Examination Paper of Semester IV IIBM Institute of Business Management Semester-IV Examination Paper Sales Management Section A: Objective Type (30 marks) • • • This section consists of Multiple Choice questions & Short Answer type questions. Answer all the questions. Part one questions carry 1 mark each & Part Two questions carry 5 marks each. MM.100
Part One: Multiple Choices: 1. Sales executives have responsibilities for coordination which involves a. Individual b. The organization c. The company d. None of the above 2. Who researched buyer-seller Dyads in the Life Insurance business a. Hanri Tosi b. McMurry c. Arnold d. Franklin Evans 3. Formula for calculating Gross Margin is a. Sales – Cost of sales b. Gross profit – Cost of sales c. Sales – Expenses d. None of the above 4. Coach- and – pupil method is a. Company Information b. Sales Technique c. On – the – just Training d. Both (a) & (c) 5. Term in which ratio measures the effectiveness of sales personnel in securing order a. “Lowering Average” b. “Batting Average” c. “Multiple Average” d. None of the average
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Examination Paper of Semester IV
6. District sales manager and planning report is called a. Manager plan b. District plan c. District sales plan d. None of the above 7. Numerical expression indicating the degree to which one or more factor associated with a given products demand is a. Sales Index b. Product Index c. Market Index d. Company Index 8. Event that strengthens the buyers tendency to make a particular response is called a. Reinforcement b. Cue c. Drives d. Both (a) & (b) 9. 2 Types of drive in learning process are a. Innate and learned drive b. Mutual and learned drive c. Innate and mutual drive d. None of the above 10. The weak stimuli which determine when the buyer will respond a. Cue b. Response c. Drive d. None of the above Part Two: 1. Write a short note on “Sales Resistance”? 2. What is “Controlling Selling Expenses”? 3. Write short note on “Product Line Policy”?
4. What do you understand by “Straight-Commission Plan”?
END OF SECTION A
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Examination Paper of Semester IV
Section B: Caselets (40 marks) This section consists of Caselets. Answer all the questions. Each caselet carries 20 marks. Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1 Allen Specialty Company, located in Detroit, Michigan, manufactured a line of Ballpoint pens, and mechanical pencils and, in the past five years, had added a line of stationary. Allen products were sold to stationary and office supply wholesalers and retailers, as well as to department stores, discount houses, drugstores, variety stores, and supermarkets. A field sales force of eighty-two persons operated out of six district sales offices. Allen management believed that a critical factor in the company’s sales success was the coordination of its national advertising and the activities of Allen salespeople and dealers. The sales promotion program was the responsibility of the sales promotion manager, Jack Biggerstaff, and his staff, in conjunction with the sales planning committee at Allen headquarters in Detroit. The sales planning committee consisted of the managers of merchandising, advertising, and marketing research.
The sales promotion plan, for both new and existing products, described objectives; roles of salespersons and dealers; anticipated sales; the national, local, and trade advertising; and point-of-purchase displays, deals, premiums, and contest offers. With approval of the sales promotion plan by the sales planning committee and the sales promotion manager, Jack Biggerstaff, the sales promotion department prepared sales promotion kits for the Allen sales staff. The kit included advertising proofs, products samples, illustrations of the point-of-purchase displays, samples of premiums offered, and a description of the special deal or context featured in the promotion. The sales promotion department prepared a timetable for each promotion plan, showing the date when each advertisement appeared in various media. The timetable was distributed to the sales force and dealers to enable them to time their sale and advertising to coincide with the national advertising, thereby achieving full impact from the advertising.
When the sales promotion plan was approved by headquarters, it was presented to Allen sales personnel at meetings in each of the six district sales offices. The sales promotion manager and the field sales promotion manager, who reported to the former and whose job was to work with Allen salespeople and dealers on sales promotion projects, made the presentation. Following the meetings, the field sales promotion manager trained the salespeople in proper presentation of the promotion and called on key dealers to enlist their support. The sales promotion program used with a recent new product introduction was typical of Allen’s efforts. In addition to the objectives and timetables, the sales promotion program included(1) selling tools for Allen sales people- circular letters describing the promotion, a visual presentation portfolio for making promotion presentations, product samples, reprints of consumer advertisements; (2) selling tools for Alen dealers- presentation kits for selling the new product to consumers , mail circulars for delears to send to consumers, mailing folders for use by dealers, sample folders, and a considerable amount of prize money
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Examination Paper of Semester IV for dealers sales personnel; and (3) advertising support for Allen dealers- advertising in national media and sample folders to be sent to consumers who responded to a coupon offer. The sales promotion programs were presented one each week in the district offices in late November and December. When the schedule was announced, Mike Halloran, assistant sales manager in charge of the Pacific Northwest district called Jack Biggerstaff to complain that the sales promotion orientation session in his district had been scheduled for December 27 during the quiet week when many of his salespeople had found extra time to spend with their families and when several had customarily taken short skiing vacations, Biggerstaff explained that the promotion plan would not be completed by home office personnel in the six sales regions, it was not possible to schedule more than one a week.
It was tough, but Halloran’s district had drawn the bad week this year. Halloran responded that he thought the sales promotion sessions were a waste of time anyhow. His salespeople lost two productive days in these sessions, and, in his opinion, knowledge of details of the Allen Company’s advertising and promotion plans didn’t make the sales rep’s job of selling to wholesalers and retailers any easier. Anyhow, it was the responsibility of the field sale promotion manager to work with the individual salespeople and call on key dealers. He also complained that when these sessions were scheduled in mid-November, they interfered with sales productivity in the busiest season of the year. 1. Evaluate the Allen Specialty Company’s organization and plan for coordinating sales and advertising? 2. How should Biggerstaff answer Halloram’s complaint?
Caselet 2 Holden Electrical Supplies Company Manufacturer of Electrical Equipment – Recruiting Sales Personnel Holden Electrical Supplies Company, Cincinnati, Ohio, 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 o industry buyers. The industrial products required considerable technical expertise upon the part of sales people. 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, to a level of nearly $150,000,000. 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, Holden’s sales recruiting problem was compounded by a noticeable decline in the number of college seniors wanting a selling career. Holden 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 Holden; consequently, management ordered an evaluation of recruiting methods. Virtually all Holden salespeople were recruited from twenty-five engineer- ing colleges by district sales managers. Typically, Holden recruiters screened two hundred college seniors to hire ten qualified sales engineers. It was estimated to cost Holden $600 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 interviewed accepted employment with Holden. 4 IIBM Institute of Business Management
Examination Paper of Semester IV 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 Holden 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 modifications, 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. Holden’s 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 Holden selling operation. The general sales manager felt that the two hundred sales engineers currently working for Holden were an excellent source of new recruits. They knew the requirements for selling the Holden line and were in continual contact with other salespeople. By enlisting the support of the sales force, the general manager foresaw an end to Holden’s difficulty in obtaining sales engineers. The president preferred internal recruiting from the non-selling division, such as engineering, design, and manufacturing. He claimed that their familiarity with Holden and their proven abilities were important indicators of potential success as sales engineers. A complete analysis of Holden’s entire personnel recruiting program was in order, and, regardless of the approach finally decided upon, it was paramount that the company have a continuous program to attract satisfactory people to the sales organization.