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sales exam 2
Terms in this set (62)
a. INPUT OUTPUT Proposed territory maps
b. NPUT OUTPUT Zip-Territory files
c. INPUT OUTPUT Proposed set of territory headquarter locations
d. INPUT OUTPUT Workload
e. INPUT OUTPUT Territory sales
f. INPUT OUTPUT Sales targets
According to the Cognizant deck, a classically defined alignment index is comprised of three components: sales, sales potential, and product market share.
Territory alignment is done at the sales rep-brand segment level of analysis.
The territory alignment process is an opportunity for the company sales organization to redo the sales force strategy outcomes on size, structure, allocation, targeting quality, and optimal disruption analysis.
According to the Cognizant deck, an effective territory alignment process involves one where the alignment design is produced by the sales management group and senior sales leadership with collaboration and input from field managers.
According to the Cognizant deck, territory alignment processes need not be rigorous and establish/follow guiding principles because legal challenges by sales reps who feel they have been unfairly displaced and/or mistreated rarely occur.
According to the Cognizant deck, a "vacancy management process" is derived from the territory alignment process that prioritizes which individual territories need to be filled in the event of a sales rep departure.
According to the Cognizant deck, the territory alignment process is inherently difficult to implement since it involves work and collaboration among various headquarters-based functions as well as personnel from the field.
Span of control is the measure of directive leadership culture within the sales organization.
According to the Cognizant deck, an "alignment index" is primarily used to allocate resources across geography and to design balanced territories.
According to the Cognizant deck, territories need not be perfectly balanced with respect to workload, but rather where variation exists within an acceptable and fairly narrow range.
According to the Cognizant deck, when making major changes to the territory alignment design, it is important to communicate frequently to the sales team since more information will lead to less disruption and anxiety to the sales team.
Poor alignment is a factor in contributing to low morale and high turnover.
The completion of an optimal territory alignment process usually reduces salesperson travel.
According to the Cognizant deck, tracking and measuring outcomes is a "best practice" with regard to conducting a territory alignment design process.
According to the Cognizant deck, it is acceptable for an optimal territory alignment to have workload variation per sales rep at +/- 15% of the average workload across a specialized sales team.
Balancing workload is not necessarily the same as balancing the number of targets in a sales rep territory.
a. R AR New products
b. R AR Disruption of sales reps
c. R AR Incentive compensation plan design
d. R AR Data is limited
e. R AR Realignment is costly
f. R AR Unbalanced territories.
g. R AR Realignment is difficult, complex, and time-consuming
h. R AR Mergers and acquisitions
a. INPUT OUTPUT Workload distribution
b. INPUT OUTPUT Customer or segment level call plan based on ROI
c. INPUT OUTPUT Sales force size & structure
d. INPUT OUTPUT Call limits and constraints
e. INPUT OUTPUT Organization specific business rules
f. INPUT OUTPUT Call planning for feasible directions
According to the Cognizant deck, engaging in disciplined targeting and higher call plan adherence in general leads to about the same financial performance versus not doing these activities.
A call plan adherence metric in general does reward sales reps for "over-delivery" of calls to customers relative to the call plan. The call plan encourages reps to deliver more calls.
According to the Cognizant deck and experience, call plans derived from and imposed by headquarters onto field sales reps generally results in higher financial outcomes than collaborative call planning processes since headquarters knows better than the field how to devise optimal plans.
According to your professor, the timing/frequency of call plans for many companies is generally just calendar-based, in sync with other critical sales, commercial, and financial processes that happen on a regular and consistent basis.
Brand team segmentations play a critical role in determining optimal call planning.
The vast majority of companies do not engage in call planning or precision selling processes according to your professor.
An important key principle to call planning is to enforce sales representative, product, and customer level constraints while modifying the call plans.
Regarding insights for better precision selling implementation, sales support resources need to be customized for salespeople, while education and involvement of salespeople and managers is not essential.
Poor coaching by first-line managers, misaligned incentives, lack of a collaborative call planning process with the field, and the launch of new products that can distract reps are some reasons why sales reps do not follow the call plan.
a. TRUE FALSE Strategic vs. Financial
b. TRUE FALSE Home office driven vs. Field driven
c. TRUE FALSE Brand segment level vs. Sales rep level
d. TRUE FALSE Longer-term vs. Shorter-term time horizons
a. TRUE FALSE Sales support resources need to be customized for salespeople.
b. TRUE FALSE Quick wins are important.
c. TRUE FALSE Precision selling programs generate institutional learning.
d. TRUE FALSE Education and involvement of salespeople and managers is essential
Performance management process involves these steps in the following order: a) goals and expectations, b) plans, c) measurement, and d) actions.
Good performance management is not necessarily a reflection of a company's culture.
According to Bryan Bain's deck, business metrics on sales objectives are used to report progress.
According to Bryan Bain's deck, business metrics on business results are used to manage salespeople.
The first step in metrics-based sales management is to define objectives that will produce the desired results.
A culture of leveraging the data with analytics to develop a competitive advantage is critical for effective sales force reporting.
In the evaluation process, feedback is given during both formal and informal processes.
Good performance management is not a reflection of a company's culture.
Peer influence is not powerful in helping manage performance since it can lead to discouraging reps.
Performance management works at all levels in an organization.
According to the Dennis Gallagher of AstraZeneca presentation, a Goal IC scheme, a pro includes scores high on fairness and equity, and a con includes the total incentive payout is not known in advance.
An incentive payout matrix that rewards both salesperson and company performance will encourage sales reps to collaborate and assist their sales team colleagues in adjacent territories.
a. Focus on Employee Activity
b. Discourage Entitlement Mentality
c. Discourage Employee "Stakeholdership"
d. Reinforce the importance of effective segmentation analysis
e. Align Pay with Results
f. Communicate to shareholders the importance of the company marketing and sales strategy
a, b, e
Companies fiddle constantly with their incentive plans - most of the changes made have significant effects.
A growing body of research suggests that the laggards, core performers, and stars who make up the sales force are each motivated by the same facets of the compensation plan.
The authors agree that capping commissions is not a good thing since it undermines top star rep performance.
The reps of the future will continue to work on commission.
SF goals affect the customer, salesperson, and company.
Goal setting should be challenging, attainable, and fair.
Step 1 in determining successful territory-level goals is understanding territory expectations and behavior.
The last step, Step 5, in determining successful territory-level goals is finalizing the formula or process.
The process of determining successful territory-level goals should always involve a review and finalize goals with field sales managers.
According to the course outline, the impact of SF goals by accomplishment involve the following
a. Poor goal setting leads to increased costs and low morale.
b. The most suitable goal depends on business objectives and the business environment.
c. Rank-ordering sales people is an alternative to goal setting.
d. Limit the number of goals to 3.
a, b, c, d
Senior sales management, first-level manager, and salespeople are measured by the same goals and by the same emphasis per goal.
Identify the following statements below that CORRECTLY state which impact of sales force goals by accomplishment is CORRECT
a. Measure accomplishment
b. Increase motivation
c. Reward performance
d. Communicate what is important
e. Suggest effort allocation
f. Ensure customer focus
a, b, c, d, e, f
Developing a potential allocation formula for territory-level sales goals based on regression analysis is technically easy to do and does not require much in the way of data.
Establishing SF goals are linked to company financial forecasts, brand team goals, and company strategy.
Once SF goals are implemented, review, tracking, and feedback loops are critical to future success.
The example we showed in class about inaccurate sales force goals showed it has little effect on costs to the company.
When establishing SF goals, the focus is on franchise and carryover sales, not rep sales.
Sales force causality involves the sales revenue generated by sales reps that they can affect due to actions and activities they undertake.
The Temple Owls are playing much better football than the Philadelphia Eagles. The former team will likely make a bowl appearance, while the latter team will NOT make the playoffs.
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