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ADVERTISING AND SALES MANAGEMENT

ADVERTISMENT AND SALES MANAGEMENT

DEEPTI SHARMA MBA III A FINANCE

UNIT-4, 5, 6

ADVERTISING AND SALES MANAGEMENT

What are the different types of media?

edia available: 1. Newspapers 2. Magazines 3. Yellow pages 4. Radio 5. Television A more inclusive list of media is: 1) Press (includes newspapers, magazines, etc) 2) Radio 3) Telivision 4) Films 5) Web / Internet ( Today, this digital technology is the modern world superpower to be. You cannot imagine current age life without internet and web )

Types of Media
Many options are available to allow you to communicate your message to your audience. Once you determine your target audience, you can select the appropriate medium to deliver the message obviously, that would be the medium most popular among your target audience.

People to People Media Direct mail brochures Telemarketing Community outreach Special events Point of Sale - the moment a transaction with a customer takes place Personal selling

Interactive Media Organizational websites Internet advertising E-Mail E-Commerce

Mass Media Advantages and Disadvantages

ADVERTISING AND SALES MANAGEMENT

Television: Reaches more people than any other medium; costs the most. Cable TV: Better equipped to target a specific audience both psychographically and geographically; more cost efficient; doesn't reach as many people. Radio: Able to target specific audiences with higher frequency of the message; need to buy 2-3 stations for good reach; not as expensive as television. Newspaper: Communicates details about arts organization's events; can geographically target a city/communities; lots of ad clutter, especially in the entertainment section; expensive for a "pagedominant" ad. Magazines: Reach upscale audiences; higher quality graphics and environment; based on a weekly or monthly publishing cycle, it is difficult to develop an adequate frequency level; costly, especially since a color ad is necessary for impact. Outdoor Billboards and Transit: Good image or reminder medium; can't communicate many details. Internet: Good support medium; communicates lots of information for events; open 24/7; need to promote website address; must keep information current.

Marketing

Identifying and Targeting your Audience Enhancing the Customer Experience Pricing Branding Guide to Buying Media Types of Media available Creating a Communication Plan Direct Marketing Using the Internet as a Marketing Tool Guerilla Marketing: Cheap and Fun

What is media?explain different types of media?



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edia In general, "media" refers to various means of communication. For example, television, radio, and the newspaper are different types of media. The term can also be used as a collective noun for the press or news reporting agencies. In the computer world, "media" is also used as a collective noun, but refers to different types of data storage options. Different Types of Media are Advertising media, various media, content, buying and placement for advertising Electronic media, communications delivered via electronic or electromechanical energy

ADVERTISING AND SALES MANAGEMENT


Digital media, electronic media used to store, transmit, and receive digitized information Electronic Business Media, digital media for electronic business Hypermedia, media with hyperlinks Multimedia, communications that incorporate multiple forms of information content and processing Print media, communications delivered via paper or canvas Published media, any media made available to the public Mass media, all means of mass communication Broadcast media, communications delivered over mass electronic communication networks News media, mass media focused on communicating news News media (United States), the news media of the United States of America New media, media that can only be created or used with the aid of modern computer processing power Recording media, devices used to store information Social media, media disseminated through social interaction

Advertising Budget
The advertising budget of a business typically grows out of the marketing goals and objectives of the company, although fiscal realities can play a large part as well, especially for new and/or small business enterprises. As William Cohen stated in The Entrepreneur and Small Business Problem Solver, "In some cases your budget will be established before goals and objectives due to your limited resources. It will be a given, and you may have to modify your goals and objectives. If money is available, you can work the other way around and see how much money it will take to reach the goals and objectives you have established." Along with marketing objectives and financial resources, the small business owner also needs to consider the nature of the market, the size and demographics of the target audience, and the position of the advertiser's product or service within it when putting together an advertising budget. In order to keep the advertising budget in line with promotional and marketing goals, an advertiser should answer several important budget questions:
1. Who is the target consumer? Who is interested in purchasing the advertiser's product or service, and what are the specific demographics of this consumer (age, employment, sex, attitudes, etc.)? Often it is useful to compose a consumer profile to give the abstract idea of a "target consumer" a face and a personality that can then be used to shape the advertising message. 2. Is the media the advertiser is considering able to reach the target consumer? 3. What is required to get the target consumer to purchase the product? Does the product lend itself to rational or emotional appeals? Which appeals are most likely to persuade the target consumer? 4. What is the relationship between advertising expenditures and the impact of advertising campaigns on product or service purchases? In other words, how much profit is earned for each dollar spent on advertising?

Answering these questions will provide the advertiser with an idea of the market conditions, and, thus, how best to advertise within these conditions. Once this analysis of the market situation is complete, an advertiser has to decide how the money dedicated to advertising is to be allocated. Budgeting Methods

ADVERTISING AND SALES MANAGEMENT

There are several allocation methods used in developing a budget. The most common are listed below:

Percentage of Sales method Objective and Task method Competitive Parity method Market Share method Unit Sales method All Available Funds method Affordable method

It is important to notice that most of these methods are often combined in any number of ways, depending on the situation. Because of this, these methods should not be seen as rigid, but rather as building blocks that can be combined, modified, or discarded as necessary. Remember, a business must be flexibleready to change course, goals, and philosophy when the market and the consumer demand such a change. PERCENTAGE OF SALES METHOD. Due to its simplicity, the percentage of sales method is the most commonly used by small businesses. When using this method an advertiser takes a percentage of either past or anticipated sales and allocates that percentage of the overall budget to advertising. Critics of this method, though, charge that using past sales for figuring the advertising budget is too conservative and that it can stunt growth. However, it might be safer for a small business to use this method if the ownership feels that future returns cannot be safely anticipated. On the other hand, an established business, with wellestablished profit trends, will tend to use anticipated sales when figuring advertising expenditures. This method can be especially effective if the business compares its sales with those of the competition (if available) when figuring its budget. OBJECTIVE AND TASK METHOD. Because of the importance of objectives in business, the task and objective method is considered by many to make the most sense, and is therefore used by most large businesses. The benefit of this method is that it allows the advertiser to correlate advertising expenditures to overall marketing objectives. This correlation is important because it keeps spending focused on primary business goals. With this method, a business needs to first establish concrete marketing objectives, which are often articulated in the "selling proposal," and then develop complimentary advertising objectives, which are articulated in the "positioning statement." After these objectives have been established, the advertiser determines how much it will cost to meet them. Of course, fiscal realities need to be figured into this methodology as well. Some objectives (expansion of area market share by 15 percent within a year, for instance) may only be reachable through advertising expenditures that are beyond the capacity of a small business. In such cases, small business owners must scale down their objectives so that they reflect the financial situation under which they are operating. COMPETITIVE PARITY METHOD. While keeping one's own objectives in mind, it is often useful for a business to compare its advertising spending with that of its competitors. The theory here is that if a business is aware of how much its competitors are spending to inform, persuade, and remind (the three general aims of advertising) the consumer of their products and services, then that business can, in order to remain competitive, either spend more, the same, or less on its own advertising. However, as Alexander Hiam and Charles D. Schewe suggested in The Portable MBA in Marketing, a business should not assume that its competitors have similar or even comparable objectives. While it is important for small businesses to maintain an awareness of the competition's health and guiding philosophies, it is not always advisable to follow a competitor's course.

ADVERTISING AND SALES MANAGEMENT


MARKET SHARE METHOD. Similar to competitive parity, the market share method bases its budgeting strategy on external market trends. With this method a business equates its market share with its advertising expenditures. Critics of this method contend that companies that use market share numbers to arrive at an advertising budget are ultimately predicating their advertising on an arbitrary guideline that does not adequately reflect future goals. UNIT SALES METHOD. This method takes the cost of advertising an individual item and multiplies it by the number of units the advertiser wishes to sell. ALL AVAILABLE FUNDS METHOD. This aggressive method involves the allocation of all available profits to advertising purposes. This can be risky for a business of any size, for it means that no money is being used to help the business grow in other ways (purchasing new technologies, expanding the work force, etc.). Yet this aggressive approach is sometimes useful when a start-up business is trying to increase consumer awareness of its products or services. However, a business using this approach needs to make sure that its advertising strategy is an effective one, and that funds which could help the business expand are not being wasted. AFFORDABLE METHOD. With this method, advertisers base their budgets on what they can afford. Of course, arriving at a conclusion about what a small business can afford in the realm of advertising is often a difficult task, one that needs to incorporate overall objectives and goals, competition, presence in the market, unit sales, sales trends, operating costs, and other factors. Media Scheduling Once a business decides how much money it can allocate for advertising, it must then decide where it should spend that money. Certainly the options are many, including print media (newspapers, magazines, direct mail), radio, television (ranging from 30-second ads to 30-minute infomercials), and the Internet. The mix of media that is eventually chosen to carry the business's message is really the heart of the advertising strategy. SELECTING MEDIA. The target consumer, the product or service being advertised, and cost are the three main factors that dictate what media vehicles are selected. Additional factors may include overall business objectives, desired geographic coverage, and availability (or lack thereof) of media options. SCHEDULING CRITERIA. As discussed by Hiam and Schewe, there are three general methods advertisers use to schedule advertising: the Continuity, Flighting, and Massed methods
ContinuityThis type of scheduling spreads advertising at a steady level over the entire planning period (often month or year, rarely week), and is most often used when demand for a product is relatively even. FlightingThis type of scheduling is used when there are peaks and valleys in product demand. To match this uneven demand a stop-and-go advertising pace is used. Notice that, unlike "massed" scheduling, "flighting" continues to advertise over the entire planning period, but at different levels. Another kind of flighting is the pulse method, which is essentially tied to the pulse or quick spurts experienced in otherwise consistent purchasing trends. MassedThis type of scheduling places advertising only during specific periods, and is most often used when demand is seasonal, such as at Christmas or Halloween.

Advertising Negotiations and Discounts No matter what allocation method, media, and campaign strategy that advertisers choose, there are still ways small businesses can make their advertising as cost effective as possible. Writing in The Entrepreneur and Small Business Problem Solver, author William Cohen put together a list of "special negotiation possibilities and discounts" that can be helpful to small businesses in maximizing their advertising dollar:

ADVERTISING AND SALES MANAGEMENT



Mail order discountsMany magazines will offer significant discounts to businesses that use mail order advertising. Per Inquiry dealsTelevision, radio, and magazines sometimes only charge advertisers for advertisements that actually lead to a response or sale. Frequency discountsSome media may offer lower rates to businesses that commit to a certain amount of advertising with them. Stand-by ratesSome businesses will buy the right to wait for an opening in a vehicle's broadcasting schedule; this is an option that carries considerable uncertainty, for one never knows when a cancellation or other event will provide them with an opening, but this option often allows advertisers to save between 40 and 50 percent on usual rates. Help if necessaryUnder this agreement, a mail order outfit will run an advertiser's ad until that advertiser breaks even. Remnants and regional editionsRegional advertising space in magazines is often unsold and can, therefore, be purchased at a reduced rate. BarterSome businesses may be able to offer products and services in return for reduced advertising rates. Seasonal discountsMany media reduce the cost of advertising with them during certain parts of the year. Spread discountsSome magazines or newspapers may be willing to offer lower rates to advertisers who regularly purchase space for large (two to three page) advertisements. An in-house agencyIf a business has the expertise, it can develop its own advertising agency and enjoy the discounts that other agencies receive. Cost discountsSome media, especially smaller outfits, are willing to offer discounts to those businesses that pay for their advertising in cash.

Of course, small business owners must resist the temptation to choose an advertising medium only because it is cost effective. In addition to providing a good value, the medium must be able to deliver the advertiser's message to present and potential customers. Relationship of Advertising to Other Promotional Tools Advertising is only part of a larger promotional mix that also includes publicity, sales promotion, and personal selling. When developing an advertising budget, the amount spent on these other tools needs to be considered. A promotional mix, like a media mix, is necessary to reach as much of the target audience as possible. As Gerald E. Hills stated in "Market Opportunities and Marketing" in The Portable MBA in Entrepreneurship, "When business owners think about the four promotion tools, it becomes obvious why promotion managers must use a mix. There are clear trade-offs to be made between the tools." The choice of promotional tools depends on what the business owner is attempting to communicate to the target audience. Public relations-oriented promotions, for instance, may be more effective at building credibility within a community or market than advertising, which many people see as inherently deceptive. Sales promotion allows the business owner to target both the consumer as well as the retailer, which is often necessary for the business to get its products stocked. Personal selling allows the business owner to get immediate feedback regarding the reception of the business' product. And as Hills pointed out, personal selling allows the business owner "to collect information on competitive products, prices, and service and delivery problems."

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ADVERTISING AND SALES MANAGEMENT

Definition of 'Advertising Budget'


An estimation of a company's promotional expenditures over a period of time. An advertising budget is the money a company is willing to set aside to accomplish its marketing objectives. When creating the advertising budget, a company must weigh the trade-offs between spending one additional advertising dollar with the amount of revenue that dollar will bring in as revenue.

Measuring Advertising Effectiveness


by Mira Vlach on August 26, 2007:

Summary: Not caring about the effectiveness of your advertising usually means you are wasting money. The efficiency can be measured best on the internet, but offline advertisement can be also measured. The aim of advertising is either increase in sales or building brand. In this article, I write mostly about tracking the impact on sales, as this is the aim of most small companies.

Why measure advertising effectiveness?


Measuring advertising effectiveness is not easy. Sometimes, the results of measuring are just better guesses. Still, it is much better this way than not to adress this problem at all. There are dramatic differences in the effectiveness of various forms of advertising. If you pay for advertising, then it is probably important for you see some results. But if you waste money on inefficient advertising, you are missing better opportunities and the results may not come at all.

The basics of measuring effectiveness


Our main objective in measuring advertising effectiveness is to determine the effect of each advertising campaign from the results of our measuring and compare it with its price. Then we can decide which campaigns bring the best value for the money spent.
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It is also important to realise the various factors influencing advertising. Themedium, ad copy (exact wording), the format, audience (is the ad well aimed to the people who use our products?) all of this effects the final success of the campaign. Therefore, it is necessary to judge the effectiveness in context. Before we start, we need to decide which criteria are we going to monitor. These will differ with respect to the medium used, our possibilities, thepurpose of the ad etc. Examples of possible criteria are:

customers tell how did they learn about us increase in sales of the promoted goods more calls to our toll-free line calls to a campaign-specific phone number specific codes applied by customers to receive offered discount (i.e. Tube) redeemed coupons or vouchers that were given out at a campaing increased visits on our website other metrics from our website statistics (i.e. orders amount) see below

It is best to combine several criteria, because a customer can for example either contact you by calling your line or by sending you an email. Also, accept the fact, that we are not going to be able to measure everything. Especially if you run several campaigns in various media simultaneously, it may be difficult to ascribe the measured effects to a specific campaign. This can be helped by careful choice of criteria or by running campains seperately (though it is not always desirable). Contrary to traditional media, online campaigns are usually very easily traceable and can be measured well. Small companies will probably not use the methods of big corporations (ad recognition or recall) which are based on questioning samples of people once the campaign has ended. This would be too costly for small advertisers. Instead, you can simply judge the impact by how many people has the medium reached (viewers, readers, listeners) and comparing how much did it cost to reach thousand people (this is called CPM).

Measuring effectiveness on the Internet


Monitoring the effect of your internet advertising can be easy and cheapwhen you use quality tools. I have good experience with Google
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Analytics, which is a free website analysis tool. When you implement it in your website and set up your campaings properly, you'll have all the information you need to decide which advertisement you should drop and which brings you good return on your investments. Besides basic functions like monitoring number of visits and pageviews, it offers you a variety of statistics regarding visitor segmentation, traffic sources etc. Google Analytics also allows to set up goals on your website and track conversions goals accomplished by visitors. Examples of conversions:

submitted contact forms completed transactions in your e-shop file downloads newsletter subscriptions clics on your email address

I would definitely recommend to set up the analytics for your website proffesionaly before it is launched, because it can provide so much valuable information for marketing purposes. Then you can mine for data and see for example what is the average transaction value for visitors from London, how many page do they view per visit etc. If you set value for your goals, you can also see return on investments (ROI) for the money spent on advertising. This is possible because of tags, which are added to the links pointing to your website. Another advantage of this tool is that it helps you to test the different versions of either website or ad copy. Thus, you can create much better landpage or more effective ad. This is called A/B testing.

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thical Issues in Advertising Advertising is a highly visible business activity and any lapse in ethical standards can often

be risky for the company. Some of the common examples of ethical issues in advertising are given below: consumers attention

Ethics in Advertising

the performance of products

behavior, and should not offend our moral sense f India) regulates the advertising in India Some more ethics and standards to be followed in advertisements 1. Permission will not be granted where objects are completely or largely religious or

political in nature. Advertisements cannot be directed towards any religious or political end, or to gain mileage of any form. 2. Any goods or services that are advertised should not have any defect or deficiencies of any form declared in the Consumer Protection Act 1986.
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3. Products should not be portrayed in a way that misleads the public to infer that the item has some special, miraculous or a super natural quality, which is anyways difficult to prove. 4. Picture and the audible matter of the advertisement video should not be excessively 'loud'. 5. Advertisement should not endanger the safety of children or produce any sort of perversion or interest that prompts them to adopt or imitate unhealthy practices. 6. Any type of offensive, indecent, suggestive, vulgar, repulsive themes and/or treatment must be avoided under all circumstances.IJRFM (ISSN 2231-5985) Volume 1, Issue 8 (December 2011)

International Journal of Research in Finance & Marketing 54 http://www.mairec.org 7. Good creative advertisement will always attract peoples attention, but they should have meaningful visual content. One shouldnt have an attitude to play with peoples sentiments and emotions.

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UNIT-5

Sales Promotion
Author: Jim Riley Last updated: Sunday 23 September, 2012
Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales it is rarely suitable as a method of building long-term customer loyalty. Some sales promotions are aimed at consumers. Others are targeted at intermediaries and at the firms sales force. When undertaking a sales promotion, there are several factors that a business must take into account:

What does the promotion cost will the resulting sales boost justify the investment? Is the sales promotion consistent with the brand image? A promotion that heavily discounts a product with a premium price might do some long-term damage to a brand

Will the sales promotion attract customers who will continue to buy the product once the promotion ends, or will it simply attract those customers who are always on the look-out for a bargain?

There are many methods of sales promotion, including:

Money off coupons customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price

Competitions buying the product will allow the customer to take part in a chance to win a prize Discount vouchers a voucher (like a money off coupon) Free gifts a free product when buy another product Point of sale materials e.g. posters, display stands ways of presenting the product in its best way or show the customer that the product is there. Loyalty cards e.g. Nectar and Air Miles; where customers earn points for buying certain goods or shopping at certain retailers that can later be exchanged for money, goods or other offers

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Loyalty cards have recently become an important form of sales promotion. They encourage the customer to return to the retailer by giving them discounts based on the spending from a previous visit. Loyalty cards can offset the discounts they offer by making more sales and persuading the customer to come back. They also provide information about the shopping habits of customers where do they shop, when and what do they buy? This is very valuable marketing research and can be used in the planning process for new and existing products. The main advantages and disadvantages of sales promotion are: Advantages Effective at achieving a quick boost to sales Encourages customers to trial a product or switch brands Disadvantages Sales effect may only be short-term Customers may come to expect or anticipate further promotions May damage brand image

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Q.1 Define sales promotion? What is the nature, role & importance of sales promotion? OR What is sales promotion? Discuss the nature, role & importance of sales promotion. Ans.: Sales promotion is a key factor & strategy for marketers within the promotional mix. Sales promotion refers to many kinds of incentives & techniques directed towards consumers & traders with the intention to produce immediate or short term effects. Sales promotion helps in stimulating trial or purchase by final customers or others in the channel. A marketer can increase the value of its product by offering an extra incentive to purchase a product or brand. A few definitions are quoted below:1. American Marketing Association - Sales promotions is media & non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial & impulse purchases, increase consumer demand or improve product quality. 2. Council of Sales Promotion Agencies sales promotion is a marketing discipline that utilizes a variety of incentives techniques to structure sales related programs targeted to consumers/trade/ and or sales level, that generate a specific measurable action or response for a product/service. 3. Institute of sales promotion, U.K. Sales promotion comprises that range of techniques used to attain sales/marketing objectives a cost effective manner adding value to a product or service either to intermediate or end users, normally but not exclusively within a definite time period. Sales promotions have 3 distinct characteristics
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(a) Communication They gain attention & usually provide information that may lead the consumer to the product. (b) Incentive They give certain concession, inducement or contribution that gives value to the consumer. (c) Invitation They invite a distinct invitation to engage in the tre.

Nature of sales promotion:1. Irregular / non recurring activity- Sales promotion is an irregular & non recurring activity to increase the sales & this technique is used for specific situations only PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com Fore more detail:- http://www.gurukpo.com

Define sales quotas . What are the objectives & methods of sales quotas? Ans. A sales quota is a quantitative goal assigned to a sales unit relating to a particular period of time. A sales unit may be a territory, branch, office, region, distributor or a person. A sales quota is a sales set for a product line, company division or sales representative. A sales quota is sales goal assigns to a marketing unit for use in the management of the sales efforts. Sales quota is sales performance goal. Objective of sales quota:1. Life blood of business. 2. To provide performance standards. 3. To maintain a check on sales & expenses. 4. To motivate deserted performance. 5. Serves as a basis o sales contests.
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6. It reflects overall sales plan. 7. To make goals obtainable. 8. It gives a sense of direction to salesmen. 9. It serves a basis of compensation. 10. Helps in evaluating performance. 11. It provides change of direction. 12. It helps in balancing growth of market. 13. It helps in proposing promotional budgets. 14. Equals the workload & estimating the future needs. 15. Avoid repetition of work. 16. Coordinates with other departments. Methods for setting sales quotas:1. Forecasts & potentials based methods The company makes a total volume or unit sales forecast for the company, product lines & individual products this methods includes a) quotas derived from territorial sales potential b) Quotas derived from total market estimates. PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com Fore more detail:- http://www.gurukpo.com2. Only forecasts based methods This method is common for the large scale companies, some companies determines sales potential for individual sales territories. This is especially true for companies that sale in small geographical areas. 3. Past experience method Some companies take the past year sales for each geographic unit & use result as their sales volume quotas. 4. Executive judgment method This method is useful when little information

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exists. Manages sely on their judgments to make failure predictions. 5. Salesmen judgment method It is used in companies expanding in to new geographic areas or starting up a sales force. no past sales exists on which to base future estimates. Q. Write short note on sales territories. Ans. A sales territory represents a group of customers or markets or geographical areas A sales territory is a configuration of current and potential accounts for which responsibility has been assigned to a particular sales. Objective :1. Maximizes sales and profits. 2. enhances customers courage. 3. Matches selling efforts & opportunities. 4. Helps in realistic sales planning. 5. Controls sales operations. 6. Controls selling expenses. 7. Helps in evaluating sales personnel. 8. Contributes to high morale 9. Promotes productive salesmen. 10. Establishes salesmen responsibilities. 11. improves customer relations. 12. better matching of salesmen to customer. 13. Ciduabtes personnel selling and advertising. 14. Benefits salesmen & company. 15. Provides more equitable rewards. Designing sales territories:18

ADVERTISING AND SALES MANAGEMENT

1. Deciding objectives & allocation criteria of territory formation. 2. Selecting basic control units or bases for territorial boundaries. On the bases of geography, trading, areas, portals, serving, requirements, workload, product lines customers & prospects. 3. Determining sales potential present in control units. 4. Analyze sales people workloads- on the basis of nature of the job, intensity of market coverage, type of product sold. 5. Combining control units in to tentative territories. 6. Determining basic territories. 7. Assigning sales people to territories. PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com Fore more detail:- http://www.gurukpo.com8. Preparing customer contact plan. 9. Evaluation & revision of sales territories. Q. Define consumer psychology. What are the reasons for studying consumer psychology? Ans. Consumer psychology is concerned with the study of consumer mind. It is the study of thought process going on in the consumer mind, their reactions, desires, values, perceptions, altitudes etc. OR It is the study of consumer mind and his behavior particularly his perceptions learning experiences, personalities, attitudes and self image. Objectives:1. To develop effective marketing strategy to compete. 2. To make aware the customers about various promotion techniques used by produces.
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3. To study buying motives vision & thoughts. 4. To conduct market research more efficiently. 5. To take appropriate definition regarding product development, product lines, product differentiation. 6. To facilitate effective market segmentation. 7. To design marketing mix elements based on consumer needs, buying patterns. Methods for studying consumer behaviors:1. Observation method The salesmen observes behavior pattern of consumers & make a note of it. Certain mechanical devices like molding, cameras, close circuit TV etc. are used for appointment & observation. 2. Interview method - The interviewer directly interviews the consumers and records various information relating to consumers attitudes, Like & dislikes, lifestyles, income, paying capacity, perception etc. 3. Questionnaire method A questionnaire is prepared related to psychological behavior of customers. This is mailed to certain selected customers & then the received information is tabulated & analyzed. 4. Experimental method The researcher conducts experiments on consumer behavior on a selected number of customers & the conclusions thus arrived are given effects or a large group of customers. 5. Consumer panel method The researcher makes a list of customers and these are contacted at different occasions & collects various kinds of information and data relating to these behavior on the basis of which conclusions are worked out. 6. Case study method Certain facts and figures of selected customers relating to their family background social & individual life styles are gathered and on
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the basis of analysis, customer interests and buying motives are determined. PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com Fore more detail:- http://www.gurukpo.comQ. Write short notes on buying motives. Ans. A motive may be defined as a derive for which on individual seeks satisfaction buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods & services. Classification of buying motives:1. Physical psychological and sociological buying motives. 2. Acquired & inherent buying motives- Level of education, information, beauty and fashion social prestige, work efficiency acceptance etc. 3. Primary & selecting buying motives. 4. Conscious & dormant buying motives. 5. Rational & Emotional buying motives. 6. Product and patronage buying motives. Q. What do you mean by sales control. Discuss its importance and process.

Ans. Sales control is to identify weaknesses in sales efforts to determine their causes & to correct them quickly with the objectives of servicing the greatest possible amount of profitable business. The primary purpose of sales control is to discover weak spots in sales performance and to maintain & improve the efficiency of sales operations. Importance:1. To implement sales planning in an effective way. 2. Control of unnecessary expenses. 3. To evaluate the performance of sales force. 4. To determines the various requirements related with sales promotion.
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5. To concentrate on the sales of maximum profitable products at profitable territories and customers. 6. Coordinating the effort of sales functions & results. Sales control process:1. Establishing sales performance standards. 2. Recording actual performance. 3. Evaluating performanceagainst standards. 4. Taking appropriate actions. Q. What are sales reports. Discuss the essentials of sales report. Ans. Sales reports provide the sales manager with an basis for discussion with sales personnel. They indicate the manners on which the sales people need assistance. They also assists in determining how to secure more & larger orders. Field sales reports provide the raw material that sales management process gain insights on giving needed direction to field sales personnel. PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com Fore more detail:- http://www.gurukpo.comThese are various types of sales reports:1. Progress reports 2. Expenses report. 3. Sells planning report. 4. New business report 5. Lost sales report 6. Complaint and adjustment report. Essential of a report :1. Should be simple. 2. irrelevant information should not be included.
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3. Brief and object oriented . 4. Should be useful to make an easy assessment of performance of salesmen. 5. Should be of optimum size. 6. case should be given to make different types of reports in the format prescribed for the purpose. 7. Salesmen suggestion should be given in the report. 8. Should be free from any person bias. PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com Fore more detail:- http://w

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UNIT-6

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