Midterm Exam (Test 1)

.........occurs when you collect your thoughts and organize your interaction
strategy prior to meeting a customer face to face.
(0.5 Points)

Interaction

Pre-interaction

Post-interaction

None of the above

What are Xerox’s previous focus and new focus when implementing its
reorganized structure (new structure)? (0.5 Points)

Product/Functional

Generalist/Customer

Product/Customer

Product/Generalist

You are a rookie salesperson with Associated Medical Supplies, Inc., a

wholesaler of disposable medical supplies. As a new salesperson, you are
finding it difficult to convince accounts to switch from their current suppliers.
The doctors with whom you are having the most success tend to be small,
single practices located in rural areas. Competition for these accounts is not
as intense, perhaps because their purchases are fairly small. They usually
place about $6,000 worth of business with you every month. Nevertheless,
they seem to be most appreciative of your weekly visit to take inventory of
their supplies and write an order. Furthermore, it is better than no sales at
all. Lately, your boss has been hassling you because productivity has not
increased as much as he had hoped when he placed you in the territory. In
particular, direct selling costs, including compensation, are currently 35
percent of net sales, whereas the total company’s target is for direct
sales costs to be 5 percent of net sales. In light of this, you are wondering if
spending time on small rural physicians is the best way to manage your
territory. You have calculated that your cost per call is currently $125. what
is the smallest size customer you should pursue in order to meet your
company’s selling cost objectives? (0.5 Points)

9000 USD

10,000 USD

7000 USD

8000 USD

You are a rookie salesperson with Associated Medical Supplies, Inc., a

wholesaler of disposable medical supplies. As a new salesperson, you are
finding it difficult to convince accounts to switch from their current suppliers.
The doctors with whom you are having the most success tend to be small,
single practices located in rural areas. Competition for these accounts is not
as intense, perhaps because their purchases are fairly small. They usually
place about $6,000 worth of business with you every month. Nevertheless,
they seem to be most appreciative of your weekly visit to take inventory of
their supplies and write an order. Furthermore, it is better than no sales at
all. Lately, your boss has been hassling you because productivity has not
increased as much as he had hoped when he placed you in the territory. In
particular, direct selling costs, including compensation, are currently 35
percent of net sales, whereas the total company’s target is for direct
sales costs to be 5 percent of net sales. In light of this, you are wondering if
spending time on small rural physicians is the best way to manage your
territory. You have calculated that your cost per call is currently $125. Should
you be calling on these small physician practices? Justify the total direct
selling cost. (0.5 Points)

300 USD

500 USD

400 USD

600 USD

Your company currently generates monthly $200 million in revenue selling

through 50 independent sales agencies. The agencies are paid a flat 5
percent commission on sales they generated & managerial cost for all
agencies is 1.5% of total revenue. You are wondering whether it would be
less expensive to develop your own dedicated salesforce. Your industry’s
trade association conducts an annual compensation survey, which indicated
that the average salary for salespeople is $60,000 including benefits. In
addition, an incentive compensation of 0.7 percent of sales was also typical.
You estimate that you would need to hire 100 salespeople to replace the
sales agents. Given the information provided, which would cost you less at
$200 million in revenue – your own dedicated sales force or independent
sales agents? What is the breakeven sales volume for your company; that is,
when do the two sales force alternatives cost the same?
(0.5 Points)

20,979,019

20,989,021

20,979,021

20,980,021

20,979,029

20,970,021
 6

The salesperson’s job is to discover the true needs and then inform the
prospect about the characteristics, capabilities, and availability of goods and
services that can address these needs. This belongs to the stage of...
(0.5 Points)

Interaction

None of the above

Pre-interaction

Post-interaction

The Internet is a powerful source of information, ranging from customers

information to industry information. This is necessary for the stage of...
(0.5 Points)

Post-interaction

None of the above

Pre-interaction

Interaction

QUESTION OF EXPENSE: Justify compensation and total direct expenses.

(0.5 Points)
 337,500K/364,000K

337,500K/364,500K

337,000K/364,500K

342,500K/364,000K

Actions that are initiated prior to interaction with key decision makers
requiring skills in pre-call planning (0.5 Points)

Post-interaction

Interaction

Pre-interaction

10

The phrase "Engages customers as a collaborative partner" is the

.................model. (0.5 Points)

Transactional selling model

Solutions selling model

Customer centric selling model

Traditional selling model

11

(0.5 Points)

Generalist

Product

Type of customer

Functional
12

As a salesperson for Strength Footwear, Inc., you have been very successful.
Your commissions are well over $70,000 per year. Demand for your product
line is strong, but so is the demand on your time. You work your territory
220 days a year and can make four calls a day. The maximum number of
times you need to see any account is every other week, but you need to call
on each account at least once a quarter. To help you allocate your time
according to sales results, you have gathered the following information on
customer sales: (as figure).
Develop and justify a total annual calls schedule for allocating time across
the 110 customers in your territory.

(0.5 Points)

780

980

880

680
13

Research Prospect Background. A successful salesperson usually does this.

(0.5 Points)

No

Yes

14

Creating an offering perceived as being unique, Leading to high brand loyalty

and low price sensitivity, Selective use of independent sales agents, Focused
on long-term customers. (0.5 Points)

Niche strategy

Differentiation strategy

Low cost strategy

15

What subject you want to study in this semester? (0.5 Points)

Fact-Finding

Checking

Feeling-Finding

16

Sales activities can be defined as the planning, organizing, leading, and

controlling of personal contact programs designed to achieve the sales and
profit objectives of the firm. (0.5 Points)

True

False

17

(0.5 Points)

Generalist

Type of customer

Product

Functional

18

Question (0.5 Points)

 Type of customer

Functional

Generalist

Product

19

Review what you know or don’t know about the client’s organization. This is
the stage of... (0.5 Points)

Interaction

None of the above

Pre-interaction

Post-interaction
 20

Use standard presentation. A successful salesperson usually does this.

(0.5 Points)

Yes

No

21

As a salesperson for Strength

Footwear, Inc., you have been very
successful. Your commissions are
well over $70,000 per year.
Demand for your product line is
strong, but so is the demand on
your time. You work your territory
220 days a year and can make
four calls a day. The maximum
number of times you need to see
any account is every other week,
but you need to call on each
account at least once a quarter. To
help you allocate your time
according to sales results, you
have gathered the following
information on customer sales: (as
figure).
Develop and justify a call schedule
for allocating time across the "3rd
next 20 best accounts" in your
territory. (0.5 Points)

8
 22

All salespeople should have at least some idea of how they will initially start
an interaction, what questions they will ask, and what benefits they plan to
present. This belongs to the stage of... (0.5 Points)

None of the above

Post-interaction

Pre-interaction

Interaction

23

Four methods for setting account priorities along with the situations
in which each is most appropriate are....
(0.5 Points)

Single-Factor model, Portfolio Models, Decision Models, buyer process models.

Single-Factor model, Portfolio Models, Decision Models, Prospect models.

Single-Factor model, Portfolio Models, Decision Models, Prospect models.

Single-Factor model, Portfolio Models, Decision Models, Sales process models.

24

This figure illustrates one well-known.... (0.5 Points)

 Single-Factor Model

Decision models

Portfolio models

Sales process models

25

Once business ............ have been identified, the next step is to translate
them into...........
(0.5 Points)
 Objectives/Mission

Objectives/Strategies

Mission/Strategies

Strategies/Objectives

26

Once the mission for an organization has been decided, the next step is to
translate the .............
into the organization’s...........—specific objectives by which performance can
be measured.
(0.5 Points)

Goals/Business plan

Business plan/Mission

27

Market segmentation excludes aggregating customers into groups that (1)

have one or more
common characteristics, (2) have similar needs, and (3) will respond
similarly to a marketing program.
(0.5 Points)

False

True
28

Justify total calls per year, and based on the result in QUESTION EXPENSE,
calculate the average cost per call. (0.5 Points)

4,020/90,672

4,202/90,672

4,002/90,670

4,000/90,672

29

The top five factors judged to be important to success in sales were the
following in order of importance: (0.5 Points)

Listening skills, Follow-up skills, ability to adapt sales style to the situation, seeing a task
through to its completion, well organized.

Listening skills, promotion skills, ability to adapt sales style to the situation, seeing a task
through to its completion, well organized.
 Listening skills, Follow-up skills, ability to adapt sales style to the situation, seeing sales
call through to its completion, well organized.

30

Marketing strategy is the set of integrated decisions and actions a business

undertakes to
achieve its marketing objectives by addressing the value requirements of its
customers.
(0.5 Points)

True

False

31

The figure presents the results of a recent survey indicating how sales forces
are organized today and in the future. Notice that sales managers are
expecting big changes, with many anticipating their sales force to be
organized around... (0.5 Points)
 Functional

Product

Generalist

Customer

32

Recent advances in technology have created an explosion of new sales and

service channels. (0.5 Points)

False

True

33

The person responsible for the management of the sales field sales operation
is the.... (0.5 Points)

Seller

Sales manager

CEO

CFO

34

May I ask you why you want to study Sales Management? Which type of
question that the question belongs to. (0.5 Points)

Feeling-Finding

Fact-Finding

Permission

Checking

35

(0.5 Points)

Customer

Product

Generalist

Functional

36
Sales promotion is not considered one of the elements of the promotion mix.
(0.5 Points)

False

True

37

(0.5 Points)

Generalist

Functional

Customer

Product

38
Focus on product benefits. A successful salesperson usually does this.
(0.5 Points)

No

Yes

39

The product has been previously purchased and there is no change desired
in the product or offering. The seller can add value for the customer by
making the purchase easy, convenient, and as hassle-free as possible. This
belongs to the purchasing process of.... (0.5 Points)

Modified rebuy

None of the above

Straight rebuy

New buy

40

The advantages of advertising and sales promotion over other elements of

the promotion mix are that they involve 2-way communication. (0.5 Points)

True

False

41

(0.5 Points)
 Total cost

Number of orders

Total sales cost

Number of calls to close

42

Mr Tín, General Manager at ABC, came up through the rank as a salesperson

at ABC corporation. (0.5 Points)

True

False

43

Target marketing refers to the selection and prioritizing of segments to

which the company will market.
. (0.5 Points)

True

False

44

An important market change affecting manufacturer sales forces is that the

channel members are becoming more powerful. (0.5 Points)

True

False

45

"Go-to-Market Strategy" reflects the.....

(0.5 Points)

Functional decisions

Strategic implementation decisions

Business plan

Promotion plan

46

"Low cost" is the advantage of... (0.5 Points)

Customer based structure

Product based structure

Geography based structure

Functional structure

47

Cross selling involves selling additional products and services to a seller.

(0.5 Points)

False

True

48

As a salesperson for Strength

Footwear, Inc., you have been very
successful. Your commissions are
well over $70,000 per year.
Demand for your product line is
strong, but so is the demand on
your time. You work your territory
220 days a year and can make
four calls a day. The maximum
number of times you need to see
any account is every other week,
but you need to call on each
account at least once a quarter. To
help you allocate your time
according to sales results, you
have gathered the following
information on customer sales: (as
figure)
Develop and justify a call schedule
for allocating time across the "1st
next 20 best accounts" in your
territory. (0.5 Points)

10

49
 A go-to-market strategy defines who will perform these activities and for
which customers.
(0.5 Points)

True

False

50

Basis information that may be useful to know about an individual includes

exact spelling and pronunciation of her name, title, age, residence,
education, buying authority, clubs, memberships, hobbies, and
idiosyncrasies. This is the stage of.... (0.5 Points)

Post-interaction

None of the above

Pre-interaction

Interaction

This content is created by the owner of the form. The data you submit will be sent to the form owner. Microsoft is
not responsible for the privacy or security practices of its customers, including those of this form owner. Never give
out your password.

Powered by Microsoft Forms | Privacy and cookies | Terms of use