Question 1

A company that operates a separate salesforce to call on government accounts is practicing strategic-account management.

Accepted Answer

A) True 
 B)False

Question 2

Use of this analytical method requires that account opportunity and competitive position be measured for each account:

Accepted Answer

A)  multiple factor model. 
B)  decision model. 
C)  historical model. 
D)  single factor model. 
E)  portfolio model. 
A)  multiple factor model. 
B)  decision model. 
C)  historical model. 
D)  single factor model. 
E)  portfolio model.

Question 3

A staff sales management position is

Accepted Answer

A)  less specialized than a line sales management position. 
B)  part of the direct management hierarchy within the sales organization. 
C)  responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.) and are not directly involved in sales generating activities. 
D)  directly involved in the sales generation activities of the firm. 
E)  directly responsible for a certain number of subordinates. 
A)  less specialized than a line sales management position. 
B)  part of the direct management hierarchy within the sales organization. 
C)  responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.) and are not directly involved in sales generating activities. 
D)  directly involved in the sales generation activities of the firm. 
E)  directly responsible for a certain number of subordinates.

Question 4

Because of the existence of salesforce turnover,

Accepted Answer

A)  firms should scale down their sales efforts to a level that the current salesforce can manage. 
B)  firms should redesign their compensation programs if they are losing substantial salespeople each year. 
C)  firms should have alternative sales allocation plans based on both a full strength and reduced salesforce. 
D)  firms should determine the desired salesforce size and then adjust this figure to reflect expected turnover. 
E)  firms should solicit their competitor's best salespeople to offset the opportunity costs of turnover. 
A)  firms should scale down their sales efforts to a level that the current salesforce can manage. 
B)  firms should redesign their compensation programs if they are losing substantial salespeople each year. 
C)  firms should have alternative sales allocation plans based on both a full strength and reduced salesforce. 
D)  firms should determine the desired salesforce size and then adjust this figure to reflect expected turnover. 
E)  firms should solicit their competitor's best salespeople to offset the opportunity costs of turnover.

Question 5

A sales organization with both a field and a telemarketing salesforce serving the same accounts to meet the needs of their customers is specializing by function.

Accepted Answer

A) True 
 B)False

Question 6

A sales organization with both a field and a telemarketing salesforce serving the same accounts is using market specialization to meet the needs of their customers.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements concerning the allocation of selling effort to accounts is false?

Accepted Answer

A)  It is one of the most important deployment decisions. 
B)  Salesforce size and territory decisions are based on this allocation decision. 
C)  Determining how much selling effort to allocate to individual accounts is an extremely important strategic decision. 
D)  Selling effort is a major determinant of account sales and a major element of account selling costs. 
E)  Territories are always assigned an equal number of sales calls. 
A)  It is one of the most important deployment decisions. 
B)  Salesforce size and territory decisions are based on this allocation decision. 
C)  Determining how much selling effort to allocate to individual accounts is an extremely important strategic decision. 
D)  Selling effort is a major determinant of account sales and a major element of account selling costs. 
E)  Territories are always assigned an equal number of sales calls.

Question 8

All of the following make salesforce size a difficult decision except

Accepted Answer

A)  sales 
B)  costs 
C)  productivity 
D)  profitability 
E)  turnover 
A)  sales 
B)  costs 
C)  productivity 
D)  profitability 
E)  turnover

Question 9

The breakdown method for determining salesforce size assumes that an accurate sales forecast is available.

Accepted Answer

A) True 
 B)False

Question 10

With market specialization, salespeople are assigned specific types of customers and are required to satisfy all needs of these customers.

Accepted Answer

A) True 
 B)False

Question 11

Sales organizations that use commission compensation plans and keep their fixed costs low would benefit most from the incremental approach to determining salesforce size.

Accepted Answer

A) True 
 B)False

Question 12

In a firm with geographic specialization, there is no attempt to specialize by product, market, or function.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding strategic accounts is false?

Accepted Answer

A)  For many firms, a large percentage of their total sales come from a relatively few accounts. 
B)  National account management focuses on meeting the needs of specific accounts with multiple locations throughout a large region or country. 
C)  All accounts that generate a large volume of sales should be identified as strategic accounts. 
D)  All firms must determine how to identify their strategic accounts and how to organize for effective strategic account coverage. 
E)  Many firms are expanding their strategic account management programs into international markets. 
A)  For many firms, a large percentage of their total sales come from a relatively few accounts. 
B)  National account management focuses on meeting the needs of specific accounts with multiple locations throughout a large region or country. 
C)  All accounts that generate a large volume of sales should be identified as strategic accounts. 
D)  All firms must determine how to identify their strategic accounts and how to organize for effective strategic account coverage. 
E)  Many firms are expanding their strategic account management programs into international markets.

Question 14

The profit maximization point is when

Accepted Answer

A)  the total possible sales effort has been achieved. 
B)  the marginal costs of adding a salesperson are equal to the marginal profits generated by that salesperson. 
C)  the marginal profits for a salesperson are maximized by assigning them to a certain territory. 
D)  the incremental profits of a salesperson provide a return over and above the cost to employ him or her. 
E)  the optimal account to salesperson ratio has been determined. 
A)  the total possible sales effort has been achieved. 
B)  the marginal costs of adding a salesperson are equal to the marginal profits generated by that salesperson. 
C)  the marginal profits for a salesperson are maximized by assigning them to a certain territory. 
D)  the incremental profits of a salesperson provide a return over and above the cost to employ him or her. 
E)  the optimal account to salesperson ratio has been determined.

Question 15

This approach to determining salesforce size cannot normally be used for a new salesforce because it requires historical data or accurate management judgments:

Accepted Answer

A)  incremental method. 
B)  decision method. 
C)  workload method. 
D)  productivity method. 
E)  breakdown method. 
A)  incremental method. 
B)  decision method. 
C)  workload method. 
D)  productivity method. 
E)  breakdown method.

Question 16

There is no single greater influence over the success of the sales organization than how the sales leadership creates the sales culture and environment for the people who will work for them.

Accepted Answer

A) True 
 B)False

Question 17

Low cost is an advantage of a geographic organization structure.

Accepted Answer

A) True 
 B)False

Question 18

Centralization is most appropriate when all of the following exist except

Accepted Answer

A)  environmental uncertainty is low. 
B)  environmental uncertainty is high. 
C)  sales organization activities are routine and repetitive. 
D)  performance emphasis is on effectiveness. 
A)  environmental uncertainty is low. 
B)  environmental uncertainty is high. 
C)  sales organization activities are routine and repetitive. 
D)  performance emphasis is on effectiveness.

Question 19

A company may want to ______________ the salesforce in situations where they need salespeople quickly, for short periods of time, for smaller customers, or for other reasons, but when they do not want to hire additional salespeople.

Accepted Answer

A)  source 
B)  outsource 
C)  source out 
D)  increase 
E)  motivate 
A)  source 
B)  outsource 
C)  source out 
D)  increase 
E)  motivate

Question 20

Cooper Tire and Rubber's use of separate salesforces for Cooper brands, Falls brands, and house brands of tires is an example of

Accepted Answer

A)  market specialization. 
B)  functional specialization 
C)  strategic account specialization. 
D)  geographical specialization. 
E)  product specialization. 
A)  market specialization. 
B)  functional specialization 
C)  strategic account specialization. 
D)  geographical specialization. 
E)  product specialization.

A company that operates a separate salesforce to call on government accounts is practicing strategic-account management.

Use of this analytical method requires that account opportunity and competitive position be measured for each account:

A staff sales management position is

Because of the existence of salesforce turnover,

A sales organization with both a field and a telemarketing salesforce serving the same accounts to meet the needs of their customers is specializing by function.

A sales organization with both a field and a telemarketing salesforce serving the same accounts is using market specialization to meet the needs of their customers.

Which of the following statements concerning the allocation of selling effort to accounts is false?

All of the following make salesforce size a difficult decision except

The breakdown method for determining salesforce size assumes that an accurate sales forecast is available.

With market specialization, salespeople are assigned specific types of customers and are required to satisfy all needs of these customers.

Sales organizations that use commission compensation plans and keep their fixed costs low would benefit most from the incremental approach to determining salesforce size.

In a firm with geographic specialization, there is no attempt to specialize by product, market, or function.

Which of the following statements regarding strategic accounts is false?

The profit maximization point is when

This approach to determining salesforce size cannot normally be used for a new salesforce because it requires historical data or accurate management judgments:

There is no single greater influence over the success of the sales organization than how the sales leadership creates the sales culture and environment for the people who will work for them.

Low cost is an advantage of a geographic organization structure.

Centralization is most appropriate when all of the following exist except

A company may want to ______________ the salesforce in situations where they need salespeople quickly, for short periods of time, for smaller customers, or for other reasons, but when they do not want to hire additional salespeople.

Cooper Tire and Rubber's use of separate salesforces for Cooper brands, Falls brands, and house brands of tires is an example of

Overview of Personal Selling

Organizational Strategies and the Sales Function

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Motivation and Reward System Management

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Developing Forecasts

Filters

Exam 3: Sales Organization Structure and Salesforce Deployment

A company that operates a separate salesforce to call on government accounts is practicing strategic-account management.

Use of this analytical method requires that account opportunity and competitive position be measured for each account:

A staff sales management position is

Because of the existence of salesforce turnover,

A sales organization with both a field and a telemarketing salesforce serving the same accounts to meet the needs of their customers is specializing by function.

A sales organization with both a field and a telemarketing salesforce serving the same accounts is using market specialization to meet the needs of their customers.

Which of the following statements concerning the allocation of selling effort to accounts is false?

All of the following make salesforce size a difficult decision except

The breakdown method for determining salesforce size assumes that an accurate sales forecast is available.

With market specialization, salespeople are assigned specific types of customers and are required to satisfy all needs of these customers.

Sales organizations that use commission compensation plans and keep their fixed costs low would benefit most from the incremental approach to determining salesforce size.

In a firm with geographic specialization, there is no attempt to specialize by product, market, or function.

Which of the following statements regarding strategic accounts is false?

The profit maximization point is when

This approach to determining salesforce size cannot normally be used for a new salesforce because it requires historical data or accurate management judgments:

There is no single greater influence over the success of the sales organization than how the sales leadership creates the sales culture and environment for the people who will work for them.

Low cost is an advantage of a geographic organization structure.

Centralization is most appropriate when all of the following exist except

A company may want to ______________ the salesforce in situations where they need salespeople quickly, for short periods of time, for smaller customers, or for other reasons, but when they do not want to hire additional salespeople.

Cooper Tire and Rubber's use of separate salesforces for Cooper brands, Falls brands, and house brands of tires is an example of

Overview of Personal Selling

Organizational Strategies and the Sales Function

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Motivation and Reward System Management

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Developing Forecasts

Filters