IGNOU MS 62 Solved Free Assignment 2022- Helpfirst

MS – 62

Sales Management

MS 62 Solved Free Assignment 2022

MS 62 Free Solved Assignment jan & july 2022

Q 1. (a) Distinguish Selling from Marketing with a suitable illustration. Explain the linkage of distribution function with sales management in a consumer durable company of your choice.

Ans :- Selling refers to creating products and selling them to customers. It revolves around the needs and interest of the seller.

It is a only an integrated part of the marketing process as its only focus is to manufacture product first and then selling them to customer and it is sales volume oriented not much concern about customer’s satisfaction.

It views customer as the last link in business.

Selling seeks to convert product into cash. In selling sell is the primary motive and it is more internal company oriented. It is based on inside-out perspective.

The marketing theory is a business plan, which affirms that the enterprise’s profit lies in growing more efficient than the opponents, in manufacturing, producing and imparting exceptional consumer value to the target marketplace.

Marketing is a comprehensive and important activity of a company. The task generally comprises recognising consumer needs, meeting that need and ends in customer’s feedback.

In between, activities such as production, packaging, pricing, promotion, distribution and then the selling will take place. MS 62 Solved Free Assignment 2022

Consumer needs are of high priority and act as a driving force behind all these actions. Their main focus is a long run of business ending up with profits.

It depends upon 4 elements, i.e. integrated marketing, target market, profitability customer and needs.MS 62 Solved Free Assignment 2022

The idea starts with the particular market, emphasises consumer requirements, regulates activities that impact consumers and draws gain by serving consumers.

Sales and distribution management constitutes one of the most important parts of marketing management.

As you have already seen, “Exchange” is the core, aspect of marketing, and it is the sales and distribution management.which facilitates it.

Sales Management has been defined as the management of a firm’s personal selling function while distribution is the management of the indirect selling effort i.e.

selling through extra corporate organisations which form the distribution network of the firm.

The sales management task thus includes analysis, planning,, organising, directing and controlling of the company’s sales effort.

Distribution Management comprises management of channel institutions as well as physical distribution functions. MS 62 Solved Free Assignment 2022

The exchange process i.e., the sale and delivery of goods/services from the manufacturer to the consumer can be consummated directly i.e. by the firm itself through its own sales force or indirectly through a network of middlemen such as wholesalers and retailers.

The importance of the sales and distribution function varies across organisations depending upon its nature and variety of products, target market, consumer density and dispersion, and the competitive practices among other things.

For example, you may recall that in mail order companies (where the major exercise is distribution in response to orders received) virtually no personal selling effort is utilised.

While, most organisations selling capital industrial equipment (say earth moving equipment, mainframe computers, CNC machine tools) do so through a team of their own sales engineers, involving little or no intermediary support.

Not withstanding, whether the sales and distribution function is organized internally, externally or jointly, the following essential tasks need to be performed in order to consummate successful exchange.MS 62 Solved Free Assignment 2022

Sales management includes the means and methods by which a sales force, sales techniques and sales operational strategies are built.

Distribution describes the manner by which a product or products are made available to the consumer.MS 62 Solved Free Assignment 2022

Conditions of Sales Every sale includes a primary seller, who provides the service or product, and a buyer who purchases the service or product.

Direct Distribution Using this type of distribution strategy, goods are sold by the manufacturer directly to consumers.

Indirect Distribution Indirect distribution involves at least one third party, often a retailer, who purchases goods from a manufacturer and then sells them to customers.

This type of distribution can also include wholesalers and distributors who purchase product from manufacturers at a discount price and then resell to retailers at a slightly higher number. MS 62 Solved Free Assignment 2022

The Importance of Sales and Distribution Management Sales management is vital to the success of any business seeking to grow market share. The following are a few reasons sales management it’s so important:

  • A good sales and distribution management team is first and foremost a revenue generator. It facilitates sales at a given price that generates profit for the company.
  • Sales and distribution management plays a key role in setting and meeting corporate sales and performance goals.
  • Sales and distribution teams stay abreast of customer preferences, government regulations, competitive sets and other factors impacting sales.
  • Sales management involves understanding customer preferences and building lasting relationships, which help guide the marketing efforts of a business.
  • Sales management helps build stronger relationships between a business and its customers, growing customer satisfaction and earning long-term loyalty.

Objectives of Sales and Distribution Management There are many objectives an organization might have regarding its sales and distribution channels.

However, every business under the sun is planning for the big three.

They are the following: MS 62 Solved Free Assignment 2022

Sales Volume One of the principal goals of sales and distribution is to increase the overall volume of products sold in order to generate net revenue for the business.

Profit Contribution Sales and product distribution strategies are also crucial to the profit margins a company enjoys.

Long-Term Growth This is the last one, and, arguably the most important of the big three sales and distribution objectives.

Capturing more market share over time, which includes building repeat business and attracting new consumers. MS 62 Solved Free Assignment 2022

MS 62 Solved Free Assignment 2022
MS 62 Solved Free Assignment 2022

(b) What is sales strategy? Discuss the sales strategy formulation for a newly introduced electric bike.

Ans :- A sales strategy is a long-term plan for increasing sales.

Possible strategic goals include selling to new clients, boosting repeat business or upselling customers into making larger purchases.

“Strategy” is one of those business-speak buzzwords managers and business owners love to toss around, the Center for Sales Strategy says.

Talking about sales strategy sounds impressive, but what actually happens is often less so: Your company offers a discount to new customers, or you set higher quotas for your sales team. Those are tactics, not strategies.

A sales tactic is any new maneuver you try to increase sales. A strategy is a plan to achieve specific sales goals. It’s long-term and usually includes a variety of tactics.

For example, a sales strategy might involve a plan for finding new prospects, plus a way to screen them and identify the most likely buyers.

Your sales people then work to meet with those prospects and close a deal with them.

Tactics are typically deployed as short-term sales boosts, like a 15 percent discount if someone buys before the end of the month.

A sales strategy involves consistent tactics and methods for the long haul.

If the plan is successful, you should be able to keep using it for years.

There are many possible sales strategies, but LeadFuze says they all include answers to three key questions: MS 62 Solved Free Assignment 2022

  • What is the company going to sell?
  • Who are the customers we’re selling to?
  • What tactics will we use to grow sales?

Marketing is important to sales, but your marketing strategy is not your sales strategy.

A marketing strategy identifies your target demographic and explains how you’ll make them aware of your company’s offerings.

Sales strategy is about closing the deal, converting people from “target demographic” to “loyal customer.” MS 62 Solved Free Assignment 2022

Richardson Sales Performance says a good marketing strategy will generate inbound leads.

These are potential customers who’ve become aware of your company and call up or go onl ine for more information.

They’re warm leads, which are people who are at least a little interested in buying.

Outbound leads are the ones your sales team generates by networking, asking around and cold-calling. Following up an outbound lead is often a long shot, but it can pay off.

Inbound leads have more potential, but many warm leads are just curious. Others are interested but not qualified, like someone test-driving a Porsche who can’t afford to buy one.MS 62 Solved Free Assignment 2022

Even with warm leads, your company has to screen the prospects and work to close the deal.

A sales strategy can easily become a pie-in-the-sky fantasy if it’s not grounded in your company’s everyday reality.

Before you start strategizing, sit down with last year’s sales reports and crunch some numbers.

How many sales did you make? How much of that was repeat business? Which customers generated the most revenue? How many leads became customers?

Talk to your sales team about all this, Marketing Donut recommends. Numbers only tell part of the story. MS 62 Solved Free Assignment 2022

Your salespeople can tell you what sort of objections they run into, what the competition is doing better and what the big obstacles to increasing sales are.

It may be the problem isn’t sales but product quality or shippers consistently delivering items late.

The goals for your strategy should be ambitious but attainable. Talking to your sales force can also help with that.

They can tell you, realistically, how many added prospects they have the time to reach out to.

It may be that to meet your goals you’ll need to hire a couple of extra team members.

If that’s not practical, you may have to lower your goals to something your current team can handle.MS 62 Free Solved Assignment

According to the market research on the electric cycle market in India by Trouver Trade we present you an overview of the Indian electric bicycle market and entry strategy for national and international players. MS 62 Solved Free Assignment 2022

Although the study was carried out in New Delhi, Trouver Trade believes that the findings of this market research can be applied to any metro city in the country.

The future of the e-bike (electric) sector in India appears optimistic with potential for travel, fitness and leisure.

Increased health-conscious consumers, significant traffic congestion, environmental concerns and increased public cycling activities to cut carbon emissions are the main consumers for this sector.

The main e-cycle market segment in India is composed of 18-22 year old students, as obtained from primary and secondary studies.

Students prefer e-bicycles to traditional ones mainly because of improved performance in terms of speed and mileage and reduced travel times for schools, colleges, tutor classes etc.MS 62 Solved Free Assignment 2022

Students were predicted to account for nearly 40% of the electric cycle market in India.

the next major market segment consists of those office employees who are conscious about their health and considers cycling as a good exercise.

Electric cycles are economic in the long run, and also more convenient for short distance commuting. This segment is likely to contribute to nearly 30% of the market share.

Q 2. (a) Explain the various Selling Skills that a salesman should possess and why? Comment on the importance of Interpersonal communication process with an example.

Ans :- 1. Communication Skills If you’re a sales person, this skill might seem self-evident, but too many sales reps don’t take the time to develop their communication skills, choosing instead to rely on a script to get them through conversation.

While a script can be a useful part of the sales call, the ability to veer off script and communicate with the customer effectively is imperative.

Every customer is different; the same script won’t work on everyone and there are times when you may need to bring out your communication skills to close a deal.

(2. Active Listening Skills MS 62 Solved Free Assignment 2022

An important part of effective communication is active listening. That means allowing the customer to express their needs and concerns and then taking steps to address those concerns in your own response.

When you employ active listening, you’re much better equipped to tailor your pitch in a way that will appeal to the customer.

Listening is also a great way to build trust, and trust is essential for closing deals.

(3. Persuasive Skills MS 62 Solved Free Assignment 2022

In order to truly excel in this industry, you need to have great persuasive selling skills.

Customers are bombarded with advertisements and pitches on a regular basis; you need to know how to convince them that your product or service is worthy of investment.

Being good at persuasion can mean a variety of things, including being able to turn negatives into positives and being sincere about what you’re selling.

(4. Collaboration Skills

We have a tendency to think of a sales person as a lone wolf-someone who works independently to close deals.

However, being able to collaborate with others and learn from your fellow sales reps can be an invaluable asset as you develop your career.

There are a variety of ways in which collaboration can aid your growth; another sales person might have dealt with a situation you’ve yet to encounter, or they may be able to share alternative strategies with you that can improve your game.

Learning to collaborate with your coworkers can help everyone.

(5. Self-Motivating Skills MS 62 Solved Free Assignment 2022

This last strategy involves more than just the sales team-it also involves management.

All too frequently, there can be a disconnect between upper management and sales reps, with management not fully appreciating the struggles that sales reps are encountering on a day-to-day basis.MS 62 Solved Free Assignment 2022

If you seriously want to challenge your sales team, you may need to solicit feedback on what they believe is preventing them from doing their best work.

Their answers may surprise you, while also giving you a real opportunity to make innovating and advantageous changes.

(6. Problem Solving Skills

A sales person will encounter hundreds, if not thousands, of objections during the course of their career.

There will be the routine objections that you become used to, alongside more unique reasons why customers are not willing to invest.

While you’ll never be able to completely eliminate objection, there are ways to minimize the amount of rejection you face throughout the day.

Problem solving skills are selling skills when it comes to learning to meet apprehension head on and find creative solutions.

(7. Negotiation Skills : MS 62 Solved Free Assignment 2022

With an increasing amount of competitors vying for customer attention, negotiation has become an expected part of sales. MS 62 Free Solved Assignment

Customers anticipate that they will be able to negotiate with their sales person, which means that sales reps need to come to the negotiation table ready to negotiate.

Interpersonal communication skills can improve your personal and professional relationships by helping you to express your thoughts and convey your intent clearly.

Additionally, you’ll be more able to understand and empathise with others due to your listening skills. MS 62 Solved Free Assignment 2022

However, struggling with aspects of interpersonal communication does not make you incapable or worth less than anyone else.

There are many reasons why you might find parts of communication difficult, including being on the autistic spectrum, having social anxiety, and dealing with other neurological differences or mental health struggles.

Nobody should have to change who they are in order to be more palatable to others -but it can be helpful and even freeing to have a better understanding of the different types of interpersonal communication.

(b) What is Presentation in the context of selling? Discuss the various types of sales presentation and the situations where they can be used.

Ans :- A presentation is a commitment by the presenter to help the audience to do something for solving a problem. MS 62 Free Solved Assignment

An interesting thing to note is that in a presentation commitments are made by the presenter and the audiences are making judgement, simultaneously.

The presenter advocates and audience evaluate, to render a verdict.

In terms of content and structure, presentations and speeches have a good deal in common with formal reports -many of them are oral version of a written document

Canned Presentation : MS 62 Solved Free Assignment 2022

Canned presentations are those presentations where text of the presentation is carefully worded, tested and strictly follow the contents in the defined order, while making a presentation.

This presentation method is most commonly used in non-technical product selling, like, Pharmaceuticals, telephone selling, door to door selling, etc.

The specific advantages of this technique are that one can finish the presentation in a short-time and still have a successful close.

The other advantage of this method is that it require lesser time in training the field sales personnel.

The disadvantage of such technique is that the prospect has limited participation.

He might view it, as a high pressure selling and defer taking a purchase decision.

Planned Presentation : MS 62 Solved Free Assignment 2022

It is, no doubt carefully planned and organised but still it has a personal touch of the individual making the presentation.

In this method, the training department provides just a format and the individual sales person then writes explanations, descriptions and illustrations.

The advantage of this presentation method is that it appears more conversational and less formal, as the sales person is using his own wordings.

As a result, in this presentation method the prospect also gets involved and his doubts and questions can be carefully handled.

Audio-Visual Presentation : MS 62 Solved Free Assignment 2022

For such presentation the sales persons heavily depend on the AV aids. These aids range from charts, slides, video films, prototypes, computer based presentations to the use of actual product. MS 62 Solved Free Assignment 2022

In advertising industry, computer software industry, such presentation methods are used.

In these presentations the speaker or the sales person takes the back ,seat and the prospect’s attention remains centred around the AV aids.

Such aids are typically used, not only to gain the attention but in the absence of these it might be difficult to explain or demonstrate.

Take for example, in door-td-door selling of vacuum-cleaners or photocopying machines, where ‘the actual product is used as a integral or central ‘character’ of the presentation.

In the absence of which the sales person might find it difficult to sell.

Problem Solving Presentation : MS 62 Solved Free Assignment 2022

This is a two-step presentation method. The first stage is to study the individual prospect’s needs and the second is suggesting a proposition.

Thus helping the prospect to solve the problem.

Such method is commonly used in insurance sector where the insurance agent ask the prospect about the requirements and accordingly, he proposes a specific policy, its advantages and benefits. MS 62 Free Solved Assignment

MS 62 Solved Free Assignment 2022
MS 62 Solved Free Assignment 2022

Q 3 (a) Discuss the frequently used sources of recruitment for frontline salesman with suitable examples. Explain how training needs are identified in a medium size engineering company.

Ans :- Right salesmen can help company achieve marketing objectives.

Recruitment and selection are two important decisions in sales force management that concern with ensuring the right type (right qualities, right qualifications, and right experience) of sales personnel.

Problem of recruitment and selection arises when:

  • Starting a new company
  • Resigning and retiring of existing salesmen
  • Death of existing salesmen
  • Suspending of existing salesmen
  • Growth and development of company’s operations
  • Entering into new territories
  • Developing and introducing new products

Note that salesman is not only employee of a company, but he is its responsible representative; he is not dealing only with selling products, but also with goodwill and reputation of company. MS 62 Solved Free Assignment 2022

A right salesman can create positive effect on sales volume, profitability, customer satisfaction, dealer effectiveness, company’s goodwill, promotional efforts, and so forth.

While recruiting and selecting salespersons, job analysis (consisting of job description and job specification) is to be made for better selection.

Recruitment and selection are interdependent decisions. Let us discuss both terms separately. MS 62 Free Solved Assignment


Recruitment means searching for prospective candidates and inspiring them to apply for the post.

Recruitment ends on the last day/date of receiving applications. Salesmen can be recruited through a number of sources. MS 62 Solved Free Assignment 2022

Sources of Recruiting Sales Force: Main sources, widely practiced in India, includes:

  • advertisement
  • Other firms
  • Middlemen
  • Personal recommendations
  • Recommendation of existing staff
  • Special recruitment agencies
  • Private training institutes
  • Colleges and academic institutes, etc.

Types of sources to be used for recruiting the salesmen depend on certain criteria, like type of products to be sold, types of customers to be served, paying capacity of company and type of remuneration plans, and other relevant factors.

Selection: Selection means selecting the fixed number of suitable candidates from those who applied for the posts. Selection process starts as soon as recruitment ends.

Recruitment considers all applications received in a due date while selection considers only the required number of most suitable candidates.

There is no ideal selection process that most companies can follow.

Normally, for selecting salesmen, the simple and short selection process is followed.

However, some companies, when more salesmen are to be selected at time, also follow lengthy and systematic selection process. MS 62 Free Solved Assignment

Selection process depends on types of salesmen, cost and financial position of company, time available, company’s objectives, and so forth.

Steps in Selection Process: MS 62 Solved Free Assignment 2022

Systematic selection process consists of following steps:

  • Receiving applications
  • Screening applications
  • Preliminary interview
  • Written tests
  • Final interview
  • Medical examination
  • Final selection
  • Appointment and induction

A training needs analysis looks at the knowledge, skills, and abilities of employees globally to determine what types of training they need to move your company towards its objectives.

But why is a training needs analysis so important? A training needs analysis focuses on your organizational goals and objectives and then figures out the tasks and people needed to get there.

It gathers some baseline data about where your employees are starting, so that you can give them the tools they need to meet your company’s goals.

If you don’t do this step, then it’s like setting your employees adrift on a raft in the middle of the ocean with no land in sight. MS 62 Solved Free Assignment 2022

They won’t know which way to paddle, and eventually they will all get tired and give up.

Many companies balk at conducting an analysis because they it seems overwhelming to figure out where to start.

Here are eight concrete steps to get you started on how to identify training needs of employees. MS 62 Solved Free Assignment 2022

(1. Decide what you are trying to achieve Some folks place evaluating employees’ baseline knowledge before goal-setting, but your data will be much richer if it has context.

Decide on organizational goals and objectives for your company before gathering employee data to decide where to spend your valuable training time.

Your goals might be very concrete (e.g., migrate the entire office to a new software) or somewhat intangible (e.g., improve customer service), but if you can think of it and set it as a goal, you can train it and measure your progress.

Whatever your goals, make sure the entire C-suite is onboard and ready to focus on moving towards them. MS 62 Solved Free Assignment 2022

(2. Identify the knowledge, skills, and abilities needed to meet your objectives As your company grows and changes (and the world right along with it), your employees may have gaps in their knowledge, skills, and abilities.

This step carefully breaks down and articulates what employees need to know, understand, and be able to do at the end of training to meet your stated goals.

These learning objectives for individuals help further guide and focus your training.

(3. Figure out what employees know Piggybacking on step two, take your list of knowledge, skills, and abilities, and determine where on the spectrum your employees fall.

Give employees a chance to show what they know (and identify any gaps) before you start designing your learning programs.

There are a variety of ways this information can be collected, including:
Using questionnaires or surveys Observing employees and examining their work Conducting formal assessments MS 62 Solved Free Assignment 2022

(4.Talk to employees Take the time to ask employees what they need to do their jobs better.

Are they happy in their work, and, if not, what might make them happier? Encourage open feedback by separating these conversations from any type of HR setting.

Make it clear that you are really interested in setting goals and objectives for training that match employee needs, not deciding who gets the next pay cut. This can help you find deficiencies you would have never thought to check.

(5.Talk to managers Managers are the bridge between executives and workers. As such, they have a unique perspective on how things are going in the boardroom and on the street.

(b) What are the ways in which sales manager can motivate a salesman. Discuss.

Ans :- Sales managers will go to the extreme to motivate their teams.

They pull out all the stops – huge kickoff meetings, trips to exotic locations, giant commissions. But big and flashy can’t fix a motivation problem.

Every day, your sales reps are bombarded by outside factors that are affecting their motivation. The customer might be telling them ‘no’ over and over again.

It may be the wrong time to sell in the market. There may be some disaster going on affecting their ability to sell. MS 62 Solved Free Assignment 2022

But in order to sell well, salespeople need to be hyped up and ready to go at any time.

I’ve run sales departments in three organizations, and I know the motivation of your sales reps will affect productivity, culture and the bottom line.

(1. Set goals This one may be obvious, but it’s important. You need to give your salespeople a goal to reach. Without a goal, they won’t know what to aspire to or what constitutes success.

Choose something that’s achievable, but not easy. It should still be a reach.

On his Facebook page, author Joe Vitale wrote, “A goal should scare you a little and excite you a lot. Think BIG. And then think bigger than THAT.”

This isn’t just about sales quotas, either. Different salespeople are motivated in different ways.

While quotas may work for some reps, a contest or even a personal goal may be a better choice for others. Work with each individual salesperson to find out what will work best for them.

(2. Focus on purpose People who love their jobs tend to do better at their jobs. In fact, according to Gallup, organizations with low employee engagement experience 18% lower productivity.

As a manager, it’s your job to keep your salespeople engaged and fully supportive of your company’s mission.

Start by explaining what that mission means to each person on your team and how they play a part. MS 62 Solved Free Assignment 2022

In Apple’s “Think Different” ad, Steve Jobs said, “The people who are crazy enough to think they can change the world are the ones who do.”

Research from the Deloitte Millennial Survey 2017 finds six out of 10 millennials say a “sense of purpose,” is part of the reason they chose to work for their current employer.

Giving your salespeople that sense of purpose will inspire them to work harder at their jobs and inspire their loyalty to your business.

(3. Build trust In an article for HubSpot, HubSpot executive Dan Tyre writes, “The foundation of motivation is trust.

If your team doesn’t trust you and doesn’t believe you have their best interests at heart, it’ll be difficult for them to feel inspired and driven by their work.”

To be an effective leader, you need to have your employees’ trust.

The best way to build trust is to be as direct and straightforward as possible. Don’t try to hiding or beat around the bush. MS 62 Solved Free Assignment 2022

If there is an issue going on, let your team know. When working with team members, focus on having a helping mindset. Don’t scold or push.

Instead, try to solve problems and help that sales rep grow and improve. You want to make sure you create a comfortable environment where employees feel appreciated and engaged.

(4. Get others involved It’s easy for your salespeople to point fingers and try to pass on blame to others when something goes wrong.

Maybe marketing isn’t giving them enough leads or customer support can’t respond quickly enough to a complaint. MS 62 Solved Free Assignment 2022

To combat this, you need to break down siloes between the departments in your organization. ing, customer support, and engineering together, that’s when we truly start to see growth.

With everyone getting a seat at the table, you remove hurdles and increase productivity.

Your salespeople feel like they’re in the loop and are involved in what’s happening. And based on their collaboration, they can adjust their approach and improve results.

(5. Create a culture of recognition : Your sales reps want to be rewarded. But a commission alone is not enough. MS 62 Solved Free Assignment 2022

Commissions are expected, so you need to push beyond that for your sales reps to truly feel recognized for their achievements.

Q 4(a) What are the various approaches involved in territory design? Elaborate.

Ans :-The two basic approaches commonly used for designing sales territories are discussed below:

1)The Market build up approach

2) Workload approach MS 62 Solved Free Assignment 2022

The Market Build Up Appmach : This approach estimates the present and potential product/service demand by looking as how the market is build up, that is, who are its present/potential users, and how much do they consmne and at what frequency.
Unfortunately it is not so easy as it looks.

Its major use is industrial goods companies where complete listing of users is feasible alongwith approximate consumption norms.

Publications such as annual survey of industries, trade directories, state, District and city-wise list of manufachlring establishments etc. come very handy in this regard.

Starting with one user industry in an area and then adding up all the relevant industries in that area one can estimate the potential for that ‘area.

Aggregating the estimates for all the areas we rurive at on all India market potential for the product. MS 62 Solved Free Assignment 2022

To this we apply the fums market share objective and arrive at its sales potential.

This sales potential when divided on territory basis constitutes the territory sales potential and specifies the corresponding level of sales and marketing support requirement

For example, if for an ultrasound equipment manufacturer, market potential for all the areas sums to 3000 and for Maharashtra state 600, i.e., 20%m then its might warrant the fum to invest 20% of its marketing and sales effoit in Maharashtra.

Given the customer wise market potential and the clas,;ification of.customers into A, B, C etc categories, nmnber and frequency of sales calls required to tap the sales potential among customer are determined. MS 62 Solved Free Assignment 2022

This leads to estimate of total sales call required per area, and number of sales persons required.

Sales territories are then formed in a manner that the sales potential and workload for each territory is nearly equal.

The Workload Approach: W. J. Talley’s Workload approach of terriotry design is based on creation of sale territories that are equivalent in terms of workload performed by sales persons.

The steps involved in the creation of sales territories under this approach are:

1) Customers are grouped into Class Sizes according to the annual Sales Volume that the Company has.

2) Optimum Call frequencies for each Class of customers are estimated e.g. In one case present and potential customers are grouped into volume classes and then theoretical Call frequencies are assigned to them.

3) Present and potential customers are then located geographically and airnnged volume and value-wise. MS 62 Solved Free Assignment 2022

4) The number of present and potential customer in each volume/value group is then Multiplied by the desired Call frequency to get a total number of planned caHs required for each geographical control unit.

5) This is followed by determination of geographical control units in these that the carved out territory is combed to the maximum, giving adequate workload to the sales person as well minimising,

if not eliminating the unproductive time spend in covering distance between two calls and post call activities.

The basic weakness of this approach is that, since the call frequency is already established it may not provide for development of mediocre or neutral customer accounts into Super accounts due to lesser number of calls assigned to them.

The other shortcoming lies in establishing parity in workload and potential territories, in different markets. MS 62 Solved Free Assignment 2022

In practice no two tenitories are equal in te1ms of travel time, current sales or potential.

For example territory A may cover only two cities of state and be reasonably compact, whereas territory B might include five cities of a state.

These inequities affect such sales persons the most, who are dependent mainly on commission on sales as their income in a specific territory.

The workload approach to territory design, therefore would be more suitable in situation where sales persons are employed on fixed salmy basis.

If may be noted that as the market conditions change sales territories need adjustment and even redesigning.

The principle of equating territories on marginal profit values make useful contribution in this regard. MS 62 Free Solved Assignment

(b) When and why field sales organisation are developed ? discuss with an example and jutify the need for establishing a sales organisation.

Ans :- In most companies utilizing direct selling to retailers or consumers the development of a field sales organisation, sooner or later becomes a necessity.

A field sales organisation consists of all sales personnel working away from the head office, and would include the travelling salesman, the sales supervisors, the branch and Area Managers as well as the support. MS 62 Solved Free Assignment 2022

staff in these branch and area offices. The major purposes of setting up a field sales organisation are more adequate market coverage control of sales expenses.

Better coordination with regional requirements, and in case of new products, more vigorous market cultivation.

The field sales forces are typically organised on the basis of geographic, customer or productwise specialisation, with many sales organisations combining customer and product specialisations with geographic territories.

Geographic Specialisation : The most common pattern of organising a sales force is by geographic territories where sales personnel are assigned to a specified geographic area, and will sell only to customers in that area.

For example Figure 4 shows the field sales organisation of Food Specialities Limited, where the whole of the country has been divided into four areas and put in charge of Area Sales Managers. MS 62 Free Solved Assignment

These areas representing North, South, West, and East regions are Delhi, Madras, Bombay and Calcutta. MS 62 Solved Free Assignment 2022

These major divisions are further divided into smaller geographical territories which are covered by Area Sales Officers.

The area sales officers have in turn reporting to them area sales representatives who look after customers in the specific area assigned to them.

A major advantage which characterises the geographic organisation is that the sales personnel usually have a smaller area of operation than in the other organisational schemes and over a period of time get to know their customers and markets intimately which can lead to intensive market cultivation.

The organisation becomes more responsive to local needs.

The geographic organisation is generally a flat rather than tall organisation and the shorter lines of communication make for greater effectiveness of supervision and control.

Another advantage that follows is that travel time and expenses can be reduced if call patterns are properly devised. MS 62 Solved Free Assignment 2022

On the other hand, because of multiple offices being set up, administrative expenses and the burden of coordinating the sales activities of a widespread organisation become heavy.

Geographic organisation is generally more effective when the product line is not too wide or consists of relatively simple, non-technical products.

The disadvantage with geographic specialisation is that the sales persons need to be responsible for the entire product line in their territory and they may not be equally knowledgeable about all products.

Further within the territory, they may choose to concentrate on products and customers that are easy prospects.MS 62 Free Solved Assignment

Product Specialisation : Product specialisation is usually called for when the product line is large and diverse or when the products are technical enough to warrant specialised applications knowledge, or when adequate technical knowledge an important determinant of successful selling.

Product specialisation is generally combined with geographic territorisation at the higher levels, while at the level of the field operators, different salesmen may be assigned to specific product lines.MS 62 Solved Free Assignment 2022

Instead of selling the entire product line in a specific territory, a salesperson assigned to a particular product/product group, will sell only that product to the customers in that area.

Given below is the example of a company selling office equipment ranging from typewriters to computers, The initial geographic division is followed by product specialisation at the field personnel level.

In the above example since the product line is both technical and diverse, it is not possible for one sales person to acquire enough technical knowledge to sell the entire product line successfully.

Product specialisation, as shown above would allow the sales personnel to specialise in their respective product lines which in turn would result in more effective sales performance.

Customer queries and sales resistance can be handled more effectively on account of intensive product knowledge. MS 62 Solved Free Assignment 2022

On the other hand, each salesman in the above example would have to tour the entire state, which would result in higher travel time and expenses.

MS 65 Free Solved Assignment jan & july 2022

MS 64 Free Solved Assignment jan & july 2022

MS 43 Free Solved Assignment jan & july 2022

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