SETTING PERSONAL

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SETTING PERSONAL SELLING OBJECTIVES
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• Obj set in consultation with Marketing Department
• Some Examples of Personal selling objectives
• Maintain existing customer base
• Obtain 20 new customers
• Motivate Dealers- maintain 1 month stocks
• Keep existing customers informed of new Product
• Provide technical service within 48 Hrs of call.
• Train Middlemen (dealer) on Customer Care

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Case on Personal Selling Objective- Case-1   A
credit card company is Planning to set its
personal selling objectives based on the
following feedback it received from the sales
department and the DSAs of the
company.   Average customers are not aware of the
complete product benefits of credit cards.   The
DSA,s do not have skilled and trained
Manpower.   The conversion in the assignment
base chosen has been just 5. The industry
standard is 15 conversion.   The customer base
of this company ranks within the last three
among the 10 players in this business.  Based on
the above please prepare personal Selling
Objective for this organization
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• What is Market Potential ?
• Estimate of maximum possible Sale opportunity in
  the Market.
• What is Sales Potential?
• The possible sales which can be achieved out of
  Market Potential
• What is Sales Forecast?
• Estimate of Sales in terms of units or value in
  given period of time
• The above all is based on a given Marketing plan
  and inputs

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• Market Motivation
• Before fixing the forecast answer the following
• Why do people buy?
• Why people do not buy?
• How best to present product (the sales pitch)
• Relative effectiveness of different selling
  appeals
• Relative appropriateness of promotional methods

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• Methods of Forecasting
• Jury executive opinion
• Top executive estimate probable Sales
• An average is calculated
• The rationale and input material is shared.
• Discuss strength weaknesses

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• The Delphi Method
• Developed by Rand Corporation
• Similar to Jury Executive opinion
• But done based on structured questionnaire
• Eliminates majority opinion
• Discuss Strengths and Weaknesses

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• Poll of Sales Force Opinion
• Each Sales personnel does an forecast of his
• territory or assignment base.
• Modifications are made by Mgt
• Discuss Strength and Weaknesses

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Projection of Past Sales method Add on based the
current years sales performance Could take past
several years of actual performance
Current
Year Sales Next year Sales Current Year Sales
X ______________
Last year Sales Example ( figs in units)
110 Next year Sales 110 X _______
90 Next year Sales
134 Generally is around 15 of the
past years performance
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• Time Series Analysis
• Similar to past Sales Projections but takes
  following into consideration
• Long Term trends
• Cyclical Changes
• Seasonal Variations
• Irregular Fluctuations

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• Survey of Customer Buying plans method
• Seek customer survey
• Seek their plans to buy
• Then estimate forecast
• Discuss Strengths and Weakness

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EFFECTIVE SALES EXECUTIVE
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• Traits of a Effective Sales Executive
• Ability to set personal goals
• Matching it with org goals
• Splitting the goals to set of activities to
  perform
• Review the activities and modify if needed
• Effective Time Management
• Ability to plan daily and implement
• Ability to exhibit skilled leadership qualities

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• Relationship with Top Management
• Should exhibit initiative and personal drive
• Keep Top Mgt informed on progress
• Need to accept responsibility
• Should not be indispensable
• Effective Problem solvers and decision makers
• Keep Management informed on decisions and
• developments
• Report promptly
• Do not relay on rumors
• Do not seek help on decision making too often,
• hence diluting authority.

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• Relation with Product Manager
• Provide vital inputs on product performance
• Product jointly decided by Mark,
  Finance,Production Sales Dept
• Periodic feedback on Product for modification
• Relation with Promotion Mgt
• Provide inputs for Promotional Strategy
• Help in implementation
• Keeps sales team informed on the promotional
  Plans
• Takes advantage of the A P investment.

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• Relationship with Pricing
• Decided jointly by Marketing and Sales
• Involves Finance, Production, Legal functions etc
• Should be aware of competitors Pricing
• Should have a feel of customer acceptability
• Implementation of pricing

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SALES RELATED MARKETING POLICIES
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Product Policy- What to Sell Distribution
policy-Whom to Sell Pricing Policy- What price to
sell The degree of authority for above varies in
different companies
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• PRODUCT POLICY
• Product line Policy
• Changes in product offering
• Re organizing product / line simplification
• Re organization of Product line / Diversification
• Ideas of new Product
• Appraisal of proposal of New Products
• Product design Policy
• Product Quality/ Service Policy
• Guarantee Policy

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DISTRIBUTION POLICY Policy on Marketing
Channels Channel wise sales volume
potential Channel wise net profitability Policy
on Distribution Intensity Mass
distribution Selective Distribution Exclusive
agency distribution
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Case-II Sales Management Product Related
Policy  A Multi Product and Multi Brand company
has eight brands in the product range of Toilet
soaps. The contributions of various products are
as follows      Discuss on options of
Product Line Policy
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• Policy on Distribution Intensity
• Mass distribution
• Selective Distribution
• Exclusive agency distribution

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PRICING POLICY Competition Related
Pricing Matching the competitors pricing Pricing
above competitor Pricing under Competition Pricin
g related to costs Full cost pricing Promotional
Pricing Contribution pricing (covering variable
cost)
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• Buyer Based pricing
• Based on Volume
• Frequency of purchase
• Geographical location of customer
• List Pricing (Regulated Pricing for middlemen)
• Recommended control dealer price
• Leads to customer satisfaction
• Helps fight competition uniformly
• Consider freight, Govt levies, taxes and other
• costs of dealer

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• Policy on Discounts
• Wholesaler, Retailer discounts
• Turn over discount
• Selective product discount
• Geographical pricing Policy
• FOB ( Free on Board) (ex works,factory)-
• used to heavy products industrial products.
• Delivered prices ( postage stamp pricing)

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Policy on Price leadership Industry leader sets
price and other follow Example egg, cement,
petrol etc Product line Pricing Multiple product
pricing structure Planned enhancement Mutual
advantage pricing Competitive bidding
policy Closed tenders Open tenders
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PERSONAL SELLING STRATEGY
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• Kind of Sales force
• Size of the Sales force
• Appropriate deployment

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• Competitive settings and personal
• selling strategy
• Pure Competition
• Monopolistic Competition
• Oligopolistic Competition
• No Direct Competition

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• Pure Competition
• Many players
• No specific player dominates market
• No single player influence demand supply
  Marjory
• No Govt Regulations on pricing or supply
• This hardly exists. If it does-personal selling
  strategy should be
• Better Service to the customers(Presale Post
  Sale)
• Organizational efficiency
• Cost Management

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• Oligopolistic Competition
• Smaller groups of companies join together
• They know each other
• Makes difficult for new entrants
• Competitors activities are closing watched
• Personal selling helps in maintaining dealer co-
  
• operation, servicing distribution network
• Personal selling effectively uses promotional
• strategy

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• No Direct competition
• No Direct Competition, but have in direct
• competition through substitutes
• They would capitalize no competition situation
• Price skimming or penetration strategy used.
• Should aim at vast coverage of market
• Personal selling should use pricing and
• promotion strategy to its advantage.

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Personal Selling Strategy Based on Whom to
Sell What to Sell How to Sell
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Product Market analysis-Case-III Example for
a Cellular company
Identify Whom,What and How to sell?
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Determining the size of the sales force Work
load method Decide assignment base Classify
based on time needed / calls needed Determine
calls per day/ month/ year Divide it by
assignment base to arrive at number of Sales
personnel needed.
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Sales Potential method Productivity based
system Consider average productivity Divide the
target with productivity to arrive at sales
persons needed Incremental Method Based on
expected increase in cost/revenue per sales
personnel added Cost Benefit compared and
decision is taken This is a good cost conscious
and result oriented method
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SELECTING SALES PERSONNEL
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SELECTION PROCESS
Employment Offer
Physical Examination
Testing
Reference Check
Interview
Formal Application
Expences

Preliminary Interview
Rejection
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• Formal application form
• Capture necessary information
• Should be structured
• Should have
• Personal Information
• General Information
• Employment record
• Educational background
• Health
• Self assessment
• Declaration
• Allocate score to each set of information based
  on the desired job responsibility

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• Interview
• An interview can judge
• Common skills
• Personal appearance
• Manners
• Attitude towards selling
• General life
• Reaction to obstacles
• Personal impact on others

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• Other Dos in an Interview
• Read the application form
• Mark queries
• Plan a strategy for interview
• Present a ppt in case of large group
• Use un-freezing questions
• Maintain pleasant rapport

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Who should interview? Branch head with his
assistinitial interview Shortlist candidateReg
head or sales chief How many in the
panel? Depends on type of job Institutional
Sales- Panel recommended Direct Sales Sales-
Sales Manager with his Assist/ HR Rep
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• Interviewing the spouse
• Check for frequent travelling
• Check for working hours
• Check for independence

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• Interview Techniques
• Patterned Interview
• Have a structured interview
• Job based questions
• Non Directive Interview
• Open ended questions
• Seek for narration of personal info, job exp,
  skills, strengths, weakness
• Judge based on responses

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Interaction (Stress Interview) Simulate Selling
Environment Set up situation to understand
psychological behavior Need trained
psychologists Rating Scales method Rate each
response in scale of suitability for
job. Physical appearance Impact on
others Communication Experience Attitude Objection
s handling skills This eliminates gender, creed,
religion bias.
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• Credit checks
• Check on credit rating
• Check for large debts
• Check for Financial Responsibility
• Psychological tests
• The following test can be conducted based on
  type of selling assignment
• Sales aptitude test
• Attitudinal tests
• Test for creativity
• Industry knowledge
• Habitual characteristics
• Interest areas

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• Role Play on Interview
• Each team will have to conduct an role play based
  on discussion on the following aspects of
  selecting a front line sales personnel for
  service Industry (Telecom Industry) for handling
  corporate sales.
• The non-directive interview should have the cover
  the following aspects
• Put the candidate at ease
• Find attitude towards selling
• Ability to handle objections
• Candidates positive attitude
• Customer friendly attitude
• Rate on the above parameters and give your
  feedback. Evaluation would be done on the
  Interviewer.

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PLANING SALES TRAINING
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• Need for Training
• Training is a means to supplement and share
• experience
• Reduces initial turn over of Sales personnel
• It replaces the old method of swim or sink
• Types of Training Programs
• Trg for new recruits
• Re orientation training for existing sales
  executives

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Following are aspects involved in Training
programs A -- Aim C -- Content M --
Method E -- Execution E -- Evaluation
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• Aim
• Define job specifications
• Trainees background and experience
• Sales related Marketing policies
• Content
• Product knowledge
• Sales Technique
• Market Information
• Company profile

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• Method
• Lecture method
• Personal Conference/ meeting
• Demonstration method
• Role Playing
• Case Study method
• Gaming
• On the job Training
• Programmed Training (self Interactive CD/
  Internet)
• Correspondence Course

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• Execution
• Who should conduct program
• Initial Trg Program
• Continuing Sales Trg
• Trg for the Trainers
• Training philosophies
• Conditioned method
• Non conditioned method

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• When should the Trg be conducted?
• After some time in field
• Before and after field experience
• First Trg and then field
• Module of on the job Trg in Trg program.

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• Timing of continuing Sales Trg (Reorientation
  program)
• New product Development
• Low productivity
• New Market segments approach
• New Product application
• Product Development
• Training site
• Centralized
• Branch level
• Other venue

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• Manuals Training Aid
• Text of the content of Trg program
• Case study
• Exercises
• Product information
• Company profile
• Objection handling tips

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Evaluation of the Training Program
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MOTIVATING SALES PERSONNEL
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• Most of us need motivation periodically
• Few are self starters
• What is motivation?
• It is goal directed behavior
• The amount of effort a person is ready to spend
• in planning, identifying prospect, sales calls,
  etc
• The needs and desires to achieve target

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• Motivation help from Management
• Management needs to continuously motivate sales
  personnel
• Create a good motivated sales TEAM
• Reasons for De-motivation
• Due to the nature of Sales job
• Exhilaration and depression is mixed
• Turn downs
• Frequent failures
• Different customer profile
• Face the brunt

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• Role conflicts
• Conflicts of identification with customer company
• Advocator of customers point of view
• Repeated familiar situations
• Same product
• Same Territory
• Same Customers
• Maintain feeling of group identity
• Make them feel a part of the team
• There is a need to be seen as performer in group

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A.H Maslow, Motivation and Personality theory
Self Actualization Needs
Esteem Needs
Belongingness Social Relationship
needs
Safety and Security Needs
Basic Physiological Needs
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• Achievement Motivational Theory (Self motivated
  people)
• They like problem situation and like personal
  responsibility in finding solutions
• Tend to set attainable goals
• Want feedback on how they are doing
• Can be found by (TAT )Thematic Apperception Test
• They are self driven
• They need right environment to perform

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• Motivation and Communication
• We need to establish communication with Sales
• team
• They could have a real of an imagined problem
• Sales Personnel need freedom of expression
• Interpersonal contact
• Meet Sales personnel often personally
• Identify Business or personal problems
• Arrange conferences, Regional meet to hear their
• problems

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• Motivational interviews
• Meet Sales personnel face to face
• Find out their individual need fulfillment
• Gather information bit by bit
• Probe to motivate
• Written Communication
• Keep the Sales team informed
• Letters
• Bulletins
• Industry information circulars
• New developments
• Performance charts
• Top selling Sales personnel list

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SALES BUGETTING
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• Budgeting
• Important tool for Revenue and cost control
• Prepared for calendar or financial year
• Further broken down into (monthly, quarterly
• yearly)
• Corrective action needs to be taken
• No sales worth enough with no profits
• Monthly Budget monitoring a must
• Paves the road for profitable management of
• business
• Budget vs. Actual to be compared variance
  identified

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General Budget Heads Sales Collection Sales
Marketing Expenses Employee cost Production
cost Over Heads/ Operation costs Depreciation Inte
rest Cost Profit value/ percentages
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Budget Format
Quarterly Budget
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Arp 02 May 02 June 02 Ap-June Total
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SALES TERRITORIES
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What is Territory Allocation? Sales Territory
is grouping of customers and prospects assigned
to an individual Sales personnel
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• Advantages of Territory Allocation
• To achieve better Market Coverage
• Helps fight competition
• Economical routing possible
• Helps in Time Management of the Sales personnel
• Easier for repeat follow up
• Control Expenses
• Reduces Travelling costs
• Client servicing cost lowers
• Cost per call ration falls

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• Helps in Evaluation of Sales Personnel
• Territory specific market potential chalked out
• Actual vs potential can be compared
• Local conditions can be considered
• Contributes Morale of the Sales Personnel
• Convenient for Sales personnel to manage
• Reduces Travel fatigue factor
• Avoids inter Sales personnel disputes on accounts
• Finds more time

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• Co ordination of Personal Selling and Advertising
  Promotional effort
• Helps to keep his customers informed on
• promotional plans
• Can have establish feedback on promotion easily
• Territory specific promotions can be planned.
• Effective Database management
• Helps maintain and update Territory specific
  database
• Sales performance territory wise
• Customer behavior Territory wise

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• Geographic Territory Allocation
• Basic shapes of Geographical Territories
• Road wise
• Pin Code wise
• Industrial zone wise
• Major Road and landmark wise
• Major parts of the city
• City wise
• State wise
• Region wise

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• Territory Allocation Based on Type of Business
  (partly Geographic)
• B2B
• B2C
• B2BC
• Trading Area
• Industrial area
• Industrial Traders
• Residential Area
• Commercial Complexes

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• Territory Allocation Based on market Potential
  (Non Geographic)
• List all prime segment based in descending order
• of Priority
• Capture database of Segments
• Obtain exact numbers in each segment
• Estimate sales potential based on past
• performances in each segment
• Match the profile of Sales personnel and area.

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• Estimating Target for Sales personnel
• Estimate number of Potential customers
• Pin down assignment base for individual Sales
  personnel
• Fix conversion percentage for each segment of
• the assignment Base
• Project average order Value
• Covert to Sales Target for each Territory

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• Rules
• Estimate potential target for area and not Sales
  personnel
• This logic will help in changing Territory if
  needed
• The next Salesmen takes over unachieved part of
  Territory