Previous Year Question-Answers

Sales and Distribution Management Solved Ques-Paper

2022
Ques 1. What is sales management? Explain the function
of sales manager.
Ans. Sales management is the process of planning,
organizing, directing, and controlling a company's sales
operations. It involves the formulation and implementation
of sales strategies, policies, and procedures that enable
a company to achieve its sales objectives. Sales management
covers a wide range of activities, including market research,
customer relationship management, sales forecasting,
budgeting, pricing, distribution, and sales team management.
The sales manager is responsible for overseeing the sales
activities of a company and ensuring that the sales team
achieves its goals. The key functions of a sales manager
include:
Planning: Sales managers are responsible for developing
sales strategies and plans that align with the company's
overall goals and objectives. This involves analyzing
market trends, identifying customer needs and preferences,
and setting sales targets.
Organizing: Sales managers are responsible for organizing
the sales team, assigning territories, and allocating
resources to maximize sales performance.
Directing: Sales managers are responsible for providing
leadership and direction to the sales team. This involves
setting sales targets, providing training and coaching, and
motivating the team to achieve their goals.
Controlling: Sales managers are responsible for monitoring
sales performance and taking corrective action when
necessary. This involves analyzing sales data, identifying
trends and issues, and making adjustments to the sales
strategy as needed.
Evaluating: Sales managers are responsible for evaluating
the performance of the sales team and individual sales
representatives. This involves setting performance metrics,
conducting performance reviews, and making
decisions about promotions and other incentives.
Overall, the role of a sales manager is to ensure that the
sales team is performing at its best and achieving its
goals, while also providing strategic guidance and
support to the company's sales operations.

QUES 2. How important is it to motivate the sales

force? Discuss various strategies used to motivate
sale force?
Ans. Motivating the sales force is essential for the
success of any sales organization. A motivated sales
force is more productive, focused, and committed to
achieving the company's goals. Motivation can come
in various forms, including financial rewards,
recognition, career advancement opportunities, and a
positive work environment. Here are some strategies
that companies use to motivate their sales force:
Performance-based incentives: Companies often offer
sales representatives bonuses, commissions, or other
financial incentives based on their sales performance.
These incentives can be a powerful motivator, as they
provide tangible rewards for achieving sales targets.
Recognition and rewards: Sales representatives also
respond well to non financial rewards, such as public
recognition, awards, or a personal thank-you from senior
leadership. These types of rewards can boost morale,
increase engagement, and reinforce positive behaviors.
Career advancement opportunities: Providing
opportunities for career growth and development is another
way to motivate sales representatives. This could include
training and development programs, mentoring, or the
opportunity to move into a leadership role.
Positive work environment: Creating a positive work
environment is crucial for motivating sales representatives.
This could include offering flexible work arrangements,
providing the necessary tools and resources to do their job,
and fostering a supportive culture that recognizes and values
their contributions.
Team-building activities: Team-building activities, such as
retreats, workshops, or social events, can help to build
camaraderie among sales representatives and foster a sense of
team spirit.
Clear goals and expectations: Providing clear goals and
expectations for sales representatives can help to motivate
them to achieve their targets. Regular feedback and coaching
can also help to keep them on track and focused on
their goals.
In conclusion, motivating the sales force is crucial for the
success of any sales organization. Companies can use
various strategies to motivate their sales representatives,
including performance-based incentives, recognition
and rewards, career advancement opportunities, creating a
positive work environment, team-building activities, and
setting clear goals and expectations. By implementing these
strategies, companies can create a motivated, engaged, and
productive sales force that is committed to achieving the
company's goals.
Ques 3. What is sales forecasting? Discuss the
qualitative techniques of sales forecasting?
Ans. Sales forecasting is the process of estimating future
sales based on historical sales data and other relevant factors.
It is a critical aspect of sales management, as it allows
companies to plan and allocate resources effectively, make
informed business decisions, and manage their inventory
levels. There are two main types of sales forecasting:
qualitative and quantitative.
Qualitative techniques of sales forecasting are methods that
rely on subjective judgments and expert opinions to predict
future sales. Here are some of the most common qualitative
techniques of sales forecasting:
Expert opinion: This technique involves gathering the
opinions of sales managers, marketing executives, or other
experts in the industry. Experts provide their subjective
judgments on market trends, customer behaviour, and other
relevant factors that can impact sales.
Delphi method: This is a structured process that involves
soliciting opinions from a group of experts through a
series of questionnaires. The experts are anonymous, and
their responses are aggregated and analysed to generate
a consensus forecast.
Sales force composite: This technique involves gathering
input from the sales team, who are closest to the customers
and have the most direct contact with them. The sales team
provides their estimates of future sales based on
their knowledge of the market and customer behaviour.
Market research: This technique involves conducting
surveys, focus groups, or other forms of market research to
gather information about customer preferences, trends, and
behaviour. The data collected is then used to make forecasts
about future sales.
Historical analogy: This technique involves using past sales
data to predict future sales. The historical data is analysed to
identify trends, seasonal patterns, and other factors that can
impact sales.
Overall, qualitative techniques of sales forecasting rely on
subjective judgments and expert opinions to make predictions
about future sales. While these methods can be useful, they
are often less precise than quantitative techniques and
may require frequent updates to reflect changes in the market
or customer behaviour.
Ques 4. Explain the various type of selling skills?
Ans. Selling skills are the abilities and knowledge required
to effectively persuade and influence customers to make a
purchase. There are several types of selling skills that sales
representatives need to master to be successful. Here are
some of the most important types of selling skills:
Communication skills: Communication skills are essential for
sales representatives to effectively convey information about
their products or services to customers. This includes verbal
communication skills, such as active listening, asking
questions, and responding to objections, as well as
written communication skills, such as email and proposal
writing.
Relationship-building skills: Building and maintaining
relationships with customers is crucial for sales success.
Relationship-building skills include the ability to establish
rapport, develop trust, and establish a long-term
relationship with the customer.
Presentation skills: Sales representatives need to be able to
effectively present their products or services to potential
customers. This includes the ability to create engaging and
persuasive presentations, use visual aids effectively,
and adapt the presentation to the customer's needs.
Product knowledge: Sales representatives need to have a
deep understanding of their products or services, including
their features, benefits, and competitive advantages. This
knowledge helps sales representatives to answer
customer questions and objections and make persuasive
arguments for their products or services.
Closing skills: Closing skills are the ability to ask for the sale
and secure the deal. Sales representatives need to know how
to identify buying signals, ask for the sale, and handle
objections that may arise during the closing process.
Negotiation skills: Negotiation skills are essential for sales
representatives to be able to effectively negotiate with
customers to reach a mutually beneficial agreement. This
includes the ability to identify the customer's needs
and interests, develop creative solutions to meet those needs,
and handle objections or conflicts that may arise during the
negotiation process.
Overall, mastering these selling skills is essential for sales
representatives to succeed in a competitive marketplace. By
developing strong communication, relationship-building,
presentation, product knowledge, closing, and
negotiation skills, sales representatives can build trust,
establish rapport, and close more deals.
Ques 5. Briefly explain any three structures of sales
organisation?
Ans. Sales organization structure refers to how a company
organizes its sales team to achieve its sales objectives. There
are several different sales organization structures that a
company can use, depending on its goals, size, and market.
Here are three common sales organization structures:
Geographic structure: A geographic sales organization
structure divides the sales team based on regions or
territories. This structure is often used by companies with a
wide geographic footprint or a large customer base.
Sales representatives are assigned to specific regions or
territories and are responsible for all sales activities within
that area. This structure allows sales representatives to focus
on the unique needs and characteristics of their
assigned region or territory.
Product-based structure: A product-based sales organization
structure divides the sales team based on the products or
services they sell. This structure is often used by companies
that offer a wide range of products or services or have
a diverse customer base. Sales representatives specialize in
selling specific products or services and are responsible for
all sales activities related to those products or services. This
structure allows sales representatives to develop
deep expertise in their products or services and provide more
specialized support to customers.
Customer-based structure: A customer-based sales
organization structure divides the sales team based on the
types of customers they serve. This structure is often used by
companies with a diverse customer base or that operate
in multiple industries. Sales representatives specialize in
selling to specific types of customers, such as small
businesses, large corporations, or government agencies. This
structure allows sales representatives to develop deep
expertise in the needs and characteristics of their assigned
customer group and provide more specialized support to
customers.
Overall, the structure of a sales organization will depend on
a company's goals, market, and customer base. By selecting
the appropriate sales organization structure, companies can
align their sales team to their strategic objectives, maximize
sales effectiveness, and provide superior customer service.

Ques 6 What is sales territory? How sales territories are

decided? Explain the importance of sales territory
management.

Ans. Sales territory refers to a geographic area assigned to a

salesperson, team, or company, where they are responsible
for selling the products or services of the company. A sales
territory's main objective is to optimize a sales team's sales
performance by ensuring that they are targeting the right
customers and prospects with the right products or services
in a specific geographic area. The process of deciding sales
territories involves analyzing customer data, demographics,
and psychographics to identify potential customers and
areas
with the highest sales potential. Sales territories can be based
on different criteria such as geography, industry, market
segment, and product line. Factors such as the size of the
territory, the number of potential customers, and
the competitive landscape are also taken into consideration
when deciding the sales territory.
Effective sales territory management is critical for the
success of any sales organization. It helps in maximizing
sales productivity, reducing travel costs, and improving
customer satisfaction. Some of the benefits of sales
territory management include:
Increased sales performance: Sales territory management
ensures that sales reps are focused on the most profitable
customers and prospects in their assigned territory, leading to
increased sales productivity and revenue. Improved customer
satisfaction: Sales reps who are familiar with their
territory and customer needs are more likely to provide
personalized and effective solutions, leading to higher
customer satisfaction levels.
Efficient resource allocation: With a well-defined sales
territory, sales managers can allocate resources effectively,
such as time, money, and personnel to maximize sales
performance.
Better sales forecasting: By analyzing sales data from a
particular territory, sales managers can forecast future sales
and adjust their strategy accordingly. Overall, effective sales
territory management is crucial for the success of any sales
organization. It helps in identifying potential customers,
improving customer satisfaction, increasing sales
productivity, and maximizing revenue.

Ques7. Discuss in brief the methods of sales forecasting.

Ans. Sales forecasting is the process of estimating future

sales performance based on historical sales data, market
trends, and other relevant factors. There are several
methods of sales forecasting that can be used by
businesses, including:
Historical Sales Data Method: This method uses past sales
data to predict future sales performance. It involves
analyzing trends and patterns in sales data, considering
factors such as seasonality, customer behaviour, and market
trends. This method is often used for short-term forecasting.
Market Research Method: This method involves conducting
surveys, focus groups, and other market research techniques
to gather data on customer behaviour, preferences, and
trends. This data is then used to predict future
sales performance. This method is often used for long-term
forecasting. Expert Opinion Method: This method involves
seeking input and opinions from sales managers, industry
experts, and other knowledgeable individuals to predict
future sales performance. This method is often used in
situations where there is limited data available, or when
market conditions are uncertain. Regression Analysis
Method: This method uses statistical techniques to
analyse the relationship between sales and other variables
such as marketing spend,
pricing, and economic indicators. The results are then
used to predict future sales performance.

Time Series Analysis Method: This method involves

analysing trends and patterns in sales data over time to
predict future sales performance. It uses statistical
techniques such as moving averages, exponential
smoothing, and trend analysis to forecast sales.
Overall, the choice of sales forecasting method will depend
on the nature of the business, the availability of data, and the
time horizon of the forecast. A combination of different
methods may also be used to provide a more
accurate forecast.

Ques 8 . What do you mean by sales quota? Explain

the different types of quotas.

Ans. A sales quota is a specific sales target or objective set

for a salesperson, team, or company to achieve within a
specified period of time. It is a key performance indicator
(KPI) used to measure sales performance and can be used as
a motivational tool to drive sales productivity.
There are different types of sales quotas, including:
Volume Quota: This type of quota sets a specific sales
target in terms of units sold, revenue generated, or other
volume-based metrics. For example, a salesperson may
have a volume quota of selling 100 units per month. Profit
Quota: This type of quota sets a specific sales target in
terms of profit generated. For example, a salesperson may
have a profit quota of generating $10,000 in profit per
month.
Activity Quota: This type of quota sets a specific target for
sales activities, such as the number of sales calls made, the
number of emails sent, or the number of demos conducted.
For example, a salesperson may have an activity quota
of making 50 sales calls per day.
Combination Quota: This type of quota combines different
types of quotas, such as volume and profit quotas, to provide
a more comprehensive target for sales performance.
Territory Quota: This type of quota sets a specific sales target
for a particular sales territory or region. For example, a sales
team may have a territory quota of generating $100,000 in
revenue from a particular region.
Sales quotas can be set based on various factors, such as the
salesperson's experience, product line, customer segment,
and market conditions. It is important to set realistic and
achievable sales quotas that motivate the sales team while
still being challenging enough to drive sales growth.
Effective sales quota management involves monitoring sales
performance, providing coaching and support to sales teams,
and adjusting quotas as needed to reflect changing market
conditions or business goals.

2021 Question Paper Solved

Ques 1. Discuss the various factors affecting the allocation of

sales territory. Ans. Sales territory allocation is the process of
assigning specific geographic areas or customer segments to
sales teams or individual salespeople. The allocation of sales
territories can have a significant impact on sales
productivity and revenue growth. Several factors need to be
considered when allocating sales territories, including:
Geographic Location: One of the most important factors in
sales territory allocation is the geographic location of
customers. The sales team should be assigned to a
specific geographic area based on the location of their
target customers.
Customer Needs: Customer needs and preferences can vary
by region or market segment. Therefore, sales territories
should be allocated based on the specific needs and
preferences of customers in that region or market segment.
Sales Potential: Sales potential refers to the amount of
revenue that can be generated in a particular geographic area
or market segment. Sales territories should be allocated
based on the potential for revenue growth in that area.
Competitive Landscape: The competitive landscape in a
particular geographic area or market segment can have a
significant impact on sales performance. Sales territories
should be allocated to sales teams based on their ability
to compete effectively in that market.
Salesperson Skills and Experience: The skills and experience
of salespeople can vary significantly, and territories should
be allocated based on the salesperson's strengths and
weaknesses.
Product Line: The allocation of sales territories should
consider the specific product line that the sales team is
responsible for selling. For example, if a salesperson is
responsible for selling a particular product line, they should
be assigned to a territory that has a high potential for sales
of that product. Sales Cycle: The sales cycle for a particular
product or service can vary based on the geographic
location or market segment. Territories should be
allocated based on the sales cycle and the amount of time
required to close sales in that region or market segment.
In conclusion, the allocation of sales territories should be
based on a careful analysis of the above factors to ensure
that sales teams are optimally positioned to achieve their
sales targets and maximize revenue growth.

Ques2. “Quotas” can act as a ‘motivator’ as well as ‘DE

motivator’. Comment.

Ans. Sales quotas can indeed act as a motivator or a de-

motivator, depending on how they are designed and
managed. On the one hand, quotas can be a
powerful motivator for salespeople by providing a clear
target to strive towards and creating a sense of urgency and
accountability. When salespeople achieve their quotas, they
feel a sense of accomplishment and recognition, which can
increase their motivation and commitment to the job.
On the other hand, quotas can also act as a de-motivator if
they are set too high or are unrealistic. When salespeople
consistently fail to meet their quotas, they may feel
discouraged and demoralized, leading to decreased
motivation and poor performance. Additionally, if quotas are
perceived as unfair or arbitrary, they can create resentment
and resistance among salespeople. Moreover, if quotas are
not based on the salesperson's skills, experience, or market
potential, it can create an uneven playing field that can be
demotivating. Quotas that are too rigid can also hinder
salespeople's creativity and ability to innovate, as they may
focus solely on meeting the quota rather than exploring new
ideas and opportunities.
Therefore, it is essential to design quotas that are challenging
but achievable, fair and transparent, and based on relevant
factors such as market potential and salesperson's skills and
experience. Moreover, regular feedback and coaching can
help salespeople stay motivated and engaged, even when
they face challenges in meeting their quotas. Effective sales
quota management involves monitoring sales performance,
providing support and training, and adjusting quotas as
needed to reflect changing market conditions or business
goals.

Ques 3 . What is Control Process and what are the

elements and steps involved in Control Process?
Ans: Controlling is the process of assessing and
modifying performance to ensure that the company's
objectives and plans for achieving them are met.
Control is the final role of management. The controlling
function will become obsolete if other management functions
are properly carried out. If there are any problems in the
planning or actual performance, control will be required.
Controlling ensures that the proper actions are taken at the
appropriate times. Control can be thought of as a process
through which management ensures that the actual
operations follow the plans.
The company's managers check the progress and compare it
to the intended system through managing. If the planned
and real processes do not follow the same path, the
necessary corrective action can be implemented.
The control process is the careful collection of information
about a system, process, person, or group of people which
is required to make necessary decisions about each of the
departments in the process. Managers in the company set
up the control systems which consist of the four prior key
steps which we will discuss in the later section.
The performance of the management control function is
important for the success of an organization. Management is
required to execute a series of steps to ensure that the plans
are carried out accordingly. The steps that are executed in
the control process can be followed for almost any
application, also for improving the product quality,
reduction of wastage, and increasing sales.

What is Controlling?
The Controlling process assures the management that the
performance rate does not deviate from its standards.

The controlling Process consists of five steps:

1. Setting the standards.
 2. Measuring the performance.
3. Comparing the performance to the set standards
4. Determining the reasons for any such deviations which is
required to be paid heed to.
5. Take corrective action as required. Correction can be
made in regards to changing the standards by setting
them higher or lower or identifying new or additional
standards in the department.

Elements and Steps of Control Process:

1. Establishing Performance Measuring Standards and
Methods
Standards are, by definition, nothing more than
performance criteria. They are the predetermined
moments in a planning program where performance is
measured so that managers may receive indications
about how things are doing and so avoid having to
monitor every stage of the plan's execution. This simply
means setting up the target which needs to be achieved
to meet the organizational goals. These standards set
the criteria for checking performance. The control
standards are required in this case.
Standard elements are especially useful for control
since they help develop properly defined,
measurable objectives.

2. Measuring the Performance

Performance against standards should be measured on a
forward-looking basis so that deviations can be
discovered and avoided before they happen. Appraising
 actual or predicted performance is relatively simple if
criteria are properly drawn and methods for determining
exactly what subordinates are doing are available.
The actual performance of the employee is then
measured against the set standards. With the increase in
levels of management, the measurement of
performance becomes quite difficult.

3. Determining if the Performance is up to par with the

Standard
In the control process, determining if performance meets
the standard is a simple but crucial step. It entails
comparing the measured results to previously
established norms. Managers may assume that "all is
under control" if performance meets the benchmark.
Comparing the degree of difference between the actual
performance and the set standard.

4. Developing and Implementing a Corrective Action

Plan
This phase becomes essential if performance falls
short of expectations and the analysis reveals that
corrective action is required. The remedial measure
could include a change in one or more of the
organization's functions.
This is being initiated by the manager who corrects
any sorts of defects in the actual performance.
Ques 4 . What is control process? what are the types,
advantages, and features of Control Process?
Ans: Controlling is the process of assessing and modifying
performance to ensure that the company's objectives and
plans for achieving them are met.
Control is the final role of management. The controlling
function will become obsolete if other management functions
are properly carried out. If there are any problems in the
planning or actual performance, control will be required.
Controlling ensures that the proper actions are taken at the
appropriate times. Control can be thought of as a process
through which management ensures that the actual
operations follow the plans.
The company's managers check the progress and compare it
to the intended system through managing. If the planned
and real processes do not follow the same path, the
necessary corrective action can be implemented.
The control process is the careful collection of information
about a system, process, person, or group of people which
is required to make necessary decisions about each of the
departments in the process. Managers in the company set
up the control systems which consist of the four prior key
steps which we will discuss in the later section.

Types of Control:
There are five different types of control:
1. Feedback Control: This process involves collecting the
information on which the task is being finished, then
assessing that information and improvising the same
tasks in the future.
1. Concurrent control (also known as real-time control):
It investigates and corrects any problems before any
losses arising. An example is a control chart.
This is the real-time control, which checks any
problem and examines the same to act before any
loss has been caused.

2. Predictive/ feedforward control: This type of control

assists in the early detection of problems. As a result,
proactive efforts can be done to avoid a situation like this
in the future. Predictive control foresees the problem
ahead of its occurrence.

3. Behavioural control: This is a direct assessment of

managerial and staff decision-making rather than the
consequences of those decisions. Behavioural control, for
example, sets incentives for a wide range of criteria in a
balanced scorecard.
4. Financial and non-financial controls: Financial controls
refer to how a firm manages its costs and spending to stay
within budgetary limits. Non-financial controls refer to
how a company manages its costs and expenses to stay
within budgetary constraints.

Features of Controlling:
The features of controlling are discussed point-wise to give
a clear insight into the concept. The features are as
follows:
• Controlling helps in achieving organizational goals.
• The process facilitates the optimum use of resources.
 • Controlling judges, and the accuracy of the standard.
• The process also sets discipline and order.
• The controlling process motivates the employees
and boosts the employee morale, eventually, they
strive and work hard in the organization.
• Controlling ensures future planning by revising the set
standards.
• This improves the overall performance of an
organization. • Controlling minimizes the
commission of errors.

Advantages of Controlling:
The organization inculcates the process of controlling
due to its undying advantages. The advantages of
control are as follows:
• The Controlling Process saves time and energy.
• This allows the managers to concentrate on important
tasks, and allows better utilization of the managerial
resource.
• Assures timely and corrective action to be taken by the
manager.

Q5. What are Sale Expenses? How do you manage sale

Expenses? What are the importance of selling
expenses?
Ans: Selling expenses are the costs associated with
distributing, marketing, and selling a product or service.
They are one of three kinds of expense that
make up a company’s operating expenses. The others
are administration and general expenses. Selling
expenses can include:
• Distribution costs such as logistics, shipping, and
insurance costs • Marketing costs such as advertising,
website maintenance and spending on social media
• Selling costs such as wages, commissions, and out-of-
pocket expenses
Selling expenses are categorized as indirect expenses on a
company’s income statement because they do not contribute
directly to the making of a product or delivery of a service.
Some components can change as sales volumes increase or
decrease, while others remain stable. Hence, selling
expenses are semi variable costs (as opposed to fixed or
variable costs).

10 Ways to Reduce Sales Costs:

• Mine your existing customer base first. “This is

absolutely essential,” says
Jill Konrath, nationally recognized sales training expert
and author of Selling to Big Companies
(sellingtobigcompanies.com). She says business owners
frequently put too much emphasis on acquiring
new accounts. “Your strongest – and least costly –
position is to go back to the customers you already
have, and bring them ideas that will help them reduce
costs, increase their sales, and be more effective by
doing more business with you.”
• Make sure your sales team is following up on leads.
According to Go-toMarket Strategies (gtms-inc.com), a
 sales and marketing resource center, recent studies
show that most leads or hot prospects go cold in the
first 24 hours. The center polled its clients and found
that 25% of sales leads had never been pursued, with
many more than that only receiving a single call. While
there are many options on how to track leads and sales
processes, make sure you have something in place. •
Calculate how much to spend on acquiring
customers. According to Jack Schmid and Steve
Trollinger in Chief Marketer, setting a budget for sales
and customer acquisition starts with determining the
current actual cost to acquire a customer and
calculating the average customer lifetime value.
(Lifetime value equals frequency of purchase times
duration of loyalty times gross profit.) Knowing
the average cost to acquire a customer is crucial to
setting an acquisition budget that ensures profitability
and a strong ROI on sales expenditures.
• Invest in sales tools, not more travel. Rather than
sending salespeople out to prospect from ground zero,
invest in tools like Inside View, a Trigger Event
notification service, to reduce overall expenses and
avoid inefficient use of salespeople. To reduce cost of
sale and improve ROI, encourage salespeople to spend
more time researching prospects and customers.
• Stop creating brochures. “All marketing today
should truly be about education, never about your
product or service,” Konrath says. “You can save
money by not spending it on ridiculous brochures that
get tossed away.” Instead, business owners should
focus on providing educational content.
• Do your homework before setting sales and
marketing budgets. Many
companies fail to gather data needed to accurately set
sales and marketing budgets, often relying on a single
cost dimension or worse, guesswork. These broad-
based budgets involve more than merely cost of sales
or a percentage of company revenue. Go-to-Market
Strategies recommends using a three-prong approach to
setting sales budgets that incorporates industry
standards, marketing planning (based on the company’s
historical data including past and forecasted ROI as well
as industry norms), and customer lifetime value.
• Make virtual meetings the first step in the sales
process. Customers don’t have time to see salespeople
because time is their most precious commodity these
days. “It’s taking sellers eight to 12 contacts to set up
meetings with purchasing decision makers in many
cases,” Konrath warns. She advises shifting a portion of
the sales budget from travel to virtual meetings. “What
I’m seeing right now is a lot of decision makers
preferring to have a 10 or 15 minute conversation or
pre-meeting first to see if it’s worthwhile to talk in
more depth. Virtual meetings and webinars are
extraordinarily effective today.”
• Make sure your sales team isn’t arbitrarily writing
off prospects. According to its Voice of the Customer
research, Indianapolis-based marketing firm
MillerPierce (millerpierce.com) reports that 30% of
non-purchasers – leads that went from hot to cold – will
be ready to buy in six to nine months. Protect your lead
generation investment by continually communicating
with these leads. It’s less expensive than chasing new
leads and will ensure your company will be top-
ofmind when they’re ready to buy.
 • Become your industry’s expert. Provide prospects
and customers with information about how to make
decisions on product and service purchases like yours,
how to get the best value out of using your product
and service, and how to solve business issues that your
product or service addresses. Be the company that
teaches how to run business better by providing white
papers, webinars, podcasts, interviews, and articles. •
Update sales training to 21st century practices. One of
the biggest obstacles companies face is that salespeople
and small business owners still read the old masters
who sold in the 1970s, when the marketplace and sales
climate were entirely different. “They’re
actually getting bad advice that boomerangs against
them and makes it harder to them to get sales,” says
Konrath. Budgeting for training to make sure your sales
team’s skills are up-to-date is a worthwhile investment.

The following are the importance of Selling Expenses:

Correctly assess its tax burden: Tracking selling expenses

is important for tax compliance and for ensuring the business
is correctly calculating deductions to reduce its tax burden.

Control spending: While the general and administrative

bucket is often where companies start cost reduction
measures, the items in the selling expense bucket are some of
the biggest opportunities to better control costs. For instance,
travel
expenses are a selling expense that represents a cost
containment opportunity. Accenture research shows that
travel expenses comprise 10% to 12% of a business’ annual
budget and represent about 1% of its revenue.
Start to develop KPIs: Accurate selling costs help the
business work toward getting key sales metrics such as the
Customer Acquisition Cost (CAC). That is calculated by
dividing the total cost of getting customers by the total
number of customers acquired for a given time period.

Ques 6 . What is evaluation sales performance? How

do you monitor and evaluate sales performance?
Ans: Sales evaluation involves an analysis of the
performance of your sales personnel. It can also analyse
your pricing's or marketing's impact on sales. Using a sales
analysis, your sales team members learn about their strengths
and weaknesses so they know which areas to improve. If
you conduct proper sales
evaluations regularly, you may improve the efficiency of
your sales efforts and drive up your profits.

The following are the ways to monitor and evaluate

sales performance: 1. Sales Productivity Metrics

How much time do your reps spend selling? Sales

productivity is key for leadership to understand because
time spent selling helps measure sales performance in
terms of efficiency.
Average-performing sales reps spend only about 35
percent of their time in direct selling, and 65 percent
dealing with non-selling activities. These time sinks
include non-sales calls and internal
conversations/meetings, or even networking. All of these
activities seem harmless on the surface, but like all things,
they add up.
2. Lead Response Time
Time is valuable when you’re looking at how long it takes
reps to follow up on leads. The longer your lead response
time, the lower your performance is.
Here's a breakdown on how time impacts the success of lead
conversion:

• Inside Sales notes that reps experience a “21x uplift in

qualifications” if they reach out within five minutes
compared to 30 minutes.
• Hubspot says those who perform outreach within five
minutes are “100 times more likely to qualify the
prospect.”
• If you contact with the lead within receiving it, you
might be seven times more likely to qualify the lead than
if you were to wait another hour. • Don’t wait a full 24
hours or else you might be 60 times less likely to qualify
the lead.

3. Opportunity Win Rate

Win rate is the measurement of how many opportunities
convert into closed won deals. If the win rate is low or in
decline, it begs the next question of “why?” Was it lost to
a competitor? Did the prospect opt for an
internal solution? Or did they decide not to pursue any
solution at all?
It’s not enough to know a deal was lost. You want to be
able to track where it fell out of the funnel. If it fell out of
the funnel early, then it could be a symptom of poor
rapport building or lack of effectiveness with
demo presentations. Or, it could mean you need to improve
lead qualifications to ensure the right opportunities are
entering the pipeline.
4. Average Deal Size
What is the average sales price or profitability from your
closed deals? If you’re spotting deals coming in below
average, it may be a sign of reps opting for smaller, easier
wins, or that they are even discounting normal or average
deals just to make the sale.
Deals entering the pipeline above average may indicate a
need to revaluate the opportunity. Meaning, it's important to
ensure reps are spending their time focused on profitable
deals that are most likely to close.

Ques 7 . Why is ethics important in sales? What are the

ethical issues in Sales management?
Ans: Selling ethically means serving your best-fit prospects,
which will help you close better deals and do so faster. In the
long run, an ethical approach strengthens your marketing
because you can turn your best customers into
your marketing engine. When you sell in an ethical manner,
you position yourself as a trustworthy, reliable brand. As a
result, this will lift up all of your marketing efforts, from
specific campaigns to your reputation in the industry. You
also need to consider laws of selling in your industry and
codes of conduct you need to abide by. If you’re in
industries such as real estate, financial services
and telecommunications, make sure you know their legal
side.

The following are the ethical issues in Sales

Management: 1. Selling a Product as
Opposed to Selling a Solution
Products aren’t just products; they’re also solutions.
Concentrate on the solution rather than the sale. Your
products are someone else’s solution, and it’s up to you to
figure out who that someone is.
Assume you heavily advertise and push your products on
people who don’t need them or don’t have the problem your
product solves. In that case, you risk tarnishing your
reputation among dissatisfied consumers and customers.
Maintain a customer-focused attitude and avoid
rushing to make a sale. 2. Telling the Truth, but Not
the Entire Fact
Half-truths remain half-lies. And false promises can come
back to haunt you.
Do not manipulate your market with half-truths to make a
sale. Consumers today are astute.
If your product isn’t a good fit for a market, it’s not a good
fit.
Avoid changing your messaging and copy to better meet the
needs of your target audience without improving your
product. If you want to be ethical, your product must always
match your message.
This should take precedence over sales.
3. Deceiving One’s Organization
People employed in sales and marketing typically work in
the field without constant supervision. Because no
supervisor can see or hear everything, salespeople and
marketers may get away with unethical behavior even
inside. The question is whether the salesperson or marketer
is stealing time and effort from the company.
Some assert that a salesperson’s pay is a straight commission
(paid by the sale), which means they are not stealing from
the company. Some argue that the company still loses
potential sales even in that case.
4. Commitment Issues
Whether your customer is experiencing a delivery delay, a
quality issue, or a product change, anticipating the
problem and communicating to your customers can help
them find an alternative solution and maintain their trust.
As a successful salesperson, you must maintain a solution-
oriented mindset throughout the sales process. Irrespective
of what caused the problem, honesty, transparency, and
integrity should remain your highest priorities.
5. Accountability
If a problem arises and you are to blame, accept
responsibility as soon as possible and truthfully.
While it is tempting to avoid responsibility to save face,
accepting responsibility for your actions and offering a
solution to the problem is a more ethical approach.
If a customer-facing issue arises and you fail to accept
responsibility, having your customer learn the truth from a
third party may harm your relationship and jeopardize future
sales.
Ques 8 : What is Sales Process?

Ans: 1. Prospecting

The first step in the sales process is prospecting. In this stage,

you find potential customers and determine whether they
have a need for your product or service—and whether they
can afford what you offer. Evaluating whether the customers
need your product or service and can afford it is known
as qualifying.
Keep in mind that, in modern sales, it's not enough to find
one prospect at a company: There are an average of 6.8
customer stakeholders involved in a typical purchase, so
you'll want to practice multi-threading, or connecting
with multiple decision-makers on the purchasing side.
Account maps are an effective way of identifying these
buyers.

2. Preparation

The next step is preparing for initial contact with a potential

customer, researching the market and collecting all relevant
information regarding your product or service. Develop your
sales presentation and tailor it to your potential client’s
particular needs. Preparation is key to setting you up
for success. The better you understand your prospect and
their needs, the better you can address their objections and
set yourself apart from the competition.

3. Approach

Next, make first contact with your client. This is called the
approach. Sometimes this is a face-to-face meeting,
sometimes it’s over the phone. There are three common
approach methods.
• Premium approach: Presenting your potential client
with a gift at the beginning of your interaction
• Question approach: Asking a question to get the prospect
interested
• Product approach: Giving the prospect a sample or a
free trial to review and evaluate your service

4. Presentation

In the presentation phase, you actively demonstrate how your

product or service meets the needs of your potential
customer. The word presentation implies using PowerPoint
and giving a salesy spiel, but it doesn’t always have to be
that way—you should actively listen to your customer’s
needs and then act and respond accordingly.
5. Handling objections

Perhaps the most underrated step of the sales process is

handling objections. This is where you listen to your
prospect’s concerns and address them. It’s also where many
unsuccessful salespeople drop out of the process—44%
of salespeople abandoning pursuit after one rejection, 22%
after two rejections, 14% after three, and 12% after four,
even though 80% of sales require at least five follow-ups to
convert. Successfully handling objections and
alleviating concerns separates good salespeople from bad
and great from good.

6. Closing
In the closing stage, you get the decision from the client
to move forward. Depending on your business, you
might try one of these three closing techniques.
• Alternative choice close: Assuming the sale and
offering the prospect a choice, where both options
close the sale—for example, “Will you be paying the
whole fee up front or in installments?” or “Will that be
cash or charge?”
• Extra inducement close: Offering something extra to
get the prospect to close, such as a free month of
service or a discount
• Standing room only close: Creating urgency by
expressing that time is of the essence—for example,
“The price will be going up after this month” or “We
only have six spots left”

7. Follow-up
Once you have closed the sale, your job is not done. The
follow-up stage keeps you in contact with customers you
have closed, not only for potential repeat business but for
referrals as well. And since retaining current customers is six
to seven times less costly than acquiring new ones,
maintaining relationships is key.

2019 Question Paper Solved

Question 1. Explain various type of channels of

distribution?
Answer. Channels of distribution, also known as distribution
channels, are the various routes through which products
move from the manufacturer or supplier to the end
consumer. These channels can be classified into several
types based
on the number of intermediaries involved in the process, the
level of control the manufacturer has over the distribution,
and the types of intermediaries used.
Here are some of the most common types of channels of
distribution:
Direct distribution: In this type of channel, the manufacturer
sells products directly to the end consumer without the
involvement of any intermediaries. This method is commonly
used in industries such as online retail, where
the manufacturer can sell products directly to the consumer
through their website or
online store.
Indirect distribution: In this type of channel, the
manufacturer uses intermediaries such as wholesalers,
retailers, and distributors to get the products to the end
consumer. This method is commonly used in industries such
as food and beverage, where products are sold through a
network of distributors and retailers.
Dual distribution: In this type of channel, the manufacturer
sells products both directly to the end consumer and through
intermediaries. This method is commonly used in industries
such as consumer electronics, where products can be sold
through both company-owned stores and third-party
retailers.
Intensive distribution: In this type of channel, the
manufacturer uses as many intermediaries as possible to
distribute the product to as many outlets as possible. This
method is commonly used in industries such as fast-
moving consumer goods, where products need to be widely
available to the end consumer.
Selective distribution: In this type of channel, the
manufacturer only uses a limited number of
intermediaries to distribute the product. This method is
commonly used in industries such as luxury goods, where
the manufacturer wants to maintain a certain level of
exclusivity.
Exclusive distribution: In this type of channel, the
manufacturer only uses one intermediary to distribute the
product. This method is commonly used in industries such as
high-end fashion, where the manufacturer wants to
maintain complete control over the distribution of their
products.
Overall, the choice of channel of distribution depends on
various factors such as the nature of the product, the target
market, the level of control the manufacturer wants to
maintain, and the resources available to the manufacturer.

Question 2. What are the factor affecting effective

management of distribution channel?
Answer. Effective management of distribution channels is
crucial for the success of any business. However,
managing distribution channels can be challenging due to
various factors that can affect their effectiveness. Here
are some of the factors that can impact the management of
distribution channels:
Channel complexity: The more complex the distribution
channel is, the more difficult it is to manage. A complex
channel may involve multiple intermediaries, different
locations, and various types of products.
Channel conflicts: Channel conflicts can arise when there is
a clash of interests between different members of the
distribution channel. This can happen when intermediaries
compete with each other or when they feel that they are
not getting a fair share of the profits.
Communication: Effective communication is essential for
managing distribution channels. Miscommunication or a
lack of communication can lead to delays,
misunderstandings, and other problems.
Logistics: Logistics is a critical component of distribution
channel management. It involves managing the movement
of products from the manufacturer to the end consumer.
Problems with logistics can lead to delays, increased costs,
and other issues.
Technology: Technology can play a crucial role in managing
distribution channels. The use of technology can help
streamline processes, improve communication, and reduce
costs. However, not all members of the distribution channel
may have the same level of technology, which can lead to
issues.
Competition: Competition can also impact the management
of distribution channels. When there is intense competition
in the market, intermediaries may try to undercut each
other, leading to conflicts and other issues.
Regulations: Regulations can also affect the
management of distribution channels. Different
countries and regions may have different
regulations regarding the distribution of products,
which can impact the choice of distribution channels
and the way they are managed.
Overall, effective management of distribution channels
requires careful planning, coordination, and communication
among all members of the distribution channel. It also
requires an understanding of the factors that can impact the
effectiveness of the channel and the ability to adapt to
changes in the market and the environment.

Question 3. What is the channel design decision? And

How the channel decision made in organization?
Answer. Channel design decisions refer to the process of
selecting the most appropriate distribution channel to reach
the target market. This involves identifying the types of
intermediaries to be used, the number of intermediaries in
the channel, and the level of control the manufacturer wants
to have over the distribution of their products.
The following are the steps involved in making
channel decisions in an organization:
Define the target market: The first step in making
channel decisions is to identify the target market for the
product. This involves identifying the characteristics of
the target market, such as age, gender, income
level, geographic location, and buying behavior.
Identify the channel options: Once the target market has
been identified, the next step is to identify the different
channel options that are available. This involves
considering factors such as the types of intermediaries
available, the level of control the manufacturer wants to
have, and the cost of using different channels.
Evaluate the channel options: The next step is to evaluate
the different channel options based on various factors such
as the cost, the reach, the level of control, and the level of
competition in the market.
Select the most appropriate channel: After evaluating the
different channel options, the manufacturer can then select
the most appropriate channel to reach the target market. This
involves considering factors such as the cost, the level
of control, and the effectiveness of the channel in reaching
the target market.
Implement the channel: Once the channel has been selected,
the manufacturer can then implement the channel by
working with the intermediaries, setting up the necessary
logistics and processes, and monitoring the performance of
the channel.
Overall, the process of making channel decisions requires
careful analysis of the target market and the available
options, as well as a clear understanding of the goals and
objectives of the organization. It also requires flexibility and
the ability to adapt to changes in the market and the
environment.
Question 4. Write a detailed note on International Sales
Management?
Answer. International sales management is the process of
managing sales activities in multiple countries or regions for
a company. It involves developing strategies, coordinating
resources, and overseeing operations to generate revenue and
achieve growth in foreign markets. Effective international
sales management requires a deep understanding of local
markets, cultures, and business practices, as well as a strong
grasp of global economic trends and trade regulations.
The key components of international sales management
include market analysis, sales planning, product positioning,
distribution management, and customer relationship
management. Market analysis involves researching and
analyzing the needs, preferences, and behaviors of target
customers in each market. Sales planning involves setting
objectives, allocating resources, and developing
sales strategies to meet sales targets. Product positioning
involves adapting products and services to meet the unique
needs and preferences of customers in different markets.
Distribution management involves managing the logistics and
supply chain to ensure timely delivery of products and
services to customers in different regions. Customer
relationship management involves building and
maintaining relationships with customers, identifying their
needs, and providing high-quality customer service.
Effective international sales management also requires a keen
understanding of global economic trends and trade
regulations. For example, managers must be aware of
currency fluctuations, trade agreements, and import/export
regulations that could impact their business.
In addition, effective international sales management also
involves managing a diverse team of sales professionals
from different cultural backgrounds. Managers must be able
to effectively communicate, collaborate, and motivate their
teams to achieve sales targets and meet customer needs.
Overall, successful international sales management requires a
combination of strategic planning, market knowledge,
cultural awareness, and strong leadership skills. By
implementing effective sales strategies and building
strong relationships with customers and partners around the
world, companies can achieve sustained growth and success
in international markets.
Question 5. What is meant by logistics and supply
chain management? How is logistics planning linked
to the channel management?
Answer. Logistics and Supply Chain Management are two
interconnected concepts that are vital to the success of
businesses involved in the movement and delivery of
goods or services.
Logistics management refers to the process of planning,
implementing, and controlling the movement of goods,
information, and other resources from the point of origin to
the point of consumption. Logistics management
encompasses activities such as transportation, warehousing,
inventory management, packaging, and distribution.
Supply Chain Management (SCM), on the other hand, is the
coordination and management of all activities involved in
sourcing, procurement, conversion, and logistics
management. This includes the planning and execution of
activities across the entire supply chain, from the initial
acquisition of raw materials to the final delivery of finished
products to customers.
In simpler terms, logistics management is primarily focused
on the movement and transportation of goods from one
place to another, while supply chain management is
concerned with managing the entire network of companies
and resources involved in the production and delivery of
goods and services.
Logistics planning is closely linked to channel management
because effective logistics planning is essential for ensuring
that products or services are delivered to customers through
the appropriate channels in a timely and cost-
effective manner. Logistics planning involves the
coordination of transportation, warehousing, and inventory
management to ensure that products are available when and
where they are needed.
For example, if a company sells products through both
online and offline channels, logistics planning would
involve coordinating the transportation and
storage of products to ensure that they are available at both
the company's warehouses and retail locations. This would
also involve managing inventory levels to ensure that the
right products are available at the right locations at the right
time.
In conclusion, logistics planning and channel management are
closely linked because effective logistics planning is crucial
for ensuring that products or services are delivered to
customers through the appropriate channels in a timely and
cost-effective manner. By effectively managing their logistics
and channels, businesses can improve their overall
efficiency, reduce costs, and provide better service to their
customers.
Effective logistics and supply chain management can provide
several benefits to businesses, including improved efficiency,
cost savings, increased customer satisfaction, and a
competitive advantage. Companies that can manage
their logistics and supply chain effectively can respond
quickly to changes in demand and supply, minimize
disruptions, and optimize their operations to improve
their overall performance.