Q.1 Which of the following best defines sales management?
Managing financial accounts of a company
Planning, directing, and controlling the personal selling activities of a firm
Overseeing the company's production process
Managing customer complaints only
Explanation - Sales management involves planning, directing, and controlling the personal selling activities to achieve the firm's sales objectives.
Correct answer is: Planning, directing, and controlling the personal selling activities of a firm
Q.2 Which is a key function of a sales manager?
Product development
Recruiting and training the sales team
Managing IT infrastructure
Financial auditing
Explanation - A sales manager is responsible for recruiting, training, motivating, and evaluating the sales team to achieve sales targets.
Correct answer is: Recruiting and training the sales team
Q.3 What is 'territory management' in sales?
Managing the company’s global finances
Dividing sales regions among sales personnel
Tracking marketing campaigns
Overseeing production schedules
Explanation - Territory management involves dividing sales regions and allocating responsibilities to ensure optimal coverage and performance.
Correct answer is: Dividing sales regions among sales personnel
Q.4 Which metric measures the effectiveness of a salesperson?
Customer Satisfaction Index
Sales revenue achieved vs target
Product defect ratio
Website traffic
Explanation - Sales revenue achieved compared to the target indicates how effective a salesperson is in achieving assigned goals.
Correct answer is: Sales revenue achieved vs target
Q.5 Which technique is used to understand customer needs during a sales call?
Consultative selling
Cold calling
Email marketing
Direct advertising
Explanation - Consultative selling focuses on understanding customer requirements and providing solutions that meet their needs.
Correct answer is: Consultative selling
Q.6 CRM stands for?
Customer Relationship Management
Customer Revenue Metrics
Client Resource Monitoring
Consumer Retention Model
Explanation - CRM systems help manage interactions with current and potential customers to improve business relationships.
Correct answer is: Customer Relationship Management
Q.7 Which of the following is a primary objective of sales forecasting?
Determine market trends
Estimate future sales to plan resources
Hire new employees
Design new products
Explanation - Sales forecasting helps in estimating future sales to plan inventory, workforce, and production effectively.
Correct answer is: Estimate future sales to plan resources
Q.8 A sales quota is best described as:
A financial reward for employees
A target sales figure set for salespeople
A type of sales discount
A product pricing strategy
Explanation - Sales quotas are targets assigned to sales personnel to achieve during a specific period.
Correct answer is: A target sales figure set for salespeople
Q.9 What is the purpose of a sales pipeline?
Track potential sales opportunities
Monitor employee attendance
Assess production efficiency
Measure marketing budget usage
Explanation - A sales pipeline visualizes stages in the sales process to track opportunities and forecast revenue.
Correct answer is: Track potential sales opportunities
Q.10 Which of the following is a push strategy in sales?
Advertising to end consumers
Personal selling to wholesalers or retailers
Content marketing campaigns
Customer loyalty programs
Explanation - Push strategy involves pushing the product through distribution channels to reach the consumer, often through intermediaries.
Correct answer is: Personal selling to wholesalers or retailers
Q.11 What is 'upselling' in sales?
Selling the same product repeatedly
Encouraging customers to buy a higher-end product
Offering free products to customers
Reducing product prices to increase sales
Explanation - Upselling involves persuading customers to purchase more expensive or premium products.
Correct answer is: Encouraging customers to buy a higher-end product
Q.12 Which factor is most critical for building long-term customer relationships?
Low pricing
Prompt customer service and trust
High advertising spend
Frequent discounts
Explanation - Customer trust and responsive service are key for long-term relationships, more than just pricing or promotions.
Correct answer is: Prompt customer service and trust
Q.13 Which type of selling is used when a salesperson guides the customer through a solution?
Transactional selling
Consultative selling
Telemarketing
Direct mail selling
Explanation - Consultative selling focuses on understanding the customer's needs and providing tailored solutions.
Correct answer is: Consultative selling
Q.14 Which of these is a common KPI for sales performance?
Employee satisfaction score
Sales conversion rate
Website uptime
Production efficiency
Explanation - Sales conversion rate measures how effectively leads are converted into customers, a key performance indicator in sales.
Correct answer is: Sales conversion rate
Q.15 Which of the following is an example of a B2B sales channel?
Selling directly to retail customers
Selling to other businesses
Selling to individual consumers online
Selling through social media influencers
Explanation - B2B (Business-to-Business) sales involve transactions between companies rather than individual consumers.
Correct answer is: Selling to other businesses
Q.16 Which concept emphasizes the alignment of sales and marketing teams?
Smarketing
Upselling
Direct selling
Market segmentation
Explanation - Smarketing is the integration of sales and marketing teams to improve lead conversion and revenue.
Correct answer is: Smarketing
Q.17 What is a 'cold call' in sales?
Contacting a customer without prior interaction
Following up on an existing lead
Calling only loyal customers
Setting up internal team meetings
Explanation - Cold calling is reaching out to potential customers who have not expressed prior interest.
Correct answer is: Contacting a customer without prior interaction
Q.18 Which type of incentive motivates a salesperson based on performance?
Fixed salary
Commission
Medical benefits
Paid vacation
Explanation - Commissions directly tie rewards to sales performance, motivating sales personnel to achieve targets.
Correct answer is: Commission
Q.19 What is the main purpose of a sales funnel?
To create brand awareness
To visualize stages from lead generation to closing
To hire sales staff
To calculate taxes
Explanation - A sales funnel helps track leads through stages like prospecting, nurturing, and closing.
Correct answer is: To visualize stages from lead generation to closing
Q.20 Which of the following is considered a consultative selling skill?
Listening to understand customer needs
Aggressive discounting
Cold emailing
Mass advertising
Explanation - Active listening is a core skill in consultative selling to identify the best solutions for the customer.
Correct answer is: Listening to understand customer needs
Q.21 Sales pipeline stages often include:
Prospecting, qualifying, presenting, closing
Advertising, branding, promoting, selling
Planning, executing, auditing, reporting
Recruiting, training, supervising, rewarding
Explanation - The sales pipeline outlines the sequential steps a lead goes through before a sale is completed.
Correct answer is: Prospecting, qualifying, presenting, closing
Q.22 Which of the following best describes 'cross-selling'?
Selling a different product to an existing customer
Selling the same product repeatedly
Selling discounted products to new customers
Selling through multiple channels
Explanation - Cross-selling aims to increase sales by offering related or complementary products to current customers.
Correct answer is: Selling a different product to an existing customer
Q.23 Which tool helps track sales activities and customer interactions digitally?
ERP system
CRM software
Accounting software
Inventory management system
Explanation - CRM software enables tracking of sales activities, customer interactions, and helps manage relationships effectively.
Correct answer is: CRM software
Q.24 In sales, the term 'closing' refers to:
Ending the sales day
Securing the customer's agreement to purchase
Terminating low-performing salespeople
Completing marketing campaigns
Explanation - Closing is the final step in the sales process where the deal is confirmed and the customer commits to buy.
Correct answer is: Securing the customer's agreement to purchase