Sales Management - UNIT 2 Latest Premium
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
RELATIONSHIP SELLING Sales technique that focuses on the
interaction
between the buyer and the salesperson
rather than
the price or details of the product
VALUE CREATION The performance of actions that increase
the worth
of goods, services, or even a business
The goal of business is to generate revenue and profits to survive
and attain
longevity in the marketplace. It is through
the sales
department that an organization generates
revenue. Sales and marketing play a key
role in
business stability and growth.
The following are key objectives of Generating customers and converting
a sales
sales department: Retaining current customers
Developing a sales forecast
Ensuring product-market fit
,Generating customers and The main goal of a sales department is to
converting sales produce
sales. But this must be done efficiently and
inexpensively. Sales departments should
always be
thinking about better conversion rates.
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.
Retaining current customers As was discussed before, customer loyalty
is
imperative for business longevity, and the
sales
team should strive to retain customers
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.
,FUNCTIONAL STRUCTURE An organization structure that groups
employees
according to a specialized or similar set of
roles or
tasks.
As their sales increase, organizations
generally
adopt a functional structure. This structure
groups
employees into functional areas based on
expertise. These functional areas often
correspond
to stages in the value chain such as
operations,
research and development, and marketing
and
sales.1
MODULAR STRUCTURE Divides the business into small, tightly knit
strategic
business units (SBUs), which focus on
specific
elements of the organizational process.
The modular structure focuses on dividing
the
business into small, tightly knit SBUs that
focus on
specific elements of the organizational
process.
Interdependence among the units is limited
because the focus of many SBUs is more
inward
than outward and because loyalty within
SBUs
tends to be very strong.
, STRETEGIC BUSINESS UNITS A profit center that focuses on product
offering
and market segment.
An SBU is treated by corporate
headquarters as an
internal profit center. Consequently,
services are
treated as distinct products charged
directly to
customers. In this environment, sales
departments
hold both product and service sales
responsibilities and are part of each
strategic unit.
An organization can be arranged functional structure
according to a variety of structures modular structure with strategic business
that determine how the units
organization (SBUs)
will operate and perform. Two of
the
most common are
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
RELATIONSHIP SELLING Sales technique that focuses on the
interaction
between the buyer and the salesperson
rather than
the price or details of the product
VALUE CREATION The performance of actions that increase
the worth
of goods, services, or even a business
The goal of business is to generate revenue and profits to survive
and attain
longevity in the marketplace. It is through
the sales
department that an organization generates
revenue. Sales and marketing play a key
role in
business stability and growth.
The following are key objectives of Generating customers and converting
a sales
sales department: Retaining current customers
Developing a sales forecast
Ensuring product-market fit
,Generating customers and The main goal of a sales department is to
converting sales produce
sales. But this must be done efficiently and
inexpensively. Sales departments should
always be
thinking about better conversion rates.
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.
Retaining current customers As was discussed before, customer loyalty
is
imperative for business longevity, and the
sales
team should strive to retain customers
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.
,FUNCTIONAL STRUCTURE An organization structure that groups
employees
according to a specialized or similar set of
roles or
tasks.
As their sales increase, organizations
generally
adopt a functional structure. This structure
groups
employees into functional areas based on
expertise. These functional areas often
correspond
to stages in the value chain such as
operations,
research and development, and marketing
and
sales.1
MODULAR STRUCTURE Divides the business into small, tightly knit
strategic
business units (SBUs), which focus on
specific
elements of the organizational process.
The modular structure focuses on dividing
the
business into small, tightly knit SBUs that
focus on
specific elements of the organizational
process.
Interdependence among the units is limited
because the focus of many SBUs is more
inward
than outward and because loyalty within
SBUs
tends to be very strong.
, STRETEGIC BUSINESS UNITS A profit center that focuses on product
offering
and market segment.
An SBU is treated by corporate
headquarters as an
internal profit center. Consequently,
services are
treated as distinct products charged
directly to
customers. In this environment, sales
departments
hold both product and service sales
responsibilities and are part of each
strategic unit.
An organization can be arranged functional structure
according to a variety of structures modular structure with strategic business
that determine how the units
organization (SBUs)
will operate and perform. Two of
the
most common are
