ADL 44 Sales and Distribution Management V1

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ADL 44 Sales & Distribution Management V1
Assignment – A
Question 1. Highlight how the sales executive plays a ‘linch pin’ role in the
marketing ‘wheel’ of the organisation.
Question 2. Identify the theories of selling. Which one, in your opinion is the
best. Why?
Question 3. What are the different types of sales organisation? How are they
different from each other in terms of interaction of sales department with other
departments?
Question 4. What is the difference between the recruitment and selection process
of sales personnel?
Question 5. What are the different training methods adopt ed for training of
sales people? Elaborate.
Assignment – B
Question 1. What is the most critical aspect of the distribution system in any
organisation? What should the manager keep in mind while setting up a
distribution system?
Question 2. What are the different trends in retailing and wholesaling?
Elucidate with example.
Question 3. Identify channels used while launching of a new product? Are they
effective in the Indian context ? Why/Why not?
Case Study
MODERN ENGINEERING WORKS LIMITED

Mr Ramesh Chauhan, General Manager of Modern Engineering Works Umited (MEW),
Jaipur, recommended a sales contest to improve declining sales performance. This
was his response to, first-quarter results that saw sales fall substantially
below quota. Mr Chauhan believed that a sales contest would, among other things,
provide the incentive to get sales up to or beyond territorial quotas:
MEW distributed a complete line of electrical motors, pumps, ports, switch-gear
and accessories in the state of Rajasthan. Its sales force of sixty persons
operated out of ten branch offices located at Jaipur, Ajmer, Jodhpur, Bikane,
Udaipur, Sriganganagar, Alwar, Bharatpur, Kota and Pali, in Rajasthan.
The sales force’s compensation plan consisted of a base salary and a bonus. The
bonus was based upon the territorial quota, which was set by the general
manager, in consultation with the branch sales manager. Mr Chauhan proposed a
sales contest which would, in his opinion, motivate sales personnel to achieve
their quotas.
The details of the contest were as under:
(a) The duration of the contest would be a quarter, i.e., 13 weeks.
(b) There would be a weekly sales volume quota for each salesperson
determined by the general manager and respective branch manager.
(c) Each of the ten branches would also have a bra nch sales volume quota for
the quarter.
(d) A cash bonus of Rs 500 each week would go to the sales person exceeding
his/her quota by the greatest percentage. Mr Chauhan wanted to use total sales
volume instead of percentage but settled for the percentage eventually.
(e) Each sales person who achieve the quarter-quota would get a bonus of Rs
1000.
(f) A cash bonus of Rs 2000 would be paid to the sales person exceeding his/
her quarterly sales quota by the greatest percentage. Bonus of Rs 1000, Rs 750
and Rs 500 would go to sales persons in second, third and fourth places
respectively.
(g) In the competition amongst branches, the branch exceeding its quota by
greatest percentage would receive Rs 4000 as prize which would be shared equally
among the sales persons associated with that branch. Second, third and fourth
places in a the inter-branch competition would receive Rs 3000, Rs 2000nd Rs
1000 respectively.
(h) All sales persons, who achieve their quotas and those who are to receive
bonuses at the end of the quarter, would be invited for a grand award function
at Hotel Rajputana Sheraton, Jaipur, a leading 5-star hotel. The award would be
handed out by Mr Naresh, the Executive Director of MEW.
When Mr Chauhan formally proposed his plan for a sales contest, many objections
were raised. All these objections related to usual objections in sales contests
like disappointment and frustration amongst sales persons who would not win,
disruption in normal pace of work, over aggressiveness amongst some people, the
likely fall in sales during the quarter succeeding the contest-quarter and so
on.
Mr Chauhan felt that a contest would correct the poor sales performance, raise
and ce kindle a competitive spirit amongst its sales for give them an
opportunity to get their achievements recognised, an raise the morale of the
entire sales force.
In spite of a disagreement, Mr Chauhan scheduled a meeting of his staff and
branch managers to discuss the advisability of conducting a sales contest.
Questions for Discussion
1. Should Modern Engineering Works Limited go ahead with a sales contest to
motivates it sales personnel to better sales performance? Why or why not?
2. What is the purpose of organising a contest amongst branches? Should
individual performance based contests be run concurrently with group-performance
based contests? Why or why not?
3. Could you suggest some other proposal to motivate sales personnel to
achieve a their saes quotas? Give your reasons with details of the proposal, s
to how would it be better than the sales contest?
Assignment – C
1. What do you mean by distribution channel?
2. What is a retailer? What’s a distributor?
3. Elements of communication mix consist of
4. List 2 strengths & 2 limitations of personal selling
5. List 2 reasons as to why personal selling is important in India?
6. What is ‘Tender method’ of selling?
7. List the process of personal selling?
8. Give the formula for sales force size determination?
9. What is recruitment?
10. What is Orientation?
11. What is the purpose of training?
12. Calculation of salesman’s contribution to profit is done by?
13. List the different methods of compensation?
14. What is a supermarket ?
15. Distinguish between department and chain stores?
16. What is role of special incentives to channel?
17. What do you understand by motivation?
18. What do you understand by ‘sales call’?
19. What is the role of distribution channel?
20. What are non conventional channels?
21. List the different types of intermediaries?
22. What is the difference between retailer and distributor?
23. List the different types of wholesaler?
24. List the different types of retailers?
25. What is a super market?
26. What is the role of C&F agent?
27. What is AIDA?
28. What do you understand by dual distribution?
29. What is the difference between trade discount & quantity discount?
30. What is the concept of a utomatic vendor?
31. What do you mean by conflict?

32. What are discount stores?
33. How does sales executive co-ordinate?
34. What are the objectives of sales management?
35. What are the steps in prospecting?
36. Give an example of a line & staff department organisation. Draw a diagram
for the above.
37. How is sales department and Research & Development related to each other?
38. What are the different interview methods? Explain any two.
39. What are the short comings of Maslow need hierarchy theory in relation to
sales department?
40. What are the qualities of a good compensation plan?

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