Kousali Institute of Management Studies

Mid Semester Examination – 2009

Online Examination

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 Karnatak University Dharwad

Mid Semester Examination

Subject: Sales Management

MBA09001008
Roll No:

Semester: Third

Email Id:Thaher5m@gmail.com

All Question are compulsory. All questions carry 5 marks.

Q1.Read the following case and answer the questions given in the
end :

In a bid to expand the market and boost sales, LG Electronics Ltd.

identified institutional sales as a focus area in the calendar year
1999. It plans to triple the target turnover to Rs. 150 crores from
institutional sales. LG has honed its institutional sales strategy by
identifing and proactively targeting five different segments to
push the LG range : brand promotions; the welfare segment
(factory workers and office staff); government sector; direct
users (hospitals, hotels); and the canteen stores departments
(CSD) of the armed forces.

A distinct strategy has been tailored for each of the five

segments. In brand promotions for example, the perceived value
of the products given as gifts is important, whereas for the
wellare segment aspirational value, convenience and easy
financing are prime factors. Meanwhile, hotels represent a price
sensitive segment requiring specially customized products.

Welfare: In this segment, LG is targeting a consumer base - the

aspirational consumer, mostly factory staff - that most companies
ignore, but which has considerable clout in terms of generating
volumes. This segment is being targeted on the convenience and
easy finance platform. LG has just tied up with Birla Global
Finance Ltd., part of the Aditya Birla Group, for the purpose.
Under the tie-up, LG will unit-wise cover all the Birla companies.
This amounts to over two lakh employees.

This is a lucrative segment, claims LG, because of the high hit-

rate; out of a potential base of 1,000 factory workers, there is an
assured sale of at least 10 to 20 percent.

Hotel Segment: In this segment, LG is targeting the five-star

and middle-level hotels (50 - 110 rooms) by offering customized
products. For example, LG offers a special 'hotel-mode TV' model
with an auto volume leveler, which ensures that other guests are
not disturbed. Another attraction for hotels is the cricket game TV
model that would also prove to be popular and an interactive
option with Internet, video/audio or room service menu facilities.
LG claims to have sent out mailers to 1,200 hotels - and bagged
at least 100 orders, besides the 'Palace on Wheels' luxury train,
for providing TV sets in its 52 cabins. Now, LG is reading a range
of interactive televisions for this segment, offering remote-
controlled features like : the hotel menu, local facilities,
billing,room sevice, video on demand, intenet, multilingual
options.

Canteens and the Government Sector: "We are perhaps the

only company offering our entire range of products in CSD
canteens," feels the product manager, of LG. In the government
sector, which operates through tenders, significant orders so far
included an order for 200 TVs for Himachal Tourism bungalows in
the State and over 2,000 TVs for primary schools in rural areas in
Maharashtra.

The company has a five-memeber Institutional Sales Divison,

with each devoted exclusively to one segment. It has 50
institutional sales dealers and a ring of sales representatives
when interact with the dealers and conduct demonstrations when
needed. Its infrastructure consists of 20 mobile vans wth glass
windows to display the product range. These vans cover at least
500 km every month in both rural and urban markets.

Questions :

(a) Do you think such a field sales force is adequate to harness

the market potential in the Institutional market ?

(b) Would you recommend focuing on one or two segments out of

the given five ? Justify your answer.

A. The sales force which are their in the top level that is 5
member institutional sales division is not adequate for the
company. Each segment should have atleast 3 persons in the top
level management because a single person can not take all the
decisions and some times he may requires advice from his
subordinate.
I think the number of dealers are ok for the Institutional buyers

B. Hotel segment

A hotel segment should have 5 people in its top level

management that is

Divisional manager

Regional manager

Area Manager

Customer relationship Manager

Business developer

Business creators and getters

The above people can manage the dealers and sales force
effectively

Space for Answer 1

Q2. What inter-personal communication skills are needed in a

sales professional ? Discuss by taking specific examples
 Space for Answer 2

Interpersonal communication skills are very important in the

Sales professional because most of the time the sales
professional has to persuade and convince the customer.

Inter-personal communication skills required are

Sales person should be assertive but shouldn’t be aggressive

Have good gesture

Able to convince customers easily

Shouldn’t be demanding

Problem solving skills

Listening skills

Negotiation and bargaining skills

Conflict management skills

Q3. What are the key functions of a Sales Manager ? Discuss

taking the example of a fast Food Restaurant
 Space for Answer 3

The key functions of Sales manager of a fast food restaurant

Defining objectives and goals to their team

Setting the target for their team

Identifying the proper location to set up Fast food restaurant

Understanding the customer needs and wants

Managing Sales force

Providing required training to Sales person

Motivating the sales force

Giving proper product knowledge to the Sales person

Understanding the customers tastes and preferences

Providing good ambience in the Restaurant

04 A FMCG Company has introduction a new product in the bottle

water segment. You are the manager responsible for developing
the sales team. What according to you are factor for a success
launch of sales campaign.

Space for Answer 4

The factors for a success launch of sales campaign are:

Before developing the sales team, the manager should have

the knowledge about

Water bottle market

Major players in the market

Who are the nearest competitors to them

What are the pricing, selling and promotional strategies

adopted by other players

Who are the customers’ they are catering to

Sales Campaign:

First the manager and their team should have created

awareness about their product

Space for Answer 4

Q5. Q1. Discuss any one theory of selling in detail. Also explain
the stages or components of such a theory taking the example of
door-to-door selling :

(a) Eureka Forbes vacuum cleaner

(b) Industrial chemicals

Theory of Selling

Preparation for sale

Prospecting

Preapproach before the final interview

Approaching the customer

Sales presentation

Handling of the objections

Closing

Follow-ups

Above are the selling process of any door to door selling

In case of Eureka Forbes vacuum cleaner the stages are

Preparing for sales, that is having full knowledge about the

Eureka Forbes Vacuum cleaner which can be useful in handling
the objections from the customer

Finding out the potential customers

Approaching the customers before the final interview with them ,

this stage is more useful to identify the customer needs and
wants and accordingly we can render the service to them . it can
also be useful in customizing their products according to them

Finally approaching the customer with the products

Giving the sales presentation to the customer which highlights

everything about the product

Handling the objects form the cutomer

Closing the sales by having proper negotiation

Follow ups, it’s a necessary step if we want to have good sales

Industrial chemicals selling stages:

Directly approaching the customer

Persuading the customer to have sales

Providing every detail about the product

Negotiating

Closing the sales

Space for Answer 5

Space for Answer 5