Deck 13: Time,Territory,and Self-Management

Question 1

Which of the following statements about sales territories is true?

A) A sales territory typically contains homogeneous customers of the same size and buying habits.
B) By definition, sales territories have geographic boundaries.
C) Sales territories are intended to insure thorough coverage of the market.
D) A sales territory typically contains the potential for an organization to breakeven.
E) Sales territories are used to increase sales expense.

Answer 1

C

Question 2

A company directs its sales force members to use multiple selling strategies.What is its salespeople expected to do?

A) split commissions if a buyer's purchasing office is in one salesperson's territory and the retail outlet in the territory of another salesperson
B) have several sales approaches planned so that if their first sales attempt is unsuccessful, they can shift to an alternate approach without delay
C) develop a variety of plans for selling the numerous products in the company's product line to a variety of different market segments
D) invest the bulk of their time and other resources in the large, important accounts in their territories
E) develop one form of presentation for existing accounts and another for prospects

Answer 2

C

Question 3

Hans is a manufacturer's salesperson.He finds it useful to divide the accounts in his territory on the basis of their actual yearly sales volume.What strategy is Hans using?

A) multivariable account segmentation
B) dual segmentation marketing
C) ELMS system
D) total territory management
E) dual positioning

Answer 3

C

Question 4

Sue Jackson sells text books for a very large publisher employing hundreds of salespeople.She is new to the job and would like to establish "good" sales goals for herself.Which of the following statements would NOT be a good example of a goal for Sue?

A) find two new customers per week
B) become the company's top salesperson in one month
C) make the list of top new salespeople at least twice this year
D) convert 50 percent of prospects into customers over the next year
E) generate at least $45,000 in commission in the first year

Question 5

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 this 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 precall preparation, and thus, is growing in popularity.
E) If several undifferentiated product groups are sold, different approaches will be needed.

Question 6

Which of the following would be potential reason(s)for NOT establishing a sales territory?

A) salespeople may be more motivated if not restricted to a certain area
B) the company itself may be too small for market segmentation issues to surface
C) the skill sets required for territory management may not be available to the company
D) personal friendships may be the basis for attracting customers
E) all of these choices are correct

Question 7

A particular salesperson develops the following goal or objective; "To increase the number of sales calls each day." What kind of objective or goal is this?

A) product goal
B) created demand goal
C) account objective
D) time allocation goal
E) sales position objective

Question 8

Which of the following would NOT be a strong enough reason to establish a specific sales territory?

A) to establish the responsibilities of their salespeople
B) to reduce sales expenses
C) to allow for a good fit between salesperson and the territories they serve
D) to benefit the general manager's personal schedule
E) to obtain thorough coverage of the market

Question 9

What factors or variables shape a great sales culture or environment?

A) being recognized by management for a job well done
B) income
C) being empowered to make decisions
D) being respect for your knowledge and experience
E) all of these choices are correct

Question 10

A local company has asked you to provide advice on what they should consider before establishing sales territories.Which of the following would NOT likely be included in your advice?

A) to better establish a salesperson's responsibilities
B) to aid in reaching the firm's objectives
C) to facilitate utilization of an undifferentiated selling approach
D) to afford company salespeople the opportunity to meet their personal needs and reach sales objectives for the company
E) to allow better matching of salesperson to customer's needs

Question 11

Which of the following describes the notion of "sales response function"?

A) an effective SCRM system
B) breaking down sales by segments
C) the ratio of sales volume to sales calls
D) how a client responds to your sales strategy
E) the response call positioning

Question 12

Mr.Lee is the owner of a hockey equipment manufacturer based out of Montreal.He likes to segregate his customers based on the following four classification; Professional teams,Semi-pro teams,Schools and Universities,and Not-for-profit teams.What approach to segmentation is Mr.Lee using?

A) the OAKS segmentation method
B) the account segmentation method
C) the dual differentiation method
D) the multi-segmentation method
E) the total territory management method

Question 13

What is one main reason why a salesperson should segment their accounts by size?

A) reduce the amount of time they spend with large accounts
B) improve the turn-around time in visiting clients
C) perform a SELL analysis
D) ensure they use their time appropriately
E) all of these choice are correct

Question 14

When using the ELMS system to differentiate accounts,what do territory managers usually use to classify the accounts?

A) determine demographic characteristics so that the needs of the customers match the abilities of the salespeople
B) rate salespeople at performance appraisal time
C) match the personalities of salespeople to those of their customers
D) create the most efficient travel routes for salespeople
E) categorize accounts in terms of profitability

Question 15

Which of the following statements captures the 80/20 principle in sales?

A) is a territorial management concept that favours a salesperson putting 80 percent of his time on planning and 20 percent on action
B) refers to the fact that eighty salespeople require twenty sales managers to keep the appropriate 4-to-1 ratio of supervisors to employees
C) indicates that no matter how hard a salesperson tries 20 percent of the customer's potential business ends up going to competitors
D) is a territorial management concept that favours a salesperson putting 80 percent of her time on action and 20 percent on planning
E) refers to the idea that a small portion of a firm's customers account for a large portion of its profitable sales

Question 16

Which of the following statements about the account segmentation approach to territory management is NOT true?

A) should be used in conjunction with the undifferentiated selling approach
B) should be used when customer needs are heterogeneous
C) should be used when different selling strategies are needed for each market segment
D) should you notice customers have different characteristics in your territory
E) none of these choices are correct

Question 17

Why do so many companies concentrate on improving the way their salespeople manage their time and territories?

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) all of these choices are correct

Question 18

When would a salesperson use the undifferentiated selling approach?

A) his company has a single target market
B) his customers are heterogeneous
C) the product line is varied and has different uses
D) he does not have time to make distinctions among the various accounts in the territory
E) all of these choices are correct

Question 19

What is the first of the seven key elements of proper time and territory management for the salesperson?

A) establishment of the quota for the salesperson's territory
B) customer sales planning
C) account analysis
D) territory and customer evaluation
E) none of these choices is correct

Question 20

Which of the following terms best describes the notion of a "key account"?

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

Question 21

Which of the following are suggestions offered in the textbook to help you manage your sales time effectively?

A) work your numbers so you know how many prospects you have to visit to meet your goals
B) use a set time each day for certain sales activities
C) leverage your lunch break
D) stay focused on your task
E) all of these choices are correct

Question 22

What is the most likely reason why a company would provide strict route plans for its salespeople?

A) to improve collection of overdue accounts
B) to communicate with salespeople about expected location and activities
C) to promote the individual's planning experience
D) to minimize territory size
E) to maximize the utility of the salesperson's weekly report

Question 23

What activity is a salesperson engaged in when he/she uses online mapping services when planning her client visits?

A) Account grouping
B) Account time allocation
C) Customer sale planning
D) Routing
E) Scheduling

Question 24

Which of the following statements about how a Canadian salesperson does business in Russia is true?

A) When a Russian gives a direct "no," his mind cannot be changed.
B) Business cards are good-bilingual cards are better.
C) The Russians keep their social life separate from their business life.
D) Once a sale is made to a Russian business, the sales agreement will not be modified--even if conditions change.
E) All of these choices are correct.

Question 25

Which of the following conditions would NOT be conducive to using a telephone or smart-phone in a sales activity?

A) for handling routine transactions such as re-ordering
B) satisfy part of the service needs of accounts
C) to facilitate the servicing of accounts that have little impact on your sales totals
D) to slowly phase out personal contact with some major accounts
E) for prospecting activities

Question 26

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

A) If she is lunching with a client, she should keep an eye on the clock so that she does not monopolize too much of her buyer's time.
B) He should have a drink only if his client suggests it because some buyers do not approve of alcohol.
C) When taking a client to lunch, she should try to get the order signed before her return to the client's office where something may have come up that will distract the buyer.
D) If he is lunching alone, he should use the time to read something relaxing and get his mind off business.
E) None of these choices are correct.

Question 27

Which of the following statements about using routing reports is true?

A) decreases territory coverage.
B) maximizes the travel experience for the salesperson.
C) salespeople are seldom, if ever, asked to specify specific times and accounts on their routing reports
D) A routing report allows the salesperson's immediate supervisor to know where to find him/her
E) All large companies have established strict guidelines for routing

Question 28

The old adage "time is money" resonates with many successful salespeople.Which of the following would NOT be variables that a successful salesperson would include in a time management plan?

A) develop monthly, weekly, and daily sales plans each having different levels of information and detail
B) uses the time management plan to populate sales presentation material
C) makes sure that prospects in the plan are qualified
D) ensures prospects included in the plan have the potential or are profitable
E) uses the plan to coordinate and leverages waiting times

Question 29

Typically the salesperson invests time in direct proportion to the actual or potential sales that the account represents.What is the term that best describes this relationship?

A) sales response function
B) break-even point
C) basis for time allocation
D) basis for territory evaluation
E) correlation of effort and reward

Question 30

Which of the following best describes activities associated with territory evaluation?

A) engaging in routing and scheduling activities
B) establishing territorial goals and evaluating performance against those goals
C) dividing and analysing accounts in a territory according to their potential
D) limiting the number of new accounts that may be added to a particular territory
E) developing sales call objectives and profiling potential prospects in a territory

Question 31

One of your colleagues comes to you looking for some advice.No matter what she does,she seems to be always buried in paperwork often impacting her ability to spend time with her clients.What advice would you give here?

A) tell her to postpone doing paper work until absolutely necessary or when she starts to receive calls from HO
B) tell her she was hired for her sales ability not her administrative skills - HO will understand
C) tell here to develop a daily schedule that includes an element of administrative work; evenings or in between sales calls are great times to schedule these activities
D) tell her to accumulate the paperwork, and take care of it at regularly planned monthly intervals
E) none of these choices are correct.

Question 32

Which of the following statements describes the "straight line routing" method?

A) Draw a straight line from your home base and start calling clients that are located near your home base first.
B) It is a statistical tool that helps you identify the best fit line so as to minimize travel time.
C) It is a system of aligning your accounts starting with your most profitable and ending with you least profitable. Then, call on the most profitable first notwithstanding its geographical position.
D) It is a routing system particularly useful in large metropolitan centers.
E) Draw a straight line from your home and start calling those accounts located the farthest away first. Then, work your way back towards home as you visit clients. The goal is to end your day as close to home as possible.

Question 33

Which of the following statements about using the telephone for territory coverage is true?

A) The telephone can be useful for handling complaints.
B) It is appropriate to use the telephone to develop leads and qualify prospects.
C) Computers facilitate the use of the telephone in selling.
D) If possible, the telephone should be used to replace some personal visits to geographically distant accounts.
E) All of these choices are correct.

Question 34

Jill is feeling pretty stressed out at her sales job.The deadlines and quotas are getting to her.Which of the following would be useful tips for Jill to consider?

A) prioritize tasks and handle them one at a time
B) use physical relaxation techniques like meditation
C) set realistic goals so you can experience some success
D) get enough sleep and eat properly
E) all of these choices are correct

Question 35

What is the process of analyzing each prospect and customer to maximize the chances of reaching a sales goal?

A) time management
B) undifferentiated selling
C) time allocation
D) account analysis
E) account segmentation

Question 36

Which of the following is NOT one of the seven variables discussed in the textbook that should be considered when a salesperson attempts to determine how much time should be spent calling on customers in a specific territory?

A) number of accounts in the territory
B) return on time invested
C) non-selling time
D) clients' receptivity to new products
E) travel time around the territory

Question 37

As the office furniture salesperson plans her activities for next week,she is establishing a certain day and time to visit each customer's place of business.What activity is this salesperson engaged in?

A) account grouping
B) scheduling
C) customer time allocation
D) customer sale planning
E) routing

Question 38

You are the salesperson for a wholesale business that makes CRM platforms for a variety of different industries.Which of the following variables will lead you to increase the numbers of visits to a particular wholesaler?

A) the complexity of the systems sold decreases
B) the number of orders placed decreases
C) future sales potential decreases
D) the number of different CRM systems sold to the wholesaler increases
E) the total number of managerial levels increases

Question 39

Which of the following would NOT be a characteristic of a "good goal" identified in the textbook?

A) specific
B) conservative
C) measurable
D) reachable
E) motivating

Question 40

Bruce describes his employer has having a collegial atmosphere with teamwork,well communicated and clear performance expectations,a high level of employee empowerment and opportunities to earn high income levels.Which of the following terms best describes Bruce's employer?

A) a selling team
B) a buying centre
C) a great sales environment
D) an empowered organization
E) a management team

Question 41

The process of determining if an account has the potential to warrant a visit by the salesperson broadly describes the process of prospecting.

Question 42

According to a national survey of salespeople,the most important factor in facilitating the carrying out of their selling duties is time and territory management.

Question 43

The term scheduling refers to the travel pattern the salesperson uses in working his or her territory.

Question 44

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

Question 45

The development of individual territory and time usage objectives is called territory-time allocation.

Question 46

One of the reasons why some companies do not enforce strict territory criteria is based on the notion that in some industries such as real estate and insurance sales are often based on personal connections and friendships.

Question 47

Social media is used by many salespeople to drive sales and stay connected with their customers.Often,these salespeople budget a certain portion of the day to undertake social media activities relevant to their sales activities.

Question 48

Evidence suggests there is an inverse relationship between the number of sales calls made and actual products sold by salespeople.

Question 49

Companies that enforce formalized route designs often do it to maximize territory coverage by the salesperson.

Question 50

Salespeople using the account segmentation approach believe their territory has accounts with different needs and characteristics; hence,different selling strategies need to be deployed to maximize potential revenue.

Question 51

A salespersons should allocate their time based on the location of the account?

Question 52

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

Question 53

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

Question 54

According to the text,there is no industry in which sales territories are more rigorously enforced than the insurance industry.

Question 55

The setting of objectives is important to help meet sales goals.

Question 56

The following is an example of a good sales goal: "Carlos will be more successful this year."

Question 57

The term sales response function of a customer refers to the relationship between sales volume and sales effort.

Question 58

Homogeneous markets may well be served by an undifferentiated selling plan.

Question 59

In general terms,it is NOT a best practice for salespeople to establish a minimum number of times they will visit each class of accounts.

Question 60

Time and territory management includes several different yet at times related activities.Which of these activities would you NOT include under the umbrella of time and territory management?

A) setting up sales quotas for the territory
B) performing account analysis
C) setting up objectives for each account
D) fine tuning your sales strategy when evaluation performance
E) switching accounts between colleagues working for the same company

Question 61

When salespeople set goals,they should meet 4 criteria.What are they and provide an example that incorporates these four criteria?

Question 62

Most firms do NOT allow their salespeople to have considerable latitude in routing their sales calls.

Question 63

Mike,a general sales manager establishes sales quotas for each salesperson based in part on the potential of a specific territory.Then,the salesperson must perform an account analysis for each prospect and customer to attempt to maximize the chances of reaching his/her sales goals.

Question 64

An inexperienced sales person is trying to determine the number of times he/she should call on customers assigned to her territory.If asked,what would you tell this salesperson that would help him/her determine if an increase in frequency of visits to specific customers in his/her territory is warranted?

Question 65

Given the importance of developing sales territories it is odd that some companies would not partake in this activity.Based on the information provided in the textbook,what are some of the potential reasons why some companies do not develop sales territories? Provide two examples of industries that find it disadvantageous having specific sales territories assigned to specific sales people.

Question 66

What are the two general approaches used for account analysis and,what are some variables a salesperson should consider when choosing between these two approaches?

Question 67

What is the relationship between the ELMS system and the 80/20 principle?

Question 68

The Straight-Line method and the Major-Client method are examples of account segmentation strategies.

Question 69

It is common knowledge of those in the sales profession that a consumer goods salesperson should segment accounts by size to ensure those customers who contribute the most to his sales success receive the most attention.

Question 70

Why would a company insist that its salespeople stick to strict route designs?

Question 71

The seventh step in the process of time and territory management is customer evaluation.This last step allows the salesperson to compare projected sales results against what the company developed as targets for each territory.