National Diploma in Sales Management

Stage I – March 27th, 2016 – 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 02

Question 03

Question 04

Question 05

Question 06

Question 07

Question 08

Second Examiner’s Comments Question 09

Question 10

Question 11

Part Three

Question No.

Question 12

Question 13

Question 14

Question 15

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 16
 PART ONE
Read the question and select the most appropriate answer
Tick your choice in the given space

Question 01

Question 1.1

The exclusive representative on behalf of the manufacturer who promotes the product with
after sales service is known as:
a. Ad agency
b. Distributor
c. Wholesaler
d. Agent

Question 1.2

Extended P’s in marketing mix are:

a. Product, price, place
b. People, promotion, place
c. Product, process, physical evidence
d. People, process, physical evidence

Question 1.3

In the following list select what is not a promotional mix or communication mix attribute:
a. Advertising
b. Positioning
c. Personal Selling
d. Publicity

Question 1.4

What is the short term incentive which encourages purchase or sale of a product or service?
a. Advertising
b. Publicity
c. Public Relations
d. Sales Promotions

Page 3 of 16
Question 1.5

A disadvantage of territorial sales force structure is:

a. High cost involvement of the training and development of sales people
b. Specialisation is underemphasised
c. Geographical duplication is possible
d. High cost involvement

Question 1.6

A sales manager’s authority and influence over his team is referred as:
a. Unity of Command
b. Stability and Continuity
c. Span of Control
d. Centralisation

Question 1.7

Traditional sales organisation considered sales people as:

a. Order Taker
b. Order Canvasser
c. Salesman
d. Sales Representative

Question 1.8

What is the most suitable formula to calculate sales potential?

a. N=P/S (1+T)
b. N=S/P (1+T)
c. S= N/P (1+T)
d. P= N/S (1+T)

Question 1.9

What is the problem that leads to poor management of sales organisation?

a. Loss of sales productivity and organisational efficiency
b. Organisation will lose its capacity to generate revenue
c. Organisation will tarnish its image in front of its stakeholders
d. All of the above

Page 4 of 16
Question 1.10

Areas which will trigger confusion among sales force are:

a. Improper definitions of the mission amongst sales force
b. Unclear reporting authority, wrong sales forecast, unachievable targets and quota
c. Both a and b
d. Neither of the two

Question 1.11

One of the objectives of sales territory is:

a. To have a group of prospective and present customers
b. Provide maximum visibility of the product
c. Display sampling and conduct branding activities in different locations
d. Analyse the strengths and weaknesses of competitors more precisely and lay down
strategies to subvert competition

Question 1.12

What is the territory design where the sales person starts his journey and covers a certain
section and then restarts his coverage from where he stopped the earlier one?
a. Straight line
b. Hopscotch
c. Cloverleaf
d. None of the above

Question 1.13

Systems of transforming paper heavy sales related process to paperless formats are known
as:
a. MIS
b. CRM
c. SFA
d. e- CRM

Question 1.14

The personal selling step in which the sales person asks for an order from the customer is
classified as:

a. Shipper Approach
b. Handling Shipment
c. Closing
d. Follow up

Page 5 of 16
Question 1.15

The third step in personal selling process after completion of pre-approach step is:

a. Prospecting and qualifying

b. Handling objections
c. Approach
d. Presentation and demonstration

Question 1.16

The step in personal selling process, which consists of the first meeting between customer
and sales person, is called:
a. Qualifying
b. Prospecting
c. Follow up
d. Approach

Question 1.17

The step in the personal selling process which consists of identifying potential customers, is
classified as:
a. Presenting
b. Demonstrating
c. Prospecting
d. Qualifying

Question 1.18

The promotion technique for consumers where products are displayed and demonstrated at
the place of sale is called:
a. Point of Sale Promotion
b. Bundle Deals
c. Sales Premium
d. Advertising

Question 1.19

The sales force structure in which a sales representative works to sell specific items of a
product line is called as:
a. Indirect sales force structure
b. Territorial sales force structure
c. Customer sales force structure
d. Product sales force structure

Page 6 of 16
Question 1.20

To introduce new consumer product qualities and demonstrate it to consumers to achieve

high awareness levels; the firm will most likely make heavy use of _________ in the
promotional mix.
a. Advertising
b. Sales promotion
c. Personal selling
d. Publicity

Question 1.21

AIDAS stands for attention, _________, desire, _________ and satisfaction.

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

Question 1.22

Business to business selling is more complex and time consuming. This is called:
a. Industrial Selling
b. Consumer Selling
c. Retailing
d. Promotions

Question 1.23

Which of the following is not a category of personal selling?

a. Service
b. Industrial
c. Retail
d. Web based

Question 1.24

When a group of experts close a sale together, it is called:

a. Consultative Approach of Selling
b. Customer Relationship-based Approach
c. Problem-solving Approach
d. Team Selling Approach

Page 7 of 16
Question 1.25

All of the following are cited in the text as being forms of direct marketing communication
EXCEPT:
a. Advertising
b. Face-to-face selling
c. Kiosk marketing
d. Online marketing

Question 1.26

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

Question 1.27

The approach used by a sales person who understands the exact nature of the issue and
convinces the prospective client to buy the product; is called:
a. Problem-solving approach
b. Team selling approach
c. Customer relationship-based approach
d. Consultative approach

Question 1.28

Personal selling would be most appropriate for which of the following products?
a. Chocolate bar
b. Paper serviettes
c. New cosmetic items for women
d. Instant noodles

Question 1.29

The foremost quality of a successful sales person is:

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

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Question 1.30

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 1.31

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 sales targets

Question 1.32

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 people and sales incentives
d. Selling and targeting the competition

Question 1.33

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 1.34

Most important step in a staff selection process is:

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

Page 9 of 16
Question 1.35

A demerit of conducting an unstructured interview is:

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

Question 1.36

The important first step in the strategy formation process is:

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

Question 1.37

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. Workmanship approach, Sales target or breakdown method, Incremental method

Question 1.38

Fill in the blanks with the appropriate words.

An angry consumer should be handled _________ by the company.

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

Question 1.39

Training sales people is a:

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

Page 10 of 16
Question 1.40

The foremost quality of a successful sales person is:

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

(1 Mark x 40 Questions)

(Total 40 Marks)

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 PART TWO
Answer all questions in the given space

Question 02
List four (04) selling approaches with an example of sales situation / product it could apply
to.

i.…………………………………………
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ii.…………………………………………

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iii.…………………………………………

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iv.…………………………………………

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(04 Marks)
Question 03
List four (04) advantages of personal selling.

i. ……………………………………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………………………………………

(04 Marks)

Page 12 of 16
 Question 04
List seven steps of sales process.

i. ……………………………………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………………………………………
v. ……………………………………………………………………………………………………………………………………
vi. ……………………………………………………………………………………………………………………………………
vii. ……………………………………………………………………………………………………………………………………
(04 Marks)
Question 05

Briefly describe the following:

i. SWOT Analysis
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ii. Porter’s Cost Leadership Strategy

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iii. Role of the sales manager in territory management.

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iv. Differentiate routing and scheduling

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(04 Marks)
Question 06
List four (04) advantages of setting up a sales organisation for an FMCG marketer.

i. ……………………………………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………………………………………
(04 Marks)

Question 07
List four (04) qualities of an ideal Sales Manager.
i. ……………………………………………………………………………………………………………………………………
ii. ……………………………………………………………………………………………………………………………………
iii. ……………………………………………………………………………………………………………………………………
iv. ……………………………………………………………………………………………………………………………………
(04 Marks)
Question 08
Explain briefly the relationship between Sales and Marketing.
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(04 Marks)

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 Question 09
Write short notes on the following:
i. Return on Investment (ROI)
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ii. Below the line (BTL) and above the line advertising (ATL)
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(04 Marks)
Question 10

Briefly describe the importance of sales force motivation.

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(04 Marks)
Question 11

Briefly explain what sales force incentive is.

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(04 Marks)
(04 Marks x 10 Questions)
(Total 40 Marks)

Page 15 of 16
 PART THREE

Select 2 out of 4 questions and answer them in supplementary

sheets.
Attach your answer sheets to the question paper.

Question 12

Assume you are the national sales manager of an insurance company and conducting a sales
grooming training for your team.

a. Discuss what is known as Service Selling and its relevance to the insurance industry.
(05 Marks)
b. Since the company is promoting tailor-made medical insurance policies, discuss an
appropriate selling approach which you think is the best for this. (05 Marks)

(10 Marks)
Question 13

a. What would you recommend as the appropriate communication mix to promote

plastic kitchenware products in Sri Lanka? (05 Marks)
b. Explain with examples the importance of personal selling in a communication mix
related to your organisation. (05 Marks)

(10 Marks)
Question 14

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

Question 15

There are two ways that an organisation can look at setting up its territory planning
strategy. Briefly explain these two (02) strategies and minimum of three key components of
each strategy.
(10 Marks)

(10 Marks x 2 Questions)

(Total 20 Marks)

(Total 100 Marks)

- END -

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