Question 1

________ serves the needs of strategic customers with locations around the world.

Accepted Answer

A)   National account management
B)   International account management
C)   Geographic account management
D)   Specialized account management
E)   Global account managementF) A) and E)
G) All of the above

Question 2

Trends from transactions to relations, individuals to teams, and management to leadership are producing a more ______ organization in many sales organizations.

Accepted Answer

A)   specialized
B)   decentralized
C)   generalized
D)   centralized
E)   functionalF) B) and D)
G) C) and D)

Question 3

Line managers are directly involved in the sales-generation activities of the firm.

Accepted Answer

A) True 
 B)False

Question 4

The smaller the span of control, the more subordinates that a sales manager must supervise.

Accepted Answer

A) True 
 B)False

Question 5

Companies that are focusing on serving current customers and achieving limited growth during slow economic times might increase salesforce size as a way to lower costs.

Accepted Answer

A) True 
 B)False

Question 6

Staff sales management positions are less specialized than line sales management positions.

Accepted Answer

A) True 
 B)False

Question 7

According to the text, research indicates that global account management programs can improve customer satisfaction by 50% and increase sales and profits by 75% or more.

Accepted Answer

A) True 
 B)False

Question 8

A hybrid form of sales organization structure is one in which the disadvantages have begun to outweigh the advantages and a new structure should be developed.

Accepted Answer

A) True 
 B)False

Question 9

A ____________________ represents a type of market specialization based on account size and complexity.

Accepted Answer

A)   product sales organization
B)   functional sales organization
C)   market sales organization
D)   geographic sales organization
E)   strategic account organizationF) A) and E)
G) B) and E)

Question 10

Which of the following statements regarding sales organization structure is false?

Accepted Answer

A)   The sales organization structure helps salespeople and sales managers perform required activities in an effective and efficient manner.
B)   Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the marketplace.
C)   Strategic changes almost always necessitate adjustments in sales organization structure.
D)   Sales organization structures can be extremely complex with many boxes and arrows.
E)   Developing a sales organization structure is typically more difficult than implementing a change in sales organization structure.F) C) and E)
G) A) and B)

Question 11

A _________ structure facilitates decision making in the field and encourages the development of relationships with customers.

Accepted Answer

A)   specialized
B)   centralized
C)   decentralized
D)   generalized
E)   functionalF) D) and E)
G) C) and D)

Question 12

A decentralized organization structure is one where authority and responsibility are placed at higher management levels.

Accepted Answer

A) True 
 B)False

Question 13

Although the appropriate sales organization structure depends on the specific characteristics of a firm's selling situation, research evidence suggests that the structures remain steady as a business goes through its life cycle.

Accepted Answer

A) True 
 B)False

Question 14

Decisions regarding the allocation of selling effort, salesforce size, and design of territories should be addressed

Accepted Answer

A)   independently.
B)   prior to determining the organizational structure.
C)   as being completely unrelated decisions.
D)   in an interrelated manner.
E)   as different parts of the puzzle.F) D) and E)
G) B) and C)

Question 15

The sales organization structure may have to be changed as the selling situation changes.

Accepted Answer

A) True 
 B)False

Question 16

Productivity is normally defined as

Accepted Answer

A)   a ratio between outputs and inputs.
B)   the number of salespeople in the field.
C)   a ratio of selling effort employed to number of salespeople.
D)   a ratio of sales generated to number of accounts.
E)   a ratio of accounts to salespeople.F) All of the above
G) D) and E)

Question 17

The three basic analytical approaches used in selling effort allocation decisions are the

Accepted Answer

A)   single factor model, multiple factor model, portfolio model.
B)   multiple factor model, decision model, historical model.
C)   portfolio model, single factor model, decision model.
D)   single factor model, cost based model, decision model.
E)   multiple factor model, portfolio model, historical model.F) B) and C)
G) C) and D)

Question 18

An account can be considered complex under any of the following circumstances except when

Accepted Answer

A)   it has multiple buying locations.
B)   top management heavily influences its purchasing decisions.
C)   multiple functions are involved in buying decisions.
D)   it requires special services.
E)   it purchases standardized products.F) C) and D)
G) A) and C)

Question 19

The selection of the appropriate planning and control unit represents a tradeoff between what is desired and data or computational considerations.

Accepted Answer

A) True 
 B)False

Question 20

The most often used measure of opportunity in planning and control units is

Accepted Answer

A)   the number of accounts.
B)   the number of sales calls required to cover the accounts.
C)   the total number of customers and prospects.
D)   market potential.
E)   last year's total sales.F) A) and B)
G) B) and C)

Exam 3: Sales Organization Structure and Salesforce Deployment

According to the text, research indicates that global account management programs can improve customer satisfaction by 50% and increase sales and profits by 75% or more.

Correct AnswerverifiedShow Answer

Although the appropriate sales organization structure depends on the specific characteristics of a firm's selling situation, research evidence suggests that the structures remain steady as a business goes through its life cycle.

Correct AnswerverifiedShow Answer

The selection of the appropriate planning and control unit represents a tradeoff between what is desired and data or computational considerations.

Correct AnswerverifiedShow Answer

A ____________________ represents a type of market specialization based on account size and complexity.

Correct AnswerverifiedShow Answer

Productivity is normally defined as

Correct AnswerverifiedShow Answer

An account can be considered complex under any of the following circumstances except when

Correct AnswerverifiedShow Answer

Line managers are directly involved in the sales-generation activities of the firm.

Correct AnswerverifiedShow Answer

Which of the following statements regarding sales organization structure is false?

Correct AnswerverifiedShow Answer

A decentralized organization structure is one where authority and responsibility are placed at higher management levels.

Correct AnswerverifiedShow Answer

The sales organization structure may have to be changed as the selling situation changes.

Correct AnswerverifiedShow Answer

Staff sales management positions are less specialized than line sales management positions.

Correct AnswerverifiedShow Answer

The most often used measure of opportunity in planning and control units is

Correct AnswerverifiedShow Answer

________ serves the needs of strategic customers with locations around the world.

Correct AnswerverifiedShow Answer

The smaller the span of control, the more subordinates that a sales manager must supervise.

Correct AnswerverifiedShow Answer

A _________ structure facilitates decision making in the field and encourages the development of relationships with customers.

Correct AnswerverifiedShow Answer

Trends from transactions to relations, individuals to teams, and management to leadership are producing a more ______ organization in many sales organizations.

Correct AnswerverifiedShow Answer

Companies that are focusing on serving current customers and achieving limited growth during slow economic times might increase salesforce size as a way to lower costs.

Correct AnswerverifiedShow Answer

A hybrid form of sales organization structure is one in which the disadvantages have begun to outweigh the advantages and a new structure should be developed.

Correct AnswerverifiedShow Answer

The three basic analytical approaches used in selling effort allocation decisions are the

Correct AnswerverifiedShow Answer

Decisions regarding the allocation of selling effort, salesforce size, and design of territories should be addressed

Correct AnswerverifiedShow Answer

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