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DBA Part II
Salesmanship
Remember:
Nothing is our
but Time.
ICMS
College
System for
Boys
Lecturer
: Arshad
Zia Siddiqui
-1-
DBA Part II
MARKETING
: Arshad
Zia Siddiqui
-2-
DBA Part II
to spend. The marketing programs are directed at markets that either accept it or
reject the offer.
MARKETING DEFINED
What does the term marketing mean? Most of the people think of marketing only as
advertising and selling but they are only two functions of marketing, today
marketing must be understood not only in the old sense of satisfying customer
needs. Selling occur only when the product is produced. By contrast marketing
starts long before the company has a product marketing is the homework the
company undertakes to asses needs, intensity and determine weather the a
profitable opportunity exists so we can define marketing as
.marketing is the total system of business activities designed to plan, price,
promote and distribute want satisfying products to target the market in order
to achieve organizational objectives
this definitions have two significant applications
Focus: the entire system of business activities should be customer oriented;
customer wants must be recognized and satisfied.
Duration: marketing should starts with an idea a want satisfying product and
should not end until customer wants are completely satisfied which may be
after the exchange is made.
MARKETING MIX
Marketing mix is the set of controllable, tactical marketing tools that the firm
blends to produce the response to it wants in the target market. The marketing mix
consists of every thing the firm can do to influence the demand for the product the
many possibilities can be collected in to four groups of variables known as four ps
of marketing which are as follows;
Product
Price
Promotion
Physical distribution
PRODUCT
It means the goods and service combination to the company offers to the target
market.
Product planning
Variety
Quality
Lecturer
: Arshad
Zia Siddiqui
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DBA Part II
Design
Features
Brand name
Packaging
Service
PRICE
It is the amount of money consumer have tto pay the seller to obtain a product .
List price
Discounts
allowances
payment periods
credit terms
PROMOTION
It means activities that communicate the merits of the product and to pursuatethe
target audience to buy the products it includes
Advertising
personal selling
Sales promotion
Public relation
Publicity
PHYSICAL DISTRIBUTION
It include activities that make the product available to the target audience
channels
coverage
assortments
location
inventory
transportations
logistics
IMPORTANCE OF MARKETING IN THE SOCIETY
Marketing very important for the society if it holds the societal marketing
concepts, the societal marketing concept hold that the organization should
determine the needs, wants, and interests of the target market. it should than
Lecturer
: Arshad
Zia Siddiqui
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DBA Part II
deliver and superior value to the customer in the that maintain or improves the
total wellbeing of the society .
The societal marketing concepts question weather the pure marketing concept is
adequate in an age of environmental problems, resource shortages, rapid population
growth. Worldwide economic problem and neglected social service. It asks if the
firm that senses, serves, and satisfies individual wants is always doing what is best
for consumer and society in the long run.
Not long after the marketing concept became a widely accepted approach to doing
business, it came under fire, for more than 40 years critics have persistently
charged that marketing ignores social responsibility. That s, although the marketing
concept help an organization to achieve its goals but at the same time encourage
actions that conflict with society best interests.
From one point of view these charges are true. A firm may satisfy its customer,
while also adversely affecting society. To illustrate, a pulp and paper mill might be
supplying its newspaper customer with a quality newspaper but at the same time it
might be polluting air and water near the mill.
A firm social responsibility is not only satisfy its customers but also take care of
the people living in the areas surrounding their firm by applying different recycling
and safe disposal of their waste matters in this way they are applying the societal
concept of marketing.
MARKETING MIX
Marketing mix is the combination of product how it is distributed and promoted and
its price. Together these four factors must satisfy the needs of the target market
and at the same time meet the marketing objectives of the company. Marketing
manager must design the market mix that will effectively meet consumer needs and
accomplish the organizational objectives. Marketing mix includes following four
components
Product
Price
Promotion
Physical distribution
Lecturer
: Arshad
Zia Siddiqui
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DBA Part II
PRODUCT
Strategies are needed for deciding what products to offer, managing existing
products over time, and dropping failed products, strategic decision must also made
regarding:
Branding
Packaging
Labeling
Trade marks
Warranties
Quality
Durability
All these attributes need proper product planning which concerns the extent to
which the company can market the same products in different countries. and also
see the external internal environment of then country in which the company is
operating. There are different concept which include
Product extension: it means same product is being sold in different cpuntries (e.g.)
Pepsi cola.
Product adaptation or modifying a product which is selling successfully in one
market or country to suit the unique needs of the other country (e.g.) whitening
creams etc
Invention means developing a totally new product for a foreign market.
Marketers must study carefully the cultural and economic condition of any market
_foreign or domestic _before planning product for that particular area.
Challenges involved in the product planning
Trademark infringement: in many countries copy write laws are very poorly
enforced as a result local firm manufactures products with similar names and
packaging very similar to the well known brands (e.g.) chen one , chain one etc
Global pirating of computer software, music and videos
Changing trends: Marketing must be aware of the ever changing tastes of the
target market.
PRICING
Determining the price for the product is a complex and interesting task, frequently
involving the trial and error decision making. it is more complex in international
marketing because:
Currency conversion
Difficulty in what must be included in the price (such as post sale services) .
Lack of control over middle man pricing
Lecturer
: Arshad
Zia Siddiqui
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DBA Part II
TYPES OF PRICING
A product price is the major determinant of the market demand of the product as a
result the product price has considerable bearing on companys revenue and net
profit. it is through price the money comes to the company consumer rely heavily
on price as the indicator of the product quality especially when they make purchase
decision with incomplete information so they think higher the price the better is
the quality of product is perceived. In determining the price of the product we
should see following points:
All costs
Desired profit
Competition
Customer income
Taxes
PHYSICAL DISTRIBUTION
The distribution part of the marketing mix if of the neglected child. Many market
planers tend to take existing distribution strategies and channels.
Distribution expenditure and plans must always be coordinated with the other parts
of the marketing mix.
Product ownership has to be transferred somehow from the producer to the
consumer
Goods also must transfer from the production site to the location where they are
needed. Distribution role within the marketing mix is getting the product to its
market; all responsibility rests with the distribution channels.
Lecturer
: Arshad
Zia Siddiqui
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DBA Part II
Lecturer
: Arshad
Zia Siddiqui
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DBA Part II
PROMOTION
PROMOTION
One of the attribute of the free market system is the right to use communication
as the tool of influence. In our socioeconomic system, that freedom is reflected in
the promotional efforts by business to influence the feeling and believes and
behavior of prospective customer, company uses promotional efforts to provide
information for the decision makers buying decision process, to assist in
differentiation its products and to persuade potential buyers.
PROMOTION AND MARKETING
For the marketers perspective promotion serves three essential roles it informs,
persuades and reminds perspective and current customers and other selected
audience about a company and its products. The relative important of these roles
varies according to the circumstances faced by the company. Brand will be failed if
no one knows it. Therefore the producer must inform middlemen as well as the
ultimate consumer or business users about the product, wholesalers must inform
retailers and retailers must inform customers. As the number of the potential
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: Arshad
Zia Siddiqui
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customers grows and the geographic dimensions of a market expand, the problem
and cost of informing the market increase.
Persuasion is more important when there are many competitors to convince the
customer the intense competition among different industries as well as different
firms in the same industry, put tremendous pressure on the promotional program of
the sellers. Remind is used to remind the customer about your product which is
already existing in the market sellers band very successful. sellers bombard the
market place with thousand of messages every day in the hope of attracting new
customers and establishing the market for the new products.
PROMOTIONAL METHODS
Promotion in what ever form it takes is an attempt to influence. There are four
forms of promotional methods: persona; selling, advertising, sales promotion, and
public relations
Each has distinct features that determine the role it can play in a promotion
program.
Personal selling: is the direct presentation of the product to the a
prospective customers by a representative of the organization selling it.
Personal selling takes face to face or over the telephone, or it may be
directed to the sales person or a final customer , across all the organization
more money is spend on personal selling than on any other form of promotion
Advertising is non personal paid for by a clearly identified Spencer
promoting ideas , organization or product, the most familiar outlets for ads
are the broadcast (TV and radio) and print ( newspaper and magazines) media
. However there are many others advertising vehicles, from billboards to Tshirts and, more recently, the internet.
Sales promotion is demand stimulating activity designed to supplement
advertising and facilitate personal selling. It is paid for the sponsor and
frequently involves a temporarily incentive to encourage a sale or purchase.
Many sales promotions are directed at consume. The majority however are
designed to encourage the companys sales force or other members of the
sales force of a distribution channel to sell products more aggressively.
When the promotion is directed towards the member of the distribution
channel it is called trade promotion. included in the sales promotion are
number of activities , such as event sponsorship, frequency program,
contests, trade shows, in store displays, rebates, samples, premium,
discounts and coupons.
Public relations encompass a wide Varity of communication efforts to
contribute to the generally favorable attitudes and opinions toward an
organization and its products. Unlike most advertising and personal selling, it
Lecturer
: Arshad
Zia Siddiqui
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does not include a specific sales message. The target may be customers,
stockholders, a government agency, or a special- interest group. public
relation can take many forms, including newsletters, annual reports, lobbying,
and support of charitable or civic events
THE COMMUNICATION PROCESS AND PROMOTION
Communication is the verbal or non verbal transmission of information between
someone wanting to express an idea and some else expected to get the idea,
because promotion is the form of communication much can be learned about
structuring effective promotion by examining the communication process.
ELEMENTS OF COMMUNICATION
A message
A source of message
A communication channel
A receiver
THE COMMUNICATION PROCESS IN PROMOTION
The information that the sending source is sending must first be encoded in
to a transmittable form, in marketing this means translating an idea
Once the message has been transmitted through any communication channel
the message must be decoded , or given meaning by the receiver the
received message may be what the sender intended or something else that is
less desirable , depending on the recipient frame of reference
If the message has been transmitted successfully, there is some change in
the receivers knowledge, believe or feelings, as a result of this change, the
receiver formulate a response, the response could be non verbal, verbal or
behavioral.
The response serves as a feedback, telling the sender whether the message
was received and hoe it was perceived by the recipient. Through feedback
the sender can learn what a communication has accomplished. Then a new
message can be formulated and the process began again.
All stages of the communication process can be affected by noise- that is
any external factor that interferes with the successful communication.
DETERMINING THE PROMOTIONAL MIX
A promotional mix the marketers combination of advertising, personal selling, sales
promotion, and public relations. An effective promotion is a critical part of all
marketing strategies and involves number of strategies which are as follow:
Lecturer
: Arshad
Zia Siddiqui
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Target Audience
Objectives of promotion effort
Nature of the product
Stage in the product life cycle
Amount of money available for promotion
TARGET AUDIENCE
Decision on the promotion mix is greatly effected by the target audience. the
target may final customer, who would be further defined as existing customers or
new prospects. Some marketers direct much of there efforts at decision makers
rather than the actual purchasers. In some cases the target consists of middleman
in order to gain their support in distributing a product or in the case of the
company about to make a stock offering, the investment community
There are two types of strategies involved in this
PUSH STRATEGY means a channel member directs its promotion primarily at the
middle men that are the next link forward in the distribution channel. In this the
producer pushes the retailers to buy their products in return the retailers push the
customers.
PULL STRATEGY the promotion is directed toward end users usually ultimate
consumers. The intention is to motivate them to ask retailers about the product.
The retailer in return will request the product from the wholesalers, and the whole
sellers in return order it from the producer for the product.
PROMOTION BJECTIVES
A target audience can be in any of the six stages of buying readiness. These stages
are
Awareness: at the awareness stage the sellers task is to let the buyer know
that the brand or the product exists. Here is the objective is to built
familiarity with the product and the brand name.
Knowledge; Knowledge goes beyond awareness to learning about the product
features. In the market with the several well established brands,
enterprise had to find a way to quickly and easily inform consumers how its
service is unique.
Liking: liking refers to how the market feels about the product. Promotion
can be used to move the knowledgeable audience from being indifferent to
the liking brand. A common technique is to associate the item with an
attractive symbol or person. Online sporting goods retailers.
Preference: creating preference involves distinguishing among brands such
that that the market finds your brands of the same product, but the
customer cant make a decision until one brand is preferred over the
Lecturer
: Arshad
Zia Siddiqui
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alternatives. Ads that make direct comparisons with the competition are
intended to create a preference.
Conviction: the promotion objective here is to increase the strength of the
buyers need. Trying a product and experiencing the benefits that comes
from it are very effective it conviction to own it.
Purchase: purchase can be delayed or postponed indefinitely even for
customer who is convicted they should buy a product.
Lecturer
: Arshad
Zia Siddiqui
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FUNDS AVIALABLE
The amount of money available for promotion is often the determinant of the mix.
A business with ample funds can make more effective use of advertising than a firm
with financial resources. Smaller brand or companies with small amount of funds for
promotion can rely on personal selling.
CHAPTER NO 3
PERSONAL SELLING
WHAT IS PERSONAL SELLING?
The personal selling is the personal communication of information to persuade a
prospective customer to buy a produce or service or idea, it is the major
promotional tool used to reach this goal.
The effort of sales people go far beyond simply making transactions, they also
include following
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Zia Siddiqui
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Sales people must have greater flexibility, he must tailor sales presentations
to fit the needs and behavior of the individual customers
He must have the potential of explaining the product benefits, answer
questions of his customers
He must be truthful
He must behave in a reliable manner
Must seek similarity of personality between you and the customer and the
commodity interest and goals
Sales person must see whether the person or his prospects has the potential
to pay for the product or not.
: Arshad
Zia Siddiqui
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implementing point of purchase promotion and also arranging the terms of sale,
follow up the purchase to se that consumer is satisfied, also develop such a kind of
personal relationship that the consumer can trust your product also it is very
important because through this sales person can collect very useful competitive
information.
Sales people can also work with whole sellers and retailers to gain their
support and to help them be more effective in selling the companys product they
serve as a critical link between a company and its consumer.
Sales people also represent consumer to the company, they learn about the needs
of the consumer and work with other in the company to create greater consumer
value.
SCOPE OF PERSONAL SELLING
In the business there are two types of personal selling activities
Inside selling
Outside selling
Inside selling
It involves retail stores. In this group we include the sales person in the
stores and the sales people at the catalog retailers who take telephone orders. Also
included are telephone orders takes at manufactures and wholesalers, most of
whom taking existing customers routine orders over the telephone.
Outside selling
Sales people go to the consumer. They make contact by telephone or in person.
Most outside sales force usually represents producers or wholesaling, middleman,
selling to the business users and not to the house hold consumers. In outside
selling, we also include
1. Producers whose representatives sell directly to the household consumers
(e.g.) insurance companies.
2. Representatives of retail organizations who go to the consumers house to
demonstrate a product, give advice, or provide an estimate such as sales
people for some furniture stores and home heating and air-conditioning
retailers.
3. Representative of non profitable organizations (e.g.) charity funds raisers,
workers for political candidate.
Lecturer
: Arshad
Zia Siddiqui
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CHAPTER NO 4
WHAT MAKES A GOOD SALES PERSON
The term sale representative covers a broader range of positions in our economy.
The position range from to the least to the most creative type of selling
Sales force performs one or more of the following tasks for their companies:
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: Arshad
Zia Siddiqui
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Human nature
Most people operate below capacity in the absence of special incentives such as
financial gain or social recognition.
Personal problems
Sales representatives usually preoccupied with personal problems such as
sickness in the family, marital discord or debt etc.
MOTIVATION MODEL
Motivation
satisfaction
effort
Performance
reward
The above model suggest that higher the sales person motivation the greater is
his or her effort , greater effort will lead to greater performance which will
lead to greater rewards and greater rewards will lead to greater satisfaction
which will again lead to reinforce motivation.
The model implies following
Sales manager must be able to convince sales people that they can sell
more by working harder or being trained to work smarter. But if sales
are largely determined by economic conditions or competitive action this
linkage is undermined.
Sales manager must be able to convince sales people that the rewards
for better performance are worth the extra effort , but if the rewards
are too small or of the wrong kind the linkage is undermined
DISCIPLINED WORK
What ever the incentive package if the sales person arent organized and focused,
and if they dont work hard they are not be able to meet the ever increasing
demand of the customers these days, so following points are very important.
1. SET GOALS
First of all sales representatives has to set goals for their selves, what they
want achieve in the future according to that than they make plans
1. MAKE PLANS
Planning is very important in the sales person job, they make schedule for the
future great sales person are very conscious about laying down detailed, organized
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: Arshad
Zia Siddiqui
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plans than they follow through in a timely disciplined way (e.g.) if they say that they
are going to make a follow up call on a customer in six months, you can sure that
they will be on the door step in six month.
2. WORK HARD
They have to work hard because this job is very demanding and they have to work in
irregular hours travel a lot and most of the times have to work alone and away from
home.
3. SELECTING THE APPROPRIATE TECHNIQUE
A key step in the personal selling is deciding which device will help the organization
reach its promotional goals . some factors are
Nature of the target audience: weather target auidiance re loyal to
the company brand if not higher level of personal selling and
convincing techniques are required
Nature of the product: does the product level its self to sampling,
demonstration or multiple item purchase
Current economic conditions: sales representatives must also see
what the economic conditions of the country are. Premium and
rebates are good in periods of recessions and inflation.
RELATIONSHIP MARKETING
It is the process of creating , maintaining and enhancing strong, value laden
relationship with customers and other stake holders
Most companies are today moving away from transaction marketing with the
emphasis on making a sale. Instead they are practicing relationship marketingwhich emphasizes maintaining profitable long term relationship with customers by
creating a superior customer value and satisfaction.
They are realizing that when operating in a maturity market and facing
stiffer competition it cost a lot more to attract new customers from competitors,
than to keep current customers.
Today customers are and global they prefer suppliers who can sell and
deliver a coordinated set of products and services to many locations.
They favor supplies who can quickly solve their problems that arise in different
areas of countries of world and who can closely work with customers team to
improve products and process.
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: Arshad
Zia Siddiqui
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Unfortunately, some companies are not setup for the developments; they
often sell their products through separate sales force, each working independently
to close sales. Their technical people may not be willing to lend time to educate a
customer their engineer design and manufacture and people may have the attitude
its our job to make good products and the sales person to sell them to customers
however other companies recognizing and keeping good relations with customers
than making good products and directing the sales force to close lots of sales its
requires a careful coordination whole company effort to create value laden
satisfying, relationship with important customers.
Relationship marketing is based on premise that important accounts need
focus and ongoing attention. Studies have shown that the best sales person are
those who are customer problem solver and relationship builders good sales person
working with key customers do more than call when they think a customer might be
ready to place an order
They call and visit frequently works with customers to help solve customer
problems and improve its business, and take an interest in customers as people.
Here are some steps in establishing relationship marketing in the company:
Identify the key customers meriting relationship marketing: The company
can chose the five or ten largest customers and designate them for
relationship marketing. Additional customers can be added who show
exceptional growth.
Assign a skilled relationship manager to each key customer: the sales person
servicing to the customer should receive training in relationship marketing.
Develop a clear job description for relationship managers: It should describe
their reporting relationships, objectives, responsibilities, and evaluation
criteria. The relationship manager is responsible for the client , is the focal
point for all information about the client , and is the mobilizer of company
services for the client. Each relationship manager will have only one or few
relationships to manage.
Appoint an overall manager to supervise the relationship managers: this
person will develop job description, evaluation criteria , and resource support
to increase relationship managers effectiveness.
Each relationship manager must develop long- range and annual relationship
plans. The annual relationship plan will state objectives, strategies, specific
actions and required resources.
Lecturer
: Arshad
Zia Siddiqui
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CHAPTER NO 5
THE PERSONAL SELLING PROCESS
Most companies take a customer- oriented approach to personal selling as
consisting of several that the sales person must master. These steps focus on
the goal of getting new customers and obtaining orders from them, however
most sales person mush of their account on existing and building long term
customer relationships.
STEPS IN THE SELLING PROCESS
Most selling program view the selling process as consists of several steps
that the sales person must master. These steps focus on the goals of getting the
new customers and obtain orders from them. Personal selling involves following
steps
PROSPECTING
The first step in the selling process is to identify prospects. Although the company
will try to supply leads, sales representatives try to make their own leads can be
developed in the following ways:
Asking current customer about the names of the prospects
Cultivating other referral sources, such as suppliers, dealers, non competing
sales persons, bankers and trade association executives.
Joining organizations to which sales person belongs.
Engaging in the speaking and writing activities.
Examining data sources (newspapers and directories) in search of names.
Using the telephone and mail to find leads.
Dropping in unannounced on various offices.
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: Arshad
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QUALIFICATION
Sales representatives must needs skills in screening out poor leads . prospects can
be qualified by examining the following:
Financial ability
Location
Volume of business
Special requirement
Likelihood of continuous business.
PREAPPROACH
Before calling upon the customer it is very important that the sales person should
learn as mush as possible about the organization (what it needs, who is involved in
the buying) and its buyers (their characteristics and buying style), this step is
known as pre-approach. The sales person can consult standard industry and online
sources, acquaintances, and other to learn about the company. The sales person
should set call objectives, which may be qualifying the prospects, to gather
information and to make an immediate sale.
Another step is to decide on the best approach, which might be a personal visit , a
phone call, or a letter. The best timing should be considered carefully because many
prospects are busiest at certain time. Finally the sales person should give a thought
to an overall strategy for the account.
APPROACH
The sales person should know hoe to greed the customer tom get the relation up to
the start. This involves the sales person appearance, the opening lines, and the
follow up remarks and the opening lines should be positive for example, Mr.Ali I am
Salem Ahmed from the PC hotel Peshawar and appreciate your willingness to see
me. I will do my best to make this visit profitable and worthwhile for you and your
company this might follow by key questions and active listening to understand the
buyer and his her needs.
PRESENTATION AND DEMONSTRATION
During the presentation step of the selling process sales person tells the product
story to the buyer, showing how the product will make or save money. the sales
person describe the product features and concentrate on the consumers need and
benefits. Using need-satisfaction approach, the sales person starts with the search
for consumer needs by getting the consumer to do most of the talking.
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: Arshad
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This approach calls for good listening and problem solving skills. With the proper
pre approach information the sales person can design a sales presentation that will
attract the prospects attention. The sales person will try to hold the prospects
interest while building a desire for the product and when the time is right , attempt
to stimulate action by closing the sale . this approach is called AIDA ( an acronym
formed by the first letters of Attention, Interest, Desire And Action), is used by
many organization.
After attracting the interest of the prospects it is very important to hold and
stimulate desire for the product with sales presentation. The sales person must
always know how the product will benefit the prospect.
Companies have developed three styles of presentation.
Canned approach is the oldest approach in memorization of sales talk,
covering the man point. It is based on stimulus response thinking: that is the
buyer is passive and can be moved to purchase by the us of right stimulus
words, pictures, terms and actions .canned approach is mostly used in door to
door and telephone selling.
Formulated approach is also based on stimulus/ response thinking, but
identifies early the buyers needs and buying styles and than use a
formulated approach to this type of buyer the sales person initially draws
the buyer into the discussion in a way that reveals the buyers needs and
attitudes.. then the sales person moves into formulated presentation that
shows how the product will satisfy the buyer needs. This is not canned
approach but follow a general plan.
Need satisfaction approach starts with a search for customers real needs
by encouraging the customer to do most of the talking. This approach calls
for good listening and problem solving skills. The sales person than the sales
person takes on the role knowledgeable business consultant hoping to help
the customer save money or make more money.
Sales presentation can be improved by demonstration aids such as booklets, flip
charts, slides, movies and audio and video cassettes during the demonstration,, the
sales person can draw five influence strategies.
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OVERCOMING OBJECTIONS
Customer almost always pose objections, during the presentation or when asked for
an order. This resistance can be psychological or logical.
Psychological Resistance includes
Resistance to interference
Preference for established supply source or brands
Reluctant to giving up something
Dislike of making decision
Unpleasant association about the other person
Neurotic attitude toward money
Logical resistance includes
Objection to price
Delivery schedule
Certain product or company characteristics.\
To handle these objections the sales representatives maintains a positive approach
by:
Asking the buyer to clarify the objections
Questions the buyer in a way that the buyer has to answer his or her own
objection
Denies the validity of the objections
Turn the objections in to reason for buying
CLOSING
Now the sales person attempts to close the sale. Some sales people do not get to
this stage or do not do it well. They lack confidence or feel uncomfortable about
asking for an order or do not recognize the closing signal from the buyer, including
physical actions, statements, comment, and questions.
Sales person can use one of the following techniques
They can ask for an order
Offer to help the secretary write an order
Ask whether the buyer wants A or B to make minor choices such as the color
or sizes etc.
Indicate what the buyer will lose if the order is not placed now
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: Arshad
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The sales person might offer the buyer specific inducements to close, such
as a special price, an extra amount no extra charge or a gift
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: Arshad
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CONSUMER DEMOGRAPHICS
Age there are different people of different age groups in the consumer
market.
Family life cycle stages, the various forms families can take over timeare
major determinant of behavior. different stages are:
1. Batchelor stage: young, single people
2. young married couple with no children
3. full nest I: young married couple with children
4. single parent: young or middle age people with dependent children
5. divorced and alone: divorced without dependent children
6. middle-aged married: middle aged married couple with no children
7. full nest II: middle-aged married couple with dependent children
8. empty nest: older married couple with no children livig with them
9. Older single: single people still working or retired.
Education and Income: they both play a very important role in determining
the behavior of the consumers, because expenditure patterns differs due to
different incomes people have and also students at different stage of their
studies have different buying patterns.
Race and Ethnicity also affects the buying patterns of the customers.
CONSUMER BUYING DECISION PROCESS
To deal with the marketing environment and make purchases, consumer engages in a
decision process. One way to look at the process is to view as problem solving. When
faced with the problem solved through the purchase. The consumers goes through
a series f logical stages to arrive at the decision, so the stages of the consumer
buying decision process are as follows:
Need recognition the consumer is moved to action by a need. every one has
unsatisfied needs and wants that create discomfort. Some needs can be
satisfied by acquiring and consuming goods and services. Thus the process of
deciding what to buy begins when a need that can be satisfied through
consumption becomes strong enough to motivate a person
Identification of alternatives once the need has been recognized, the
consumer must next identify the alternatives capable of satisfying the
needs. Typically alternative products are identified first , and then
alternative brands
Evaluation of alternatives this means that how the consumer process the
information to arrive at brand choices. Unfortunately, consumer does not
use a simple and single evaluation process in all buying situation. Instead,
several evaluation processes are at work.
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There are two sources of information the commercial environment and social
environment. The commercial environment consists of all marketing organizations
and individuals that attempt to communicate with the consumers. It includes
manufacturers, retailers, advertisers, and sales people whenever any f them engage
in efforts to inform or persuade. Advertising is the most familiar type of
commercial information almost billion of rupees are spent on advertising every year.
Commercial sources also include retail stores clerks, business websites, and
telephone solicitors as well as consumer consumers physical involvement with
products such as trial product use and sampling.
The social environment consists of family, friends, and acquaintances who directly
or indirectly provides information about the product, to appreciate the marketing
significance of these social sources, consider how often your conversation with your
friends and family members deal with purchase you are considering to have made.
The most common social information is the word of mouth communication two or
more people discussing a product. Chat room on the Internet has become popular
places for consumer with similar interests to gather and exchange information.
Other social sources include observing other using products and exposure to the
products in the homes of the others. Recognizing the power of the word-of-mouth
communication marketing try to stimulate it.
When all different types of information are considered, it became apparent that
there is enormous competition for the consumer attention. Consequently the
consumer mind has to marvelously efficient to sort and process this barrage of
information.
To better understand the consumer behavior =, we will began by examining the
social and group forces that influence the psychological make up and also play role
in specific buying decisions
SOCIAL INFLUENCES
Social forces determine the ways we think believe, and act. And is individual buying
decisions-including the needs we experience the alternatives we consider, and the
social forces that surround us affect the ways in which we evaluate them. Our
description begins with culture, the force with the most indirect impact, and moves
to the force with the most direct impact.
CULTURE
Culture is the set of symbols and artifice created by society and handed down from
generation to generation as determinant and regulator of the human behavior. The
symbol may be intangible (attitudes, believes, values, language) or tangible (tools,
housing, products, works of art). Although culture does not include instinctive
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biological acts, the wa the people perform instinctive acts such as eating is
culturally influenced . thus every body gets hungry but when and what people eat
vary among cultures.
SUBCULTURES
Subculture are groups in a culture that exhibit characteristic behavior patterns
sufficient to distinguish them from other groups with in the same culture the
behavior pattern that distinguish subcultures are based on factors such as race,
nationality, religion and urban- rural identification
SOCIAL CLASS
Social class is the ranking with in the society determined by the members of the
society. Social class exists in virtually all societies, the people buying behavior is
often strongly influenced by the class to which they belong or to which they are
inspire.
There are five social classes present n our society
The upper class
The upper- middle class
The lower- middle class
The upper lower class
The lower-lower class
REFERENCE GROUP
Each group in a society develops its own standards of behavior that then serve as a
guide guides, or frames of reference, for the member. Family and a circle of
friends are such groups. Members share values and are expected too confirm to the
groups behavior patterns. But a person does not have to be the member of the
group to which he is influenced. There are groups we aspire to join ( a campus honor
society or club) and a group we admire even though membership may be impossible
(a professional athletic team). All of these are potencies reference group-groups o
people who influence a persons attitudes, values, and behavior.
Studies have shown that personal advice in face-to-face groups is much more
effective as a behavior determinant than advertising.
Advertisers are relying on reference groups influence when they use celebrity
spokespersons. Professional athletes, musician, models, and actors can be influence
people who would like to be associated with them in some way.
Reference group influence in the marketing is not limited to the well-known
personalities, any group whose qualities a person admires can serves as a reference.
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FUNCTION OF SALESMANSHIP
Staffing and operating a sales force
Evaluating a sales person performance
DIFFERENCE BETWEEN ADVERTISING AND SALESMANSHIP
Advertising is salesmanship. Its principles are the principles of salesmanship.
Successes and failures in both lines are due to like causes. Thus every advertising
question should be answered by the salesman's standards.
The only purpose of advertising is to make sales. It is profitable or unprofitable
according to its actual sales.
It is not for general effect. It is not to keep your name before the people. It is not
primarily to aid your other salesmen. Treat it as a salesman. Force it to justify
itself. Compare it with other salesmen. Figure its cost and result. Accept no
excuses which good salesmen do not make. Then you will not go far wrong.
The difference is only in degree. Advertising may appeal to thousands while the
salesman talks to one. It involves a corresponding cost. Some people spend $10 per
word on an average advertisement. Therefore every ad should be a super-salesman.
A salesman's mistake may cost little. An advertisers mistake may cost a thousand
times that much. Be more cautious, more exacting, therefore. A mediocre salesman
may affect a small part of your trade. Mediocre advertising affects all of your
trade.
Many think of advertising as ad-writing. One must be able to express himself
briefly, clearly and convincingly, just as a salesman must. But fine writing is a
distinct disadvantage. So is unique literary style. They take attention from the
subject. They reveal the hook.
.
Successful salesmen are rarely good speech makers. They have few oratorical
graces. They are plain and sincere men who know their customers and know their
lines. So it is in ad writing. Many of the ablest men in advertising are graduate
salesmen. The best we know have been house-to-house canvassers. They may know
little of grammar, nothing of rhetoric, but they know how to use words that
convince.
There is one simple way to answer many advertising questions. Ask yourself," Would
it help a salesman sell the goods?" "Would it help me sell them if I met a buyer in
person?" A fair answer to those questions avoids countless mistakes. But when one
tries to show off, or does things merely to please himself, he is little likely to
strike a chord which leads people to spend money. Some argue for slogans, some like
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clever conceits. Would you use them in personal salesmanship? Can you imagine a
customer whom such things would impress? If not, don't rely on them for selling in
print.
Some say "Be very brief. People will read for little." Would you say that to a
salesman? With a prospect standing before him, would you confine him to any
certain number of words? That would be an unthinkable handicap. So in advertising.
The only readers we get are people whom our subject interests. No one reads ads
for amusements, long or short. Consider them as prospects standing before you,
seeking for information. Give them enough to get action.
Some advocate large type and big headlines. Yet they do not admire salesmen who
talk in loud voices. People read all they care to read in 8-point type. Our magazines
and newspapers are printed in that type. Folks are accustomed to it. Anything
louder is like loud conversation. It gains no attention worthwhile. It may not be
offensive, but it is useless and wasteful. It multiplies the cost of your story. And to
many it seems loud and blatant.
Others look for something queer and unusual. They want ads distinctive in style or
illustration. Would you want that in a salesman? Do not men who act and dress in
normal ways make a far better impression? Some insist on dressy ads. That is all
right to a certain degree, but is quite important. Some poorly-dressed men, prove
to be excellent salesmen. Over dress in either is a fault.
So with countless questions. Measure them by salesmen's standards, not by
amusement standards. Ads are not written to entertain. When they do, those
entertainment seekers are little likely to be the people whom you want. That is one
of the greatest advertising faults. Ad writers abandon their parts. They forget
they are salesmen and try to be performers. Instead of sales, they seek applause.
When you plan or prepare an advertisement, keep before you a typical buyer. Your
subject, your headline has gained his or her attention. Then in everything be guided
by what you would do if you met the buyer face-to-face. If you are a normal man
and a good salesman you will then do your level best.
Don't think of people in the mass. That gives you a blurred view. Think of a typical
individual, man or woman, who is likely to want what you sell. Don't try to be
amusing. Money spending is a serious matter. Don't boast, for all people resent it.
Don't try to show off. Does just what you think a good salesman should do with a
half-sold person before him?
Some advertising men go out in person and sell to people before they plan to write
an ad. One of the ablest of them has spent weeks on one article, selling from house
to house. In this way they learn the reactions from different forms of argument
and approach. They learn what possible buyers want and the factors which don't
appeal. It is quite customary to interview hundreds of possible customers. Others
send out questionnaires to learn the attitude of the buyers. In some way all must
learn how to strike responsive chords. Guesswork is very expensive.
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The maker of an advertised article knows the manufacturing side and probably the
dealers side. But this very knowledge often leads him astray in respect to
customers. His interests are not in their interests. The advertising man studies the
consumer. He tries to place himself in the position of the buyer. His success largely
depends on doing that to `the exclusion of everything else.
This book will contain no more important chapter than this one on salesmanship. The
reason for most of the non-successes in advertising is trying to sell people what
they do not want. But next to that comes lack of true salesmanship.
Ads are planned and written with some utterly wrong conception. They are written
to please the seller. The interest of the buyer are forgotten. One can never sell
goods profitably, in person or in print, when that attitude exists.
NEGOTIATION
Negotiation means when two parties need to reach agreement on the price and
other terms of sale salesperson need to win the order without making deep
concessions that will hurt profitability.
NEGOCIATION DEFINED
Marketing is concerned with exchange activities and the manner in witch the terms
of purchase is established. In reutilized exchange, terms are established by
administration. In negotiated exchange, price and other terms are set via
bargaining behavior. Growing number of markets are coming under negotiated long
term binding, (e.g.)
Joint venture
Franchise
Subcontracts
Verbal integration
Negotiation has following features
At least two or more parties must be involved
Parties have conflict of interest with one or more issues
The parties temporarily joined together in a special kind of voluntarily
relationship.
Activity in the concerns the division or exchange of one or more specific
resource and/or the resolution of one or more intangible issues among the
parties.
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BARGANING TACTICS
Following are some of the tactics used in the negotiation for bargaining
1. If the
other party is more powerful, identify your alternative if
settlement is not reached it sets standards against which can be offered it
protects you from being pressurized
2. When the opposite party insists on his or her position and attack your
proposal . better tactic is to deflect the attack from the pers0on and
direct it against the problem
3. Invent options that can satisfy both the parties
4. Invite the opposite partys criticism and advice (if you were in my position
what will you do)
5. When the other party uses a threat or take it-or-leave-it tactic or seats
the other party on the other side of the table with the sun in his eyes. A
negotiator raise the issue and question the tactics and desirability and
negotiator over it.
6. The negotiator should recognize his best alternative to a negotiated
agreement (BATANA) and terminate the negotiation.
MANAGING SALES FORCE
NATURE AND TYPES OF SALES PERSON
The sales job is quiet different from the stereotype of the past. The image of the
high pressure, fast friendship is largely outdated as in the nation of price cutting
order chaser.
There are following types of person seller
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Company. Training time varies in the complexity of the selling task and the type of
person recruited into the sales organization.
The training has several goals;
Sales representative require to know the company
He needs to know the products of the company
Sales reps needs to know the customers and competitors.
Sales reps need to know how to make effective sales presentation.
Sales reps need to understand field procedure and responsibilities.
COMPENSATING SALES PEOPLE
To attract sales people, a company must have an appealing compensation plan these
plans vary greatly both by industry and by companies within the same industry. The
level of the compensation must be close to the going rate for the type of the sales
job and needed skills. To pay less than the going rate would attract too few quality
sales people; to pay more would be unnecessary.
METHOD OF COMPENSATION
Financial rewards are by far most widely tools for motivating sales people, it is very
important to design and administer in effective sales compensation , financial
rewards may be direct payments (salaries, wages) or indirect monetary
compensation (paid vacation, pension, or insurance plan)
Establishing a compensation system cause for decisions concerning the level of
compensation as well as level of compensation.
Three widely used methods of sales force compensation are;
Straight salary a straight salary is affixed payments for a period of time
during which sales person is working it is typically used while compensating
new sales person or missionary sales person, opening new territory, selling a
technical product that require lengthy period of negotiation it provides a
security and stability of earning for sales reps. This plan gives management
control over reps efforts and the reps are likely to spend time on n0onselling
activities that caters to customers best interest. The drawback of this
method is that it does not offers any incentives for employees.
Straight commission a commission is the payments tied to specific unit of
accomplishment. Thus a rep may be paid 5% of every sale. a commission
method tends to have just opposite merits and limitations of straight
method
It is used when;
1. a strong incentive is needed to generate sales
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programs to upgrade the performance of the sale forces efforts. And, of course,
performance should be the basis for compensation decision and other rewards.
Performance evaluation can also help sales people identify opportunities for
improving their efforts. Employees with poor sales record know they are doing
something wrong. However, they may not know the problem if they lack objective
standards by which to measure their performance.
To improve the performance of the sales person it is very important for the sales
manager to know the actual performance of the sales rep, some of the sources of
information are ;
Sales reports monthly weekly and daily work plans and longer term territory
marketing plans helps an executive to evaluate performance of the sales
person
Call reports it is another source of information it shows which person or
prospect to call on at which time.
Expense reports these reports helps to understand the activities of the
sales person s. these expenses are partly or wholly repaid to the sales
person.
Internet it is now most widely used tool for gathering information.
TYPES OF EVALUATION
Formal evaluation it produces several benefits it forces management to develop and
communicate clear standards for judging performance and together well balance
information about each sales person.
Formal evaluation gives sales people constructive feed back that helps them to
improve future performance finally sales people are motivated to perform well
because they will have to sit down with
sales manages and explain their
performance.
In formal evaluation managers compares a sales persons current performance with
the 0ast performance such as a comparison should directly indicate the persons
progress.
EVALUATION ON QUANTITATIVE BASES
Sales performance should be evaluated in terms of inputs (effort) and output
(result) to gather inputs such as sales volume or gross margin provide a measure of
selling effectiveness.
In quantitative evaluation we measure following;
Call rate: no of calls per day or a week
No of formal proposals presented
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