Question 1

It is typically more difficult to maintain high sales productivity at smaller salesforce sizes.

Accepted Answer

A) True 
 B)False  False

Question 2

Span of control refers to

Accepted Answer

A)   the frequency with which subordinates are required to report to their immediate supervisor.
B)   the number of different hierarchical levels of sales management within the organization.
C)   the number of individuals that report to each sales manager.
D)   the actual structure of the sales organization, whether it is considered flat or tall.
E)   the amount of decision-making responsibility that each sales manager holds. C

Question 3

When the firm offers a complex range of products and customers have different needs a ________ salesforce is recommended.

Accepted Answer

A)   market specialized
B)   product specialized
C)   geographically specialized
D)   product-market specialized
E)   functionally specialized D

Question 4

Advances in computer hardware and software have made the task of territory design much simpler and less time consuming than in the past.

Accepted Answer

A) True 
 B)False

Question 5

The basic objective of market specialization is

Accepted Answer

A)   for salespeople to become experts in the assigned product category.
B)   to guarantee that there will be no duplication of selling effort.
C)   to ensure that salespeople understand how customers use and purchase their products.
D)   to more cost effectively serve the different needs of the customer.
E)   to make sure the needs of the large-volume customers are identified and met.

Question 6

The size of a firm's salesforce determines the total amount of selling effort that is available to call on accounts and prospects.

Accepted Answer

A) True 
 B)False

Question 7

When finalizing territory design, the objective is to achieve the best possible balance between opportunity and workload for each territory.

Accepted Answer

A) True 
 B)False

Question 8

Three different analytical methods that can be used to determine the appropriate salesforce size are as follows:

Accepted Answer

A)   incremental, decision, single factor.
B)   productivity, breakdown, incremental.
C)   territory, workload, zone.
D)   breakdown, decision, workload.
E)   workload, breakdown, incremental.

Question 9

One of the most important factors in determining the appropriate type of specialization is the complexity of products offered by the firm.

Accepted Answer

A) True 
 B)False

Question 10

One of the most important factors in determining the appropriate type of specialization is the similarity of customer needs.

Accepted Answer

A) True 
 B)False

Question 11

Research indicates that the effectiveness of the strategic account salesforce depends upon, in part, top management involvement.

Accepted Answer

A) True 
 B)False

Question 12

In a tall sales management structure

Accepted Answer

A)   there are more sales management levels and smaller spans of control.
B)   there would be more district sales managers and less use of regional sales managers.
C)   there are few sales management levels with each sales manager having a relatively large span of control.
D)   there is a tendency for the organization to have a decentralization orientation.
E)   the span of control tends to increase at higher sales management levels.

Question 13

With product specialization, there may be duplication in the coverage of geographic areas.

Accepted Answer

A) True 
 B)False

Question 14

When a firm's competitive position is strong, and account opportunity is high, the selling effort strategy should be to:

Accepted Answer

A)   perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts.
B)   provide minimal selling effort to accounts and replace the personal selling effort with advertising.
C)   invest heavy selling effort in accounts to take advantage of opportunity and maintain/improve competitive position.
D)   invest sufficient selling effort in accounts to maintain current competitive position.
E)   provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

Question 15

When the firm has a simple product offering and customers have similar needs a ________ salesforce is recommended.

Accepted Answer

A)   market specialized
B)   product specialized
C)   geographically specialized
D)   product-market specialized
E)   functionally specialized

Question 16

Sales managers are likely to make just as good sales effort allocation decisions relying totally on judgment and intuition as they would make with the single factor model.

Accepted Answer

A) True 
 B)False

Question 17

"Farmers" and "hunters" are both designations for salespeople that are good at uncovering prospects and establishing new accounts.

Accepted Answer

A) True 
 B)False

Question 18

Centralization refers to the degree to which important decisions and tasks are performed at higher levels in the management hierarchy.

Accepted Answer

A) True 
 B)False

Question 19

The basic concept of the portfolio model is that each account served by a firm can be considered as part of an overall portfolio of accounts.

Accepted Answer

A) True 
 B)False

Question 20

Typically, span of control is _________ related to the number of sales management levels.

Accepted Answer

A)   directly
B)   not
C)   indirectly
D)   only sometimes
E)   inversely

Exam 3: Sales Organization Structure and Salesforce Deployment

It is typically more difficult to maintain high sales productivity at smaller salesforce sizes.

Span of control refers to

When the firm offers a complex range of products and customers have different needs a ________ salesforce is recommended.

Advances in computer hardware and software have made the task of territory design much simpler and less time consuming than in the past.

The basic objective of market specialization is

The size of a firm's salesforce determines the total amount of selling effort that is available to call on accounts and prospects.

When finalizing territory design, the objective is to achieve the best possible balance between opportunity and workload for each territory.

Three different analytical methods that can be used to determine the appropriate salesforce size are as follows:

One of the most important factors in determining the appropriate type of specialization is the complexity of products offered by the firm.

One of the most important factors in determining the appropriate type of specialization is the similarity of customer needs.

Research indicates that the effectiveness of the strategic account salesforce depends upon, in part, top management involvement.

In a tall sales management structure

With product specialization, there may be duplication in the coverage of geographic areas.

When a firm's competitive position is strong, and account opportunity is high, the selling effort strategy should be to:

When the firm has a simple product offering and customers have similar needs a ________ salesforce is recommended.

Sales managers are likely to make just as good sales effort allocation decisions relying totally on judgment and intuition as they would make with the single factor model.

"Farmers" and "hunters" are both designations for salespeople that are good at uncovering prospects and establishing new accounts.

Centralization refers to the degree to which important decisions and tasks are performed at higher levels in the management hierarchy.

The basic concept of the portfolio model is that each account served by a firm can be considered as part of an overall portfolio of accounts.

Typically, span of control is _________ related to the number of sales management levels.