Management of a Sales Force

Section A: Objective Type & Short Questions (30 marks)

Part One:

Multiple Choices:

1. ____________ is the conscious, systematic process of making decisions about goods and activities that an individual, group, work unit or organization will pursue in the future.

1. Controlling

• Planning

• Training

• Staffing

• Which of the following comes under forecasting steps?

1. Trends in sales

• Past Pattern

• Competitive factors

• All of the above

• SMART Stand for_______

1. Specific-Measure-Achievable-Realistic-Time-bound

• Smart-Measurable-Achievable-Realistic-Time-bound

• Specific-Measurable-Achievable-Realistic-Time-bound

• None of the above

• Which of the following is not comes under relationship selling?

1. Respond to customer needs

• Proactive

• Value-based offers

• Customer‟s customer

• Establishing the resource needed to successful execute the operating plan by hiring, coaching and developing people is known as______

1. Planning

• People Development

• Proactive Review
  • All of the above

• AIDA stands for_________

• This study was conducted using the questionnaire technique among first line managers of Pharmaceutical companies is called______

1. Results

• Methodology

• Both (a) & (b)

• None of the above

• ______refers to a solely fixed financial reward provided at appropriate times, either weekly or monthly, depending on the pay period norm.

1. Performance Bonus

• Straight Commission

• Straight Salary

• Salary plus Bonus

• Which of the following comes under job Description?

1. Duties

• The job title

• Responsibilities

• All of the above

1. _______is the process of weaning our the good from the bad from the large pool of applicant and choosing the right applicant for the job and the company.

1. Recruiting

• Selecting

• Discrimination

• None of the above

Part Two:

1. Write a short note on „Territory Management‟.

• Define the Assessment of Sales Training?

• List the tips on making a good sales plan.

• Explain the Types of Training?

Section B: Caselets (40 Marks)

Caselet 1

MAJESTIC PLASTICS COMPANY

Reps Selling Too Many Low-Profit Products

Over the past several days the top executives in the Majestic Plastic Company had been conducting their annual performance review of the company‟s operations. The company president, Boyd Russell, sat in on most of these sessions and periodically became quite involved in some of the departmental reviews. The sales department was the one currently under discussion, and Clyde Brion, the general sales manager, was the focus of attention. Overall, the sales and profit results were satisfactory, but the executives noted what they thought was a problem in two Louise Shannon was the rep, and the other was in Chicago, which was Henry Sadowski‟s territory.

In each of these territories, the sales reps total sales volume was satisfactory. The problem was that the bulk of their sales volume was in low profit products- that is, products whose gross margin was well below the company‟s desired average. Then the chief financial officer, Oliver Twombly, recalled that this same situation had been brought up at last year‟s performance review. Clyde Brion realized he was on the spot with his fellow executives, including the president.

Top management really did not want to change the basic compensation plan because, oer the company as a whole, it apparently had been working okay. And Brion concurred in this decision. He pointed out that Shannon ad Sadowski consistently met their total sales quotas and that each had won a sales contest designed to stimulate total sales. But their performance was not balanced. They went way over quota on low-margin goods. They were not selling a desirable mix of products, nor were they generating their share of new accounts. Basically they were getting large repeat orders from a few established accounts. And Shannon and Sadowski generally were neglecting the newer products that were the foundation of the company‟s future growth.

Brion had been aware of this situation for some time, but he had never given it the attention it deserved, partly because the two reps total sales volume was satisfactory and partly because he had other brushfires to put out. Now he was convinced that he had better do something-and do it quickly.

Question:

1. What should Clyde Brion do to remedy the imbalanced sales performance of Louise Shannon and Henry Sadowski?

Caselet 2

SUNRISE CLEANERS

To Train or Not to Train

Sunrise Cleaner Company‟s sales have been expanding rapidly in the past several years and are expected to continue increasing throughout the next decade. In order to meet this demand, Mickie Parsons, Sunrise‟s sales manager, has hired a number of sales representatives and expects to hire 6 to 10

Sales people in the coming year and more the following year. In the past, Sunrise hired only experienced reps, but lately the company has been hiring recent marketing graduates. While the new grades don‟t have experience, they often are a high level of motivation and a good understanding of overall marketing planning. However, the less experience reps need more training-both on company policies and sales procedures-before they are effective in making sales calls. Parson is trying to design a training program that will provide the necessary training at the lowest possible cost.

Currently, Sunrise does not have a training program. Te new hires just spend a week in a territory with an experienced rep, and ten they are given their own territory. While tis system was satisfactory with experienced people, it is not adequate for the inexperienced people the company is now hiring.

Mickie Parsons has suggested the president of Sunrise, Keat Markley, that the company institute a one-or two-week training program at company headquarters. Parsons has suggested two options. The first option is to hire a staff recruiter/ trainer who would spend half of his or her time on recruiting and the other half on training. The new staff specialist would be paid a salary of about $60,000 a year- so the added cost with respect to the training responsibilities would be $30,000 a year. The second option is to contract with an outside company that specializes les force training. That company would provide a specialist to set up and conduct a training program at a cost of approximately $20, 0000 per week.

Parsons was just concluding her presentation to Keat Markley. “I feel that a training program would increase the average annual sales per rep a minimum of 5 percent- to $1,050, 000 per rep.”

Markley replied, “I am not convinced that the training would improve performance enough to justify the costs. You know it isn‟t just the cost of the trainer. We would also have to bring these reps into headquarters and pay their expenses while they are here. There would be some equipment and materials involved…. All for a 5 percent increase in sales! I want to be sure that the 5 percent would more than

cover these costs. What about using computer training software to train the new reps? Eng I read says that all of the top companies are using online programs to do a lot of their training and that they are saving bundles in the process.”

“I‟ve have checked into that option,” Parsons said, “but I don‟t think that a basic off-the –shelf program would be very effective for training inexperienced graduates and the initial cost of developing a customized program would be excessive- a minimum of $3,00,000 with each additional week module costing $50,000. Besides, I think an online program works best for refresher training or for introducing new product information, not for teaching basic selling skills- that should be face-to-face training.” “OK,” said Markley, “you put together an analysis that considers all the costs of these training options, and ten make a recommendation to me. Be sure that you look at the increase in sales that will be necessary to cover these additional costs.”

Parsons left the meeting already calculating the costs in her head. She knew that bringing a rep into headquarters would cost $250 per rep for travel and $750 per rep per week for lodging and meals. Materials for any of the programs would likely add an extra $100 per rep and the audiovisual equipment for the face-to-face training would be headed for her office, where she could put all of these costs together in order to make a reasoned recommendation to Markley as soon as possible.

Question:

What type of training program should Mickie Parsons recommend to Keat Markley? What‟s your reasoning for your recommendation?

Section C: Applied Theory (30 Marks)

• Elaborate the Role of Area Sales Manager?

1. Define the term selection? How would you explain the selection process?

• What is Incentive? Define the types of Incentives?