D099 Sales Management - Set 2 - Part 2

Correct Answer: It sets arbitrary quotas for each sales representative

The incremental method optimizes the size of the sales force by adding new sales reps only when they are expected to generate more revenue than they cost.

Correct Answer: A supplier that provides products on credit

A preferred supplier is a company that enters into a formal agreement to provide goods or services with specific terms and conditions favorable to both parties.

Correct Answer: Responsible

In a RACI matrix, R stands for Responsible, indicating the person(s) directly responsible for completing the task or objective.

Correct Answer: Sales quota

Profit-sharing is a financial incentive where employees receive bonuses based on the companys profitability, aligning their interests with the companys success.

Correct Answer: Conducting interviews with customers about their experience

360-degree feedback involves gathering input from multiple sources to provide a well-rounded evaluation of an employees performance.

Correct Answer: Acknowledged

A stands for Accountable in the RACI matrix, meaning the person who is ultimately answerable for the completion of the task and responsible for approving the outcome.

Correct Answer: New task purchase

A straight rebuy occurs when a business purchases the same product from the same supplier under identical terms as a previous order.

Correct Answer: The percentage of leads that are converted to customers

Lead conversion rate is a metric that measures the percentage of leads that result in actual sales, indicating the effectiveness of the sales process.

Correct Answer: Substitute products

Cross-sell products are complementary items that are offered alongside a customers primary purchase, increasing the value of the transaction.

Correct Answer: An assessment of why certain sales deals were won or lost

Win-loss analysis is a review of successful and unsuccessful sales deals, helping businesses understand factors that contribute to both wins and losses.

Correct Answer: Lead response time

Lead response time tracks how quickly sales representatives engage with potential customers once a lead is identified, which can impact the likelihood of closing a sale.

Correct Answer: Just-in-Time (JIT) inventory management

JIT inventory management minimizes inventory costs by receiving materials only when they are required for production, reducing the need for excess stock.

Correct Answer: A tool for determining product market potential

A sales force composite involves gathering sales forecasts from each salesperson or territory, combining them to create an overall sales forecast.

Correct Answer: To ensure transparency and fairness in the bidding process

Sealed bids are used in government contracts to promote fairness and transparency by allowing companies to submit bids without knowledge of their competitors' offers.

Correct Answer: Customer loyalty

Bargaining power refers to the influence customers have when negotiating prices or terms with suppliers, often determined by the availability of alternative options.

Correct Answer: Passive customers

Carriage trade customers generate significant revenue but also demand extensive resources and attention from the business.

Correct Answer: 80% of the effects come from 20% of the causes

The Pareto Principle, or 80/20 rule, states that a small number of causes (20%) often lead to the majority of effects (80%), commonly used in sales and business management.

Correct Answer: Carriage trade customers

Bargain basement customers generate lower revenue but are easier to serve, requiring fewer resources and less attention.

Correct Answer: To increase short-term revenue

Strategic partnerships involve businesses committing resources to foster mutual growth and create long-term value for both parties involved.

Correct Answer: Direct quotas

Overlay quotas are assigned to those in supervisory or management positions who are not directly responsible for closing sales but oversee sales teams.