Sales management JUNE 2025

Description

Sales Management

Jun 2025 Examination

 

 

Q1. Rajiv, the Sales Director at Prime Electronics, is preparing the annual sales budget for the upcoming financial year. He must allocate funds across different sales activities, including promotions, sales team incentives & distribution costs, while ensuring profitability. What key factors should Rajiv consider while preparing the sales budget & how can he ensure it aligns with the company’s revenue goals? (10 Marks)

Ans 1.

Introduction

Sales budgeting is a critical process for any business, particularly in a competitive sector like electronics. For Rajiv, the Sales Director at Prime Electronics, preparing an annual sales budget is not just about allocating funds—it involves strategic forecasting, aligning with broader business goals, and ensuring effective use of financial resources. The budget must account for various sales activities, including promotions, distribution costs, and incentives, while

 

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Q2. Amit is a sales executive at an insurance company, responsible for selling customized insurance plans to clients. He notices that many potential customers hesitate to purchase due to confusion about policy benefits. How can Amit effectively use personal selling to address customer concerns & close more deals? (10 Marks)

Ans 2.

Introduction

Personal selling is a powerful tool in the insurance sector where customer trust, understanding of policies, and emotional assurance play vital roles in the decision-making process. Amit, a sales executive in an insurance company, faces the common challenge of converting interested prospects into actual clients. A key reason for hesitation among potential buyers is confusion about policy benefits, terms, and coverage limits. In such a scenario, personal selling can help bridge the knowledge gap, resolve doubts, and create a strong rapport between the client and

 

Q3(A). Vikram is the Regional Sales Manager for a popular FMCG brand specializing in snacks & beverages. His team covers a large, diverse area with both urban & rural markets. Vikram has noticed that some territories are underperforming, while others have overlapping routes that lead to inefficient coverage & missed opportunities. To improve sales, he needs to redesign the sales territories & create an effective route plan. Vikram considers several criteria, such as market potential, customer density & travel time, to ensure balanced workloads for his sales team. Additionally, he is exploring different methods for designing these territories to ensure full coverage & minimal overlap. Finally, he wants a route plan that allows each salesperson to cover their assigned territory efficiently without redundancy.

What criteria should Vikram use when designing his sales territories to ensure balanced coverage and maximize efficiency? (5 Marks)

Ans 3a.

Introduction

Effective sales territory design is vital for maximizing the performance of a field sales team, especially in the FMCG industry where frequency of coverage and market responsiveness are key. For Vikram, the Regional Sales Manager of a snacks and beverages brand, it is crucial to reallocate his underperforming and overlapping territories to create a more balanced and efficient system. A properly designed sales territory not only enhances team productivity but also ensures complete market coverage. Identifying the right criteria will help

 

Q3(B). Vikram is the Regional Sales Manager for a popular FMCG brand specializing in snacks & beverages. His team covers a large, diverse area with both urban & rural markets. Vikram has noticed that some territories are underperforming, while others have overlapping routes that lead to inefficient coverage & missed opportunities. To improve sales, he needs to redesign the sales territories & create an effective route   plan. Vikram considers several criteria, such as market potential, customer density & travel time, to ensure balanced workloads for his sales team. Additionally, he is exploring different methods for designing these territories to ensure full coverage & minimal overlap. Finally, he wants a route plan that allows each salesperson to cover their assigned territory efficiently without redundancy.

Suggest an effective method Vikram could use to design these territories & plan routes that improve coverage & minimize travel time. (5 Marks)

Ans 3b.

Introduction

In the fast-moving consumer goods (FMCG) industry, time and territory management are essential to competitive success. For Vikram, redesigning sales territories and establishing efficient route plans is a critical step to overcoming underperformance and overlap issues. To serve both rural and urban areas effectively, a methodical approach to sales territory design and route