Question 1

A definition for sales organization effectiveness would be
A) an overall evaluation of how well each salesperson performed in his/her situation.
B) an overall evaluation of how well the sales organization did in achieving its goals and objectives.
C) an overall evaluation of how well the firm did in achieving its sales goals and objectives.
D) an overall evaluation of how well the sales organization did in developing new accounts.
E) a comprehensive approach toward evaluating the performance of the managerial component of the firm.

Accepted Answer

Sales organization effectiveness refers to how well the sales organization as a whole achieved its goals and objectives. While individual salesperson performance may be a factor in evaluating effectiveness, it is not the sole definition or focus of the term. Option C is similar to option B, but specifies that the evaluation is solely based on sales goals and objectives rather than overall goals and objectives of the firm. Option D is too specific and does not encompass all aspects of sales organization effectiveness. Option E is incorrect as it only evaluates the performance of the managerial component of the firm, not the overall sales organization.

Question 2

Sales organization effectiveness evaluations generally result in
A) recommendations that are tactical in nature, such as specific actions designed to improve the performance of an individual salesperson.
B) suggestions to cut back staff positions.
C) the implementation of new cost containment procedures.
D) general strategic or policy changes.
E) a complete restructuring of the organization.

Accepted Answer

Sales organization effectiveness evaluations are typically focused on assessing whether or not the sales organization is aligned with the overall business strategy and goals. As such, the recommendations resulting from these evaluations are typically strategic or policy changes aimed at improving overall sales performance and effectiveness. A, B, C, and E may be relevant in certain situations, but are not generally the primary focus of these types of evaluations.

Question 3

A sales organization audit can best be defined as
A) a systematic and diagnostic tool that is used to determine the adequacy of a firm's advertising expenditures.
B) a prescriptive device that is generally used in the redesign of territories or districts.
C) a framework that can be used to assess salespeople for promotion potential.
D) a tool that is used by all organizations to help them achieve their goals.
E) a comprehensive, systematic, diagnostic and prescriptive tool used to assess the adequacy of a firm's sales management process.

Accepted Answer

A sales organization audit is a comprehensive, systematic, diagnostic and prescriptive tool used to assess the adequacy of a firm's sales management process. It involves an evaluation of various elements such as the sales organization structure, sales force management, sales compensation, sales training, sales strategy, and sales performance measurement. The purpose of the audit is to identify strengths and weaknesses in the sales organization and to recommend improvements that will help the company meet its sales objectives. Option A, B, C and D are incorrect as they do not define sales organization audit accurately.

Question 4

Which of the following statements regarding the sales organization audit is false?
A) It is an expensive and time-consuming process.
B) It should be conducted by someone within the sales organization.
C) It generates diagnostic information that can help management correct problems in early stages or eliminate potential problems before they become serious.
D) It should be performed on some type of regular basis.
E) Its purpose is to make a systematic and comprehensive investigation to identify problems, determine their causes, and take the necessary corrective action.

Accepted Answer

It is not recommended for the sales organization audit to be conducted by someone within the sales organization, as they may have a bias or conflict of interest. It should be conducted by an external auditor or consultant.

Question 5

Which of the following is not one of the four major areas covered by the sales organization audit framework?
A) Sales management evaluation
B) Sales organization history
C) Sales organization environment
D) Sales management functions
E) Sales organization planning system

Accepted Answer

The four major areas covered by the sales organization audit framework are sales management evaluation, sales organization environment, sales management functions, and sales organization planning system. Sales organization history is not one of the major areas covered.

Question 6

Extraorganizational factors including technological, political, legal, and economic-demographic factors are considered in this area of the sales organization audit framework:
A) sales-management evaluation.
B) sales-organization strategies.
C) sales-organization environment.
D) sales-management functions.
E) sales-organization planning system.

Accepted Answer

Extraorganizational factors such as technological advancements, political regulations, legal environment, and economic-demographic factors are external factors that affect the sales organization's environment. This can include changes in customer demand or preferences, market saturation, industry innovation, or geopolitical shifts. Therefore, sales organizations must consider these factors to evaluate the impact they have on their sales strategies and operations, which is evaluated in the sales-organization environment.

Question 7

Recruitment, selection, and sales training are examples of factors considered in this area of the sales organization audit framework:
A) sales-management evaluation.
B) sales-organization strategies.
C) sales-organization environment.
D) sales-management functions.
E) sales-organization planning system.

Accepted Answer

Recruitment, selection, and sales training are all part of sales-management functions, which encompass the activities and processes directly involved in managing the sales force, including hiring, training, and overseeing sales personnel.

Question 8

The adequacy of sales managers and management practices is assessed under this area of the sales organization audit framework:
A) sales-management evaluation.
B) sales-organization strategies.
C) sales-organization environment.
D) sales-management functions.
E) sales-organization planning system.

Accepted Answer

The adequacy of sales managers and management practices is specifically evaluated in the sales-management evaluation area of the sales organization audit framework.

Question 9

Intraorganizational factors such as company organization are considered in this area of the sales organization audit framework:
A) sales-management evaluation.
B) sales-organization strategies.
C) sales-organization environment.
D) sales-management functions.
E) sales-organization planning system.

Accepted Answer

The sales-organization environment category of the audit framework specifically includes intraorganizational factors such as company structure and culture. Therefore, the best choice is C.

Question 10

Which of the following is not one of the four types of analyses outlined in the text as a method for analyzing sales organization effectiveness?
A) cost analysis.
B) profitability analysis.
C) productivity analysis.
D) sales analysis.
E) market-share analysis.

Accepted Answer

The four types of analyses typically outlined for analyzing sales organization effectiveness include cost analysis, profitability analysis, productivity analysis, and sales analysis. Market-share analysis, while important for strategic planning and competitive analysis, is not specifically listed among the core methods for evaluating the effectiveness of a sales organization in the context provided.

Question 11

The most often-used sales definition defines a sale as
A) paid order.
B) shipped order.
C) placed order.
D) received order.
E) delivered order.

Accepted Answer

The answer of The most often-used sales definition defines a...

Question 12

According to the text, which of the following is one of the methods used most often to measure salesforce effectiveness?
A) return on investment of sales resources
B) sales results versus goal
C) sales employee feedback
D) cost of sales
E) market share

Accepted Answer

Sales results versus goal is a common method used to measure salesforce effectiveness because it directly compares the outcomes achieved by the sales team against the targets or objectives that were set for them. This method provides a clear and straightforward way to assess how well the salesforce is performing in terms of meeting or exceeding sales goals.

Question 13

In a sales analysis, which of the following comparisons would not be made?
A) Comparisons with forecasts
B) Comparisons with previous period
C) Comparisons between actual and budgeted costs
D) Comparisons with industry/competitors
E) Comparisons within the sales organization

Accepted Answer

Comparisons between actual and budgeted costs are related to expense analysis, not sales analysis. Therefore, it would not be relevant to compare with sales analysis. The other options (A, B, D, and E) are all relevant and common comparisons in sales analysis.

Question 14

An evaluation of sales results throughout the sales organization from a top-down perspective is a
A) hierarchical sales analysis.
B) scaled sales analysis.
C) stepladder sales analysis.
D) pyramid sales analysis.
E) single stage sales analysis.

Accepted Answer

A top-down perspective means starting with the highest level of management and evaluating down to individual sales reps. This approach is known as hierarchical sales analysis. The other choices do not accurately describe this type of analysis.

Question 15

Which of the following statements regarding sales organization effectiveness is true?
A) Most firms conduct annual assessments of cost, profit contribution, net profit, or return on assets.
B) Sales analyses are performed only at the lowest level of the sales organization, typically by territory.
C) The one summary measure of sales organization effectiveness is a productivity analysis.
D) Sales analyses can be conducted in several ways, including by total sales or by sales to specific customers.
E) Most firms employ the same type of sales analysis, an analysis of sales of specific products.

Accepted Answer

Sales analyses can be conducted in several ways, including by total sales or by sales to specific customers. This statement is true as it acknowledges the flexibility in conducting sales analysis, which can be customized according to the firm's needs and goals. Option A is incorrect because while firms may conduct annual assessments, sales organization effectiveness can be evaluated on a more frequent basis. Option B is incorrect as sales analyses can be conducted at different levels of the sales organization, depending on the scope and purpose of the analysis. Option C is incorrect as productivity analysis is one way of measuring sales organization effectiveness, but it is not the only summary measure. Option E is incorrect as firms may employ different types of sales analysis, depending on the factors being evaluated.

Question 16

When using a top-down perspective in sales analysis, the emphasis is on identifying potential problem areas at each level and then
A) using analysis at the next highest level to pinpoint the specific problem.
B) having that level's sales management analyze the problem and provide an explanation.
C) using analysis at lower levels to pinpoint the specific problems.
D) analyzing what impact that problem might have on the next level's performance.
E) attempting to prevent these problems from occurring through effective sales management.

Accepted Answer

When using a top-down perspective in sales analysis, the emphasis is on identifying potential problem areas at each level. To pinpoint specific problems, it is necessary to use analysis at lower levels. This allows for a more detailed investigation and understanding of the issues that may exist. Ultimately, this information can be used to identify solutions and prevent these problems from occurring through effective sales management.

Question 17

A __________ represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy.
A) sales forecast
B) sales quota
C) market forecast
D) industry forecast
E) sales budget

Accepted Answer

A sales forecast represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy. A sales quota is a specific sales goal set for salespeople and is typically based on historical sales data and market trends. A market forecast predicts future demand for a specific product or service overall in a given industry. An industry forecast predicts trends and overall performance for an entire industry. A sales budget outlines the expected expenses and revenues for a given period based on the sales forecast and other factors.

Question 18

What is the effectiveness index of a salesperson whose previous year's sales totaled $6,000 and whose sales quota for that period was $5,000?
A) 83
B) 120
C) 97
D) 106
E) 69

Accepted Answer

The effectiveness index is calculated by dividing the actual sales by the sales quota and then multiplying by 100 to get a percentage. So, for a salesperson with $6,000 in sales against a $5,000 quota, the calculation is ($6,000 / $5,000) * 100 = 120.

Question 19

What is the effectiveness index of a salesperson whose previous year's sales totaled $7,000 and whose sales quota for that period was $8,000?
A) 88
B) 114
C) 97
D) 106
E) 72

Accepted Answer

The effectiveness index is calculated by dividing the actual sales by the sales quota and then multiplying by 100 to get a percentage. So, for a salesperson with $7,000 in sales against a quota of $8,000, the calculation is ($7,000 / $8,000) * 100 = 87.5, which rounds to 88.

Question 20

The sales growth experienced by different organizational levels can be determined by
A) a comparison of actual sales results to those achieved by competitors.
B) a comparison of actual sales results to sales forecasts.
C) a comparison of actual sales results to sales quotas.
D) a comparison of actual sales results to previous periods' sales.
E) a comparison of the sales effectiveness index of the different organization levels.

Accepted Answer

The best way to determine the sales growth experienced by different organizational levels is by comparing the actual sales results to previous periods' sales. This will provide insight into whether sales are increasing or decreasing for each level of the organization over time. Comparing sales to competitors, sales forecasts, or sales quotas may provide additional information, but it is not the best way to determine sales growth for organizational levels. The sales effectiveness index would also provide valuable information, but it is not mentioned as an available option.

Quiz 8: Evaluating the Effectiveness of the Organization

A definition for sales organization effectiveness would be

Sales organization effectiveness evaluations generally result in

A sales organization audit can best be defined as

Which of the following statements regarding the sales organization audit is false?

Which of the following is not one of the four major areas covered by the sales organization audit framework?

Extraorganizational factors including technological, political, legal, and economic-demographic factors are considered in this area of the sales organization audit framework:

Recruitment, selection, and sales training are examples of factors considered in this area of the sales organization audit framework:

The adequacy of sales managers and management practices is assessed under this area of the sales organization audit framework:

Intraorganizational factors such as company organization are considered in this area of the sales organization audit framework:

Which of the following is not one of the four types of analyses outlined in the text as a method for analyzing sales organization effectiveness?

The most often-used sales definition defines a sale as

According to the text, which of the following is one of the methods used most often to measure salesforce effectiveness?

In a sales analysis, which of the following comparisons would not be made?

An evaluation of sales results throughout the sales organization from a top-down perspective is a

Which of the following statements regarding sales organization effectiveness is true?

When using a top-down perspective in sales analysis, the emphasis is on identifying potential problem areas at each level and then

A __________ represents an expected level of firm sales for defined products, markets, and time periods and for a specified strategy.

What is the effectiveness index of a salesperson whose previous year's sales totaled $6,000 and whose sales quota for that period was $5,000?

What is the effectiveness index of a salesperson whose previous year's sales totaled $7,000 and whose sales quota for that period was $8,000?

The sales growth experienced by different organizational levels can be determined by