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Saturday, 10 November 2012

IIBM Exam paper:Management of a Sales Force:contact us for answers at

Examination Paper: Sales Management
IIBM Institute of Business Management 5
IIBM Institute of Business Management
Examination Paper MM.100
Management of a Sales Force
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. ____________ is the stage in which the salesperson must discover, clarify and understand the
buyer’s needs.
a. Customer Research
b. Approach
c. Need Assessment
d. Planning
2. This outcome equates to how much information was absorbed and usually involves in giving the
trainee some type of test.
a. Reactions
b. Leaving
c. Behavior
d. Results
3. A salesperson’s ______________ is calculated by dividing the number of orders received by the
number of calls made (O/C).
a. Batting Average
b. Call Rate
c. Size of Orders
d. Direct Selling Expense
4. Such costs are incurred in connection with a single unit of sales operations.
a. Direct Costs
b. Indirect Costs
c. Overhead Costs
d. Fixed Costs
5. These are the activities that people must perform in orders to carry out the strategy.
a. Objectives
b. Strategies
Examination Paper: Sales Management
IIBM Institute of Business Management 6
c. Tactics
d. Goals
6. The highest executives in sales management is most often called:
a. Vice President of Sales
b. Branch Manager
c. Team Leader
d. District Sales Manager
7. A ____________ is someone with knowledge, experience, rank, or power that provides personal
counseling & career guidance for younger employees.
a. Mentor
b. Leader
c. Supervisor
d. Peer
8. The most widely used method of expense control in which the company reimburses sales
representatives for all legitimate business & travel costs they incur while on company business is
known as:
a. Clarity
b. Payment Plans
c. Limited Payment Plans
d. Unlimited Payment Plans
9. It is a direct monetary reward paid for performing certain duties over a period of time.
a. Salary
b. Incentives
c. Bonus
d. Pension
10. This is a performance goal assigned to a marketing unit for a specific period of time.
a. Salary Plus Bonus
b. Salary plus Commission
c. Salary Plus Commission & Bonus
d. Sales Quota
Part Two:
1. Write a short note on ‘Strategic Account Management’.
2. Why there is a need of a detailed data in sales?
3. Briefly explain the nature & benefits of Territories.
4. What is Market Specialization?
Examination Paper: Sales Management
IIBM Institute of Business Management 7
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).
Caselet 1
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, ore 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.
1. What should Clyde Brion do to remedy the imbalanced sales performance of Louise Shannon and
Henry Sadowski?
Examination Paper: Sales Management
IIBM Institute of Business Management 8
Caselet 2
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
salespeople 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 this 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.
Examination Paper: Sales Management
IIBM Institute of Business Management 9
1. 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)
•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. ‘Sales Forecasting is a very difficult task’ Comment on the statement and also suggest some
guidelines for the manager that can enhance the accuracy of the states forecast.
2. Certain Leadership & Supervisory problems are commonly encountered when managing sales
people. State those problems which are encountered in leadership.
3. What is Training Assessment? What are the Training Program objectives?

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