Deck 15: Time, Territory, and Self-Management: Keys to Success

Question 1

Segmenting the market into territories can be very effective in industries like insurance and retail.

Answer 1

False
Explanation: In spite of advantages, there are disadvantages to developing sales territories for some companies, such as in the real estate and insurance industries.

Question 2

It is wise to use the account segmentation approach in a market with heterogeneous needs.

Answer 2

True
Explanation: Salespeople using the account segmentation approach recognize that their territories contain accounts with heterogeneous needs and differing characteristics that require different selling strategies.

Question 3

Multivariable account segmentation means using multiple salespeople to call on a few accounts.

Answer 3

False
Explanation: Multivariable account segmentation means using more than one criterion to characterize the organization's accounts. Sales organizations use segmentation because they sell to several markets and use many channel members in these markets.

Question 4

The process of applying and designing selling strategies equally to different accounts is known as a differentiated selling approach.

Question 5

For the salesperson,time and territory management is a continuous process of planning,executing,and evaluating the sales and service provided to customers.

Question 6

According to the Golden Rule,how you spend your time greatly influences your level of sales success.

Question 7

One major disadvantage of having sales territories is the duplication of efforts by salespeople in the same area.

Question 8

All companies segment their markets into sales territories.

Question 9

The formation of sales territories can help increase sales,but it frequently leads to increased selling costs.

Question 10

Developing and using sales territories allows management to match salespeople to customer's needs in a better way.

Question 11

Territory time allocation is the time spent by the salesperson calling on accounts excluding the traveling time.

Question 12

Salespeople act as business managers for their territories.

Question 13

It is the job of the sales manager to set quotas and develop territorial sales plans for reaching the quota; it is the salesperson's job to fulfill that sales quota.

Question 14

A sales account refers to a limited geographical area assigned to a salesperson.

Question 15

A market with homogeneous needs and characteristics would best be suited for an undifferentiated market approach.

Question 16

The 80/20 principle is a time management concept that favors a salesperson putting 80 percent of his or her time on planning and 20 percent on selling.

Question 17

The majority of sales force resources should be invested in key accounts.

Question 18

One of the basic factors to consider in territory-time allocation is non-selling time.

Question 19

The process of applying different selling strategies to different customers and prospects is known as the account segmentation approach.

Question 20

Sales territories can be used to obtain thorough coverage of the market.

Question 21

For a salesperson,time and territory management:

A) is the process of defining homogeneous customer segments.
B) is most relevant during periods of economic recession.
C) is useful only when selling homogeneous products.
D) is a continuous process of planning, executing, and evaluating sales.
E) requires an efficient and effective customer service manager.

Question 22

Research indicates that a business lunch almost always leads directly to a quick sale.

Question 23

A formal route enables the organization to establish communication between management and the sales force in terms of the location and activities of individual salespeople.

Question 24

A salesperson leaves early from home and drives to the far end of her territory before making the first call.Then she works her way back so that she ends up near home at the end of the day.This is called the straight-line method of routing sales calls.

Question 25

The three basic routing patterns used by salespeople are straight-line,cloverleaf,and major-city.

Question 26

Many companies concentrate on improving the way their salespeople manage their time and territories because:

A) the cost of direct selling is rapidly decreasing.
B) the time available for face-to-face customer contact is increasing.
C) there is reduced emphasis on profitability.
D) time is always limited.
E) they want to increase the salesperson's responsibilities.

Question 27

A(n)_____ comprises a group of customers or a geographical area assigned to a salesperson.

A) market development area
B) undifferentiated account
C) sales territory
D) market segment
E) business domain

Question 28

Routing refers to the travel pattern the salesperson uses in working a territory.

Question 29

A professional salesperson should study product materials during the waiting time at the customer's office.

Question 30

Scheduling refers to establishing the total revenue to be generated from each sales territory.

Question 31

Before making a sales call,the salesperson should first qualify an account,which means the account should meet the firm's credit standards.

Question 32

Experts recommend that salespeople limit themselves to no more than two routes per day to make sure enough time is spent with each customer.

Question 33

Technology such as GPS is useful for locating customers and planning routes.

Question 34

The difference between cost of goods sold and sales is called the gross profit on sales revenue.

Question 35

Which of the following statements about sales territories is INCORRECT?

A) A sales territory contains present customers.
B) Geographic boundaries define a sales territory.
C) Firms use sales territories to evaluate performance.
D) A sales territory typically contains potential customers.
E) A sales territory comprises a geographic area assigned to a salesperson.

Question 36

The break-even point for a territory for a month is $1,000.If the salesperson generates $1,000 of profit the territory's direct costs are covered.

Question 37

Territorial evaluations use quantitative quotas or goals instead of qualitative quotas to determine the performance of individual territories.

Question 38

A company most likely forms sales territories to:

A) sell a complex product.
B) obtain thorough market coverage.
C) operate fully in a monopolistic market.
D) use an undifferentiated selling approach.
E) control its credit rating more effectively.

Question 39

Satisfying the service needs of accounts by telephone is not recommended for salespeople despite in cost reductions.

Question 40

Break-even volume per hour = Cost per hour/Gross profit percentage

Question 41

Which selling approach would most likely involve a salesperson using the same selling strategy for all customers?

A) Homogeneous selling
B) Heterogeneous selling
C) Account segmentation
D) TTM segmentation
E) Undifferentiated selling

Question 42

The 80/20 principle:

A) is a territorial management concept that favors a salesperson putting 80 percent of his time on planning and 20 percent on action.
B) refers to the fact that eighty salespeople require twenty sales managers to keep the appropriate 1-to-4 ratio of supervisors to employees.
C) indicates that no matter how hard a salesperson tries, 80 percent of the customer's potential business ends up going to competitors.
D) is a territorial management concept that favors a salesperson putting 80 percent of her time on action and 20 percent on planning.
E) refers to the idea that 20 percent of a firm's customers account for 80 percent of a firm's profitability.

Question 43

Which of the following statements about undifferentiated selling is most likely true?

A) The undifferentiated selling approach is only useful if customers are heterogeneous.
B) Many door-to-door salespeople use the undifferentiated approach.
C) The undifferentiated selling approach allows salespeople to devote time to customers in proportion to the customer's potential value.
D) The undifferentiated selling approach allows salespeople to streamline their pre-call preparation and thus is growing in popularity.
E) Undifferentiated selling cannot be used in conjunction with a stimulus-response presentation.

Question 44

The first step of time and territory management is:

A) setting quotas.
B) seeking referrals.
C) scheduling calls.
D) planning travel routes.
E) engaging in prospecting.

Question 45

Stephen started a new company which manufactures vacuum cleaners.He hired four salespeople and decided to use the door-to-door selling technique to sell his products.Which selling approach will most likely be used by the salespeople?

A) Account segmentation
B) Undifferentiated
C) Customized
D) Specific
E) Unstructured

Question 46

When a salesperson refers to her key accounts,she is talking about her _____ accounts.

A) orphaned
B) homogeneous
C) extra-large
D) governmental
E) undifferentiated

Question 47

Sutton Powell studies the sales potential of present and potential customers in her territory in order to estimate each account's potential and to make the best use of her time.This process is called:

A) customer sales planning.
B) route reporting.
C) territory-time allocation.
D) account analysis.
E) trend assessment.

Question 48

The use of the ELMS system is most closely related to the:

A) 50-50 method.
B) 80/20 principle.
C) SELL sequence
D) FAB closing.
E) KISS selling process.

Question 49

_____ means using more than one criterion to characterize an organization's accounts.

A) Parallel account integration
B) Multiple positioning
C) Multivariable account segmentation
D) Operational integration
E) Horizontal integration

Question 50

The 80/20 principles can be used to explain why salespeople use:

A) the ELMS system to segment accounts in their sales territories.
B) trial closes a minimum of three times per sales call.
C) three different types of routing patterns.
D) waiting time for non-selling activities.
E) mobile offices and technological tools.

Question 51

Dividing accounts on the basis of the types of accounts and sales volume would be an example of:

A) multivariable account segmentation.
B) market integration.
C) parallel account management.
D) territory-aggregate management.
E) double positioning.

Question 52

Which of the following is a method used to define accounts in terms of their size?

A) OAKS
B) KISS
C) FAB
D) ELMS
E) SELL

Question 53

The undifferentiated selling approach is used when the:

A) target market is homogeneous.
B) company is selling only in the home market.
C) company has a complex product line.
D) salespeople are highly experienced and skilled.
E) company is a new entrant in the market.

Question 54

Sales managers use the ELMS system to:

A) identify demographic characteristics so that customer needs match sales goals.
B) evaluate salespeople during annual performance appraisals.
C) match the personalities of salespeople and customers.
D) create the most efficient travel routes for salespeople.
E) categorize accounts in terms of profitability.

Question 55

According to the text,the general approaches to account analysis for salespeople are _____ and ______

A) personal selling; group selling.
B) undifferentiated selling; account segmentation.
C) mass marketing; target marketing.
D) integrated selling; aggregated selling.
E) mass customization; personalization.

Question 56

Hana Cho sells gas-powered generators.She finds it useful to divide the accounts in her territory on the basis of whether they sell at wholesale or retail as well as according to their potential sales volume.Cho is using:

A) dual operational integration.
B) multivariable account segmentation.
C) parallel account integration.
D) territory-aggregate management.
E) double positioning.

Question 57

The two general approaches to _____ for salespeople are undifferentiated selling and account segmentation.

A) customer sales planning
B) route reporting
C) territory-time allocation
D) quota regression analysis
E) account analysis

Question 58

Salespeople using the _____ approach recognize their territories contain accounts with heterogeneous needs and differing characteristics that require different selling strategies.

A) account segmentation
B) market diversification
C) undifferentiated selling approach
D) territorial development
E) market penetration

Question 59

After conducting an account analysis in the time and territory management process,salespeople should:

A) set account objectives and sales quotas.
B) manage scheduling and routing.
C) conduct customer sales planning.
D) evaluate customers and accounts.
E) conduct territory evaluations.

Question 60

According to the text,when a company directs its sales force members to use multiple selling strategies,this means salespeople are expected to:

A) split commissions if a buyer's purchasing office is in one salesperson's territory and the retail outlet is the territory of another salesperson.
B) have several sales approaches planned so that if their first sales attempt is unsuccessful, they can shift to an alternate approach without delay.
C) develop different sales approaches for the different products in the company's product line.
D) invest the bulk of their time and resources in the key accounts in their territories.
E) develop one form of presentation for existing accounts and another for prospects.

Question 61

"To increase the product assortment purchased by current customers by two percent during the next three months," is an example of a(n):

A) market quota.
B) derived demand.
C) account objective.
D) future product quotient.
E) net product forecast.

Question 62

Mario Jimenez sells electrical supplies.His annual sales equal $450,000.His total fixed costs annually equal $75,000.The cost of goods sold annually is $335,000.Mario works an average of 240 days a year and 8 hours each day.Mario makes an average of five sales calls per day.Mario's break-even volume per hour is approximately:

A) $119.00
B) $153.00
C) $171.00
D) $256.00
E) $392.00

Question 63

According to the suggestions in the text,daily planning by the salesperson would be LEAST likely to include:

A) determination of the time to contact the customer.
B) analysis of territorial gains and losses.
C) selection of the next day's prospects.
D) organization of facts and figures.
E) preparation of sales presentation materials.

Question 64

The J&L Grocery Distribution Company characterizes its customers according to their yearly sales potential and whether the account is a retailer,wholesaler,or government agency.This approach to segmentation is called:

A) undifferentiated selling.
B) double-positioning.
C) multivariable account segmentation.
D) parallel account segregation.
E) total territory management.

Question 65

Meredith Jacoby sells floral supplies.Her annual sales equal $450,000.Her total fixed costs annually equal $75,000.The cost of goods sold annually is $335,000.Calculate her gross profit percentage.

A) 11.9%
B) 20.3%
C) 25.6%
D) 34.3%
E) Cannot be determined from information given

Question 66

Which of the following would be a good rule for salespeople to follow in handling their paperwork?

A) Avoid paperwork so that more time is available for sales presentations.
B) Politely interrupt a sales interview to get paperwork finished.
C) Finish paperwork during non-selling times and evenings.
D) Manage paperwork on a once-a-month basis.
E) Handle paperwork throughout the day.

Question 67

_____ is a quantitative technique for determining the level of sales at which total revenues equal total costs.

A) Sales response function
B) Equilibrium analysis
C) Variable cost analysis
D) Break-even analysis
E) ELMS function

Question 68

Madison works for a weed killer manufacturing company.The products have only been available in a concentrated liquid form,but now the firm is introducing a pre-mixed version that should be easier for consumers to use.Madison will most likely increase the frequency of sales calls because:

A) the available supply is limited and costly.
B) there is no competition within the sales territory.
C) demand is low for his company's older products.
D) customers are less likely to buy products from the competition.
E) his company has increased the number of product lines available.

Question 69

According to the text,which of the following is one of the seven basic factors to be considered in the allocation of a salesperson's time?

A) Nonselling time
B) Product price
C) Total revenue of the company
D) Number of competitors
E) Estimated sales volume

Question 70

Ryan Hester sells building supplies.His annual sales equal $450,000.His total fixed costs annually equal $75,000.The cost of goods sold annually is $335,000.Ryan's break-even point in terms of total sales is approximately:

A) $198,000
B) $218,600
C) $224,000
D) $293.000
E) $315,200

Question 71

Based on the following data,calculate the breakeven point in dollars: Sales = $400,000
Gross Profit = $100,000
Transportation = $8,000
Cost of Goods Sold = $280,000
Expenses = $10,000
Salary = $40,000

A) $96,667
B) $133,333
C) $166,000
D) $232,000
E) Cannot be calculated with the information provided

Question 72

Which of the following is NOT one of the seven basic factors to consider in the allocation of a salesperson's time?

A) Frequency of customer sales calls
B) Return on time invested
C) Nonselling time
D) Compensation
E) Travel time

Question 73

Which of the following can be used to calculate the costs and revenues of sales territories?

A) ELMS system
B) Break-even analysis
C) Multivariate territorial analysis
D) Keystoning
E) SWOT analysis

Question 74

Based on the following data,calculate the breakeven point. Sales = $500,000
Transportation = $10,000
Gross Profit = $200,000
Lodging and Meals = $8,000
Salary = $37,000
Other expenses = $5,000

A) $150,000
B) $130,000
C) $100,0003
D) $86,667
E) Cannot be calculated with the information given

Question 75

A salesperson invests time in direct proportion to the actual or potential sales that the account represents.This relationship of sales volume to sales calls is the:

A) sales response function.
B) break-even function.
C) time allocation coefficient.
D) territory coefficient.
E) alternate correlation.

Question 76

A territory's break-even point can be computed in terms of dollars by dividing the _____ with gross profit percentage.

A) salesperson's sales revenue
B) gross sales
C) total sales
D) salesperson's fixed costs
E) salesperson's total work hours

Question 77

James Lambert is an assistant territory sales manager at Cellcom,a leading wireless service provider in Europe.James manages the salespeople in a small city in France.There are many players in the wireless service provider market,and it is becoming increasingly difficult to position the company as unique.What can James do to position Cellcom as a unique company,when compared to its competitors?

A) Reduce the call rates by half.
B) Increase the mass media advertising of Cellcom.
C) Instruct salespeople to spend more time on each sales call.
D) Ask salespeople to discuss the weakness of competition in every sales call.
E) Substantially reduce the salespeople's visits to the small accounts and increase the visits to key accounts.

Question 78

As a sales rep for Healthtex,Linda plans her activities for the next week; she establishes a fixed day and time to visit each customer's place of business.She is engaged in the process of:

A) account grouping.
B) routing.
C) customer allocation.
D) accounts mapping.
E) scheduling.

Question 79

Which of the following rules should a salesperson adopt in order to have more productive lunch periods?

A) Monitor the time to avoid monopolizing too much of the buyer's day.
B) Have an alcoholic drink only if the client makes the suggestion.
C) Conduct part of the sales presentation during lunch using a laptop.
D) When lunching alone, use the time to read something relaxing.
E) Offer to purchase the customer a lunchtime cocktail or dessert.

Question 80

The difference between sales and _____ is the gross profit on sales revenue.

A) fixed costs
B) variable costs
C) cost of goods sold
D) total productive hours
E) average annual expenses