Question 1

The ___________ is ultimately responsible for how a salesperson's expense budget is spent.

Accepted Answer

The salesperson is ultimately responsible for how their expense budget is spent, as they are the ones who manage and allocate their expenses within the guidelines provided by the company.

Question 2

Jorge's sales manager has told him that he will be given a $100 bonus if he can reduce his expenses by 5 percent during the next quarter. Jorge sells promotional products like mugs and calendars to companies to give to customers as a part of reminder advertising. What potential effect does this bonus have on Jorge's sales for the quarter?

Accepted Answer

The bonus may lead Jorge to reduce expenses by not giving out samples, which could negatively impact sales as customers may be less inclined to purchase without seeing or trying the products.

Question 3

Which of the following departments of 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 paid his commission for them?

Accepted Answer

The answer of Which of the following departments of Ed's...

Question 4

Lennie's sales manager expects him to make at least 5 calls per day and give at least 15 full presentations per week. These expectations are examples of:

Accepted Answer

Lennie's sales manager expects him to perform a certain level of activity (at least 5 calls per day and 15 presentations per week), which is an example of activity quotas. Other options like revenue quotas, gross margin quotas, unit quotas, and compensation quotas are based on the results of the sales performance, not the activity level.

Question 5

Gwendolyn's _____ calls for her to sell 50 store fixtures next quarter.

Accepted Answer

Sales quota refers to the specific amount of sales that an employee or team is expected to achieve within a certain time frame. Gwendolyn's task is to sell 50 store fixtures, which falls under the category of a sales quota.

Question 6

A(n) _____ represents a quantitative minimum level of acceptable performance for a specific time period.

Accepted Answer

A quota is a minimum level of acceptable performance that an individual or team is expected to achieve in a specific time period. It is often used as a benchmark for evaluating performance and motivating employees to meet or exceed expectations. A forecast is a prediction of future events or trends, a budget is a financial plan for managing resources, a ration is a limited amount of resources allocated for a specific purpose, and an allowance is a fixed amount of money given on a regular basis to cover expenses.

Question 7

Katherine is developing a forecast for next year's sales of organic fertilizer by her company to the nation's retail gardening nurseries. She is assembling the sales estimates for her company's products by adding together the territory estimates provided by her salespeople. She is using _____ forecasting.

Accepted Answer

Katherine is using a bottom-up forecasting approach where she is adding up the sales estimates provided by her salespeople. This approach involves aggregating detailed estimates from individual sources to arrive at an overall forecast.

Question 8

While servicing a copier at NevaFlat Tire headquarters, R.J. overhears the office manager telling another employee that the increased level of problems with the copying machine are probably due to the unexpected increase in work it's having to do, and that he has sent a request to the corporate finance committee for money to buy a heavy-duty model. What should R.J. do?

Accepted Answer

R.J. should pass the information along to the copier sales rep who calls on NevaFlat. This can potentially lead to a sales opportunity for the sales rep and a solution for NevaFlat's copier problem. It is important for R.J. to not ignore the information, as it could be useful in finding a solution for the copier issues. Encouraging the office manager to contact the sales rep might not be the best option, as the office manager may not have the time or resources to do so. Making a temporary repair on the copier without informing anyone could potentially cause further issues and harm NevaFlat's trust in R.J. Not worrying about how well the copier gets fixed is also not a good option, as it is important to provide quality service to customers.

Question 9

Bottom-up forecasting provides the advantage of:

Accepted Answer

Bottom-up forecasting allows individuals who are closest to the market to provide input and insights, which can lead to more accurate forecasts. This approach can also increase buy-in from sales teams and other individuals responsible for achieving sales figures. Options A, B, and D are all potential disadvantages or challenges with bottom-up forecasting, rather than advantages.

Question 10

A company that sets minimum level of things salespeople must do is using:

Accepted Answer

Activity quotas set a minimum level of tasks or actions that salespeople must do, such as making a certain number of calls or scheduling a certain number of meetings, regardless of the revenue, gross margin or units sold. Compensation quotas would refer to the specific amount of commission or pay that salespeople receive.

Question 11

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

Accepted Answer

Due to differences in culture, language, and economic conditions, traditional forecasting techniques may not work as well in global markets. Therefore, relying on the existing sales force for sales forecasting can be a more reliable approach.

Question 12

Oscar sells for Rubies Costume Company. When he presents his customer's position about Rubies's new credit terms to the company's comptroller, he is doing part of his job as a:

Accepted Answer

As a sales representative, Oscar's job is to interface between the customer and the company he represents. In this scenario, he is presenting the customer's position regarding Rubie's new credit terms to the company's comptroller, which is part of his job as a sales representative.

Question 13

A telemarketer who is an account manager has the same responsibilities and duties as a field salesperson, except that all business is conducted over the phone.

Accepted Answer

A telemarketer who is an account manager typically has the same responsibilities and duties as a field salesperson, such as identifying potential customers, making sales presentations, following up with customers and closing deals. The key difference is that all of this is done over the phone instead of in person.

Question 14

Most sales positions require boundary-spanning coordination and management skill. Which of the following corporate areas is important to salespeople?

Accepted Answer

Salespeople need to coordinate with multiple corporate areas such as marketing for promotional strategies, manufacturing for product availability, administration for policy compliance, and shipping for delivery logistics.

Question 15

Taylor sells roller coasters, carousels, bumper cars and other similar rides found at amusement parks. His sales manager has told him that at a minimum, he must sell 6 water flume rides, 3 carousels, 2 coaster rides, and 10 kiddy rides this fiscal year. Taylor's sales manager has given him his sales:

Accepted Answer

The sales manager has set specific minimum targets that Taylor must sell for each type of ride, which is known as a sales quota.

Question 16

Which of the following statements about building internal partnerships is FALSE?

Accepted Answer

It is not solely the duty of warehouse and customer service employees to establish internal partnerships with salespeople. It is the responsibility of all employees to work together and build strong internal relationships.

Question 17

Which of the following is NOT a role played by the sales executive?

Accepted Answer

Auditing manufacturing production quotas is not a role played by the sales executive. The other options listed are all responsibilities of a sales executive.

Question 18

Ryan is part of a team that calls on their counterparts in a buying organization. He is part of a multilevel selling team.

Accepted Answer

Ryan being part of a team that calls on their counterparts in a buying organization indicates that they are likely involved in multilevel selling, which involves selling to multiple stakeholders within the buying organization.

Question 19

Which of the following is good advice for a salesperson who is selling internally?

Accepted Answer

Being prepared to negotiate is good advice for a salesperson who is selling internally, as it shows flexibility and willingness to compromise to reach a mutually beneficial solution. A and C are both incorrect as making selling issues personal and ignoring personal needs of the internal customer both ignore the professional context of the situation. D is incorrect as it is not advisable to disregard arguments that address the internal customer's needs. E is also incorrect as appealing to the lowest common denominator can come across as condescending and may not effectively address the internal customer's needs.

Question 20

Mack's _____ for next year is to sell $525,000 worth of merchandise in his territory.

Accepted Answer

A revenue quota is a sales goal in terms of the total dollar amount of goods or services sold, making it the best choice as it aligns with Mack's goal to sell a specific amount of merchandise in his territory. Profit quota, gross margin quota, and unit quota are other types of sales goals but focus on different aspects of the sales process, while compensation quota refers to the amount of commission or bonuses earned and not the sales goal itself.

Quiz 16: Managing Within Your Company