MCQ

The salesforce expense plan, which has the least administrative The purpose of marketing cost analysis is to define.
expense for a company is one of the following types.
1. Cost 2. profitability
1. The salesperson pays all the expenses
2. Sales 4. all of the above
2. The company pays all the expenses
3. The company partially pays expenses
For making a long term study of profitability of different
4. Combination plan products and market segments, the most appropriate approach
is
The main purpose of sales audit is 3. full-cost method
5. To study the sales management process 4. Contribution method
6. To understand the problems of the sales function 5. Both the methods
7. To improve the sales performance 6. None of these
8. None of the above

The most commonly used evaluation method by sales

Evaluation of effectiveness of a sales organization is done by organization for evaluating salespeople
carrying out
7. Descriptive statements
9. Sales analysis
8. MBO 3. Graphic rating scales
10. Cost and profitability analysis
4. Ranking 5. BARS
11. Productivity analysis
12. All of the above
13. None of the above SFA helps salespeople to manage various aspects of
5. Distribution management
Most companies define a sale when an order is 6. Sales administration
14. Received 2. Shipped 7. Pricing
15. Shipped and invoiced 4. paid for 8. Product management
 Conduct a sales analysis to evaluate the effectiveness of the following mentioned branches.

Sales Analysis Branch Branch Branch Branch

‘A’ ‘B’ ‘C’ ‘D’
Sales 32.85 39.55 38.23 23.85

Sales Quotas 33.90 38.80 36.20 25.50

Sales last year 29.50 33.75 31.50 21.22

Industry Sales 103.25 132.0 108.50 84.0

Conduct a sales analysis to evaluate the effectiveness of the following mentioned branches.

Different types of Sales Analysis Branch Branch Branch Branch

‘A’ ‘B’ ‘C’ ‘D’
Effectiveness Index= 97 102 106 94

Market Share= 31.8 29.96 35.23 28.39

Sales Growth= 11.3 17.18 21.36 12.40

“Why is your performance disappointing” asked Vijay Dhawan, the District Sales Manager, to
Mr. Ashok, after looking at the computer statement of his district performance. The four
territories are by and large similar in market potential and competition. Mr. Vijay, therefore
set monthly quotas for the four territories by dividing the district quotas to the four
territories as follows.
Performance Criteria Quotas Alok Suresh Ashok Priyansh

Net sales product ‘A’ 2,00,000 210000 205000 158000 195000

Net sales product ‘B’ 3,00,000 320000 301000 278000 310000

Net sales total 5,00,000 530000 506000 436000 505000

Number of new 2 3 2 1 2
customers
Number of calls 140 170 150 125 145
Sales expenses 5,000 5300 5100 4800 4900

1. Analyze Vijay’s district performance analyzed?

2. What action should Vijay take?
i) How Mr. Vijay,s Regional performance analysed?

Performance Criteria District District Performance Weight Weighted

Quota Actual Index Performance
Performance Index
Net sales product ‘A’ 8,00,000  768000   - -
Net sales product ‘B’ 12,00,000  1209000   - -
Net sales total 20,00,000  1977000   4  
Number of new customers 8  8   3  
Number of calls 560  590   2  
Sales expenses 20,000  21100   1  
      Total 10 1005.50
Let us assume M/s Kanishk Enterprises decides its sales quotas based on Buying Power Index
(BPI) which is combination of population, income, and the general level of retail sales.
Note that for a particular financial year the sales volume was $421.23 million against the
sales quota of $420 million.
The total territory has divided into seven regions and each region consists of few states.
The number of sales managers per state varies from 8 to 10. There are four tables each
provides details of data related to region wise, state wise, sales manager wise and product
wise sales. Do a Hierarchical Sales Analysis and interpret the outcome based on following
data in tables?
(Under each table students have to write the interpretation)
Sales and Sales Quotas for M/s Kanishk Enterprises
Performance
Sales Quotas Sales Difference ($
Region BPI (% of U.S.) Index
($ Millions) ($ Millions) Millions)
(PI=S/QX100)
New England 5.8193% 24.44 25.03    
Middle Atlantic 18.3856 77.22 78.19    
East North-Central 20.1419 84.6 79.48    
West North-Central 7.3982 31.07 30.51    
South Atlantic 14.7525 61.96 64.07    
East South-Central 5.2571 22.08 23.2    
West South-Central 9.2022 38.65 38.42    
Mountain 4.2819 17.98 17.73    
Pacific 14.7613 62 64.6    
Total United States 100% 420 421.23    
Sales breakdown for east north-central region M/s Kanishk Enterprises

Performance
Sales Quotas Sales Difference
State BPI (% of U.S.) Index
($ Millions) ($ Millions) ($ Millions) (PI=S/QX100)

Illinois 6.0037% 25.22 24.30    

Indiana 2.4103 10.12 10.24    
Michigan 4.6401 19.49 17.77    
Ohio 4.9764 20.90 20.43    
Wisconsin 2.114 8.87 6.74    
Total Region 20.1419% 84.60 79.48    
Sales by representative in the Wisconsin district of M/s Kanishk Enterprises

Sales Difference Performance

BPI Sales ($
Area Representative Quotas ($ Index
(% of U.S.) Millions)
($ Millions) Millions) (PI=S/QX100)

T.Tate 0.10% 400.20 392.60    

T.Bir 0.1332 559.40 501.00    
C.Holzem 0.1325 556.50 512.40    
A. Elliott 0.2021 848.80 768.70    
P. Martin 0.2596 1090.30 969.30    
J. Campbell 0.3384 1421.30 1340.30    
L.Hutchins 0.6975 2929.50 1285.00    
B.Lessner 0.2228 1061.80 970.50    
Total Wisconsin 2.11% 8867.80 6739.80    
Hutchin's Sales by Product
Performance
Sales Difference
Product Sales ($) Index  
Quota ($) ($)
(PI=S/QX100)
Can opener/ Knife
sharpners 212000 124500      
Toasters 468000 237000      
Coffee makers 627000 176000      
Blenders/mixers/food
processors 604000 159200      
Griddles/ electric fry
pans 573000 340000      
Other- electric carving
knives/ popcorn
makers/ hot trays etc
445500 248300      
Total 2929500 1285000