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Unit13
Structure

PersonalCommunicationChannels

13.1. Introduction 13.2. Personalselling 13.3. Salesmanagement: 13.4. Personalsellingprocess 13.5. Directmarketing

13.6. Summary Terminalquestions AnswerstoSAQsandTQs

13.1. Introduction Advertisement clutter and large product assortment are posing new challenges. One of the major challenges is how to reach consumer. The indirect media has an influence on consumer but its effectiveness in generating the sales has diminished over the period. Organizations are looking towards interpersonal communications. As we discussed in the last chapter, companies are encouraging word of mouth communication and viral marketing. They are concentrating on enhancing the effectiveness and efficiency of their sale force. In this unit, we are discussing the personalselling,salesforcemanagementanddirectmarketingconcepts LearningObjectives Afterstudyingthisunit,youwillbeableto 1. Definethepersonalselling 2. Understandtheprocessofpersonalselling 3. Analyzethesalesmanagementtechniques. 4. Identifyanddiscussthemajorformsofdirectmarketing.

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13.2.Personalselling The communication technique in which sales people builds the personal relationship with customerstogeneratethevaluefortheorganization. Thevaluemaybesalesforthesalesforceandbenefitstothecustomer.Thevaluemaynotbeonly financial gains, but it may be providing the information to customer. For example, Medical representativesofCIPLAprovidetheinformationtodoctorsandtheydontsellthemedicinetothem. 13.2.1.Natureofpersonalselling Personalsellinghasexperiencedtheparadigmshift.Therewastimewhensalesjobsareperceived to be low. The emergence of modern corporations and rise of new India is in dire need of professionalselling.Nowdaysitisnotmereselling.Itisusingprofessionalskillstohavealongterm relationshipwiththecustomerstogeneratethevaluecontinuously.Thishasresultedinthegrowth ofprofessionalsalesforce.Evencompaniesthatbelievedinmarketingthroughchannelsenteredinto the personal selling. For example, Hindustan Unilever Limited (HUL) which is having retail and wholesale channels, recentlyentered into the network marketing. There are varioustypes of sales jobsusedtoselltheproductoftheorganizations.Theyare 1. Delivering:Thejobofsalesexecutiveistoreachtheproductstothecustomerdestination.For example, A sales person working for transport or courier company reaches the goods to the customerplaces. 2. Inside order taker: Sales executives in the retail stores like subhiksha help the customer in identifyingtheproduct.Thepersoninthehoteltakestheorderandservesbetter. 3. Outsideorder:thesearefieldexecutiveswhogotothecustomerplaceandgettheorder. 4. Missionaryselling:salesexecutivesprovidetheinformationandpromotethecompanyproducts medicalrepresentatives. 5. Sales engineer: In this position, the sales executive is technical expert and works with nontechnical sales executive to provide assistance on technical information sought by the customer.

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13.2.2.ApproachesToPersonalSelling 1.Stimulusresponseselling:Inthisapproach,salespersonprovidesthestimulusandexpectsthe responsefromthebuyer.Thisprocesswillcontinuetillpurchasedecisionhasmade. 2.Needsatisfactionselling:Inthisapproach,salesexecutiveidentifiestheneedoftheproductinthe customerandconfirmsit.Heprovidesthevariousofferingstothecustomertochooseandcontinue thisprocesstillthepurchasehasmade. 3.Problemsolvingselling:Thisapproachisusedwhenthecustomerfacesthepurchasingproblem. In this approach, sales executive defines the problem of the customer, generate the alternative solutionandevaluatethem.Thenheworkswithparticularsolutiontillthecustomerpurchase. 13.3.3.SituationsThatFavorPersonalSelling 1.Thepriceoftheproductishigh,technicalinnatureandneedsdemonstration. 2.Theproductisintheintroductorystageoftheproductlifecycle. 3.Organizationdoesnothaveenoughmoneytocarryadvertisementcampaigns. 4.Productcanbecustomizedand 5.Marketisconcentrated. 13.3.4. AdvantagesAndDisadvantagesOfPersonalSelling Advantages v Itcanbecustomized v Itcanfocusonprospectivecustomers. v Itresultsintheactualsale,whilemostotherformsofpromotionareusedinmovingthecustomer closertothesale. Disadvantages v Itiscostlytodevelopandoperateasalesforce.
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v Itisverydifficulttoattractupperclasspeople. 13.3.Salesmanagement 13.3.1. Deciding the sales territory: This is the geographical boundary set for sales executives to work in. The objective of setting up territory is to avoid the conflict between two sales executives. This will help to set particular quota for sales executives and shall be used for performanceevaluation. 13.3.2.Salesforcesize:Thesalesforcesizeisdecidedbytheworkloadmethod.Workloadmethod consistsof a.Identificationofcustomersandgroupingthemintodifferentcategories. b.Listouttheactivitiessalesexecutivehastoperform. c.findoutthetimeavailableforsellingandnonsellingactivitiesofsalesexecutives. d.Analyzethenumberofcallsonehastodoinaparticularperiod. e.calculatethenumberofsalespeoplerequired. 13.3.3.Salesorganization:salesactivitiesintheorganizationareallottedonthebasisofgeography (Bangalore, Mysore etc), product (personal care, water purifier etc) customer (steel companies,electriccompaniesetc)ormatrixtype.Thishelpscompanytohavebetter controloverthesalesexecutives. 13.3.4.HRpracticesinsalesmanagement v Recruiting: Recruitment is a process of finding out candidates, who are encouraged to apply. Selection is process of choosing some out of many candidates. Therefore, we can say that selection is recruitment, but recruitment is not selection. Selection is a process of rejection of unfits. Recruitmentprecedestheselectionprocess.

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Afterdecidingthenumberofsalesmanandtheobjectives,thesalesmanagermustselectpersonnel. Theusualsourcesofrecruitmentmaybeeitherinternalorexternal. InternalSources:Manyfirmsfeelthatthebestpolicytofillthevacanciesofsalesmenisfromoutof theexistingemployeesofthesameorganization.Itmayalsobetermedaspromotion.Thiscanwell beadoptedbyanalyzingtheabilityandpromisingcharacterofthestaffonthebasisofseniorityi.e., lengthofservices. Merits: 1. Muchcooperationcanbeexpected. 2. Theyareloyal. 3. Sinceitisapromotion,sincereandhonestperformancecanbeexpected. 4. Theymaynotneedtraining. 5. Theymaynotneedhighsalary. Demerits: 1. Thereislimitedscopeforselection. 2. Favoritismplaysitsrole. 3. Thepersonmaynotadjusthimselftothenewjobasthenatureofworkisdifferent. Apart from the internal selection, exemployees of the company can also be appointed if they are willingtoacceptajob.Thispolicyisbetterandcanprofitablybeadopted. ExternalSources: Wehavethefollowingsources: 1. EmploymentExchange 2. Competitorsorganization 3. Salesmanofnoncompetingfirms 4. EducationalInstitutions 5. Recommendedcases 6. Advertisement 7. Unsolicitedapplicationsetc. 1)`Employment Exchange: Private and public employment exchanges are the best source of personnel.Theymaintainproperregisterswithnamesandotherfulldetailsofpersons,suchas job referred by those who seek jobs. The sales manager can call personsfrom exchange,by

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giving job specification to the officer concerned. In almost all cases the candidates may be untrainedandinexperiencedhandsrequiringfurthertraining. 2) Competitors Organization: The salesmen employed in other competing firms can also be chosen.Butthismethodisnotmorallyaccepted.Hemaybetrainedandmaybedevelopinghis firm. Such aperson canbedrawnby temptation bygiving morefacilitiesand ahigher salary. Butitmustbeverifiedhowfarheisabletomeetthesalesobjectives,consideringhissincerity, loyalty,habitsetcSuchaman,whenhegetssomeadditionalbenefitsfromsomeotherfirms,will followthesametacticsi.e.,leavethefirm. 3)SalesmanofNoncompetingFirms:Salesmancanalsobechosenfromnoncompetingfirms. Suchpersonsmayhaveexperienceintheline,ifnottouchwiththeparticularproduct.Theymay needtrainingtocomeuptothelevelofaimedsalesobjectives. 4) Educational Institutions: Advanced countries like America, England etc., select students directly from specialized institutions, where theoretical and practical knowledge is gained by them. The Institutional Heads maintain complete records of students but as far as India is concerned, the chances are rare. It has been neglected with the feeling, just from egg i.e., inexperienced. 5) Recommended cases: The employees of the firmmanagers, superintendents, section heads etc.,mayrecommendcandidatesfromtheirfriendcircles.Theyhaveamoralresponsibilitywhen such persons are recruited. The employee who recommends personnel will be blamed, if the personisfoundunit. 6) Advertisement: This is a system generally accepted by firms in recruiting salesmen.

Advertisementsaredisplayedinnewspapers,tradejournalsspecifyingthejobandtherequired qualifications,experienceandskill.Thereisthepossibilityofawiderscopeofselection,asthe newsspreadsoverawidegeographicalarea. v Selecting: Selection procedure differs from firm to firm. Each firm has got its own method in choosing men for employment. The qualities that the recruiters seek in men to be appointed, depends on the job description. Similarly the selection method also depends upon the sales management.Generally,thefollowingstepsarefollowed:
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1. Applicationblank 2. Screening 3. Reference 4. Personalinterview 5. Test 6. Medicalexamination 7. Finalinterview(appointment) a) Application Blank: Necessary information about theapplicant is requiredtobe consideredfor appointment.Generally,thecandidatesareaskedtoapplyoncompanysapplicationform,sent directlytoapplicantsagainstarequisitionoranapplicationisknownasapplicationblankgivenin theadvertisementitself.Thisiswithaviewtogatheronlythenecessarydetailsoftheapplicants. It contains a number of questions, when filled in, gives a clear idea about the candidate. Generally, it may containthename, sex,qualification,age,experience, health, social activities, referencesetc. b) Screening:Allapplicationswillnotbeconsidered.Screeningisaprocessbywhichapplications are to be screened out (rejected)fromfurther consideration, on the basisof unsuitability. The remainingapplicationsareformallyconsideredforappointment,subjecttofurtherformalities.By rejectingtheapplicationsofunqualifiedapplicants,muchtimeandenergycanbesavedinfurther processing. c) Reference:Generally,itisacommonpracticetoasktheapplicanttomentionthenamesoftwo references or referees, to whom the sales manager can make enquiries about the integrity, generalcharacterandabilityoftheapplicantconcerned.Thequalitiesarecheckedwithcareand caution by the sales manager, by contacting the referees. If the opinions are favorable, the applicationspassontothenextstageandincasetherefereegivesunfavorablecomment,the applicationisrejectedatthisstage. Personal contact is necessary and it is better, because people are straight forward in tongue betterthaninpen.Thisisonesided,buttheeffectivenessofsuchopinionisdoubted,asthere may be chances of telling only the good qualities of applicants. Moreover, only the names of such favorable persons are mentioned in reference, with preintimation. To overcome this, personalinterviewisessential.
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d) Personal Interview: This is an important step in the process of selection. Only the screened applications are considered for selection and the firm sends out interview letters. Personal interview is a must. By this interview, the sales manager can understand the positive and negativequalitiesoftheapplicant,withreferencetothejobduties.Agoodinterviewermustbe unbiased,abletodiscoverfactsandbeakeenobserveroftheinterviewee. Interviews are also of two types: (a) Patterned and nonpatterned. Under patterned interview, questionsaredesignedandthesamequestionsareaskedtoall,whichiseasyforcomparison purposes. (b) In nonpatterned interview, no standardized questions are asked. The applicantisallowedtotalkfreely.Afewdirectquestionsareasked.Bythistypeofinterview,the applicantgetsachanceofspeakingabouthisattitudeandinterestfreely.Theinterviewermust beabletomakeaneasyevaluationoftheinterview. e) Tests: Test isan additional tool, with which theapplicants arefurther testedto determine their suitability to the job. Generally, following are the important types of psychological tests conducted: (i) AbilityTest:Thistestisdevisedtoascertainthecapacitytograspthings,andisameasureto knowhowwellapersonperformsaparticulartaskwithmotivation.Thiscanalsobecalleda mental ability or intelligence test. Such tests determine the suitability of a candidate for a particularjob. (ii) HabitualCharacteristicTest:Amanmaybeintelligentbutmayhesitatetotakeadecision. Thistestisaimedtoknowonesaptitudeandinterestonnormal,dailywork,irrespectiveofthe bestbehavioroccasionally. (iii)AchievementTest:Thistestisdesignedtoknowwhatknowledgeamanhasgainedfromhis educationortraining. Byallthesepsychologicaltests,theabilityandsuitabilityofacandidatecanbeverified.Onecan aim to evaluate the honesty, cheerfulness, leadership quality, assertiveness, cooperation, supervision capacity, emotional stability, determination, ability etc., of the personnel. The effectivenessandreliabilityofthesetestsarequestionable,asthequalitiescannotbemeasured exactlyandthecircumstancestobefacedbysalesmanarealsodifferent. f) Medical Examination: The important thing about any person, apart from all qualities and eligibility,isthathemustbephysicallyfitforthejob.Diseasesandphysicaldeficienciesofthe
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salesmen will affect the business. As such, selected applicants have to undergo medical examination. g) Final Interview and Appointment: The selected applicant is probably, called for a final interviewandhissuitabilityismeasuredthroughdifferenttests,physicalreportsetc.Thejobmust be explained to him along with all relevant details, which are required to perform the duties efficiently. Ifeverythingisinfavoroftheapplicant,anagreementmustbeexecutedbyhim.Generally,the agreement contains duties and authorities, sales quota, sales territory allotted, salary and conditionsofresigning.Itisfollowedbyanappointmentorder,whichcontainsdesignation,jobs tobeperformed,salaryandotherfinancialbenefitsetc. v Training Trainingisacontinuationofselection.Havingselectedthesalesmen,therearetwooptions.They canbesenttothefielddirectlywithsamples,orderbooksetc.,(bornsalesman)and/ortheycanbe sentfortrainingprogramme.Somepeoplethinkthatsalesmanshipisborninman,butthereareonly bornsalesmen,likeborndoctors,lawyer,engineers,teachersetc.Howeverallthesepeopleneed trainingtocallthemqualified,andsoalsoisthecasewithsalesman.Amanmayhaveinterestinthe profession.Theinterestcanbefullydeveloped,throughpropertraining.Oneattainsperfection,self developmentetc.,throughtraining. Trainingmeansitistheprocessofperfectingthesalesmenfortheirwork.Trainingprogrammeare organizedprocedureormethodsthroughwhichknowledgeaswellasskill,foradefinitepurpose,is acquired. By training, one can increase knowledge in a particular field. The salesmanship is not bornbutcanbemadeeffectivethroughtraining. Significance of Training: The present era of marketing world is full of stiff and cutthroat competition.Theworldisdynamicandnotstatic.Customersaremorebenefitoriented.Producers, inordertomeettheeverchangingdemandsoftheconsumers,producenewproducts,newdevices, andproductswithmultipleusesandsoon.Thus,trainingorrepeatedtrainingisessentialtokeepthe salesmen,withuptodateknowledge,inrespectofnewordevelopedgoods.Traininggivesscope forimprovement.

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ObjectivesofTraining:Theobjectivesaresummedupbelow: 1. To facilitate the salesmen to acquire the technique and principles of salesmanship, process of sales,canvassingetc. 2. Tobringdownthelaborturnoverinthesalesforce. 3. Tofacilitatebettersalesperformance. 4. Toimprovetherelationswiththecustomers. 5. Toincreasetheefficiencyofsalespersonnel. 6. Tokeepthesalesmaninformedoftheknowledgeofproducts,market,competitorsetc.,tofaceall situations. 7. Tolowerthesellingexpensesoastoincreasetheprofits. 8. Tomaintainsoundrelationbetweenemployerandemployee. 9. Todevelopbetterknowledge,andthewaysandmeanstoresistallsituations. 10. Tomotivatetheconsumersmoreeffectively.

AdvantagesofTrainingtoSalesman 1) Atrainedsalesmanalwayswinscustomersbysystematicapproach. 2) Salesman acquires better understanding of the firm, as to its past history, policies and proceduresandthishelpsthesalesmanforeffectivedealings. 3) Atrainedsalesmantakeslesstimeinconcludingasaleearlysellingmaturity. 4) Atrainedsalesmanbringsincreasedvolumeofsales,inturn,moreprofittothefirmandhimself. 5) Atrainedsalesmanisabletomeetconsumersdemandandhelpinsolvingproblems. 6) Increased volume of sales facilitates reduction in cost of production i.e., sales rise faster than expected.Thecostperunitoforderorperprospectcanbeminimized. 7) A better relation is created among the customers through reducing customers complaint, increasingbrandloyaltyetc.Customerssatisfactionisgained. 8) Theabilityofthesalesmanisincreasedbyexpertknowledge. 9) Controllingofsalesmanbecomeseasy.

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10) Training facilitates better demonstrations, selling the products which have high profit margin, better methods of canvassing etc. Sales training helps to increase the sales volume. Supervisioncostisreducedastrainedsalesmanneedslesssupervision. TrainingProgramme:Afirmshouldchalkoutaprogrammeforsalestraining.Thetrainingisbased onthenatureofthejobandtheproductstobesold.Aplannedtrainingprogrammeshouldfunction withthefollowingideasorprinciples,oftenreferredtoasACMEE. A:AimofTraining C:ContentofTraining M:MethodofTraining E:ExecutionofTraining E:Evaluation. 1.AimofTraining:Thewholeideabehindthetrainingistomakearecruitagoodsalesman.Itis truethatsomeofthequalitiesofagoodsalesmanmaybeinherentinhim,butnotallqualities.Itis thetrainingwhichmakeshimtohaveallqualitiesrequiredofasalesman.Itmustaimtomakehima guide to the buyer taking into account his needs, problems etc. and to make him a salesman of effectivepowerbywhichaninterestintheproductmaybearousedandadesiretopurchasemaybe created. 2.ContentofTraining:Nohardandfastrulescanbelaiddownastothecontentsoftraining.The content of the training programme relates to the subjectmatter of training. A training programme varies from firm to firm, because of the differences in products, markets, policies of the company, trainees ability etc. In general terms, sales training is the teaching of salesman and prospective salesmenhowtodotheirjobsbetter.Agoodtrainingprogrammefacilitatesthetraineesalesmanto learnandunderstandthefollowingcontents: (a) Theknowledgeofhisjob (b) Theproducts (c) Thecompany
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(d) Themarketsandconsumers (e) Thecompetitors (f) Thesalestechniques (g) Theroutinereportsetc. (a)TheKnowledgeofhisJob:Thejobofasalesmanisnotcomplete,assoonasthetransferof goodstakesplace.Thesalesmanoftodaycarriesmoreweightthanthesalesmanwhomerelytakes orders. He must understand what the firm expects of him what power he possesses and how to convincethebuyersaboutthecompanysproductandimage.Thecompanyassignsresponsibilities andpowers,withwhichheworksasaguidetobuyersbyprojectingthemeritsoftheproductsandon the other hand with profit to the firm. He is expected to do services to both the firm and the customers.Hemusthaveconcreteplansastohissalesplanning,meetingcustomers,salestalks, demonstration, presenting the goods, concluding sales, securing order, collecting dues, handling objectionsandcomplaintsetc.Apartfromthese,hemustbeakeenobserverofmarketconditions, competition,consumerslikesanddislikesetc.Heshouldcooperatewithhisseniorfellows.Thus, heistrainedwithapurpose,theaimofhisappointmentbeingtoknowwhatthefirmeagerlyexpects fromhim. (b)TheProducts:Agoodunderstandingoftheproductisessential.Thefirmmustgiveorensure thatthesalesmanhasathoroughknowledgeoftheproducts,tobedealtwith.Inbrief,theyare: 1. Rawmaterialsusedintheproduct. 2. Manufacturingmethodsinbrief. 3. Researchanddevelopmentundertaken. 4. Improvementbroughtout. 5. Itssuitabilitytotheconsumers. 6. Itstrademark,brand,characteristics. 7. Itscolor,weight,packaging,qualitycontroletc. 8. Sellingpointsoftheproducts. 9. Productmeritsandusestoconsumers. 10. Limitationoftheproductperformance.
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11. Itspriceanddiscountsoffered. 12. Serviceaftersalesandguaranteeperiod. 13. Demonstrationofitsactualworking. 14. Availabilityoftheproducts. 15. Costofoperationandmaintenance. 16. Comparativestudyofsimilarproducts. 17. Strengthandweaknessofcompetitorsproducts. 18. Thepositionoftheproductintheproductline. Theabovesaidknowledgeoftheproductsisessentialforasalesmansoastoemergeasacreative salesman.Whenthesalesmanhasasoundknowledge,hemeetsthepublicandconvertsthemas buyers,inabetterandmoreefficientway. (c)TheCompany:Asalesmanshouldbewellinformedaboutthefollowing: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) Briefhistoryofthefirm. Itsmarketingpolicies. Objectivesandpurposesofthefirm. Economicandsocialobjectives. Itspositioninthemarketfield. Creditpolicies,salespolicies,personnelpolicies. Capacityoftheplant. Personnelofthefirmdirectors,stockholders. Executionandhandlingoforders,salesaccountingandcollectionmethods. Salary, commission computation, traveling and daily allowances etc. and their payment procedures. Methodofexercisingcontroloverthesalesman. Allocationofquotasandterritories. Marketingpolicies,pricingpolicies. Handling of complaints and their adjustment. A clearcut knowledge about the company is essentialtothesalesmantoenablehimselftoworkaccordingly. (d)TheMarketsandConsumers:Informationaboutthemarketisanimportantandessentialpart of the training programme. The salesman must have a thorough knowledge of the size of the market,demandfortheproductsandtheareaunderthecompetitorsside.Besidestheknowledge
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ofthemarket,salesmanshouldknowaboutthetypeofcustomers,buyingmotives,likesanddislikes of the products. Different types of customers need different types of approaches. People differ widelyfrompersontoperson,sextosex,agetoage,placetoplaceetc.Personsofdifferenttypes requirespecializedwayofpersuasion.Thesalesmanmustadjusthimselfaccordingtothenatureof thecustomers.Ablanketpolicytoallclassesofpeopleisnotadvisable. (e) The Competition: Salesman must be given a good knowledge or comparative study of the sellingactivitiesofrivals.Studyrelatingtocomparisonwiththerivalsastothemeritsanddemerits oftheproductisimportanti.e.,strongaswellasweakpoints.Thesalesmanshouldknowtherival firms policies, method of approaching the customers, how they are paid, the customers opinion, howtheirproductis,howtheyfulfilltheirduties,theareatheylikeordislike,theirsellingpointsetc. (f) The SalesTechnique: Thesales techniques are theessential part in salestraining. After the training,thesalesmanhastobesenttothefield,wherehehastosellthecompanysproduct.He must be given exhaustive training in Sales Process. The selling points must be correlated and sales talk be applied at the appropriate situation. A born salesman has to be instructed with the varioussellingtechniquesindetail.Inshort,trainingonthefollowingitemsmustbeimparted. (a) Sellingprocess. (b) Methodofgaininginterviewfromconsumers. (c) Methodofapproachtoconsumers. (d) Demonstrationandpresentation. (e) Methodofhandlingobjectionsofconsumers. (f) Whysalesmanfailsinthefieldetc. (g) Routine Reports: Salesmen should be trained to know their routine works and submit their reportstothefirm.Thereportmayinclude: (a) Amountofsalesmade. (b) Listofnewcustomers. (c) Creditoutstandingofcustomers.
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(d) CollectionofOutstandingdues. (e) Competitorspositioninthemarket. (f) MaintenanceofAccountsofexpenses. (g) Demonstrationanddisplayofproducts. (h) Actiontakenoncomplaints,grievancesetc. (i) Theattitudeofmarketinrespectofcompetitors. (j) Consumerssuggestionifany. The reports maybe sentto thefirm, daily, weekly or monthlyetc.as directed. The salesmen are eyesandearsofthesellingfirm.Thesalesmanmustbeawareofthemethodofreportingandits importance. TrainingNeedsofSalesmenatDifferentTimes: NewSalesmenNeed: 1. Factsaboutthecompanyhistory,policiesetc. 2. Productdetails 3. Companyssystemandprocedures 4. Fundamentalsofsellingtheirspecificproducts 5. Moraltraining RegularSalesmenneed 1. Theabovefiveitems 2. Changesinpoliciesandprocedures 3. Factsaboutnewproducts 4. Futureplansofthecompany 5. Knowledgetosuperviseothers 6. Knowhowtodischargeresponsibility 7. Attitudeormoraltraining SupervisorsNeed: 1. Skillneededbyothersindischargingduties
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2. Abilitytotrainothers 3. Abilitytoorganize 4. Abilitytoanalyzeandplan 5. Abilitytoevaluateandfollowup TrainingMethods: For imparting training to the salesman,differentmethods are beingused. Broadly,these methods maybedividedintotwo: 1.GroupTraining (a) Lecture Method: An expert or a lecturer speaks to traineesalesmen about the various aspects of selling. It consists of oral talk in a classroom. This system is widely used. The trainees listen to the lectures. The instructor invites questions and answers from them. To make the lecture more interesting, visual aids, demonstration, suitable examples may be added. This system is more economical, and is the easiest and quickest in imparting theoretical training to a group of salesman. But it is difficult to evaluate the effectiveness of lecture method. This method can be used more effectively in continuing sales training programmetoprovidenewinformationorchangesinthepoliciesofthefirm.Thismayinclude seminars,demonstrationetc.,byexpertsalesmen. (b)AudioVisualMethod:Inordertosupplementthelecturing(telling)method,trainingprograms includetheuseofvisualaids,suchasfilms,slides,postersetc.,andarecapableofmaking,them moreinteresting. (c)DiscussionMethod:Thisisagoodmethod.Hereanactualcaseoranimaginarycaseisgiven as a problem to be solved, to the different groups. The case or the problem maybe typed or printed.Eachgroupisaskedtounderstandtheproblemanddrawaconclusion.Afterthis,the different conclusions or suggestions are analyzed collectively, under the leadership of the instructor,indrawinggeneralizationsfromeachcaseorproblem.Thistypeoftrainingenables thesalesmenincorrectingtheirownviews.Itissuitableforasmallgroup.Itisslowandcostly. (d)ConferenceMethod:Salesconferencesandsalesmeetingareakindofgettogetherofallthe concernedstaff,weekly,fortnightlyormonthly.Thethoughtsofvariouspersonsarepooledinthe
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conference. Meetings or conferences have motivating effects as the participants are given chances for creative thinking and to express their views. To make the conference more interesting, dramas, demonstrations etc., are included. Topics like, sales policies, facing competition,publicityideas,dealingswithcomplaintsetc.,aredealtwith.Andthesewillfacilitate theparticipantsinbroadeningtheiroutlookandideas.Butthistypeofmeetingsorconferences isnotsuitablefornewrecruits. (e)RolePlayingMethod:Roleplayingisanewlydevelopedmethod.Thesalestraineesaremade to act out roles in contrived problems. The trainer explains the situation of the problem and assignstheroleofsalesmanandcustomersofdifferentcharacterstothesalestrainees.Each one has to act the assigned role. The trainer watches the role played by each and discusses their weaknesses and strongpoints. Afew may be selected to actthe play, whileothers may watch it. Thus, the salesman have chance to see and understand the ideas in different situations.Itisnotsuitablefornewrecruits. (f)PanelMethod:Membersinthepanelgroupmaybepermanent.Themembers,whoareexperts in the panel, discuss the problems, and solutions are passed to the salestrainee groups, who mayhavefurtherdiscussion.Thissystemisineffective. (g)RoundTablemethod:Itissimilartothediscussionmethod.Itconsistsoffewmembers.The salesmensitaroundatablealongwithagooddiscussionleader.Theydealwiththeproblemsof actual cases. Every participant takes part freely in discussing the problems and solutions. Exchangesofnewideastakeplaceadvantageously. (h) Brain Storming Method: Under this method, more or less, similar to round table conference, persons sit around the table. The leader presents the problems for discussion. The sales traineeshavetounderstandtheproblemsandfindthesolutions.Thesolutionsareanalyzedby theleaderortestedbythepanelofexperts.Thismethodpracticallyfetchesnovalue. 2.IndividualTraining (a) Onthejob Training: Under this method, a new salesman is placedunder anexperiencedor senior salesman who trainshim. First the coach explains the sales techniquesunder different situations. He also takes the trainee along with him on his rounds and gives him chances to
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observe the dealings with the customers. Doubts of the trainee are also clarified. Then the coach along with the trainee calls on customers the sales trainee is allowed to deal with the customerandthecoachobservestheperformance.Ifanyweakpointorshortcomingisfoundin the sales trainee, they discuss how to overcome them. After some time, the sales trainee becomesatrainedandindependentsalesman.Thissystemisgoodfortravelingsalesman. (b) Sales Manual: It is a complied textbook. It contains details of the firm and products, job description,salespolicies,opinionsorreportsrequiredforreferencepurposesetc.Generally,it containsmanyproblemswithsuggestivesolutions.Acopyofthebookisgiventoasalesmanto gothroughitandunderstandtheideas.Itworksasareadyreckoner. (c)InitialorBreakinTraining:Newrecruitsaregivenanorientationtrainingsoastoknowabout thecompanyanditsproducts.Hemaybeallowedtoworkforsometimeinthefirmitselftogain sufficientinformationabouttheproducts.Afterthatheissenttoworkinhisfield. Apartfromtheabove,salesmancanalsobesenttospecializededucationalinstitutions.Thetraining costisbornebythefirm.TherearemanyinstitutionsinIndiawhichimparttheoreticaltrainingalong with practical work. Doors are open and firms can send their new recruits for training. Correspondence courses are also available for initial training. In certain cases, one can undergo trainingwhileoneisfullyemployed.Thisissuitableforsalesmenwhoarewidelyscattered.There aremanyfirmswhichhavepermanenttrainingdepartmentslikecolleges. It is important to note thateventhe trainedorexperienced salesmenneed periodic training, called refresher trainingorfollowup training. This isbecause of the changes inproducts, sales policies, changesinconsumersandmarket,governmentpolicies,newdevelopments,newideasetc. Evaluation of Training: Having trained the salesmen, the marketing manager must evaluate the usefulnessoreffectivenessoftraining,individuallyandcollectivelyonthebasisoftheperformanceof thesalespersonnel.Money,effortandtimehavebeenspentontraining.Therefore,itisnaturalto expectreturns.Evaluationcanbemadeonthebasisofperformanceofsalesexecutiveintermsof sales volume, sales profitability, ordersize, expenses etc., between, before and after training periods.

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AimsofTraining: 1. Topreparethesalesmantodischargehisjobefficiently. 2. Totellhimwhattodo. 3. Toguidehimhowtodemonstrate. 4. Toallowhimtopracticeorperformit. 5. Tocheckhiminhisperformance. v Motivating:Inthisstageorganizationidentifytheattributesthatmotivatesthesalesexecutiveto perform well. Some executive may require money and others may status or control. Here organizations draw two types of incentives. They are financial incentives and non financial incentives.Infinancialincentivessalarypackage,flexibleexpensesandfringebenefitsservesas motivators.Thenonfinancialincentivesincludepromotion,recognitionandawardsareincluded tomotivatethesalesexecutives. v Evaluating:Companiesareinterestedtoknowwhethersalesexecutivesareachievingthequotas setforthem.Toknowthistheyasksalesexecutivestosendthedifferentsalesreports.Itmaybe call reports, expense reports, loss order report, travel plan and expenditure and so on. These reports information are compared against the set standards. On the basis of evaluation report incentivesareannounced,ifrequiredsalesexecutivesaremotivatedandtrained. v Compensation: sales executives are compensated on three methods. They are direct salary, directcommissionandcombinedplans.InDirectsalarymethodsalesexecutivesaregivenfixed salarypermonth.Incaseofdirectcommissionsalesexecutiveswillbeworkingoncommission basisonly.Forexample,Lifeinsuranceagentsgetstraightcommission.Thecombinedmethodis mixtureof straight salaryand straight commission method. In this method sales executivesare paid fixed salary and also commission on the sales they make. For example, BMTC pays its conductorsfixedsalaryandalso2%ofcommissionontotalticketssoldinaday.

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13.3.5.Quota:Thesearethetargetssetforthesalesexecutiveforafixedperiod Thequotacanbeofdifferenttypes.Theyare v Sales quota: Here sales executives are asked to sell on particular volume. For example, organizationmayasksalesexecutivestosellRs50,000worthofgoodsinayearor5000unitsin ayear. v Expense quota: In this case, salesexecutives quotas are seton thebasis of Sales generated andpercentageofitisusedforthesalesexpenses.Forexample,IfsalesexecutiveXachieves Rs 1, 00,000 worth of sales and his expense ratio is 5% then he can spend Rs 5000 for his expenses. v Profitquotas:Hereemphasisisontheprofitmarginbutnotonthevolume.Companywouldlike torealizebetterprofit.Henceitalwaysaskssalesexecutivestogetbettermarginfromthesales. v Activity Quota: In this method sales executive should do multiple tasks. For example, Medical representatives meet the doctors in the morning and explain the product. They also meet the retailerswheretheytrytopushtheproductandtakespromotionalactivities.Intheafternoonthey meetdistributorsandintheeveningtheysendsallthereporttocompanyandcheckstheorder statusfromtheheadoffice. v Combinationquota:Inthistypeofquota,anyoftheabovefivequotascanbemixedandquotas shallbesetforacertainperiod. SelfAssessmentQuestion1: 1. Medicalrepresentativeworkistypeofsalesjob. 2. Workloadmethodisusedto a. Determinethesalesquota b. Determinethesalesterritory c. Determinethesaleforcesize d. Noneoftheabove 3. Employeesaresourceofrecruitment 4. isthefirststepintheselectionprocess. 5. ThefullformofACMMEis
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13.4.PersonalSellingProcess
1. Lead generation: Identification of prospects is first step in personal selling process. Organizations generates the lead through customer references, trade association, customer directoriesorthroughcoldcalling. 2. Lead evaluation: All the methods used for lead generation may not be genuine. For example, afterdonotcallregistryoptionfromtelecomdepartment,mostofthecellphoneusersoptedforit. Customerwhooptedforsuchfacilitybelongstomiddleandupperclass.Henceifsomeexecutive usescoldcallingthereisdoubtaboutitsreliability.Marketeralsoshouldconcentrateonwhether theleadgeneratedhasnecessarywillingness,purchasingpowerandauthoritytobuy. 3. Buyer analysis: Beforeapproachingthe customer salesforce shouldunderstand whatproducts prospectsboughtinthepast,whatproductsheisnowusingandwhatarehisattitudeandbuying habits towards the products. Sales personnel should set salesobjectives and prepare draftfor customerapproach. 4. Approachingthecustomer:Inthisstepsalespersonshouldknowhowtomeettheprospectand whatisthemodetobuildrapportwithhim.Forexample,InJapanbusinessmeetingsstartinthe evening.Ifanycompanysellsitsproductinchinashouldnotusenumber8intheirpresentation. Salesexecutiveshoulddecidethepresentationformat.Pleaseseeworkbookforthecheckliston salespresentation. 5. Presentation and demonstration: Sales presentation starts with briefing the product, Understandingtheneedofthecustomerandchangingthemodeofpresentationaccordingtothe needofcustomer.Thepresentationshouldbevivid,simpleandattracting. 6. Providingsolutionstocustomer:Afterthepresentationandproductdemonstrationifanyqueries or ambiguity exists, then sales executive should handle the questions properly with lot of attentivenessandshouldsolvetheproblemsofcustomer. 7. Ordergeneration:Thisprocessisveryimportantoneintheentirepersonalsellingprocess.Some timesalesexecutivesfeelhowtoaskfortheorder.Suchexecutivesusuallywillnotgettheorder. Handlingcustomeratthisstageisalsoverydifficult.Customermaygetalltheinformationfrom sales executive and then show their reluctance to buy. Sales people also face unrealistic expectation from the customer. Sales executive should be smart enough to use order closing techniques.(thesetechniquesarediscussedintheworkbook)

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8. Follow up: Sales executives should follow up the order generated. It will help the company to identifythecustomersatisfactiontowardstheproduct.Italsohelpsthemtoinducethebuyerto goforrepeatedpurchase. 13.5.DirectMarketing 1. Telephonemarketing: Telephone marketing is used to sell the product directly to consumer. The growth of BPOs in India fuelled the development of telephone marketing. In case BPOs there are two types of verticals exist. They are inbound call center and outbound call center. In case of inbound call center,customerisgivenatollfreenumberforenquiryandexecutivestrytoselltheproductto such customers. In out bound call center employees call the customers and sell the products. TheexpansionofIndiantelecommunicationindustryanditscheapesttariffsintheworldattracted domesticsellerstousethistypeofchannel. 2. Catalog marketing: According to Philip Kotler catalogue marketing is direct marketing through print,videoorelectroniccatalogsthataremailedtoselectcustomers,madeavailableinstoresor presentedonline. The growth of catalogue marketing in India is in nascent stage. Thenotable exampleinthistypeofmarketingworldwideisJ.C.Penny. 3. Kioskmarketing:organizationsspreadtheinformationandkeeporderingmachinescalledkiosks intheshoppingmallsandotherplaces.Forexample, AmbipuraperfumecompanyrecentlyorganizedakioskrelatedmarketingcampaignintheNirmal lifestyleMumbai.Companyusedinflatableasshowninthepicturestoattractthesmallboys. Parents who came with children stopped at Kiosk and got the information from the company. The objectiveofcampaignistocreateawarenessabouttheproductamongthetargetcustomers.

4. Onlinemarketing:Marketingtheorganizationsproductonthevirtualmedium
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Inthisformatbuyersandsellersexchangestheproductsontheinternet.Organizationsselltheir productsdirectlytoconsumer(calledB2C),usestradingnetworksorauctionsitestoreachnew customersandservestocurrentcustomers(calledB2B)andencouragesonecustomertosell theproducttotheanothercustomer(calledC2C). Todothebusinessontheinternetorganizationscreateaneffectivewebsite,placetheadsand promoteitonline,createwebcommunities,andusesemail.TheothersidesofECommerce areproblemsofprofitabilityandlegalandethicalissues. SelfAssessmentQuestions2 1. 2. 3. 4. 5. customerdirectoriesareusedinofpersonalselling Organizationswhichsellstheirproductsontheinternetdirectlytoconsumeris calledas J.C.Pennyisfamousforformatofdirectmarketing. Thepresentationshouldbe,and. Incallcenteremployeestelephonethecustomersandselltheproducts

13.6.Summary Thesalesforcesizeisdecidedbytheworkloadmethod The communication technique in which sales people builds the personal relationship with customerstogeneratethevaluefortheorganization. According to Philip Kotler catalogue marketing is direct marketing through print, video or electronic catalogs that are mailed to select customers, made available in stores or presentedonline Organizationsgeneratestheleadthroughcustomerreferences,tradeassociation,customer directoriesorthroughcoldcalling. Evaluation can be made on the basis of performance of sales executive in terms of sales volume, sales profitability, ordersize, expenses etc., between, before and after training periods.

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ExpansionofACMEEisA:AimofTrainingC:ContentofTraining,M:MethodofTraining,E: ExecutionofTraining,E:Evaluation. TerminalQuestions 1. Discusstheadvantagesanddisadvantagesofpersonalselling. 2. Explaintheinternalandexternalsourcesofrecruitment. 3. Describethestepsinvolvedintheselectionprocess. 4. ExplainACMEEwithexamples. 5. Writeanoteondirectmarketing.

AnswerstoSelfAssessmentQuestions SelfAssessmentQuestions1 1. Missionary 2. Salesforcesize 3. Internal 4. ApplicationBank 5. Aim,content,Method,executionandevaluation. SelfAssessmentQuestions2 1. Leadgeneration 2. B2B 3. Cataloguemarketing 4. Vivid,simpleandattracting 5. Outbound AnswerstoTerminalQuestions 1. Refer13.3. 2. Refer13.3.4. 3. Refer13.3.4. 4. Refer13.3.4. 5. Refer13.5

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