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Ms-62 question Bank

Ms-62 question Bank (5)

Ms-62 question Bank

December, 2009

Ms-62 : Sales Management


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.


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.


(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


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.


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.

June, 2011

Ms-62 : Sales Management


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.


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.


(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 ? 

December, 2011

Ms-62 : Sales Management


1. (a)  Discuss the qualities of a good salesperson citing suitable examples. Explain how

would you convert a suspect into a prospect ?

(b)  Explain the stages involved in the  execution of a sales order.

2. Why are sales territories required ? Discuss the various stages to Scientific territory planning and suggest what type of territory planning is appropriate in the following cases  :

(a)  A company selling bulk drugs to large pharma companies.

(b) A company selling food supplements.

(c) A company selling holiday packages.

3. (a)  What are the different components of a suitable compensation plan for salesmen ?

Suggest a suitable compensation plan for a salesman selling encylopedias.

(b)  Discuss the Key steps in preparation of a Sales Budget.

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

(a) Setting sales objectives

(b) Non - verbal communication

(c) Principles of negotiation

(d) Learning style.

(e) Contents of sales reports.


5.  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," opined Mr. Khurana, President of the Innova Computer Company. Mr. Roy, the newly hired sales manager for the company, decided to take note of this and asked "Is this representative of the entire sales force or an isolated case ?" "Mr. Roy that's what I am paying you to find out and do something about." Said Mr. khurana As Roy, walked back to his new office to deal with a multitude of other sales operation problems, he saw his task unfolding as two major activities.

(a) To determine how much the present sales force really knew about the computer products and how they are used.

(b) To develop an effective programme to equip the sales force with the required product


On reaching his desk, Roy, called his assistant Vinod. 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 when he graduated, joined the company full time. He was a little frustrated that he hadn't been promoted to Sales Manager When Roy was brought in from outside by Mr. Khurana. Roy asked Vinod, "I've just been in a meeting with Mr. Khurana and he has rather firm conviction 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, every time he sees one of the representatives making a presentation," replied Vinod. Roy thanked Vinod for his opinions but couldn't help wondering whether he could afford to ignore Mr. Khurana's comments.

Questions  :

(a) How can Roy 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 ? 

December 2012

Ms-62 : Sales Management


1.  Briefly explain the personal selling process. Discuss the importance of 'Sales Resistance' in the selling process. How do sales persons cope up with the same ? Support your answer by citing example of a consumer durable good.

2.  Define negotiation. Explain the steps involved in the negotiation process by taking example of an industrial good. Briefly explain the various negotiation strategies involved.

3.  What are the basic objectives of a good sales force monitoring system? List and briefly explain the parameters used to monitor salesforce of a company selling FMCG products.

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

(a)  Principles of effective presentations.

(b)  Centralization versus Decentralization in sales organizations.

(c)  I mportance of sales quotas.

(d)  Interdependence of sales and distribution.

(e)  Qualities of good Sales personnel.


5. You have been retained as a consultant to develop sales training programme to improve productivity of middle-level sales managers of a company manufacturing personal-care products like shampoos, creams and moisturizers etc. Describe the key features of the training programme devised by you. 

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