Question 1

Competitive position is defined as

Accepted Answer

A)   the strength of the relationship between the selling firm and an account.
B)   the number of active competitors for the account.
C)   the strength of the relationship between an account and each competing firm.
D)   a measure of the competitive strength of the firm in an area.
E)   a rank order of account desirability determining to what extent selling effort should be expended to win it.

Question 2

Centralization within the management structure can be best described as

Accepted Answer

A)   the degree to which important decisions and tasks are performed at higher levels in the management hierarchy.
B)   definitive in nature, as organizations are either totally centralized or totally decentralized.
C)   the extent to which lower-level managers have become responsible for important decisions and tasks.
D)   the amount of task specialization that takes place within the major branches of the sales organization structure.
E)   characterized by the decision to divide sales efforts on the basis of products or related lines of products.

Question 3

When selling effort is considered to be more important than selling skill, the salesforce should be

Accepted Answer

A)   specialized.
B)   expanded.
C)   centralized.
D)   decentralized.
E)   generalized.

Question 4

If the firm has customers with similar needs and the firm sells a complex range of products, a product-specialized salesforce is recommended.

Accepted Answer

A) True 
 B)False

Question 5

The analytical method for allocating selling effort that is the easiest to develop and use is the

Accepted Answer

A)   multiple factor model.
B)   decision model.
C)   historical model.
D)   single factor model.
E)   portfolio model.

Question 6

Because sales increase with the addition of salespeople in a linear manner, the increases in sales tend to remain fairly stable as more salespeople are added.

Accepted Answer

A) True 
 B)False

Question 7

The portfolio approach to allocating sales effort provides a comprehensive account analysis that can be adapted to the specific selling situation faced by any firm.

Accepted Answer

A) True 
 B)False

Question 8

The trends from transactions to relationships, individuals to teams, and management to leadership are producing a more centralized orientation in many sales organizations.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements regarding a line sales management position is false?

Accepted Answer

A)   It is part of the direct management hierarchy within the sales organization.
B)   Line sales managers have direct responsibility for a certain number of subordinates.
C)   Line sales managers report directly to management at the next highest level in the sales organization.
D)   Line sales managers are responsible for only certain sales management functions (e.g., recruiting and selecting, training, etc.) .
E)   Line sales managers are directly involved in the sales-generating activities of the firm.

Question 10

An emerging trend affecting the design of sales organizations is the move toward smaller spans of control for sales managers.

Accepted Answer

A) True 
 B)False

Question 11

Advantages of the geographic sales organization structure include all of the following except

Accepted Answer

A)   fewer management levels.
B)   no geographic duplication.
C)   salespeople develop better understanding of unique customer needs.
D)   low cost.
E)   no customer duplication.

Question 12

A company has one salesforce selling office equipment and another selling office supplies. They are organized according to geographic area and perform all selling activities to all types of accounts. They are considered to be

Accepted Answer

A)   market specialized.
B)   functionally specialized.
C)   strategic account specialized.
D)   product specialized.
E)   geographically specialized.

Question 13

The different types of salesforce size decisions include all of the following except

Accepted Answer

A)   number of salespeople assigned to districts or zones.
B)   size of each specialized salesforce.
C)   number of specialized salesforces.
D)   total size of a generalized salesforce.
E)   total size of all specialized salesforces.

Question 14

According to the text, the need to consider sales, costs, profitability and turnover makes salesforce size a difficult decision.

Accepted Answer

A) True 
 B)False

Question 15

An organizational structure concept where individuals concentrate on performing some of the required activities to the exclusion of other tasks is

Accepted Answer

A)   concentration.
B)   customer-oriented.
C)   market-oriented.
D)   strategic account-orientated
E)   specialization.

Question 16

When sales management wants to focus on specific skills within each selling contact the salesforce should be

Accepted Answer

A)   specialized.
B)   expanded.
C)   centralized.
D)   decentralized.
E)   generalized.

Question 17

The portfolio method is the most rigorous and comprehensive method for an account effort allocation strategy.

Accepted Answer

A) True 
 B)False

Question 18

In a tall organization structure, there are more sales management levels and smaller spans of control.

Accepted Answer

A) True 
 B)False

Question 19

The concept "planning and control unit" can be defined as

Accepted Answer

A)   the division of the total market area of the firm into geographic areas with an equal number of accounts.
B)   the division of the total market area of the firm into geographic areas containing the same approximate square miles.
C)   the division of the total market area of the firm into geographic areas with an equal number of road miles.
D)   some entity smaller than a territory into which the total market area of the firm is divided.
E)   the division of the total market area of the firm into geographic areas called territories.

Question 20

The appropriate salesforce specialization depends upon the specific characteristics of a firm's selling situation.

Accepted Answer

A) True 
 B)False

Exam 3: Sales Organization Structure and Salesforce Deployment

Which of the following statements regarding a line sales management position is false?

Correct AnswerverifiedShow Answer

Centralization within the management structure can be best described as

Correct AnswerverifiedShow Answer

According to the text, the need to consider sales, costs, profitability and turnover makes salesforce size a difficult decision.

Correct AnswerverifiedShow Answer

The portfolio method is the most rigorous and comprehensive method for an account effort allocation strategy.

Correct AnswerverifiedShow Answer

The trends from transactions to relationships, individuals to teams, and management to leadership are producing a more centralized orientation in many sales organizations.

Correct AnswerverifiedShow Answer

When selling effort is considered to be more important than selling skill, the salesforce should be

Correct AnswerverifiedShow Answer

A company has one salesforce selling office equipment and another selling office supplies. They are organized according to geographic area and perform all selling activities to all types of accounts. They are considered to be

Correct AnswerverifiedShow Answer

Competitive position is defined as

Correct AnswerverifiedShow Answer

Because sales increase with the addition of salespeople in a linear manner, the increases in sales tend to remain fairly stable as more salespeople are added.

Correct AnswerverifiedShow Answer

When sales management wants to focus on specific skills within each selling contact the salesforce should be

Correct AnswerverifiedShow Answer

An emerging trend affecting the design of sales organizations is the move toward smaller spans of control for sales managers.

Correct AnswerverifiedShow Answer

The concept "planning and control unit" can be defined as

Correct AnswerverifiedShow Answer

The different types of salesforce size decisions include all of the following except

Correct AnswerverifiedShow Answer

The portfolio approach to allocating sales effort provides a comprehensive account analysis that can be adapted to the specific selling situation faced by any firm.

Correct AnswerverifiedShow Answer

In a tall organization structure, there are more sales management levels and smaller spans of control.

Correct AnswerverifiedShow Answer

Advantages of the geographic sales organization structure include all of the following except

Correct AnswerverifiedShow Answer

An organizational structure concept where individuals concentrate on performing some of the required activities to the exclusion of other tasks is

Correct AnswerverifiedShow Answer

The analytical method for allocating selling effort that is the easiest to develop and use is the

Correct AnswerverifiedShow Answer

The appropriate salesforce specialization depends upon the specific characteristics of a firm's selling situation.

Correct AnswerverifiedShow Answer

If the firm has customers with similar needs and the firm sells a complex range of products, a product-specialized salesforce is recommended.

Correct AnswerverifiedShow Answer

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