Deck 16: Managing Within Your Company

Question 1

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.

Answer 1

True

Question 2

Rather than complain about poor marketing programs,proactive salespeople and sales managers prefer to participate in marketing decisions and keep communication lines open.

Answer 2

True

Question 3

Sales acts as the eyes and ears of marketing,while marketing develops the promotions and products that salespeople sell.

Answer 3

True

Question 4

SPIN and active listening techniques are used to find out and understand the personal and professional needs of an internal customer.

Question 5

When a conflict arises between a salesperson and an internal employee,personalizing the conflict makes it easier to resolve.

Question 6

Marketing and sales are poorly coordinated because their functions are not related to each other.

Question 7

The functions of order entry,billing,credit,and employee compensation require each company to have a customer service department.

Question 8

Salespeople can help customer service by setting very high expectations for product performance with customers so that customer service representatives receive extended service calls.

Question 9

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.

Question 10

Understanding the needs of the credit department and assisting it in collecting payments can better position a salesperson to help customers receive credit later.

Question 11

Salespeople should develop relationships with manufacturing so they can make accurate promises and guarantees to customers.

Question 12

The field sales manager is the leader at the top of the sales force hierarchy.

Question 13

Internal partnerships should be dedicated to satisfying customers' needs.

Question 14

Few jobs require the boundary-spanning coordination and management skill needed to effectively perform a sales job.

Question 15

Companies that emphasize service to customers or anticipate long-term customer relationships typically use commission plans.

Question 16

Sales not only generates leads for salespeople but also supports marketing activities by sourcing products and preparing proposals.

Question 17

A sales quota is the minimum sales revenue necessary for acceptable performance.

Question 18

When selling internally,salespeople should use arguments that adequately address the internal customer's needs.

Question 19

Salespeople only sell a company,its products,and its services to customers,and they need not sell their customers' needs to their companies.

Question 20

Sales executives determine the size and organization of the sales force,develop annual and long-range plans,and monitor and control sales efforts.

Question 21

Which of the following corporate areas is important to salespeople?

A) Marketing
B) Manufacturing
C) Administration
D) Shipping
E) All of these

Question 22

House accounts are handled by field sales managers in addition to their regular duties.

Question 23

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.

Question 24

Salespeople typically report directly to a sales executive.

Question 25

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.

A) Sales quota
B) Revenue quota
C) Activity quota
D) Point quota
E) Gross margin quota

Question 26

_____ 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.

A) Activity quotas
B) Revenue quotas
C) Gross margin quotas
D) Sales commission rates
E) Sales quotas

Question 27

Ethical behavior not only applies to how salespeople treat customers but also applies to how employers treat salespeople.

Question 28

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.

Question 29

Straight commission plans offer the greatest flexibility for motivating and controlling the activities of salespeople.

Question 30

Which of the following statements about forecasting in global markets is true?

A) The same forecasting techniques that work in the United States work around the world.
B) Salespeople are especially important to the forecasting process when an executive is attempting to forecast international sales.
C) For international marketing forecasts,the top executives rather than the salespeople can provide the most accurate numbers.
D) In the bottom-up forecasting method used in international sales,little input is taken from the salespeople.
E) Computer simulations produce the most reliable sales forecasts for selling in international markets.

Question 31

Why is understanding quotas important to salespeople?

A) Salespeople are responsible for maximizing their individual quotas.
B) Ultimately,it is a salesperson's responsibility to manage territorial quotas.
C) Salespeople are primarily responsible for making expense quotas.
D) Salespeople are responsible for setting up a balanced control system that regulates sales quotas.
E) Performance relative to quota is evaluated by management.

Question 32

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.

A) cumulative
B) geographic
C) gross margin quota
D) profit quota
E) bottom-up

Question 33

In an extension of team selling,multilevel selling,members at various levels of a sales organization call on their counterparts in a buying organization.

Question 34

Field sales managers are responsible for evaluating the performance of their salespeople.

Question 35

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?

A) Marketing
B) Manufacturing
C) Administration
D) Shipping
E) Customers service

Question 36

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.

A) Activity quota
B) Revenue quota
C) Profit quota
D) Point quota
E) Sales quota

Question 37

Identify one of the most important functions of a sales force.

A) Drafting an expense budget
B) Determining the mission statement of the company
C) Separating the activities of the product management team and the operations team in the company
D) Increasing the skill sets of the customers associated with the company
E) Carrying the customers' voice across the organization

Question 38

Large customers are called key accounts.

Question 39

Under a bonus plan,salespeople receive a lump-sum payment for a certain level of performance over a specified time.

Question 40

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:

A) key account.
B) sales quota.
C) revenue quota.
D) sales commission rate.
E) commission base.

Question 41

Money paid to a straight commission salesperson against future earnings,which guarantees a stable cash flow,is called a:

A) quota.
B) salary.
C) draw.
D) bonus.
E) commission base.

Question 42

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:

A) straight salary base.
B) draw.
C) commission base.
D) commission rate.
E) bonus point.

Question 43

Which of the following is a major disadvantage associated with a combination compensation plan?

A) Its inability to be used as a motivation tool
B) Its complexity
C) Its inability to include a draw
D) Its lack of flexibility in the context of motivating salespeople
E) Its lack of flexibility in the context of controlling the activities of salespeople

Question 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.

A) A commission
B) A bonus
C) A kickback
D) A gratuity
E) A spiff

Question 45

Which of the following is an advantage of a straight commission plan?

A) It provides more nonfinancial kickbacks for a salesperson to work hard.
B) It ties a salesperson's compensation directly to his or her performance.
C) It encourages employees to take up activities that do not directly lead to sales.
D) Salespeople on straight commission have immense loyalty toward their companies.
E) Salespeople on straight commission are highly willing to monitor customer service programs.

Question 46

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:

A) a salary plus bonus.
B) a straight commission.
C) a salary plus commission.
D) a commission plus bonus.
E) a straight salary.

Question 47

A(n)_____ is incentive pay for overall performance in one or more areas.

A) sales quota
B) bonus
C) salary
D) gratuity
E) activity quota

Question 48

A _____ plan typically pays a certain amount per sale,and the plan includes a base and a rate but does not include a salary.

A) fixed pay
B) bonus
C) straight commission
D) straight salary
E) quota

Question 49

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 _____.

A) push money
B) a stipend
C) a kickback
D) a commission
E) lubrication

Question 50

Companies that do not emphasize service to customers or do not anticipate long-term customer relationships typically use a _____ plan.

A) bonus
B) point
C) straight salary
D) combination
E) straight commission

Question 51

Which of the following is an advantage of a company using combination plans to provide incentives for its salespeople?

A) The management is able to motivate and control the activities of its salespeople with greater flexibility than a commission plan.
B) The management is able to emphasize that its sales force needs to concentrate on getting new and commissionable sales.
C) The management is able to tie a salesperson's compensation directly to his or her performance.
D) The management and the salespeople are able to engage in transactional selling relationships.
E) The management is able to include many part-timers in the sales force.

Question 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:

A) straight salary.
B) draw.
C) commission base.
D) commission rate.
E) bonus.

Question 53

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:

A) a gratuity.
B) a stipend.
C) a fixed pay.
D) incentive pay.
E) a salary.

Question 54

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?

A) Annual spend
B) A kickback
C) Push money
D) A commission base
E) A commission rate

Question 55

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:

A) sales quota.
B) activity quota.
C) draw.
D) bonus.
E) straight salary.

Question 56

Straight salary plans are typically used when:

A) advertising is more important to a sale than the efforts of the salesperson.
B) a team of salespeople is involved in a sale.
C) a sale requires a long period of negotiation.
D) individual results of sales team members cannot be measured.
E) any of these situations arises.

Question 57

_____ is the amount of money paid to a salesperson at regular intervals regardless of his or her performance.

A) Gratuity
B) Bonus
C) Incentive
D) Commission
E) Salary

Question 58

A commission plan is likely to be used when:

A) a sales force includes many part-timers.
B) the earnings of part-time salespeople are required to be tied to their performance.
C) a company does not emphasize service to customers.
D) a company does not anticipate long-term customer relationships.
E) any of these situations arises.

Question 59

A salesperson who receives a fixed amount of money for working during a specified time is compensated using the _____ method.

A) salary plus bonus
B) straight commission
C) salary plus commission
D) commission plus bonus
E) straight salary

Question 60

What is the easiest method to evaluate the performance of salespeople?

A) Measuring customer service levels
B) Measuring product knowledge
C) Measuring total sales
D) Determining how quickly management requests for information are answered
E) Measuring how aware each salesperson is about competition and business conditions

Question 61

Which of the following is an example of an outbound salesperson?

A) Laverne responds to a customer who called with a billing complaint.
B) Annette uses her telephone to solicit new business from a list of prospects.
C) Orlando calls a company's toll-free number to complain about his malfunctioning lawn mower.
D) Millie,the CEO of her company,handles two house accounts.
E) Morris takes a telephone order for a medium pizza.

Question 62

GEC Inc.is the largest multinational company in New Mexico City.It caters to a wide range of consumers.It has a sales force that sells electric transformers to electric utility companies and another that sells electrical safety equipment to food and beverages companies.Identify the type of salespeople working with the company.

A) Product specialists
B) Telemarketing representatives
C) Field salespeople
D) Inside salespeople
E) Account specialists

Question 63

Troy is a telemarketer who works directly with Nadine,a sales rep who works on site.Together they develop strategies for handling accounts and addressing customer concerns.Troy is:

A) a missionary salesperson.
B) a product specialist.
C) a field support representative.
D) an outside salesperson.
E) none of these.

Question 64

Candace was distressed to discover her company had paid several bribes to get a major contract.When she voiced her concerns to the management,she was told to keep her mouth shut if she wanted to keep her job.After several other attempts to stop the unethical practices,Candace gave the evidence she had of the corporation paying bribes to a local television station.This action of Candace is called:

A) data mining.
B) direct denial.
C) blowing the whistle.
D) cross-selling.
E) rejecting the open-door policy.

Question 65

How does a house account differ from other types of accounts?

A) A house account is always unprofitable.
B) A house account is usually too small for a salesperson's attention.
C) No commission is paid on sales to a house account.
D) A house account is served by the firm's telemarketing center.
E) Commissions are split among all the salespeople who service a house account's various locations.

Question 66

Which of the following is the area with the most common employee concerns?

A) Territory allocation
B) Promotion policies
C) Quota assignments
D) Compensation
E) Recruitment policies

Question 67

Which of the following salespersons best exemplifies a geographic salesperson?

A) Charles developing new sales accounts for his company's washing machines in the United States
B) Edward selling frozen-food products to Marley Food Company,which runs fast-food joints across the American continent
C) Clare selling beauty products to all the stores of Femina Boutique in Malaysia
D) Ben selling tubeless tires,Presta valve adapters,and their after-sales services in Memphis
E) William selling emergency power systems and their after-sales services to Fabon Textile branches in New Jersey and Texas

Question 68

Identify a true statement about customer service reps (CSRs).

A) They are salespeople who make phone calls to customers.
B) They are salespeople who specialize by types of products.
C) They are salespeople who have been delegated the responsibility of purchasing raw materials.
D) They are salespeople who handle customer concerns.
E) They are telemarketers who work with field salespeople to sell goods to customers.

Question 69

Which of the following is an example of an inbound salesperson?

A) Bettina makes cold calls for her field sales representative.
B) Marjorie is a telemarketer who sells aluminum siding to key accounts.
C) Al calls to see if the Yelverton family wants to renew its subscription to the Nashville Tennessean.
D) Burt receives a phone call from a customer in BellSouth who wants to check the availability of a particular watch.
E) Tracey sits at the customer service section and provides product information to her clients.

Question 70

When Wallace made a commission that was greater than the salary of his company's senior vice president,he was pleased with his accomplishments.He was not so happy when the company told him that there was a _____ and that he would receive only $50,000 in commissions,about 40 percent less than what he had made.

A) draw
B) quota
C) base
D) cap
E) bonus

Question 71

Which of the following salespeople best exemplifies a field salesperson?

A) Ann,a retail clerk at a large department store
B) Victor,a field support telemarketer who makes phone calls to customers
C) George,who takes food orders at a drive-through window
D) John,a pharmaceutical sales representative who visits doctors' offices to sell drugs
E) Gregory,a customer service representative who responds to calls placed to his firm by customers

Question 72

Who among the following exemplifies an inside salesperson?

A) A salesperson who calls on farmers' cooperative groups
B) A distributor who visits a customer's home to sell cosmetics
C) A retail clerk at a local hardware store
D) A pharmaceutical salesperson who regularly calls on physicians
E) A salesperson who trains a customer's employees on how to use the new copier he just sold them

Question 73

To keep commissions paid to salespeople from becoming so high that they become demoralizing to company executives,some companies place upper limits on how much a sales representative can earn.This limit is called a:

A) draw.
B) bonus.
C) base.
D) cap.
E) ground rule.

Question 74

Drew believes his sales manager has instructed him to do something unethical and discusses his concerns with the manager.However,even after discussing the matter with the manager,he was asked to carry out the original instructions.Drew's company encourages him to take his concerns straight to the upper management because it has a(n)_____.

A) straight salary system
B) bottom-up forecasting system
C) anti-whistleblowing policy
D) straight commission system
E) open-door policy

Question 75

House accounts:

A) are invariably the same as key accounts.
B) have no "true" salesperson.
C) are not used by large retailers.
D) provide salespeople with a percentage-of-sales commission.
E) are typically handled by field salespeople.

Question 76

Identify a true statement about team selling.

A) Salespeople should sell additional products that are not associated with the initial products.
B) A salesperson goes behind the back of a purchaser to directly contact other members of the buying center.
C) Salespeople evaluate prospects who do not necessarily have a clear understanding of what they need.
D) A group of salespeople supports a single account,and each team member brings a different area of expertise.
E) Members at various levels of a sales organization call on their counterparts in a buying organization.

Question 77

Alcium Aluminum has one sales force for handling tubing and extruded products and another for handling cans and rolled products.This best exemplifies a sales force that is organized on the basis of _____.

A) activity quotas
B) sales quotas
C) customer types
D) geographic location
E) product specialization

Question 78

_____ is an extension of team selling in which members at various levels of a sales organization call on their counterparts in a buying organization.

A) Network marketing
B) Viral marketing
C) Hierarchical selling
D) Direct selling
E) Multilevel selling

Question 79

An ethics review board:

A) discourages subordinates from taking their ethical concerns to the upper management of a company.
B) typically has no effect on the ethics of an organization.
C) should not be expected to have any lasting effect on the behavioral norms within a company.
D) can investigate allegations of unethical behavior and serve as a sounding board for employees.
E) should be composed solely of outside experts who are in no way financially involved with an organization.

Question 80

Neal works for Integrated Computer Systems Distributors (ICSD)as a field salesperson.In his territory,he only calls on attorneys' offices and physicians' offices.This specialization has allowed him to develop a high level of expertise at selecting just the right combination of hardware and software to meet the unique needs of these offices.From this information,it can be concluded that Neal is part of a sales force that is organized according to:

A) account types.
B) sales volume.
C) geographic regions.
D) activity quota.
E) performance-based criteria.