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GNDU Question Paper-2023
Bachelor of Business Administration
BBA 5
th
Semester
ADVERTISING & SALES MANAGEMENT
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks.
SECTION-A
1. Explain the role of advertising in today's world. Also discuss types of advertising.
2. How do firms prepare advertising budget? Discuss various methods of preparing
advertising budget.
SECTION-B
3. What are the roles and functions of Advertising Agency?
4. Write short notes on:
(a) Types of advertising media.
(b) Copy writing.
SECTION-C
5. Describe the characteristics of a sales organization. Why is the span of control an
important issue in deciding the design of sales organization?
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6. Why is planning, recruiting and selecting right sales-person important for organization?
Also explain various test tools available for the sales manager to select manpower.
SECTION-D
7. Distinguish between on job training and off job training. What are the advantages and
disadvantages of each of these approaches ?
8. What is performance appraisal? Why is it difficult to evaluate salesperson
in organization?
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GNDU Answer Paper-2023
Bachelor of Business Administration
BBA 5
th
Semester
ADVERTISING & SALES MANAGEMENT
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks.
SECTION-A
1. Explain the role of advertising in today's world. Also discuss types of advertising.
Ans: The Role of Advertising in Today’s World & Its Types
Imagine this: You are walking down a busy street. On one side, there is a shop selling
clothes. On the other, a café offering hot coffee and snacks. Above you, bright billboards
flash with messages—“Buy One Get One Free!” and “Try the New Chocolate Latte.” As you
scroll on your phone, you see a short video about a new smartphone. In the evening, while
watching TV, a catchy jingle about a shampoo sticks in your mind. By the time you go to bed,
you have already been influenced by dozens of advertisements—some consciously, some
without even realizing.
This little story shows how deeply advertising is woven into our everyday life. It is no longer
just about selling products; it is about shaping choices, influencing lifestyles, and even
guiding culture. Let’s dive into this topic step by step.
The Role of Advertising in Today’s World
Advertising plays a multidimensional role in the modern era. Let’s understand it in a way
that feels more like a journey rather than plain points.
1. Bridge Between Producers and Consumers
Think of a farmer who grows organic apples in Himachal Pradesh. Without advertising, his
apples may only reach his local market. But through ads, packaging, and online promotions,
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his apples can reach Delhi, Mumbai, or even abroad. Advertising acts as a bridge—
connecting what producers make with what consumers want.
2. Awareness Creator
Have you ever heard about a new mobile app, a new biscuit flavor, or a new movie without
any advertisement? Probably not. Advertising is the voice that introduces new products and
services to people. Without it, consumers would remain unaware of their options.
3. Persuasion and Influence
Advertising is like a gentle nudge. You may not need new shoes, but after watching a stylish
ad showing how comfortable and trendy they look, you feel tempted. Advertisements shape
desires by associating products with emotions—happiness, confidence, beauty, or even
success.
4. Economic Driver
Believe it or not, advertising is not just about flashy posters. It is a huge economic engine.
Businesses spend billions on ads, and in return, sales rise. The advertising industry itself
creates jobs for designers, writers, actors, media planners, and many more professionals. It
fuels markets, encourages competition, and contributes to GDP.
5. Cultural Influencer
Think about slogans like “Just Do It” (Nike) or “Daag Ache Hain” (Surf Excel). These are not
just ads; they become part of daily conversations, jokes, and cultural references. Advertising
shapes culture and values—sometimes positively, sometimes negatively.
6. Supports Media and Entertainment
How are your favorite TV shows, YouTube videos, or even cricket matches funded? Mostly
by advertising. Ads are the backbone of media, ensuring that entertainment and news can
be offered at low or no cost to the public.
7. Guide to Decision-Making
In a world of endless options—hundreds of toothpaste brands, dozens of smartphones—
advertising acts like a map, helping consumers navigate choices. It gives information about
price, features, and benefits, helping people make informed decisions.
8. Social Awareness Tool
Advertising is not always about selling. Governments and NGOs use ads to spread
awareness about health, safety, education, and social issues—such as anti-smoking
campaigns, road safety, or “Beti Bachao, Beti Padhao.” These messages can change behavior
and save lives.
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Types of Advertising
Now that we know its role, let’s explore the different types of advertising. Imagine them as
characters in a play, each playing a unique role on the stage of communication.
1. Print Advertising
This is the traditional form—newspapers, magazines, pamphlets, brochures.
• Example: A full-page ad in The Times of India for a new car.
• Strength: Tangible, can be read anytime.
• Weakness: Losing ground in the digital age.
2. Broadcast Advertising
Television and radio are the old giants of advertising.
• Example: A TV commercial for Amul butter with a catchy jingle.
• TV ads can reach millions in seconds, but they are costly.
• Radio ads are cheaper and local, often engaging with jingles or short messages.
3. Outdoor Advertising
Billboards, hoardings, posters, wall paintings, neon signs—all fall here.
• Example: Huge billboards of Oppo or Vivo near airports.
• Outdoor ads grab attention when people travel, but they must be visually strong
since people only look for a few seconds.
4. Digital Advertising
The star of today’s era. It includes social media ads, Google ads, YouTube ads, influencer
marketing, etc.
• Example: A sponsored Instagram reel showing a beauty product.
• Benefits: Targeted, interactive, measurable, cheaper than TV.
• Drawback: Too many ads can irritate users.
5. Covert (Hidden) Advertising
This is when products are shown inside movies or shows without openly calling them ads.
• Example: A character in a film sipping Coke or using an iPhone.
• It feels natural and less pushy, but some viewers dislike the hidden persuasion.
6. Public Service Advertising (PSAs)
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These are ads not for profit but for awareness.
• Example: “Do not drink and drive” campaigns.
• They create social good, though people sometimes ignore them as “serious”
messages.
7. Celebrity Endorsements
When a famous person promotes a brand.
• Example: Virat Kohli for MRF, or Amitabh Bachchan for Cadbury.
• Pros: Builds trust quickly.
• Cons: Expensive and risky if the celebrity’s image suffers.
8. Comparative Advertising
This is when a company directly or indirectly compares its product with a competitor.
• Example: A detergent ad showing how Brand X leaves stains while Brand Y removes
them completely.
• It’s bold, but can create controversies.
9. Social Media & Influencer Marketing
In today’s digital-first age, influencers have become mini-brands themselves.
• Example: A travel vlogger promoting a hotel.
• This type feels more personal and relatable because people trust influencers like
friends.
10. Event Sponsorship and Experiential Advertising
Brands often sponsor events—cricket matches, concerts, marathons—to increase visibility.
• Example: Pepsi sponsoring the IPL.
• Experiential ads let consumers “experience” a product—like a free perfume sample
in a mall.
A Story Example: Advertising in Real Life
Let’s picture a college student, Riya. She wakes up and checks Instagram—she sees a
clothing ad with a special discount code. On the way to college, she passes a billboard about
a coaching institute. At lunch, she sees a YouTube ad about a new food-delivery app and
decides to try it. In the evening, she watches a TV serial where the heroine uses a particular
brand of mobile phone. Later, she gets a WhatsApp forward about a new online course.
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By the end of the day, she has been exposed to print, outdoor, digital, broadcast, covert,
and social media advertising. That’s how advertising surrounds us from morning to night,
guiding, tempting, and sometimes even teaching us.
Conclusion
Advertising today is not just a commercial tool; it is a social force. It informs, persuades,
entertains, and even educates. It keeps businesses alive, creates jobs, fuels economies, and
shapes cultures. Yes, it can sometimes be misleading or excessive, but when used
responsibly, advertising is one of the most powerful tools of communication ever created.
If we imagine the marketplace as a grand theatre, then advertising is the spotlight—shining
on products, ideas, and causes so that people can notice, understand, and decide. Without
advertising, producers would remain silent, consumers would remain confused, and markets
would lose their vibrancy.
2. How do firms prepare advertising budget? Discuss various methods of preparing
advertising budget.
Ans: How Do Firms Prepare Advertising Budget?
Imagine you own a small bakery. You bake the fluffiest cakes, the crispiest breads, and the
sweetest pastries in town. But here’s the problem — only a few people know about your
bakery because you have never told the world how wonderful your products are. That’s
when your friend suggests: “Why don’t you advertise?”
You immediately love the idea. But then another big question pops up in your mind: “How
much should I spend on advertising?” If you spend too little, no one will notice your bakery.
If you spend too much, you might end up with empty pockets, even if your sales increase.
This is exactly the puzzle that every company — whether a small bakery or a global giant like
Coca-Cola — faces. And to solve it, they prepare something called an advertising budget.
An advertising budget is simply the money a business sets aside to promote its products or
services during a specific period. But preparing this budget is not as easy as picking a
random number; it requires strategy, calculation, and smart decision-making. Firms follow
different methods of preparing advertising budget, depending on their size, goals, and
market situation.
Now, let’s dive deeper and understand this step by step in the most human way possible.
Why Do Firms Need an Advertising Budget?
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Before discussing methods, let’s pause for a moment and ask — why not just spend
whatever feels right? Why is a formal advertising budget needed?
• Balance between cost and benefit: Companies want to make sure that the money
they spend on ads brings back more money in sales.
• Avoid overspending or underspending: Spending too little may make ads invisible,
while overspending may damage profits.
• Helps in planning: Just like a family plans monthly expenses, a company needs a
budget to plan its marketing campaigns.
• Aligns with company goals: Whether the goal is increasing awareness, boosting
sales, or beating competitors, the budget ensures money is used in the right
direction.
So, preparing an advertising budget is like deciding how much fuel to put in a car before a
long journey. Too little fuel, and you’ll stop midway; too much, and you waste money
carrying extra weight.
How Firms Prepare Advertising Budget
Preparing an advertising budget usually involves the following steps:
1. Analyzing business goals – What does the company want? More awareness, more
market share, or immediate sales?
2. Studying past data – How much did they spend before? What worked and what
failed?
3. Studying competitors – How much are rivals spending on advertising?
4. Deciding the method – Choosing a suitable budgeting method (which we’ll discuss
shortly).
5. Allocating the budget – Dividing money across different media: TV, online, print,
outdoor ads, etc.
6. Monitoring and adjusting – Checking if the budget is giving results, and changing it if
needed.
But the heart of this process lies in the method chosen for deciding the budget. Let’s now
understand these methods in detail.
Methods of Preparing Advertising Budget
Over the years, businesses have developed several methods. Some are scientific, others are
traditional. Let’s walk through each one with examples so you can imagine them clearly.
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1. Percentage of Sales Method
This is the most popular and simplest method. Here, the advertising budget is fixed as a
percentage of either past sales or expected future sales.
Example:
If your bakery earned ₹10,00,000 last year, and you decide to spend 5% of sales on
advertising, then your ad budget will be ₹50,000.
Advantages:
• Easy to calculate.
• Automatically adjusts with sales growth or decline.
• Prevents overspending.
Disadvantages:
• Sales may fluctuate for reasons unrelated to advertising, so blindly linking the two
can be risky.
• It ignores market opportunities. For example, if sales are low, you may end up
spending even less on ads, when actually you need to spend more to boost sales.
This method is like a student deciding pocket money for snacks based on last year’s exam
results. If marks were low, he gets less money — but maybe he needed more energy snacks
to study better!
2. Affordable Method
As the name suggests, companies here spend whatever they feel they can afford after
covering other expenses.
Example:
Your bakery pays for rent, ingredients, and staff salaries. Whatever money remains, you
decide to use for advertising.
Advantages:
• Very simple and safe for small businesses.
• No risk of overspending.
Disadvantages:
• Advertising is treated as a leftover, not as an investment.
• Growth potential is limited, because spending may be too low to make an impact.
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This method is like buying clothes only from the money left after paying bills. Practical, yes,
but it might keep you from ever looking stylish.
3. Competitive Parity Method
Here, firms set their advertising budget by matching what competitors are spending. The
idea is that if rivals are spending a certain amount, you should also spend at a similar level to
stay visible.
Example:
If a rival bakery spends ₹1,00,000 on online ads, you might also decide to spend around the
same so that customers don’t forget you.
Advantages:
• Keeps the company competitive.
• Prevents under or over-spending compared to rivals.
Disadvantages:
• Assumes competitors’ strategies are correct (which may not be true).
• Ignores company’s unique needs and strengths.
This method is like a student copying how much another student studies, thinking it will
guarantee the same marks. But maybe that other student studies inefficiently!
4. Objective and Task Method
This is considered the most scientific method. The company first sets clear advertising
objectives, then calculates how much money is required to achieve them.
Steps involved:
1. Define objective (e.g., increase brand awareness by 20%).
2. Identify tasks (e.g., run 50 online ads, distribute 10,000 flyers, sponsor 2 local
events).
3. Estimate costs of tasks.
4. Add them up — that becomes the budget.
Example:
If increasing awareness requires ₹60,000 worth of online ads, ₹20,000 for flyers, and
₹20,000 for event sponsorships, the total budget will be ₹1,00,000.
Advantages:
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• Logical and systematic.
• Ensures money is directly linked to results.
Disadvantages:
• Time-consuming and requires detailed research.
• Hard for small firms with limited expertise.
This method is like planning a wedding: you decide the type of venue, food, and decoration
you want, calculate costs, and then finalize the budget.
5. Return on Investment (ROI) Method
In this approach, advertising is seen as an investment. The budget is prepared based on the
expected returns from advertising.
Example:
If you spend ₹50,000 on ads and expect sales to rise by ₹1,00,000, giving you a profit of
₹50,000, then you justify the budget.
Advantages:
• Focused on efficiency.
• Ensures every rupee spent is measured against returns.
Disadvantages:
• Difficult to measure exact returns from advertising because sales are influenced by
many other factors like quality, price, and distribution.
This method is like a farmer investing in fertilizers only if he expects the crop yield to
double.
6. Market Share Method
Here, the advertising budget is linked to the firm’s market share. Companies with higher
market share usually spend more to maintain their dominance, while smaller firms spend
less.
Example:
If your bakery has 20% market share in town, you might spend proportionally more than a
small bakery with only 5% share.
Advantages:
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• Maintains competitive position.
• Realistic for big brands.
Disadvantages:
• Difficult for new entrants, as they may not have enough resources.
7. Experimental Method
In this method, firms experiment with different levels of advertising expenditure and
measure the response. The level that brings the best results is chosen.
Example:
Your bakery spends ₹20,000 one month and ₹40,000 the next month, and compares the
sales increase. If ₹40,000 gives a much bigger sales boost, you may choose that as the
budget.
Advantages:
• Based on real data.
• Helps in finding the most effective spending level.
Disadvantages:
• Time-consuming.
• Risky and costly to experiment too much.
Conclusion
So, how do firms prepare advertising budget? The answer is: there is no single formula. Just
like choosing clothes depends on the occasion, choosing a budget method depends on the
company’s size, goals, and circumstances.
• Small firms often go for the affordable method.
• Established firms may use percentage of sales or competitive parity.
• Goal-oriented firms prefer the objective and task method.
• Data-driven companies may experiment or calculate ROI.
In the end, preparing an advertising budget is not just about numbers — it’s about vision.
It’s about asking: “Where do we want our brand to be, and how much are we ready to invest
to get there?”
Just like our bakery owner, every business must strike a balance between ambition and
affordability. Too little advertising, and customers forget you. Too much, and you burn out
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your profits. The smartest firms are those that treat advertising as a bridge between
dreams and reality, and prepare budgets that make those dreams come true.
SECTION-B
3. What are the roles and functions of Advertising Agency?
Ans: Roles and Functions of Advertising Agency
Imagine a company that has just created a wonderful new product — let’s say it’s a
smartphone with a week-long battery life. The makers are excited, but here’s the big
question: How will people know about it? If they simply keep it in their office, no customer
will come running. They need a bridge between their product and the people who need it.
That bridge is built by an Advertising Agency.
Advertising agencies are like professional storytellers and matchmakers. They take a
company’s product, understand it deeply, and then design creative ways to make people
notice it, remember it, and finally buy it. Think of them as a mix of artists, psychologists,
strategists, and business experts, all rolled into one.
Now, to understand their roles and functions, let’s walk through the journey of how an ad
agency works step by step.
1. Understanding the Client and the Product
The first function of an advertising agency is to listen carefully. When a company
approaches them, the agency spends time understanding the product or service:
• What makes it unique?
• Who is the target customer?
• What are the company’s goals? (More sales? Brand awareness? Launching a new
product?)
This stage is like a doctor diagnosing a patient before prescribing medicine. Unless the
agency truly knows the brand, they cannot design the right campaign.
2. Conducting Market Research
Once they understand the client, the agency steps into the shoes of the customers. They
conduct research:
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• What do people think about similar products?
• What are their likes, dislikes, habits, or desires?
• Who are the competitors, and how do they advertise?
This function helps agencies avoid shooting in the dark. Instead, they know exactly where to
aim. Research becomes the compass that guides all creative efforts.
3. Developing an Advertising Strategy
Now comes the planning stage. Based on the research, the agency develops a strategy.
For example, for our smartphone with a week-long battery life, the strategy might focus on
“freedom from daily charging.” The agency will decide:
• The message (e.g., “Charge once, forget for a week.”)
• The medium (TV, social media, newspapers, radio, hoardings, YouTube, Instagram,
etc.)
• The budget allocation — how much money should go where.
This is like drawing a map before starting the journey.
4. Creative Development
This is the part most people see — the actual making of advertisements. Creative teams in
an ad agency include:
• Copywriters who write catchy slogans, taglines, and scripts.
• Art directors and designers who create visuals, layouts, and graphics.
• Producers and videographers who shoot commercials.
Here imagination runs wild, but always with discipline. For example, the ad could show a
traveler climbing mountains, camping in forests, and never worrying about charging his
phone. The audience is not just informed but also emotionally moved.
5. Media Planning and Buying
A brilliant ad is useless if it doesn’t reach the right people. That’s where media planning
comes in.
Agencies decide:
• When should the ad run? (Morning, evening, festival season?)
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• Where should it appear? (Instagram reels for young people, newspapers for older
audiences, YouTube for tech enthusiasts.)
• How often should it be repeated?
After planning, they also negotiate and buy ad space on TV, websites, magazines, or
billboards. This ensures the client’s money is used wisely and the ad gets maximum visibility.
6. Executing the Campaign
Once everything is ready, the agency launches the campaign. This could mean running
commercials, posting online ads, putting up banners, or organizing promotional events. It’s
the moment when the story meets the audience.
7. Monitoring and Evaluating Performance
The job doesn’t end with execution. Agencies track the campaign’s effectiveness. Did sales
increase? Did the brand’s reputation improve? How many people saw or interacted with the
ad?
If something isn’t working, they adjust strategies. For instance, if online ads are performing
better than TV, they might shift more budget toward digital platforms.
8. Providing Additional Services
Modern advertising agencies also offer public relations, branding, social media
management, and event promotions. They don’t just sell products; they build long-term
brand identities.
9. Maintaining Client Relationships
Lastly, agencies act as partners, not just service providers. They continuously advise clients,
update them about market trends, and work together for long-term growth.
Why Are These Functions Important?
• They save companies time and effort.
• They bring professional expertise.
• They help brands stand out in crowded markets.
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• They ensure advertising money is spent smartly.
Think about it — when you see a catchy jingle on TV that refuses to leave your head, or a
clever meme that instantly makes you check a brand’s Instagram page, that’s not an
accident. It’s the invisible work of an advertising agency doing its job perfectly.
A Quick Analogy to Remember
Imagine a film production team:
• The client is the producer (who funds the movie).
• The advertising agency is the director and crew (who bring the vision to life).
• The audience is the customer (who enjoys the final show).
Without the director and crew, the producer’s idea will never reach the screen. Similarly,
without advertising agencies, products would struggle to reach customers.
Conclusion
Advertising agencies are not just about making fancy posters or flashy commercials. They
are the architects of communication between brands and people. Their roles — from
research to creativity, from media planning to evaluation — ensure that products don’t
remain hidden treasures but become household names.
In a world full of noise and competition, advertising agencies are like skilled storytellers who
make sure one particular story — that of their client’s brand — shines brighter and reaches
the right hearts and minds.
That’s why their functions are so essential: they turn ideas into identities, products into
brands, and customers into loyal supporters.
4. Write short notes on:
(a) Types of advertising media.
(b) Copy writing.
Ans: A Fresh Beginning
Imagine you are walking through a busy marketplace. On one side, a shopkeeper is loudly
announcing discounts, on the other side a huge poster with colorful visuals is grabbing your
attention. Just above your head, a digital screen is flashing advertisements of a new
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smartphone, and suddenly your phone buzzes with a notification from an online store
offering you 10% off.
This little scene is not random—it beautifully shows how advertising reaches us in multiple
ways. Advertising is everywhere: in newspapers, on TV, on websites, on radio, in public
spaces, and even in our social media feeds. To understand this properly, let us explore the
different types of advertising media, and later, we will also talk about the art of copy
writing, which is the magic behind these advertisements.
(a) Types of Advertising Media
Advertising media simply means the channels or platforms through which advertisements
reach the audience. Companies carefully choose the right medium depending on their
product, budget, and target customers. Here are the major types:
1. Print Media
o This is one of the oldest forms of advertising. Newspapers, magazines,
pamphlets, and brochures all fall under print media.
o Example: A real estate company publishing an ad in the Sunday newspaper
showcasing new flats.
o Strength: It reaches local audiences quickly and can give detailed
information.
o Weakness: Its impact is short-lived; once the newspaper is discarded, the ad
vanishes.
2. Broadcast Media (Radio and Television)
o Television ads combine visuals, sounds, and emotions—making them very
powerful. Radio, though only audio, can still be persuasive, especially for local
advertising.
o Example: Jingles like “Washing powder Nirma” or festive sale
announcements on FM radio.
o Strength: Wide reach, strong emotional appeal.
o Weakness: Expensive, especially TV slots.
3. Outdoor or Out-of-Home Media
o Billboards, posters, wall paintings, hoardings, banners, and transit advertising
(ads on buses, autos, metros).
o Example: Large billboards showing new fashion brands on highways or in city
centers.
o Strength: Constant visibility and high frequency.
o Weakness: Limited message space; cannot explain much.
4. Digital or Online Media
o This is the fastest-growing medium today. Websites, social media, Google
ads, influencer marketing, YouTube ads, and email campaigns fall here.
o Example: An online clothing brand showing ads on Instagram stories.
o Strength: Global reach, precise targeting (based on age, location, interest).
o Weakness: Can be ignored easily; also raises privacy concerns.
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5. Direct Mail and Personal Media
o Sending catalogs, brochures, or personalized messages directly to potential
customers. Today, SMS and WhatsApp marketing are modern versions of
this.
o Example: Banks sending loan offers through SMS.
o Strength: Personalized, creates a one-to-one relationship.
o Weakness: Many people consider it spam.
6. Specialty Media
o These are unique ways of advertising using items like calendars, pens, diaries,
T-shirts, or mugs with company logos.
o Example: A school distributing notebooks with its name printed on the cover.
o Strength: Creates long-term brand recall.
o Weakness: Limited reach.
In short, advertising media are like different roads that lead the same message to the
minds of customers. The choice of the road depends on where the customers are standing.
(b) Copy Writing
Now, let’s talk about the second part: copy writing.
Think of an advertisement you still remember after years—like “Daag acche hain” or “Just
do it”. The power of those words lies in copy writing.
What is Copy Writing?
Copy writing is the art of writing persuasive, attractive, and meaningful words for
advertisements. These words, known as “ad copy,” are carefully crafted to catch attention,
hold interest, create desire, and finally push the customer to take action (buy, subscribe, or
try).
Importance of Copy Writing
• It is the soul of advertising. Without good words, even the most expensive TV ad will
fail.
• It helps a brand create identity and emotional connection.
• It converts casual viewers into loyal customers.
Elements of a Good Ad Copy
1. Attention-Grabbing Headline
o The first impression is everything. Headlines must be short, catchy, and
relevant.
o Example: “Because You’re Worth It” by L’Oréal.
2. Clarity and Simplicity
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o The message should be crystal clear. Complicated words confuse customers.
o Example: “Thanda Matlab Coca Cola.” Simple yet powerful.
3. Emotional Appeal
o A good copy touches feelings—love, fear, pride, security, or happiness.
o Example: Insurance ads showing family protection.
4. Call to Action (CTA)
o Every copy must tell the customer what to do: Buy Now, Try Today, Limited
Offer, Subscribe Here.
o Example: “Order Now and Get 20% Off.”
5. Uniqueness
o It should highlight what makes the product different.
o Example: “The Ultimate Driving Machine” (BMW).
Types of Copy Writing
1. Direct Copy – Straightforward and factual (like government health campaigns).
2. Indirect Copy – Uses humor, story, or emotion to influence.
3. Institutional Copy – Builds goodwill or reputation of the company.
4. Reason-Why Copy – Explains reasons to choose the product.
5. Testimonial Copy – Customer experiences are highlighted.
Wrapping it up
Advertising media are like the stage, while copy writing is the script. Even the best stage will
look empty without a strong script, and even the best script won’t shine without a proper
stage. Together, they make advertisements effective, memorable, and persuasive.
SECTION-C
5. Describe the characteristics of a sales organization. Why is the span of control an
important issue in deciding the design of sales organization?
Ans: Sales Organization & Span of Control – Explained as a Story
Imagine for a moment that you are the captain of a cricket team. Your job is not just to bat
or bowl, but to manage your entire team so that everyone plays their role perfectly. You
have your openers, middle-order batsmen, bowlers, wicketkeeper – all working together for
a single goal: to win the match. Now, think of a business that wants to sell its products. Just
like the cricket team, it needs a proper structure, planning, and distribution of
responsibilities. This is where a sales organization comes in.
A sales organization is nothing but the structure a company builds to manage all its sales-
related activities. It tells us who does what, who reports to whom, and how tasks are
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distributed. Without it, sales efforts can become like an unorganized cricket match where
everyone is running in different directions with no plan.
Now let’s break down the characteristics of a sales organization in a way that feels like a
story unfolding.
1. Clear Roles and Responsibilities
Imagine if every player in a cricket match said, “I’ll do whatever I feel like.” One person
might try to bat when it’s not their turn, another might try to bowl without any order – total
chaos! Similarly, in a sales organization, every salesperson must know their role clearly.
Some may handle big clients, some may handle small retail shops, while others may be
responsible for online sales. This clarity prevents confusion and duplication of work.
2. Specialization
Think about a hospital – you don’t expect the heart surgeon to also deliver babies or the
dentist to treat brain injuries. Everyone specializes in their area. In the same way, sales
organizations often divide their work based on product specialization (different teams for
different products), territorial specialization (north, south, east, west zones), or customer
specialization (corporate clients vs. individual buyers). Specialization ensures expertise,
efficiency, and better customer satisfaction.
3. Proper Coordination
Let’s return to our cricket analogy. If the bowler doesn’t signal the wicketkeeper before
delivering a tricky ball, chances are high that the ball may slip away and give free runs.
Coordination is key! Similarly, in sales, the team must coordinate with marketing,
production, logistics, and finance. The sales team cannot promise delivery of 1,000 units if
the factory can only produce 500. Proper coordination avoids broken promises and
disappointed customers.
4. Accountability
In a cricket team, if a fielder drops an easy catch, everyone knows who made the mistake.
Similarly, in a sales organization, there must be clear accountability. Each salesperson
should be responsible for their targets, regions, or clients. Accountability motivates people
to perform better and creates a culture of responsibility.
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5. Flexibility
The business world changes just like the pitch conditions in cricket. Sometimes the pitch
supports bowlers, sometimes it supports batsmen. The captain adjusts the strategy
accordingly. In the same way, a sales organization must be flexible. If customer preferences
shift from offline shopping to online platforms, the organization must quickly adapt and
maybe create an e-commerce sales team. Flexibility keeps the company relevant and
competitive.
6. Customer Orientation
At the end of the day, a cricket team plays not just for itself but for the audience and fans.
Similarly, a sales organization exists for its customers. Its structure and approach should
always aim at satisfying customer needs, solving their problems, and building long-term
relationships. A sales organization that forgets the customer is like a cricket team that
forgets to score runs!
Now, why is “Span of Control” so important in sales organization design?
Let’s continue with our story. Suppose you are the cricket captain, and you have to manage
50 players on the field at once. Can you imagine the chaos? You won’t be able to guide
everyone, keep track of their mistakes, or motivate them individually. But if you have 10–12
players, it’s manageable. You can give instructions, observe performance, and build team
spirit.
This simple example explains the idea of span of control.
It refers to the number of subordinates a manager or sales leader can effectively
supervise.
Why is it important?
1. Better Supervision and Guidance:
If one sales manager has too many salespeople under him, he cannot give personal
attention to each. But with a reasonable span of control (say 5–10 people), he can
train, guide, and monitor them effectively.
2. Communication Efficiency:
Imagine trying to send instructions to 100 players at once. Messages will get lost or
misunderstood. A balanced span of control ensures smoother communication, fewer
errors, and faster decision-making.
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3. Motivation and Morale:
When salespeople feel ignored because their boss is too busy handling dozens of
others, they lose motivation. A proper span ensures that everyone gets noticed,
appreciated, and corrected where needed.
4. Cost Consideration:
A very narrow span of control means appointing too many managers, which
increases cost. On the other hand, a very wide span reduces efficiency. So, finding
the right balance is crucial for both performance and cost-effectiveness.
5. Adaptability:
In dynamic markets, sales teams need quick decisions. A balanced span of control
helps managers stay connected with their teams and adapt strategies quickly –
whether it’s launching a new product, handling a competitor’s move, or adjusting
discounts.
Conclusion
A sales organization is like the backbone of any business. It gives shape, clarity, and direction
to the entire sales process. Its characteristics – clarity of roles, specialization, coordination,
accountability, flexibility, and customer focus – ensure that the company can achieve its
goals smoothly. And within this design, span of control is like the golden rule. Too wide,
and things slip out of hand; too narrow, and the system becomes costly and bureaucratic.
Just like a smart cricket captain knows how many players he can effectively guide, a smart
business knows how many salespeople one manager should handle. With the right span of
control, the sales team becomes a well-coordinated force, capable of winning not just
matches, but markets.
6. Why is planning, recruiting and selecting right sales-person important for organization?
Also explain various test tools available for the sales manager to select manpower.
Ans: Imagine you are the captain of a cricket team. The tournament is just around the
corner, and you have to choose your players carefully. If you randomly pick anyone without
checking their skills, discipline, or fitness, what would happen? Some may not know how to
bat, some may get nervous under pressure, and others may simply lack the motivation to
win. The result? The whole team suffers, and chances of victory vanish.
In the same way, an organization is like a team, and the salespersons are its frontline
players. They represent the company directly to the customers. The best products, clever
advertisements, and attractive discounts will all fail if the salesperson is not able to
convince, connect, and convert. That’s why planning, recruiting, and selecting the right
salesperson is not just important—it is the lifeline of an organization’s success.
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Importance of Planning, Recruiting, and Selecting the Right Salesperson
1. Salesperson as the Face of the Company
A salesperson is often the first human touchpoint for customers. If the wrong person is
hired—someone rude, uninterested, or untrained—the customer walks away with a
negative image of the entire company. On the other hand, a skilled and polite salesperson
creates trust and loyalty.
2. Boosting Productivity and Reducing Costs
Recruiting the right person means faster learning, better customer handling, and higher
sales numbers. If the wrong choice is made, the company spends more money on repeated
training, rehiring, and sometimes even loses customers permanently. Careful planning
avoids this wastage.
3. Team Harmony and Motivation
Sales is often a high-pressure job. A wrongly selected employee who lacks patience,
adaptability, or enthusiasm may spoil team morale. The right recruit, however, energizes
the whole team, shares knowledge, and works positively towards common targets.
4. Long-Term Growth
Salespersons are not just selling a product today; they are laying the foundation for repeat
purchases and long-term relationships with customers. A good recruitment plan ensures
that the company hires people who can grow with the organization and contribute to future
success.
How Can a Sales Manager Select the Right People?
Now comes the practical side—how does a sales manager actually ensure that the “right”
person is chosen? For this, organizations use a variety of test tools to measure not only
knowledge but also personality, behavior, and potential. Let’s go through them in a simple,
engaging way.
1. Aptitude Tests
Think of these like puzzles that measure a candidate’s natural ability to think, calculate, and
solve problems. Salespersons often face unpredictable situations—customers asking tricky
questions, competitors offering better deals, or sudden changes in pricing. Aptitude tests
help the manager judge whether the candidate can think fast and respond smartly.
2. Personality Tests
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Not everyone is cut out for sales. Some people may be shy, introverted, or uncomfortable in
conversations. A personality test highlights traits such as confidence, extroversion, patience,
empathy, and resilience. These are qualities that determine if the candidate can smile even
after ten rejections and still go to the eleventh customer with energy.
3. Knowledge and Product Tests
Imagine hiring someone to sell smartphones who does not know the difference between
RAM and storage. Customers would lose confidence immediately. Knowledge-based tests
help managers check whether the candidate can understand products quickly, explain them
clearly, and answer customer questions correctly.
4. Situational Judgment Tests (Role Plays)
This is one of the most powerful tools. The manager gives the candidate a mock scenario,
like: “A customer is unhappy with the price. How will you handle the situation?” The
candidate’s answer, tone, and creativity reveal a lot more than written tests. This helps
managers see how the person would actually behave on the sales floor.
5. Emotional Intelligence (EQ) Tests
Sales is not just about talking; it’s about listening, understanding emotions, and responding
wisely. Emotional intelligence tests measure whether a candidate can sense customer
needs, remain calm under stress, and build trust. Someone with high EQ can convert
difficult customers into loyal ones.
6. Group Discussion or Team Exercise
Salespersons don’t always work alone. They share ideas, handle targets together, and
represent the brand collectively. Group discussions show how well a candidate
communicates, respects others, and influences a group.
7. Physical and Stress Tests (in some industries)
In industries like insurance, FMCG, or door-to-door sales, physical stamina matters because
employees may travel long hours or face tough weather conditions. Stress tests ensure that
the candidate can handle the mental and physical load of the job.
Wrapping it Up
Let’s circle back to the cricket team analogy. The captain who carefully selects skilled,
disciplined, and motivated players not only wins matches but also builds a strong legacy for
the team. Similarly, an organization that plans recruitment well, chooses the right
candidates, and uses reliable test tools ensures that its “sales army” is strong and future-
ready.
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Hiring the right salesperson is not just filling a vacancy; it is like planting a tree. The wrong
sapling may wither away quickly, but the right one will grow roots, provide shade, and bear
fruits for years. That is why organizations spend so much effort in planning, recruiting, and
testing. It is an investment that secures trust, growth, and long-term success.
SECTION-D
7. Distinguish between on job training and off job training. What are the advantages and
disadvantages of each of these approaches ?
Ans: On-the-Job Training vs Off-the-Job Training
Imagine a young man named Amit who has just joined a company as a trainee. He is excited
but also a little nervous because, like every new employee, he knows learning is the key to
success. His manager tells him, “Amit, there are two main ways we train our employees
here—on the job and off the job. Both have their own value. Let me explain.”
This simple workplace story gives us the perfect chance to understand the difference
between the two approaches.
1. On-the-Job Training (OJT)
On-the-job training is like learning while doing the actual work. Here, Amit would be guided
by his senior while performing real tasks. For example, if he works in a bank, he may be
taught how to handle deposits, update passbooks, or assist customers directly at the
counter.
In this method, the workplace itself becomes the classroom, and the tools of the job
become the learning material. No separate lecture hall, no long theory sessions—just
practice in real conditions.
Advantages of On-the-Job Training:
1. Practical Exposure: Amit learns exactly what he has to do, using real machines, tools,
and processes.
2. Cost Effective: The company doesn’t spend much on training halls, instructors, or
study material.
3. Quick Adaptation: The trainee immediately adjusts to workplace conditions and
gains confidence.
4. Learning from Experts: Since senior employees guide him, he benefits from their
experience.
Disadvantages of On-the-Job Training:
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1. Risk of Mistakes: Because learning happens on live tasks, even a small error may
cause loss or delay.
2. No Structured Learning: It may miss theoretical understanding, focusing only on
“how” and not “why.”
3. Trainer’s Burden: The senior employee may get distracted from his own work while
training the newcomer.
4. Stress for Trainee: Amit may feel pressure to perform immediately, even before he
has mastered the skill.
2. Off-the-Job Training
Now, imagine instead of working directly at the counter, Amit is sent to a training center for
a week. Here, he attends workshops, listens to lectures, participates in group discussions,
watches demonstrations, or even uses simulations. This is off-the-job training, where
learning happens away from the actual workplace.
The focus here is on theory, concepts, and simulated practice before applying skills in the
real workplace.
Advantages of Off-the-Job Training:
1. Safe Learning Environment: Amit can make mistakes during practice without
affecting the organization’s operations.
2. Broader Perspective: Training covers concepts, problem-solving, and future
scenarios, not just routine tasks.
3. Expert Guidance: Professional trainers conduct sessions, bringing specialized
knowledge.
4. Innovative Learning Methods: Case studies, role plays, and simulations make the
process engaging and creative.
Disadvantages of Off-the-Job Training:
1. High Cost: Hiring trainers, arranging venues, and providing materials require heavy
investment.
2. Time Consuming: Employees spend time away from work, which may slow down
day-to-day operations.
3. Less Practical Exposure: Amit may understand theories but might still struggle when
he faces real customers later.
4. Lack of Real Work Pressure: Since practice is artificial, trainees may not feel the
same urgency as in actual work.
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Comparison in Simple Words
• On-the-job training is like learning to swim by jumping directly into the pool with a
coach standing beside you.
• Off-the-job training is like learning swimming techniques on land, watching videos,
or practicing in a controlled pool before entering the deep waters.
Both methods have their own charm and importance. In fact, most organizations today
combine both—first giving theoretical inputs (off-the-job) and then letting employees
practice in real settings (on-the-job).
Conclusion
Coming back to Amit, his journey shows us the essence of these two approaches. If he only
learns on the job, he becomes skillful quickly but may lack deeper understanding. If he only
learns off the job, he gains concepts but may feel nervous when faced with real customers.
The ideal path is a balance—theory from off-the-job training, sharpened by practice in on-
the-job training.
Thus, both approaches are not rivals but partners. Just like two wings of a bird are needed
for flight, both on-the-job and off-the-job training are essential for employee growth and
organizational success.
8. What is performance appraisal? Why is it difficult to evaluate salesperson
in organization?
Ans: Performance Appraisal and the Challenge of Evaluating Salespeople
Imagine this for a moment: you are the captain of a cricket team. Each player has a different
role—some are bowlers, some are batsmen, and some are all-rounders. Now, if you want to
judge their performance at the end of the season, how would you do it? For the batsman,
you might check how many runs he scored. For the bowler, you might look at how many
wickets he took. But what about the fielder who saved crucial runs, or the all-rounder who
did a little bit of everything? Suddenly, the evaluation doesn’t look so simple, does it?
This is exactly the situation organizations face when they try to evaluate their employees.
The formal name for this process is Performance Appraisal. Just like a cricket captain
reviews his players, managers review their employees. But when it comes to salespeople,
the job becomes even more complicated. Let’s explore this step by step.
What is Performance Appraisal?
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In simple words, performance appraisal is the process through which organizations
measure, analyze, and evaluate the performance of their employees over a certain period
of time. It’s like giving a “report card” to employees based on their work.
The main purpose is not just to judge someone, but also to:
• Recognize their strengths,
• Identify areas where they can improve,
• Provide feedback and motivation, and
• Decide things like promotions, salary hikes, training needs, or sometimes even
disciplinary actions.
Think of it as a mirror that shows an employee where they stand. If used properly, this
mirror doesn’t just reflect their present but also guides them towards a better future.
Why Organizations Do Performance Appraisal
1. Rewarding Good Work – Just like a student is given awards for scoring high marks,
employees get salary increments, bonuses, or promotions if they perform well.
2. Improving Skills – If a worker is weak in some area, the appraisal helps the manager
identify it and arrange training.
3. Motivation – Honest feedback motivates employees to perform better.
4. Planning for the Future – Organizations can decide who is ready for leadership roles,
and who needs more grooming.
So, overall, it’s a very important activity for both the employee and the organization.
Now Comes the Big Question: Why is it Difficult to Evaluate Salespeople?
At first glance, you may think salespeople are the easiest to evaluate. After all, their job is
selling, so just look at how much they sold, right? Well, if it were that simple, managers
would have no headaches. But the reality is far more complex. Let’s break it down.
1. External Factors Beyond Their Control
Imagine a salesperson named Rahul. Last year, he sold products worth ₹1 crore. This year,
he managed only ₹50 lakh. Does this mean he became lazy? Not necessarily. Maybe the
economy slowed down. Maybe competitors launched cheaper products. Maybe customers’
tastes changed. These factors are outside his control, but they affect his numbers. If we
judge Rahul only by his sales figures, we might end up being unfair.
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2. Differences in Territories
Let’s say two salespeople—Anita and Rohit—work in different regions. Anita works in a
metropolitan city where customers are rich and demand is high. Rohit works in a small rural
town where the market is limited. Even if Rohit works harder than Anita, his sales figures
may still look smaller. If the appraisal only looks at numbers, Anita will seem like a star while
Rohit will look average. This makes the evaluation tricky.
3. Role of Teamwork
Salespeople rarely work alone. Their success often depends on marketing campaigns,
product quality, pricing, supply chain, and customer service. For example, if the company
launches a great advertisement campaign, sales might shoot up automatically, and the
salesperson gets credit. On the other hand, if there’s a delay in product delivery, sales might
fall even if the salesperson worked very hard. Separating individual effort from team
influence is very challenging.
4. Qualitative Aspects Are Hard to Measure
Sales is not just about selling. A good salesperson also builds long-term relationships with
clients, handles complaints politely, gives valuable market feedback, and maintains the
reputation of the company. These qualities are very important but difficult to measure in
numbers. How do you write in the appraisal form that “Rahul is excellent at convincing
angry customers”?
5. Pressure and Targets
Most organizations set targets for salespeople. Meeting or not meeting these targets
becomes the yardstick for appraisal. But targets are not always realistic. Sometimes they are
set too high, which demotivates salespeople. Sometimes they are too low, making it unfair
for the star performers who could have achieved much more. This imbalance makes
evaluations unfair and inaccurate.
6. Short-Term vs. Long-Term Results
Another problem is that some salespeople focus on short-term gains just to meet targets,
while others focus on long-term relationships that will bring bigger benefits in the future.
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For example, Rohit may sell less this year but build strong trust with clients who will bring
large business next year. If the appraisal only looks at current sales, Rohit’s long-term vision
goes unnoticed.
7. Subjectivity of the Manager
Finally, human bias plays a role. Sometimes managers are impressed by personality,
communication style, or personal liking rather than actual performance. This can make the
appraisal subjective rather than objective.
Conclusion
Performance appraisal is like a compass that guides employees and organizations towards
growth. It helps recognize talent, reward efforts, and improve weaknesses. However, when
it comes to salespeople, this compass often faces storms—economic changes, territory
differences, team influences, and qualitative factors that can’t be easily measured.
To overcome these challenges, organizations need to adopt a balanced approach. Instead of
judging salespeople only on numbers, they should also consider customer feedback, effort
level, relationship-building, and market conditions. A combination of quantitative data
(sales figures) and qualitative assessment (behavior, attitude, and customer satisfaction)
gives the fairest picture.
In the end, evaluating a salesperson is like evaluating a cricketer who plays in unpredictable
weather. You cannot judge only by the number of runs scored—you also need to see how
tough the pitch was, how strong the opposition was, and how well he supported his team.
Only then can the appraisal be fair, motivating, and truly useful.
“This paper has been carefully prepared for educational purposes. If you notice any mistakes or have
suggestions, feel free to share your feedback.”
