Salesmanship: College System For Boys

Salesmanship (Complete Course Reference Material) DBA Part II 1
Lecturer : Arshad Zia Siddiqui

.(M.Com MCS M.A !conomics) " 1 "
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Salesmanship (Complete Course Reference Material) DBA Part II #
CHAPTER NO 1
MARKETING
NATURE AND SCOPE OF MARKETING
Most often marketing is associated with the efforts of the business firms selling
their goods and services. owever careful e!amination of what ha""ening in these
business situations suggests that broader notion of# marketing is not onl$
a""ro"riate but also highl$ useful.
EXCHANGE AS THE FOCUS
Marketing can occur an$ time a "erson or organi%ation strives to something of value
with another "erson or organi%ation. Thus the essence of marketing is a transaction
or e!change . in this broad sense# marketing consist of activities designed to
generate and facilitate e!changes intended to satisf$ human or organi%ational
needs or wants.
E!change is one of the three wa$s we can satisf$ our needs. If $ou want to
something $ou can make it $ourself# ac&uire it b$ theft or some form of corrosion#
or $ou can offer something of value to a "erson who had that desired thing or
service and will e!change it for what $ou can offer. 'nl$ this last alternative is an
e!change in a sense that marketing is occurring. The following conditions must e!ist
for a marketing e!change to take "lace(
Two or more "eo"le or organi%ation must be involved# and each must have
needs and wants to be satisfied. If $ou are totall$ self sufficient in some
area there is no need for an e!change
The "arties to the e!change must be involved voluntaril$
Each "art$ must have something of value to contribute in the e!change# and
each must believe that it will benefit from the e!change in the case of an
election# for e!am"le # the thing of value are the votes of the electorate and
the re"resentation of the voters b$ the candidate.
The "arties must communicate with each other. The communication can take
man$ forms or ma$ even be through a third "art$# but without awareness
there can be no e!change.
These e!change conditions introduce number of terms that need elaboration. )irst
there are the "arties involved in the e!change. 'n one side of the e!change there
is the marketer. Marketer takes the initiative ton b$ tr$ing to stimulate and
facilitate e!changes. The$ develo" marketing "lans and "rograms and im"lement
them in the ho"e of creating an e!change. 'n the other side of the e!change is the
market which consists of "eo"le and organi%ation with needs to satisf$ and mone$
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to s"end. The marketing "rograms are directed at markets that either acce"t it or
re*ect the offer.
MARKETING DEFINED
+hat does the term marketing mean, Most of the "eo"le think of marketing onl$ as
advertising and selling but the$ are onl$ two functions of marketing# toda$
marketing must be understood not onl$ in the old sense of satisf$ing customer
needs. -elling occur onl$ when the "roduct is "roduced. .$ contrast marketing
starts long before the com"an$ has a "roduct marketing is the homework the
com"an$ undertakes to asses needs# intensit$ and determine weather the a
"rofitable o""ortunit$ e!ists so we can define marketing as
/.marketing is the tta! s"stem # $%siness a&ti'ities (esigne( t )!an* )ri&e*
)rmte an( (istri$%te +ant satis#"ing )r(%&ts t target the market in r(er
t a&hie'e rgani,atina! $-e&ti'es.
this definitions have two significant a""lications
)ocus( the entire s$stem of business activities should be customer oriented0
customer wants must be recogni%ed and satisfied.
1uration( marketing should starts with an idea a want satisf$ing "roduct and
should not end until customer wants are com"letel$ satisfied which ma$ be
after the e!change is made.
MARKETING MIX
Marketing mi! is the set of controllable# tactical marketing tools that the firm
blends to "roduce the res"onse to it wants in the target market. The marketing mi!
consists of ever$ thing the firm can do to influence the demand for the "roduct the
man$ "ossibilities can be collected in to four grou"s of variables known as four "2s
of marketing which are as follows0
3roduct
3rice
3romotion
3h$sical distribution
PRODUCT
It means the goods and service combination to the com"an$ offers to the target
market.
3roduct "lanning
4ariet$
5ualit$
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1esign
)eatures
.rand name
3ackaging
-ervice
PRICE
It is the amount of mone$ consumer have tto "a$ the seller to obtain a "roduct .
6ist "rice
1iscounts
allowances
"a$ment "eriods
credit terms
PROMOTION
It means activities that communicate the merits of the "roduct and to "ursuatethe
target audience to bu$ the "roducts it includes
Advertising
"ersonal selling
-ales "romotion
3ublic relation
3ublicit$
PH/SICA0 DISTRI1UTION
It include activities that make the "roduct available to the target audience
channels
coverage
assortments
location
inventor$
trans"ortations
logistics
IMPORTANCE OF MARKETING IN THE SOCIET/
Marketing ver$ im"ortant for the societ$ if it holds the societal marketing
conce"ts# the societal marketing conce"t hold that the organi%ation should
determine the needs# wants# and interests of the target market. it should than
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deliver and su"erior value to the customer in the that maintain or im"roves the
total wellbeing of the societ$ .
The societal marketing conce"ts &uestion weather the "ure marketing conce"t is
ade&uate in an age of environmental "roblems# resource shortages# ra"id "o"ulation
growth. +orldwide economic "roblem and neglected social service. It asks if the
firm that senses# serves# and satisfies individual wants is alwa$s doing what is best
for consumer and societ$ in the long run.
Not long after the marketing conce"t became a widel$ acce"ted a""roach to doing
business# it came under fire# for more than 78 $ears critics have "ersistentl$
charged that marketing ignores social res"onsibilit$. That s# although the marketing
conce"t hel" an organi%ation to achieve its goals but at the same time encourage
actions that conflict with societ$ best interests.
)rom one "oint of view these charges are true. A firm ma$ satisf$ its customer#
while also adversel$ affecting societ$. To illustrate# a "ul" and "a"er mill might be
su""l$ing its news"a"er customer with a &ualit$ news"a"er but at the same time it
might be "olluting air and water near the mill.
A firm social res"onsibilit$ is not onl$ satisf$ its customers but also take care of
the "eo"le living in the areas surrounding their firm b$ a""l$ing different rec$cling
and safe dis"osal of their waste matters in this wa$ the$ are a""l$ing the societal
conce"t of marketing.
MARKETING MIX
Marketing mi! is the combination of "roduct how it is distributed and "romoted and
its "rice. Together these four factors must satisf$ the needs of the target market
and at the same time meet the marketing ob*ectives of the com"an$. Marketing
manager must design the market mi! that will effectivel$ meet consumer needs and
accom"lish the organi%ational ob*ectives. Marketing mi! includes following four
com"onents
3roduct
3rice
3romotion
3h$sical distribution
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PRODUCT
-trategies are needed for deciding what "roducts to offer# managing e!isting
"roducts over time# and dro""ing failed "roducts# strategic decision must also made
regarding(
.randing
3ackaging
6abeling
Trade marks
+arranties
5ualit$
1urabilit$
All these attributes need "ro"er "roduct "lanning which concerns the e!tent to
which the com"an$ can market the same "roducts in different countries. and also
see the e!ternal internal environment of then countr$ in which the com"an$ is
o"erating. There are different conce"t which include
Pr(%&t e2tensin( it means same "roduct is being sold in different c"untries 9e.g.:
3e"si cola.
Pr(%&t a(a)tatin or modif$ing a "roduct which is selling successfull$ in one
market or countr$ to suit the uni&ue needs of the other countr$ 9e.g.: whitening
creams etc
In'entin means develo"ing a totall$ new "roduct for a foreign market.
Marketers must stud$ carefull$ the cultural and economic condition of an$ market
;foreign or domestic ;before "lanning "roduct for that "articular area.
<hallenges involved in the "roduct "lanning
Tra(emark in#ringement3 in man$ countries co"$ write laws are ver$ "oorl$
enforced as a result local firm manufactures "roducts with similar names and
"ackaging ver$ similar to the well known brands 9e.g.: chen one # chain one etc
G!$a! )irating of com"uter software# music and videos
Changing tren(s( Marketing must be aware of the ever changing tastes of the
target market.
PRICING
1etermining the "rice for the "roduct is a com"le! and interesting task# fre&uentl$
involving the trial and error decision making. it is more com"le! in international
marketing because(
<urrenc$ conversion
1ifficult$ in what must be included in the "rice 9such as "ost sale services: .
6ack of control over middle man "ricing
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T/PES OF PRICING
<ost "lus "ricing or setting "rice b$ adding an amount to "rovide a "rofit to
the cost of manufacturing a "roduct . it is relativel$ common in e!"ort
market of additional "h$sical distribution e!"enses # tariffs and other
e!"ort costs foreign "rices are relativel$ higher than domestic "rices for
the same "roducts.
.reak even anal$sis it is a situation with no "rofit and no loss situation. It is
the "oint where cost meet the revenue if the countr$
1um"ing it means selling the "roduct in the foreign market at "rices below
those charged for the same goods in there home markets. The "rices ma$
be lowered to meet foreign com"etition or to dis"ose off slow=moving
"roducts
A "roduct "rice is the ma*or determinant of the market demand of the "roduct as a
result the "roduct "rice has considerable bearing on com"an$2s revenue and net
"rofit. it is through "rice the mone$ comes to the com"an$ consumer rel$ heavil$
on "rice as the indicator of the "roduct &ualit$ es"eciall$ when the$ make "urchase
decision with incom"lete information so the$ think higher the "rice the better is
the &ualit$ of "roduct is "erceived. In determining the "rice of the "roduct we
should see following "oints(
All costs
1esired "rofit
<om"etition
<ustomer income
Ta!es
PH/SICA0 DISTRI1UTION
The distribution "art of the marketing mi! if of the neglected child. Man$ market
"laners tend to take e!isting distribution strategies and channels.
1istribution e!"enditure and "lans must alwa$s be coordinated with the other "arts
of the marketing mi!.
3roduct ownershi" has to be transferred somehow from the "roducer to the
consumer
Goods also must transfer from the "roduction site to the location where the$ are
needed. 1istribution role within the marketing mi! is getting the "roduct to its
market0 all res"onsibilit$ rests with the distribution channels.
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Getting the "roduct to market entails a number of activities# most im"ortantl$
arranging from its sales 9and transfer of title: from the "roducer to the final
customer.
Distri$%tin &hanne!s
A distribution channel consists of the set of "eo"le and firms involved in the flow
of title to a "roduct as it moves from the "roducer to the final customer or
business users. A channel of distribution alwa$s includes both the "roducer and the
final customer for the "roduct in its "resent form as well as an$ middle man 9such
as retailers and wholesalers:.
.esides "roducer# middleman and final customer other institution aid the
distribution "rocess# among these intermediaries are banks# insurance com"anies#
storage firms and trans"ortation com"anies.
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CHAPTER NO 4
PROMOTION
)rom the marketers "ers"ective "romotion serves three essential roles(
It in#rms brand will be failed if no one knows it. Therefore the "roducer
must inform middlemen as well as the ultimate consumer.
Pers%a(es it is more im"ortant when there are man$ com"etitors to
convince the customer.
Remin(s It is used to remind the customer about $our "roduct which is
alread$ e!isting in the market and ver$ successful.
PROMOTIONA0 METHOD
There are following five methods of "romotion
Persna! se!!ing is a direct "resentation of a "roduct to the "ers"ective
customer
A('ertising is a non "ersonal communication "aid for clearl$ identified
s"onsor "romoting ideas organi%ation or "roduct.
Sa!es )rmtin it include activities such as events s"onsorshi"# fre&uenc$
"rograms# contests# trade shows and in store dis"la$s.
P%$!i& re!atin it involves new stories about a "roduct or organi%ation it a
s"ecial form of "romotional tool.
PROMOTION
'ne of the attribute of the free market s$stem is the right to use communication
as the tool of influence. In our socioeconomic s$stem# that freedom is reflected in
the "romotional efforts b$ business to influence the feeling and believes and
behavior of "ros"ective customer# com"an$ uses "romotional efforts to "rovide
information for the decision makers bu$ing decision "rocess# to assist in
differentiation its "roducts and to "ersuade "otential bu$ers.
PROMOTION AND MARKETING
)or the marketers "ers"ective "romotion serves three essential roles > it informs#
"ersuades and reminds "ers"ective and current customers and other selected
audience about a com"an$ and its "roducts. The relative im"ortant of these roles
varies according to the circumstances faced b$ the com"an$. .rand will be failed if
no one knows it. Therefore the "roducer must inform middlemen as well as the
ultimate consumer or business users about the "roduct# wholesalers must inform
retailers and retailers must inform customers. As the number of the "otential
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customers grows and the geogra"hic dimensions of a market e!"and# the "roblem
and cost of informing the market increase.
3ersuasion is more im"ortant when there are man$ com"etitors to convince the
customer the intense com"etition among different industries as well as different
firms in the same industr$# "ut tremendous "ressure on the "romotional "rogram of
the sellers. Remind is used to remind the customer about $our "roduct which is
alread$ e!isting in the market sellers band ver$ successful. sellers bombard the
market "lace with thousand of messages ever$ da$ in the ho"e of attracting new
customers and establishing the market for the new "roducts.
PROMOTIONA0 METHODS
3romotion in what ever form it takes is an attem"t to influence. There are four
forms of "romotional methods( "ersona0 selling# advertising# sales "romotion# and
"ublic relations
Each has distinct features that determine the role it can "la$ in a "romotion
"rogram.
3ersonal selling( is the direct "resentation of the "roduct to the a
"ros"ective customers b$ a re"resentative of the organi%ation selling it.
3ersonal selling takes face to face or over the tele"hone# or it ma$ be
directed to the sales "erson or a final customer # across all the organi%ation
more mone$ is s"end on "ersonal selling than on an$ other form of "romotion
Advertising is non "ersonal "aid for b$ a clearl$ identified -"encer
"romoting ideas # organi%ation or "roduct# the most familiar outlets for ads
are the broadcast 9T4 and radio: and "rint 9 news"a"er and maga%ines: media
. owever there are man$ others advertising vehicles# from billboards to T=
shirts and# more recentl$# the internet.
-ales "romotion is demand stimulating activit$ designed to su""lement
advertising and facilitate "ersonal selling. It is "aid for the s"onsor and
fre&uentl$ involves a tem"oraril$ incentive to encourage a sale or "urchase.
Man$ sales "romotions are directed at consume. The ma*orit$ however are
designed to encourage the com"an$2s sales force or other members of the
sales force of a distribution channel to sell "roducts more aggressivel$.
+hen the "romotion is directed towards the member of the distribution
channel it is called trade "romotion. included in the sales "romotion are
number of activities # such as event s"onsorshi"# fre&uenc$ "rogram#
contests# trade shows# in store dis"la$s# rebates# sam"les# "remium#
discounts and cou"ons.
3ublic relations encom"ass a wide 4arit$ of communication efforts to
contribute to the generall$ favorable attitudes and o"inions toward an
organi%ation and its "roducts. ?nlike most advertising and "ersonal selling# it
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does not include a s"ecific sales message. The target ma$ be customers#
stockholders# a government agenc$# or a s"ecial= interest grou". "ublic
relation can take man$ forms# including newsletters# annual re"orts# lobb$ing#
and su""ort of charitable or civic events
THE COMMUNICATION PROCESS AND PROMOTION
<ommunication is the verbal or non verbal transmission of information between
someone wanting to e!"ress an idea and some else e!"ected to get the idea#
because "romotion is the form of communication much can be learned about
structuring effective "romotion b$ e!amining the communication "rocess.
E0EMENTS OF COMMUNICATION
A message
A source of message
A communication channel
A receiver
THE COMMUNICATION PROCESS IN PROMOTION
The information that the sending source is sending must first be encoded in
to a transmittable form# in marketing this means translating an idea
'nce the message has been transmitted through an$ communication channel
the message must be decoded # or given meaning b$ the receiver the
received message ma$ be what the sender intended or something else that is
less desirable # de"ending on the reci"ient frame of reference
If the message has been transmitted successfull$# there is some change in
the receiver2s knowledge# believe or feelings# as a result of this change# the
receiver formulate a res"onse# the res"onse could be non verbal# verbal or
behavioral.
The res"onse serves as a feedback# telling the sender whether the message
was received and hoe it was "erceived b$ the reci"ient. Through feedback
the sender can learn what a communication has accom"lished. Then a new
message can be formulated and the "rocess began again.
All stages of the communication "rocess can be affected b$ noise= that is
an$ e!ternal factor that interferes with the successful communication.
DETERMINING THE PROMOTIONA0 MIX
A "romotional mi! the marketers combination of advertising# "ersonal selling# sales
"romotion# and "ublic relations. An effective "romotion is a critical "art of all
marketing strategies and involves number of strategies which are as follow(
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15 Target A%(ien&e
45 O$-e&ti'es # )rmtin e##rt
65 Nat%re # the )r(%&t
75 Stage in the )r(%&t !i#e &"&!e
85 Am%nt # mne" a'ai!a$!e #r )rmtin
TARGET AUDIENCE
1ecision on the "romotion mi! is greatl$ effected b$ the target audience. the
target ma$ final customer# who would be further defined as e!isting customers or
new "ros"ects. -ome marketers direct much of there efforts at decision makers
rather than the actual "urchasers. In some cases the target consists of middleman
in order to gain their su""ort in distributing a "roduct or in the case of the
com"an$ about to make a stock offering# the investment communit$
There are two t$"es of strategies involved in this
PUSH STRATEG/ means a channel member directs its "romotion "rimaril$ at the
middle men that are the ne!t link forward in the distribution channel. In this the
"roducer "ushes the retailers to bu$ their "roducts in return the retailers "ush the
customers.
PU00 STRATEG/ the "romotion is directed toward end users > usuall$ ultimate
consumers. The intention is to motivate them to ask retailers about the "roduct.
The retailer in return will re&uest the "roduct from the wholesalers# and the whole
sellers in return order it from the "roducer for the "roduct.
PROMOTION 19ECTI:ES
A target audience can be in an$ of the si! stages of bu$ing readiness. These stages
are
Awareness( at the awareness stage the seller2s task is to let the bu$er know
that the brand or the "roduct e!ists. ere is the ob*ective is to built
familiarit$ with the "roduct and the brand name.
Knowledge0 Knowledge goes be$ond awareness to learning about the "roduct
features. In the market with the several well established brands#
enter"rise had to find a wa$ to &uickl$ and easil$ inform consumers how its
service is uni&ue.
6iking( liking refers to how the market feels about the "roduct. 3romotion
can be used to move the knowledgeable audience from being indifferent to
the liking brand. A common techni&ue is to associate the item with an
attractive s$mbol or "erson. 'nline s"orting goods retailers.
3reference( creating "reference involves distinguishing among brands such
that that the market finds $our brands of the same "roduct# but the
customer can2t make a decision until one brand is "referred over the
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alternatives. Ads that make direct com"arisons with the com"etition are
intended to create a "reference.
<onviction( the "romotion ob*ective here is to increase the strength of the
bu$ers need. Tr$ing a "roduct and e!"eriencing the benefits that comes
from it are ver$ effective it conviction to own it.
3urchase( "urchase can be dela$ed or "ost"oned indefinitel$ even for
customer who is convicted the$ should bu$ a "roduct.
NATURE OF THE PROUCT
-everal "roduct attributes influence the "romotion mi!.
?nit value( A "roduct with low unit value is usuall$ relativel$ uncom"licated#
involves little risk for the bu$ers# and must a""eal to a mass market to
survive.. As a result# advertising would be the "rimar$ "romotional tool. In
contrast# high unit value "roduct is often com"le! and e!"ensive. These
features suggests for "ersonal selling.
<ustomi%ation( if the "roduct must be ada"ted to the individual customer2s
needs# "ersonal selling is necessar$. Thus $ou would e!"ect to find an
em"hasis on "ersonal selling for something like home remodeling or an
e!"ensive suit for the clothing. owever# the benefits of most
standardi%ed "roducts can be effectivel$ communicated through
advertising.
3resale and "ost sale service( 3roducts that must be demonstrated# for
which there are trade=ins# or that re&uire fre&uent servicing to sta$ in
good working order lend themselves to "ersonal selling.
STAGE IN THE PRODUCT 0IFE C/C0E
3romotion strategies are influenced b$ a "roduct2s life=c$cle stage. +hen a new
"roduct is introduced# "ros"ective bu$ers must be informed about its e!istence and
its benefits# and middlemen must be convinced to carr$ it. Thus both advertising
and "ersonal selling are both critical in the "roduct2s introductor$ stage. At
introduction a new "roduct also ma$ be something of a novelt$# offering e!cellent
o""ortunities for "ublicit$. 6ater# if a "roduct becomes successful# com"etition
intensifies and more em"hasis is "laced on "ersuasive advertising.
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FUNDS A:IA0A10E
The amount of mone$ available for "romotion is often the determinant of the mi!.
A business with am"le funds can make more effective use of advertising than a firm
with financial resources. -maller brand or com"anies with small amount of funds for
"romotion can rel$ on "ersonal selling.
CHAPTER NO 6
PERSONA0 SE00ING
;HAT IS PERSONA0 SE00ING<
The "ersonal selling is the "ersonal communication of information to "ersuade a
"ros"ective customer to bu$ a "roduce or service or idea# it is the ma*or
"romotional tool used to reach this goal.
The effort of sales "eo"le go far be$ond sim"l$ making transactions# the$ also
include following
E!"laining "roduct benefits
1emonstrating the "ro"er o"eration of the "roduct
Educating customers about the new "roduct
Answering &uestions and res"onding to the ob*ections
'rgani%ing and im"lementing "oint of "urchase "romotion.
Arranging the terms of "urchase
)ollowing u" the "urchase to ensure that customers are satisfied
1evelo"ing the relationshi" with the bu$ers
<ollecting market and com"etitive information to im"rove marketing strategies
3ersonal selling is mostl$ used when(
The market is concentrated either geogra"hicall$ # in a few industries or a
few large customers
The "roduct has a high unit value# &uite technical in nature or re&uires
demonstration.
The "roduct must be fitted to the individual customers needs as in case of
insurance or investments
The "roduct is in the introductor$ stage of its life c$cle
The organi%ation does not have enough mone$ for an ade&uate advertising.
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FEATURES = CHARACTERISTICS OF PERSONA0 SE00ING
)ollowing are different features which are "resent in the "ersonal seller
-ales "eo"le re"resent their organi%ation in the outside world attitudes
about a com"an$ and its "roduct are often based on the im"ression left b$
sales"eo"le
-ales "eo"le t$"icall$ o"erate with little or no direct su"ervision therefore
to be successful sales"eo"le must be creative and "ersistent
-ales"eo"le are authori%ed to s"end com"an$ funds. the$ s"end mone$ for
trans"ortation# food# housing# entertainment# and other e!"enses
-ales"eo"le must fre&uentl$ travel a considerable amount
-ales"eo"le often have "rofit res"onsibilit$ toda$2s sales"erson do much of
the strategic "lanning for their individual territories. In coo"eration with
sales manager# the$ decide what target market the$ "ursue# how the$ will
deal with each market segment.
FUNDAMENTA0S OF SUCCESSFU0 PERSONA0 SE00ING
-ales "eo"le must have greater fle!ibilit$# he must tailor sales "resentations
to fit the needs and behavior of the individual customers
e must have the "otential of e!"laining the "roduct benefits# answer
&uestions of his customers
e must be truthful
e must behave in a reliable manner
Must seek similarit$ of "ersonalit$ between $ou and the customer and the
commodit$ interest and goals
-ales "erson must see whether the "erson or his "ros"ects has the "otential
to "a$ for the "roduct or not.
RO0E OF PERSONA0 SE00ING IN MARKETING
3ersonal selling is the inter"ersonal arm of "romotion mi!. Advertising
consists of one=wa$# non "ersonal communication with target consumer grou" in
contrast "ersonal selling involves two wa$ "ersonal communications between sales
"eo"le and individual consumer =weather face to face# b$ tele"hone# through video
conferences# or b$ other means.
3ersonal selling can be more effective than advertising in more com"le!
situation like e!"laining "roduct benefits# demonstrating the "ro"er o"eration of
the "roduct# educating consumers about new "roducts# answering different
&uestions about their "roducts and clear an$ doubts about it# organi%ing and
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im"lementing "oint of "urchase "romotion and also arranging the terms of sale#
follow u" the "urchase to se that consumer is satisfied# also develo" such a kind of
"ersonal relationshi" that the consumer can trust $our "roduct also it is ver$
im"ortant because through this sales "erson can collect ver$ useful com"etitive
information.
-ales "eo"le can also work with whole sellers and retailers to gain their
su""ort and to hel" them be more effective in selling the com"an$2s "roduct the$
serve as a critical link between a com"an$ and its consumer.
-ales "eo"le also re"resent consumer to the com"an$# the$ learn about the needs
of the consumer and work with other in the com"an$ to create greater consumer
value.
SCOPE OF PERSONA0 SE00ING
In the business there are two t$"es of "ersonal selling activities
Inside selling
'utside selling
Insi(e se!!ing
It involves retail stores. In this grou" we include the sales "erson in the
stores and the sales "eo"le at the catalog retailers who take tele"hone orders. Also
included are tele"hone orders takes at manufactures and wholesalers# most of
whom taking e!isting customers routine orders over the tele"hone.
O%tsi(e se!!ing
-ales "eo"le go to the consumer. The$ make contact b$ tele"hone or in "erson.
Most outside sales force usuall$ re"resents "roducers or wholesaling# middleman#
selling to the business users and not to the house hold consumers. In outside
selling# we also include
@. 3roducers whose re"resentatives sell directl$ to the household consumers
9e.g.: insurance com"anies.
A. Re"resentatives of retail organi%ations who go to the consumer2s house to
demonstrate a "roduct# give advice# or "rovide an estimate such as sales
"eo"le for some furniture stores and home heating and air=conditioning
retailers.
B. Re"resentative of non "rofitable organi%ations 9e.g.: charit$ funds raisers#
workers for "olitical candidate.

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CHAPTER NO 7
;HAT MAKES A GOOD SA0ES PERSON
The term sale re"resentative covers a broader range of "ositions in our econom$.
The "osition range from to the least to the most creative t$"e of selling
-ales force "erforms one or more of the following tasks for their com"anies(
Prs)e&ting( -ales re"resentatives find and cultivate new customers
Targeting3 the$ decide how to allocate their scarce time among "ros"ects
and customers
Cmm%ni&ating3 sales re"resentatives skillfull$ communicate information
about the com"anies "roducts and services
Se!!ing3 sales "erson know the art of the salesmanshi"# a""roaching#
"resenting# answering ob*ections# and closing sales.
Ser'i&ing3 -ales re"resentatives "rovide various services to the customers >
consulting on their "roblems rendering technical assistance# arranging
financing and e!"editing deliver$
In#rmatin gathering3 -ales re"resentative conduct market research and
intelligences work and fill in call re"orts
A!!&ating3 -ales re"resentatives decide on which customer to allocate
scarce "roducts during "roduct shortages.
MOTI:ATING SA0ES FORCE
Motivation is the "rocess through which hidden needs are aroused.
-ome sales "eo"le will "ut forth their best effort without an$ coaching from
the management.
)or them selling is the most fascinating in the world. The$ are ambitious and
self status# but ma*orit$ of sales re"resentative re&uire encouragement and
s"ecial incentives from the management to work at the best level. This is
s"eciall$ true of field selling for the following reasons(
The nat%re # the -$
The selling *ob is one of fre&uent frustrating# sales re"resentatives usuall$
work alone# their laws are irregular and the$ are other awa$ from home# the$
confront aggressive# com"eting sales re"resentative# the$ do not have the
authorit$ to do what is necessar$ to in the account the$ lose large orders that
the$ have worked hard to obtain.
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H%man nat%re
Most "eo"le o"erate below ca"acit$ in the absence of s"ecial incentives such as
financial gain or social recognition.
Persna! )r$!ems
-ales re"resentatives usuall$ "reoccu"ied with "ersonal "roblems such as
sickness in the famil$# marital discord or debt etc.
MOTI:ATION MODE0
Motivation effort 3erformance reward
satisfaction
The above model suggest that higher the sales "erson motivation the greater is
his or her effort # greater effort will lead to greater "erformance which will
lead to greater rewards and greater rewards will lead to greater satisfaction
which will again lead to reinforce motivation.
The model im"lies following
-ales manager must be able to convince sales "eo"le that the$ can sell
more b$ working harder or being trained to work smarter. .ut if sales
are largel$ determined b$ economic conditions or com"etitive action this
linkage is undermined.
-ales manager must be able to convince sales "eo"le that the rewards
for better "erformance are worth the e!tra effort # but if the rewards
are too small or of the wrong kind the linkage is undermined
DISCIP0INED ;ORK
+hat ever the incentive "ackage if the sales "erson aren2t organi%ed and focused#
and if the$ don2t work hard the$ are not be able to meet the ever increasing
demand of the customers these da$s# so following "oints are ver$ im"ortant.
@. -ET G'A6-
)irst of all sales re"resentatives has to set goals for their selves# what the$
want achieve in the future according to that than the$ make "lans
@. MAKE 36AN-
3lanning is ver$ im"ortant in the sales "erson *ob# the$ make schedule for the
future great sales "erson are ver$ conscious about la$ing down detailed# organi%ed
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"lans than the$ follow through in a timel$ disci"lined wa$ 9e.g.: if the$ sa$ that the$
are going to make a follow u" call on a customer in si! months# $ou can sure that
the$ will be on the door ste" in si! month.
A. +'RK AR1
The$ have to work hard because this *ob is ver$ demanding and the$ have to work in
irregular hours travel a lot and most of the times have to work alone and awa$ from
home.
B. -E6E<TING TE A33R'3RIATE TE<NI5?E
A ke$ ste" in the "ersonal selling is deciding which device will hel" the organi%ation
reach its "romotional goals . some factors are
Nature of the target audience( weather target auidiance re lo$al to
the com"an$ brand if not higher level of "ersonal selling and
convincing techni&ues are re&uired
Nature of the "roduct( does the "roduct level its self to sam"ling#
demonstration or multi"le item "urchase
<urrent economic conditions( sales re"resentatives must also see
what the economic conditions of the countr$ are. 3remium and
rebates are good in "eriods of recessions and inflation.
RE0ATIONSHIP MARKETING
It is the "rocess of creating # maintaining and enhancing strong# value laden
relationshi" with customers and other stake holders
Most com"anies are toda$ moving awa$ from transaction marketing with the
em"hasis on making a sale. Instead the$ are "racticing relationshi" marketing=
which em"hasi%es maintaining "rofitable long term relationshi" with customers b$
creating a su"erior customer value and satisfaction.
The$ are reali%ing that when o"erating in a maturit$ market and facing
stiffer com"etition it cost a lot more to attract new customers from com"etitors#
than to kee" current customers.
Toda$ customers are and global the$ "refer su""liers who can sell and
deliver a coordinated set of "roducts and services to man$ locations.
The$ favor su""lies who can &uickl$ solve their "roblems that arise in different
areas of countries of world and who can closel$ work with customers team to
im"rove "roducts and "rocess.
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?nfortunatel$# some com"anies are not setu" for the develo"ments0 the$
often sell their "roducts through se"arate sales force# each working inde"endentl$
to close sales. Their technical "eo"le ma$ not be willing to lend time to educate a
customer their engineer design and manufacture and "eo"le ma$ have the attitude
/its our *ob to make good "roducts and the sales "erson to sell them to customersC
however other com"anies recogni%ing and kee"ing good relations with customers
than making good "roducts and directing the sales force to close lots of sales its
re&uires a careful coordination whole com"an$ effort to create value laden
satisf$ing# relationshi" with im"ortant customers.
Relationshi" marketing is based on "remise that im"ortant accounts need
focus and ongoing attention. -tudies have shown that the best sales "erson are
those who are customer "roblem solver and relationshi" builders good sales "erson
working with ke$ customers do more than call when the$ think a customer might be
read$ to "lace an order
The$ call and visit fre&uentl$ works with customers to hel" solve customer
"roblems and im"rove its business# and take an interest in customers as "eo"le.
ere are some ste"s in establishing relationshi" marketing in the com"an$(
Identif$ the ke$ customers meriting relationshi" marketing( The com"an$
can chose the five or ten largest customers and designate them for
relationshi" marketing. Additional customers can be added who show
e!ce"tional growth.
Assign a skilled relationshi" manager to each ke$ customer( the sales "erson
servicing to the customer should receive training in relationshi" marketing.
1evelo" a clear *ob descri"tion for relationshi" managers( It should describe
their re"orting relationshi"s# ob*ectives# res"onsibilities# and evaluation
criteria. The relationshi" manager is res"onsible for the client # is the focal
"oint for all information about the client # and is the mobili%er of com"an$
services for the client. Each relationshi" manager will have onl$ one or few
relationshi"s to manage.
A""oint an overall manager to su"ervise the relationshi" managers( this
"erson will develo" *ob descri"tion# evaluation criteria # and resource su""ort
to increase relationshi" managers effectiveness.
Each relationshi" manager must develo" long= range and annual relationshi"
"lans. The annual relationshi" "lan will state ob*ectives# strategies# s"ecific
actions and re&uired resources.
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CHAPTER NO 8
THE PERSONA0 SE00ING PROCESS
Most com"anies take a customer= oriented a""roach to "ersonal selling as
consisting of several that the sales "erson must master. These ste"s focus on
the goal of getting new customers and obtaining orders from them# however
most sales "erson mush of their account on e!isting and building long term
customer relationshi"s.
STEPS IN THE SE00ING PROCESS
Most selling "rogram view the selling "rocess as consists of several ste"s
that the sales "erson must master. These ste"s focus on the goals of getting the
new customers and obtain orders from them. 3ersonal selling involves following
ste"s
Prs)e&ting an( >%a!i#"ing
Prea))ra&h
A))ra&h
Presentatin an( (emnstratin
Han(!ing $-e&tins
C!sing
F!!+?%)
PROSPECTING
The first ste" in the selling "rocess is to identif$ "ros"ects. Although the com"an$
will tr$ to su""l$ leads# sales re"resentatives tr$ to make their own leads can be
develo"ed in the following wa$s(
Asking current customer about the names of the "ros"ects
<ultivating other referral sources# such as su""liers# dealers# non com"eting
sales "ersons# bankers and trade association e!ecutives.
Doining organi%ations to which sales "erson belongs.
Engaging in the s"eaking and writing activities.
E!amining data sources 9news"a"ers and directories: in search of names.
?sing the tele"hone and mail to find leads.
1ro""ing in unannounced on various offices.
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@UA0IFICATION
-ales re"resentatives must needs skills in screening out "oor leads . "ros"ects can
be &ualified b$ e!amining the following(
)inancial abilit$
6ocation
4olume of business
-"ecial re&uirement
6ikelihood of continuous business.
PREAPPROACH
.efore calling u"on the customer it is ver$ im"ortant that the sales "erson should
learn as mush as "ossible about the organi%ation 9what it needs# who is involved in
the bu$ing: and its bu$ers 9their characteristics and bu$ing st$le:# this ste" is
known as "re=a""roach. The sales "erson can consult standard industr$ and online
sources# ac&uaintances# and other to learn about the com"an$. The sales "erson
should set call ob*ectives# which ma$ be &ualif$ing the "ros"ects# to gather
information and to make an immediate sale.
Another ste" is to decide on the best a""roach# which might be a "ersonal visit # a
"hone call# or a letter. The best timing should be considered carefull$ because man$
"ros"ects are busiest at certain time. )inall$ the sales "erson should give a thought
to an overall strateg$ for the account.
APPROACH
The sales "erson should know hoe to greed the customer tom get the relation u" to
the start. This involves the sales "erson a""earance# the o"ening lines# and the
follow u" remarks and the o"ening lines should be "ositive for e!am"le# /Mr.Ali I am
-alem Ahmed from the 3< hotel 3eshawar and a""reciate $our willingness to see
me. I will do m$ best to make this visit "rofitable and worthwhile for $ou and $our
com"an$ this might follow b$ ke$ &uestions and active listening to understand the
bu$er and his her needs.
PRESENTATION AND DEMONSTRATION
1uring the "resentation ste" of the selling "rocess sales "erson tells the "roduct
stor$ to the bu$er# showing how the "roduct will make or save mone$. the sales
"erson describe the "roduct features and concentrate on the consumer2s need and
benefits. ?sing need=satisfaction a""roach# the sales "erson starts with the search
for consumer needs b$ getting the consumer to do most of the talking.
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This a""roach calls for good listening and "roblem solving skills. +ith the "ro"er
"re a""roach information the sales "erson can design a sales "resentation that will
attract the "ros"ects attention. The sales "erson will tr$ to hold the "ros"ects
interest while building a desire for the "roduct and when the time is right # attem"t
to stimulate action b$ closing the sale . this a""roach is called AI1A 9 an acron$m
formed b$ the first letters of Attention# Interest# 1esire And Action:# is used b$
man$ organi%ation.
After attracting the interest of the "ros"ects it is ver$ im"ortant to hold and
stimulate desire for the "roduct with sales "resentation. The sales "erson must
alwa$s know how the "roduct will benefit the "ros"ect.
<om"anies have develo"ed three st$les of "resentation.
Canne( a))ra&h is the oldest a""roach in memori%ation of sales talk#
covering the man "oint. It is based on stimulus res"onse thinking( that is the
bu$er is "assive and can be moved to "urchase b$ the us of right stimulus
words# "ictures# terms and actions .canned a""roach is mostl$ used in door to
door and tele"hone selling.
Frm%!ate( a))ra&h is also based on stimulusE res"onse thinking# but
identifies earl$ the bu$er2s needs and bu$ing st$les and than use a
formulated a""roach to this t$"e of bu$er the sales "erson initiall$ draws
the bu$er into the discussion in a wa$ that reveals the bu$ers needs and
attitudes.. then the sales "erson moves into formulated "resentation that
shows how the "roduct will satisf$ the bu$er needs. This is not canned
a""roach but follow a general "lan.
Nee( satis#a&tin a))ra&h starts with a search for customer2s real needs
b$ encouraging the customer to do most of the talking. This a""roach calls
for good listening and "roblem solving skills. The sales "erson than the sales
"erson takes on the role knowledgeable business consultant ho"ing to hel"
the customer save mone$ or make more mone$.
-ales "resentation can be im"roved b$ demonstration aids such as booklets# fli"
charts# slides# movies and audio >and video cassettes during the demonstration## the
sales "erson can draw five influence strategies.
0egitima&". The sales"erson em"hasi%es the re"utation and e!"erience of
his or her com"an$.
E2)ertise5 The sales "erson shows dee" knowledge of the bu$er2s situation
and com"an$2s "roduct# doing this would being overl$ /smartC.
Re#erent )+er5 the sales "erson build on an$ shared characteristics#
interests# and ac&uaintances.
Ingratiatin5 The sales "erson "rovides "ersonal favor9 a free lunch#
"romotional gratuities: to strengthen affiliation and reci"rocit$ feelings.
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Im)ressin5 the sales "erson mFnages to conve$ favorable "ersonal
im"ressions.
O:ERCOMING O19ECTIONS
<ustomer almost alwa$s "ose ob*ections# during the "resentation or when asked for
an order. This resistance can be "s$chological or logical.
Ps"&h!gi&a! Resistan&e includes
Resistance to interference
3reference for established su""l$ source or brands
Reluctant to giving u" something
1islike of making decision
?n"leasant association about the other "erson
Neurotic attitude toward mone$
0gi&a! resistan&e includes
'b*ection to "rice
1eliver$ schedule
<ertain "roduct or com"an$ characteristics.G
To handle these ob*ections the sales re"resentatives maintains a "ositive a""roach
b$(
Asking the bu$er to clarif$ the ob*ections
5uestions the bu$er in a wa$ that the bu$er has to answer his or her own
ob*ection
1enies the validit$ of the ob*ections
Turn the ob*ections in to reason for bu$ing
C0OSING
Now the sales "erson attem"ts to close the sale. -ome sales "eo"le do not get to
this stage or do not do it well. The$ lack confidence or feel uncomfortable about
asking for an order or do not recogni%e the closing signal from the bu$er# including
"h$sical actions# statements# comment# and &uestions.
-ales "erson can use one of the following techni&ues
The$ can ask for an order
'ffer to hel" the secretar$ write an order
Ask whether the bu$er wants A or . to make minor choices such as the color
or si%es etc.
Indicate what the bu$er will lose if the order is not "laced now
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The sales "erson might offer the bu$er s"ecific inducements to close# such
as a s"ecial "rice# an e!tra amount no e!tra charge or a gift
FO00O; UP AND MAINTAINANCE
This last ste" is necessar$ if the sales "erson wants to ensure customer
satisfaction and re"eat business this includes(
Immediatel$ after closing the sales "erson should com"lete an$ necessar$ details
on deliver$ time# "urchase terms# and other matters
The sales "erson should arrange a follow u" call or visit when initial order is
received # to make sure there "ro"er installation# instructions and servicing# this
visit should detect an$ "roblems# and also ensures the sales "erson interest.
The sales "erson should develo" an account maintenance "lan to make sure that the
customer is not forgotten or lost.
CHAPTER NO A
CONSUMER 1U/ING 1EHA:IOR
?ltimate consumers bu$ goods an services for their own "ersonal use there are
millions of bu$ers and household in 3akistan and the$ s"end millions of ru"ees on
goods and service. The effort of man$ marketers is focused on these "otential
customers.
The consumer market is not onl$ large but it is also ver$ d$namic. Thus# the first
challenge is to gain understanding of what this market look like and how it is
changing. To develo" an a""reciation of this d$namic consumer market# we will
e!amine its geogra"hical distribution# several demogra"hic and some re"resentative
behavior.
GE'GRA3I<A6 1I-TRI.?TI'N
The r%ra! ))%!atin re"resents "eo"le living in the villages and other
remote areas.
The %r$an ))%!atin re"resents "eo"le living in the cities and other
develo"ed areas.
The s%$%r$an ))%!atin re"resents "o"ulation living in the suburbs to avoid
the congestion and noise and "ollution of the develo"ed cities.
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CONSUMER DEMOGRAPHICS
Age there are different "eo"le of different age grou"s in the consumer
market.
)amil$ life c$cle stages# the various forms families can take over timeare
ma*or determinant of behavior. different stages are(
@. .atchelor stage( $oung# single "eo"le
A. $oung married cou"le with no children
B. full nest I( $oung married cou"le with children
7. single "arent( $oung or middle age "eo"le with de"endent children
H. divorced and alone( divorced without de"endent children
I. middle=aged married( middle aged married cou"le with no children
J. full nest II( middle=aged married cou"le with de"endent children
K. em"t$ nest( older married cou"le with no children livig with them
L. 'lder single( single "eo"le still working or retired.
Education and Income( the$ both "la$ a ver$ im"ortant role in determining
the behavior of the consumers# because e!"enditure "atterns differs due to
different incomes "eo"le have and also students at different stage of their
studies have different bu$ing "atterns.
Race and Ethnicit$ also affects the bu$ing "atterns of the customers.
CONSUMER 1U/ING BDECISION PROCESS
To deal with the marketing environment and make "urchases# consumer engages in a
decision "rocess. 'ne wa$ to look at the "rocess is to view as "roblem solving. +hen
faced with the "roblem solved through the "urchase. The consumers goes through
a series f logical stages to arrive at the decision# so the stages of the consumer
bu$ing > decision "rocess are as follows(
Nee( re&gnitin the consumer is moved to action b$ a need. ever$ one has
unsatisfied needs and wants that create discomfort. -ome needs can be
satisfied b$ ac&uiring and consuming goods and services. Thus the "rocess of
deciding what to bu$ begins when a need that can be satisfied through
consum"tion becomes strong enough to motivate a "erson
Identification of alternatives once the need has been recogni%ed# the
consumer must ne!t identif$ the alternatives ca"able of satisf$ing the
needs. T$"icall$ alternative "roducts are identified first # and then
alternative brands
Evaluation of alternatives this means that how the consumer "rocess the
information to arrive at brand choices. ?nfortunatel$# consumer does not
use a sim"le and single evaluation "rocess in all bu$ing situation. Instead#
several evaluation "rocesses are at work.
.(M.Com MCS M.A !conomics) " #' "
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Then consumer arrives at attitudes towards different brands through some
evaluation "rocedure. ow consumer goes about evaluating "urchase
alternatives de"ends on the individual consumer and the s"ecific bu$ing
situation. in some cases consumers use careful calculation and logical
thinking. At other times# the same consumers do little or no evaluation
instead the$ bu$ on im"ulse or rel$ on intuition. -ometimes consumers take
bu$ing decision on their own0 sometimes the$ turn to friends# consumer
guides# or sales "eo"le for advice. Marketers should stud$ bu$ers to find out
how the$ actuall$ evaluate brand alternatives. If the$ know what evaluative
"rocesses go on # marketers can take ste"s to influence the bu$er2s decision.
3urchase 1ecision in the evaluation stage the consumer ranks
different brands and forms "urchase intensions .generall$# the
consumer2s "urchase decision will be to bu$ the most "referred
brand# but two factors can come between the "urchase intention and
the "urchase decision. The first factor is the attitude of others. The
second factor is une!"ected situational factors. The consumer ma$
form a "urchase intention based on the factors such as e!"ected
income# e!"ected "rice# and e!"ected "roduct benefits. owever
une!"ected events ma$ change the "urchase intention.
3ost "urchase behavior the marketer2s *ob does not end when the
"roduct is brought. After "urchasing the "roduct# the consumer will
be satisfied or dissatisfied and will engage in "ost "urchase behavior
of interest to the marketer. +hat determine this whether the bu$er
is satisfied or dissatisfied with the "urchase, The answer lies in the
relationshi" between the consumer e!"ectations and the "roducts
"erceived "erformance. If the "roduct falls short of the
e!"ectations the consumer is disa""ointed0 if it meets the
e!"ectation the consumer is satisfied0 if it e!ceed e!"ectation# the
consumer is delighted.
The larger the ga" between e!"ectations and the "erformance the larger is
the consumer2s dissatisfaction. This suggests that the sellers should make
"roduct claims that faithfull$ re"resents the "roduct "erformance so than
the bu$ers are satisfied.
INFORMATION AND THE PURCHASE DECISION
3urchase decision re&uires information. ?ntil consumer know what "roducts and
brands are available# what features and benefits the$ offer# who sells them and
what "rices# and where the$ can be "urchased# there won2t be a decision "rocess
because there won2t be an$ decision to make.
.(M.Com MCS M.A !conomics) " #( "
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There are two sources of information >the commercial environment and social
environment. The commercial environment consists of all marketing organi%ations
and individuals that attem"t to communicate with the consumers. It includes
manufacturers# retailers# advertisers# and sales "eo"le whenever an$ f them engage
in efforts to inform or "ersuade. Advertising is the most familiar t$"e of
commercial information almost billion of ru"ees are s"ent on advertising ever$ $ear.
<ommercial sources also include retail stores clerks# business websites# and
tele"hone solicitors as well as consumer consumers "h$sical involvement with
"roducts such as trial "roduct use and sam"ling.
The social environment consists of famil$# friends# and ac&uaintances who directl$
or indirectl$ "rovides information about the "roduct# to a""reciate the marketing
significance of these social sources# consider how often $our conversation with $our
friends and famil$ members deal with "urchase $ou are considering to have made.
The most common social information is the word of mouth communication > two or
more "eo"le discussing a "roduct. /<hat roomC on the Internet has become "o"ular
"laces for consumer with similar interests to gather and e!change information.
'ther social sources include observing other using "roducts and e!"osure to the
"roducts in the homes of the others. Recogni%ing the "ower of the word=of=mouth
communication marketing tr$ to stimulate it.
+hen all different t$"es of information are considered# it became a""arent that
there is enormous com"etition for the consumer attention. <onse&uentl$ the
consumer mind has to marvelousl$ efficient to sort and "rocess this barrage of
information.
To better understand the consumer behavior M# we will began b$ e!amining the
social and grou" forces that influence the "s$chological make u" and also "la$ role
in s"ecific bu$ing decisions
SOCIA0 INF0UENCES
-ocial forces determine the wa$s we think believe# and act. And is individual bu$ing
decisions=including the needs we e!"erience the alternatives we consider# and the
social forces that surround us affect the wa$s in which we evaluate them. 'ur
descri"tion begins with culture# the force with the most indirect im"act# and moves
to the force with the most direct im"act.
CU0TURE
<ulture is the set of s$mbols and artifice created b$ societ$ and handed down from
generation to generation as determinant and regulator of the human behavior. The
s$mbol ma$ be intangible 9attitudes# believes# values# language: or tangible 9tools#
housing# "roducts# works of art:. Although culture does not include instinctive
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biological acts# the wa the "eo"le "erform instinctive acts such as eating is
culturall$ influenced . thus ever$ bod$ gets hungr$ but when and what "eo"le eat
var$ among cultures.
SU1CU0TURES
-ubculture are grou"s in a culture that e!hibit characteristic behavior "atterns
sufficient to distinguish them from other grou"s with in the same culture the
behavior "attern that distinguish subcultures are based on factors such as race#
nationalit$# religion and urban= rural identification
SOCIA0 C0ASS
-ocial class is the ranking with in the societ$ determined b$ the members of the
societ$. -ocial class e!ists in virtuall$ all societies# the "eo"le bu$ing behavior is
often strongl$ influenced b$ the class to which the$ belong or to which the$ are
ins"ire.
There are five social classes "resent n our societ$
The u""er class
The u""er= middle class
The lower= middle class
The u""er lower class
The lower=lower class
REFERENCE GROUP
Each grou" in a societ$ develo"s its own standards of behavior that then serve as a
guide guides# or frames of reference# for the member. )amil$ and a circle of
friends are such grou"s. Members share values and are e!"ected too confirm to the
grou"s behavior "atterns. .ut a "erson does not have to be the member of the
grou" to which he is influenced. There are grou"s we as"ire to *oin 9 a cam"us honor
societ$ or club: and a grou" we admire even though membershi" ma$ be im"ossible
9a "rofessional athletic team:. All of these are "otencies reference grou"=grou"s o
"eo"le who influence a "erson2s attitudes# values# and behavior.
-tudies have shown that "ersonal advice in face=to=face grou"s is much more
effective as a behavior determinant than advertising.
Advertisers are rel$ing on reference grou"2s influence when the$ use celebrit$
s"okes"ersons. 3rofessional athletes# musician# models# and actors can be influence
"eo"le who would like to be associated with them in some wa$.
Reference grou" influence in the marketing is not limited to the well=known
"ersonalities# an$ grou" whose &ualities a "erson admires can serves as a reference.
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FAMI0IES AND HOUSEHO0DS
A famil$ is a grou" of two or more "eo"le related b$ blood# marriage# or ada"tation
living together in a household. 1uring their lives man$ "eo"le belong to at least two
families=the one into which the$ are born and the one the$ form at a marriage. The
birth famil$ "rimaril$ determines core values and attitudes. The marriage famil$# in
contrast# has a more direct influence on s"ecific "urchases. )or e!am"le famil$ si%e
is im"ortant in the "urchase of a car.
There are four im"ortant &uestions to answer while considering famil$ as a
influential factor
+ho influences the bu$ing decision
+ho makes the bu$ing decision
+ho makes the actual decision
+ho uses the "roducts,
SA0ESMANSHIP
;hat is sa!esmanshi)<
-alesmanshi" is the "rocess of a""l$ing three wa$ management "rocess 9"lanning#
im"lementation and evaluation: to sales force and its activities. -ales e!ecutive
begin b$ setting sales goals and "lanning sales force activities. This involves
forecasting sales# "re"aring sales budgets# establishing sales budgets establishing
sales territories and setting sales &uotas.
. Then the sales force must be organi%ed# staffed# and o"erated to im"lement the
strategic "lans and reach the goals that were set. The final stage involves
evaluating the "erformance of individual2s sales "eo"le as well as a""raising the
total sales "erformance.
Effective salesmanshi" starts with a &ualified sales manager. )inding the right
"eo"le for the right *ob is not eas$. In man$ organi%ations the common "ractice
when the sales management "osition becomes available is to reward the most
"roductive sales "erson with a "romotion. The assum"tion is that# as a manager# an
effective sales "erson will be able to im"art the necessar$ wisdom to make
owever# the &ualities that lead to effective salesmanshi" are often the o""osite
of the attributes of successful sales"erson. 3robabl$ the other e&uall$ successful
sales "erson. 3robabl$ the biggest difference in the "osition is that sales "eo"le
tends to be self motivated and self reliant# the$ often work inde"endentl$#
receiving all the credit or blame for their successes or failures. In contrast# sales
manager must work through and de"end on others# and must be "re"ared to give
recognition rather receive.
To be effectiv7e the sales manager must understand customers# a""reciate the
role of the sales "eo"le# and have the res"ect of the sales force. These attributes
can onl$ be re&uired b$ s"ending time in sales.
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FUNCTION OF SA0ESMANSHIP

-taffing and o"erating a sales force
Evaluating a sales "erson "erformance
DIFFERENCE 1ET;EEN AD:ERTISING AND SA0ESMANSHIP
Advertising is salesmanshi". Its "rinci"les are the "rinci"les of salesmanshi".
-uccesses and failures in both lines are due to like causes. Thus ever$ advertising
&uestion should be answered b$ the salesmanNs standards.
The onl$ "ur"ose of advertising is to make sales. It is "rofitable or un"rofitable
according to its actual sales.
It is not for general effect. It is not to kee" $our name before the "eo"le. It is not
"rimaril$ to aid $our other salesmen. Treat it as a salesman. )orce it to *ustif$
itself. <om"are it with other salesmen. )igure its cost and result. Acce"t no
e!cuses which good salesmen do not make. Then $ou will not go far wrong.
The difference is onl$ in degree. Advertising ma$ a""eal to thousands while the
salesman talks to one. It involves a corres"onding cost. -ome "eo"le s"end O@8 "er
word on an average advertisement. Therefore ever$ ad should be a su"er=salesman.

A salesmanNs mistake ma$ cost little. An advertiser2s mistake ma$ cost a thousand
times that much. .e more cautious# more e!acting# therefore. A mediocre salesman
ma$ affect a small "art of $our trade. Mediocre advertising affects all of $our
trade.
Man$ think of advertising as ad=writing. 'ne must be able to e!"ress himself
briefl$# clearl$ and convincingl$# *ust as a salesman must. .ut fine writing is a
distinct disadvantage. -o is uni&ue literar$ st$le. The$ take attention from the
sub*ect. The$ reveal the hook.
.
-uccessful salesmen are rarel$ good s"eech makers. The$ have few oratorical
graces. The$ are "lain and sincere men who know their customers and know their
lines. -o it is in ad writing. Man$ of the ablest men in advertising are graduate
salesmen. The best we know have been house=to=house canvassers. The$ ma$ know
little of grammar# nothing of rhetoric# but the$ know how to use words that
convince.
There is one sim"le wa$ to answer man$ advertising &uestions. Ask $ourself#P +ould
it hel" a salesman sell the goods,P P+ould it hel" me sell them if I met a bu$er in
"erson,P A fair answer to those &uestions avoids countless mistakes. .ut when one
tries to show off# or does things merel$ to "lease himself# he is little likel$ to
strike a chord which leads "eo"le to s"end mone$. -ome argue for slogans# some like
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clever conceits. +ould $ou use them in "ersonal salesmanshi", <an $ou imagine a
customer whom such things would im"ress, If not# donNt rel$ on them for selling in
"rint.
-ome sa$ P.e ver$ brief. 3eo"le will read for little.P +ould $ou sa$ that to a
salesman, +ith a "ros"ect standing before him# would $ou confine him to an$
certain number of words, That would be an unthinkable handica". -o in advertising.
The onl$ readers we get are "eo"le whom our sub*ect interests. No one reads ads
for amusements# long or short. <onsider them as "ros"ects standing before $ou#
seeking for information. Give them enough to get action.
-ome advocate large t$"e and big headlines. Qet the$ do not admire salesmen who
talk in loud voices. 3eo"le read all the$ care to read in K="oint t$"e. 'ur maga%ines
and news"a"ers are "rinted in that t$"e. )olks are accustomed to it. An$thing
louder is like loud conversation. It gains no attention worthwhile. It ma$ not be
offensive# but it is useless and wasteful. It multi"lies the cost of $our stor$. And to
man$ it seems loud and blatant.
'thers look for something &ueer and unusual. The$ want ads distinctive in st$le or
illustration. +ould $ou want that in a salesman, 1o not men who act and dress in
normal wa$s make a far better im"ression, -ome insist on dress$ ads. That is all
right to a certain degree# but is &uite im"ortant. -ome "oorl$=dressed men# "rove
to be e!cellent salesmen. 'ver dress in either is a fault.
-o with countless &uestions. Measure them b$ salesmenNs standards# not b$
amusement standards. Ads are not written to entertain. +hen the$ do# those
entertainment seekers are little likel$ to be the "eo"le whom $ou want. That is one
of the greatest advertising faults. Ad writers abandon their "arts. The$ forget
the$ are salesmen and tr$ to be "erformers. Instead of sales# the$ seek a""lause.
+hen $ou "lan or "re"are an advertisement# kee" before $ou a t$"ical bu$er. Qour
sub*ect# $our headline has gained his or her attention. Then in ever$thing be guided
b$ what $ou would do if $ou met the bu$er face=to=face. If $ou are a normal man
and a good salesman $ou will then do $our level best.
1onNt think of "eo"le in the mass. That gives $ou a blurred view. Think of a t$"ical
individual# man or woman# who is likel$ to want what $ou sell. 1onNt tr$ to be
amusing. Mone$ s"ending is a serious matter. 1onNt boast# for all "eo"le resent it.
1onNt tr$ to show off. 1oes *ust what $ou think a good salesman should do with a
half=sold "erson before him,
-ome advertising men go out in "erson and sell to "eo"le before the$ "lan to write
an ad. 'ne of the ablest of them has s"ent weeks on one article# selling from house
to house. In this wa$ the$ learn the reactions from different forms of argument
and a""roach. The$ learn what "ossible bu$ers want and the factors which donNt
a""eal. It is &uite customar$ to interview hundreds of "ossible customers. 'thers
send out &uestionnaires to learn the attitude of the bu$ers. In some wa$ all must
learn how to strike res"onsive chords. Guesswork is ver$ e!"ensive.
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The maker of an advertised article knows the manufacturing side and "robabl$ the
dealer2s side. .ut this ver$ knowledge often leads him astra$ in res"ect to
customers. is interests are not in their interests. The advertising man studies the
consumer. e tries to "lace himself in the "osition of the bu$er. is success largel$
de"ends on doing that to Rthe e!clusion of ever$thing else.
This book will contain no more im"ortant cha"ter than this one on salesmanshi". The
reason for most of the non=successes in advertising is tr$ing to sell "eo"le what
the$ do not want. .ut ne!t to that comes lack of true salesmanshi".
Ads are "lanned and written with some utterl$ wrong conce"tion. The$ are written
to "lease the seller. The interest of the bu$er are forgotten. 'ne can never sell
goods "rofitabl$# in "erson or in "rint# when that attitude e!ists.
NEGOTIATION
Negotiation means when two "arties need to reach agreement on the "rice and
other terms of sale sales"erson need to win the order without making dee"
concessions that will hurt "rofitabilit$.
NEGOCIATION DEFINED
Marketing is concerned with e!change activities and the manner in witch the terms
of "urchase is established. In reutili%ed e!change# terms are established b$
administration. In negotiated e!change# "rice and other terms are set via
bargaining behavior. Growing number of markets are coming under negotiated long
term binding# 9e.g.:
Doint venture
)ranchise
-ubcontracts
4erbal integration
Negotiation has following features
At least two or more "arties must be involved
3arties have conflict of interest with one or more issues
The "arties tem"oraril$ *oined together in a s"ecial kind of voluntaril$
relationshi".
Activit$ in the concerns the division or e!change of one or more s"ecific
resource andEor the resolution of one or more intangible issues among the
"arties.
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The activit$ usuall$ involves the "resentation of demands or "ro"osal b$ one
"art$ and evaluation of these b$ the other# followed b$ consession and
counter "ro"osals. The activit$ is se&uential rather than simultaneous.
-ales "erson involves in bargaining need following skills to be successful
3re"aration and "lanning skills for negotiation
Knowledge of sub*ect matter of negotiation
Abilit$ to think clearl$ and ra"idl$ under "ressure and uncertaint$
Abilit$ to e!"ress thoughts verball$
6istening skills
Abilit$ to "ersuade others
3atience
1ARGANING TACTICS
)ollowing are some of the tactics used in the negotiation for bargaining
@. If the other "art$ is more "owerful# identif$ $our alternative if
settlement is not reached it sets standards against which can be offered it
"rotects $ou from being "ressuri%ed
A. +hen the o""osite "art$ insists on his or her "osition and attack $our
"ro"osal . better tactic is to deflect the attack from the "ers8on and
direct it against the "roblem
B. Invent o"tions that can satisf$ both the "arties
7. Invite the o""osite "art$2s criticism and advice 9if $ou were in m$ "osition
what will $ou do:
H. +hen the other "art$ uses a threat or take >it=or=leave=it tactic or seats
the other "art$ on the other side of the table with the sun in his e$es. A
negotiator raise the issue and &uestion the tactics and desirabilit$ and
negotiator over it.
I. The negotiator should recogni%e his best alternative to a negotiated
agreement 9.ATANA: and terminate the negotiation.
MANAGING SA0ES FORCE
NATURE AND T/PES OF SA0ES PERSON
The sales *ob is &uiet different from the stereot$"e of the "ast. The image of the
high "ressure# fast friendshi" is largel$ outdated as in the nation of "rice cutting
order chaser.
There are following t$"es of "erson seller
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15 THE PROFESSIONA0 SA0ES PERSON
A new t$"e of sales "erson has emerged > the "rofessional sales "erson. Toda$
these re"s are t$"icall$ managers of designated market# which ma$ be geogra"hical
or categor$ of customers. The$ fre&uentl$ engage in a total selling
T/PES OF SA0ES PERSON
1river
Inside order taker
'utside order taker
Missionar$ sales "erson
-ales engineer
<onsultative sales "erson
Dri'er
In this t$"e of sale "erson "rimaril$ divides and su""lies the "roduct e.g. soft drink
or fuels and service the account
The selling res"onsibilit$ of these sales "erson or authori%ed and rewarded for
finding o""ortunit$ to increase sales to e!isting account.
Insi(e r(er taker
In this t$"e of sales "erson he takes orders and assists the customer at the sellers
"lace of business e.g. sales clerk of im"erial stores
O%tsi(e r(er taker
In this t$"e the sales "erson goes into the field and finds and re&uests for orders
e.g. sales re" for a radio station selling advertising time to the local business.
Missinar" sa!es )ersn
This t$"e of sales "erson is e!"ected to "rovide information and other services to
e!isting and "otential customers# "erform "romotional activities# and build goodwill.
A missionar$ sales "erson does not solicit orders . an e!am"le of this *ob is an
detail sales "erson for "harmaceutical firm such as Merck or 6ill$.
Sa!es engineer
In this "osition the ma*or em"hasis is on the sales "erson2s abilit$ to e!"lain the
"roduct to the customer and also to ada"t the "roduct to a "ros"ective needs of
the customer2s "articular needs . the "roducts involved here are t$"icall$ are
com"le! # technicall$ so"histicated items. A sales engineer usuall$ "rovides
technical su""ort and works with another sales re"resentative who calls regularl$
on a given account.
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Cns%!tati'e sa!es )ersn
This involves the creative selling of goods and services. thLis categor$ contains the
most com"le! # difficult s7lling *ob > es"eciall$ the creative selling of services#
because $ou can2t touch# see taste or smell them .
SE0ECTING AND RECRUITING SA0ES PERSON
At the heart of ever$ sales force o"eration is the recruiting and selecting of good
sales "eo"le. The "erformance difference between an average sales "erson and to"
sales "erson can be substantial. in a t$"ical sales force # the to" B8 "ercent of the
sales "erson might bring I8 "ercent of the sales. Thus careful selection of sales
"erson can greatl$ increase overall sales force "erformance. .e$ond the difference
in sales "erformance# "oor selection results in costl$ turnover. +hen a sales "erson
&uits# the cost f finding and training new sales "erson "lus the cost of lost sales.

RECRUITING SA0ES PERSON
Recruitment is the "rocess of finding "otential candidates to fill vacant *ob in an
organi%ation
After the management has decided the needed traits# it must recruit sales "eo"le .
the human resource de"artment looks for a""licants b$ getting names from the
following
<urrent sales "erson
?sing em"lo$ment agencies
3lacing classified ads
<ontracting college students
Attract to" sales "eo"le
-everal "olic$ and decisions are made in the recruitment "hase these dimensions
determine whether the *ob will filled b$ man or women or both0 .$ high school
graduates0 business school graduates0 or universit$ graduates0 b$ "eo"le who cn
command highest salaries in their occu"ation# or b$ "eo"le willing to work for
minimum wages.
SE0ECTING
The selecting "rocess is not the a one=shot a""roach in choosing the suitable
candidate for the *ob. It involves a series of ste"s. Each ste" im"ortant because at
each stage# information ma$ be revealed which will dis&ualif$ the candidate a
candidate has to "ass through the series of barriers before getting the *ob in each
of these ste"s *ob descri"tion matched with the *ob s"ecification.
-ales force selection involves three im"ortant tasks
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1etermining t$"es of "eo"le needed b$ "re"aring the written *ob
descri"tion0
There have been man$ attem"ts to identif$ general set of "ersonalit$
attribute that e!"lains selling success# however this list tends to be little
"ractical because the$ consists of common sense characteristics. -ome
com"an$ anal$%e "ersonal histor$ of their e!isting sales re"resentativein
effort to determine the trait common to successful "erformers# even than
when com"an$ thinks it kn"ows what attributes are measuring to which
&ualit$ should be "resent on the e!tent and abondance of one set the lack of
another is difficult# a better a""roach is to identif$ the s"ecification for
the "ractice *ob# *ust as if the com"an$ were "urchasing e&ui"ment or
su""lies rather than manufacturing for which detailed *ob descri"tion is
re&uired.
The descri"tion than become the basis for identif$ing the a"titude skills a
need to "erform the *ob.
Recruiting an ade&uate number of em"lo$ees0
A "lanned s$stem of recruiting# a sufficient no of a""licants is the ne!t ste" in the
selection
A good recruiting s$stem involves0
'"erates continuall$# not onl$ when sales force vacancies occur.
It is s$stematic in reaching all a""ro"riate sources of a""licants
3rovides flow of more &ualified a""licants than is needed
)ollowing are the ste"s in the selection "rocess
@. 3reliminar$ interview or screening
A. A""lication blanks
B. Testing
7. Interviews
H. Reference check
I. Meeting with the de"artmental head
J. 3h$sical e!amination
K. Induction
RECRUITING APP0ICANTS
A "lanned s$stem for recruiting sufficient number of em"lo$ees is the ne!t ste" in
the selection "rocess a good recruiting s$stem(
'"erates continuousl$# not onl$ sales force vacancies occur.
Is s$stematic in reaching all a""ro"riate sources of a""licants.
3rovide a flow of more &ualified a""licants than is needed.
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To identif$# large organi%ations often use "lacement services on college
cam"us or "rofessional em"lo$ment agencies. -maller firms that need fewer
new sales "eo"le ma$ "lace classified ads in trade "ublication and dail$
news"a"er.
Man$ firms solicit recommendations from com"an$ em"lo$ees# customers or
su""liers.
MATCHING APP0ICANTS ;ITH HIRING SPECIFICATIONS
-ales managers use a variet$ of techni&ues >including a""lication forms interviews#
e!aminations=to determine which a""licants "osses the desired &ualification.
4irtuall$ all com"anies ask candidates to fill out a""lication indicates areas that
should be e!"lored in an interview
No sales "eo"le should hired without at least one "ersonal interview conducted b$
different "eo"le in different "h$sical settings . "ooling the o"inions of a number of
"eo"le increases the likelihood of discovering an$ undesirable characteristics and
reduces the effects of one interviewer2s "ossible bias.
The individual involved in the selection "rocess need to be aware of the laws against
discrimination in order to avoid inadvertent violations.
TRAINING SA0ES FORCE
Training is the organi%ed "rocedure b$ which "eo"le ac&uire knowledge and Eor
skills for a definite "ur"ose because com"etitors have much "rogrammed. The need
for the trainings "rogram should be scientificall$ determined and the$ must be
designed to meet those needs. a number of a""roaches have been suggested b$ the
scholars# researchers# and e!"erts for determining organi%ation2s training needs.
Moore and 1utton contend that location0 si%e and magnitude of training needs
should be determined in order to get effective results for the mone$ being s"end
for training
Man$ com"anies sends their sales re"resentatives into the field immediatel$ after
hiring them the$ are su""lied with sam"les# order book# and the descri"tion of their
territor$ but mush of the selling is ineffective and unreliable# toda$ the customers
are mush educated and more demanding and man$ more su""lies customer e!"ert
sales to have dee" knowledge# to ideas# to im"rove the customer o"eration and to
effective and reliable# this re&uire much higher investment in training. Training
"rograms are off course costl$# the$ involve large outla$s for instructors#
materials# and s"ace# "a$ing a "erson who is not $et selling and closing o""ortunit$
because he or she is not in the field.
Toda$2s sales re"resentative s"ends a few weeks to several months in training. The
median training "eriod is AK in service com"anies and 7 weeks in consumer 3roducts
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<om"an$. Training time varies in the com"le!it$ of the selling task and the t$"e of
"erson recruited into the sales organi%ation.
The training has several goals0
-ales re"resentative re&uire to know the com"an$
e needs to know the "roducts of the com"an$
-ales re"s needs to know the customers and com"etitors.
-ales re"s need to know how to make effective sales "resentation.
-ales re"s need to understand field "rocedure and res"onsibilities.
COMPENSATING SA0ES PEOP0E
To attract sales "eo"le# a com"an$ must have an a""ealing com"ensation "lan these
"lans var$ greatl$ both b$ industr$ and b$ com"anies within the same industr$. The
level of the com"ensation must be close to the going rate for the t$"e of the sales
*ob and needed skills. To "a$ less than the going rate would attract too few &ualit$
sales "eo"le0 to "a$ more would be unnecessar$.
METHOD OF COMPENSATION
)inancial rewards are b$ far most widel$ tools for motivating sales "eo"le# it is ver$
im"ortant to design and administer in effective sales com"ensation # financial
rewards ma$ be direct "a$ments 9salaries# wages: or indirect monetar$
com"ensation 9"aid vacation# "ension# or insurance "lan:
Establishing a com"ensation s$stem cause for decisions concerning the level of
com"ensation as well as level of com"ensation.
Three widel$ used methods of sales force com"ensation are0
-traight salar$ a straight salar$ is affi!ed "a$ments for a "eriod of time
during which sales "erson is working it is t$"icall$ used while com"ensating
new sales "erson or missionar$ sales "erson# o"ening new territor$# selling a
technical "roduct that re&uire length$ "eriod of negotiation it "rovides a
securit$ and stabilit$ of earning for sales re"s. This "lan gives management
control over re"s efforts and the re"s are likel$ to s"end time on n8onselling
activities that caters to customer2s best interest. The drawback of this
method is that it does not offers an$ incentives for em"lo$ees.
-traight commission a commission is the "a$ments tied to s"ecific unit of
accom"lishment. Thus a re" ma$ be "aid HS of ever$ sale. a commission
method tends to have *ust o""osite merits and limitations of straight
method
It is used when0
@. a strong incentive is needed to generate sales
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A. a ver$ little non selling work is re&uired.
B. a com"an$ is financiall$ weak and must its com"ensation e!"enses
directl$ to sales
A heav$ em"hasis on commission can cause em"hasis on sales not on
customers.
The ideal method is the combination "lan# that has the best features of
both the straight salar$ and straight commission

SUPER:ISING A SA0ES FORCE

-u"ervising a sales "eo"le is difficult because sales "eo"le work inde"endentl$ at
far flung areas# locations and where the$ cannot be observed continuall$# if too
closel$ it can dul$ constrains the sales "eo"le# one of the attraction of the selling
*ob the freedom it offers sales "eo"le to develo" creative solutions to customers
"roblems# close su"ervision can use this sense of inde"endence# but also little
su"ervision can contribute to the lack of direction sales "eo"le who are not
su"ervised ma$ not understand what the com"anies and su"ervisors e!"ects from
them.9e.g.: how mush time to s"end servicing e!istence accounts# and how much
develo"ing new businesses.
METHOD OF SUPER:ISION
3ersonal observation the most effective su"ervisor$ method is "ersonal
observation in the field. T$"icall$ at least half manager2s time is s"end
traveling with sales "ersons.
Re"orts sales "eo"le and check b$ sales managers "re"are dail$# weekl$ and
monthl$ re"orts.
Annual calling "lans it show that which "ros"ects to call at which month and
which activities to carr$ out. Activities include taking "arts in trade shows
etc
Time and dut$ anal$sis this shows how the sales "erson s"end it time on
different activities.
Internet the fastest growing sales force technolog$ tool is the internet
which hel"s to gather com"etitive information# monitoring customers
websites and researching industrial and s"ecific customers.
E:A0UATING SA0ES PEOP0E
Managing sales "eo"le include evaluating the "erformance of sales "eo"le. -ales
e!ecutive must know what the sales force is doing in order to reward them or make
constructive use "ro"osals for im"rovements. .$ establishing "erformance
standards and studding sales "eo"le2s activities# managers can develo" new training
.(M.Com MCS M.A !conomics) " %+ "
Salesmanship (Complete Course Reference Material) DBA Part II %1
"rograms to u"grade the "erformance of the sale force2s efforts. And# of course#
"erformance should be the basis for com"ensation decision and other rewards.
3erformance evaluation can also hel" sales "eo"le identif$ o""ortunities for
im"roving their efforts. Em"lo$ees with "oor sales record know the$ are doing
something wrong. owever# the$ ma$ not know the "roblem if the$ lack ob*ective
standards b$ which to measure their "erformance.
To im"rove the "erformance of the sales "erson it is ver$ im"ortant for the sales
manager to know the actual "erformance of the sales re"# some of the sources of
information are 0
-ales re"orts monthl$ weekl$ and dail$ work "lans and longer term territor$
marketing "lans hel"s an e!ecutive to evaluate "erformance of the sales
"erson
<all re"orts it is another source of information it shows which "erson or
"ros"ect to call on at which time.
E!"ense re"orts these re"orts hel"s to understand the activities of the
sales "erson s. these e!"enses are "artl$ or wholl$ re"aid to the sales
"erson.
Internet it is now most widel$ used tool for gathering information.
T/PES OF E:A0UATION
)ormal evaluation it "roduces several benefits it forces management to develo" and
communicate clear standards for *udging "erformance and together well balance
information about each sales "erson.
)ormal evaluation gives sales "eo"le constructive feed back that hel"s them to
im"rove future "erformance finall$ sales "eo"le are motivated to "erform well
because the$ will have to sit down with sales manages and e!"lain their
"erformance.
In formal evaluation managers com"ares a sales "erson2s current "erformance with
the 8ast "erformance such as a com"arison should directl$ indicate the "erson2s
"rogress.
E:A0UATION ON @UANTITATI:E 1ASES
-ales "erformance should be evaluated in terms of in"uts 9effort: and out"ut
9result: to gather in"uts such as sales volume or gross margin "rovide a measure of
selling effectiveness.
In &uantitative evaluation we measure following0
<all rate( no of calls "er da$ or a week
No of formal "ro"osals "resented
.(M.Com MCS M.A !conomics) " %1 "
Salesmanship (Complete Course Reference Material) DBA Part II %#
Non selling activities( no of "romotional dis"la$s set or training session
held with distributors and dealers
-ales volume "er "roduct# customer grou"
-ales volume as Sage of &uota
Gross margin "er "roduct
No of orders and amount
<losing rate( no of orders divided b$ no of calls.
@UA0ITATI:E E:A0UATION
3erformance evaluation would be much easier if it could be based on &uantitative
criteria. The standard would be absolute and deviation from standard could be
measure "recisel$. 5ualitative measure would also minimi%e the sub*ectivit$ and
"ersonal bias evaluators.
-ome commonl$ facts are(
Knowledge of com"an$2s "roducts# "olicies and com"etitor.
Time management and "re"aration
<ustomer relations
3ersonal a""earance.
.(M.Com MCS M.A !conomics) " %# "

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Salesmanship (Complete Course Reference Material) DBA Part II 1

Lecturer : Arshad Zia Siddiqui

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