MS-62 Sales Management Sample Paper

MBA - Master of Business Administration

Note: This paper consists of two Sections A and B. Attempt any three questions from Section A. Section B is compulsory. All questions carry equal marks.

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

(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.

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.