Study Questions and Detailed Answers
Define sales management and explain its key functions.
Sales management refers to the process of planning, directing, and controlling sales
activities within an organization to achieve business objectives. Key functions include
setting sales goals, developing sales strategies, recruiting and training sales teams,
monitoring sales performance, and motivating and compensating sales personnel.
How does modern sales management differ from traditional sales management
in terms of responsibilities?
Modern sales management integrates technology, prioritizes customer-centric approaches,
personalizes sales strategies, and utilizes digital selling platforms, whereas traditional sales
management focused more on direct selling and basic sales tracking.
Explain the role of a professional salesperson and the key attributes they
should possess.
A professional salesperson identifies and understands customer needs, presents products
persuasively, builds and maintains relationships, and negotiates deals. Key attributes
include communication skills, empathy, resilience, product knowledge, adaptability, and
integrity.
What are the key drivers of change in sales management and selling in today’s
business environment?
Key drivers include technological advancements (CRM, AI, automation), changing customer
expectations, globalization, regulatory changes, and economic factors such as market
fluctuations.
Describe the basic types of sales force organization and their significance.
Sales force structures include geographical (local coverage), product-based (specialized
expertise), customer-based (segmented focus), and hybrid (flexibility).
Discuss the three primary objectives of sales management as outlined by the
American Marketing Association (AMA).
The primary objectives are sales volume (meeting revenue targets), profitability
(maximizing margins and minimizing costs), and market growth (expanding customer
base).
Explain the procedures involved in setting up a sales organization in a firm.
Procedures include defining sales objectives, choosing a structure, recruiting and training
personnel, implementing sales processes, and establishing performance metrics.
Discuss the factors that determine the structure of a firm’s sales force.
Factors include market characteristics, product complexity, company size, and sales
strategy (direct sales, partnerships, or digital channels).
What are the key steps involved in the sales budgeting process, and why is it
important?
Steps include setting sales goals, analyzing past data, determining expenses, allocating
resources, and monitoring performance to ensure efficient fund distribution.
Explain the process of recruiting, selecting, and training a sales force.
Recruiting involves sourcing candidates, selection includes screening and interviewing, and
training provides product knowledge and CRM system skills.
Discuss the significance of motivation and compensation in salesforce
management.
Motivation and compensation drive productivity and retention. Common compensation
models include salaries, commissions, and bonuses.
Discuss the key steps in the recruitment and selection process of a sales force
and explain the importance of each step.
Key steps include job analysis, sourcing candidates, screening, interviewing, and final
selection to ensure a competent and culturally fit sales team.
Compare and contrast internal and external recruitment in salesforce hiring.
Internal recruitment promotes loyalty but limits fresh perspectives, while external
recruitment brings new ideas but requires more training.
What are the major factors influencing the selection of salespeople in an
organization?
Factors include experience, skills, cultural fit, sales track record, industry knowledge, and
adaptability.
Explain the role of sales training in enhancing the effectiveness of a sales team.
What are the key components of an effective sales training program?
Sales training improves product knowledge, communication, and closing techniques.
Effective programs include hands-on training, role-playing, and digital tools.
Identify and discuss the common mistakes sales managers make when
developing a sales training program.
Mistakes include lack of clear objectives, ignoring real-world application, a one-size-fits-all
approach, and neglecting follow-up training.
Define motivation in the context of sales management and discuss three key
motivation theories that can be applied to enhance sales performance.
Motivation theories include Maslow’s Hierarchy of Needs (fulfilling basic to self-
actualization needs), Herzberg’s Two-Factor Theory (hygiene vs. motivators), and
Expectancy Theory (reward-based motivation).
What are the key performance evaluation criteria used to assess salesforce
effectiveness?
Key criteria include sales revenue, customer acquisition and retention rates, conversion
rates, and customer satisfaction feedback.
