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 enterprises 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. 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.

SECTION A 1. (a) What are the situations conducive for personal selling ? Explain using suitable examples. (b) How would the Sales Process differ in the following situation ? (i) A private sector bank representative selling services to the Senior Manager of an MNC. (ii) A Sales executive selling water purifiers to working women. 2. (a) What are the basic purposes fulfilled by a sales organisations ? Outline the steps involved in developing a sales organisation. (b) What are the attributes of a good Sales Quota Plan ? 3. (a) What are the Major objectives of conducting training for sales force ? Suggest and explain suitable training programme for fresh engineering graduates who would be taking up independent selling assignment for Industrial Products. (b) Discuss the important criteria for recruitment of Sales staff. 4. Write short notes on any three of the following. (a) Determination of the size of sales force. (b) AIDAS Theory. (c) Presentation skills (d) Motivation of sales force. (e) Sales report. SECTION B 5. As a Sales Manager, you have been assigned the responsibility of designing a vast sales network for a new brand of Fresh Lime Juice (with minimal Preservatives) planned to be launched next summer. The company wishes to confine the launch to all metros, and major cities in India. The main focus is on Retail malls, large sized grocers and general merchants. While other stores are 2 priority. The firm is targetting around 20,000 out lets to be serviced within the first 6 weeks, of its launch. The advertising campaign is expected to create awareness about the new brand by the 3 1 week of the launch. The product has a shelf life of 3 months from the date of manufacture and will be manufactured from Uttaranchal.Questions (a) What additional information would you need to develop an effective sales plan ? (b) What factors will you consider in developing the sales force ? (c) How would you measure the effectiveness of the sales force in this case ? 2

1. (a) Explain the various steps in the personal selling process. (b) How would the selling process differ in the following cases: (i) An SBI representative selling credit card to a company executive. (ii) Pharmaceutical company salesman calling upon a doctor. (iii) Zenith Computer's sales engineer selling computers to an organisation. 2. (a) Distinguish between oral communication and non-verbal communication. How do they help in sales interactions ? Give suitable examples. (b) What are the basic components of a compensation package ? Explain. 3. (a) What are the key functions of a Sales Manager ? Discuss taking the example of a fast Food Restaurant. (b) How and why are sales volume quotas set ? Discuss the attributes of a god sales quota plan. 4. Write short notes on any threeof the following : (a) Methods of identifying Training Needs (b) Principles of effective presentation (c) Recruitment sources (d) Improving territory productivity (e) Preparation of Sales Budget SECTION B 5. Read the case given below and answer the questions given at the end of the case. AG Refrigerators Ltd. "The company's sales forecast for the year 2007 - 2008 is 9,2Q000 numbers of refrigerators" said Satish Kumar, General Manager-Sales in the budget meeting held on January 20, 2007 at the company's headquarters at Bangalore. Another forecast made earlier put this figure as 10,00,000 units "For determining the company's sales budget, we also need information about market segments, such as the share of household and institutional customers as well as that of rural and urban markets. Production function would like to know product type share between frost-free nd direct cool, as well as different sizes from 110 litres to 310 litres. These figures are absolutely essential for working marketing and production plans, and thereafter overall company's budget for the year 2007 - 2008," intervened Mr. Vinod, President of the compahg, before' Vice President (Sales and Marketing) could say something.

Satish Kurnar responded, "Yes, we can estimate the break-up of total ntrmbers of refrigerators into product types and sizes, as well as market segments, but we have to first decide whether our sales liudget would be equal to or lower than the sales forecast. " "l think before we take that decision, we would like to know how accurate is your sales forecast, and which forecasting method have you used," asked the Vice President (Sales and Marketing)." "Well, the method used by us was moving averages and the accuracy of our sales forecasting is good for short-term forecasting with stable market conditions and availability of historical data," said a confident Satish Kumar. Questions : (a) What would you do in such a situation, when the sales forecasts differ? (b) The company plans to introduce a new product LCD Colour Televisions. How would you go about in forecasting the sales for the new product? (c) Explain the rationale of asking for the break-up of the total sales forecast figure by product types and sizes, as well as market segments.

SECTION A 1. (a) Discuss the scope of Sales Management in a manufacturing and marketing organisation. (b) In the light of the changing role pf the salesperson, explain the qualities of god sales personnel. 2. (a) Explain the various steps involved in the negotiation process. (b) What are the objectives of sales display ? Why is it becoming increasingly important for firms to effectively manage the displays of their brands ? 3. (a) Elaborate some of the commonly used parameters to monitor the performance of a firm's salesforce. (b) What is territory planning ? How does territory planning? How does territory planning help a salesman in performing his duties optimally? Explain with suitable examples. 4. Write short notes on any three of the following: (a) Interdependence of sales and distribution (b) Interpersonal communication process (c) Sales Job Analysis (d) Centralisation vs. Decentralisation in sales organisation (e) Methods of Sales Budgeting 4

1. Discuss any one theory of selling in detail. Also explain the stages or components of such a theory taking the example of door-to-door selling : (a) Eureka Forbes vacuum cleaner (b) Industrial chemicals 2. (a) What inter-personal communication skills are needed in a sales professional ? Discuss by taking specific examples. (b) What is the concept ol "Transaction Analysis" and how is it useful to a salesperson? 3. (a) What is "Sales Job Analysis" ? Briefly describe each of the sub-heads,in which it is being carried out. (b) What are the external and internal sources of recruitment ? If you have to recruit sales professionals for a highly technical product, what sources would you consider and why ? 4. What are the various steps of Territory Planning ? Do these steps remain the same irrespective of the product/market ? Explain by taking the example of : (a) Soft drinks (b) Industrial Lubricants 5. Write short notes on any three of the following: (a) Significance of Personal Selling (b) Psychological Testing (c) Sales Quota (d) Sales Audit SECTION B 6. Read the following case and answer the questions given in the end : In a bid to expand the market and boost sales, LG Electronics Ltd. identified institutional sales as a focus area in the calendar year 1999. It plans to triple the target turnover to Rs. 150 crores from institutional sales. LG has honed its institutional sales strategy by identifing and proactively targeting five different segments to push the LG range : brand promotions; the welfare segment (factory workers and office staff); government sector; direct users (hospitals, hotels); and the canteen stores departments (CSD) of the armed forces. A distinct strategy has been tailored for each of the five segments. In brand promotions for example, the perceived value of the products given as gifts is important, whereas for the wellare segment aspirational value, convenience and easy financing are prime factors. Meanwhile, hotels represent a price sensitive segment requiring specially customized products.

Welfare: In this segment, LG is targeting a consumer base - the aspirational consumer, mostly factory staff - that most companies ignore, but which has considerable clout in terms of generating volumes. This segment is being targeted on the convenience and easy finance platform. LG has just tied up with Birla Global Finance Ltd., part of the Aditya Birla Group, for the purpose. Under the tie-up, LG will unit-wise cover all the Birla companies. This amounts to over two lakh employees. This is a lucrative segment, claims LG, because of the high hit-rate; out of a potential base of 1,000 factory workers, there is an assured sale of at least 10 to 20 percent. Hotel Segment: In this segment, LG is targeting the five-star and middle-level hotels (50 - 110 rooms) by offering customized products. For example, LG offers a special 'hotel-mode TV' model with an auto volume leveler, which ensures that other guests are not disturbed. Another attraction for hotels is the cricket game TV model that would also prove to be popular and an interactive option with Internet, video/audio or room service menu facilities. LG claims to have sent out mailers to 1,200 hotels - and bagged at least 100 orders, besides the 'Palace on Wheels' luxury train, for providing TV sets in its 52 cabins. Now, LG is reading a range of interactive televisions for this segment, offering remote-controlled features like : the hotel menu, local facilities, billing,room sevice, video on demand, intenet, multilingual options. Canteens and the Government Sector: "We are perhaps the only company offering our entire range of products in CSD canteens," feels the product manager, of LG. In the government sector, which operates through tenders, significant orders so far included an order for 200 TVs for Himachal Tourism bungalows in the State and over 2,000 TVs for primary schools in rural areas in Maharashtra. The company has a five-memeber Institutional Sales Divison, with each devoted exclusively to one segment. It has 50 institutional sales dealers and a ring of sales representatives when interact with the dealers and conduct demonstrations when needed. Its infrastructure consists of 20 mobile vans wth glass windows to display the product range. These vans cover at least 500 km every month in both rural and urban markets. Questions : (a) Do you think such a field sales force is adequate to harness the market potential in the Institutional market ? (b) Would you recommend focuing on one or two segments out of the given five ? Justify your answer. Q1. Answer any four of the following in about 250 words each. (a) Explain the concept of Sales Management and Salesmanship (b) Explain the theories of Personal Selling (c) Explain the various techniques of Sales Forecasting (d) What are the methods of designing the sales territories? (e) what are the different approaches for setting the sales quotas? Q2. Explain the different types of sales organizational structures. how is the size of sales force determined? OR

Explain the process of recruitment and selection as adopted by the sales organizations today. What are the elements of Motivational Mix for the sales force?

Q3. What methods do the sales organizations use for training the sales force . Explain various types of training programs. How can the effectiveness of these training programs be measured? OR Explain the diffrent types of Compensation plan used by sales organizations of today. What are the advantages and disadvantages of sales contest? Q4. (a)What do you undersatnd by Channel Management? State the importance of Channel Management. (b) What are the different types of Distribution Channel explain. OR (a) What are the steps in designing the distribution channel? (b)What are the steps in managing the distribution channel? Q5. Write short notes on any two of the following (a) Channel Conflict (b) Sales Budget (c) Role of Sales Manager (d) Personal Selling Process Q1. What do you understand by sales organization structure? Describe various types of sales organization structures. Q2. What do you understand by Personal Selling strategy ? How is the size of sales force determined? Also explain the methods of designing the sales territories. Q3. What do you understand by recruitment and selection of sales force? Explain the process of recruitment and selection as adopted by the modern sales organizations. 1. Discuss the different steps involved in Selling Process. or Discuss the various sales related marketing policies. 2. Explain the different types of Sales Organisation structure. Or Define Sales Organisation. Explain the various factors influencing its structure. 3. What is Sales Training? Explain its significance and types. Or Differentiate between Recruitment and Selection. Explain the steps involved in a Selection Procedure. 4. Write a note on Sales Quota. Or Explain the different types of Salesmen. 5. Discuss the Sales Organisation and Control methods in International Sales Management. Or Write short notes on the following : (i) AIDAS theory of selling (ii) Sales Territories 7

1. a) Discuss the role and responsibilities of Sales Manager in the organization you are associated or familiar with. b) What are the reasons for firms to critically evaluate the performance of sales force on continuous basis? Discuss the merits and demerits of such evaluation. 2. a) What is sales organization? Discuss the process of designing a sales organization in the following situations. i) An FMCG ayurvedic firm with operations in North India. ii) A durable firm with Pan India operations b) Comment on the role and significance of compensation as a tool for employee retention in a enterprise. 3. a) What do you understand by the term negotiation? Discuss the various steps involved in the said process. b) Sales displays are conceived with the purpose. Discuss the above statement in the relation to creating awareness and customer pull to the store. 4. a) Explain in detail how territory planning helps a salesman in performing his duties optimally. b) Explain the importance of generating sales reports by the field staff. 1. (a) What is the difference between AIDAS theory of selling and the buying formula theory of selling? Explain by taking the example of any sales situation of your choice. (b) How does the relative importance of advertising and personal selling vary across the different stages of the purchase process? Explain. 2. (a) Describe the principals of effective presentation. (b) How would you plan your sales presentation if you were a salesperson responsible for selling personal computers to individual consumers? 3. How can training needs of salespersons be identified? How do the learning styles of salespersons affect the design of the sales training programme? Use illustrative examples to substantiate your answer. 4. (a) How are sakes volume quotas set? (b)You are a large publishing house, publishing scientific and technical booked for a nationwide customer base. What type of field sales organisation would you design and why? 5. Write short notes on any four of the following: (a) Preparation of sales budget (b) Motivation tools for sales personnel (c) Interview as a tool as sales-force selection (d) Negotiation process (e) "Sales close" techniques (f) Diversity of sales situations 8

SECTION B 6. Read the case given below and answer the questions at the end of the case: To say that I am exceedingly upset by what I witnessed in one of our dealer's offices. The other day would be a gross understatement. I saw one of our sales representatives, trying to sell to a dealer and he did not know what he was talking about. He could not answer some of the simplest questions of the dealer about our product and kept saying that he would find out the answer from the head office. Needless to say he didn't make the sale. "Since the personal lall up was Mr. Prakash, President of the Polanis Computer Company, Basant Mehta, the newly hired sales manager for the company, decided he had better head March. Basant nodded and asked "Is this representative of the entire sales force or an isolated case?" "Mr. Mehta that's what am paying you to find out and do something about." As Basant walked back to his new office to deal with a multitude of other sales operation problems he said his task unfolding as two major activities. (i) to determine how much the present sales force really knew about the computer products and how they are used and (ii) to develop an effective program to equip the sales force with the required product knowledge. On reaching his desk, Basant called his assistant, Vinod Kale. Vinod had been with the company since its inception eight years ago. Vinod started as a part time worker, while he studied for his graduation, and then took up a temporary when he graduated and joined the company full time. He was as little frustrated that he hadn't been promoted to Sales Manager when Basant was brought in from outside by Mr. Prakash. Basant asked Vinod, "I've just been in a meeting with Mr. Peach, and he has rather firm connections that the product knowledge of our representatives isn't what it should be. He wants us to do something about it. How do you feel about this" "oh, don't pay too much attention to the old man. He's been on that trip ever since he started the company. As far as he is concerned, no sales representative ever knows enough about the product or knows enough about the customer's problems. It doesn't make any difference to him that we are selling fairly well and sometimes exceeding quotas. In his eyes, that's just because the product is so good. He thinks he is the only one in the company who really knows about the product. It doesn't matter what you do, he'll still be saying the same things to you, and everything he sees one of the representatives making a presentation. Basant thanked Vinod for his opinions but couldn't help wondering whether he could afford to ignore Mr. Prakash's comments. Questions: (a) How can Basant determine how much the sales representatives know about the product and its applications? (b) How should he plan to develop the desired degree of expertise among sales people? 1. (a) What are the product and market situations conductive to the use of personal selling? (b) What kind of allocation of sales and distribution between the company's sales personnel and channel members would you suggest in case of 9

(i) high value products intended for a small number of consumers? (ii) Frequently bought low margin highly competitive products? 2. (a) What are the stages involved in the execution of a sales order? (b) Assume you are a computer hardware company and are planning to set up an information database for effective sales management. What type of information should be sought from the present system to enable you to set up your database? 3. (a) How is non verbal communication relevant to effective personal selling? (b) When structuring a response to convey refusal or bad news, when is a direct approach preferable? Suggest a suitable direct communication that should be made to the client whose order cannot be located in the company. 4. What are the frequently utilised recruitment sources of salespersons? You are in the business of selling pharmaceuticals and are looking for young dynamic salespersons. What are the pros and cons of recruiting salespersons from your closest competitions? 5. Why are sales territories required? Discuss the various steps to scientific territory planning and suggest what type of territory planning would you recommend for (i) A company selling textile machinery components to large textile units. (ii) A Company selling infant milk powder. SECTION B 6. Read the case given below and answer the questions at the end of the case: HB ELECTRICL SUPPLIES COMPANY HB Electrical Supplies Company, Bangalore, manufactured a wide line of electrical equipment used in both home and industry. The sales force called on both electrical wholesalers and industrial buyers with the greater part of their efforts concentrated on industry buyers. The industrial products required considerable technical expertise upon the part of salespeople. Sales offices situated in twenty cities spread over the country had two hundred sales personnel operating out of them. In the past eight years sales volume increased by more than 50 percent, the fast rise in sales volume and the accompanying plant expansion created a problem in that more sales personnel were needed to keep up with the new accounts and to make sure the additional plant capacity was used profitably. In addition, HB sales recruiting problem was compounded by noticeable decline in the number of college seniors wanting a selling career. HB recruiters had observed this at colleges and universities where they went searching for prospective salespeople. Another indication of the increased difficulty in attracting good young people into selling was aggressive recruiting by more and more companies. These factors combined to make the personnel-recruiting problem serious for HB. Consequently, management ordered an evaluation of recruiting methods.

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Virtually all HB salespeople were recruited from twenty-five engineering colleges by district sales managers. Typically, HB recruiters screened two hundred college seniors to hire ten qualified sales engineers. It was estimated to cost HB Rs. 6000 to recruit a candidate Management believed the college recruiting program was deficient in light of the high cost and the fact that only 5 percent of the candidates in light of the high cost and the fact that only 5 percent of the candidates interviewed accepted employment with HB. Evaluation of the college-recruiting program began with the College Recruiting division of the company asking district sales managers for their appraisals. Some district managers felt that HB should discontinue college recruiting for various reasons including the time required for recruiting, the intense competition, and the candidates' Lack of experience. Other district managers, however, felt the program should continue with a few medications, such as recruiting college juniors for summer employment more or less on a trial basis, concentrating on fewer schools, and getting on friendly terms with placement directors and professors. HB general sales manager favored abandoning the college recruiting program and believed the company should adopt an active recruiting program utilizing other sources. He reasoned that, while engineering graduates had a fine technical background, their lack of maturity inability to cope with business type problems, and their lack of experience precluded an effective contribution to the HB selling operation. The general sales manager felt that the two hundred sales engineers currently working for HB were an excellent source of new recruits. They knew the requirements for selling for HB line and were in continual contact with other salespeople. By enlisting the support of the sales force, the general manager foresaw an end to HB's difficulty in obtaining sales engineers. The president preferred internal recruiting from the no selling divisions, such as engineering, design and manufacturing. H claimed that their familiarity with HB and their proven abilities were important indicators of potential success as sales engineers. A complete analysis of HB's entire personnel recruiting program was in order, and regardless of the approach finally decided upon, it was paramount that the companies have a continuous program to attract satisfactory people to the sales organization. Questions (a) Evaluate HB's recruiting program, suggesting whether or not the company should have continued its college recruiting of sales engineers. (b) What alternative recruiting program would you suggest for HB? Justify your answer. 1. How do factors like nature of the product, profile of the target market and company resources affect the sales job? Explain by taking the examples of the following selling situations. (a) Selling of a consumer durable product (b) Selling of an industrial product 2. (a) How are the media options for sales programmes selected? Discuss the consideration which guide the selection

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(b) How do kinetics and proxemics help the sales communication process? 3. Assume that you area sales manager managing a large sales force of salespersons required to sell consumer non-durable to retailers and wholesalers. How would you develop the job description for your salespersons? Give a stepwise detailed account. 4. (a) How can territory productivity to improved? (b)Describe the steps in territory planning. What approaches would you use for territory planning in case of : (i) selling of agriculture pesticides for the nationwide market? (ii) Selling of jewellery watches to up-market urban stores in metros and mini-metros? 5. Write short notes on any four of the following: (i) Sales forecasting techniques for a new product (ii) Salesperson evaluation (iii) Product life cycle salesperson compensation (iv) Non-verbal communication (v) Computer applications in sales management (vi) Interdependence of sales and distribution SECTION B 6. Read the case given below and answer the questions at the end of the case: The pioneers in the field of holiday resorts in India were "Dalmia Resorts" and "Ornate Club of India" Dalmia introduced the current of property time-share in which the company transfers the property rights in equal proportions to the buyer via a sale deed. Generally, the property is divided among fifty buyers each getting a time-share of 1/50th of the year, i.e. one-week. Two weeks are kept for maintenance. Starting Holiday Resorts (I) Ltd., started off in 1986, selling property time-shares with a lakeside resort in Kodaikanal in tamil Nadu. It is a public limited company with an equity base of Rs. 6.75 crores. TIME-SHARING Time-sharing is a concept giving the right to the buyer to stay for one week at the Sterling Resorts for 99 years without having a right to the property. In a world moving towards buying on credit, Sterling dares to ask the target buyer to pay in advance for something that doesn't yet exist, and when it does, Sterling grants him no control over the product, let alone possession. MARKET SEGMENTATION According to the data furnished by sterling, its market segments are as given in Table 1.

TABLE 1 Market Segmentation of Sterling

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Annual Income

Mode of Employment Self-employed Professionals Young. Low income Middle aged, middle income Middle aged, high income

Below Rs. 90,000 Rs. 90,000 1,80,000 Rs. 1,80,000 and above

Small Scale Small Scale Small and medium scale

Besides individuals, big corporate houses were also considered. MARKET TARGETTING Individuals with annual income over Rs. 90,000 and big corporate houses were targeted. Sterling's target vacationer is the relatively better off but no rich family man in his early thirties who is under constant work pressure and is yearning for a break from worldly headaches. He is the caring, conservative husband-father who loves submitting to his family chorus for a long overdue holiday. He finds hotels unaffordable and travels arrangements difficult. For him a time-share week is found to be an affordable alternative, with the added advantage of travel booking looked after by Sterling and the freedom to cook ones' own food in the cottage kitchenette. Sterling also has facilities for meetings and conferences targeted at business houses. MARKET POSITIONING Sterling is positioned in the high price and high quality segment. Their communication to customers is mainly through advertisements, in newspapers, business magazines, in-fight magazines, and direct mail. PRESENT LOCATIONS With more than 50,000 time-shares, Sterling has 12 operating resorts, two each in Kodaikanal, Ooty and Darjeeling and one eac at Yercaud. Mussoorie, Goa, Manali, Munner and Puri. The other resorts coming up are in Lonavala and Mahabaleshwar in Maharashtra Coorg and Vorbett. Plans for several resorts on some of India's most popular holiday spots will beunderway. The capacity at various resorts is as follows: Place Yercaud Goa Ooty Kodaikanal Puri Number of families 50 120 240 250 50

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PRICES The price of a time-share for a particular resort depends on the location of the resort, the type of apartments and seasons. In addition to this, prices can be used as a promotional strategy to promote a less demanded resort to even out the disequilibrium in demand. There is also a provision to pay the amount in three installments within a period of six months FACILITES AND FEATURES The living space in a resort comes in three standard sizes of fully furnished cottage options --- twin, regular and compact with a mzximum capacity of six, four and three adults, respectively. For including an even-spread in usage over the year, time-share prices vary from a high in peak season called premium weeks to a low in lean season called classic weeks. In between are the season weeks and the rice differences are determined by the demand. Typically, the price of a time-share would range from a high of Rs. 52,000 to a low of Rs. 32,000 for a regular unit. Once bought, the week may be exchanged for one at another resort in the Sterling network and, more importantly, a week some other time of the year in the same or cheaper season band, provided sufficient notice is given to the company. The week may also be split or carried over to the next year (accumulated), given some conditions. The buyer is free to gift rent sell or bequeath his time-share. Sterling keeps a portion of the unsold weeks which are let out daily tariff to "free individual travelers". At present, 30% of the 5000 weeks a year available at Sterling are sold as time-shares. Also, "no shoes" and week transfer to other resorts ensure that Sterling always has enough space to offer for normal non timeshare hotel stay. The money to keep the maintenance going forever comes from these hotel revenues. The idea is to keep unit as a self-perpetuating business unit. A premium week time-share holder can exchange his time- share with a premium season for classic week. A season week can be exchanged with a season or classic week, whereas a classic week can be exchanged with a classic week only. All exchanges are done in the same calendar year. If a time share older is not going to use his allotted week and he is not sure when he is utilizing it, he can float his week. Having floated his week he can ask for reservations during other periods in the same year once he decides to have a holiday. An unutilized floated week is automatically accumulated. The time-share holder is also entitled to one split per year (in any combination, i.e. 1+6 pr 2+5 or 3+4 etc.) within his season classification. In classic period he can have any number of splits. The company aids in booing of tickets through the help of travel agents as well as pick-up of customer from bus or railway station, if they are intimated beforehand for which they charge a nominal amount. A each resort, the residents are involved in indoor games, treks, bonfires, fishing, expeditions and so on by a tem of fun rangers. For kids there are mini-zoos and playpens and hobby centers besides other recreation options. The company had decided to use personal selling as a major tool of its sales effort, backed by strong advertising. Group presentations rather than individuals contact selling are being preferred. Questions (a) Devise an appropriate sales presentation strategy for Sterling Resorts. (b) Design a complete sales plan, outlining sales targets, sales strategies, type of territory and sales quotas to be designed. In addition to the information given, you may make appropriate assumptions and state them. 14

1. Briefly discuss the personal selling process. How would the sales process differ if the product being sold was (a) household insurance? (b) Surgical equipment

2. (a) What do you understand by sales negotiation? How does it differ from selling? (b) Outline the steps in the negotiation process, taking the example of processing an order for supply of PCs to an educational institution. 3. Wile selection salespersons for their range of household electronic gadgets, one company decided to adopt the policy of hiring only experienced salesmen and preferable men who have had experience of selling similar or directly competitive products. Evaluate this policy in terms of its advantages and disadvantages. 4. (a) What are the important quantitative and qualitative measures used to evaluate salesmen? (b) What should be the components of a sale report for the salespersons involved in the task of servicing distributors for last moving consumer goods? 5. How are sales volume quotas set? If you were assigning sales quotas to your salesmen selling fertilizers in the rural markets, what are the attributes of a sales quota plan that you need to keep in mind? SECTION B 6. Read the case given below and answer the questions at the end of the case: KOMAL FOOD PRODUCTS COMPANY LTD. Komal Food Products Company which was founded in 1935 to manufacturer grocery and other food products had in the course of years grown into a vast enterprise having offices and branches in almost all the important cities in India. The company's head office and factory were situated in Calcutta. Its products were distributed through five zonal sales offices, which directed 25 district sales offices. The administrative responsibility of each zonal office was become by a manager whose duly was to promote sales in his zone. He was advised and instructed by the head office from time to time. Under the control of each zonal manager there were four functional heads, viz., personnel manager, accounts manager, sales manager and office manager. These executives advised and assisted the zonal manager on various functions relating to the zonal administration. Each functional had enjoyed considerable freedom and independence with respect to his work.

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On matters relating to sales the zonal manager received advice from the sales manager. The latter formulated policies, planned schedules for sales operations, suggested improvements in district sales administration; and submitted his views on all the matters concerning sales to the zonal manager. T times he issued orders and instructions to the district sales manger but these wee typically routed through the zonal manager. Ordinary his views and advice were accepted and approved by the zonal manager. The sales manager was assisted in his work by three product managers who were considered to be experts in their respective fields. Their duty was to travel with the sales supervisors of the various districts and study and market for the company's products survey the competitive position of the company's products, study dealer and consumer reactions, sales trends, and advise the district sales manager and the sales supervisors regarding the steps to be taken for promoting sales on the districts. Every month each submitted a report o the sales activities of the company to the sales manager. The relationship between the product manager and the sales manager is the same as that between the zonal manger and also sales manager. Also directly responsible to the zonal manger were five district sales managers each of whom was responsible for sales in his territory. Each district manager was in turn assisted by five sales supervisors besides several salesmen. The duties and functions of district sales managers were to: (i) Select train and supervise his sales supervisor and salesmen following the policies and procedures laid down by the zonal manager. (ii) make a study of the nature of consumer demand, changing market conditions, existing stock and to formulate sales campaigns, promotional methods; (iii) fix the sales targets to be attained in his territory from time to time. (iv) formulate the credit policies to be followed after consultation with the zonal manager. (v) develop better team work among the sales supervisors and salesmen (vi) see that the customers were satisfied with the company's service; (vii) undertake such other functions and duties as might be assigned to him from time to time by the zonal manager. Every month each district sales manger submitted a detailed report on the sales activities of the company in his district to the zonal manager. Ordinary these reports were passed on to the sales manager for the necessary action to be taken with respect to each district. On the morning of June 6, 1991, the following conversation took place over phone between Mr. Rajan the sales manager at the South Zonal Office and Mr. Shankar one of the district managers in the zone. Shankar: I wish to bring to your notice an important matte that needs your urgent consideration. The product managers are interfering too much with the sales activities of my district. I receive frequent complaints from the supervisors that they are not able to carry out my instructions due to unnecessary inference from these people if this state of affairs continues it will be very difficult to maintain our sales. 16

The morale of the supervisors will be seriously affected. I will not be responsible if sales drop this time in our area on this account. You must take some steps to see that the relationship between the line and staff is maintained on goods terms. Rajan: Mr. Shankar, you need not worry. I shall call the product managers and see that they maintain the proper relationship with you. Exy day Mr. Rajan called all the product managers and after discussing routine matters he said, " I was told by Mr. Shankar that his sales supervisors are complaining that you are interfering with their activities.. Definitely you are all expected to advise them on the steps to be taken for increasing sales. But, at the same time, please remember that you have o play only an advisory role. While advising these people you must also see that the line authority is respected" The product managers did not say anything. In the subsequent months Mr. Rajan did not receive any complaint from the district office. But in the first week of October, While scrutinizing the sales progress report of the various districts for the previous quarter, the zonal manager found an unusual decline in sales in the district, which was under the supervision of Mr. Shankar. The zonal manager called Mr. Shankar and asked him why there was so much declines in sales in his territory while all the other districts showed very good progress. Shankar ". During the past three months the product managers have not advised our men properly. In fact, they did not advise the supervisors of the recent changes and trends in the market. They seem to be unwilling to cooperate with our sales force. What can I do? Even then, we have done our best to maintain sales." When asked about this by the zonal manager one of the product managers sold, ". We used to give advice to this district office also as we usually do with other district offices. On a complaint seems from Mr. Shankar, we had been told by Mr Rajan that we were exceeding on authority and unnecessarily interesting with the activities of this district. We had been asked to restrain ourselves. The district managers talk advice directly from the zonal sales manager. We have got nothing to do in this matter" Questions 1. As the sales manager, how would you resolve the conflict, which has arisen between the product managers and the field sales staff? Justify your answer? 2. Do you think there are changes needed in to organizational structure of the company. Give your suggestions regarding these changes and any changes that you think are required in the reporting relationships in the organisation, between line and staff members.

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