Salesmanship Dba Ii Complete Notes

Salesmanship (Complete Course Reference Material)

Salesmanship Remember: Nothing is our

but Time.

ICMS College System for Boys

Lecturer

: Arshad

Zia Siddiqui

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

DBA Part II

1

Salesmanship (Complete Course Reference Material) CHAPTER NO 1

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

2

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

3

Salesmanship (Complete Course Reference Material) • • • • •

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

4

Salesmanship (Complete Course Reference Material)

DBA Part II

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

Lecturer

: Arshad

Zia Siddiqui

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

5

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

6

Salesmanship (Complete Course Reference Material)

DBA Part II

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.

Lecturer

: Arshad

Zia Siddiqui

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

7

Salesmanship (Complete Course Reference Material)

DBA Part II

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.

Lecturer

: Arshad

Zia Siddiqui

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

8

Salesmanship (Complete Course Reference Material) CHAPTER NO 2

DBA Part II

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

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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 Lecturer

: Arshad

Zia Siddiqui

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

9

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Tshirts 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 Lecturer

: Arshad

Zia Siddiqui

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

10

Salesmanship (Complete Course Reference Material)

DBA Part II

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: Lecturer

: Arshad

Zia Siddiqui

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

11

Salesmanship (Complete Course Reference Material) 1. 2. 3. 4.

DBA Part II

Target Audience Objectives of promotion effort Nature of the product Stage in the product life cycle Amount of money available for promotion

5.

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

• •

•

•

Lecturer

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 : Arshad

Zia Siddiqui

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

12

Salesmanship (Complete Course Reference Material)

•

•

DBA Part II

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.

Lecturer

: Arshad

Zia Siddiqui

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

13

Salesmanship (Complete Course Reference Material)

DBA Part II

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: • • • • •

Lecturer

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. : Arshad

Zia Siddiqui

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

14

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

15

Salesmanship (Complete Course Reference Material)

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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.

Lecturer

: Arshad

Zia Siddiqui

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

16

Salesmanship (Complete Course Reference Material)

DBA Part II

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

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Communicating: sales representatives skillfully communicate information about the companies products and services

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Targeting: they decide how to allocate their scarce time among prospects and customers

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

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Information gathering: Sales representative conduct market research and intelligences work and fill in call reports

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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. Lecturer

: Arshad

Zia Siddiqui

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

17

Salesmanship (Complete Course Reference Material)

DBA Part II

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 satisfaction

effort

Performance

reward

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

Lecturer

: Arshad

Zia Siddiqui

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

18

Salesmanship (Complete Course Reference Material)

DBA Part II

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 marketingwhich 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. Lecturer

: Arshad

Zia Siddiqui

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

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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.

Lecturer

: Arshad

Zia Siddiqui

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

20

Salesmanship (Complete Course Reference Material)

DBA Part II

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.

Lecturer

: Arshad

Zia Siddiqui

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

21

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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

Lecturer

: Arshad

Zia Siddiqui

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

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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.

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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.

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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.

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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.

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Lecturer

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”. : Arshad

Zia Siddiqui

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

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Referent power. the sales person build on any shared characteristics, interests, and acquaintances.

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Ingratiation. The sales person provides personal favor( a free lunch, promotional gratuities) to strengthen affiliation and reciprocity feelings.

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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 Lecturer

: Arshad

Zia Siddiqui

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

24

Salesmanship (Complete Course Reference Material) • • • • •

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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

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The rural population represents people living in the villages and other remote areas.

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The urban population represents people living in the cities and other developed areas.

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The suburban population represents population living in the suburbs to avoid the congestion and noise and pollution of the developed cities.

Lecturer

: Arshad

Zia Siddiqui

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

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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:

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•

Lecturer

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. : Arshad

Zia Siddiqui

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

26

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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. Lecturer

: Arshad

Zia Siddiqui

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

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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 Lecturer

: Arshad

Zia Siddiqui

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

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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.

Lecturer

: Arshad

Zia Siddiqui

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

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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.

Lecturer

: Arshad

Zia Siddiqui

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

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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 Lecturer

: Arshad

Zia Siddiqui

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

31

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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. Lecturer

: Arshad

Zia Siddiqui

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

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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.

Lecturer

: Arshad

Zia Siddiqui

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

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 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 Lecturer

: Arshad

Zia Siddiqui

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

34

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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. Lecturer

: Arshad

Zia Siddiqui

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

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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 Lecturer

: Arshad

Zia Siddiqui

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

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 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. Lecturer

: Arshad

Zia Siddiqui

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

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 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 Lecturer

: Arshad

Zia Siddiqui

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

38

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

39

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

40

Salesmanship (Complete Course Reference Material)

DBA Part II

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 Lecturer

: Arshad

Zia Siddiqui

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

41

Salesmanship (Complete Course Reference Material)

DBA Part II

 Non selling activities: no of promotional displays set or training session held with distributors and dealers  Sales volume per product, customer group  Sales volume as %age of quota  Gross margin per product  No of orders and amount  Closing rate: no of orders divided by no of calls. QUALITATIVE EVALUATION Performance evaluation would be much easier if it could be based on quantitative criteria. The standard would be absolute and deviation from standard could be measure precisely. Qualitative measure would also minimize the subjectivity and personal bias evaluators. Some commonly facts are:  Knowledge of company’s products, policies and competitor.  Time management and preparation  Customer relations  Personal appearance.

Lecturer

: Arshad

Zia Siddiqui

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

42