Chapter: Introduction to Sales Management
1.

Sales management is discipline of …………….benefits a company and its customers receive from the efforts of its sales force.

A. Minimizing
B. Maximizing
C. Controlling
D. None of the above
Answer» B. Maximizing
2.

According to ………………sales management includes recruitment, selection, training, motivation, supervision on the urork, and evaluation of performance of sales force.

A. Rachman & Romane
B. B.R.Canfield
C. Hampton & Zubin
D. American marketing Association
Answer» A. Rachman & Romane
3.

The amin objective of sales management are ………………

A. Decrease in profits and continuous growth
B. Increase in profits and stagnant growth
C. Increase in profits and continuous growth
D. Decrease in profits and stagnant growth
Answer» C. Increase in profits and continuous growth
4.

Sales management achieves personal selling objectives through ……………

A. Personal Selling Strategy
B. Interpersonal selling strategy
C. Selling strategy
D. None of the above
Answer» A. Personal Selling Strategy
5.

Sales management is the …………….of a sales staff, and the tracking and reporting of the company’s sales.

A. Strategy
B. Training and management
C. Management
D. None of the above
Answer» B. Training and management
6.

Sales management is the ………………….of sales staff, and the tracking and reporting of the company’s sales.

A. Management
B. Selling strategy
C. Demonstration
D. Development of human resources
Answer» D. Development of human resources
7.

The scope of sales management is confined not only to self centered corporate goal profit and sales maximization but also to ……………..

A. Good welfare
B. Consumer welfare
C. Organization welfare
D. Individual welfare
Answer» B. Consumer welfare
8.

………….is the fundamental guiding principle of sales management.

A. Customer delight
B. Customer orientation
C. Client satisfacation
D. None of the above
Answer» A. Customer delight
9.

In an organization ………………..is also very useful when technically complex products are in the process to sell.

A. Individual selling approach
B. Group selling approach
C. Team based selling approach
D. None of the above
Answer» C. Team based selling approach
10.

One of the element of sales planning is to ………for selling activities.

A. Set objectives
B. Schedule objectives
C. Track Objectives
D. None of the above
Answer» A. Set objectives
11.

Avon, Amway, and Tupperware use which of the following forms of channel distribution?

A. direct marketing channel
B. indirect marketing channel
C. forward channel
D. fashion channel
Answer» A. direct marketing channel
12.

From the economic system’s point of view, the role of marketing intermediaries is to transform:

A. raw products into finished products.
B. consumer needs into producer needs.
C. consumer needs and wants into product desires.
D. assortments of products made by producers into the assortments wanted by consumers.
Answer» D. assortments of products made by producers into the assortments wanted by consumers.
13.

When the manufacturer establishes two or more channels catering to the same market, then …………… occurs.

A. Vertical channel conflict
B. Horizontal channel conflict
C. Multi channel conflict
D. None of the above
Answer» C. Multi channel conflict
14.

A distribution channel moves goods and services from producers to consumers. It overcomes the major time, place, and ………….gaps that separate goods and services from those who would use them.

A. possession
B. profit
C. image
D. psychological
Answer» A. possession
15.

Through their contacts, experience, specialization, and scale of operation,usually offer the firm more than it can achieve on its own.

A. manufacturers
B. producers
C. direct marketers
D. intermediaries
Answer» D. intermediaries
16.

Makers of televisions, cameras, tires, furniture, and major appliances normally use which of the following distribution channel forms?

A. direct marketing channel
B. indirect marketing channel
C. horizontal channel
D. synthetic channel
Answer» B. indirect marketing channel
17.

Using manufacturer’s representatives or sales branches is usually a characteristic of which of the following channel forms?

A. business marketing channels
B. customer marketing channels
C. service marketing channels
D. direct marketing channels
Answer» D. direct marketing channels
18.

Transporting and storing goods is part of which of the following marketing channel functions?

A. negotiation
B. physical distribution
C. contact
D. matching
Answer» B. physical distribution
19.

Who sells to the customers?

A. Semi wholesalers
B. Wholesalers
C. Retailer
D. Distributor
Answer» C. Retailer
20.

The benefits of marketing channels are………..

A. Cost saving
B. Time saving
C. Financial support given
D. All of above
Answer» D. All of above
21.

……………..is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the buyer.

A. A direct marketing channel
B. An indirect marketing channel
C. A channel level
D. A channel switching system
Answer» C. A channel level
22.

Which of the following statements about sales force management is true?

A. The sales force is the firm's most direct link to the customer
B. The statement, "The world will beat a path to your door if you build a better mousetrap," reflects how business operates today
C. As organizations implement the marketing concept, they soon realize how important it is to be sales-oriented
D. Personal selling is usually less expensive than advertising
Answer» C. As organizations implement the marketing concept, they soon realize how important it is to be sales-oriented
23.

With respect to a channel of distribution, the number of intermediary levels within the channel indicates the of a channel.

A. width
B. depth
C. length
D. similarity
Answer» C. length
24.

Independent firms at different channel levels integrate their programs on a contractual basis to achieve systemic economies and increased market impact are known as……….

A. Corporate vertical marketing systems
B. Contractual vertical marketing systems
C. Administered vertical
D. None of the above
Answer» B. Contractual vertical marketing systems
25.

Which of the following statements about the sales force in the 21st century is true?

A. Sales managers will use a hands-off approach and let the professional salesperson be his or her own boss
B. Transactional exchanges no longer occur
C. Sales management must be smart and nimble and provide technology-centered solutions to support the sales effort
D. Salespeople make little use of the Internet because they realize the importance of the personal touch
Answer» A. Sales managers will use a hands-off approach and let the professional salesperson be his or her own boss
26.

……………….Is a marketing channel that has no intermediary levels.

A. direct marketing channel
B. indirect marketing channel
C. forward channel
D. hybrid channel
Answer» A. direct marketing channel
27.

The difference between transactional selling and relationship selling is

A. In transaction, selling buyers must pay cash
B. In relationship selling, buyers and sellers must be related
C. In transaction selling, sellers provide greater service
D. In relationship selling, sellers work to provide value to their customers
Answer» D. In relationship selling, sellers work to provide value to their customers
28.

A…………….Is a set of interdependent organizations involved in the process of making a product or service available for use of consumption by the consumer or business user.

A. retailer
B. wholesaler
C. distribution channel
D. middleman
Answer» C. distribution channel
29.

The work of setting up objectives for selling activities, determining and scheduling the steps necessary to achieve these objectives is known as………….

A. Selling
B. Sales policy
C. Sales programme
D. Sales planning
Answer» D. Sales planning
30.

.Karen is studying the potential for selling her company's products in China. As part of her analysis, she is assessing the number, types and availability of wholesalers and retailers. Karen is studying the country's

A. Natural conditions
B. Technological feasibility
C. Social and cultural norms
D. Distribution structure
Answer» D. Distribution structure
31.

Mr. Narayan, the new national sales manager is learning about the internal organizational environment in her company. She will learn about all of the following EXCEPT

A. Human resources
B. Financial resources
C. Service capabilities
D. Social and cultural environment
Answer» D. Social and cultural environment
32.

Which is not a strategic role of sales management?

A. Tracking
B. Reporting
C. Delivery
D. Optimizes distribution
Answer» C. Delivery
33.

John, the sales manager for a building materials company, knows the customers in one profitable sales territory, are particularly hostile to women sales reps. John faces an ethical dilemma primarily in the area of:

A. Determining compensation and incentives
B. Equal treatment in hiring and promotion
C. Respect for individuals in supervisory and training programs
D. Fairness in the design of sales territories
Answer» C. Respect for individuals in supervisory and training programs
34.

large marketing intermediary, but not as large as a sole selling agent in terms of size, resources and territory of operation is known as………………..

A. Wholesaler
B. Sole selling agent
C. Direct marketing channel
D. Semi-wholesalers
Answer» A. Wholesaler
35.

Many firms use environmental scanning to assess their external environment. Environmental scanning should be used to

A. Respond to current crises
B. Identify future threats and opportunities
C. Determine personnel performance
D. Allocate financial resources
Answer» B. Identify future threats and opportunities
36.

Sarah and Steve are sales reps for a major pharmaceutical company in the same geographic area. Sarah calls on private practice physicians, while Steve calls on hospital groups. Their sales manager would likely have an ethical dilemma in the area of:

A. Determining compensation and incentives
B. Equal treatment in hiring and promotion
C. Respect for individuals in supervisory and training programs
D. Fairness in the design of sales territories
Answer» A. Determining compensation and incentives
37.

What is the full form of CIS?

A. Channel information system
B. Channel induced system
C. Channel information system
D. Channel incorporated system
Answer» C. Channel information system
38.

Which of the following is an example of the external natural environment for a manufacturer of metal lawn furniture?

A. A longer than usual distribution channel due to a rail strike
B. Consumer trend toward treating gardens like another room
C. The popularity of metal lawn furniture that looks vintage rather than newly bought
D. A flood at the manufacturer's main warehouse
Answer» D. A flood at the manufacturer's main warehouse
39.

What is the full form of VMS?

A. Velocity moving system
B. Vertical marketing system
C. Vertical moving system
D. Very moveable system
Answer» B. Vertical marketing system
Chapter: Sales Organization
40.

One of the objective of sales organization is ………….

A. To build team work
B. To maintain co-relation
C. To increase managerial efficiency
D. None of the above
Answer» C. To increase managerial efficiency
41.

Sales organization is needed for ……………….

A. Providing insight into avenues or advancement
B. Increasing morale
C. Increasing profitability
D. To build team work
Answer» A. Providing insight into avenues or advancement
42.

Line and staff organization usually result as the size of the operations ……………….

A. Slows
B. Grows
C. Diminishing
D. Increasing
Answer» B. Grows
43.

……………is the most basic forms of sales organization, characterized by a chain of command running from the top sales executive down to the level of salesman.

A. Staff sales orgainisation
B. Functional sales organization
C. Line sales organization
D. None of the above
Answer» C. Line sales organization
44.

………………method is based on marginal -analysis theory of economics. Its basic concept Is that net profit will increase in the amount of sales revenue exceed the incremental costs.

A. Breakdown method
B. Incremental method
C. None of the above
D. Potential method
Answer» B. Incremental method
45.

……………….and ………….are thee source of recruitment in the sales organisation.

A. Company Executive and placement agencies
B. Managers and salesmen
C. Trustee and Manager
D. Partners
Answer» A. Company Executive and placement agencies
46.

………….The interview simulates the applicant would meet in actual selling situated and provides a way to observe the application’s reaction to them.

A. Personal
B. Formal
C. Stress
D. None of the above
Answer» C. Stress
47.

……………measures how well a person can perform particular tasks with maximum motivation.

A. Projective tests
B. Test of ability
C. Interest test
D. Test of habitual characteristics
Answer» B. Test of ability
48.

According to ……………..Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

A. Edwin. B.Flippo
B. H.R. Tosdal
C. C.L. Bolling
D. Peter Drucker
Answer» A. Edwin. B.Flippo
49.

A good sales organization is a ……………….for effective sales planning.

A. Planning
B. Organising
C. Decision making
D. Foundation
Answer» D. Foundation
50.

Sales organization is the ………….through which a sales manager’s philosophy is translated into action

A. Mechanism
B. Tool
C. Technique
D. Strategy
Answer» A. Mechanism
51.

……………is the group of individual striving jointly to reach certain goals and bearing formal as well as informal relation to each other.

A. Sales organization
B. Joint venture
C. Sole trader
D. None of the above
Answer» A. Sales organization
52.

In sales organization the work of sales department is divided in …………

A. Group
B. Different task
C. Sole trade
D. In two partners
Answer» B. Different task
53.

A sound sales organization increases …………….

A. Managerial efficiency
B. Organizational behavior
C. Customer relationship
D. Decision
Answer» A. Managerial efficiency
54.

To handle all the jobs and work of sales department is divided into division and …………..

A. Sub division
B. Group
C. Countries
D. Different peoples
Answer» A. Sub division
55.

The principle of ‘Right man on right job’ is followed for assigning these activities to different…………

A. Persons
B. Cities
C. States
D. Departments
Answer» A. Persons
56.

Sales organization helps in developing …………….

A. Group activity
B. Different task
C. Sales force
D. None of the above
Answer» C. Sales force
57.

If the goods are sold on credit bases,………..the amount of ………………is to be collected.

A. Credit sales
B. Credit purchase
C. Cash Sales
D. Bad-debts
Answer» A. Credit sales
58.

Effective and courteous correspondence with customers reflects ……………of the organization to the prospective cutomer.

A. Good image
B. Depreciation
C. Sales
D. Net profit
Answer» A. Good image
59.

Sales department helps the organization in increasing …………………

A. Raw material Purchase
B. Decision making
C. Credit sales
D. Sales Volume
Answer» D. Sales Volume
60.

……………………..bridges the gap between the market and the productive capacity of the firm.

A. Sales Organization
B. Purchase Department
C. General Manager
D. All of the above
Answer» A. Sales Organization
61.

Sales organization defines the relation ship between people in the organization in term of authority, responsibility and ……………

A. Accountability
B. Management
C. Controlling the expenses
D. Process
Answer» A. Accountability
62.

No two companies have ………………..sales organization structure.

A. Identical
B. Different
C. Very few similar
D. None of the above
Answer» A. Identical
63.

The flow of information may be both horizontal and ………………

A. Vertical
B. From bottom to top
C. From top to bottom
D. None of the above
Answer» A. Vertical
64.

The … …………….organization is the basic form of sales organization.

A. Line sales
B. Credit sales
C. Credit purchase
D. Co-operative societies
Answer» A. Line sales
65.

………………….organization is extensively used in similar firms are those dealing in a narrow product line, or selling in a limited geographic area.

A. Line organization
B. Sales department
C. Management
D. Joint venture companies
Answer» A. Line organization
66.

………………………..organization becomes inappropriate in case of rapidly growing organization are those with large sales staff, as growing departments necessitate additional layers of executives to be added.

A. Staff organization
B. Line Organization
C. Parallel organization
D. None of the above
Answer» B. Line Organization
67.

……… and ………….organization sometimes generates problems of interpersonal relation

A. Staff And Line
B. Staff and Square
C. Vertical and horizonal
D. Sales and manufacturing
Answer» A. Staff And Line
68.

……………….specialist do not share direct responsibility for result is also resented by some line executives.

A. Staff
B. Manager
C. Department head
D. None of the above
Answer» A. Staff
69.

The organization is headed managed by ……………….

A. Managing Director
B. Department head
C. Co- Ordinator
D. Employees
Answer» A. Managing Director
70.

The organization is headed by the managing director who has reporting to him line managers called …………….

A. Reginal Manager
B. Deputy Manager
C. Head of the department
D. None of the above
Answer» A. Reginal Manager
71.

Which is not a way that sales forces differs from other employees?

A. Salespeople set their hours of working
B. Salespeople represent their company to customers and to society in general
C. The Sales Force is largely responsible for implementing a firm's marketing strategies in the field
D. Sales people are among the few employees authorized to spend company funds
Answer» A. Salespeople set their hours of working
72.

_________ is actually support the sales persons, perform the promotional activities and work with training and education (may work directly with customer).

A. Sales support
B. Key account seller
C. Delivery seller
D. Missionary seller
Answer» A. Sales support
73.

________ facilitate sales to established accounts, they do not actually sell, per se, but rather leave the selling to the key account personnel or the consultative sales personnel.

A. Sales support
B. Key account seller
C. Delivery seller
D. New business seller
Answer» C. Delivery seller
74.

Which is the following is the correct sequence for coporate selling.

A. Pre-approach, approach, need assessment, presentation, meeting objective, gaining commitment, and follow up
B. Follow up, prospecting, pre-approach, approach, need assessment, presentation, meeting objective, gain commitment
C. Presentation, prospecting, pre-approach, approach, need assessment, meeting objective, gain commitment and follow up
D. Prospecting, pre-approach, approach, need assessment, presentation, meeting objective, gaining commitment and follow up
Answer» D. Prospecting, pre-approach, approach, need assessment, presentation, meeting objective, gaining commitment and follow up
75.

Which one is not a multiple realtionship strategies.

A. Multiple Relationship Strategy
B. All our multiple relationship strategies
C. Consultative Selling
D. Transactional Selling
Answer» B. All our multiple relationship strategies
Chapter: Managing the Sales Force
76.

………………involves identifying activities management feels the salespeople should perform to produce the desired results.

A. SWOT analysis
B. Environmental audit
C. Training analysis
D. Needs assessment
Answer» D. Needs assessment
77.

Which of the following is NOT an example of behavioral measures used to evaluate salespeople?

A. assessment of salesperson's attitude and attention to customers
B. product knowledge and selling and communication skills
C. appearance and professional demeanor
D. accounts generated and profit achieved
Answer» D. accounts generated and profit achieved
78.

Which are the most basic forms of the sales organization?

A. Line sales organization
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Answer» A. Line sales organization
79.

Companies engage in sales training to:

A. increase absenteeism and turnover
B. increase selling costs
C. decrease sales volume
D. change or reinforce behavior that makes salespeople more efficient
Answer» D. change or reinforce behavior that makes salespeople more efficient
80.

The formula N = S/P (1 + T) is for………………

A. Workload
B. Sales potential (or breakdown)
C. Incremental
D. None of the above
Answer» B. Sales potential (or breakdown)
81.

The sales force can play a central role in achieving a marketing orientation strategy, by

A. Maintaining infrequent contact with customer
B. Collecting and disseminating market information
C. Focusing on cutting costs
D. Following the competition's lead
Answer» B. Collecting and disseminating market information
82.

From management's point of view, what is the advantage of a straight salary compensation plan?

A. With a straight salary plan, selling costs are kept in proportion to sales.
B. The straight salary plan is simple and economical to administer.
C. With a straight salary plan, salespeople have the assurance of positive feedback.
D. A straight salary plan links performance to leadership style.
Answer» B. The straight salary plan is simple and economical to administer.
83.

The most critical impact to a sales organization affected by down-sizing is that:

A. The sales team is de-motivated
B. The company must recalculate sales budgets
C. The sales workload must be redistributed
D. Customers may change suppliers due to severed relationship with salesperson
Answer» D. Customers may change suppliers due to severed relationship with salesperson
84.

The three major tasks involved in the implementation stage of the sales management process are:

A. salesforce recruitment and selection, salesforce training, and salesforce motivation and compensation.
B. Developing account management policies, implementing the account management policies, correcting the account management policies.
C. Setting sales objectives, organizing the salesforce, and developing account management policies.
D. Organizing the salesforce, quantitative assessment, and follow-up.
Answer» A. salesforce recruitment and selection, salesforce training, and salesforce motivation and compensation.
85.

In which method does the net profits will increase when additional salespeople are added, If the increase in the amount of sales revenue exceed the incremental costs?

A. Workload
B. Sales potential (or breakdown)
C. Incremental
D. None of the above
Answer» C. Incremental
86.

An effective sales plan objective should be:

A. Precise, measurable, and time specific.
B. General, measurable, and flexible.
C. Profitable, subjective, and measurable.
D. Precise, profitable, and flexible.
Answer» A. Precise, measurable, and time specific.
87.

If a company chooses to employ its own sales force, the three organizational structures it may use are:

A. Dollar volume, geography, and customer.
B. Geography, customer, and product.
C. Geography, market size, and product.
D. Market size, product, and customer.
Answer» B. Geography, customer, and product.
88.

………………is teaching how to do the jobs.

A. Sales personnel
B. Sales target
C. Sales force training
D. Induction
Answer» C. Sales force training
89.

Which of the following is NOT one of the major factors affecting how compensation is structured for a sales force?

A. wage level in relation to salespeople in other organizations in the industry
B. salesperson's individual wage
C. wage structure for the sales force
D. number of new customers in each sales territory
Answer» D. number of new customers in each sales territory
90.

Which of the following elements is NOT used for determining the size of a sales force in the workload method?

A. Number of salespeople.
B. Number of customers.
C. Length of an average call.
D. Number of years in sales experience
Answer» D. Number of years in sales experience
91.

The most frequently used type of compensation plan is a:

A. Straight salary compensation plan.
B. Straight commission compensation plan.
C. Combination compensation plan.
D. Weighted compensation plan.
Answer» C. Combination compensation plan.
92.

In medium and large firms, one would find the………………types of organization

A. Line sales organization
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Answer» B. Line and staff sales organization
93.

The first step in determining how a firm's sales force compensation program will be structured is to determine the:

A. Wage level relative to salespeople in other organizations in the industry
B. Salesperson's individual wage
C. Wage structure for the sales force
D. Number of new customers in each sales territory
Answer» A. Wage level relative to salespeople in other organizations in the industry
94.

When commission is combined with a base salary it is known as………………

A. Commission based compensation plans
B. Straight salary compensation plan
C. Territory volume compensation plans
D. Profit margin/ revenue based sales compensation plans
Answer» A. Commission based compensation plans
95.

There are three interrelated elements of rewards for salespeople. One of the elements is nonfinancial compensation and includes:

A. Recognition dinners, certificates of achievement, and features in sales newsletters
B. Larger accounts and sales territories
C. Personal development opportunities, merit salary increases, and promotions
D. Promotions, certificates of achievement, and larger sales territories
Answer» A. Recognition dinners, certificates of achievement, and features in sales newsletters
96.

Research relating sales people’s personal characteristics to sales aptitude and job performance suggests there is no single set of traits and abilities that sales managers can use as criteria for deciding what kind of recruits to hire is known as…………..

A. Job analysis
B. Physical examination
C. Projective tests
D. Training
Answer» A. Job analysis
97.

All of the following would be major sales force management decision steps EXCEPT:

A. Designing sales force strategy and structure.
B. Supervising salespeople.
C. Global management and marketing structures.
D. Recruiting and selecting salespeople.
Answer» C. Global management and marketing structures.
98.

In which organizational structure, all sales personnel receive direction from, and are accountable to different executives, on different aspects of their work?

A. Line sales organization
B. Line and staff sales organization
C. Functional sales organization
D. None of the above
Answer» C. Functional sales organization
99.

Which of the following WOULD NOT be a method of establishing sales force structure?

A. Territorial sales force structure.
B. Lifestyle sales force structure.
C. Product sales force structure.
D. Customer sales force structure.
Answer» B. Lifestyle sales force structure.
100.

In which type of compensation plan there is no incentives?

A. Commission based compensation plans
B. Straight salary compensation plan
C. Territory volume compensation plans
D. Profit margin/ revenue based sales compensation plans
Answer» B. Straight salary compensation plan
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