Q1. Explain various theories of personal selling.

A1 there are mainly 4 types of various theories of personal selling:

1) AIDAS theory:
This theory, popularly known as AIDAS theory (attention, interest, desire, action and satisfaction), is based on
experimental knowledge.
1. Attention getting: The objective is to put the prospect into the right state of mind to continue the sales
talk. A good beginning of conversation may set the stage for a full sales presentation.
2. Interest Creating: The second step is to intensify the prospect's attention so that it involves into strong
interest. To achieve this, the salesperson has to be enthusiastic about the product.
3. Desire Stimulating: After the attention getting and creating interest, the prospect must be kindled to
develop a strong desire for the product.
4. Action Inducing: If the presentation has been perfect, the prospect is ready to act, that is, to buy. Very
often there may be some hesitation on the part of the prospect at this stage.
5. Satisfaction: The customer should be left with the impression that the salesperson merely helped in
deciding. After the sale has been made, the salesperson should ensure that the customer is satisfied with
the product.
2) Right set of Circumstances Theory:
It is also called the "situation-response" theory. It has its psychological origin in experiments with animals. The
major emphasis of the theory is that a particular circumstance prevailing in a given selling situation will cause
the prospect to respond in a predictable way.
3) Buying Formula Theory:
The theory is based on the fact that there is a need or a problem for which a solution must be found which
would lead to purchase decision.
In purchasing, the "solution" involves two parts:
1. Product or service or both,
2. The brand name, manufacturer or the salesperson of the particular brand name.
4) Behaviour Equation theory:
This theory is a sophisticated version of the "right set of circumstances" and this theory was proposed by
Howard, using a stimulus response model and using large number of findings from behavioral research.
1. Drive is strong internal stimuli that impel buyers' response. Innate drives stem from psychological needs
and learned drives such as striving for status or social approval.
2. Cues are weak stimuli that determine when the buyer will respond. Triggering cues activate the decision
process whereas new triggering cues influence the decision process.
3. Response is what the buyer does.
4. A reinforcement is any event that strengthens the buyers' tendency to make a particular response.

Q2. What is Sales management? Explain its nature and importance.

A2 "Sales management means the planning, direction and control of personal selling, including recruiting, selecting,
equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personal salesforce."
 Importance of sales management:
1. Sales management is the only function or department in an organization that generates revenue.
2. The financial results of an organization depend on the performance of the sales management.
3. Net profit or the bottom line of a company is considered as good, if the sales revenue or the top line is good.
 Nature of sales management:
1) Integration with marketing management: As sales management is a part of marketing management, sales
planning should be integrated with marketing planning. A company's marketing team typically consist of two
basic groups: (a) field selling (or personal selling) team, and (b) head-quarter marketing team.
2) Relationship Selling: Relationship marketing is basically the creation of customer loyalty. Relationship selling
is the tactical arm of relationship marketing. For instance, the company’s best salesperson is assigned to sell A
class services to major customers.
3) Varying Sales Responsibilities/sales positions: Selling includes a variety of sales jobs, which are different
from one another. No two sales positions are similar. The term sales representative will be used frequently, and
has the same meaning a salesman or salesperson.
Q3. Various sales related marketing policies:

1) Pricing policies:
The salesperson should be able to discuss confidently with the existing and prospective customers about the
prices, discounts, and credit policies. It is necessary for the salesperson to know the company's credit policies
for existing and prospective customers to ensure timely collection of payments against the bills raised on them.
2) Distribution policies:
The salesperson must understand the channel of distribution used by his company to move its products and
services to the final consumer. An electrical equipment manufacturer has a number of marketing channels, such
as company salesforce for major customers, dealers from a medium and small scale manufactures.
3) Promotional Policies:
Company's promotional efforts consist of five major components: (a) advertising,
(b) Sales promotion, (c) public relations and publicity, (d) personal selling, and (e) direct marketing. The
marketing head of the company should ensure that field salespeople are informed about the company's
promotional efforts.
4) Product Policies:
The product polices of a company that are relevant to salespeople are product mix, new prod ideas, and product
information, quality and service policy.
a) Product mix: Product mix (also called product assortment) consists of various products (or prod lines)
referred as product-mix width, and number of product items (or variants) in each prod line (also called as length
of each product-line).
b) New product ideas The company's senior executives decide which new products are to be added to the
existing product mix, after an analysis of new product ideas received from salespeople and other sources.
c) Product information, quality and service policy: Information about the product such as physical size,
characteristics, performance data, specific features, advantages, and benefits are important for salespeople.

Q4. Explain the Various components of Distribution Channels.

1. Producers/Manufacturers: Producers or manufacturers are the originators of the products. They create,
manufacture, and supply the goods to be distributed through the channel. Also, producers may have their
own distribution channels or work with intermediaries.
2. Intermediaries: Intermediaries, also known as middlemen, play a crucial role in the distribution
process. They facilitate the movement of products from the producer to the end consumer. Wholesalers,
retailers, distributors, agents, brokers, or even online marketplaces are some of the examples of
intermediaries.
3. Customers: Customers are the ultimate recipients of the products or services offered by the distribution
channel. They can be individuals, businesses, or organizations who purchase and consume or utilize the
products.
4. Channel partners: Channel partners are entities or organizations that collaborate with the producer to
distribute and sell products.
5. Logistics: Logistics involves activities such as transportation, warehousing, inventory management,
order fulfillment, and packaging.
6. Marketing and promotion: Marketing and promotional activities are essential components of
distribution channels. They aim to create awareness, generate demand, and promote products to the
target customers.
7. Information and communication: Information and communication flow within the distribution channel
is crucial for its effective functioning. It involves the exchange of data, feedback, and market
intelligence between the producer, intermediaries, and customers.
8. Payment: Financial transactions and payment occur between the different entities within the distribution
channel. Producers receive payments from intermediaries or customers, and intermediaries handle
financial transactions related to the purchase and distribution of products.
Q5. Explain Various levels of Sales Management:
A5.

Top-level (Strategic) Sales Managers:

 The highest level in sales management is often called vice president (sales), or general manager (sales),
or national sales manager.
 They are responsible for long-term marketing or sales planning, including scanning external
environment, setting long-term and short-term objectives and goals.
Middle-level (Tactical) Sales Managers:
 These positions mostly carry the title of regional, zonal or divisional sales manager.
 Their major responsibilities are to manage several branches or districts reporting to them and also to
implement the strategies and action plans approved by the top-management.
 In some companies, these positions are eliminated in order to make the organizations flatter. Such
organizations use cross-functional team selling for high sales potential customers.
First-line (Operational) Sales Managers:
 This is the first level of sales management with titles such as branch sales managers, area sales
managers, or district sales managers.
 They are directly responsible to achieve sales goals and objectives by providing day-to-day supervision
to salespeople.
 They implement the procedures and rules decided by higher levels of management.
Q6. What is sales Forecasting? Discuss qualitative and Quantitative techniques used for sales
forecasting.
A6. Sales forecasting is the process of estimating future sales for a business or product based on historical
data, market analysis, and other relevant factors. It plays a crucial role in business planning, helping
companies allocate resources, set goals, and make informed decisions.

 Qualitative Techniques:
1. Market Research: Gathering information about market trends, customer preferences, and
competitor activities through surveys, interviews, and focus groups.
2. Expert Opinions: Consulting industry experts, sales professionals, or specialists within the
organization to obtain their insights and predictions.
3. Delphi Method: Involves a panel of experts providing opinions anonymously, with a facilitator
summarizing the responses and then redistributing them for further feedback.
4. Sales Force Composite: Involving the sales team in the forecasting process by collecting individual
sales forecasts from each salesperson.

 Quantitative Techniques:
1. Time Series Analysis: This method assumes that future sales will follow historical patterns, making
it useful for products with stable demand.
2. Regression Analysis: Establishing a statistical relationship between sales and various independent
variables such as advertising expenses, economic indicators, or pricing.
3. Moving Averages: Calculating averages of past sales data over a specific time period to smooth out
fluctuations and highlight underlying trends.
4. Exponential Smoothing: Assigning different weights to different periods, giving more significance
to recent data.

Q7. The requirement of a good channel information system.

1. Real-time Data Accessibility: The system should provide real-time access to relevant data,
allowing stakeholders to make informed decisions promptly.
2. Integration Capabilities: Seamless integration with other enterprise systems, such as Customer
Relationship Management (CRM) and Enterprise Resource Planning (ERP), ensures a cohesive flow
of information across the organization.
3. Accurate Sales and Inventory Tracking: The CIS must have the capability to accurately track
sales transactions and inventory levels at various stages of the supply chain.
4. Order Processing and Fulfillment: Efficient order processing functionalities that allow for quick
and accurate order fulfillment are essential.
5. Channel Performance Analytics: Key performance indicators (KPIs) such as sales growth, market
share, and profitability should be easily accessible for analysis and decision-making.
6. Security and Data Confidentiality: This is particularly important when dealing with sensitive
information related to pricing, promotions, and customer data.
7. User-Friendly Interface: The system should have an intuitive and user-friendly interface to
facilitate easy navigation and adoption by channel partners.
8. Scalability: The CIS should be scalable to accommodate the growth of the business and changes in
the channel network. Whether it's an increase in the number of channel partners or expansion into
new markets, the system should be able to adapt accordingly.
9. Communication Tools: Effective communication tools, such as messaging or notification features,
enhance collaboration among channel partners and the company.
Q8. What is a sales territory? Factors affecting allocation of sales territory.
A8. A sales territory is a defined geographical area or group of customers assigned to a salesperson or a
sales team. The purpose of delineating sales territories is to effectively manage and organize the sales
efforts of a company, ensuring that sales resources are allocated strategically to maximize coverage and
revenue generation within specific regions.

 Factors Affecting Allocation of Sales Territory:

1. Geographical Considerations: Sales territories are often designed to minimize travel time and costs,
making it efficient for sales representatives to reach and serve their assigned customers.
2. Customer Demographics: The characteristics of customers, such as size, industry, buying behavior,
and needs, influence territory allocation.
3. Market Potential: Territories are often allocated based on the estimated market potential, considering
factors such as population density, economic activity, and market trends.
4. Salesperson Skills and Expertise: The skills, knowledge, and expertise of sales personnel are
considered when allocating territories.
5. Product Line: Some territories may be designated for specific product lines, ensuring that sales
representatives have in-depth knowledge of those offerings.
6. Competitive Landscape: Companies aim to ensure a balanced distribution of sales territories while
considering the competitive landscape to optimize market share.
7. Sales Potential and Historical Performance: Territories with higher sales potential or areas where a
salesperson has a track record of success may be prioritized.
8. Economic Factors: Economic factors such as income levels, industry growth, and overall economic
stability in a region can influence territory allocation decisions.
9. Strategic Objectives: The overall strategic goals and objectives of the company play a role in territory
allocation.

Q9. Role of Wholesalers.

1. Bulk Breaking: Wholesalers purchase goods in large quantities from manufacturers and then break
down these bulk shipments into smaller, more manageable quantities for retailers.
2. Warehousing and Storage: This role helps manufacturers by providing a centralized location for
storing goods, reducing the need for manufacturers to manage multiple storage facilities.
3. Risk Bearing: This includes the risk of holding inventory, potential changes in market demand, and
fluctuations in pricing. By absorbing these risks, wholesalers help manufacturers and retailers focus
on their core functions.
4. Transportation: This logistics role ensures the efficient movement of products through the
distribution channel.
5. Financing: Wholesalers may provide financing options to retailers, allowing them to buy products
on credit terms. This helps retailers manage their cash flow and inventory levels more effectively.
6. Market Information: They act as a valuable source of market intelligence for both manufacturers
and retailers, helping them make informed decisions.
7. Assortment Planning: Wholesalers often offer a wide variety of products within a specific
category. They work with manufacturers to create assortments that cater to the diverse needs of
retailers.
8. Promotion and Marketing Support: This can include providing promotional materials, organizing
joint marketing campaigns, or offering support in other promotional activities to enhance product
visibility.
9. Order Processing: Wholesalers streamline the ordering process for retailers. They accept bulk
orders, break them down, and distribute the products to retailers as needed.
Q10. Channel Design Process:

1. Define Objectives:
This include goals such as maximizing market coverage, minimizing costs, enhancing customer service, or
achieving a specific market share.
2. Understand Customer Needs:
Analyze the needs and preferences of the target customers. Consider factors such as buying behavior,
preferences for delivery options, and the level of service expected.
3. Evaluate Market Characteristics:
Assess the characteristics of the market, including its size, geographic dispersion, and competitive
landscape.
4. Select Channel Intermediaries:
Identify and select appropriate channel intermediaries based on their ability to add value to the distribution
process.
5. Determine Channel Intensity:
Decide on the level of distribution channel intensity. This involves choosing between exclusive
distribution, selective distribution or intensive distribution.
6. Establish Channel Relationships:
This includes negotiating agreements, setting expectations, and establishing clear communication channels.
Collaborative relationships contribute to the overall success of the distribution channel.
7. Define Channel Tasks:
This involves outlining the roles of manufacturers, wholesalers, retailers, and other intermediaries. Clarity
in tasks helps in avoiding conflicts and ensures smooth channel operations.
8. Design Logistics and Supply Chain:
Develop a logistics and supply chain strategy that supports the distribution channel. This includes decisions
on inventory management, transportation, warehousing, and order fulfillment to ensure a seamless flow of
products through the channel.
9. Implement Technology and Systems:
Incorporate relevant technology and information systems to support channel operations. This include order
processing systems, inventory management software, and other tools that enhance efficiency and accuracy.
10. Monitor and Evaluate Performance:
Establish key performance indicators (KPIs) to measure the success of the distribution channel. Regularly
monitor and evaluate performance against these metrics, making adjustments as needed to optimize channel
effectiveness.
11. Adapt to Changes:
Be prepared to adapt the channel design in response to changes in market conditions, consumer behavior,
or the competitive landscape.