PAPER 1 1. (a) What is the difference between AIDAS theory of selling and the buying formula theory of selling?

Explain by taking the example of any sales situation of your choice. (b) How does the relative importance of advertising and personal selling vary across the different stages of the purchase process? Explain. 2. (a) Describe the principals of effective presentation. (b) How would you plan your sales presentation if you were a salesperson responsible for selling personal computers to individual consumers? 3. How can training needs of salespersons be identified? How do the learning styles of salespersons affect the design of the sales training programme? Use illustrative examples to substantiate your answer. 4. (a) How are sakes volume quotas set? (b)You are a large publishing house, publishing scientific and technical booked for a nationwide customer base. What type of field sales organisation would you design and why? 5. Write short notes on any four of the following: (a) Preparation of sales budget (b) Motivation tools for salespersonnel (c) Interview as a tool as sales-force selection (d) Negotiation process (e) "Sales close" techniques (f) Diversity of sales situations SECTION B 6. 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. "Since the personal lall up was Mr. Prakash, President of the Polanis Computer Company, Basant Mehta, the newly hired sales manager for the company, decided he had better head March. Basant nodded and asked "Is this representative of the entire sales force or an isolated case?" "Mr. Mehta that's what am paying you to find out and do something about." As Basant walked back to his new office to deal with a multitude of other sales operation problems he said his task unfolding as two major activities. (i) to determine how much the present sales force really knew about the computer products and how they are used and (ii) to develop an effective program to equip the sales force with the required product knowledge. On reaching his desk, Basant called his assistant, Vinod Kale. 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 then took up a temporary when he graduated and joined the company full time. He was as little frustrated that he hadn't been

promoted to Sales Manager when Basant was brought in from outside by Mr. Prakash. Basant asked Vinod, "I've just been in a meeting with Mr. Peach, and he has rather firm connections 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, and everything he sees one of the representatives making a presentation. Basant thanked Vinod for his opinions but couldn't help wondering whether he could afford to ignore Mr. Prakash's comments. Questions: (a) How can Basant 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?

PAPER 2 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

PAPER 3 1. (a) What are the key qualities of an effective salesperson? b) How would the sales job differ in the following situation and what would compute the important sales activities in each case: (i) Pharmaceuticals salesperson calling on doctors (ii) Nike salesperson selling shoes at the company's retail other. 2. Briefly discus the significance of personal selling in today's highly competitive marketing environment. How would you meet sales resistance in the following situation: (i) A sincere objection raised by the customer about the high price of your product. (ii) An insincere objection relating to the shape of the bottle in which your cough syrup is being sold. 3. What are the various stages n planning your presentation strategy? How would you select the presentation media if you were planning to have a face to face presentation of a group insurance scheme to policy makers in a large organisation? 4. Discuss the process of identifying training needs of salespersons, What kind of training program would you suggest in the following situations and why? (a) Training new recruits to a company selling pollution checking equipment. (b) Training senior salespersons identified for taking senior management positions in the company. 5. (a) What are the attributes of a good sales quota plan? (b) Discuss the commonly used methods of sales control. How should sales analysis be done for a multiproduct organisation selling consumer nondurables through nationwide retail network? SECTION B 6. Read the case given below and answer the questions at the end of the case: CASE: NATRAJ SPECIALITY COMPANY Natraj Speciality Company, located in Bangalore, kamataka, manufactured a line of ball point pens, micro-tip pens, and all types of markers and in the past five years, had added a line of stationery. Natraj products were sold to stationery and office supply wholesalers and retailers, as well as to department stores, variety stores and supermarkets. A field sales force of eighty-two persons operated out of five zonal sales offices (East, West, Central, North and South zones). Natraj management believed that a critical factor in the company's sales success was the coordination of its national advertising and the activities of Natraj salespeople and dealers. The sales promotion programme was the responsibility of the sales promotion manager, Jatin Banerjee, and his staff, in conjunction with the sales planning committee at Natraj headquarters in Bangalore. 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 sale promotion plan by the sales planning committee and the sales promotion manager, Jatin Banerjee, the sales promotion department prepared sales promotion kits for the Natraj sales staff. The kit included advertising proofs, product samples, illustrations of the point-of-purchase displays, samples of premiums offered, and a description of the special deal of contest featured in the promotion. The sales promotion department prepared a timetable for each promotion plan, showing the data when each advertisement appeared in various media. The timetables was distributed to the sales force and dealers to enable them to time their sales 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 Natraj 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 jon was to work with Natraj salespeople and dealers on sales promotion projects, made the presentation. Following the meetings, the field sales promotion manger trained the salespeople in proper presentation of the promotion and called on key dealers to enlist their support. The sales promotion, programme used with a recent new product was typical of Natraj's efforts. In addition to the objectives and timetables the sales promotion program included (1) selling tools for Natraj 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 Natraj dealers - presentation kits for selling the new products to consumers, mail circulars to send to consumers, mailing folders for use by dealers, sample folders, and a considerable amount of prize money for dealers sales personnel; and (3) advertising support to Natraj 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 each week in the district offices in late November and December. When the schedule was announced; M. Harharan, assistant sales manager in-charge of the Northwest district called Jatin banerjee to complain that the sales promotion orientation session in his district had been scheduled when they had found extra time to spend with their families and when several had customarily taken year-end pending leave. Banerjee explained that the promotion plan would not b completed until mid or 3rd week of November, and since these sales promotion meetings were conducted by home office personnel in the five sales regions, it was not possible to schedule more then a week. It was not Hariharan's district had drawn the bad week this year. Hariharan 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 Natraj Company's advertising and promotion plans didn't take the sales rep's job of selling to wholesalers and retailers any easier. Anyhow it was the responsibility of the field sales promotion manager to work the individual sales people and call on key dealers. In mid-November, they interfered with sales productivity in the busiest season of the year. a) Evaluate the Natraj Speciality Company's organisation and plan for coordination of sales function. (b) How should Banerjee answer Hariharan's complaint? PAPER 4 1. Briefly discuss the personal selling process. How would the sales process differ if the product being sold was (a) household insurance? (b) Surgical equipment 2. (a) What do you understand by sales negotiation? How does it differ from selling?

(b) Outline the steps in the negotiation process, taking the example of processing an order for supply of PCs to an educational institution. 3. Wile selection salespersons for their range of household electronic gadgets, one company decided to adopt the policy of hiring only experienced salesmen and preferable men who have had experience of selling similar or directly competitive products. Evaluate this policy in terms of its advantages and disadvantages. 4. (a) What are the important quantitative and qualitative measures used to evaluate salesmen? (b) What should be the components of a sale report for the salespersons involved in the task of servicing distributors for last moving consumer goods? 5. How are sales volume quotas set? If you were assigning sales quotas to your salesmen selling fertilizers in the rural markets, what are the attributes of a sales quota plan that you need to keep in mind? SECTION B 6. Read the case given below and answer the questions at the end of the case: KOMAL FOOD PRODUCTS COMPANY LTD. Komal Food Products Company which was founded in 1935 to manufacturer grocery and other food products had in the course of years grown into a vast enterprise having offices and branches in almost all the important cities in India. The company's head office and factory were situated in Calcutta. Its products were distributed through five zonal sales offices, which directed 25 district sales offices. The administrative responsibility of each zonal office was become by a manager whose duly was to promote sales in his zone. He was advised and instructed by the head office from time to time. Under the control of each zonal manager there were four functional heads, viz., personnel manager, accounts manager, sales manager and office manager. These executives advised and assisted the zonal manager on various functions relating to the zonal administration. Each functional had enjoyed considerable freedom and independence with respect to his work. On matters relating to sales the zonal manager received advice from the sales manager. The latter formulated policies, planned schedules for sales operations, suggested improvements in district sales administration; and submitted his views on all the matters concerning sales to the zonal manager. T times he issued orders and instructions to the district sales manger but these wee typically routed through the zonal manager. Ordinary his views and advice were accepted and approved by the zonal manager. The sales manager was assisted in his work by three product managers who were considered to be experts in their respective fields. Their duty was to travel with the sales supervisors of the various districts and study and market for the company's products survey the competitive position of the company's products, study dealer and consumer reactions, sales trends, and advise the district sales manager and the sales supervisors regarding the steps to be taken for promoting sales on the districts. Every month each submitted a report o the sales activities of the company to the sales manager. The relationship between the product manager and the sales manager is the same as that between the zonal manger and also sales manager. Also directly responsible to the zonal manger were five district sales managers each of whom was responsible for sales in his territory. Each district manager was in turn assisted by five sales supervisors besides several salesmen. The duties and functions of district sales managers were to:

(i) Select train and supervise his sales supervisor and salesmen following the policies and procedures laid down by the zonal manager. (ii) make a study of the nature of consumer demand, changing market conditions, existing stock and to formulate sales campaigns, promotional methods; (iii) fix the sales targets to be attained in his territory from time to time. (iv) formulate the credit policies to be followed after consultation with the zonal manager. (v) develop better team work among the sales supervisors and salesmen (vi) see that the customers were satisfied with the company's service; (vii) undertake such other functions and duties as might be assigned to him from time to time by the zonal manager. Every month each district sales manger submitted a detailed report on the sales activities of the company in his district to the zonal manager. Ordinary these reports were passed on to the sales manager for the necessary action to be taken with respect to each district. On the morning of June 6, 1991, the following conversation took place over phone between Mr. Rajan the sales manager at the South Zonal Office and Mr. Shankar one of the district managers in the zone. Shankar: I wish to bring to your notice an important matte that needs your urgent consideration. The product managers are interfering too much with the sales activities of my district. I receive frequent complaints from the supervisors that they are not able to carry out my instructions due to unnecessary inference from these people if this state of affairs continues it will be very difficult to maintain our sales. The morale of the supervisors will be seriously affected. I will not be responsible if sales drop this time in our area on this account. You must take some steps to see that the relationship between the line and staff is maintained on goods terms. Rajan: Mr. Shankar, you need not worry. I shall call the product managers and see that they maintain the proper relationship with you. Exy day Mr. Rajan called all the product managers and after discussing routine matters he said, " I was told by Mr. Shankar that his sales supervisors are complaining that you are interfering with their activities.. Definitely you are all expected to advise them on the steps to be taken for increasing sales. But, at the same time, please remember that you have o play only an advisory role. While advising these people you must also see that the line authority is respected" The product managers did not say anything. In the subsequent months Mr. Rajan did not receive any complaint from the district office. But in the first week of October, While scrutinizing the sales progress report of the various districts for the previous quarter, the zonal manager found an unusual decline in sales in the district, which was under the supervision of Mr. Shankar. The zonal manager called Mr. Shankar and asked him why there was so much declines in sales in his territory while all the other districts showed very good progress. Shankar ". During the past three months the product managers have not advised our men properly. In fact, they did not advise the supervisors of the recent changes and trends in the market. They seem to be unwilling to cooperate with our sales force. What can I do? Even then, we have done our best to maintain sales."

When asked about this by the zonal manager one of the product managers sold, ". We used to give advice to this district office also as we usually do with other district offices. On a complaint seems from Mr. Shankar, we had been told by Mr Rajan that we were exceeding on authority and unnecessarily interesting with the activities of this district. We had been asked to restrain ourselves. The district managers talk advice directly from the zonal sales manager. We have got nothing to do in this matter" Questions 1. As the sales manager, how would you resolve the conflict, which has arisen between the product managers and the field sales staff? Justify your answer? 2. Do you think there are changes needed in to organizational structure of the company. Give your suggestions regarding these changes and any changes that you think are required in the reporting relationships in the organisation, between line and staff members. PAPER 5 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 nondurable 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 timeshare 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
Annual Income Below Rs. 90,000 Rs. 90,000 1,80,000 Rs. 1,80,000 and above Mode of Employment Self-employed Professionals Small Scale Small Scale Small and medium scale Young. Low income Middle aged, middle income Middle aged, high income

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:

Place Yercaud Goa Ooty Kodaikanal Puri PRICES

Number of families 50 120 240 250 50

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 selfperpetuating 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. 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.