Deck 11: Setting Goals and Managing the Sales Forces Performance

Question 1

The purpose of comparing sales from one salesperson to another or one territory to another is:

A)to punish salespeople who do not achieve at the level to others do
B)to promote salespeople who sell more than others do
C)to determine what sales activities and techniques have the best results
D)to send poorly-performing salespeople to additional training sessions
E)to ask high-performing salespeople to mentor the low-performing salespeople

Answer 1

C

Question 2

All of the following are things that are likely to be tracked as part of a salesperson's goals EXCEPT:

A)number of telephone calls in the last 30 days
B)volume in the 90-day pipeline
C)customer service ratings
D)number of accounts lost
E)the ratio of deals closed to deals proposed

Answer 2

C

Question 3

Goals can serve as benchmarks for salespeople to know how they are doing.Since compensation is tied to performance,the effect of seeing how much they've done and how much they have left to do:

A)discourages them from even trying to meet their goals
B)encourages them to set goals they will probably not be able to meet
C)forces them to revise their goals downward so they can hit them
D)has no effect on their performance
E)motivates them to do their work to earn more

Answer 3

E

Question 4

Goals can be measured by different metrics,and in sales are described as:

A)input goals or output goals
B)internal goals or external goals
C)formal goals or informal goals
D)financial goals or product goals
E)new goals or repeat goals

Question 5

Output-based goals consist of:

A)the number of products a company manufactures
B)the selling results a salesperson is expected to achieve
C)the sales forecasts for each specific account
D)the activities a salesperson performs to contact customers
E)the profit earned from a salesperson's sales

Question 6

Why do most companies not track percentages of customer service satisfaction by salesperson?

A)It would be hurtful to salespeople who do not receive high ratings of satisfaction from their customers.
B)Management is not interested in customer service satisfaction.
C)"Customer service" is such a vague term that it is impossible to assign values to the experience.
D)It is extremely difficult to get accurate customer service feedback,as most customers will only comment if service is bad.
E)Companies do not want salespeople performing customer service,as it takes time away from input-based goal behaviors.

Question 7

All of the following are things that sales goals do for an organization EXCEPT:

A)motivate the sales force
B)focus the selling efforts of the sales force
C)assess ROI on products and services
D)calculate quarterly commissions earned by salespeople
E)compare results of salespeople in different territories and regions

Question 8

What is the relationship between the sales department and other departments in an organization?

A)The relationship is friendly,because all the employees work together and share tasks in an "all hands on deck" arrangement.
B)The relationship is reliant,because the other departments make the products and provide the back-end support that allows the sales department to sell,and the sales department brings in the revenue that supports the entire organization.
C)The relationship is neutral,because each department does its work the best it can without worrying about what other departments do or don't do.
D)The relationship is unsettled,because the sales department praises the other departments in public but criticizes them in private.
E)The relationship is antagonistic,because the other departments resent the sales department for doing such little substantive work and yet earning so much money.

Question 9

Acceptable expense quotas are usually calculated as:

A)an aggregate across the whole department
B)a separate line for each account
C)a write-off in the company's expense line
D)an offset for the salesperson's gross salary
E)a percentage of a salesperson's sales

Question 10

A disadvantage of tracking only output-based goals is that:

A)those goals don't take the profit margin on the product into consideration
B)some customers may accept a proposal but may not pay the invoice for several months
C)measuring only sale volume encourages salespeople to neglect customer service and other activities that don't lead directly to sales
D)calls placed and presentations made is a truer indicator of a salesperson's performance
E)it is difficult to figure out the weighting if the goals are so similar

Question 11

A combination goal sheet for a sales representative shows:

A)different goals for the salesperson to hit,including total volume and other metrics
B)the breakdown of types of accounts the salesperson is supposed to close each month
C)the goals for the entire department for the goal period,broken down by salesperson
D)the list of all the salesperson's customers at various stages in the pipeline
E)the total dollar value of all the accounts,both new and repeat,that a salesperson has closed in the previous period

Question 12

A pipeline analysis measures:

A)a stream of customers at different points in the sales process
B)the number of customers who accept a proposal each month
C)the number of customers who pay invoices each month
D)the amount of new business a salesperson closes each month
E)the amount of repeat business a salesperson closes each month

Question 13

How does a combination goal sheet measure the impact of all the goals in relation to each other,so total volume isn't the only metric considered?

A)A formula involving dividing the profit by the total volume of sales equals out the numbers.
B)Management assigns a different weight to each activity and applies a formula so that one rating number summarizes the importance of all the activities.
C)Customers' service ratings serve as a counterbalance between sales volume and customer acquisition figures.
D)Salespeople look at their own strengths and weaknesses and assign a weight for each area,striking a balance between rewarding the skills they are good at and encouraging the skills they need to develop further.
E)Total sales volume is the most important number considered,so a goals sheet does not need to measure other factors except as secondary factors.

Question 14

What makes reaching sales goals different from reaching goals in other job positions?

A)Sales goals make revenues for the entire company,whereas goals for other job positions only affect the company in part.
B)Sales goals rely on interacting with customers,whereas goals for other job positions are dependent only on the effort of the employee.
C)Sales goals change monthly,quarterly,or yearly,whereas goals for other job positions are consistent.
D)Sales goals vary from salesperson to salesperson,whereas goals for other job positions are the same across that job function.
E)Sales goals rely on support from sales managers,whereas goals for other job positions are achievable without support from management.

Question 15

It is important to be able to assess the return on a company's investment in products or services:

A)so that salespeople can push the products that are not selling well
B)so the company does not end up being audited
C)so management's pet projects do not cost the company money
D)so the company can direct salespeople to sell more of the products or services that have the highest return
E)so the salespeople do not focus exclusively on products that have a high return on investment

Question 16

What makes it challenging for transnational companies to set similar goals for sales in different countries?

A)It is difficult to calculate the goals in terms of the different currencies of each country.
B)Different countries have different concepts of the idea and flexibility of sales goals.
C)Different products sell better in some countries than in others.
D)Language barriers lead to cultural misunderstandings where goals are concerned.
E)The importance of money instead of relationships varies from country to country.

Question 17

In order to ensure that salespeople do activities that do not directly contribute to either input or output goals,such as calling customers to provide service,managers should:

A)turn those activities into input behaviors
B)turn those activities into output behaviors
C)give bonuses for the salespeople with the higher number of those activities each month
D)penalize salespeople financially for not completing a minimum number of these activities each month
E)codify these activities as part of the goal system salespeople are measured on

Question 18

Another name for sales goal is:

A)output goal
B)input goal
C)quota
D)expense
E)requisite

Question 19

Making calls,giving sales presentations,and following up with potential buyers are all examples of:

A)pipeline points
B)KSAs
C)revenue streams
D)input-based goal behaviors
E)output-based goal behaviors

Question 20

Different goals for different products or markets help salespeople to:

A)prioritize between selling and providing customer service
B)create a mix of products that customers want and that customers don't want
C)send their less profitable customers to salespeople junior to them
D)choose the products they would like to sell and let different salespeople sell the others
E)focus on the most profitable products or customers they service

Question 21

How do organizations determine what the ideal length of time a goal should be for?

A)They take into consideration the length of the sales cycle and any special issues having to do with customers' buying seasons.
B)Most companies assign goals in quarterly increments.
C)Most companies break down yearly goals into monthly goals,which are doable.
D)A sales meeting at the beginning of the fiscal year elicits suggestions from the entire sales department,which then votes on the length of the goal periods.
E)Management generally examines holiday schedules to set goals to end during periods leading right up to holidays.

Question 22

Tracking all the metrics possible about a salesperson's activity would be overwhelming for managers.What is considered the ideal number of metrics to track?

A)3 or fewer
B)fewer than 5
C)fewer than 9
D)fewer than 15
E)This isn't a problem,as computers are able to track and display this information for sales managers.

Question 23

A best practice all organizations should follow when writing goals is to make them:

A)SMART goals
B)KSA goals
C)structured goals
D)semi-structured goals
E)output goals

Question 24

Most companies adjust their sales goals with what frequency?

A)every month
B)every six weeks
C)every quarter
D)every year
E)every two years

Question 25

Salespeople will be more motivated to work toward their sales goals if they have some input into the goal.The one disadvantage of giving salespeople input into their own goals is:

A)that they do not have the amount of experience with goal-setting that management does
B)that the salesperson may be tempted to lobby for a number that is too low so he or she can be sure to reach the goal
C)that they may be tempted to inflate their goal numbers to look good for their managers
D)that the goals may not be flexible,so the salespeople really won't have any input into the decision
E)that the manager will have to negotiate over something that could cause negative feelings

Question 26

When goals are set incorrectly,they can set the stage for a salesperson to:

A)quit sales entirely
B)engage in unethical behavior
C)become highly motivated
D)hit new high figures for the time period
E)blame external factors for not meeting the goals

Question 27

If a salesperson does not achieve his or her goals,the salesperson's manager should determine why the rep didn't hit the goals and:

A)fire the salesperson
B)write up a disciplinary warning to be filed with human resources
C)help the salesperson do more activities that lead to sales
D)shift precious quarter's sales to the current period so the salesperson collects the expected commission
E)bring in upper management to review the salesperson's commitment to the company

Question 28

Research findings demonstrate that salespeople put forth more effort to reach goals that are:

A)external
B)self-determined
C)general
D)specific
E)unchanging

Question 29

While there may be many reasons salespeople do not make their sales goals,executives and upper-level management usually assume the goals are not met because:

A)customers do not like the product
B)salespeople and managers do not have the right skills
C)competitors have entered the market
D)the economy has changed
E)the shipping department delayed orders

Question 30

A company that sets an actual goal and then names an amount that is slightly less than the actual goal is naming

A)a recourse goal
B)an accepted goal
C)a fallback goal
D)a threshold goal
E)a stretch goal

Question 31

Interestingly enough,studies show that difficult (but not too difficult)goals elicit:

A)concern from management that salespeople will not achieve the goals
B)satisfaction from management that quotas will increase each year
C)impatience from managers who will have to help salespeople achieve the goals
D)detachment from salespeople,who often give up when the goals are too high
E)high amounts of effort from salespeople

Question 32

Companies that sell products that have long sales cycles often credit salespeople with the amount of the sale:

A)in percentages; part when the sale is made and part when the sale is paid for
B)in six equal chunks,starting the week after the product is delivered
C)when the order occurs
D)when the payment comes in
E)90 days after the product is delivered

Question 33

How can companies prevent salespeople and sales managers from manipulating the system to artificially inflate sales?

A)Companies can add in safeguards that no sales can be entered into the ordering system without sign-off from two managers.
B)Companies can prevent anyone but a central ordering clerk from entering any sales into the system.
C)There is no way to prevent manipulating the system completely,as unethical sales representatives and managers will be able to find loopholes if they are motivated to.
D)Salespeople should be asked to sign an affidavit with each order submitted that the order is real and not falsified.
E)Salespeople who falsify sales should be liable for legal penalties to both the company and the defrauded customers.

Question 34

Well-set goals cause all of the following things to happen EXCEPT:

A)salespeople focus on behavior relevant to hitting the goals
B)salespeople are energized to work toward the goals
C)salespeople count previous quarters' sales toward the current goals
D)salespeople are persistent in working toward the goals
E)salespeople work harder to solve problems

Question 35

If a company discovers that its marketing research was flawed,that a competitor is either entering or leaving the market,or there is a change in market conditions,what would be an appropriate response in terms of setting goals that are reasonable?

A)The company should adjust its goals for that week.
B)The company should adjust its sales goals for that month.
C)The company should adjust its sales goals for that quarter.
D)The company should adjust its sales goals for that year.
E)The company should keep its sales goals steady.

Question 36

A company should set goals for salespeople:

A)at every performance review
B)with the intention of boosting the confidence of the salespeople
C)so the salespeople cannot set goals for themselves
D)that are slightly out of reach,so that salespeople will always be working under pressure
E)with the expectation that salespeople can meet them with the proper training and support

Question 37

All of the following are reasons that a salesperson has no control over that might cause the salesperson not to meet his or her goals EXCEPT:

A)the sales projections were based on bad information
B)price of the product increased so buyers placed fewer orders
C)manufacturing or distribution problems
D)the salesperson did not reach the decision-makers at key accounts
E)competing products or companies entering the marketplace

Question 38

All of the following actions by managers will help salespeople achieve their goals EXCEPT:

A)penalizing salespeople for reaching threshold goals
B)keep the number of goals reasonable
C)give feedback as frequently as possible
D)make confidence in salespeople explicit
E)indicate how performance will be tracked and rewarded

Question 39

Managers who want to help their salespeople achieve the goals set for them will work to create goals that are:

A)difficult to achieve,easy to understand,and have no deadlines
B)difficult to achieve,easy to understand,and have precise deadlines
C)easy to achieve,easy to understand,and have precise deadlines
D)easy to achieve,easy to understand,and have no deadlines
E)easy to achieve,difficult to understand,and have no deadlines

Question 40

Most organizations reward salespeople for:

A)anything they manage to sell
B)hitting actual goals only
C)hitting actual and reach goals,but not threshold goals
D)hitting reach goals only
E)hitting threshold,actual,and reach goals

Question 41

Goals serve the same role and function in all the offices of the same company,even across countries and continents.

Question 42

A threshold goal is a goal that's a smaller percentage of the actual goal,while a stretch goal surpasses the actual goal.

Question 43

The two types of sales goals are input-based goals and output-based goals.

Question 44

Discuss the difficulties of measuring customer service performance by salespeople.

Question 45

Is it appropriate for companies to reward a salesperson for almost meeting a sales goal? Why or why not?

Question 46

What process should a sales manager follow when one of their salespeople does not hit their goals?

Question 47

What are some examples of input-based goals? What are some examples of output goals?

Question 48

Explain the idea of a combination goal sheet.What function do the weights serve?

Question 49

What is a management perception about why salespeople don't hit their goals? What are some other reasons they might not hit the goals?

Question 50

Goals that are set at levels that are inappropriately high encourage salespeople and sales managers to act unethically.

Question 51

Goals that are general tend to motivate salespeople to work harder than do those that are specific.

Question 52

It is appropriate to alter sales goals if market conditions change.

Question 53

Calling prospects and doing product demonstrations are examples of output-based goals.

Question 54

Why is it important to track both input-based goals and output goals?

Question 55

Why is it important for management to set goals for salespeople?

Question 56

Sales goals are particularly important for salespeople,because the sales department supports the entire organization financially.

Question 57

What are some reasons a company might alter its sales goals in the middle of a sales cycle?

Question 58

Discuss the advantages and disadvantages of having salespeople help to set their own goals..

Question 59

Sales goals help to motivate the sales force,focus their efforts,and enforce penalties for poor performance.,

Question 60

When assessing salesperson performance,the only number that matters is the total sales volume.

Question 61

Discuss the types of goals that tend to elicit the highest effort from salespeople.

Question 62

What three things should managers do when setting goals? What happens if one or more of these aspects is forgotten?

Question 63

What can happen when goals are set that are inappropriately high?

Question 64

Why is frequent feedback important as salespeople work toward their goals?

Question 65

What are the four ways in which setting goals can impact salespeople's performance?