MMPM-002
Sales Management
MMPM 002 solved Free Assignment 2023
MMPM 002 Solved Free Assignment January 2023
IGNOU MBA Assignment 2023
Q 1. (a) Trace the evolution of sales management functional. Explain the role of sales function in marketing and the key decision areas which guide in the formulation of sales strategy.
Ans. Sales management is a critical function within marketing, responsible for creating and implementing strategies to promote and sell products or services to customers.
Over the years, the role of sales management has evolved as companies have sought to optimize their sales operations and meet the changing needs of customers.
The early history of sales management can be traced back to the 19th century when sales organizations began to emerge as businesses grew in size and complexity.
At that time, sales management was primarily focused on managing the sales force and ensuring that sales targets were met.
This involved managing a team of sales representatives, training them on sales techniques, setting sales targets, and monitoring their performance.
In the early 20th century, as mass production and mass marketing became more prevalent, sales management began to focus on creating demand for products through advertising and other promotional activities.
This led to the emergence of sales promotion as a critical component of sales management, as companies sought to stimulate demand and increase sales through special offers, discounts, and other promotional activities.
In the mid-20th century, as businesses became more global and competitive, sales management began to take a more strategic approach.
This involved developing sales strategies that aligned with overall business goals, optimizing sales processes, and adopting new technologies to improve sales performance. MMPM 002 Solved Free Assignment 2023
Today, sales management plays a critical role in driving business growth and revenue.
The sales function is responsible for creating and managing customer relationships, identifying new sales opportunities, and ensuring that sales targets are met.
Sales managers are also responsible for analyzing sales data and using it to inform strategic decision-making.
The sales function is a critical component of marketing, as it is responsible for generating revenue and ensuring that customers are satisfied with their purchases. Key decision areas that guide the formulation of sales strategy include:
Sales targets: Sales targets are a critical component of sales strategy. Sales managers must set realistic targets that align with overall business goals and are achievable based on current market conditions and customer demand.
Sales channels: Sales channels refer to the various methods by which customers can purchase products or services. MMPM 002 Solved Free Assignment 2023
Sales managers must determine which sales channels are most effective for their products or services and develop strategies to optimize sales through those channels.
Sales team management: Managing the sales team is a critical aspect of sales management.
This involves recruiting, training, and motivating sales representatives, as well as monitoring their performance and providing ongoing feedback and support.
Sales technology: Technology plays an increasingly important role in sales management, as companies adopt new tools and platforms to optimize their sales processes. Sales managers must stay up-to-date on new technologies and determine which tools are most effective for their sales team.
Sales forecasting: Sales forecasting involves predicting future sales volumes based on historical sales data and other market factors.
Sales managers must develop accurate sales forecasts to inform strategic decision-making and ensure that sales targets are met.
(b) Explain the reasons for the growing importance of personal selling in the Indian context. Elaborate the situations conducive for personal selling.
Ans. Personal selling is an essential component of any marketing mix. It is a process of communication between a salesperson and a potential customer, with the objective of making a sale. MMPM 002 Solved Free Assignment 2023
Personal selling has become increasingly important in the Indian context due to various reasons such as the country’s diverse population, complex decision-making processes, and the need for building strong relationships with customers.
Reasons for the Growing Importance of Personal Selling in India:
Diverse Population: India is a diverse country with people from different cultural, social, and economic backgrounds. Therefore, it is essential to tailor marketing messages according to the target audience.
Personal selling allows companies to communicate with potential customers on a one-to-one basis and understand their needs, preferences, and expectations.
Salespersons can use this information to customize their sales pitch and offer products and services that meet the specific needs of their customers.
Complex Decision-Making Processes: The decision-making process in India is complex, involving multiple stakeholders, including family members, friends, and colleagues. MMPM 002 Solved Free Assignment 2023
Personal selling allows salespersons to build relationships with these stakeholders and influence their decision-making process.
Salespersons can use their interpersonal skills and emotional intelligence to establish trust, credibility, and rapport with potential customers.
This helps in reducing the cognitive dissonance that customers may experience during the decision-making process.
Need for Building Strong Relationships: India is a relationship-oriented society where building strong relationships with customers is essential for long-term success.
Personal selling allows companies to build strong relationships with customers by providing personalized service, addressing their concerns, and resolving their issues.
Salespersons can also use their communication skills to educate customers about the benefits of their products and services and how they can help them solve their problems.MMPM 002 Solved Free Assignment 2023
Growing Competition: With the increasing number of companies entering the Indian market, competition is growing at a rapid pace.
Personal selling allows companies to differentiate themselves from their competitors by providing a unique value proposition.
Salespersons can use their product knowledge, industry expertise, and customer insights to offer customized solutions to potential customers.
This helps in creating a competitive advantage for the company and increasing its market share.
Lack of Trust in Advertising: Indian customers are becoming increasingly skeptical of advertising messages due to the proliferation of false and misleading advertisements.
Personal selling allows companies to build trust with potential customers by providing accurate and reliable information about their products and services.
Salespersons can use their communication skills to address the concerns and doubts of potential customers and provide them with the necessary information to make an informed decision.MMPM 002 Solved Free Assignment 2023
Situations Conducive to Personal Selling:
High-Value Products: Personal selling is most effective when selling high-value products such as real estate, automobiles, and industrial equipment.
These products require a high level of involvement from potential customers, and personal selling allows companies to provide personalized service and address their concerns.
Complex Products: Personal selling is also effective when selling complex products such as software, financial services, and healthcare products.
These products require a high level of expertise and knowledge, and salespersons can use their industry expertise to educate potential customers and address their concerns.MMPM 002 Solved Free Assignment 2023
Customized Solutions: Personal selling is effective when offering customized solutions to potential customers.
Salespersons can use their communication skills to understand the specific needs and requirements of potential customers and offer customized solutions that meet their unique needs.
Relationship Building: Personal selling is effective when building long-term relationships with customers.
Salespersons can use their interpersonal skills to establish trust, credibility, and rapport with potential customers, which helps in building long-term relationships.
New Product Launches: Personal selling is effective when launching new products in the market. Salespersons can use their communication skills to educate potential customersMMPM 002 Solved Free Assignment 2023
Q 2. (a) How and why communication skills are vital in sales situations that help in better understanding in sales transactions. Discuss with an example.
Ans. Effective communication skills are an essential aspect of sales transactions. Salespersons need to communicate effectively to build rapport with potential customers, understand their needs, and offer solutions that meet their requirements.
Communication skills help in creating a positive and lasting impression on customers, which is crucial for building long-term relationships.
How Communication Skills are Vital in Sales Situations:
Building Rapport: Building rapport with potential customers is crucial in sales transactions. Salespersons need to establish a connection with customers and create a comfortable and trusting environment.
Communication skills such as active listening, empathy, and mirroring can help in building rapport with customers. MMPM 002 Solved Free Assignment 2023
For example, if a salesperson notices that a customer is hesitant, they can use active listening skills to understand the customer’s concerns and respond with empathy. This can help in building trust and establishing a connection with the customer.
Understanding Needs: Understanding the needs of potential customers is crucial in sales transactions. Salespersons need to ask questions and listen actively to understand the customer’s requirements.
Communication skills such as asking open-ended questions, active listening, and clarifying can help in understanding the customer’s needs.
For example, if a salesperson is selling software to a customer, they can ask open-ended questions to understand the customer’s requirements and offer solutions that meet their specific needs.MMPM 002 Solved Free Assignment 2023
Providing Solutions: Providing solutions that meet the customer’s needs is crucial in sales transactions. Salespersons need to communicate effectively and offer solutions that are tailored to the customer’s requirements.
Communication skills such as persuasive language, problem-solving, and storytelling can help in providing solutions to customers.
For example, if a salesperson is selling a car to a customer, they can use storytelling to highlight the car’s features and benefits and persuade the customer to make a purchase.
Overcoming Objections: Overcoming objections is a common challenge in sales transactions. Salespersons need to communicate effectively and address the customer’s concerns to overcome objections.
Communication skills such as active listening, empathy, and problem-solving can help in addressing the customer’s concerns.
For example, if a customer is concerned about the price of a product, the salesperson can use active listening skills to understand the customer’s concerns and offer solutions such as financing options or discounts.
Closing the Sale: Closing the sale is the final stage in sales transactions. Salespersons need to communicate effectively and persuade the customer to make a purchase.
Communication skills such as persuasive language, summarizing, and storytelling can help in closing the sale. MMPM 002 Solved Free Assignment 2023
For example, if a customer is still hesitant about making a purchase, the salesperson can use persuasive language to summarize the benefits of the product and encourage the customer to make a purchase.
Communication Skills are Vital in Sales Situations:
Building Relationships: Effective communication skills can help in building long-term relationships with customers.
Salespersons who communicate effectively can establish trust, credibility, and rapport with customers, which is crucial for building long-term relationships.
Understanding Customer Needs: Effective communication skills can help in understanding the customer’s needs and requirements.
Salespersons who communicate effectively can ask questions, listen actively, and clarify to understand the customer’s needs and offer solutions that meet their specific requirements.MMPM 002 Solved Free Assignment 2023
Providing Solutions: Effective communication skills can help in providing solutions that meet the customer’s needs.
Salespersons who communicate effectively can persuade customers by highlighting the features and benefits of their products and services and addressing their concerns.
Overcoming Objections: Effective communication skills can help in overcoming objections and addressing customer concerns.
Salespersons who communicate effectively can use active listening, empathy, and problem-solving skills to understand and address the customer’s concerns.
(b) Distinguish merchandising and sales displays. Comment on the various types of sales displays that you are familiar with.
Ans. Merchandising and sales displays are two essential elements of visual merchandising that play a critical role in attracting and engaging customers.
Although they are related, they serve different purposes and have distinct characteristics.MMPM 002 Solved Free Assignment 2023
Merchandising vs. Sales Displays:
Merchandising refers to the visual presentation of products in a way that maximizes their appeal to customers.
The goal of merchandising is to create an inviting and visually appealing shopping environment that encourages customers to make purchases.
Merchandising can include a variety of elements such as store layout, lighting, color, and signage.MMPM 002 Solved Free Assignment 2023
Sales displays, on the other hand, are specific displays designed to showcase particular products or promotions.
The goal of sales displays is to highlight specific products, promotions, or deals and encourage customers to make purchases.
Sales displays are typically located in high-traffic areas of the store, such as near the entrance, checkout, or endcaps.
Types of Sales Displays:
Window Displays: Window displays are a type of sales display that is typically located in the front window of a store. The goal of a window display is to capture the attention of passersby and encourage them to enter the store.
Window displays can be used to showcase new products, seasonal items, or promotions.MMPM 002 Solved Free Assignment 2023
Endcaps: Endcaps are displays located at the end of an aisle or at the front of a section. The goal of endcaps is to highlight specific products or promotions and encourage customers to make a purchase.
Endcaps can be used to showcase new products, high-margin items, or limited-time offers.
Floor Displays: Floor displays are large displays located on the floor of the store. The goal of floor displays is to attract customers’ attention and encourage them to interact with the products.
Floor displays can be used to showcase new products, seasonal items, or promotions.MMPM 002 Solved Free Assignment 2023
Counter Displays: Counter displays are displays located on or near the checkout counter.
The goal of counter displays is to encourage customers to make impulse purchases while they are waiting in line. Counter displays can be used to showcase small items such as candy, gum, or small toys.
Wall Displays: Wall displays are displays located on the walls of the store. The goal of wall displays is to showcase products and encourage customers to make a purchase.
Wall displays can be used to showcase new products, high-margin items, or limited-time offers.MMPM 002 Solved Free Assignment 2023
Island Displays: Island displays are displays located in the center of the store. The goal of island displays is to attract customers’ attention and encourage them to interact with the products.
Island displays can be used to showcase new products, seasonal items, or promotions.
Interactive Displays: Interactive displays are displays that allow customers to interact with the products. The goal of interactive displays is to provide customers with a memorable and engaging shopping experience.
Interactive displays can be used to showcase new products, highlight product features, or provide product demonstrations.
Q 3. (a) Discuss the major sources of recruitment that you would consider for the selection of fresh management graduates for an FMCG company. Give reasons for the choice.
Ans. Recruiting fresh management graduates for an FMCG company is a crucial process that requires careful consideration of various factors.
The right recruitment sources can help attract the most suitable candidates, with the skills and abilities that are essential for the success of the organization.
Campus Recruitment: MMPM 002 Solved Free Assignment 2023
One of the most common sources of recruitment for fresh management graduates is through campus recruitment.
FMCG companies can visit management institutes and business schools to identify and recruit fresh graduates who are eager to start their careers.
Campus recruitment provides the opportunity to hire candidates who have the latest knowledge and skills in the field and are likely to be enthusiastic and motivated.
Employee Referrals:
Employee referrals are an effective way to recruit fresh graduates who are likely to fit well into the company culture. MMPM 002 Solved Free Assignment 2023
Current employees can refer candidates who have recently graduated from management institutes and business schools.
Referrals are often seen as trustworthy, as they come from people who know the organization well and can vouch for the candidate’s abilities.
Job Portals:
Job portals can be an effective source of recruitment for fresh management graduates.
Candidates who have recently graduated are likely to be active on job portals, searching for suitable job opportunities.
FMCG companies can post job openings on popular job portals, providing a large pool of candidates to choose from.
Social Media: MMPM 002 Solved Free Assignment 2023
Social media platforms such as LinkedIn, Facebook, and Twitter can be an effective source of recruitment for fresh management graduates.
FMCG companies can post job openings on social media, creating a buzz and attracting candidates who are active on these platforms.
Social media can also help in building the employer brand, providing an opportunity to showcase the company’s culture and values.
Internships:
Internships are a valuable source of recruitment for FMCG companies. Companies can offer internships to management students, providing an opportunity to identify potential candidates who have the skills and abilities that are essential for the organization’s success. MMPM 002 Solved Free Assignment 2023
Internships also allow students to gain valuable experience and knowledge, making them more suitable for full-time employment after graduation.
Job Fairs:
Job fairs are an excellent source of recruitment for FMCG companies looking to hire fresh management graduates.
Job fairs bring together a large number of candidates in one place, providing an opportunity to interact with them and assess their skills and abilities.
Job fairs can also help in building the employer brand, providing an opportunity to showcase the company’s culture and values.
Reasons for the Choice:
The sources of recruitment mentioned above have several advantages that make them suitable for the selection of fresh management graduates for an FMCG company. Some of the reasons for the choice of these sources are:
Availability of Fresh Talent: MMPM 002 Solved Free Assignment 2023
Management institutes and business schools produce fresh graduates with the latest knowledge and skills, making them a valuable resource for FMCG companies.
Recruiting fresh management graduates ensures that the company has access to the latest talent in the field.
Cost-Effective:
Recruiting fresh management graduates can be cost-effective as they are likely to be willing to work for lower salaries compared to experienced professionals.
This makes it easier for FMCG companies to recruit suitable candidates within their budget.
Cultural Fit:
Recruiting fresh management graduates through employee referrals, internships, and job fairs can ensure that the candidates have a cultural fit with the organization.
This is important for FMCG companies, as it ensures that the candidates are likely to be motivated and engaged, leading to better performance and productivity.
Employer Branding: MMPM 002 Solved Free Assignment 2023
Recruiting fresh management graduates through job portals, social media, and job fairs can help in building the employer brand
MMPM 002 Assignment Question Pdf
(b) What is direct and indirect compensation with reference to salesman? Discuss with an example.
Ans. Compensation is a critical aspect of sales management, as it plays a vital role in motivating and retaining salespeople. Compensation can be broadly classified into two categories: direct compensation and indirect compensation.
Direct Compensation:
Direct compensation refers to the monetary rewards that salespeople receive for their work. This includes base salary, commission, and bonuses.
Base salary is the fixed amount that salespeople receive, while commission and bonuses are variable and depend on their performance.
For example, a salesperson in a pharmaceutical company may receive a base salary of $50,000 per year, along with a commission of 2% on the sales that they generate.
If the salesperson generates $1 million in sales, they would receive an additional $20,000 in commission, making their total compensation for the year $70,000.
Direct compensation is essential for salespeople, as it provides them with a sense of security and helps in attracting and retaining the best talent.
Salespeople are motivated by the opportunity to earn more, and direct compensation provides them with the incentive to perform better and exceed their targets. MMPM 002 Solved Free Assignment 2023
Indirect Compensation:
Indirect compensation refers to the non-monetary rewards that salespeople receive for their work.
This includes benefits such as health insurance, retirement plans, and paid time off. Indirect compensation can also include intangible rewards such as recognition and praise.
For example, a salesperson in an automobile company may receive health insurance, a 401(k) retirement plan, and two weeks of paid vacation.
The company may also recognize the salesperson’s achievements by giving them a certificate of appreciation or a gift card.
Indirect compensation is important for salespeople, as it helps in improving their quality of life and job satisfaction.
Indirect compensation can also help in attracting and retaining the best talent, as salespeople are looking for employers who value their well-being and provide them with a positive work environment. MMPM 002 Solved Free Assignment 2023
Difference between Direct and Indirect Compensation:
The main difference between direct and indirect compensation is that direct compensation is monetary in nature, while indirect compensation is non-monetary.
Direct compensation is provided to salespeople in the form of salary, commission, and bonuses, while indirect compensation includes benefits such as health insurance, retirement plans, and paid time off.
Direct compensation is performance-based, as it depends on the salesperson’s ability to generate sales and meet their targets.
Indirect compensation, on the other hand, is provided to all employees regardless of their performance, and is aimed at improving their quality of life and job satisfaction.
Example: MMPM 002 Solved Free Assignment 2023
Let us consider an example to illustrate the difference between direct and indirect compensation. A salesperson in a retail company may receive a base salary of $30,000 per year, along with a commission of 5% on the sales that they generate.
If the salesperson generates $500,000 in sales, they would receive an additional $25,000 in commission, making their total compensation for the year $55,000.
In addition to their direct compensation, the company may also provide the salesperson with health insurance, a 401(k) retirement plan, and three weeks of paid vacation. MMPM 002 Solved Free Assignment 2023
The company may also recognize the salesperson’s achievements by giving them a certificate of appreciation or a gift card.
In this example, the salesperson’s direct compensation is their base salary and commission, which is directly tied to their performance.
The salesperson’s indirect compensation, on the other hand, includes benefits such as health insurance, retirement plans, and paid time off, which are aimed at improving their quality of life and job satisfaction.
Q 4. (a) What are the objectives of sales territories? Discuss the criteria in establishing sales territories.
Ans. Sales territories are geographic areas that sales representatives are responsible for covering and selling products or services within.
The establishment of sales territories is an important aspect of sales management, as it helps in maximizing sales efficiency, reducing costs, and improving customer service. MMPM 002 Solved Free Assignment 2023
Objectives of Sales Territories:
Increase Sales: The primary objective of sales territories is to increase sales. Sales territories help in identifying the potential sales opportunities in a specific geographic area and allocate sales resources accordingly.
By focusing on specific territories, sales representatives can build relationships with customers, increase customer loyalty, and ultimately increase sales.
Optimize Sales Efficiency: Sales territories help in optimizing sales efficiency by ensuring that sales representatives are covering the right geographic areas, prioritizing sales opportunities, and minimizing travel time and costs.
By establishing sales territories, sales managers can ensure that sales representatives are spending their time and resources on the most valuable sales opportunities. MMPM 002 Solved Free Assignment 2023
Improve Customer Service: Sales territories also help in improving customer service by ensuring that sales representatives are covering a specific geographic area and building relationships with customers.
By having a dedicated sales representative, customers can receive personalized attention and support, leading to better customer satisfaction.
Enhance Accountability: Sales territories also help in enhancing accountability by assigning specific sales goals to each territory and holding sales representatives accountable for achieving those goals.
By establishing sales territories, sales managers can monitor sales performance by territory and provide feedback and support as needed.
Criteria for Establishing Sales Territories:
Geographic Area: The first criterion for establishing sales territories is the geographic area. MMPM 002 Solved Free Assignment 2023
The size and shape of the territory should be based on factors such as population density, customer density, and geographic barriers such as mountains, rivers, and highways.
Customer Needs: The second criterion for establishing sales territories is customer needs. Sales territories should be established based on the needs of the customers in that area.
This could include factors such as customer demographics, customer preferences, and customer buying behavior.
Sales Potential: The third criterion for establishing sales territories is sales potential. Sales territories should be established based on the potential for sales in that area.
This could include factors such as market size, market share, and potential for growth. MMPM 002 Solved Free Assignment 2023
Competition: The fourth criterion for establishing sales territories is competition. Sales territories should be established based on the level of competition in that area.
This could include factors such as the number of competitors, their market share, and their sales strategy.
Sales Reps’ Skills: The fifth criterion for establishing sales territories is the sales representatives’ skills. Sales territories should be established based on the sales representatives’ skills and experience.
This could include factors such as their product knowledge, sales experience, and communication skills.
Sales Goals: The sixth criterion for establishing sales territories is the sales goals. Sales territories should be established based on the sales goals for the company. This could include factors such as sales targets, revenue targets, and profit targets.
Logistics: The final criterion for establishing sales territories is logistics. Sales territories should be established based on the logistics of the company.
This could include factors such as transportation costs, inventory management, and distribution channels. MMPM 002 Solved Free Assignment 2023
(b) Explain sales management audit as a strategic dimension of sales control.
Ans. Sales management audit is a process of evaluating and reviewing the sales management functions of an organization.
It is a systematic and objective evaluation of the sales management process, policies, procedures, and systems, to identify strengths and weaknesses and to provide recommendations for improvement.
Sales management audit is an important tool for organizations to evaluate and control their sales activities, and it plays a crucial role in the strategic management of an organization.
Sales Control: MMPM 002 Solved Free Assignment 2023
Sales control is the process of monitoring and evaluating the sales activities of an organization, to ensure that they are in line with the objectives of the organization.
It is an important aspect of sales management, as it helps in improving sales performance, reducing costs, and increasing profitability.
Sales control involves the use of various techniques and tools, such as sales reports, sales analysis, sales forecasting, and sales management audit, to monitor and evaluate sales activities.
Sales Management Audit:
Sales management audit is a comprehensive and systematic evaluation of the sales management functions of an organization.
It involves the use of various techniques and tools, such as interviews, surveys, and analysis of data, to evaluate the sales management process, policies, procedures, and systems. MMPM 002 Solved Free Assignment 2023
A sales management audit is an important tool for organizations to evaluate their sales activities, to identify strengths and weaknesses, and to provide recommendations for improvement.
Strategic Dimension of Sales Control:
Sales management audit is a strategic dimension of sales control, as it plays a crucial role in the strategic management of an organization.
Sales management audit helps in evaluating the effectiveness of the sales management functions of an organization, to identify areas for improvement and to provide recommendations for improvement.
Sales management audit provides valuable insights into the sales activities of an organization, which can be used to develop and implement effective sales strategies.
The strategic dimension of sales control can be described in the following ways:
Goal Alignment: MMPM 002 Solved Free Assignment 2023
Sales management audit helps in aligning the sales activities of an organization with the overall goals and objectives of the organization.
It helps in evaluating whether the sales activities are aligned with the goals and objectives of the organization, and provides recommendations for alignment, if necessary.
This ensures that the sales activities of an organization are contributing to the overall success of the organization.
Performance Evaluation:
Sales management audit helps in evaluating the performance of the sales function of an organization.
It provides valuable insights into the strengths and weaknesses of the sales function, which can be used to develop and implement effective sales strategies.
Sales management audit helps in identifying the areas of improvement and provides recommendations for improvement, which can lead to improved sales performance.
Resource Allocation: MMPM 002 Solved Free Assignment 2023
Sales management audit helps in allocating resources effectively. It helps in evaluating the effectiveness of the sales resources, such as the sales force, and provides recommendations for resource allocation.
This ensures that the sales resources are allocated effectively, to maximize the sales performance of the organization.
Competitive Advantage:
Sales management audit helps in developing a competitive advantage. It provides valuable insights into the sales activities of competitors and helps in identifying areas of improvement.
This can lead to the development of effective sales strategies, which can provide a competitive advantage for the organization.
MMPH 002 Solved Free Assignment 2023
MMPH 007 Solved Free Assignment 2023