25 percent of U.S. salespeople engaged in business-to-business
selling consider it ________ to explicitly ask customers about competitors’ strategies such as
pricing practices, product development efforts, and trade and promotion programs.
A) essential
B) ineffective
C) unethical
D) counterproductive
E) impolite
206) Organizing a selling organization includes answering all of the following questions except
which?
A) Should the firm use independent agents such as manufacturer’s representatives?
B) How many company salespeople should be employed?
C) Should the salespeople be organized according to geography, customer type, or offering?
D) Should the firm use its own salesforce?
E) How should the salesforce be compensated?
207) A break-even chart for comparing independent agents and a company salesforce includes
________ and ________.
A) selling costs; sales revenues in dollars
B) sales profits; percentage of market share
C) salary compensation; commission compensation
D) calls made; sales made
E) number of independent agents; number of company salesforce personnel
208) An insurance company is considering using independent sales agents who would receive a 7
percent sales commission on sales or its own insurance salespeople who would receive a 5
percent commission, salaries, and benefits. Additionally, with a company salesforce, sales
administration costs would be incurred for a total fixed cost of $650,000 per year. At what level
of sales would independent salespeople be less costly to the firm?
A) $650,000
B) $3,250,000
C) $6,500,000
D) $32,500,000
E) $35,200,000
209) If a company chooses to employ its own salesforce, the three basic organizational salesforce
structures from which to choose are
A) dollar volume, unit volume, and market share.
B) NAICS, market size, and geography.
C) geography, customer, and product/service.
D) market size, market share, and market type.
E) dollar volume, unit volume, and profit.
210) Which is the simplest salesforce organizational structure?
A) profit
B) customer
C) product
D) geographical
E) market
211) In a ________, the United States, or even the globe, is divided into regions and each region
is divided into districts or territories.
A) product/service sales organization
B) customer sales organization
C) geographic sales organization
D) demographic sales organization
E) NAICS sales organization
212) An advantage of a geographical sales organization is that it
A) is more effective and provides specialized customer support.
B) minimizes travel time, expenses, and duplication of selling effort.
C) has smaller costs for sales calls.
D) reduces the number of salespersons in the salesforce.
E) requires fewer sales managers.
213) A geographical sales organization would not be the best structure if
A) a firm is trying to reduce duplication of selling effort.
B) a firm is trying to minimize travel time.
C) a firm’s products or customers require specialized knowledge.
D) different buyers have similar needs.
E) there is a need to increase the number of salespersons in the salesforce.
214) An office memo read, “Sales representatives from Kansas, Nebraska, Iowa, and Missouri
will now report to the Midwest regional manager.” It would appear the company that issued the
memo uses a ________ sales organization for its salesforce.
A) profit
B) customer
C) product
D) geographical
E) market
215) When different types of buyers have different needs, a ________ sales organization
structure is used.
A) multi-reseller
B) customer
C) geographical
D) market segmentation
E) multilevel marketing
216) A sales organization practice whereby a different salesforce calls on each separate type of
buyer or market channel is referred to as a
A) multi-reseller organization.
B) geographical organization.
C) customer sales organization.
D) product/service sales organization.
E) multilevel marketing organization.
217) A disadvantage of a customer sales organization is
A) the need to assign just one salesperson to local, regional, national, and global territories.
B) an increased need for multilingual salespeople.
C) the smaller number of qualified sales managers.
D) the need for close teamwork among a diverse salesforce.
E) higher administrative costs and some duplication of selling effort.
218) The practice of using team selling to focus on important customers so as to build mutually
beneficial, long-term, cooperative relationships is referred to as
A) key account management.
B) relationship marketing.
C) relationship selling.
D) customer account management.
E) needs-satisfaction selling.
219) Key account management refers to
A) the assignment of a single salesperson to a single customer throughout the course of the entire
sale.
B) the practice of assigning the highest performing salesperson to the clients with the most
profitable accounts.
C) the practice of using team selling to focus on important customers so as to build mutually
beneficial, long-term, cooperative relationships.
D) a sales relationship that involves a face-to-face, person-to-person encounter rather than a sale
made through extranets.
E) the practice of occasionally making contact with a customer on a sporadic basis following the
initial sale of a product or service.
220) ________ involves the use of teams of sales, service, and technical personnel who work
with purchasing, manufacturing, engineering, logistics, and financial executives in customer
organizations.
A) Sales analysis
B) Formula selling
C) Adaptive selling
D) Consultative selling
E) Key account management
221) Canam Canada specializes in the fabrication of steel joists, joist girders, and steel deck for
use in commercial construction. Canam Canada offers value-added engineering support,
architectural flexibility, and customized solutions and services. Canam Canada uses team selling
that focus on important customers to build mutually beneficially, long-term, relationships. Teams
include sales, service, and technical personnel to work exclusively with assigned customers.
Canam’s salesforce practices are an example of
A) unique account management.
B) key account management.
C) specialty account management.
D) one-of-a-kind account management.
E) consultative account management.
222) When specific knowledge is required to sell certain types of products or services, then a
________ is used.
A) territorial sales organization
B) customer sales organization
C) product sales organization
D) geographical sales organization
E) multilevel marketing sales organization
223) The advantage of a product sales organization is that
A) salespeople can develop expertise with technical characteristics, applications, and selling
methods for a particular product.
B) the number of salespersons in the salesforce can be reduced.
C) there is a lower cost for sales calls since this method is chosen for products that inherently
have little or no product variation.
D) it significantly minimizes travel time, expenses, and duplication of selling effort from one
territory to another.
E) fewer sales managers are required since the salesforce is paid strictly on commission.
224) The disadvantage of a product sales organization is
A) it increases the number of salespersons in the salesforce since most product sales
organizations are based around standard rebuys.
B) there is a larger cost for sales since this method is chosen for products that inherently have
little or no product variation.
C) it significantly maximizes travel time, expenses, and duplication of selling effort from one
territory to another.
D) it increases the requirement for more sales managers since the salesforce is paid strictly on
commission, which acts as a significant self-motivator.
E) it produces high administration costs and duplication of selling effort because two company
salespeople may call on the same customer.
225) ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30
billion. At one time, ABB had a salesforce that sold only generators, one that sold only boilers,
another that sold only transformers, and so forth. Each of its salespeople was an expert on the
items he or she sold. Its salesforce was organized by
A) workload.
B) customer.
C) geography.
D) product.
E) size.
226) The workload method
A) determines a fair and equitable compensation plan based on a weighted system for sales of
different types of items or from different-sized territories.
B) identifies the target market that most closely meets the special skills of the salesforce.
C) determines the size of a salesforce by integrating the number of customers served, call
frequency, call length, and available selling time to arrive at a salesforce size figure.
D) describes what is to be achieved and where and how the selling effort of salespeople is to be
deployed.
E) determines when a company’s salesforce becomes more profitable than independent sales
agents to sell its company’s products.
227) A formula-based method for determining the size of a salesforce that integrates the number
of customers served, call frequency, call length, and available selling time to arrive at a
salesforce size is referred to as the
A) workload method.
B) workhorse method.
C) salesforce staffing formula.
D) salesforce territory distribution matrix.
E) salesforce allocation method.
228) The ________ is a common formula-based approach for determining the size of a
salesforce.
A) sales response function
B) account management framework
C) workhorse method
D) salesforce allocation method
E) workload method
229) Diamond Line is a distributor of everything a florist needs to create a beautiful arrangement
except the flowers. It sells to 10,000 flower and gift shops and 5,000 supermarkets nationwide.
Each florist is called on four times a month and each supermarket is called on twice a month.
Assume a 52-week calendar year and that each salesperson takes a four-week vacation. A sales
call to a florist takes one hour, and a sales call to a supermarket takes two hours of selling time.
An average salesperson spends 1,000 hours per year making sales calls. The number of
salespeople Diamond Line needs to cover its account base is
A) 15.
B) 52.
C) 240.
D) 480.
E) 720.
230) Policies that specify who salespeople should contact, what kinds of selling and customer
service activities should be engaged in, and how these activities should be carried out are
referred to as
A) sales response management policies.
B) key account management policies.
C) account management policies.
D) customer management policies.
E) salesforce management policies.
231) Account management policies
A) specify how salespeople will be compensated and how sales performance will be evaluated.
B) specify which products or services will be offered to which consumers, through which outlets,
and at what price.
C) specify the organizational structure of the salesforce and set the sales goals for both individual
sales representatives and the salesforce as a whole.
D) specify whom salespeople should contact, what kinds of selling and customer service
activities should be engaged in, and how these activities should be carried out.
E) determine the sales quotas for the upcoming year based upon past sales performance and
current estimates of demand.
232) Aspects of ________ policies might include which individuals in a buying organization
should be contacted, the amount of sales and service effort that different customers should
receive, and the kinds of information salespeople should collect before or during a sales call.
A) sales response management
B) account management
C) sales administration
D) customer interaction
E) prospect administration
233) Consider Figure 20-7 above, which is an account management policy grid that groups
customers according to the level of opportunity and the firm’s competitive sales position. Box A
represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct
mail to service accounts
B) accounts that should emphasize a heavy sales organization position or shift resources to other
accounts if a stronger sales organization position is impossible
C) accounts that offer a poor opportunity because they have high levels of competition
D) accounts that should receive a high level of sales calls and service to retain and possibly build
accounts
E) accounts that should receive moderate level of sales and service to maintain current position
of sales organization
234) Consider Figure 20-7 above, which is an account management policy grid that groups
customers according to the level of opportunity and the firm’s competitive sales position. Box B
represents which account management policy?
A) accounts that the firm should consider replacing personal calls with telephone sales or direct
mail to service accounts
B) accounts that should emphasize a heavy sales organization position or shift resources to other
accounts if a stronger sales organization position is impossible
C) accounts that offer a poor opportunity because they have high levels of competition
D) accounts that should receive a high level of sales calls and service to retain and possibly build
accounts
E) accounts that should receive moderate level of sales and service to maintain current position
of sales organization