Deck 7: Time and Territory Management

Question 1

Time and territory management involves all of the following except

A) determining which accounts are called on
B) when these accounts are called on
C) how often these accounts are called on
D) all of the above

Answer 1

all of the above

Question 2

As selling costs increase, many companies are finding ____________ as a more economical way of reaching customers and prospects.

A) team selling
B) telemarketing, Internet, intranets, and extranets
C) WATS lines
D) advertising on prime-time television

Answer 2

telemarketing, Internet, intranets, and extranets

Question 3

Even though most companies establish sales territories on a geographic basis, the major emphasis should be on

A) political units
B) customers and prospects
C) travel time of the salespeople
D) ease of access of the customers' main production plants

Answer 3

customers and prospects

Question 4

All of the following are reasons for establishing sales territories except

A) strengthen customer relations
B) build a more effective sales force
C) better evaluate each salesperson
D) coordinate selling with other management functions

Question 5

Sales territories facilitate planning and controlling selling activities. Efficient territories enable salespeople to spend more time with present and potential customers and less time on the road and hence ____________.

A) strengthen customer relations
B) build a more effective sales force
C) better evaluate each salesperson
D) coordinate selling with other marketing functions

Question 6

Sales territories facilitate planning and controlling selling activities. Well-designed sales territories motivate salespeople, improve morale, increase interest, and ____________.

A) strengthen customer relations
B) build a more effective sales force
C) better evaluate each salesperson
D) coordinate selling with other marketing functions

Question 7

Sales territories facilitate planning and controlling selling activities. Sales and cost analysis is easier on a territory basis than for the entire market, hence well-designed sales territories enable management to ____________.

A) service customer relationships
B) build a more effective sales force
C) better evaluate each salesperson
D) coordinate selling with other marketing functions

Question 8

In developing sales territories, the optimal size is

A) a county or large city
B) two medium-sized cities adjacent to each other
C) big enough to represent a reasonable workload for the salesperson
D) decided by the total number of salespeople employed by the company

Question 9

All of the following are reasons for not establishing sales territories except

A) when the available sales coverage is greater than the sales potential of the market
B) when sales are made primarily on the basis of social contacts
C) when there is not enough business for every salesperson
D) only a and c above

Question 10

Firms that have adopted a ____________ perspective see benefits in assigning territories based on customer characteristics instead of geographical characteristics.

A) customer satisfaction perspective
B) customer relationship management perspective
C) customer loyalty perspective
D) customer service perspective

Question 11

Instead of geographical characteristics, firms may see benefits in assigning territories based on customer relationships. In so doing, the following relationship characteristics is not appropriate:

A) Trust between customers and sales reps is critical
B) closeness between customers and sales reps is critical
C) opportunistic behavior between customers and sales reps is critical
D) customers characterized as best buyers

Question 12

The procedure for setting up sales territories includes all of the following steps except

A) select a geographical control unit
B) make an analysis of the skills and abilities of each salesperson
C) develop a salesperson workload analysis
D) combine geographical control units into territories

Question 13

The first step in the procedure for developing sales territories is:

A) select a geographical control unit
B) conduct an account analysis
C) develop a salesperson workload analysis
D) combine geographical control units into territories

Question 14

The second step in the procedure for developing sales territories is:

A) select a geographical control unit
B) conduct an account analysis
C) develop a salesperson workload analysis
D) combine geographical control units into territories

Question 15

The fourth step in the procedure for developing sales territories is:

A) conduct an account analysis
B) develop a salesperson workload analysis
C) combine geographical control units into territories
D) assign salespeople to territories

Question 16

The fifth step in the procedure for developing sales territories is:

A) conduct an account analysis
B) develop a salesperson workload analysis
C) combine geographical control units into territories
D) assign salespeople to territories

Question 17

Sales managers should select as small a control-unit as possible in establishing sales territories for all of the following reasons except

A) it aids in pinpointing the exact geographical location of sales potential
B) it makes adjusting the territories much easier
C) it decreases the number of salespeople needed to cover the total market
D) all of the above

Question 18

While sales territories established around states are simple, inexpensive and convenient, several characteristics are important to note. All of the following statements are true except

A) many customers from one state cross into other states
B) states may be too large for sales managers to adequately control and evaluate their salespeople
C) problems in allocation of equitable territories according to sales potential
D) all of the above are true

Question 19

Which of the following is/are disadvantage(s) in using counties as control units?

A) they are usually the smallest units for which governmental data are available
B) counties are small enough that sales managers can pinpoint problems
C) the smaller size of counties offers flexibility in shifting counties from one territory to another
D) not all counties are similar in size, sales potential, or ease of market coverage

Question 20

David Woodruff is a sales manager who is trying to select a geographical control unit for establishing sales territories. He needs a control unit that is very flexible and which reflects the economic and demographic characteristics of the individual areas. Which control unit should he choose?

A) states
B) counties
C) zip codes
D) cities

Question 21

A Metropolitan Statistical Area (MSA) can best be defined as

A) an economic and social unit with a large population of five million
B) a city with 50,000 inhabitants or more
C) A census-defined urbanized area of at least 50,000 inhabitants and a total MSA population of at least 100,000 (75,000 in New England)
D) b and c above

Question 22

A Consolidated Metropolitan Statistical Area (CMSA) have the following characteristics except

A) a population of 1 million or more
B) a large concentration of minorities
C) a large concentration of industry, and income
D) a large concentration of consolidated retail stores

Question 23

Firms that sell through channel partners (e.g., wholesalers and retailers) often use _______________ as control units.

A) zip codes
B) MSA's
C) trading areas
D) counties

Question 24

Which of the following statements is inaccurate with respect to trading areas?

A) Trading areas are the most logical control units because they are based largely on the natural flow of goods and services rather than political or economic boundaries
B) A trading area is a geographical region that includes a city plus the surrounding area that serves as a retail or wholesale center
C) Use of trading areas aids sales management in planning and control in that the same salesperson usually calls on wholesalers in a trading area
D) There is an abundance of statistical data on trading areas; thus they are much preferred to counties or states as geographic control units

Question 25

All of the following are advantages of using trading areas as geographical control units except

A) they are representative of customer buying habits and patterns of trade
B) they help management in planning and control
C) statistical information is readily available on each trading area to use in forecasting sales potential
D) they are based on economic considerations

Question 26

All of the following are disadvantages of using trading areas as geographical control units except

A) defining a trading area is a major problem
B) obtaining statistical information to use in forecasting the sales potential in each area is a major problem
C) county market information may not fit the trading area exactly, but it often is the best and most readily available data
D) all the above are disadvantages

Question 27

Developing a salesperson workload analysis requires an estimate of:

A) the number of accounts to be called on and the frequency of the calls
B) the duration or length of each call
C) the travel time
D) all of the above

Question 28

The main objective of conducting an account analysis is to:

A) coordinate selling with other marketing functions
B) identify customers and prospects and determine how much sales potential exists for each account
C) evaluate salesperson preference
D) minimize travel time and improve return on time invested (ROTI)

Question 29

The level of non-selling activities influences the time and effort needed to cover a geographical control unit. Non-selling activities of salespeople include all of the following except

A) preparing for sales calls
B) processing orders
C) servicing accounts after the sale
D) none, since all of the above are non-selling activities

Question 30

Several factors affect the number of accounts reps can call on in each geographic control unit. Which of the following is not an influencing factor:

A) length of time required to call on each account
B) the number of people to be seen during each call
C) the length of waiting time
D) all the above are influencing factors

Question 31

In combining geographical control units into sales territories, the sales manager should have the goal of making sales territories that

A) have roughly equal sales potential
B) require equal sales efforts to achieve the territory's potential
C) will not need to be revised as market conditions change
D) will facilitate assigning the new and less effective salespeople to territories with the highest sales potential to keep them from becoming discouraged

Question 32

As the sales force is one of the most expensive human resource investments for many companies, companies have turned to all except the following programs to increase sales force productivity:

A) sales force automation
B) customer relationship management
C) customer loyalty programs
D) account management programs

Question 33

In assigning sales personnel to territories, sales managers should rank them according to relative ability such as ___________.

A) product knowledge
B) industry knowledge
C) energy level
D) all the above

Question 34

Of the following reasons, when should a firm not consider revising established sales territories?

A) if the original alignment is due to poor territory design
B) if the market changes
C) if the cause is the compensation plan or training program
D) if territory's sales potential and workload are over- or underestimated

Question 35

Sales territories need revision when:

A) a firm is experiencing growth and additional salespeople are needed to be hired
B) territories are too small
C) there is considerable territory jumping by salespeople
D) any of the above happen

Question 36

Sales territories need revision when:

A) a territory may be too small for even a good salesperson to earn an adequate income
B) there are overlapping territories
C) if the market shrinks due to a downturn in sales
D) any of the above happen

Question 37

Which of the following statements is not true about revising sales territories?

A) compensation adjustments may be needed to keep the sales force morale from dropping when sales territories are revised
B) one approach is to guarantee salespeople their previous level of income during the transition period while territories are being revised
C) revision of sales territories is a time-consuming but important task which should be done at least yearly
D) before revisions are made, the sales manager ought to ask for ideas and suggestions from the sales force

Question 38

Sales managers should be aware that sales territory revisions can cause the following problems except:

A) salespeople are reluctant to have their territories divided because that generally means they must hand over accounts they have built up and nurtured, thus causing friction in the sales force
B) revising a territory can lead to another bitterness because another salesperson may be seen as reaping the benefits of their hard work
C) salespeople will not feel alienated and dissatisfied if territories are revised as their income will be increased
D) morale problems will emerge if wide variations in territory potential emerge after the revision process

Question 39

Which of the following statements about territory jumping are not true:

A) it occurs when one salesperson jumps into another salesperson's territory in search of business
B) it is an unethical practice, and it will cause severe problems within the sales force unless dealt with quickly
C) Territory jumping is usually a sign that salespeople are developing their territory satisfactorily, hence leading others to jump
D) it can also indicate that sales potential in one territory is greater than in another

Question 40

Unless quickly halted, territory jumping can often lead to the following conditions among the sales force except:

A) higher costs
B) selling efficiencies
C) bitterness
D) low morale

Question 41

An increasingly important role for sales managers is coaching salespeople on how to be successful self-managers. Some of the most important concepts to teach salespeople in helping them manage their activities include the following except:

A) finding an optimal combination of effectiveness and efficiency
B) setting priorities for objectives and activities
C) calculating the return on time invested
D) all of the above are self-management activities

Question 42

____________ can be viewed as results oriented with a focus on achieving sales goals.

A) efficiency
B) effectiveness
C) return on time invested
D) concentration principle

Question 43

____________ can be viewed as a cost orientation with a focus on making the best possible use of the salesperson's time and efforts.

A) efficiency
B) effectiveness
C) return on time invested
D) concentration principle

Question 44

Return on time invested is a concept that helps salespeople spend their time more profitably with prospects and customers. It can be measure in the following ways except:

A) dollar sales to a customer
B) new assets acquired
C) new customers won
D) profits on a certain product category

Question 45

To determine the return on time invested for different activities it is necessary to keep accurate records on all except the following activities:

A) time spent on non-selling activities
B) time spent on preparing a sales call
C) time spent with making a sales presentation
D) time spent with customers

Question 46

___________ refers to the notion that most of a salesperson's sales, costs, and profits come from a relatively small proportion of customers and products.

A) Parkinson's law
B) concentration principle
C) Peter's principle
D) sales-costs equilibrium principle

Question 47

___________ states that work tends to expand to fill the time allotted for its completion.

A) concentration principle
B) Peter's principle
C) Parkinson's law
D) sales-costs equilibrium principle

Question 48

To succeed in their new roles as sales managers, they will need to perform all the following tasks except:

A) build arms-length, opportunistic relationships with their customers
B) become partners with channel members (wholesalers, retailers) to achieve goals
C) become partners with salespeople to achieve goals
D) develop improved motivational skills

Question 49

Salespeople must be good time managers because this is one of the best ways to improve territory coverage. Some examples of time allocation problems that salespeople will have to deal with include:

A) deciding which accounts to call on
B) dividing time between selling and paperwork
C) allocating time between present customers and prospective customers
D) all the above

Question 50

Which one of the following tasks is not a major activity that must be considered in allocating the salesperson's time?

A) travel
B) waiting
C) lunch
D) face-to-face selling

Question 51

In discussing time and territory management, which of the following statements is erroneous?

A) an activity analysis for several representative days (usually 5-10) reveals how much time the salesperson is currently spending on each task
B) salespeople should work with their sales managers to develop a weekly plan of action
C) about one third or a quarter of a salesperson's time is spent face-to-face selling
D) although computer based interactive models have been used in academic settings, they have yet to be successfully applied to sales force territory management because there are too many diverse variables in selling

Question 52

Which of the following is not one of the many common "time traps" in managing salespeople's time?

A) failure to plan the day's activities
B) making too much use of the telephone to make business calls
C) calling on unqualified prospects
D) inefficiency in handling paperwork

Question 53

Non-selling activities influences are "part and parcel" of time management setting weekly and daily goals. Non-selling activities of salespeople include all of the following except

A) traveling
B) waiting for customers
C) handling administrative work
D) none, since all of the above are non-selling activities

Question 54

All of the following statements about territorial routing of salespeople are correct except which one?

A) probably the greatest advantage of a routing plan is that it can reduce travel time and costs.
B) routing is the activity which formally sets up a pattern for salespeople to follow when making sales calls.
C) routing plans are especially beneficial for new companies or for companies that have just entered a new market.
D) high caliber, creative selling may not be as appropriate for a routing schedule as more routine types of selling.

Question 55

___________ refers to devising a travel plan or pattern to use when making sales calls.

A) sales territory
B) territorial routing
C) effectiveness
D) efficiency

Question 56

A properly designed routing system has all the following advantages except:

A) reduced travel time and selling costs
B) ability to help maximize sales revenues
C) improved territory coverage
D) improved communication between the sales manager and salespersons

Question 57

A specific geographic area that contains present and potential customers and is assigned to a particular salesperson is known as a metropolitan statistical area.

Question 58

Sales territories should be big enough to represent a reasonable workload but small enough to ensure that the salesperson can visit all potential customers as often as needed.

Question 59

Computer databases enable sales managers to access past information and compare it with current performance in each territory.

Question 60

By examining sales performance territory by territory basis, sales managers become overloaded with data analysis and often cannot spot changing market conditions and make needed adjustments in sales tactics.

Question 61

If salespeople are able to help customers launch advertising campaigns, distribute point-of-purchase displays, sell channel partners on cooperative advertising, or perform other work related to sales promotions, the results often are better when work is managed on a territory-by-territory basis rather than for the market as a whole.

Question 62

When sales coverage is far below the sales potential of the market-that is, when there is more than enough business for every salesperson, then it is unnecessary to assign sales territories.

Question 63

Sales territories are necessary even when sales are made primarily on the basis of social contacts or personal friendships.

Question 64

Firms that have adopted a customer relationship management (CRM) perspective see benefits in assigning territories based on customer characteristics instead of geographical characteristics.

Question 65

A directory file produced by Standard and Poor's, Inc., contains basic company data, executive names and titles, corporate linkages, S&P Numbers, organization status, and other marketing information on over 17 million U.S. business establishment locations, including public, private, and government organizations.

Question 66

A trading area is a metropolitan statistical area that has a population of 1 million or more.

Question 67

A geographic region consisting of a city and the surrounding areas which serve as the dominant retail or wholesale center for the region.

Question 68

Trading areas are a logical control unit, since they are based on the natural flow of goods and services rather than on political or economic boundaries.

Question 69

For firms that sell through channel partners, it is inappropriate to use trading areas as a control unit.

Question 70

A salesperson workload analysis refers to an estimate of the time and effort required to cover each geographic control unit.

Question 71

Territory jumping is known to occur when one salesperson jumps into another salesperson's territory in search of lowering sales expenses.

Question 72

Territory jumping is widely considered to be an unethical sales practice.

Question 73

Territory jumping is associated with an increase in moral among salespeople in the sales force.

Question 74

Efficiency describes results-oriented behavior that focuses on achieving sales goals.

Question 75

Effectiveness describes cost-oriented behavior that focuses on making the best possible use of the salesperson's time and efforts.

Question 76

Return on time invested is a financial concept that helps salespeople spend their time more profitably with prospects and customers.

Question 77

Return on time invested is computed by dividing the hours spent achieving the designated return divided by the return received.

Question 78

Parkinson's law is a theory which suggests that work tends to expand to fill the time allotted for its completion.

Question 79

The concentration principle refers to a belief that most of a salesperson's sales, costs, and profits come from a relatively small proportion of customers and products.

Question 80

The sales manager's job is evolving toward being channel manager-overseeing a hybrid sales force operating in diverse electronic and field channels and managing channel partner relationships.