SETTING PERSONAL SELLING OBJECTIVES Obj set in

SETTING PERSONAL SELLING OBJECTIVES

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

Case on Personal Selling Objective- Case-1 A credit card company is Planning to set it’s 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

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

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

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

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

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

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

Time Series Analysis Similar to past Sales Projections but takes following into consideration • Long Term trends • Cyclical Changes • Seasonal Variations • Irregular Fluctuations

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

EFFECTIVE SALES EXECUTIVE

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

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.

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.

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

SALES RELATED MARKETING POLICIES

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

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

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

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

Policy on Distribution Intensity • Mass distribution • Selective Distribution • Exclusive agency distribution

PRICING POLICY Competition Related Pricing Matching the competitor’s pricing Pricing above competitor Pricing under Competition Pricing related to costs Full cost pricing Promotional Pricing Contribution pricing (covering variable cost)

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

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)

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

PERSONAL SELLING STRATEGY

• Kind of Sales force • Size of the Sales force • Appropriate deployment

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

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

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

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.

Personal Selling Strategy Based on Whom to Sell What to Sell How to Sell

Product Market analysis-Case-III Example for a Cellular company Identify Whom, What and How to sell?

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.

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

SELECTING SALES PERSONNEL

SELECTION PROCESS Employment Offer Physical Examination Testing Reference Check Interview Formal Application Preliminary Interview Rejection

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

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

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

Who should interview? Branch head with his assist—initial interview Shortlist candidate—Reg head or sales chief How many in the panel? Depends on type of job Institutional Sales- Panel recommended Direct Sales- Sales Manager with his Assist/ HR Rep

Interviewing the spouse • Check for frequent travelling • Check for working hours • Check for independence

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

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 Objections handling skills This eliminates gender, creed, religion bias.

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

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 • Candidate’s positive attitude • Customer friendly attitude Rate on the above parameters and give your feedback. Evaluation would be done on the Interviewer.

PLANING SALES TRAINING

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

Following are aspects involved in Training programs A -C -M -E -E -- Aim Content Method Execution Evaluation

Aim • Define job specifications • Trainee’s background and experience • Sales related Marketing policies Content • Product knowledge • Sales Technique • Market Information • Company profile

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

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

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.

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

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

Evaluation of the Training Program

MOTIVATING SALES PERSONNEL

§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

Motivation help from 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

Role conflicts §Conflicts of identification with customer company §Advocator of customer’s 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

A. H Maslow, Motivation and Personality theory Self Actualization Needs Esteem Needs Belongingness & Social Relationship needs Safety and Security Needs Basic Physiological Needs

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

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

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

SALES BUGETTING

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

General Budget Heads Sales Collection Sales & Marketing Expenses Employee cost Production cost Over Heads/ Operation costs Depreciation Interest Cost Profit value/ percentages

Budget Format Quarterly Budget

Arp 02 May 02 June 02 Ap-June Total

SALES TERRITORIES

What is Territory Allocation? “Sales Territory is grouping of customers and prospects assigned to an individual Sales personnel”

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

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

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

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

Territory Allocation Based on Type of Business (partly Geographic) • B 2 B • B 2 C • B 2 BC • Trading Area • Industrial area • Industrial Traders • Residential Area • Commercial Complexes

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.

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

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