Ch14 Time, Territory, and Self-Management Full Test Bank

ABC's of Relationship Selling, 13e (Futrell)

Chapter 14 Time, Territory, and Self-Management: Keys to Success

1) According to the Core Principles of Professional Selling, how you spend your time greatly influences your level of sales success.

2) As per the text, one of the time management skills that can help sales professionals in achieving success is spending time on low-priority tasks.

3) As per the text, one of the time management skills that can help sales professionals in achieving success is having a systematic account for the outcomes you aim to achieve before allocating time to achieve these outcomes.

4) The difference between cost of goods sold and sales is the net profit on sales revenue.

5) Break-even volume per hour = Cost per hour/Gross profit percentage

6) The break-even point for a territory for a month is $1,000. If the salesperson generates $1,000 of profit the territory's direct costs are covered.

7) A professional salesperson should not study product materials during the waiting time at the customer's office.

8) Research has shown that a business lunch rarely leads to a sale.

9) Although it is useful to have lunch with a prospect or a client, dining alone can be very productive for a professional salesperson.

10) A sales quota comprises a group of customers or a geographical area assigned to a salesperson.

11) Sales territories can be used to obtain thorough coverage of the market.

12) Fewer overnight trips and more regular contact with productive customers can reduce sales expenses as well as improve a firm's sales-cost ratio.

13) Generally, it is a good idea to maximize the difference between the salesperson and the customer being served to keep sales presentations fresh and interesting.

14) All companies segment their markets into sales territories.

15) Segmenting the market into territories can be very effective in industries like insurance and retail.

16) A market with homogeneous needs and characteristics would best be suited for an undifferentiated market approach.

17) In an undifferentiated selling approach, the salesperson uses multiple selling strategies in the same market.

18) The 80/20 principle is a time management concept that favors a salesperson putting 80 percent of his time on planning and 20 percent on selling.

19) It is wise to use the account segmentation approach in a market with heterogeneous needs.

20) Multivariable account segmentation involves the use of one or more criterion to characterize the organization's account.

21) The majority of sales force resources should be invested in key accounts.

22) Sales call allocation is the time spent by the salesperson calling on accounts excluding the traveling time.

23) Nonselling time is a factor to be considered in sales call allocation.

24) A salesperson has reached the most productive number of calls to make on an account when further increases in calls increase sales expenses.

25) The term sales response function of a customer refers to the relationship between sales volume and number of prospects in a territory.

26) Before making a sales call, the salesperson should first qualify an account, which means the account should meet the firm's credit standards.

27) Scheduling refers to the travel pattern the salesperson uses in working his or her territory.

28) Routing refers to the travel pattern the salesperson uses in working his territory.

29) Strict formal routing procedures are designed by firms that want to improve territory coverage and minimize wasted time.

30) Salespeople usually file routing reports weekly.

31) Territorial evaluation is the comparison of performance standards for the individual territory with the salesperson's actual performance.

32) Sales managers monitor the frequency and time intervals between sales calls for each salesperson.

33) Salespeople should not rely on technology for any of the sales activities.

34) Salespeople use Territory Analysis software application to upload customers' list into the system and analyze data based on purchase volume, purchase types and, purchase frequency.

35) Your ability to understand what's causing your emotion is part of your emotional intelligence.

36) Effective salespeople remember that building and maintaining relationships does not necessarily require the mutual investment of resources.

37) Sales managers and executives hope that their emerging salespeople develop a certain aura that the salesperson is perceived as possessing a quality of authority.

38) Many companies concentrate on improving the way their salespeople manage their time because:

A) the cost of direct selling is rapidly decreasing.

B) the time available for face-to-face customer contact is increasing.

C) there is reduced emphasis on profitability.

D) time is always limited.

E) they want to increase the salesperson's responsibilities.

39) ________ is a quantitative technique for determining the level of sales at which total revenues equal total costs.

A) The sales response function

B) Equilibrium analysis

C) Profit allocation

D) Break-even analysis

E) The ELMS approach

40) The total fixed cost for Harold, a salesperson, is $20,000 per month. Harold generates 25% gross profit on the products he sells. If Harold sells $200,000 worth of merchandise in six months, which of the following statements is true?

A) By having Harold, the company incurred a direct loss of $70,000.

B) Harold generated $120,000 in gross profit for the company.

C) Harold sold $120,000 worth of goods, which equals the BEP.

D) By having Harold, the company incurred a direct loss of $280,000.

E) Harold generated $30,000 gross profit for the company.

41) Gross profit is the difference between:

A) sales revenue and costs of goods sold.

B) sales revenue and fixed costs of the salesperson.

C) sales revenue and costs of goods sold including taxes.

D) net profit and transportation cost.

E) total sales and manufacturing cost.

42) Based on the following data, calculate the breakeven point in dollars:

Sales = $400,000

Gross Profit = $100,000

Transportation = $8,000

Cost of Goods Sold = $280,000

Expenses = $10,000

Salary = $40,000

A) $96,667

B) $133,333

C) $166,000

D) $232,000

E) Cannot be calculated with the information provided

43) Based on the following data, calculate the breakeven point.

Sales = $500,000

Transportation = $10,000

Gross Profit = $200,000

Lodging and Meals = $8,000

Salary = $37,000

Other expenses = $5,000

A) $150,000

B) $130,000

C) $100,0003

D) $86,667

E) Cannot be calculated with the information given

44) Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Calculate his gross profit percentage.

A) 11.9%

B) 20.3%

C) 25.6%

D) 34.3%

E) Cannot be determined from information given

45) Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Mark's break-even point in terms of total sales is approximately:

A) $198,000

B) $218,600

C) $224,000

D) $293,000

E) $315,200

46) Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Mack works an average of 240 days a year and 8 hours each day. Mack makes an average of five sales calls per day. Mack's break-even volume per hour is approximately:

A) $119.00

B) $153.00

C) $171.00

D) $256.00

E) $392.00

47) Which of the following is used to calculate the costs and revenues of sales territories?

A) ELMS system

B) Break-even analysis

C) Multivariate territorial analysis

D) Key stoning

E) SWOT analysis

48) The annual break-even point of a salesperson is $2,000,000 and his per month salary is $10,000. This means that:

A) the salesperson should generate $2,000,000 gross profit every year to cover the costs.

B) the salesperson should generate sales worth $2,000,000 every year to cover the costs.

C) the salesperson should generate $2,000,000 net profit every year to cover the costs.

D) the salesperson should generate gross profit worth $80,000 to cover the costs.

E) the salesperson is generating $80,000 profit compared to his fixed cost.

49) Which of the following activities is NOT an appropriate thing to do while you, the salesperson, are waiting to see a buyer?

A) Asking the secretary how soon the buyer will be available.

B) Reading a magazine to clear your head and relax.

C) Organizing materials for the sales presentation.

D) Completing call reports that you will send to your boss.

E) Studying promotional material prepared by your marketing department.

50) Which of the following rules should a salesperson adopt in order to have more productive lunch periods?

A) Monitor the time to avoid monopolizing too much of the buyer's day.

B) Have an alcoholic drink only if the client makes the suggestion.

C) Conduct part of the sales presentation during lunch using a laptop.

D) When lunching alone, use the time to read something relaxing.

E) Offer to purchase the customer a lunchtime cocktail or dessert.

51) Which of the following would be a good rule for salespeople to follow in handling their paperwork?

A) Avoid paperwork so that more time is available for sales presentations.

B) Politely interrupt a sales interview to get paperwork finished.

C) Finish paperwork during non-selling times and evenings.

D) Manage paperwork on a once-a-month basis.

E) Handle paperwork throughout the day.

52) Which one of the following is NOT a time management skill that can help sales professionals in achieving success:

A) Be selective in prioritizing time and spend time on high-priority tasks

B) Have a better sense of the time needed to complete tasks

C) Avoid overcommitting to nonessential tasks at the expense of core work tasks.

D) Develop an effective plan to allocating efforts across goals, activities, and time periods.

E) Avoid maintaining the account for the outcomes you aim to achieve before allocating time to achieve these outcomes.

53) Which one of the following is a time management skill that can help sales professionals in achieving success:

A) Try not to be selective in prioritizing time and spend time on high-priority tasks.

B) Do not worry about of the time needed to complete tasks.

C) Always overcommit to nonessential tasks at the expense of core work tasks.

D) Avoid following a plan to allocate efforts across goals, activities, and time periods.

E) Always maintain a systematic account for the outcomes you aim to achieve before allocating time to achieve these outcomes.

54) A(n) ________ comprises a group of customers or a geographical area assigned to a salesperson.

A) market development area

B) MSA

C) sales territory

D) market potential

E) sales quota

55) Which of the following statements about sales territories is true?

A) A sales territory contains only one key account.

B) Sales territories always have geographic boundaries.

C) Sales territories are used to maximize the sales potential of a market.

D) A sales territory guarantees that a company reaches the breakeven point.

E) Sales territories are used to evaluate the effectiveness of the marketing mix.

56) Which of the following statements about sales territories is INCORRECT?

A) A sales territory contains present customers.

B) Geographic boundaries define a sales territory.

C) Firms use sales territories to evaluate performance.

D) A sales territory typically contains potential customers.

E) A sales territory comprises a geographic area assigned to a salesperson.

57) Companies establish sales territories to accomplish all of the following objectives EXCEPT to:

A) set responsibilities for salespeople.

B) avoid duplicating sales efforts.

C) control corporate credit ratings.

D) create goodwill with customers.

E) meet sales goals.

58) How do sales territories benefit a company's customers?

A) Monitors sales team salaries and expenses

B) Links organizational vision with buyer's needs

C) Establishes relationships between buyers and sellers

D) Ensures sales presentation structure and organization

E) Matches long-term strategic goals with seller's personality

59) According to the text, which of the following is one of the objectives given for establishing sales territories?

A) To lower long-term company profits.

B) To improve customer relations and satisfaction.

C) To match the wants of the salesperson with the needs of the customers served.

D) To facilitate utilization of the undifferentiated selling approach.

E) To attain more efficiency in businesses based on personal friendships.

60) Robert is the CEO of a small firm which manufactures inverters. Company sales have been increasing, and Robert finds it increasingly difficult to manage the salespeople. The company has a sufficient number of salespeople, but they are not able to reach all current and potential customers. Robert also has difficulties in evaluating the performance of salespeople. What advice can you give Robert?

A) Robert can hire more salespeople to have better sales coverage.

B) Robert can appoint more supervisors for managing and evaluating the sales force.

C) Robert can ask the salespeople to work overtime to obtain better coverage.

D) Robert can manage the salespeople by assigning each of them to different groups of customers.

E) Robert can ask salespeople to report directly to him, and he can use the authoritative management style.

61) A sales territory:

A) is essential for all kind of industries for managing the sales force.

B) makes the evaluation of performance more difficult.

C) does not aid in improving customer relations.

D) always contains group of customers residing in different geographic areas.

E) contains present and potential customers.

62) Sales territories are a disadvantage for some firms in all of the following cases EXCEPT when:

A) sales performance is difficult to monitor and evaluate.

B) personal friendships are the basis for attracting customers.

C) salespeople are more motivated if they are not restricted by territorial boundaries.

D) the company is too small to be concerned about segmenting the market into sales areas.

E) management lacks the knowledge, time, and interest to develop and establish sales territories.

63) A company may avoid establishing sales territories if:

A) it uses a matrix organizational structure.

B) personal friendships attract customers.

C) the company uses qualitative evaluations.

D) the company has no key accounts.

E) sales expenses are rising.

64) Which of the following companies would LEAST likely form sales territories?

A) McGraw-Hill Publishing

B) Century-21 Real Estate

C) Anheuser Busch

D) Hewlett Packard

E) Proctor & Gamble

65) Which of the following companies is most likely to avoid the formation of sales territories?

A) A large distributor of books

B) A global consumer products manufacturer

C) A leading manufacturer of small engines

D) A small company that makes custom architectural pieces

E) A company that supplies the inventory for convenience stores in 35 states

66) For the salesperson, territory management :

A) is only useful during busy seasons.

B) is most relevant during periods of economic recession.

C) is only useful when the salesperson is selling homogeneous products.

D) is a continuous process of planning, executing, and evaluating.

E) requires an efficient and effective sales manager.

67) An insurance company should most likely:

A) form territories based on income distribution.

B) make geographical sales territories.

C) avoid making distinct sales territories.

D) make small, local sales territories.

E) have territories with only prospects.

68) The first step of territory management is:

A) setting quotas.

B) seeking referrals.

C) scheduling calls.

D) planning travel routes.

E) engaging in prospecting.

69) After conducting an account analysis in the time and territory management process, salespeople should:

A) set account objectives and sales quotas.

B) manage scheduling and routing.

C) conduct customer sales planning.

D) evaluate customers and accounts.

E) conduct territory evaluations.

70) Rick Preston, a pharmaceutical sales representative, has a new kidney medication available. He is in the process of identifying physicians in his territory that might be interested in the new drug and estimating the sales potential of each. Rick is in the process of:

A) customer sales planning.

B) route reporting.

C) sales call allocation.

D) account analysis.

E) quota scheduling.

71) The two general approaches to ________ are the undifferentiated selling approach and the account segmentation approach.

A) customer sales planning.

B) route reporting.

C) sales call allocation.

D) account analysis.

E) quota scheduling.

72) Account analysis:

A) identifies accounts and their varying levels of sales potential.

B) begins with an estimate of a prospect's past sales.

C) involves four general approaches.

D) requires management oversight.

E) is another form of value analysis.

73) The two general approaches to account analysis for salespeople are:

A) time and territory management.

B) undifferentiated selling and account segmentation.

C) mass marketing and target marketing.

D) personal selling and mass selling.

E) homogeneous selling and heterogeneous selling.

74) The undifferentiated selling approach is used by the salesperson when:

A) accounts in a market are similar.

B) customers are primarily heterogeneous.

C) the product line is varied with unique uses.

D) major distinctions exist in a geographic region.

E) accounts have different needs and characteristics.

75) Which selling approach would most likely involve a salesperson using the same selling strategy for all customers?

A) Homogeneous selling

B) Heterogeneous selling

C) Account segmentation

D) TTM segmentation

E) Undifferentiated selling

76) Which of the following statements about undifferentiated selling is true?

A) The undifferentiated selling approach is only useful if customers are heterogeneous.

B) Many door-to-door salespeople use the undifferentiated approach.

C) The undifferentiated selling approach allows salespeople to devote time to customers in proportion to the customer's potential value.

D) The undifferentiated selling approach allows salespeople to streamline their pre-call preparation and thus is growing in popularity.

E) Undifferentiated selling cannot be used in conjunction with a stimulus-response presentation.

77) Stephen started a new company that offers house-cleaning services. He decided to reach out to homeowners in his neighborhood to promote his services. Which selling approach will most likely be used by Stephen?

A) Account segmentation

B) Undifferentiated

C) Customized

D) Specific

E) Unstructured

78) In most cases, the total sales quota for a salesperson is:

A) the same for all salespeople in the company.

B) set by the individual salesperson.

C) set by the sales manager.

D) fluctuating and flexible.

E) based on new accounts.

79) The account segmentation approach to territory management is used to:

A) insure equal treatment of the firm's prospects.

B) prevent dependence on the 80/20 principle.

C) insure equal treatment of the firm's customers.

D) increase the profitability of the territory.

E) insure equal treatment of the firm's salespeople.

80) Salespeople using the ________ approach recognize their territories contain accounts with heterogeneous needs and differing characteristics that require different selling strategies.

A) account segmentation

B) market diversification

C) undifferentiated selling approach

D) territorial development

E) market penetration

81) When a salesperson refers to her key accounts, she is talking about her ________ accounts.

A) newest

B) homogeneous

C) extra-large

D) undifferentiated

E) break-even

82) Sales managers use the ELMS system to:

A) identify demographic characteristics so that customer needs match sales goals.

B) evaluate salespeople during annual performance appraisals.

C) match the personalities of salespeople and customers.

D) create the most efficient travel routes for salespeople.

E) categorize accounts in terms of profitability.

83) The ELMS system:

A) is used by the home office not by the individual salesperson.

B) classifies prospects according to how and when they were qualified.

C) classifies accounts to extra-large, large, medium, and small accounts.

D) categorizes according to geographic location relative to the home office.

E) classifies according to time spent on average with each buyer.

84) Which of the following is a method used to define accounts in terms of their size?

A) OAKS

B) KISS

C) FAB

D) ELMS

E) SELL

85) The use of the ELMS system is most closely related to the:

A) FAB closing.

B) 80/20 principle.

C) 50-50 method.

D) SELL sequence.

E) KISS selling process.

86) The 80/20 principle can be used to explain why salespeople use:

A) the ELMS system to segment accounts in their sales territories.

B) trial closes a minimum of three times per sales call.

C) three different types of routing patterns.

D) waiting time for non-selling activities.

E) mobile offices and technology.

87) The 80/20 principle:

A) is a territorial management concept that favors a salesperson putting 80 percent of his time on planning and 20 percent on action.

B) refers to the fact that eighty salespeople require twenty sales managers to keep the appropriate 1-to-4 ratio of supervisors to employees.

C) indicates that no matter how hard a salesperson tries, 80 percent of the customer's potential business ends up going to competitors.

D) is a territorial management concept that favors a salesperson putting 80 percent of her time on action and 20 percent on planning.

E) refers to the idea that 20 percent of a firm's customers account for 80 percent of a firm's profitability.

88) Salespeople need to segment their accounts by the amount of revenue generated to:

A) reduce the amount of time they spend with large accounts.

B) improve the quality of their firm's advertising campaigns.

C) perform an OAKS analysis before a value analysis.

D) ensure they use their time appropriately.

E) accomplish all their personal goals.

89) Sheryl Ford, a senior salesperson at a large firm, was asked by her sales manager to handle a key customer at a distant place from her home. Sheryl was surprised because that area belonged to another salesperson. According to the text, what is the most likely reason for Sheryl's assignment?

A) Sheryl's area lacks key accounts, and the manager wants to distribute the accounts equally among the salespeople.

B) The salesperson in the customer's area is inexperienced.

C) The sales manager wants Sheryl to utilize her time better.

D) The sales manager is punishing Sheryl for breaking a sales policy.

E) The sales manager is trying to lower sales and travel expenses.

90) According to the text, when a company directs its sales force members to use multiple selling strategies, this means salespeople are expected to:

A) split commissions if a buyer's purchasing office is in one salesperson's territory and the retail outlet is the territory of another salesperson.

B) have several sales approaches planned so that if their first sales attempt is unsuccessful, they can shift to an alternate approach without delay.

C) develop different sales approaches for the different products in the company's product line.

D) invest the bulk of their time and resources in the large, important accounts in their territories.

E) develop one form of presentation for existing accounts and another for prospects.

91) ________ means using more than one criterion to characterize an organization's accounts.

A) Multivariable account segmentation

B) Key stoning

C) Parallel account integration

D) Territory-aggregate management

E) Double positioning

92) All of the following are true for multivariable account segmentation EXCEPT that it:

A) characterizes the organization's account using more than one criterion.

B) is used by sales organizations who sell to several markets.

C) emphasizes the supply of similar products to channel members.

D) is used because organizations use many channel members.

E) allows sales personnel to develop plans for selling various products to specific segments of their accounts.

93) James Lambert is an assistant territory sales manager at Cellcom, a leading wireless service provider in Europe. James manages the salespeople in a small city in France. There are many players in the wireless service provider market, and it is becoming increasingly difficult to position the company as unique. What can James do to position Cellcom as a unique company, when compared to its competitors?

A) Reduce the call rates by half.

B) Increase the mass media advertising of Cellcom.

C) Instruct salespeople to spend more time on each sales call.

D) Ask salespeople to discuss the weakness of competition in every sales call.

E) Substantially reduce the salespeople's visits to the small accounts and increase the visits to key accounts.

94) Dividing accounts on the basis of market type and sales volume would be an example of:

A) multivariable account segmentation.

B) dual segmentation marketing.

C) reciprocal sales differentiation.

D) total territory management.

E) dual positioning.

95) Jayson Jaworski is a manufacturer's salesperson. He finds it useful to divide the accounts in his territory on the basis of whether the buyer sells at the wholesale or retail level as well as according to the account's potential sales volume. Jaworski is using:

A) multivariable account segmentation.

B) dual segmentation marketing.

C) differentiated segmentation.

D) total territory management.

E) dual positioning.

96) Hancock Distribution Company characterizes its customers according to their yearly sales potential and whether the account is a builder, a homeowner, or a government facility. This approach to segmentation is called:

A) OAKS selling.

B) multivariable account segmentation.

C) dual differentiation.

D) dual segmentation marketing.

E) total territory management.

97) "To increase the total number of sales calls every month by 10," is an example of a(n):

A) territory allocation.

B) account analysis.

C) account objective.

D) sales quota.

E) sales positioning.

98) "To increase the product assortment purchased by current customers by two percent during the next three months," is an example of a(n):

A) market quota.

B) derived demand.

C) account objective.

D) future product quotient.

E) net product forecast.

99) Which of the following is a basic factor to consider in sales call allocation?

A) Nonselling time

B) Cost of goods sold

C) Personality style of customers

D) Structure of sales presentation

E) Revenue projections for the year

100) Which of the following is one of the six basic factors the text indicates must be considered in developing a plan for sales call allocation?

A) Types of products being sold

B) Cost of goods sold

C) Personality of the salesperson

D) Number of visual aids used in sales presentation

E) Number of accounts in the territory

101) Which of the following is NOT one of the six basic factors to consider in the allocation of a salesperson's calls?

A) Frequency of customer sales calls

B) Number of accounts in the territory

C) Nonselling time

D) Compensation

E) Travel time

102) If a territorial evaluation indicates that a salesperson's quotas are not met, then it is most likely that:

A) territories will be expanded.

B) sales methods will be changed.

C) routing will be re-measured.

D) key accounts will be dropped.

E) new territory plans will be developed.

103) Madison works for a weed killer manufacturing company. The products have only been available in a concentrated liquid form, but now the firm is introducing a pre-mixed version that should be easier for consumers to use. Madison will most likely increase the frequency of sales calls because:

A) the available supply is limited and costly.

B) there is no competition within the sales territory.

C) demand is low for his company's older products.

D) customers are less likely to buy products from the competition.

E) his company has increased the number of product lines available.

104) Which among the following is NOT a reason for increasing the number of sales calls?

A) Increase of potential future sales

B) Increase of orders placed

C) Increase of product lines sold

D) Increase of cost of goods sold

E) Increase in servicing requirements

105) You are the salesperson for a manufacturing business that makes various scents used in soap and candle making. Your sales manager expects your frequency of sales calls on a particular customer will increase when the:

A) complexity of the scent mixtures sold decreases.

B) number of orders placed for different scents diminishes.

C) future sales potential for your company's products decreases.

D) number of product lines sold carried by the wholesaler increases.

E) total number of managerial levels increases at the end of the year.

106) A salesperson invests time in direct proportion to the actual or potential sales that the account represents. This relationship of sales volume to sales calls is the:

A) break-even point.

B) sales response function.

C) basis for sales call allocation.

D) basis for territory formation.

E) correlation of effort and skill.

107) According to the suggestions in the text, daily planning by the salesperson would be LEAST likely to include:

A) determination of the time to contact the customer.

B) analysis of territorial gains and losses.

C) selection of the next day's prospects.

D) organization of facts and figures.

E) preparation of sales presentation materials.

108) As the sales rep for Whirlpool appliances plans her activities for the next week, she is establishing a certain day and time to visit each customer's place of business. She is engaged in the process of:

A) networking.

B) scheduling.

C) customer allocation.

D) customer sales planning.

E) routing.

109) Establishing a travel pattern to be used for working your territory is called:

A) Account grouping.

B) Account call allocation.

C) Customer sales planning.

D) Routing.

E) Scheduling.

110) Some companies give their salespeople strict formal route plans in order to:

A) improve collection of overdue accounts.

B) improve territory coverage.

C) promote the individual's planning experience.

D) minimize territory size.

E) maximize the utility of the salesperson's weekly report.

111) Which of the following statements about routing reports is true?

A) A routing report is usually filed monthly and submitted to the manager.

B) Companies usually require route reports even if no overnight travel is involved.

C) Salespeople are seldom asked to specify times and accounts on routing reports.

D) Routing reports allow sales managers to know where salespeople are located.

E) Most companies allow very little latitude for salespeople in routing.

112) Which of the following statements about routing is true?

A) Global positioning systems have eliminated the need for routing reports.

B) The best routing pattern to use is the cloverleaf pattern.

C) The critical factor in sales routing is to minimize the number of miles you drive.

D) Under the ELMS classification system, the S (super-size) accounts should be called on with greatest frequency.

E) Most companies allow considerable flexibility in routing.

113) M & N Enterprises uses strict route designs for its large sales team. M & N most likely wants to:

A) reduce vacation time.

B) eliminate overnight travel.

C) establish performance goals.

D) improve territory coverage.

E) ensure the safety of salespeople.

114) A company uses formal route designs to:

A) overcome territory disagreements.

B) reach small to medium size territories.

C) provide greater latitude to salespeople.

D) establish communication between management and the sales force.

E) reduce the promotional and distribution costs of new products.

115) Mark Adams is a salesperson with a pharmaceutical company. Mark divided his territory into four sections as shown below. What is the major flaw in arranging the accounts in this fashion?

A) The number of sections formed by Mark allows little flexibility.

B) The small accounts are unequally distributed.

C) The extra-large accounts are unequally distributed.

D) The number of sections should be an odd number.

E) Daily mileage is greatest in section 3.

116) During a salesperson's ________, her actual performance is compared with the performance standards set for her sales territory.

A) Territorial evaluation

B) MBO review

C) Break-even analysis

D) ELMS review

E) Market audit

117) Which of the following statements is most likely true about territorial evaluation?

A) In territorial evaluation, actual performance is evaluated separately from goals.

B) Territorial evaluation monitors the time interval between multiple sales calls.

C) Qualitative quotas and performance are not considered in territorial evaluation.

D) Territorial evaluation establishes performance standards in the form of quotas or goals.

E) During the evaluation, managers reports are considered instead of individual salespeople's reports.

118) Which of the following statements about using the sales technology for territory coverage is INCORRECT?

A) Sales technology tools assist salespeople with routine as well as strategic tasks.

B) Applications such as calendaring and routing tables can transform salespeople's typical sales routines and thus reduce downtime.

C) Sales technology aids salespeople by managing information about a larger number of customers.

D) Sales technology tools hinders salespeople's abilities to focus on actual selling time.

E) Salespeople using CRM system may be able to save time by speeding the process of sales call planning..

119) Which of the following statements about executive presence is INCORRECT?

A) Sales managers and executives do not want their emerging salespeople to develop an executive presence.

B) Executive presence is about the perception results from your initial interaction with a group as well as your ongoing interactions.

C) Executive presence is about the perception held by customers about you.

D) Executive presence is about the perception (held by others) that you have a certain level of gravitas and influence.

E) Executive presence is about how others perceive you.

120) All of the following statements reflect sales managers' expectations of new salespeople, EXCEPT:

A) A salesperson should be honest and ethical.

B) A salesperson should not take initiatives.

C) A salesperson should accept feedback and coaching.

D) A salesperson should leverage internal resources.

E) A salesperson should understand attitude.

121) Which of the following statements about using the calendar and time management systems such as Microsoft Outlook and Google Calendar is INCORRECT?

A) Reserve and schedule blocks of time to work on key projects.

B) Reserve conference rooms within salesperson's company.

C) Review the availability of internal colleagues to meet on certain times and dates (i.e. search their schedules).

D) Provide reminders of key deadlines.

E) Upload customers' list into the system and analyze data based on purchase volume, purchase types and, purchase frequency.

122) All of the following statements reflect sales managers' expectations of new salespeople, EXCEPT:

A) A salesperson should be proactive and ask her colleagues and managers when she has a challenge or is unsure of the next step.

B) A salesperson should set unrealistic deadlines to keep herself motivated.

C) A salesperson needs to be an ongoing learner.

D) A salesperson should learn what bothers her and develops coping skills to manage frustration during challenging times.

E) A salesperson should enjoy the successes and learn from the failures.

123) Which of the following statements is LEAST likely to be true about networking?

A) Networking is your personal array of relationship.

B) Salespeople should always ask themselves how they can help those in their network.

C) Building and maintaining relationships requires the mutual investment of effort, time, and resources.

D) The people who make up your relationship network will allow you to learn from them.

E) Relationships are based on usefulness and profit sharing.

124) Which of the following statements is NOT true about emotional intelligence?

A) Emotional intelligence involves the ability to perceive other's emotions

B) Emotional intelligence involves the ability to identify your emotions

C) Emotional intelligence involves the ability to understand what's causing your emotion

D) Emotional intelligence involves the ability to control guilt

E) Emotional intelligence involves the ability to manage your emotions

125) How can a salesperson use break-even analysis as a time management tool?

126) Lawrence sells lockers like those found in airports, bus stations, exercise centers, and schools. His fixed selling costs are $65,000 annually. His annual sales are $390,000 and the annual cost of the lockers he sells equals $255,000. Calculate his gross profit in percentage and his break-even point.

127) Greg owns a small business of selling athletic equipment to retailers. He spends $12,500 annually on transportation. His annual fixed cost is $19,000. His other annual expenses total $4,000. His annual sales are $130,000 and the cost of the goods he sells is $65,000. Calculate Greg's direct costs and his break-point point.

128) Karolyn sells bathroom fixtures. She believes that if she can get a customer she is calling on to go out to lunch with her, she will close the sale. What do you think about Karolyn's assumption?

129) List the time management skills that can help sales professionals in achieving success:

130) What is a sales territory? What are the major reasons for forming sales territories?

131) Why is the development of sales territories inefficient for some companies?

132) What are the two general approaches used for account analysis?

133) Explain the undifferentiated selling approach.

134) What is the relationship between the ELMS system and the 80/20 principle?

135) Explain multivariable account segmentation.

136) What commonly causes the frequency of sales calls made by a salesperson to increase?

137) How is the sales response function used by salespeople in time management?

138) Differentiate between routing and scheduling.

139) Why would a company insist that its salespeople stick to strict route designs?

140) What is territorial evaluation? What is the purpose and benefit of territorial evaluation?

141) Discuss how technology use can enhance a salesperson's time efficiency?

142) What does the term executive presence means? Why is it important for an emerging salesperson to work on his/her executive presence?

143) What is emotional intelligence? Why is it considered a prevalent topic within the sales industry?

144) What are benefits for a salesperson to develop and maintain a relationship network?

145) List any three time management skills that can help sales professionals in achieving success:

146) What is a sales territory?

147) A sales territory is not advisable in the life insurance industry. Why?

148) What is the first step in account analysis?

149) What are the two general approaches to account analysis?

150) Account analysis classifies accounts according to the ELMS system. Briefly describe this system.

151) Briefly explain sales call allocation step in territory management.

152) At what point does the salesperson reach the most productive number of sales calls?

153) Lin Zander sells health and beauty aids to retailers. If she sells $74,130, she exactly covers all of her territory's direct costs. Based on an 8-hour workday, a five-day week, and a 48-week year, how much does Zander need to sell hourly to reach her break-even point?

154) Describe sales technology.

155) List two software technology tools used in territory management, as per the text.

156) List the four abilities that in combination represent emotional intelligence (EI).

157) Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders.

The product handled by Austin has an average gross profit percentage of 25%. Austin's annual salary and expenses total $200,000. Austin works 8 hours a day, 5 days a week, and 40 weeks in a year. What is Austin's break-even volume per hour?

A) $500.00

B) $265.00

C) $150.00

D) $100.00

158) Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders.

Austin has arrived at a prospect's office 30 minutes earlier than his appointment time. What should Austin do?

A) Reschedule the appointment.

B) Read the local newspaper.

C) Meditate and stretch.

D) Catch up on paperwork.

E) Leave for the next call.

159) Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders.

Which method is used by Austin to segment his market?

A) TTM

B) ELMS

C) FAB

D) SELL

E) L-O-C-A-T-E

160) Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders.

Austin is a firm believer in the 80/20 principle. This means he believes:

A) 80 percent of his effort will not result in sales.

B) 20 percent of his time should be spent on prospecting and qualifying.

C) 80 percent of his time should be spent in follow-up service.

D) 20 percent of his customers will provide 80 percent of the sales.

E) 20 percent of his time should be spent on paperwork.

161) Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders.

In preparing for his sales call allocation plans, Austin should consider all of the following EXCEPT:

A) non-selling time.

B) cost of goods sold.

C) time required for each sales call.

D) frequency of sales calls.

E) return on time invested.