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SALES FORCE EXAM 1

In the text book's classification of types of sales jobs, which one of the following involves the most complex problem solving?

Consultative sellers

New business sellers

Sales support salespeople

Delivery sellers

Order takers

Customer Relationship Management (CRM) refers to a program designed to:

Establish new accounts

Manage the expenses of calling on customers

Help companies manage customer information

Manage the distribution of goods and services to customers

Minimize company liability with regard to the product it sells to customers

All of the following are common responsibilities of today's sales managers, EXCEPT:

Hiring and training

Territory design

Forecasting and budgeting

Performance evaluation

Product design

Today's sales manager must be sensitive to individual needs, caring more about communicating and coaching than:

Listening

Monitoring and controlling

People skills

Training

Strategy

Relationship selling is:

Focused on generating new accounts.

Building long term associations with a select number of carefully chosen accounts.

Building short term associations with a large number of accounts

Reminiscent of the back-slapping, joke-telling sales professional of days gone by.

Sony Electronics sells its products through its own Sony retail stores, through traditional retail stores (like Best Buy), and through its website sony.com. This most directly relates to:

Selling to executives

Globalization

CRM and SFA

Diversity

Complex channels of distribution

In the introduction to chapter 1, the textbook argues that it is critical for sales managers to hire salespeople who:

Deliver a great sales pitch

Understand the product

Are excellent closers

Work hard

Listen to customers

When using selling teams, firms tend to

Have more cross-functional communication

Eliminate middle management positions

Be flatter

All of these

None of these

If a salesperson can make an appointment with a C-level executive, the sales process tends to be:

Shorter

Longer

More complex

Diverse

Both B and C

Red Motley, a noted sales trainer and writer, once said, “Nothing happens until somebody…

Sells something

Goes to work

Smiles

Pays attention

Wines and dines the customer

A firm is least likely to sell through a wholesale distributor in situations where:

Buyers want local service facilities

Individual sales are small

Rapid delivery to customers is important

The buying process is very complex

Producer wants inventories located near the customers

A drawback to organizing the sales force in a geographical specialization is that:

There is usually no specialization of marketing activities

Leads to uneven coverage of the market

Results in more travel time for each sales rep

Customers may get called on by multiple reps from the same selling firm

All of these are drawbacks

Which of the following is the greatest limitation of a geographical territory type of sales organization?

The company must develop territorial sales executives.

Sales reps may not have the necessary expertise in all the products they sell.

It is difficult to set up sales territories.

It is a high cost type of organization.

Large customers cannot be serviced properly

When a company has its salespeople use virtual offices:

The company still has district offices

They are 'virtual' because salespeople are 'in' them wherever they are.

Sales manager must see their reps more frequently.

It creates higher selling costs due to the increase use of technology.

All of the above

With regard to the roles of the buying center, a purchasing agent is almost always the:

User

Gatekeeper

Decider

Buyer

Influencer

In addition to their large buying size, strategic accounts are likely to be differentiated from smaller accounts by their:

Desire to concentrate on domestic markets, to the exclusion of foreign markets.

Complex buying process

Desire to avoid dealing with a selling team - preferring instead to deal with one sales rep.

Preference for using a line organizational structure

None of the above

Which of the following factors account for the growing use of e-commerce and telemarketing as a form of sales force specialization?

Many marketers find that it increases the efficiency of their selling effort.

Many buyers prefer it over personal sales calls in certain selling situations.

Many buyers prefer it over personal sales calls in certain selling situations and many marketers find that it increases the efficiency of their selling effort.

It is especially adaptable to major-account selling

All of these contribute to the telemarketing's growth.

Team selling is not the best alternative in every situation because:

it does not lend itself to complex situations.

It tends to be expensive

Customers generally do not like it

There is no specialization of marketing activitiesa

All of these

An organization which has many cross-functional teams:

Is usually a vertically structured organization

Utilizes top-down control

Is a thing of the past

Does not believe that all marketing activities should be organizationally integrated and coordinated

Is usually a flatter organization is which coordination is across activities

When a sales force is organized by product lines:

A company cannot effectively use staff assistants who specialize by product line.

More than one sales rep may call in the same customer.

There is no opportunity for geographical specialization.

This is not a good structure for selling complex, technical products.

Usually each customer is called on by only one salesperson in the company.

"Someone with experience, position, or power who adopts you as a protege and helps you advance your career" best describes a:

Trainer

Mentor

Professor

Peer group

None of these

According to your text, the most commonly used interview is:

Totally structured

Non directed

Guided

Something between guided and non-directed

All of the following represent different types of mentoring programs except for:

Senior manager assigned to a sales rep in order to learn the corporate culture.

Senior executives help new salespeople climb the corporate ladder.

New hires selected to share the learning experience with other new hires.

Experienced co-workers chosen to guide and teach new reps the ropes.

Co-workers who are chosen to be advisors and/or trainers to new hires.

A problem with stress interviews is that:

They are too costly to conduct.

They are not valid predictors of performance.

They are illegal.

They are too difficult to conduct.

Applicants may get upset about having a stress interview.

A personal interview with a sales rep is a reliable predictor of success in the sales job because:

Interviews are the most widely used selection tool.

The sales job requires skills similar to those which are on display in the interview.

It enables the interviewer to get a "gut" reaction instead of a merely objective evaluation.

The sales manager is known to be a highly effective interviewer and can consistently react so as to affect applicants' responses.

Which of the following is not a selection tool?

Job advertisements

Application forms

Personal interviews

Employment tests

Assessment centers

As a general rule in an interview for a sales job, which of the following questions are you legally allowed to ask an applicant before hiring the person?

Are you married? (if it's a man, but not a woman.

Have you ever been arrested?

Why did you leave your prior job?

How is your health?

How old are you?

The most widely used of all sales selection tools is the:

Reference check

Psychological tests

Personal interview

Physical exam

Long application blank

Selection tools such as application blanks, interviews, and reference checks:

Are very useful in building a job description.

Can be bypassed by sales managers who are good at judging people.

Are used heavily in the recruiting stage of the selection process.

Are used to help measure each applicant against predetermined hiring qualifications.

None of these is true

When making a reference check, the key question which a sales manager should ask an applicant's former employer is:

Was he (or she) well liked by fellow workers?

Would you rehire him (or her)?

Was he (or she) a good worker?

Did he (or she) cause any problems in your firm?

Was he (or she) a good worker?

A recently promoted district sales manager was nominated by her company to attend an executive development program conducted by a well-known university. In Maslow's hierarchy of needs, this program is most closely related to the rep's need for:

Safety

Self-actualization

Belonging to a group

Love and acceptance

Physiological support

When planning and conducting a sales contest, management should:

Provide each salesperson with a reasonably equal chance to win.

Not give out cash as an award.

Use an outside consulting firm to conduct the contest, thus ensuring objectivity.

Run the contest for at least six months

Not build the contest around a theme

Specific performance objectives:

Are only needed when a rep misses quota

Are impossible to measure

Should be agreed upon by both the rep and manager

Are not a critical part of motivation

To satisfy a rep's motivation needs in contrast to her hygiene needs, a company might:

Provide her with a company car.

Provide her with a larger expense account.

Promote her into a more challenging job with greater responsibility.

Provide her with a larger, better-furnished office.

Increase her salary.

An unwanted side effect of a sales contest might be:

Boost morale

Motivate salespeople

Decline in post-contest sales

Increase sales

None of these

When salespeople attribute their failure to “bad luck,” they are likely to do which one of the following:

Increase effort

Avoid the situation

Seek help

Change strategy

When salespeople attribute a failure to “task difficulty,” they are likely to do one or more of the following except:

Seek help

Change strategy

Avoid the situation

Become frustrated

The number one cause of plateauing is:

Burnout

Lack of clear career path

Satisfaction with income levels

Boredom

None of these

Which of the following is one of the primary determinants of whether salespeople will cooperate with team selling efforts.

Financial incentives

Non financial incentives

Peer expectations

Belief in the goal of the team

None of these

Which of the following does not contribute to job enrichment?

Greater responsibility

Greater compensation

Variety in tasks

Greater authority

All of these contribute to job enrichment

Which of the following is the best reason for having no ceilings on a sales rep's potential earnings?

The more a rep earns, the more the company makes, especially when the company is paying with some type of commission plan.

A rep should receive full financial benefit from all windfall sales.

It is good for executives' morale

It will encourage sales managers to get out in the field and do more selling.

Good sales reps should always earn more than their boss.

In a sales force compensation plan, an example of indirect financial compensation is:

Christmas cash bonus

Salary payment

Paid vacation

Field supervision

Air conditioned office

A competitive limitation to the straight salary plan for compensating a sales force is that:

It offers little direct incentive for the salespeople.

Usually it is not simple to understand or economical to administer.

It usually is not workable when the job entails only missionary activities.

Management has more difficulty controlling the activities of the sales force.

It is the highest cost plan of all the major types.

Which of the following is a major trend today in sales force compensation?

The average level of pay is decreasing

Combination plans are declining in popularity

Fringe benefits are not being used as much as in the past

Straight commission plans are increasing as a percentage of total plans.

Companies are designing plans which stress customer satisfaction rather than straight sales volume.

A company will most likely use a straight salary plan for compensating its sales force when:

Part-time salespeople or independent contractors are used.

The firm is in a weak financial position

Very little non-selling, missionary type of work is needed.

Adequate field supervision is not feasible.

The sale involves a complex product, and requires lengthy periods of service and negotiations.

The sales compensation plan that typically provides maximum security and stability of earnings for most sales reps is:

Straight salary

Straight commission

Salary plus commission

Commission plus fringe benefits

Salary plus bonus

As one of its goals, a good plan for paying salespeople should:

Equate level and method of compensation.

Discourage a salesperson from spending time on non-selling activities.

Result in a sales rep selling the same dollar volume in each product line.

Help management to direct the activities of the sales force.

Equate efforts and rewards.

Experts recommend that the incentive potential for outstanding performance compared to average performance should be:

No more than a $5000 bonus for outstanding performance.

Slightly above that of average performance.

Twenty percent more than that of average performance.

No more than a $10,000 bonus for outstanding performance.

Three times that of average performance

Which of the following factors is least likely to influence the level of sales force compensation?

The level of pay of factory and office workers in the firm.

The firm's financial position

The method of compensation.

The age of the salespeople.

The size of the company

The most widely used pay plan for sales forces today is:

Salary plus some incentive feature

Straight commission

Salary plus fringe benefits (vacation, pension, etc)

Variable-percentage commission

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