(a) Name of Student: - Abhishek Kumar

(b) Roll no: - 2018230

(c) Reg. No: - 23-1242
(d) Specialization: - Marketing Management
(e) Batch: - 2020-22
(f) Institute: - Balaji Institute of International Business
(g) Semester: - 1
(h) Subject Name: - Sales and Distribution Management
(i) Assignment No: - 2
(j) Submission Date: - 11-Jan-2020
(k) Total no. of pages written: - 06
Q1. What is Sales Planning and what are the steps involved in Sales Planning?
Ans - Sales Preparation is a core feature of the sales management process. Sales planning is an
important approach that includes sales forecasting, demand management, profit-based sales goals
setting, and a sales plan's written implementation steps.
Sales Preparation is the method of arranging events that are compulsory for business objectives to be
accomplished. There is a strategy document in a sales plan that figures out the company goals and
several tools. These can be used for such tasks that you perform to accomplish the desired objective.
Here are seven steps you can take to create an effective sales plan:
1. Define your objective: Your first step in planning a sales call or any other business endeavour
should always be to clearly define your aim. Is your aim to develop yourself as a trusted consultant?
Close the particular deal? If you describe your main target, you will plan later steps to achieve it.
2. Evaluate the current situation: An accurate evaluation of the situation is next on the list, and it
will relate to the objective you set in the first step. An assessment of the current situation will consist
of identifying the present relationship if your intention were to extend your relationship with a
customer.
3. List barriers to success: To achieve your goals, this move may be one of the most critical: build a
comprehensive account of the barriers to your progress. It can be extremely inspirational to realize
exactly what you're up against, sparking new ideas about how you can overcome obstacles.
4. Assess your strengths and assets: Take an honest look at your resources and think about how to
apply them to accomplish your goal. Things such as personal relationships, distribution kits, strategic
advantages such as new technologies and much more can involve strengths and properties.
5. Create your sales call strategy: Create your sales strategy by detailing how you can accomplish
your target, using the data you have collected in steps one through four. Depending on the case, the
selling of a particular product and the steps you would use to convince your prospect may be part of
your strategy.
6. Identify your needs: Now is the time to outline what you will need to get the job done once you
have your specific plan in place. Things like a sales deck or demo software can be part of your needs.
A list of accounts may also contain specifications. The main thing is that needs are defined in advance.
7. Outline an action plan: The action plan is a part of the sales call strategy outlined in phase five: It
is a to-do list of tactical measures that you will need to achieve the strategy. The action plan might
include things before you make the deal, such as finalizing pricing with your company.
Q2. Why establishing Sales Territories is required? What are the steps in determining Sales
Territories for a firm?
Ans - A sales region consists of a group of customers or a geographical area allocated to a specific
salesperson. The region assigned to the salesperson includes the organization's existing and future
customers.
The sales manager might be in a position to contest between sales activities and sales opportunities
after the allocation of sales territories. Monitoring the total market will be very difficult for the sales
manager as it is too big and unmanageable for one person. It is also divided into regions to administer
and regulate the sales force effectively and efficiently.
Following are some reasons for establishing sales territories −
1) To obtain thorough coverage of the market: The duties are delegated to the salesman according
to the division of the sales region. Instead of the salesperson selling the commodity according to his
ambition, this assists in consumer coverage. It allows the sales manager to monitor and take updates
from various sales managers accordingly.
2) To establish the salesperson’s job and responsibilities: Establishing jobs and obligations for
salespersons is very critical. Sales regions assist in doing so because the salesperson is given the
mission and he is responsible for it and responsible for it. When the mission is assigned, regular checks
are conducted to track the calls, helping to decide each salesperson's role. If the sales manager finds
that the workload for a single employee is greater, the job is separated and reassigned equally. This
generates enthusiasm and interest in working.
3) To evaluate sales performance: In a company, to find out the difference, i.e., the rise or decrease
in sales volumes, the sales territory is contrasted from the previous years to the present. It helps to
work accordingly on the disparity. This is achieved with the aid of the sales area as the tasks are
correctly distributed and it becomes easy to collect data and analyse.
4) To improve customer relations: As we know, salespeople have to spend much of their time selling
the goods on the road, but if the sales territory is well planned, the salesperson will spend more time
with customers (present and potential). This helps to develop relationships and to better understand the
specifications. When a customer receives frequent calls, a company's profits will increase and the
salesman needs to visit the customers based on calls. The salesman and the client have time to
understand each other and overcome their demand and supply problems. This also assists in growing
the company's brand image.
5) To reduce sales expenses: The organization gets a proper image of the regions that can be allocated
to the salespeople until the geographical areas are determined. He/she needs to cover the region so that
by sending two salespeople in the same market, there is no duplication of work. The company's selling
costs are reduced and profits increase. For a few flights and overnight trips, the salesperson often has
an advantage.
6) To improve control of the sales force: On the basis of calls made to clients, the routes taken and
the schedules, the success of a salesperson can be measured. In this case, if the findings are not
positive, the salesperson will not refuse. On the same routes, schedule, and everything is
predetermined, the salesperson has to work. This results in the sales force being better controlled.
7) To coordinate selling with other marketing functions: If the sales area is well built, it also allows
the management to perform other marketing functions. Compared to the whole industry, it is easy to
conduct an analysis on the baseline territory. Research performed on territorial marketing by
management may be used to assess revenue quotas, costs and budgets. If the salesperson assists in
advertisement, distribution and promotion when the job is assigned on the basis of region rather than
the market as a whole, the results can be satisfactory.
Q3. Sales budget is the blueprint for sales. “Elucidate.
Ans - The sales budget relates to the sales revenue forecast and the overhead of sales for a given time.
A more reliable estimate of revenue means greater resource use, higher profitability and less waste.
For the planning of a sales budget, sales forecasting, which is nothing but an estimate of demand for
products or services in the market, is important. Salespeople and the marketing team play a vital role in
predicting the company's sales of goods or services.
Let us use an example to explain this concept: A clothing merchant estimates his annual sales budget.
He observes that he sells the highest during the holiday season, marriage season and the first week of
every month, based on the past sales pattern. He schedules his inventory, salespeople, finances, and
other tools to earn full profit and minimize the dead stock.
The importance of sales budget are as follows:
• Determine Sales Goals: The sales budget sets a goal that they have to meet for the sales team.
The estimated sales volume is calculated for a specific date, and the sales department's efforts are
focused accordingly.
• Cash Flow Management: Via sales budgeting, the business will predict its potential cash inflow
and outflow. This helps to define the potential liquid cash and to plan for adverse market
conditions.
• Estimate Overhead Costs: It also calculates the different operating and distribution costs that
the company has to bear, other than the cost of production. Determining the potential profit
margin, therefore.
• Develop Core Strategies: A sales budget provides the administrators with a framework for
action. Managers frame their plans and use the tools to meet the revenue targets they want.
• Streamlines Business Process: All company operations, i.e., the manufacture of products or
services, the funding of activities, the participation of human resources and marketing activities,
are based on the revenue estimate prepared.
Q4. Salesmanship is persuasion, communication and service’. Explain.
Ans - The oldest and most common method of selling products is salesmanship or personal sales. It
requires direct and personal contact with the prospective purchaser by the seller or his representative. It
means persuasive face-to-face contact between the buyer and the seller.
It includes the buyer and the seller in direct and personal contact. It is contact face to face and oral. It
is the art of persuasion that requires the transformation of human needs into requirements. It is the
science of winning the trust of the buyer in both the seller and his product. As it can be practiced and
not merely taught, it is both art and science. The main aim is not to encourage or trap individuals to
purchase items that they do not need or cannot afford. Rather, a mutually beneficial and lasting
relationship between the buyer and the seller should be formed. Communication between the buyer
and the seller is involved. As different people respond differently, it takes a lot of patient and versatile
approach.
Salesmanship has the underlying goal of creating demand for a product or service. Personally, the
seller talks to the customers and describes the importance of the commodity. He attempts to persuade
the customers that the product can be bought by the client. Handling objections: consumers express
their concerns about the nature of the product and their objections. The salesman's goal is to listen
politely to the buyers' concerns and to address them in order to keep current customers while
generating new ones. Exploring hidden desires: A salesman studies customers' hidden desires. He
helps them consider their desires and take steps to meet them. In order to boost sales, a salesman
shows the product and describes its uses. Educating clients. A salesman tells and educates consumers
about and demonstrates their applications of new goods. In choosing the appropriate items, he directs
the customers. Building partnerships: For the good of both the customer and the seller, the salesman
establishes permanent relationships with clients.
Q5. Sales quota become the basis for planning production, work force size and financial
Management.” Comment.
Ans - The sales quota can be specified as the sales target that is allocated for a specific period to any
sales unit; an individual, area, distributor, etc. can be the sales unit here. The sales quota sets a target to
be reached over a fixed period of time, which increases efficiency.
In order to maximize market volume and raise the organization's net profit, commercial companies set
up sales quotas. To assess the efficacy of the sales unit, it can also be considered as a norm. Using
different factors such as demand opportunity, marketing process, past sales record, etc., the sales quota
is calculated with successful projection of market feelings.
Sales quota is imposed in an organization to fulfil various objectives required to increase the sales of
product and maximize profit.
Sales objectives help an organization in the following ways −
• They provide a standard to measure the performance.
• They help to control sales expenses for customer acquisition.
• They help define a target; this further facilitates motivation and enhanced performance.
• These help to identify and monitor the performance of salespersons.
These are some of the key revenue quota targets for a company. In addition, according to the
specifications, the sales quota can be divided into different categories. Depending on the disparity in
the forecasting and cost allocation process, management priorities, selling challenges and executive
decision-making process, the sales quota is divided into four separate groups.
The following are the different types of sales quota:
1) Sales and Volume Quota: The allocation of sales amounts for salesmen, geographical areas,
distribution outlets, etc. is the sales and volume quota. This quota may be applied on the basis of the
sales made or the revenue obtained by the respective units. It is also possible to use a combination of
both conditions in order to implement this quota. The number of sales and income earned can be
assigned to the respective unit (salesperson, region) and at least one of them must be satisfied.
2) Financial and Budget Quota: Financial and budget quota is used to determine and restrict
expenses on sales to attain desired net profit planned. It is implemented on various segment of sales
organization to control the expenses accordingly. The aim of these quota is restriction of expenses for
making sales so that profit can be increased.
3) Activity Quota: The successful output of the sales group is expected in a competitive market. It can
serve as a long-term advantage for the company. Organizations set up a sales force operation quota for
successful results. These can be accomplished by setting revenue goals to salespeople.
The following are the activities listed under sales quota −
• Number of accounts opened through the salesperson
• Number of sales calls made to potential customer
• Number of demonstrations made to show the product
• Number of maintenance activities performed
Activity quota is planned on the basis of these activities performed by the salesperson. By setting
quota for the activities, efficient performance and controlling can be managed.
4) Combination Quota: It depends on the type of product and the market situation, the difficulties
associated with product sales and the obstacles encountered during a product's sales. In order to
maximize revenue, companies have set up a quota with a mix of sales volume and operation quota.