Q.1. HOW MANY SALES PEOPLE WOULD YOU NEED FOR YOUR COMPANY?
1. Total no. of present & potential customers: 200
- A class = 20% = 40
- B class = 36 % = 72
- C class = 44% = 88
2. Length of time per sales call:
- A class = 60 minutes = 1 hr
- B class = 40 minutes = 2/3 hr
- C class = 30 minutes = 1/2 hr
3. No. of calls per account per year:
- A class = 50 calls
- B class = 30 calls
- C class = 20 calls
4. Time of work per sales person = 40 hr per week, 45 weeks per year = 1800 hr per year
5. Time Apportioned:
- Selling tasks = 40%
- Non-selling tasks = 25%
- Travelling = 35%
Now, Total time to be given to sales tasks = 40x1x50 + 72x(2/3)x30 + 88x(1/2)x20 = 4,320
hours per year
As selling tasks comprise of only 40% of the total time, Total time required = 4,320/0.4 =
10,800 hours
Number of sales people required = 10,800/1800 = 6
Q.2. Which Applicant would you Hire?
SALESMAN SHOULD HAVE BELOW QUALITIES –
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JOB SPECIFICATIONS
One who seeks challenge, enjoys being creative, is able to work as an individual
developing & building market share
Demonstrates communication skills
Possesses the maturity to plan time judiciously so that maximum potential can be
realized from sales effort
Shows personality traits considered most desirable: extrovert, resourceful, confident,
adaptable, imaginative & shows initiative as a self-starter
SALES ACTIVITY IN THE MARKET PLACE
Primarily you sell directly to wholesalers/industry distributors. Since the development
stage of accounts varies, it requires the trainees to be flexible & adaptable.
Capable of handling customer complaints and returned goods
Time management skills & routing for maximum time with higher volume accounts
Must sell the complete product line rather than push personal favorites
The annual bonus depends on volume increases over last year and this year’s
profitability over last year’s
Now, the person having children won’t be much flexible as he will have to give time to
the family too. Hence, Applicant E is rejected.
Salesperson required should also be adaptable and should be imaginative and
creative. Applicant D has an age of 45 years and from past 20 years he is working as
a salesperson only. Even being mature enough, he might not be fit for this job.
Hence, Applicant D is rejected.
Though Applicant A is creative, imaginative and fulfills several requirements, he is
inexperienced in full time selling and he also manages a business. Hence, he may
not be able to denote much time. Applicant A is rejected.
Company’s aim is to sell primarily to the wholesalers and industry distributors.
Applicant C has a good experience but selling to national firms. Hence, Applicant C
is rejected.
Applicant B possess all the required skills. He is creative (DIY hobbies), experienced,
though married but wife is also working and hence denote much time, experienced in
selling insurance and that too compensated by commission. Hence, Applicant B is
selected.
Q.3. What should Samuel do?
Samuel likes the outstanding performers and indifferent to average performers. He trains the
poor performers and because of this, average performers are neglected. There are several
ways through which a manager can spend time with all of his subordinates.
One way is BRAINSTORMING. In a brainstorming session on the topics like “how to
increase sales”, how to tackle customers”, “how to react to unhappy consumers”, etc.
everyone, specially the top performers would share their strategies and experiences
and poor and average performers would learn from them.
Manager can team up all of them. He can make 3 teams comprising of 1 outstanding
performer, 2 average performers and 1 poor performer. This way the average and
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the poor performers can learn somethings from the outstanding ones. Also, the
manager will only have to apportion his time to 3 teams and not to 12 individuals.
Other ways are to call them in 3 teams, one of outstanding performers, one of
average and the last one of poor performers and then apportion time in such a way
that poor performers are given maximum time.
If the poor performers aren’t able to perform better, they should not be hired for
further jobs. Because they are not selling much but wasting a lot of time of the
manager. May be the product or the company is not for them.
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