M.B.A. (Semester III) (CBCS) Examination, 2018
Gr. A Marketing Management
Paper II Sales and Distribution Management Paper XX
Day and Date Monday, 17-12-2018 Total Marks 70
Time 10.30 a.m. to 1.00 p.m.
Instructions Q. No. Q. Q. Q. 4 and Q. 7 are compulsory.
Attempt any one question from Q. 5 and Q. 6.
All questions carry equal marks.
1. Choose an appropriate answer. 14
A plan drawn by sales managers to ensure that all prospective markets are
visited by the sales team is known as a
Coverage Beat Call Market
Breaking bulk, storage and delivery to customers are the tasks performed
by a
C and FA Distributor Transporter Warehouse
Out of the three skills for the success of a sales manager, the two are
managing and technical skills.
Communication Negotiation
Problem solving People
The legend for AIDA formula includes attention, interest, desire and one of
the following
Arrangement Agreement Action Assistance
A sales budget consists of estimates of
Sales volume Selling expenses
Sales administrative costs All of above
Delphi method of sales forecasting was developed by Rand corporation
during
1930s 1940s 1950s 1960s
In defining sales territory the key word is
Sales Customer
Geographical area None of the above
Some companies use point sales volume quotas, instead of Rupees or unit
sales volume quotas, in order to improve
Sales volume Selling expenses
Profitability Market share
Seat
No. Set P
Set P
SLR-CL 37 *SLRCL37*
Sales contests are
Long-term incentive programmes
Medium-term incentive programmes
Short-term incentive programmes
All of the above
10) The first step in designing an effective sales compensation plan is
Set up specific objectives
Examine the existing job descriptions
Decide levels of pay
Decide indirect payment plan
11) The distribution function provides the consumer place, time and
utility.
Possession Ownership
Exchange Supply
12) Making the product available to consumers in just one outlet in a market is
known as
Selective distribution Unique distribution
Exclusive distribution Creative distribution.
13) Ownership flow in a channel means transfer of of goods.
Title Storage Value Consumption
14) A zero level channel denotes distribution channel.
Direct Own Dedicated Indirect
2. Short note 14
Briefly explain various kinds of channel numbers and their roles in ensuring
effective distribution.
Briefly describe the procedure for designing sales territories.
3. Short note 14
Explain briefly the steps involved in designing an effective compensation
plan.
Supply chain management.
4. What is sales management Explain why sales management is considered as
an important function. 14
OR
4. What is sales forecasting Describe in detail different methods of sales
forecasting and indicate its advantages and disadvantages. 14
Set P
*SLRCL37* SLR-CL 37
5. Analyze the case. 14
I think we need to have an incentive scheme for our field salespeople, so
as to motivate them to put more than normal effort. This will help us to increase
our market share and also make it possible for us to become number one player
from number three position that we are currently at. We have declared in last
annual marketing conference that we would become the leader in the precision
steel tube industry in three years. I believe we have to start working on that goal
immediately. Do you agree, Sir asked Krishna Kumar, the newly appointed
head of sales and marketing, to the executive director of STI Ltd, B. G. Gururaj
Rao.
agree to the extent that we have to work on our long-term goal. That does
not mean that we have to work without considering the long-term impact on the
company's profitability. So far, in last 15 years of our company's operations, sales
and other functional employees have been paid a fixed salary, fringe benefits and
once a year bonus. Why should we pay incentives to only salespeople Why
not people in production, which also a line function What about other support
functions like accounts, administration and human resource We need extra
efforts from all employees, not salespeople. If we try to motivate salespeople
by paying commission on achieving their sales quotas, other employees and
particularly shopfloor workers and supervisors will demand extra money by some
kind of incentive schemes. If we deny an incentive payment to other employees,
they will not only get de-motivated, but may even go on a strike. Besides, the
profit contribution per unit of our product sold is very low and any increase in
cost due to incentive payments without substantial increase in sales volume
will wipe out the thin profitability our company. We have considered the various
factors before we take a decision on the incentive scheme for sales people. I
hope you understand responded Gururaja Rao.
Sir, I suggest we discuss this subject later in our monthly budget review
meeting, when other managers and also our Chairman and managing director
will be present. In the meantime, I will also apply my mind and prepare a specific
proposal, which I will discuss with you before the budget review
Krishna Kumar said and thereafter left for his office.
Questions
Do you think this company needs an incentive scheme for motivating their
salespeople
Suggest a suitable compensation plan for the salespeople. Make
assumptions, if needed.