Edition by Joseph F. Hair
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Sales Force Management
SECOND EDITION
Joseph F. Hair, Jr.
University of South Alabama
Rolph E. Anderson
Drexel University
Rajiv Mehta
New Jersey Institute of Technology
Barry J. Babin
University of Mississippi
Prepared by:
Rajiv Mehta
New Jersey Institute of Technology
JOHN WILEY & SONS
, Contents
CHAPTER 1 – INTRODUCTION TO SALES FORCE MANAGEMENT AND ITS EVOLVING
ROLES ………………………………………………………………………………. 1
CHAPTER 2 – MANAGING ETHICS IN A SALES ENVIRONMENT........................................... xx
CHAPTER 3 – CUSTOMER RELATIONSHIP MANAGEMENT (CRM) AND BUILDING
PARTNERSHIPS ....................................................................................................... xx
CHAPTER 4 – THE SELLING PROCESS ........................................................................................ xx
CHAPTER 5 – SALES FORECASTING AND BUDGETING...........................................................xx
CHAPTER 6 – SALES FORCE PLANNING AND ORGANIZING ................................................. xx
CHAPTER 7 – TIME AND TERRITORY MANAGEMENT............................................................ xx
CHAPTER 8 – RECRUITING AND SELECTING THE SALES FORCE........................................ xx
CHAPTER 9 – TRAINING THE SALES FORCE ............................................................................. xx
CHAPTER 10 – SALES FORCE LEADERSHIP............................................................................... xx
CHAPTER 11 – SALES FORCE MOTIVATION.............................................................................. xx
CHAPTER 12 – SALES FORCE COMPENSATION........................................................................ xx
CHAPTER 13 – SALES ORGANIZATION AUDIT AND SALES ANALYTICS.......................... xx
CHAPTER 14 – SALES FORCE PERFORMANCE EVALUATION.............................................. XX
, Chapter 1
Introduction to Sales Force Management and its Evolving Roles
1. Which of the following sales management titles represents the highestlevel sales executive?
a. regional, division, or zone sales manager
b. vice president of sales
c. national sales manager
d. district, branch, or field sales manager
Answer: b LO: 1 AASCB: k Key Words: sales management hierarchies
2. Which of the following is not a macro-environmental factor that sales managers must continuously
monitor?
a. technological
b. competitive
c. economic
d. geography
Answer: D LO: 1 AASCB: k Key Words: macro-environment
3. A company's stakeholders include:
a. employees
b. suppliers
c. financial community
d. all of the above
Answer: d LO: 1 AASCB: h Key Words: stakeholders
4. Which of the statements below is least accurate?
a. a sales budget is a forecast of needed expenditures to attain the projected sales revenues.
b. a sales territory is a geographic area of equal size and population density assigned to each member of
the sales force.
c. a sales quota is a motivational target assigned to the salesperson.
d. a sales forecast is the starting point for all sales planning, budgeting, and territorial assignments.
Answer: b LO: 1 AASCB: k Key Words: sales budgets, forecast, quotas
5. Which of the following factors can sales managers use to determine the best way to structure the
sales force?
a. geographically
b. by product
c. by customer type
d. all of the above can be used
Answer: d LO: 1 AASCB: k Key Words: sales force structure
,6. Determining the appropriate number of salespeople and how to organize them affects several sales
management decision areas, including, budgets, territory assignments, supervision, motivation, and
evaluation of sales force performance.
a. job descriptions
b. compensation methods
c. sales forecasts
d. all of the above
Answer: d LO: 1 AASCB: k Key Words: sales force size
7. Determining the appropriate number of salespeople and how to organize them affects several sales
management decision areas, including:
a. sales force management
b. sales force motivation
c. sales force evaluation
d. all of the above
Answer: d LO: 1 AASCB: k Key Words: sales force size
8. A __________ is a market segment or group of present and potential customers who usually share
some common characteristics relevant to purchasing behavior.
a. sales territory
b. sales budget
c. routing pattern
d. sales quota
Answer: a LO: 1 AASCB: k Key Words: sales territory
9. Recruiting the sales force includes all of the following activities except:
a. identifying sources of potential sales recruits
b. identifying methods of reaching sales recruits
c. training sales recruits
d. all the above
Answer: d LO: 1 AASCB: k Key Words: sales force recruiting
10. The purpose of the assimilation process is to help the new salesperson as he or she adjusts socially
and psychologically to the organization by:
a. explaining job responsibilities
b. explaining managerial expectations
c. introducing the salesperson to coworkers
d. all the above
Answer: d LO: 1 AASCB: k Key Words: sales force assimilation
11. In designing a training program, which of the following questions should the sales manager address?
Where, when, and how should the training be accomplished? What should be taught?
,a. who should receive the training?
b. who should do the training?
c. where should the training be held?
d. all the above
Answer: d LO: 1 AASCB: k Key Words: training program
12. Which of the following is not true about sales training programs?
a. sales training programs help salespeople continually grow in knowledge
b. sales training programs help salespeople grow in stature
c. sales training programs help salespeople reinforce good attitudes about themselves and their jobs,
companies, and customers
d. sales training programs help salespeople increase their selling skills
Answer: b LO: 1 AASCB: k Key Words: training program
13. Which of the following statements are not true about supervision, management, and leadership?
a. supervision, management, and leadership are all related but quite different concepts.
b. supervision entails performing tasks that deal with monitoring the daily work activities of
subordinates.
c. management is primarily a learned process whereby subordinates are guided by formally prescribed
duties toward achieving organizational objectives, not personal goals.
d. leadership is more of an emotional process seeks to inspire salespeople to greater achievements by
providing a positive vision for the future.
Answer: c LO: 1 AASCB: k Key Words: sales force leadership
14. ______________ deals with the set of dynamic interpersonal processes that stimulate the initiation,
direction, intensity, and persistence of work-related behaviors of salespeople toward attaining
organizational goals and objectives.
a. sales force leadership
b. sales force motivation
c. sales force compensation
d. sales force selection
Answer: b LO: 1 AASCB: k Key Words: sales force motivation
15. _____________ may be thought of as the emotional process of exercising psychological, social, and
inspirational influence on individual salespeople and the sales force collectively toward the
achievement of organizational objectives, goals, and values.
a. sales force compensation
b. sales force motivation
c. sales force leadership
d. sales force selection
Answer: c LO: 1 AASCB: k Key Words: sales force leadership
,16. _____________ entails performing tasks that deal with monitoring the daily work activities of
subordinates.
a. sales force supervision
b. sales force management
c. sales force leadership
d. sales force compensation
Answer: a LO: 1 AASCB: k Key Words: sales force supervision
17. _____________ is primarily a learned process whereby subordinates are guided by formally
prescribed duties toward achieving organizational objectives and goals.
a. sales force supervision
b. sales force management
c. sales force leadership
d. sales force compensation
Answer: b LO: 1 AASCB: k Key Words: sales force
management
18. _____________ is more of an emotional process seeks to inspire salespeople to greater
achievements by providing a positive vision for the future.
a. sales force supervision
b. sales force management
c. sales force leadership
d. sales force compensation
Answer: c LO: 1 AASCB: k Key Words: sales force leadership
19. While there are a variety of ways to compensate salespeople, most companies use three main
methods, which include:
a. straight salary
b. straight commission
c. combination—a mix of salary and commission
d. all the above
Answer: d LO: 1 AASCB: k Key Words: sales force compensation
20. Sales managers are usually more responsible for all of the following, except:
a. preparing sales plans and budgets
b. selling products to potential customers
c. designing sales territories
d. evaluating sales force performance
Answer: b LO: 1 AASCB: k Key Words: sales management
21. Which of the following activities does a sales manager usually not undertake in order to plan, lead,
and control the sales management function of an organization?
a. reduce organizational employee turnover
,b. estimate demand and forecast sales
c. determine the size and structure of the sales force organization
d. set sales force goals and objectives
Answer: a LO: 1 AASCB: k Key Words: sales management
22. Sales managers need to analyze sales volume, costs, and profit relationships to assure the
organization’s bottomline goal of improving profitability. This can be achieved by the analysis of:
a. product lines
b. territories
c. customers and salespersons
d. all the above
Answer: d LO: 1 AASCB: r Key Words: sales volume, costs, and profit
analysis
23. Sales force performance must be measured and evaluated for all the following reasons except:
a. to determine commissions for salespeople
b. to determine changing in the corporate mission
c. to determine promotion decisions for salespeople
d. to determine bonuses for salespeople
Answer: b LO: 1 AASCB: k Key Words: sales force performance
24. For effective managerial control and evaluation, which of the following actions are unnecessary:
a. standards of performance must be established
b. actual performance compared to the predetermined standards
c. compare individual salesperson performance to organizational performance
d. appropriate corrective action taken to improve performance
Answer: c LO: 1 AASCB: r Key Words: sales force performance
25. Which of the following statements about marketing is false?
a. The old AMA definition views marketing largely from the seller perspective by emphasizing
management of the marketing mix and creating exchanges, but the new definition shifts the
perspective more to the customer side by focusing on delivering value and managing customer
relationships
b. marketing is moving from a customer-relationship-building orientation to a transaction-orientation
c. today’s business-to-business salespeople are moving away from merely “selling” toward “serving”
customers by becoming more like customer consultants and business partners
d. successful salespeople negotiate “win-win” agreements, and build profitable long-term relationships
based on customer satisfaction and loyalty
Answer: b LO: 1 AASCB: r Key Words: marketing definition
26. _________ is based on the idea that developing closer relationships with customers is the best way
to earn purchasing loyalty, and that loyal customers are more profitable than non-loyal customers.
a. marketing management
, b. motivation management
c. customer relationship management
d. compensation management
Answer: c LO: 1 AASCB: k Key Words: customer relationship
management
27. Customer relationship management usually includes a mixture of strategies, technologies, and
activities to collect data and analyze customer-company interactions across multiple contact points
(e.g., website, e-mail, podcast, telephone, face-to-face, direct mail, and social media) in order to:
a. increase customer satisfaction
b. customer loyalty
c. lead to repeat purchases
d. all the above are true
Answer: d LO: 1 AASCB: k Key Words: Customer relationship management
28. Which of the following is the definition of customer relationship management (CRM)?
a. CRM refers to “the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.”
b. CRM refers to the “dynamic interpersonal processes that stimulate the initiation, direction, intensity,
and persistence of work-related behaviors of salespeople toward attaining organizational goals and
objectives”
c. CRM refers to “the emotional process of exercising psychological, social, and inspirational influence on
individual salespeople and the sales force collectively toward the achievement of organizational
objectives, goals, and values”
d. CRM refers to “the idea that developing closer relationships with customers is the best way to satisfy
customers and achieve purchasing loyalty, and that loyal customers are more profitable than non-
loyal.”
Answer: d LO: 1 AASCB: k Key Words: customer relationship
management
29. Sales managers need the assistance of an in-house marketing support group, which generally
provides which of the services below?
a. advertising
b. sales promotion brochures, catalogs, direct mail pieces, etc.
c. marketing research
d. all of the above
Answer: d LO: 2 AASCB: k Key Words: marketing support team
30. On which of the following services indicated below do sales managers need the assistance of an in-
house marketing support group?
a. trade shows
b. forecasting
c. market development