Question 1

The workload method of determining the size of a salesforce is a:

Accepted Answer

The workload method of determining the size of a salesforce is a formula-based method that calculates the salesforce size by integrating several factors such as the number of customers served, call frequency, call length, and available selling time. This helps in determining the number of salespeople required to meet the required workload. Therefore, option C is the correct answer.

Question 2

Policies that specify whom salespeople should contact,what kinds of selling and customer service activities should be engaged in,and how these activities should be carried out is referred to as:

Accepted Answer

Account management policies typically specify whom salespeople should contact (i.e., which accounts they are responsible for), what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. Territorial management policies relate to how sales territories are defined and managed, while sales-response policies relate to how salespeople should respond to different customer situations. Customer contact policies may cover some of these aspects, but the term is not typically used to refer to a specific set of policies.

Question 3

Which salesforce organizational structure minimizes travel time,expenses,and duplication of effort?

Accepted Answer

Geographical organizational structure is the best choice as it groups employees based on their location, reducing travel time and expenses. It also helps to eliminate duplication of effort as employees in the same location can work together efficiently.

Question 4

ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion.At one time,ABB had a salesforce that sold only generators,one that only sold boilers,another that only sold transformers,and so forth.Each of its salespeople was an expert on the items he or she sold.Its salesforce was organized by:

Accepted Answer

ABB's salesforce was organized by the product that each salesperson sold, with one team selling generators, another selling boilers, and so on. This structure allowed for each salesperson to become an expert on their product and provide more specialized knowledge and service to customers.

Question 5

Research indicates that 25 percent of North American salespeople engaged in _____ selling consider it unethical to explicitly ask customers about competitor strategies such as pricing practices,product development efforts,and trade and promotion programs.

Accepted Answer

The term "business-to-business" (B2B) selling implies selling products or services to other businesses. Research suggests that 25 percent of North American salespeople engaged in B2B selling consider it unethical to ask customers about competitor strategies, including pricing practices, product development efforts, and trade and promotion programs. This reluctance demonstrates a lack of confidence or ethics in a salesperson's ability to compete effectively within their market.

Question 6

Which of the following statements describes an advantage achieved when replacing independent sales agents with an internal salesforce?

Accepted Answer

With an internal salesforce, the company has more control over the training, motivation, and management of the salespeople. This allows for the use of non-monetary rewards such as health and retirement benefits, which can increase employee satisfaction and retention.

Question 7

All of the following are examples of a behaviourally related sales objective,except:

Accepted Answer

Providing a lower level of customer service is not a behaviourally related sales objective as it goes against the goal of improving the selling process and maintaining customer satisfaction. Improving communication skills, increasing product knowledge, and improving selling skills are all examples of behaviourally related sales objectives because they focus on improving the salesperson's performance and ultimately increasing sales.

Question 8

The office memo read,"Sales representatives from British Columbia,Alberta,Manitoba and Saskatchewan will report directly to the regional manager." From this information,it would appear the company that issued the memo uses ______ organization for its salesforce.

Accepted Answer

The memo indicates that the sales representatives are organized based on their geographical locations, with each region reporting directly to their respective regional manager. Therefore, the company is using a geographical organization for its salesforce.

Question 9

The best organizational structure to use when different buying organizations have different needs is a _____ sales organization.

Accepted Answer

A customer sales organization is best suited for situations where different buying organizations have different needs. This type of organization focuses on grouping customers with similar needs, allowing for specialized attention to be given to their unique requirements. This structure enables sales representatives to develop a deep understanding of the customer’s pain points, wants, and needs, and to tailor the sales approach and offering accordingly. This is particularly effective when selling complex, customized, or high-value products or services.

Question 10

Which of the following activities is NOT a part of account management policies?

Accepted Answer

Job analysis is a task performed during recruitment and hiring, not account management policies. The other activities listed are common parts of account management policies.

Question 11

Rona,Home Depot,and Canadian Tire are considered major accounts of Char-Broil BBQs.As such,they dedicate a specific person to each one of these clients,as opposed to one for all three.This approach is referred to as:

Accepted Answer

The approach of assigning a specific person to a major account is known as key account management, which focuses on building strong relationships and providing tailored solutions to meet the specific needs of each account. Relationship marketing and selling are broader concepts that refer to strategies used to build and maintain positive connections with customers, while customer account management is a more general term that encompasses all aspects of managing customer accounts.

Question 12

The sales manager instructed the salesperson to "make 500 customer contacts between January 1^st and July 1^st." The sales manager used a(n)_____ sales objective.

Accepted Answer

The instruction given by the sales manager is an example of an input-related sales objective since it focuses on the activities or efforts that the salesperson needs to undertake, which is to make 500 customer contacts. Output-related objectives, on the other hand, are concerned with achieving certain sales targets or results, while behavior-related objectives relate to developing specific skills or behaviors that can lead to better sales performance. Canvassing, meanwhile, refers to the practice of going door-to-door to sell products or services.

Question 13

A sales manager reviews the latest numbers and realizes that they have one salesperson for every 100 stores,when company policy states that they need one for every 75 stores.This company is using which method to determine its salesforce size?

Accepted Answer

The workload method is used to determine salesforce size based on the workload of the salespeople. In this case, the company is using the ratio of one salesperson for every 100 stores, which does not meet the company policy of one salesperson for every 75 stores. This indicates that the salesforce size needs to be increased to meet the workload demands of the stores.

Question 14

Whirlpool has a sales manager for each of the provinces and territories.Whirlpool is using which salesforce organizational structure?

Accepted Answer

Whirlpool is using a geographic salesforce organizational structure because it has a sales manager for each of the provinces and territories.

Question 15

An insurance company is considering using independent sales agents who would receive 7 percent sales commission on sales or its own insurance salespeople who would receive 5 percent commission,salaries,and benefits.Additionally,with a company salesforce,sales administration costs would be incurred for a total fixed cost of $650,000 per year.At what level of sales would independent salespeople be less costly?

Accepted Answer

Let's assume that the total sales are X dollars.
For independent sales agents:
Commission cost = 7% of X
Sales administration cost = 0
Total cost = 7% of X

For company salesforce:
Commission cost = 5% of X
Sales administration cost = $650,000
Total cost = 5% of X + $650,000

The independent salespeople would be less costly if their total cost is less than the total cost of company salesforce.
7% of X < 5% of X + $650,000
2% of X < $650,000
X < $32,500,000
Therefore, if the total sales are less than $32,500,000, independent sales agents would be less costly. If the total sales exceed $32,500,000, the company salesforce would be less costly. Therefore, the correct answer is C.

Question 16

An effective sales plan objective should be:

Accepted Answer

An effective sales plan objective should be precise, meaning it clearly defines what is being pursued, measurable, meaning there are specific metrics for determining if the objective has been achieved, and time-specific, meaning it has a deadline or target date for completion. This allows for accountability and helps track progress towards achieving the objective. B, C, and D have inaccuracies or incomplete characteristics compared to a well-defined objective.

Question 17

A variation of the customer organization structure is:

Accepted Answer

Key account management is a variation of the customer organization structure, where sales representatives are designated to manage and maintain long-term relationships with key accounts or high-value customers. This approach emphasizes building strong relationships with a smaller number of accounts rather than a large number of customers.

Question 18

Diamond Line is a distributor of everything a florist needs to create a beautiful arrangement except the flowers.It sells to 10,000 flower and gift shops and 3,000 supermarkets nationwide.Each florist is called on four times a month,and each supermarket is called on twice a month.A sales call to a florist takes one hour,and a sales call to a supermarket takes two hours of selling time.An average salesperson spends 1,000 hours per year making sales calls.Calculate the number of salespeople Diamond Line needs to cover its account base.

Accepted Answer

The answer of Diamond Line is a distributor of everything...

Question 19

Clauss Cutlery sells knives to the floral industry.These knives are designed to slice through foam blocks,cut wire,and perform other similar tasks.It also sells cutting utensils to the meat-processing industry.These large heavy-duty blades can saw through carcasses quickly.Clauss also sells a line of cutting tools to people in the woodworking industry for sawing and shaping wood cutouts.Clauss Cutlery should use a _____ sales organization.

Accepted Answer

Clauss Cutlery has different target audiences with differing needs and specifications. Hence, using a customer sales organization would be the most effective approach as it involves tailoring the sales approach according to the specific requirements of each customer segment. This can help to build stronger relationships with the customers and increase customer satisfaction and loyalty.

Question 20

Which of the following is NOT a variable used in the workload method of determining salesforce size?

Accepted Answer

The workload method of determining salesforce size takes into consideration variables such as the number of customers, length of an average call, and average selling time available per year. However, average yearly salary is not usually included as a variable in this method.

Quiz 18: Personal Selling and Sales Management

The workload method of determining the size of a salesforce is a:

Policies that specify whom salespeople should contact,what kinds of selling and customer service activities should be engaged in,and how these activities should be carried out is referred to as:

Which salesforce organizational structure minimizes travel time,expenses,and duplication of effort?

Research indicates that 25 percent of North American salespeople engaged in _____ selling consider it unethical to explicitly ask customers about competitor strategies such as pricing practices,product development efforts,and trade and promotion programs.

Which of the following statements describes an advantage achieved when replacing independent sales agents with an internal salesforce?

All of the following are examples of a behaviourally related sales objective,except:

The office memo read,"Sales representatives from British Columbia,Alberta,Manitoba and Saskatchewan will report directly to the regional manager." From this information,it would appear the company that issued the memo uses ______ organization for its salesforce.

The best organizational structure to use when different buying organizations have different needs is a _____ sales organization.

Which of the following activities is NOT a part of account management policies?

Rona,Home Depot,and Canadian Tire are considered major accounts of Char-Broil BBQs.As such,they dedicate a specific person to each one of these clients,as opposed to one for all three.This approach is referred to as:

The sales manager instructed the salesperson to "make 500 customer contacts between January 1^st and July 1^st." The sales manager used a(n) _____ sales objective.

A sales manager reviews the latest numbers and realizes that they have one salesperson for every 100 stores,when company policy states that they need one for every 75 stores.This company is using which method to determine its salesforce size?

Whirlpool has a sales manager for each of the provinces and territories.Whirlpool is using which salesforce organizational structure?

An effective sales plan objective should be:

A variation of the customer organization structure is:

Which of the following is NOT a variable used in the workload method of determining salesforce size?

Quiz 18: Personal Selling and Sales Management

The workload method of determining the size of a salesforce is a:

Policies that specify whom salespeople should contact,what kinds of selling and customer service activities should be engaged in,and how these activities should be carried out is referred to as:

Which salesforce organizational structure minimizes travel time,expenses,and duplication of effort?

Research indicates that 25 percent of North American salespeople engaged in _____ selling consider it unethical to explicitly ask customers about competitor strategies such as pricing practices,product development efforts,and trade and promotion programs.

Which of the following statements describes an advantage achieved when replacing independent sales agents with an internal salesforce?

All of the following are examples of a behaviourally related sales objective,except:

The office memo read,"Sales representatives from British Columbia,Alberta,Manitoba and Saskatchewan will report directly to the regional manager." From this information,it would appear the company that issued the memo uses ______ organization for its salesforce.

The best organizational structure to use when different buying organizations have different needs is a _____ sales organization.

Which of the following activities is NOT a part of account management policies?

Rona,Home Depot,and Canadian Tire are considered major accounts of Char-Broil BBQs.As such,they dedicate a specific person to each one of these clients,as opposed to one for all three.This approach is referred to as:

The sales manager instructed the salesperson to "make 500 customer contacts between January 1st and July 1st." The sales manager used a(n) _____ sales objective.

A sales manager reviews the latest numbers and realizes that they have one salesperson for every 100 stores,when company policy states that they need one for every 75 stores.This company is using which method to determine its salesforce size?

Whirlpool has a sales manager for each of the provinces and territories.Whirlpool is using which salesforce organizational structure?

An effective sales plan objective should be:

A variation of the customer organization structure is:

Which of the following is NOT a variable used in the workload method of determining salesforce size?

The sales manager instructed the salesperson to "make 500 customer contacts between January 1^st and July 1^st." The sales manager used a(n) _____ sales objective.