Mini Test 13 Test bank Questions and Answers About 60 percent of U S companies now include customer satisfaction as a measure of salesperson performance e behavioral According to the lecture which sales role is involved in building customer relationships from initial sale to follow up account servicing d Account Management An insurance company is considering using independent sales agents who would receive a seven percent 7 sales commission on sales or its own insurance salespeople who would receive a five percent 5 commission salaries and benefits Additionally with a company salesforce sales administration costs would be incurred for a total fixed cost of 650 000 per year At what level of sales would independent salespeople be less costly to the firm The decision to use company salespeople or independent agents is based on a break even analysis that examines the costs of using both types of salespeople The calculation involves setting the costs of the two options equal to each other and then solving for the sales amount Total cost of company salespeople CS Total cost of independent agents IA Total cost of company salespeople CS Annual sales volume X Company salesperson commission Y Total fixed costs of sales administration FC or CS X Y FC Total cost of independent agents IA Annual sales volume X Independent agents commission Z or IA X Z Set the costs of the two options equal to each other CS IA and then solve for the sales amount X as follows d 32 500 000 Consider Figure 20 7 above which is an account management policy grid that groups customers according to the level of opportunity and the firm s competitive sales position B represents which account management policy c accounts that should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible Consider Figure 20 7 above which is an account management policy grid that groups customers according to the level of opportunity and the firm s competitive sales position D represents which account management policy b accounts that the firm should consider 1 replacing personal calls with telephone sales or direct mail to service accounts and 2 dropping account if unprofitable Consultative selling refers to a presentation format that focuses on problem identification where the salesperson serves as an expert on problem recognition and resolution Formulating the sales plan involves three tasks 1 setting objectives 2 organizing the salesforce and 3 The Frito Lay salesperson shown in the photo above is an who is taking inventory of available Doritos and Tostitos products at a supermarket b c outside order taker d developing account management policies In class we heard about several Trends in Personal Selling Which trend involves the ability of salespeople to do online video conferencing with customers e Electronic Sales Presentations In class we heard about several Trends in Personal Selling Which trend involves the ability of salespeople to retrieve the information they need at virtually any time they need it c Mobile Technology In class we heard about several Trends in Personal Selling Which trend involves the need for all customer contact points to be gathered and shared within the company b Customer Relationship Management In class we heard from Valerie Thwing on Prospecting She noted that generally b people are busy and it is hard to get to see them In class we looked at the recruitment pyramid Based on this example what is the ratio of people interviewed to actual offers c 10 1 In class we thought about criteria which can be used in evaluating sales person performance Which type of evaluation would include an assessment of improvements in characteristics of salespeople that are related to successful performance in the sales job b Professional Development criteria In class we thought about planning for recruiting and selecting the salesforce Which step involves defining the actual aptitude skills knowledge personal traits and willingness to accept occupational conditions necessary to perform the job b Job Qualifications In class we talked about the stages in the personal selling process If you are working with information to understand the potential customer s current needs and feelings about the available brands which stage of the process are you in b Preapproach In Marketing in the News we heard about Toyota s introduction of the new Scion car models For the past 10 years or so what type of promotion has the company been using b Underground marketing including word of mouth tactics In Marketing in the News we heard that Harley Davidson just announced that its first quarter sales were less than expected What was the main cause of the lower than expected sales a The dollar is strong so foreign competitors can sell at lower prices In Marketing in the News we heard that Target recently advertised a new Lilly Pulitzer line What happened upon the release of the line c Consumer reaction was very strong and the line sold out quickly In the personal selling process the stage that includes making certain the customer s purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed is referred to as the stage Key account management refers to b follow up c the practice of using team selling to focus on important customers so as to build mutually beneficial long term cooperative relationships A need satisfaction presentation refers to a presentation format that d emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers On a recent shopping excursion at a local Target store Jim Krause went from aisle to aisle selecting the products he needed He bought a variety of products including shampoo toothpaste a green plant for his office and several pairs of socks Interestingly the only salesperson Krause encountered was the person at the checkout counter The checkout person at Target is an example of a n d inside order taker Quantitative assessments of sales performance may be based on input related objectives set forth in the sales plan such as those involving A sales quota refers to b sales calls selling expenses and account management policies e the specific goals assigned to a salesperson sales team branch sales office or sales district for a stated time period Sales management refers to a the planning of the selling program and the implementing and evaluating of