Salesmanship (complete notes)

Salesmanship (Complete Course Reference Material) DBA Part II 1

Salesmanship
Remember:
Nothing is our

but Time.

ICMS
College
SySteM for
BoyS

Lecturer : Arshad Zia Siddiqui
.(M.Com, MCS, M.A Economics) -1-

Up loaded by Ifitkhar changazi


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. However careful examination of what happening in these
business situations suggests that broader notion of, marketing is not only
appropriate but also highly useful.

EXCHANGE AS THE FOCUS

Marketing can occur any time a person or organization strives to something of value
with another person or organization. Thus the essence of marketing is a transaction
or exchange . in this broad sense, marketing consist of activities designed to
generate and facilitate exchanges intended to satisfy human or organizational
needs or wants.
Exchange is one of the three ways we can satisfy our needs. If you want to
something you can make it yourself, acquire it by theft or some form of corrosion,
or you can offer something of value to a person who had that desired thing or
service and will exchange it for what you can offer. Only this last alternative is an
exchange in a sense that marketing is occurring. The following conditions must exist
for a marketing exchange to take place:
• Two or more people or organization must be involved, and each must have
needs and wants to be satisfied. If you are totally self sufficient in some
area there is no need for an exchange
• The parties to the exchange must be involved voluntarily
• Each party must have something of value to contribute in the exchange, and
each must believe that it will benefit from the exchange in the case of an
election, for example , the thing of value are the votes of the electorate and
the representation of the voters by the candidate.
• The parties must communicate with each other. The communication can take
many forms or may even be through a third party, but without awareness
there can be no exchange.

These exchange conditions introduce number of terms that need elaboration. First
there are the parties involved in the exchange. On one side of the exchange there
is the marketer. Marketer takes the initiative ton by trying to stimulate and
facilitate exchanges. They develop marketing plans and programs and implement
them in the hope of creating an exchange. On the other side of the exchange is the
market which consists of people and organization with needs to satisfy and money




to spend. The marketing programs are directed at markets that either accept it or
reject the offer.

MARKETING DEFINED

What does the term marketing mean? Most of the people think of marketing only as
advertising and selling but they are only two functions of marketing, today
marketing must be understood not only in the old sense of satisfying customer
needs. Selling occur only when the product is produced. By contrast marketing
starts long before the company has a product marketing is the homework the
company undertakes to asses needs, intensity and determine weather the a
profitable opportunity exists so we can define marketing as
“.marketing is the total system of business activities designed to plan, price,
promote and distribute want satisfying products to target the market in order
to achieve organizational objectives”
this definitions have two significant applications
• Focus: the entire system of business activities should be customer oriented;
customer wants must be recognized and satisfied.
• Duration: marketing should starts with an idea a want satisfying product and
should not end until customer wants are completely satisfied which may be
after the exchange is made.

MARKETING MIX

Marketing mix is the set of controllable, tactical marketing tools that the firm
blends to produce the response to it wants in the target market. The marketing mix
consists of every thing the firm can do to influence the demand for the product the
many possibilities can be collected in to four groups of variables known as four p’s
of marketing which are as follows;
• Product
• Price
• Promotion
• Physical distribution

PRODUCT

It means the goods and service combination to the company offers to the target
market.
• Product planning
• Variety
• Quality




• Design
• Features
• Brand name
• Packaging
• Service

PRICE

It is the amount of money consumer have tto pay the seller to obtain a product .
• List price
• Discounts
• allowances
• payment periods
• credit terms

PROMOTION

It means activities that communicate the merits of the product and to pursuatethe
target audience to buy the products it includes
• Advertising
• personal selling
• Sales promotion
• Public relation
• Publicity

PHYSICAL DISTRIBUTION

It include activities that make the product available to the target audience
• channels
• coverage
• assortments
• location
• inventory
• transportations
• logistics

IMPORTANCE OF MARKETING IN THE SOCIETY

Marketing very important for the society if it holds the societal marketing
concepts, the societal marketing concept hold that the organization should
determine the needs, wants, and interests of the target market. it should than




deliver and superior value to the customer in the that maintain or improves the
total wellbeing of the society .
The societal marketing concepts question weather the pure marketing concept is
adequate in an age of environmental problems, resource shortages, rapid population
growth. Worldwide economic problem and neglected social service. It asks if the
firm that senses, serves, and satisfies individual wants is always doing what is best
for consumer and society in the long run.
Not long after the marketing concept became a widely accepted approach to doing
business, it came under fire, for more than 40 years critics have persistently
charged that marketing ignores social responsibility. That s, although the marketing
concept help an organization to achieve its goals but at the same time encourage
actions that conflict with society best interests.
From one point of view these charges are true. A firm may satisfy its customer,
while also adversely affecting society. To illustrate, a pulp and paper mill might be
supplying its newspaper customer with a quality newspaper but at the same time it
might be polluting air and water near the mill.

A firm social responsibility is not only satisfy its customers but also take care of
the people living in the areas surrounding their firm by applying different recycling
and safe disposal of their waste matters in this way they are applying the societal
concept of marketing.

MARKETING MIX

Marketing mix is the combination of product how it is distributed and promoted and
its price. Together these four factors must satisfy the needs of the target market
and at the same time meet the marketing objectives of the company. Marketing
manager must design the market mix that will effectively meet consumer needs and
accomplish the organizational objectives. Marketing mix includes following four
components
• Product
• Price
• Promotion
• Physical distribution




PRODUCT

Strategies are needed for deciding what products to offer, managing existing
products over time, and dropping failed products, strategic decision must also made
regarding:
• Branding
• Packaging
• Labeling
• Trade marks
• Warranties
• Quality
• Durability
All these attributes need proper product planning which concerns the extent to
which the company can market the same products in different countries. and also
see the external internal environment of then country in which the company is
operating. There are different concept which include

Product extension: it means same product is being sold in different cpuntries (e.g.)
Pepsi cola.
Product adaptation or modifying a product which is selling successfully in one
market or country to suit the unique needs of the other country (e.g.) whitening
creams etc
Invention means developing a totally new product for a foreign market.
Marketers must study carefully the cultural and economic condition of any market
_foreign or domestic _before planning product for that particular area.
Challenges involved in the product planning
Trademark infringement: in many countries copy write laws are very poorly
enforced as a result local firm manufactures products with similar names and
packaging very similar to the well known brands (e.g.) chen one , chain one etc
Global pirating of computer software, music and videos
Changing trends: Marketing must be aware of the ever changing tastes of the
target market.

PRICING

Determining the price for the product is a complex and interesting task, frequently
involving the trial and error decision making. it is more complex in international
marketing because:
• Currency conversion
• Difficulty in what must be included in the price (such as post sale services) .
• Lack of control over middle man pricing




TYPES OF PRICING

• Cost plus pricing or setting price by adding an amount to provide a profit to
the cost of manufacturing a product . it is relatively common in export
market of additional physical distribution expenses , tariffs and other
export costs foreign prices are relatively higher than domestic prices for
the same products.
• Break even analysis it is a situation with no profit and no loss situation. It is
the point where cost meet the revenue if the country
• Dumping it means selling the product in the foreign market at prices below
those charged for the same goods in there home markets. The prices may
be lowered to meet foreign competition or to dispose off slow-moving
products

A product price is the major determinant of the market demand of the product as a
result the product price has considerable bearing on company’s revenue and net
profit. it is through price the money comes to the company consumer rely heavily
on price as the indicator of the product quality especially when they make purchase
decision with incomplete information so they think higher the price the better is
the quality of product is perceived. In determining the price of the product we
should see following points:
• All costs
• Desired profit
• Competition
• Customer income
• Taxes

PHYSICAL DISTRIBUTION

The distribution part of the marketing mix if of the neglected child. Many market
planers tend to take existing distribution strategies and channels.
Distribution expenditure and plans must always be coordinated with the other parts
of the marketing mix.
Product ownership has to be transferred somehow from the producer to the
consumer
Goods also must transfer from the production site to the location where they are
needed. Distribution role within the marketing mix is getting the product to its
market; all responsibility rests with the distribution channels.




Getting the product to market entails a number of activities, most importantly
arranging from its sales (and transfer of title) from the producer to the final
customer.

Distribution channels

A distribution channel consists of the set of people and firms involved in the flow
of title to a product as it moves from the producer to the final customer or
business users. A channel of distribution always includes both the producer and the
final customer for the product in its present form as well as any middle man (such
as retailers and wholesalers).
Besides producer, middleman and final customer other institution aid the
distribution process, among these intermediaries are banks, insurance companies,
storage firms and transportation companies.




CHAPTER NO 2
PROMOTION

From the marketers perspective promotion serves three essential roles:
• It informs brand will be failed if no one knows it. Therefore the producer
must inform middlemen as well as the ultimate consumer.
• Persuades it is more important when there are many competitors to
convince the customer.
• Reminds It is used to remind the customer about your product which is
already existing in the market and very successful.

PROMOTIONAL METHOD

There are following five methods of promotion
• Personal selling is a direct presentation of a product to the perspective
customer
• Advertising is a non personal communication paid for clearly identified
sponsor promoting ideas organization or product.
• Sales promotion it include activities such as events sponsorship, frequency
programs, contests, trade shows and in store displays.
• Public relation it involves new stories about a product or organization it a
special form of promotional tool.

PROMOTION
One of the attribute of the free market system is the right to use communication
as the tool of influence. In our socioeconomic system, that freedom is reflected in
the promotional efforts by business to influence the feeling and believes and
behavior of prospective customer, company uses promotional efforts to provide
information for the decision makers buying decision process, to assist in
differentiation its products and to persuade potential buyers.

PROMOTION AND MARKETING
For the marketers perspective promotion serves three essential roles – it informs,
persuades and reminds perspective and current customers and other selected
audience about a company and its products. The relative important of these roles
varies according to the circumstances faced by the company. Brand will be failed if
no one knows it. Therefore the producer must inform middlemen as well as the
ultimate consumer or business users about the product, wholesalers must inform
retailers and retailers must inform customers. As the number of the potential




customers grows and the geographic dimensions of a market expand, the problem
and cost of informing the market increase.
Persuasion is more important when there are many competitors to convince the
customer the intense competition among different industries as well as different
firms in the same industry, put tremendous pressure on the promotional program of
the sellers. Remind is used to remind the customer about your product which is
already existing in the market sellers band very successful. sellers bombard the
market place with thousand of messages every day in the hope of attracting new
customers and establishing the market for the new products.

PROMOTIONAL METHODS

Promotion in what ever form it takes is an attempt to influence. There are four
forms of promotional methods: persona; selling, advertising, sales promotion, and
public relations
Each has distinct features that determine the role it can play in a promotion
program.
• Personal selling: is the direct presentation of the product to the a
prospective customers by a representative of the organization selling it.
Personal selling takes face to face or over the telephone, or it may be
directed to the sales person or a final customer , across all the organization
more money is spend on personal selling than on any other form of promotion
• Advertising is non personal paid for by a clearly identified Spencer
promoting ideas , organization or product, the most familiar outlets for ads
are the broadcast (TV and radio) and print ( newspaper and magazines) media
. However there are many others advertising vehicles, from billboards to T-
shirts and, more recently, the internet.
• Sales promotion is demand stimulating activity designed to supplement
advertising and facilitate personal selling. It is paid for the sponsor and
frequently involves a temporarily incentive to encourage a sale or purchase.
Many sales promotions are directed at consume. The majority however are
designed to encourage the company’s sales force or other members of the
sales force of a distribution channel to sell products more aggressively.
When the promotion is directed towards the member of the distribution
channel it is called trade promotion. included in the sales promotion are
number of activities , such as event sponsorship, frequency program,
contests, trade shows, in store displays, rebates, samples, premium,
discounts and coupons.
• Public relations encompass a wide Varity of communication efforts to
contribute to the generally favorable attitudes and opinions toward an
organization and its products. Unlike most advertising and personal selling, it

.(M.Com, MCS, M.A Economics) - 10 -



does not include a specific sales message. The target may be customers,
stockholders, a government agency, or a special- interest group. public
relation can take many forms, including newsletters, annual reports, lobbying,
and support of charitable or civic events

THE COMMUNICATION PROCESS AND PROMOTION

Communication is the verbal or non verbal transmission of information between
someone wanting to express an idea and some else expected to get the idea,
because promotion is the form of communication much can be learned about
structuring effective promotion by examining the communication process.

ELEMENTS 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
• Once the message has been transmitted through any communication channel
the message must be decoded , or given meaning by the receiver the
received message may be what the sender intended or something else that is
less desirable , depending on the recipient frame of reference
• If the message has been transmitted successfully, there is some change in
the receiver’s knowledge, believe or feelings, as a result of this change, the
receiver formulate a response, the response could be non verbal, verbal or
behavioral.
• The response serves as a feedback, telling the sender whether the message
was received and hoe it was perceived by the recipient. Through feedback
the sender can learn what a communication has accomplished. Then a new
message can be formulated and the process began again.
• All stages of the communication process can be affected by noise- that is
any external factor that interferes with the successful communication.

DETERMINING THE PROMOTIONAL MIX

A promotional mix the marketers combination of advertising, personal selling, sales
promotion, and public relations. An effective promotion is a critical part of all
marketing strategies and involves number of strategies which are as follow:




1. Target Audience
2. Objectives of promotion effort
3. Nature of the product
4. Stage in the product life cycle
5. Amount of money available for promotion

TARGET AUDIENCE

Decision on the promotion mix is greatly effected by the target audience. the
target may final customer, who would be further defined as existing customers or
new prospects. Some marketers direct much of there efforts at decision makers
rather than the actual purchasers. In some cases the target consists of middleman
in order to gain their support in distributing a product or in the case of the
company about to make a stock offering, the investment community
There are two types of strategies involved in this
PUSH STRATEGY means a channel member directs its promotion primarily at the
middle men that are the next link forward in the distribution channel. In this the
producer pushes the retailers to buy their products in return the retailers push the
customers.
PULL STRATEGY the promotion is directed toward end users – usually ultimate
consumers. The intention is to motivate them to ask retailers about the product.
The retailer in return will request the product from the wholesalers, and the whole
sellers in return order it from the producer for the product.

PROMOTION BJECTIVES
A target audience can be in any of the six stages of buying readiness. These stages
are
• Awareness: at the awareness stage the seller’s task is to let the buyer know
that the brand or the product exists. Here is the objective is to built
familiarity with the product and the brand name.
• Knowledge; Knowledge goes beyond awareness to learning about the product
features. In the market with the several well established brands,
enterprise had to find a way to quickly and easily inform consumers how its
service is unique.
• Liking: liking refers to how the market feels about the product. Promotion
can be used to move the knowledgeable audience from being indifferent to
the liking brand. A common technique is to associate the item with an
attractive symbol or person. Online sporting goods retailers.
• Preference: creating preference involves distinguishing among brands such
that that the market finds your brands of the same product, but the
customer can’t make a decision until one brand is preferred over the



alternatives. Ads that make direct comparisons with the competition are
intended to create a preference.
• Conviction: the promotion objective here is to increase the strength of the
buyers need. Trying a product and experiencing the benefits that comes
from it are very effective it conviction to own it.
• Purchase: purchase can be delayed or postponed indefinitely even for
customer who is convicted they should buy a product.

NATURE OF THE PROUCT
Several product attributes influence the promotion mix.
• Unit value: A product with low unit value is usually relatively uncomplicated,
involves little risk for the buyers, and must appeal to a mass market to
survive.. As a result, advertising would be the primary promotional tool. In
contrast, high unit value product is often complex and expensive. These
features suggests for personal selling.
• Customization: if the product must be adapted to the individual customer’s
needs, personal selling is necessary. Thus you would expect to find an
emphasis on personal selling for something like home remodeling or an
expensive suit for the clothing. However, the benefits of most
standardized products can be effectively communicated through
advertising.
• Presale and post sale service: Products that must be demonstrated, for
which there are trade-ins, or that require frequent servicing to stay in
good working order lend themselves to personal selling.

STAGE IN THE PRODUCT LIFE CYCLE

Promotion strategies are influenced by a product’s life-cycle stage. When a new
product is introduced, prospective buyers must be informed about its existence and
its benefits, and middlemen must be convinced to carry it. Thus both advertising
and personal selling are both critical in the product’s introductory stage. At
introduction a new product also may be something of a novelty, offering excellent
opportunities for publicity. Later, if a product becomes successful, competition
intensifies and more emphasis is placed on persuasive advertising.




FUNDS AVIALABLE

The amount of money available for promotion is often the determinant of the mix.
A business with ample funds can make more effective use of advertising than a firm
with financial resources. Smaller brand or companies with small amount of funds for
promotion can rely on personal selling.

CHAPTER NO 3

PERSONAL SELLING

WHAT IS PERSONAL SELLING?

The personal selling is the personal communication of information to persuade a
prospective customer to buy a produce or service or idea, it is the major
promotional tool used to reach this goal.
The effort of sales people go far beyond simply making transactions, they also
include following

• Explaining product benefits
• Demonstrating the proper operation of the product
• Educating customers about the new product
• Answering questions and responding to the objections
• Organizing and implementing point of purchase promotion.
• Arranging the terms of purchase
• Following up the purchase to ensure that customers are satisfied
• Developing the relationship with the buyers
• Collecting market and competitive information to improve marketing strategies

Personal selling is mostly used when:

• The market is concentrated either geographically , in a few industries or a
few large customers
• The product has a high unit value, quite technical in nature or requires
demonstration.
• The product must be fitted to the individual customers needs as in case of
insurance or investments
• The product is in the introductory stage of its life cycle
• The organization does not have enough money for an adequate advertising.




FEATURES / CHARACTERISTICS OF PERSONAL SELLING

Following are different features which are present in the personal seller
• Sales people represent their organization in the outside world attitudes
about a company and its product are often based on the impression left by
salespeople
• Sales people typically operate with little or no direct supervision therefore
to be successful salespeople must be creative and persistent
• Salespeople are authorized to spend company funds. they spend money for
transportation, food, housing, entertainment, and other expenses
• Salespeople must frequently travel a considerable amount
• Salespeople often have profit responsibility today’s salesperson do much of
the strategic planning for their individual territories. In cooperation with
sales manager, they decide what target market they pursue, how they will
deal with each market segment.

FUNDAMENTALS OF SUCCESSFUL PERSONAL SELLING

• Sales people must have greater flexibility, he must tailor sales presentations
to fit the needs and behavior of the individual customers
• He must have the potential of explaining the product benefits, answer
questions of his customers
• He must be truthful
• He must behave in a reliable manner
• Must seek similarity of personality between you and the customer and the
commodity interest and goals
• Sales person must see whether the person or his prospects has the potential
to pay for the product or not.

ROLE OF PERSONAL SELLING IN MARKETING

Personal selling is the interpersonal arm of promotion mix. Advertising
consists of one-way, non personal communication with target consumer group in
contrast personal selling involves two way personal communications between sales
people and individual consumer -weather face to face, by telephone, through video
conferences, or by other means.
Personal selling can be more effective than advertising in more complex
situation like explaining product benefits, demonstrating the proper operation of
the product, educating consumers about new products, answering different
questions about their products and clear any doubts about it, organizing and




implementing point of purchase promotion and also arranging the terms of sale,
follow up the purchase to se that consumer is satisfied, also develop such a kind of
personal relationship that the consumer can trust your product also it is very
important because through this sales person can collect very useful competitive
information.
Sales people can also work with whole sellers and retailers to gain their
support and to help them be more effective in selling the company’s product they
serve as a critical link between a company and its consumer.
Sales people also represent consumer to the company, they learn about the needs
of the consumer and work with other in the company to create greater consumer
value.

SCOPE OF PERSONAL SELLING
In the business there are two types of personal selling activities
• Inside selling
• Outside selling

Inside selling

It involves retail stores. In this group we include the sales person in the
stores and the sales people at the catalog retailers who take telephone orders. Also
included are telephone orders takes at manufactures and wholesalers, most of
whom taking existing customers routine orders over the telephone.

Outside selling

Sales people go to the consumer. They make contact by telephone or in person.
Most outside sales force usually represents producers or wholesaling, middleman,
selling to the business users and not to the house hold consumers. In outside
selling, we also include
1. Producers whose representatives sell directly to the household consumers
(e.g.) insurance companies.
2. Representatives of retail organizations who go to the consumer’s house to
demonstrate a product, give advice, or provide an estimate such as sales
people for some furniture stores and home heating and air-conditioning
retailers.
3. Representative of non profitable organizations (e.g.) charity funds raisers,
workers for political candidate.




CHAPTER NO 4

WHAT MAKES A GOOD SALES PERSON

The term sale representative covers a broader range of positions in our economy.
The position range from to the least to the most creative type of selling
Sales force performs one or more of the following tasks for their companies:

• Prospecting: Sales representatives find and cultivate new customers
• Targeting: they decide how to allocate their scarce time among prospects
and customers
• Communicating: sales representatives skillfully communicate information
about the companies products and services
• Selling: sales person know the art of the salesmanship, approaching,
presenting, answering objections, and closing sales.
• Servicing: Sales representatives provide various services to the customers –
consulting on their problems rendering technical assistance, arranging
financing and expediting delivery
• Information gathering: Sales representative conduct market research and
intelligences work and fill in call reports
• Allocating: Sales representatives decide on which customer to allocate
scarce products during product shortages.

MOTIVATING SALES FORCE

Motivation is the process through which hidden needs are aroused.
Some sales people will put forth their best effort without any coaching from
the management.
For them selling is the most fascinating in the world. They are ambitious and
self status, but majority of sales representative require encouragement and
special incentives from the management to work at the best level. This is
specially true of field selling for the following reasons:

The nature of the job
The selling job is one of frequent frustrating, sales representatives usually work
alone, their laws are irregular and they are other away from home, they
confront aggressive, competing sales representative, they do not have the
authority to do what is necessary to in the account they lose large orders that
they have worked hard to obtain.




Human nature
Most people operate below capacity in the absence of special incentives such as
financial gain or social recognition.

Personal problems
Sales representatives usually preoccupied with personal problems such as
sickness in the family, marital discord or debt etc.

MOTIVATION MODEL

Motivation effort Performance reward
satisfaction

The above model suggest that higher the sales person motivation the greater is
his or her effort , greater effort will lead to greater performance which will
lead to greater rewards and greater rewards will lead to greater satisfaction
which will again lead to reinforce motivation.
The model implies following
• Sales manager must be able to convince sales people that they can sell
more by working harder or being trained to work smarter. But if sales
are largely determined by economic conditions or competitive action this
linkage is undermined.
• Sales manager must be able to convince sales people that the rewards
for better performance are worth the extra effort , but if the rewards
are too small or of the wrong kind the linkage is undermined

DISCIPLINED WORK

What ever the incentive package if the sales person aren’t organized and focused,
and if they don’t work hard they are not be able to meet the ever increasing
demand of the customers these days, so following points are very important.

1. SET GOALS
First of all sales representatives has to set goals for their selves, what they
want achieve in the future according to that than they make plans

1. MAKE PLANS




Planning is very important in the sales person job, they make schedule for the
future great sales person are very conscious about laying down detailed, organized
plans than they follow through in a timely disciplined way (e.g.) if they say that they
are going to make a follow up call on a customer in six months, you can sure that
they will be on the door step in six month.

2. WORK HARD
They have to work hard because this job is very demanding and they have to work in
irregular hours travel a lot and most of the times have to work alone and away from
home.

3. SELECTING THE APPROPRIATE TECHNIQUE
A key step in the personal selling is deciding which device will help the organization
reach its promotional goals . some factors are
• Nature of the target audience: weather target auidiance re loyal to
the company brand if not higher level of personal selling and
convincing techniques are required
• Nature of the product: does the product level its self to sampling,
demonstration or multiple item purchase
• Current economic conditions: sales representatives must also see
what the economic conditions of the country are. Premium and
rebates are good in periods of recessions and inflation.

RELATIONSHIP MARKETING

It is the process of creating , maintaining and enhancing strong, value laden
relationship with customers and other stake holders
Most companies are today moving away from transaction marketing with the
emphasis on making a sale. Instead they are practicing relationship marketing-
which emphasizes maintaining profitable long term relationship with customers by
creating a superior customer value and satisfaction.

They are realizing that when operating in a maturity market and facing
stiffer competition it cost a lot more to attract new customers from competitors,
than to keep current customers.

Today customers are and global they prefer suppliers who can sell and
deliver a coordinated set of products and services to many locations.
They favor supplies who can quickly solve their problems that arise in different
areas of countries of world and who can closely work with customers team to
improve products and process.




Unfortunately, some companies are not setup for the developments; they
often sell their products through separate sales force, each working independently
to close sales. Their technical people may not be willing to lend time to educate a
customer their engineer design and manufacture and people may have the attitude
“its our job to make good products and the sales person to sell them to customers”
however other companies recognizing and keeping good relations with customers
than making good products and directing the sales force to close lots of sales its
requires a careful coordination whole company effort to create value laden
satisfying, relationship with important customers.

Relationship marketing is based on premise that important accounts need
focus and ongoing attention. Studies have shown that the best sales person are
those who are customer problem solver and relationship builders good sales person
working with key customers do more than call when they think a customer might be
ready to place an order
They call and visit frequently works with customers to help solve customer
problems and improve its business, and take an interest in customers as people.

Here are some steps in establishing relationship marketing in the company:
 Identify the key customers meriting relationship marketing: The company
can chose the five or ten largest customers and designate them for
relationship marketing. Additional customers can be added who show
exceptional growth.
 Assign a skilled relationship manager to each key customer: the sales person
servicing to the customer should receive training in relationship marketing.
 Develop a clear job description for relationship managers: It should describe
their reporting relationships, objectives, responsibilities, and evaluation
criteria. The relationship manager is responsible for the client , is the focal
point for all information about the client , and is the mobilizer of company
services for the client. Each relationship manager will have only one or few
relationships to manage.
 Appoint an overall manager to supervise the relationship managers: this
person will develop job description, evaluation criteria , and resource support
to increase relationship managers effectiveness.
 Each relationship manager must develop long- range and annual relationship
plans. The annual relationship plan will state objectives, strategies, specific
actions and required resources.




CHAPTER NO 5

THE PERSONAL SELLING PROCESS

Most companies take a customer- oriented approach to personal selling as
consisting of several that the sales person must master. These steps focus on
the goal of getting new customers and obtaining orders from them, however
most sales person mush of their account on existing and building long term
customer relationships.

STEPS IN THE SELLING PROCESS

Most selling program view the selling process as consists of several steps
that the sales person must master. These steps focus on the goals of getting the
new customers and obtain orders from them. Personal selling involves following
steps

• Prospecting and qualifying
• Preapproach
• Approach
• Presentation and demonstration
• Handling objections
• Closing
• Follow-up

PROSPECTING

The first step in the selling process is to identify prospects. Although the company
will try to supply leads, sales representatives try to make their own leads can be
developed in the following ways:
• Asking current customer about the names of the prospects
• Cultivating other referral sources, such as suppliers, dealers, non competing
sales persons, bankers and trade association executives.
• Joining organizations to which sales person belongs.
• Engaging in the speaking and writing activities.
• Examining data sources (newspapers and directories) in search of names.
• Using the telephone and mail to find leads.
• Dropping in unannounced on various offices.




QUALIFICATION

Sales representatives must needs skills in screening out poor leads . prospects can
be qualified by examining the following:
• Financial ability
• Location
• Volume of business
• Special requirement
• Likelihood of continuous business.

PREAPPROACH

Before calling upon the customer it is very important that the sales person should
learn as mush as possible about the organization (what it needs, who is involved in
the buying) and its buyers (their characteristics and buying style), this step is
known as pre-approach. The sales person can consult standard industry and online
sources, acquaintances, and other to learn about the company. The sales person
should set call objectives, which may be qualifying the prospects, to gather
information and to make an immediate sale.
Another step is to decide on the best approach, which might be a personal visit , a
phone call, or a letter. The best timing should be considered carefully because many
prospects are busiest at certain time. Finally the sales person should give a thought
to an overall strategy for the account.

APPROACH

The sales person should know hoe to greed the customer tom get the relation up to
the start. This involves the sales person appearance, the opening lines, and the
follow up remarks and the opening lines should be positive for example, “Mr.Ali I am
Salem Ahmed from the PC hotel Peshawar and appreciate your willingness to see
me. I will do my best to make this visit profitable and worthwhile for you and your
company this might follow by key questions and active listening to understand the
buyer and his her needs.

PRESENTATION AND DEMONSTRATION

During the presentation step of the selling process sales person tells the product
story to the buyer, showing how the product will make or save money. the sales
person describe the product features and concentrate on the consumer’s need and




benefits. Using need-satisfaction approach, the sales person starts with the search
for consumer needs by getting the consumer to do most of the talking.
This approach calls for good listening and problem solving skills. With the proper
pre approach information the sales person can design a sales presentation that will
attract the prospects attention. The sales person will try to hold the prospects
interest while building a desire for the product and when the time is right , attempt
to stimulate action by closing the sale . this approach is called AIDA ( an acronym
formed by the first letters of Attention, Interest, Desire And Action), is used by
many organization.
After attracting the interest of the prospects it is very important to hold and
stimulate desire for the product with sales presentation. The sales person must
always know how the product will benefit the prospect.
Companies have developed three styles of presentation.
• Canned approach is the oldest approach in memorization of sales talk,
covering the man point. It is based on stimulus response thinking: that is the
buyer is passive and can be moved to purchase by the us of right stimulus
words, pictures, terms and actions .canned approach is mostly used in door to
door and telephone selling.
• Formulated approach is also based on stimulus/ response thinking, but
identifies early the buyer’s needs and buying styles and than use a
formulated approach to this type of buyer the sales person initially draws
the buyer into the discussion in a way that reveals the buyers needs and
attitudes.. then the sales person moves into formulated presentation that
shows how the product will satisfy the buyer needs. This is not canned
approach but follow a general plan.
• Need satisfaction approach starts with a search for customer’s real needs
by encouraging the customer to do most of the talking. This approach calls
for good listening and problem solving skills. The sales person than the sales
person takes on the role knowledgeable business consultant hoping to help
the customer save money or make more money.

Sales presentation can be improved by demonstration aids such as booklets, flip
charts, slides, movies and audio –and video cassettes during the demonstration,, the
sales person can draw five influence strategies.

• Legitimacy. The salesperson emphasizes the reputation and experience of
his or her company.
• Expertise. The sales person shows deep knowledge of the buyer’s situation
and company’s product, doing this would being overly “smart”.




• Referent power. the sales person build on any shared characteristics,
interests, and acquaintances.
• Ingratiation. The sales person provides personal favor( a free lunch,
promotional gratuities) to strengthen affiliation and reciprocity feelings.
• Impression. the sales person ménages to convey favorable personal
impressions.

OVERCOMING OBJECTIONS

Customer almost always pose objections, during the presentation or when asked for
an order. This resistance can be psychological or logical.

Psychological Resistance includes
• Resistance to interference
• Preference for established supply source or brands
• Reluctant to giving up something
• Dislike of making decision
• Unpleasant association about the other person
• Neurotic attitude toward money

Logical resistance includes
• Objection to price
• Delivery schedule
• Certain product or company characteristics.

To handle these objections the sales representatives maintains a positive approach
by:
• Asking the buyer to clarify the objections
• Questions the buyer in a way that the buyer has to answer his or her own
objection
• Denies the validity of the objections
• Turn the objections in to reason for buying

CLOSING

Now the sales person attempts to close the sale. Some sales people do not get to
this stage or do not do it well. They lack confidence or feel uncomfortable about
asking for an order or do not recognize the closing signal from the buyer, including
physical actions, statements, comment, and questions.
Sales person can use one of the following techniques
• They can ask for an order



• Offer to help the secretary write an order
• Ask whether the buyer wants A or B to make minor choices such as the color
or sizes etc.
• Indicate what the buyer will lose if the order is not placed now
• The sales person might offer the buyer specific inducements to close, such
as a special price, an extra amount no extra charge or a gift

FOLLOW UP AND MAINTAINANCE

This last step is necessary if the sales person wants to ensure customer
satisfaction and repeat business this includes:
Immediately after closing the sales person should complete any necessary details
on delivery time, purchase terms, and other matters
The sales person should arrange a follow up call or visit when initial order is
received , to make sure there proper installation, instructions and servicing, this
visit should detect any problems, and also ensures the sales person interest.
The sales person should develop an account maintenance plan to make sure that the
customer is not forgotten or lost.

CHAPTER NO 6
CONSUMER BUYING BEHAVIOR
Ultimate consumers buy goods an services for their own personal use there are
millions of buyers and household in Pakistan and they spend millions of rupees on
goods and service. The effort of many marketers is focused on these potential
customers.
The consumer market is not only large but it is also very dynamic. Thus, the first
challenge is to gain understanding of what this market look like and how it is
changing. To develop an appreciation of this dynamic consumer market, we will
examine its geographical distribution, several demographic and some representative
behavior.

GEOGRAPHICAL DISTRIBUTION
• The rural population represents people living in the villages and other
remote areas.
• The urban population represents people living in the cities and other
developed areas.
• The suburban population represents population living in the suburbs to avoid
the congestion and noise and pollution of the developed cities.




CONSUMER DEMOGRAPHICS
• Age there are different people of different age groups in the consumer
market.
• Family life cycle stages, the various forms families can take over timeare
major determinant of behavior. different stages are:
1. Batchelor stage: young, single people
2. young married couple with no children
3. full nest I: young married couple with children
4. single parent: young or middle age people with dependent children
5. divorced and alone: divorced without dependent children
6. middle-aged married: middle aged married couple with no children
7. full nest II: middle-aged married couple with dependent children
8. empty nest: older married couple with no children livig with them
9. Older single: single people still working or retired.
• Education and Income: they both play a very important role in determining
the behavior of the consumers, because expenditure patterns differs due to
different incomes people have and also students at different stage of their
studies have different buying patterns.
• Race and Ethnicity also affects the buying patterns of the customers.

CONSUMER BUYING –DECISION PROCESS

To deal with the marketing environment and make purchases, consumer engages in a
decision process. One way to look at the process is to view as problem solving. When
faced with the problem solved through the purchase. The consumers goes through
a series f logical stages to arrive at the decision, so the stages of the consumer
buying – decision process are as follows:
• Need recognition the consumer is moved to action by a need. every one has
unsatisfied needs and wants that create discomfort. Some needs can be
satisfied by acquiring and consuming goods and services. Thus the process of
deciding what to buy begins when a need that can be satisfied through
consumption becomes strong enough to motivate a person
• Identification of alternatives once the need has been recognized, the
consumer must next identify the alternatives capable of satisfying the
needs. Typically alternative products are identified first , and then
alternative brands
• Evaluation of alternatives this means that how the consumer process the
information to arrive at brand choices. Unfortunately, consumer does not
use a simple and single evaluation process in all buying situation. Instead,
several evaluation processes are at work.




• Then consumer arrives at attitudes towards different brands through some
evaluation procedure. How consumer goes about evaluating purchase
alternatives depends on the individual consumer and the specific buying
situation. in some cases consumers use careful calculation and logical
thinking. At other times, the same consumers do little or no evaluation
instead they buy on impulse or rely on intuition. Sometimes consumers take
buying decision on their own; sometimes they turn to friends, consumer
guides, or sales people for advice. Marketers should study buyers to find out
how they actually evaluate brand alternatives. If they know what evaluative
processes go on , marketers can take steps to influence the buyer’s decision.

 Purchase Decision in the evaluation stage the consumer ranks
different brands and forms purchase intensions .generally, the
consumer’s purchase decision will be to buy the most preferred
brand, but two factors can come between the purchase intention and
the purchase decision. The first factor is the attitude of others. The
second factor is unexpected situational factors. The consumer may
form a purchase intention based on the factors such as expected
income, expected price, and expected product benefits. However
unexpected events may change the purchase intention.
 Post purchase behavior the marketer’s job does not end when the
product is brought. After purchasing the product, the consumer will
be satisfied or dissatisfied and will engage in post purchase behavior
of interest to the marketer. What determine this whether the buyer
is satisfied or dissatisfied with the purchase? The answer lies in the
relationship between the consumer expectations and the products
perceived performance. If the product falls short of the
expectations the consumer is disappointed; if it meets the
expectation the consumer is satisfied; if it exceed expectation, the
consumer is delighted.
The larger the gap between expectations and the performance the larger is
the consumer’s dissatisfaction. This suggests that the sellers should make
product claims that faithfully represents the product performance so than
the buyers are satisfied.

INFORMATION AND THE PURCHASE DECISION

Purchase decision requires information. Until consumer know what products and
brands are available, what features and benefits they offer, who sells them and
what prices, and where they can be purchased, there won’t be a decision process
because there won’t be any decision to make.




There are two sources of information –the commercial environment and social
environment. The commercial environment consists of all marketing organizations
and individuals that attempt to communicate with the consumers. It includes
manufacturers, retailers, advertisers, and sales people whenever any f them engage
in efforts to inform or persuade. Advertising is the most familiar type of
commercial information almost billion of rupees are spent on advertising every year.
Commercial sources also include retail stores clerks, business websites, and
telephone solicitors as well as consumer consumers physical involvement with
products such as trial product use and sampling.
The social environment consists of family, friends, and acquaintances who directly
or indirectly provides information about the product, to appreciate the marketing
significance of these social sources, consider how often your conversation with your
friends and family members deal with purchase you are considering to have made.
The most common social information is the word of mouth communication – two or
more people discussing a product. “Chat room” on the Internet has become popular
places for consumer with similar interests to gather and exchange information.
Other social sources include observing other using products and exposure to the
products in the homes of the others. Recognizing the power of the word-of-mouth
communication marketing try to stimulate it.
When all different types of information are considered, it became apparent that
there is enormous competition for the consumer attention. Consequently the
consumer mind has to marvelously efficient to sort and process this barrage of
information.
To better understand the consumer behavior =, we will began by examining the
social and group forces that influence the psychological make up and also play role
in specific buying decisions

SOCIAL INFLUENCES

Social forces determine the ways we think believe, and act. And is individual buying
decisions-including the needs we experience the alternatives we consider, and the
social forces that surround us affect the ways in which we evaluate them. Our
description begins with culture, the force with the most indirect impact, and moves
to the force with the most direct impact.

CULTURE

Culture is the set of symbols and artifice created by society and handed down from
generation to generation as determinant and regulator of the human behavior. The
symbol may be intangible (attitudes, believes, values, language) or tangible (tools,
housing, products, works of art). Although culture does not include instinctive




biological acts, the wa the people perform instinctive acts such as eating is
culturally influenced . thus every body gets hungry but when and what people eat
vary among cultures.

SUBCULTURES
Subculture are groups in a culture that exhibit characteristic behavior patterns
sufficient to distinguish them from other groups with in the same culture the
behavior pattern that distinguish subcultures are based on factors such as race,
nationality, religion and urban- rural identification

SOCIAL CLASS
Social class is the ranking with in the society determined by the members of the
society. Social class exists in virtually all societies, the people buying behavior is
often strongly influenced by the class to which they belong or to which they are
inspire.
There are five social classes present n our society
 The upper class
 The upper- middle class
 The lower- middle class
 The upper lower class
 The lower-lower class

REFERENCE GROUP
Each group in a society develops its own standards of behavior that then serve as a
guide guides, or frames of reference, for the member. Family and a circle of
friends are such groups. Members share values and are expected too confirm to the
groups behavior patterns. But a person does not have to be the member of the
group to which he is influenced. There are groups we aspire to join ( a campus honor
society or club) and a group we admire even though membership may be impossible
(a professional athletic team). All of these are potencies reference group-groups o
people who influence a person’s attitudes, values, and behavior.
Studies have shown that personal advice in face-to-face groups is much more
effective as a behavior determinant than advertising.
Advertisers are relying on reference group’s influence when they use celebrity
spokespersons. Professional athletes, musician, models, and actors can be influence
people who would like to be associated with them in some way.
Reference group influence in the marketing is not limited to the well-known
personalities, any group whose qualities a person admires can serves as a reference.




FAMILIES AND HOUSEHOLDS
A family is a group of two or more people related by blood, marriage, or adaptation
living together in a household. During their lives many people belong to at least two
families-the one into which they are born and the one they form at a marriage. The
birth family primarily determines core values and attitudes. The marriage family, in
contrast, has a more direct influence on specific purchases. For example family size
is important in the purchase of a car.
There are four important questions to answer while considering family as a
influential factor
 Who influences the buying decision
 Who makes the buying decision
 Who makes the actual decision
 Who uses the products?

SALESMANSHIP
What is salesmanship?
Salesmanship is the process of applying three way management process (planning,
implementation and evaluation) to sales force and its activities. Sales executive
begin by setting sales goals and planning sales force activities. This involves
forecasting sales, preparing sales budgets, establishing sales budgets establishing
sales territories and setting sales quotas.
. Then the sales force must be organized, staffed, and operated to implement the
strategic plans and reach the goals that were set. The final stage involves
evaluating the performance of individual’s sales people as well as appraising the
total sales performance.
Effective salesmanship starts with a qualified sales manager. Finding the right
people for the right job is not easy. In many organizations the common practice
when the sales management position becomes available is to reward the most
productive sales person with a promotion. The assumption is that, as a manager, an
effective sales person will be able to impart the necessary wisdom to make
However, the qualities that lead to effective salesmanship are often the opposite
of the attributes of successful salesperson. Probably the other equally successful
sales person. Probably the biggest difference in the position is that sales people
tends to be self motivated and self reliant, they often work independently,
receiving all the credit or blame for their successes or failures. In contrast, sales
manager must work through and depend on others, and must be prepared to give
recognition rather receive.
To be effectiv4e the sales manager must understand customers, appreciate the
role of the sales people, and have the respect of the sales force. These attributes
can only be required by spending time in sales.




FUNCTION OF SALESMANSHIP

 Staffing and operating a sales force
 Evaluating a sales person performance

DIFFERENCE BETWEEN ADVERTISING AND SALESMANSHIP

Advertising is salesmanship. Its principles are the principles of salesmanship.
Successes and failures in both lines are due to like causes. Thus every advertising
question should be answered by the salesman's standards.
The only purpose of advertising is to make sales. It is profitable or unprofitable
according to its actual sales.
It is not for general effect. It is not to keep your name before the people. It is not
primarily to aid your other salesmen. Treat it as a salesman. Force it to justify
itself. Compare it with other salesmen. Figure its cost and result. Accept no
excuses which good salesmen do not make. Then you will not go far wrong.
The difference is only in degree. Advertising may appeal to thousands while the
salesman talks to one. It involves a corresponding cost. Some people spend $10 per
word on an average advertisement. Therefore every ad should be a super-salesman.

A salesman's mistake may cost little. An advertiser’s mistake may cost a thousand
times that much. Be more cautious, more exacting, therefore. A mediocre salesman
may affect a small part of your trade. Mediocre advertising affects all of your
trade.

Many think of advertising as ad-writing. One must be able to express himself
briefly, clearly and convincingly, just as a salesman must. But fine writing is a
distinct disadvantage. So is unique literary style. They take attention from the
subject. They reveal the hook.
.
Successful salesmen are rarely good speech makers. They have few oratorical
graces. They are plain and sincere men who know their customers and know their
lines. So it is in ad writing. Many of the ablest men in advertising are graduate
salesmen. The best we know have been house-to-house canvassers. They may know
little of grammar, nothing of rhetoric, but they know how to use words that
convince.
There is one simple way to answer many advertising questions. Ask yourself," Would
it help a salesman sell the goods?" "Would it help me sell them if I met a buyer in
person?" A fair answer to those questions avoids countless mistakes. But when one
tries to show off, or does things merely to please himself, he is little likely to
strike a chord which leads people to spend money. Some argue for slogans, some like




clever conceits. Would you use them in personal salesmanship? Can you imagine a
customer whom such things would impress? If not, don't rely on them for selling in
print.
Some say "Be very brief. People will read for little." Would you say that to a
salesman? With a prospect standing before him, would you confine him to any
certain number of words? That would be an unthinkable handicap. So in advertising.
The only readers we get are people whom our subject interests. No one reads ads
for amusements, long or short. Consider them as prospects standing before you,
seeking for information. Give them enough to get action.
Some advocate large type and big headlines. Yet they do not admire salesmen who
talk in loud voices. People read all they care to read in 8-point type. Our magazines
and newspapers are printed in that type. Folks are accustomed to it. Anything
louder is like loud conversation. It gains no attention worthwhile. It may not be
offensive, but it is useless and wasteful. It multiplies the cost of your story. And to
many it seems loud and blatant.
Others look for something queer and unusual. They want ads distinctive in style or
illustration. Would you want that in a salesman? Do not men who act and dress in
normal ways make a far better impression? Some insist on dressy ads. That is all
right to a certain degree, but is quite important. Some poorly-dressed men, prove
to be excellent salesmen. Over dress in either is a fault.
So with countless questions. Measure them by salesmen's standards, not by
amusement standards. Ads are not written to entertain. When they do, those
entertainment seekers are little likely to be the people whom you want. That is one
of the greatest advertising faults. Ad writers abandon their parts. They forget
they are salesmen and try to be performers. Instead of sales, they seek applause.
When you plan or prepare an advertisement, keep before you a typical buyer. Your
subject, your headline has gained his or her attention. Then in everything be guided
by what you would do if you met the buyer face-to-face. If you are a normal man
and a good salesman you will then do your level best.
Don't think of people in the mass. That gives you a blurred view. Think of a typical
individual, man or woman, who is likely to want what you sell. Don't try to be
amusing. Money spending is a serious matter. Don't boast, for all people resent it.
Don't try to show off. Does just what you think a good salesman should do with a
half-sold person before him?
Some advertising men go out in person and sell to people before they plan to write
an ad. One of the ablest of them has spent weeks on one article, selling from house
to house. In this way they learn the reactions from different forms of argument
and approach. They learn what possible buyers want and the factors which don't
appeal. It is quite customary to interview hundreds of possible customers. Others
send out questionnaires to learn the attitude of the buyers. In some way all must
learn how to strike responsive chords. Guesswork is very expensive.




The maker of an advertised article knows the manufacturing side and probably the
dealer’s side. But this very knowledge often leads him astray in respect to
customers. His interests are not in their interests. The advertising man studies the
consumer. He tries to place himself in the position of the buyer. His success largely
depends on doing that to `the exclusion of everything else.
This book will contain no more important chapter than this one on salesmanship. The
reason for most of the non-successes in advertising is trying to sell people what
they do not want. But next to that comes lack of true salesmanship.
Ads are planned and written with some utterly wrong conception. They are written
to please the seller. The interest of the buyer are forgotten. One can never sell
goods profitably, in person or in print, when that attitude exists.

NEGOTIATION

Negotiation means when two parties need to reach agreement on the price and
other terms of sale salesperson need to win the order without making deep
concessions that will hurt profitability.

NEGOCIATION DEFINED

Marketing is concerned with exchange activities and the manner in witch the terms
of purchase is established. In reutilized exchange, terms are established by
administration. In negotiated exchange, price and other terms are set via
bargaining behavior. Growing number of markets are coming under negotiated long
term binding, (e.g.)
 Joint venture
 Franchise
 Subcontracts
 Verbal integration

Negotiation has following features
 At least two or more parties must be involved
 Parties have conflict of interest with one or more issues
 The parties temporarily joined together in a special kind of voluntarily
relationship.
 Activity in the concerns the division or exchange of one or more specific
resource and/or the resolution of one or more intangible issues among the
parties.




 The activity usually involves the presentation of demands or proposal by one
party and evaluation of these by the other, followed by consession and
counter proposals. The activity is sequential rather than simultaneous.

Sales person involves in bargaining need following skills to be successful

 Preparation and planning skills for negotiation
 Knowledge of subject matter of negotiation
 Ability to think clearly and rapidly under pressure and uncertainty
 Ability to express thoughts verbally
 Listening skills
 Ability to persuade others
 Patience

BARGANING TACTICS

Following are some of the tactics used in the negotiation for bargaining

1. If the other party is more powerful, identify your alternative if
settlement is not reached it sets standards against which can be offered it
protects you from being pressurized
2. When the opposite party insists on his or her position and attack your
proposal . better tactic is to deflect the attack from the pers0on and
direct it against the problem
3. Invent options that can satisfy both the parties
4. Invite the opposite party’s criticism and advice (if you were in my position
what will you do)
5. When the other party uses a threat or take –it-or-leave-it tactic or seats
the other party on the other side of the table with the sun in his eyes. A
negotiator raise the issue and question the tactics and desirability and
negotiator over it.
6. The negotiator should recognize his best alternative to a negotiated
agreement (BATANA) and terminate the negotiation.

MANAGING SALES FORCE

NATURE AND TYPES OF SALES PERSON
The sales job is quiet different from the stereotype of the past. The image of the
high pressure, fast friendship is largely outdated as in the nation of price cutting
order chaser.
There are following types of person seller




1. THE PROFESSIONAL SALES PERSON

A new type of sales person has emerged – the professional sales person. Today
these reps are typically managers of designated market, which may be geographical
or category of customers. They frequently engage in a total selling

TYPES OF SALES PERSON
 Driver
 Inside order taker
 Outside order taker
 Missionary sales person
 Sales engineer
 Consultative sales person

Driver
In this type of sale person primarily divides and supplies the product e.g. soft drink
or fuels and service the account
The selling responsibility of these sales person or authorized and rewarded for
finding opportunity to increase sales to existing account.

Inside order taker
In this type of sales person he takes orders and assists the customer at the sellers
place of business e.g. sales clerk of imperial stores

Outside order taker
In this type the sales person goes into the field and finds and requests for orders
e.g. sales rep for a radio station selling advertising time to the local business.

Missionary sales person
This type of sales person is expected to provide information and other services to
existing and potential customers, perform promotional activities, and build goodwill.
A missionary sales person does not solicit orders . an example of this job is an
detail sales person for pharmaceutical firm such as Merck or Lilly.

Sales engineer
In this position the major emphasis is on the sales person’s ability to explain the
product to the customer and also to adapt the product to a prospective needs of
the customer’s particular needs . the products involved here are typically are
complex , technically sophisticated items. A sales engineer usually provides
technical support and works with another sales representative who calls regularly
on a given account.




Consultative sales person
This involves the creative selling of goods and services. th9is category contains the
most complex , difficult s4lling job – especially the creative selling of services,
because you can’t touch, see taste or smell them .

SELECTING AND RECRUITING SALES PERSON

At the heart of every sales force operation is the recruiting and selecting of good
sales people. The performance difference between an average sales person and top
sales person can be substantial. in a typical sales force , the top 30 percent of the
sales person might bring 60 percent of the sales. Thus careful selection of sales
person can greatly increase overall sales force performance. Beyond the difference
in sales performance, poor selection results in costly turnover. When a sales person
quits, the cost f finding and training new sales person plus the cost of lost sales.

RECRUITING SALES PERSON
Recruitment is the process of finding potential candidates to fill vacant job in an
organization
After the management has decided the needed traits, it must recruit sales people .
the human resource department looks for applicants by getting names from the
following
 Current sales person
 Using employment agencies
 Placing classified ads
 Contracting college students
 Attract top sales people
Several policy and decisions are made in the recruitment phase these dimensions
determine whether the job will filled by man or women or both; By high school
graduates; business school graduates; or university graduates; by people who cn
command highest salaries in their occupation, or by people willing to work for
minimum wages.

SELECTING
The selecting process is not the a one-shot approach in choosing the suitable
candidate for the job. It involves a series of steps. Each step important because at
each stage, information may be revealed which will disqualify the candidate a
candidate has to pass through the series of barriers before getting the job in each
of these steps job description matched with the job specification.

Sales force selection involves three important tasks




 Determining types of people needed by preparing the written job
description;
 There have been many attempts to identify general set of personality
attribute that explains selling success, however this list tends to be little
practical because they consists of common sense characteristics. Some
company analyze personal history of their existing sales representativein
effort to determine the trait common to successful performers, even than
when company thinks it knpows what attributes are measuring to which
quality should be present on the extent and abondance of one set the lack of
another is difficult, a better approach is to identify the specification for
the practice job, just as if the company were purchasing equipment or
supplies rather than manufacturing for which detailed job description is
required.
 The description than become the basis for identifying the aptitude skills a
need to perform the job.

Recruiting an adequate number of employees;
A planned system of recruiting, a sufficient no of applicants is the next step in the
selection
A good recruiting system involves;
 Operates continually, not only when sales force vacancies occur.
 It is systematic in reaching all appropriate sources of applicants
 Provides flow of more qualified applicants than is needed

Following are the steps in the selection process
1. Preliminary interview or screening
2. Application blanks
3. Testing
4. Interviews
5. Reference check
6. Meeting with the departmental head
7. Physical examination
8. Induction

RECRUITING APPLICANTS

A planned system for recruiting sufficient number of employees is the next step in
the selection process a good recruiting system:
 Operates continuously, not only sales force vacancies occur.
 Is systematic in reaching all appropriate sources of applicants.
 Provide a flow of more qualified applicants than is needed.




 To identify, large organizations often use placement services on college
campus or professional employment agencies. Smaller firms that need fewer
new sales people may place classified ads in trade publication and daily
newspaper.
 Many firms solicit recommendations from company employees, customers or
suppliers.
MATCHING APPLICANTS WITH HIRING SPECIFICATIONS

Sales managers use a variety of techniques –including application forms interviews,
examinations-to determine which applicants posses the desired qualification.
Virtually all companies ask candidates to fill out application indicates areas that
should be explored in an interview
No sales people should hired without at least one personal interview conducted by
different people in different physical settings . pooling the opinions of a number of
people increases the likelihood of discovering any undesirable characteristics and
reduces the effects of one interviewer’s possible bias.
The individual involved in the selection process need to be aware of the laws against
discrimination in order to avoid inadvertent violations.

TRAINING SALES FORCE

Training is the organized procedure by which people acquire knowledge and /or
skills for a definite purpose because competitors have much programmed. The need
for the trainings program should be scientifically determined and they must be
designed to meet those needs. a number of approaches have been suggested by the
scholars, researchers, and experts for determining organization’s training needs.
Moore and Dutton contend that location; size and magnitude of training needs
should be determined in order to get effective results for the money being spend
for training

Many companies sends their sales representatives into the field immediately after
hiring them they are supplied with samples, order book, and the description of their
territory but mush of the selling is ineffective and unreliable, today the customers
are mush educated and more demanding and many more supplies customer expert
sales to have deep knowledge, to ideas, to improve the customer operation and to
effective and reliable, this require much higher investment in training. Training
programs are off course costly, they involve large outlays for instructors,
materials, and space, paying a person who is not yet selling and closing opportunity
because he or she is not in the field.
Today’s sales representative spends a few weeks to several months in training. The
median training period is 28 in service companies and 4 weeks in consumer Products




Company. Training time varies in the complexity of the selling task and the type of
person recruited into the sales organization.

The training has several goals;
 Sales representative require to know the company
 He needs to know the products of the company
 Sales reps needs to know the customers and competitors.
 Sales reps need to know how to make effective sales presentation.
 Sales reps need to understand field procedure and responsibilities.

COMPENSATING SALES PEOPLE

To attract sales people, a company must have an appealing compensation plan these
plans vary greatly both by industry and by companies within the same industry. The
level of the compensation must be close to the going rate for the type of the sales
job and needed skills. To pay less than the going rate would attract too few quality
sales people; to pay more would be unnecessary.

METHOD OF COMPENSATION
Financial rewards are by far most widely tools for motivating sales people, it is very
important to design and administer in effective sales compensation , financial
rewards may be direct payments (salaries, wages) or indirect monetary
compensation (paid vacation, pension, or insurance plan)
Establishing a compensation system cause for decisions concerning the level of
compensation as well as level of compensation.

Three widely used methods of sales force compensation are;
 Straight salary a straight salary is affixed payments for a period of time
during which sales person is working it is typically used while compensating
new sales person or missionary sales person, opening new territory, selling a
technical product that require lengthy period of negotiation it provides a
security and stability of earning for sales reps. This plan gives management
control over reps efforts and the reps are likely to spend time on n0onselling
activities that caters to customer’s best interest. The drawback of this
method is that it does not offers any incentives for employees.
 Straight commission a commission is the payments tied to specific unit of
accomplishment. Thus a rep may be paid 5% of every sale. a commission
method tends to have just opposite merits and limitations of straight
method
It is used when;
1. a strong incentive is needed to generate sales




2. a very little non selling work is required.
3. a company is financially weak and must its compensation expenses
directly to sales
A heavy emphasis on commission can cause emphasis on sales not on
customers.
The ideal method is the combination plan, that has the best features of
both the straight salary and straight commission

SUPERVISING A SALES FORCE

Supervising a sales people is difficult because sales people work independently at
far flung areas, locations and where they cannot be observed continually, if too
closely it can duly constrains the sales people, one of the attraction of the selling
job the freedom it offers sales people to develop creative solutions to customers
problems, close supervision can use this sense of independence, but also little
supervision can contribute to the lack of direction sales people who are not
supervised may not understand what the companies and supervisors expects from
them.(e.g.) how mush time to spend servicing existence accounts, and how much
developing new businesses.

METHOD OF SUPERVISION
 Personal observation the most effective supervisory method is personal
observation in the field. Typically at least half manager’s time is spend
traveling with sales persons.
 Reports sales people and check by sales managers prepare daily, weekly and
monthly reports.
 Annual calling plans it show that which prospects to call at which month and
which activities to carry out. Activities include taking parts in trade shows
etc
 Time and duty analysis this shows how the sales person spend it time on
different activities.
 Internet the fastest growing sales force technology tool is the internet
which helps to gather competitive information, monitoring customers
websites and researching industrial and specific customers.

EVALUATING SALES PEOPLE

Managing sales people include evaluating the performance of sales people. Sales
executive must know what the sales force is doing in order to reward them or make
constructive use proposals for improvements. By establishing performance
standards and studding sales people’s activities, managers can develop new training




programs to upgrade the performance of the sale force’s efforts. And, of course,
performance should be the basis for compensation decision and other rewards.
Performance evaluation can also help sales people identify opportunities for
improving their efforts. Employees with poor sales record know they are doing
something wrong. However, they may not know the problem if they lack objective
standards by which to measure their performance.
To improve the performance of the sales person it is very important for the sales
manager to know the actual performance of the sales rep, some of the sources of
information are ;

 Sales reports monthly weekly and daily work plans and longer term territory
marketing plans helps an executive to evaluate performance of the sales
person
 Call reports it is another source of information it shows which person or
prospect to call on at which time.
 Expense reports these reports helps to understand the activities of the
sales person s. these expenses are partly or wholly repaid to the sales
person.
 Internet it is now most widely used tool for gathering information.

TYPES OF EVALUATION

Formal evaluation it produces several benefits it forces management to develop and
communicate clear standards for judging performance and together well balance
information about each sales person.
Formal evaluation gives sales people constructive feed back that helps them to
improve future performance finally sales people are motivated to perform well
because they will have to sit down with sales manages and explain their
performance.
In formal evaluation managers compares a sales person’s current performance with
the 0ast performance such as a comparison should directly indicate the person’s
progress.

EVALUATION ON QUANTITATIVE BASES

Sales performance should be evaluated in terms of inputs (effort) and output
(result) to gather inputs such as sales volume or gross margin provide a measure of
selling effectiveness.
In quantitative evaluation we measure following;
 Call rate: no of calls per day or a week
No of formal proposals presented



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