ch16Student: ___________________________________________________________________________

1. As Lillie Sanchez says in the opening profile "In sales you punch a time card and are given a to-do list daily that could consume 24 hours of your day."   True    False

 2. Internal partnerships should be dedicated to satisfying customers' needs.   

True    False 3. Oscar works for Putnam Company, a manufacturer of automated Christmas tree decorations. When he

presents his customer's position about Putnam's new credit terms to the corporate comptroller he is doing part of his job as a sales representative.   True    False

 4. Velma was in a hurry to see her sales manager, so she parked her car in front of her company's loading

dock and ran inside, ignoring the dock foreman's request to please move the car. In the long run her action may end up costing her money.   True    False

 5. It is the duty of salespeople to establish internal partnerships with warehouse and customer service

employees.   True    False

 6. When conflicts arise between a salesperson and an internal employee, personalizing the conflict will

make it easier to resolve.   True    False

 7. Few jobs require the boundary spanning coordination and management skill needed to effectively do a

sales job.   True    False

 8. What Monica tells the buyers at Forsyth Company about the performance of her company's computerized

lighting system could have a direct bearing on the amount of service work her company's technicians are called upon to do.   True    False

 9. According to the text, the company's chief executive officer determines how many salespeople are needed

to achieve the company's sales and customer satisfaction targets.   True    False

 10. With the growth in worldwide communications capabilities, statistics like those used to forecast sales in

the U.S. are now available in most of the world's nations.   True    False

 11. Arunden Garden Supply Company is offering a bonus to the members of its sales force who call on retail

outlets for the firm's gardening supplies if they spend less on expenses than is budgeted for them. This decision by the Arunden sales executive in charge may hurt sales performance.   True    False

 12. Kristen wants her sales force to concentrate its efforts on selling the most profitable accounts and

products, to make this happen she could institute profit quotas.   True    False

 13. Compensation often relates to quotas.   

True    False 

14. Straight commission is the preferred method of compensation when sales require long periods of negotiation involving several sales reps from the selling company.   True    False

 15. Kelly receives a draw each week, which is her straight salary with commissions as a bonus.   

True    False 16. Straight commission plans offer the greatest flexibility for motivating and controlling the activities of

salespeople.   True    False

 17. Ethical behavior not only applies to how salespeople treat customers, but it also applies to how employers

treat salespeople.   True    False

 18. If you are ever placed in a situation where you must act in a manner you consider unethical or lose your

job, the text recommends you rationalize the action by placing the responsibility for your behavior where it belongs--on your sales manager.   True    False

 19. Large customers are sometimes called key accounts.   

True    False 20. House account are handled by a sales or marketing executive in addition to their regular duties.   

True    False 21. 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.   True    False

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

selling team.   True    False

 23. 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:   A.  sales representative.B.  accounting employee.C.  collection agency enforcement officer.D.  chief finance officer (CEO).E. marketing communication specialist.

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

A. 

How well other employees of a firm assist one of the firm's salespeople may be a function of the relationship the salesperson has previously established with those people.

B. 

It is the duty of warehouse and customer service employees to establish internal partnerships with salespeople.

C. A salesperson may effectively employ the SPIN technique within his or her own company.D. 

Successful internal sellers can communicate their customers' sense of urgency to internal employees by relating it to the needs of the internal employee.

E. 

Personalizing conflict between a salesperson and an internal employee will make it more difficult to resolve.

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

A. Make selling issues personal, not professional.B. Be prepared to negotiate.C.  Ignore any personal needs of the internal customer.D. 

Never use any arguments to convince the internal customer he or she should support you even though the arguments may address the internal customer's needs.

E. Appeal to an objective that can be classed as the lowest common denominator. 

26. Most sales positions require boundary-spanning coordination and management skill. Which of the following corporate areas is important to salespeople?   A. marketingB. manufacturingC.  administrationD.  shippingE. all of the above

 27. 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?   A. marketingB. manufacturingC.  administrationD.  shippingE.  sales

 28. 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?   A. Pass the information along to the copier sales rep who calls on NevaFlat.B.  Ignore what the office manager said.C. Encourage the office manager to contact the company sales rep.D. 

Offer to make only a temporary repair on the copier since it will be replaced soon and could save NevaFlat some money.

E. 

Not worry about how well the copier gets fixed since NevaFlat will probably be getting rid of it in a few weeks.

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

A. manager at the top of the sales force hierarchyB. determines the company strategies with respect to new productsC. determines the size and organization of the sales forceD. makes decisions about how the sale force will accomplish corporate executivesE. audits manufacturing production quotas

 30. 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.   A.  cumulativeB. geographicC.  statisticalD. profit quotaE. bottom-up

 31. Bottom-up forecasting provides the advantage of:   

A. forecasting coming from people who are not responsible for achieving the sales figure forecast.B.  salespeople who tend to be optimistic and may overestimate sales.C.  allowing forecast information to come from the people closest to the market.D. 

salespeople who may deliberately underestimate sales if their bonuses depend on exceeding the sales forecast.

E. All of the above are advantages of bottom-up forecasting. 

32. Which of the following statements about forecasting in global markets is true?   A. The same forecasting techniques that work in the United States work around the world.B. The only reliable sales forecasting source in many countries is from the existing sales force.C. 

For international marketing forecasts, top-down sales forecasting is much more reliable than bottom-up forecasting.

D. 

Executive opinion is most often used in forecasting international sales and does not use any input from salespeople.

E. Computer simulations produce the most reliable sales forecasts for selling in international marketing. 33. The ___________ is ultimately responsible for how a salesperson's expense budget is spent.   

A.  field sales managerB.  salespersonC.  corporate accounting departmentD.  corporate finance departmentE. executive with overall responsibility for the sales force

 34. 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?   A.  It may reduce sales because he is reluctant to give out samples.B.  It may increase sales because customers respect his cost-saving techniques.C.  It may require Jorge to eliminate product demonstrations from his presentation.D. 

It may increase his sales because customers will not get to handle samples during the presentation and will pay closer attention to the presentation.

E. There is no way to predict what will happen. 35. A(n) _____ represents a quantitative minimum level of acceptable performance for a specific time

period.   A.  forecastB. budgetC. quotaD.  rationE. allowance

 36. 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:   A. disposals.B. quotas.C.  forecasts.D.  types of compensation.E.  rations.

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

A. profit quotaB.  revenue quotaC. gross margin quotaD.  sales quotaE. compensation quota

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

A. profit quotaB.  revenue quotaC. gross margin quotaD. unit quotaE. compensation quota

 

39. 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:   A.  activity quotas.B.  revenue quotas.C. gross margin quotas.D. unit quotas.E. compensation quotas.

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

A.  activity quotas.B.  revenue quotas.C. gross margin quotas.D. unit quotas.E. compensation quotas.

 41. _____ are more important in situations where the sales cycle is long and sales are few because what a

salesperson does can be observed more frequently than sales.   A. Activity quotasB. Revenue quotasC. Gross margin quotasD. Unit quotasE. Compensation quotas

 42. Salespeople want a compensation system that is all of the following EXCEPT:   

A. understandableB. one that bases rewards on effort and resultsC.  inexpensive to administerD.  equitableE. uniform within the company

 43. The portion of a sales rep's compensation that is based on his or her performance is called:   

A. bonus.B.  stipend.C.  contribution.D.  incentive pay.E.  salary.

 44. Alkara receives $200 per week plus 10 percent of the value of all sales she makes over $750 per week.

The 10 percent of sales over $750 Alkara receives is an example of:   A.  a gratuity.B.  a stipend.C.  a contribution.D.  incentive pay.E. a salary.

 45. When Zoe sells a case of Just Cut Christmas Tree Fragrance to one of her dealers, she receives a _____ of

$5.   A.  commissionB.  fair trade allowanceC.  salaryD. gratuityE. quota

 

46. An amount of money paid to a salesperson at regular intervals regardless of his or her performance is called their:   A. gratuity.B. donation.C.  contribution.D.  commission.E.  salary.

 47. Raven receives $200 per week plus 10 percent of the value of all sales she makes over $750 per week.

The $200 Raven receives is an example of a:   A. gratuity.B. donation.C.  contribution.D.  commission.E.  salary.

 48. The two most common types of incentives given to salespeople are:   

A. bonus and salary.B.  commission and salary.C. draw and commission.D. bonus and commission.E.  salary and fee.

 49. A _____ is an incentive paid for overall performance in one or more areas of performance.   

A.  commissionB. bonusC.  salaryD. gratuityE. quota

 50. Norma will receive an incentive payment of $150 if she adds 5 new customers to her account list this

month. The $150 payment is an example of a:   A.  commission.B. bonus.C.  salary.D. gratuity.E. quota.

 51. A salesperson who receives a fixed amount of money for working a specified time period is being

compensated using the _____ method.   A.  salary plus bonusB.  straight commissionC.  salary plus commissionD.  commission plus bonusE.  straight salary

 52. Chris receives $520 per week gross pay in his sales job at the Ford dealership. The amount never changes

even though some weeks he sells 5 or more vehicles and in other weeks he may sell none. As long as he works his 40 hours, Chris gets his $520. Chris is paid:   A.  a salary plus bonus.B. on straight commission.C.  a salary plus commission.D.  a commission plus bonus.E. on straight salary.

 

53. Straight salary plans are typically used when:   A.  advertising is more important to the sale than the efforts of the salesperson.B.  a team of salespeople is involved in the sale.C.  the sale requires a long period of negotiation.D.  individual results of sales team members cannot be measured.E. any of the above situations occur.

 54. Straight salary plans are used when:   

A. 

the other elements of the promotion mix are of less important to the sale than the efforts of the salesperson.

B.  the sale is completely handled by one salesperson.C.  the sale requires a long period of negotiation.D. 

the selling organization does not want to establish long-term selling relationships with buying companies.

E. any of the above situations occur. 55. A _____ plan pays a certain amount per sale, and the plan includes a base and a rate but does not include

a salary.   A.  combinationB. bonusC.  straight commissionD.  cause and effectE.  focus

 56. Marshall receives $175 per week plus 12 percent of the value of all sales revenues he makes over $850

per week. Sales revenue over $850 is an example of a:   A.  straight salary base.B. draw.C.  commission base.D.  commission rate.E. bonus point.

 57. The commission ___, which determines the amount a salesperson is paid, is expressed as a percentage of

the base.   A.  levelB. gradeC.  intervalD.  forceE.  rate

 58. Arnold receives $300 per week plus 14 percent of the value of all sales he makes over $650 per week.

Fourteen percent is an example of a:   A.  straight salary.B. draw.C.  commission base.D.  commission rate.E. bonus.

 59. A draw would most likely be given a salesperson who is asked to work under a(n):   

A.  straight salary plan.B. bonus plan.C.  incentive pay plan.D.  straight commission plan.E. an artistic plan.

 

60. Money paid to a straight commission salesperson against future earnings, which guarantees a stable cash flow is called a(n):   A.  transition.B.  indemnity.C. draw.D. bonus.E. assessment.

 61. Ed works for Lanier Business Products as a straight commission sales representative. In weeks when his

earned commission is less than $600, the company loans him enough money against future commissions to allow him to receive $600. In future weeks, when Ed earns more than $600, the extra is applied to repaying the loan. For Ed a guaranteed $600 is his:   A.  transition.B.  indemnity.C. draw.D. bonus.E. assessment.

 62. The major advantage of the straight commission compensation approach is it:   

A. provides reduced incentive.B.  ties compensation directly to performance.C.  encourages cooperation in preparing sales forecasts.D.  promotes company loyalty.E. all of the above

 63. A _____ resembles a commission, but the amount paid depends on total performance, not each individual

sale.   A. bonusB. drawC. markupD.  salaryE. combination plan

 64. Another name for a salary-plus-commission plan is the:   

A.  compound plan.B.  time and results plan.C. guaranteed draw plus bonus.D.  combination plan.E.  joint payment plan.

 65. Which of the following describes the major disadvantage associated with a combination compensation

plan?   A.  its inability to be used as a motivation toolB.  its complexityC.  it encourages building long-term relationships with customersD.  it encourages customer serviceE.  the way it gives the company more control over its sales force

 66. Management uses a combination plan when it wants to:   

A. motivate salespeople to increase revenues while continuing to perform nonselling activities.B.  emphasize that its sales force needs to concentrate on getting new and commissionable sales.C. make sure the sales force can easily understand exactly how it is being financially rewarded.D.  engage in transactional selling relationships.E. accomplish all of the above

 

67. What is the easiest method to evaluate the performance of salespeople?   A. measure customer service levelsB. measure product knowledgeC. measure total salesD. determine how quickly management requests for information are answeredE. 

measure how aware each stays of current relevant information about competition and business conditions

 68. Which of the following statements about sales training is true?   

A. Most experienced salespeople train others rather than need any training themselves.B. 

Most sales managers plan their sales training sessions for experienced sales reps using the model training guide published yearly in the August issue of Sales and Marketing Management.

C. Experienced salespeople find it easy to adapt new techniques they learn in training sessions.D. A field sales manager is rarely assigned to train a new salesperson.E. Experienced salespeople often view training sessions as wasting time they could be in the field selling.

 69. _____ are general management techniques that allow subordinates to bypass immediate managers

and take concerns to upper management when the subordinates perceive a lack of support from their immediate manager.   A. Line of command detoursB. Open-door policiesC. Circumvention strategiesD. Supervisory detoursE. Organizational review boards

 70. Drew believes his sales manager has instructed him to do something unethical, and after discussing

the practice with the manager, the instructions still stand. Drew's company encourages him to take his concerns to upper management because it has a(n) _____ policy.   A. no-holds-barredB. bottom-upC. open-airD. bare bonesE. open-door

 71. An ethics review board:   

A.  is a completely internal tool for auditing ethical behavior within an organization.B.  typically has no real effect on the ethics of an organization.C.  should not be expected to have any lasting effect on behavioral norms within the company.D. can investigate allegations of unethical behavior and serve as a sounding board for employees.E. 

should be composed solely of outside experts who are in no way financially involved with the organization.

 72. A group of experts from inside and outside the firm is employed by the Lion Ribbon Company to

investigate allegations of improper behavior and act as a sounding board for employees. The term for a group like this is a(n):   A.  reconsideration panel.B.  ethics review board.C.  evaluation board.D.  incentive panel.E.  summary judgment panel.

 73. Salespeople have the right to expect fair treatment from their company. In which area do salespeople

believe they are most likely to not be treated fairly by their company?   A.  territory allocationB. promotion policiesC. quota assignmentsD.  compensationE.  recruitment policies

 

74. To keep salaries paid to salespeople from becoming so high that they become demoralizing to company executives, some companies place upper limits on how much a sales rep can earn. This limit is called a:   A. buttress.B.  foundation.C. base.D.  cap.E. ground rule.

 75. When Wallace earned a commission that was greater than the salary of his company's senior vice-

president, he was pleased with his accomplishments. He was not so happy when the company told him that it had a _____ and that he would receive only $50,000 in commissions about 40 percent less than he had earned.   A. buttressB.  foundationC. baseD.  capE. ground rule

 76. Roger was distressed when he learned the company he was working for was making unethical use of

competitive intelligence it had gained by bribing a competitor's employee. Then Roger was told to use the information in his sales presentation. What can Roger do?   A. Agree to the demand but fail to carry it out.B. Quit his job and find another.C. Threaten to blow the whistle to the competitor.D. Refuse to comply with the request.E. do any of the above

 77. Candace was distressed to discover her company had paid several bribes to get a major contract. When

she voiced her concerns to management, she was told to keep her mouth shut if she wanted to keep her job. After several other attempts to get the unethical practices stopped, Candace gave the evidence she had of the corporation paying bribes to a local television station. Candace is a:   A. whispering willow.B. barrister.C. whistle blower.D. mouthpiece.E. chatterbox.

 78. When ordered to sell inferior training software to the U.S. government, an ethical salesperson should:   

A. do as his supervisor instructs him.B.  rationalize away the behavior by placing responsibility on the manager who gave the order.C.  try to fix the problem himself/herself.D.  refuse to comply with the request.E. do all or any of the above because he or she is an ethical salesperson.

 79. Which of the following is an appropriate strategy to use when the sales manager asks you (the

salesperson) to slip a purchasing agent a couple of hundred dollars in order to get him to put in a good word with the buying center for your company's new line of packaging equipment?   A.  Ignore the request.B. Appeal to a higher authority.C. Threaten to blow the whistle.D. Leave the organization.E. All of the above are appropriate strategies to use when handling unethical requests from managers.

 

80. NevaFlat Tire Company has divided the state of Tennessee into three territories―east, middle, and west. Salespeople are based in Knoxville, Nashville and Memphis to work these three territories. Based on this information, you can say with certainty these salespeople are:   A.  inside salespeople.B. paid a straight commission.C. paid a straight salary.D. geographic salespeople.E. product specialists.

 81. Neal works for Integrated Computer Systems Distributors (ICSD) as a field salesperson. In his territory,

he only calls on attorney's offices and physician's offices. This specialization has allowed him to develop a high level of expertise at selecting just the right combination of hardware and software to meet the unique needs of these offices. From this information, it sounds like Neal is part of a sales force that is organized according to:   A.  account types.B.  sales volume.C. geographic regions.D.  customer ethics.E. performance based criteria.

 82. When companies organize their customers based on size, large accounts are often called:   

A. pinnacle accounts.B. key accounts.C. pivot accounts.D.  stars.E. apex account.

 83. National account managers (NAM):   

A.  are often called strategic account managers (SAMs).B. manage large teams of salespeople.C.  are more like business executives than salespeople.D.  coordinate all of the salespeople who call on an account throughout the nation or the world.E. are accurately described by all of the above

 84. House accounts:   

A.  are synonymous with key accounts.B. have no "true" salesperson.C.  are typically not used by large retailers.D.  provide salespeople with a percentage-of-sales commission.E. are handled by field salespeople.

 85. How does a house account differ from other types of accounts?   

A. A house account is always unprofitable.B. A house account is usually too small for attention by a salesperson.C. No commission is paid on sales to the house account.D.  It is always served by the firm's telemarketing center.E. Commissions are split among all the salespeople who service the house account's various locations.

 86. General Electric has one sales force that sells electric transformers and similar equipment to electric

utility companies and another sales force for its line of consumer products. This is an example of a(n) _____ sales force organizational approach.   A. productB. geographicC. national/localD. globalE.  inbound/outbound

 

87. Alcoa Aluminum has one sales force to handle tubing and extruded products, another handles cans and rolled products. This is an example of a(n) _____ sales force organizational approach.   A.  inbound/outboundB.  local/nationalC.  inside/outsideD. geographicE. product

 88. Which of the following is an example of a field salesperson?   

A.  a retail clerk at a large department storeB.  a telemarketerC.  the person who takes your order at a drive-through windowD.  the salesperson who sells at the customer's place of businessE. all of the above

 89. Which of the following is an example of an inside salesperson?   

A.  the salesperson who calls on farmers' co-opsB.  the Avon distributor who comes to your home to sell you cosmeticsC.  the retail clerk at the local Ace Hardware storeD.  the pharmaceutical salesperson who regularly calls on physiciansE. the salesperson who trains a customer's employees on how to use the new copier he just sold them

 90. Troy is a telemarketer who works directly with Nadine, a field sales rep. Together they develop strategies

for handling accounts and address customer concerns. Troy is an example of:   A.  a missionary salesperson.B.  an inside/outside salesperson.C.  a field support rep.D.  an in-bound customer service rep.E. none of the above

 91. Field support reps:   

A.  are the same as customer service reps.B.  are in-bound salespeople who handle customer concerns.C. handle only key accounts.D. do no telemarketing.E. are accurately described by none of the above

 92. Customer service reps:   

A. 

are outside salespeople who are not concerned with setting up long-term relationships with their customers.

B. often cross-sell, upgrade, and seek reorders.C.  are salespeople who actually do the sales presentations for key account buyers.D.  are in-bound salespeople who handle customer concerns.E. are telemarketers who work with field salespeople.

 93. Which of the following is an example of an out-bound salesperson?   

A. LaVerne responds to a customer who telephoned with a billing complaint.B. Anet uses her telephone to solicit new business from a list of prospects.C. Orlando uses a toll-free number to take orders for Lands' End.D. Millie visits the office of a customer to discuss their needs.E. Morris takes a telephone order for a medium pizza.

 

94. Which of the following is an example of an in-bound salesperson?   A. Bettina makes cold calls for her field sales representative.B. Marjorie is a telemarketer who sells aluminum siding.C. 

Al telephones to see if the Yelverton family wants to renew its subscription to the Nashville Tennessean.

D. 

Burt receives a phone call from a customer of BellSouth who wants to know how to check to see if the phone line static comes from inside or outside her home.

E. Tracey waits at the office supply store for people to come in so she can tell them about what's on sale. 95. When a company uses a group of salespeople to support a single account, it is employing the _____

approach.   A.  crew sellingB. group empowermentC. multilevel marketingD.  team sellingE. party plan selling

 96. Team selling:   

A. uses an ABC analysis to determine how to allocate resources.B. has nothing in common with multilevel selling.C. uses a group of salespeople with various expertise to support a single account.D.  assigns a telemarketer to each field salesperson.E. 

permits members at various levels of the sales organization to call on their counterparts in the buying organization.

 97. When several individuals who work at various levels in a selling company call on their counterparts in a

buying organization, _____ is being used.   A.  crew sellingB. group empowermentC. multilevel marketingD.  team sellingE. multilevel selling

 98. ______ is an extension of team selling in which members at various levels of the sales organization call

on their counterparts in the buying organization.   A. Network sellingB. Multilevel marketingC. Hierarchical sellingD. Organizational structure sellingE. Multilevel selling

 99. In the opening profile about Lillie Sanchez of Phoenix International freight forwarder and customs broker

company what information about her customers does she share with the departments in her company?   

 

 

 

 100.What does it mean to sell internally?   

 

 

 

 

101.What are the seven principles of selling internally?   

 

 

 

 102.Adam is a new sales rep for Harris Pillow Company, a manufacturer of pillows. In addition to his sales

responsibilities, what areas of the company are likely to be important to him and how?   

 

 

 

 103.You are hired as the new sales executive for Harris Pillow Company. What do you expect your

responsibilities to include?   

 

 

 

 104.The sales manager for Arunden Industries has been told to cut costs. So, he decided to offer a bonus to

salespeople who spend less than his or her expense account allocation. What is wrong with this tactic?   

 

 

 

 105.When are straight salary compensation plans appropriate?   

 

 

 

 106.When do managers use combination plans?   

 

 

 

 

107.What is the difference between a bonus and a commission?   

 

 

 

 108.You have been asked by your sales manager to deliver a cash payment to the buyer (bribe) for one of

your major accounts. You are uncomfortable with doing this. What are your options?   

 

 

 

 109.What is the difference between a house account and a key account?   

 

 

 

 110.In "Selling in my Company" how did Speed-Trap assist the marketing manager in selling their software

to the leadership team?   

 

 

 

 111.How has technology facilitated the growth of sales teams?   

 

 

 

 112.In the opening profile what is the task Lillie Sanchez has seen most salespeople fail?   

 

 

 

 

113.In "Sometimes I'm Ashamed to be a Salesperson" what does the author say a "true" salesperson will do?   

 

 

 

 114.What forecasting method is a company using that simply adds together each salesperson's own forecast to

predict total company sales?   

 

 

 

 115.As a new salesperson, Marc will be working on commission. Even though he has yet to make his first

sales call, he has already been paid $300. How would you categorize this $300 payment?   

 

 

 

 116.Lee, the sales rep for GE CT scan systems, is required to call on 4 hospitals per month. What type of

quota does Lee have?   

 

 

 

 117.Ryan receives an extra payment at the end of the quarter based on his sales performance. What type of

compensation has he received?   

 

 

 

 118.Which type of compensation plan provides the greatest flexibility for motivating and controlling the

activities of salespeople?   

 

 

 

 

119.What is the primary disadvantage inherent in the salary-plus commission plan?   

 

 

 

 120.What is the easiest method for evaluating sales performance?   

 

 

 

 121.Marie has been hired to sell sound systems for arenas, stadiums, and other large venues. During her

orientation, she was told that if her manager was doing something that seemed unethical to Marie or simply made her uncomfortable, she could take her problem to upper management and expect them to listen to her concerns. What kind of a policy is Marie's new company using in this example?   

 

 

 

 122.What is another name for a national account manager (NAM)?   

 

 

 

 123.Who typically handles house accounts?   

 

 

 

 124.List three kinds of telemarketing salespeople.   

 

 

 

 

125.Of the different types of telemarketing salespeople, which type is classified as an in-bound salesperson?   

 

 

 

 126.What is the term used to describe a selling team when various levels of a sales organization call on their

counterparts in the buying organization?   

 

 

 

 127.In "Making the Most of Sales Technology" what is the major benefit of collaborative technology?   

 

 

 

 

ch16 Key  1. (p. 436) FALSE 2. (p. 436) TRUE 3. (p. 436) TRUE 4. (p. 437) TRUE 5. (p. 437) TRUE 6. (p. 437) FALSE 7. (p. 437) TRUE 8. (p. 439) TRUE 9. (p. 443) FALSE 10. (p. 443) FALSE 11. (p. 443) TRUE 12. (p. 444) TRUE 13. (p. 444) TRUE 14. (p. 445) FALSE 15. (p. 445) FALSE 16. (p. 445) FALSE 17. (p. 449) TRUE 18. (p. 449) FALSE 19. (p. 452) TRUE 20. (p. 452) TRUE 21. (p. 454) TRUE 22. (p. 455) TRUE 23. (p. 436) A 24. (p. 436) B 25. (p. 436) B 26. (p. 440) E 27. (p. 440) C 28. (p. 441) A 29. (p. 442) E 30. (p. 443) E 31. (p. 443) C 32. (p. 443) B 33. (p. 443) B 34. (p. 444) A 35. (p. 444) C 36. (p. 444) B 

37. (p. 444) D 38. (p. 444) B 39. (p. 444) A 40. (p. 444) A 41. (p. 444) A 42. (p. 444) C 43. (p. 445) D 44. (p. 445) D 45. (p. 445) A 46. (p. 445) E 47. (p. 445) E 48. (p. 445) D 49. (p. 445) B 50. (p. 445) B 51. (p. 445) E 52. (p. 445) E 53. (p. 445) E 54. (p. 445) C 55. (p. 445) C 56. (p. 445) C 57. (p. 446) E 58. (p. 446) D 59. (p. 446) D 60. (p. 446) C 61. (p. 446) C 62. (p. 446) B 63. (p. 446) A 64. (p. 447) D 65. (p. 447) B 66. (p. 447) A 67. (p. 447) C 68. (p. 448) E 69. (p. 449) B 70. (p. 449) E 71. (p. 449) D 72. (p. 449) B 73. (p. 449) D 74. (p. 449) D 

75. (p. 449) D 76. (p. 449) E 77. (p. 450) C 78. (p. 450) D 79. (p. 450) E 80. (p. 451) D 81. (p. 451) A 82. (p. 452) B 83. (p. 452) E 84. (p. 452) B 85. (p. 452) C 86. (p. 452) A 87. (p. 452) E 88. (p. 454) D 89. (p. 454) C 90. (p. 454) C 91. (p. 454) E 92. (p. 454) D 93. (p. 454) B 94. (p. 454) D 95. (p. 455) D 96. (p. 455) C 97. (p. 455) E 98. (p. 455) E 99. (p. 436) She makes sure all departments in her firm have an understanding of the company, the client's needs, and any specific handling instructions. 100. (p. 436-437) Selling internally means to establish the same types of partnerships with the personnel with the organization as sales people have with their customers. Salespeople need to invest the time necessary to understand the needs of the people they work with. -Be prepared to negotiate-Never personalize issues-Increase the internal customer's sense of urgency-Address internal customer's needs-Understand the personal and professional needs-Appeal to a higher objective-Accept responsibility101. (p. 439) The seven principles are:

 

102. (p. 440-442) In general all areas are important but specific areas include manufacturing, administration, shipping, customer service, and marketing. Manufacturing is important in order to understand the product and to build relationships with the personnel who make the products. Administration addresses credit, billing, and compensation. Understanding these functions allow a salesperson to accurately convey orders, facilitate credit sales, and review compensation. Shipping is critical to supporting the delivery commitments made by salesperson to the customer. Customer service supports the sales relationship and can be a source of information regarding potential problems or miscommunications. Marketing should be coordinated with sales in order to provide the right product to the customer in the most efficient manner. 103. (p. 442-443) First, you will determine the size and organization of the sales force. Second, you will probably be responsible for forecasting sales. Third, you will oversee expense budgets of your salespeople. Fourth, you will determine the compensation system and set quotas. Lastly, you will review compensation and evaluate salespeople's performance. 104. (p. 445) Such a bonus might encourage the salesperson to under spend, which could hurt sales performance. For example, a salesperson might decide to not give out samples so that a customer could see how the product worked. As a result, the customer may decide not to buy. 105. (p. 445) Straight salary plans are used when a team of salespeople is involved in the sale, the sale requires a long period of negotiation, individual results of sales team members cannot be measured, and advertising is more important to the sale than the efforts of the salesperson. -place less emphasis on getting new commissionable sales.-develop long-term customer relationships.-motivate salespeople while continuing to perform nonselling activities.106. (p. 447) Combination plans are used when management wants to:

 107. (p. 445) Under a bonus plan, salespeople receive a lump-sum payment for a certain level of performance over a specified time. Bonuses resemble commissions, but the amount paid in a bonus depends on total performance, not on each individual sale. Bonuses are always used in conjunction with salary and/or commissions in combination plans. 108. (p. 450) Your options include leaving the organization, negotiating an alternative, blowing the whistle, threatening to blow the whistle, appealing to a higher authority, agree to do it but then not carry it out, refuse to comply, or ignore the request. 109. (p. 452) A house account is one handled by a sales or marketing executive in addition to their regular duties, and no commission is paid for sales to that account. A key account is a major, large customer, who may be assigned a salesperson who only covers the key account. 110. (p. 453) Speed-Trap recognized the marketing manager understood their product so they communicated bi-weekly to discuss how to gain approval, developed a presentation based on material provided by the marketing manager and coordinated the process with another critical player, Teradata whose data interface would be essential to the proposal. 111. (p. 455) Technology provides quick communication to anyone in the world. Companies can use CRM systems, to give every member of the sales team access to all the same customer records. Technology also enables communication among people in different time zones, as conversations can be conducted via e-mail over a period of days, with none of the parties required to be in the office or on the phone at the same time. 112. (p. 436) Managing your priorities is the number one task where most people fail. 113. (p. 438) True professionals take pride in what they do, execute with precision, and always present themselves and their companies professionally. 114. (p. 443) bottom-up 115. (p. 446) It's a draw, a loan that guarantees a stable cash flow. 116. (p. 444) an activity quota 117. (p. 445) a bonus 118. (p. 447) combination plans or salary-plus-commission-plans 119. (p. 445) The main disadvantage of the combination plan is its complexity. 120. (p. 445) The total amount of sales the salesperson makes 121. (p. 449) an open-door policy 122. (p. 452) a strategic account manager (SAM) 123. (p. 452) sales or marketing executives 124. (p. 454) account manager, field support rep, and customer service rep 125. (p. 454) customer service rep 126. (p. 455) multilevel selling 

127. (p. 457) to increase sales productivity through collaborative technology. 

ch16 Summary  Category # of Question

s

Castleberry - Chapter 16 127

Difficulty: Easy 60

Difficulty: Hard 12

Difficulty: Medium 55