Course Textbook 

Spiro, R. L., Rich, G.A., & Stanton, W. J. (2008). Management of a sales force (12th ed.). New York, NY: McGraw-Hill/Irwin. 

Question 1

Which of these changes is apt to decrease the geographical size of a territory? 

a)cover an area more intensively with increased call frequencies, etc., in order to meet competition more effectively. 

b)company substitutes a selective distribution policy instead of mass distribution. 

c)company decides to sell to retailers instead of door-to-door. 

d)have a sales rep discontinue the missionary phases of his job and do nothing but straight selling. 

Question 2 
When designing sales territories the ideal goal is to have: 

a)all representatives reach approximately the same level of income. 

b)all districts be equal in both sales potential and work load for the representatives. 

c)all districts be of equal in size. 

d)all territories provide the same profit potential. 

Question 3 
Regarding the North American Industry Classification System: 

a)It is used to forecast the sales of consumer products. 

b)It classifies test markets according to their representativeness of certain types of consumers. 

c)It can be used as a basis for developing a composite forecast. 

d)It can be used as a basis for developing a market index. 

Question 4 
A county or group of contiguous counties with a combined population of 100,000, with a general urban area over 50,000, and with mainly nonagricultural employment is best described as a _________________. 

a)sales territory 

b)metropolitan statistical area 

c)census tract. 

d)trading area 

Question 5 
Most sales executives believe that claim jumping by sales reps: 

a)lowers selling costs. 

b)is a necessary evil. 

c)is often a sign that territories are too big. 

d)can be an indication of the need for territorial adjustment. 

Question 6 
Once territories are established, sales managers should: 

a)seldom - if ever - revise them. 

b)revise them regularly as companies and markets change. 

c)regularly rotate salespeople through each territory. 

d)encourage claim jumping. 

Question 7 
Experts have estimated that about_____ of sales territories are either too big or too small. 

a)15% 

b)25% 

c)55% 

d)75% 

Question 8 
The total share of lawnmower sales, in the South Atlantic census region, which Sears, Roebuck should get next year is that company''s ______________ for the product. 

a)market potential 

b)sales budget 

c)sales potential 

d)market factor 

Question 9 
A sales territory is a geographical area. But the key words in the definition or concept of a sales territory are: 

a)basic control unit. 

b)present and potential customers. 

c)salesperson or sales branch. 

d)effective use of a salesperson''s time. 

Question 10 
An annual (rather than quarterly) budget period is most likely to be used in a company that: 

a)wants considerable flexibility in its budget. 

b)wants very close control over its operations. 

c)has seasonal production and marketing cycles. 

d)wants to minimize the time and detail that goes into the budgeting process.