Question 1

Explain the concept of elasticity of demand.What is inelastic demand?

Accepted Answer

Elasticity means that as price goes up,d

Question 2

A manufacturer makes drywall.When tax rates are cut,a housing boom begins,and demand for drywall goes up fourfold.This is an example of:

Accepted Answer

A) derived demand 
B) artificial demand 
C) line demand 
D) a pure economy 
E) a free market economy 
A) derived demand 
B) artificial demand 
C) line demand 
D) a pure economy 
E) a free market economy

Question 3

Sales and marketing are the only two departments that need to have access to and understand customer data.

Accepted Answer

A) True 
 B)False

Question 4

The first step in the CDI process,gathering data,can be:

Accepted Answer

A) simple,as all the data should already be in the CRM system 
B) simple,as it mostly consists of external market research 
C) simple,as the shipping and accounting data does not need to be included 
D) difficult,because it needs to come from so many different sources by many different methods 
E) difficult,because the salespeople will not want to share the information they've gathered about customers 
A) simple,as all the data should already be in the CRM system 
B) simple,as it mostly consists of external market research 
C) simple,as the shipping and accounting data does not need to be included 
D) difficult,because it needs to come from so many different sources by many different methods 
E) difficult,because the salespeople will not want to share the information they've gathered about customers

Question 5

In which of the following situations is trend analysis LEAST appropriate?

Accepted Answer

A) Your company did a major product revision five years ago,and is not expected to do another one for another five years. 
B) The research and development team is introducing a new process that manufactures your product much more economically,but the new materials used in the process are more expensive,so the price of manufacturing the product will remain the same as it has been. 
C) Your product has been the industry standard for the last 20 years,and you are ahead of your competitors in making improvements that keep the product synced with current technology. 
D) A competitor suddenly introduces a product that has twice the capacity of your company's main product at two-thirds of the price. 
E) The population of your company's customer area has been increasing by a rate of 4% each year for the previous five years,and is expected to maintain this same rate of growth for the next five years. 
A) Your company did a major product revision five years ago,and is not expected to do another one for another five years. 
B) The research and development team is introducing a new process that manufactures your product much more economically,but the new materials used in the process are more expensive,so the price of manufacturing the product will remain the same as it has been. 
C) Your product has been the industry standard for the last 20 years,and you are ahead of your competitors in making improvements that keep the product synced with current technology. 
D) A competitor suddenly introduces a product that has twice the capacity of your company's main product at two-thirds of the price. 
E) The population of your company's customer area has been increasing by a rate of 4% each year for the previous five years,and is expected to maintain this same rate of growth for the next five years.

Question 6

Sales potential is a subset of a sales forecast is a subset of market potential.

Accepted Answer

A) True 
 B)False

Question 7

The sales forecast is a portion of the sales potential which is:

Accepted Answer

A) larger than the market potential for an industry 
B) larger than the market potential for a product category 
C) a portion of the market potential for a product category 
D) a portion of the market potential for an industry 
E) predicted by the industry trends 
A) larger than the market potential for an industry 
B) larger than the market potential for a product category 
C) a portion of the market potential for a product category 
D) a portion of the market potential for an industry 
E) predicted by the industry trends

Question 8

One negative effect of using sales forecasts to dictate sales quotas for sales departments is that:

Accepted Answer

A) salespeople have not seen the forecasts and won't understand how to interpret them without guidance 
B) executives do not understand the methods used to calculate the forecasts 
C) executives may underestimate the skills of the salespeople and set the quotas too low 
D) sales managers may deliberately forecast lower numbers than they actually predict they will achieve 
E) sales managers may inflate their sales forecasts to look good to management 
A) salespeople have not seen the forecasts and won't understand how to interpret them without guidance 
B) executives do not understand the methods used to calculate the forecasts 
C) executives may underestimate the skills of the salespeople and set the quotas too low 
D) sales managers may deliberately forecast lower numbers than they actually predict they will achieve 
E) sales managers may inflate their sales forecasts to look good to management

Question 9

While market tests can give companies valuable information about the way the market will react to a product,a huge downside of market testing is that:

Accepted Answer

A) there are outside firms that can help companies run their market testing programs 
B) competitors will see the product before it is officially released and can take action to compete with it 
C) it shows how real people will react to your product 
D) it gives developers a chance to correct problems with the product before it is released officially 
E) it must be performed before a product is officially released to the public 
A) there are outside firms that can help companies run their market testing programs 
B) competitors will see the product before it is officially released and can take action to compete with it 
C) it shows how real people will react to your product 
D) it gives developers a chance to correct problems with the product before it is released officially 
E) it must be performed before a product is officially released to the public

Question 10

Since sales forecasts are not guaranteed to be accurate over the long-term,how can firms use sales forecasts in a useful way?

Accepted Answer

Companies can use multiple methods to ca

Question 11

What can a company do when the data they have about customers is in a format that is not accessible to all the people who need to have access to it?

Accepted Answer

A) A company can give the data to a third-party vendor who will analyze it. 
B) A company can reformat the data and print hard copies of it to distribute to those who need it. 
C) A company can designate one person from each department as the CDI liaison,and give that person access to the CDI information for the department. 
D) A company can do company-wide trainings on the CRM software system so those who don't know how to use the system can learn. 
E) A company can create a data mart especially for their customer data to give access to those who need it. 
A) A company can give the data to a third-party vendor who will analyze it. 
B) A company can reformat the data and print hard copies of it to distribute to those who need it. 
C) A company can designate one person from each department as the CDI liaison,and give that person access to the CDI information for the department. 
D) A company can do company-wide trainings on the CRM software system so those who don't know how to use the system can learn. 
E) A company can create a data mart especially for their customer data to give access to those who need it.

Question 12

A moving average is similar to trend analysis,but with the difference that:

Accepted Answer

A) a trend analysis is a more complicated calculation than a moving average 
B) a trend analysis tells what will happen while a moving average tells what has happened 
C) a moving average tells what will happen while a trend analysis tells what has happened 
D) a moving average relies on exponential smoothing,while a trend analysis looks at the straight numbers 
E) a moving average looks at the average of the rate of change for the previous few periods,while a trend analysis looks at the straight numbers for each period 
A) a trend analysis is a more complicated calculation than a moving average 
B) a trend analysis tells what will happen while a moving average tells what has happened 
C) a moving average tells what will happen while a trend analysis tells what has happened 
D) a moving average relies on exponential smoothing,while a trend analysis looks at the straight numbers 
E) a moving average looks at the average of the rate of change for the previous few periods,while a trend analysis looks at the straight numbers for each period

Question 13

Explain what spending correlates are,and how they can be used to help create a sales forecast.

Accepted Answer

Spending correlates are predictions of w

Question 14

What should the relationship between sales forecasts and quotas be?

Accepted Answer

Quotas should not be based directly on s

Question 15

The second step in the CDI process,which makes the data useful to others,involves:

Accepted Answer

A) gathering the data initially 
B) analyzing the data with software 
C) creating forecasts 
D) setting sales goals 
E) cleaning and formatting data to company naming and categorizing standards 
A) gathering the data initially 
B) analyzing the data with software 
C) creating forecasts 
D) setting sales goals 
E) cleaning and formatting data to company naming and categorizing standards

Question 16

Customer data integration (CDI)refers to:

Accepted Answer

A) a group within the research department that specializes in gathering and analyzing data 
B) a software system that gathers and analyzes customer data 
C) a set of rules for the process of gathering data on customers and making it useful and available 
D) the process of creating sales forecasts 
E) a theory of management science 
A) a group within the research department that specializes in gathering and analyzing data 
B) a software system that gathers and analyzes customer data 
C) a set of rules for the process of gathering data on customers and making it useful and available 
D) the process of creating sales forecasts 
E) a theory of management science

Question 17

A best practice for making sales forecasts is to choose one method and stick with it over the long-term.

Accepted Answer

A) True 
 B)False

Question 18

Customer knowledge competence is important for companies because inadequate knowledge of customers and what they want can result in:

Accepted Answer

A) greater sales of products 
B) overestimates or underestimates of sales,which can cost the company money and opportunity 
C) competitive advantage in certain product categories 
D) poor analysis of past sales trends 
E) inaccurate market research for the industry 
A) greater sales of products 
B) overestimates or underestimates of sales,which can cost the company money and opportunity 
C) competitive advantage in certain product categories 
D) poor analysis of past sales trends 
E) inaccurate market research for the industry

Question 19

What is a benefit of doing market testing? What is a caution about doing market tests,and what are the characteristics of a good location for a market test?

Accepted Answer

Market testing means releasing your prod

Question 20

In cases in which rapid change occurs in a market or with a company,sales forecasts will be more accurate if they are based on:

Accepted Answer

A) customer spending correlates 
B) both executive and expert opinion 
C) as many methods as possible 
D) the industry as a whole,not just the sector the company is part of 
E) similar historical periods 
A) customer spending correlates 
B) both executive and expert opinion 
C) as many methods as possible 
D) the industry as a whole,not just the sector the company is part of 
E) similar historical periods

Explain the concept of elasticity of demand.What is inelastic demand?

A manufacturer makes drywall.When tax rates are cut,a housing boom begins,and demand for drywall goes up fourfold.This is an example of:

Sales and marketing are the only two departments that need to have access to and understand customer data.

The first step in the CDI process,gathering data,can be:

In which of the following situations is trend analysis LEAST appropriate?

Sales potential is a subset of a sales forecast is a subset of market potential.

The sales forecast is a portion of the sales potential which is:

One negative effect of using sales forecasts to dictate sales quotas for sales departments is that:

While market tests can give companies valuable information about the way the market will react to a product,a huge downside of market testing is that:

Since sales forecasts are not guaranteed to be accurate over the long-term,how can firms use sales forecasts in a useful way?

What can a company do when the data they have about customers is in a format that is not accessible to all the people who need to have access to it?

A moving average is similar to trend analysis,but with the difference that:

Explain what spending correlates are,and how they can be used to help create a sales forecast.

What should the relationship between sales forecasts and quotas be?

The second step in the CDI process,which makes the data useful to others,involves:

Customer data integration (CDI)refers to:

A best practice for making sales forecasts is to choose one method and stick with it over the long-term.

Customer knowledge competence is important for companies because inadequate knowledge of customers and what they want can result in:

What is a benefit of doing market testing? What is a caution about doing market tests,and what are the characteristics of a good location for a market test?

In cases in which rapid change occurs in a market or with a company,sales forecasts will be more accurate if they are based on:

Introduction to Sales Management

The Sales Function and Multi-Sales Channels

Leadership and the Sales Executive

Ethics,the Law,and Sales Leadership

Business-To-Business B2bsales and Customer Relationship Management

Leveraging Information Technologies

Designing and Organizing the Sales Force

Recruiting and Selecting the Right Salespeople

Training and Developing the Sales Force

Supervising,managing,and Leading Salespeople

Setting Goals and Managing the Sales Forces Performance

Motivating and Rewarding Salespeople

Assessing the Performance of the Sales Force and the People Who Comprise It

Internal and External Cultural Forces

Filters

Exam 13: Turning Customer Information Into Sales Knowledge

Explain the concept of elasticity of demand.What is inelastic demand?

A manufacturer makes drywall.When tax rates are cut,a housing boom begins,and demand for drywall goes up fourfold.This is an example of:

Sales and marketing are the only two departments that need to have access to and understand customer data.

The first step in the CDI process,gathering data,can be:

In which of the following situations is trend analysis LEAST appropriate?

Sales potential is a subset of a sales forecast is a subset of market potential.

The sales forecast is a portion of the sales potential which is:

One negative effect of using sales forecasts to dictate sales quotas for sales departments is that:

While market tests can give companies valuable information about the way the market will react to a product,a huge downside of market testing is that:

Since sales forecasts are not guaranteed to be accurate over the long-term,how can firms use sales forecasts in a useful way?

What can a company do when the data they have about customers is in a format that is not accessible to all the people who need to have access to it?

A moving average is similar to trend analysis,but with the difference that:

Explain what spending correlates are,and how they can be used to help create a sales forecast.

What should the relationship between sales forecasts and quotas be?

The second step in the CDI process,which makes the data useful to others,involves:

Customer data integration (CDI)refers to:

A best practice for making sales forecasts is to choose one method and stick with it over the long-term.

Customer knowledge competence is important for companies because inadequate knowledge of customers and what they want can result in:

What is a benefit of doing market testing? What is a caution about doing market tests,and what are the characteristics of a good location for a market test?

In cases in which rapid change occurs in a market or with a company,sales forecasts will be more accurate if they are based on:

Introduction to Sales Management

The Sales Function and Multi-Sales Channels

Leadership and the Sales Executive

Ethics,the Law,and Sales Leadership

Business-To-Business B2bsales and Customer Relationship Management

Leveraging Information Technologies

Designing and Organizing the Sales Force

Recruiting and Selecting the Right Salespeople

Training and Developing the Sales Force

Supervising,managing,and Leading Salespeople

Setting Goals and Managing the Sales Forces Performance

Motivating and Rewarding Salespeople

Assessing the Performance of the Sales Force and the People Who Comprise It

Internal and External Cultural Forces

Filters