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Study Qs
Sales Management (Western Governors University)
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PD099 Sales Management:
Study Questions per Learning Objectives / Lessons.
Competency 1 (CoS Unit 2): Selling and Buying: The graduate explains the relationship of sellers
and buyers within the sales management process to support an organization’s business goals.
Module 1 Sales Role: The value of the sales role to achieve sales goals.
Lesson / LO 1: Describe the role of sales in an organization.
Study Question: Discuss the 4 key objectives of a sales department, giving an example for each.
1. Generate revenue
2. Forecast sales
3. Product market fit
4. Dynamic and ethics
Study Question: Define Customer Relationship Management (CRM)? Identify few goals of CRM.
Personal sales,
Study Question: 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
Lesson / LO 2: Describe the relationship between sales and marketing.
Study Question: What is the relationship between sales and marketing?
They must collaborate. The sales function is a part of the promotional part of marketing. Personal element is one of those
connections as well. The customer moves from seeing marketing to moving to talking to sales about a product or service.
Both focus on customer needs.
Study Question: Describe the buyer’s journey?
AIDA buyer journey FUNNEL model ( attention, interest, desire, action)
Lesson / LO 3: Describe the value of relationship selling.
Study Question: Identify differences between Transactional, and Relationship selling?
RELATIONSHIP selling is if you establish a relationship for ongoing selling for a large account for example
Transactional is usually a one time purchase like selling on Ebay
Adoptive is a more consultative type of sale
Study Question: How does Social style matrix help in Adaptive selling?
Lesson / LO 4: Describe the value creation process.
Study Question: Define Customer lifetime value (CLV)? How is CLV calculated?
Value Proposition – a positioning statement – convices a cuonsumer that one product will offer more value or solve a
problem better than another.
Clear – short and direct – immediately identifies both the offering and the value/benefit.
Compelling: Conveys the benefit in a way that motivates the buyer to act
Differentiating – Sets the offering apart or differentiates it from other offerings.
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Customer Lifetime Value - current value of all future business from a customer throughout the customers
relationship with the organization.
o Customer lifetime Value = $ of Purchases x Gross profit % x # of purchases
o Example:
$75.00 x.30 =22.50X1 (purchase).-- $22.50 (CLV)
o Example 2: Customer buys car for $35,000 @ 20% profit – comes back 2 more times and buys another
car for $48,000 @ 10% and another for $52,000 @ 18%
(35000*.20*1)+(48000*.10*1)+(52000*.18*1)=21,160 (CLV)
Return on Investment:
ROI = Net Profit / Investment $ x 100
EXAMPLE: You bought a car for $2,500 and then sold it for $3,200. Your net profit was $700. Your
ROI is 28%. This means you got back all the money you invested plus 28%.
o Net Profit = (II) x 100 = 28%
Study Question: 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?
Module 2 Sales Practices: Sales practices used to achieve sales goals.
Lesson / LO 5: Compare the business-to-business (B2B) and business-to-consumer (B2C) selling markets.
Study Question: Identify 5 points of differences between B2B and B2C markets.
(b2b) business to business is relatively few potential customers, larger purchases (purchasing for production or sale to
many consumers), longer selling cycle, multiple influencers and decision makers, more difficult to identify influences and
decision makers
(b2c) business to customer- many customers, relatively small purchases (for personal or for family or friends), short
selling cycles, less influencers and decision makers, easier to identify influencers and decision.
Study Question: What are the different sales channels used by companies.
Direct channel= producer to consumer
Retail channe=l producer to retailer to consumer
Wholesale channel= producer to wholesale or distrubuter to retailer to consumer
Agent channel = producer to agent/broker, to wholesale or distibuter to retail to consumer
Lesson / LO 6: Describe the forms of account structure.
Study Question: What is Key Account Management (KAM)? How does Pareto principle apply to KAM?
(KAM)80/20 rule where 80% of sales come from 20% of customers so (KAM) IS handling the 20% of customers.
Kam account gets phone call or physical visit vs a letter sent to other 80%
Lesson / LO 7: Describe professional traits and skills needed in sales and sales management
Study Question: Identify the difference between power skills and hard skills of sales people.
sales
Power skills (soft skills) empathy for customer, serve the customer not doing them wrong
Hard skill (have product or service knowledge)
Time management skills ( filter talking to the right sales clients not wasting to much time with the wrong customer
Overall skills – build trust with customer, manage expectations
Sales management
Main focus is keeping sales people in aline with the company goals and applying the stratagey the company decided on
Downloaded by Derek wills ()
Study Qs
Sales Management (Western Governors University)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Derek wills ()
, lOMoARcPSD|15606463
1
PD099 Sales Management:
Study Questions per Learning Objectives / Lessons.
Competency 1 (CoS Unit 2): Selling and Buying: The graduate explains the relationship of sellers
and buyers within the sales management process to support an organization’s business goals.
Module 1 Sales Role: The value of the sales role to achieve sales goals.
Lesson / LO 1: Describe the role of sales in an organization.
Study Question: Discuss the 4 key objectives of a sales department, giving an example for each.
1. Generate revenue
2. Forecast sales
3. Product market fit
4. Dynamic and ethics
Study Question: Define Customer Relationship Management (CRM)? Identify few goals of CRM.
Personal sales,
Study Question: 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
Lesson / LO 2: Describe the relationship between sales and marketing.
Study Question: What is the relationship between sales and marketing?
They must collaborate. The sales function is a part of the promotional part of marketing. Personal element is one of those
connections as well. The customer moves from seeing marketing to moving to talking to sales about a product or service.
Both focus on customer needs.
Study Question: Describe the buyer’s journey?
AIDA buyer journey FUNNEL model ( attention, interest, desire, action)
Lesson / LO 3: Describe the value of relationship selling.
Study Question: Identify differences between Transactional, and Relationship selling?
RELATIONSHIP selling is if you establish a relationship for ongoing selling for a large account for example
Transactional is usually a one time purchase like selling on Ebay
Adoptive is a more consultative type of sale
Study Question: How does Social style matrix help in Adaptive selling?
Lesson / LO 4: Describe the value creation process.
Study Question: Define Customer lifetime value (CLV)? How is CLV calculated?
Value Proposition – a positioning statement – convices a cuonsumer that one product will offer more value or solve a
problem better than another.
Clear – short and direct – immediately identifies both the offering and the value/benefit.
Compelling: Conveys the benefit in a way that motivates the buyer to act
Differentiating – Sets the offering apart or differentiates it from other offerings.
Downloaded by Derek wills ()
, lOMoARcPSD|15606463
2
Customer Lifetime Value - current value of all future business from a customer throughout the customers
relationship with the organization.
o Customer lifetime Value = $ of Purchases x Gross profit % x # of purchases
o Example:
$75.00 x.30 =22.50X1 (purchase).-- $22.50 (CLV)
o Example 2: Customer buys car for $35,000 @ 20% profit – comes back 2 more times and buys another
car for $48,000 @ 10% and another for $52,000 @ 18%
(35000*.20*1)+(48000*.10*1)+(52000*.18*1)=21,160 (CLV)
Return on Investment:
ROI = Net Profit / Investment $ x 100
EXAMPLE: You bought a car for $2,500 and then sold it for $3,200. Your net profit was $700. Your
ROI is 28%. This means you got back all the money you invested plus 28%.
o Net Profit = (II) x 100 = 28%
Study Question: 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?
Module 2 Sales Practices: Sales practices used to achieve sales goals.
Lesson / LO 5: Compare the business-to-business (B2B) and business-to-consumer (B2C) selling markets.
Study Question: Identify 5 points of differences between B2B and B2C markets.
(b2b) business to business is relatively few potential customers, larger purchases (purchasing for production or sale to
many consumers), longer selling cycle, multiple influencers and decision makers, more difficult to identify influences and
decision makers
(b2c) business to customer- many customers, relatively small purchases (for personal or for family or friends), short
selling cycles, less influencers and decision makers, easier to identify influencers and decision.
Study Question: What are the different sales channels used by companies.
Direct channel= producer to consumer
Retail channe=l producer to retailer to consumer
Wholesale channel= producer to wholesale or distrubuter to retailer to consumer
Agent channel = producer to agent/broker, to wholesale or distibuter to retail to consumer
Lesson / LO 6: Describe the forms of account structure.
Study Question: What is Key Account Management (KAM)? How does Pareto principle apply to KAM?
(KAM)80/20 rule where 80% of sales come from 20% of customers so (KAM) IS handling the 20% of customers.
Kam account gets phone call or physical visit vs a letter sent to other 80%
Lesson / LO 7: Describe professional traits and skills needed in sales and sales management
Study Question: Identify the difference between power skills and hard skills of sales people.
sales
Power skills (soft skills) empathy for customer, serve the customer not doing them wrong
Hard skill (have product or service knowledge)
Time management skills ( filter talking to the right sales clients not wasting to much time with the wrong customer
Overall skills – build trust with customer, manage expectations
Sales management
Main focus is keeping sales people in aline with the company goals and applying the stratagey the company decided on
Downloaded by Derek wills ()
