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Question;MULTIPLE CHOICE QUESTIONS62. Sales;analysis is a;well-accepted;trend analysis method.;necessity;for making all important marketing decisions.;way of;assuring that future sales will be profitable.;detailed;report of likely profitability.;detailed;breakdown of a company's sales records.;63. The best;way to break down and analyze sales data is;by;order size.;by;geographic region.;by;customer type.;by;product, package, size, grade or color.;any of;the above, depending on the situation.;64. The most useful;breakdown of data in a sales analysis is by;size of;order.;product;package size, grade, or color.;customer;type.;geographic;region.;any or;all of the above--depending on the situation.;65. A;marketing manager who wants to analyze the firm's sales should be aware that;sales;invoice files contain little useful information.;the;best way to analyze sales data is according to geographic regions.;sales;analysis involves a detailed breakdown of a company's sales forecasts.;sales;analysis may not be possible unless the manager has made arrangements for the;company to capture identifying information about each sale.;a;manager can never have too much data.;66. Sales;analysis;requires;more information than is available from traditional accounting reports.;can be;done in different ways--there is no single "best way.;often;studies how sales patterns change over time.;All of;the above are true.;None of;the above is true.;67. Marketing;sales analysis;keeps;track of whether a firm's sales are increasing or decreasing.;requires;a detailed breakdown of a company's sales records.;is very;hard to do--because computers must be involved.;looks;for exceptions or variations from planned performance.;tries;to avoid the 80/20 rule.;68. Detailed;sales analysis is;not;worth the cost unless the firm is very unprofitable.;based;on the information available on traditional accounting reports.;important;for producers, but usually not that valuable for retailers.;most;useful when it analyzes costs from different possible target markets.;None of;the above is true.;69. Sales;analysis;typically;involves reorganizing existing information rather than gathering new;information.;may;involve analyzing many different breakdowns of overall sales.;is;usually a good first step when setting up a control system.;All of;the above are true.;None of;the above is true.;70. The major;difference between a sales analysis and a performance analysis is that;performance;analysis looks at variations from planned performance, while sales analysis;shows what happened.;sales;analysis looks at individual transactions, while performance analysis groups;them into categories.;sales;analysis is a control procedure, while performance analysis is part of;implementation.;sales;analysis is concerned with expected sales, while performance analysis is;concerned with past sales.;sales;analysis is used to find profitable sales patterns, while performance analysis;seeks unprofitable patterns.;71. Compared;with sales analysis, PERFORMANCE ANALYSIS;shows;which customers should be dropped.;looks;for exceptions or variations from planned performance.;does;not do as much comparing against standards.;shows;how to improve performance.;All of;the above.;72. Performance;analysis differs from sales analysis in that performance analysis involves;detailed;breakdowns of a company's sales records.;analyzing;only the performance of sales representatives.;comparing;performance against standards--looking for exceptions or variations.;analyzing;only people--not products or territories.;budgeting;for marketing expenditures on the basis of contribution margins.;73. A;marketing "performance analysis" is most likely to compare;an;individual sales rep's performance to total company sales.;a;firm's sales with its competitors' sales.;sales;by product to sales by territory.;advertising;cost to sales.;planned;sales with actual sales.;74. The main;purpose of a performance analysis is to;see;whether or not the 80/20 rule applies in a particular situation.;uncover;variations in performance that may be hidden in summary information.;determine;who should receive a performance bonus when profit is greater than expected.;determine;if the marketing budget is large enough to achieve the expected sales;performance.;provide;a detailed breakdown of a company's sales records.;75. Which of;the following statements might result from a performance analysis?;Our California;salesman sold more aluminum tubing than any of our other reps.;Sophia;Sanchez calls on two of our three biggest customers.;Joshua;Voigt sold less tubing to wholesalers than to manufacturers.;Walker;Brown sold more aluminum tubing than steel tubing.;Pele;Ruiz's sales are over his quota.;76. Doug;Selkirk is a sales manager for IBM. He has asked his assistant to prepare an;analysis that shows what percent over or under quota each sales rep was during;the last year. This is an example of;using;natural accounts.;the;contribution-margin approach.;sales;analysis.;target;market analysis.;performance;analysis.;77. Performance;analysis;is;based on qualitative factors, as contrasted with sales and cost analysis which;are based on quantitative data.;is most;useful in situations where the iceberg principal is not likely to be a concern.;indicates;why problems have occurred and how to solve them.;may be;based on several different performance indexes.;All of;the above are true.;78. A good;reason for using performance indexes is to;convert;sales data to profit data.;make it;easier to compare situations.;find;territories where actual sales are very high or low.;direct;management attention to territories where the market potential is greatest.;None of;the above is true.;79. Performance;indexes;are;based on the "iceberg principle.;show;the relation of one value to another.;are;used mainly to eliminate lazy salespeople.;provide;a qualitative measure of what "ought to happen.;are;calculated from the Consumer Price Index.;80. If;Salesperson A has a performance index of 80 and Salesperson B has a performance;index of 120;Salesperson;A's performance should be used as a model to improve everyone's performance.;Salesperson;B's performance should be improved to bring it up to "average.;Salesperson;A may be having some problems.;Salesperson;B should be fired.;the two;average out to 100--and "all is well.;81. If;Salesperson X had a performance index of 80 and Salesperson Y had a performance;index of 120, then;Salesperson;X may be having some problems and his sales performance should be investigated.;the two;would average out to 100--and this would suggest that "all is well.;Salesperson;X's performance should be investigated as a guide to improving everyone's;performance.;Salesperson;Y probably should be fired.;Salesperson;Y obviously had higher sales than Salesperson X.;82. Information;about five sales reps and their territories is presented below. Which would;have the highest performance index?;Aayak;Bellio;Cadams;Dooty;Eayma;83. Avon;Inc., has analyzed the market potential in its territories and set sales quotas;for its salespeople. It is now in a good position to develop;indexes at the end of the year.;MIS;performance;PERT;sales;contribution;84. The;iceberg principle;explains;why some firm's sales are "cooler" that others.;explains;why some customers are more profitable than others.;suggests;that sales will vary from one territory to another.;suggests;that much good information may be hidden in summary data.;says;that sales reps should never make "cold calls" on customers.;85. The;iceberg principle suggests that;most;competitors' strategies are not obvious on the surface.;small;customers usually have the most hidden profit potential.;conclusions;based on summary information are often misleading.;no;matter what control procedure is used, most major problems are impossible to;detect until it is too late.;None of;the above is true.;ements best explains the "iceberg principle"?;Several;salespeople in a sales force usually meet their quotas while many others don't.;Many salespeople;don't make their quotas because they only try to sell to large customers.;Most;consumer decisions are at the 90 percent pre-conscious level.;Ten;percent of a firm's customers usually account for 90 percent of its sales.;Good;performance in some areas may hide poor performance in other areas if only;averages are evaluated.;87. Averages;are useful for summarizing data--but only analyzing "averages" may be;misleading according to;the;iceberg principle.;AIDA.;hypothesis--testing;theory.;the;law of central tendency.;the;50/50" rule.;88. A sales;manager has just discovered that one of his sales reps has sales about 20;percent below his quota. The sales manager should conclude;that;the sales rep's quota was set too high.;that;the sales rep lacks the desire to succeed.;that;all is well" because other salespeople had sales that were at least;20 percent over their quotas.;that;the salesperson's performance index is 4 (i.e., 80:20).;nothing;thus far--because of the "iceberg principle.;89. Which of;the following statements best describes the "iceberg principle"?;Problems;in one area may be offset by good performances in other areas--and thus the;problems may not be visible on the surface.;Ten;percent of the items in inventory usually account for 80 percent of the sales.;Within;a company's sales force there are usually one or two sales reps who don't carry;their weight.;Many;sales reps do not make their quotas because they ignore certain clients.;Airfreight;is less risky than shipping by boat.;90. Which of;the following statements by a sales manager best reflects an understanding of;the iceberg principle?;Detailed;cost analysis gets you focused on small parts of the problem, whereas general;summaries make it easier to see the really big problems.;Most;costs that look like they're fixed are actually changing all of the time.;Don't;tell me that you're certain we're going to increase sales. They were certain;that an iceberg couldn't sink the Titanic!;Let's;not dwell on sales data summaries--let's get below the surface and study the;details.;Cost;problems always show up first--but controlling expenses doesn't mean that you;won't run into revenue problems.;91. General;summaries of overall marketing cost data;may;hide problems rather than highlighting them.;are;usually the key to identifying how to improve the marketing plan.;should;not be too detailed--since detailed analysis requires allocating costs that are;actually fixed.;are;usually enough to reveal areas where changes are needed.;All of;the above are true.;92. Marketing;cost analysis shows that one of Buildco, Inc.'s customers is unprofitable, so;Buildco should;refuse;to sell to that customer.;try to;determine why this customer is unprofitable.;drop;the customer and shift all fixed costs to the other customers.;assign;a new salesperson to that account.;immediately;develop a plan to sell more to that customer.


Paper#44975 | Written in 18-Jul-2015

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