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. How do factors like nature of the product, profile of the target market and company resources affect the sales job? Explain by taking the examples of the following selling situations.

(a) Selling of a consumer durable product

(b) Selling of an industrial product

2. (a) How are the media options for sales programmes selected? Discuss the consideration which guide the selection

(b) How do kinetics and proxemics help the sales communication process?

3. Assume that you area sales manager managing a large sales force of salespersons required to sell consumer non-durable to retailers and wholesalers. How would you develop the job description for your salespersons? Give a stepwise detailed account.

4. (a) How can territory productivity to improved?

(b)Describe the steps in territory planning. What approaches would you use for territory planning in case of

(i) selling of agriculture pesticides for the nationwide market?

(ii) Selling of jewellery watches to up-market urban stores in metros and mini-metros?

5. Write short notes on any four of the following:

(i) Sales forecasting techniques for a new product
(ii) Salesperson evaluation
(iii) Product life cycle salesperson compensation
(iv) Non-verbal communication
(v) Computer applications in sales management
(vi) Interdependence of sales and distribution

SECTION B

6. Read the case given below and answer the questions at the end of the case:

The pioneers in the field of holiday resorts in India were "Dalmia Resorts" and "Ornate Club of India" Dalmia introduced the current of property time-share in which the company transfers the property rights in equal proportions to the buyer via a sale deed. Generally, the property is divided among fifty buyers each getting a time-share of 1/50th of the year, i.e. one-week. Two weeks are kept for maintenance. Starting Holiday Resorts (I) Ltd., started off in 1986, selling property time-shares with a lakeside resort in Kodaikanal in tamil Nadu. It is a public limited company with an equity base of Rs. 6.75 crores.

TIME-SHARING

Time-sharing is a concept giving the right to the buyer to stay for one week at the Sterling Resorts for 99 years without having a right to the property. In a world moving towards buying on credit, Sterling dares to ask the target buyer to pay in advance for something that doesn't yet exist, and when it does, Sterling grants him no control over the product, let alone possession….

MARKET SEGMENTATION

According to the data furnished by sterling, its market segments are as given in Table 1.

TABLE 1 Market Segmentation of Sterling

Besides individuals, big corporate houses were also considered.

MARKET TARGETTING

Individuals with annual income over Rs. 90,000 and big corporate houses were targeted. Sterling's target vacationer is the relatively better off but no rich family man in his early thirties who is under constant work pressure and is yearning for a break from worldly headaches. He is the caring, conservative husband-father who loves submitting to his family chorus for a long overdue holiday. He finds hotels unaffordable and travels arrangements difficult. For him a time-share week is found to be an affordable alternative, with the added advantage of travel booking looked after by Sterling and the freedom to cook ones' own food in the cottage kitchenette. Sterling also has facilities for meetings and conferences targeted at business houses.

MARKET POSITIONING

Sterling is positioned in the high price and high quality segment. Their communication to customers is mainly through advertisements, in newspapers, business magazines, in-fight magazines, and direct mail.

PRESENT LOCATIONS

With more than 50,000 time-shares, Sterling has 12 operating resorts, two each in Kodaikanal, Ooty and Darjeeling and one eac at Yercaud. Mussoorie, Goa, Manali, Munner and Puri. The other resorts coming up are in Lonavala and Mahabaleshwar in Maharashtra Coorg and Vorbett. Plans for several resorts on some of India's most popular holiday spots will beunderway. The capacity at various resorts is as follows:

PRICES

The price of a time-share for a particular resort depends on the location of the resort, the type of apartments and seasons. In addition to this, prices can be used as a promotional strategy to promote a less demanded resort to even out the disequilibrium in demand. There is also a provision to pay the amount in three installments within a period of six months

FACILITES AND FEATURES

The living space in a resort comes in three standard sizes of fully furnished cottage options --- twin, regular and compact with a mzximum capacity of six, four and three adults, respectively. For including an even-spread in usage over the year, time-share prices vary from a high in peak season called premium weeks to a low in lean season called classic weeks. In between are the season weeks and the rice differences are determined by the demand. Typically, the price of a time-share would range from a high of Rs. 52,000 to a low of Rs. 32,000 for a regular unit.

Once bought, the week may be exchanged for one at another resort in the Sterling network and, more importantly, a week some other time of the year in the same or cheaper season band, provided sufficient notice is given to the company. The week may also be split or carried over to the next year (accumulated), given some conditions. The buyer is free to gift rent sell or bequeath his time-share.

Sterling keeps a portion of the unsold weeks which are let out daily tariff to "free individual travelers". At present, 30% of the 5000 weeks a year available at Sterling are sold as time-shares. Also, "no shoes" and week transfer to other resorts ensure that Sterling always has enough space to offer for normal non time-share hotel stay. The money to keep the maintenance going forever comes from these hotel revenues. The idea is to keep unit as a self-perpetuating business unit.

A premium week time-share holder can exchange his time- share with a premium season for classic week. A season week can be exchanged with a season or classic week, whereas a classic week can be exchanged with a classic week only. All exchanges are done in the same calendar year. If a time share older is not going to use his allotted week and he is not sure when he is utilizing it, he can float his week. Having floated his week he can ask for reservations during other periods in the same year once he decides to have a holiday. An unutilized floated week is automatically accumulated.

The time-share holder is also entitled to one split per year (in any combination, i.e. 1+6 pr 2+5 or 3+4 etc.) within his season classification. In classic period he can have any number of splits. The company aids in booing of tickets through the help of travel agents as well as pick-up of customer from bus or railway station, if they are intimated beforehand for which they charge a nominal amount.

A each resort, the residents are involved in indoor games, treks, bonfires, fishing, expeditions and so on by a tem of fun rangers. For kids there are mini-zoos and playpens and hobby centers besides other recreation options. The company had decided to use personal selling as a major tool of its sales effort, backed by strong advertising. Group presentations rather than individuals contact selling are being preferred.

Questions

(a) Devise an appropriate sales presentation strategy for Sterling Resorts.

(b) Design a complete sales plan, outlining sales targets, sales strategies, type of territory and sales quotas to be designed. In addition to the information given, you may make appropriate assumptions and state them.