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December, 2009

Ms-62 : Sales Management

SECTION – A

1(a) Explain the interdependence of sales and distribution management in an FMCG company.

(b) Explain the various steps involved in personal selling process taking the example of diesel generating sets for industrial applications.

2(a) Explain the importance of non – verbal communication in selling process.

(b) Discuss the most commonly used methods of imparting training to the sales force in an organisation.

3. (a) What are the major objectives of territory planning ? Briefly explain the various approaches to territory design.

(b) Discuss the various types of compensation plans for the sales force. What are the factors influencing the design of compensation schemes ?

4. Write short notes on any three of the following :

(a) Application of computers in sales management.

(b) Types of sales organisation structures.

(c) Recruitment sources.

(d) Types of Retail Displays.

(e) Sales management Audit.

SECTION – B

5. Read the case given below and answer the questions given at the end.

Western Oil India, is a regional producer of oil products located in Gujarat state selling gasoline, fuel oil and related products under the Swift brand. Total sales during 2007-2008 were in excess of Rs.100 crores. The company's sales organization comprises of full-line sales personnel who sold in two states of western India. The full-line sales people sold to oil wholesalers, distributors, commercial users and domestic fuel oil consumers. The sales force was responsible for developing all new accounts. The sales personnel were evaluated according to a single criterion, sales volume. District sales managers determined each salesperson's volume from the weekly sales reports. Each report showed the previous week's sales, both in amount and percentage of total purchases by name of account. The district managers summarized the sales reports into monthly and annual summary sales reports. The amount and percentage of gain or loss was shown on both the monthly and annual reports. In addition, each salesperson's sales volume performance was compared with that of other sales personnel in the district and region. Finally, each salesperson's sales volume was compared with his output the previous year and the trend of this sales volume was shown over the past several years. Mr. Kumar, had recently been promoted from manager to vice-president of sales. When he was a manager, he had believed that the method of evaluating sales performance based

solely on sales volume was an inaccurate appraisal of a person's effectiveness. He felt it

was especially unfair to the salespeople who spent a portion of their time assisting dealers with problems such as special promotions, inventory control, merchandising and administration activities that had no direct effect on sales. He also believed that evaluation based on sales volume alone ignored some fairly wide differences in the sales potential of individual territories. As a result of the deficiencies he saw, Mr. Kumar suggested that the present method of personnel evaluation should be supplemented by a merit-rating plan. This plan would incorporate such factors as work habits; effectiveness in merchandising work, cooperation with management, dealers and other sales personnel

and difference in territory potential. The managers would rate the salespeople semiannually, then Mr. Kumar would review the ratings. The numerical scores assigned to each performance factor (which had not yet been determined) would be totaled to yield a merits score for each salesperson. Finally, managers would discuss this appraisal with each salesperson, counselling on strengths and weaknesses and making suggestions for improvement. And before  the plan was put into operation, each manager would explain the new evaluation method to the salespeople in the district. Reaction to Mr. Kumar's proposal was mixed and was strongly opposed to the idea and opined that the new method of evaluation was too complex in nature and also time consuming for the manager. It was also felt that the sales personnel would be unhappy with an evaluation system that was based on so many subjective factors. The argument that salespeople would feel that ratings were based on personal favouritism and other non-objective factors over which they had on control.

Questions

(a) Is the Western Oil company's present method for evaluating sales personnel performance adequate and fair ? Explain.

(b) How can Mr. Kumar answer other manager's objections. Substantiate.

June, 2010

Ms-62 : Sales Management

SECTION – A

1(a) Explain the key decision areas in the sales management which are particularly relevant to strategy formulation.

(b) Explain the importance of oral and non - verbal communication in an attempt to convert a suspect into a prospect.

2(a) What is the advise to firms which generally adopt a policy of hiring only experienced salespersons and preferably who have had experience of selling allied and competitive products ? List out the merits and demerits of such an approach.

(b) What are the basic components of a compensation package ? Explain briefly the factors influencing the design of compensation schemes.

3. (a) Critically evaluate the significance of monitoring and controlling the firms sales force in the light of the enterprise's sales objectives.

(b) What is sales organisation ? Describe the process of designing a sales organisation.

4. Write short notes on any three of the following :

(a) Situations conducive for personal selling

(b) Steps in negotiation

(c) Components of Sales reports

(d) Improving Territory Productivity

(e) Meaning and Importance of Sales Quota.

SECTION – B

5. Read the case given below and answer the questions given at the end.

You are the Sales Manager for a Western India Company, and you just received a memo from the company President indicating that the firm will soon be switching all sales and marketing activities through the use of personal computers/Lap Tops. Although the sales people have been doing a good job manually for years, you feel that the majority will welcome this new shift. However, you do have a few veteran sales people who may resist changing over to the computer based system and wish not to upset or alienate these individuals. They are extremely important to your sales force and often act as "mentors" to the newer sales people in the company.

Questions :

(a) As a sales manager, what steps you would consider to handle this situation while keeping sales force morale high ?

(b) Discuss how computerisation in sales function can be used as a distinct competitive advantage.