,Module 1
Q1: Discuss the 4 key objectives of a sales department, giving an example for each.
• Generating customers and converting sales—The main goal of a sales department is to
produce sales. But this must be done efficiently and inexpensively. Sales departments
should always be thinking about better conversion rates. For example, if Anika talks to 10
potential customers today and 2 of them buy the product, she was able to convert 20% of
her customers. Thus, her conversion rate is 20%. Better conversion rates translate into
spending less money on customer conversion, which in turn results in higher profits for a
company. Therefore, efficient sales departments are always looking to improve their
conversion rates.
• Retaining current customers—As was discussed before, customer loyalty is imperative
for business longevity, and the sales team should strive to retain customers. Remember
what gave Anika the drive to be in sales? Building customer trust and relationships was
her impetus to stay in sales. Retaining customers is a crucial role of the sales team
because it costs businesses more to attract new customers than to keep existing ones.
Building a relationship with customers involves making a connection by listening to and
trying to provide honest answers and viable solutions for customers' needs and wants. To
provide these answers and solutions, the salesperson needs to adapt the sales process to
each customer. These concepts will be discussed in more detail later in this module.
• Developing a sales forecast—Sales departments are responsible for determining how
much product can be sold during a specific time period and at what price. Businesses use
this forecast to develop an operational budget and to determine potential profitability.
(More about data will be discussed later in this lesson.) Sales forecasting helps companies
determine how to manage their workforce, production, and financial resources to operate
efficiently.
• Ensuring product-market fit—The sales function needs to work closely with marketing to
ensure the product is meeting a need for the target market and that the product is being
promoted correctly to generate a satisfactory level of sales.
Q2: Define Customer Relationship Management (CRM)? Identify few goals of CRM.
Processes implemented by a company to handle its contact with customers with the goal of creating a
unified customer experience to maximize retention.
• Capture new leads and move them through the sales process
• Support and manage relationships with current customers to maximize the lifetime value
of those relationships to the company
• Boost productivity and lower the overall costs of marketing, sales, and account
management
Q3: What are the four elements that make up ethical behavior within an organization?
, • A written code of ethics and standards
• Ethics training to executives, managers, and employees
• Availability of advice on ethical situations (advice lines or ethics offices)
• A system for confidential reporting
Q4: What is the relationship between sales and marketing?
Marketing attracts prospective customers to the business while sales attempt to convert these
prospects into paying customers.
Q5: Describe the buyer’s journey?
• A—Attention
• I—Interest
• D—Desire
• A—Action
Q6: Identify differences between Transactional, and Relationship selling?
• Transactional selling is a sales strategy that involves focusing on achieving quick sales
without a significant attempt to form a long-term customer relationship. Relationship
selling focuses on having sales representatives form well-established associations with
consumers to promote repeat purchases.
Q7: How does the Social Style Matrix help in Adaptive selling?
• Adaptive selling is an approach in which the salesperson customizes the selling style to
match the situation and the customer's social style as described by the social style matrix.
• The social style matrix describes how people are different depending on their style,
perceptions, and approaches to communication and behavior. Each of the social styles has
specific characteristics that are important to remember as you prepare and present your
sales presentation.
Q8: Define Customer lifetime value (CLV)? How is CLV calculated?
A prediction of the net profit attributed to the entire future relationship with a customer.
Dollar value of purchase × gross profit percent × number of purchases
Q9: When a Business sells at a no loss no profit, for e.g. a company invests $20/- in making a product
and then sells it to customers at $20/-, what is the Return on Investment (ROI)?
, Where:
• Net Profit = Revenue - Cost
• Investment = Cost of making the product
In this case:
• The company invests $20 in making the product.
• It sells the product for $20, meaning revenue =
cost.
• Net Profit = $20 - $20 = $0
ROI= 0/20 x 100 = 0
Module 2
Q1: Identify 5 points of differences between B2B and B2C markets.
Q2: What are the different sales channels used by companies.
Q3: What is Key Account Management (KAM)? How does Pareto principle apply to KAM?