MANIPAL UNIVERSITY JAIPUR

SET-1

1. Define Sales Management. What are its objectives?

Answer - Sales management refers to the process of planning, organizing, directing, and
controlling the activities of the salesforce of an organization. It involves developing sales
strategies, setting sales targets, managing the sales team, and overseeing the sales process to
achieve organizational goals. The ultimate objective of sales management is to maximize
sales and revenue for the organization while ensuring customer satisfaction.

Objectives of Sales Management:

1. Sales Forecasting: The primary objective of sales management is to forecast the sales
volume for the future. The sales team uses various forecasting techniques to predict
the sales trend and estimate future sales. Accurate sales forecasting helps
organizations to plan their resources, allocate budgets, and set achievable sales
targets.

2. Sales Organization: Sales management is responsible for setting up an efficient sales

organization that can execute the sales plan effectively. This involves creating a sales
team, defining sales roles, and setting sales targets for each salesperson. Sales
management also ensures that the sales team is adequately trained, motivated, and
compensated to achieve the sales goals.

3. Sales Control: Sales management is responsible for controlling the sales process to
ensure that the sales team is meeting the sales targets. This involves tracking the sales
performance, analysing the sales data, and taking corrective action to improve the
sales performance. Sales management also establishes sales metrics to measure the
effectiveness of the sales process and identify areas for improvement.

4. Customer Satisfaction: The ultimate objective of sales management is to ensure

customer satisfaction by delivering the right product or service at the right time and
price. Sales management ensures that the sales team is focused on understanding
customer needs, providing the right solutions, and building long-term relationships
with customers.

5. Organisation Growth- Consistent sales management strategies ensure that the

company continues to gain market share which leads to company growth.

6. Market Leadership- Dedicated and effective sales management allows a company to

become a leader in the industry by increasing sales volumes and profits.

7. Converting Prospects to Customers- Getting prospects to become customers is both an

art and a science that necessitates careful preparation and perseverance. Sales
management is used to achieve this.

8. Motivate the Sales Force- Keeping the sales force motivated is one of the most
important sales management goals. Selling can be a stressful job, and hitting revenue

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goals can be challenging. As a result, sales management is responsible for ensuring

that appropriate rewards and reward programmes continually empower the sales
force.

In summary, sales management is critical to the success of an organization's sales efforts. By

forecasting sales, planning, organizing, and controlling the sales process, sales management
can achieve the organization's sales objectives while ensuring customer satisfaction.

2. Write Short notes on:

a. Role of e commerce in selling.

Answer - E-commerce selling has revolutionized the way businesses reach out to customers
and sell their products or services. E-commerce platforms have made it possible for

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businesses of all sizes to sell their products online and reach a global customer base, without
the need for a physical storefront or a large marketing budget.

The role of e-commerce selling is critical in enabling businesses to:

1. Reach a wider audience: With e-commerce platforms, businesses can sell their
products to customers all over the world, without the limitations of geographical
boundaries.
2. Sell 24/7: Unlike physical stores, e-commerce platforms are open 24/7, enabling
businesses to sell their products at any time of the day or night.
3. Reduce overhead costs: E-commerce platforms eliminate the need for a physical
storefront, reducing rent and utility costs. Businesses can also save on marketing costs
by utilizing online advertising and social media.
4. Enhance customer experience: E-commerce platforms offer customers convenience
and flexibility in terms of shopping and payment options, which can enhance the
overall customer experience.
5. Track sales and customer behaviour: E-commerce platforms provide businesses with
valuable data on customer behaviour, enabling them to optimize their marketing
strategies and improve their products or services.

b. Future of e commerce.

Answer - The future of e-commerce is bright and promising as consumers increasingly prefer
to shop online due to convenience, affordability, and a wider range of products. E-commerce
has been growing steadily over the years, and the COVID-19 pandemic has further
accelerated its growth, as people turned to online shopping to avoid crowded places.

The future of e-commerce is expected to see more personalized and immersive shopping
experiences, thanks to advancements in AI, augmented reality, and virtual reality
technologies. These technologies will enable online shoppers to see how products would look
and feel in real life, thereby improving the shopping experience and reducing the likelihood
of returns.

Another trend that is likely to shape the future of e-commerce is the use of voice assistants
and chatbots for online shopping. With the increasing popularity of voice assistants such as
Alexa and Siri, retailers are expected to leverage this trend to make online shopping more
seamless and convenient.

Finally, e-commerce is expected to become even more mobile-friendly, as consumers

continue to use their smartphones for online shopping. Retailers will need to optimize their
websites and apps for mobile devices to provide a smooth shopping experience.

In summary, the future of e-commerce is bright and promising, with the continued growth of
personalized and immersive shopping experiences, the increasing use of voice assistants and
chatbots, and the further optimization of mobile devices for online shopping.
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3. Explain different types of retailers.

Answer - Retailers are businesses that sell products or services directly to consumers. They
are an essential part of the supply chain and play a crucial role in the economy. There are
several types of retailers, each with its unique characteristics and advantages. In this
response, I will explain some of the most common types of retailers in detail.

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a. Department Stores: Department stores are large retail stores that sell a wide range of
products, including clothing, home goods, electronics, and beauty products. They
typically have multiple floors and many departments, each specializing in a specific
category of products. Department stores offer a one-stop-shop for consumers, making it
convenient for them to find everything they need in one location. Examples of department
stores include Macy's, JCPenney, and Nordstrom.

b. Discount Stores: Discount stores are retail stores that sell products at lower prices than
traditional retail stores. They typically offer a limited selection of products, and the stores
are usually simple in design and decoration. Discount stores appeal to price-sensitive
consumers who are looking for deals and bargains. Examples of discount stores include
Walmart, Target, and Dollar General.

c. Specialty Stores: Specialty stores are retail stores that specialize in a specific product or
category of products. They offer a deep selection of products in their area of focus and
typically have knowledgeable staff who can assist customers in finding the right product.
Examples of specialty stores include Apple (electronics), Sephora (beauty), and Petco
(pet products).

d. Supermarkets: Supermarkets are large retail stores that primarily sell food and
household goods. They offer a wide range of products, including fresh produce, meats,
dairy products, and packaged goods. Supermarkets typically have a pharmacy, bakery,
and deli in addition to their food offerings. Examples of supermarkets include Kroger,
Safeway, and Publix.

e. Convenience Stores: Convenience stores are small retail stores that offer a limited
selection of products for customers who want to make quick purchases. They are typically
located in high-traffic areas such as gas stations, airports, and train stations. Convenience
stores typically sell snacks, beverages, cigarettes, and lottery tickets. Examples of
convenience stores include 7-Eleven, Circle K, and Wawa.

f. Online Retailers: Online retailers are businesses that sell products and services online.
They offer a wide range of products, and customers can order them from the comfort of
their homes or offices. Online retailers typically offer lower prices than traditional
retailers because they do not have the overhead costs associated with physical stores.
Examples of online retailers include Amazon, eBay, and Etsy.

In conclusion, these are some of the most common types of retailers. Each type of retailer
has its unique characteristics and advantages, and consumers can choose the one that best
meets their needs and preferences.

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SET – 2

4. What is Vertical market system? Explain its components.

Answer - A Vertical Market System (VMS) is a type of marketing channel in which a

dominant member of the channel, often a manufacturer or wholesaler, works closely with
smaller members, such as retailers, to create a cohesive marketing strategy and provide a
more efficient supply chain. In a VMS, the members of the channel work together to promote
and sell a specific product category or set of related products. Simply a Vertical Marketing
System (VMS) is made up of the key distribution channel partners, such as the manufacturer,
wholesaler, and retailer, who work together as a single entity to meet the customers’ needs.

 There are three components of a Vertical Market System:

I. Corporate VMS: A corporate VMS is a system in which a single company owns and
operates all the different levels of the distribution channel, from manufacturing to
retail. This type of VMS allows the company to maintain complete control over the
distribution of its products and ensures that each level of the channel is working in
harmony towards a common goal. Amway, for example, is a cosmetics company
based in the United States that produces its line of products and sells them exclusively
through its registered Amway stores. The corporation owns the rights to production
and distribution in this case

II. Contractual VMS: A contractual VMS is a system in which the different levels of
the distribution channel are linked together by contracts and agreements. In this type
of VMS, the dominant member of the channel sets the terms of the contracts and
agreements, and the smaller members must adhere to those terms. The producer
authorises the distributor to market the producer’s goods under the producer’s name in
exchange for an annual license fee. McDonald’s, Domino’s, Pizza Hut, and other
franchises open- ate on a contractual basis.

III. Administered VMS: An administered VMS is a system in which the dominant

member of the distribution channel does not own or operate the different levels of the
channel but has the power to influence them through other means. This may include
using its brand name or reputation to encourage retailers to carry its products or
offering incentives to retailers who meet certain sales targets. Big brands like HUL,
ITC, Procter & Gamble, and others, for example, get a lot of help from retailers
regarding display, shelf space, pricing plans, and promotional schemes.

Overall, a Vertical Market System is a strategic approach to distribution that can provide
benefits to all members of the channel by increasing efficiency, improving communication,
and creating a more cohesive marketing strategy.

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5. Explain the levels of supply chain.

Answer - The Supply Chain Management (SCM) is the management of procedures that
includes acquisitions of production ingredients, converting the same into final product, and
delivery to the final customers. It also includes the operative plan of delivery, sideward
actions of business to increase the growth in customer appraisal and earning comprehensive
competition benefits in the market. After all, it is essential for you to understand that SCM
forms the base of any procedures or business. It consists of whole judgment taken about the
concerned products or services which a business endeavours to deliver to its consumers.

Supply chain management is a vital aspect of business operations that involves the
coordination and management of all the activities involved in the production and delivery of
goods and services to customers. Supply chain management has different levels that range
from the raw materials to the end product, and each level requires unique strategies and
approaches to ensure that the supply chain functions effectively.

 The following are the levels of supply chain management:

1. Strategic Level: The SCM being high-profile tends to be authoritative for long-run
decisions of the business. The judgment taken at this level acts as a base for the
integrated supply chain procedures. For instance, choosing the product or service
that business organisations want to flourish in. This decision includes the study on
database of current markets and consumers’ demand

2. Operational Level: Scheduling refers to activities revolving around day-to-day

operation of the business to keep supply chain processes in constant motion to
enable the business activities. Most of the time in maintaining operational
continuality, the mandates arrived at sourcing and distribution levels are either
compromised or neglected. It is extremely important to keep operational level
activities aligned with decision making and strategic components of the business.

3. Operational Level: Distribution not only involves ensuring the product reaches the
customer but also involves various important business components like mode of
transport, type of storage, local sales and marketing efforts. This level of supply
chain management involves the transportation of finished goods from the
production facility to the customer. Companies must establish efficient and
reliable transportation channels to ensure that products are delivered to customers
on time and in good condition.

In conclusion, supply chain management is an essential aspect of business operations, and

effective management requires companies to develop strategies and approaches for each level
of the supply chain. Companies must also continuously evaluate and optimize their supply
chain management to remain competitive and meet the changing demands of customers

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6. What are the tools of inventory Management? Explain any 3 of them.

Answer - Inventory management is the process of overseeing and controlling the inventory
levels of a business. Proper inventory management helps businesses to optimize their
inventory levels, reduce costs, and increase profitability. There are several tools and
techniques used in inventory management, some of which are:

1. ABC Analysis: This technique helps businesses prioritize their inventory items based
on their value. It involves dividing inventory into three categories: A, B, and C.
Category A items are those with the highest value, typically accounting for around
80% of total inventory value. Category B items are of medium value and account for
around 15% of total inventory value. Category C items are of low value and account
for around 5% of total inventory value. By focusing on managing and tracking the A
items more closely, businesses can ensure they have sufficient stock of their most
valuable products.

For example, in a retail store, items like electronics, jewellery, and high-end clothing
can be classified as A items because they are high-value items. Items like books,
stationery, and low-cost clothing can be classified as B items, and items like
groceries, toiletries, and low-cost accessories can be classified as C items.

2. Economic Order Quantity (EOQ): EOQ is a formula that helps businesses determine
the optimal order quantity to minimize the total cost of inventory. It takes into account
the cost of ordering, holding, and storing inventory, as well as the demand for the
product. The goal of EOQ is to find the order quantity that minimizes the total cost of
inventory while ensuring that enough stock is available to meet customer demand. By
using this formula, businesses can optimize their inventory levels and reduce costs
associated with excess inventory or stockouts.

For example, a business that sells office supplies can use EOQ to determine the
optimal order quantity for printer paper. By calculating the carrying costs, ordering
costs, and demand, the business can determine the most cost-effective order quantity
that minimizes the total cost of ordering and carrying the inventory.

3. Just-In-Time (JIT) Inventory: JIT inventory management aims to minimize inventory

costs by ensuring that inventory arrives just in time to meet customer demand. This
approach requires careful planning and coordination with suppliers to ensure that
goods arrive precisely when they are needed, rather than being held in a warehouse.
By minimizing the amount of inventory held in stock, businesses can reduce
warehousing and holding costs while ensuring they have sufficient stock to meet
customer demand.

For example, a manufacturing company can use JIT to ensure that it receives the raw
materials it needs just in time to start production. By doing so, the company can

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reduce its inventory levels and reduce the costs associated with holding excess
inventory. However, JIT requires careful planning and coordination with suppliers to
ensure that the right inventory is available at the right time.

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