SDM PREVIOUS YEAR QUESTION

Discuss the operational decisions of Sales Management. Explain it in the

context of any company

Operational decisions of sales management are short-term choices that are

typically made on a weekly, daily, or hourly basis. They are primarily
concerned with the execution of the sales strategy and the day-to-day operations
of the sales team.

Some examples of operational decisions of sales management include:

 Lead qualification: Deciding which leads are most likely to convert into
customers and should be prioritized by the sales team.
 Lead routing: Assigning leads to specific sales reps or teams based on
their territory, industry, or other factors.
 Territory planning: Dividing the sales market into different territories and
assigning each territory to a sales rep or team.
 Sales forecasting: Predicting future sales based on historical data, market
trends, and other factors.
 Sales pipeline management: Tracking the progress of leads through the
sales funnel and identifying opportunities to improve the conversion rate.
 Sales activity management: Tracking and analyzing the sales team's
activities, such as the number of calls made, emails sent, and
appointments scheduled.
 Sales performance management: Setting sales goals for the sales team and
tracking their performance against those goals.
 Sales compensation: Developing and implementing a sales compensation
plan that motivates the sales team to achieve their goals.
 Sales training: Providing sales reps with the training and resources they
need to be successful.

Example in the context of a company:

A software company called Acme Corporation has a sales team of 10 reps who
sell to businesses of all sizes. The sales manager at Acme Corporation is
responsible for making a number of operational decisions on a daily basis, such
as:
  Lead qualification: The sales manager reviews all incoming leads and
decides which ones should be routed to the sales team. He prioritizes
leads based on the company size, industry, and budget.
 Lead routing: The sales manager assigns leads to specific sales reps based
on their territory, industry, and experience.
 Territory planning: The sales manager has divided the US market into 10
different territories, each of which is assigned to a sales rep.
 Sales forecasting: The sales manager uses historical data and market
trends to forecast future sales. He then uses this forecast to set sales goals
for the team.
 Sales pipeline management: The sales manager uses a CRM system to
track the progress of leads through the sales funnel. He also reviews this
data on a weekly basis to identify opportunities to improve the conversion
rate.
 Sales activity management: The sales manager uses a sales performance
management tool to track the sales team's activities. He uses this data to
identify areas where reps need additional training or support.
 Sales performance management: The sales manager sets sales goals for
each rep and team. He then tracks their performance against those goals
and provides feedback and coaching on a regular basis.
 Sales compensation: The sales manager has developed a sales
compensation plan that rewards reps for both closing deals and generating
new leads.
 Sales training: The sales manager provides sales reps with training on the
company's products, sales process, and CRM system. He also offers
ongoing coaching and support.

By making sound operational decisions, the sales manager at Acme Corporation

is helping the sales team to achieve their goals and contribute to the company's
overall success.

Discuss the operational decisions in channel Management. Explain it in the

context of any company

Operational decisions in channel management are the short-term choices that

companies make to manage their distribution channels effectively. These
decisions typically involve managing the day-to-day activities of channel
members, such as inventory levels, pricing, promotions, and customer service.
Some examples of operational decisions in channel management include:

 Channel member selection: Choosing the right channel members to

distribute the company's products or services.
 Channel member training: Providing channel members with the training
and resources they need to be successful.
 Channel member motivation: Developing and implementing programs to
motivate channel members to achieve their sales goals.
 Channel conflict management: Resolving conflicts that may arise
between channel members or between the company and its channel
members.
 Channel performance evaluation: Measuring and evaluating the
performance of channel members.
 Channel management reporting: Developing and reporting on channel
performance metrics.

Example in the context of a company:

A consumer electronics company called Sony has a complex distribution

channel that includes a variety of different types of channel members, such as
retailers, wholesalers, and e-commerce companies. Sony's channel management
team is responsible for making a number of operational decisions on a daily
basis, such as:

 Channel member selection: Sony's channel management team carefully

selects channel members based on their ability to reach Sony's target
market, their reputation, and their financial strength.
 Channel member training: Sony provides channel members with
extensive training on its products, sales process, and marketing programs.
 Channel member motivation: Sony has developed a number of programs
to motivate channel members to achieve their sales goals, such as co-op
marketing programs and performance bonuses.
 Channel conflict management: Sony's channel management team works
closely with channel members to resolve any conflicts that may arise. For
example, if two retailers are competing for the same sale, Sony's channel
management team may work with them to develop a mutually beneficial
solution.
  Channel performance evaluation: Sony's channel management team uses
a variety of metrics to evaluate the performance of channel members,
such as sales volume, market share, and customer satisfaction.
 Channel management reporting: Sony's channel management team
develops and reports on a variety of channel performance metrics to
senior management. This information is used to make decisions about
channel strategy and investments.

By making sound operational decisions, Sony's channel management team is

helping the company to achieve its sales goals and reach its target market.