Question 1

Sales potential provides an assessment of overall demand opportunity available to all firms in an industry.

Accepted Answer

A) True 
 B)False

Question 2

A strength of regression analysis for forecasting is that it considers effects of seasonal variations.

Accepted Answer

A) True 
 B)False

Question 3

The _________ consists of different methods for developing sales forecasts for individual accounts.

Accepted Answer

A)  bottom-up approach 
B)  salesforce composite method 
C)  top-down approach 
D)  naive approach 
E)  survey of buying intentions 
A)  bottom-up approach 
B)  salesforce composite method 
C)  top-down approach 
D)  naive approach 
E)  survey of buying intentions

Question 4

This forecasting method is not well suited to firms with a large number of products.

Accepted Answer

A)  the Delphi method 
B)  Salesforce composite 
C)  Jury of executive opinion 
D)  Moving averages 
E)  Decomposition method 
A)  the Delphi method 
B)  Salesforce composite 
C)  Jury of executive opinion 
D)  Moving averages 
E)  Decomposition method

Question 5

When using various approaches to forecast produces similar results, these results can be combined to produce a final forecast.

Accepted Answer

A) True 
 B)False

Question 6

Decomposition methods involve different procedures that break down previous company sales data into _______ major components.

Accepted Answer

A)  two 
B)  three 
C)  four 
D)  five 
E)  six 
A)  two 
B)  three 
C)  four 
D)  five 
E)  six

Question 7

The moving averages method of forecasting develops a company forecast by calculating the average company sales for previous years.

Accepted Answer

A) True 
 B)False

Question 8

__________ involve different procedures that break down previous company sales data into four major components: trend, cycle, seasonal, and erratic

Accepted Answer

A)  Moving averages 
B)  Exponential smoothing 
C)  Decomposition methods 
D)  Breakdown methods 
E)  Delphi methods 
A)  Moving averages 
B)  Exponential smoothing 
C)  Decomposition methods 
D)  Breakdown methods 
E)  Delphi methods

Question 9

Most firms use multiple forecasting approaches and methods.

Accepted Answer

A) True 
 B)False

Question 10

Forecasts provide the basis for all of the following sales management decisions except

Accepted Answer

A)  designing territories. 
B)  evaluating prospective accounts. 
C)  determining sales compensation levels. 
D)  evaluating salesperson performance. 
E)  planning integrative meetings. 
A)  designing territories. 
B)  evaluating prospective accounts. 
C)  determining sales compensation levels. 
D)  evaluating salesperson performance. 
E)  planning integrative meetings.

Question 11

A sales forecast is the best possible level of firm sales in a given geographic area for a specific time period.

Accepted Answer

A) True 
 B)False

Question 12

Under-forecasting can result in lost sales and profits.

Accepted Answer

A) True 
 B)False

Question 13

The market factor method of sales forecasting can be described as

Accepted Answer

A)  forecasting different market potential based on the use of various marketing strategies. 
B)  identifying one or more factors that are related to sales at the zone, region, district, territory, or account levels and using these factors to break down the overall company forecast into forecasts at these levels. 
C)  forecasting based on a survey of the firm's customers to ascertain what products and amounts of these products they expect to purchase within some future period. 
D)  taking each salesperson's forecast for his or her territory and multiplying it by an exponential factor based on sales management's judgment of future market conditions. 
E)  soliciting the judgment of a group of experienced managers that are considered experts on market trends and growth potential. 
A)  forecasting different market potential based on the use of various marketing strategies. 
B)  identifying one or more factors that are related to sales at the zone, region, district, territory, or account levels and using these factors to break down the overall company forecast into forecasts at these levels. 
C)  forecasting based on a survey of the firm's customers to ascertain what products and amounts of these products they expect to purchase within some future period. 
D)  taking each salesperson's forecast for his or her territory and multiplying it by an exponential factor based on sales management's judgment of future market conditions. 
E)  soliciting the judgment of a group of experienced managers that are considered experts on market trends and growth potential.

Question 14

Which of the following statements regarding the regression forecasting approach is false?

Accepted Answer

A)  It can be used to develop sales forecasts and establish sales quotas at the account and territory levels, but cannot be used at higher organizational levels. 
B)  It develops sales forecasts that explicitly consider the characteristics of each territory. 
C)  Regression forecasts can be translated directly into sales quotas. 
D)  It incorporates measurements of specific environmental, organizational, and salesperson factors as well as sales for each territory in the previous year. 
E)  The regression model provides information concerning relationships between determinant factors and sales. 
A)  It can be used to develop sales forecasts and establish sales quotas at the account and territory levels, but cannot be used at higher organizational levels. 
B)  It develops sales forecasts that explicitly consider the characteristics of each territory. 
C)  Regression forecasts can be translated directly into sales quotas. 
D)  It incorporates measurements of specific environmental, organizational, and salesperson factors as well as sales for each territory in the previous year. 
E)  The regression model provides information concerning relationships between determinant factors and sales.

Question 15

The selection of forecasting methods often represents a tradeoff between the accuracy of the method and the ease with which it can be implemented.

Accepted Answer

A) True 
 B)False

Question 16

This forecasting method provides an opportunity to gain customer feedback about possible problems with the firm's products.

Accepted Answer

A)  Delphi method 
B)  Salesforce composite 
C)  Exponential smoothing 
D)  Survey of buyer intentions 
E)  Decomposition method 
A)  Delphi method 
B)  Salesforce composite 
C)  Exponential smoothing 
D)  Survey of buyer intentions 
E)  Decomposition method

Question 17

This forecasting method is well suited to situations in which sales forecasts are needed for a large number of products.

Accepted Answer

A)  Delphi method 
B)  Salesforce composite 
C)  Exponential smoothing 
D)  Moving averages 
E)  Decomposition method 
A)  Delphi method 
B)  Salesforce composite 
C)  Exponential smoothing 
D)  Moving averages 
E)  Decomposition method

Question 18

This forecasting method allows for voicing of unusual opinions and anonymous mind changing.

Accepted Answer

A)  Delphi method 
B)  Salesforce composite 
C)  Exponential smoothing 
D)  Moving averages 
E)  Decomposition method 
A)  Delphi method 
B)  Salesforce composite 
C)  Exponential smoothing 
D)  Moving averages 
E)  Decomposition method

Question 19

The survey of buyer intentions method of sales forecasting can be described as

Accepted Answer

A)  forecasting different market potential based on the use of various marketing strategies. 
B)  identifying one or more factors that are related to sales at the zone, region, district, territory, or account levels and using these factors to break down the overall company forecast into forecasts at these levels. 
C)  forecasting based on a survey of the firm's customers to ascertain what products and amounts of these products they expect to purchase within some future period. 
D)  taking each salesperson's forecast for his or her territory and multiplying it by an exponential factor based on sales management's judgment of future market conditions. 
E)  soliciting the judgment of a group of experienced managers that are considered experts on market trends and growth potential. 
A)  forecasting different market potential based on the use of various marketing strategies. 
B)  identifying one or more factors that are related to sales at the zone, region, district, territory, or account levels and using these factors to break down the overall company forecast into forecasts at these levels. 
C)  forecasting based on a survey of the firm's customers to ascertain what products and amounts of these products they expect to purchase within some future period. 
D)  taking each salesperson's forecast for his or her territory and multiplying it by an exponential factor based on sales management's judgment of future market conditions. 
E)  soliciting the judgment of a group of experienced managers that are considered experts on market trends and growth potential.

Question 20

The survey of buyer intentions method is any procedure that asks individual accounts about their purchasing plans for a future period and translates these responses into account forecasts.

Accepted Answer

A) True 
 B)False

Sales potential provides an assessment of overall demand opportunity available to all firms in an industry.

A strength of regression analysis for forecasting is that it considers effects of seasonal variations.

The _________ consists of different methods for developing sales forecasts for individual accounts.

This forecasting method is not well suited to firms with a large number of products.

When using various approaches to forecast produces similar results, these results can be combined to produce a final forecast.

Decomposition methods involve different procedures that break down previous company sales data into _______ major components.

The moving averages method of forecasting develops a company forecast by calculating the average company sales for previous years.

__________ involve different procedures that break down previous company sales data into four major components: trend, cycle, seasonal, and erratic

Most firms use multiple forecasting approaches and methods.

Forecasts provide the basis for all of the following sales management decisions except

A sales forecast is the best possible level of firm sales in a given geographic area for a specific time period.

Under-forecasting can result in lost sales and profits.

The market factor method of sales forecasting can be described as

Which of the following statements regarding the regression forecasting approach is false?

The selection of forecasting methods often represents a tradeoff between the accuracy of the method and the ease with which it can be implemented.

This forecasting method provides an opportunity to gain customer feedback about possible problems with the firm's products.

This forecasting method is well suited to situations in which sales forecasts are needed for a large number of products.

This forecasting method allows for voicing of unusual opinions and anonymous mind changing.

The survey of buyer intentions method of sales forecasting can be described as

The survey of buyer intentions method is any procedure that asks individual accounts about their purchasing plans for a future period and translates these responses into account forecasts.

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Motivation and Reward System Management

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Filters

Exam 10: Developing Forecasts

Sales potential provides an assessment of overall demand opportunity available to all firms in an industry.

A strength of regression analysis for forecasting is that it considers effects of seasonal variations.

The _________ consists of different methods for developing sales forecasts for individual accounts.

This forecasting method is not well suited to firms with a large number of products.

When using various approaches to forecast produces similar results, these results can be combined to produce a final forecast.

Decomposition methods involve different procedures that break down previous company sales data into _______ major components.

The moving averages method of forecasting develops a company forecast by calculating the average company sales for previous years.

__________ involve different procedures that break down previous company sales data into four major components: trend, cycle, seasonal, and erratic

Most firms use multiple forecasting approaches and methods.

Forecasts provide the basis for all of the following sales management decisions except

A sales forecast is the best possible level of firm sales in a given geographic area for a specific time period.

Under-forecasting can result in lost sales and profits.

The market factor method of sales forecasting can be described as

Which of the following statements regarding the regression forecasting approach is false?

The selection of forecasting methods often represents a tradeoff between the accuracy of the method and the ease with which it can be implemented.

This forecasting method provides an opportunity to gain customer feedback about possible problems with the firm's products.

This forecasting method is well suited to situations in which sales forecasts are needed for a large number of products.

This forecasting method allows for voicing of unusual opinions and anonymous mind changing.

The survey of buyer intentions method of sales forecasting can be described as

The survey of buyer intentions method is any procedure that asks individual accounts about their purchasing plans for a future period and translates these responses into account forecasts.

Overview of Personal Selling

Organizational Strategies and the Sales Function

Sales Organization Structure and Salesforce Deployment

Acquiring Sales Talent: Recruitment and Selection

Continual Development of the Salesforce:

Sales Leadership, Management, and Supervision

Motivation and Reward System Management

Evaluating the Effectiveness of the Organization

Evaluating the Performance of Salespeople

Filters