Sales Management
June 2023 Examination
1) FMCG companies like Unilever and Procter& Gamble salespeople are known to be given
aggressive sales quotas and targets. Sales quota and target setting has 4 methodologies namely
sales volume target/quota, activity target/ quota, profit target/quota and expenses/target quota.
From your understanding of the FMCG market, what kind of methodology would be used by
you to set targets for the sales team and why? Explain in detail. (10 marks)
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2) Sales forecasting is one of the most important tools for any large organizations to meet its
revenue estimates. Popular forecasting tools are jury of executive opinion, poll of sales force
opinion, projection of past sales, time series analysis and exponential smoothing. What method
would you recommend for a startup organization and why? (10 marks)
3) HCL is an Indian multinational with its headquarters based in Delhi. It has total revenue of
$11Billion with net income of $2.8 Billion across all its business units which has both
information technology services and products.
Based on the success of its local laptop brands in the Indian marketplace, HCL would like to
enter the high-end laptop/notebook segments by distributing Dell products.
Laptops/notebooks as a product category fall in both the B2B (Business to Business) as well
as B2C (Business to consumer) segments.
As the Vice President Sales for HCL-Dell laptops, you are required to come out with a sales
management strategy covering sales methodology and budgeting:
a) Out of the 5 theories of buying namely AIDAS, Buying Formula theory, Behavioral
equation theory SPIN and Right set of circumstances theory, which would be used by you to
build a sales methodology for HCL-Dell laptops? Please justify your choice of methodology
(5marks)
b) Out of the top down and bottom-up methodology for setting budgets which of them would
be used by you for HCL -Dell laptops and why? (5marks)