MNM3703 – Exam questions

STUDY UNIT 1:

1. Which ONE of the following options is NOT a driver of change in sales management and personal selling?

A. Integrated technology
B. Integrated performance evaluation
C. Sales organization adaption to customers’ needs
D. Long term relationship with customers

2. When making a sales presentation on behalf of your company, to a group of people, their response to you
stated that they are not really interested in your product. This refers to …

A. stalling objections.
B. hidden objections.
C. financial objections.
D. no-need objections.

3. Thulu has been a sales manager for seven years and she maintains high performance levels and assist
younger colleagues who have just joined the team. Thulu is BEST described to be in the … career stage.

A. establishment
B. maintenance
C. exploration
D. disengagement

4. Lead-generation techniques used by sales persons do NOT include …

A. trade shows.
B. networking.
C. promotions.
D. referrals

5. During which ONE of the following steps in the personal selling process do we qualify prospects as potential
customers?

A. Pre-approach
B. Approaching prospects
C. Sales presentations
D. Closing the sales

6. Tim is a financial advisor who visits prospects at their offices to give information regarding the services that
they provide. During this meeting he also gives advice on how to best invest their money. Tim focuses on
developing interpersonal relationships in order to be customer orientated, create value and to come up with
solutions that ensure profits for both. This scenario BEST describes the … role of a salesperson.

A. customer relationship
B. selling
C. customer compliment
D. marketing
7. Tumelo, a newly hired salesperson, is busy deciding which sales presentation he should use. After weighing
up the different options, he decides on the unstructured sales presentation method. This scenario BEST
describes which ONE of the following steps in the personal selling process?

A. Approach
B. First trial close
C. Pre-approach
D. Presentation

8. Cold canvassing by phone occurs mostly during step … of the selling process.

A. two
B. one
C. three
D. four
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9. A salesperson who starts a presentation with a probing question to make the prospect aware of a need and
then gets the prospect to acknowledge and to accept the need is making use of a/an … sales presentation.

A. unstructured
B. customised
C. semi-structured
D. structured

10. When a salesperson recaps the advantages of the merchandise and gets the prospect to agree while closing
the sale, the salesperson is making use of the … close.

A. alternative
B. standing-room-only
C. T-account
D. assumptive

STUDY UNIT 2:

1. The aim of a … objective is to minimise the cost of sales activities.

A. credit
B. debtor
C. profit
D. stock

2. ‘Organisation as a process’ is BEST described when …

A. various unique components have mutual relationships with each other.

B. a group of people work together to achieve set objectives.
C. different positions are created in order to reach certain objectives.
D. a manager ensures the effective use of resources to accomplish various objectives.

3. An organisation, Cellular Tech, decides to assign the members of its sales force to all the countries in
Southern Africa to service its different customers in all outlets selling their products. This scenario BEST
refers to … specialisation.

A. product
B. customer
C. matrix
D. geographic

4. Lulu and Kalifa are sales staff at FurnitureCo. They are responsible for selling the company’s entire range of
furniture in all nine provinces. Lulu only deals with retailers while Kalifa liaises with wholesalers. This is an
example of … specialisation.

A. geographic
B. product
C. market
D. operating

5. A line and staff organisation refer to an organisation structure characterised by …

A. small group of executives who oversees the support functions such as finance, human resources and
strategic planning
B. lower operating cost, quick decisions making and highly concentrated authority.
C. the benefits of specialised middle management with line authority to ensure that their plans are carried out.

D. the benefits of labour division and specialisation and slower decision making.

6. Zoya is an employee of Cell-Accessorise. She works in self-managed and cross-functional teams that perform
core processes such as sales, customer relations and product development. Cell-Accessorise appears to be
following a ... organisational structure.

A. horizontal
B. functional
 MNM3703 – Exam questions
C. line
D. staff

7. In an organisation whereby the salespeople report to only manager, the … principle applied.

A. functional design
B. unit of command
C. hierarchy of authority
D. centralised organisational

8. Which ONE of the following constitutes an element of the three basic element of delegation?

A. Assigning duties to subordinates

B. Right and power given to individual to perform or command certain tasks
C. Enforce policies of the organisation
D. Have direct influence on the actions of others through orders.

9. An ADVANTAGE of a … is that supervisors can spend more time with each subordinate individually, and it
creates the opportunity for development, growth and promotions.

A. wide span of control

B. functional organisation
C. horizontal organisation
D. narrow span of control

10. Which ONE of the following statements does NOT refer to a factor determining the span of control?

A. Highly skilled and knowledge employees require less supervision, and thus a smaller span of control
B. Smaller organisation structures have a narrow span of control
C. Taller organisation structures have a narrow span control
D. If the work is complicated and requires close supervision, a manager will have a narrow span of control

11. In order to become an ‘ideal’ organisation, management needs to follow the process of organisation in order
to achieve its objectives in an efficient manner. The last aspect is to … employees.

A. provide resources to
B. group similar activities of
C. coordinate efforts of all
D. delegate authority to

STUDY UNIT 3:

1. Which ONE of the following sales forecast technique is a quantitative method?

A. User expectations
B. Sales force composite
C. Delphi techniques
D. Decomposition

2. Which ONE of the following options is NOT a step in drawing up a sale budget?

A. Review and analyse the current situation.

B. Identify specific problems or opportunities.
C. Determine the factors that affect the future sales in the budget period
D. Communicate sales objectives.

3. Which ONE of the following options BEST highlights an ADVANTAGE of using user surveys as a forecasting
method?

A. It can assist in the planning of the marketing mix of the organisation.

B. It assists in the controlling and directing of buying activities.
C. It is easily done in a very short period of time.
D. It is the closest to testing a product under real conditions.
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4. Step TWO of the process of sales forecasting requires an organisation to …

A. achieve the estimated sales expected according to the sales forecast.

B. select a quantitative or a qualitative method of sales forecasting.
C. determine the specific period for which the sales forecast should be done.
D. identify the controllable and the uncontrollable factors that can influence the sales forecast.

5. Which ONE of the following options is an ADVANTAGE of a time series data analysis?

A. It has immense intuitive appeal.

B. It assists in controlling sales activities.
C. It is the closest to testing a product under real conditions in the market.
D. It is objective and economical.

6. When setting a sales budget, step FOUR is to …

A. develop an initial allocation of resources.

B. prepare the budget presentation.
C. identify specific opportunities and problems.
D. communicate the sales objectives.

7. Sambra, a sales manager, assigns a number of samples to all salespeople and provides a company phone
with a set number of minutes for calling prospects. This scenario occurs during step … in setting a budget.

A. two
B. three
C. four
D. one

8. Nailah, a sales manager, decides that user surveys will be the best method to determine the company’s sales
forecast. This scenario occurs during step … in sales forecasting.

A. three
B. two
C. one
D. four

STUDY UNIT 4:

1. The breakdown method is most likely applied by …

A. insurance companies.
B. glass manufacturer.
C. aircraft manufacturer.
D. television manufacturer.

2. Radebe is head of sales in Computer solutions specialising in selling computer peripheral equipment to
businesses in South Africa. Which ONEof the following options is the BEST example of a control unit?

A. Africa
B. West Africa
C. Central Africa
D. Durban

3. According to Drotksy 2014, which one of the following options is NOT a reason for establishing sales
territories?

A. To build a more effective sales force

B. To strengthen customer relations.
C. To assign salespersons to territories.
D. To achieve the company sales and marketing objectives.
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4. According to Drotsky (2016), which ONE of the following options is an example of a time-waster?

A. John, who is busy with a cold call and once he is done, his wife, Tamarin surprises him with a drop-in visit
for a quick lunch.
B. Ted, who is not planning his meeting with prospects carefully, as he schedules a meeting in Pretoria at
10:00, then in Johannesburg at 12:00 and in Pretoria again at 14:00.
C. Reba, who phones a prospect – a student who does not own a house – regarding household insurance.

D. Eva, who goes onto her social media platforms while waiting in between her meetings with prospects.

5. Which ONE of the following techniques that can be used to perform workload analysis?

A. The Delphi method

B. The moving average method
C. The sales volume method
D. The build-up method

6. Haji, a sales manager, performs a workload analysis by using the breakdown method. In this case, Haji will
need to determine the ...

A. workload capacity of salespeople in each tentative territory.

B. total calls needed in each control group.
C. sales volumes expected from each salesperson.
D. call frequency per account per year.

7. According to Drotsky (2016), which ONE of the of the following options BEST indicates a reason for
developing sales territories?

A. If the sales coverage is less than the market potential

B. If a sales company has increasing selling costs
C. If the sales company wants to strengthen customer relations
D. If a sales company has three sales representatives

8. Thembi’s business has been successful over the past three years and she has decided to expand her
business into another province and create sales territories. She decided to use the breakdown method to
estimate the time and sales effort of the sales personal. This scenario illustrates …

A. combining control units into tentative territories.

B. estimating market potential in each control unit.
C. performing workload analysis.
D. selecting a geographic control unit.

9. According to Drotsky (2016), which ONE of the following scenarios is an example of a time-waster?

A. Adam taking too many coffee breaks to chat with other salespeople about difficult prospects.
B. Adam forgetting to send sales quotes to prospects as agreed upon before leaving for the day.
C. Adam using waiting time between appointments to do crossword puzzles in magazines.
D. Adam not using his cellphone, laptop or internet to find and communicate with prospects.

STUDY UNIT 5:

1. Which ONE of the following techniques of observation records the time taken to complete a task and the
actions involved?

A. Work method analysis

B. Critical incident technique
C. Interview method
D. Direct observation

2. Ayanda applied for a job which required her to do an attitude and personality assessment to determine her
interests and skills. To which step in the selection process does this scenario refer?
 MNM3703 – Exam questions
A. Employee testing
B. Employee interview
C. Background check
D. Initial screening

3. Job analysis can simply be described as…

A. a summary of personal traits, knowledge and skills needed to perform a job

B. an investigation of the tasks, duties and responsibilities of a sales job.
C. a summary of the job containing administrative relationships.
D. an investigation of the types of products sold and the types of customers

4. Thembu is a new employee with Fast Food Joint in Johannesburg East. During job analysis, she was given
the opportunity to describe their working styles, skills and the problems she could face in her new job. This
method of conducting job analysis refers to the…

A. observation method.
B. questionnaire method.
C. experimentation method.
D. interview method.

5. According to Drotsky (2014), Which ONE of the following is an ADVANTAGE of internal recruitment?

A. There is a wider scope of selection as there are many more applications for the job
B. It can lead to increase in the organisation overall growth and success
C. There is bias and favouristism in promoting employee
D. It allows fresh talent to enter the organisation

6. According to Drotsky (2016), which ONE of the following is an ADVANTAGE of internal recruitment when
promoting a salesperson (called Gabriel)?

A. Gabriel has less chance of being favoured.

B. Gabriel is motivated to work even harder.
C. Gabriel will be one of many applicants.
D. Gabriel would need to fill his old position.

7. Themba owns a successful business and needs to hire new senior employees. Which ONE of the following
options is a DISADVANTAGE of external recruitment?

A. Thulu gets promoted and leaves her current position vacant, which means that this position needs to be
filled.
B. Sophia does not have the necessary skills or specialised knowledge needed for the senior position.
C. Thandi is accustomed to the current organisational culture and way of conducting business.
D. Jane, who is a junior sales representative, may be deterred because she cannot apply for the new job
offered by Themba.

8. Nicker has been employed by an Insurance company as a salesperson. During which stage ONE of the
stages in the selection process does an employee sign the documents detailing the terms of employment?

A. Background checks
B. Job offer
C. Contract
D. Job description

9. Joseph, a sales manager, observes and interview employees to get an idea of what their job entails in order to
sort them into categories. This will occur during which stage in the job analysis process?

A. two
 MNM3703 – Exam questions
B. three
C. one
D. four

10. According to Drotsky (2014), Which ONE of the following is NOT a reason for having an induction
programme?

A. It hampers employees’ adaptation to the organisation.

B. Employees become familiar with the culture of the organisation more quickly.
C. New employees are more likely to feel self-assured.
D. It leads to a lower turnover rate among new employees.

STUDY UNIT 6:

1. Sales training programme is developed to address sales training objectives. According to Drotsky (2014),
which ONE of the objectives make use of sales force automation to provide salespersons greater
opportunities to improve their productivity?

A. Increased productivity
B. Improved time and territory efficiency
C. Improved use and application of technology
D. Improved morale

2. Nelson provides training for new salespeople. He observes how the salespeople are doing three months after
the initial training. This method refers to the … level of the framework of training evaluation.

A. reaction
B. behaviour
C. result
D. learning

3. In the framework of evaluating training programmes, the reaction level measures (1)… through (2) …

A. (1) performance (2) determining the change in sales.

B. (1) learning (2) administrating tests.
C. (1) attitudes (2) completing comment sheets.
D. (1) behavior (2) observing salespeople.

4. According to Drotsky (2014), which ONE of the following is an ADVANTAGE of centralised sales training?

A. It ensures that highly skilled personnel are available to teach.

B. It provide no opportunity for new sales trainees to network with other trainees
C. It can be conducted at a speed where the trainees can absorb the learning material
D. It develops the trainee’s confidence in the managers who train them

5. According to Drotsky (2016), which ONE of the following is a DISADVANTAGE of decentralised training for
Lucas as a sales manager?

A. Lucas goes slower through the material in order to allow trainees to absorb the material.
B. Lucas could pass on bad habits to recruits.
C. Lucas puts strain on the relationship with his mentee.
D. Lucas focuses on supervising his salesforce instead of training recruits.

6. A business company decides to upgrade the skills and knowledge of their salespeople by presenting
information over a short period of time. Which ONE of the methods can be used by their sales managers in
order to train the sales force?

A. Computer-based training
B. Lectures
C. On the job-training
D. Literature

7. Trevor, a trainee, acts as a prospect giving different objections to purchasing a product and Thandi, another
trainee, plays her salesperson role, trying to convince him to buy the product. This scenario is an example of
which ONE of the following instructional methods?
 MNM3703 – Exam questions

A. Role playing
B. Demonstrations
C. Simulation games
D. Group discussion

8. Tulu’s company has introduced a new line of products. She has been tasked to develop a new training
programme to teach trainees about price guarantees, discounts and latitude on pricing for the new line that
they have to sell. This scenario BEST describes which ONE of the following training programme topics that
she will be developing?

A. Product and service knowledge

B. Employee handling skills
C. Customer and market knowledge
D. The organisation and its procedure knowledge

STUDY UNIT 7:

1. Drotsky (2014) identified three common myths about leadership. Which ONE of the followings options is NOT
one of them?

A. Leaders are born with the right personality

B. Leaders must be aggressive
C. Leaders are trained from a young age
D. Leaders must have charisma

2. Lilly is a sales manager who has to be able to solve complex problems, make decisions with the information
provided as well as plan and organise the sales force. According to Drotsky (2016), this scenario BEST
illustrates … skills.

A. human relations
B. conceptual
C. technical
D. practical

3. What are the outcomes of effective leaderships according to Drotsky (2014)?

A. Well trained salespeople and salesforce morale

B. Trust among salespeople and citizenship behaviour
C. Ability to delegate and communication
D. Better performance and honesty

4. Which bases of power is based on the leader’s choice to punish and withhold rewards?

A. Legitimate power
B. Referent power
C. Expert power
D. Coercive power

5. Which leadership and management style does the sales manager actively seeks the opinion and ideas of the
sales teams and collectively they moderate the inputs?

A. Democratic leadership
B. Laissez-faire leadership
C. Consultant leadership
D. Persuasive leadership

6. Themba, a sales manager, leaves his sales team to handle their responsibilities and obligations in their own
manner. Which ONE of the following options BEST describes Themba’s leadership style?

A. Laissez-faire leadership
B. Democratic leadership
 MNM3703 – Exam questions
C. Referent leadership
D. Expert leadership

STUDY UNIT 8:

1. Which ONE of the following motivational theories is based on three pillars: a reward, positive relation between
efforts and performance and favourable rewards for favourable performance?

A. Herzberg’s motivation-hygiene theory

B. Churchill, Ford and Walker’s model of salesforce motivation
C. Adam’s inequity model
D. Vroom’s expectancy model

2. Which ONE of the following motivational theories is based on two concepts: inputs and outputs?

A. Adam’s inequity model

B. Churchill, Ford and Walker’s model of salesforce motivation
C. Herzberg’s motivation-hygiene theory
D. Vroom’s expectancy model

3. Which ONE of the following motivational theories is based on factors that lead to job satisfaction and
dissatisfaction?

A. Vroom’s expectancy model

B. Churchill, Ford and Walker’s model of salesforce motivation
C. Herzberg’s motivation-hygiene theory
D. Adam’s inequity model

4. Which ONE of the following motivational theories looks at the relationship between effort, performance,
reward and satisfaction?

A. Vroom’s expectancy model

B. Churchill, Ford and Walker’s model of salesforce motivation
C. Herzberg’s motivation-hygiene theory
D. Adam’s inequity model

5. The final level of Maslow’s Hierarchy of needs is …

A. Self-actualisation
B. Esteem and status
C. Belonging and social
D. Safety and security

6. Kali has a lot of inner drive to ensure that he achieves his goals for each project. To which ONE of the
following elements in the definitions of motivation does this refer?

A. Direction
B. Persistence
C. Expectancy
D. Intensity

STUDY UNIT 9:

1. Thandi is a salesperson working for company XYZ. Thandi’s birthday is in February and for that month she
will receive double her salary. This example is BEST described as a …

A. productivity bonus.
B. non-productivity bonus.
C. commission plus bonus plan.
D. salary plus commission plan.
 MNM3703 – Exam questions
2. Thulu is a newly hired salesperson who has been given a remuneration package where she will receive 20%
of the sales she makes and a cell phone with unlimited minutes to call prospects. Which of the following
elements is included in the description of Thulu’s remuneration package?

A. fringe benefits
B. a variable element
C. a fixed element
D. reimbursement of selling expenses

3. Salome earns commission and receives 10% of her sales every month. At the end of the financial year 2018,
the organisation allocated R150 000 to be shared amongst all the salespeople. Which of the following
elements describes Salome’s remuneration plan?

A. a non-productivity bonus
B. a productivity bonus
C. a variable element
D. a fixed element

4. Which ONE of the following statements is considered as a salesperson approach for setting a remuneration
plan according to Drotsky (2016)?

A. The remuneration plan should be easy to understand for the salespeople, so it is advised that managers
have no more than three measures to calculate remuneration.
B. The remuneration plan should ensure that the efforts and results of the salespeople correlate with the
rewards given.
C. The remuneration plan should be flexible in the sense that different salespeople working on different sales
territories are remunerated based on their task.
D. The remuneration plan should ensure low sales staff turnover and encourage a high level of customer
service.

5. According to Drotsky (2016), which ONE of the following is an organisation’s approach to a remuneration
plan?

A. The remuneration plan should act as a guide for salespeople on their activities.
B. The remuneration plan should provide security for salespeople.
C. The remuneration plan should be simple enough for salespeople to understand.
D. The remuneration plan should be fair and adequate for all salespeople.

6. Which ONE of the following elements of remuneration is linked to the effectiveness of the salesperson?

A. Fringe benefits
B. Fixed element
C. Variable element
D. Reimbursement of selling expenses

7. During which step of developing of a remuneration plan does the sales department determine what individual
salespersons and whole sales groups need to achieve?

A. Consultant the present sales force

B. Determine levels of remuneration
C. Establish specific objectives
D. Evaluate the job description

8. Which ONE of the following options is NOT an example of a non-financial remuneration plan?

A. Job security
B. Expense account
C. Sales contests
D. Recognition programme
 MNM3703 – Exam questions
9. Which of the following options are characteristics that make the use of incentives in a salesperson’s
remuneration attractive?

A. Salespeople requirements are clearly defined

B. Sales force drives the organisations top line
C. Salespeople competencies are highlighted
D. Sales outputs are measureable

STUDY UNIT 10:

1. Step one in the performance evaluation process of evaluating salespeople is to …

A. review job description.

B. agree on individual performance standards.
C. determine performance evaluation standards and criteria.
D. establish basic policy and sales goals and objectives.

2. During which step of the performance evaluation process does the sales manager look at input and output
measures?

A. Three
B. Four
C. Seven
D. One

3. During which step of the performance evaluation process does the sales manager provide the salesperson
with a written copy of their performance review and discusses it with them?

A. Five
B. Seven
C. Six
D. Four

4. The last step of the performance evaluation process is to …

A. take corrective action if needed

B. compare performance to standards
C. discuss results with salespeople
D. deliberate on variations and improvements

5. There are a number of characteristics that performance evaluation methods should adhere to. Which ONE of
the following options is NOT one of the characteristics identified by Drotsky (2014)?

A. Usefulness
B. Standardisation
C. Impartiality
D. Reliability

6. According to Drotsky (2016), which ONE of the following characteristics of a performance evaluation method
ensures that the rating criteria is stable over time?

A. Validity
B. Standardisation
C. Discriminability
D. Reliability

7. An example of an input measure of a salesperson’s performance is the number of …

A. units delivered.
B. days worked.
C. repeat orders realised.
D. sales generated.
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STUDY UNIT 11:

1. Which ONE of the following options is an example of a trade-orientated sales promotion?

A. Sampling
B. Price-on-pack deal
C. Consumer rebates
D. Point-of-purchase displays

2. During which ONE of the following stages of the product life cycle, are price reduction promotions are MOST
likely to be used?

A. Introduction
B. Maturity
C. Decline
D. Growth

3. Kalifa, a business owner, aims to draw attention to his products and find ways to make his production more
cost effective. Based on this scenario, Kalifa’s business is in the … stage.

A. introduction
B. maturity
C. growth
D. decline

4. An example of a consumer-orientated sales promotion is …

A. push money.
B. money-off deal.
C. trade allowances.
D. dealer load.

5. A company giving away a travel size 40ml tube of toothpaste with a standard 75ml tube of toothpaste is an
example of characteristics of a successful consumer-orientated sales promotion?

A. Value for money perception

B. Increased real value
C. Creating engagement
D. Creating an association

6. Annual prizes are MOSTLY used in which ONE of the following distribution channel?

A. Manufacturer – wholesaler – retailer – consumer

B. Producer - consumer
C. Manufacturer – producer – retailer – consumer
D. Manufacturer – agent – wholesaler – retailer – consumer

STUDY UNIT 12:

1. Company XYZ wants to find the average cost of gaining a new customer. Which ONE of the following sales
metric would they use?

A. Cost per lead

B. Customer acquisition cost
C. Sales expenses
D. Target volume

2. Which ONE of the following metrics is MOST likely used for churn rates?
 MNM3703 – Exam questions
A. Customer related metrics
B. Product metrics
C. Competitive metrics
D. Price and pricing metrics

3. The earning or income generated by an organisation refers to which of the following metrics?

A. Conversion rate
B. Target volume
C. Sales revenue
D. Gross profit

4. The difference between invoice and selling price refer to which of the following metric?

A. Total margin
B. Sales quota
C. Mark-up
D. Gross profit

5. Unit margin divided by unit price is a formula used for which of the following metrics?

A. Conversion rate
B. Net profit margin
C. Cost per lead
D. Margin percentage

6. According to Drotsky (2016), which ONE of the following scenarios is an example of a task that a sales
manager should do after the appraisal interview?

A. Having good listening skills and being clear about the performance appraisal
B. Intermittently evaluating progress towards the goals
C. Motivating salespeople to participate in the appraisal process
D. Going for training on conducting appraisals