D099 Sales Management
Condensed Question → Answer Study Guide
MODULE 1 — SALES ROLE
Q1. What are the four key objectives of a sales department?
Answer
1. Generate revenue – Sales teams convert prospects into paying customers.
2. Build customer relationships – Maintaining relationships increases
retention and repeat business.
3. Gather market intelligence – Salespeople collect information about
customer needs, competitors, and market trends.
4. Support marketing strategy – Sales helps implement marketing
campaigns and communicates value propositions to customers.
Q2. What are the two common corporate structures?
Answer
1. Centralized structure
o Decision-making authority is concentrated at the top levels of
management.
o Example: Corporate headquarters makes most strategic decisions.
2. Decentralized structure
o Authority is distributed among divisions or regional managers.
o Example: Each region or division manages its own sales strategy.
Q3. What are Strategic Business Units (SBUs)?
Answer
Strategic Business Units are independent divisions within a company that
focus on a specific product line, market, or geographic area.
Example:
A global electronics company may have separate SBUs for:
• smartphones
• laptops
• home appliances
Each unit manages its own sales, marketing, and strategy.
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,Q4. What is competitive advantage and sustainable competitive
advantage?
Competitive Advantage
A factor that allows a company to perform better than competitors.
Examples:
• better product quality
• lower price
• superior customer service
Sustainable Competitive Advantage
A competitive advantage that is difficult for competitors to copy and lasts over
time.
Examples:
• strong brand reputation
• proprietary technology
• strong vendor relationships
Q5. What factors help companies develop sustainable competitive
advantage?
Key sources include:
• Information systems and distribution networks
• Unique products or innovation
• Strong supplier/vendor relationships
• Excellent customer service
• Brand reputation
Q6. What is Customer Relationship Management (CRM)?
CRM is a technology and business strategy used to manage interactions
with customers to improve relationships and increase retention.
Goals of CRM
• improve customer retention
• personalize customer experience
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, • increase sales revenue
• track customer data and interactions
Q7. What is Business Intelligence (BI)?
Business Intelligence is the process of collecting and analyzing data to
improve business decision-making.
Companies use BI to:
• analyze customer behavior
• identify sales trends
• improve planning and forecasting
• support strategic decisions
Q8. What are the key phases in the evolution of sales?
Sales practices evolved through several stages:
1. Production orientation
o focus on producing goods efficiently
2. Sales orientation
o focus on persuading customers to buy
3. Marketing orientation
o focus on understanding customer needs
4. Relationship selling
o focus on long-term customer relationships
Q9. What is a Code of Ethics?
A written set of ethical standards that guide employee behavior and
decision-making within an organization.
Companies reinforce ethical behavior through:
• ethics training
• reward systems
• reporting systems for violations
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, Q10. What are the four elements influencing ethical behavior?
1. Code of ethics
2. Ethics training
3. Reward and punishment systems
4. Reporting mechanisms (whistleblower systems)
These systems help promote ethical decision-making.
Q11. What is the relationship between sales and marketing?
Marketing and sales work together but perform different roles.
Marketing
• creates awareness
• identifies customer needs
• generates leads
Sales
• interacts directly with customers
• persuades customers to buy
• closes the sale
Marketing creates demand, sales converts demand into purchases.
Q12. What are exchanges in marketing?
An exchange occurs when two parties trade something of value.
Example:
• Customer receives a product
• Company receives money
Successful exchanges satisfy both parties’ needs.
Q13. What is the promotional mix?
The promotional mix includes five major communication tools:
1. Advertising
2. Sales promotion
3. Public relations
4. Direct marketing
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Condensed Question → Answer Study Guide
MODULE 1 — SALES ROLE
Q1. What are the four key objectives of a sales department?
Answer
1. Generate revenue – Sales teams convert prospects into paying customers.
2. Build customer relationships – Maintaining relationships increases
retention and repeat business.
3. Gather market intelligence – Salespeople collect information about
customer needs, competitors, and market trends.
4. Support marketing strategy – Sales helps implement marketing
campaigns and communicates value propositions to customers.
Q2. What are the two common corporate structures?
Answer
1. Centralized structure
o Decision-making authority is concentrated at the top levels of
management.
o Example: Corporate headquarters makes most strategic decisions.
2. Decentralized structure
o Authority is distributed among divisions or regional managers.
o Example: Each region or division manages its own sales strategy.
Q3. What are Strategic Business Units (SBUs)?
Answer
Strategic Business Units are independent divisions within a company that
focus on a specific product line, market, or geographic area.
Example:
A global electronics company may have separate SBUs for:
• smartphones
• laptops
• home appliances
Each unit manages its own sales, marketing, and strategy.
Downloaded by Great Mind ()
,Q4. What is competitive advantage and sustainable competitive
advantage?
Competitive Advantage
A factor that allows a company to perform better than competitors.
Examples:
• better product quality
• lower price
• superior customer service
Sustainable Competitive Advantage
A competitive advantage that is difficult for competitors to copy and lasts over
time.
Examples:
• strong brand reputation
• proprietary technology
• strong vendor relationships
Q5. What factors help companies develop sustainable competitive
advantage?
Key sources include:
• Information systems and distribution networks
• Unique products or innovation
• Strong supplier/vendor relationships
• Excellent customer service
• Brand reputation
Q6. What is Customer Relationship Management (CRM)?
CRM is a technology and business strategy used to manage interactions
with customers to improve relationships and increase retention.
Goals of CRM
• improve customer retention
• personalize customer experience
Downloaded by Great Mind ()
, • increase sales revenue
• track customer data and interactions
Q7. What is Business Intelligence (BI)?
Business Intelligence is the process of collecting and analyzing data to
improve business decision-making.
Companies use BI to:
• analyze customer behavior
• identify sales trends
• improve planning and forecasting
• support strategic decisions
Q8. What are the key phases in the evolution of sales?
Sales practices evolved through several stages:
1. Production orientation
o focus on producing goods efficiently
2. Sales orientation
o focus on persuading customers to buy
3. Marketing orientation
o focus on understanding customer needs
4. Relationship selling
o focus on long-term customer relationships
Q9. What is a Code of Ethics?
A written set of ethical standards that guide employee behavior and
decision-making within an organization.
Companies reinforce ethical behavior through:
• ethics training
• reward systems
• reporting systems for violations
Downloaded by Great Mind ()
, Q10. What are the four elements influencing ethical behavior?
1. Code of ethics
2. Ethics training
3. Reward and punishment systems
4. Reporting mechanisms (whistleblower systems)
These systems help promote ethical decision-making.
Q11. What is the relationship between sales and marketing?
Marketing and sales work together but perform different roles.
Marketing
• creates awareness
• identifies customer needs
• generates leads
Sales
• interacts directly with customers
• persuades customers to buy
• closes the sale
Marketing creates demand, sales converts demand into purchases.
Q12. What are exchanges in marketing?
An exchange occurs when two parties trade something of value.
Example:
• Customer receives a product
• Company receives money
Successful exchanges satisfy both parties’ needs.
Q13. What is the promotional mix?
The promotional mix includes five major communication tools:
1. Advertising
2. Sales promotion
3. Public relations
4. Direct marketing
Downloaded by Great Mind ()
