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Published by Sabyasachi Kirtania
Master of Business Administration – MBA Semester 3
MK0010 – Sales, Distribution and Supply Chain Management - 4 Credits
Master of Business Administration – MBA Semester 3
MK0010 – Sales, Distribution and Supply Chain Management - 4 Credits

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Published by: Sabyasachi Kirtania on Jun 08, 2011
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Master of Business Administration  MBA Semester 3
MK0010  Sales, Distribution and Supply Chain Management - 4 Credits
Assignment Set  1
60 MarksQ.1 Mr. Suresh Jha is a sales manager of a reputed company. He wants to explain to new sales recruits abouttheir responsibilities as sales personnel and also make them aware about the role of sales manager. Assume youare Suresh Jha and carry out this task.Answer:
Sales Personnel are the people employed to sell the goods or services (mainly of an organisation). Peoplewho are responsible for the sales of either a single product or the entire range of an organization's products can becalled sales personnel. Sales personnel normally report to a sales manager.The job of sales personnel involves a number of responsibilities. It is the income producing division of a business.The salesperson is responsible for: Providing profit contribution Creating a proper image for the company and it's products/services Achieving the sales targets of the organization Satisfying the customers and participating in marketing activities He/she is responsible to the customer and society for continuing growth of the organization. He has multifariousactivities, including setting goals and achieving them, building sales organizations and managing them.For example, in Eureka Forbes Pvt. Ltd. they called their sales force as sales champs (champions) as they areresponsible for the direct marketing of companys products and revenue generation.
Qualities of good sales personnel 
Sales people are the backbone of the organization because they have to face customer and interact with them.Some people say, salesmen are born salesmen, while others believe that training can help in making goodsalesmen. Irrespective of these opinions, good salesman has certain qualities and abilities as a result he is able toperform better than others. In this section, we will discuss qualities of a good sales person.Philip Kotler has identified two basic qualities of a good sales person namely, empathy and persuasion. Some of the qualities of a good sales person are as follows:
 Ability to estimate customer's needs and desires:
He is alert and quickly determines what the customer wants andthe best way to sell.
He likes to do a good job and is interested in getting ahead with companys goals and sales objectives.
Appearance means a lot today and the successful salesman is neat and organised. He presentshimself well in person. Also, he keeps his desk books and manuals neat and ready for use.
Business sense:
He is quick to learn the strengths and weaknesses of the company and makes an effort toimprovise on the companys strengths.
He reveals a sincere desire to help customers and treats them as guests even when he visits their placesof business.
Imagination, vision and the ability to create ideas make your man dynamic.
A salesman must radiate enthusiasm during and after the sales call.
Figure sense:
He should have the mathematical ability to figure and fill up order form correctly and to make thenecessary reports.
A good salesman is able to adapt himself to a variety of customers. Each contact may require a adaptingthe sales talk, speech habits and even appearance.
A salesman should be able to make people like him and he must like to meet people.
ood health generates energy and energy is needed to sell. Poor health prevents many salesmen fromfulfilling their potentials.
A salesman must be trusted to do his job well. He cannot help but he successful when his customerstrust him.
Interest in his job:
He likes selling and working for the company.
In some business, sales person must also have a through knowledge of the highly specialized productsor services his employer offers. In some cases, this knowledge can be gained only by years of experience.
He must be able to impress upon his customers the idea that his company is the best in the business.
Mental abilities:
He has the intelligence to understand your products and those of your competitors. He mustknow how to use words, to understand and direct people and to remember names and faces. He should also beable to understand prospective customers and know how to act under varying conditions.
He must have more than just an interest in selling. They live in the present and not in the future. Theydo want power over others and prefer not to work under close supervision.
Sales Manager: Role and Skills
The sales manager is the most important person in a sales organization so, all activities are based on his functionsand responsibilities. Following are some of the principal duties of a sales manager: Organising sales research, product research and such other research activities.
etting the best output from the sales force under him. Setting and controlling the targets, territories, sales experiences, distribution expenses, etc. Advising the company on various media, sales promotion schemes, etc. Monitoring the company's sales policies.
Sales manager as sales coordinator
The sales manager performs the function of a coordinator and ensures that the other departments in the companyare well informed of sales activities so that they can produce what is required, when it is required and whether thesame can be produced with the existing facilities or it requires changes and so on.The sales manager also carries out coordinating work with the distribution network.
Sales manager as controller
Sales manager should act as per the objectives set by the organization and exercise control over his staff so thatthey may look for advice and may give their best efforts to bring results. He should analyze present condition of the firm, make plans for future and find ways to achieve those plans.
Generating profits
Sales department is responsible for the sales of the products at the best available prices in the givencircumstances. Salesperson produce volume sales as per targets, and he sell the product at a price which maygenerate profit for the company. After all it is positive financial results that add position and power to the salesmanager and bring credit to the sales department.
Sales manager skills
A sales manager should possess following skills:
 Active listening:
iving full attention to what other people are saying, taking time to understand the points beingmade, asking questions as appropriate, and not interrupting at inappropriate times.
Talking to others to convey information effectively.
Using mathematics to solve problems.
Time management:
Managing one's own time and the time of others.
Service orientation:
Actively looking for ways to help people.
Persuading others to change their minds or behavior.
Social perceptiveness:
Being aware of others' reactions and understanding why they react as they do.
Reading comprehension:
Understanding written sentences and paragraphs in work related documents.
Monitoring/Assessing performance of self, other individuals, or organizations to make improvementsor take corrective action.
Bringing others together and trying to reconcile differences.
Q.2 Explain these terms with examples: Sales forecasting, Sales budget, sales quotas and sales territories.Answer:
Sales Forecasting:
Sales forecasting, according to Cundiff and Still, is an estimate of sales during aspecified future period which is tied to a proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces.
Methods of sales forecasting
The various methods of sales forecasting are:
Survey method:
The survey method is based on the opinion of buyers and consumers. It is useful with respect toindustrial products but not as far as consumer goods are concerned. According to this method, a company first of all selects potential buyers/consumers. It then collects their opinions for forecasting.
Expert opinion:
According to this method, a company invites the opinions of executives and consultants who areacknowledged experts in studying sales trends. On the basis of their opinions, it forecasts future sales. Thisestimate is also made on the basis of past performance. However, the method suffers from the drawback of nottaking into consideration changes in the future business environment.
Market studies method:
This method is commonly used by marketers for consumer goods. It is also known as theMarket Test Method. A market test provides data about consumers and the marketing mix. Some people use thismethod as a market experiment method. According to this method, market experiments are conducted onchanging consumer behaviour, prices, advertising expenditure, etc.
Sales force opinion method:
This method estimates the buyer's intentions from experienced personnel in the salesforce. They can easily forecast for their respective territories. Territory-wise forecasts are consolidated at thebranch level and the branch level forecasts are consolidated at thecorporate level. This method can be used onlywhen the firm has competent high-caliber sales personnel.
Statistical methods:
Statistical methods are considered to be superior techniques of sales forecasting becausetheir reliability is higher than that of other techniques. Some commonly used statistical methods are given below:
Trend method:
This method provides a rough trend of the forecast on the basis of past experience. It does not,however, take into account the changing environment. It is a simple method for business forecasting on the basisof past performance.
Graphical method:
According to this method, sales data are plotted on graph paper and a graph is drawn for anumber of years. This is a simple and inexpensive method
Time series method:
This method is used for long periods duly taking into account cyclical changes, seasonalvariations and irregular fluctuations.

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