Sales Management Notes
5 & 10 Marks Questions
1) With Suitable Examples Explain the different Types of Selling Approaches?
a) Soft Sell :- A soft sell approach is when you interact with the customer without
pressuring them to purchase anything outright. You answer their questions, make
recommendations and provide additional information that you think may entice the
customer, but you ultimately leave the decision-making up to the customer.
b) Hard Sell :- A hard sell approach is a more persistent approach where you pursue
the customer to purchase immediately or make them feel they can't purchase at
another time.
c) Consultative selling : is usually a business-to-business sales technique, and it
relies on the salesperson building a relationship with the customer. As the
salesperson, you are an expert in the product that you are selling, and you present
yourself as a trusted consultant to your client's business.
d) Solution selling is when you identify the problems your customer is trying to solve
and determine which of your products can provide a solution. This selling
approach lets the customer's needs guide you when directing the customer to a
product or completing the sale.
e) Network Selling :- The networking approach to sales is when you cultivate a large
group of professional and social acquaintances that you can go to for a steady
influx of leads. You are using the networking approach if you get most of your
sales from this group.
• Selling to Friends
• Family
• Classmates
• Co Workers
• Customers.
f) Conceptual selling is an approach based on the idea that customers want to buy a
concept more than they want to buy a product. This means that as the salesperson,
you can determine the concept the customer already has of the product and market
to that idea.
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2) Develop a Job Description for job of Sales Executive to Sell Software ?
Sales Executive Job responsibilities include:
• Conducting market research to identify selling possibilities and evaluate
customer needs
• Actively seeking out new sales opportunities through cold calling, networking
and social media
• Setting up meetings with potential clients and listening to their wishes and
concerns
Job brief
We are looking for a competitive and trustworthy Sales Executive to help us
build up our business activities.
Sales Executive responsibilities include discovering and pursuing new sales
prospects, negotiating deals and maintaining customer satisfaction.
Responsibilities
• Conduct market research to identify selling possibilities and evaluate customer
needs
• Actively seek out new sales opportunities through cold calling, networking and
social media
• Set up meetings with potential clients and listen to their wishes and concerns
• Prepare and deliver appropriate presentations on products and services
• Create frequent reviews and reports with sales and financial data
• Ensure the availability of stock for sales and demonstrations
• Participate on behalf of the company in exhibitions or conferences
Requirements and skills
• Proven experience as a Sales Executive or relevant role
• Proficiency in English
• Excellent knowledge of MS Office
• Hands-on experience with CRM software is a plus
• Thorough understanding of marketing and negotiating techniques
• Fast learner and passion for sales
• Self-motivated with a results-driven approach.
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3) Explain Buying Formula for Theory of Selling?
a) The buying formula is schematic representation of a group of responses, arranged in
psychological sequence. The buying formula theory emphasizes the prospect’s
responses (which, of course, are strongly influenced by internal factors) and
deemphasizes the external factors, on the assumption that the salesperson, being
naturally conscious of the external factors, will not overlook them. Since the
salesperson’s normal inclination is to neglect the internal factors, the formula is a
convenient way to help the salesperson remember.
In purchasing, then, the element “solution” involves two parts: (1) product
(and/or service) and (2) trade name (name of manufacturer, company, or sales-
person).
In buying anything, the purchaser proceeds mentally from need or problem to
product or service, to trade name, to purchase, and, upon using the product or
service, he or she experiences has been established, the buying formula is:
Some products and services that are quite adequate are not liked, and some
things are liked and bought that are admittedly not as good as competing items.
Similar reasoning applier trade names Some sources of supply are both
adequate and liked, others are adequate but not liked, still others are liked but
patronized even though they are inadequate compared to competing sources.
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With adequately and pleasant feelings included, the buying formula becomes
When a buying habit is being established, the buyer must know why the
product or service is an adequate solution to need or problem, and why the
trade name is the best one to buy. The buyers also must have a pleasant feeling
toward the product or service and the trade name.
4) Why Motivation is Needed for Sales Person ?
On an average, only a few prospects out of hundred actually become clients.
But because there are sales targets for your sales staff, they have to keep
approaching new customers so that they can achieve sales targets. Because of
this unsure and hectic life of sales, where performance is completely
measurable against results, your sales staff requires sales motivation from time
to time.
One core method used for motivation of any kind is “Recognition, Rewards
and remuneration”.
Why Motivation :-
1. To keep the spirits up
2. For the growth of the company and to achieve targets
3. To show importance of sales in the organization
4. To make them brave
5. To improve co ordination within the team
6. To develop their skills
7. To reach more customers and cover more territory
8. To introduce a new product in the market
9. To maintain a sales pipeline
[Link] retain employees and reduce attrition
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5) Explain Detail A-C-M-E-E Decision of Training ?
a) ACMEE Approach: This acronym highlights the following aspects of
T&D: Aim, Contents, Methods, Execution and Evaluation. ACMEE's approach
is derived from the poem "I keep six honest serving men.
[Link] Approach: This acronym highlights the following aspects of
ACMEE's approach is derived from the poem "I keep six honest serving
men. Their names are WHAT and WHY and WHEN and HOW and
WHERE and WHO."
AIM: Training is not for training's sake. It must have some purpose or objective.
By and large, in regards to sales force; task description analysis is more relevant
to the training needs of sales persons
Content: Derived out of specific aim, is obtained by analysing the training
needs of sales persons. These are determined by analysing (1) Job
specification and description (2) Individual sales personnel background and
experience and (3) Sales-related marketing policies.
Contents of training programme also vary with the type of training such as (a)
Initial Training or
(b) Continuing Training.
Method: There are a number of training methods. However, proper selection of
method is essential to yield desired result. Secondly method must suit the
training content selected in the previous section.
Execution: Identifying trainees is difficult in "continuing training programme"
compared to "initial training" where almost all are selected.
Initial Training: This is carried out by Sales Executive (Line Manager) and
Personnel Manager (Staff Manager).
Continuing Training: This is carried out by top Sales Executive (Line
Function). He is in a better position to understand the performance, shortfall
and deficiency of his subordinates.
Timing of training also depends on method of training. Some firms organise
training at corporate headquarters whereas others do it in the field office.
Evaluation: Evaluation of sales training programme is an important step to
check whether the result obtained is commensurate with efforts in terms of
money and time. Such feedback assists the control mechanism to correct the
deficiencies so that laid down objectives (aims) are achieved in full.
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6) Discuss the Relevance Herzberg’s two Factor theory in Sales Force Motivation?
a) Herzberg’s theory broke down workplace needs into two categories:
motivation factors that give employees a sense of satisfaction and hygiene
factors that determine the basic level of stability and job security.3
Here’s a list of some of the primary hygiene factors (also known as
maintenance factors) according to Herzberg:
• Pay: Low pay will quickly cause dissatisfaction among employees.
Employees should be adequately compensated in order to keep
dissatisfaction down.
• Benefits: Fringe benefits are expected by most full-time employees
and therefore fall into the category of hygiene. An employer should
ensure that the benefits they provide are competitive with what other
companies are providing in their industry.
• Job security: When employees feel like they are secure in their
positions, it’s much less likely they will feel a sense of dissatisfaction
at work. Employers looking to improve workplace hygiene should let
employees know they are valued and that their jobs are safe.
• Work conditions: Safe and comfortable working conditions are a basic
need that employees require from their employers. In order to maintain
high hygiene, employers shouldn’t cut corners when it comes to the
welfare and safety of employees.
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What Are Motivational Factors?
• Recognition
• Autonomy
• Meaningful work
Herzberg’s Two-Factor Theory to Boost Worker Productivity
Give employees more autonomy: - The more that employees feel that they are
responsible and autonomous, the greater the sense of achievement they will
feel in their work.
Provide feedback. It’s important to let employees know how they’re doing by
providing meaningful and constructive feedback
Improve working conditions. One of the simplest ways to improve work
hygiene is by providing a clean, safe, and aesthetically pleasing workspace.
Safety is an obvious necessity, but sometimes the design of an office can get
short shrift from employers.
Poll employees. A good way to get a sense of what motivates employees is
to conduct a poll. Checking in with a team will give managers a sense of
areas they need to improve upon and what sorts of job factors they favour
over others.
Take a macro view of employee welfare. Herzberg’s two-factor theory holds
that employers cannot choose between motivation or hygiene but instead
must strive to improve both.
7) Examine Different Forecasting Method ?
a) Sales forecasting is the process of estimating future revenue by predicting the
amount of product or services a sales unit (which can be an individual
salesperson, a sales team, or a company) will sell in the next week, month,
quarter, or year.
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Technique Use
1. Straight line Constant growth rate
2. Moving average Repeated forecasts
3. Simple linear
Compare one independent with one dependent variable
regression
4. Multiple linear Compare more than one independent variable with one
regression dependent variable
1) Straight-line Method
The straight-line method is one of the simplest and easy-to-follow forecasting
methods. A financial analyst uses historical figures and trends to predict future
revenue growth.
In the example provided below, we will look at how straight-line forecasting is
done by a retail business that assumes a constant sales growth rate of 4% for
the next five years.
2) Moving Average
Moving averages are a smoothing technique that looks at the underlying
pattern of a set of data to establish an estimate of future values. The most
common types are the 3-month and 5-month moving averages.
3) Simple Linear Regression
Regression analysis is a widely used tool for analysing the relationship
between variables for prediction purposes. In this example, we will look at the
relationship between radio ads and revenue by running a regression analysis on
the two variables.
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4) Multiple Linear Regression
A company uses multiple linear regression to forecast revenues when two or
more independent variables are required for a projection. In the example
below, we run a regression on promotion cost, advertising cost, and revenue to
identify the relationships between these variables.
8) Examine Non-Financial Compensation that Companies Offer ?(Explain them for
10 Marks)
a) Flexible working.
b) Give employees time to work on their own projects.
c) Extra leave.
d) Allow time to do volunteer work.
e) One-on-one meetings.
f) Give employees chance to show appreciation for each other.
g) Reward employees with more responsibility.
h) Recognise your employees on social media.
9) What are Qualitative and Quantitative Objectives of Sales Person ?
To point out some qualitative objectives Sales Person,
a) To search out new customers.
b) To build up buyer preference.
c) To contact customers and take orders.
d) To constitute immediate and interactive relationships with buyers.
e) To cultivate a cordial relationship with customers and a sense of their
obligation.
f) To inform customers of changes in product lines and marketing strategies.
g) To assist customers in making choices.
h) To provide technical knowledge and advice with respect to technical
products.
i) To assist middlemen’s sales personnel in managing sales problems.
j) To prepare a market report and send it to the company.
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Quantitative Objectives
• To capture and retain the market of specified product/product line,
• To maximize profitability on the company’s products,
• To obtain new customer accounts,
• To help control personal-selling expenses,
• To secure target sales of certain product lines.
10) Explain Trends in Sales Management ?
Creativity is the new sales hack
Implement sales automation :- Implement value-based selling It sounds
counterintuitive, but the best tip for boosting sales in 2022 is to
stop trying to sell! Gone are the days when you could shove an offer into a
prospect’s face and expect them to accept it just because it’s ‘an offer they
can’t refuse’. In 2022, customers are sick and tired of being treated like
cash cows, especially in the B2B world.
Social selling is essential :- The rise in social selling further proves ‘obvious
selling’ is dying out. If you want to increase sales, you should be delicate
and unintrusive. Social selling as a concept has been in heavy rotation for a
couple of years now.
Customer success over customer support :- Another way to convince
customers to make a purchasing decision is by persuading them that you’re
genuinely interested in their business success. Instead of focusing on
outstanding customer support, you should prioritise providing a more
positive, holistic customer experience
Bring your teams closer together :- Sales is no longer just about the Sales
team. The customer journey has moved into the digital plane, and all
departments have a step in the path to conversion. Customer Support
provides support to customers, the IT guys keep an eye on the website and
other channels of communication, the sales team manages the sales pipeline
and customer relationships, and Marketing - well, they do the rest of it!
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Multi-channel, personalised experiences :- The year 2021 proved that buying
and selling processes are transitioning into the world of digital at the speed
of light. A large percentage of the buyer’s journey is now independent due
to the ready-availability of huge amounts of information to them.
Video for sales :- An image is worth a thousand words. The standard for
videos is 24 frames per second, so you can imagine how much information
a short video clip can communicate! International lockdowns have sent the
world into a global video-craze: Zoom, Google Meet, Microsoft Teams,
YouTube, Netflix, and Hulu. Images flash in front of our eyes faster than
ever, and we’re getting used to it.
Webinars and podcasts for lead generation :- Having spent the most part of
the year in a lockdown, a lot of people used the time to better themselves.
Webinars and podcasts, as a format, have seen such an immense rise in
popularity in 2021. In 2022, despite the belief that the webinar hype had
faded out, this trend is expected to grow.
Artificial Intelligence (AI) is taking over :- You can’t ignore the importance
of forecasting and analysis in the sales process. To some extent, it can be
considered the backbone of sales. Sales teams must conduct a thorough
analysis of metrics to justify the choice of their strategies and assess their
current performance.
11) Explain Types of Personal Selling ?
a) Transaction Selling
Transaction selling works well with simple, commodity products. Since the
product is generally available from multiple sources and is indistinguishable
from competitive products, the sale is made on price and availability
b) Relationship Selling
Relationship selling usually involves simple or moderately complex products.
Often the deals involve larger unit volumes or greater revenue. In a relationship
selling model, the salesperson develops professional relationships with buyers at
their target customers.
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c) Solution Selling
Solution selling, as the name implies, solves a customer’s business problem. It
often involves creating a complex solution that incorporates products, services
and technology. The focus of solution selling is on business needs. The buyer’s
decision criteria are based on value. Usually, in solution selling, the salesperson
has developed intimate knowledge and understanding of the customer’s
environment, industry and business.
d) Partnership Selling
In a partnership selling arrangement, the seller becomes an important part of the
customer’s team. The salesperson is selling a complex solution that is integral to
a customer’s success. An example of a sales partnership may be the sale of GE
jet engines to Boeing. The success of both GE Aircraft Engines and Boeing
depends on the engines fitting on and working perfectly with the Boeing
airframe.
12) Explain Importance of Sales Motivation ?
The importance of motivation in sales
• A company’s revenues are earned through sales. And sales can be
increased by motivating employees.
• Given this relationship, motivation is an essential element for the growth
of any organization.
• Despite the fact that sales is the foundation of a business, it’s common to
see unmotivated and unengaged teams that fail to meet their goals and
perform poorly.
• But why does this happen? It happens because the average salesperson is
stressed and constantly facing obstacles and rejections. Over time, these
factors lead to reduced performance and sales.
• So, how do you keep your team motivated? There are a number of tips
that can help, as we’ll explore below.
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• However, one issue that must be taken into consideration is the individual
salesperson’s personality. Each person has a specific way of being, which
means that what motivates one individual won’t have the same effect on
another individual. Therefore, you must understand what drives each
salesperson, professionally and personally.
13) Explain Different Types of Sales Organization ?
The line sales organization:
• This is the oldest type used in smaller firms and in firms where there is a
small selling force. This limitation restricts them to narrow product line
in limited geographical area.
• All executives have line authority and each subordinate is responsible
only to one higherup.
• They have fixed responsibilities and sales personnel reports directly to
the chief sales executive
• Lines of authority and responsibility are clear and logical, and it is
difficult for individuals to shift or evade responsibilities
The line and staff sales organization
• Found in large and medium sized firms selling diversified product lines
over a wide geographical area
• Provides the top sales executive with a group of specialists and experts
in dealer and distributors relations, sales analysis , sales organization,
sales personnel, sales planning, sales promotion, sales training, service,
traffic and warehousing
• Staff sales executives do not have authority to issue orders or directives.
• Staff recommendations are submitted to the top sales executives and
after approval, transmit necessary instructions to the line organization
• Gives time to the staff executives time to study problems before
recommendations
Functional sales organization
• Based upon the concept that each individual in an organization,
executive and employee, should have as few distinct duties as possible
• Salespeople receive instructions from several executives but on different
aspects of their work
• All specialists have line authority and they have a function authority
• There is a great improved performance
• Not feasible for small and medium sized firms
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Committee sales organization
• The executive group plans policy formulation while implementation of
plans and policies is done by individual executives
• Many firms have a sales training committee
• Before policies are made and action is taken, important problems are
deliberated by committee members and are measured against varied
viewpoints.
Divisional Structures
This is the kind of structure that is based on the different divisions in the
organization.
A sales organisation may be classified on the basis of product, market or
customer territory, product cum territory and function. They are
1. Product type
2. Market or customer type
3. Territorial type
4. Product-cum-territorial type
5. Functional type
14) Explain Importance of Sales Quota?
a) Sales goals / objectives set by the organization for its marketing units for a
specified period of time. Sales quotas could be set on sales volume in number of
units, sales volume in rupees, profitability, selling expenses, customer satisfaction
index etc.
Marketing units could be a region, a territory, a branch, a salesperson, a
distributor or a dealer.
Sales quotas serve the following purposes.
(a) Making available performance standards
(b) Controlling performance
(c) Motivating the salesforce
(d) Identifying the strengths & weaknesses
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Sales quota is Important Because it provides Following Information :-
1) Clarity
When you are working with the sales team, it’s very important to have clarity.
Sales quotas help you eliminate the confusion and work easily with more
clarity.
2. Challenge
They help you to open your mind and think of the larger impact that you can
create.
3. Commitment
It is very important to be committed to your goals. You cant achieve them
unless you put your hard work and dedication to it. Sales quotas do make you
committed.
4 Hurdles
It is obvious to have hurdles and bottlenecks when you are working with sales.
But sales quotas let you acknowledge your hurdles in the sales pipeline.
15) Explain AIDA’S Model with the help of Examples?
AIDA model is a blueprint that marketing, advertising and sales functions use
to target all touchpoints during a customer’s purchase journey, that is, from
getting to know about the product to finally buying it.
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The consumer journey is analysed by breaking it into four fundamental stages.
a) Awareness
b) Interest
c) Desire
d) Action
Awareness
The first impression can be the last impression. In the first stage, a consumer
comes across the Brand. This can be through an advertisement or word-of-
mouth or a kiosk displaying products and more popularly these days, through
sponsored content.
Example: A food delivery app targeting the youth should invest in being highly
active online on social media than on print ads.
Interest
Undoubtedly, the most crucial of the stages. If the consumer feels the product
has no meaning for him or if he does not find it captivating enough, he will
never reach the purchase stage. So it is important to deliver your product
message in a customized and crisp way that suits the profile of the intended
audience.
For example, let’s consider this campaign by Adidas Notice the caption ‘Every
team needs the spark’.
Lionel Messi’s picture initially attracts the consumer, the intended audience
being sports (especially football) enthusiasts.
Desire
It is not enough to generate interest. A keen liking for how a brand presents
itself may be highly appreciated, but may not necessarily convert in sales.
Interest and Desire can be achieved simultaneously. So immediately after
interest is generated, it is important to convey to the audience why they need it.
If a customer might not actually NEED that product, the brand can try to create
the WANT for it.
For example, Wendy’s “Where’s the beef” campaign, highlights the fact that
their hamburgers contain more beef than those of the competitors.
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Action
Finally, when the consumer has had a positive disposition towards the brand,
he/she will be willing to try it or buy it. At this stage, schemes like early-bird
discounts, free trials, one-on-one offers, referral systems, etc. can give that one
final push to the consumer to go ahead and buy it.
For example, Amazon encourages purchases through its ‘EMI options’. That
enables consumers to buy durables and gadgets even when they’re running on
a tight budget.
16) Ethics is an Important Part of Sustainable selling? Explain
Developing a code of ethics
Developing a code of ethics for your business helps build a culture of ethical
selling. Your code of ethics might simply be a statement of principles defining
the way you operate, make decisions and treat your customers, suppliers and
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industry peers. For example, your code of ethics might include statements such
as:
• We recognise that what we do is more important than what we say.
• We give our customers and suppliers honest, accurate information.
• We make sure our customers' purchasing decisions are based on their
preference, not our pressure.
• We sell our customers' products today that will encourage them to return
to us tomorrow.
Your code of conduct can include the following information:
• overview – outlining why you have created the document and what it
will do
• statement of business values – including your code of ethics
• ethical conduct sections
o soliciting customers – identifying appropriate steps for finding
and approaching customers
o communicating with customers –
stating communication principles that will guide your business's
range of interactions with customers and industry
o pricing – identifying ethical approaches to product pricing
o handling complaints and conflicts – listing the principles that
support your complaints handling policy and principles for
resolving conflicts
o lay-by agreements – stating terms for lay-by agreements with
customers
o selling methods – setting out appropriate selling steps and
methods
o bills and accounts – stating your commitment to providing proof
of transactions
o warranties, refunds and repairs – identifying product or service
guarantees you make to your customers
• procedures for identifying and responding to code of conduct breaches
• additional information – listing contacts and sources for more
information.
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17) What is Prospecting ? Importance of Prospecting? Identify Some Source of
Prospecting ?
• The term ‘prospecting’ relates to locating and qualifying new customers.
Prospecting is necessary because –
• . Finding customers is a business compulsion for a new and existing
Product,
• ii. There is a decline in the existing customer base as customers are
taken away by competitors
Prospects can be generated from many sources and some of the common
sources and ways of identifying prospects are discussed below:
1. Present Customers:
Existing customers are the best source of prospecting. Present customers can
be a good source of information about the names and whereabouts of their
acquaintances, relatives, neighbourhoods, etc., who can be capable prospects.
2. Former Customers: The database of a company can provide sufficient
information about the whereabouts of their former customers. They can be
traced, approached, and reasoned for their departure.
3. Centre of Influence Approach:
This method is based on obtaining the names and identities of prospects from
people who are well-known in a society or hold responsible positions in
organizations, civic or local administration or have high social recognitions
due to extraordinary accomplishments.
4. Personal Contact Method:
By interacting with friends, relatives, neighbours or acquaintances in seminars,
conferences, social programmes, travelling, etc., a salesperson may develop
plenty of opportunities to identify prospects.
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[Link] Mail or Telephonic Contacts:
By using telephone directories or yellow pages, salespeople can personally
contact prospective buyers. They can also send letters along with product or
service leaflets or booklets to the prospective buyers.
6. Media: Many organizations advertise their requirements in newspapers
or local television networks. These become a source of information for
the customers.
7. Intermediaries:
Intermediaries include distributors, retailers or agents who work directly with
customers, and can exchange valuable information about prospects to the sales-
people.
18) Apply Maslow’s Theory of Motivation to Selling Job ?
The Hierarchy of Needs is as follows:
1. Physiological Needs (basic issues of survival in Sales Job)
2. Security Needs (stable physical and emotional environment issues such as
benefits, pension, safe work environment, and fair work practices)
3. “Belongingness” Needs (social acceptance issues such as friendship or
cooperation in the Sales)
4. Esteem Needs (positive self-image and respect and recognition issues such
as job titles, nice work spaces, and prestigious job assignments.)
5. Self-Actualization Needs (achievement issues such as workplace autonomy,
challenging work, and subject matter expert status on the job)
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19) What are the Different Methods of Sales Quota ? (10 Marks Imp)
Activity Quota
An activity quota requires salespeople — usually BDRs or SDRs — to
complete a set number of activities during a period of time, usually one month
or quarter. Activities usually include phone calls, follow-up emails, scheduling
meetings, and leading demos.
Activity Sales Quota Example
Sales rep Sanjay has a quota of 45 phone calls per month, 84 follow-up emails,
and 12 demos each month.
Volume Quota
Sales reps with volume-based quotas are goaled on the number of units they
sell or the total revenue they generate during a specific time period. They're
incentivized to sell as many units as they can.
Volume Sales Quota Example
Vishal , with VMM Skates, has a quota to sell 75 pairs of skates each month.
He must sell at least 75 pairs to meet his quota.
Profit Quota
This type of quota is based on the gross profit or margin of a dedicated sales
team, product/service grouping, or salesperson.
If you’re held to a gross margin quota, your number would be calculated by
subtracting the cost of goods you sell from the overall revenue.
Profit Sales Quota Example
Jyoti sells skates to professional skaters. He sells fewer skates at a higher cost
than his sales colleague Vishal , who sells a larger volume of cheaper skates to
recreational skating rinks. Jonathan and Antoni would both have profit quotas
of different amounts.
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Combination Quota
Some salespeople may have more than one quota. A combination quota might
include an activity quota and a profit quota. A combination strategy gives reps
a roadmap to success and provides smaller milestones to make their quota
more easily attainable.
Combination Sales Quota Example
Jyoti quota includes several activity quotas and a profit quota. He must make
50 calls every month, lead 15 skate demos, and close $2,500 worth of business
adjusted for selling expenses and the cost of the skates.
Forecast Quota
Forecast quotas are generally assigned to specific sales territories or teams. A
forecast quota is calculated based on the historical performance of a region and
the revenue goal it must hit.
Forecast Sales Quota Example
Let's say Jyoti is the pacific northwest territory rep for R2C Skates and
traditionally closes $7,500 in sales during Q4. If her goal is to increase Q4
revenue by 25% this year, her quota would be $9,400 for the quarter.
Revenue Sales Quota
A simple way to set sales quotas is to use revenue as the goal. That means each
salesperson will be responsible for bringing in a specific amount of revenue
each month or quarter.
Revenue Sales Quota Example
Jyoti is responsible for meeting a revenue sales quota of $2,500 per month.
Based on historical data, She knows that She needs to sell about 75 $33 skates
to meet quota. However, if her sales manager breaks the revenue goal down by
product, Jyoti can have more flexibility by selling fewer, more expensive
skates or targeting low-hanging fruit by selling a larger number of less
expensive ones.
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20) Design a Sale Contest ? 50 People Under Sales Manager (10 Marks Imp)
As a sales manager, you must ensure your team reaches their sales targets. At
the same time, you also have to maintain a proper work environment. After all,
you can’t turn the office into a zoo. Hence, your sales contests must do three
things:
• Your sales contest ideas need to be fun so that your team participates
enthusiastically, not out of obligation.
• Employ sales contests that respect the workplace environment; no
paintball games, for instance.
• The contests must boost sales.
How do you achieve all this? That’s what we’re here to discuss. First, I’ll tell
you how you can make your own sales contest. Second, I’ll give you ten sales
contest ideas that you can motivate your team with, starting tomorrow!
How to design a sales contest?
You have to keep a few things in mind when designing a contest. First and
foremost, remember that the goal is to create healthy competition, not a toxic
situation.
Secondly, remember that your employees are individuals, each with unique
talents. So, try to reward them based on their respective efforts, instead of just
the final outcome. I’ll elaborate on this shortly.
1. Actions over outcomes
2. Public recognition
3. Avoid always using contests with first-place winners
If you were ever the kid in P.E. who always got picked last, you’re already
familiar with what this means.
4. Get people fired up
Sure, getting paid at the end of the month can excite any employee, but what
about the rest of their time? As a leader, it’s your duty to provide incentives
that will not only drive sales up, but also engage your employees in a way that
makes them wake up every day and anticipate going to work and putting their
best performance in.
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These Key Points Should be Considered for Sales Contest
1. Salesperson of the Day
2. Salesperson of the Month
3. Conversion Contest
4. Upsell Contest
5. Retention Contest
6. Customer Reviews
7. Sales Bingo
8. Most No's
9. Best Pitch
[Link] Bracket
21) Sales Territory Design ?
a) A sales territory is defined as a group of present and potential customers
assigned to an individual salesperson, a group of salespersons, a branch, a
dealer, a distributor, or a marketing organization at a given period of time.
Design Sales Territory
• Decide basic territories by using build-up method or break-down method
• Basic territories setup by building up from the control units. Objective is
to equalize the workload of sales personnel.
• Factors considered in build up method are call frequencies, total number
of calls in each control unit, workload capacity of sales persons.
• Designing a sales territory is one the most difficult jobs for sales
managers.
• Various factors like
• the size of an organization
• level of competition in each product category
• number and quality level of products in the portfolio
• type and quality of the services and customer support to be provided
the quality of the salesperson serving in the organization are considered while
designing sales territories
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By Vishal M Global Business School Hubli
One Marks Questions
1) what do you mean by adequacy of trade name ?
a) Trading area adequacy is the ability of a trading area to support
proposed and the existing retail operations. The support capability
may be viewed in a “Gross” as well as “Net” form.
2) What is hot lead ?
a) A hot lead is a qualified lead who is highly interested in your product,
and is ready for direct contact asking for the sale.
3) what is role of conflict in sales ?
a) One of the leading causes of conflict between sales and marketing
teams is role confusion. To prevent this issue, you'll need to redefine
roles and make sure each department understands what their
responsibilities are. Outline what your expectations are for each role.
4) what is market potential ?
a) Market potential is an estimate of the amount of money your clients can
expect to make from the product or service they plan to market. Their
estimate will only be as good as the information they use and the
assumptions they make.
5) Different forecasting method in sales
(1) straight-line, (2) moving average, (3) simple linear regression, and (4)
multiple linear regression.
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By Vishal M Global Business School Hubli
6) what is line and staff position in sales ?
a) A "line function" is one that directly advances an organization in its
core work. This always includes production and sales, and sometimes
marketing. A "staff function" supports the organization with
specialized advisory and support functions.
7) what is expense to sales ratio ?
a) Expense ratio (expense to sales ratio) is computed to show the
relationship between an individual expense or group of expenses and
sales. It is computed by dividing a particular expense or group of
expenses by net sales.
8) what is staff turnover ?
a) Employee turnover refers to the total number of workers who leave a
company over a certain time period.
9) Define sales management ?
a) Sales management is the process of hiring, training and motivating
sales staff, coordinating operations across the sales department and
implementing a cohesive sales strategy that drives business revenues.
10) What are different types of presentation ?
• Motivational Presentations.
• Decision-making Presentations.
• Progress Presentations.
11) What are rational objections ?
a) A rational objection can be translated like this: “I don't want to do
something (e.g. make an appointment, make a commitment, purchase
something) with you.”
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12) Sales presentation :- sales presentation or sales pitch is a line of talk that
attempts to persuade someone or something, with a planned sales
presentation strategy of a product or service designed to initiate and close
a sale of the product or service.
13) Sales job analysis :- Responsibilities. Present, promote and sell
products/services using solid arguments to existing and prospective
customers. Perform cost-benefit and needs analysis of existing/potential
customers to meet their needs. Establish, develop and maintain positive
business and customer relationships.
14) Sales budget :- A sales budget is a financial plan that estimates a
company's total revenue in a specific time period. It focuses on two
things—the number of products sold and the price at which they are
sold—to predict how the company will perform.
15) Interpersonal communication :- Interpersonal communication is an
exchange of information between two or more people. It is also an area of
research that seeks to understand how humans use verbal and nonverbal
cues to accomplish a number of personal and relational goals.
16) Sales display :- Sales displays represent an important component in the
everyday sale of goods. Because only the correct and appealing
presentation leads to potential customers being interested in a product and
ultimately choosing it.
17) Negotiation process :- Negotiation is a method by which people settle
differences. It is a process by which compromise or agreement is reached
while avoiding argument and dispute.
18) Door to door selling :- Door-to-door sales (or D2D) is a direct selling
method, a canvassing technique that is commonly used for sales,
marketing, advertising, and campaigning. In D2D, sales reps visit
potential customers in their homes and convince them to buy products or
services.
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By Vishal M Global Business School Hubli
19) Salesman :- A salesman is a man whose job is to sell products or
services. The plural of salesman is salesmen. The equivalent term for a
woman is saleswoman.
20) Transaction analysis :- Transactional analysis is a psychoanalytic theory
and method of therapy wherein social interactions are analysed to
determine the ego state of the communicator as a basis for understanding
behaviour.
21) Territory planning :- Territory planning is simply the process of
creating a workable plan for targeting the right customers, establishing
goals for income and ensuring sales growth over time.
22) Personal selling :- Personal selling is also known as face-to-face selling
in which one person who is the salesman tries to convince the customer
in buying a product. It is a promotional method by which the salesperson
uses his or her skills and abilities in an attempt to make a sale.
23) Inside selling :- The term 'inside selling' refers to the sale of products or
services by staff who get hold of customers by phone or online as
opposed to meeting them in person. Inside sales relies on the phone,
email and the Internet to reach customers and is common in the retail
industry.
24) Missionary selling :- selling in which the salesperson's role is to inform
an individual with the power to influence others to buy a product, rather
than to make a direct sale to that person; a missionary salesperson is also
known as a Detailer.
25) Prospecting :- Prospecting is the first step in the sales process, which
consists of identifying potential customers, aka prospects. The goal of
prospecting is to develop a database of likely customers and then
systematically communicate with them in the hopes of converting them
from potential customer to current customer.
26) Socialization :- socialization, the process whereby an Sales Person
learns to adjust to a group (or society) and behave in a manner approved
by the group (or society).
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27) A-C-M-E-E Model
Some sales training specialists refer to these decisions as the A-C-M-
E-E decisions – Aim, Content, Methods, Execution, and Evaluation.
28) Qualitative objectives Sales Person,
o To search out new customers.
o To build up buyer preference.
o To contact customers and take orders.
o To constitute immediate and interactive relationships with buyers.
29) Unsolicited Application :- An unsolicited application letter allows
applicants to clearly state their reason for contacting the company, their
primary skill set and how they could help the business succeed.
30) Routing :- Routing is the process of selecting a path for traffic in a
network or between or across multiple networks.
(By Vishal M Global Business School Hubli)
Note :-
Read Extra Also
I am Not Responsible for Question Arrival in Exam Papers.
Answers are From Google and Text Book. Add Questions if You Feel
Missed
This Note Contains All the Question Papers Questions and Some Extra
Questions from Syllabus
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