Sales and Distribution Management-2

Assignment – A

Question 1. Define Sales Management. What are the objectives of Sales Management?

Question 2. Explain the AIDAS Theory of Selling with the help of suitable examples.

Question 3. What is the purpose of a Sales Organization? What steps you will take for setting up of a Sales Organization? Explain with the help of suitable example.

Question 4. What are the different sources of Sales Force Recruits? Illustrate with the help of suitable examples.

Question 5. Write short notes on any three of the following:-
(a) Requirements of a Good Sales Compensation Plan
(b) Quantitative Performance Standard
(c) The emergence of global retailing
(d) Planning Sales Training Programs
(e) Sales Quotas and Sales Territories.

Assignment – B

Question 1. Explain Merchandise Planning and Control with the help of suitable examples.

Question 2. What is wholesaling? Explain the different marketing functions performed by wholesaler-distributors for manufacturers with the help of suitable examples.

Question 3. a) Describe Physical Distribution Concept. What is Physical Distribution Cycle? Give your answer with the help of suitable examples.
b) What do you mean by managing marketing channels? Explain the three stages of managing the Marketing Channels. What are the criteria for choosing channel partners from the supplier’s viewpoint?

Case Study

Hiring the Right Person

Andrew Pharmaceutical Limited was engaged in formulations and some bulk drugs and had its factory and head office in Bangalore. The company has grown at thirty per cent for the last three years and had a turnover of Rs. 26 cores last year. The company employed 25 managerial and 150 non-managerial staff at their factory located at Bangalore. A, sales force of 65 sales representatives was managed by 16 district sales managers, further reporting to five regional managers of regional offices located in Delhi, Mumbai, Calcutta, Hyderabad and Indore.

However, a sudden rise in the number of sales force created problems regarding monitoring, coordination and administration of sales representatives, stockists and dealers. A need was felt to revamp the system as the marketing director was unable to handle the overall marketing function. It was felt that the general management cadre must be introduced to take charge so that the marketing director will be free to concentrate on the strategic and development activities.

A high level meeting of directors discussed the issues and a decision was taken to introduce general manager-marketing, and personnel department was asked to initiate the process and one Mr. Ravi Saxena was chosen for the new position. Mr. Ravi Saxena had a decade of managerial experience in marketing and product development though his direct sales experience was negligible. However his planning and execution skills were good and thus he was considered the best option for developing systems of market information, dealer and representative relations etc. His profile, as briefed to him by Marketing Director, Chandra Mohan, included management of sales and distribution and product development. Ravi made a six monthly plan and started the work and initiated an extensive communication with dealers, stockists and representatives for an effective market information system. Within six month’s time, however, things began to worsen at the marketing department. The interaction between Marketing Director and Mr. Ravi Saxena was minimum and often ended in confrontations. Mr. Ravi Saxena had in the past six months tried unsuccessfully to change some policies and systems related to payments and training dealers and sales representatives. Every time he proposed any such change, it was rejected by Chandra on the plea that the systems had worked well in the past and hence no change is required. On the other hand Mr. Ravi Saxena felt that he cannot be held responsible for results, when he has no power or authority to improve the system. As a result of such a conflict Mr. Ravi Saxena began

to withdraw from making plans, meetings were conducted with customary interaction amongst two seniors and thus created an environment of confusion and uncertainty for managers and representatives. Mr. Ravi Saxena gradually became more defensive as the initial work done on market information system also suffered. In spite of lack of support from Mr. Chandra, Mr. Ravi Saxena made significant improvements in the area of training for sales staff and product development. The product launches, promotion and literature improved considerably in quality and the regular training improved the motivation of sales staff all around the five regions. The regional managers and sales people, very subtly began to appreciate his efforts and he enjoyed a good rapport with his people.

Mr. Chandra Mohan, however, was convinced that delays in decisions and inadequate control of sales force were becoming major issues and blamed Mr. Ravi Saxena for this, but he decided not to communicate with Mr. Ravi Saxena. As the time passed, their ‘relations worsened.

A regional manager created some troubles in the meantime. Mr. Ravi Saxena insisted that some action against the manager will put forth the company’s stand but Chandra didn’t care. As a result everything went out of control, the coordination collapsed and fake medicines were recovered from a stockist in a police raid. Later, an enquiry revealed that the regional manager in connivance with a rival company had done some activities which led to the fake medicines racket.

The company suffered a loss of name and its credibility in the market. The Managing Director, Subhash Jain was anguished and ordered sacking of the regional manager and also demanded explanation on how things went this far.

Questions:
(a) What are the major issues in this case?
(b) What reasons led to a conflict between Mr. Ravi Saxena and the Marketing Director Mr. Chandra Mohan? Did these conflicts arise due to unclear policies of the company?
(c). How can the conflict in these two positions be minimized? Give your recommendations.

Assignment – C

1. From the sales management point of view, gross margin is equal to–
(a) Cost of sales + sales
(b) Sales – cost of sales
(c) Profit + cost of sales
(d) None of these

2. From the sales management point of view, net profit is equal to–
(a) Gross margin + expenses
(b) Sales – cost of sales
(c) Gross margin – expenses
(d) None of the above

3. Franklin Evan researched buyer-seller dyads in the ______________ business.
(a) Insurance
(b) Banking
(c) Communication
(d) Aviation

4. From the sociologist’s point of view, ‘dyad’ means–
(a) A situation where only buyers are there.
(b) A situation where only sellers are there.
(c) A situation in which two people interact.
(d) None of the above.

5. From the salespersons point of view, the objective factors are–
(a) Education, age, income
(b) Income, religion, education
(c) Income, height, education
(d) None of these

6. AIDAS theory talks about–
(a) Attention, interests, desire, action and satisfaction
(b) Attitudes, interests, desire, action and satisfaction
(c) Agreement, interests, desire, action and satisfaction
(d) None of the above

7. From the AIDAS theory point of view, the __________goal is to intensify the prospect’s attention so that it evolves into strong interest.
(a) Attention.
(b) Inducing actions.
(c) Gaining interest.
(d) None of the above.

8. The mental process involved in a purchase is–
(a) Need (or problem) > solution > sale
(b) Need (or problem) > solution > purchase
(c) Need (or problem) > solution > output
(d) None of these

9. Buying Formula is also known as–
(a) Theory of Buying
(b) Theory of Selling
(c) Theory of Profit
(d) None of the above

10. The four essential elements of the learning process included in the stimulus response model are–
(a) Drive, cue, response and reinforcement
(b) Response, drive, cue and enforcement
(c) Reply, drive, cue, and reinforcement
(d) None of the above

11. ________ is a weak stimuli that determines when the buyers will respond.
(a) Drive
(b) Cue
(c) Response
(d) None of the above

12. ____________ is any event that strengthens the buyer’s tendency to make a particular response.
(a) Drive
(b) Cue
(c) Reinforcement
(d) none of the above

13. There are _______ steps in prospecting.
(a) Three
(b) Four
(c) Two
(d) None of the above

14. Marketing management in consultation with sales management determines _______________ exact role in the promotional program.
(a) Publicity’s
(b) Personal Selling’s
(c) Sales Promotion’s
(d) None of the above

15. Stocking and promoting the product line is a qualitative objective of–
(a) Publicity
(b) Sales Promotion
(c) Personal Selling
(d) None of the above

16. ______________ is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of a good or service during a stated future period.
(a) Sales Potential
(b) Sales forecast
(c) Market Potential
(d) None of the above

17. The first step in analyzing a product’s market potential is to identify its–
(a) Product
(b) Price
(c) Promotion
(d) Market

18. Using market factors for analyzing market potential is a _________ process.
(a) Two-step
(b) Three-step
(c) Four-step
(d) One-step

19. ______________ is a procedure for estimating how much of a given product (or product line) can be sold if a given marketing program is implemented.
(a) Buyers Interests
(b) Sales Forecasting
(c) Market Potential
(d) None of the above

20. ____________ is one statistical technique for short-range sales forecasting,
(a) Chi-square
(b) Exponential Smoothing
(c) Factor Analysis
(d) none of these

21. _________________ analysis is a statistical process, used in sales forecasting, determines and measures the association between company sales and other variables.
(a) Conjoint
(b) Regression
(c) Chi-square
(d) None of the above

22. Tasks of line administration are sub-divided among the new assists in one of _______ ways.
(a) Four
(b) Five
(c) Three
(d) None of the above

23. A large firm with far-flung selling operations is likely to subdivide line authority ______________.
(a) Geographically
(b) Politically
(c) Economically
(d) Socially

24. The third scheme for subdividing line authority is by type of ______________.
(a) Customer or purchase channel
(b) Seller or marketing channel
(c) Customer or marketing channel
(d) None of these

25. Non-personal selling techniques are the province of the __________ department.
(a) Purchase
(b) Advertising
(c) Selling
(d) None of the above

26. Product Development Committee works in coordination between _________ and ___________ departments.
(a) Purchase and R&D
(b) Sales and R&D
(c) Sales and Finance
(d) Sales and Accounting

27. Sales force management is a specialized type of _____________ management.
(a) Marketing
(b) Personnel
(c) Operations
(d) None of the above

28. The qualifications needed to perform the job are detailed in the ____________.
(a) Job Specifications
(b) Job Analysis
(c) Job Satisfaction
(d) none of these

29. The method that breaks down subject matter into numbered instructions units called frames, which are incorporated into a book or microfilmed for use with a teaching machine is–
(a) On the Job Training
(b) Programmed Learning
(c) Impromptu Discussion
(d) None of the above

30. Initial sales training is a–
(a) Line function in some companies and staff function in other organizations.
(b) Line function.
(c) Staff function.
(d) None of the above.

31. The three types of compensation plans are–
(a) Straight salary, straight commission, and a combination of salary and variable elements.
(b) Salary, commission and other miscellaneous elements.
(c) Salary, commission and perks.
(d) None of the above.

32. ______ is an auxiliary device capable of transmission of sight and/or sound stimuli.
(a) Advance assignments.
(b) Training aids.
(c) Printed materials.
(d) None of the above.

33. Needs that are inborn or physiological needs for food, water, rest, sleep, air to breathe, sex, and sun, the fulfillment of which are basic to life itself. These needs are–
(a) Secondary needs
(b) Primary needs
(c) Auxiliary needs
(d) None of the above

34. A sales compensation plan has as many as ______ basic elements.
(a) Two
(b) Three
(c) Four
(d) None of the above

35. ________ account provides the salesperson with a stipulated sum to cover all expenses during a given period, such as a month or week.
(a) Flexible expense account.
(b) Flat expense account.
(c) Miscellaneous account.
(d) None of the above.

36. __________ measures the effectiveness of sales personnel in securing orders.
(a) Average cost ration
(b) Call-frequency ration
(c) Order call ration
(d) None of the above

37. ________________ market share on a territory-by-territory basis.
(a) General.
(b) Territorial.
(c) Augmented.
(d) none of the above

38. From the emerging global retailing point of view, the “tough three” are–
(a) Italy, South Korea and Japan
(b) South Korea, Japan and China
(c) Japan, China and India
(d) None of the above

39. From the emerging global retailing point of view, the “torrid three” are–
(a) Mexico, Argentina, India
(b) Mexico, Turkey and Argentina
(c) Turkey, India, Brazil
(d) None of the above

40. “Formidable four” means–
(a) Greatest political and economic risks with a poor retail infrastructure, but
rapidly growing middle classes hungry for consumer goods.
(b) Rapid but volatile economic growth with an undeveloped retail sector.
(c) Strong economies with large middle classes.
(d) None of the above.