Question 1

Which of the following issues often make getting the sales force size right a difficult task:

Accepted Answer

A)  sales are not solely a function of current selling effort. 
B)  sales force frustration with a changing customer base. 
C)  customer frustration with seeing new salespeople. 
D)  poor or biased sales forecasts. 
E)  all of the above make the task difficult. 
A)  sales are not solely a function of current selling effort. 
B)  sales force frustration with a changing customer base. 
C)  customer frustration with seeing new salespeople. 
D)  poor or biased sales forecasts. 
E)  all of the above make the task difficult.

Question 2

The Customer-Product matrix is a budgeting tool for analyzing the source of anticipated revenues.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following are indicators that a sales force might be undersized:

Accepted Answer

A)  key customers wonder where your salesperson is. 
B)  current customers are considering switching suppliers. 
C)  new customer development is down. 
D)  only a and b above. 
E)  a, b, and c are all indicators of an undersized sales force. 
A)  key customers wonder where your salesperson is. 
B)  current customers are considering switching suppliers. 
C)  new customer development is down. 
D)  only a and b above. 
E)  a, b, and c are all indicators of an undersized sales force.

Question 4

According to the customer-product matrix for sales budget planning, significant incentive compensation opportunities are most likely to be recommended for which quadrant?

Accepted Answer

A)  "Convergence Selling" (new customers-current products). 
B)  "New Business Development" (new customers-new products). 
C)  "Account Management" (current customers-current products). 
D)  "Leverage Selling" (current customers-new products). 
E)  None of the above quadrants is likely to have the a more significant incentive compensation opportunity than the others. 
A)  "Convergence Selling" (new customers-current products). 
B)  "New Business Development" (new customers-new products). 
C)  "Account Management" (current customers-current products). 
D)  "Leverage Selling" (current customers-new products). 
E)  None of the above quadrants is likely to have the a more significant incentive compensation opportunity than the others.

Question 5

When sales carryover effects are high, then there will likely be a large sales decrease if a sales force's size is reduced.

Accepted Answer

A) True 
 B)False

Question 6

Your sales force is probably too large if the number of new customer sales is down.

Accepted Answer

A) True 
 B)False

Question 7

A sales forecast is usually made prior to estimating selling costs as a percent of sales.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are indicators that a sales force might be too large:

Accepted Answer

A)  key customers wonder where your salesperson is. 
B)  current customers are considering switching suppliers. 
C)  new customer development is down. 
D)  your salespeople don't seem sufficiently stimulated. 
E)  all the above are all indicators of too large a sales force. 
A)  key customers wonder where your salesperson is. 
B)  current customers are considering switching suppliers. 
C)  new customer development is down. 
D)  your salespeople don't seem sufficiently stimulated. 
E)  all the above are all indicators of too large a sales force.

Question 9

A drawback to the percentage of sales approach is that budget allocation for selling expenses tends to change in the same direction as sales.

Accepted Answer

A) True 
 B)False

Question 10

The percentage of sales method of establishing sales force size is based on what managers think sales force costs should be as a proportion of planned revenues.

Accepted Answer

A) True 
 B)False

Question 11

The company wants to spend 8% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $80,000 per person, and 20% of the sales force budget is for management and other costs. Using the percent of sales method, calculate the sales force budget, if sales are forecasted to be $3.2 million.

Accepted Answer

A)  $246,000 
B)  $204,800 
C)  $196,800 
D)  $192,800 
E)  none of the above 
A)  $246,000 
B)  $204,800 
C)  $196,800 
D)  $192,800 
E)  none of the above

Question 12

The phenomenon in which a portion of current sales is a function of customer relationships established through prior selling efforts is known as:

Accepted Answer

A)  sales carryover. 
B)  customer relationship management. 
C)  sales workload analysis. 
D)  current customer development. 
E)  functional customer relationships. 
A)  sales carryover. 
B)  customer relationship management. 
C)  sales workload analysis. 
D)  current customer development. 
E)  functional customer relationships.

Question 13

A good sign that your sales force may be too large is when your finance department mentions that your sales force costs are out of line with industry norms.

Accepted Answer

A) True 
 B)False

Question 14

The sales force sizing approach that examines the total amount of sales time needed to service all customers is known as the

Accepted Answer

A)  workload approach 
B)  sales effort approach 
C)  sales response approach 
D)  percent of sales approach 
E)  none of the above 
A)  workload approach 
B)  sales effort approach 
C)  sales response approach 
D)  percent of sales approach 
E)  none of the above

Question 15

There is likely to be a high sales carryover when:

Accepted Answer

A)  the product is mature. 
B)  there is strong brand equity. 
C)  the product is identical to a competitor's. 
D)  only a and b above. 
E)  a, b, and c are all indicators of high sales carryover. 
A)  the product is mature. 
B)  there is strong brand equity. 
C)  the product is identical to a competitor's. 
D)  only a and b above. 
E)  a, b, and c are all indicators of high sales carryover.

Question 16

According to your text, the sales force size decision is closely related to sales force automation and other sales force productivity enhancements decisions.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following are indicators that a low level of sales carryover is likely:

Accepted Answer

A)  the product is mature. 
B)  the product has strong brand equity. 
C)  the product is identical to a competitor's 
D)  only a and b above. 
E)  a, b, and c are all indicators of a low level of sales carryover. 
A)  the product is mature. 
B)  the product has strong brand equity. 
C)  the product is identical to a competitor's 
D)  only a and b above. 
E)  a, b, and c are all indicators of a low level of sales carryover.

Question 18

Budget administration has been significantly simplified with the development of:

Accepted Answer

A)  electronic spreadsheets. 
B)  major account programs. 
C)  TQM. 
D)  benchmarking. 
E)  reengineering. 
A)  electronic spreadsheets. 
B)  major account programs. 
C)  TQM. 
D)  benchmarking. 
E)  reengineering.

Question 19

According to the customer-product matrix for sales budget planning, which quadrant is most likely to highest training and promotion expenses?

Accepted Answer

A)  "Convergence Selling" (new customers-current products). 
B)  "New Business Development" (new customers-new products). 
C)  "Account Management" (current customers-current products). 
D)  "Leverage Selling" (current customers-new products). 
E)  None of the above is likely to have the highest training and promotion expenses. 
A)  "Convergence Selling" (new customers-current products). 
B)  "New Business Development" (new customers-new products). 
C)  "Account Management" (current customers-current products). 
D)  "Leverage Selling" (current customers-new products). 
E)  None of the above is likely to have the highest training and promotion expenses.

Question 20

Which of the following is true regarding the profit impact of sales force size:

Accepted Answer

A)  the sales force is a cost generator. 
B)  keeping sales costs within budget will ensure maximum profits. 
C)  average profits per salesperson will generally decrease when new salespeople are added. 
D)  only a and c above are true. 
E)  a, b, and c above are all true. 
A)  the sales force is a cost generator. 
B)  keeping sales costs within budget will ensure maximum profits. 
C)  average profits per salesperson will generally decrease when new salespeople are added. 
D)  only a and c above are true. 
E)  a, b, and c above are all true.

Which of the following issues often make getting the sales force size right a difficult task:

The Customer-Product matrix is a budgeting tool for analyzing the source of anticipated revenues.

Which of the following are indicators that a sales force might be undersized:

According to the customer-product matrix for sales budget planning, significant incentive compensation opportunities are most likely to be recommended for which quadrant?

When sales carryover effects are high, then there will likely be a large sales decrease if a sales force's size is reduced.

Your sales force is probably too large if the number of new customer sales is down.

A sales forecast is usually made prior to estimating selling costs as a percent of sales.

Which of the following are indicators that a sales force might be too large:

A drawback to the percentage of sales approach is that budget allocation for selling expenses tends to change in the same direction as sales.

The percentage of sales method of establishing sales force size is based on what managers think sales force costs should be as a proportion of planned revenues.

The phenomenon in which a portion of current sales is a function of customer relationships established through prior selling efforts is known as:

A good sign that your sales force may be too large is when your finance department mentions that your sales force costs are out of line with industry norms.

The sales force sizing approach that examines the total amount of sales time needed to service all customers is known as the

There is likely to be a high sales carryover when:

According to your text, the sales force size decision is closely related to sales force automation and other sales force productivity enhancements decisions.

Which of the following are indicators that a low level of sales carryover is likely:

Budget administration has been significantly simplified with the development of:

According to the customer-product matrix for sales budget planning, which quadrant is most likely to highest training and promotion expenses?

Which of the following is true regarding the profit impact of sales force size:

Introduction to Selling and Sales Management

Strategy and Sales Program Planning

Sales Opportunity Management

Account Relationship Management

Customer Interaction Management

Sales Force Organization

Recruiting and Selecting Personnel

Training

Leadership

Ethical Leadership

Motivating Salespeople

Compensating Salespeople

Evaluating Sales Force Performance

Estimating Potentials and Forecasting Sales

Territory Design

Filters

Exam 16: Sales Force Investment and Budgeting

Which of the following issues often make getting the sales force size right a difficult task:

The Customer-Product matrix is a budgeting tool for analyzing the source of anticipated revenues.

Which of the following are indicators that a sales force might be undersized:

According to the customer-product matrix for sales budget planning, significant incentive compensation opportunities are most likely to be recommended for which quadrant?

When sales carryover effects are high, then there will likely be a large sales decrease if a sales force's size is reduced.

Your sales force is probably too large if the number of new customer sales is down.

A sales forecast is usually made prior to estimating selling costs as a percent of sales.

Which of the following are indicators that a sales force might be too large:

A drawback to the percentage of sales approach is that budget allocation for selling expenses tends to change in the same direction as sales.

The percentage of sales method of establishing sales force size is based on what managers think sales force costs should be as a proportion of planned revenues.

The phenomenon in which a portion of current sales is a function of customer relationships established through prior selling efforts is known as:

A good sign that your sales force may be too large is when your finance department mentions that your sales force costs are out of line with industry norms.

The sales force sizing approach that examines the total amount of sales time needed to service all customers is known as the

There is likely to be a high sales carryover when:

According to your text, the sales force size decision is closely related to sales force automation and other sales force productivity enhancements decisions.

Which of the following are indicators that a low level of sales carryover is likely:

Budget administration has been significantly simplified with the development of:

According to the customer-product matrix for sales budget planning, which quadrant is most likely to highest training and promotion expenses?

Which of the following is true regarding the profit impact of sales force size:

Introduction to Selling and Sales Management

Strategy and Sales Program Planning

Sales Opportunity Management

Account Relationship Management

Customer Interaction Management

Sales Force Organization

Recruiting and Selecting Personnel

Training

Leadership

Ethical Leadership

Motivating Salespeople

Compensating Salespeople

Evaluating Sales Force Performance

Estimating Potentials and Forecasting Sales

Territory Design

Filters