DoE) Sales Management Questions eee BRL Rela) Start Complete Exam Preparation CeCe Ro cece ce ees rere Jownload App MCQ Question 1 View this Question Online > What will be the result of a promising and over-delivering sales strategy? 1. Fullline sales 2. Happy customer 7 3. ‘~ dissatisfaction 4, Customer exchange Answer (Detailed Solution Below) Option 2: Happy customer ‘Sales Management MCQ Question 1 Detailed Solution C9 Key-Points Under promising and over-delivering sales strategy: + Under promising and over-delivering refers to doing more han what was stated and going that extra mile to satisfy customers. + Itrefers to providing value for money, which is somethingall the customers want. + Itis simply the comparison of their pre-purchase expectations against the level of value that customers actually received. gc ac Aa ca Bees: en emcee aud dich: 40a seONAR sieht asc’ Vie iat alta+ After stating the cost PBs and services, quality of products and services, delivery time, after-sales package 2 nty, etc. itis often the business that determines customer expectations. + By exceeding customer expectations i.e. by underpromising and over-delivering, it will be beneficial for businesses as it often results in repeat sales and free advertising through word of mouth. Thus, Customer satisfaction / Happy customers will be the result of a promising and over- delivering sales strategy. eee Seen parte Start Complete Exam Preparation REC tice fay ics mac Ceres Cd sie i Ca rc jownload App MCQ Question 2: View this Question Online > What will be the result of a promising and over-delivering sales strategy? 1. Fullline sales 2. Happy customer oh: dissatisfaction 4, Customer exchange Answer (Detailed Solution Below) Option 2: Happy customer ‘Sales Management MCQ Question 2 Detailed Solution CPkey-PointsUnder promising and over-delivering sales strategy: * Under promising and over-delivering refers to doing more than what was stated and going that extra mile to satisfy customers. + It refers to providing value for money, which is something all the customers want. + Itis simply the comparison of their pre-purchase expectations against the level of value that customers actually received + Customers will always jaye 2n expectation, and it must be met and managed by the business. + After stating the cost o' icts and services, quality of products and services, delivery time, after-sales package and ty, ete. itis often the business that determines customer expectations. + By exceeding customer expectations |.e. by underpromising and over-delivering, it will be beneficial for businesses as it often results in repeat sales and free advertising through word of mouth. Thus, Customer satisfaction / Happy customers will be the result of a promising and over- delivering sales strategy. Pd ere een petit Sela mel Mc eter hited) ORS DR nr Gipuns res oes cl icsoo oa Download App MCQ Question 3: View this Question Online > One of the major benefit of cross-selling is increase in__. 1. Customer Lifetime Value (CLV) 2. Customer defection rate 3. Price of the product q 4. Service cost Rahs (Detailed Solution Below) Option 1: Customer Lifetime Value (CLV)Sales Management MCQ Question 3 Detailed Solution Cp key Points Cross-selling: + Cross-sellingis 2 sales technique used to sell an additional product or service to an existing consumer. Cross-selling includes selling complementary or supplementary products or services based on the customer's interest, or purchase of one of a company’s products. + An electronic retailer offering a computer case, mouse, and screen cleaning wipes toa customer who is about to purchase @ new laptop is an example of cross-selling. * One of the major benefits of cross-selling is an increase in Customer Lifetime Value (CLV) through deeper integration in a customers business. + Other major benefits of cross-selling include improved customer satisfaction and increased Zs os gor” + Steps for cross-selling a pro 1. Identification of compi: 2. Identification of suitab! 3. Developing a cross-selli roe t or service suitable for cross-selling who would be ready for a cross-selling ign and customer joumey. + When this strategy doesn't work, cross-selling can be ineffective at generating sales. + According to some experts, eross-selling is not always a good idea, even when it works. + According toa Harvard Business Review study published in 2012, certain types of customer problems can actually make cross-selling a profit-losing strategy. + Its crucial for companies to analyze data and metrics related to cross-selling marketing campaigns to evaluate which efforts aid in cross-selling without reducing overall profitability. Therefore, one of the major benefits of cross-selling is an increase in Customer Lifetime Value (cLv).De ABR Re ia) PS ela MeCN cima lel) Tee tot MCQ Question 4: _ . View ; < i‘. Online > Front Systems covering real-time aspects of sales-related activity are referred toas__. 1. automated marketing 2. erm customer Communications 3. ermeustomer services 4, sales force automation of Answer (Detailed Solution Below) t Option 4 : sales force automation Sales Management MCQ Question 4 Detailed Solution Front Office CRM Systems cayeging realtime aspects of sales-related activity are referred to as canes et” © Key Points + Sales force automation (SFA) is when parts of the sales process are automated by software tools. * The automation usually focuses on repetitive, administrative tasks that, while important, can be time-consuming for sales teams to perform. + Thus, all the functions that are repetitive and are done over and over again are automated.ieee perc Pela me (Maciel h el) ince: laa ores D Download App MCQ Question 5: View this Question Online > Sales forecasting involves- 1. Sales planning 2. Sales pricing 3. Distribution channel 4, Consumer Tastes 5. Allof the above YY (Detailed Solution Below) _ Option 1 : Sales planning ‘Sales Management MCQ Question 5 Detailed Solution The correct answer is- Sales planning. © Key Points CR cos* Sales forecasting: The sales forecast is an estimate of sales during a specified future period, whose estimate is tied to. a proposed marketing plan and which assumes a particular state of uncontrollable and competitive forces. Sales forecasting is a crucial business exercise. Accurate sales forecasts allow business leaders to make smarter decisions about things like goal-setting, budgeting, hiring, and other things that affect cash flow. 2 Meanwhile, an inaccurate sales forecast leaves sales managers guessing at whether they'll actually hit quota. Asa result, they may not be aware of any problems in the sales pipeline in time to fix them. ot J + Sales planning: Sales planning skills, very precisely, refer to the ability of an individual tosetsales. targets and then define 2 set of steps thal will be taken and the strategies ‘thatwill be used to meet those targets. 2 » Describing in detall, sales planning skills refer to the evaluetion of current performance or sales of a given product in a particular target market, defining the sales target, identifying the strategies for achieving thet target, and identifying the resources available for the achievement of the stated sales target. Important Points ’ * Sales planning is a key function ir cedure of the sales management process. Sales planning is an effective method that involves sales forecasting, demand management, setting profit-based sales targets, and the written execution steps of a sales plan. + The sales management process has three stages: 1. Formulation of a Strategic Sales Programme: The strategic sales progrm should consider the environmental factors faced by the firm. It should organize and plan the companys overall personel-selling efforts and integrate these with the other elements of the firm's marketing strategy. Implementation of the Sales Programme: The implementation phase involves selecting appropriate sales personnel, as well as designing and implementing policies and procedures that will direct their efforts towards the desired objectives. Evaluation and Control: The evaluation phase involves developing methods for monitoring and evaluating the performance of the sales force. Hence, the correct answer is- Sa/es forecasting involves sales planning. ge Reel CLA hrc onc AS la Oui) (CM bcm ere) rie Lied) ince eos pees Question Bank Bethe Derren Download App ees ee eeView this Question Online > Sales forecast implies- 1. An estimate of the maximum possible sales opportunities present in a particular market segment. A ssales forecast is @ prediction of future sales revenue. Sales forecasts are usually based on historical data, industry trends, and the status of the current sales pipeline Businesses use the sales forecast to estimate weekly, monthly, quarterly, and annual sales totals. > Sales forecasting is ¢ crucial business exercise. Accurete sales forecasts allow business leaders to make smarter decisions about things like goal-setting, budgeting, hiring, and other things that affect cash flow. = Sales forecasting is one of the major planning premises in business organizations. It is the result of numerous assumptions made about the external (industry sales, ‘competitors’ actions, for example) and internal (costs, Technology, personnel, for example) environments of the firm. # Important Points a nea i te a,Sint eee p LOR! ape NM Sees RES ts > Sales forecasting enables mrss organization to work systematically. + Forecast enables the pro ‘anager to set targets for his workers. * It enables the sales depertrment to fix responsibilities on every salesman. 2 In the absence of a sales forecast, a business enterprise may work without any focus and this may result in wastage of its resources. = Ithelps to cut down wasteful expenditure and asa result, the goods canbe offered at a fair price. = Sales forecast enables all the depertments of the business to work together in proper coordination and co-operation. As the target is set for each individual and department, it is easy to control performance. = Sales forecasting is vital for preparing the budget. Ithelps to determine the production capacity that is actually required > Sales forecast helps in product mix decisions as well. it enables the business to decide whether to add a new product to its product line or to drop an unsuccessful one. Hence, the correct answer is- Sa/es forecast implies An estimate of the maximum possible sales opportunities present in a particular market segment and An estimate of sales, in physical units, in a future period. a c cere pet eae Start Complete Exam Preparation Canin phes Pacts aad storey Download App Coa cerrsteicrg Peis) MCQ Question 7: View this Question Online > what is it called, when the company follows steps in a sales cycle? 1 . J Sales footsteps, 7- Sales call 3. Sales stepsSales process 5. All the above ‘Answer (Detailed Solution Below) Option 4: Sales process ~a ‘Sales Management MCQ Question 7 Detailed Solution Sales process is defined as the steps taken in the sales cycle. eee pee) eC Ree Start Complete Exam Preparation Cais os Mock Tests lad rete Cotesia Penne Download App MCQ Question 8: View this Question Online > The meaning of ‘conversion’ in terms of sales is 1. designing new products) 2. designing purchase into sellers. 3 > % sellers into purchasers. 4, converting perspective customers into purchasers.5. conversion of religion. Answer (Detailed Solution Below) Option 4: converting perspective customers into purchasers. ‘Sales Management MCQ Question 8 Detailed Solution The correct answer Option 4 @ Key Points * + In sales, “conversion” refers to the process of turning a prospect into a customer. * Conversion Rates are ercentage of potential customers that complete the desired action. + The main conversions iarketers often refer to include: raxcom gi > Leads + Email signups + Form completions = Registration + Subscription = Visits to a key page > Phone calls (or other direct contact) India’s #1 Learning Platform CRGer Speers Start Complete Exam Preparation a ra rea bal re Cotes aa Gl Oy Download App MCQ Question 9: View this Question Online > Which element of the promotion mix does the wholesaler rely on to achieve its promotion-mix objectives? 1. advertisement 2. trade promotion A 7NOE ORE Pe PPM TP A 4. direct marketing 6° . An Oy ution Below) ti ion 2: trade promotion Sales Management MCQ Question 9 Detailed Solution €) Key-Points Promotion Mix: + The purpose of promotion is to inform, persuade, and influence the perspective of customers. + Promotion mix refers to the combination of different kinds of promotional tools used by an organization to advertise and sell its products. + Gary Armstrong defines a promotion mix as, ’A company’s promotional mix includes advertising, personal selling, sales promotion, public relations, direct marketing. It also includes product design, shape, package, colour, label, etc,, as all these communicate something to buy." + Business organizations cannot depend upon a single promotion tool; they have to make use of all the promotional tools in different degrees depending upon the nature of the product, the nature of customers, and competitors iby = important Point Some elements of the promotion mix are explained in detail below: 1. Advertisement: + Advertising is a form of nonpersonal promotion. It is when companies pay to promote i goods, or services in a variety of media outlets. It can be found everywhere. + With advertising, a company engages in a one-way communication to the p ton, customer. 2. Trade / Sales Promotion: + Trade/Sales promotion basicelly represents all marketi 150, personal selling, advertising, and public relations. + Sales promotions are used to stimulate p les and the objectives are to increase sales, inform potential customers products, and create a positive business or corporate image. Examples: coupons, product sal int-of-purchase display + Wholesalers rely excessively on trade promotion to achieve their promotion-mix objectives. 3, Personal selling: + The art of personal selling is defined by D.D. Couch as, “science of creating In the mind of your prospect a desire that only possession of your product will satisfy” » Persenal:-sellina is an arts well os science.+ Asan art, it requires the proper amount of patience, practice, and use of correct methods, devices, and skills. 4, Direct marketing: + Direct marketing is targeted towards a group of prospects and customers rather than a mass audience. + The goal of direct marketing is to generate sales and leads for sales representatives to pursue. + It allows a business to engage in one-way communication with its customers about product announcements, special promotions, bulletins, customer inquiries, and order confirmations. Therefore, the wholesalers rely on trade promotion to achieve their promotion-mix objectives. ¢ Cee gee LY pent! eae AS Tae CM cums tele Lied) acai Betz Download App MCQ Question 10: View this Question Online> Which one is/are wrong in the following statements? 1. The seller should understand the psychology of the consumer, is an essential element of a successful sale \ 2. Selling is a mental process 3. Selling is performed in the mind of consumer, not in the shop 4. Articles are sold on merits, not on price 5. Allof these Answer (Detailed Solution Below) Option 2 : Selling is a mental process ‘Sales Management MCQ Question 10 Detailed SolutionThe incorrect statement is Selling is a mental process. © Key Points ow Selling in its broad sense, is not only the making of sales, that is, a ; but also is identifying prospective consumers, stimulating demands, and tion and service to buyers. + Selling refers to creating products and selling + Itrevolves around the needs and interests of + Itis only an integrated part of the marketin products first and then sell them concemed about customer sctist + It views the customer as + link in business. + Selling seeks to conver s into cash. + Inselling, sell is the pris: ve and it Is more internal company oriented, It is based on an inside-out perspective + Fora successful sale, the seller should understand the psychology of the consumer. »* Important Points + Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. + Thus we can conclude that marketing involves a mental process. s its only focus is to manufacture itis sales volume-oriented not much,