Deck 6: Sales Force Planning and Organizing

Question 1

Sales managers who recruit and select a sales force without planning are likely to find themselves continually

A) under-hiring employees
B) over-hiring employees
C) firing employees
D) all the above

Answer 1

all the above

Question 2

Similarly, sales managers who organize, train, motivate, or evaluate salespeople without a plan are likely to be frequently

A) reorganizing
B) retraining
C) high sales force turnover
D) all the above

Answer 2

all the above

Question 3

Although there are different levels of organizational planning, the focus of strategic planning is on:

A) branch plans and budgets
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) company mission, vision, goals, primary strategies, overall budgeting
D) unit plans and budget

Answer 3

company mission, vision, goals, primary strategies, overall budgeting

Question 4

Although there are different levels of organizational planning, the focus of tactical planning is on:

A) branch plans and budgets
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) company mission, vision, goals, primary strategies, overall budgeting
D) unit plans and budget

Question 5

Although there are different levels of organizational planning, the focus of monthly and weekly planning is on:

A) branch plans and budgets
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) company mission, vision, goals, primary strategies, overall budgeting
D) unit plans and budget

Question 6

Although there are different levels of organizational planning, the focus of daily planning is on:

A) branch plans and budgets
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) company mission, vision, goals, primary strategies, overall budgeting
D) unit plans and budget

Question 7

CEO, boards, presidents, senior VPs engage in:

A) daily planning
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) monthly and weekly planning
D) company mission, vision, goals, primary strategies, overall budgeting

Question 8

The general sales manager, director of marketing engage in:

A) daily planning
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) monthly and weekly planning
D) company mission, vision, goals, primary strategies, overall budgeting

Question 9

Sales supervisors and sales reps engage in:

A) daily planning
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) monthly and weekly planning
D) company mission, vision, goals, primary strategies, overall budgeting

Question 10

Regional sales managers engage in:

A) daily planning
B) departmental, yearly, and quarterly plans, policies, procedures, budgets
C) monthly and weekly planning
D) company mission, vision, goals, primary strategies, overall budgeting

Question 11

The general sales manager, director of marketing engage in:

A) strategic planning
B) daily planning
C) monthly and weekly planning
D) tactical planning

Question 12

Sales supervisors and sales reps engage in:

A) strategic planning
B) daily planning
C) monthly and weekly planning
D) tactical planning

Question 13

CEO, boards, presidents, senior VPs engage in:

A) strategic planning
B) daily planning
C) monthly and weekly planning
D) tactical planning

Question 14

General, long-range destinations refer to:

A) objectives
B) goals
C) procedures
D) policies

Question 15

Specific results desired within a designated time frame-usually the period covered by the annual sales plan are known as:

A) objectives
B) goals
C) procedures
D) policies

Question 16

Predetermined approaches for handling routine matters or reoccurring situations refer to:

A) objectives
B) goals
C) procedures
D) policies

Question 17

Detailed descriptions of specific steps for carrying out actions are known as:

A) strategy
B) procedures
C) tactics
D) policies

Question 18

An overall program of action for using resources to achieve a goal or objective refer to:

A) strategy
B) goals
C) tactics
D) policies

Question 19

Planning provides which of the following benefits?

A) it improves morale
B) it improves cooperation and coordination
C) it increases flexibility
D) all of the above

Question 20

Strategic planning (as opposed to tactical planning) is usually performed mainly by

A) general sales managers
B) regional sales managers
C) sales supervisors
D) chief executive officers

Question 21

Policies are

A) predetermined approaches for handling routine matters
B) detailed descriptions of specific steps for carrying out actions
C) overall programs of action for using resources to achieve a certain goal or objective
D) day-to-day actions comprising the strategic plan

Question 22

The first step in the sales management planning process is:

A) develop strategies
B) determine market potential and forecast sales
C) analyze the situation
D) set goals and objectives

Question 23

The third step in the sales management planning process is:

A) develop strategies
B) determine market potential and forecast sales
C) analyze the situation
D) set goals and objectives

Question 24

The fourth step in the sales management planning process is:

A) develop strategies
B) determine market potential and forecast sales
C) analyze the situation
D) set goals and objectives

Question 25

The fifth step in the sales management planning process is:

A) develop strategies
B) allocate resources and develop budgets
C) implement the plan
D) evaluate and control

Question 26

The sixth step in the sales management planning process is:

A) allocate resources and develop budgets
B) develop strategies
C) implement the plan
D) evaluate and control

Question 27

The seventh step in the sales management planning process is:

A) develop strategies
B) allocate resources and develop budgets
C) evaluate and control
D) implement the plan

Question 28

In analyzing the current situation under the sales management planning process, sales managers ought to consider which of the following variables?

A) sales and cost data
B) competition
C) distribution systems
D) all of the above

Question 29

When beginning the planning process, sales managers should consider six basic questions. "Where are we now?" is associated with:

A) diagnosis
B) prognosis
C) objectives
D) strategy

Question 30

When beginning the planning process, sales managers should consider six basic questions. "Where are we headed if no changes are made?" is associated with:

A) diagnosis
B) prognosis
C) objectives
D) strategy

Question 31

When beginning the planning process, sales managers should consider six basic questions. "Where should we be headed?" is associated with:

A) diagnosis
B) prognosis
C) objectives
D) strategy

Question 32

When beginning the planning process, sales managers should consider six basic questions. "What actions need to be taken by whom, and when?" is associated with:

A) diagnosis
B) tactics
C) objectives
D) strategy

Question 33

When beginning the planning process, sales managers should consider six basic questions. "What measures must be monitored so we know how we're doing?" is associated with:

A) diagnosis
B) prognosis
C) control
D) strategy

Question 34

Sales potential is defined as

A) the maximum possible sales for a company
B) the maximum possible sales for an entire industry
C) the maximum possible sales without increasing promotional expenditures
D) the maximum possible sales for the entire United States

Question 35

Market potential is always _____________ market capacity.

A) greater than
B) equal to
C) less then
D) inversely related to

Question 36

The maximum possible sales for an entire industry is known as___________.

A) market capacity
B) market potential
C) sales potential
D) market development

Question 37

___________ refers to the maximum possible sales for a company.

A) market capacity
B) market potential
C) sales potential
D) market development

Question 38

___________ refers to the units the market will absorb if the product or service is free.

A) market capacity
B) market potential
C) sales potential
D) market development

Question 39

Anthony Davenport is a progressive sales manager who wants to embark on a growth strategy for his sales organization. After considering various growth strategies, he has decided to select a market development strategy because it seeks to

A) increase sales of current products in current markets
B) sell current products in new markets
C) sell new products in current markets
D) sell new products in new markets

Question 40

If a sales manager is trying to stimulate sales growth by using a market penetration strategy, which of the following best describes this approach?

A) increase sales of current products in current markets
B) sell current products in new markets
C) sell new products in current markets
D) sell new products in new markets

Question 41

According to the Boston Consulting Group's "Growth/Market Share Matrix" ___________ are low market share and low market growth products.

A) cash cows
B) dogs
C) stars
D) problem children

Question 42

According to the Boston Consulting Group's "Growth/Market Share Matrix" ___________ are high market share and high market growth products.

A) cash cows
B) dogs
C) stars
D) problem children

Question 43

According to the Boston Consulting Group's "Growth/Market Share Matrix" ___________ are high market share and low market growth products.

A) cash cows
B) dogs
C) stars
D) problem children

Question 44

Based on the Boston Consulting Group's "Growth/Market Share Matrix" stars produce large amounts of cash. Thus, the strategy relative to stars possibly would be to:

A) invest more funds for future growth
B) invest more funds for future growth or consider divesting
C) milk profits to finance the growth of stars and question marks
D) consider withdrawing/divesting

Question 45

Based on the Boston Consulting Group's "Growth/Market Share Matrix" question marks are growing rapidly and consume large amounts of cash, thus having the potential to become stars. Thus, the strategy relative to question marks possibly would be to:

A) invest more funds for future growth
B) either invest more funds for future growth or consider divesting
C) milk profits to finance the growth of stars and question marks
D) consider withdrawing/divesting

Question 46

Based on the Boston Consulting Group's "Growth/Market Share Matrix" cash cows are leaders in mature markets and produce much more cash than they consume. Thus, the strategy relative to cash cows possibly would be to:

A) invest more funds for future growth
B) either invest more funds for future growth or consider divesting
C) milk profits to finance the growth of stars as well as turn question marks to stars
D) consider withdrawing/divesting

Question 47

Based on the Boston Consulting Group's "Growth/Market Share Matrix" dogs do not consume much cash but also do not produce any. Thus, the strategy relative to dogs possibly would be to:

A) invest more funds for future growth
B) either invest more funds for future growth or consider divesting
C) milk profits to finance the growth of stars as well as turn question marks to stars
D) consider withdrawing/divesting

Question 48

Which of the following is a growth strategy least likely to be used by sales managers?

A) market development
B) product development
C) diversification
D) entrenchment

Question 49

Relative to the four types of growth strategies, ____________ focuses on increasing sales of current products in current markets by more intensive marketing efforts.

A) market development
B) product development
C) diversification
D) market penetration

Question 50

Relative to the four types of growth strategies, ____________ focuses on opening up new markets for current products.

A) market development
B) product development
C) diversification
D) market penetration

Question 51

Relative to the four types of growth strategies, ____________ focuses on the creation of new or improved products for current markets by adding new sizes, models with new features, alternative quality versions, or creative new alternatives to satisfy the same basic needs

A) market development
B) product development
C) diversification
D) market penetration

Question 52

Relative to the four types of growth strategies, ____________ focuses on creating new products for entering new markets by introducing new product lines or purchasing new businesses.

A) market development
B) product development
C) diversification
D) market penetration

Question 53

A program evaluation and review technique (PERT) network is often used for planning and scheduling. As part of the PERT network, the project's critical path is

A) the sequence of tasks that requires the longest time to complete
B) the sequence of tasks to be completed, the time to complete each activity, and the responsible individuals
C) the one that includes the most complex/costly tasks
D) the one which has the most slack time
E) the sequence of tasks that focus on marketing activities

Question 54

All of the below are types of internal performance standards for controlling the sales plan except

A) industry averages
B) standard production costs
C) managerial expectations
D) customer satisfaction

Question 55

All of the below are types of internal performance measures for controlling the sales plan except

A) sales volume
B) new accounts
C) customer satisfaction
D) sales force turnover

Question 56

All of the below are types of internal performance measures for controlling the sales plan except

A) sales volume
B) societal satisfaction
C) market share
D) profit margins

Question 57

Probably the most important performance standards are __________ because they are based on the organization's objectives, forecasts, and budgetary support.

A) industry averages
B) past performance
C) managerial expectations
D) customer satisfaction

Question 58

An approach to planning that calls for a new set of assumptions that sometimes are directly opposite to the original set of assumptions is which one of the following?

A) contingency planning
B) sales audits
C) dialectic planning
D) contrarian planning

Question 59

A strategic planning approach that requires each plan to be challenged at every step (with consideration of a counter plan and new assumptions) is called

A) dialectic planning
B) contingency planning
C) computer simulation
D) "fail-safe" planning

Question 60

External measures which are critical to an organization's long run survival are

A) contingency planning
B) customer and societal satisfaction
C) managerial expectations
D) employee satisfaction

Question 61

The major cause of unsuccessful planning is

A) poorly trained sales managers
B) lack of adequate compensation
C) lack of consensus regarding goals and objectives
D) erroneous assumptions

Question 62

The purpose of the sales organization is to facilitate the accomplishment of marketing and sales objectives by:

A) shortening the time a sales manager needs to evaluate and respond to changing market needs
B) arranging activities efficiently
C) establishing and maintaining open channels of communication with customers, salespeople, support staff, and concerned stakeholders
D) all the above

Question 63

A sales organization can be structured in the following ways except

A) line
B) line and staff
C) divisional
D) functional

Question 64

Which of the following statements are not true with regard to line organizations?

A) A line organization is the most complex in design and the one most often used by larger firms
B) It typically consists of only a few managers who have authority over specific functional areas of the business, such as production, finance, or sales.
C) When a firm is small and managers interact frequently, line organizations are efficient and flexible
D) as firms grow, line organizations are much less effective because decision making is slower and managers have too many responsibilities

Question 65

Which of the following statements are not true with regard to functional organizations?

A) in functional organizations, staff specialists have line authority
B) the sales manager directs salespeople through district managers, but the director of sales training and the manager of technical services also have authority over the sales force
C) functional organizations are good as they do not create conflicts for salespeople
D) in functional structures, managers are highly qualified specialists whose job is to make sure their function is accomplished

Question 66

Which of the following statements are not true with regard to matrix organizations?

A) matrix organizations are typical in industries confronted with rapid technological changes and the need to quickly develop new products or services
B) traditional organizations are designed around projects, while matrix organizations revolve around functions
C) the firm's efforts focus on a specific project the functional areas are integrated into the project structure
D) the functional aspects are still present, they are secondary

Question 67

Which of the following would not be a way for sales management to organize the sales department?

A) by market
B) by supplier
C) by product
D) by geographic area

Question 68

Universities are usually organized:

A) by market
B) by supplier
C) by product
D) by geographic area

Question 69

Which of the following would not be organized geographically?

A) magazine publishers
B) universities
C) hotel chains
D) banks

Question 70

Which of the following statements are not true with regard to product-oriented organizations?

A) product-oriented organizations are appropriate when product lines are simple and require less individualized attention
B) products compete among themselves for profit
C) products compete among themselves market share
D) products compete among themselves for company resources

Question 71

Firms that sell products to the government, military, and commercial markets are usually organized:

A) by customer-market
B) by supplier
C) by product
D) by geographic area

Question 72

Utility firms (natural gas, electricity) are usually organized:

A) by customer-market
B) by supplier
C) by product
D) by geographic area

Question 73

Planning minimizes environmental shocks such as energy price increases, raw materials or component parts shortages, or major changes in tax laws.

Question 74

Although there are different levels of organizational planning, the focus of strategic planning is on Departmental, yearly, and quarterly plans, policies, procedures, budgets.

Question 75

Although there are different levels of organizational planning, the focus of tactical planning is on Company mission, vision, goals, primary strategies, overall budgeting.

Question 76

Although there are different levels of organizational planning, the focus of monthly and weekly planning is on Branch plans and budgets.

Question 77

Although there are different levels of organizational planning, the focus of daily planning is on Unit plans and budget.

Question 78

General, long-range destinations are known as objectives.

Question 79

Specific results desired within a designated time frame-usually the period covered by the annual sales plan refer to goals.

Question 80

Policies are known as predetermined approaches for handling routine matters or reoccurring situations.