Sales and Distribution Management: IIBM 2

Examination Paper: Sales Management

IIBM Institute of Business Management 1

IIBM Institute of Business Management

Examination Paper MM.100

Sales and Distribution Management

Section A: Objective Type (30 marks)

· This section consists of Multiple Choice questions & short notes type questions.

· Answer all the questions.

· Part one questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple Choices:

1. Out of the following which gap arise when the sales force does not have the required knowledge,

skills or capabilities to become successful on the Job.

a. Knowledge gap

b. Capability gap

c. Methods gap

d. Training gap

2. This method is used by the trainers to present more information in a short time to a large number

of participants.

a. Lecture

b. Demonstration

c. Group discussion

d. None of the above

3. It improves on traditional computer based training by making the information available to the

salesperson immediately and in a personalized manner.

a. Distance Learning

b. Interactive Multimedia Training

c. Mentoring

d. Electronic Performance Support System

4. These are preprogrammed computer packages, and are based on reality:

a. Role Playing

b. Case Studies

c. Simulation Games

d. Job Rotation

5. The responsibility which include dealing with stakeholders with fairness impartiality and equality

is known as:

a. Ethical Responsibilities

b. Legal Responsibilities

c. Economic Responsibilities

d. Voluntary Responsibilities

Examination Paper: Sales Management

IIBM Institute of Business Management 2

6. They are the shopkeepers who set up shops in the market place to cater to the needs of hundreds

of consumers.

a. Distributors

b. Wholesalers

c. Agents

d. Retailers

7. This strategy is to make sure that the product is made available in as many outlets as possible so

that anywhere the consumer go, he or she should be able to get the product of his choice.

a. Exclusive Distribution

b. Selective Distribution

c. Intensive Distribution

d. Distribution Channel

8. This is the stage of the birth of multiple retail formats to please the customer.

a. Stage of Infancy (Child hood)

b. Meeting Customer Expectations (Youth)

c. Shift in the power equation (Adulthood)

d. Consolidation (Maturity)

9. It is the identity that the store develops for itself in terms of what it has to offer the customers.

a. Positioning Strategy

b. Product Differentiation Strategy

c. Operational Strategy

d. Targeting

10. It is the most convenient size of the product that the customer can buy at a time.

a. Lot Size

b. Waiting Time

c. Choice to the consumer

d. Place Utility

Part Two:

1. What is Channel Conflict?

2. What is an Information System? What is the purpose of Information Systems?

3. State the different categories of Inventory.

4. What is Electronic Data Interchange?

END OF SECTION A

Examination Paper: Sales Management

IIBM Institute of Business Management 3

Section B: Caselets (40 Marks)

· This section consists of Caselets.

· Answer all the questions.

· Each Caselet carries 20 marks.

· Detailed information should form the part of your answer (Word limit 150 to 200 words).

Swish flow Ltd. - Hiring Salespeople

“Why two out of five salesperson have resigned within six months of joining the company/” asked

marketing director to the sales manager, Sunil Kumar of Swish flow Ltd. “I think, there is

something wrong with our staffing process, “responded Sunil Kumar, without knowing the real reasons

for the turnover of salespeople.

Swish flow Ltd started manufacturing and marketing consumer durables like fans and water purifiers for

household consumer’s commercial firms in 1993. The sales and marketing office was located in Mumbai,

the commercial capital of India. Swish flow was a newly established company and for its first year of

operations, the company decided to recruit five salesperson to cover major metros and cities of

Maharashtra. The staffing process included the sales manager deciding the job qualifications salespersons

based on what he learnt in the MBA programme. The administration manger was asked to place the

advertisement in the local newspapers. The resumes of applicants were forwarded to Sunil Kumar, who

screened the same and sent interview calls to about ten applicants. The interviews were conducted by

Sunil Kumar and the marketing director and the selected candidates were given the appointment letters.

Some of the candidates had a problem of finding suitable residence, but the company policy did not

provide any consideration for he3 same. Sunil Kumar conducted one-week training programme and

generally guided the new salesperson, who reported to him directly. There was a delay in the receipt of

the fans from the factory, located at Baroda in Gujarat. During this period of three months, Sunil Kumar

was asked to conduct market surveys and look after advertising function of the entire group. He asked the

salespersons to collect market information on various other products like water purifiers, power tillers,

and so on in which the group was interested to diversify. During this period, two salespersons suddenly

stopped coming to work, after collecting their salaries of the previous working month.

Questions:

1. What improvements do you suggest in the staffing process followed by the company?

2. Was Sunil Kumar right in getting market surveys done by the new salesperson?

Caselet 2

Snow White Paper Company is located in an agricultural belt about 300 kilometers from a metro city.

The company is into writing and printing papers. Its primary raw material is wheat straw. Last year,

the company had a turnover of Rs. 134 crore on a volume of 45,000 tons of paper. While preparing

the business plan for the current year, the top management was concerned with the following

distribution issue that they want you to help resolve:

PROBLEM: FINISHED GOODS DISTRIBUTION

The paper industry is dominated by selling agents who bring the manufacturer like Snow White and

the buyer like printing/publishing companies, and note book makers, together. They make a

commission of about 2 percent on all transactions. Some other points:

Examination Paper: Sales Management

IIBM Institute of Business Management 4

· Snow White depends on about 110 agents to canvass business for it from the users.

· The Company sells about 23 percent of its paper directly to some government organizations.

· The agent arranges for the buyer to pay the company for its produce by a advance demand

draft. It is expected that the agent provides the credit support to the buyer.

· Agents are not exclusive for Snow White and work for other paper mills also and normally

play the mills against each other. They have a grip on the business and are reluctant to put the

mill directly in touch with the buyers.

· There is always an uncertainty on the orders and the price, which would be obtained on the

orders- the company cannot plan its profits properly nor offer the best service to end users so

that they always ask for Snow white.

Question:

1. How can you help Snow White become less dependent on the selling agents and plan its sales and

profitability better? How can they plan their customer service efforts?

Section C: Applied Theory (30 Marks)

· This section consists of Applied Theory Questions.

· Answer all the questions.

· Each question carries 10 marks.

· Detailed information should from the part of your answer (Word limit 200 to 250 words).

1. Explain in detail the Role of Retailers.

2. How does the availability of the Internet impact on International sales?

3. What are the basic concepts of Sales Organization? Explain any one of those concepts.

END OF SECTION C

END OF SECTION B

Examination Paper: Sales Management