ContentsContentsContentsContents Introduction to Sales Management Selling Skills

8/14/2019 ContentsContentsContentsContents Introduction to Sales Management Selling Skills

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ContentsContentsContentsContents

Introduction to sales management

Selling skills and selling strategies

Selling process

Managing sales information

Sales Organization

Management of sales territory

Management of sales Quota

Recruitment of sales Force

Training sales force

Sales force motivation

Sales force compensation

Evaluation of sales force

Sales promotion Strategies, Characteristics, application, planning & designing

1. Sales Management

Introduction and basic concepts

Sales management is a professional & scientific procedure to plan & implementSales. Organizations-small or big, selling something or the other for survival &Growth. It could be product like steel, shampoo, toothpaste or services likeAirline, hotel, insurance or Ideas like patriotism, religion or concepts like

familyplanning or destination such as India, Swiss or persons ( politician, sportsperson, actor)

Sales Management Evolution

Sales management is as old as human civilization. A sales persons were not heldin high esteem by the society. The Roman meaning of sales person was cheaterIndia w as great destination for traders and resellers in the medieval age forcarpet, spice, jewellery. British came to India to expand their business andtrade. Yankee peddlers in US carried clothes, spices from one part to another.


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Pheriwallas in India-moved from village to village with sarees, dress material andspices. Baniyas were known as trading communities in India who established storesand started storing goods. In the19thcentury peddlers persuaded buyers to buytheir products and as competition grew buyers had choice which called formodification of products, prices & services. This led to the emergence ofManagement of territories, generate profits & retain customers in the 90s

John Henry Paterson Father of modern sales management. He was the first one to

refine selling techniques. He printed and distribute to his sales persons the bestsales approach and asked others to follow it .He assigned exclusive salesterritories & sales quotas in order to stretch their efforts. He also held salesmeetings for training and socializationToday numerous changes with strategy & Technology adaptation, the sales person isnot just an order taker but a Consultant to customers Solve customers problems Retain customers( it costs 5 times more to create a new customer than tosell products & services to an existing customer low lying fruits )

Sales Manager manages multiple stakeholders viz. customers, suppliers ,sales

force and also top management

Marketing Concepts Customer do not buy products & services merely for the utility value but forobtaining value higher than what is embedded in the physical productSuccessful companies- Cared for the customers- Offering products and services better than what is available in the market

Marketing Concepts

Production concept: customer prefer prod widely available &higher value at lowercost

Product concept: prefer product with high quality & TechnologySales concept: buy only on persuasion motivate them to buy ( vacuum cleaner,Insurance)Marketing concept: create, deliver& communicate better value proposition throughmarket offerTake care of social need as well: fulfill customer satisfaction & societys wellbeing

Role of sales management:

Maintain good customer relationship Managing profitability to the firm Building brand valueThe best market program may fail if Sales Force is ineffective & poorly managed

Sales man- functions as a delivery boy to a creative person

Sales manager not only manages sales but man management

Types of personal selling


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Technology: online service, order cycle linked to payment ( eg Maruti linked toGurgaon, Hallmark barcode etc)

Diversity: Diversity in experience, background, culture of sales personnel,harassment free work place

Global ethical issues: maintain ethical norms of commercial success.

2. Selling skills & selling strategies

Selling is one of the most difficult and challenging profession in the modernworld. Success in selling determines the fate of the organization.Of the many resources available the most important one is Human resource. Salespeople represent the company to the customer. If they are equipped with therequired skills and have a desired aptitude for selling they contribute to theachievement of higher organizational goals. Selling is more stressful job.Adequate skills help overcome these difficulties.

Skills & aptitudes: essential for achieving higher organizational goals

Effective Selling skills:

Improve company image Achieve companys long term business objectives

Sales skills take sales person towards growth path & life carrier

Sales skills are achieved through training & practice

Selling & buying styles

Vary depending upon the buyers capabilities to pay, quantity of purchase, abilityto take risks etc.

Innovators : Buy overnight, impulsive buyer

Laggards: cautiously buy after seeing the innovators

Government buying: low price without care on quality

Quality conscious organizations: price no bar but insist on better quality

Sales Tasks & functions

An effective Sales person requires various skills. Listening function (doubtsquestions, apprehensions).Information discrimination function ( to giveinformation on existing product new products which are likely to come in themarket ) Negotiation & bargaining function ( when no list price is available orthe list price is available ability to bargain for better deal) Problem solvingfunction (customers do not want products but solutions to their problems)


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If Sales Person doesnt have these skills he will not be able to close the salesproperly. He requires Maintenance selling the art of servicing existing account&(sales service Executive) Development selling- meets potential customers & buildssales ( Business Development Executive )

Communication skills

Verbal communicationGood vocabulary, ability to perceive & interpret verbal, nonverbal clues tounderstand customer objections, quality of voice, truth of word, empathy avoidanceof jargons

Nonverbal communicationsFacial expression, body language, personal appearance, posture, gesture, eyecontact, space distancing

Some of the barriers to listening are bias ,partiality, prejudice, pre judgment.The sales manager should not bring his own problems. Depersonalize listening anddecrease emotional impact.

Conflict management skills

Goals are different in each level of the organizations & conflict is a natural andinevitable outcome in a group

Frustration and aggression major cause of conflict power ,status, level ofhierarchy major source of conflict

Conflict management can be resolved through one to one mutual discussion &negotiations or through representation between 2 parties or via third partyintervention

Negotiation skills

Someone else has what you want & you are prepared to bargain for it and vice aversa. Attempt by 2 parties to achieve mutually acceptable solution- doesntresult in winner- loser. Negotiation can be managerial negotiations or IndustrialNegotiations. Negotiations done where there is no list price .Retail counters havepredefined price tag while bulk selling involves negotiations

In Every bargaining 2 parties are involved either to minimize the loss or togain profit

Problem solving skills

Sales person not just an order taker but a problem solver & a consultant to thecustomers

Define the problem (Sales Person, Sales Officer, or customer)


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Generate alternate solution (brain storming, remove mental blocks)Decide the solutions (prioritize problem, arrive at general solutions, functionalsolution and specific solution) Implement the solutions (approval & cooperationfrom other members of the group)

Evaluate solutions (measure it up thro qualitative/quantitative method )

3. Selling Process

Issues & steps involved in selling process

Every step in the selling process vary depending on the kind of product orservices that is being sold, the stage of product in the product life cycle and

the nature and speed of innovation.

In mature industry sales person has to face more objections on price, emergingsector like IT adaptability of the technology to the relevant work environment. Inretail selling demonstration efforts are less significant and in business tobusiness selling demonstration of products and its functions are important. Inhigh tech consumer products demonstration and consumer education play a greaterrole. Solution and service selling demand relationship for a longer period

Selling process


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Duties of Sales Persons vary in different selling situation

Fundamental duty of SP is to provide product & service info to the customer

SP works as a source of market intelligence

Being close to customers, SP possess info about customer preference,switching behavior & demand pattern

SP helps the organization in forecasting territorial redesign, collectingcompetitor information

SP locates & identifies the prospects, Makes sales presentation Closes a call Follow up with existing customers measures success & customer satisfactionlevels.

Every selling process involves 90% of customer handling strategy and the salespresentation is only 10%

Prospecting:

Process of identifying potential buyers. Sales person distinguishes prospects fromsuspects. Stage of prospecting has 3 set of customers

Lead customers : Need & desire to buy but inadequate purchasing power

Prospect customers: They are the buying units, have current demand, getsubstantial benefit

Qualified customers: Ability to buy exists but need further persuasion

Pre approach before selling:

Develop strategy by collecting customer data combine with product attributes. Themore he is knowledgeable about the customers behaviour & requirements, the betterequipped to do the presentation. Develop different selling strategies for the

price conscious, negotiating type and the intellectual ones

Sales person comes in contact with the potential customer & makes efforts toinfluence them for a favorable decision. Seek appointment. Get customer attention,generate interest.

Makes a sales presentation giving product unique selling points and probing forfurther information. Attract customer attention, create interest and arouse desireand build conviction


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Handling customer objections:

Customers make objections after or during presentation. They are mere excuses fornot buying or to say I am not yet ready for the buying. Sales persons duty is toremove all doubts and provide proofs. Satisfy his needs

Closing sales:

Never close a sale urging the customer to buy immediately.In case the product is under scheme or for a specific time, explain the period ofavailability etc first.

Follow up action :

To generate additional leads form satisfied customer an for repeat purchase followup is essential.

Given below is the ICICI bank model from prospecting stage to follow up

4. Managing sales information

Sales information is like circulatory system in the human body. Helpsorganizations to plan & make appropriate business decisions. Helps Sales Managers

to analyze current market situation, sales persons performance and to buildcustomer data base, reward system by HR & forecasting. Most important use of salesinfo is - forecast Market demand

Information flows in the organization both horizontally and vertically so thateverybody in the organization gets relevant information to aid and to take betterbusiness decision. Sales information helps Sales Manager to assess sales persons,forecasting, devise compensation plan etc.

Importance of forecasting


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Success of business depends on how the forecasting is done. Supply & value chainmanagement depends on demand pattern. Procurement can be canalized as per demand.Raw material & inventory control during production processIf forecast is not proper. High inventory, increased cost of product. Lowinventory- short supply, loss of revenue and customer

Forecasting ProcessStep1: Determine objective ( Rs. sales / Units sales)

Step2: Determine dependable(unit/value) independent variables ( market factorsthat has an influence).

Step3. Forecast procedures & methods for analyzing based on assumptions

Qualitative method:

Method of forecasting purely based on judgment either of experts or a collectivejudgment of a knowledgeable people in the industry.

Expert opinion method: used for forecasting future demands of the product. Serviceof expert in that area such as marketing professional. important member ofdistribution channel (distributors and dealers) professional bodies likeindustrial associates may be asked

Delphi method: Forecasting on a likely time period of occurrence. A group ofexperts and a coordinator selected. Experts give their written opinion / forecastindividually to the coordinator. Coordinator processes and compiles results andrefers back to panel for revision

Sales Force composite method: The sales force comes up with the forecast

Survey of buyers: Surveying potential customers and their intention to buy & levelof customer demand

Historical analogy: Forecast the demand for a product or service where there isno past demand data. Product may be new but company must have marketed othersimilar products. Analysis between 2 products and arrive at the forecast for thenew product

Quantitative method:

Test Marketing: Take representative samples from select and extrapolate data fornational level forecast

Time series: collect past data for future forecast. Useful when market forces arestable.

Trend projection : what has happened in the immediate past will continue to occurin the immediate future)

Other Methods

Nave method: simple method - sales of future period = sales of previous period


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Graphic method: direction of trend based on past year data. The trend linepredicts the future.

Semi average: data divided into 2 parts with equal no. of years

Moving average: Average value of a no. of years and the trend. Averaging will havelesser fluctuations

Exponential smoothing method: weighted moving average of all past data. Previousyears data gets greater weightage over the 5 year data.

Regression method: average relationship between 2 variablesDependant variable ( sales ) & independent variable ( population, field forcesize, income etc.) ie. If population increases sales increase and visa versa

5. Sales organization

Sales organizations are structural entities to execute a combined sales planMutually agreed business goals with clear structure, roles, responsibilities,duties, rights for each person, group & dept are well defined.

It is a vehicle for achieving goal, higher sales, M.S. & customer loyalty.

Formal authority & responsibility of various employees working under it and thefunctions carefully planned & coordinated.

Upward downward communication for sales related decisions and serves as aunified contact point with customers

Organizational principles

Creation of Strategic Business Units for better coordination, function & service

Span of control refers to the no, of sales staff & subordinates under thesupervision of Sales manager

Narrow span of control: more layers & supervision & fewer levels of supervision in

the case of broad span of control.

Centralized - selection, recruitment, territory allocation& supervision atcorporate level

Decentralized responsibility rests with field SMMany organizations follow both - Training, recruitment (De Centralized)

Customer service( Centralized)

Organizational design


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Sales Manage is a representative of Top management in the chain of command divisional, district & branch heads to assist the Sales Manager

Line organization Organization by geographical specialization(one man show)

VP MarketingPresident / owner

NSMVP sales

Div Managers (E/N/W)5 Sales Persons

RSM

DSM

Sales staff

6. Management of sales territories


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Sales Territory- group of present & potential customers assigned to an individualSales Person group or dealer, defined on the basis of geographical boundaries.

Poor territory management leads to opportunity loss lost to competitors and alsopoor forecasting and allocation of quota leading to poor achievement and demotivation of sales person

- Has direct bearing on companys sales & profitability- Improper territory management- high cost, loss of sales to competitors- Helps in better sales planning & effective operational control

Management of sales territories Advantages

Ensure better market coverage Effective utilization of sales force

Efficient distribution of work load among Sales Persons Convenient way to evaluate performance of Sales Person Control over direct, indirect cost of sales function Helps mgrs for better control & monitor sales, measurement Better understanding of customer needs, loyalty & personal rapport, quickdisposal of complaints Effective utilization of marketing resources

Territory may not be required for products like insurance, FDs and otherinvestment products ( relationship selling )

Highly technical products like computers etc. reduce the scope of territory

Size of the territory: based on demand & nature of product, mode of physicaldistribution, government regulations (tax etc.) density of populations & level ofcompetition and transportation and communication.

Allocation of sales territories

Sales Manager should consider uniform allocation & coverage

Avoid duplication of efforts (2 Sales Persons covering same area)

Specific time period to assess performance

Every Sales Person should have an equal distribution of opportunities &

responsibilities for correct evaluation

Designing factors:

Size of the organization level of competition in each product category No. and quality level of product in the portfolio Territory redesigning when necessary when product line increases Merger and take over ( redesigning is necessary for better contro)

Territory design


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Charts, maps, geographical /Topographical /demographical data, Transportation,communication, settlement pattern, spread of retail outlet, Trading areas economicfactors, consumer buying habits, & normal trading pattern, Competitive position,sales potential, present & prospect customer on the basis of age, sex, likes,dislikes, location of SP in term of market accessibility and family proximity,territory shape& traveling time.

7. Management of sales quota

Sales Quota are target that a sales person tries to achieve within a specificperiod of time in order to contribute towards organizational goals. The processinvolved is develop plans, convert objective into targets, implement plans and

evaluate results.

Sales quotas are managerial device for defining & stimulating sales efforts,expectation of top management expressed in volume or value for a specific futureperiod. It is c companys expected market share assigned to sales person in eachterritory, branch, distributor, selling agent of dealer

Importance of sales quotaTo motivate sales people and link it with reward systemTo receive feed back on their performance through the achievement of quotaTo help weaker one pay attention to their knowledge & skillsTo learn from high performers the basic elements

Principles of Quota settingThere is no specific formula available to be drawn from the market, taking intoprevailing conditions in each territory and flexibility keeping the marketcondition and competition in mind.

Concept of SMARTSpecific, Measurable, Attainable, Realistic and Time boundSpecific- clear and concise, leave no doubtMeasurable- measure performance in terms of volume or rupee valueAttainable goals are realistic goals based on market facts

Time bound- short term, long term ( weekly or monthly, quarterly of annual)

Procedure of setting QuotasProcess built on one to one discussion between Sales manager and Sales personDemocratic way motivate SP to achieve itFill in individual goal setting formsConferencing with each sales person discuss together create a win win situationthrough several meetings.Prepare written summary of goals mutually agreed upon


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Types of sales quotas

Sales volume quota - determine what amount and what period ( annual broken down )

Value quota determine the value to be achieved in a specific period. This isdone to protect the price fluctuations

Points quota fix the points at say 1000 & SP achieves through combination ofdifferent product mix.

Sales budget quota SP not only achieves desired sales volume but to controlexpenses and gain profits

Sales activity quota In addition to direct sales SP has to perform some nonselling activity (eg. in insurance continuous prospecting to develop new business

Combination quota of both. Target (1000 units ) + 100 prospects + bring back 50lost customers

Method of setting sales quota

Base on past sales forecast: Organization sets total forecast for entire marketand breaks down the same to territories and individual SPs.

Quota based on past sales : add an arbitrary percentage to previous years sales toarrive at the current years sale.

Executive judgment: no info available about the market . sales manager relieson past experience for making future predictions

Quota based on sales peoples judgment: Ask SP to set the quota as he is familiarwith his territory.

8. Recruitment and selection of sales person

For many organization it is only a filling up vacancies

For successful organizations its planned process where scientific principles ofmanagement are utilized

Sales job is stressful attrition rate is high. Requires ability & aptitude

Hiring process is costly. Frequent recruitment adds up to companys cost

Therefore , company should be careful in selection process

Hiring process


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Step1 HR planning stage: decide on hiring objectives & the no of SP for theparticular period of time

Step2 Recruitment stage: Decision made on identifying best source & pool ofcandidates for selection

Step3 Technique used to select the right candidate

Step 4 Socialization: Orientation towards the Organization

A sales person is on the front end of the organization and represents company tothe customers. Effective recruitment & induction improves the organizations image

Planning for recruitment:

Starts with analysis of annual turnover of a company to arrive at the manpowerforecast. Forecast determines no of sales person required by the organization.Once the hiring objective is determined, sales manager determines the number andtype required.

Strategic position analysis: determines the qualification & experience of theapplicant required. It is a procedure that describes the way sales job is to beperformed 7 the skills & abilities to perform the job.

On the basis of this Sales manager evaluates the Sales Persons history and dividesthem into 3 categories ineffective, effective and over performing

Turnover: refers to the average % of sales force that leave the organization inthe given period of time.

Job analysis: Gathering and organization of information concerning the duties &responsibilities of a specific job

Job qualification & Job description : refers to skills ,aptitude & knowledge &personality traits required to perform the job successfully- serves as selectioncriteria for best talents

Sales force recruitment

Recruitment : process of generating a pool of qualified candidates for aparticular job

Source: internal - within the organization, existing employees, employeesreferrals. external - ( Industry, agent, campus etc)

Selection of sales person

Collect data base of candidates to be selected Assess if candidate meets qualification for specified job Select applicant most likely to perform the job

Procedures: blank application, personal / group interview ,discussion, referencechecks, physical examination ,psych test, intelligence, personality, aptitude &skills, appointmentSocialization: the new recruit is introduced to the work environment, job and


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territory. He passes through various stages expectations, faces reality, seeksfurther information and finally feels part of the organization.

Training

The Sales Manager should exploit talents of the new recruits and utilize theirservices with effective trainging for increasing the

Objective of sales training

To improve performance of SP

To meet various challenges(environmental, compensation)

Guidelines for various steps involved in selling- prospecting to closing sales

Improve performance, morale & achieving goals

Training process

Training need assessment ( organizational, task level & individual level)

Design & conduct of a Training .Program ( class room, on the job, off the job,role play, actual work setting)

Evaluation of Training program (assess effectiveness & ROI)

Training methods:

Direct teaching, visual support, participative, conference, seminars, discussions,role plays, case studies, fishbowl, workshop, transcendental Analysis

Sales Force Motivation

Motivation Stimulation to increase efficiency achieve higher goals

Motivation and satisfaction achieved through compensation& reward ( eg circusanimals)The sales managers job is to constantly motivate his team to meetcommitments. Motivation is an inspirational process and the sales persons pulltheir weight to give their loyalty to the organization.

Performance(P) = Ability (A) x Motivation ( P = A x M )


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Importance of Motivation

Retain talents & reduce attrition rate

Energizer of behaviour leads to positive attitude to achieve individual &organizational goals(Berger paints during festive season incentive trips)

Sales persons push hard to achieve targets

Principles of Motivation

Sales Manager derives the principle after analyzing the sales personsexpectation from the job, motives behind their functioning

Eg. Berger paints offered incentive of Goa, Singapore and US prize trip for 10lac, 20 lac and 40 lac achievement and during festive season. Sales persons pushhare to achieve more than what has been targeted for.

Security: Every motivation plan should aim to provide sense of security to thesales person ( Glenmark Performing beyond target get company bonds andsecurities)

Achievement: Sales person should know in advance achievement he will have from themotivation program. (LIC crorepati scheme )

Approval: Look for social approval. Sales manager appreciates & praises his goodwork.

Loyalty: Motivation leads to interpersonal relationships and high amount ofloyalty towards the organization.

Leadership : The Sales Manager being a good leader himself develops more leadersin the long run

Human behaviour: Sales Manager treats SP as a human being with emotions andaspirations, mutual respect and value his suggestions for decision making.

Theories of Motivation:

Other theories

Alderfers theory:People dont move up and down in a hierarchy of needs. It is possible for more


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that on set of needs to be achieved at the same time. Satisfaction leads toprogression & frustration leads to increased importance for lower needs.

McGregor theory of X & Y:Theory X : most people prefer to be directed. Not interested in assumingresponsibilities, not ambitious

Theory Y : Dynamic view of individual. Individual having growth and developmentpotential. People are not inherently lazy or unreliable. Can be creative at workif motivated. Management should know how to tap potential through motivation

Z theory of William Onchy: Integrate individual & his life with whole organizationto produce efficient results ( Japanese vs US ) Z theory great stress is laid onthe long term employment which contributes to enhancing employees morale

Equity theory: Each Sales Person measures himself against a comparison person orsomeone in comparable sort If comparable person is treated well, the sales personsfeels he is treated fairly and equitably.

Sales Force Compensation

The most important motivating factor- pay structure for the sales person

Objectives of Sales compensation plan

To attract quality sales people

To improve productivity level of existing SP Optimize sales efforts by Sales Persons Retaining quality manpower & reduce attrition rate

Effective compensation plan

Fair wages & regular flow of incomeCompensation plan should be linked to efforts and performanceNo uniform way of designing compensation plan. Organizations to take variousaspects into consideration such as type of work, nature of product, Sales Persons


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age, qualification, experience etc

Type of compensation

FinancialStraight salary, straight commission, Bonus + incentive,Salary + incentive, drawing acc + commission, profit Sharing

Non-financialPromotions, recognition, personal development, medallion, certificates, crorepatischeme ( LIC)Fringe benefits (medical, retirements, stock option, gratuity, pension,reimbursementsPerks ( car, driver, housing) sales contest, incentive trip

Steps in designing compensation plan

Determine compensation objective: Target, achievement, customer, call etc.)

Determine major compensation issues( industry structure, competitors etc.)

Long /Short term compensation plan

Clarity in communication of plan & mutual benefit without bias

Appraise the compensation plan periodic reviews & relationship of compensationplan with attrition rate

Evaluation of sales force

Performance appraisal

Crucial part of evaluation, helps in promotion, reward & recognition, quality &quantity of work done. Employees behavior on the job - good - bad average

Relative method: compare performance with that of others

Absolute method: SM makes judgment based on sales volume, revenue etc.

Trait based: Reliability, honesty, loyalty not performance

Outcome based: amount of sales, number of products ,unit /value, profitability

Behavior based: Number of calls / working days, sales activities

Sales Promotion


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Promotion is a comprehensive term covers entire gamut of Advertising , publicity,public relations, personal selling and sales promotion

Sales promotion : part of promotion restricted to direct inducement on a shortterm basis given to a customers on trade so as to stimulate purchase of a productof a service.

Pro active: To gain additional market share or revenue To expand the target market To develop favorable consumer experience with the product To add extra value to the product & develop brand franchise

Reactive: In response to competitors move When excessive inventory piles up To generate short term revenue When decision is to discontinue product of close down business

Objectives of Sales promotionTo create seasonal demand / check fluctuations in saleTo reduce inventories before financial year closingTo increase stockholding of old / slow moving brand before introduction of newbrandsTo encourage repeat purchase or deflect customer attention from price increaseTo motivate sales person ,dealer & retailerTo increase store traffic and shelf space

Sales promotion fills the gap between advertising & personal selling bycoordination & supplementation of these 2 activities. Ales promotion acts at elevels

Consumer : consumer promotion ( free gifts, samples, price off etc)Dealer & distributor : trade promotion ,free goods, display contest, pop materialsAt Sales Persons level: Sales mans contest, bonus ,sales tallies etc)

Sales promotion & consumer behaviorConsumer behavior is based on conditioned behaviorClassical conditioning: Stimulus ----- response (Pavlovs food bell---salivation)Instrumental conditioning: response --- reinforcement ( If behavior is reinforcedit is more likely to be repeated in future

Attribution theory : consumer adapts various approaches to explain their ownbehavior and that of others

Self perception: favorable brand attitude base on the past behavior Object perception: Judge quality of a brand on promotion by the event Other persons perception: asks why about the action of other person

Consumer price perception:The list price and the promoted price should be hi enough to be noticed ( Rs. 50on 3000 is not noticeable promotional price)

Consumer decision making:Starts with need to purchase the product. Sales promotion is to remind the


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customer that he needs the product. Awaken the latent demand / need for theproduct ( . Exchange offer, interest fee installment)

How are sales affected by Sales Promotion?

Brand switching: Encourage the customer to purchase the promoted brandRepeat buying: Induce customer to buy the same brand again in future by rewarding

and reinforcingPurchase more: Purchase more quantity than their immediate need ( D Mart )Increasing category expansion & consumption: Sales person stimulates demand hycreating new occasions for purchase or increased consumption (eg. Milk maid caneswith 2 recipe booklets )

Sales promotion design:

Promotional choice: Singly of in combination ( consumer, trade, Sales person)Product choice: Entire product range or select items High priced or low priced, onproduct with high contribution or low

Choice of market area: National or regional programs( regional programs to protectbrand form competitor moves )Promotional time, duration & frequency not advisable when retail shelf is fullof competitors brand. Seasonal product at the right season

Sales promotion tools and techniques

Price deals: reduce the price & the customer saves money on purchase. Stimulatecustomer to try a new product. Encourage new uses to try existing product orencourage customers to increase purchase quantity, multiple units

Discounts : Defensive ---- to protect form competition

Offensive ----- to increase sales volume & market share

Prize pack deals: Bonus offer, banded packs, buy one get one free etc

Refund and Rebate: Part or in full ( Maruti rebate one model if you buyanother, Gillette Buy one model and get entire amount deducted on the value ofanother brand )

Coupons: Through print media, direct mail, product package or through retailerReach suitable target audience to reduce wastage ( sport, or womens magazines

Contests: Write slogans, choose name etc (consumer, electronic items )

Premiums: gift given to consumer for a purchase ( eg. Computer magazine with CDdisc free)

Scheme selection and support:

Scheme must be novel and innovative and benefit must reach the consumerUnscrupulous dealers and transport bottlenecks might hamper scheme.Product availability during the entire scheme period is a must. Hence proper


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forecasting and sourcing is requiredShould take into confidence the trade channel and sales personsSupport the activity through advertisement, teaser mails followed by writtentestimonialsFollow up : Market assessment, competitors moves, reminder ads, additionaldeployment of Sales persons would further enhance the promotional activities

Consumer level contests:

Contest should be simple, clear and unambiguous. Media advertised supported bytrade and sales persons

Trade level contests:

Motivate trade to support brand more than push, carry large inventory and usePoint of publicity material more effectively and build buyer seller relationships

Sales rep level:Special incentives to boost morale of sales persons , launch new products,

increase seasonal sale and revive old products.

Sales person in Industrial goods promotion: Dealer meets, vendor meets, Tradeseminars, free domo etc. In pharmaceutical industry Key opinion leader meets,medical conference participation, foreign speakers, symposia, journalsubscription, medical equipments. In service Industry

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