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Unit number
Unit Title Lecture Number
:2
: Sales Strategies and Sales Promotion :1
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Lecture Outline
LECTURE 1 Introduction
Sales Display
Sales Promotion
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INTRODUCTION
The sales organization is the initiator as well as the implementer of dealer support operations. Dealer-sales organization relationship often becomes the key to successful working operations within the organization.
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Soft Sell Concern for customer Questions for discussion Listening Providing buying opportunities
Presenting benefits Acknowledging needs
Integrated sales strategies Integrated sales strategies integration is required between sales and distribution functions Client-centered selling strategy This focuses the entire selling process and efforts on the clients needs, problems and successes.
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Sales Forecasting
Sales Forecasting is an estimate of sales during a specified future period which is tied to a proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces.
The various methods of sales forecasting are: Survey method: Based on the opinion of buyers and consumers Expert opinion: Opinions of executives and consultants are used to forecast future sales. Market studies method Market experiments are conducted on changing consumer behaviour,
Sales Forecasting
Statistical methods They are considered to be superior techniques of sales forecasting because of higher reliability.
Graphical method
Time series method Regression analysis
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Sales Budget
A sales budget is a financial plan depicting how resources should best be allocated to achieve the forecasted sales.
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THANK YOU
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Unit number
Unit Title Lecture Number
:2
: Sales Strategies and Sales Promotion :2
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Sales Quotas
A sales quota refers to an expected routine assignment to sales units, such as territory, districts and branches, etc. Sales quotas are also assigned to individual salespeople over a particular time period and are used to plan, control and evaluate the selling activities of a company. Types of sales quotas Sales volume quotas Sales volume quotas include sales in rupees or product unit objectives for a specific period of time. Profit quotas Profit quotas are particularly useful in multi product companies where
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Sales Quotas
Expense quotas Expense quotas are related to selling costs within reasonable limits. Some companies set quotas for expenses linked to different levels of sales attained by their sales force Activity quotas
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Sales Territory
A sales territory comprises of a group of customers or a geographical area assigned to a sales unit. The territory may or may not have geographic boundaries. A company can develop and use sales territories for various reasons. Some of the reasons are: Obtain entire coverage of the market
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Sales Display
arranging systematically saleable goods so as to attract the attention of the customer Through a sales display, the manufacturer shows the goods or services to the customer.
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Sales Promotion
Sales promotion serves three essential roles: it informs, persuades and reminds prospective customers about a company and its products Sales promotions are short term incentives provided by the company to boost sales. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. Sales promotion devices can include premiums, coupons, contests temporary price reduction, free goods, letter to traders, literature,
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moving products
Check the fluctuations in sales Attract new customers Launch new product(s) and
increase trial
Encourage repeat purchase Clearance inventories of excessive
Motivate dealers
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Sales Promotion
Need and importance of sales promotion Usage of sales promotion programs is to generate additional sales for the product To counter the competitive moves; to generate sales during off seasons; to motivate people to use more of the same product To generate trade and sales force support for a new product line or an
extension
To motivate retail and other members in the value network To have additional inventory and to push the product in the market.
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Sales Promotion
Tools of sales promotion Prize schemes: A prize scheme is designed for both the public and the dealers. Trade fairs and exhibitions: They play a substantial role in selling goods of different varieties to different people. The main objectives: Meeting potential customers Making direct sales Discovering new applications for existing products Introducing new products. Free samples: To introduce a new product and as a sales tool to attract the attention of prospects. Correspondence: It can communicate very effectively with prospects as well as potential customers and established for it is better equipped to write letters.
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Sales Promotion
Catalogues: It is from the catalogue files that one can get information required about different products of a particular manufacturer. The following purposes can be served by catalogues. To get orders To make the customers aware about the specifications To provide detailed information To solicit product sales. Advertising novelties: Small, interesting, or personally useful items, etc. can be used for sales promotion. An advertising novelty should meet the following requirements: It should not be a high cost item. The item should be eye-catching. It should be useful.
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Sales Promotion
Entertainment of customers: Entertainment is essential when a standardised product is sold in bulk lots. Sales contests: Main aim of sales contests is to motivate the sales personnel, increase sales and bring more profit to the company. Price-off: This is simply a reduction in the price of the product to increase sales and is very often used when introducing a new product.
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Sales Promotion
Refunds
Consist of straight cash, coupon values or a product offered to the consumer in return for a proof of purchase
Point-of-sales materials
Point-of-sales (POS) materials are elements of sales promotion displayed at the point of sales. They display persuades, reminds and gives details to the consumers about a specific brand
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Activity
Activity 1
If you have to sell a new brand of washing powder, try to analyze whether the type of specialization of the sales price is by product or by markets or by both.
Activity 2
If you had to sell a new model of car of an existing brand which type of promotion would you adopt? Why?
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THANK YOU
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