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

Question 1

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

Answer 1

False

Question 2

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.

Answer 2

False

Question 3

Nonselling time is a factor to be considered in territory time allocation.

Answer 3

True

Question 4

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 5

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

Question 6

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

Question 7

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

Question 8

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 9

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

Question 10

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 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

All companies segment their markets into sales territories.

Question 18

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

Question 19

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

Question 20

According to the Golden Rule,how you spend your time greatly influences your level of sales success.

Question 21

If most accounts are in a straight line from your home,it is advisable to visit the closest one first and then move to the distant accounts.

Question 22

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

Question 23

For a salesperson,the critical factor in route planning is to minimize the number of miles traveled.

Question 24

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 25

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

Question 26

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

Question 27

The three basic routing patterns are straight-line,cloverleaf,and major-city.

Question 28

Experts recommend that salespeople limit themselves to no more than two routes per day to make sure enough time is spent with each customer.

Question 29

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 30

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

Question 31

Salespeople usually file routing reports weekly.

Question 32

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

Question 33

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

Question 34

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

Question 35

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 36

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

Question 37

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

Question 38

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 39

Many companies concentrate on improving the way their salespeople manage their time and territories 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 40

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

Question 41

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 42

For the salesperson,time and territory management (TTM):

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 43

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 44

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)territory-time allocation.
D)account analysis.
E)quota scheduling.

Question 45

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.

Question 46

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 47

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 48

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 49

The first step of time and territory management is:

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

Question 50

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 51

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 52

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

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

Question 53

Stephen started a new company which manufactures vacuum cleaners.He hired four salespeople and decided to use the door-to-door selling technique to sell his products.Which selling approach will most likely be used by the salespeople?

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

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

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 56

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 57

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 58

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 59

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 60

According to the text,which of the following is one of the objectives given for establishing sales territories?

A)To lower long-term company profits.
B)To improve customer relations and satisfaction.
C)To match the wants of the salesperson with the needs of the customers served.
D)To facilitate utilization of the undifferentiated selling approach.
E)To attain more efficiency in businesses based on personal friendships.

Question 61

Dividing accounts on the basis of market type and sales volume would be an example of:

A)multivariable account segmentation.
B)dual segmentation marketing.
C)reciprocal sales differentiation.
D)total territory management.
E)dual positioning.

Question 62

All of the following holds true for multivariable account segmentation EXCEPT that it:

A)characterizes the organization's account using more than one criterion.
B)is used by sales organizations who sell to several markets.
C)emphasizes the supply of similar products to channel members.
D)is used because organizations use many channel members.
E)allows sales personnel to develop plans for selling various products to specific segments of their accounts.

Question 63

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 64

The 80/20 principle can be used to explain why salespeople use:

A)the ELMS system to segment accounts in their sales territories.
B)trial closes a minimum of three times per sales call.
C)three different types of routing patterns.
D)waiting time for non-selling activities.
E)mobile offices and technology.

Question 65

_____ means using more than one criterion to characterize an organization's accounts.

A)Multivariable account segmentation
B)Key stoning
C)Parallel account integration
D)Territory-aggregate management
E)Double positioning

Question 66

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 67

The 80/20 principle:

A)is a territorial management concept that favors 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 1-to-4 ratio of supervisors to employees.
C)indicates that no matter how hard a salesperson tries,80 percent of the customer's potential business ends up going to competitors.
D)is a territorial management concept that favors a salesperson putting 80 percent of her time on action and 20 percent on planning.
E)refers to the idea that 20 percent of a firm's customers account for 80 percent of a firm's profitability.

Question 68

Jayson Jaworski is a manufacturer's salesperson.He finds it useful to divide the accounts in his territory on the basis of whether the buyer sells at the wholesale or retail level as well as according to the account's potential sales volume.Jaworski is using:

A)multivariable account segmentation.
B)dual segmentation marketing.
C)differentiated segmentation.
D)total territory management.
E)dual positioning.

Question 69

Which of the following is a method used to define accounts in terms of their size?

A)OAKS
B)KISS
C)FAB
D)ELMS
E)SELL

Question 70

According to the text,when a company directs its sales force members to use multiple selling strategies,this means salespeople are expected to:

A)split commissions if a buyer's purchasing office is in one salesperson's territory and the retail outlet is 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 different sales approaches for the different products in the company's product line.
D)invest the bulk of their time and resources in the large,important accounts in their territories.
E)develop one form of presentation for existing accounts and another for prospects.

Question 71

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 72

"To increase the total number of sales calls every month by 10," is an example of a(n):

A)territory allocation.
B)account analysis.
C)account objective.
D)sales quota.
E)sales positioning.

Question 73

Sheryl Ford,a senior salesperson at a large firm,was asked by her sales manager to handle a key customer at a distant place from her home.Sheryl was surprised because that area belonged to another salesperson.According to the text,what is the most likely reason for Sheryl's assignment?

A)Sheryl's area lacks key accounts,and the manager wants to distribute the accounts equally among the salespeople.
B)The salesperson in the customer's area is inexperienced.
C)The sales manager wants Sheryl to utilize her time better.
D)The sales manager is punishing Sheryl for breaking a sales policy.
E)The sales manager is trying to lower sales and travel expenses.

Question 74

The use of the ELMS system is most closely related to the:

A)FAB closing.
B)80/20 principle.
C)50-50 method.
D)SELL sequence.
E)KISS selling process.

Question 75

James Lambert is an assistant territory sales manager at Cellcom,a leading wireless service provider in Europe.James manages the salespeople in a small city in France.There are many players in the wireless service provider market,and it is becoming increasingly difficult to position the company as unique.What can James do to position Cellcom as a unique company,when compared to its competitors?

A)Reduce the call rates by half.
B)Increase the mass media advertising of Cellcom.
C)Instruct salespeople to spend more time on each sales call.
D)Ask salespeople to discuss the weakness of competition in every sales call.
E)Substantially reduce the salespeople's visits to the small accounts and increase the visits to key accounts.

Question 76

Sales managers use the ELMS system to:

A)identify demographic characteristics so that customer needs match sales goals.
B)evaluate salespeople during annual performance appraisals.
C)match the personalities of salespeople and customers.
D)create the most efficient travel routes for salespeople.
E)categorize accounts in terms of profitability.

Question 77

Hancock Distribution Company characterizes its customers according to their yearly sales potential and whether the account is a builder,a homeowner,or a government facility.This approach to segmentation is called:

A)OAKS selling.
B)multivariable account segmentation
C)dual differentiation.
D)dual segmentation marketing.
E)total territory management.

Question 78

Salespeople need to segment their accounts by the amount of revenue generated to:

A)reduce the amount of time they spend with large accounts.
B)improve the quality of their firm's advertising campaigns.
C)perform an OAKS analysis before a value analysis.
D)ensure they use their time appropriately.
E)accomplish all their personal goals.

Question 79

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 80

The ELMS system:

A)is used by the home office not by the individual salesperson.
B)classifies prospects according to how and when they were qualified.
C)classifies accounts to extra-large,large,medium,and small accounts.
D)categorizes according to geographic location relative to the home office.
E)classifies according to time spent on average with each buyer.