National Diploma in Sales Management

Stage I – October 04th, 2015 – Examination

Candidate’s Registration Number
(As per in the examination admission form / Student 0 0 0 0 0
ID)

st nd
Part One 1 Marker 2 Marker Final Marks
For Examiner’s use only

Examiner’s Comments Question 01

Part Two

Question No.

Question 01

Question 02

Question 03

Question 04

Question 05

Question 06

Question 07

Second Examiner’s Comments Question 08

Question 09

Question 10

Part Three

Question No.

Question 01

Question 02

Question 03

Question 04

Total
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 tick the selected answer in
the given box 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 2 of 14
 PART ONE
Read the question and select the most appropriate answer
Tick your choice in the given space

Question 01

Question 1.1

Recruitment means:

a. Job placement
b. Giving a job for qualified candidates
c. Discovering potential applicants who are the best fit for vacancies
d. Process of searching candidate

Question 1.2

The most important step in staffing is:

a. Requiting
b. Selecting
c. Hiring
d. Manpower planning

Question 1.3
Job analysis is:

a. Preparing staff recruitments

b. Designing the organisation structure
c. Prepare job descriptions
d. Designing the job requirement list

Question 1.4
The foremost quality of a successful sales person is:

a. Intelligence
b. Leadership quality
c. Communication skills and self-discipline
d. Linguistic Ability

Page 3 of 14
Question 1.5
Job specification means:

a. Reviewing the job description

b. Study the history of a sales person
c. interviewing the customers
d. Searching for candidates through internal and external sources

Question 1.6
The most important test conducted at a selection interview is:

a. Intelligence test
b. Aptitude Test
c. Interest Test
d. Personality test

Question 1.7
A major element of a promotional mix is:

a. Marketing research and reporting

b. Personal selling
c. Product design
d. Negotiating a distribution channel

Question 1.8
Prospecting, pre-approach, approach, presentation, close, and follow-up is called the
process of:

a. Product marketing process

b. Sales response function
c. Personal selling process
d. Consumer purchase decision process

Question 1.9
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

Page 4 of 14
Question 1.10
An objection is a concern or question raised by the buyer. Objections happen:

a. During the sales presentation

b. When trying to obtain commitment
c. After sales
d. All of the above

Question 1.11
AIDA stands for awareness, __________, desire and __________:

a. Interest, action
b. Intensity, appeal
c. Involvement, action
d. Involvement, appeal

Question 1.12
If a company's objective were to reach masses of buyers that were geographically
spread at a low cost per contact, the company would likely choose which of the
following promotion forms:

a. Advertising
b. Personal selling
c. Public relations
d. None of the above

Question 1.13
Salesperson learns as much as possible about a prospective customer before making a
sales call by:

a. Prospecting
b. Pre-approach
c. Approach
d. Handling objections

Question 1.14
The approach used by a sales person who understands the exact nature of the problem
and persuades the prospect to buy the product; is called:

a. Problem-solving approach
b. Team selling approach
c. Customer relationship-based approach
d. Consultative approach

Page 5 of 14
Question 1.15
A sales territory is defined as?

a. Grouping of customers and prospects assigned to an individual salesperson or for a

sales unit (Geographical or not)
b. Segmenting individual salespersons for geographical units
c. Grouping of prospects assigned to different business (Geographical or not)
d. Identifying the target sales areas and going after the sales targets

Question 1.16

The three steps of target marketing in sales management are:

a. Segmentation, branding and sales strategy

b. Segmentation, targeting and positioning
c. Sales targets, sales peoples and sales incentives
d. Selling and targeting the competition

Question 1.17
The main reasons and benefits of sales territory management are:

a. Customer coverage, non-control of selling expenses and time, enable better

evaluation of sales force performance, increase sales force effectiveness and profit
performance
b. Increase market share, customer coverage, control selling expenses and time, enable
better evaluation of sales force performance, increase sales force effectiveness and
profit performance
c. Increase market share, customer coverage, control selling expenses and time, unable
to evaluate sales force performance, increase sales force effectiveness and profit
performance
d. None of the above

Question 1.18
The key areas that need attention when building sales territories are:

a. Right balance, number of resources allocated, right mix of sales team members, have
the right cost benefit analysis done for each of the identified territory
b. Right marketing mix, number of resources allocated, right mix of sales team
members, have the right cost benefit analysis done for each of the identified territory
c. Right balance, having the right advertising budget allocated, right mix of sales team
members, have the right cost benefit analysis done for each of the identified territory
d. Right balances, number of resources allocated, right sales mix of members, ignore the
cost benefit analysis done for each of the identified territory

Page 6 of 14
 Question 1.19
The key steps in designing successful sales territories in the correct order are:

a. Look at the buying power of the market, Decide basics of the territory, Assign sales
personal, Formulate coverage plans and strategies, Performance measurement
b. Select a Geographical base unit, Look at the buying power of the market, Decide
basics of the territory and assign sales personal, Performance measurement
c. Select a Geographical base unit, Look at the buying power of the market, Decide
basics of the territory
d. Assign sales personal, Formulate coverage plans and strategies, Performance
measurement

Question 1.20
The two territory build up methods used by a sales manager are:

a. Market build-up method and sales breakdown method

b. Market penetration method and sales breakdown method
c. Market skimming method and sales breakdown method
d. Market rolling build-up method and sales breakdown method

Question 1.21
What is known as a sales organisation?

a. An organisation that entails in organizing its sales force to facilitate the act of selling
and distributing a product
b. An organisation that pushes its sales force to facilitate the act of selling and
distributing a product
c. An organisation that facilitate the act of selling and distributing a product
d. An organisation that sells a product at the lowest price and entails its sales force to
facilitate the act of selling and distributing a product

Question 1.22
The key elements of a sales organisational structure are:

a. Product Sales Force, Customer Sales Force, Functional Sales Force and Complex Sales
Force Structure
b. Territorial Sales Force, Customer Sales Force, Functional Sales Force and Complex
Sales Force Structure
c. Territorial Sales Force, Product Sales Force, Customer Sales Force, Complex Sales
Force Structure
d. Territorial Sales Force, Product Sales Force, Customer Sales Force, Functional Sales
Force and Complex Sales Force Structure

Page 7 of 14
Question 1.23
The key principles of developing a sales organisation are:

a. Span of Control, Unity of Command, Stability and Continuity, Centralization and

Decentralization, Line and Staff Positions, Coordination and Integration,
Specialization
b. Unity of Command, Stability and Continuity, Centralization and Decentralization, Line
and Staff Positions, Coordination and Integration, Specialization
c. Span of Control, Unity of Command, Line and Staff Positions, Coordination and
Integration, Specialization
d. Span of Control, Unity of non-command, Stability and Continuity, Centralization and
Decentralization, Coordination and Integration, Specialization

Question 1.24

Key methods of calculating the size of a sales force are:

a. Workload Approach, Sales Potential or Breakdown Method, Incremental Method

b. Sales potential or breakdown method, Incremental method
c. Work charter approach, Sales potential or breakdown method, Incremental method
d. Workman ship approach, Sales target or breakdown method, Incremental method

Question 1.25

Most important step in a staff selection process is:

a. Screening resumes and making application blank
b. Application bank and Initial Interview
c. Psychological testing and reference checks
d. Initial Interviews and Intensive interview

Question 1.26

A demerit of conducting an unstructured interview is:

a. Aggravating candidate
b. Waste of time & resources
c. Happiness among candidates
d. Revels hidden, but important information

Question 1.27

Sales etiquette is best explained by:

a. Laws prevailing in sales organisation

b. Manners to be adhere in sales organisation
c. Societal expectation on how to conduct a sale
d. Advice for sales people to learn from general public

Page 8 of 14
Question 1.28

The stage in personal selling process that searches for and qualifies potential customers is called:

a. Prospecting
b. Pre approach
c. closing
d. follow up

Question 1.29

Products bought by organisations for further processing or for use for business.

a. Consumer products
b. Services
c. Industrial products
d. Specialty products

Question 1.30

Personal selling would be most appropriate for which of the following products?

a. Sri Lankan air ticket from Sri Lanka to Dubai

b. Honda CR-V SUV car
c. Mars bar
d. Four Packets of Maggi noodles

Question 1.31

‘Inside Sales people’ refers to:

a. Sales people remain in their places and doing sales

b. Non retail sales people
c. Sales men selling to individuals
d. Door to door sales people

Question 1.32

Important first step in the strategy formation process is:

a. Development of Sales plan

b. Development of corporate mission statement
c. Development of a marketing plan
d. Development of a communication plan

Page 9 of 14
Question 1.33

Fill in the blank with most appropriate term:

Sales people play a critical role in __________:

a. Diffusion of innovation
b. Diffusion of competition
c. Diffusion of price discrimination
d. All of the above

Question 1.34

Term ‘economic stimuli’ is used on:

a. Consumers
b. Sales people
c. Politicians
d. Economists

Question 1.35

Defining business units is often called:

a. Strategic business units

b. Strategic distribution plan
c. Strategic communication plan
d. None of the above

Question 1.36

Organisational buyer behaviour can be viewed as a:

a. Buying process
b. Buying power
c. Buyer will power
d. All of the above

Question 1.37

Training sales people is a:

a. Waste of resources
b. Waste of money
c. Discourage people
d. Useful for the organisation

Page 10 of 14
Question 1.38

A sales manager of a sales organisation is responsible for its:

a. Sales revenue
b. Manpower recruitment
c. Maintaining discipline among the staff
d. None of the above

Question 1.39

A bookkeeper is a term used for:

a. Salesmen who maintain sales records

b. A book which contains all sales records
c. An employee who records its transactions such as sales, purchases, payroll, collection
of accounts receivable, payment of bills, etc.
d. None of the above

Question 1.40

Fill in the blanks with appropriate words given below.

Angry consumer should be handled __________ by the company.

a. Arrogantly
b. With Care
c. Without much care
d. By handing them over to Police

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

Page 11 of 14
 PART TWO
Answer all questions in the given space

Question 02

Outline four (04) key benefits of sales territories to an organisation.

I. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
II. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
III. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
IV. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
(04 Marks)
Question 03

Describe four (04) advantages of setting up a sales organisation for an FMCG

marketer.

I. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
II. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
III. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
IV. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
(04 Marks)

Page 12 of 14
Question 04

Outline two (02) sales organisational structures that an organisation can consider
establishing.
I. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
II. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
(04 Marks)
Question 05

List two (02) personal communication methods you can use in personal selling.

III. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
IV. ………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
(04 Marks)
Question 06

List five (05) methods of prospecting used in a sales process.

I. ………………………………………………………………………………………………………………………….
II. ………………………………………………………………………………………………………………………….
III. ………………………………………………………………………………………………………………………….
IV. ………………………………………………………………………………………………………………………….
V. ………………………………………………………………………………………………………………………….

(04 Marks)

(4 Marks x 05 Questions)
(Total of 20 Marks)

Page 13 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 07

There are two ways that an organisation can look at setting up its territory planning
strategy. Briefly explain these two (02) strategies and their key components.

(20 Marks)
Question 08

Explain what is product and service marketing. Discuss with examples.

(20 Marks)
Question 09

“Personal selling is an important element in the promotional mix” Discuss with examples.

(20 Marks)
Question 10

One of the key elements in developing a sales organization is to get the main principles in
line with the business objectives of the origination, in this context explain what is “sales
organization” with five (05) key principles with an example of your choice.

(20 Marks)

(20 Marks x 2 Questions)

(Total of 40 Marks)

(Total 100 Marks)

Page 14 of 14