cost of direct selling

36. Many companies concentrate on improving the way their salespeople manage their time and territories because:

A. the cost of direct selling is rapidly decreasing.

B. the time available for face-to-face customer contact is increasing.

C. there is reduced emphasis on profitability.

D. time is always limited.

E. they want to increase the salesperson`s responsibilities.

37. A(n) _____ comprises a group of customers or a geographical area assigned to a salesperson.

A. market development area


C. sales territory

D. market potential

E. sales quota

38. Which of the following statements about sales territories is true?

A. A sales territory contains only one key account.

B. Sales territories always have geographic boundaries.

C. Sales territories are used to maximize the sales potential of a market.

D. A sales territory guarantees that a company reaches the breakeven point.

E. Sales territories are used to evaluate the effectiveness of the marketing mix.

39. Which of the following statements about sales territories is INCORRECT?

A. A sales territory contains present customers.

B. Geographic boundaries define a sales territory.

C. Firms use sales territories to evaluate performance.

D. A sales territory typically contains potential customers.

E. A sales territory comprises a geographic area assigned to a salesperson.

40. Companies establish sales territories to accomplish all of the following objectives EXCEPT to:

A. set responsibilities for salespeople.

B. avoid duplicating sales efforts.

C. control corporate credit ratings.

D. create goodwill with customers.

E. meet sales goals.

41. How do sales territories benefit a company’s customers?

A. Monitors sales team salaries and expenses

B. Links organizational vision with buyer’s needs

C. Establishes relationships between buyers and sellers

D. Ensures sales presentation structure and organization

E. Matches long-term strategic goals with seller’s personality

42. According to the text, which of the following is one of the objectives given for establishing sales territories?

A. To lower long-term company profits.

B. To improve customer relations and satisfaction.

C. To match the wants of the salesperson with the needs of the customers served.

D. To facilitate utilization of the undifferentiated selling approach.

E. To attain more efficiency in businesses based on personal friendships.

43. Robert is the CEO of a small firm which manufactures inverters. Company sales have been increasing, and Robert finds it increasingly difficult to manage the salespeople. The company has a sufficient number of salespeople, but they are not able to reach all current and potential customers. Robert also has difficulties in evaluating the performance of salespeople. What advice can you give Robert?

A. Robert can hire more salespeople to have better sales coverage.

B. Robert can appoint more supervisors for managing and evaluating the sales force.

C. Robert can ask the salespeople to work overtime to obtain better coverage.

D. Robert can manage the salespeople by assigning each of them to different groups of customers.

E. Robert can ask salespeople to report directly to him, and he can use the authoritative management style.

44.  A sales territory:

A. is essential for all kind of industries for managing the sales force.

B. makes the evaluation of performance more difficult.

C. does not aid in improving customer relations.

D. always contains group of customers residing in different geographic areas.

E. contains present and potential customers.

45. Sales territories are a disadvantage for some firms in all of the following cases EXCEPT when:

A. sales performance is difficult to monitor and evaluate.

B. personal friendships are the basis for attracting customers.

C. salespeople are more motivated if they are not restricted by territorial boundaries.

D. the company is too small to be concerned about segmenting the market into sales areas.

E. management lacks the knowledge, time, and interest to develop and es

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