Exam A+


1. The 4th step in preparing the annual sales budget is 

a. identify specific market opportunities and problems

b. develop a preliminary allocation of resources

c. review and analyze the situation

d. communicate goals and objectives



2. The general sales manager and director of marketing engage in 

a. strategic planning

b. daily planning

c. monthly and weekly planning

d. tactical planning



3. Firms that sell products to the government, military and commercial markets are usually organized by

a. customer-maret

b. supplier

c. product

d. geographic area



4. Even though most companies establish sales territories on a geographic basis, major emphasis should be on

a. political units

b. customers and prospects

c. travel time of the salespeople

d. ease of access to the customers’ main production plants



5. The 4th step in the procedure for developing sales territories is

a. conduct an account analysis

b. develop a salesperson workload analysis

c. combine geographical control units into territories

d. assign salespeople to territories



6. The 4th step in a systematic process for recruiting salespeople is to

a. attract a pool of sales recruits

b. conduct a job analysis

c. select best recruits

d. prepare a job description



7. Most firms turn to _____ as their first source of new sales recruits

a. competitors

b. universities

c. non-sales personnel within the company

d. non-competing companies



8. The 4th step in systematic process for selecting salespeople is 

a. in-depth interviewing

b. initial screening

c. employment testing

d. reference checking



9. Initial socializing occurs during recruiting, selecting and introductory training. During the socialization process, the purpose of recruiting is

a. finding potential job applicants

b. giving recruits details about the company’s philosophy and the salespersons role in the organization. 

c. telling recruits about the company. 

d. getting recruits to apply. 



10. The 4th step in the development of the sales training development process is to: 

a. determine training objectives

b. conduct training needs assessment

c. determine responsibility, method of delivery, timing and location

d. develop the content of the training program



11. The first figures studied in sales analysis are

a. sales volume

b. sales costs

c. direct selling costs

d. indirect selling costs



12. The relationship between inputs (marketing efforts) and outputs (sales goals or results) is known as input-output efficiency. From the data given below, what is the efficiency ration?

DATA: (1) 3000 sales calls at $100

(2) 5000 telephone calls at $1

(3) 15 trade magazine advertisements at $1000

(4) Sell 2000 new office machines ($1000 ea.) @ $500 gross margin. 

a. 2.000

b. 3.125

c. 5.150

d. 8.500



13. For a particular product line, sales during the past year were about $15,000,000. Costs of goods were 10,000,000, sales expenses were 1,200,000 and fixed costs of goods sold were 2,000,000. What was the product lines contribution margin for the year? 

a. 13,800,000

b. 3,800,000

c. 5,000,000

d. 3,000,000



14. Which of the following performance factors are considered within the control of the salesperson? 

a. competitive intensity

b. variation in company support

c. generating sales revenues

d. time allocation between account development and account maintenance



15. The number of new accounts a salesperson generates is an example of 

a. behavior based measure

b. profitability measure

c. professional development measure

d. outcome based measure



16. The purpose of a quota dictates the kind of quota the firm utilizes. For example, if management wants to increase market share, it would use a 

a. sales volume quota

b. financial quota

c. activity quota

d. profit quota



17. There are three successive stages of an effective Performance Evaluation Monitoring System (PEMS). The phase in which salespersons are allowed to ask the sales manager three key questions: “Where am I going?” “How will I get there” “How will I be measured” is called the _____ stage.

a. performance planning

b. performance appraisal

c. performance review

d. performance evaluation



18. Which of the following is incorrect with respect to 360 degree performance appraisals?

a. They fit well with traditional organizational structures

b. They fit well with greater empowerment of employees

c. They fit well with working in teams

d. They are both multi-directional and multi-dimensional.



19.Peter Deutsch is a sales manager for an industrial products firm. He is responsible for 20 salespeople – most of whom have been with the company ten years or more. A particular concern for Mr. Deutsch is how to help his salespeople to self-actualize. In terms of Maslow’s Need Theory, which of the following approaches would be most appropriate to bring about sales force self-actualization? 

A. Provide a balances package of fringe benefits for the salespeople. 
B. Call regular sales meetings, make frequent telephone calls to individual salespeople, visit salespeople in the field, and distribute a newsletter. 
C. Provide promotional opportunities and public recognition for superior achievements. 
D. Provide creative work experience, freedom, advanced education courses, and self-development workshops as well as greater job control for the salespeople. 

20.When salespeople achieve or surpass a specified sales quota, they are often given a monetary bonus and/or special recognition to reward them for their performance as well as to motivate them to continue. This is/These are known as:

A. recognition. 
B. intrinsic rewards. 
C. non-financial incentives. 
D. an incentive program. 

21._________ sales meetings are considered the backbone of the communication system and usually give salespeople the greatest support. 

A. Local 
B. Regional 
C. National 
D. International 

22.The maturity/maintenance stage is characterized by the affected employee’s: 

A. disengagement from work. 
B. searching for a comfortable position. 
C. seeking stabilization in occupation. 
D. greater commitment to the firm. 

The fourth step in developing the compensation plan for a sales force is to: 

A. develop the compensation mix. 
B. establish specific objectives. 
C. prepare job descriptions. 
D. determine general levels of compensation. 

Which of the following trends in sales compensation focuses on customer satisfaction and relationship building? 

A. Signing bonuses 
C. Tying sales compensation to productivity 
D. Blending sales-oriented goals with organizational goals

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