Question 1

Most organizations perform a complete marketing audit at least once a year.

Accepted Answer

A) True 
 B)False  False

Question 2

If the Magenta Corporation were to assign one salesperson to each of its Pacific Coast territories,a substantial difference in the potential volume and profit from the various territories is likely to occur as a result of:

Accepted Answer

A)  The SFA principle.
B)  The high cost of marketing.
C)  The mission statement.
D)  Misdirected marketing effort.
E)  The wheel of selling. D

Question 3

Planning and performance evaluation are particularly interdependent in the management process - either of these activities is not worth much without the other.

Accepted Answer

A) True 
 B)False  True

Question 4

A detailed study of the "net sales" section of a company's profit and loss statement is called a ____________ analysis.

Accepted Answer

A)  P & L
B)  Sales volume
C)  Marketing cost
D)  Marketing audit
E)  Historical

Question 5

If a firm has a total of exactly 10 customers,all of which buy the same amount of product;then instead of an 80-20 principle,it is really a:

Accepted Answer

A)  10-10 principle.
B)  30-30 principle.
C)  50-50 principle.
D)  80-80 principle.
E)  Any of these.

Question 6

Sales performance evaluation is least likely to include a:

Accepted Answer

A)  Marketing cost analysis.
B)  Sales volume analysis.
C)  Setting quotas for the sales force.
D)  Marketing audit.
E)  Review (study) of performance of individual sales reps.

Question 7

Management controls its sales force through the:

Accepted Answer

A)  compensation plan.
B)  quota system.
C)  territorial structure.
D)  training program.
E)  All of these.

Question 8

A territorial sales volume analysis is likely to include all of the following steps,except for:

Accepted Answer

A)  Establish a sales volume goal or quota for each territory.
B)  Determine actual total sales in each territory.
C)  Determine what percentage of total company sales should come from each territory.
D)  Determine how much is the variation between the actual sales and the quota-goal figure.
E)  Deduct territorial sales expenses.

Question 9

Which of the following is the best reason for continuing to carry a product when a sales volume analysis indicates it is a low-volume item?

Accepted Answer

A)  The item is needed to round out the company's product line.
B)  The product accounts for 5 percent of the sales volume and 2 percent of the profit.
C)  The primary demand for the product is declining.
D)  The product's gross margin is also low.
E)  The product was what gave the company its start in life.

Question 10

A total evaluation program in marketing is best described as:

Accepted Answer

A)  The marketing concept.
B)  A marketing audit.
C)  The management process.
D)  Marketing.
E)  Management of the sales force.

Question 11

A decline in a firm's sales volume indicates that competition is getting a larger share of the market.

Accepted Answer

A) True 
 B)False

Question 12

In the management process,as applied to a marketing program,the stage which involves analyzing performance results in relation to program objectives is called:

Accepted Answer

A)  Administration.
B)  Evaluation.
C)  Communication.
D)  Implementation.
E)  Delegation.

Question 13

A product with a steadily declining sales volume should be dropped from a company's product line.

Accepted Answer

A) True 
 B)False

Question 14

With respect to a marketing audit:

Accepted Answer

A)  It is the practice of preventive as well as curative marketing medicine;that is,it analyzes past activities and aids in decision making for the future.
B)  Management should conduct a full audit at least once a year.
C)  It applies to the marketing activities but not to the sales activities in a company.
D)  It is not a total evaluation program in the same sense as a financial or personnel audit.
E)  None of these is correct.

Question 15

When a company demonstrates satisfactory overall sales and profit figures,then:

Accepted Answer

A)  there is no need for a sales volume analysis.
B)  there is no need for a marketing cost analysis.
C)  there is no need for a marketing profitability analysis.
D)  the 80-20 principle no longer applies.
E)  None of these.

Question 16

Which of the following is true about salespeople and SFA?

Accepted Answer

A)  Most SFA systems are so user-friendly that training for reps is not necessary.
B)  SFA adds value to an organization only when reps regularly enter data.
C)  Relative to management,salespeople tend to be more eager to adopt SFA.
D)  SFA provides meaningful information to top management,but not to salespeople.
E)  All of these.

Question 17

Regarding a sales volume analysis by territory or product line:

Accepted Answer

A)  They are not worth their cost if the sales are increasing year by year.
B)  Below-par territories or products should be eliminated.
C)  To make a useful analysis,management first should have set some sales goals or quotas by territory or product.
D)  You cannot make this type of analysis without knowing territorial or product costs.
E)  Market indexes are not used.

Question 18

Misdirected marketing effort occurs in many firms because:

Accepted Answer

A)  Sales budgets are not prepared.
B)  Management is profit-conscious rather than being volume-conscious.
C)  Sales volume analyses cannot be done carefully.
D)  Marketing and accounting executives do not sufficiently coordinate their efforts.
E)  Management often lacks reliable standards for determining what should be spent on various marketing activities.

Question 19

Misdirected marketing effort can result in high sales volume,yet low profit.

Accepted Answer

A) True 
 B)False

Question 20

In performance evaluation by sales managers,the soft-spot principle holds that:

Accepted Answer

A)  A company should not get rid of a territory or product that is a soft spot.
B)  It is more useful to measure soft spots on a percentage basis rather than dollar volume.
C)  If a company does a good job in sales-volume analysis,it won't have any soft spots.
D)  The principle is applicable only to a territorial volume analysis and not to a product or customer analysis.
E)  An executive reaps the largest possible gain by working with the weakest segments of the organization.

Exam 14: Analysis of Sales Volume

Most organizations perform a complete marketing audit at least once a year.

If the Magenta Corporation were to assign one salesperson to each of its Pacific Coast territories,a substantial difference in the potential volume and profit from the various territories is likely to occur as a result of:

Planning and performance evaluation are particularly interdependent in the management process - either of these activities is not worth much without the other.

A detailed study of the "net sales" section of a company's profit and loss statement is called a ____________ analysis.

If a firm has a total of exactly 10 customers,all of which buy the same amount of product;then instead of an 80-20 principle,it is really a:

Sales performance evaluation is least likely to include a:

Management controls its sales force through the:

A territorial sales volume analysis is likely to include all of the following steps,except for:

Which of the following is the best reason for continuing to carry a product when a sales volume analysis indicates it is a low-volume item?

A total evaluation program in marketing is best described as:

A decline in a firm's sales volume indicates that competition is getting a larger share of the market.

In the management process,as applied to a marketing program,the stage which involves analyzing performance results in relation to program objectives is called:

A product with a steadily declining sales volume should be dropped from a company's product line.

With respect to a marketing audit:

When a company demonstrates satisfactory overall sales and profit figures,then:

Which of the following is true about salespeople and SFA?

Regarding a sales volume analysis by territory or product line:

Misdirected marketing effort occurs in many firms because:

Misdirected marketing effort can result in high sales volume,yet low profit.

In performance evaluation by sales managers,the soft-spot principle holds that: