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MANAGEMENT PROGRAMMETerm-End Examination

December, 2OO7

MS-62 ) :Tim,e: hours MaximumMarks : 700

(Weishtase70%)Note :

fl Attempt any three questictnsrom SectionA.0n Secf on B is com pulsary.(iii l All questions arry equal morks.

SECTION A

SALESMANAGEMENT

1. (a)

(b)

Discuss some of the rnajor techniques of salesforecasting.What sales forecasting techniques will you use toestimate the demand of branded non-toxic gulal (drycolour) which is costlier by 50o/o? This forecasting isneeded for the company to plan for the productionof the required quantity for the festival of Holi. Youmay assume the sales for your district or state forthis purpose.

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2. What is Sales Quota ? How are sales quota and salesterritories interrelated ? Discuss taking specific examples.

3. (a) Briefly explain the methods of developing effectivesalesbudgets.

(b) What items (heads) do you consider to giveinformation in a salesbudget I Fxplain in detail.

4. Write brief notes on any three of the following :(i) Personal Selling Skills(ii) Use of lT,/Computers in Sales Management

, (iii) Sales Organisation(iv) Sales Training(v) Monetary and Non-Monetary Sales Incentives

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SECTION B5- study the case given below and answer the questions given

at the end :Case : Modern Engineering Works Limited

Mr. Ramesh Chauhan, General Manager of ModernEngineering Works Limited (MEW), Jaipur, recommendeda sales contest to improve declining sales performance.This was his response to first-quarter results hat saw salesfall substantiallybelow quota. Mr. chauhan believed thata sales contest would, among other things, provide theincentive to get sales up to or beyond territorial quotas.

MEW distributeda complete line of electrical motors,pumps, parts, switch-gear and accessories n the state ofRajasthan. Its sales lorce of sixty persons operated out often branch offices located at Jaipur, Ajmer, Jodhpur,Bikaner, Udaipur, Sriganganagar, Alwar, Bharatpur, Kotaand Pali, in Rajasthan.

The sales force's compensation plan consisted of abase salary and a bonus. The bonus was based upon theterritorial 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 theirquotas.

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The details of the contest were as under :(a) The duration of the contest would be a quartr, i.e.

13 weeks.(b)

achieves the quarter.quota1,000,

There would be a weekly sales volume quota foreach salesperson determined by the GeneralManagerand respective ranchManager.

(.) Each of the ten branches would also have a branchsales volume quota for the quarter.

(d) . A cash bonus of Rs. 500 each week would go to thesales person exceeding his/her quota by the greatestpercentage. Mr. Chauhan wanted to use total salesvolume instead of percentage but settled for thepercentage eventually.

(e) Each sales person whowould get a bonus of Rs.A cash bonus of Rs. 2,000 would be paid to thesales person exceeding his,/her quarter sales quotaby the greatest percentage. Bonus of Rs. 1,000,Rs. 750 and Rs. 500 would go to salespersons insecond, third and fourth places respectively.In the competition amongst branches', the branchexceeding its quota by greatest percentage wouldreceive Rs. 4,000 as prize which would be sharedequally among the salespersons associatedwith thatbranch. Second, third and fourth places in thginter-branch competition would receive Rs. 3,000,Rs. 2,000 and Rs. '1,000 respect ively.

(0

(s)

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(h) All salespersons, who achieve their quotas and thosewho are to receive bonuses at the end of the quarter,would be invited for a grand award function at HotelRajputana Sheraton, Jaipur, a leading S-star hotel.The award would be handed out by Mr. Naresh, theExecutive Director of MEW.

When Mr. Chauhan formally proposed his plan for asales contest, many objections were raised. All theseobjections related to usual objections in salescontests likedisappointment and frustration amongst sales personswho would not win, disruption in normal pace of work,over aggressivenessamongst some people, the likely fallin sales during the quarter succeeding he contest-quarterand so on.

Mr. Chauhan felt that a contest would correct thepoor sales performance, raise and kindle a competitivespirit amongst its sales orce, give them an opportunity toget their achievements ecognizedand raise the morale ofthe entire sales force.

In spite of a disagreement,a meeting of his staff and branchadvisability of conducting a sales

Mr. Chauhanscheduledmanagerso discusshecontest.

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Questions ;(i) Should Modern EngineeringWorks Limited go ahead

with a salescontest to motivate its salespersonnel tobetter salesperformance ? Why or why not ?(ii) What is the purpose of organizinga contest amongst

branches ? Should individual performance basedcontests be run concurrently with group-performancebased contests ? Why or why not ?

(iii) Could you suggest some other proposal to motivatesales personnel to achieve their sales quotas ? Giveyour reasons with delails of the proposal, as to howwould it be better than the sales contest ?

M5-62@ 1,000