Academic Year – 75 Questions with Verified
Answers.
Q1. The primary goal of sales management is to:
A) Maximize individual salesperson commissions
B) Achieve organizational sales objectives through effective planning, direction, and
control of the sales force
C) Minimize the number of salespeople
D) Increase product prices regardless of market conditions
Answer: B
Rationale: Sales management aligns sales force activities with broader organizational
goals. The primary goal is to achieve organizational sales objectives through the
effective planning, direction, and control of the sales force .
Q2. Which of the following are key functions of sales management? (Select all that
apply)
A) Sales force recruitment and selection
B) Training and development
C) Territory design and assignment
D) Ignoring performance metrics
E) Compensation and motivation
Answer: A, B, C, E
Rationale: Performance metrics are central to control and evaluation; ignoring them is
not a valid function of sales management. Recruitment, training, territory design, and
compensation are all core functions .
, Q3. A sales strategy is best defined as:
A) A plan for advertising products
B) A plan for managing the sales force that specifies how the organization will achieve
its sales objectives
C) A budget for sales department expenses
D) A list of customer complaints
Answer: B
Rationale: Sales strategy refers to the plan for managing the sales force and specifying
how the organization will achieve its sales objectives .
Q4. Which type of selling is most appropriate for complex, customized products?
A) Transactional selling
B) Personal selling
C) E-commerce
D) Mass advertising
Answer: B
Rationale: Personal selling is most valuable for complex, customized, high-stakes
products requiring negotiation and long-term relationships. Low-cost, low-risk products
are often sold through transactional channels like mass advertising or e-commerce .
Q5. Transactional selling focuses on:
A) Building long-term relationships
B) Closing a single sale with minimal follow-up
C) Solving complex customer problems
D) Consulting with clients to identify needs
Answer: B
Rationale: Transactional selling is short-term, price-oriented, and focuses on
completing a single sale with minimal follow-up. It contrasts with relationship selling,
which emphasizes ongoing customer engagement .
, Q6. Consultative selling involves: (Select all that apply)
A) Asking diagnostic questions to uncover customer needs
B) Recommending solutions that may not directly benefit the salesperson's commission
C) Building trust through expertise
D) Pushing the highest-priced product regardless of fit
E) Long-term relationship focus
Answer: A, B, C, E
Rationale: Consultative selling focuses on diagnosing customer needs, building trust
through expertise, recommending appropriate solutions (even if not the highest
commission), and fostering long-term relationships .
Q7. Relationship selling is best defined as:
A) A sales technique focused on the interaction between buyer and salesperson rather
than price or product details
B) Selling products at the lowest possible price
C) Using automated systems to process orders
D) Focusing only on new customer acquisition
Answer: A
Rationale: Relationship selling is a sales technique that focuses on the interaction
between the buyer and the salesperson rather than the price or details of the product .
Q8. Key performance indicators (KPIs) for sales effectiveness include: (Select all
that apply)
A) Number of new prospects contacted
B) Conversion rate (leads to sales)
C) Average deal size
D) Customer acquisition cost (CAC)
E) Customer lifetime value (CLV)
, Answer: A, B, C, D, E
Rationale: All of these are common sales metrics used to evaluate sales effectiveness.
They provide a comprehensive view of sales performance from prospecting through
customer retention .
Q9. A sales manager notices that the conversion rate has dropped over three
months. The first step is to:
A) Fire the underperforming salespeople
B) Analyze data to identify root causes
C) Double the sales quota
D) Reduce the number of territories
Answer: B
Rationale: Data-driven diagnosis should always precede corrective action. The manager
should analyze conversion rates by salesperson, territory, lead source, and other
dimensions to identify root causes before implementing solutions .
Q10. Customer lifetime value (CLV) is influenced by: (Select all that apply)
A) Purchase frequency
B) Average order value
C) Customer retention rate
D) Product color
E) Gross profit margin
Answer: A, B, C, E
Rationale: Customer Lifetime Value (CLV) is calculated based on purchase frequency,
average order value, customer retention rate, and gross profit margin .
Q11. Customer Lifetime Value (CLV) is calculated as: