Discuss the 4 key objectives of a sales department, giving an example for each. (Page 8)
❖ Generating customers and converting sales- 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- customer loyalty is imperative for business longevity, and the sales team should strive
to retain customers.
❖ Developing a sales forecast- how much product can be sold during a specific time period and at what price. 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
Define Customer Relationship Management (CRM)? Identify a few goals of CRM. (Page 8)
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
What are the four elements that make up ethical behavior within an organization? (Page 9)
❖ 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
What is the relationship between sales and marketing? (Page 10)
Sales incorporates actually selling the company's products or service to its customers. Marketing is the process of
communicating the value of a product or service to customers so the product or service sells.
Describe the buyer’s journey? (Page 10)
AIDA describes the "buyer's journey" largely from the marketer's perspective:
❖ A—Attention
❖ I—Interest
❖ D—Desire
❖ A—Action
Identify differences between Transactional, and Relationship selling? (p11)
Transactional selling focuses on short-term, often single, transactions. Alternately, relationship selling is more focused on
long-term relationship building to keep customers satisfied and consequently convince them to return and make multiple
purchases.
How does social style matrix help in Adaptive selling?
law of psychological reciprocity. The law states that when you adapt to someone's style, that person will move toward your
style. In short, you are inspiring trust by acting according to the old adage of the golden rule: treat others the way you
want to be treated.
Define Customer lifetime value (CLV)? How is CLV calculated? (p12)
current value of all future business from a customer throughout the customer's relationship with the organization.
Dollar value of purchase × gross profit percent × number of purchases
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?
0% break even
ROI of 0% = point at which you break even—For example, if you buy something for $10 and sell it for $10, your ROI is
0%, and therefore you broke even.
Identify 5 points of differences between B2B and B2C markets. (p16)
, What are the different sales channels used by companies? (p16)
B2B and B2C markets comprise distribution channels such as company-direct and indirect through retailers, wholesalers,
distributors, or agents or brokers.
What is Key Account Management (KAM)? How does Pareto principle apply to KAM? (p17)
strategic approach to help an organization develop and maintain strong business relationships based on account
awareness. KAM is the process of distinguishing a portfolio of accounts (customers) based on a set of criteria of strategic
importance to the company's long-term success. Then internal resources are allocated to deliver services or products
tailored to the customers' individual needs. KAM involves developing and maintaining long-term, sustainable, and mutually
beneficial relationships with these key accounts. the Pareto principle (also known as the rule of 80/20) states that the ratio
between cause and effect is 80:20. 80% of effects come from 20% of causes. applied to sales, it would say that
approximately 80% (or a large part) of a company's sales is generated from 20% (or a relatively small number) of
customers. If the significant portion of a company's revenue is generated by a relatively small number of clients, naturally
this 20% must be treated differently than those clients who purchase the services or products of the company from time to
time. KAM is an effective tool for distinguishing from this 20% those clients of strategic importance for the company and
engaging with them in a deeper and more personalized relationship
Identify the difference between power skills and hard skills of salespeople. (p 18)
Soft skills (power skills) are non-quantifiable, personal habits that are developed over time and affect interactions with
others. Hard skills are quantifiable abilities that can usually be learned through training materials such as product
knowledge.
What are four essential skills needed for any salesperson to do the job well? (p 18)
❖ Ability to build rapport- It is essential to find a way to relate to the customer and show genuine concern for the
customer's needs during each interaction. Building strong relationships leads to increased trust between the
customer and salesperson and creates more opportunities for increased sales and referrals.
❖ Time management- It is vital to remember that time is essential. A salesperson should recognize that the customer's
time is valuable and limited, as is the salesperson's own time.
❖ Ability to conduct research- A salesperson must have accurate information about clients, market trends, rival
solutions, and other BI. Being able to conduct research and find reliable information enables a salesperson to make
better decisions, engage the right customers at the best time, and finalize sales.
❖ Critical thinking and problem-solving- Critical thinking afford the ability to process the data by sifting through the
numbers for essential pieces of information to use in the sales process.
Identify the six steps in the sales process. Give at least two characteristics in each of the six steps. (p 19)
❖ Prospecting and qualifying- Before planning a sale, a salesperson conducts research to identify the people or
companies that might be interested in the product. Research and qualify
❖ Approach- After identifying a prospect, salespeople explain the reason for wanting an appointment and set a
specific date and time. First impression and rapport
❖ Presenting and demonstrating- the presentation is where the research is rewarded and the salesperson's idea for
the prospect comes to fruition.
❖ Handling objections- After you have made your sales presentation, it is natural for your customer to hesitate or have
some concerns. These are called objections.
❖ Closing the sale- Eventually, if your customer is convinced your product will meet the needs of the business, you
close by agreeing on the terms of the sale and finishing up the transaction. Signed contract
❖ Generating customers and converting sales- 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- customer loyalty is imperative for business longevity, and the sales team should strive
to retain customers.
❖ Developing a sales forecast- how much product can be sold during a specific time period and at what price. 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
Define Customer Relationship Management (CRM)? Identify a few goals of CRM. (Page 8)
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
What are the four elements that make up ethical behavior within an organization? (Page 9)
❖ 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
What is the relationship between sales and marketing? (Page 10)
Sales incorporates actually selling the company's products or service to its customers. Marketing is the process of
communicating the value of a product or service to customers so the product or service sells.
Describe the buyer’s journey? (Page 10)
AIDA describes the "buyer's journey" largely from the marketer's perspective:
❖ A—Attention
❖ I—Interest
❖ D—Desire
❖ A—Action
Identify differences between Transactional, and Relationship selling? (p11)
Transactional selling focuses on short-term, often single, transactions. Alternately, relationship selling is more focused on
long-term relationship building to keep customers satisfied and consequently convince them to return and make multiple
purchases.
How does social style matrix help in Adaptive selling?
law of psychological reciprocity. The law states that when you adapt to someone's style, that person will move toward your
style. In short, you are inspiring trust by acting according to the old adage of the golden rule: treat others the way you
want to be treated.
Define Customer lifetime value (CLV)? How is CLV calculated? (p12)
current value of all future business from a customer throughout the customer's relationship with the organization.
Dollar value of purchase × gross profit percent × number of purchases
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?
0% break even
ROI of 0% = point at which you break even—For example, if you buy something for $10 and sell it for $10, your ROI is
0%, and therefore you broke even.
Identify 5 points of differences between B2B and B2C markets. (p16)
, What are the different sales channels used by companies? (p16)
B2B and B2C markets comprise distribution channels such as company-direct and indirect through retailers, wholesalers,
distributors, or agents or brokers.
What is Key Account Management (KAM)? How does Pareto principle apply to KAM? (p17)
strategic approach to help an organization develop and maintain strong business relationships based on account
awareness. KAM is the process of distinguishing a portfolio of accounts (customers) based on a set of criteria of strategic
importance to the company's long-term success. Then internal resources are allocated to deliver services or products
tailored to the customers' individual needs. KAM involves developing and maintaining long-term, sustainable, and mutually
beneficial relationships with these key accounts. the Pareto principle (also known as the rule of 80/20) states that the ratio
between cause and effect is 80:20. 80% of effects come from 20% of causes. applied to sales, it would say that
approximately 80% (or a large part) of a company's sales is generated from 20% (or a relatively small number) of
customers. If the significant portion of a company's revenue is generated by a relatively small number of clients, naturally
this 20% must be treated differently than those clients who purchase the services or products of the company from time to
time. KAM is an effective tool for distinguishing from this 20% those clients of strategic importance for the company and
engaging with them in a deeper and more personalized relationship
Identify the difference between power skills and hard skills of salespeople. (p 18)
Soft skills (power skills) are non-quantifiable, personal habits that are developed over time and affect interactions with
others. Hard skills are quantifiable abilities that can usually be learned through training materials such as product
knowledge.
What are four essential skills needed for any salesperson to do the job well? (p 18)
❖ Ability to build rapport- It is essential to find a way to relate to the customer and show genuine concern for the
customer's needs during each interaction. Building strong relationships leads to increased trust between the
customer and salesperson and creates more opportunities for increased sales and referrals.
❖ Time management- It is vital to remember that time is essential. A salesperson should recognize that the customer's
time is valuable and limited, as is the salesperson's own time.
❖ Ability to conduct research- A salesperson must have accurate information about clients, market trends, rival
solutions, and other BI. Being able to conduct research and find reliable information enables a salesperson to make
better decisions, engage the right customers at the best time, and finalize sales.
❖ Critical thinking and problem-solving- Critical thinking afford the ability to process the data by sifting through the
numbers for essential pieces of information to use in the sales process.
Identify the six steps in the sales process. Give at least two characteristics in each of the six steps. (p 19)
❖ Prospecting and qualifying- Before planning a sale, a salesperson conducts research to identify the people or
companies that might be interested in the product. Research and qualify
❖ Approach- After identifying a prospect, salespeople explain the reason for wanting an appointment and set a
specific date and time. First impression and rapport
❖ Presenting and demonstrating- the presentation is where the research is rewarded and the salesperson's idea for
the prospect comes to fruition.
❖ Handling objections- After you have made your sales presentation, it is natural for your customer to hesitate or have
some concerns. These are called objections.
❖ Closing the sale- Eventually, if your customer is convinced your product will meet the needs of the business, you
close by agreeing on the terms of the sale and finishing up the transaction. Signed contract
