PART ONE

Read the question and underline the most appropriate answer

1.1. Identify what is not included in objectives of sales force structure?

a) Adaptability
b) Specialization
c) Efficiency
d) Effectiveness

1.2. Identify the most top level component in corporate strategic planning?
a) Developing the mission statement.
b) Market penetration
c) Market development strategy.
d) Ansoff Matrix.

1.3. 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.

1.4 What is not included in Ansoff matrix growth strategies?

a) Market penetration
b) Development of mission statement
c) Market development.
d) Diversification.

1.5 What is the generic strategy which aims at niche markets?

a) Focus
b) Differentiation
c) Cost leadership
d) Market penetration

1.6 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.
1.7 What is not a determinant of the 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.

1.8. In developing sales organization structure “Span of Control” refers to:-

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.

1.9 In developing sales organization structure “Stability and continuity” refers to:-

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.

1.10 In developing sales organization structure “Unity of command” refers to:-

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.

1.11 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.

1.12 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 break down method.
1.13 What is not an advantage of Routing?

a) It works for 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.

1.14 What is not a Routing Design?

a) Straight line design.

b) Narrow line design.
c) Cloverleaf design.
d) Hopscotch design.

1.15 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.

1.16 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.

1.17 The basic concept of “Incremental Method” in 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.

1.18 Identify what is not an advantage of “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 company is dealing with technically complex products.
1.19 “Adaptability” in objectives of 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 in to actual sales.
c) Ability to manure sales personnel within the total geographical area.
d) Adaptability to new management styles.

1.20 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.

PART TWO–SHORT ANSWER QUESTIONS

1. What are the 4 growth strategies mentioned in Ansoff Matrix?

2. Name 4 areas which the objectives of sales management are set?
3. List down 4 issues that a company will face if the sales organization is poorly managed?
4. List down 4 principle factors you will take in to consideration when developing a sales
organization?

PART THREE–ESSAY TYPE QUESTIONS

1. Explain what is sales management and its duties?

2. Define what “Sales Territory Management” (STM) is and briefly explain 4 advantages of
proper Territory Management?