Answer The Following 10 Questions Below, Please Use M 492298

Answer The Following 10 Questions Below Please Use My Course Textbook

Answer The Following 10 Questions Below Please Use My Course Textbook

Answer the following 10 Questions below, please use my course textbook ONLY. HIGHLIGHT THE ANSWERS 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 A manufacturer has 20 sales representatives using their own cars to cover territories of various sizes in the eastern half of the United States. To reimburse these people for the use of their cars, the plan most equitable to both management and the sales force is a: a) payment of actual expenses as reported by the sales reps. b) flat rate per mile. c) fixed allowance per month. d) flexible allowance such as the Runzheimer plan. Question 2 The best method for a manager to use when dealing with a situation of substance abuse with a sales rep is: a) immediate termination of the sales rep. b) ignore the situation and it will resolve itself. c) provide counseling to the sales rep yourself. d) refer the sales rep to professional counseling. Question 3 When a leader anticipates, analyzes, and makes decisions, the leader uses________________. a) problem-solving skills b) social skills c) communication skills d) persuasive skills Question 4 As more salespeople use virtual offices supervisors will: a) spend more time in the field with their reps. b) spend less time in the field with their reps. c) work at home most of the day. d) have less access to information. Question 5 For which of these sales jobs will management most likely use an activity quota? a) wholesale hardware sales rep b) life insurance sales rep c) missionary sales rep for a soap manufacturer calling on grocery stores d) wholesaler's salespeople selling office supplies Question 6 A drawback to basing sales quotas on last year's sales is that this method: a) places too much emphasis on territorial sales potential. b) generally ignores current changes in a territory's sales potential. c) is a complex system to administer. d) ignores the fact that an older sales rep has covered the territory or is still there. Question 7 A major criticism against sales quotas is that: a) it is very difficult to set quotas accurately. b) quotas are not fair to the sales force. c) quotas cannot stimulate sales of profitable products. d) quotas are not realistically attainable. Question 8 Indirect supervisory techniques include all of the following, except________________. a) sales meetings b) territories c) quotas d) expense accounts Question 9 A company is likely to use a sales volume quota when management wants: a) a balanced sales effort between selling and non-selling activities. b) a salesperson to develop a new market. c) to increase its gross margin. d) to correct an unbalanced inventory situation by pushing sales of one item. Question 10 A well-designed plan for paying salespeople's expenses should: a) pay the same amount to each sales rep. b) allow a rep to earn the same net income whether on a business trip or at home after work each day. c) allow for a little padding of expense accounts. d) be used, to some extent, in lieu of compensation, thus providing some nontaxable income to a sales representative.

Paper For Above instruction

Effective management of a sales force hinges on the strategic implementation of compensation, supervision, and quota systems. The choice of reimbursement plans for sales representatives, handling of sensitive situations such as substance abuse, and deployment of supervision techniques play critical roles in enhancing sales productivity and maintaining ethical standards within an organization. This paper discusses these themes based solely on principles detailed in Spiro, R. L., Rich, G. A., & Stanton, W. J.'s (2008) "Management of a Sales Force."

Reimbursement Plans for Sales Representatives

Compensating sales personnel who use their own cars involves selecting a plan that fosters fairness and motivates productivity. The options outlined in the textbook include actual expense reimbursement, flat mileage rates, fixed monthly allowances, and flexible plans such as the Runzheimer approach. The most equitable plan, from a management standpoint, is typically a flexible allowance such as the Runzheimer plan because it accounts for varying costs across different regions and individual circumstances, promoting fairness (Spiro, Rich & Stanton, 2008). It reduces disputes about reimbursements and aligns expenses more precisely with actual costs. The flat rate per mile simplifies administration but may not reflect true costs, and fixed allowances risk either undercompensating or overcompensating sales reps.

Handling Substance Abuse in the Sales Force

Addressing substance abuse among sales reps is a sensitive managerial challenge. The best practice, as advocated in the textbook, is to refer the employee to professional counseling rather than immediate termination or ignoring the problem (Spiro, Rich & Stanton, 2008). This approach balances concerns for employee well-being with organizational interests, fostering a supportive environment that can potentially reintegrate the employee into productive work while addressing underlying issues. Immediate termination should be reserved for cases where the abuse directly compromises safety or violates policies, whereas ignoring the problem can lead to increased risks and moral concerns.

Leadership and Decision-Making Skills

Effective leadership in sales management involves a combination of anticipated planning, analytical capability, and decisiveness. The textbook emphasizes that leaders utilize problem-solving skills predominantly when anticipating, analyzing, and making decisions, thus guiding the team through complex situations (Spiro, Rich & Stanton, 2008). These skills enable leaders to assess variables, weigh options, and implement strategies that optimize sales outcomes while maintaining ethical standards and motivation.

Supervision in a Virtual Environment

The shift towards virtual offices requires sales managers to adapt their supervisory practices. The textbook suggests that supervisors are likely to spend less time in physical field visits and more time overseeing by remote means, including virtual communication and digital data analysis (Spiro, Rich & Stanton, 2008). This shift enhances efficiency but requires robust digital infrastructure and trust in self-managed sales teams.

Activity Quotas for Sales Jobs

Different sales roles require specific quota systems to effectively motivate and measure performance. For roles such as wholesale hardware sales reps, life insurance agents, or those calling on retail stores, activity quotas—like number of calls or presentations—are particularly suited, especially when sales conversions depend heavily on activity levels rather than just sales volume (Spiro, Rich & Stanton, 2008). For example, missionary sales reps for a soap manufacturer focus heavily on activity metrics to ensure coverage of target accounts.

Limitations of Sales Quotas Based on Past Sales

Using prior year's sales to establish quotas can be problematic because it overlooks current market dynamics and potential changes within territories. The textbook highlights that such a method gives undue emphasis on past performance without considering evolving market conditions, making it less adaptive for future planning (Spiro, Rich & Stanton, 2008).

Criticism of Sales Quotas

A widespread criticism of sales quotas is their potential to be unrealistic and demotivating when set improperly. If quotas are unattainable, they can foster frustration and lower morale, which in turn can negatively impact performance. The textbook notes that setting accurate, attainable quotas that challenge yet motivate salespeople is critical, but often difficult (Spiro, Rich & Stanton, 2008).

Indirect Supervisory Techniques

In indirect supervision, managers use tools like sales meetings, territory assignment, quotas, and expense accounts. Among these, territories serve as indirect supervision mechanisms that guide and evaluate sales activities without constant direct oversight, making them suitable for managing distributed sales teams. Expense accounts, on the other hand, provide financial oversight but are not direct supervisory tools per se. According to the textbook, territories are most characteristic of indirect supervisory techniques (Spiro, Rich & Stanton, 2008).

Use of Sales Volume Quotas

Sales volume quotas motivate sales personnel towards increasing overall sales figures. They are especially useful when management's goal is to expand market share or boost gross margins, aligning individual efforts with corporate revenue objectives. For example, by setting volume targets, a company aims to push sales of specific products or achieve overall sales growth (Spiro, Rich & Stanton, 2008).

Designing Expense Reimbursement Plans

Effective expense reimbursement plans should aim to be equitable across the sales team and transparent. The best plan allows salespeople to earn comparable net incomes regardless of their travel schedule, avoiding disparities that can demotivate (Spiro, Rich & Stanton, 2008). A plan that permits some padding within reasonable limits and ensures fair treatment promotes trust and morale among the sales force.

Conclusion

In summary, managing a sales force effectively involves careful consideration of compensation, supervision, and motivation strategies. Adopting flexible reimbursement plans, addressing employee issues ethically, and setting appropriate quotas aligned with sales job roles are critical to organizational success. The principles outlined by Spiro, Rich, and Stanton provide a comprehensive framework for sales managers aiming to optimize their teams' performance while maintaining ethical and operational standards.

References

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