17-7
1. Sales volume alone does not tell you how much profit or loss you are making
on the sales of each member of the sales force.
2. Call frequency is helpful only when compared with the profit earned on each
account.
3. Comparing a salesperson’s current productivity with the past also can be
misleading.
4. Some sales managers use performance evaluation criteria that communicate to
5. Evaluating salespeople involves:
a. Defining the bases on which they are to be evaluated
1. Quantitative criteria include:
a. Sales volume in dollars
2. Qualitative criteria include:
a. Attitude
b. Product knowledge
1. Quantitative items are especially significant when accompanied by target
dates.
2. Self-evaluation is also part of the overall evaluation process.
17-8
END-OF-CHAPTER ACTIVITES
Included in this section are answers to selected end-of-chapter exercises. Answers
are provided for all review questions, application exercises and case problems. Also, a
“Partnership Selling: A Role-Play/Simulation.” Answers, forms, and instructions related
Key Terms
Sales management, p. 355: Sales management is the process of planning,
is more likely to have relationships with salespeople that are characterized by mutual
trust, respect for salespeople’s ideas, and consideration for their feelings
Situational leadership, p. 357: The situational leadership approach is based on the
theory that the most successful leadership occurs when the leader’s style matches the
situation.
sales positions provide an opportunity for achievement and individual growth.
External motivation, p. 363: External motivation is an action taken by another person
that involves rewards or other forms of reinforcement that cause the worker to behave
in ways to ensure receipt of the award.
17-9
Compensation plans, p. 364: Compensation plans for salespeople combine direct
monetary payments (salary and commissions) and indirect monetary payments such
as paid vacations, pensions, and insurance plans.
Quantitative criteria, p. 366: Quantitative criteria is related to sales volume, new
accounts, profit, and number of calls made.
Qualitative criteria, p. 366: Qualitative criteria related to attitude, product
knowledge, communication skills, personal appearance, customer feedback, selling
skills, and personal initiative.
MyMarketingLab
To complete the problems with the * in your MyLab, go to the EOC Discussion
Questions.
17-1 What is the difference between leadership and management?
17-2 Are all sales managers’ duties the same? Explain.
17-3 What are the two main leadership qualities displayed by most successful sales
managers? Define and explain each of these qualities.
The two main qualities are structure and consideration. Structure means a clear
17-10
17-4 List and describe the four basic steps involved in coaching.
17-5 What is a job description? Explain the importance of job descriptions in selecting
salespeople.
17-6 What are four sources of recruiting new salespeople?
17-7 What should sales managers look for in selecting new salespeople? Describe at
17-8 List and describe three guidelines that should be followed when you design a sales
motivation program based on external rewards.
17-9 List and describe the five basic compensation plans for salespeople.
The five basic compensation plans for salespeople are: (1) the straight commission
17-11
SUGGESTED ANSWERS FOR APPLICATION EXERCISES
17-10. The sources to use in recruiting salespeople are: (1) candidates within the
company (a warehouse employee or accountant who wants to transfer into sales), (2)
17-11. A guaranteed salary plus commission on sales would be appropriate for the first
17-12. This field-based exercise is designed to get students talking with sales managers
17-13. The number of matches will vary (should find at least 8–10). You may want to
ROLE-PLAY EXERCISE
This role-play will give students the opportunity to plan and conduct a hiring
interview. Encourage students to carefully plan the questions they will ask.
17-14. In many sales situations, customer feedback is critical. Customers are often
17-15. This is a complex issue, but some companies have successfully linked
compensation to customer satisfaction. It is very important that members of the sales
17-16. To gain support from the sales staff, it’s a good idea to involve them in
17-17. They realize that salespeople who understand the customer’s business are more