National Diploma in Sales Management

Stage I – April 21st, 2018 – Examination

Candidate’s Registration Number (As per in the examination admission form / Student

ID) 0 0 0 0 0

For Examiner’s use only

Examiner’s Comments

Second Examiner’s Comments

Part One 1st Marker 2nd Marker Final Marks

Question 01

Part Two

Question No.

Question 02

Question 03

Question 04

Question 05

Question 06

Question 07

Question 08

Question 09

Question 10

Question 11

Part Three

Question No.

Question 12

Question 13

Question 14

Question 15

Total

Page 2 of 14

Instructions to Candidates

Time: 0930 hrs – 1230 hrs Duration: Three (03) hours

There are three parts in this question paper. Part One

● This part has 40 multiple choice questions. It is a compulsory section. Candidates are expected to select the most suitable answer and underline the selected answer in the question paper itself.

Part Two

● Candidates are expected to answer the questions in the space provided in the question paper. All answers are compulsory.

Part Three

● Candidates are expected to answer only two questions out of four. ● Answers should be written in the additional supplementary answer sheets

provided and they should be attached to the question paper itself.

Other Instructions

● State your Registration Number on the front cover of the answer book and on each and every additional paper attached to it. Your name must not appear anywhere in the answer book or answer scripts.

● Always start answering a question on a new page. ● You are reminded that answers should not be written in pencil or red pen except

in drawing diagrams.

● Answer the questions using: ▪ Effective arrangement and presentation ▪ Clarity of expression

▪ Logical and precise arguments

● Illegible hand writing will be penalised.

Page 3 of 14

PART ONE

Read the question and underline the most appropriate answer

Question 01

Question 1.1

The personal selling process which identify potential customers, is referred to as:

a. Presenting

b. Demonstrating

c. Prospecting

d. Qualifying

Question 1.2

What is not an objective of the sales force structure?

a. Adaptability

b. Specialization

c. Efficiency

d. Effectiveness

Question 1.3

The top level component in a corporate strategic planning is known as:

a. Developing the mission statement

b. Market penetration

c. Market development strategy

d. Ansoff Matrix

Question 1.4

Products made visible at the place of sale is known as:

a. Point of sale promotion

b. Bundle deals

c. Sales premium

d. Advertising

Question 1.5

Which of the following is not a direct marketing communication? a. Advertising

b. Face-to-face selling

c. Kiosk marketing

d. Online marketing

Page 4 of 14

Question 1.6

Which is more complex and time consuming in B to B selling? a. Industrial selling

b. Consumer selling

c. Retailing

d. Promotions

Question 1.7

Which of the following does not in to the personal selling category? a. Service

b. Industrial

c. Retail

d. Web base

Question 1.8

A salesman who provides mostly technical knowledge as per customer requirement is termed as:

a. Technical salesman

b. Telemarketer

c. Missionary salesman

d. Order taker

Question 1.9

Identify the incorrect term which does not represent the DMU’s in the B-B buying process: a. Initiators

b. Collaborators

c. Gatekeepers

d. Influencers

Question 1.10

Which does not represent the buying strategies in industrial selling? a. Straight rebuy

b. Hand to Mouth Buying

c. Forward Buying

d. Speculative rebuy

Question 1.11

Which one represents the buying situation in an industrial selling process? a. Forward buying

b. Hand to Mouth buying

c. Modified rebuy

d. Speculative rebuy

Page 5 of 14

Question 1.12

Which one is the correct statement that indicates confusion of the sales force?

1. Complex performance appraisal procedure

2. Incomprehensible planning and procedure

a. Both statements

b. Only statement 1

c. Both statements are false

d. Only statement 2

Question 1.13

Which methods is not a determinant of the size of a sales force? a. Workload approach

b. Breakdown method

c. Incremental method

d. Buying behaviour of customer method

Question 1.14

Ideally which sales force structure should a large FMCG firm follow? a. Complex sales force structure

b. Product sales force structure

c. Functional sales force structure

d. Territorial sales force structure

Question 1.15

A strength of a SWOT components is: a. Too much indirect cost

b. Cost advantage

c. Customer loyalty

d. Skilled and knowledgeable sales people

Question 1.16

Objectives that guide a movement towards a specific direction are known as: a. Sales force

b. Quantitative

c. Forecast

d. Qualitative

Page 6 of 14

Question 1.17

Directing, motivating and compensating sales people is known as:

a. Formulation of sales plan

b. Implementation of sales plan

c. Evaluation of the sales plan

d. Control of the sales plan

Question 1.18

Market penetration strategy is used for:

a. Existing products in new markets

b. Existing products in existing markets

c. New products in new markets

d. New Products in existing markets

Question 1.19

One of the advantages of a functional sales force structure is: a. Efficient operations of each function is possible

b. Each specialization is given due weightage by the management

c. Company becomes more market driven

d. Sales force can be managed and controlled easily

Question 1.20

Fill in the blanks with appropriate words.

Delegation of _______________ and _______________ to experienced salespeople is quite common in a sales organization.

a. Implementation, evaluation

b. Authority, responsibility

c. Supervision, control

d. Processing, arranging

Question 1.21

Which of the following is not included in Ansoff matrix growth strategies? a. Market penetration

b. Development of mission statement

c. Market development

d. Diversification

Page 7 of 14

Question 1.22

What is the generic strategy which aims at niche markets? a. Focus

b. Differentiation

c. Cost leadership

d. Market penetration

Question 1.23

Divest strategy refers to: a. Investing extra money in to the company

b. Selling or liquidating the business

c. Introducing new products to new markets

d. Reaping short term benefits from the company

Question 1.24

What is not a determinant of a sales organizational structure? a. Number of geographical areas to cover

b. Number of products or services to deal with

c. Number of customers to approach

d. Salary of the sales manager

Question 1.25

What does “Span of Control” refer to when developing a sales organization structure? a. Number of subordinates that a sales manager can supervise

b. Ability to control the sales performance

c. Ability to control the cost of distribution

d. Control switch of a product of the company

Question 1.26

What does “Stability and continuity” refer to when developing a sales organization structure?

a. The company continuing its business in the future

b. Considering the talents and preference of the current employees

c. Mental stability and the level of motivation of the sales manager

d. Financial stability of the organization to continue its business

Question 1.27

What does “Unity of command” refer to in developing a sales organization structure? a. No subordinate should be responsible to more than one supervisor

b. The entire organization must work towards one goal

c. The sales manager should have a good commanding power

d. Empowering subordinates to take commanding power

Page 8 of 14

Question 1.28

Select the statement which does not describe the term sales territory: a. A geographical area

b. A group of prospective and present customers

c. An industry based territory

d. Customers in a particular sales route

Question 1.29

The two methods available for deciding basic sales territories are: a. Market penetration and diversification

b. Market penetration and market build up method

c. Market build up method and sales build up method

d. Market build up method and Sales breakdown method

Question 1.30

What is not an advantage of routing? a. It works towards getting the maximum customer coverage

b. Facilitates the implementation of territory plans

c. It suggests optimum allocation of resources

d. Develops a competitive mission statement

Question 1.31

What is not a routing design? a. Straight line design

b. Narrow line design

c. Cloverleaf design

d. Hopscotch design

Question 1.32

Scheduling refers to: a. Optimal allocation of time on selling and non-selling activities

b. Proper appointment scheduling for sales people job interviews

c. No of schedule calls in a given route

d. Preparing the event schedule for the monthly sales review meeting

Question 1.33

As per Porter’s Generic Strategies, an organization can achieve cost leadership by: a. Lowering the cost of production and distribution

b. Producing low quality products

c. Catering only to a small segment of the market

d. Following an exclusive distribution strategy

Page 9 of 14

Question 1.34

‘Adaptability’ as an objective of a sales force structure refers to: a. Ability of an organization to react quickly to any change in product or market

b. Ability to convert leads into actual sales

c. Ability to manure sales personnel within the total geographical area

d. Adaptability to new management styles

Question 1.35

What is not an advantage of a “territorial sales structure”? a. Local problems of customers can be handled speedily and adequately

b. Sales person can adapt to local conditions

c. Intensive market coverage at low cost is possible

d. Highly effective when a company is dealing with technically complex products

Question 1.36

What is the basic concept of “incremental method” when determining the size of the sales force?

a. Comparing the marginal profits with marginal selling costs with the addition of

a sales person

b. Comparing the annual salary increment of total sales force against the last year

salary

c. Comparing the annual salary increment of the sales team with the YTD growth

d. Comparing the marginal selling cost with the increase of revenue

Question 1.37

Identify what will not trigger confusion among sales force: a. Improper definitions of the mission and objectives of the organization

b. Incomplete description on customer profiles

c. Complex performance appraisal Procedure

d. Clear compensation policies and promotional scope

Question 1.38 The sales force structure in which sales representatives works to sell specific items of a product line is known as:

a. Indirect sales force structure b. Territorial sales force structure c. Customer sales force structure d. Product sales force structure

Page 10 of 14

Question 1.39

A group of experts, closing a sale together is known as: a. Consultative approach of selling b. Customer relationship-based approach c. Problem-solving approach d. Team selling approach

Question 1.40

Things to consider when making an appointment: a. Right person, right company, right place b. Right time, right location, right method c. Right person, right time, right place d. Right dress, right method, right language

(1 Mark x 40 Questions) (Total 40 Marks)

Page 11 of 14

PART TWO

Answer all questions in the given space

Question 02

List four (04) issues a sales organization would face if it is poorly managed?

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Question 03

Name sales organizational structures.

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Question 04

Give four (04) advantages of personal selling.

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Page 12 of 14

Question 05

What are the four (04) strategies in the Ansoff Matrix?

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks) Question 06

What are the four (04) rules for an effective team selling approach?

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Question 07

Write four (04) conditions when designing a sales territory.

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Question 08

What are the four (04) areas that considered when setting the objectives of sales management?

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Page 13 of 14

Question 09

Write down four (04) characteristics in “sales” as a profession?

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Question 10

What are the four (04) principle factors that can be taken into consideration when developing a sales organization?

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

Question 11

The four (04) areas a mission statement would cover are:

1. ……………………………………………………………………………………………………………………………………

2. ……………………………………………………………………………………………………………………………………

3. ……………………………………………………………………………………………………………………………………

4. …………………………………………………………………………………………………………………………………… (04 Marks)

(4 Marks x 10 Questions)

(Total of 40 Marks)

Page 14 of 14

PART THREE

Select 2 out of 4 questions and answer them in supplementary sheets. Attach your answer sheets to the question paper.

Question 12 Explain your sales team the definition of Prospecting and explain three (03) methods of prospecting could be used for a service selling organization.

(10 Marks) Question 13 You are the Head of Sales at a leading telecommunication organization and corporate sales manager reports to you. Discuss the importance sales closing step and explain him three (03) closing techniques.

(10 Marks) Question 14 Explain briefly what sales management is by highlighting its key areas of responsibilities.

(10 Marks)

Question 15 Briefly explain how evaluation and control of sales operation could be done in a sales organisation.

(10 Marks)

(10 Marks x 2 Questions) (Total of 20 Marks)

(Total 100 Marks)

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