Note : Question No. 1 is of short answer type and is compulsory for all the students.
It carries 5 Marks. (Word limits 50-100)
Q.1 Answer all the questions.
(I) What do you mean by pre-interview screening?
Ans. Managers and human resource professionals post job listings in newspapers, on job boards and with professional job placement businesses. The listing can attract multiple candidates for the position, and the manager must sort through these to find the right person for the job. The manager can use a pre-screening interview to eliminate unsuitable applicants before scheduling interviews in person. Hiring managers sort the resumes of interested applicants to develop a list of candidates to call for a pre-screening interview.
The pre-screening interview allows hiring managers to compare the skills and responses of several candidates to determine the individuals who deserve an in-person interview. The objective of the pre-screening interview is to narrow the candidate pool for additional screenings and interviews. Hiring managers should take notes for each pre-screening interview to provide information for sorting candidates.
(II) Enlist any four causes of channel conflict.
Ans. Causes of channel conflict are: –
- Goal incompatibility
- Position, Role and Domain Incongruency
- Communication Breakdown
- Different Perceptions of Reality
- Ideological Differences
(III) Differentiate between wholesaler and retailer.
Ans. Wholesalers generally buy a large quantity of products directly from distributors. High-volume purchase orders typically improve a wholesaler’s buying power. Many distributors provide discounts for a certain number of items purchased or the total amount spent on merchandise. Wholesalers acquire merchandise, such as telephones, computers, bicycles, clothing, televisions and furniture. The goods are frequently destined for retailers.
Retailers consist of small and large for-profit businesses that sell products directly to consumers. To realize a profit, retailers search for products that coincide with their business objectives and find suppliers with the most competitive pricing. Generally, a retailer can buy small quantities of an item from a distributor or a wholesaler. For instance, a retail merchant who wanted to purchase a dozen lamps could contact lighting distributors to inquire about pricing.
(IV) “A good salesman can be made.” Explain.
Ans. Being a salesman takes special skills that not every person possesses. There are personality and attitude traits that make it easy for some people to be successful in the sales business. Others have to work a little harder. That’s why it’s good to know exactly what is required of a good salesperson. One of the most important characteristics of a successful salesman is the ability to like people. A good salesman truly cares for people – want they want, what they need and what they need to know before they can make a purchase. A salesperson needs to be kind, compassionate and understanding. While a commission is obviously important, it’s more important to have satisfied customers that will return and tell their friends about you and your company. So we can say that salespersons can be made.
(V) Write short note on the basis which a sales manager can use to establish sales territories.
Ans. Basis which sales managers use to establish sales territories are: –
- Geographic Location: – One factor in determining territories is geographic location. A territory can be divided by states, counties,cities or even several territories within a city. The size of the territory depends on how often the salesperson has to physically visit the customer. a smaller size in order to make this possible.
- Sales Potential: – The number of potential customers within a particular area can determine the size of the territory. If you are marketing a product that is used by only one customer in a given city, your territory would need to be expanded to cover several cities.
- Workload: – The number of accounts, the average size of each sale, and the amount of time necessary to spend with the customer are factors considered when determining the workload of the sales force.
Note: Answer any two questions. Each question carries 5 marks (Word limits 500)
Q.2 Define a channel of distribution. What factors determine the choice of channel?
Ans. A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. This channel consists of: – producers, consumers or users and the various middlemen like wholesalers, selling agents and retailers (dealers) who intervene between the producers and consumers. Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities.
Factors determining choice of channel are: –
Product Consideration:- The type and the nature of products manufactured is one of the important elements in choosing the distribution channel. The major product related factors are:-
- Products of low unit value and of common use are generally sold through middlemen. Whereas, expensive consumer goods and industrial products are sold directly by the producer himself.
- Perishable products; products subjected to frequent changes in fashion or style as well as heavy and bulky products follow relatively shorter routes and are generally distributed directly to minimise costs.
- Industrial products requiring demonstration, installation and aftersale service are often sold directly to the consumers. While the consumer products of technical nature are generally sold through retailers.
- An entrepreneur producing a wide range of products may find it economical to set up his own retail outlets and sell directly to the consumers. On the other hand, firms producing a narrow range of products may their products distribute through wholesalers and retailers.
- A new product needs greater promotional efforts in the initial stages and hence few middlemen may be required.
Market Consideration:- Another important factor influencing the choice of distribution channel is the nature of the target market. Some of the important features in this respect are:-
- If the market for the product is meant for industrial users, the channel of distribution will not need any middlemen because they buy the product in large quantities. short one and may as they buy in a large quantity. While in the case of the goods meant for domestic consumers, middlemen may have to be involved.
- If the number of prospective customers is small or the market for the product is geographically located in a limited area, direct selling is more suitable. While in case of a large number of potential customers, use of middlemen becomes necessary.
- If the customers place order for the product in big lots, direct selling is preferred. But,if the product is sold in small quantities, middlemen are used to distribute such products.
Other Considerations:- There are several other factors that an entrepreneur must take into account while choosing a distribution channel. Some of these are as follows:-
- A new business firm may need to involve one or more middlemen in order to promote its product, while a well established firm with a good market standing may sell its product directly to the consumers.
- A small firm which cannot invest in setting up its own distribution network has to depend on middlemen for selling its product. On the other hand, a large firm can establish its own retail outlets.
- The distribution cost of each channel is also an important factor because it affects the price of the final product. Generally,a less expensive channel is preferred. But sometimes, a channel which is more convenient to the customers is preferred even if it is more expensive.
- If the demand for the product is high,more number of channels may be used to profitably distribute the product to maximum number of customers. But, if the demand is low only a few channels would be sufficient.
- The nature and the type of the middlemen required by the firm and its availability also affect the choice of the distribution channel. A company prefers middlemen who can maximise the volume of sales of their product and also offers other services like storage, promotion as well as after sale services. When the desired types of middlemen are not available, the manufacturer will have to establish his own distribution network.
Q.4 What is prospecting, preapproach and AIDA approach in personal selling? Explain in detail.
Ans. Prospecting: – Prospecting refers to identifying and developing a list of potential clients. Sales people can seek the names of prospects from a variety of sources including trade shows, commercially-available databases or mail lists, company sales records and in-house databases, website registrations, public records, referrals, directories and a wide variety of other sources. Prospecting activities should be structured so that they identify only potential clients who fit the profile and are able, willing and authorized to buy the product or service. This activity is greatly enhanced today using websites with specially-coded pages optimized with key words so that prospects may easily find you when they search the web for certain key words related to your offering. Once prospecting is underway, it then is up to the sales professional to qualify those prospects to further identify likely customers and screen out poor leads. Modern websites can go along way in not only identifying potential prospects but also starting this qualification process.
Pre-approach: – Before engaging in the actual personal selling process, sales professionals first analyze all the information they have available to them about a prospect to understand as much about the prospect as possible. During the Pre-approach phase of the personal selling process, sales professionals try to understand the prospect’s current needs, current use of brands and feelings about all available brands, as well as identify key decision makers, review account histories (if any), assess product needs, plan/create a sales presentation to address the identified and likely concerns of the prospect, and set call objectives. The sales professional also develops a preliminary overall strategy for the sales process during this phase, keeping in mind that the strategy may have to be refined as he or she learns more about the prospect.
AIDA Model is a selling concept presented by Elmo Lewis to explain how personal selling works. AIDA Model outlines the processes for achieving promotional goals in terms of stages of consumer involvement with the message. The Stages are Attention, Interest, Desire, and Action.
- Attention: – In this media filled world, advertisers need to be quick and direct to grab audience attention. Ads are required to be eye catchy which can make audience stop and read or watch what advertiser have to say next. Powerful words and pictures are used in ads to make them attractive.
- Interest: – After getting attention of a chunk of the targeted audience, it is required to keep them engaged with the ad to make them understand the message in more detail. Gaining the reader’s or audience interest is more difficult process than grabbing their attention. To gain audience interest the advertisers must stay focused on audience needs.
- Desire: – The Interest and Desire part of AIDA goes hand-in-hand. As advertiser builds the audience interest, he also needs to help them understand how what he is offering can help them in a real way. The way of doing this is by appealing to their personal needs and wants. A good way of building the reader’s desire for advertiser offering is to link features and benefits. Hopefully, the significant features of the offering have been designed to give a specific benefit to members of the target market.
- Action: – Finally, advertiser needs to be very clear about what action he wants the audience to take- trial, purchase, repurchase, or other.