1.

Under what circumstances can a company sales team work independently of

distribution channels? Explain with concrete example(s).

Answer: The company sales has different works from the distribution channels buy they
are teaming up for the purpose of the success of the company. For example the sales team
are doing their best to get a deal from customers to buy the products and after the deal the
distribution channels are the one who deliver the ordered products to the sales team or to
customers. That is one way of team work that happens between the sales team and the
distribution channels.

2. Why should the salespeople must understand the psychological aspects of selling
and buying decision process?

Answer: Salespeople needs to understand the psychological aspects of selling and

buying decision so that they have idea that they can use when they are selling the
products. There are proper way of selling and there are also proper way of buying from
the customers perspective that’s why it is important to know this aspects.

3. How sales managers can use information technology in territory management?

Answer: Information technology can be useful for the sales managers because they can
acquire programs that may help them to manage the business. This programs are high-
tech enough to cover the entire business with the use of only one programs made by the
programmers. They don’t need to monitor the program physically because this program
can monitor the entire business with only the system who runs the program.
4. A high performing salesperson, whose morale is down because he did not get an
expected promotion as a marketing executive, although he has been consistently
exceeding his sales targets (or quotas) for the past four years. If you were an area
sales manager, how would you motivate the salesperson?
Answer: If I were the area sales manager I will simply encourage him by saying that
sometimes what you expect might not happen because of some unpredicted happenings. I
will also tell him/her that don’t lose hope and maybe it’s not the right time yet. Continue
also the good things and don’t let their emotions affect their job. Sometimes words can
heal the wounds and comfort may help the person recover from pains.

5. Enumerate the various types of expense plans. Mention the main advantage and
disadvantage of each type. 

 Fixed expenses, variable expense, periodic expense

Fixed expenses
 Advantage
- Average cost per unit falls as “output”increases
- Serves as a “hedge” against rising prices forthe “fixed-cost item”
Disadvantage
- Average cost per unit increases as output falls–If market prices of the “fixed
- Cost item”decrease, it may be difficult to remain price-competitive

Variable expenses

Advantage
- Costs can be reduced more easily if “output”falls
- Easier to take advantage of falling productioncost
- Profit will be more directly related to “output”(this could also be a disadvantage)

Disadvantage
- Miss some opportunities for “economies ofscale

Periodic

Advantage
- Since no permanent employee is required for physical counting of merchandise inventory under
this system it is less expensive.
- It is applicable for all business organizations large or small dealing with specific or a variety of
goods.
- Since stock taking is done at the end of a period under this system the normal activities of the
business are not hampered.
- Since the stock-taking of merchandise is done on a particular date the quantity of stock of
merchandise is reliable.

Disadvantage
- On the very day of the physical counting of merchandise stock, normal activities of
business remain almost suspended.

1. The act of counting merchandise stock is to be completed hurriedly due to a shortage of

time.

2. Under this system chance of fraud and forgery lies, because here continuous control over
merchandise is absent.

3. Under this system on expiry of the particular period, the reasons for differences between
merchandise at hand and merchandise shown in the books of accounts can hot be sorted out
easily.
4. Under this system, the stock control device is very weak. Their employees get a chance to
adopt corruption.