Updated Sales Promotion

Biyani's Think Tank
Concept based notes

Sales Promotion and Sales
Management
(B.Com. Part-I I I )

Nandita Sarsar
Revised by: Ms Chitrangi
Lecturer
Deptt. of Commerce (Mgmt)
Biyani Girls College, Jaipur

2

Published by :
Think Tanks
Biyani Group of Colleges

Concept & Copyright :
Biyani Shikshan Samiti
Sector-3, Vidhyadhar Nagar,
Jaipur-302 023 (Rajasthan)
Ph : 0141-2338371, 2338591-95 Fax : 0141-2338007
E-mail : acad@biyanicolleges.org
Website : www.biyanithinktank.com; www.biyanicolleges.org

First Edition : 2009
Second Edition: 2011
Price:

Leaser Type Setted by :
Biyani College Printing Department
While every effort is taken to avoid errors or omissions in this Publication, any mistake or
omission that may have crept in is not intentional. It may be taken note of that neither the
publisher nor the author will be responsible for any damage or loss of any kind arising to
anyone in any manner on account of such errors and omissions.
Sales Promotion and Sales Management

3

Preface

am glad to present this book, especially designed to serve the needs of the students.
The book has been written keeping in mind the general weakness in understanding the
fundamental concepts of the topics. The book is self-explanatory and adopts the
Teach Yourself style. It is based on question-answer pattern. The language of book is
quite easy and understandable based on scientific approach.
I any further improvement in the contents of the book by making corrections, omission
and inclusion in keen to be achieved based on suggestions from the readers for which the
author shall be obliged.
I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay Biyani,
Director (Acad.), Biyanis Group of Colleges, who are the backbones and main concept
provider and also have been constant source of motivation throughout this endeavour. I
also extend my thanks to Biyani Shikshan Samiti, Jaipur, who played an active role in
coordinating the various stages of this endeavour and spearheaded the publishing work.
I also want to thank Ms. Shivani Singh and Ms. Swati Singh for her support and guidance
during my writing work.
I look forward to receiving valuable suggestions from professors of various educational
institutions, other faculty members and students for improvement of the quality of the
book. The reader may feel free to send in their comments and suggestions to the under
mentioned address.
Author
I

4

Contents

S. No. Name of Topic
1.
Sales Promotion
2. Recruitment, Selection & Motivation
3. Sales Forecasting, quotas & Territories
4. Unsolved Paper 2011 to 2006

5

Section A

Sales Promotion

You cannot offer your valued customers any better Thank You,
or have a better environment for sales promotion.
~J ohn Garwood
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 promotion 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/traders/ 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 by 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.

6
Sales promotions have 3 distinct characteristics
(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 tree.

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
such as decline in demand, fall in profit, acute competition in the market or during
the introduction of new product in the market.
2. Target- The target for producers sales promotion may be middleman, end users,
household or business users or the producers own sales force. Middleman sales
promotion at their sales people or prospects further down the channel of
distribution.
3. Motivation & extra incentive- Sales promotion involves some type of incentives
that offer a reason to buy. This incentive is usually the key element in a
promotional program & is an effort by which consumers, traders and sales force
are motivated towards maximum sales.
4. Acceleration tool- sales promotion is designed to speed up the selling process &
maximize sales volume.
5. Immediate impact- Sales promotion can be implemented quickly & gets sales
results sooner than advertising sales promotions offers an incentive to buy now.
6. Objective- The objective of sales promotion is to establish a link & coordination
between the activities like advertising, personal selling, publicity etc. sales
promotion bridges a gap between advertising and personal selling.
7. Non media activity- Sales promotion is referred to as a non media activity as sales
promotion is differentiated from advertising & publicity & also includes them as
part of the overall promotions mix.
8. Strategic role- Because of the immediate nature of the impact, sales promotion
have been thought of as merely this view is changing and the strategic role of
sales promotion and their integral role in the promotional mix are being
recognized.
9. Planned activity- The fact that sales promotion can be effective throughout the life
of a brand shows their strategic role. Sales promotion activities should be planned
well to stimulate sale.
10. Versatile- Sales promotion is extremely versatile. The different forms of sales
promotion are capable of being used with various groups & designed to achieve
different effects. Sales promotion can be useful throughout the product life cycle.

7
11. Means of marketing communication- It is an important means of communication
by which views & ideas of consumers about the products & services are
exchanged with the producers regularly.
12. An element of promotion mix- Sales promotion is one of the important elements
of promotion mix, other than advertising, personal selling and publicity.
13. Universal activity- It is a universal activity adopted by all the economies of the
world in their sales efforts.

Role of sales promotion:-
1. To popularize goods and services of the producer among the potential consumers
& to motivate them towards larger purchases.
2. To motivate the existing customers for maximum purchase.
3. To maintain the sales up to normal level even during seasonal vacations & during
the declining stage of PLC.
4. To increase goodwill of the firm.
5. To educate customers/dealers & salesmen about the techniques of sales
promotion.
6. To simplify the efforts of sales force & motivate them for larger purchase.
7. To stimulate maximum sales on special occasions such as Diwali, religious
festivals & other such occasions.
8. To search for a new market & to introduce new products in to the market.
9. To counteract competition.
10. To facilitate coordination & proper link between advertising and personal selling.
11. To promote larger sales in certain specified segments of market.
12. To present a counter promotional program against the competitors.
13. To develop patronage habits among customers.
14. To prove the product better in quality & users.

Importance of sales promotion:-
Sales promotion is an important component of the marketing program . It can be a
specific tool of the promotion. Quality sales promotion provides advantages to the
various groups described below:-
1. Importance to consumers
2. Importance to producers.
3. Importance to middlemen.

8
4. Importance to society & nation.

1. Importance to consumers:-
(i) Availability of new products- It is easy to sell new products
with the help of sales promotional tools. Hence the
producers are encouraged to bring new products.

(ii) Various rebates & free discounts- Sales promotions offers
various incentives like rebates & free discounts, free
samples which helps to stimulates sales & purchase.

(iii) Thrill in life- The various incentives contents samples,
demonstrations, fair and exhibitions create thrill and joy in
consumers life and the relish these beneficial offers.

(iv) Low price- Sales promotion increases sales volume and
reduce the unit cost of production & thus the prices reduce
& it benefits consumers.

(v) Increase knowledge- Sales promotion increases the
knowledge of the consumers with regard to the uses,
operation & maintenance of the product.

(vi) Provides higher standard of living.

(vii) Buying confidence- Sales promotion tools provide the
consumers an opportunity to understand the product. This
creates a buying confidence among consumers. They may
take better buying decisions which ultimately increases their
satisfaction level.

(viii) Minimize exploitation - The promotional plan creates a
better knowledge about the products, their uses & quality.
As a result, the seller cant exploit the consumers.
2. Importance to producers:-

(i) Increase in sales- Sales promotion attract consumers &
stimulate them to make larger purchaser.

9
(ii) Improve effectiveness of Media Activities- the sales
promotions plans make the advertisement & other media
activities more effective to achieve the sales largest these
give pulling power to ads.
(iii) Help personal selling- sales promotions supports personal
selling process the salespersons can use demonstrations ,
distributions to free samples , contest methods to push the
sales. Sales promotion aimed at companys own sales force
might motivate salesmen to get new costumers, selling a
product.
(iv) Able to capture new market.
(v) Increase regular sales & seasonal products.
(vi) It helps in increasing goodwill of the firm.
(vii) The various promotional incentives offered to the dealers
help to achieve cooperation from them to sale the products
& to maintain maximum stock with them.
(viii) It is an effective step to face the competition.
(ix) It helps in increasing the demand of new products.
(x) It helps in maintaining existing customers.
(xi) It creates a trusting attitude among customers. Free sample
& functional demonstrations creates a faith in the use of
merchandise which results in longer sales.

Importance to middlemen / dealers:-
(i) Facilitates longer sale.
(ii) By operating various sales promotional plans, manufacturers
provide various type of helps such as rebates, trade
discounts, gifts, rewards to dealers & resellers.
(iii) A direct relationship between the dealers & the customers
are established through the sales promotion techniques
which will continue for a long term.
(iv) As the cost of each deal is reduced the profits of dealers are
also increased.

Q.2 What are the functions performed by a sales promotion department?
Ans. The success of modern business largely depends on the functions of sales
promotion department. Sales promotion department becomes more important as
there exist a buyers market in place of a sellers market.

10
The functions & responsibilities of sales promotions department have been
described by Alfered Ghoss & Haughten in 3 ways:
1. To establish coordination with other departments.
2. Assisting functions towards dealers.
3. To motivate the customers.

Usually the sales promotions department undertakes the following fu
Planning for sales promotion company-The primary function of the sales promotions
department is to make long term & short term planning for undertaking promotional
programs. This is done by evaluating the various factors such as market condition , level
of competition , demand & supply situation , advertising , personal selling , etc.

1. Assistance to top executives- The sales promotions department provides various
information to top executives & give assistance in related matters for decision
making.

2. Coordination & liaison with other departments- The sales promotion department
regularly coordinates with other departments such as advertising, sales force
management, packaging, publicity etc. The value promotion is coordinated in view of
the travelling schedule of salesmen, sales presentation etc. Sales promotion
department is also associated with production, finance, traning departments of the
organization & established coordination with these departments from time to time.

3. Sales promotion research- In order to make sales promotion program more effective
, the S.P. department undertakes surveys & evaluates the information gathered to
know about the changing values, traditions, culture , consumers behavior & public
opinions.

4. Execution of sales promotion program -The sales promotion department also
execute programs design for consumers, dealers & the various advertising &
promotional agencies, PR officers, distributers & exchange ideas with them. It
organizes sales exhibitions, trade fairs, contests etc, from time to time.

5. Provides training to the sales lesson -The sales promotion department trains the
salesmen about the company , its products , promotional incentives being gives to
buyers. The department also gives introduction about companys policies & plans.
Customers-salesmen relationship.

6. Evaluation of sales promotion - sales promotion department evaluates the planned
promotional program & with the help of these promotional plans, data are collected &
it is analyzed to find out the effectiveness of the program. Consumes survey,
consumer panels gives a clear picture of the various sales promotional tools.

7. Assisting dealers / middlemen to make advertising more effective-dealers also
deal with advertising of the various products. The sales promotion department helps
in producing training to the salesmen , to promote dealer interests etc. The sales

11
promotion department also decides on with best advertising messages, copies &
media for their products.

8. Coordination between advertising & personal selling.

Q.3 what is distinction with advertising & personal selling?
OR
Discuss the points which make sales promotion distance with that of
Advertising & personal selling.
Ans. Sales promotion can be differentiated from advertising in the following ways:-

1. Non media activity:- Sales promotions a non-media or below the line
activity & advertising is the media related activity.

2. Limited time period:-Advertising is for long term effect & is for longer
periods, whereas sales promotion is for a limited time period only.

3. Easy evaluation:-The impact of sales promotion can be easily measured
in comparison to advertising.

4. Faces on immediate purchase:- Advertising is designed to have
awareness , interest & preference building effects over a long run. Sales
promotion simulates quick & immediate purchase or sales promotion
offers a reason to buy now.

5. Creating action:-Advertisement builds long term brand awareness &
sales promotion is used for creating action.

Distinction of sales promotion & personal selling.
1. Role:- Sales promotion helps to increase the effectiveness of personal
selling & personal selling creates desire for a product thereby effecting
sales .

2. Motivation:-Sales promotion provides physical motivation to customers
personal selling provides physical and emotional motivation to customers

3. Personal presence:-Personal presence of salesmen is not necessary in
sales promotion whereas in personal selling salesmen is required for
selling.

4. Media:-Sales promotion can be presented through any media like vocal,
written or audio visual personal selling it can be presented through vocal
media only.

12
5. Compumentary function:- Sales promotion is complimentary to personal
selling whereas personal selling does not complement to the sales
promotion program.

6. Continuity:- Sales promotion is not used as a securing activity whereas
personal selling is a routure activity which regularly operates.

7. Orientation:- Sales promotion is oriented largely towards the firms or its
product , personal selling in customer oriented.

8. Object:-The objective of sales promotion is to feel a gap between
advertising & personal selling & the objective of personal selling is to
solve the problems of customers & to get more sales

Q.4 What are the roles of sales promotion in a company or shortages?
Ans. There are three types of world economy:- developed, developing & under
developed (Shortage economy) . In an economy of shortages, the availability of
goods & resources are shorter or lesser than their demands.

Limitations of a shortage economy-
1. Under developed in economic aspects.
2. Natural resources remain untapped.
3. Restricted development of industrial activities.
4. Lower standard of living of people .
5. Shorter supply of product & resources.
6. Slow growth of capital formation.
7. Limited opportunity for employment.

Economists say that development of economy is possible only when there is
increased sale. Therefore sales promotion is considered to be tool for stimulating
the sales.
Also, in a shortage economy, sellers market is dominant whereby seller takes the
advantage of the situation & creates situations of unfair trade practice. Thus, sales
promotion can stop this situation of unfair trade practice & thus the economy will
grow through the production of new items copy setting products of new industries
& industrial units & this way the wheel of economy development might move
faster & can create a surplus situation in an economy of shortage.

Q.5 What are the commonly used tools & techniques of dealer
Promotions?
OR
What are the different sales promotional tools useful for traders?
Ans. These promotional tools are targeted to marketing intermediaries such as
wholesalers, retailers, distributers or agents who stock the manufactures products
for sale sales promotion directed at the trade helps push a product into the
distribution channel until it reaches customers.

13

Here are the most common types of trade promotion tools:-
1) Point of purchase displays:- A manufacturer designed display distributed
to retailers who use it to draw the customers attention to product
promotions is called as pop displays. Pop includes passion racks, display
cartoons, banners, signs, price cards, mechanical product, dispenses etc.

2) Incentives: - Incentives to members of trade include awards in the form of
travel, cash bonus, gifts etc. another form of trade incentive is referred to
as push money. Push money is carried out through a program in which
retail sales people are offered a monetary reward for featuring a marketers
brand with shoppers.

3) Trade allowance:- Trade allowance is probably a discount or deal offered
to retailers or whole sales, to eucauage then to stock display the
manufacturers product Types of allowances offered-
(i) Advertising allowance:- In this method, actual expenses or certain
percentage to purchases made, are not met by the producer. Instead an
allowance is paid to the dealer toward advertising expenses.
(ii) Promotional allowance:- Certain items which helps in advertising and
publicity are distributed to retailers free of cost. Such novelties include
pens, calendars, paper weights, bill books, bags, diaries, memo pads
etc.
(iii)Display allowance:- The producers who dont provide display material
to dealers, provide them with display allowances.
(iv) Buying allowance/Price off allowance:- The price of allowance is
given on purchase made during a specified period of time directly from
the producer. This encourage larger purchase from the producer.
(v) Brand deal allowance:- Such allowances are given to those
middlemen who deal exclusively with a single brand.
(vi) Buy back allowance:- It is a sum of money given to the reseller for
each unit brought after an initial deal is over.

4) Sales training program:- Another form of dealer promotional tool is
sales training program. Salesmen at the retail level need to be trained
about the features of the product, benefits, advantages of different
models/brands etc. cosmetics, appliances, computers, electronic products
are examples for which consumer rely on trained sales staff.

5) Trade shows:- Trade shows are certain activities designed where
manufacturer can display their products to current as well as prospective
buyers. They are attended by retailers to distributers and involve
demonstrating products, identifying prospectus and gathering customers.
Trade shows are particularly valuable when a new product is introducing
in to the market many companies use trade shows to entertain key
customers and to develop and maintain relationship with them

14

6) Cooperative advertising:- In this method the dealer and the producer
both jointly share the expenses of advertising. Either the producer may
bear a fix amount of the advertising expenses or certain percentage to the
purchase made by the dealer in a year.

7) Free merchandise:- Free merchandise is sometimes offered to resellers
who purchase stated quantities of the same or different products.

8) Sales contests:- Sales contests are organized for dealers also on the basis
of highest sales achieved by dealers during a specific time period. Prizes,
certificates are issued to such dealers and such contest hence motivates the
dealer for longer purchases.

9) Retailer kits:- Materials that support retailers selling efforts are retailer
kits. The kits contain supporting information such as detailed product
specification, ad slicks- print ads that are ready to be sent to the local print
media.

10) Advertising and display aids:- Some of the aid are
(i) Local news paper advertising:- Advertisements in local news paper
specifying name, contact no. and address of dealers, helps the people to
know about the dealers in town.
(ii) Direct mail advertising:- In this the producer sends various
advertising and publicity material to dealer by mail. This includes reply
cards, calendars, diaries, folders, house magazines, order book, hand
bills etc.
(iii)Outdoor advertising:- Producers provide banners, sign boards,
posters, bill boards, holdings to dealers at their own cost.
(iv) Organizing fashion shows:- Some companies organize fashion shows
in big cities to promote their products. This is also an encouragement to
dealers.

11) Sales assistance:-
(i) Building up sales plan:- Producers extend help and express
knowledge to wholesalers and retailers in building up sales plan,
formulating strategies and sales programs. This help the dealers
to increase their selling skills.
(ii) Sales meetings:- Producers organize sales meeting for distributers
to provide knowledge about new products, sales policies and
sales plan.
(iii) Buy back guarantee:- Producers sometimes gives buy back
guarantee to dealers for the goods that have not been sold by
them. Thus goods are sold to dealers on sell or return condition.

15
(iv) Special trade terms:- Middlemen/Dealers are encouraged by
special trade terms which may be related to price, payment,
credit, allowance, financial assistance balance of stock etc.
(v) Special services:- Producers also offer special services to dealers
which include packaging, categorization of products, dealer
listing.
(vi) Credit facilities:- Producers provide short term credit facility to
dealers to motivate them to have maximum stock of the goods.

12) Management assistance:- It includes
(i) Providing knowledge about management techniques.
(ii) Advice towards policy matters.
(iii)Guidance in setting up internal organization.
(iv) Sales management process.

Q.6 What are the different tools of sales promotion for consumer promotion?
Ans. This sales promotion is aimed at final consumer or users. Consumer sales
promotion used by retailers are aimed at attracting customers to specific
locations. The consumer promotion tools are-
1) Sample-Samples are offer of a trial amount of a product generally 84%
consumer package goods marketers use sampling as part of their promotion
strategy. by offering free samples , a company gains entry into that market ,
soaps , detergents , toothpastes, shampoos, conditioners are examples of few
products that are normally popularized through free samples. Free samples are
distributed for several reasons: To stimulate tral of a product to increase sales
volume in the early stages of PLC, to obtain desirable distribution. The
samples can be distributed through in store sampling (food products and
cosmetics), door to door sampling, mail sampling, (through postal service),
news paper sampling, mobile sampling, on package sampling, professional
sampling(drugs).

2) Premiums:- Premiums are goods offered either free or at low cost or an
incentive to buy the product. Premiums are offered as bonus, prize, gifts or
other free offers. Premium can be used to boost sales to attract competitors
customers, introduces different products.
E.g. :- Aquafresh toothpaste- At the launching of Aquafresh toothpaste
offered two tubes at the price of one.
Colgate offered 125gm. tube for the price of 100 gm.
Santro- book year santro today & take home a worldspace Hitachi digital
radio receiver worth Rs. 4990/- free.
Pepe- Buy products worth Rs. 4000/- & get a bag worth Rs. 888/- free.
Adidas- Buy product worth Rs. 2800/- and get a Adidas bag free.

3) Contests:- Contests of various kinds constitute widely used sales promotion
tools. There are consumer contest which are open for all, consumer contest are
given wide publicity to attract the participation of the widely scattered

16
consumer base. consumer contest take a variety of forms- Quiz contests,
beauty contest, car rallies, scooter rallies, suggesting a logo etc. Contests can
be divided in to 2 broad categories- Skill competition & sweepstakes. One
form of sweepstakes is a game & scratch off cards with instant winners &
prizes are an important promotional tool. E.g. :
(i) Nescafe shake contest Nescafe shake contest offered Rs. 5 lacks as total
prize money with Rs. 1 lack for the first prize. The total number of prizes
ran to 21000. The contest had a specific objective to make consumers
aware of Nescafe as a cool summer drunk in addition to this traditional
image of a hot beverage.
(ii) Cadburys family contest- Cadbury announced fabulous prizes- round the
world, economy class are ticket for two adults & two children plus Rs. 1
lack in prize money. The participant has to submit a minimum no. of
cadburys wrappers & coin a jingle to participate in the contest. The
campaign helped to increase the sales.
(iii)Lakme Create your own shade contest Lakme lever held the to elle
18, Create your own shade contest for the target audience of elle 18
range of colors cosmetics & fragnances. The participants were required to
create own shades. The winner created a sparkling blue shade & later
Lakme launched the new shade in the market.
(iv) Pepsi contest for children Pepsi ran a contest among children to
promote its potato chips brand ruffles. Nearly 500 children from a school
were collected 30 of them were picked to speak for a minute the winners
were given ruffles. Pepsi had covered 250 schools and 125000 students
across the country spending Rs. 2 lacks only.

4) Demonstration:- Companies resort to product demonstration for sales
promotion especially when they are coming up. With a product new to the
market. In India products like beverages, washing powders, electronic product
have utilized product demonstration as a tool of sales promotion. it may be-
(i) Demonstration at retail store.
(ii) School demonstration.
(iii)Door to door demonstration.
(iv) Demonstrations to key people.

5) Coupons:- Coupons are certificates which offer reductions to consumers for
specified items. Coupons distributed through newspaper, magazine
advertisement or by direct mail. Coupons enchoose the customer to exploit the
bargain and they also serve as an inducement to the trade for stocking the
items.

Types of coupons-
(i) Instant redemption coupon- Consumers can immediately redeem the
coupon.
(ii) Bonus back coupon- Coupons can be placed inside packages so that
customer cant redeem them quickly.

17
(iii)Scanner delivered coupon- Firm can issue coupons at the cash register.
These are triggered by an item being scanned.
(iv) Cross ruffling- It is the placement of a coupon for one product on another
product. E.g. a coupon for an onion sauce placed on a package of potato
chips is a cross scuffling coupon.
(v) Free standing inserts coupons can be delivered to consumers through news
paper.
(vi) In store couponing- Coupons are distributed in a retail environment.

6) Trade fairs and exhibitions They form one of the oldest practices of sales
promotion. Trade fair & exhibition provide companies with the opportunity
for introducing and displaying their products. This brings the companys
product and the consumers direct contact with each other. Trade fairs have
become a handy and effective tool of sales promotion. Orders and enquiries
worth billions get generated at international trade fairs.

7) Discounts and price of E.g. 20% off on levis
10% on Tanishq

8) Free gifts/Gift cards- Companies also give gifts to consumers, dealers and key
people. These gifts include pens, diaries, table, decoration. Gifts normally
carry the companys name and logo. The gifts are intended to create goodwill
towards the company.

9) Exchange schemes/Money back offers- This is the latest sales promotion tool
in consumer disables market. E.g. Akai exchange scheme- Bring in your old
color TV with remote.
Videocon money back offer.
Philips- 5 in 1 offer.- Philips TV, 2 in 1, Mixer, grinder, rice cooker at an
attractive price.
Sponsoring the games and teams- Many companies like reliance, Pepsi,
Pentaloons, Maruti sponsor different games and sports in the country and
abroad.

Q.7 What are the tools of sales promotion used for business and industrial goals?
Ans. Sales promotion is targeted for business and industrial goods also Industrial
products differ with that of consumer goods. The tools which are used are-
1) Trade shows:- The industrial products are displayed and demonstrated to the
members of trade and industry. The representatives explain about the products.
The trade shows can be useful for smaller firms which cant much in
advertising and also salesman can make for more contacts. Trade shows are
important rules for reaching potential wholesalers & distributers for a
companys brand.

18
2) Business gifts:- These gifts are given as a part of building and maintaining a
close working relationship with suppliers business gifts may include small
items of jewellary, watch, electronic items, expensive trips.

3) Trial offers:- Trial offers are particularly well suited to the business and
industrial market. Trial offers provide a way for buyers to lower the risks of
making a commitment to one brand over another. Trial offer is a good way to
attract new customers who need a reason to try something new.

4) Frequency program:- high degree of travel associated with many business
professionals make frequency programs and an ideal form of sales promotion
for the business and industrial markets. This can be used in airline, hotel and
other industries.
5) Coupons:- Coupons are used in business to business sector. Coupons must
reach the hands of a purchasing against or someone who has the authority to
make decision.

6) Contest and sweepstakes:- As like in consumer promotional methods.
Customer methods. Business buyers are also interested in winning prizes as are
customers in other situations.

7) Sampling:-- Sampling is an excellent method to encourage a business to buy a
product. E.g. producing a sample in the area of process materials has the
advantage of giving the engineers an opportunity to analyze the materials to
see if it meets their standards. Through analysis they may find that the material
is actually superior to the product they currently use.

8) Bonus picks:- offering a prospective a bonus pack may attract new users as
price is a negotiated item in our B2B sector price of discount can be offered by
vendors seeking to obtain a new business contract.

9) Other tools:- They may include demonstrations, free training, warranties,
credit faculties maintenance services, films, publicities and audio visual aids.

Q.8 Discuss the promotional tools aimed at internal organization?
Ans. Promotional of internal organization concern with the steps to be taken for a
sound promotional programs. The elements of internal promotion are as follows-
1) Approval of promotional philosophy:- The success of a promotional program
depends on the attitude of the top management. There for a promotional program
requires the approval of the top management. The manager has to make a cost
profit analyses so that top management appraise him about the profitability of
program.

2) Product department for marketing:- Quality of a product is responsible for the
success of sales promotion program. As the customers are quality conscious and
he always makes a comparison with that of competitors product before taking the

19
final decision of purchase. Therefore the product manager should continuously
work on improving the features of the product.

3) Coordination with advertising department:-It is the advertising department that
make the ground for the sales by giving product knowledge among the distributers
as well as potential customers. When the frequency of the advertisement is
reduced then the sales promotions frequency start increasing. Therefore a
coordination has to be made with the advertising department.

4) Coordination with sales department:- Sales promotion program can be
successful if a proper exhibition is established with the sales department. Its
includes arranging and organizing sales meetings and conferences, organizing
contest, sales exhibition, traveling to sales personal etc.

Q.8 Discuss in details the export- sales promotion.
Ans. Export sales promotion is the special selling efforts, motivations and aids which
are designed to serve the foreign customers and dealers to stimulate and maintain
sales in the foreign market. Export sales promotion for a foreign market follows
push and pull strategies. In push strategy the sales wrap recentlves and distributers
are stimulated for large sales and in pull strategy the buyers of goods and
customers are stimulated directly by the various customers promotional
techniques.

Objectives of export sales promotion:-
1) To stimulate larger sale in foreign market.
2) To enter in to the foreign market with a new product.
3) To attract the customers at retail level and develop the foreign market.
4) To compensate the loss of one market by earning from the other.
5) To undertake market research.
6) To establish coordination between personal selling and advertising.
7) To test the product in over sales market.
8) To expand a PLC.
9) To establish an image in the mind of target market.

Types of export sales promotion:-
The various methods used for export sales promotion are
1) Classification on the basis of functions to be performed & target to be reached.
(i) Introducing a new product-New product can be promoted in the foreign
market with promotional tools such as free samples, refunds, fairs &
exhibitions etc.
(ii) Increasing the use of product-Tools like price off deals, distribution of
premiums, contests are used in business market.
(iii)Direct enticement of customers at retail level-Export promotional
plans can be operated with the help of retailers tools like trading
stamps , retailer coupons , point of purchase , free training etc. are
used.

20

2) Classification on the basis of target audience.
(i) Customers oriented tools-Free gifts , samples , premiums , offers ,
contests, refund offers , fairs & exhibitions , stage shows , pop displays ,
coupons & trading stamps patronage rewards & special sales techniques
are used in the overseas market.
(ii) Distributions oriented tools-Sales contests dealers sales training , pop
displays , money & merchandise , allowances , advertising aids &
cooperative advertising , managerial assistant in accounting & inventory ,
formation of sales strategies are the tools for distributor promotion
analysis of international market information , foreign trading materials etc.
can also be need.
(iii)Foreign market centered sales men techniques-The important sales
promotional tools for foreign salesmen are-Sales meeting , sales men,
contests costumers product models, samples & visual aids , sales literature
& sales training manuals, briefs of foreign trade low is foreign marketing
& sales portfolios foreign market research information.

3) Factors affecting export sales promotions-domestic marketing is different from
international market. there are differences in consumer behavior , consumer tastes
and preferences, consumption habits , business traditions, cultural values etc.
Certain factors which effect the sales promotions in foreign market are-
(i) Govt. interference-In some countries, the govt. may impose restridions on
the use of certain kinds of sales promotion techniques used by organizations.
(ii) National opinion- The opinions may differ from country to country. And in
European countries, door to door selling of cosmetic is considered as
interference with personal affairs.
(iii) Problem of translation- languages used in sales promotion might pose
problems in the sales promotion program.
(iv) Statuary condition- Statuary conditions in many foreign countries inculcate
certain changes or modification in the promotional techniques.
(v) Marketing environment Consumer needs preferences, interests, livings,
conditions buying & consumption habits shopping habits , necessitates
suitable improvements in the sales promotions techniques.
(vi) Political views- Political conditions outlook of political leaders exercise
control over the promotional techniques upto certain limit in foreign markets.
(vii) Structure & behavior of wholesaler & retail traders- Certain sales
promotions tools are executed by the cooperation of wholesalers & retail
traders & there for the structure & behavior of wholesales & retailers have to
be kept in mind as the functioning & practices of these traders may be
different in foreign markets.
(viii) Consumption patterns-Consumption pattern in different countries may
differ therefore sales promotions techniques should be used keeping in view
the foreign market.

21
(ix) Cultural values & traditions- Sales promotions techniques should be
culturally accepted by the people in the foreign market. As the culture of
different countries differ.

Q.9 What are the needs for evaluation of sales promotion program? Discuss the
methods of evaluations of sales promotion program.
OR
Discuss the needs for evaluations of sales promotion program.
OR
Why the need arises for evaluations of sales promotion program? Explain.
Ans.- Though almost all companies resort to sales promotion techniques , only some of
them follow it in a planned way. The conditions for the success of sales
promotion program are as follows:-
1. Identify the requirement The firm needs to find out. It is to bring in
substantiate extra sales immediately. It is to offered accumulated stocks ? It is to
regain loosing consumer interest in the product etc.

2. Identifying the right promotion program-The firm has to select the program
suitable for current need & situation the choice of the firm should be deducted
according to the resources available with the firm.

3. Enlisting the involvement of salesmen- Often sales promotion program are
conceded & planned at the head office . But for the campaigns to succeed, it is
essential that the salesmen be briefed on the contest & contest of the program.
They have to be informed of their roles in the conduct of the program.

4. Enlisting the support of the dealers:- It is also essential to enlist then support of
the dealers in any large scale sales promotion venture. Since the major part of the
activity is around the dealer shop, the pop material and the product under
campaign will get the required prominence. Only if the leader so dealers.

5. Enlisting the advertisement agencys support:- The adevertising agencies
support is also essential for the successful working of a sales promotion
campaign. carrying out a sales promotion campaign is as challenging as
conditioning an advertising campaign. So companies while commetting heavy
finds for sales promotion make it a point ensure that that they benefit from the
experience and experlise of their agency.

6. Timing of the campaign:- The sales need of the company is the prime factor that
desides the timing. But the firm has to eansider factors like seasonality of
purchase of product.
Need for evolution:- The need for evaluating the sales promotion programs are-

1. Identifying growth and development opportunity.
2. Taking correction steps in case of any draw back.
3. To measure the effectiveness and achievements of objectives.

22
4. Facilities for future planning.
5. To encourage for research & innovations.
6. To motivate the employees into have contributor.
7. to know the maturity limit of sales promotion program.
8. To study new & modern tools of promotion.
9. To get allocated maximum budget for sales promotion.

Methods of evalution:-
1. Sales data method- This method is a widely a accepted practice. In this method ,
sales volume or market share prior to any sales promotion techniques are
measured . Eg. If market share of a product before the introduction of sales
promotion is 4% , during the period 10% & immediately after the program 6% ,
Thus giving an increase of 8%. Showes that new customers are created by the
sales promotion program.

2. Consumer panel data- This technique help to identify that how the customers
have been motivated by the sales promotion technique for longer purchase . How
much quality have the customers purchased & What were the charges of their
buying behavior after the sales promotion program. This technique help to
identify the various classes of customers on new or old customers / women / men
/ industrial / general customers etc.

3. Consumer surveys- This method collects various kinds of information about the
customers so as to analysis the effectiveness of sales promotion. The analysis of
suchinformation help to know following things-
1) The numbers of customers who have remembered the techniques used.
2) The views opinion about these techniques.
3) How these technique have been helpful in influencing the buyers
behavior & brand chore of customer?
4) Do the customer require any innovation to be differed in the product?
5) Do these techniques improve the image of the firm?
6) Do they feel like using these techniques through the year?

4. Experiment methods- The effectiveness of sales promotion technique may be
measured by experimenting them in selected markets. However there can be
certain difficulties. They are as follows-
1) The consumer always looks for deals customers are interested only in the
purchase in the items which offer certain additional incentive with that of
the product.
2) The promotional tools at times can be very costly as, if the organization
does not get expected results. Then the price of product may be increased.
3) The cooperation from middlemen might not be smooth.


23
MULTIPLE CHOICE QUESTIONS:-

1 Which of the following is a characteristic of sales promotion?

1.incentive
2.communication
3.invitation
4.all of the above

2 Sales promotion is a _--------- activity?

1.non recurrring and non media actvity
2.planned activity
3.universal activity
4.all of the above

3 Advertising presents an emotional appeal whereas sales promotion
presents an -----------appeal:-

1.intelligent
2.co operative
3.rational
4.none of the above

4 Functions of sales promotion department are:-

1. Assistance to top executives-
2.Coordination & liaison with other departments
3.Sales promotion research
4.All of the above

5 Trade shows,free trial offers ,free samples etc are types of:-

1.adveretising tools
2.personal selling
3.sales promotion
4.none of the above

24

CASE STUDY

Client: LG Electronics
Project: Product Launch
Event: LG launches its new 71" plasma TV

LG Electronics asked PGS Corporate to help turn its launch parties for a
new big screen plasma television into memorable events for customers at
two key retail locations. PGS Corporate rolled out the red carpet and
delivered amazing events.

Project Overview
To generate excitement for the launch of LG's 71-inch plasma TV, PGS Corporate
coordinated and executed two customer events at key dealerships in Paramus, NJ and
Los Angeles, CA
These events were catered to meet every need of the customers in attendance including:
* Valet parking
* Red carpet entrance with velvet ropes
* Themed decor including LG branded ice sculptures
* First-class food and beverage
* Podium, microphone and speakers to introduce the TV
* Gift-wrapped martini sets for parting gifts
PGS Corporate Involvement in Program Execution
All event logistics including pre-event planning, on-site execution,
post-event summary and wrap-up etc.

CASE STUDY

(i) Pizza hub is a chain of family oriented restaurants with more than 320
locations in 21 states.pizza hub offers full table service and features daily
buffets for breakfast, lunch and dinner.

25
(ii) Challenge
Pizza hub wanted to increase traffic and sales for featured items,
such as seafood dishes and the nightly buffet at the companys 140 wholly-
owned restaurants. Each restaurant has approximately 50 employees .waht
sales promotion tools should be used by pizza hub to increase store traffic
and increase sales:-explain in detail.

26

Section - B

Recruitment, Selection & Motivation

Ability is what you're capable of doing. Motivation determines
what you do. Attitude determines how well you do it.
-raymond chandler

Q.1.What do you mean by recruitment of sales men? What are the sources through
which salesmen are recruited : Discuss the merest & demerits of each.
In context of selection procedure
Discuss this statement The fortune of a consumer depends on sales which
intern depends on salesmen.
Ans. Recruitment is the process of identifying key people in the organization & a process
to discover the source of manpower to meet the requirements of staffing schedule
& to employ effective measure for attracting the manpower in adequate numbers to
facilitate effective selection requirement is the first part of building a top notch
sales free.
Some of the definition of requirement are-
1. Edwin & Flippo Recruitment is the process of searching of prospector
employees & stimulating them to apply for jobs in the organization.

2. Victor P. Bull- Recruitment is the search for the best equitable candidate for a
sales position .

3. Byars & Rue- Recruitment involves seeking & attracting a pool of people from
which qualified candidates for job vacancy can be chosen .

4. Spiro & Stantion- Recruitment includes identifying source of recruits that are
consistent with the type of person desired selecting the source to be used &
contacting the recruits.

Process of Recruitment:-
The Process of Recruitment Involves:-
1) Establishing responsibility for Recruitment- The management must give
responsibility as to who will make the recruitment & the selection decision. this

27
responsibility might be given to the top sales manager , the HR department or the
sales manager.

2) Determining sales force needs- The no. of new sales people depends on factors
such as sales growth targets, distributions strategies, sales force turn over. The
sales force turn over can be because of poor performance, retirement, resignation
for another job etc.
3) Considering company nature- A specific definition of the organizations culture
is necessary for planning cycle validity. The process of aligning a companys
recruiting strategies to its case culture should help attract and retain higher
programming sales people as complained to those companies whose recruitment
process are reactive.

4) Determination of the number of sales personnel required The number of
salesmen is determined by keeping in view the following facts like- Present sales
activities of the firm, future prospectus for expression of sales, estimated sales by
each salesman, no. of present salesman to be promoted for higher posts, expected
no. of persons to leave the firm in the future, the usual turnover rate of the
salesman.

The formula used for calculating the no. of requirement of salesman is-
N= S/P (1+T)
Where
N= Number
S= Sales forecast
P= Present average sales
T= Turnover rate of sales personnel.

5) Developing a profile of the type salesman needed- The profile and nature of
salesmen is determined on the basis of the job requirements. Salesmen may be of
different nature and the nature of salesmen be determined on the basis of job
requirements. Two functions are mainly involved in determining the nature and
suitability of the salesmen-
(i) Job analysis It refers to the process of studying the operations, duties
and organizational aspects of jobs in order to derive specification, for
analyzing the job being carried out by salesmen, following two activities
involved-
a) Job description- In this process first of all analysis of sales
activities are made and then job description is prepared. The
following points are usually covered like-
Title of job.
Organizational relationship.
Types of products & services sold.
Types of customers called on.
Duties and responsibilities related to the job.
Job demands.

28
Hiring specifications.
b) Man specifications- It gives light on the employee needs. It
contains information on physical, features, health, voice, mental
qualities like education, mental balance, etc. social & moral
qualities like obedience , encouragement , friendship , sincerity ,
capacity to bear the heights & responsibilities , work experience
etc.
(ii) Review of the present salesmen- The existing salesmen are received to
as certain how many of them have been successful in their functions. As
a result of review, some changes may be interfused for them also.
6) Evaluating introduced recruitment- The company should continuously evaluate
the effectiveness of recruitment process. It will enable the management to
determine which sources produced the best results.

Source of recruitment The source of recruitment can be categorized into-
1. Internal sources-
a) Company sales personal.
b) Company executives.
c) Internal transfers.

2. External sources-
a) Unsolicited applications - All companies receive unsolicited walk in &
write in applications directly for sales job . The most logical policy is to
create volunteer applications the same as solicited applications.
b) Employment agencies.
c) Educational institutes.
d) Sales people making calls on the company.
e) Sales executives club.
f) Employees of customers.
g) Older persons.
h) Other industries .
i) The internet.

SELECTION PROCESS
Selection is a process to determine whether an application meets the qualifications for the
specific job &to select the applicant who is most likely to perform well in job.

A proper selection of sales persons makes the base for success of a sales organization as
it increase per capita sales & the moral of the sales organization. A sound selection
process also increases the goodwill of the firm because the salesmen represent the
company. If he makes a poor impression , the company is likely to have a poor reputation
among its customers.

SELECTION PROCESS The selection process consists of following steps-
1. Pre-interview screening- Pre-interview screening is done for the purpose of
elimination unqualified candidates , this pre interview can be handled by a clerk or

29
secretary. This pre interview screening is required as when there are large no. of
applications , it is desirable to rest out the prospective applications who have given
information about the nature of job , salary , responsibility etc.

2. Formal application form- Formal application serves as a record regarding the
information collected during the selection process. A formal application is filled up
after preliminary interviewer who records the responses of applicant.

3. Selection Tests-The selection tests are important part of the selection process.
Different types of selection tests are as follows-
a) Mental ability test- Mental test measure the overall intellectual
capacity of a person &enable the person to know whether he has
mental ability to deal with every new problem. The learning
capacity, Inductive reasoning, ability to take decision can be tested.
b) Aptitude tests- These tests are used to measure. The ability of an
application to learn new jobs or skills. these tests help to find out
whether a candidate will be appropriate for the job of salesmen or
not.. They focus attention on a particulars type of talent such as
learning & reasoning.
c) Achievement tests + Proficiency tests- These tests measure the
skill of knowledge which is acquired as a result of training
program & on the job experience . These lists can be helpful when
an experienced person is to be promoted to higher job or when a
person is to be transferred from one job to another.
d) Personality tests-These tests aim in measuring those
characteristics of an individual , which are non intellectual in
nature. They assess his motivation interests, his ability to adjust
himself to the stress & his capacity for inter personal relations &
self image.
e) Interest tests- These tests aim at finding out types of work in
which an applicant is interested. They are inventories of the likes
& dislikes of people in some occupation, hobbies etc.
f) Temperament tests- These tests help to evaluate the various
factors of temperament such as likes, dislikes, flexibility , habits
etc.
g) Attitude tests- These tests measure the attitude of applicants
towards business conditions, employment, salaries , promotions ,
labor , social & political charges govt. policies etc.
h) Situational tests- These tests measure the applicants capability to
work in the real situation , under this test, the capacity of the
salesmen to work in different sales areas & with different
customers is tested.

4. Interview- Interview is the most widely used selection step & helps in judging an
individual as to ability in oral communication, personal appearance, attitude toward

30
sales & company etc It is a meeting between two persons sothal they can know about
each other.
a) Patterned or structured interview- Here the interviewer uses a
prepared outline of questions designed to get specific answer from
the interviewer. The interviewer may record the answer as they are
given.
b) Non directive or free interview- It is an unstructured interview.
In this type of interview, the applicant is encourage to speak about
his experiences freely. The interviewer might ask few questions &
speaks only enough to keep the interviewer speaking. Experts feel
that this technique is best for getting into individuals personality
in depth.
c) Stress interview- In stress interview, the interviewer assumes an
unfriendly behavior towards the applicant . He asks such questions
which can be quiet embarrassing for him & asks questions rapidly,
criticizes the answer & interrupts him frequently.
d) Rating sales- One draw back of a personal interview is the
tendency to lack objectivity a defect that can be reduced through
rating seales. sating are channeled into a limited choice of
response . experiences indicate that these results in more
comparable ratings of the same individual by different
interviewers.

5. Reference check- This check is made by personally contacting school, institutes,
present or previous employer on the basis of certificates, degrees, references provided
by the appointments. The purpose of reference checks to find out his character,
conduct, behavior & morality.

6. Physical examinations- Most of the companies go for physical examination &
following examinations can be carried like-
Examination of physical fitness, heights , weights , stomach , waist etc.
Test of blood pressure , blood & urine tests , Neuro-psychiatric lists,
Medical treatment history etc.

7. Determining terms of service- Terms of service are determined after the selection
process Terms of service include the matters related to salary, commission,
allowances, housing facility etc.

8. Appointment- The appointment letter contains the terms & conditions of
appointment with regard to pay , allowances , conditions of service probationary
period , the last date of joining duty etc. , duty signed by the appointing authority.

9. Induction / orientation- Induction gives the following information to the
salesmen about history of firm, policies & rules of firm. information about sales
department , products & services , social welfare schemes, policies towards

31
promotions & transfers , disciplinary measure, rights , duties & responsibility of a
salesperson.

Q.2 Define sales training, state various methods of providing training to the
salesmen.
OR
Explain the various aspects of sales training.
OR
How will you plan and build a sales training program?
Ans. Sales training has been recognize as one of the vital factors in the success of the
sales person. The essence of training in the belief that performance of people
can be improved through the training.
Training of the sales men is a process of selling skills development so as to
increase the ability, knowledge and experience of the salesmen to perform well
on the job.
OR
Sales training is an organized activity involving fact finding, planning,
coaching, placing and purposive attempt to develop selling skills and to add
these skills to selected nature ability, causally acquired knowledge and
experience.

Aim of sales training/advantages:-
1) Increasing sales.
2) Getting new accounts.
3) Factor turn round of stocks.
4) Selling a complete product line instead of just fast selling items.
5) Better merchandising and sales promotion.
6) Better product knowledge.
7) Improving sales presentation and sharpening sales skills.
8) Improving clinching skill in particular.
9) Customer education on products, their use and benefits.
10) Improving customer and dealer relations.

Successful training program consist 4 phases:-
1) Training assessment- In this phase a messenger must discuss the following
points:-
a. Training objective-The major objective of training is to improve the
productivity of salesmen. Training programs also lower live employee
turnover rates, leads to better morale, more effective communication &
better self management.

b. Who should be trained- It is the newly recruited salesmen Who needs
training, but the existing sales force also needs training as things keep on
changing. New products are introduced , buyers performance charges , so
it becomes important to train dealers , distributers & sales manager.

32
c. Training needs- Assessment of training needs provides the starting point
for getting training goals & designing the program. Setting the objectives
also helps to trainer & the trainee focus on the purpose of training as well
as provides the standard for measuring training effectiveness.
d. How much training is needed- the amount of training required depends
on the training objectives . for a new promotional program, only one day
training might be sufficient.

2) Training program design- In this phase , the following questions need to be
answered-
a. Who should do the training?- Regular line executives, staff personal ,
field specialist may serve as trainers. Any one of them or even a
combination of persons can be used.

b. When should the training take place?- Training should be continual
function as manager believes that every one placed in the field should be
fully trained, not only in company & product knowledge , but also in
selling techniques.

c. Where should the training take place?- The decisions of training
programs location involve the extent to which it should be centralized.
There can be 2 types of training-
i. Decentralized- It takes several forms like- field sales office, use of
senior salespeople, on the job training etc.
ii. Centralized- It may take place in organized or in period sales
meeting at a central location.

d. What should be the content of the training?- The basic topics on which
salesmen are gives training can be-
Knowledge about market.
Knowledge about customers.
Knowledge about products.
Knowledge about competitions.
Knowledge about company.
Salesmanship.
Team building skills.
Relationship building skills. \\

e. What training methods should be used?- Several different teaching
methods may be used to present material in a sales training program. It is
important to select those teaching methods that most effectively convey
the desire contest.

3) Reinforcement- Most sales people would not change their behavior as a result of
training unless there is same reinforcement. There can be many ways to reinforce
training.

33

4) Training evaluation- Sales manager must assess the effectiveness of the training.
This evaluation helps to determine the value of training & to improve the design
of the future programs.
Methods of sales training- The training methods can be categorized into-
1. Group training methods-
a) Lectures / class room instructions- They are regarded as one of the most
simple ways of importance knowledge to the trainees, especially when
facts, attitudes, theories & problem solving abilities are to be taught. The
lecture method may be used for a group containing good number of
trainees, audio-visual equipments; VCRs, projectors also increase the
effectiveness of lectures.
b) Group discussion methods-In this method, different groups are formed
by limited numbers of persons. Each group seeks guidance under the
leadership of a senior officer. The group discusses the sales problems with
the leader & efforts are to be made to find out a commonly agreed solution
to each problem.
c) Sales conference methods- It is a formal meeting conducted in
accordance with an organized training plan. It lays emphasis on small
group discussion, on specific subject matter. Three types of conference.
such as 1)Directed conference 2)Problem solving conference 3)
Leadership discussions . This method is used for training the persons
holding managerial position.
d) Case study method- The trainees are given cases to analysis. They are
asked to identify any sales problem & to recommended tentative solution
for it. This method is useful for the manager to improve their decision
making skills.
e) Role playing method- In role playing, trainees act as given role as in a
stage play. Two or more trainees are assigned parts to play before the rest
of the members. The role players are informed of a situation & of the
respective roles they have to play. The idea of role playing involves
action, doing & practice.
f) Gaming methods- Gaming method is a technique which duplicates, as
nearly as possible & this method develops the decision making capacity
of the trainees. The knowledge about various decisions methods such as
selling efforts, advertising, sales force management, size of the orders time
for getting orders are learnt through such training.

2. Individual training methods-
a) On the job training- The salesmen are appointed to do their duties under
the guidance of experienced salesmen. This method is also known as
training within industry.
b) Job rotation training- This method is used to provide knowledge to the
trainees in respect of functions of different departments such as research
department, accounts, advertising, packaging & public relations etc. This
type of training develops the practical knowledge of the trainees.

34
c) Personal discussions- The salesmen contact his sales managers & senior
manager from time to time & discuss with them the individual problems.
The manager gives good advice & suggestions on the basis of their
experience & their helps in improving the efficiency of salesmen.
d) Correspondence- When the sales trainee are at distant places, it becomes
difficult for them to assemble every time for training. In such cases,
training is imparted through correspondence. The training materials are
printed & circulated to the sales trainee at different places where they are
working . The trainees read the material carefully & learn to adopt or
fallow the guidance & instructions received through the study material.

Q.3 What do you understand by the term motivation? What is the need for
motivating sales personnel?
OR
Discuss steps in motivation process.
OR
Define motivation. Explain the different methods of motivating salesmen?

Ans. Motivation is a goal directed behavior and creating and maintaining a well
motivated sales force is a challenging tasks. Motivation is the amount of effort the
sales person desires to expand on each of the activities or tasks associated with the
sales job.
The desire to expand effort to fulfill a need is called motivation or motivation can
also be defined as an individuals willingness to exert to achieve the organizations
goals while satisfying individual needs.
OR
Motivation is an inner state that energizes, activates or moves channels behavior
towards goals.
Characteristic:-
1. Motivation is a .
2. It develops efforts and will to work.
3. It is a .
It is related with satisfaction
financial or non financial.
1. It provides rewards in line with the goal.
2. It is only one component of successful sales performance.
3. It is a psychological help given to salesmen.

Objectives of sales motivation:-
1. To stimulate the salesmen to reach and maintain satisfactory performance levels.
2. To improve the working efficiency of salesmen.
3. To establish cordial situation between the managers and salesmen.
4. To maintain high morale among the salesmen.
5. To satisfy the economic social, human needs of salesmen.
6. To implement sales management program.
7. To expand efforts of salesmen on each activity making of the sales job.

35

Need of motivation :-
The need of motivation arises because of following reasons.
1. Nature of sales job - The nature of sales job is for different from other jobs.
Salesmen have to put hard work to obtain a sales order as every sales job involves
ups & downs and feelings of joys and depressions. Salesmen also interact with
many unpleasant and rude people the connections cause sales persons to become
discowage to achieve low performance levels, So therefore additional motivation
is required.

2. Role conflicts - The sales person must try to satisfy the expectations of people
both within the company in customers organizations. There is a linkage with four
groups a) Sales management b) Company or Organizations that handles order
fulfillment c) Customer d) Company sales person. Each group imposes
behavioral expectations and in playing these roles the sales person faces role
conflicts.

3. Domestic problems - Travelling salesmen mostly remain away from their homes
and due to these extensive travels, they cannot lead a family life. This leads to
demoavatoin among the employees and all these factors may influence adversely
in their proper functioning. They are given special leaves and monitory benefits
by certain companies to motivate them in this respect.

4. Development of team spirit Most of the salesmen serving with big sales
organization work much away from the head office. they remain busy in the fields
at distance places throughout the year, So by organizing seminars and conferences
from time to time, such salesmen are given opportunity to meet at one place to
share group feelings and also for the betterment of the relationship.

5. Changes in market environment Changes in market environment can be one of
the factors for motivation as what motivates salesmen today may not work for the
next month because of changes in market conditions.

6. Helps in building morale- motivation helps willingness to to work , when the
need of the salesmen are satisfied, he is stimulated to do more work , therefore
motivation is driving force for the development of morale.

7. Proper use of human resources- motivation is also essential for the effective use
of human resources as the inborn qualities of each salesmen can be developed
through better motivation tools so as to utilize the human resources for maximum
benefits of the organization .

8. To improve mutual relations- motivators encourage salesmen to improve their
work performance. This results in increased sale.

36
9. Utilization skill- Most of the salesman do not make efforts to utilize their full
work capacity. Motivational tools stimulate them to expand their full energies &
to develop latent qualities.

Process of sales motivation:-

1. Determination of objective A sales manager has to determine the reason & the
stage at which the salesmen has to be motivated. Objectives decide the levels
resources & tools of motivation.

2. Studying the unfulfilled needs The motivational process starts with an assured
need. For this purpose, it is necessary to recognize the individual differences
between persons. The differences of mental conditions, expectations, positions,
aspiration, personal goals & their attitudes must be studied & hence the sales
manager should take step to study those unfulfilled needs.

3. Existence of motivation conditions- Three conditions must exist before an
unfulfilled needs lead to enhance sales performance . 1) Salesmen must feel that
the reward are desirable that is they will satisfy some needs . 2) They must believe
that the reward are tied to performance finally salespeople must believe that the
performance goals on which rewards are based are attunable.

4. Selecting motivation tools- The sales manager must design effective motivation
tools. Every motivational program should have some elements within it that can
be Toulouse to the individual needs.
5. communication To make motivational plan successful it must be communicated
to salesmen and concerned person.
6. integration interests The interest of salesmen and the firm must be integrated in
motivational program.
7. certain of auxiliary environment physical environment and working conditions
play an important role in motivating sales personal. this environment may be
created within company by producing various ways and means for good working.
8. developing team spirit individual efforts should be directed towards developing
team spirit among sales men.
9. feedback- the results achieved for the motivational plans should be compared with
the goals decided in the program in order to identify any deviation.

Q.4 What are the characteristics of a good sales compensation plan and discuss the
main steps involved in designing a sales plan?
Ans. To motivate the salesmen and for retaining the salesperson a good sales
compensation plan is the first requisite.
Basically a good sales compensation plan is that directs the salesmen activities
towards the objectives of the firm. It should stimulate the salesmen to put in their
best efforts both qualitatively and quantitatively towards achieving the plan sales
and other goals. It should assure a minimum income and appropriate additional
reward for above average performance. In many cases a good sales compensation

37
plan also helps ensure the right treatment of customers. A poor sales
compensation plan invariable Leads to poor quality of sales force.

A good compensation plan must :-
1. Direct salesmen activity towards companies objective .
2. Correlate efforts results and rewards of salesmen.
3. Help attract and keep competent salesmen.
4. Stimulate the salesmen in their best efforts.
5. Help control a salesmen activities.
6. enthuse efficient salesmen and help remove the inefficient once.
7. Preferably provide & components of income, an assured income and additional
reward for superior program.
8. Be fair and just to the firm and to the salesmen.
9. Reflect the current needs of the firm.
10. Be flexible and also stable.
11. Be simple and easy to administer.
12. Be economic and competitive.

Designing a sales competition plan :- The steps involved in designing a
sales compensation plan are as follows-
1. Describe the job.
2. consider the overall competition structure of firm.
3. Make industry compressions.
4. Select suggestions from sales force. (sales manager)
5. Aside the compensation level.
6. decide the compensation mix.
7. Financial compensation- a) Direct payment of money. b) Indirect
payment of money. Non financial compensation a) Importunately for
advancement b) reorganization and fulfillment of esteem needs.
8. Decide the highlights of the different elements.
9. Put the plan in to operation, watch, review and improve.

The compensation level- In fixing the level of sales compensation plan
many firems go by the going market rate. Higher starts are given for more
competent and more experienced salesman who can bring in larger sales.
Detailed job description through job evaluation and intercompany as well
as inter compensations should be the basis for fixing the compensation
level. Compensation level offered to the sales men has to be suitable
related to the level provided to others in the field sales outfit like sale
supervisor and branch manager.

The compensation mix Different firms follow different practices in the
regard. A few attractions are listed below.
1. Straight salary plan.
2. Straight commission plan.

38
3. Salary plus commission combination plan.
4. Salary plus group commission plan.
5. Commission plus approved expenses plan

Straight salary plan:-
Merits-
1. Simple to design and easy to administer
2. provides a sense of security and basic motivation
3. help the firm control the salesmen better
4. Ensure salesmen attend to the long term marketing concerns of the firm
5. Help avoid unhealthy industry among salesmen
6. is particularly useful when the firm-
Has chosen the pull strategy for certain sales
has a set of fresh salesmen
goes in to fresh territories
Sells a technical product involving long negotiation and a long purchase
cycle
Sells in a market that is yet to be developed
Demerits-
1. it does not offer incentive for salesmen to increase sales.
2. salary is a fixed cost unrelated to sales volume or margin.

Straight commotion plan:-
Merits
1. Provides incentive to perform better as it rewards the salesmen according to their
performance
2. commotion is a variable cost related to the sales volume or the margins brought by
the sales men
3. in particularly useful
the firm has chosen a push strategy for creating sales.
high incentive is needed to get the sales.

Not must non selling work is involved .
the company is financially weak & has to relate its compensation
expenses directly to sales .
The market is highly competitive & sales are closely related to the sales
efforts.
Demerits-
a) Different to design & administer commission plans can become complex
involving complicated formula.
b) May not be of much use when the salesmen are absolutely new.
c) It is difficult to control straight commission people & is difficult to make
them perform tasks for which no commission is paid.
d) Difficult sales territories may suffer under such a plan
e) May result in excessive pushing of products without caring for the value
satisfaction to the customer.

39
f) similarly if the market becomes unduly depressed due to some reason, the
income of the salesmen would go down directly.


1 External sources of recruitment of a sales person are:
1. Company sales personal.
2. Company executives.
3. Internal transfers.
4. none of the above

2 Pre-interview screening,Formal application form,Selection Tests are
part of:-
1.selection process
2.recruitment process
3.termination process
4.none of the above

3 Motivation is a _______
1.phsycological concept
2.can be financial and non financial
3.goal oriented

.all of the above

4 What are the characteristics of a good copmpensation plan?
1. Correlate efforts results and rewards of salesmen.
2. Help attract and keep competent salesmen.
3. Help control a salesmen activities.
4. All of the above

5 Straight salary plan.,Straight commission plan,Salary plus commission
combination plan are types of;-
1.selection plan
2.recruitment plan
3.compensation plan
4.all of the above

40

CASE STUDY A vacancy had arisen for a Director of Sales position and a local
recruitment consultancy were given the task of finding a suitable candidate.
Following discussions with the client, it was decided that useful additional
information should be sought on candidates through the use of psychometric
assessment.
The recruitment consultancy asked Team Insight to provide this assessment
service on their behalf.
Timescales were short with the initial interviews having already taken place.
Further complications included the difficulty in the short-listed candidate being
available to complete questionnaires and undergo feedback sessions within the
time available.what steps you would take to solve the problems while
recruitment and selection process??


41

Section- C

Sales Forecasting, Quotas & Territories
When it comes to understanding consumers its always
important to consider the issues from a rational
perspective
-warren buffet

Q.1 What do you mean by prospective customers?
Discuss the steps involved in prospecting the salesman identify or locate the
prospecture customers.
Ans. Planned selling process is a process under which approach them and make an effort
to creat contests, desire, events among them. Selling process can also been defined
as an orderly progression that leads the prospect to make certain decisions, is the
frame work on which your sales presentation is build.

Steps in selling process:- Selling process involves the various stages
1. presale preparation
2. prospecting or locating customers
3. Pre- Approach before interview
4. approaching
5. presentation of sales
6. sales calls and closing the sales
7. post sale/ follow up activities

Pre sale preparation:- In the pre sale preparation a salesmen prepare about certain
things like the product, knowledge about the firm, market information, knowledge
about sales techniques.

Prospecting customer:-
1. Defining the prospects- a prospective customer is in need for the product
have ability to pay and authority to buy the product & a good personality to
present the salesman for contacting him frequently.
2. Searching out potential accounts- the salesmen can use two types of sources
for selling potential customers. The secondary sources include friends and
relations of existing customers , self observation , field survey, by contrasting,

42
advertisement, govt. and nom govt. agencies, magazines, social contacts. The
primary include family friends, relatives.
3. Qualifying products and determining probable requirements- it is
necessary to determine the probable requirement of customers and this
function may be performed on the basis of following indicators of need,
indicators of ability to pay , indicators of authority to pay, indicators of
accessibility.
4. Relating companies products to each customers requirement- The
salesmen on the basis of collected information tries to satisfy the specific
requirements of prospector customers
Pre approach:- Before approaching the customers there is anteed to cullet full
details about the customer. This approach involves collecting the details about the
potential customers such as age, sex , source of income, education, friends and
relation, present buying, buying object. The personality treats of customers are
also studied to get himself prepaid to face different types of customer.
Approaching:- In this stage the salesmen comes in contact with the potential
customers vat before approach salesmen should get an appointment fixed with the
customer.
Contacts with the customers without any period appointment is called as cold
calls. In such cold calls the salesmen should try to influence the customers by his
well manners.
Presentation of sales:- Presentation is the most important step in selling as in this
stage the salesmen presents his product to the prospective customer. The
presentation may be made by Type of customers while presenting the product,
the salesmen should follow the AIDA approach.

A- Attention The presentation should be able to gain attention of the customer
towards the product or company.
I- Interest- The prospective customer should be interested in the product by the
company.
D- Desire- He should have a desire to buy a product.
A- Action- The customer takes an action in buying the product.

1. Attracting attention- Attracting the customers attention is the first
step in presentation. There are certain factors which help in attracting
attention like showroom, lights, interest to customers, their
expectations and their personal problem.
2. Creating interest- Here an interest is created among the customers
toward the products. Interest can be created by benefit approach in
telling the customers about the benefits of a product or seriously
approach or aromatic approach or factual approach or I am here to
help you approach or problem solving approach and service
approach or information and visualization approach.
3. Arising desire and building conviction- It is necessary to convert the
interests of the customers in to desires. Which is turn generally
demand for a product. The desire can be generated by making the

43
customer clear how the product will satisfy the needs and making clear
the advantages the customers will receive using by the product.
The salesmen will be able to build coonvietion when the customer is
convinced from the talks, such a situation can be build only when the
salesmen can give the satisfactory answers, to the objections raised by
customer.
4. Handling/Meting objections- Objections are excuses for not buying
the product. objections block the sale that comes as the prospect either
does not understand the salesmens propositions or does not agree with
him.
There are various causes for objection-
It is human nature to cause doubts when decision has to be
taken for buying new product
When the customer is unable to judge the advantage of the
product
When he fails to understand the personality and the language of
the salesmen
When he wants to testify the statement made by salesmen
when he disagree with the utility of the product

Sales calls and closing sales:- Whenever the customers interest is created and the
customer is fully satisfied with the product then it is the time to close the sale. This is the
end point of selling process and during this time the customers is ready to place the
order.

Post sale activities and follow up:- The purpose of follow up is to evaluate the
complete selling process and to ensure everlasting relations with the customers.
The sale process does not end up immediately after orders, but has to continue even after
that.

Q. 2 Define sales forecasting? Discuss the produce & the methods of sales
forecasting.
Ans. Sales forecast is the basis of corporate planning forecasting is a systematic attempt
to product the future on the basis of known facts. It is the result of numerous
assumption made about the external and internal environment of firms.
Sales forecasting is the estimate level of the company sales based on chosen
marketing plan and assumed marketing environment.
OR
Sales forecasting is the climate of sales during some specific future period time &
under a pre determined marketing plan of the firm.

Important
1. it is the foundation of planning.
2. Companies uses the sales forecast to allocate resource across different functional
areas.
3. It is the key factor in all operational planning throughout the company.

44
4. It serves as a base for sales force planning.
5. It plays a major role in the success of the organization.
6. It is the key to sales management.
7. It helps in profitability of the firm
8. It helps in facilitating production planning
9. It helps in better financial planning.
10. It is developing sales strategies and promotional plans
11. It helps in suggesting R & D.
12. Also helps in better inventory control & sales quota determination.

Process of sales forecasting :-

Determination of goals The sales manager should decide the goals for sales
forecasting. The objectives may include determination of sales publicity programme,
marketing methods , sales quota determination, estimation of working capital etc.
Determining the factors affecting sales The controllable factors are like marketing
& advertising policy, organization structure etc. & the non controllable factors like
political & social systems, seasonal fluctuations etc. must be determined.
Selection of techniques Suitable methods for sales forecasting must be selected
keeping in view the objective time intervals resources and nature of the firm.
Correction of data This is the step of collecting various kinds of informations &
data related with future demands of products.
Analysis of market potential The next step is to analyze the data of market
potential . Analysis requires two steps>> a) Select the market associated with
product demand. b) Eliminate those market segments that do not contain
prospective business.

Forecasting of future sales:-
Sales projection should be made for an entire product line or for an individual
Product or for companies total market or individual market segment.

Making operational programme & the budget :-
The firm determines the requirements for various operational activities such as
production purchasing marketing capital assets. On the basis of forecast the related plans
such as sales budget sales quotes sales publicity and material acquirement are formulated

Derivation of a sales volume objectives:-
A sales volume objectives for the coming operative period is hoped for the outcome of a
companys short range sales forecasting procedure, The sales volume should be
consistent with managements profit aspirations and the companies market capabilities.

Evaluation & revision of forecasts:-
The sales executives should evaluate the forecasts carefully. The company should
examine all the assumption on which it is based. The company should the forecasting
process periodically. The first step in the review is to determine the accuracy of past
forecasts to learn if changes are needed in the way forecasts are made if the company

45
finds that sales forecasts are significantly different from actual sales in the period it
should undertake a review of the sales forecasting process.

Techniques of sales forecasting:-

I. Survey methods:-
a) Executive opinion
b) Prudent manager forecasting
c) Delphi method
d) Sales force composite
e) Detecting differences in figures
f) Survey of buyer intention
g) Product testing and test marketing.

a) Executive opinion It consists of obtaining the views of top executives
regarding future sales. The forecasts made by executives are arranged to yield
one forecast for all executives or the differences are reconciled through
discussion.
b) Product manager forecasting In this method the company personnel are
asked to assume the position of purchasers in customer companies. They must
then look at company sales from a customers view point & prudently
evaluate sales.
c) Delphi method This method begins with a group of knowledgeable
individuals estimating future sales. Each person makes a prediction without
knowing others in the group have responded. these estimates are summarized.
Now knowing how the group responded. They are asked to make another
production on the same issue. This process of estimates & feedback is
continued for several rounds. In final round involves face to face discussions
among the participants.
d) Sales force composite This method is based on collecting an estimates from
each salesperson of the products they expect to sell in the sale forecast period.
The estimate may be made in consultation with sales executives and
customers.
e) Detecting differences in figures method In this method the sales person
produces figures broken down by product & customers and the area manager
produces figures for the sales persons territory. They then meet & must
reconcile any differences in figures. the process proceeds with the area
manager producing territory by figures.
f) Surveys of buyers intentions This method consist of contacting potential
customers & questioning them about whether or not they would purchase the
product at the price asked.
g) Product testing & test marketing This technique is of value for new or
modified products for which no previous sales figures exists & where it is
difficult to estimate. Likely demand. It involves placing the pre production
model with a sample of potential users beforehand & noting their reactions to

46
the product. Test marketing involves the limited launch of a product in a
closely defined geographical test area.

II. Mathematical methods :-
a) Moving average technique Simplest way to forecast sales is to predict that
sales in the coming period will be equal to sales in the best period. This
forecasts assumes that conditions in the last period will be same as the
conditions in the coming period.

SALES t+1 sales
t
+ salest
-1
+ sales + s sales
t-n

SALESt+1 = Forecasted sales
SALESt = Sales in the present period.SALESt+1 = Sales in the period
immediately past.
b) Exponential smoothing models It is a type of moving average that
represents a weighted some of all past numbers in a time series. with the
heaviest weight placed on the most recent data.
c) Regression analysis This technique is used to project sales trends in the
future. The sales plotted are for each past time period. It determines and
measures the associations between the sales & other variables.
d) Projection of past sales It takes a variety of forms.
To set the sales forecasts for the coming year at the same figure.
May be moving average of the sales figures for several past years.
e) Time series analysis It is a statistical procedure for studying historical sales
data this process involves measuring 4 types of sales variations long term
trends, cyclical changes, seasonal variations & regular fluctuations. Then a
mathematical model about the past behavior of the series is selected assumed
values for each types of sale variation are insisted and sale forecast is made.
f) Market factor analysis Market factor analysis determines market factors &
measures their relationships to sales activity.
g) Correlation analysis This method takes in to account the association
between potential sales of the product and market factor affecting its sales.
h) E-charts this technique is furtherance of moving average technique . It also
shows the monthly sales & cumulative sales.

Q.3 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.

47
5. Serves as a basis o sales contests.
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.
2. 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
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. 4 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.

48
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:-

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.
8. Preparing customer contact plan.
9. Evaluation & revision of sales territories.

Q.5 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.
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.


49
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 & collect 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
the basis of analysis, customer interests and buying motives are determined.

Q. 6 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. 7 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:-

50
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.
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 performance against standards.
4. Taking appropriate actions.

Q.8 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 assist 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.

These 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.
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.


51

1. Which of the following part of selling process?

1. Presale preparation
2. Prospecting or locating customers
3. Pre- Approach before interview
4. ALL OF THE ABOVE

2. Which of the following is a method for setting sales quotas
1. Only forecasts based methods
2. Past experience method
3. Forecasts & potentials based methods
4. All of the above

3 Amotive is a derive which gives_______

1.hatered
2.love
3.satisfaction
4.none of the above

4 Which of the following is a method of studying consumer behavior?

1. Observation method
2.Interview method
3.Questionnaire method
4.all of the above

5 Consumer psychology is the study of ______
1.consumer mind
2.buyer mind
3.dealers mind
4.all of the above

52
CASE STUDY

Toothpaste industry has grown immensely in the Indian scenario. There is a lot of
competition in the industry mainly between two major players Colgate and HLL .The
companies are coming up with new schemes as well as products to lure the customers.
The usage of toothpaste has grown because of the lifestyle and the way the individuals
are living i.e. more awareness about health. Colgate is going ahead with almost 60% of
the market share in the industry.

The title of the project was study on consumer buying behavior in the toothpaste
industry.

The objectives of the study were to Study the consumer buying habit and to study the
toothpaste brands to identify important parameters for customer.
The questionnaire methodology was adopted and the consumers and the sales officer in
companies were contacted in order to have their view on toothpaste. The area of the study
was restricted to Gurgaon 100 respondents were contacted .The sales managers in two
companies were contacted and their views were known in terms of how they were going
in the toothpaste segment.

It was found that many firms are in the toothpaste segment. So it is a highly competitive
segment. It was found that focus as well as cost leadership was being followed by the
firms when they were going in the toothpaste segment.
The firms are more and more focusing on the promotion and they are spending a lot of
money on this front. Customers are also becoming demanding now-a-days and it is seen
that many attributes are important for the success of a particular brand. The firms are
going in for new launches.

It is found that the discounts are important factor. Another important factor is brand
image or brand name.

The project provided an opportunity to know about a competitive segment and how
consumers behave in that segment. It also provided an insight into the toothpaste industry
and the attitude and perception of the consumer in that segment.

Objective of the Study:
To study the Consumer Buying habits in Toothpastes.

53
To study the various factor and identify important parameters for customer
acceptance.
To plot popular Toothpastes Brands on the perceptual maps.
Scope of the Study:
(1) Identification of gaps in positioning stances.
(2) Identification of consumer perceptions and attitudes regarding Oral hygiene.
Conclusions:
The toothpaste industry is going to be more competitive in the near future. The profit
margin is going down over the year and going to be continuing for the future also. So the
main mantra for the companies to be successful is to satisfy the consumers and develop
brand image and brand loyalty amongst them.

So it has become very necessary for the consumers to understand the Indian consumers
very well. So in the future the companies who come up with new products at competitive
prices and with good quality are going to the successful one. Promotional activities are
also going to play an important role that should to be for both retailers and consumers.
So we are going to see a market which is going to heat up in the near future where mainly
two major players Colgate and HLL will fight the war.
Suggestions:
The companies should give more emphasis on advertising and sales promotion as
the competition is becoming tougher and tougher. So they need to make some
brand image amongst the consumers.
The customers are becoming king as they have a whole lot of choices. So the
companies should try to be cost effective and pass on the saved amount to the
customer.
Retailers are still the place to buy toothpaste. So the companies should focus on
retailers also who is also a customer for their products.
The companies should try to launch new products after through research of the
consumers as they are becoming more dynamic day by day.
Limitations:
The responses can be biased, as some of the respondents may not have revealed
the true pictures.
The company officials also too tend to give biased answers, as they always want
to give a rosy picture of their company.
The managers were reluctant to give information about the product.
The sample was restricted to the Gurgaon region only.

54
Case study
MTV practiced a glocalized brand strategy in order to be the favorite music channel for
its target market. It went in for local recruitment, customizing its program content to suit
local needs, coming out with innovative programs, and at times following instinct rather
than research. The caselet also describes the new challenges that MTV faced while airing
programs based on psychographic segmentation.
Issues:

Challenges faced by a broadcasting company which caters to
markets around the globe
Challenges faced by a broadcasting company while airing
programs based on psychographic segmentation
Strategies followed by broadcasting companies to attract the
target markets

MTV had been airing programs primarily devoted to music
videos since its inception in 1981. In 1985, MTV became a
part of Viacom when Viacom acquired Warner-Amex Satellite
Entertainment, which owned MTV.

A number of rock bands and artists like Bon Jovi, Duran Duran, Madonna, and Michael
Jackson rose to prominence through MTV. As the brand matured through the two
decades of its existence, MTV had to straddle the two generations of X and Y.

The company still managed to be successful in maintaining the freshness in its program
offerings while catering to the needs of both the generations...

Questions for Discussion:

1. How was MTV successful in increasing the level of involvement with the target
market?

2. How did MTV try to maintain its relevance with the changing demographics?
Elaborate.


55
B. Com (Part-I) Examination, 2011
BUSUNESS ADMINISTRATION
Second Paper
Time: One Hour Max. Marks: 40
Objective Part- I
Attempt all questions.

1. Answer following question in not more than 20 words each. Each question carries
2 marks.

i. What do you mean by Salesmanship?
ii. What do you mean by sales promotion programme?
iii. What do you understand by Organisation of Sales Promotion Department
on the basis of target?
iv. What is impersonal selling?
v. Explain the ethical qualities of salesman.
vi. What do you mean by fringe benefits?
vii. What do you understand by Objection of Customer?
viii. What is meant by sales forecasting?
ix. What is meant by monetary sales volume quota?
x. What is perception?

2. Answer each of the following in not more than 50 words each. Each question
carries 4 marks.

i. Advertising and Sales Promotion supplement to each other. Comment.
ii. Explain the co-operative sales promotion.
iii. Enumerate the measures taken by the Government of India for export sales
promotion.
iv. How can the buying motive of a customer be discovered?
v. Briefly explain the salesmans control techniques.

56
Descriptive Part II
Time: Two Hour Max. Mark : 60

Attempt all the three questions, selection one question from each section. Each question
carries 20 marks. Each question has internal choice in the form of either/or.

Section-A

3. What do you understand by consumer promotion methods? Discuss various types
of consumer promotion methods.
or

Explain the difference between export sales promotion and export promotion and
discuss the various methods of export sales promotion.

Section B

4. The fortune of a concern depends on sales which in turn, depends on salesman
Discuss this statement, explaining the selection procedure of salesman.
or

Explain the main methods of training for salesmen.

Section C

5. Discuss the main steps of a sales call.
or

What do you mean by Sales Quota? Critically evaluate the various methods of
setting quota.


57
Second Paper
Objective Part- I

2 marks.

i. What do you mean by "Pubic Relation"?
ii. What is premium?
iii. What is meant by Solo exhibition?
iv. Enumerate the primary functions of Sales Management.
v. What is personal selling?
vi. Explain the principle of unity of command.
vii. What is principle of unity of command?
viii. Enumerate the name of the steps selling sequence suggested.
ix. What do you mean by sales territory?
x. Enumerate the steps control process.

carries 4 marks.

i. Advertising and sales promotions are supplement to each other comment.
ii. Briefly distinguish between sales management and Marketing
Management.
iii. Explain the various schemes of Buying Motives Inspiration.
iv. State the objectives Of Sales Training.
v. How can a salesman create interest of a prospect in the goods?

58
Descriptive Part II

Attempt all the three questions, selection one question from each section. Each question
carries 20 marks. Each question has internal choice in the form of either/or.

Section-A

3. What do you mean by 'Sales Promotion? Discuss the importance of sales
promotion in the moderns age.
or

What do you mean by evaluation of sales promotion programe? Explain is
importance?

Section B

4. A good salesman is born and note made." Describe in brief the essential qualities
of an ideal salesman.
or

What do you mean by selling? Explain the importance of selling in a planned
economy.

Section C

5. What do mean by objection of customers? Narrate the factors that are required to
keep in mind while handling the various of customers.
or

What do you mean by consumer psychology? Describe the various methods of
studying consumer psychology.


59

Second Paper
Objective Part- I

2 marks.

(i) What is the main objective of sales promotion?
(ii) Statement four characteristics of sales promotion?
(iii) What do you mean by consumer promotion?
(iv) What are the managerial functions of a sales manager?
(v) State four ethical qualities of a salesman.
(vi) In which circumstances line organization is treated suitable for
sales organization?
(vii) What do you mean by salesman job description?
(viii) What do you mean by sales volume quota?
(ix) State tow main objective of sales forecasting?
(x) What do you mean by salesman's report?

carries 4 marks.

(i) Explain dealer contest.
(ii) Describe the objectives of evaluation of sales promotion
progremme.
(iii) What is the significance of product knowledge for salesmen?
(iv) What is the need of motivating a salesman?
(v) What do you mean by consumer psychology??

60
Descriptive Part II

Attempt three questions in all, selecting at least one question from each section. Each
question carries 20 marks. Each question has internal choice in the form of either/or.

Section-A

3. How is vales promotion different as compared to advertising? Discuss the various
methods of industrial product and dealer promotion.
or

Write notes on the following :

(i) Sales promotion limitations in an Economy of shortages.
(ii) Export sales promotion.
Section B

4. What is the role of selling in a planned economy like ours? Discuss significance of
customer relations in buyer's market?
or

What are the factors affecting salesman remuneration? Discuss the merits and
demerits of Straight commission plan?

Section C

5. What do you mean by division of sales territory? Describe various methods of
dividing sales territories and discuss briefly the factors affecting their size.
or

What do you mean by meeting selling cost? Discuss various methods of sales cost
control.


61
Second Paper
Objective Part- I

2 marks.

(i) What is meant by "Personal Selling?
(ii) State the objectives of sales promotion.
(iii) What is point of purchase display?
(iv) Explain the meaning of selling.
(v) Who is called merchant salesman?
(vi) What is meant by "turnover of salesmen?
(vii) What do you mean by motivating salesman?
(viii) Explain the meaning of performance appraisal of salesmen.
(ix) What is long range sales fore cast?
(x) Define Buying Motive"?

carries 4 marks.

(i) Explain functional demonstration.
(ii) What is the ability of effective speaking for a salesman?
(iii) Who are voluntary applicants?
(iv) Describe the process of controlling salesmen.
(v) What is customer compliant report?

62
Descriptive Part II


Section-A

3. What do you mean by Promotion? Explain its main techniques.
or

Describe in details the various modern methods of consumer promotion.

Section B

4. Define "Sales Management"? Explain its functions.
or

What is meant by Selection of salesmen? Describe the factor to be considered
in selection of salesmen?
Section C

5. What do you mean by "sales forecasting? Describe the factors affecting sales
forecast.
or

Discuss the classification of buying motives.


63
Second Paper
Objective Part- I

2 marks.

(i) What do you mean by "Public Relation?
(ii) Enumerate the forms of sales promotion department.
(iii) What is "Premium"?
(iv) What is meant by Solo Exhibition?
(v) What is meant by "Sales Management?
(vi) What is ' Impersonal sale"
(vii) What do you mean by "Sales Quota"?
(viii) Define the fringe benefits?
(ix) What is meant by the objection of customer?
(x) What do you mean by "Sales Territory?

carries 4 marks.

(i) Distinguish between sales promotion and salesmanship.
(ii) Enumerate the measure taken by the central government for export sales
promotion.
(iii) Stat the objective of sales training.
(iv) Explain the objective of sales control
(v) State the sources of prospecting.

64
Descriptive Part II


Section-A
3. Define sales promotion and states the reasons of its ever increasing importance in
the modern age.
or

Explain the difference between export sales promotion and export promotion and
discuss the various methods of export sales promotion.

Section B

4. A good salesman is born and not made Explain the statement. Describe in brief
the essential qualities of an ideal salesmen.
or

Describe the function sales manager in a sales organization.

Section C

5. What is consumer psychology? Explain the various methods of studying consumer
psychology.
or

Discuss the utility of salesman report. What are their types? What factors should
be considered while preparing such a report.


65
Second Paper
Objective Part- I

2 marks.

(i) What do you mean by sales promotion research?
(ii) What is meant by demonstration of goods?
(iii) What is meant by sales management?
(iv) What do you mean by effectives speaking?
(v) Define Sales organization.
(vi) What is meant by selection test?
(vii) What do you mean by controlling sales force?
(viii) What do you mean by sales quota?
(ix) What is consumer psychology?
(x) Explain the meaning of "Closing Sale"

carries 4 marks.

(i) Enumerate the four primary functions of sales promotion department
(ii) State the objectives of export sales promotion.
(iii) State the four advantages of proper selection of salesmen.
(iv) Explain the factors that are required to keep in mind while handling the
objection of customers.
(v) Explain the four objectives of sales control.

66
Descriptive Part II


Section-A

3. What do you mean by sales promotion? How does it differ from advertising?
or

What do you by evaluation of sales promotion programme? Explain its
importance.

Section B

4. "Selling is a creative activity". Explain describe the importance of selling in an
economy?

or

What is meant by motivating salesmen? What is need for motivating the
salesmen?

Section C

5. What do you mean by sales forecast ion? Describe the factor affecting sales
forecast.

or

What do you mean by buying motives? Describe the different buying motives.

Updated Sales Promotion

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Updated Sales Promotion

Uploaded by

Copyright:

Available Formats

Biyani's Think Tank

Concept based notes

You might also like