Question 1

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

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

With the undifferentiated selling approach, salespeople use a single selling approach for all accounts.

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.

Accepted Answer

Time and territory management (TTM) is a continuous process of planning, executing, and evaluating the sales and service provided to customers. By completing each of the seven key elements involved in time and TTM, the salesperson ensures that the customers will be provided excellent service.

Question 6

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

Accepted Answer

How you spend your time determines your life. It greatly influences the level of your success in sales-and school. Time encompasses the time spent with customers and your life activities.

Question 7

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

Accepted Answer

Sales territories are designed to avoid duplicating efforts so that two salespeople do not travel in the same area. Such benefits as fewer travel miles and fewer overnight trips, plus regular contact with productive customers by the same salesperson, can improve the firm's sales-to-cost ratio.

Question 8

All companies segment their markets into sales territories.

Accepted Answer

Not all firms divide markets into sales territories. In spite of many advantages to sales territories, there are disadvantages to developing sales territories for some companies, such as in the real estate and insurance industries.

Question 9

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

Accepted Answer

Sales territories are designed to avoid duplicating efforts so that two salespeople do not travel in the same area. Such benefits as fewer travel miles and fewer overnight trips, plus regular contact with productive customers by the same salesperson, can improve the firm's sales-to-cost ratio.

Question 10

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

Accepted Answer

Salespeople are hired and trained to meet the requirements of the customers in a territory. Often, the more similar the customer and the salesperson, the more likely the sales effort will succeed.

Question 11

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

Accepted Answer

Time allocation is the time spent by the salesperson traveling around the territory and calling on accounts. The allocation includes the time it takes to travel between customers

Question 12

Salespeople act as business managers for their territories.

Accepted Answer

Salespeople act as business managers for their territories. They are responsible for maintaining and generating sales volume.

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.

Accepted Answer

A salesperson is responsible for generating sales in a territory based on its sales potential. The salesperson's manager typically establishes the total sales quota that each salesperson is expected to reach, but the salesperson develops territorial sales plans.

Question 14

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

Accepted Answer

A sales territory comprises a group of customers or a geographic area assigned to a salesperson. Firms use sales territories to establish each salesperson's responsibilities and to improve customer relations.

Question 15

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

Accepted Answer

Salespeople whose accounts have homogeneous needs and characteristics may find the undifferentiated selling approach useful. The basic assumption underlying this approach is that the account needs for a specific product or group of products are similar.

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.

Accepted Answer

There are few extra-large or large accounts, but they often account for 80 percent of a company's profitable sales even though they represent only 20 percent of total accounts. This is known as the eighty/twenty principle.

Question 17

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

Accepted Answer

The bulk of sales force resources (such as personnel, time, samples, and entertainment expenses) should be invested in the key accounts, and the needs of these large accounts should receive top priority.

Question 18

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

Accepted Answer

Time allocation is the time spent by the salesperson traveling around the territory and calling on accounts. Factors to consider in time allocation include the number of accounts in the territory, travel time around the territory, and nonselling time.

Question 19

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

Accepted Answer

Salespeople using the account segmentation approach recognize that their territories contain accounts with heterogeneous needs and differing characteristics that require different selling strategies. Consequently, they develop sales objectives based on overall sales and sales of each product for each customer and prospect.

Question 20

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

Accepted Answer

Firms use sales territories to obtain a thorough coverage of a market. With proper coverage of territories, a company will reach the sales potential of its markets.

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