Deck 14: Assessing the Performance of the Sales Force and the People Who Comprise It

Question 1

All of the following are reasons a sales force may have missed sales goals EXCEPT:

A)The sales goals were too low.
B)The sales forecast was unrealistic.
C)The firms' pricing was not competitive.
D)The firm's products were bad or were not delivered well.
E)The firm's salespeople need more training.

Answer 1

A

Question 2

Lost accounts and cancelled orders are considered part of:

A)loss margins
B)chargebacks
C)outcome measures
D)poor outcomes
E)offset deductions

Answer 2

C

Question 3

Rather than looking at straight numbers of output by salesperson or sales force,managers may use ratios to:

A)calculate the total profit earned
B)compare the amount of output by the investment made in it
C)add the sales figures for various branch offices
D)subtract the costs of selling each type of product
E)calculate sales reps' commissions

Answer 3

B

Question 4

Return on Assets Managed (ROAM)is a ratio that assesses:

A)whether certain products are more profitable than others
B)whether products are an asset or a liability to a firm
C)what the forecast is for a certain product line for the coming periods
D)how well different managers are managing the firm's assets
E)how well each territory is selling from inventory

Question 5

Output measures are:

A)larger than input measures
B)a percentage of input measures
C)indicators of progress toward a benchmark
D)the actual results of a salesperson's efforts
E)activities that bring customers into the pipeline

Question 6

Firms segment input measures into different groups because:

A)no two salespeople will have the same number of input measures
B)different activities have different types of results
C)some input measures are not worth keeping track of
D)most input measures are qualitative in nature
E)comparing input measures to output measures is impossible

Question 7

Increasingly,companies are using ROI:

A)to reallocate product development budgets
B)to make budget cuts to marketing departments
C)along with other measures like customer loyalty and retention rates
D)as the sole measure of profitability of a product line
E)in conjunction with ROAM to manage managers

Question 8

Of the following five output measures,which is the one most likely to be used to create sales goals?

A)number of customers in the pipeline
B)number of orders received
C)profits generated
D)number of calls made and leads
E)revenues generated

Question 9

A profitability analysis can be useful to managers because it can help them determine if:

A)salespeople have been selling product lines equally
B)salespeople have been doing enough input activities for all product lines
C)there are product lines that need to be marketed differently
D)there are product liens that sell better than others
E)there are product lines that are costing the company money to sell

Question 10

A pipeline analysis shows:

A)how many products are currently being manufactured
B)where customers are at different stages of the sales process
C)how many cold calls a salesperson made in the previous period
D)what the salesperson's total revenue was for the previous period
E)how many customers will be expected to close this period

Question 11

A comprehensive performance evaluation form has space for all of the following information EXCEPT:

A)performance summary
B)areas for improvement
C)disciplinary recommendation
D)employee comments
E)ratings on different traits and behaviors

Question 12

Return on investment (ROI)is a simple calculation that allows managers to compare:

A)the percent they're making on the product to the percent they're paying on the investment
B)the percent they're making on the product to the costs associated with selling that product
C)the costs of selling the product to the potential for profit on the product
D)total revenues to total sales
E)market share to market price

Question 13

Information gathered by territory,salesperson,or product about sales by volume,quota,and other measures is referred to as:

A)a sales analysis
B)a cost analysis
C)a quota sheet
D)a territory map
E)a call record

Question 14

Cost per sales can vary by:

A)salesperson
B)sales department
C)hotel
D)region
E)product

Question 15

A detailed sales analysis can show a sales manager:

A)how sales have increased from previous periods
B)how to divide up territories
C)exactly which sales representatives or products are not meeting quotas
D)where the company should open new branch offices next
E)why sales volumes are down in certain areas

Question 16

What is the importance of evaluating sales force performance?

A)Evaluation allows managers to see which salespeople should be terminated.
B)Evaluation to assess what works validates planning and creates a cycle of success.
C)Evaluation fosters an attitude of awareness and detail-orientation in the sales force.
D)Evaluation puts the sales force on warning that salespeople need to meet their input quotas.
E)Evaluation demonstrates rule-compliance to upper management.

Question 17

The report that shows the relationship of what was sold to how much it cost the firm to make those sales is the:

A)sales forecast
B)combined record
C)profit analysis
D)sales analysis
E)cost analysis

Question 18

It is important for sales managers to know what and how their sales reps are doing in real time for all of the following reasons EXCEPT:

A)to reduce legal liability for absenteeism
B)there is less ability for sales reps to falsify information
C)sales strategies that work can be replicated quickly
D)managers can receive information about competitors quickly enough to act on it
E)higher-performing salespeople can improve their performances with immediate feedback

Question 19

A comprehensive performance appraisal process covers four important areas of salesperson performance.Which of the following is NOT one of the areas assessed?

A)input measures
B)outcomes
C)profitability
D)product ratios
E)personal development

Question 20

Hand held digital devices can be used by sales reps in the field to send information:

A)including cost per product ratios
B)including total revenue generated for the month
C)about other salespeople in the organization
D)directly to their managers by standard mail
E)directly to their managers electronically

Question 21

When salespeople do not hit their sales quotas,management:

A)terminates them within three months
B)issues a formal warning
C)gives them a probationary period in which to improve before they are fired
D)works with them to help them improve their performance
E)does not mind

Question 22

Different ratio measures can be used by managers to assess sales reps' performance:

A)by subtracting expenses from total sales
B)by combining different sets of input and output data
C)as a subset of earnings for the period
D)with new customers compared to current customers
E)in the field compared to the office

Question 23

Managers should adjust the items they assess in an evaluation based on:

A)sales forecasts for the coming period
B)the seniority of the sales rep
C)the length of the evaluation
D)what the object of their evaluation is
E)the total volume produced by the sales rep

Question 24

To encourage salespeople to keep costs down and increase gross sales margins,companies are beginning to:

A)figure sales margins directly into the calculation of sales reps' quotas and bonuses
B)prohibit sales reps from taking clients to dinner
C)limit the products their sales reps are allowed to sell
D)push products that have high profit margins,even if they products are not right for customers
E)sell all products at full retail price

Question 25

One method of assessing salespeople that helps them with personal development is:

A)writing essays about them
B)managing by objective (MBO)
C)ranking them against others
D)rating them on a scale
E)using a behaviorally anchored rating scale (BARS)

Question 26

Formal evaluations are less likely to result in:

A)lawsuits against the company
B)real change from the employee
C)changing sales goals for the period
D)recommendations for personal development
E)confirmation from the sales rep of the items discussed

Question 27

The four-factor model is the product of all of the following statistics EXCEPT:

A)days worked
B)call rate
C)profits per call
D)batting average (orders per call)
E)average order size

Question 28

The process of evaluating individual salespeople might show that:

A)the sales manager is not good at hiring salespeople
B)not all output measures can be rated equally
C)pricing problems are occurring with the product
D)salespeople need to work harder
E)things need to be improved in sales procedures

Question 29

All of the following practices will help minimize the effects of evaluation bias EXCEPT:

A)rating each factor separately,without letting one factor influence others
B)base ratings on actual performance,not potential
C)come in to the evaluation blind,without having seen the ratings form before
D)evaluate salespeople on an objective,unbiased standard
E)rate the salesperson on behavior through the evaluation period,not a specific incident

Question 30

The many cultural differences across different countries mean that performance reviews for employees in foreign countries:

A)should be different from the ones used for employees in the United States.
B)are useless for evaluation and planning purposes
C)must evaluate qualitative measures,not quantitative measures
D)must take into account Japan's collectivist society
E)will be less accurate than performance reviews conducted in the United States are

Question 31

A tendency to evaluate an employee unfairly is also referred to as:

A)hierarchical evaluation
B)personal evaluation
C)market evaluation
D)sample bias
E)evaluation bias

Question 32

Using a behaviorally anchored rating scale (BARS)is a way to quantify qualitative performance measures.A major disadvantage to using a BARS is:

A)that it is not a replicable process
B)that salespeople will not sit through a meeting long enough to discuss BARS extensively
C)that it is a violation of codes of ethics to give numerical values to qualities that cannot be quantified
D)that it can undervalue important aspects and overvalue less important aspects of performance
E)that most employees are not familiar with it

Question 33

Performance reviews that are influenced by how much a manager likes or dislikes a sales representative are examples of:

A)central tendency bias
B)outcome bias
C)halo effect
D)interpersonal bias
E)leniency or harshness tendency

Question 34

Qualitative performance measures are measures:

A)without any real value to the company
B)with characteristics that have been traditionally thought of as feminine
C)that cannot be assessed during a performance review
D)that make up for lack of sales skills
E)that are not inherently quantified with a number

Question 35

The main problem with informal evaluations of personnel is that those evaluations cannot help but be:

A)done at awkward times
B)left out of personnel records
C)biased by the manager's feelings toward the person
D)slanted by external factors such as recommendations from customers
E)more honest and immediate

Question 36

Of the five types of evaluation bias,which one punishes a person who has made the same efforts but fewer results than another person?

A)central tendency bias
B)outcome bias
C)halo effect
D)interpersonal bias
E)leniency or harshness tendency

Question 37

A full picture of an employee's profitability can only be made when the salesperson's:

A)gross sales margins for the firm are calculated
B)revenues are calculated
C)pipeline is assessed
D)input measures are considered
E)expense reports are filed

Question 38

The four-factor model is a simple and elegant way to get a snapshot of:

A)how the relationship between input measures and output measures works
B)the total activity of the sales force
C)two important input activities and how they interact with two important output activities
D)four measures with no correlation to each other
E)a sales rep's failures

Question 39

Sales volume per call,orders per call,and average cost per sales call are all ratios that can be used to determine if a sales rep:

A)is falsifying sales call records
B)is making enough calls,and if those calls are to large enough accounts or not.
C)is too efficient in closing sales
D)is selling the right products to each customer
E)is getting burned out

Question 40

All of the following are ways that qualitative performance measures can be rated EXCEPT:

A)by essay
B)on a rating scale
C)management by objective (MBO)
D)by forcing rankings
E)as a function of age

Question 41

ROI and ROAM are both measures that assess a return on profit.

Question 42

Discuss the reason evaluation of salespeople is so important.

Question 43

Managers must rate salespeople on measures that are difficult to quantify.

Question 44

The four-factor model of evaluation is a simple calculation that gives a quick snapshot of a salesperson's performance.

Question 45

Sales analysis and cost analysis are two methods of assessing how profitable each salesperson was for the company.

Question 46

Why is it important for managers to know what their reps are doing in the field as soon as it happens?

Question 47

What are the ways a salesperson can impact a firm's profitability?

Question 48

What is a pipeline? What is a pipeline analysis?

Question 49

A pipeline analysis shows how many customers have purchased in the previous period.

Question 50

If salespeople do not hit their goals,whose fault is it? What are the factors a manager has to consider?

Question 51

Salespeople who don't hit their sales goals will be terminated.

Question 52

What do ROI and ROAM stand for? Do they measure the same thing? Explain.

Question 53

Halo effect is the worst of the five types of evaluation bias.

Question 54

Why is it important to weight outcome measures?

Question 55

What is the difference between a sales analysis and a cost analysis? Which one is more important?

Question 56

Explain how a manager can look at input measures to determine that different sales reps are using different sales strategies.

Question 57

What can a sales manager do if a profitability analysis reveals that selling a product is costing the firm money?

Question 58

Sales ratios help managers determine exactly which areas of performance salespeople need more help with.

Question 59

A full picture of profitability can be assessed by looking at the sales margins a salesperson produces.

Question 60

Outcome measures are more important to assess for individual salespeople than input measures are.

Question 61

How can ratios help managers see what areas salespeople need to improve in?

Question 62

Explain evaluation bias.What are the five types of evaluation bias?

Question 63

What are the elements of the four-factor model of evaluation? What makes this a useful measure?

Question 64

How can a manager rate a salesperson on qualitative measures? What are some methods?

Question 65

What happens if salespeople do not hit their goals? What will a manager do?