INDIAN BUSINESS MANAGEMENT SCHOOL
SALES & DISTRIBUTION MANAGEMENT MARKS : 100
All the questions are compulsory. First Question shall be 40 Marks and other question shall be of 20marks each 1) “ Sir, I think, we need to have an incentive scheme for our field salespeople, so as to motivate them to put more than normal effort. This will help us to increase our market share and also make it possible for us to become number one player from number three position that we are currently at. We have declared in our last annual marketing conference that we would become the leader in the immediately. Do you agree, Sir,?” asked Krishna Kumar, the newly appointed head of sales and marketing, to the executive director of STL Ltd, B.G. Gururaja Rao. “I agree to the extent that we have to work on our long-term goal. That ...view middle of the document...
If we deny an incentive payments to other employees, they will not only get de-motivated, but may even go on a strike. Besides, the profit contribution per unit of our product sold is very low and any increase in cost due to incentive payment without substantial increase in sales volume will wipe out the thin profitability of our company. We have to consider the various factors we take a decision on the incentive scheme for sales people. I hope you understand this,” responded Gururaja Rao. “Yes, Sir, I suggest we discuss this subject later in our monthly budget review meeting, when other managers and also our Chairman and managing director will be present. In the meantime, I will also apply my mind and prepare a specific proposal, which I will discuss with you before the budget review meeting,” Krishna Kumar said and thereafter left for his office. Questions a) Do you think this company needs an incentive scheme for motivating their salespeople? b) Suggest a suitable compensation plan for the salespeople. Make assumptions, if needed. 2) What are some of the promotions which a retailer can organize to: i) Increase footfalls to his store? ii) Ensure stickiness of his customers? iii) Increase the size of the average shopping basket?
3) What are the expectations of a company from its distributors and how do the distributors discharge these responsibilities? How does the company ensure that the distributors deliver the expectations? 4) (a) List down some of the methods used by companies to motivate their channel partners so that channel conflicts can be avoided? (b) Explain the four broad steps in channel management?. (c)What do you understand by logistics management? Define its scope and objectives and discuss the key decision areas.?