Question 1

The Customer-Product matrix is based on new versus existing technologies and channels.

Accepted Answer

A) True 
 B)False  False

Question 2

All of the following are expense categories normally found in a sales budget except:

Accepted Answer

A)  recruiting and training. 
B)  office rent and utilities. 
C)  sales aids. 
D)  life insurance. 
E)  all of the above are expense classifications. 
A)  recruiting and training. 
B)  office rent and utilities. 
C)  sales aids. 
D)  life insurance. 
E)  all of the above are expense classifications. E

Question 3

A sales budget consists of a set of planned expenses and is usually prepared annually.

Accepted Answer

A) True 
 B)False  True

Question 4

The sales response approach to determining sales force size is based on the relationship between sales force effort and the sales response.

Accepted Answer

A) True 
 B)False

Question 5

A company is usually well advised to put significant sales force effort behind its new products, even if that means not having enough support for current products.

Accepted Answer

A) True 
 B)False

Question 6

Sales carryover occurs when a company continues to receive customer orders in a vacant territory with no salesperson.

Accepted Answer

A) True 
 B)False

Question 7

One reason the Customer-Product Matrix is an important planning tool is because a firm's sales management program is quite different depending on whether a company's sales are expected from new vs. existing customers and products.

Accepted Answer

A) True 
 B)False

Question 8

The company wants to spend 5% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $127,500 per person, and 15% of the sales force budget is for management and other costs. Using the percent of sales method, calculate the sales force budget, if sales are forecasted to be $12 million.

Accepted Answer

A)  3 salespeople 
B)  4 salespeople 
C)  5 salespeople 
D)  6 salespeople 
E)  none of the above 
A)  3 salespeople 
B)  4 salespeople 
C)  5 salespeople 
D)  6 salespeople 
E)  none of the above

Question 9

If the sales force needs to be downsized, then it is best to do it gradually.

Accepted Answer

A) True 
 B)False

Question 10

Which of the statements are usually true regarding the financial impact of increasing the sales force size?

Accepted Answer

A)  The average sales volume per salesperson will likely increase. 
B)  The average profit per salesperson is likely to decrease. 
C)  While average profits per salesperson may decrease, total company profits may increase. 
D)  only a and b above are true. 
E)  only b and c above are true. 
A)  The average sales volume per salesperson will likely increase. 
B)  The average profit per salesperson is likely to decrease. 
C)  While average profits per salesperson may decrease, total company profits may increase. 
D)  only a and b above are true. 
E)  only b and c above are true.

Question 11

The sales force sizing approach which is based on the sales that result from a certain level of sales force effort is known as the

Accepted Answer

A)  workload approach 
B)  sales effort approach 
C)  sales response approach 
D)  percent of sales approach 
E)  none of the above 
A)  workload approach 
B)  sales effort approach 
C)  sales response approach 
D)  percent of sales approach 
E)  none of the above

Question 12

According to the sales budgeting process discussed in your text, the first step of the process is to:

Accepted Answer

A)  forecast sales. 
B)  design the marketing program. 
C)  estimate personal selling costs. 
D)  examine actual costs from the previous period. 
E)  none of the above. 
A)  forecast sales. 
B)  design the marketing program. 
C)  estimate personal selling costs. 
D)  examine actual costs from the previous period. 
E)  none of the above.

Question 13

One of the benefits of a sales budget is that it forces sales managers to think about how marketing funds should be spent to effectively execute a sales strategy.

Accepted Answer

A) True 
 B)False

Question 14

The company wants to spend 5% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $127,500 per person, and 15% of the sales force budget is for management and other costs. Using the percent of sales method, calculate the sales force budget, if sales are forecasted to be $12 million.

Accepted Answer

A)  $420,000 
B)  $480,800 
C)  $510,000 
D)  $600,800 
E)  none of the above 
A)  $420,000 
B)  $480,800 
C)  $510,000 
D)  $600,800 
E)  none of the above

Question 15

The company wants to spend 8% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $80,000 per person, and 20% of the sales force budget is for management and other costs. Calculate the number of salespeople the budget will support, if sales are forecasted to be $3.2 million.

Accepted Answer

A)  2 people 
B)  2.5 people 
C)  3 people 
D)  3.5 people 
E)  none of the above 
A)  2 people 
B)  2.5 people 
C)  3 people 
D)  3.5 people 
E)  none of the above

Question 16

Sales carryover refers to the phenomenon of some portion of current sales being a function of previous sales efforts.

Accepted Answer

A) True 
 B)False

Question 17

If a sales force downsizing is necessary, then it is best to make all the necessary changes at once rather than a little at a time.

Accepted Answer

A) True 
 B)False

Question 18

You are probably undersized if your salespeople feel overworked, but your costs are within budget.

Accepted Answer

A) True 
 B)False

Question 19

In most companies, the sales budgeting process usually begins with an estimate of how much to spend on personal selling.

Accepted Answer

A) True 
 B)False

Question 20

The sales force sizing approach that is based on the sales costs and profit targets is known as the

Accepted Answer

A)  workload approach 
B)  sales effort approach 
C)  sales response approach 
D)  percent of sales approach 
E)  none of the above 
A)  workload approach 
B)  sales effort approach 
C)  sales response approach 
D)  percent of sales approach 
E)  none of the above

The Customer-Product matrix is based on new versus existing technologies and channels.

All of the following are expense categories normally found in a sales budget except:

A sales budget consists of a set of planned expenses and is usually prepared annually.

The sales response approach to determining sales force size is based on the relationship between sales force effort and the sales response.

A company is usually well advised to put significant sales force effort behind its new products, even if that means not having enough support for current products.

Sales carryover occurs when a company continues to receive customer orders in a vacant territory with no salesperson.

One reason the Customer-Product Matrix is an important planning tool is because a firm's sales management program is quite different depending on whether a company's sales are expected from new vs. existing customers and products.

If the sales force needs to be downsized, then it is best to do it gradually.

Which of the statements are usually true regarding the financial impact of increasing the sales force size?

The sales force sizing approach which is based on the sales that result from a certain level of sales force effort is known as the

According to the sales budgeting process discussed in your text, the first step of the process is to:

One of the benefits of a sales budget is that it forces sales managers to think about how marketing funds should be spent to effectively execute a sales strategy.

Sales carryover refers to the phenomenon of some portion of current sales being a function of previous sales efforts.

If a sales force downsizing is necessary, then it is best to make all the necessary changes at once rather than a little at a time.

You are probably undersized if your salespeople feel overworked, but your costs are within budget.

In most companies, the sales budgeting process usually begins with an estimate of how much to spend on personal selling.

The sales force sizing approach that is based on the sales costs and profit targets is known as the

Introduction to Selling and Sales Management

Strategy and Sales Program Planning

Sales Opportunity Management

Account Relationship Management

Customer Interaction Management

Sales Force Organization

Recruiting and Selecting Personnel

Training

Leadership

Ethical Leadership

Motivating Salespeople

Compensating Salespeople

Evaluating Sales Force Performance

Estimating Potentials and Forecasting Sales

Territory Design

Filters

Exam 16: Sales Force Investment and Budgeting

The Customer-Product matrix is based on new versus existing technologies and channels.

All of the following are expense categories normally found in a sales budget except:

A sales budget consists of a set of planned expenses and is usually prepared annually.

The sales response approach to determining sales force size is based on the relationship between sales force effort and the sales response.

A company is usually well advised to put significant sales force effort behind its new products, even if that means not having enough support for current products.

Sales carryover occurs when a company continues to receive customer orders in a vacant territory with no salesperson.

One reason the Customer-Product Matrix is an important planning tool is because a firm's sales management program is quite different depending on whether a company's sales are expected from new vs. existing customers and products.

If the sales force needs to be downsized, then it is best to do it gradually.

Which of the statements are usually true regarding the financial impact of increasing the sales force size?

The sales force sizing approach which is based on the sales that result from a certain level of sales force effort is known as the

According to the sales budgeting process discussed in your text, the first step of the process is to:

One of the benefits of a sales budget is that it forces sales managers to think about how marketing funds should be spent to effectively execute a sales strategy.

Sales carryover refers to the phenomenon of some portion of current sales being a function of previous sales efforts.

If a sales force downsizing is necessary, then it is best to make all the necessary changes at once rather than a little at a time.

You are probably undersized if your salespeople feel overworked, but your costs are within budget.

In most companies, the sales budgeting process usually begins with an estimate of how much to spend on personal selling.

The sales force sizing approach that is based on the sales costs and profit targets is known as the

Introduction to Selling and Sales Management

Strategy and Sales Program Planning

Sales Opportunity Management

Account Relationship Management

Customer Interaction Management

Sales Force Organization

Recruiting and Selecting Personnel

Training

Leadership

Ethical Leadership

Motivating Salespeople

Compensating Salespeople

Evaluating Sales Force Performance

Estimating Potentials and Forecasting Sales

Territory Design

Filters