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Chapter 16 Managing within Your Company Answer Key
True / False Questions
1.
Internal partnerships should be dedicated to satisfying customers' needs.
2.
Salespeople only sell a company, its products, and its services to customers, and they
need not sell their customers' needs to their companies.
3.
When selling internally, salespeople should use arguments that adequately address the
internal customer's needs.
4.
SPIN and active listening techniques are used to find out and understand the personal and
professional needs of an internal customer.
5.
When a conflict arises between a salesperson and an internal employee, personalizing the
conflict makes it easier to resolve.
6.
Few jobs require the boundary-spanning coordination and management skill needed to
effectively perform a sales job.
7.
Salespeople should develop relationships with manufacturing so they can make accurate
promises and guarantees to customers.
8.
The functions of order entry, billing, credit, and employee compensation require each
company to have a customer service department.
9.
Understanding the needs of the credit department and assisting it in collecting payments
can better position a salesperson to help customers receive credit later.
10.
Close relationships and support of customer or technical service representatives with a
salesperson mean not only better customer service but faster and more direct information
flow to the salesperson.
11.
Salespeople can help customer service by setting very high expectations for product
performance with customers so that customer service representatives receive extended
service calls.
12.
Marketing and sales are poorly coordinated because their functions are not related to
each other.
13.
Sales not only generates leads for salespeople but also supports marketing activities by
sourcing products and preparing proposals.
14.
Sales acts as the eyes and ears of marketing, while marketing develops the promotions
and products that salespeople sell.
15.
Rather than complain about poor marketing programs, proactive salespeople and sales
managers prefer to participate in marketing decisions and keep communication lines
open.
16.
The field sales manager is the leader at the top of the sales force hierarchy.
17.
Sales executives determine the size and organization of the sales force, develop annual
and long-range plans, and monitor and control sales efforts.
18.
A sales quota is the minimum sales revenue necessary for acceptable performance.
19.
Kristen wants her sales force to concentrate its efforts on selling the most profitable
products and on selling to most profitable accounts. To achieve this target, she can
institute profit quotas.
20.
Companies that emphasize service to customers or anticipate long-term customer
relationships typically use commission plans.
21.
Under a bonus plan, salespeople receive a lump-sum payment for a certain level of
performance over a specified time.
22.
Straight commission plans offer the greatest flexibility for motivating and controlling the
activities of salespeople.
23.
Salespeople typically report directly to a sales executive.
24.
Field sales managers are responsible for evaluating the performance of their salespeople.
25.
Ethical behavior not only applies to how salespeople treat customers but also applies to
how employers treat salespeople.
26.
If a salesperson is placed in a situation where he or she must act unethically or lose an
account, the best way out would be to rationalize the unethical action by placing
responsibility on the sales manager.
27.
Large customers are called key accounts.
28.
House accounts are handled by field sales managers in addition to their regular duties.
29.
An inside salesperson who is an account manager has the same responsibilities and
duties as a field salesperson except that all business is conducted over the phone.
30.
In an extension of team selling, multilevel selling, members at various levels of a sales
organization call on their counterparts in a buying organization.
Multiple Choice Questions
31.
Identify one of the most important functions of a sales force.
32.
Which of the following corporate areas is important to salespeople?
33.
Ed works as a salesperson in a garment manufacturing company. Which of the following
departments in Ed's company is most directly responsible for seeing that the orders he
gets from customers are properly entered into the company's computer and that he gets
his commission for the orders?
34.
Katherine is developing a forecast for her company's next year's sales of an organic
fertilizer to retail gardening nurseries. She is assembling the sales estimates for her
company's product by adding together the territory estimates provided by her salespeople.
She is engaging in _____ forecasting.
35.
Which of the following statements about forecasting in global markets is true?
36.
Why is understanding quotas important to salespeople?
37.
Taylor sells roller coasters, carousels, bumper cars, and other similar rides to amusement
parks. His manager has told him that he must find buyers for at least six water flume rides,
three carousels, two coaster rides, and ten kiddie rides this fiscal year. Taylor's manager
has given him his:
38.
Mack is a salesperson with Cible Department Store. His manager has given him a target of
selling $525,000 worth of merchandise in his territory in the current financial year. Identify
the type of quota that Mack is expected to achieve.
39.
Lennie is a salesperson with Eddy's Laboratories. Lennie's sales manager expects him to
make at least five sales calls per day and meet at least five customers per week. Identify
the type of quota assigned to Lennie by his sales manager.
40.
_____ are important in situations where the sales cycle is long and sales are few because
what a salesperson does can be observed more frequently than sales.
41.
_____ is the amount of money paid to a salesperson at regular intervals regardless of his or
her performance.
42.
Harry is a sales representative working for a pharmaceutical company. He achieved 130
percent of his annual sales target for the current financial year. To reward him for his
excellent performance, his company made an extra payment as _____.
43.
Alkara receives $200 per week plus 10 percent of the value of all the sales she makes. In a
particular week, she makes a sale of $750. The 10 percent of the total revenue of $750
best exemplifies:
44.
Jill is newly appointed as a salesperson with Fleurs Perfumes. For every case of fragrance
that Jill sells, she earns $10. Identify this extra payment that Jill receives for every case of
fragrance.
45.
A(n) _____ is incentive pay for overall performance in one or more areas.
46.
A salesperson who receives a fixed amount of money for working during a specified time is
compensated using the _____ method.
47.
Chris receives $520 per week of gross pay in his sales job at Lark Dealership. This amount
remains fixed and does not vary with the number of sales. As long as Chris works his 40
hours, he gets paid $520. Chris is paid:
48.
Straight salary plans are typically used when:
49.
A _____ plan typically pays a certain amount per sale, and the plan includes a base and a
rate but does not include a salary.
50.
Marshall is compensated by his company under a straight commission plan. He receives
10 percent of the total sales revenue per week. In a particular week, the total sales
revenue is $6,000. This amount is known as the:
51.
Michael is a salesperson with Sigma Chi Industries. His incentive pay is determined by the
number of units that he sells in a week. Which of the following determines the amount
paid to Michael?
52.
Arnold is a salesperson. His company's compensation plan involves paying him 14 percent
of the total sales he makes per month. This 14 percent is known as the:
53.
Money paid to a straight commission salesperson against future earnings, which
guarantees a stable cash flow, is called a:
54.
Ed works for Lanier Business Products as a sales representative. He receives a straight
commission. In weeks when his earned commission is less than $600, the company loans
him enough money against future commissions to allow him to receive $600. In weeks
when Ed earns more than $600, the extra is used for repaying the previous loan. For Ed,
the guaranteed $600 is his:
55.
Which of the following is an advantage of a straight commission plan?
56.
Companies that do not emphasize service to customers or do not anticipate long-term
customer relationships typically use a _____ plan.
57.
Which of the following is a major disadvantage associated with a combination
compensation plan?
