Question 1

Contribution margins are usually expressed as:
A) percent of sales.
B) percent of company profit.
C) percent of controllable expenses.
D) percent of indirect expenses.
E) all of the above.

Accepted Answer

Contribution margins are typically expressed as a percentage of sales, as they represent the amount of revenue remaining after variable costs have been subtracted. It is important for businesses to monitor their contribution margin to determine the profitability of their products or services.

Question 2

If you, as the sales manager, were given the task of implementing a method to keep track of field representative activities, which of the following would be best course of action? "I would institute…"
A) quotas.
B) daily call reports.
C) spot checks.
D) MBO.
E) Online customer buying capabilities.

Accepted Answer

Daily call reports would be the best course of action to keep track of field representative activities, as it provides regular updates on their activities and is easy to monitor. Quotas may incentivize productivity, but they don't necessarily track specific activities or behaviors. Spot checks may be useful for quality control, but they aren't a consistent method of tracking activities. MBO (Management by Objectives) is a performance management system that sets specific goals for employees, but it may be too high-level for tracking individual activities. Online customer buying capabilities are unrelated to tracking field representative activities.

Question 3

Behavioral based control systems are primarily concerned with:
A) minimizing expenses.
B) increasing sales volume.
C) controlling profit margins.
D) tracking steps in the selling process.
E) none of the above.

Accepted Answer

Behavioral based control systems focus on tracking and monitoring steps in the selling process, such as customer interactions, sales tactics, and follow-up procedures. The goal is to improve the effectiveness of the sales force and ultimately drive revenue growth. Minimizing expenses and controlling profit margins are more closely associated with financial control systems, while increasing sales volume is a broader organizational objective.

Question 4

When a territory's sales are increasing, but the sales level is only 50% of potential, a possible explanation is:
A) the salesperson is poorly trained and needs additional assistance.
B) the salesperson is new to the territory and has not had time to develop it properly
C) the territory is under heavy competitive pressure.
D) only a and b of the above.
E) all of the above.

Accepted Answer

Each of the provided explanations (A, B, and C) could potentially account for why sales are increasing but still only at 50% of potential. A poorly trained salesperson might not fully capitalize on opportunities (A), a new salesperson might be in the process of building relationships and understanding the market (B), and heavy competitive pressure could limit market share even if sales are growing (C).

Question 5

The biggest drawback to MBO programs is that: A) they require a lot of sales manager's time. B) there is little understanding of how to implement the program. C) there is little agreement on which managers should be included in the evaluation process. D) most goals do not lend themselves to quantitative measurement. E) all of the above.

Accepted Answer

The answer of The biggest drawback to MBO programs is...

Question 6

You are the sales manager of a large company that produces and distributes fresh baked bread to grocery stores. You have a sales staff of 83 field reps. Which of the following methods would be best suited to maximize your information gathering process?
A) review of the expense accounts (gasoline receipts and so forth) submitted by your field reps.
B) initiate a system of daily call reports.
C) use the bakery department records to monitor the sampling activities of the sales force.
D) periodically travel with the field reps.
E) capital market structure.

Accepted Answer

Initiation of a system of daily call reports would allow for frequent updating of sales activities and potential roadblocks encountered by the field reps. This method would also allow for real-time adjustments to be made in response to current market trends and customer demands. Review of expense accounts and bakery department records can provide additional information, but may not provide as comprehensive data as daily call reports. Periodic travel with the field reps may be beneficial, but could be time consuming and may not provide as much data as the other methods. Capital market structure is not relevant to the information gathering process in this scenario.

Question 7

Managers who control stockbrokers, insurance and other salespeople commission tends to emphasize ______________measures of performance.
A) outcome
B) input
C) regression-based
D) behavioral.
E) none of the above.

Accepted Answer

Managers who control salespeople through commission pay tend to emphasize outcome measures of performance, such as sales revenue, profits, and customer satisfaction. This is because these measures directly reflect the success of the salesperson in closing deals and generating business.

Question 8

Sales force appraisals are important to a sales manager because they provide:
A) evidence for disciplinary action.
B) opportunities to motivate salespeople
C) determine raises.
D) determine adjustments to territories.
E) all of the above.

Accepted Answer

Sales force appraisals serve multiple purposes including providing evidence for disciplinary action, motivating salespeople, determining raises, and adjusting territories. Therefore, the best choice is E, "all of the above."

Question 9

An assessment of sales results is common in evaluation systems. Assume that you find that 20 percent of the territories, products, or customers produce 80 percent of the revenues. What conclusion(s) can you draw?
A) This situation might represent a misallocation of selling effort because the concern is with the number of customers rather than the potential of each prospect.
B) This situation suggests that marketing efforts should be concentrated on a few customers and products.
C) This situation suggests that marketing efforts should be spread evenly across all areas.
D) Both a and b of the above.
E) None of the above.

Accepted Answer

The answer of An assessment of sales results is common...

Question 10

All of the following are common types of individual goals for salespeople except: A) days worked. B) calls per day. C) gross margin percentage analysis D) sign placements. E) displays set up.

Accepted Answer

Days worked, calls per day, sign placements, and display set up are all common types of individual goals for salespeople. Gross margin percentage analysis is a measure of financial performance and is not typically an individual goal for salespeople.

Question 11

Contribution margin minus direct fixed selling costs equals:
A) variable.
B) fixed cost.
C) direct selling cost.
D) contribution profit.
E) income after tax.

Accepted Answer

The calculation of contribution margin minus direct fixed selling costs results in contribution profit. This represents the amount of revenue that is available to cover fixed costs and contribute to profit after deducting all variable and direct fixed costs. Therefore, the correct choice is D, contribution profit.

Question 12

As the sales manager, you have a difficult time assigning sales credit for a successful sale. In this situation, it is best to:
A) use an outcome evaluation control system
B) use a behavioral evaluation control system
C) use management by objective control system
D) use behavioral observation scales in your control system
E) none of the above, there is nothing you can do to improve the situation.

Accepted Answer

A behavioral evaluation control system focuses on the actions and processes that lead to a sale, allowing for a fairer distribution of sales credit based on individual contributions.

Question 13

Focusing on the different types of activities carried out by field representatives is an inherent part of:
A) behavioral control systems.
B) outcome control systems.
C) output management.
D) territorial management.
E) portfolio management.

Accepted Answer

Behavioral control systems involve monitoring and managing the actions and behaviors of employees. Focusing on the specific activities carried out by field representatives is a key aspect of behavioral control, as it enables managers to ensure that their representatives are meeting their expectations and adhering to company policies and procedures. Outcome control systems (B) focus more on achieving specific results, such as sales targets or customer satisfaction scores, rather than on the specific activities that lead to those outcomes. Output management (C) is a general term that refers to managing the production or delivery of goods or services. Territorial management (D) is the process of organizing and assigning territories to sales representatives. Portfolio management (E) involves managing a company's various products, services, or business units.

Question 14

With this method, salespeople and sales managers jointly set personal development targets for the subordinate to be completed within a specific time period. This method is called:
A) TOM.
B) BOS.
C) MBO.
D) MIS.
E) QFD.

Accepted Answer

The described method is called Management by Objectives (MBO), which involves setting specific goals and objectives for individuals or teams to achieve within a set time frame. The targets are established collaboratively, and progress toward achieving them is regularly reviewed, with adjustments made as necessary. This approach is useful for aligning individual efforts with organizational priorities, improving motivation and engagement, and fostering a sense of ownership and accountability. TOM (Theory of Constraints), BOS (Balance of System), MIS (Management Information System), and QFD (Quality Function Deployment) are unrelated to this method.

Question 15

Which of the following statements is/are true regarding behavioral observation scales?
A) inputs for the program are given exclusively by the salesperson.
B) it is a very time consuming process when compared to MBO systems.
C) it focuses on identifying a list of critical incidents that lead to job success.
D) two of the above, and they are a and c.
E) two of the above, and they are b and c.

Accepted Answer

The answer of Which of the following statements is/are true...

Question 16

"MBO" stands for:
A) manager of operations.
B) manager of business objectives.
C) management by objectives.
D) management by opinions.
E) none of the above.

Accepted Answer

MBO stands for Management by Objectives, which is a strategic management principle that involves setting goals and objectives for employees to improve performance and achieve organizational objectives.

Question 17

All of the following are popular ways of looking at sales results, as discussed in the text, except. A) checking total sales revenues. B) sales by territories. C) sales by products. D) sales by customer type. E) All of the above are popular ways of looking at sales results.

Accepted Answer

All of the options listed are popular ways of looking at sales results, so none of them are the exception.

Question 18

Net sales revenue minus variable cost equals:
A) variable cost.
B) contribution margin.
C) direct selling costs.
D) contribution profit.
E) income after tax.

Accepted Answer

Net sales revenue minus variable costs equals the contribution margin, which represents the amount of revenue that can contribute towards fixed costs and profits.

Question 19

Which of the following market condition would you use a behavioral evaluation control system?
A) customers need information
B) competitive sales environment
C) there is a need to protect the brand image
D) customers trust the salesperson
E) customers need lots of information

Accepted Answer

A behavioral evaluation control system is used when there is a need to protect the brand image. This system ensures that sales representatives are behaving ethically and in accordance with company policies, reducing the risk of negative publicity or damage to the brand reputation.

Question 20

Which of the following is/are possible reasons why a manager may institute behavior based control procedures?
A) it leads to more knowledgeable and expert salespeople.
B) it encourages salespeople to achieve company goals.
C) it greatly reduces the amount of time salespeople are expected to spend planning their calls and on sales support activities.
D) two of the above, and they are a and
E) all of the above.

Accepted Answer

Behavior based control procedures are typically implemented to encourage salespeople to achieve company goals and to help them become more knowledgeable and expert in their work. While these procedures may not reduce the amount of time salespeople spend planning their calls and conducting sales support activities, they can help salespeople to be more effective in their work and to better serve the needs of their customers. Ultimately, the goal of behavior based control procedures is to improve the performance of salespeople and to help them achieve greater success in their roles within the organization.

Quiz 13: Evaluating Sales Force Performance

Contribution margins are usually expressed as:

If you, as the sales manager, were given the task of implementing a method to keep track of field representative activities, which of the following would be best course of action? "I would institute…"

Behavioral based control systems are primarily concerned with:

When a territory's sales are increasing, but the sales level is only 50% of potential, a possible explanation is:

The biggest drawback to MBO programs is that:

You are the sales manager of a large company that produces and distributes fresh baked bread to grocery stores. You have a sales staff of 83 field reps. Which of the following methods would be best suited to maximize your information gathering process?

Managers who control stockbrokers, insurance and other salespeople commission tends to emphasize ______________measures of performance.

Sales force appraisals are important to a sales manager because they provide:

An assessment of sales results is common in evaluation systems. Assume that you find that 20 percent of the territories, products, or customers produce 80 percent of the revenues. What conclusion(s) can you draw?

All of the following are common types of individual goals for salespeople except:

Contribution margin minus direct fixed selling costs equals:

As the sales manager, you have a difficult time assigning sales credit for a successful sale. In this situation, it is best to:

Focusing on the different types of activities carried out by field representatives is an inherent part of:

With this method, salespeople and sales managers jointly set personal development targets for the subordinate to be completed within a specific time period. This method is called:

Which of the following statements is/are true regarding behavioral observation scales?

"MBO" stands for:

All of the following are popular ways of looking at sales results, as discussed in the text, except.

Net sales revenue minus variable cost equals:

Which of the following market condition would you use a behavioral evaluation control system?

Which of the following is/are possible reasons why a manager may institute behavior based control procedures?