Deck 14: Time, Territory, and Self-Management: Keys to Success

Question 1

A market with homogeneous needs and characteristics would best be suited for an undifferentiated market approach.

Answer 1

True

Question 2

In an undifferentiated selling approach, the salesperson uses multiple selling strategies in the same market.

Answer 2

False

Question 3

As per the text, one of the time management skills that can help sales professionals in achieving success is having a systematic account for the outcomes you aim to achieve before allocating time to achieve these outcomes.

Answer 3

True

Question 4

Fewer overnight trips and more regular contact with productive customers can reduce sales expenses as well as improve a firm's sales-cost ratio.

Question 5

Multivariable account segmentation involves the use of one or more criterion to characterize the organization's account.

Question 6

According to the Core Principles of Professional Selling, how you spend your time greatly influences your level of sales success.

Question 7

The break-even point for a territory for a month is $1,000. If the salesperson generates $1,000 of profit the territory's direct costs are covered.

Question 8

Segmenting the market into territories can be very effective in industries like insurance and retail.

Question 9

As per the text, one of the time management skills that can help sales professionals in achieving success is spending time on low-priority tasks.

Question 10

It is wise to use the account segmentation approach in a market with heterogeneous needs.

Question 11

Although it is useful to have lunch with a prospect or a client, dining alone can be very productive for a professional salesperson.

Question 12

All companies segment their markets into sales territories.

Question 13

Generally, it is a good idea to maximize the difference between the salesperson and the customer being served to keep sales presentations fresh and interesting.

Question 14

A professional salesperson should not study product materials during the waiting time at the customer's office.

Question 15

Research has shown that a business lunch rarely leads to a sale.

Question 16

The difference between cost of goods sold and sales is the net profit on sales revenue.

Question 17

Break-even volume per hour = Cost per hour/Gross profit percentage

Question 18

Sales territories can be used to obtain thorough coverage of the market.

Question 19

A sales quota comprises a group of customers or a geographical area assigned to a salesperson.

Question 20

The 80/20 principle is a time management concept that favors a salesperson putting 80 percent of his time on planning and 20 percent on selling.

Question 21

Territorial evaluation is the comparison of performance standards for the individual territory with the salesperson's actual performance.

Question 22

Sales call allocation is the time spent by the salesperson calling on accounts excluding the traveling time.

Question 23

Effective salespeople remember that building and maintaining relationships does not necessarily require the mutual investment of resources.

Question 24

Sales managers monitor the frequency and time intervals between sales calls for each salesperson.

Question 25

A salesperson has reached the most productive number of calls to make on an account when further increases in calls increase sales expenses.

Question 26

Nonselling time is a factor to be considered in sales call allocation.

Question 27

Routing refers to the travel pattern the salesperson uses in working his territory.

Question 28

Salespeople usually file routing reports weekly.

Question 29

The majority of sales force resources should be invested in key accounts.

Question 30

The total fixed cost for Harold, a salesperson, is $20,000 per month. Harold generates 25% gross profit on the products he sells. If Harold sells $200,000 worth of merchandise in six months, which of the following statements is true?

A) By having Harold, the company incurred a direct loss of $70,000.
B) Harold generated $120,000 in gross profit for the company.
C) Harold sold $120,000 worth of goods, which equals the BEP.
D) By having Harold, the company incurred a direct loss of $280,000.
E) Harold generated $30,000 gross profit for the company.

Question 31

Your ability to understand what's causing your emotion is part of your emotional intelligence.

Question 32

Scheduling refers to the travel pattern the salesperson uses in working his or her territory.

Question 33

Before making a sales call, the salesperson should first qualify an account, which means the account should meet the firm's credit standards.

Question 34

Strict formal routing procedures are designed by firms that want to improve territory coverage and minimize wasted time.

Question 35

________ is a quantitative technique for determining the level of sales at which total revenues equal total costs.

A) The sales response function
B) Equilibrium analysis
C) Profit allocation
D) Break-even analysis
E) The ELMS approach

Question 36

Salespeople use Territory Analysis software application to upload customers' list into the system and analyze data based on purchase volume, purchase types and, purchase frequency.

Question 37

Many companies concentrate on improving the way their salespeople manage their time because:

A) the cost of direct selling is rapidly decreasing.
B) the time available for face-to-face customer contact is increasing.
C) there is reduced emphasis on profitability.
D) time is always limited.
E) they want to increase the salesperson's responsibilities.

Question 38

Sales managers and executives hope that their emerging salespeople develop a certain aura that the salesperson is perceived as possessing a quality of authority.

Question 39

The term sales response function of a customer refers to the relationship between sales volume and number of prospects in a territory.

Question 40

Salespeople should not rely on technology for any of the sales activities.

Question 41

Companies establish sales territories to accomplish all of the following objectives EXCEPT to:

A) set responsibilities for salespeople.
B) avoid duplicating sales efforts.
C) control corporate credit ratings.
D) create goodwill with customers.
E) meet sales goals.

Question 42

Which of the following statements about sales territories is INCORRECT?

A) A sales territory contains present customers.
B) Geographic boundaries define a sales territory.
C) Firms use sales territories to evaluate performance.
D) A sales territory typically contains potential customers.
E) A sales territory comprises a geographic area assigned to a salesperson.

Question 43

Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Calculate his gross profit percentage.

A) 11.9%
B) 20.3%
C) 25.6%
D) 34.3%
E) Cannot be determined from information given

Question 44

Which of the following would be a good rule for salespeople to follow in handling their paperwork?

A) Avoid paperwork so that more time is available for sales presentations.
B) Politely interrupt a sales interview to get paperwork finished.
C) Finish paperwork during non-selling times and evenings.
D) Manage paperwork on a once-a-month basis.
E) Handle paperwork throughout the day.

Question 45

Gross profit is the difference between:

A) sales revenue and costs of goods sold.
B) sales revenue and fixed costs of the salesperson.
C) sales revenue and costs of goods sold including taxes.
D) net profit and transportation cost.
E) total sales and manufacturing cost.

Question 46

The annual break-even point of a salesperson is $2,000,000 and his per month salary is $10,000. This means that:

A) the salesperson should generate $2,000,000 gross profit every year to cover the costs.
B) the salesperson should generate sales worth $2,000,000 every year to cover the costs.
C) the salesperson should generate $2,000,000 net profit every year to cover the costs.
D) the salesperson should generate gross profit worth $80,000 to cover the costs.
E) the salesperson is generating $80,000 profit compared to his fixed cost.

Question 47

Robert is the CEO of a small firm which manufactures inverters. Company sales have been increasing, and Robert finds it increasingly difficult to manage the salespeople. The company has a sufficient number of salespeople, but they are not able to reach all current and potential customers. Robert also has difficulties in evaluating the performance of salespeople. What advice can you give Robert?

A) Robert can hire more salespeople to have better sales coverage.
B) Robert can appoint more supervisors for managing and evaluating the sales force.
C) Robert can ask the salespeople to work overtime to obtain better coverage.
D) Robert can manage the salespeople by assigning each of them to different groups of customers.
E) Robert can ask salespeople to report directly to him, and he can use the authoritative management style.

Question 48

Which one of the following is a time management skill that can help sales professionals in achieving success:

A) Try not to be selective in prioritizing time and spend time on high-priority tasks.
B) Do not worry about of the time needed to complete tasks.
C) Always overcommit to nonessential tasks at the expense of core work tasks.
D) Avoid following a plan to allocate efforts across goals, activities, and time periods.
E) Always maintain a systematic account for the outcomes you aim to achieve before allocating time to achieve these outcomes.

Question 49

Based on the following data, calculate the breakeven point in dollars: Sales = $400,000
Gross Profit = $100,000
Transportation = $8,000
Cost of Goods Sold = $280,000
Expenses = $10,000
Salary = $40,000

A) $96,667
B) $133,333
C) $166,000
D) $232,000
E) Cannot be calculated with the information provided

Question 50

A(n) ________ comprises a group of customers or a geographical area assigned to a salesperson.

A) market development area
B) MSA
C) sales territory
D) market potential
E) sales quota

Question 51

Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Mack works an average of 240 days a year and 8 hours each day. Mack makes an average of five sales calls per day. Mack's break-even volume per hour is approximately:

A) $119.00
B) $153.00
C) $171.00
D) $256.00
E) $392.00

Question 52

Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Mark's break-even point in terms of total sales is approximately:

A) $198,000
B) $218,600
C) $224,000
D) $293,000
E) $315,200

Question 53

Which of the following rules should a salesperson adopt in order to have more productive lunch periods?

A) Monitor the time to avoid monopolizing too much of the buyer's day.
B) Have an alcoholic drink only if the client makes the suggestion.
C) Conduct part of the sales presentation during lunch using a laptop.
D) When lunching alone, use the time to read something relaxing.
E) Offer to purchase the customer a lunchtime cocktail or dessert.

Question 54

How do sales territories benefit a company's customers?

A) Monitors sales team salaries and expenses
B) Links organizational vision with buyer's needs
C) Establishes relationships between buyers and sellers
D) Ensures sales presentation structure and organization
E) Matches long-term strategic goals with seller's personality

Question 55

Based on the following data, calculate the breakeven point. Sales = $500,000
Transportation = $10,000
Gross Profit = $200,000
Lodging and Meals = $8,000
Salary = $37,000
Other expenses = $5,000

A) $150,000
B) $130,000
C) $100,0003
D) $86,667
E) Cannot be calculated with the information given

Question 56

Which of the following is used to calculate the costs and revenues of sales territories?

A) ELMS system
B) Break-even analysis
C) Multivariate territorial analysis
D) Key stoning
E) SWOT analysis

Question 57

A sales territory:

A) is essential for all kind of industries for managing the sales force.
B) makes the evaluation of performance more difficult.
C) does not aid in improving customer relations.
D) always contains group of customers residing in different geographic areas.
E) contains present and potential customers.

Question 58

Which of the following statements about sales territories is true?

A) A sales territory contains only one key account.
B) Sales territories always have geographic boundaries.
C) Sales territories are used to maximize the sales potential of a market.
D) A sales territory guarantees that a company reaches the breakeven point.
E) Sales territories are used to evaluate the effectiveness of the marketing mix.

Question 59

Which one of the following is NOT a time management skill that can help sales professionals in achieving success:

A) Be selective in prioritizing time and spend time on high-priority tasks
B) Have a better sense of the time needed to complete tasks
C) Avoid overcommitting to nonessential tasks at the expense of core work tasks.
D) Develop an effective plan to allocating efforts across goals, activities, and time periods.
E) Avoid maintaining the account for the outcomes you aim to achieve before allocating time to achieve these outcomes.

Question 60

Which of the following activities is NOT an appropriate thing to do while you, the salesperson, are waiting to see a buyer?

A) Asking the secretary how soon the buyer will be available.
B) Reading a magazine to clear your head and relax.
C) Organizing materials for the sales presentation.
D) Completing call reports that you will send to your boss.
E) Studying promotional material prepared by your marketing department.

Question 61

Rick Preston, a pharmaceutical sales representative, has a new kidney medication available. He is in the process of identifying physicians in his territory that might be interested in the new drug and estimating the sales potential of each. Rick is in the process of:

A) customer sales planning.
B) route reporting.
C) sales call allocation.
D) account analysis.
E) quota scheduling.

Question 62

Which of the following statements about undifferentiated selling is true?

A) The undifferentiated selling approach is only useful if customers are heterogeneous.
B) Many door-to-door salespeople use the undifferentiated approach.
C) The undifferentiated selling approach allows salespeople to devote time to customers in proportion to the customer's potential value.
D) The undifferentiated selling approach allows salespeople to streamline their pre-call preparation and thus is growing in popularity.
E) Undifferentiated selling cannot be used in conjunction with a stimulus-response presentation.

Question 63

Sales territories are a disadvantage for some firms in all of the following cases EXCEPT when:

A) sales performance is difficult to monitor and evaluate.
B) personal friendships are the basis for attracting customers.
C) salespeople are more motivated if they are not restricted by territorial boundaries.
D) the company is too small to be concerned about segmenting the market into sales areas.
E) management lacks the knowledge, time, and interest to develop and establish sales territories.

Question 64

Account analysis:

A) identifies accounts and their varying levels of sales potential.
B) begins with an estimate of a prospect's past sales.
C) involves four general approaches.
D) requires management oversight.
E) is another form of value analysis.

Question 65

The two general approaches to ________ are the undifferentiated selling approach and the account segmentation approach.

A) customer sales planning.
B) route reporting.
C) sales call allocation.
D) account analysis.
E) quota scheduling.

Question 66

The account segmentation approach to territory management is used to:

A) insure equal treatment of the firm's prospects.
B) prevent dependence on the 80/20 principle.
C) insure equal treatment of the firm's customers.
D) increase the profitability of the territory.
E) insure equal treatment of the firm's salespeople.

Question 67

When a salesperson refers to her key accounts, she is talking about her ________ accounts.

A) newest
B) homogeneous
C) extra-large
D) undifferentiated
E) break-even

Question 68

An insurance company should most likely:

A) form territories based on income distribution.
B) make geographical sales territories.
C) avoid making distinct sales territories.
D) make small, local sales territories.
E) have territories with only prospects.

Question 69

Salespeople using the ________ approach recognize their territories contain accounts with heterogeneous needs and differing characteristics that require different selling strategies.

A) account segmentation
B) market diversification
C) undifferentiated selling approach
D) territorial development
E) market penetration

Question 70

Which of the following companies is most likely to avoid the formation of sales territories?

A) A large distributor of books
B) A global consumer products manufacturer
C) A leading manufacturer of small engines
D) A small company that makes custom architectural pieces
E) A company that supplies the inventory for convenience stores in 35 states

Question 71

The undifferentiated selling approach is used by the salesperson when:

A) accounts in a market are similar.
B) customers are primarily heterogeneous.
C) the product line is varied with unique uses.
D) major distinctions exist in a geographic region.
E) accounts have different needs and characteristics.

Question 72

The first step of territory management is:

A) setting quotas.
B) seeking referrals.
C) scheduling calls.
D) planning travel routes.
E) engaging in prospecting.

Question 73

After conducting an account analysis in the time and territory management process, salespeople should:

A) set account objectives and sales quotas.
B) manage scheduling and routing.
C) conduct customer sales planning.
D) evaluate customers and accounts.
E) conduct territory evaluations.

Question 74

For the salesperson, territory management :

A) is only useful during busy seasons.
B) is most relevant during periods of economic recession.
C) is only useful when the salesperson is selling homogeneous products.
D) is a continuous process of planning, executing, and evaluating.
E) requires an efficient and effective sales manager.

Question 75

Which selling approach would most likely involve a salesperson using the same selling strategy for all customers?

A) Homogeneous selling
B) Heterogeneous selling
C) Account segmentation
D) TTM segmentation
E) Undifferentiated selling

Question 76

In most cases, the total sales quota for a salesperson is:

A) the same for all salespeople in the company.
B) set by the individual salesperson.
C) set by the sales manager.
D) fluctuating and flexible.
E) based on new accounts.

Question 77

Which of the following companies would LEAST likely form sales territories?

A) McGraw-Hill Publishing
B) Century-21 Real Estate
C) Anheuser Busch
D) Hewlett Packard
E) Proctor & Gamble

Question 78

The two general approaches to account analysis for salespeople are:

A) time and territory management.
B) undifferentiated selling and account segmentation.
C) mass marketing and target marketing.
D) personal selling and mass selling.
E) homogeneous selling and heterogeneous selling.

Question 79

Stephen started a new company that offers house-cleaning services. He decided to reach out to homeowners in his neighborhood to promote his services. Which selling approach will most likely be used by Stephen?

A) Account segmentation
B) Undifferentiated
C) Customized
D) Specific
E) Unstructured

Question 80

A company may avoid establishing sales territories if:

A) it uses a matrix organizational structure.
B) personal friendships attract customers.
C) the company uses qualitative evaluations.
D) the company has no key accounts.
E) sales expenses are rising.