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1 | |
All of the following are reasons why companies develop and use sales territories EXCEPT: |
| | A) | to establish each salesperson's responsibilities |
| | B) | to reduce the cost of gathering customer and competitor knowledge |
| | C) | to allow better matching of salesperson to customer's needs |
| | D) | to improve customer relations |
| | E) | to reduce sales expense |
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2 | |
The two general approaches to account analysis are the: |
| | A) | mass segmentation approach and the targeted approach |
| | B) | niche approach and the broad-based approach |
| | C) | product orientation and the market orientation |
| | D) | general environmental approach and the task environmental approach |
| | E) | undifferentiated approach and the account segmentation approach |
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3 | |
The ELMS system: |
| | A) | is used to evaluate the effectiveness of the SELL sequence |
| | B) | makes use of the 80/20 principle |
| | C) | is a method for determining which close is appropriate for each type of selling situation |
| | D) | is used to match buyer and seller personality type to determine the most effective presentation method |
| | E) | makes use of The Golden Rule |
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4 | |
Which of the following is an important factor to consider when a salesperson allocates his or her time? |
| | A) | number of accounts in the territory |
| | B) | nonselling time |
| | C) | time required for each sales call |
| | D) | return on time invested |
| | E) | all of the above |
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5 | |
Assume that the annual expenses of a salesperson includes the following costs: Transportation $6,000, Salary $34,000, Other Expenses $7,000
Annual Sales = $235,000 on goods costing $185,000. Calculate the break-even point.
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| | A) | $173,945.23 |
| | B) | $159,774.44 |
| | C) | $220,864.16 |
| | D) | $125832.72 |
| | E) | $61.090.23 |
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6 | |
Which of the following statements about break-even analysis is true? |
| | A) | Break-even analysis for a sales territory is based on the successful implementation of ELMS. |
| | B) | The break-even analysis can be used to calculate the break-even point in dollars by dividing the gross profit percentage by the salesperson's fixed cost. |
| | C) | Break-even analysis is a qualitative technique for determining the level of sales at which total revenues equal total costs. |
| | D) | Break-even analysis shows that a sales territory is both a cost- and a revenue-generating profit center. |
| | E) | Break-even analysis can be used to identify the accounts that can be serviced through telephone sales calls. |
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7 | |
Petra sells lingerie. She has just called on a retail store that she believes ought to carry the merchandise she sells. After spending almost an hour showing the lingerie to the store manager, she learned that the manager did not have the authority to place an order. What costly time management mistake did Petra make? |
| | A) | She did not use the most efficient routing pattern. |
| | B) | She did not demand a larger sales territory. |
| | C) | She forgot to qualify her prospect before making the sales call. |
| | D) | She did not use the ELMS system to prioritize her sales calls. |
| | E) | She did not make a time management mistake. |
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8 | |
Alex sells wrought iron used in the restoration of historical buildings. When Alex arrived for his appointment with a contractor who was restoring several buildings in a downtown area, he learned that the prospect would not be returning to the office for three hours. What should Alex do? |
| | A) | Use his cell phone to see if a nearby customer is available for a sales call. |
| | B) | Place the prospective customer in his orphan file. |
| | C) | Sit and wait patiently because a salesperson should never lose a sales opportunity. |
| | D) | Use the ELMS system and place the customer in an elimination file. |
| | E) | Plan to use an assumptive close when he does get to make his sales presentation with the prospect. |
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9 | |
_____ refers to establishing a fixed time (day and hour) for visiting a customer's business. |
| | A) | Prioritizing |
| | B) | Routing |
| | C) | Scheduling |
| | D) | Sales forecasting |
| | E) | Territorial preparation |
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10 | |
An organization that wanted to improve the coverage of its sales territories, minimize wasted time, and keep its sales manager informed of the location of individual sales force members should: |
| | A) | establish fixed times for its salespeople to call on customers. |
| | B) | standardize the length of the sales presentation used by its salespeople |
| | C) | use formal route designs |
| | D) | require its salespeople to attend time management seminars |
| | E) | do all of the above |
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11 | |
Which of the following is most useful in setting up a daily and weekly route plan? |
| | A) | FAB |
| | B) | the ELMS system |
| | C) | the T-account |
| | D) | the SELL sequence |
| | E) | individual customer marketing plans |
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12 | |
The three basic routing patterns that salespeople are called the: |
| | A) | straight-line, triangular, and circular patterns |
| | B) | straight-line, cloverleaf, and major-city patterns |
| | C) | zig-zag, triangular, and circular patterns |
| | D) | straight-line, cloverleaf, and hypotenuse patterns |
| | E) | straight-line, zig-zag, and cloverleaf patterns |
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13 | |
Which of the following is NOT one of the telephone practices used by salespeople to minimize territory coverage? |
| | A) | Use telephone selling for the largest account because the customer relation is well-established. |
| | B) | Use telephone selling to carefully schedule personal sales calls on distance accounts. |
| | C) | Use telephone selling for smaller accounts that contribute less then five percent of business. |
| | D) | Use telephone selling for prospecting. |
| | E) | Use telephone selling to satisfy part of the service needs of accounts. |
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14 | |
Efficient salespeople make the telephone an important territory coverage tool because: |
| | A) | it decreases the fixed costs incurred from travel |
| | B) | salespeople are having to spend less time on nonselling activities |
| | C) | the telephone is a useful negotiation tool |
| | D) | of the increasing costs of a personal sales call |
| | E) | more salespeople are using the problem-solution approach to selling |
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15 | |
Which of the following statements about territorial evaluations is true? |
| | A) | Territorial evaluations begin with the establishment of performance standards for the individual territory in the form of qualitative and quantitative quotas or goals. |
| | B) | Territorial evaluations only deal with quantitative goals. |
| | C) | Territorial evaluations begin with the establishment of routing patterns. |
| | D) | Territorial evaluations provide sales managers with the tools to change the product mix being sold by salespeople. |
| | E) | All of the above statements about territorial evaluations are true. |
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2002 McGraw-Hill Higher Education