ADVERTISING AND SALES PROMOTION
Unit – I
Advertising: Meaning –importance –objectives-media-forms of media-press Newspaper trade
journal-Magazines-outdoor advertising –poster-banners- neon signs, publicity literature booklets,
folders, house organs-direct mail advertising-cinema and theatre programme-radio and television
advertising-exhibition-trade fair-transportation advertising.
Introduction
The term ‘advertising’ is derived from the original Latin word ‘advertere’ which means to turn’
the attention. Every piece of advertising turns the attention of the readers or the listeners or the
viewers or the onlookers towards a product or a service or an idea. Therefore, it can be called as
advertising.
Defininitions
According to American Marketing Association
“Any paid form of non-personal presentation of ideas, goods or services by an identified
sponsor.”
According to New Encyclopaedia Britannica:
“ Advertising is a form of communication intended to promote the sale of the product or service
to influence public opinion, to gain political support or to advance a particular cause.”
Objectives of Advertising
 To announce a new product or service.
 To extend the market for new segments. E.g shampoo for normal hair, Baby shampoo,
Shampoo for colored hair.
 Modification or product. E.g. clinic shampoo becomes clinic plus, sugar free
chyavanprash and normal chyavanprash, Horlicks for women, Diet coke etc.
 To announce a price change. Introucing discounts sales through advertising, promotes
sales.
 To announce a new pack through photographs television ads etc. attracts more buyers and
promotes sales.
 To announce special offers. E.g introductory offers, special offers, free gifts, premium
offers, slack season offers.
 Advertisements are also used to announce the location of the stockiest
 Some advertisements are used to educate and provide information to the people .Eg.
Packaged tours, tourist places etc.
 Moderate advertising is useful to maintain the sales and prevent the products extinction
from the market.
 Advertising helps in challenging the rival’s product.
 Regular advertising helps in maintaining the preference and demand for a particular
brand it encourage the repurchase of the same brand. Eg. Bread, toffees, chocolates,
blades, tea, coffee etc.
 Effective advertising boosts the morale of the sales force and supports and supplements
their selling efforts.
Importance of Advertising
Advertising plays a very important role in today’s age of competition. Advertising is one thing
which has become a necessity for everybody in today’s day to day life, be it the producer, the
traders, or the customer. Advertising is an important part. Lets have a look on how and where is
advertising important:
1. Advertising is important for the customers
Just imagine television or a newspaper or a radio channel without an advertisement! No,
no one can any day imagine this. Advertising plays a very important role in customers
life. Customers are the people who buy the product only after they are made aware of the
products available in the market. If the product is not advertised, no customer will come
to know what products are available and will not buy the product even if the product was
for their benefit. One more thing is that advertising helps people find the best products for
themselves, their kids, and their family. When they come to know about the range of
products, they are able to compare the products and buy so that they get what they desire
after spending their valuable money. Thus, advertising is important for the customers.
2. Advertising is important for the seller and companies producing the products
Yes, advertising plays very important role for the producers and the sellers of the
products, because
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Advertising helps increasing sales
Advertising helps producers or the companies to know their competitors and plan
accordingly to meet up the level of competition.
If any company wants to introduce or launch a new product in the market,
advertising will make a ground for the product. Advertising helps making people
aware of the new product so that the consumers come and try the product.
Advertising helps creating goodwill for the company and gains customer loyalty
after reaching a mature age.
The demand for the product keeps on coming with the help of advertising and
demand and supply become a never ending process.
3. Advertising is important for the society
Advertising helps educating people. There are some social issues also which advertising
deals with like child labour, liquor consumption, girl child killing, smoking, family
planning education, etc. thus, advertising plays a very important role in society.
Media Forms
The different types of advertising media
Media are the agencies, means, or instruments used to convey advertising messages to the public.
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Print Media
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Broadcast Media
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Online Advertising
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Specialty Media
1. Print Media
Written advertising that may be included in everything from newspaper and magazines to direct
mail, signs and billboards. They are among the oldest and most effective types of advertising.
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Local or National Daily or weekly
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Advantages
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Large readership and a high level of reader involvement
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Advertisers can target certain people
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The cost is relatively low
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Ads are timely
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Disadvantages
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Short life
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Black and white (although many papers are changing to color format)
Magazine Advertising
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Classified as
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Local, regional, or national
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Weeklies, monthlies, and quarterlies
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Consumer or business (trade)
Advantages
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Can target audiences
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Longer life span
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Print quality is good
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People keep magazines longer than newspapers
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Offer a variety of presentation formats
Disadvantages
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Less mass appeal within a geographical area
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More expensive
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Deadlines make them less timely
Direct-Mail Advertising
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Sent by businesses directly through the mail
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Sent to a home or business
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Electronic mail
Includes newsletters, catalogs, coupons, samplers, price lists, circulars, invitations,
postage-paid reply cards, and letters.
Mailing lists are assembled from current customer records or they may be purchased.
Advantages
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Can be highly selective
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Controlled timing
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Can be used to actually make the sale
Disadvantages
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Low response level
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People think of it as “junk mail”
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Cost is high
Directory Advertising
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An alphabetical listing of households and businesses.
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The best known are telephone directories.
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Advantages
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Relatively inexpensive
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Can be used with all demographic groups
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Are found in most of the households
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Usually kept for at least a year
Disadvantage
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Only printed once a year
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Some service business’ are used infrequently; therefore, directory advertising
must be combined with another type.
Outdoor Advertising
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Standardized signs are available to local, regional, or national advertisers.
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Purchased from outdoor advertising companies in standard sizes
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Are placed in highly traveled roads, and freeways where there is high visibility.
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Posters – pre-printed sheets put up like wallpaper on outdoor billboards.
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Painted bulletins – painted billboards that are changed about every six months to a year.
Spectaculars – use lights or moving parts and are in high traffic areas.
A billboard gets right to the point
Which type of outdoor advertising is this?
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Advantages
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Highly visible and relatively inexpensive
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24-hour a day message and located to reach specific target markets
Disadvantages
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Becoming more restricted – increasingly regulated
Limited viewing time
Transit Advertising
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Uses public transportation facilities
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Commuter trains, taxis and buses, station posters near or in subways and in
railroad, bus, and airline terminals
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Advantages
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Reaches a wide captive audience
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Economical
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Defined market
Disadvantages
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Not available in smaller towns and cities
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Subject to defacement
Broadcast Media
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Includes radio and television
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The average person will spend nearly ten years watching TV and almost six years
listening to the radio over a 70 year lifetime.
Television Advertising
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Communicates with sound, action, and color.
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Prime time is between 8 and 11 p.m.
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Is appealing to large companies with widespread distribution
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Advantages
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Can be directed to an audience with a specific interest
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Message can be adapted to take advantages of holidays and special events
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Disadvantages
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Highest production cost of any media type
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High dollar cost for the time used
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Actual audience size is not assured – people leave the room or channel surf – effect of
TIVO
Radio
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Radio reaches 90 % of people ,which makes it very effective
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Best times are “drive times” – morning and late afternoon/early evening
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Advantages
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Can select an audience, such as teens by choosing the right station
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More flexible than print – messages can be easily changed
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It’s a mobile medium – can be taken just about anywhere
Disadvantages
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Short life span – when broadcast, it is over
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Lack of visual involvement
Online Advertising
• Placing advertising messages on the Internet
• Banner ads – created with rich media technology that uses the strategy of
popping up and interrupting the readers search
Specialty Media
• Relatively inexpensive, useful items with an advertisers name printed on
them
• Given away with no obligation attached
Calendars, magnets, pens, pencils, memo pads, and key chains
Other Advertising Media
• Businesses are constantly creating innovative means of transmitting their
messages
Sports arena billboards, ads in movie theaters, hot air balloons and blimps,
skywriting, etc
Unit – II
Advertising agencies-advertising budget-advertising appeals - advertising organisation-social
effects of advertising-advertising copy - objectives-essentials - types-elements of copy writing:
Headlines, body copy - illustration-catch phrases and slogans-identification marks.
Introduction to Advertising Agencies
Advertising agency is the core of advertising profession and industry. It is a unique type of
business organization specializing in the creative line of advertising providing counsel relative to
the advertising and allied operations of its clients and actually preparing, buying space and time
for placing a large part of the advertising of its clients. It also undertakes performing services
such as conducting market research, preparing sales-promotional materials, counseling on public
relations, preparing and distributing public relations materials and messages. It is that
organsiation which provides specialized knowledge, skills and experience needed to produce
effective advertising campaigns.
Definition of Advertising Agencies
According to American Advertising Agencies Association (A.A.A.A.) an “advertising agency is:
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An independent business organization,
Composed of creative and business people,
Who develop, prepare and place advertising on advertising media,
For sellers seeking to find customers for their goods and services.”
Advertising Budget
Advertising Budget is the amount of money which can be or has to be spent on advertising of the
product to promote it, reach the target consumers and make the sales chart go on the upper side
and give reasonable profits to the company.
Before finalizing the advertising budget of an organization or a company, one has to take a look
on the favorable and unfavorable market conditions which will have an impact on the advertising
budget. The market conditions to watch out for are as follows:
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Frequency of the advertisement
Competition and Clutter
Market Share of the Product
Product Life Cycle Stage
1. Frequency of the Advertisement
This means the number of times advertise has been shown with the description of the
product or service, in the granted time slots. So here, if any company needs more
advertising frequency for its product, then the company will have to increase its
advertising budget.
2. Competition and Clutter
The companies may have many competitors for its product. And also there are plenty of
advertisements shown which is called clutter. The company has to then increase their
advertising budget.
3. Market Share
To get a good market share in comparison to their competitors, the company should have
a better product in terms of quality, uniqueness, demand and catchy advertisements with
resultant response of the customers. All this is possible if the advertisement budget is
high.
4. Product Life Cycle Stage
If the company is a newcomer or if the product is on its introduction stage, then the
company has to keep the budget high to make place in the market with the existing
players and to have frequent advertisements. As the time goes on and product becomes
older, the advertising budget can come down as then the product doesn’t need frequent
advertising.
When the market conditions are studied thoroughly, then the company has to set up its
advertising budget accordingly. For setting advertising budget, there are four methods:
They are as follows.
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Percentage Of Sales: In this method, the budget is decided on the basis of the
sales of the product from previous year records or from the predicted future sales.
This is a pure prediction based method and best applicable to the companies
which have fixed annual sales. But if in case there is a requirement for more
promotional activities then this method has a disadvantage because there will be
decrease in advertisements as the budget is fixed.
Affordability: this method is generally used by the small companies. Only the
companies which have funds and can afford advertising opt for this method. The
companies can go for advertising at any time in whole year whenever they have
money to spend. The amount spent also varies from time to time as per the
advertisements takes place.
Best guess: This method is basically for newcomers who have just entered the
market and they have no knowledge or say they are not aware of how the market
is and how much to spend on advertising. Thus, this method is applied by the
higher level executives of the company as they are the only experienced people.
Thus, doing the homework and then moving forward, i.e. searching for best market conditions
and setting the best advertising budget will have a great impact on improvement and
development of the company.
BUDGETING METHODS
There are several allocation methods used in developing a budget. The most common are listed
below:
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Percentage of Sales method
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Objective and Task method
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Competitive Parity method
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Market Share method
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Unit Sales method
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All Available Funds method
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Affordable method
It is important to notice that most of these methods are often combined in any number of ways,
depending on the situation. Because of this, these methods should not be seen as rigid but as
building blocks that can be combined, modified, or discarded as necessary. Remember, a business
must be flexible—ready to change course, goals, and philosophy when the market and the
consumer demand such a change.
Percentage of Sales Method
Due to its simplicity, the percentage of sales method is the most commonly used by small
businesses. When using this method an advertiser takes a percentage of either past or anticipated
sales and allocates that percentage of the overall budget to advertising. But critics of this method
charge that using past sales for figuring the advertising budget is too conservative, that it can stunt
growth. However, it might be safer for a small business to use this method if the ownership feels
that future returns cannot be safely anticipated. On the other hand, an established business, with
well-established profit trends, will tend to use anticipated sales when figuring advertising
expenditures. This method can be especially effective if the business compares its sales with those
of the competition (if available) when figuring its budget.
Objective and Task Method
Because of the importance of objectives in business, the task and objective method is considered
by many to make the most sense and is therefore used by most large businesses. The benefit of this
method is that it allows the advertiser to correlate advertising expenditures with overall marketing
objectives. This correlation is important because it keeps spending focused on primary business
goals.
With this method, a business needs to first establish concrete marketing objectives, often
articulated in the "selling proposal," and then develop complementary advertising objectives
articulated in the "positioning statement." After these objectives have been established, the
advertiser determines how much it will cost to meet them. Of course, fiscal realities need to be
figured into this methodology as well. Some objectives (expansion of area market share by 15
percent within a year, for instance) may only be reachable through advertising expenditures
beyond the capacity of a small business. In such cases, small business owners must scale down
their objectives so that they reflect the financial situation under which they are operating.
Competitive Parity Method
While keeping one's own objectives in mind, it is often useful for a business to compare its
advertising spending with that of its competitors. The theory here is that if a business is aware of
how much its competitors are spending to advertise their products and services, the business may
wish to budget a similar amount on its own advertising by way of staying competitive. Doing as
one's competitor does is not, of course, always the wisest course. And matching another's
advertising budget dollar for dollar does not necessarily buy one the same marketing outcome.
Much depends on how that money is spent. However, gauging one's advertising budget on other
participants' in the same market is a reasonable starting point.
Market Share Method
Similar to competitive parity, the market share method bases its budgeting strategy on external
market trends. With this method a business equates its market share with its advertising
expenditures. Critics of this method contend that companies that use market share numbers to
arrive at an advertising budget are ultimately predicating their advertising on an arbitrary guideline
that does not adequately reflect future goals.
Unit Sales Method
This method takes the cost of advertising an individual item and multiplies it by the number of
units the business wishes to sell. This method is only effective, of course, when the cost of
advertising a single unit can be reasonably determined.
All Available Funds Method
This aggressive method involves the allocation of all available profits to advertising purposes. This
can be risky for a business of any size it means that no money is being used to help the business
grow in other ways (purchasing new technologies, expanding the work force, etc.). Yet this
aggressive approach is sometimes useful when a start-up business is trying to increase consumer
awareness of its products or services. However, a business using this approach needs to make sure
that its advertising strategy is an effective one and that funds which could help the business expand
are not being wasted.
Affordable Method
With this method, advertisers base their budgets on what they can afford. Of course, arriving at a
conclusion about what a small business can afford in the realm of advertising is often a difficult
task, one that needs to incorporate overall objectives and goals, competition, presence in the
market, unit sales, sales trends, operating costs, and other factors.
Advertising Appeals
Appeal is the central idea of an advertisement. It is the device by which a consumer response is
solicited in the advertisement. An appeal is the earnest request or a plea to the prospects. In that
sense, every advertisement is an appeal to buy and use the product or the service supported by
reasons to buy and use. Though every advertiser aims at making appeals, all will not succeed in
getting response as much depends on selection and execution of advertising appeals. ( In the final
analysis, what one buys, what he reads, or listens to what he believes and what he remembers –
all are governed by his needs that he is bent upon satisfying –may be physiological (hunger,
thirst), safety (security and health), love (affection, belongingness, identification), esteem (selfrespect, prestige, social approval) and self-actualisation (self-fulfilment, self-expression) as
ranked by Mr. A.H. Maslow, a renowned psychologist.
Advertising Agency
Advertising agencies come in all shapes and sizes. Some are small boutique shops that have just
a few people. Others are giants that employ thousands of people in offices all around the world.
But, however large or small the agency, there is a basic structure that most advertising agencies
stick to. In the smaller agencies, some people will perform more than one role. One person my
actually be the entire department. But the fundamentals are the same, and it's because this model
was born out of necessity and it works.
There are SIX major departments in any advertising agency. These can be split into other subdepartments, or given various creative names, but the skeleton is the same.
These departments are:
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Account Service
Account Planning
Creative
Finance & Accounts
Media Buying
Production
Larger agencies may also separate out the following departments:
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Human Resources & Facilities
Research
Web development
Traffic
Let's take a look at the breakdown of those six major departments.
Account Services
The account service department comprises account executives, account managers and account
directors, and is responsible for liaising with the agency's many clients. This department is the
link between the many departments within the agency, and the clients who pay the bills. In the
past they were referred to as "the suits," and there have been many battles between the account
services department and the creative department. But as most creatives know, a good account
services team is essential to a good advertising campaign. A solid creative brief is one of the
main duties of account services.
Account Planning
This department combines research with strategic thinking. Often a mix of researchers and
account managers, the account planning department provides consumer insights, strategic
direction, research, focus groups and assists helps keep advertising campaigns on target and on
brand. Chris Cowpe described account planning as "…the discipline that brings the consumer
into the process of developing advertising. To be truly effective, advertising must be both
distinctive and relevant, and planning helps on both counts."
Creative
This is the engine of any advertising agency. It's the lifeblood of the business, because the
creative department is responsible for the product. And an ad agency is only as good as the ads
the creative department puts out. The roles within the creative department are many and varied,
and usually include:
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Copywriters
Art Directors
Designers
Production Artists
Web Designers
Associate Creative Directors
Creative Director(s)
In many agencies, copywriters and art directors are paired up, working as teams. They will also
bring in the talents of other designers and production artists as and when the job requires it.
Sometimes, traffic is handled by a position within the creative department, although that is
usually part of the production department. Everyone within creative services reports to the
Creative Director. It is his or her role to steer the creative product, making sure it is on brand, on
brief and on time.
Finance & Accounts
Money. At the end of the day, that's what ad agencies want. And it's what their clients want, too.
At the center of all the money coming into, and going out of, the agency is the finance and
accounts department. This department is responsible for handling payment of salaries, benefits,
vendor costs, travel, day-to-day business costs and everything else you'd expect from doing
business. It's been said that approximately 70% of an ad agency's income pays salary and
benefits to employees. However, this figure varies depending on the size and success of the
agency in question.
Media Buying
It is the function of the media buying department to procure the advertising time and/or space
required for a successful advertising campaign. This includes TV and radio time, outdoor
(billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and
takeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close
collaboration with the creative department who came up with the initial ideas, as well as the
client and the kind of exposure they want.This department is usually steered by a media director.
Production
Ideas are just ideas until they're made real. This is the job of the production department. During
the creative process, the production department will be consulted to talk about the feasibility of
executing certain ideas. Once the ad is sold to the client, the creative and account teams will
collaborate with production to get the campaign produced on budget. This can be anything from
getting original photography or illustration produced, working with printers, hiring typographers
and TV directors, and a myriad of other disciplines needed to get an ad campaign published.
Production also works closely with the media department, who will supply the specs and
deadlines for the jobs.
In small to mid-sized agencies, traffic is also a part of the production department. It is the job of
traffic to get each and every job through the various stages of account management, creative
development, media buying and production in a set timeframe. Traffic will also ensure that work
flows through the agency smoothly, preventing jams that may overwhelm creative teams and
lead to very long hours, missed deadlines and problematic client relationships. Traffic keeps the
agency's heart beating.
Social effects of Advertising
Advertising as a part of firm’s marketing effort operates in the society. It has to therefore follow
the social norms.
Key areas of debate regarding society and advertising are:
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Deception
Manipulation
Taste
Deception: it refers not only to the information content in advertising but may also arise from
misplace emphasis in presentations.
According to federal trade commission of the USA“Advertising as a whole must not create a misleading impression although every statement,
separately considered, may be literally truthful”
Manipulation :- The freedom of choice of consumers is restricted by the power of advertising
since it can manipulate buyers into making a decision against their will or interest.
Manipulation is done through emotional appeals. These companies can utilize advanced and very
scientific advertising techniques and thus make an impression on consumers.
Taste:- Sometimes ads are offensive, tasteless, irritating, boring and so on.
a) Sources of distaste
b) Sexual Appeals
c) Shock advertising
Some examples of the Advertisements with social aspects: Grow-more-trees advertisements
 Drink milk
 Eat healthy food, eat eggs
 Mother’s milk is best for the baby
 Say no to drugs every time
Get your child vaccinations in times.
Advertising Copy
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The word ‘copy’ has specific meaning in the world of advertising.
Copy is the soul of advertisement.
An advertising copy is all the written or spoken matter in an advertisement expressed in
word or sentences and figures designed to convey the desired message to the target
consumers.
In a print media an advertisement copy is made-up of head-line, sub-headlines, both of
the copy, illustration, logo-type, slogan and brand name.
Strictly speaking, written content of the advertisement is called as copy and visual part is
called as illustration.
An advertisement copy is the product of the collective efforts of copy writers and artists
and the layoutmen.
Copy writer and artist or succeeds the art work and layout.
Here, the illustration is taken is an element of advertisement copy.
Objectives
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Advertising objectives must be set to guide the creation of advertisements.
Without such set objectives, advertisement becomes ‘hit or miss’ propositions.
It also becomes difficult to measure the results of such advertisement.
Advertisement objectives are indispensible for the well-planned and executed advertising
campaigns.
The advertisement copy is drafted with certain objectives to be achieved.
According to Professor James E. Littlefield and Professor C.A. Kirkpatrick, these objectives
can be of tow types namely ‘direct action’ and ‘indirect action.’
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‘Direct action’ objective of a copy is to cause immediate direct action on the part of the
consumer.
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That is as soon as the advertisement is read by the prospect, he responds to it and decides
to buy the advertised product or service.
Majority of the retail advertisements and those of direct advertising aim at direct action.
Such advertisement copies include coupons for soliciting enquires.
In such copies, the USPs are very strongly presented to generated quick and instant
buying action on the part of prospects.
‘Indirect Action’ objective of a copy is to create indirect action on the part of prospects.
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Such a copy hopes to establish favourable attitude towards the company and such
favourable response may be delayed.
It imprints brand or the company name on the mental-frame of prospects that they are
to buy the product of the advertiser than the competitors.
Majority of institutional and product advertising aim at indirect action.
That is, the prospect knows about the product and the company and will buy it in
course of time.
Essential of Good Copy
1. The copy should not contain a vague generalizations or simple opinions.
2. Ideas expressed in the copy must be linked with the ideas commonly found with the traders.
The continuity of the copy theme with problems and opinions of the traders render a lively effect
to the copy. The copy should have reference to topics of current interest. Copy writer must
understand the educations, living conditions and general social development of the prospects to
whom he is appealing.
3. The copy should have a tone which is befitting the atmosphere of the product. For instance in
copies for sports material, the language should be sporting, for literature an high class profession
the language of the copy should be dignified, for beauty and aesthetic taste, the language should
be poetic or romantic etc.
4. The copy should be be concise yet convincing. Elaborate phrases and clumsy constructions
reduce the value of the copy from the view point of effect while increasing the cost of buying the
space. Therefore, the words used should be minimum and ambiguity should be avoided. Besides
a lengthy text tends to bore the readers.
5. The copy should be easily understandable. Its implication must be instantly clear so that
persons with ordinary caliber can go through it. It should also be remembered that they copy is
read in a short time.
6. The copy must create a pleasant 'atmosphere' what is needed to bear in mind is that unpleasant
background, however, true create unpleasant impression for the product. Sometimes, the copy
presents a negative appeal, e.g. in the case of soaps, the statements, 'Free from animal fat', will
give an indirect hint that animal fats can be used in making soaps. This is not desirable as it
might give rise to a suspicious attitude towards all the products in that time. It is more advisable
to emphasize good points than to magnify the effects of not using the products. In short, the copy
should make a positive approach.
7. Finally the copy must suggest action by rousing the desire or curiosity to use the product. The
copy should have a progressive effect so as to impell action on part of the readers. An advertising
copy usually ends with the address of source where the article is available on sale. Without this
feature the earlier merits of the copy will prove useless.
Classification of advertisement copy:1. Descriptive Copy – This type of copy describes the pertinent and relevant characteristics
features of the product. It is very simple and of non- technical nature. It does not have any
specialty which can attract the attention of the target consumers or may compel them to read it. It
is very much similar to a press account or news item simply giving relevant information to the
public without any stylish touch.
2. Scientific Copy – Such types of copies are technical in nature and generally used by drugs and
pharmaceutical firms elaborating the propositions of properties and constituents of the product. It
provides full information about the product and the producer. This type of copy is usually meant
for professional or for those who are really interested in such types of information.
3. Institutional Copy – Institutional advertisement copy aims at selling the name of the
advertiser or the institution that is producing or selling the products or services. The main
objective of such type of advertisements is to create, maintain or increase the goodwill of the
product or of brand or of the department or of the selling house as a whole, Institutional copy
invites the target consumers to the selling outlet. Such a copy seeks to build goodwill through
publicizing the policies, customer services, Conveniences and general features of superiority of
the store over the rivals.
4. Topical Copy – Herein and attempts is made to appeal to the general public by linking the
theme of the copy with some current event but it should not look absurd. It commands a good
deal of interest because of that sensational event which lives in the minds of the public.
5. Reason why Copy – This type of advertisement copy offers the readers reasons why they
should buy the advertised goods. It narrates the positive points of difference from other brands of
the same product category in an endeavor to convince the reader from product‟s qualitative
aspect. It directs its appeal to the intellect or judgment rather than to emotions or senses. It
substantiates the superiority of the merchandise with the tests performance. Records testimonials,
guarantees or construction data.
6. Human Interest Copy – It makes its appeal to the emotions and the senses rather than to the
intellect and judgment. Sympathy fear, bonus, curosity and other emotional appeals like appeals
to the senses of sight hearing touch taste, and smell are used in such type of copy. Human
interest copy presents the product in relation to people instead of confirming to facts about
product. As emotions are many and always new it may be made more exciting an artful than
reason why copy. It affords a refreshing change. Human interest copy can take various forms:
Humorous Copy – It exploits the sense of humor of the people. It turns the reader laughter.
All examples and statements in such copy are fully to make the reader smile.

Fear Copy – It appeals to the sense of fear and arouses the interest of people to save their
lives, properties and other belongings. Such copy of advertisement should be drawn carefully
so that it may not carry an unpleasant association of readers minds with the advertiser’s
product of business.

Story Copy – In such a copy a story is narrated me a very interesting manner to create
manner to create an impression in the minds of the people about the product. Its ability to
create interest depends upon dramatic impact it produces. Experience of customers can also
be narrated in the story.

Predicament Copy – It is often used to advantage when it shows an article of merchandise
in a case that provides a dramatic explanation of its advantages. Predicament copy usually
overlaps the other three kinds of human interest copies
7. Colloquial copy or Conversational Copy – The colloquial copy presents the message in the
way of conversation. It uses an informal language and conversation takes place in terms of “I”
and “You” with personal reference to reader and the advertiser. In such copy the style is one of a
personal talk or one of an eyewitness account.
8. Personality Copy – This copy attempts to encase the opinion of personality – real or
imaginary – about the product. Usually the personality is real. The photograph of the personality
(a person specialized to concerned field) is given with the text of the copy with a view to
convince the readers through the moral influence of his name. Invariably, such copy shows a
certificate or a testimonial of such influential person.
9. Prestige Copy – This pattern is usually for in institutional advertising which aims at creating
an atmosphere about the product or the firm and may not directly advise the product for sale.
Such a copy is occasionally used and is very much similar to the personality copy in impression
which also strives to enhance the prestige of the advertising firm indirectly by visualizing the
name of the eminent personality.
10. Educational Copy – The copy is designed to educate the general public about the attributes
of the product. Usually introductory appeal is made in this style when the product is introduced
in the market for the first time; it is the duty of every producer or advertiser to tell everything
relevant about the product to the public in such a manner that it may get a warm welcome among
customers. Such an advertisement copy depicts the specialties to the product category. The
advertiser may insist only one or two attributes of the product which is more sensational such as
introduction of a low priced item without the loss of quality or a product developed from a new
technology indigenous or imported etc.
11. Suggestive Copy – A suggestive copy tries to suggest or convey the message to the readers
directly or indirectly to pursue them to purchase the product. It is useful where the reader is
confused about the quality of a product brand and is not in a position to take a decision about the
purchase of the product.
12. Expository Copy – Just opposite of suggestive copy it expository copy. It does not conceal
anything about the product but exposes. The message is quite clear and it needs no inference, no
taxing on mind, no thinking, Even a cursory glance rakes it quite easy to remembers or to pick –
up.
13. Questioning copy – Questioning copy as the term suggests. in Corporate a series of
questions expected to be answered by them readers. The advertiser puts no narration, statement
or reason of its own in order to pursue the readers to buy the product. The question arouses the
curiosity in the minds of the readers and makes them think of it.
Elements of Copy Writing
An advertisement copy is the ideas and message content which are reached to the viewers. The
ad copy refers to all reading matter of an advertisement including the headline, subheads, texts or
body. An advertiser or a copy writer should sacrifice a lot of time in making a copy. The
elements or components of ad copy are:
Head line: The headline is the word in the attractive position in the advertisement .That is the
words that will read first and situated to get more attraction. Usually the letters of the headline
are larger than other parts. The different types of headline are label, Informative
headline, provocative headline. Label is the headline which identifies the name of the product.
Informative headline gives the in formations about a product. Usually it explains the attributes of
the product. Provocative headline is the headline used in making a curiosity among the viewers.
It insists the viewers to read.
Subheads and Body copy: This is the sub head captions that simply expand the headline
thoughts. This headline takes the readers to read further. Subhead lines are known as the
transitional bridge between the headline and copy text. Body copy is telling about the whole
story of the product or service that a marketer wants to communicate. Body copy covers the
features, benefits and utility of the product.
Slogans and Illustrations: Many slogans begin as successful headlines. Repeated usage
becomes a popular one in among viewers. Slogan has two purposes; one is to provide continuity
another is to memorize and repeat the statement among consumers. Illustrations part consists of
photos, drawings, charts etc. the main objective behind this is to gain quick attention and
comprehension of the product idea.
Identification and Closing idea: This is the content in which the seal, signature or logo of the
firm is provided. This is to identify the sponsor or advertiser. Closing idea component
emphasizes on an action. The action is the insisting the buyers to buy the product. The closing
idea summarizes the messages, changes in the product, attitudes, all the information etc.
UNIT- III
Advertising layout- functions-design of layout-typography printing process-lithography-printing
plates and reproduction paper, and cloth- size of advertising-repeat advertising-advertising
campaign- steps in campaign planning.
Advertising Layout
Advertising layout definition is the design or final arrangement of something that is laid out and
waiting to be reproduced especially by printing e.g advertisement, magazine book etc. It lays out
several graphic elements e.g color, body, headlines and establishes the overall appearance and
importance and are usually prepared to explore different arrangements before the final layout.
Function of Advertising Layout
An advertisement layout is a blueprint. The main functions of advertisement layout are:

Assembling Different Parts – The main function of layout is to assemble and arrange the
different parts or elements of an advertisement illustration, headline sub headlines, slogans,
body text and the identification mark etc. And boarder and other graphic materials – into a
unified presentation of the sales message. In all the layouts present these elements in the
same size, form, shape, position and proportion as desired by the advertiser in the final ad,
proof , Thus layout gives both creative personals (copywriter and artists) and the advertiser
who pays for it a good idea of how the finished ad will finally appear.

Opportunity of Modification – The layout offers an opportunity to the creative teams,
agency management and the advertiser to suggest modification before its final approval and
actual construction and production begins.

Specification for Costs – The layout provides specification for estimating costs and it is a
guide for engravers typographers and other craft workers to follow in producing the
advertisement
Design of Layout
It is not necessary that all elements of advertisement copy must form part of the copy. They
appear in today‟s ads with varying degree of frequency. The components of the
advertisement copy must be decorated or positioned on the basis of certain basic principles
regardless of the number of elements in an add. The following five principles of good
composition are important to anyone who creates or evaluates the advertisement:
1. Balance – A layout may be called balanced if equal weight or forces are equidistant from
a reference point or a light weight is placed at a greater distance from the reference point than
a heavy weight. Balance is the law of nature. The reference point or fulcrum is the optical
center of the advertisement. The artists with a given area or space, are to place all the
elements with in this space. Optical center of fulcrum of the ad is often a point approximately
two – thirds of the distance forms the bottom. It is the reference of the advertisement layout.
2. Proportion- Proportion is closely related to balance since it refers to the division of
space among layout elements for a pleasing optical effect. Good proportion in an
advertisement requires a desired emphasis on each element in terms of size and position. If
the major appeal in an advertisement is product’s price. The price should be displayed in
proportionate space position.
3. Contrast and Emphasis – Contrast means variety. It gives life to the whole composition
and adds emphasis to selected important elements. An advertiser always looks to
advertisements from completion point of view and desires the policy of the most important
elements to attract the attention of the people. An advertisement with good contrast may
attract the attention of customers Contrast maybe visible in a number of ways. It may be
witnessed through sizes, shapes and colors. Different colors sizes and shapes of elements in
an advertisement add contrast. The varying directions, of design elements (Vertical trees,
horizontal pavements arched rainbows) add contrast; too there must be sales communication
purpose behind every layout decision made.
4. Eye Movement – Eye movement is the design principle which helps move the eyes of
the readers from element to element in the order given in the hierarchy of effects model for
effective communication of the message in advertising. An effective ad uses movement to
lead its reading audience from initial message awareness through product knowledge and
brand preference, to ultimate action (intent to purchase). Direction and sequence are two
terms for the same element and artists may perform it in many ways. Mechanical eye
direction may be created by devices such as pointing fingers lines arrows or even a bouncing
ball that moves from unit to unit. Planned eye movement should follow the established
reading patterns too, such as the tendency to start to top left corner of a page and read
through to the lower right corner. The eyes also moves naturally from large items to small
from dark to light and from colors to not – colors.
5. Unity or Harmony – Unity or harmony is another important design principle. Although
each element should be considered as a separate unit in striving for balance, proportion,
contrast and eye movement. The complete layout or design should appear as a unified
composition. Common methods of securing unity in layouts are (i) use of consistent
typographical design. (ii) repetition of the same shapes and motifs, (iii) the overlapping of
elements (iv) use of a boarder to hold elements together and (v) avoidance of too much which
space between various element.
Although unity and contrast seem conflicting but they function quite smoothly together if they
operate at cross purposes – if the artists strive for balance here too as well as in the advertisement
layout overall. Unity contributes orderliness to elements – a state of coherence. And if they are
properly placed. Contrasting Size shapes colors and directions can flow together beautifully.
Typography
Typography is the art and technique of arranging type in order to make the language it forms
most appealing to transparent learning and recognition. The arrangement of type involves the
selection oftypefaces, point size, line length, leading (line spacing), adjusting the spaces between
groups of letters (tracking) and adjusting the space between pairs of letters . Type design is a
closely related craft, which some consider distinct and others a part of typography; most
typographers do not design typefaces, and some type designers do not consider themselves
typographers. In modern times, typography has been put into motion—in film, television and
online broadcasts—to add emotion to mass communication.
Typography is performed by typesetters, compositors, typographers, graphic designers, art
directors, manga artists, comic book artists, graffiti artists, clerical workers, and anyone else who
arranges type for a product. Until the Digital Age, typography was a specialized occupation.
Digitization opened up typography to new generations of visual designers and lay users, and
David Jury, Head of Graphic Design at Colchester Institute in England, states that "typography is
now something everybody does.
Lithography
Offset lithography is one of the most common ways of creating printed matter. A few of its
common applications include: newspapers, magazines, brochures, stationery, and books.
Compared to other printing methods, offset printing is best suited for economically producing
large volumes of high quality prints in a manner that requires little maintenance. Many modern
offset presses use computer to plate systems as opposed to the older computer to film work
flows, which further increases their quality.
Advantages of offset printing compared to other printing methods include:





Consistent high image quality. Offset printing produces sharp and clean images and type
more easily than, for example, letterpress printing; this is because the rubber blanket
conforms to the texture of the printing surface.
Quick and easy production of printing plates.
Longer printing plate life than on direct litho presses because there is no direct contact
between the plate and the printing surface. Properly developed plates used with optimized
inks and fountain solution may achieve run lengths of more than a million impressions.
Cost. Offset printing is the cheapest method for producing high quality prints in commercial
printing quantities.
A further advantage of offset printing is the possibility of adjusting the amount of ink on the
fountain roller with screw keys. Most commonly, a metal blade controls the amount of ink
transferred from the ink trough to the fountain roller. By adjusting the screws, the gap
between the blade and the fountain roller is altered, leading to the amount of ink applied to
the roller to be increased or decreased in certain areas. Consequently the density of the
colour in the respective area of the image is modified. On older machines the screws are
adjusted manually, but on modern machines the screw keys are operated electronically by the
printer controlling the machine, enabling a much more precise result.
Disadvantages of offset printing compared to other printing methods include:

Slightly inferior image quality compared to rotogravure or photogravure printing.

Propensity for anodized aluminum printing plates to become sensitive (due to chemical
oxidation) and print in non-image/background areas when developed plates are not cared for
properly.
Time and cost associated with producing plates and printing press setup. As a result, very
small quantity printing jobs may now use digital offset machines.

Printing Plates
Printing processes such as offset lithography use printing plates to transfer an image to paper or
other substrates. The plates may be made of metal, plastic, rubber, paper, and other materials.
The image is put on the printing plates using photomechanical, photochemical, or laser
engraving processes. The image may be positive or negative.
In general, metal plates are more expensive but last longer and have greater accuracy. Paper
plates are usually more suitable for shorter runs without close or touching colors that
require trapping. Plan your design so that paper plates can be used effectively if you want to save
money.
Typically, printing plates are attached to the plate cylinder in the press. Ink is applied to the
plate's image area and transferred directly to the paper or to an intermediary cylinder (blanket)
and then to the paper. In screen printing, the screen is the equivalent of the printing plate. It can
be created manually or photochemically and is usually a porous fabric or stainless steel mesh
stretched over a frame.
The number of printing plates needed for a job where printing is done on both sides of the sheet
of paper is determined not only by the number of colors of ink but also by how the sheets are
imposed and fed into the printing press. Sheetwise printing typically requires more plates
than work-and-turn orwork-and-tumble.
Reproduction of Colour in Printing Process
Production is what happens between the approval of the big idea and an advertising appearance
time in its proper medium. Production of print advertisements embraces the separate technical
skills of typography, reproduction, and printing. Producing advertisement for the internet
involves all the skills of website creation as well as knowledge of typography, graphic design,
and the latest multimedia software.
In general terms, printing technology colour reproduction is the conversion of a scene or object
so that it remains as faithful as possible to the original in order to present it in a printed product
via an information transfer chain. In many cases a photograph (bromide or transparency/positive
film) is used as the intermediate carrier. The photograph plays its part in the overall reproduction
process, as do possible image manipulations, the screen process, materials, transfer
characteristics, and many other parameters. What constitutes an “ideal colour reproduction” and
by what criteria can quality in reproduction technology be measured?
The quality characteristics of modern reproduction technology are dependent firstly and
decisively on the reproduction intention, i.e., one the customer’s expectations. For example, in
the production of advertisements in newspapers and periodicals, the general rule applies that a
printed advertisement should conform as closely as possible to the artwork submitted to the
publisher by the advertising agency. The term faithful reproduction can be used here.
Paper Size of Advertising
Printing paper comes in several sizes, styles, colours, thicknesses, and caoatings. Weight
generally refers to its thickness. That thickness often affects how an ad will look when printed
upon it. It is generally thought that the thicker the paper, the better an ad printed upon it will
look. Heavier paper usually costs more and the publication must figure this into its printing and
distribution costs.
Many experts suggest that the heavier and brighter the paper stock, the better colour will look on
it. It is to be remembered that ads, also simply called single colour or black ads, work well on
just about any kind of paper, Some people believe recycled paper is slightly rougher, but it is to
be noted that modern-day recycled stocked look very good.
Cloth Size of Advertising
Flags and fabric banners are high visual impact advertising that grabs attention with both colour
and motion. A variety of print methods and materials are available. Large 20ft flags used at
stadiums; medium-size banners directing the eye of passersby in retail environments or small
flags for tabletops or hand waving. The particular fabric needed is predicated on the print and
how the flag or banner will be used.
Repeat Advertising
Repeat advertising is one of the key phenomena in advertising as the most of consumers have a
chance to be exposed more than once. Most marketers understand concepts of reach and
frequency very well. Significant amount of time (and money) are spent in maximizing reach and
optimizing frequency to achieve brand goals – awareness, consideration, trial, sales, advocacy,
etc. The concept of frequency emerged when the world was disconnected and the media was
analogue. The basic assumption behind ‘frequency’ was based on a simple belief- repeat
advertising (exposures) leads to better comprehension and therefore awareness or consideration
or trial or sales.
Advertising Campaign
An advertising campaign can be defined as a series of advertisements having the same theme. It
is simple way of defining it. To use very sophisticated words, an ad campaign is the process of
planning the marketing strategy on the basis of which advertising strategies and campaign
objective can be derived.
Definition
Mr. S Watson Dunn defines an ad campaign as one which consists of an analysis of the
marketing communication situations in order to make sound strategic decisions that can be
carried out by designing a series of ads and commercials and placing them in the various and
media. Thus, an ad campaign involves an analysis of the marketing frame-work and planning the
advertisement. Ad campaigns are the outcome of a sequence of strategic decisions. The final ads
that are placed in different media are the tactic outcome of the overall strategy.
Example
Take the case of 1980’s when the prime minister of India – late Indira Gandhi, Coca Cola was
disbanded, Whose theme was “Things go better with Coca Cola”. The Indian company that
replaced CocaCola was Thumsup used the slogan “ Happy Days are Here again” and new ad
campaign was built around this theme. The theme and the slogan did not appeal to the teenagers
and it was changed again “ Thums up makes it Great, “ Taste the Thunder” and “ Taste” the
Tofanee Thunder’. Again in 1990, CocaCola and Pepsi Cola were introduced using the slogans
“Eat cricket sleep cricket – but drink Coca Cola” is the order of the day. The idea or theme
behind the soft-drink is the same bat it is presented according to the changing moods and needs
of the market place.
Steps in Campaign Planning
Here are eight steps you can follow to keep your advertising campaign on track and
successful:
1. Market research: Before you even start thinking about where you might want to place an
ad or even what it could look like, it’s important to do at least some basic research. Even if
you aren’t in a position to bring in an expensive research firm, you can ask your current
customers questions about why they come back to you, as well as taking a close look at
your target demographic’s needs and interests.
2. Budgeting: Your business probably has a set advertising budget for the year — but how
do you divvy it up between your various advertising projects? For each project you’re
planning, you need to be clear on just how much money you’re willing to spend. You’ll
almost certainly change exactly how you divide it between costs like copy writing and
design, but you can treat the overall amount as set in stone. Write it down and put it in
your project folder.
3. Setting goals: The aims you have in mind for a particular advertising project need to be
written down ahead of time. While it’s good to be ambitious, it’s also important to decide
what constitutes a successful advertising campaign for your business. Sales can be the
simplest metric: if you’re advertising a particular product, how many units will you need
to sell to pay for that campaign?
4. Advertising venue: The website, tv station, newspaper, radio station, magazine or other
advertising venue you place your ad with is a crucial decision. You’ll need to look at not
only the cost of your preferred venues but also whether they reach your target
demographic. Ad buys can make up a significant portion of your budget. Deciding on
where you will place your ads first tells you how much money you’ll have left over for
actually creating your ad.
5. Choosing creatives: Unless you’re planning to write, shoot and design every part of your
ad, you’ll probaably need to bring in some help. Finding the right freelancers for each
aspect requires checking through portfolios and rates — if you can find a business or
freelancer who can handle all aspects of creating your ad, even if that means
subcontracting, it can save you a lot of time. You’ll also want to make sure that you find
any talent you’ll need for your ad (voice actors for radio, models for photography and so
on).
6. Design and wording: While you may not have a lot of actual writing and designing to do
for your ad, during the creation process you will need to review and sign off on different
stages of the project. When starting with a new designer or other creative, make sure that
you both know any expectations for timelines and progress checks.
7. Placing the ad: Once you have a finished ad in hand, it’s time to actually place it with
your preferred advertising venue. You may have a few contracts to sign and a check to
hand over. You’ll also want to make sure you actually see your ad once it’s run — from a
newspaper, for instance, you’ll want to see the tear sheets of pages containing your ad.
8. Evaluation: Depending on your ad, how you evaluate it can vary. If it included a coupon,
for instance, you can simply count how many customers brought in the coupon. For other
ads, you may be simply comparing sales before, during and after your advertising
campaign. Spend as much time on analyzing how your advertising campaign worked as
you can. That information can point you to more effective uses of advertising in the future.
While following such a set process may seem like it would stifle the creativity necessary to put
together a new ad, following these steps can actually make it easier. You can minimize confusion
and make sure that everyone is meeting the necessary deadlines — and you can ensure that
you’ll be able to measure your ad’s actual cost and responses during each step.
UNIT- IV
Sales force Management-Importance-sales force decision-sales force size-recruitment &
selection- training-methods- motivating salesman Controlling - compensation & incentivesfixing sales territories-quota - Evaluation.
Sales Force Management Definition
Sales management can involve any of the following activities: (1) Formulation of sales strategy
through development of account management policies, sales force compensation policies, sales
revenue forecasts, and sales plan, (2) implementation of sales strategy through selecting, training,
motivating, and supporting the sales force, setting sales revenue targets, and (3) sales force
management through development and implementation of sales performance, monitoring, and
evaluation methods, and analysis of associated behavioral patterns and costs.
Importance of Sales Force Management
Sales management is one of the key components that every business which relies on sales must
practice. Sales management is the training and management of a sales staff, and the tracking and
reporting of the company's sales. It is important to a business because if the principles of sales
management are practiced correctly, it can increase your company’s sales.
Goal Setting
To achieve sales goals, your company needs to set sales numbers or goals for the staff. One way for a
company to achieve and maintain growth is to increase its sales numbers. Sales managers can set
sales goals that will promote growth and are attainable by the sales staff. Many sales managers use
cash bonuses or other incentives to motivate staff to achieve the goals. Sales goals for staff can also
be set to match the strengths of each staff member.
Tracking
Sales management enables management to track the overall sales of the company as well as the
individual sales of each employee. Using sales tracking, management is able to tell if the company is
on track to meet its goals or if individual members of the sales team are not producing enough sales.
By keeping the sales force constantly up to date on the status of their sales, you can help them to
adjust their sales techniques and productivity to achieve the company's sales goals.
Reporting
Using sales management, a company can produce sales reports that can be used to track the
performance of its sales force over different periods. For example, you can use sales reports to
compare the sales of the company on different years over the same period. The sales reports can
determine the direction your company must take based on the results. For example, if the sales
reports determine that your company is experiencing substantial growth year after year, it may
indicate that expansion is a possible direction for the company.
Sales System
As a company grows, it can become more difficult to track and manage the sales process without a
system in place. Sales management provides companies with a system to train and manage
employees while streamlining the sales process from the individual sales employee to the customer.
This is beneficial because if there is a problem at any point of the sales process that may affect the
company's bottom line, it can be quickly identified and corrected.
Sales Force Management Decisions
There are several decisions that are necessary for managing the sales force efficiently. Sales
force management are according to the following are:
1. Sizing the Sales force Size: Under this activity management need to determine how many
number of sales man are required for meeting sales volume and profit objectives. If a company
has too few sales persons, opportunity for sales and profits go unexploited, and if it has too
many, excessive expenditure for personal selling reduce net profit, therefore determination of
sales force size is n important consideration.
2. Staffing the Sales forces: Staffing mean filling positions in the organization structure. It
involves identifying work-force requirement, inventorying the people available, and recruiting,
selection, and placing people. In sales force management, staffing is an important consideration
as it directly influences the sales of the organization.
3. Training the Sales force: Sales personnel training is designed to instill the skills needed to
sustain the sales process from initial inquiry to eventual sale and then follow-up. Different
techniques may be required, depending on whether salespeople will be selling to personal or
business customers or both.
4. Motivating the Sales forces: Sales have always been one of the major concerns of any type
of business. Generally, sales are directly proportional to the success of any business, i.e., if the
sales go up the business does well and if the sales arm is week, so is the business. So after hiring
and training people for the job the most important thing which needs to be dealt with is motivate
the sales people in order to generate maximum sales.
5. Compensating the Sales force: There is no single sales compensation plan that is suitable for
all organizations. Every organization has to design its own compensation plan that will enable it
to fulfill sales objectives and to attract and retain sales personnel. A truly successful sales
compensation plan must help achieve overall organizational goals and not just sales goals.
6. Leading the Salesforces: Sales manager is the head of sales department. He is the leader of
sales team. He has the responsibility of directing the sales forces. He should induce his followers
to work with full energies. He should set a model with qualities of hard work and loyalty, etc.
7. Evaluating and Controlling the Salesforce: Evaluating a salesperson’s performance is a part
of the managerial function of sales force management. Management compares the result of a
person’s efforts with the goals set for that person. The purpose is to determine what happened in
the past and to use this information to improve performance in the future, either by taking
corrective actions or by rewarding good performance.
Sales force size
Salespeople are one of the company’s most productive and expensive assets
Increases in sales force size can increase sales and costs.
Workload approach to sales force size refers to grouping accounts into different classes
according to size account status or other factors related to the amount of effort required to
maintain them to determine the number of salespeople needed to call on each class of accounts
the desired number of times.
Sales Potential Method: In a job description of salesman, several activities are listed. The
performance of one set of activities represents one sales personnel unit. An individual salesman
does not always equal to one sales personnel unit. He may represent more than one unit or less
than it, depending upon his effectiveness. The number of sales personnel unit required have to be
considered and the number of salespersons required performing them. These tow equal if
salespeople were to perform all the activities listed in the job description. Job descriptions are
based on average performance of average salesman. The sales volume is rupee terms that each
sales personnel unit(or salesman) would generate can be estimated from this. This amount is
divided by sales forecast or sales volume objective. The figure is adjusted for salesforce
turnover. The answer indicates the number of salespeople needed.
Incremental Method: This is the soundest method conceptually. The proposition here is that net
profits rise up when additional sales hands are recruited provided that the additional sales
revenue exceeds the additional cost of employing the new hand. The application of this method
requires essential inputs – additional revenue and additional costs.
Recruitment and Selection Process
Step 1
Planning for Recruitment & Selection
•
Job Analysis
•
Job Qualifications
•
Job Description
•
Recruitment & Selection Objec.
•
Recruitment & Selection Strategy
Step 2
Recruitment: Locating Prospective Candidates
•
Internal Sources
•
External Sources
Step 3
Selection: Evaluation and Hiring
•
Screening Resumes and Applications
•
Initial Interview
•
Intensive Interview
•
Testing
•
Background Invest.
•
Physical Exam
•
Selection Decision and Job Offer
Job Analysis : Entails an investigation of the tasks, duties, and responsibilities of the job.
Job Qualifications: Refers to the aptitude, skills, knowledge, personal traits, and willingness to
accept occupational conditions necessary to perform the job.
Job Description: A written summary of the job containing the job title, duties, administrative
relationships, types of products sold, customer types, and other significant requirements.
Recruitment and Selection Objectives: The things the organization hopes to accomplish as a
result of the recruitment and selection process. They should be specifically stated for a given
period.
Recruitment and Selection Strategy: The plan the organization will implement to accomplish
the recruitment and selection objectives. The sales managers should consider the scope and
timing of recruitment and selection.
Sources of Sales Force Recruits
 Pre Recruiting Reservoir
 Sources within the Company:
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Company Sales Personnel
–
Company Executives
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Internal Transfers
 Sources outside the Company
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Direct unsolicited Applications
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Employment Agencies
–
Employees of Customers
–
Sales Force of competing companies
–
Sales Force of non competing companies
–
Educational Institutions
Selection System
 Preliminary Interview & Pre Interview Screening
 Formal Application
 Interview(s)
 Reference & Credit Check
 Testing
 Physical Examination
 Employment Offer
Preliminary Interview & Pre Interview Screening
 Eliminating unqualified Applicants
 Detects the presence or absence of predetermined minimum qualifications
 Criteria includes applicant’s basic qualifications, education, experience, health
 Questions about the company and the job are answered
 Applicant fills Formal Application Form for Formal Interviews
Formal Application Form
 Central record for all pertinent information collected during selection process
 Customized Formal Application form tailored to each company’s specific requirement
 Present job, dependents, education, employment status, time with last employer, previous
positions, record of earnings, reasons for leaving the job
Formal Interview
 Most widely selection step & comprises the major portion of selection system
 Most satisfactory method in judging an individual’s ability in oral communication,
personal appearance and manners, attitude towards selling & life in general, reaction to
obstacles presented face to face and personal impact upon others.
 Who Should do the interview:
 HR Managers
 District or Branch Sales Managers
 Marketing Managers
 How Many Interviews:
 Varies with the selling style
 Depends upon the job profile & Technicality of the job
Interviewing Techniques
 Patterned Interview:
–
Prepared outline of questions designed to elicit a basic core of information
–
Interviewer works directly from the outline and records answers as they are given
 Non Directive Interview:
–
Applicant is encouraged to speak freely about experience, training & future plans
–
Interviewer just directs the interview
–
Yields maximum insight into an individual’s attitudes & interests
 Interaction (Stress) Interview:
–
Simulates the stresses the applicants would meet in actual selling & provides a
way to observe the applicant’s reactions
–
See how applicant reacts to the surprise situation & to size up to selling ability
 Rating Scales:
–
Constructed that interviewer’s ratings are channeled into a limited choice of
responses
–
Results in more comparable ratings of the same individual by different
interviewer’s
–
Objectivity restricts precise description of many personal qualities
References
 Reference provides information on the applicant not available from other source
 References are excellent source for candid appraisals
 Four classifications:
–
Present or Former employees
–
Former Customers
–
Reputable citizens
–
Mutual acquaintances
Credit Checks
 Personal Debt records
 Timely Payments
 Large debts out standings for longer periods
Psychological Tests
 Different sets of behavior or attributes can lead to successful job performance
 Test of Ability:
–
Measure how well a person can perform particular tasks with maximum
motivation
–
Includes Mental ability (Intelligence Tests) & Tests of Special abilities ( Aptitude
Tests)
–
Language usage & Comprehension, & abstract reasoning or problem solving
ability
 Test of habitual characteristics:
–
Include attitude, personality & interests
–
Moral measuring techniques
–
Ascertain employees feelings towards working conditions, pay, advancement
opportunities.
 Interests Tests:
–
Relationship between Interest & Motivation
–
Among two persons, one with greater interest will be more successful
 Physical Examination
 Offer Letter
Training Methods of Salesman
Sales personnel are the revenue generators for any organization. If the sales force is not equipped
with adequate tools to showcase the company’s products or services, it would drastically affect
the revenue-generating capacity of an organization. Each organization has specific requirements
and they need to train their sales people adequately with respect to their specific needs. So, what
is the type of training that an organization needs to plan for their sales personnel?
A typical training program for an organization needs to cover the following:
Product Knowledge: Knowledge of a product or service that the organization is offering. A
sales person could be seasoned professional with many years of sales experience. However, if he
has newly joined an organization, or if the organization has newly launched a product, he needs
to learn and understand the features and benefits of the product before approaching a prospective
customer. Organizations need to have a mechanism in place to make sure that sales team is kept
up to date with product information. Therefore, this forms the main features of a sales training.
Sales Process: Typically, a sales process has the following five stages:

Establishing a relationship with the customer

Analyzing the needs of the customer

Making a recommendation to satisfy those needs

Completing the sales process by taking a commitment

Ensuring prompt delivery of the service and follow-up with the customer for any feedback
These stages remain more or less the same for any product or service. However, organizations
need to tailor these stages for their specific requirements and sensitize the sales force about their
importance. The sales team needs to thoroughly understand the sales process in order to
effectively execute it.
Sales Strategies: Each organization will have its own strategy to sell a product or a service
depending on its core mission. Sales personnel need to be guided with role plays or examples as
to how to employ these strategies to promote their products or services. For example, an
organization’s strategy could be focusing on dealers or distributors rather than individual
customers. Yet another strategy could be using direct marketing or through outbound marketing.
Sales team need to understand the strategies of the organizations and the systems that are in
place. They will need to require appropriate training so that the sales force is in sync with the
organizational strategy.
Follow up Process: The sales process does not end with obtaining the order. Every organization
will have its own process and procedures that need to be adopted to complete a sale. Some of
them could be very important regulatory requirements – especially when providing services such
as insurance. Apart from this there will be many internal documents that need to be completed or
filled as a part of the sales process. These procedures have been adopted for securing the
interests of the organization as well as the customer. Hence the sales personnel need to be duly
trained in these processes.
Organizations normally focus on product training and soft skills training for the sales personnel.
However, having a training program which covers all the above aspects would be truly
comprehensive and empowering for a sales person.
Motivating Salesman
Motivation is about the ways a business can encourage staff to give their best. Motivated
staff care about the success of the business and work better. A motivated
workforceresults in:



Increased output caused by extra effort from workers.
Improved quality as staff take a greater pride in their work.
A higher level of staff retention. Workers are keen to stay with the firm and also
reluctant to take unnecessary days off work.
Managers can influence employee motivation in a variety of ways:


Monetary factors: some staff work harder if offered higher pay.
Non-monetary factors: other staff respond to incentives that have nothing to do with pay,
eg improved working conditions or the chance to win promotion.
Payment methods
Managers can motivate staff by paying a fair wage. Payment methods include:








Time rate: staff are paid for the number of hours worked.
Overtime: staff are paid extra for working beyond normal hours.
Piece rate: staff are paid for the number of items produced.
Commission: staff are paid for the number of items they sell.
Performance related pay: staff get a bonus for meeting a target set by their manager.
Profit sharing: staff receive a part of any profits made by the business.
Salary: staff are paid monthly no matter how many hours they work.
Fringe benefits: are payments in kind, eg a company car or staff discounts.
Non-pay methods of motivation
Managers can motivate staff using factors other than pay through:





Job rotation: staff are switched between different tasks to reduce monotony.
Job enlargement: staff are given more tasks to do of similar difficulty.
Job enrichment: staff are given more interesting and challenging tasks.
Empowerment: staff are given the authority to make decisions about how they do their
job.
Putting groups of workers in a team who are responsible together for completing a
certain task.
Motivational theories
Managers can make use of a number of motivational theories to help encourage
employees to work harder.
Taylorism argues that staff do not enjoy work and are only motivated bythreats and
pay. Managers motivate staff by organising employees' work and paying by results, eg
piece rate pay - payment per item produced.
Maslow suggests there are five hierarchies or levels of need that explain why people
work. Staff first want to meet their survival needs by earning a good wage. Safety needs
such as job security then become important, followed by social, self-esteem and selffulfilment needs. Moving staff up a Maslow level is motivational.
Controlling
Reaffirm your working relationships. As a leader, you should reestablish the pecking
order at work. Employees will take advantage of leadership that is afraid to lead or enforce rules.
Letting the employees know where they stand will help coax some of them back to the middle
without doing something drastic.
2.Perform a surprise evaluation. Employees often know when their performance
evaluations are coming up and tend to 'butter the bread' when the time gets close to make up for
instances when they were not on task. Performing a surprise evaluation without their knowledge
will give them a realistic depiction of what they do when they are caught off guard. Allow the
employees to see statistical evidence of work being performed to show proof because many will
be left in disbelief without it.
3.Offer incentives. Everyone knows that you should be paid to do your job, and for those
who wish to be marginal this is fine. Offering incentives will spur a positive reaction for those
who are already performing above standard and pry others who are on the cusp to do a little bit
more. Incentives like flex time, longer lunches, time off, casual clothes days and others can be
used to get employees in line as well as boost productivity.
4.Separate problem employees. No, of course this doesn't mean to put them in the corner
and make them wear dunce caps like children, but simply adjusting the seating in the workplace
might help. Problem employees can come in different forms, such as friends who talk too much
at work and whose conversations tend to get a little off task and possibly disrupt others.
Separating these two factions may lower their morale slightly, but if they soon see that their
performance has increased, (providing you do a prompt evaluation) since the split, they will be
less likely to complain and can see the method behind the 'madness.'
5.Follow through on your rules. Make sure that you are not constantly making exceptions
for anyone. Breaking a rule once may be an accident, but then some slight remedial training
should be issued along with a verbal warning. Upon a second infraction, you should take a more
serious approach. Making exceptions will show others favoritism and cause even more
disruption amongst employees.
6. Motivate your employees to get to a positive end result. Motivation comes in many
positive and negative forms, and in this instance positive forms of manipulation are required. For
instance, offering encouragement in order to bolster someone to do better is a form of
manipulation. Use these types of manipulations to manifest your control of employees at a
workplace without playing mind games that will ultimately hinder their progress.
Compensation & Incentives for Salesman
•
Compensation in the global market is an extremely important managerial area
•
This is because the compensation plan:
–
Helps attract potential salespersons
–
Impacts a salesperson’s motivation
–
Is a determinant of status and value
–
Determines lifestyle and purchasing power
•
Compensation package is complex and affected by multiple forces:
–
A balance between company policies and country-specific elements
–
Total compensation package includes financial
•
–
Salary, commission, bonus, stock options, benefits
and non-financial incentives
•
Awards, recognition, vacation, and promotion
Compensation Plans
•
Hard to compare compensation plans because of their differences
–
Lower salary, but higher deferred components
–
Cannot simply transfer a compensation plan from one culture to another
•
–
What works in one culture will not work in another!
Compensation should motivate sales force to accomplish goals set by
management
Compensation may be changed to meet firm goals
Three Types of Compensation Plans
•
Straight Salary
•
Straight Commission
•
Combination Plan
Straight Salary
•
Salesperson paid a set amount of money based upon hours or days worked
–
Often adopted when salesperson must devote significant amounts of time to other
duties
•
Market research, customer service, administration
–
Simple to administer by sales manager
–
But, no direct link between performance and reward!
•
More commonly used in Europe and may be difficult to change by global
sales managers
Straight Commission
•
Adopted by performance-oriented firms that pay salesperson for their achievements
–
Each person is paid a percentage of their total sales
•
Easy to evaluate performance
•
Plans encompass an element of insecurity
•
Not believed acceptable in some cultures, like EU
•
Some evidence of acceptance in Japan
•
Can lead salesperson to shirk duties or pressure customers to buy
Combination Pay Plan
•
The combination plan is the most popular
–
Employed by more than 80% of US firms
–
May appear in many forms:
•
•
Salary, commission, individual and group bonuses
–
Basic security bestowed by set salary
–
Motivation introduced by commission/bonus
Combination plans more time consuming for sales managers to oversee
Ethical Compensation Issues
•
Major dilemma – hire the best salesperson for the lowest possible salary.
dilemmas include:
–
Pay at, below or above market salaries?
–
Setting a cap on total pay?
–
Assigning lucrative sales territories?
–
Team vs. individual incentives?
–
Frequency of paying commission?Pay discrimination?
Other
Sales Contests
•
Sales contests are short-term incentive programs implemented to motivate salespersons to
achieve specific goals or activities
•
For sales contests to be successful:
–
Objectives must be specific and clearly defined
–
Contest theme must be exciting and clearly communicated
–
Each salespersons must believe they can win
–
Awards must be attractive to participants
–
Contest must be promoted and managed properly
Sales Contest Elements
•
•
Contest Objectives
–
To increase total and product sales most common
–
Sales force must be given sufficient time
–
All contest information and rules must be clear
Theme
–
•
Contests receive a theme to create excitement
Chance of winning
–
Compete against self, others, or as a team?
•
In U.S. salesperson has about a 40% chance of winning
Types of Rewards
•
Sales contests can offer many types of reward in the form of:
–
Cash, prizes, or travel
–
Perceived value very important as it must be of sufficient value to motivate
additional effort
•
Promotion of contest important
–
Launched as a special event with handouts
–
Large scorecards to communicate progress
–
Newsletter articles or interim prizes can keep motivation up
Sales Contest Concerns
•
A number of concerns have been raised about sales contests
–
When not properly designed contests take a lot of managerial time to administer
–
Improper contests can actually de-motivate
–
Do sales contests generate additional sales?
–
Should sales force be paid twice for doing job?
–
If contests are for short-term, then why have a “never-ending” sales contest?
Non-Financial Incentives
•
Human needs require approaches other than compensation to remain satisfied
–
Ability to grow
–
Recognition programs
•
Salesperson of the year, President’s Club
–
Opportunity to travel
–
Educational assistance
Sales Expense Plans
•
Linked to salary in some ways
–
Globally, firm may pay salesperson’s expenses to live overseas that include
family
–
•
Expatriate expenses are significant
Expense plans include
–
Unlimited
–
Per diem
–
Limited expense plan
Unlimited Expense Plan
•
All legitimate expenses are reimbursed
•
Plan has a number of advantages
•
–
Communicates trust to the sales force
–
Sales manager can focus on more important issues
–
Salesperson cannot complain that resources not available to make sale
Sales force must be given guidance and expenses must still be monitored to insure sound
judgment
–
Reimbursed expenses vary by country – e.g. entertainment and alcohol
Per Diem Expense Plan
•
The salesperson is given a set amount of money for each day s/he is in the field
–
For example, US$250 per day
•
Budget can be set by multiplying rate times total days sales force expected
to travel
•
Single rate unlikely to work in all locales due to varying costs
•
Sales manager must adjust per diem rates regularly as prices expand or
contract
Limited Expense Plan
•
The firm sets a maximum daily amount paid for each category of expense
–
That is, US$125 for lodging, $50 for meals, $30 for auto rental, and $20 for
miscellaneous
•
Limits firm’s upper travel expense limit
•
Must be updated and will vary by location
•
When actual costs exceed plan, salesperson may try to save in some areas
to meet expenses in other
•
Salesperson’s attention may be diverted from client
Sales Territories
•
A sales territory consists of existing and potential customers, assigned to a salesperson
•
Most companies allot salespeople to geographic territories, consisting of current &
prospective customers
Major Reasons / Benefits of Sales Territories
•
Increase market / customer coverage
•
Control selling expenses and time
•
Enable better evaluation of salesforce performance
•
Improve customer relationships
•
Increase salesforce effectiveness
•
Improve sales and profit performance
Procedure for Designing Sales Territories
•
Select a control unit*
•
Find location and potential of present and prospective customers within control units**
•
Decide basic territories by using
•
Build-up method,
•
Break-down method
Or
*A control unit is a geographical territorial base
**Unnecessary & expensive for consumer products
Procedure in Build-up Method
•
Decide customer call frequencies
•
Calculate total customer calls in each control unit
•
Estimate workload capacity of a salesperson
•
Make tentative territories
•
Develop final territories
Objective is to equalise the workload of salespeople
Procedure in Breakdown Method
•
•
Estimate company sales potential for total market
Forecast sales potential for each control unit
•
Estimate sales volume expected from each salesperson
•
Make tentative territories
•
Develop final territories
Objective is to equalise sales potential of territories
Assigning Salespeople to Territories
Sales Manager should consider two criteria:
(A) Relative ability of salespeople
•
Based on key evaluation factors:
(1) Product knowledge, (2) market knowledge, (3) past sales performance, (4)
communication, (5) selling skills
(B) Salesperson’s Effectiveness in a Territory
•
Decided by comparing social, cultural, and physical characteristics of the salesperson
with those of the territory
•
Objective is to match salesperson to the territory
Management of Territorial Coverage
•
It means: How salesperson should cover the assigned sales territory
•
It includes three tasks for a sales manager:
•
Planning efficient routes for salespeople
•
Scheduling salespeople’s time
•
Using time-management tools
Routing
•
Routing is a travel plan used by a salesperson for making customer calls in a territory
•
Benefits of or Reasons for routing:
•
•
Reduction in travel time and cost
•
Improvement in territory coverage
Importance of routing depends on the application:
•
Nature of the product – Important for FMCG
•
Type of jobs of salespeople – Important for driver-cum-salesperson job, but
creative selling job needs a flexible route plan
Procedure for Setting up a Routing Plan
•
Identify current and prospective customers on a territory map
•
Classify each customer into high, medium, or low sales potential
•
Decide call frequency for each class of customers
•
Build route plan around locations of high potential customers
•
Computerised mathematical models are developed
•
Commonly used routing patterns are:
Scheduling
•
Scheduling is planning a salesperson’s visit time to customers. It deals with time
allocation issue
•
How to allocate salesperson’s time?
•
Sales manager communicates to salesperson major activities and time allocation
for each activity
•
Salesperson records actual time spent on various activities for 2 weeks
•
Sales manager and salesperson discuss and decide how to increase time spent on
major activities
•
Companies specify call norms for current customers, based on sales and profit potentials,
and also for prospective customers
Time Management Tools
To help outside salespeople* to manage their time efficiently and productively, the tools
available are:
•
High-tech equipment like laptop computers and cellular phones
•
Inside salespeople to provide clerical support, technical support, and for
prospecting, and qualifying, as they remain within the company
•
Outside salespeople can then spend more time getting more orders & building
relationships with major customers
*Outside salespeople travel outside the organisation
Sales Quotas
•
What are Sales Quotas?
•
Sales quotas are sales goals or targets set by a company for its marketing / sales
units for a time period
•
Marketing / sales units are regions, branches, territories, salespeople, and
intermediaries
•
Generally, company sales budget is broken down to sales quotas for various
marketing units
•
Objectives of Sales Quotas
•
To use quotas as performance standards or performance goals
•
To control performance
•
To motivate people by linking quotas to compensation plans
•
To identify strengths and weaknesses of the company
Types of Quotas
•
Organisations set many types of sales quotas: (1) sales volume, (2) financial, (3) activity,
(4) combination
•
Sales volume quotas
•
For effective control, sales volume quota should be set for the smallest marketing
units, such as salesperson, districts / branches, product items / brands
•
Sales volume quotas can be stated in (a) rupees / dollars, (b) units, or (c) points
•
Rupees / dollars sales volume quotas are appropriate when salespeople are
required to sell many products
•
Unit sales volume quotas are suitable when
•
Salespeople are selling a few products
•
Prices of the product fluctuate rapidly
•
Price of each product / service is high
Point sales volume quotas are appropriate when the company wants salespeople to sell products
that contribute more to profits
Financial Quotas
•
Financial quotas control (a) gross margin or net profits, and (b) expenses of marketing
units
•
Gross-margin / Net-profit quotas
•
Calculate gross margin by subtracting ‘cost of goods sold’ (i.e. cost of
manufacturing) from sales volume. Sales managers are not responsible for cost of
manufacturing
•
Net profit quotas are generally accepted by sales mangers as it is calculated by
subtracting direct selling expenses from the gross margin
•
Expense quotas
•
In many companies, expense quotas are stated as a percentage of sales
•
Expense quotas to be administered with flexibility, to make salespeople cost
conscious, allowing reasonable expenses
Activity Quotas
•
These are set when salespeople perform both selling and non-selling activities
•
Objective is to direct salespeople to carry out important activities
•
For effective implementation, activity quotas are combined with sales volume and
financial quotas
•
E.G. Calling on high potential customers, payment collection from defaulting customers
Combination Quotas
•
Used when companies want to control salesforce performance on key selling and nonselling activities
•
Focus on a few types of quotas, to avoid confusing salespeople. An example:
Type of Quota
Quota
Actual
Percent
Weight
Percent
(Importance)
Quota x
Quota
Weight
Sales Volume (Rs)
5,00,000
4,50,000
90
3
270
Receivables (days)
45
50
89
2
178
New
04
05
125
1
125
Total
6
573
Customers
(Nos)
•
Total point score=573/6=95.5 for a salesperson
•
Typically use ‘points’ as a common measure to resolve the problem of different measures
used by various types of quotas
Methods for setting sales Quotas
Several methods are used for establishing sales quotas
•
In practice, companies use more than one of the following methods to increase
their confidence in sales quotas
•
Total market estimates
•
Territory potential
•
Past sales experience
•
Executive judgement
•
Salespeople’s estimates
•
Compensation plan
We shall briefly discuss each of the above methods
Total Market Estimates Method
•
The Process followed by established companies is as under:
1) Estimate next year’s total market demand, or industry sales forecast, using sales
forecasting methods
2) Decide the company’s estimated market share for next year
3) Company’s next year sales forecast= (1) x (2)
4) Find each territory’s percentage share out of the total company sales in the
previous year
5) Territory sales quota = (3) x (4)
Territory Potential Method
•
The procedure followed by new companies is as under:
1) Estimate next year’s industry sales forecast or market potential, using sales forecasting
methods
2) Estimate multiple factor index (MFI) for each territory, based on factors that influence
sales of the product. These factors are given weights corresponding to the degree of sales
opportunity.
3) Industry sales forecast in a territory (or territory market potential=(1)x(2)
4) Territory sales quota = (3) x estimated market share of the company in the territory
Past Sales Experience Method
•
The process consists of taking past one year’s sales (or an average of previous 3 to 5
year’s sales), adding an arbitrary percentage (or a percentage by which the market is
expected to grow), and thus setting each territory sales quota
•
The assumption that future sales are related to past sales may not be always correct
•
This method should not be the only method used
•
Past sales should be one of the factors used for deciding sales quotas
Executive Judgement Method
•
Senior executives use their judgement when the product, territories, and the
company are new or very little market information is available
•
Executives predict company sales budgets and also territory sales quotas
•
This method should generally be used along with other methods
Salespeople’s Estimate Method
•
Some firms ask their salespeople to set their own quotas
•
Many salespersons either set very high or too low sales quotas
•
For setting proper quotas, many sales managers use 2 or 3 of above methods,
discuss with salespersons to get their inputs, and decide sales quotas
Compensation Plan Method
•
Some organizations set quotas to fit with their sales compensation plan
•
E.G. A company wants to pay a monthly salary of Rs 5000, and a commission of
3% on monthly sales above Rs 1,00,000. The quota of Rs 1,00,000 is set in such a
way that salesperson would find it very difficult to cross total compensation of Rs
8000 per month (5000+3000)
•
Sales quotas should not be based only on this method, because it would “put the
cart before the horse”
Insight into Setting & Administration of Sales Quotas
•
Set realistic quotas
•
Understand problems in setting quotas
•
Ensure salespeople understand quotas
•
By allowing salespeople to participate in the process
•
By continuous feedback to salespeople on their performance compared to quotas
•
Have flexibility in administering quotas
•
Change quotas in cases of major changes in market demand or company strategies
•
Use monthly or quarterly quotas for incentives and annual quotas for performance
evaluation
•
Select a few quotas that have relationships with marketing environment and sales
situations
Evaluation of Sales Person
1. Get the stats. You can't simply measure sales wins. Five sales out of 500 meetings isn't
exactly stellar. You also need to evaluate productivity: Track the number of meetings with
prospects and the number of prospects who have received a proposal or quote. Also, find the
number of prospects in the sales funnel, the likelihood they will close and within what
timeframe.
2. Provide regular reports. Don't provide sales data one month, and then let it slide for
several months. Your sales team needs on-going information to understand how they're truly
doing.
3. Make sure they understand the stats. Are you confident your sales team understands the
reports? If not, your analysis is a waste. Provide them with the training necessary to ensure
they understand their individual stats and those of the company as a whole.
4. Use the stats to develop training. Based on the stats, you can develop highly focused skills
training that improves their strengths and corrects any weaknesses. Focus your energies on
where you see the notable deficiencies.
5. Set goals. Work with your salespeople to establish realistic goals they can meet if they are
focused on achieving success.
6. Fine tune your compensation program. Money talks. So develop a compensation program
that smartly leverages the information you find in the statistics.
7. Provide ongoing feedback. Your sales team needs your input. It's not all about statistics
and reports. They also require your leadership and motivation to use the statistics and
training to the best of their abilities.
UNIT- V
Sales promotion: Meaning-methods-promotional strategy-marketing communication and
persuasion-promotional instruments: advertising -techniques of sale promotion-consumer and
dealers promotion. After sales service-packing – guarantee - Personal selling-Objectives Salesmanship-Process of personal selling-types of salesman.
Sales Promotion
Sales promotion is the process of persuading a potential customer to buy the product. Sales
promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a
method of building long-term customer loyalty. Some sales promotions are aimed at consumers.
METHODS OF SALES PROMOTIONS
There are four methods involved in sales promotions
1. Consumer sales promotions
2. Trade sales promotions
3. Business to business promotions
4. Sales persons promotions
CONSUMER SALES PROMOTIONS (CSP)
In the previous section, we defined sales promotion as “those marketing activities
other than selling, advertising and publicity, that stimulate consumer purchasing and dealer
effectiveness”. In this section we are going to discuss promotional activities aimed at the final
consumer. These activities rely on what is known as a “pull strategy”- that is they depend on the
consumer to literally pull the product through the distribution channels. Before looking at
the tools and techniques of (CSP) let us look at some of its specific goals:
a) Encourage trial: Most new products fail because too few people try the product or
because trial does not lead to repeat purchase. Especially when the concept is new, most people
are hesitant to take risks. Sales promotion directed at the consumer offers a reason for trying the
new offering.
b) Encourage brand loyalty: It is not enough to persuade consumers to try your product. The
real challenge lies in getting them to stay with your brand. As we saw with the subscription
wars competitors are always ready to come up with counter offers to woo away your
customers.
c) Increase product usage: (CSP) could also aim to persuade customers to buy a product in
larger quantities.
d) Encourage consumption of other products in your line: when marketer’s product
portfolio consists of several related products, (CSP) may aim to create demand for more than
one product.
e) Reinforce advertising efforts:
highlighted in the advertising.
(CSP) could help to emphasize product benefits
Once you have decided what you want the (CSP) to achieve, a technique has to be chosen. A
single technique, or a combination of techniques may be used. The various tools/techniques
involved in the (CSP) are:
Sampling: This consists in offering a small quantity of the product free, or at a very low cost,
in order to encourage trial. It is most commonly used by large firms which produce packaged
foods, health and beauty items. Hindustan Lever’s and P&G samples for their detergent
brands. Samples may be distributed door-to-door, through the mail, with magazines and
newspapers in the store, or anywhere where your audience is likely to be. A sample can
stimulate a higher rate of trial than any other promotional efforts. Sampling is however a costly
way of introducing or encouraging trial of a new product. Sampling will only be successful
only if trial translates into repurchase.
Couponing: A coupon is a certificate good for a specific price reduction, on a particular
product, for a specific time period. It is a medium by which the manufacturer offers a
consumer a price deal. If redeemed at a retail store, the coupon is used by the retailer
and the wholesaler to gain reimbursement from the manufacturer. Coupons are most
commonly used by manufacturers of packaged foods. Coupons can help a new product to
be launched, build market share.
Money-back offer: In this case the marketer offers to return a certain amount of money to
the consumer if he is not satisfied with the product. This may take the form of a full or
partial refund, after the product is returned. Money-back offers help to reduce the risk
involved in trying new products. They also help to reward existing customers, encourage
multiple purchases, and persuade consumers to buy now rather than later. The disadvantage with
this technique is that refunds are not available on the spot. Consumers are normally reluctant to
go through the process of filling out refund forms, sending them in and waiting for cash back.
Price incentives: This is the use of a short term reduction in price to stimulate demand
for an established product whose sales is declining. Such price incentives may take the
form of price promotions or price packs. A price promotion is a short term reduction
that is available to everyone who buys the product during the promotional period.
While some price promotions decrease the selling price by a specific amount (Rs 100 or
Rs 500 off, depending on the product), others reduce it by a certain percentage (20% or 50%
off). Price packs are generally more effective than price promotions. A price pack
normally includes something extra with the regular product package. One type of price pack is
the “bonus pack” which offers more of the product at the regular price. A second type of price
pack is the “banded pack”. Here two or more units of a product are sold together at a
lower price than if purchased separately. The “buy one get one free” offers are
examples of banded packs.
Premiums: A premium is the offer of some type of mechandise or service either free or at a
greatly reduced price to induce purchase of another product or service. The specific
purpose of a premium is to induce present consumers to increase their use of brands or
to purchase it in larger sized packets. It can also help to switch consumers from their
present brand to that of the promoters brand in order to gain trial use, with hopes of
repurchase. Premiums may be distributed in a no of ways:
By enclosing it in a product package known as a “in-pack”premium.
By attaching it onto the package known as a “on pack” premium.
By giving it away at the point of purchase, known as a “shop or store” premium.
By offering it as a container holding a product, called a “container” premium.
By distributing it through mail in return for proof of purchase known as a “mall premium”.
Premiums may be classified In terms of whether they are offered free or at a reduced price.
Premiums offered at reduced price are known as “ self liquidating” premiums. The
purpose of such a premium is to cover the manufacturers out of pocket costs. Premiums
are also an expensive technique and unless tremendous volumes are generated no company
can afford to do this.
Contests and sweepstakes: A contest is a promotion based purely on the participants skills
and abilities. It requires that the participants apply a skill in creating an idea, a concept or
an end product contests are usually based on coining a name or a slogan for a new or
existing product or answer a question related to a product. A sweepstake on the other hand is
purely based on chance. Each participant has an equal chance of winning a prize from an
extensive and expensive list of rewards lucky draws and lottery’s are examples of this.
Both contests and sweepstakes are powerful sales promotions devices as they have the ability to
involve the customer and build excitement around the product. The disadvantage with these
techniques is that it is difficult to test them in a limited market before using them on a
national basis.
Frequency programmes: As the name suggests the purpose of such a promotion is to
increase frequency of purchase. This is usually an on- going promotion used commonly
by service industries. The”frequent flyer” programme offered by the airlines is the best
example of this. The advantage of such a programme is that they build a long term brand
loyalty with the customer.
Point of purchase displays: Attractive displays of a product can trigger purchases even
if the purchase was not originally planned. Point of purchase display materials such as
special merchandise racks, banners and danglers etc. can be used to effect, to encourage
consumers to try new products, switch brands or make unplanned purchases.
Joint sales promotion: Consumer sales promotions need not always be for a single advertisers
product. Often two or more marketers join together and offer a combined promotion. The
biggest advantage with this type of promotion is that the sharing of work load and
expenses. The disadvantage is that the loss of control over creative, media and budget
elements.
TRADE SALES PROMOTIONS (TSP)
CSP contributes only partially to the success of a product. Much also depends on the
willingness of wholesalers and retailers to carry and sell the product. This is particularly
important today when power has shifted from the marketer to the retailer. A few years
ago, companies with huge advertising budgets and extensive distribution networks
could use their marketing muscle to move products onto retail shelves. Today retailers
command terms and demand incentives from the manufacturer for giving preference to
his products. Some specific objectives of TSPS are:
Encourage stock of new products.
Raise or lower inventory levels of an existing product.
Provide an incentive to sell a product.
Encourage more prominent and attractive display of a product. Offer support and training for
distributors and the sales force. Strengthen relations with the trade.
Either one or a combination of tools/techniques may be used to achieve the above goals:
Trade deals: This is a short term arrangement whereby the wholesaler and the retailer
agrees to give a manufacturers product a special promotional effort. The deal could take
the form of product discounts, cash payments or additional discounts offered by the
manufacturer.
Buying allowance: this could take the form of cash payment, a product discount or
additional goods offered to a distributor to encourage him to carry a new item that he may
not ordinarily buy or to encourage purchase of a certain quantity of an existing product
during a certain period. It is a push strategy.
Display allowance: this is a cash payment given in a form of a fee or a discount in exchange of a
desirable shelf, location or space for a point of purchase display. It is generally given to
support an established product.
Slotting allowance: this is a technique generally used to promote new products. It also involves
a cash payment or a fee given to the retailer in exchange for a slot or position on a shop shelf.
Sales support: both dealers and the sales force need to be equipped with some basic
selling tools in order to push the product. Sales support could take the form of training
programmes, seminars, product demonstrations and distribution of materials such as
brochures, videotapes and slides that show detailed product information. Prepared by the
advertiser for dealer or salespersons use these materials could be presented to prospects
during sales calls at (POP) or at trade shows.
Yellow pages advertising: this form of advertising is much more common in the U.S. than
in India. An ad in the yellow pages of a directory creates awareness regarding
availability of your product. Once a prospect has seen an ad or a commercial for your product
he tends to check the yellow pages to see where he can buy it.
Specialty advertising:
This another way of advertising in non-traditional media. Pens,
calendars, diaries are all examples of specialty advertising. In contrast to premiums which
are given only when purchasing a product, specialty items are offered free of charge
without having to purchase something. Their purpose is to create goodwill.
BUSINESS TO BUSINESS (B2B)
Business to business is also an important method of sales promotions. But they are used for
industrial products and not much for consumer products. Therefore their sales promotions
techniques may also differ from that of consumer products. For example a company
needs spare parts as a major input or raw material then it will have an auction where
different suppliers will come and the supplier that bids the lowest price will be chosen. Now
suppose the company wants 1,00,000 spare parts then it will go for economies of scale
and try and purchase say about 80,000 spare parts from that particular supplier with some
sort of concession.
SALES PERSON’S PROMOTIONS
The following promotion aids are used for sales force promotions:
a) Sales meetings: producers often organize annual meetings for the sales force for giving
them necessary information about any new product to be introduced, new sales plans
and techniques and the new sales programme of the producers.
b) Contest: sales contest for the salesman are organized from time to time by the producers.
They are awarded with cash prizes and other benefits on the basis of highest sales, minimizing
field expenses etc.
c) Sales literature and letters: salesmen are provided with various printed literatures,
such as sales manuals, folders, price lists, designs and directories of customers etc. it is
extremely helpful to them un their contacts with customers.
d) Product demonstration kits and visual sales aids: salesmen are often provided
with sales kits, containing the models of industrial and technical products.
e) Premiums bonus and gifts: premiums are given for achieving prescribed sales quotes.
Bonus is paid to salesmen from the portion of profits of the firm every year to motivate him for
better efforts. Gifts are also given on special occasions such as Diwali, Holi etc.
Sales promotion Techniques
Important techniques of sales promotion are as follows:
(1) Rebate:
Under it in order to clear the excess stock, products are offered at some reduced price. For
example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of
time.
(2) Discount:
Under this method, the customers are offered products on less than the listed price. For example,
giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a discount of 50% + 40%
by the KOUTONS.
(3) Refunds:
Under this method, some part of the price of an article is refunded to the customer on showing
proof of purchase. For example, refunding an amount of 5/- on showing the empty packet of the
product priced 100/-.
(4) Product Combination:
Under this method, along with the main product some other product is offered to the customer as
a gift. The following are some of the examples:
(5) Quantity Gift:
Under this method, some extra quantity of the main product is passed on as a gift to the
customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a
free gift of one RICH LOOK shirt on the purchase of two shirts.
(6) Instant Draw and Assigned Gift:
Under this method, a customer is asked to scratch a card on the purchase of a product and the
name of the product is inscribed thereupon which is immediately offered to the customer as a
gift. For example, on buying a car when the card is scratched such gifts are offered – TV,
Refrigerator, Computer, Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press, etc.
(7) Lucky Draw:
Under this method, the customers of a particular product are offered gifts on a fixed date and the
winners are decided by the draw of lots. While purchasing the product, the customers are given a
coupon with a specific number printed on it.
On the basis of this number alone the buyer claims to have won the gift. For example, ‘Buy a
bathing soap and get a gold coin’ offer can be used under this method.
(8) Usable Benefits:
Under this method, coupons are distributed among the consumers on behalf of the producer.
Coupon is a kind of certificate telling that the product mentioned therein can be obtained at
special discount.
It means that if a customer has a coupon of some product he will get the discount mentioned
therein whenever he buys it. Possession of a coupon motivates the consumer to buy the product,
even when he has no need of it.
Such coupons are published in newspapers and magazines. Some companies distribute coupons
among its shareholders. Sellers collect the coupons from the customers and get the payment from
the company that issues the same.
(9) Full Finance @ 0%:
Under this method, the product is sold and money received in installment at 0% rate of interest.
The seller determines the number of installments in which the price of the product will be
recovered from the customer. No interest is charged on these installments.
(10) Samples or Sampling:
Under this method, the producer distributes free samples of his product among the consumers.
Sales representatives distribute these samples from door-to-door.
This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea,
Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them,
they buy it and in this way sales are increased.
(11) Contests:
Some producers organise contests with a view to popularizing their products. Consumers taking
part in the contest are asked to answer some very simple questions on a form and forward the
same to the company. The blank form is made available to that consumer who buys the product
first.
Result is declared on the basis of all the forms received by a particular date. Attractive prizes are
given to the winners of the contest. Such contests can be organised in different ways.
Marketing Communication and Persuasion
Your purpose in most Marketing Communication is to help persuade your target audience.
Your message may be delivered in one way, a few ways, or many ways. As you work on
message content, how-ever, keep in mind the concepts of audience analysis; source credibility;
appeal to self-interest; clarity of the message; timing and context; symbols, slogans, and
acronyms; semantics; suggestions for action; and content and structure.
A Behavioural Communication Model
Awareness -* Latent readiness -* Triggering event —> Behaviour
Most theories of communication end with the receipt of the message by the receiver. The
assumption is that the reader will be persuaded and that the sender’s objective will be
accomplished.
The behavioral communication model is better because it forces practitioners to think in terms of
what causes people to pay attention to a message or take action. The four-step sequential process
is as follows:
Awareness. The basic purpose of communication is to create awareness, which is the start of any
behavioral process.
Latent readiness. An individual’s attitudes and predispositions have a great deal of influence on
whether the person is mentally prepared to pay attention to the message and take action on it.
There is considerable evidence that receivers don’t always respond. They may hear the message
but do nothing with it.
Triggering event. This step gives people a chance to act on their latent readiness. A triggering
event is something that stimulates action. It may be a telephone call from a charitable agency
asking for a donation, a series of accidents on a stretch of road that makes voters finally vote for
costly improvements, or a news conference announcing a new product on the market. Public
relations people should build triggering events into their planning; this moves the emphasis from
communication to behavior motivation.
Behaviour.
Although the ultimate goal is to motivate people to do (usually buy) something or act in a certain
way, they may adopt intermediate behaviors such as requesting more literature, visiting a
showroom, or trying the product or idea on a limited basis.
The key is determining exactly what triggering event will cause a reaction on the part of the
target audience.
Audience Analysis
A message, needs to be compatible with group values and beliefs. People who commute by car,
for example, are more likely become more interested in carpooling and mass transit when the
message points out the increasing cost of fuel and how grid-lock increases every year.
Tapping a group’s attitudes and values in order to structure a meaningful message is called
channeling. It is the technique of recognising a general audience’s beliefs and suggesting a
specific course of action related to audience members’ self-interests. In this example, the
incentive to participate in carpooling or mass transit becomes more motivational than the more
abstract concept of saving the environment.
Source Credibility
A message is more believable to an audience if the source has credibility, which is why writers
try to attribute information and quotes to people who are perceived as experts. Indeed, expertise
is a key element in credibility. The other two elements are sincerity and charisma. Ideally, a
source will have all three attributes.
Steve Jobs, president of Apple, is a good example. His success in revitalising the company in
1999 made him highly credible as an expert on Apple products and a high-tech visionary. In
countless news articles and speeches, he also comes across as a personable, laid-back “geek”
who really believes that the iMac and the iBook are the best products on the market. Jobs also
has that elusive element of charisma—he is self-assured, confident, and articulate
Not every company has a Steve Jobs for its president, nor is that necessary. Depending on the
message and the audience, various spokespersons can be used and quoted for source credibility.
For example, if you are writing a news release about a new product for a trade magazine, perhaps
the best source to quote would be the company’s director of research and development. This
person is a credible source primarily because of personal knowledge and expertise. If the news
release is about the fourth-quarter earnings of the company, the most credible person to quote in
the news release would be either the chief executive officer or the vice president for finance,
both experts by virtue of their position.
Sincerity is an important component in endorsements. Sincerity and charisma are the key
elements of using celebrities to provide source credibility. Celebrities are used primarily to call
attention to a product (goods and services), or idea. The sponsor’s intent is to associate the
person’s popularity with the product. This is called transfer On occasion, however, celebrities
lose source credibility because of scandal or negative publicity.
Sources for credibility depends in large part on the type of audience being addressed. That is
why audience analysis is the first step in formulating effective public relations messages.
Appeal to Self-interest – WIIFM
Self-interest was mentioned in connection with both Maslow’s hierarchy of needs and audience
analysis in the last article. A public relations writer must at all times be aware of what the
audience wants to know.
WIFFM means What’s in it for Me
Writing publicity for a new food product can serve as an example. A news release to the trade
press serving the food industry (grocery stores, suppliers, wholesalers, distributors) might focus
on how the product was developed, distributed, and made available to the public, the
manufacturer’s pricing policies, or the results of marketing studies that show consumers want the
product.
You would prepare quite a different news release or feature article for the food section of a daily
newspaper. The consumer wants information about the food product’s nutritional value,
convenience, and cost, and wants to know why the item is superior to similar products. The
reader is also looking for menu ideas and recipes that use the product.
Professional Tips Appeals That Move People to Act
Persuasive messages often include information that appeals to an audience’s self-interest. Here is
a list of persuasive message themes from author Charles Marsh:
Make money Satisfy curiosity
Save time
Be stylish
Save money
Protect family
Avoid effort Have beautiful things
More comfort Satisfy appetite
Better health Be like others
Cleaner
Avoid trouble Escape pain
Avoid criticism
Gain praise
Be individual Be popular
Protect reputation
Be loved/accepted
Be safe
More enjoyment
Be secure
Keep possessions
Make work easier
Clarity of the Message
Communication, as already stated, does not occur if the audience does not under-stand your
message. It is important to produce messages that match the characteristics of your target
audience in content and structure.
One solution to this problem is to copy-test all communications materials on the target audience.
Another solution is to apply readability and comprehension formulas to materials before they are
produced and disseminated. Most formulas are based on the number of words per sentence and
the number of one-syllable words per 100 words.
In general, standard writing should average about 140 to 150 syllables per 100 words and the
average sentence length should be about 17 words. This is the level of newspapers and weekly
news magazines such as Time.
Timing and Context
Professional communicators often say that timing is everything.
Your message must arrive at a time when it can conveniently be considered. If it is too early,
your audience may not be ready to think about it.
Symbols, and Slogans
The Red Cross (known as the Red Crescent in the Middle East) is the best-known humanitarian
organisation in the world. The name is totally unenlightening, but the symbol is recognised and
associated with the care and help given by the organisation. Flags are symbols. Even the Nike
Swoosh is a familiar symbol around the world. You are not likely to produce a symbol that will
become world famous, but if at all possible, you should try to find something graphic that
symbolizes a given organisation. This is called branding, and corporations often spend millions
to establish a symbol that immediately means reliability and quality to a consumer.
Slogans can be highly persuasive. They state a key concept in a few memorable and easily
pronounceable words. The American Revolution had the rallying cry of “No taxation without
representation,” and today’s corporations are just as slogan conscious.
If you can coin a slogan that expresses the basic idea of what you are trying to promote, it will
help you attain your objective.
Semantics
The dictionary definition of words may be clear and concise, but there is another dimension to
words—the connotative meaning to various individuals and groups of people. The study of
meaning given to words and the changes that occur in these meanings as time goes on is the
branch of linguistics called semantics.
For example, consider the evolution of the word “gay” in western society. The word is
traditionally defined as merry, joyous, and lively. Thus, in the nineteenth century, we had the
“Gay Nineties” and people often referred to bright col-ors or sprightly music as “gay.” By the
1920s and 1930s, however, “gay” started being applied as a code word for prostitutes who were
said to be in the “gay life.” From there, it was just a short step for the word to be applied to the
“underground” world of homosexuals.
By the same token, the terms “pro-life” and “pro-choice” have very definite connotations to
certain groups of people. “Affirmative action” means opportunity to some and exclusion to
others. . Even the expression “politically correct” has different con-notations to different groups
of people. To some, it is derogatory, an attempt by radical groups to censor freedom of
expression. To others, the concept stands for equality and an effort to eliminate sexism and
racism.
To write persuasively and to influence target audiences, you must be sensitive to semantics..
Suggestions for Action
Persuasive writing must give people information on how to take action, and the suggestions must
be feasible.
Content and Structure
People are motivated by theatrics and a good story. They are moved by bold action and human
drama. Your message should go beyond cold facts or even eloquent phrases. If you can vividly
describe what you are talking about—if you can paint word pictures—your message will be more
persuasive.
A number of techniques can make a message more persuasive; many of them have already been
discussed. Here is a summary of some additional writing devices.
Drama
Everyone likes a good story. This is often accomplished by graphically illustrating an event or a
situation. Newspapers often dramatise a story to boost reader interest. Thus we read about the
daily life of someone with AIDS, the family on welfare who is suffering because of state cuts in
spending, or the frustrations of a middle manager who is unemployed for the first time in her
career. In the news-room, this is called humanizing an issue.
After sales Services
1.Packing
Customers are typically better served if their purchase is properly wrapped or packaged. The
service may be as simple as putting the purchase into a paper bag or as complex as packaging
crystal glassware in a special shatterproof box to prevent breakage.
The seller must match its wrapping service to the type of merchandise it carries and its image. A
discount grocer or hardware store does quite well by simply putting the merchandise into a paper
sack. Specialty clothing stores often have dress and suit boxes that are easy to carry home. Some
upscale retailers even put the purchased merchandise in decorated shopping bags or pre-wrapped
gift boxes. This considerably reduces the number of packages that must be gift wrapped.
2. Guarantee
A guarantee is a promise made by a seller or manufacturer to a buyer that the item / service /
product sold is of the best quality and in the event that the buyer is not satisfied or if the said
item / service / product does not live up to this promise, the seller agrees to replace it or refund
the buyer’s money.
A guarantee provides extra protection, over and above the buyer’s existing legal right or any
other additional rights against the seller. It is always free, which means that even if a buyer does
not pay for the guarantee, or it is offered free of cost by a seller, it is legally binding on the
guarantor. A guarantor cannot refuse to provide a copy of the guarantee if you insist on one.
Warranty
A warranty is a guarantee of repair and replacement of an item / product or its parts if the
product or service does not meet the reasonable expectations of a buyer or in case any defect is
found in it during the period of the warranty. This is also called an ‘extended guarantee’.
A warranty works like a legal contract and is always binding, which means that it can subject the
seller to lawsuits if they do not comply with their promise (i.e. repairing and replacing of articles
or any of its parts). It takes effect only at the termination of any guarantee already being provided
by the manufacturer.
A warranty can be limited by the terms of the contract. Such a limited warranty put conditions on
the parts of an article, the nature of damage incurred and the time period of validity of the
document.
Personal Selling
Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and
techniques for building personal relationships with another party (e.g., those involved in a
purchase decision) that results in both parties obtaining value. In most cases the "value" for the
salesperson is realized through the financial rewards of the sale while the customer’s "value" is
realized from the benefits obtained by consuming the product. However, getting a customer to
purchase a product is not always the objective of personal selling. For instance, selling may be
used for the purpose of simply delivering information.
Because selling involves personal contact, this promotional method often occurs through face-toface meetings or via a telephone conversation, though newer technologies allow contact to take
place over the Internet including using video conferencing or text messaging (e.g., online chat).
Personal Selling Objectives
Personal selling is used to meet the five objectives of promotion in the following ways:
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Building Product Awareness – A common task of salespeople, especially when selling in
business markets, is to educate customers on new product offerings. In fact, salespeople
serve a major role at industry trades shows (see the Sales Promotion tutorial) where they
discuss products with show attendees. But building awareness using personal selling is also
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important in consumer markets. As we will discuss, the advent of controlled word-of-mouth
marketing is leading to personal selling becoming a useful mechanism for introducing
consumers to new products.
Creating Interest – The fact that personal selling involves person-to-person communication
makes it a natural method for getting customers to experience a product for the first time. In
fact, creating interest goes hand-in-hand with building product awareness as sales
professionals can often accomplish both objectives during the first encounter with a potential
customer.
Providing Information – When salespeople engage customers a large part of the
conversation focuses on product information. Marketing organizations provide their sales
staff with large amounts of sales support including brochures, research reports, computer
programs and many other forms of informational material.
Stimulating Demand – By far, the most important objective of personal selling is to
convince customers to make a purchase. In The Selling Process tutorial we will see how
salespeople accomplish this when we offer detailed coverage of the selling process used to
gain customer orders.
Reinforcing the Brand – Most personal selling is intended to build long-term relationships
with customers. A strong relationship can only be built over time and requires regular
communication with a customer. Meeting with customers on a regular basis allows
salespeople to repeatedly discuss their company’s products and by doing so helps strengthen
customers’ knowledge of what the company has to offer.
Salesmanship
Salesmanship or Personal Selling is the oldest and most common form of promotion. It involves
direct selling by the manufacturer to the prospective buyer. It is a face to face and oral
communication with the potential customer for the purpose of persuading the buyer to buy a
particular product or service. It is an important method of understanding the needs, nature and
behaviour of the prospective customers and giving them full information about the product in
question. The information so obtained helps the entrepreneur to manufacture the product
according to the demand of customers. Being personal in nature, it is an indispensable technique
of promotion.
A firm undertakes personal selling with the following objectives:
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To introduce new product or service with personal touch.
To create demand for the products such that it precedes supply.
To clarify the doubts of customers personally.
To create effective selling at least cost and secure repeated sales.
To provide valuable feedback to the managers.
Salesmen may be classified into the following categories on the basis of their employers:
Manufacturer's salesmen:- are employed to sell products either directly to consumers or
to the wholesalers or retailers. They have specialised knowledge about the products of
their employers. They may be either creative salesman or dealer-servicing salesman. The
former are engaged in creating outlets for a new product and contact the dealers to
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persuade them to handle the product. While the latter, provide services to the dealers of
their employer's products.
Speciality salesmen:- deal in high value goods like computers, automobiles, machines,
television sets, etc. They meet the potential customers and explain the usefulness of their
product. They also help in the installation of the product at the customer's place.
Wholesaler's salesmen:- generally calls on the retailer's and book orders. They provide
information about the availability of the product to the retailers and help them in getting
the supplies.
Retailer's salesmen:- deal directly with the consumers. They may be either counter
salesmen or outdoor salesmen. The former attends the customers who call at the store.
While the latter, visits the prospective customers by carrying samples of goods to
persuade them to buy goods from them.
Success of personal selling depends upon the skills of the salesman, the framework in which he
works, as well as his knowledge and experience. An effective salesman should be completely
aware of the product and should be able to convince the prospective buyer. He should also know
well about the company/firm he is representing and be able to answer all the queries of the
customer's.
To be effective, a salesman should have the knowledge of the following types:
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Knowledge of self :- He should be able to make the best use of his personality by
continuously assessing himself and analysing his qualities in the light of the requirements
of his job.This will help him to improve upon his strengths and overcome his weaknesses
through training and experience.
Knowledge of firm :- He should be fully conversant with the history of the firm. He
should have a thorough knowledge of the objectives, policies, standing and
organizational structure of his firm. Such knowledge will help him to utilize the strong
points of the firm in personal selling.
Knowledge of product :- He should be able to convince customers about the features
and utility of the product by removing their doubts and objections. Thus, he should have
full knowledge about the nature of the product, manufacturing details, terms and
conditions of sale, distribution channels used and promotional activities.
Knowledge of competitors :- In order to prove the superiority of his product, he must
have full knowledge about the competitive products, their positive and negative features.
Knowledge of competitors' sales policies, their brands and prices, etc, is also helpful.
Knowledge of customers :- In order to be successful, he must use the right appeal and
approach. He should be able to understand the prospects correctly and quickly and to
motivate and win them permanently. He should, therefore, have complete knowledge of
the nature and type of customers (their age, location, sex, income, education, etc.) and
their buying motives (low price, convenience, prestige, fashion, etc).
Knowledge of selling techniques :- Above all, he should be well-versed in the principles
and techniques of salesmanship. He should pay undivided attention to the customer, be
courteous and sympathetic towards customers, never loose patience, consider customer as
the king, aim to build permanent customers and goodwill, serve the customer in the best
possible manner, etc.
Personal selling has the advantage of being more flexible in operation in contrast to mass or
impersonal selling through advertising. Salesmen can tailor their sales presentation to fit the
needs, motives and behaviour of individual customers. They can observe the customer's reaction
to a particular sales approach and then make necessary adjustment on the spot. The seller can
select the target market for its product and concentrate only on the prospective customers.
Personal selling is more effective as compared to other tools of promotion because it leads to
actual sales.