BCOS-186

Personal Selling and Salesmanship

BLOCK

1
Personal Selling and Sales Management

UNIT 1
Introduction to Personal Selling
UNIT 2
Salesmanship
UNIT 3
Sales Management
UNIT 4
Sales Force Management
BLOCK 1 PERSONAL SELLING AND SALES MANAGEMENT

This Personal Selling and Sales Management Course is designed to help you learn basic concepts
and practices of personal selling and sales management in a practical way. This first block
introduces you to the concept of personal selling, the importance and role of salesmanship, sales
management and sales force. This block consists of four units.

Unit 1 discusses the concept of personal selling, nature and importance of personal selling,
diversity of personal selling situations, types of personal selling situations, challenges of personal
selling and changing roles of salesperson.

Unit 2 explains meaning, importance and role of salesmanship, attributes of a good salesman and
types of sales person.

Unit 3 introduces you the concept of sales management, salesmanship and sales management,
difference between personal selling, sales management and salesmanship, and trends in sales
management

Unit 4 discusses about various aspects of sales force management : organising the sales effort,
recruitment and selection , training and development, and compensation.
PROGRAMME DESIGN COMMITTEE B.COM (CBCS)
Prof. Madhu Tyagi Prof. D.P.S. Verma (Retd.) Prof. R. K. Grover (Retd.)
Former Director, SOMS, Department of Commerce School of Management Studies
IGNOU University of Delhi, Delhi IGNOU

Prof. R.P. Hooda Prof. K.V. Bhanumurthy (Retd.) Faculty Members

Former Vice-Chancellor Department of Commerce SOMS, IGNOU
MD University, Rohtak University of Delhi, Delhi Prof. N V Narasimham
Prof. Nawal Kishor
Prof. B. R. Ananthan Prof. Kavita Sharma
Prof. M.S.S. Raju
Former Vice-Chancellor Department of Commerce
Rani Chennamma University University of Delhi, Delhi Prof. Sunil Kumar
Belgaon, Karnataka Dr. Subodh Kesharwani
Prof. Khurshid Ahmad Batt
Dr. Rashmi Bansal
Prof. I. V. Trivedi Dean, Faculty of Commerce &
Former Vice-Chancellor Management Dr. Madhulika P Sarkar
M. L. Sukhadia University, University of Kashmir, Srinagar Dr. Anupriya Pandey
Udaipur
Prof. Debabrata Mitra
Prof. Purushotham Rao (Retd.) Department of Commerce
Department of Commerce University of North Bengal,
Osmania University, Hyderabad Darjeeling

COURSE DESIGN COMMITTEE AND DEVELOPMENT TEAM

Course Design Committee Course Development Team Course Coordinator & Editor
Block 1: Unit 1 Anupama Prof. Nawal Kishor and
Prof. B.B.Khanna, SOMS, Vohra, FMS, Delhi University, Dr. Anupriya Pandey
IGNOU, New Delhi- NewDelhi. SOMS, IGNOU, New Delhi
Block 1: Unit 2 Neha Bhardwaj
Prof. Ajay Pandit, Professor IIM, Indore
(Retired) Faculty of Block 1: Unit 3 and 4 Dr.
management Studies (FMS), Vaishali Trivedi
Delhi University, Delhi
Block 2: Unit 5, 6, and 7
4. Prof. O.P. Wali , Professor, Prof. H.K. Dangi
Indian Institute of Foreign
Trade, Qutub Institutional Area, Block 3: Unit 8,9 and 10 Dr.
New Delhi Meenakshi Sharma, BIT
Block 3: Unit
5. Prof. K.V. Bhanumurthy,
Professor (Retired), University
Block 4: Unit 11 Dr. Arun
of Delhi, Delhi
Mittal, BIT Mesra
Block 4: Unit 12 Dr. Ankur
6. Dr. Ruchi Kakkad, Shaheed
Buddhiraja
Bhagat Singh college,
University of Delhi, Delhi Block 4: Unit 13 and 14 Ms.
Nazia Hasan, Motilal Nehru
7. Dr. Indrajeet Singh Dagar, College, Delhi University
Principal, College of Vocational
Studies, University of Delhi,
Delhi

IGNOU Faculty Members

Prof. N.V. Narsimham
Prof. Nawal Kishor
Prof. Madhu Tyagi
Prof. M.S.S. Raju
Prof. Sunil Gupta
Prof. subodh Kesharwani
Dr. Rashmi Bansal
Dr. Madhulika P. Sarkar
Dr. Anupriya Pandey

MATERIAL PRODUCTION
Mr. Y.N. Sharma
Assistant Registrar (Publication)
MPDD, IGNOU, New Delhi
January, 2021
© Indira Gandhi National Open University, 2019
ISBN:
All rights reserved. No part of this work may be reproduced in any form, by mimeograph or any other means, without permission
in writing from the Indira Gandhi National Open University.
Further information on the Indira Gandhi National Open University courses may be obtained from the University’s office at
Maidan Garhi, New Delhi-110 068.
Printed and published on behalf of the Indira Gandhi National Open University, New Delhi, by the
Registrar, MPDD, IGNOU.
Laser typeset by Tessa Media & Computers, C-206, A.F.E-II, Jamia Nagar, New Delhi-110025
UNIT 1: INTRODUCTION TO PERSONAL SELLING

Structure

1.0 Objectives
1.1 Introduction
1.2 Personal Selling
1.3 Characteristics of Personal Selling
1.4 Types of Selling Situations
1.5 When to Use Personal Selling
1.6 Different Roles of Personal Selling
1.7 Advantages and Disadvantages of Personal Selling
1.8 Objectives of Personal Selling
1.9 Diversity of Personal-Selling Situations
1.10 Process of Personal Selling
1.11 Let Us Sum Up
1.12 Key words
1.13 Answers to Check Your Progress
1.13 Terminal Questions

1.0 OBJECTIVES
After studying this unit, you should be able to:
 describe personal selling, its characteristics and types;
 explain advantages and disadvantages of personal selling; and
 discuss objectives and process of personal selling.

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1.1 INTRODUCTION

You have read about 4Ps of the marketing mix and one of them is Promotion. The ultimate
purpose of promotion is to communicate with consumers to persuade them to buy and hence
contribute to company’s sales. It is also referred as promotion mix or communication mix.
Various tools of promotion mix are: Advertising, Personal selling, Sales Promotion and Public
relations. Out of these, the major elements of communication are: Advertising and Personal
selling.

Advertising is non-personal way to communicate with large number of consumers through mass
media like TV, newspaper, hoardings, radio, digital media etc. to sell the product.
Personal selling is personal communication to sell the product. It is a process wherein
salesperson attempts to sell the products to the customer by interacting with consumers either
face-to face or contacting them through online medium like email, videoconference etc. It
involves direct and personal communication with one or few prospective customers to influence
them to purchase goods and services.To summarize, Personal selling is a part of promotion mix,
which involves person-to-person, two-way communication for the purpose of creating awareness
and selling the product and services. In this unit, you will learn

1.2 PERSONAL SELLING

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According to American Marketing Association, “Personal selling is the oral presentation in a
conversation with one or more prospective purchasers for the purpose of making sale; it is
the ability to persuade the people to buy goods and services at a profit to the seller and benefit to
the buyer”.

Philip Kotler defines “Personal selling is a face-to-face interaction with one or more prospective
purchasers for the purpose of making presentations, answering questions and procuring
orders.”

Nature of Personal Selling

Personal Selling is a two-way communication, in which the salesperson educates the customer
about the features, benefits, price, delivery etc. of the product and apply persuasive skills to sell
the product while handling queries and objections of buyers. The salesperson can customize the
communication according to the requirement of every buyer. Salespeople stimulate consumers to
purchase by matching product benefits with their needs, convincing them about product benefits
and reducing people's inherent reluctance to make purchase decision.

1. Personal selling fulfils the objectives of (i) selling the product and (ii) developing long-
term relationships with customers.

2. B2B and B2C selling: Personal selling is generally used as major element of promotion
mix in B2B selling situations. Whereas advertising is used as major element in B2C
selling situations. Personal selling may be used as minor element in B2C selling and
advertising may be used as minor element in B2B selling.

3. Art and Science: Personal selling is both art and science. It is considered as an art
because salesperson applies the creative abilities in making final sales presentation before
each customer in a unique way. It is considered as a science because salesperson applies
the principles of consumer behavior and stages of selling process as a basis of sales
presentation to persuade buyers for purchase.

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 4. Salespeople may be called as: sales representatives, salespersons, account executives,
sales consultants, sales engineers, field representatives, agents, service representatives,
marketing representatives etc.

5. Offline methods: Salespeople can reach the prospective customers through offline
methods such as face to face meeting or through a telephonic call.

6. Online methods: connecting with customers through emails, social media and other
digital platforms. It may be comparatively difficult to keep the customer engaged and
interested through online methods.

7. Selling and Non-Selling activities: Personal selling may include both selling and non-
selling activities. Activities like finding potential customers, contacting them, making
presentation, and taking sales orders from them are selling activities. Activities like
maintaining records, writing reports, attending meetings, training dealers’ salespeople,
building relationships with customers, providing after-sale services etc. are non-selling
activities.

Growing importance of personal selling

The technological advancements have allowed the interactive contact between buyer and seller to
be made through video conferencing, email etc. Now, it is possible for the companies to apply
personal selling to the customers spread across the globe.
With increase in use of technical aspect in the new products being launched, role of personal
selling is increasing for educating the customers about such new technicalities of the products.
For example, use of micro chips, artificial intelligence, online services etc.

1.3 CHARACTERISTICS OF PERSONAL SELLING

Let us know about the key characteristics of personal selling and how are these different from
advertising.

1. Buyer-seller interaction: In advertising, communication is one-sided, from seller to

consumers whereas, in personal selling, it is two-way communication between salesperson and

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the prospective buyer.
The interaction is not just limited to geographical boundaries as the technological advances have
made it possible to interact through video conferencing, email etc.

2. Direct communication: In advertising the message is conveyed in non-personal manner

through mass media like TV, newspaper, hoardings, radio, digital media etc. but in personal
selling, salespersons convey the messages personally to the consumers.

3.Push strategy: In personal selling, salespeople present the product and information about it
and persuade consumers to buy it. It is referred as ‘push strategy’ as the product is pushed
towards consumers. In advertising, consumers get drawn towards the product through ads which
capture their attention, get them interested and persuade them to buy the product. It is referred as
‘pull strategy’ as consumers get drawn towards product.

4. Customization and personalization: In advertising, message sare standardized i.e., same

message is conveyed to all the consumers through ads wherein the salesperson can modify the
message to make it suitable to each of the prospective buyer.

5. Human element: Person engaging in personal selling serves as the personal connection
between a company and its customers. So, along with verbal communication, it also includes use
of non-verbal communication of body language, tone, appearance etc. in conveying messages to
the buyer.

6. More engaging: The real time sales presentation and demonstration makes it more engaging
and experience for buyers.

7. Quick response: Direct communication in the case of personal selling, allows the seller to
gauge the response and purchase intention of prospective buyers. It helps seller to keep adapting
the sales talk accordingly, which may positively influence buyer’s purchase intention.

8. Customer feedback: Two-way communication makes it possible for the buyers to express the
feedback about product, price, its comparison with competing products, etc. This information

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from prospective and existing customers can be useful for the company for making
improvements in the marketing strategy.

9. Cultivating relationships: It is possible for the seller to use personal interactions with buyers
for developing and strengthening relationships and building goodwill for the company.

Check Your Progress A

1. State whether the following statements are True or False.

i. Personal selling is one of the promotion tools in the promotion mix.

ii. In personal selling, meeting with prospects can be face to face or through online
media.

iii. Personal selling function may involve non-selling activities also.

iv. Personal selling can be used for both B2B and B2C markets.

2. Fill in the blanks.

i. Personal selling is a ………strategy.

ii. Personal communication includes verbal and ……….communication.

iii. Flexibility of personal selling makes it possible to ………sales presentations.

1.4 TYPES OF SELLING SITUATIONS

Salespeople work in variety of selling situations, which can be classified broadly as follows:

1. Based on type of consumers:

Existing customers and New customers

Selling to acquire new customers who have not been using the product or have been
using competitor’s product. It is called developmental selling situation. It is a more

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 challenging job as compared to selling to existing customers.
Existing customers are targeted for repeat orders from existing customers of the
company. It may also involve maintaining relationships with old customers to continue
selling them. It costs lesser money and efforts to sell to existing customers. It is also
called service selling situation.

2. Based on type of market:

Business to Consumer (B2C) and Business to Business(B2B)

In B2C, salesperson sells the product to consumers for their personal use and in B2B,
salesman sells to other companies, which will be using the product for use in
manufacturing of goods or carry out their business operations (such as office supplies), or
for resale to other consumers, such as wholesalers or retailers. In B2B, salesperson tries
to meet rational buying criteria of the customer, wherein B2C, selling can be done on
emotional or mix of emotional and rational buying criteria.

3. Based on type of product:

Consumer products and industrial products

Personal selling plays major role in the communication mix for selling of industrial
products to other companies. It may involve frequent visits of salesperson, negotiations,
greater emphasis on developing relationships with customer companies. In the case of
consumer non-durables like shampoo, bread, salesperson hands over the product required
by the customer and there is not much scope for use of persuasion for such products.
Comparatively, role of salesperson is more in selling of consumer non-durables like TV,
Laptop, car to customers. Salesperson makes presentation, demonstrates product, answers
queries, persuades customer for closing the sale.

1.5 WHEN TO USE PERSONAL SELLING

Personal selling is not an appropriate tool for every product or service, and its use also depends
on marketing strategy/business model of the company. In general, use of personal selling is more

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in B2B market and use of advertising is more in B2C market. when their products or services are
highly technical, specialized, or costly—such as complex software systems, business consulting
services, homes, and automobiles.

In addition, there are certain conditions that favor personal selling:

1. Product situation: Personal selling is relatively more effective when a product is of a

high unit value (expensive office equipment-digital Xerox machine),highly technical
product (complex software), when a product is in the introductory stage of its life cycle
and requires consumers to be educated (robotic machinery), when it requires personal
attention for consumer needs (real estate), or when it requires product demonstration or
after-sales services (manufacturing machinery).

2. Market situation: Personal selling is appropriate when a firm has small number of large-
size buyers (selling machinery to textile manufacturing companies only) or when selling
is small/local market only (selling tiffin box facility to nearby customers only). Also, it
can be used for selling to middlemen when a company is using an indirect channel of
distribution for selling the products to consumers (PepsiCo selling its products through
wholesalers and retailers)

3. Company situation: Personal selling is best utilized when a firm cannot afford to have a
large and regular advertising budget.

4. Consumer behavior situation: It is suitable to use personal selling when it is a valuable

and infrequently bought product by the customer. For example, customers like to interact
personally at car showroom before buying a car. Personal selling is also appropriate to
use when consumers require more persuasion like in selling of interior design services.

Check Your Progress B

1. State whether the following statements are True or False.

i. Personal selling is used more in selling of industrial products.

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 ii. Role of personal selling is more in selling of consumer non-durables in comparison to
consumer durables.

iii. Acquiring new customers is called service selling.

2. Fill in the blanks.

i. Personal selling is more suitable for selling of ………priced products.

ii. Personal selling is more suitable for selling to …………. sized customers.

iii. Personal selling is more suitable for selling of ………….products to the customers.

1.6 DIFFERENT ROLES OF PERSONAL SELLING

Wide variety of selling situations call for different selling strategies and changing role of
salespersons. These are broadly grouped as:

1. Communication strategies: Role of salesperson mainly involves with information about

product, its price, delivery, service strategies to help prospective customer take the
purchase decision.
2. Persuasion strategies: In salesperson’s role, there is more emphasis on convincing the
prospective customer by matching the product benefits with need and satisfaction of the
customer for persuading the customer to buy.
3. Negotiation strategies: In some situations of selling to other companies, negotiating the
product specifications to be provided and other terms like prices, after sale-service etc.
become more important. For example, if a manufacturing ingredient is to be supplied
regularly to a company over a longer period, the negotiations between buyer and seller
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 become more important as it will be influencing costs for buyer and profits for seller over
extended period of time.
4. Client-profit planning strategy: In industrial selling of high priced, technical products,
there is sharing of information by the buyer company with the salespersons about its
different areas of operations, future plans, R&D, finance, logistics etc. Then, the
salespeople along with higher authorities suggest and develop products within suitable
price, which can help increase the profits of the client.

1.7 ADVANTAGES AND DISADVANTAGES OF PERSONAL SELLING

1.7.1 Advantages: The advantages of the personal selling are as follows:

1. Two-Way communication: In personal selling, it is possible to have communication

from seller to buyer and from buyer to seller. Salesperson can provide information to the
prospective customer, ask questions from the customers and customer can also raise the
queries and get them clarified.
2. Flexibility in communication: The significant advantage of personal selling is its
flexibility to customize sales presentations for different customers and different
situations. Salesperson can tailor their presentation to fit the needs, motives, and behavior
of individual customers. A salesperson can also go on assessing the customer’s reaction
while making sales presentation and immediately adjust the message to facilitate better
connection between the message and the needs of the customer. Thus, it helps in
increasing the probability of getting the sales order.
3. Sharp focus on target customers: Through personal selling, effort to sell is focused on
potential customers only. Thus, it minimizes wasted effort whereas it is not possible in
advertising. Ads reach much larger number of audiences which may include many people
outside the target market of the product. A lot of time and money gets wasted in
advertising that reaches many people outside the target market (who are not likely to
buy). In personal selling, the salesperson identifies the potential customers who have the
need, ability and desire to buy the product and focuses selling effort on them only.
4. Personal attention and detailed presentation: Needful information is gathered about
every prospect to plan and make sales presentation. Every customer is given personal

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 attention and it is possible to give detailed demonstration about the product, answer
customer queries. For example, salesperson gathers data about size of the company,
priority of needs, purchase department policies, type of customers of the company etc. to
develop right presentation for the company.
5. Instant feedback: Salesperson gets instant feedback from customers about their intention
to buy or not to buy and may also know the reason for not buying.
6. Measuring effectiveness: Another advantage of personal selling is that it is easier to
assess the results of time and money spent in personal selling efforts. Results can be
measured in terms of number of sales calls made, number and size of sales orders,
expenses incurred, and profits earned. So, measuring sales effectiveness and determining
ROI are easier for personal selling than for other promotion tools.
7. Getting customer’s attention: The one-on-one interaction of personal selling makes it
easier to get customer’s attention, to respond to questions and to motivate the customer to
buy. However, all the people getting exposed to an ad (watching TV, reading newspaper
etc.) may not pay attention to the ad or may forget it or may not get persuaded enough to
buy.
8. Performing additional tasks: Through personal selling, it is possible for the salesperson
to perform multiple tasks. For example, in addition to selling, a salesperson can perform
non-selling tasks like: provide after-sales service, collect payments, and collect customer
feedback for the company.

1.7.2 Disadvantages of Personal Selling: The disadvantages of personal selling are as follow:

1. Higher costs: One of the disadvantages of personal selling is high cost due to hiring,
training, compensation costs of salespeople, selling expenses of travel and lodging of
salespeople. Though many companies try to control costs by paying salespeople through
sales commissions alone, thereby paying them only if they generate sales. However,
commission-only salespeople may indulge in persuading customers aggressively to get
the sale without paying much attention to their need satisfaction. It may result into bad
word of mouth and loss of repeat sale for the company. Another way to reduce costs is
that companies can use telemarketing, direct mail, and online communication with

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 qualified prospects to reduce the costs of personal selling but their effect in getting
customers’ attention and persuading them for sale can be much lesser.
2. High turnover: Another disadvantage of personal selling is the issue of high turnover
rate among salespeople due to its problems of travelling, no fixed hours, stress of
obtaining sales, problem of handling difficult customers etc. As a result, it increases the
cost of hiring and training new salespeople. Also, companies face the difficulty of finding
suitable good quality salespeople.
3. Lack of standardisation in communication: Another weakness of personal selling is
that salespeople of a company may differ from each other in their communication with
customers. As customers differ from each other, salespeople vary in their final
communications made to them. Even the same salesperson may differ in handling of
similar customers each time due to differences in circumstances. As a result, there may be
variations in results, and it may also influence the coordination of selling efforts with rest
of the marketing mix.
4. Salespeople may vary in their abilities and motivation: Members of sales team may
vary in their levels of motivation leading to variations in their selling efforts. For
example, salespeople may vary in their ability to make the desired number of sales calls
each day or in their willingness to put enough efforts to prepare for presentations etc.
Sales manager needs to put in extra efforts in managing each member of the sales team to
get the best from them.

Check Your Progress C

1. State whether the following statements are True or False.

i. It is not possible to measure the results of selling efforts of salespeople.

ii. In personal selling, effort to sell can be focused on potential customers only.

iii. There is standardization in communication in personal selling.

iv. Members of a sales team may vary in their abilities and motivation.

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1.8 OBJECTIVES AND FUNCTIONS OF PERSONAL SELLING

There is wide variety of functions that are performed by salespeople across different types of
products, type of customers, types of selling strategy. For example, a salesperson selling large
machinery or a salesperson selling small stationary items of companies will be different in their
specific selling functions. Travel Company selling tickets to individual walk-in customers or
selling to big companies will differ in its selling functions. These functions contribute to
achieving of personal selling objectives of the company.

Ultimate objectives of all the functions/activities of sales department is getting sales, growth in
sales and to contribute to profits of the company. At specific level, these objectives can be
divided into two categories: quantitative and qualitative. whereas qualitative objectives are long-
term.

The qualitative personal-selling objectives are set for the long term and contribute to achieving
long term company objectives. These objectives are related to selling strategy of the company
and thus carried over from one promotional program to the next one. Quantitative objectives are
set for the short-term and are adjusted from one promotional program to the next one. Let us
learn them in detail.

1.8.1 Qualitative Objectives

The qualitative objectives are as follow.

1. To search out prospects: For any company to grow in its sales and market share, it is
required to keep adding new customers. Thus, it is important objective of personal selling
to keep finding new prospects for putting selling efforts to convert them into new
customers.
2. Stimulating demand: Salespeople interact with them to perform activities such as:
informing and educating them about the product. They answer their questions and

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 convincing them about how the product matches with their need and how its benefits will
satisfy their needs in order to stimulate demand for the product.
3. Informing, educating and guiding: Salespeople may be assigned with objectives to
perform the task of helping prospects identify their needs, providing information to create
awareness about the new products and services, educating the potential buyers with
respect to using the product, guiding them about benefits of products. It may also include
other services like installation, repairs and maintenance that can be made available to
buyers.
4. To serve the existing customers: The objective of personal selling effort of salespeople
can be to keep in touch with existing customers to serve them in different ways. It can be:
for after-sale services, training of company’s employees about using new software, to
provide technical assistance, to check on their need satisfaction by company’s product
etc. Meeting them regularly and to continue serving them helps to increase customer
loyalty. It costs less to serve the existing customers to get the sales as compared to
acquiring new customers for getting the sale.
5. To do the entire selling job: When personal selling is the only tool being used in the
promotion strategy of the company, its salespeople may be assigned with objective of
performing all the sales related functions from locating prospects to selling the product,
serving existing customers, providing after-sale service and follow-up. They may also be
assigned with other non-selling tasks like for after sale service, meeting regularly to
maintain relationships with customers, collecting payment etc.
6. Developing long-term relationships with customers: Salespeople may also be assigned
with the objective of putting the required effort for developing and maintaining long-term
relationships with customers. Activities like meeting and communicating regularly with
existing customers, to arrange for any after-sale support required by them etc. can help to
retaining the customers for long. It is important for getting repeat orders from the
customers. Serving existing customers costs less to the company as compared to
acquiring new customers. Thus, developing long-term relationship with customers is
more profitable for the company. For example, getting repeat sales for office stationery
from existing corporate customers or renewing of maintenance contracts from existing
customers.

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7. To collect and report market information: Salespeople work in the field and are in
direct contact with the customers. Hence, salespeople may also be assigned with the
objective of gathering information about customers’ feedback regarding company’s
products and competitors’ products to help the company make improvements in its
marketing strategy.
8. Strengthening brand image, building company goodwill: Salespeople through their
interactions with customers can help with the objective of building and improving brand
image. For example, Sales people may emphasize it as a prestige product, and may link
it with certain lifestyle of customers. Salespeople can also contribute to building
company’s goodwill through their efforts like company’s policies to care for customer
satisfaction.
9. Help in launching new products in the market: In certain situations, instead of using
advertising for informing prospects about the new product, salespeople may be assigned
with the objective of introducing new product to the prospective customers. For example,
salespeople may be given the objective to inform farmers about new brand of fertilizer
and educate them about its benefits. He/she may compare it with competing products to
show it as a better solution. Customers may buy it through retailers.
10. Help in establishing market positioning: salespeople through their interactions with
customers can communicate about the brand positioning of the product to prospective
customers. For example, salespersons can stress in their communication about better taste
of water from their brand of RO water filter system as compared to other brands. Thus,
personal selling may help with the objective of communicating its positioning on better
taste of water.
11. Provide support to middlemen of the company: Large number of companies sell their
products through indirect distribution channel involving middlemen like wholesalers,
retailers, agents etc. Such companies often employ salespeople to serve these middlemen.
Salespeople are assigned with various objectives of performing functions aimed at
middlemen to help increase company’s sales. Company’s salespeople may be assigned
with objectives to perform functions like:

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 (i) To maintain enough stocks of the product, providing enough shelf space for the
product, desired display of the product, advertising and sales promotional materials like
point of purchase display material and guidelines on how to use it, collecting payments
etc.

(ii) To keep customers informed of changes in the product line like addition or deletion of
product item or modification of a product in the product line.

(iii) To guide customers in selling optimum mix of products from the company’s product
line.

(iv) To provide technical assistance and training to middlemen for selling the products if
company products are technical in nature.

(v) To provide assistance to middlemen by guiding them on ‘how to sell’ its products.

1.8.2 Quantitative Objectives

In addition to the qualitative objectives mentioned above, certain quantitative objectives are also
assigned, which are short-term objectives, to personal selling. These objectives are as follow:

1. To obtain a specified sales volume.

2. To obtain sales volume in specified numbers of different products for selling proper mix
of products to contribute to profit objectives.
3. To keep the personal selling expenses within specified limits.
4. To secure and retain a specified share of the market.
5. To obtain some number of new customers of given categories.

1.9 Diversity of Personal-Selling Situations

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Consumers buy wide variety of products and services leading to different kinds of selling
situations and selling jobs. Each kind of selling situation requires different kind of selling style
involving different selling activities. These are namely:

1. Delivery salespersons: Primary job of salespeople is delivering the products to

customers to make the sales. For example, vegetable vendor, person going to residential
areas to sell bread, milk, delivering Pepsi to retail shops etc. Such salespeople need to be
regular in visiting customers and be courteous to them. They do not have much scope of
using selling skills to influence the customers.
2. Inside order-taker: Retail salespeople behind the counter are inside order-takers.
Customers visit retail stores with an intention to buy certain products and salespeople
need to serve customers with their requests. Customers are free to choose any product.
Salespeople have little scope of using their selling skills in influencing their purchase
decisions by suggesting other products and brands to them.
3. Outside order-taker: salespersons visiting wholesalers and retailers to take sales orders
and support them in their selling activities. Salespeople call on retailers to motivate them
to keep and sell their products. Their primary role is to take requests for stocks. In
addition, salespeople can educate middlemen about new products and use some selling
skills to persuade them to keep it in their stores. Salespeople may also need to inform
middlemen of any changes in products, prices etc. For example, asking the retailer to
keep and sell new brand of chips or taking order for supplying of soft-drink or chips,
which are already being sold by the retailer. The Salesperson will keep on updating them
about the new products as well as existing products.
4. Missionary salespeople: Salesperson's role is to inform and educate those individuals
about benefits of the products, who influence buyers in their purchase decision for the
product. Missionary salespeople do not take purchase orders and do not call on ultimate
customers. Goal of missionary sellers is not to complete a transaction and get the sales
volume. This is a form of indirect selling as they do not make a direct sale to consumers.
For example, a pharmaceutical representative might call on a physician to provide the
doctor with clinical information about a medication’s effectiveness. The salesperson
hopes the doctor will prescribe the drug. Patients, not doctors, actually purchase the

17
 medication. Or salespeople of book publisher do not sell books directly to students
instead work with educators to inform them about the books.

5. Support salespeople: These can be: Technical salespeople, Merchandisers, Customer

service salespeople.

Technical salespeople: when a product is highly technical and negotiations are complex,
salesperson need to be technical specialist to provide detailed information to the client,
help in installation, provide training in using the product. For example, sales engineers.
Merchandisers provide with assistance retailers on shelf display, implementing
promotion schemes, ensuring stock levels etc.
Customer-Service salespeople: such people look after maintenance of products and
solve customers’ problems if any, after the purchase of the product.

6. Creative salespeople or order-getters: such salespeople create demand for the

product by using their creative skills. They sell a new product to the customers who do
not know about it or who have no interest in it. They use creative skills for making the
customers aware of their needs and show how the product can solve the problem or how
new product can solve their problem better than from the products they are using and
make sell the product. They get new customers for the company by getting them
interested in the product, making them desire for it and helping them decide to buy it.
There is lot of scope for use of selling skills in persuading the prospects. Such
salespeople may be involved in selling tangibles like vacuum cleaners, digital cameras,
paintings or intangibles like consulting services, insurance policies. This is a form of
direct selling as they make a direct sale to consumers. Such Salespersons require to have
detailed knowledge about the product as well as robust selling and negotiation skills.

Based on above type of Salespersons, different selling styles can be:

18
 i. Door-to-door selling: The Salespersons visit customers at their place to interact with
them and sell the products.
ii. Trade selling: They perform sales and other related functions for customers like retailers,
wholesalers, agents.
iii. Missionary selling: Salespersons educate an individual with the power to influence
buying decision of others to buy a product.
iv. Technical selling: They provide technical advice and look after the technical problems of
the customers.
v. New business selling: They make effort to find and persuade new customers to sell the
products.

1.10 PROCESS OF PERSONAL SELLING

A sales process is a set of steps that a sales team takes to convert a prospect into a customer.
Having a standardized sales process adds structure and accountability to sales activities, leading
to a higher rate of successful sales.

It consists of sequence of steps that a salesperson goes through to sell a product or service. It is:
7-step sales process. These steps are as follow.
 Prospecting.
 Preparation.
 Approach.
 Presentation.
 Handling objections.
 Closing.
 Follow-up.
Now, Let us learn them in detail.
1. Prospecting: Prospect or a potential customer is a person or organization who has a need,
ability, desire to buy a product. Prospecting is the process of searching for prospects.
Objective of prospecting is to find sales leads for making sales call and trying to convert
them into customers. List of prospective customers is generated through various sources
19
 like references, publicly available data, company records etc. The Salespersons have to
make sincere efforts to find out the leads. They must interact with the leads and enquire
about their requirement of products or services. They must try to develop good
impression about himself/herself.
2. Preparing: It involves customer research and planning for presentation. It is collecting
all the relevant information about the prospect like size and location of the clients, their
needs, financial resources, purchase policies etc. It helps developing suitable presentation
for each of the client by focusing on needs important to the client and communicating
relevant benefits to the client. The presentation must be very impressive so that the
prospects may get provoked to think about the products or services.
3. Approach: It is the first contact with the prospective client or opening lines at the
beginning of the meeting for about first two minutes. First impression is important to get
the customer interested in listening to the presentation. Salesperson may start by showing
the product or mentioning the most important problem of the client that match the
product. He may inform about special schemes, discounts, offers, etc. for the customers.
4. Presentation: A well prepared sales presentation can keep the client engaged in listening
carefully. It involves talking/showing about features and benefits of the product, how it
meets the need, demonstrating the product. Contents of presentation should be clear and
credible. The Presentation should focus on the detailed features of the product for which
customers may be interested to know. He/she has to arouse the interest of the customers
about the products.
5. Handling objections: These are questions raised by the prospect which can indicate
barriers to purchase or an unwillingness to buy. It is listening to the concerns of the
customer and answering them and providing solutions wherever possible. The objections
of customers can include objections to prices, products, services etc. For example, the
concern can be competing product being offered at a lesser price, which can be answered
by showing the difference in quality or features of the company’s product. Another
objection can be inability to pay for it, which can be solved by offering installment plan.
6. Closing the sale: It refers to the stage of getting the order from the customer. Salesperson
can first go for trial close in different ways like: by asking for choice in payment method,
selection of model or size or after-sale service plan etc. Answers to such questions can

20
 indicate if the customer is ready to close the sale. If not, salesperson can ask questions to
know the reasons for it and again try to close the sale.
7. Follow-up: After closing the sale, it is important to keep in touch with customers to
know about their satisfaction with the product or to solve the problem if there is any. It
also helps in building relationship with customers and get repeat sales from them.

You will learn about the Sales Process in detail in Block 3, unit 8,9 and 10.

As with any other marketing communication method, personal selling must be: compared with
other promotion tools and evaluated for its appropriateness in achieving promotion objectives
and its profitability as a component of promotion mix. It also must be evaluated for its
contribution to the overall marketing mix.
Once the decision to use it and its selling strategy gets decided, it must be well coordinated with
other elements of promotion mix for maximizing effectiveness of communication strategy of the
company.

Check Your Progress D

1. Fill in the blanks.

i. Potential customer is a buyer who has……………….

ii. Gathering information about the client is done in…….step of sales process.

iii. Missionary salespeople educate the people who can influence others to……

iv. Trade selling is aimed at…………….as customers.

v. Keeping selling expenses in limits is………………. objective

21
 vi. To provide selling support to retailers is ……………objective.

vii. Salespeople can help build…………………….with customers.

viii. Personal selling objectives can be divided in categories namely ……..

1.11 Let Us Sum Up

This unit discusses the concept of personal selling element of the promotion mix. It highlights
that personal selling is a process wherein salesperson attempts to sell the products to the
customer after interacting with them personally either face-to face or contacting them through
online medium. There is direct two-way communication between buyer and seller. Along with
verbal communication, it also uses non-verbal communication of body language, tone,
appearance etc.It is referred as ‘push strategy’ as the product is pushed towards consumers.It has
characteristics of: flexibility of customizing presentation according to the customer, more
engaging, allows for developing relationships with customers, quick response and feedback from
customer.

Salespeople work in variety of selling situations which can be classified broadly as three types of
selling situations based on type of markets, types of consumers, types of products. It is more
appropriate to use personal selling in situations like: B2B selling, high priced product, technical
product, new kind of product requiring educating the customers about it, large and few
customers, for serving middlemen as customers, when company cannot afford to have large
advertising budgets, for high value and infrequently bought products by consumers.

Different roles performed by personal selling for different situations can be: communication,
persuasion, negotiation, client-profit planning strategy. Like other communication tools, personal
selling also has certain advantages and disadvantages. Its advantages include-two-way
communication, flexibility in communication, sharp focus on target customers, personal attention
and detailed presentation, instant feedback, measuring effectiveness, getting customer’s

22
attention, performing additional non-selling tasks. Its disadvantages include- higher costs, high
turnover, lack of standardisation in communication, salespeople may vary in their abilities and
motivation.

Personal selling is used to fulfill qualitative objectives like-to search for prospects, stimulating
demand, to serve the existing customers, developing long-term relationships with customers, to
collect and report market information, to serve middlemen, building relationships with
customers, providing support to the middlemen of the company, strengthening brand image, and
building company goodwill. Along with such qualitative objectives certain quantitative
objectives are also assigned to personal selling, which are short-term objectives. These can be:
to obtain a specified sales volume, sales volume in specified numbers of different products for
selling proper mix of products to contribute to profit objectives, to keep the personal selling
expenses within specified limits, to secure and retain a specified share of the market, to obtain
some number of new customers of given categories. There is vast diversity in personal selling
situations resulting in different selling functions which are: Delivery salespersons, inside- order-
taker, outside- order-taker, Missionary salespeople, support salespeople like technical
salespeople, merchandisers, customer service salespeople, creative salespeople or order-getters.

Process of personal selling consists of sequence of steps that a salesperson goes through to sell a
product or service. These are: prospecting, preparation, approach, presentation, handling
objections, closing the sale, follow-up.

Personal selling must be evaluated based on its contribution to the overall marketing mix. In
addition, it can be very effective when personal selling is well integrated with other elements of
communication strategy,

1.12 KEY WORDS

Promotion mix: Mix of different communication tools, which are advertising, personal selling,
sales promotion and public relations

23
B2B: Selling industrial products and services to other businesses in facilitating manufacturing
their products and services

B2C: Selling products to customers for their final consumption

Prospect: Potential customer having need, ability to pay and desire for the product

Push Strategy: Salespeople present the product or information about it and persuade consumers
to buy it.

Door to door selling: Visiting customers at their place to interact with them and sell the
products.

Inside-order taker: Salesperson behind the retail counter taking customers’ orders

Outside-order taker: Salespersons visiting wholesalers and retailers to take sales orders and
support them in their selling activities.

Missionary selling: Educating people who influence buying decision of others. Like medical
representatives persuade doctors to prescribe and influence the customers to purchase the
product.

Technical selling Providing technical advice and assistance as part of sales job.

New business selling: To seek out and persuade new customers for

24
selling the product

1.13 ANSWERS TO CHECK YOUR PROGRESS

A.1. i. True ii. True iii. True iv. True 2. i. Push ii. non-verbal iii. Customize

B.1. i. True ii. False iii. False 2. i. High ii. Large iii. Small

C.1. i. False ii. True iii. False iv. True

D.1. i. Quantitative ii. Qualitative iii. Relationships iv. Quantitative and Qualitative v. Need,
ability to pay and desire vi. Preparation vii. Buy viii. Wholesalers and Retailers

1.14 TERMINAL QUESTIONS

1. What do you understand by the term Personal Selling and how is it different from
advertising?

2. What are the advantages and disadvantages in using personal selling as a promotion tool?

3. Explain the various qualitative and quantitative objectives of personal selling.

4. Can the same selling style be used in all the selling situations? Explain the diversity of
selling situations.

5. Do you think it is important to use selling process steps in personal selling? Discuss the
various steps of selling process.

6. Suggest why would the use of personal selling be more appropriate for selling the
following products:

25
 (i) Ultrasound machines
(ii) Customized business software

7. (i) What is the type of personal selling used by pharmaceutical companies for selling their
medicines?
(ii) What is the type of personal selling used by companies selling their products through
retailers?

SOME USEFUL BOOKS

Thomas N. Ingram, Raymond W., LaForge, Ramon A Avila, Charles H. Schwepker, Michael R.
Williams.(2018).SELL: Trust-Based Professional Selling, (5th ed.).Cengage Learning India Pvt.
Ltd.

Krishnamoorthy, R. (2015). Personal selling and sales management, (1st ed.).Himalaya

Publishing House

Tracy, B. (2006). The Psychology of Selling: Increase Your Sales Faster and Easier
Than You Ever Thought Possible. HarperCollins Leadership (20 June 2006)
Gupta, C.B. (2017). Advertising and Personal Selling. Sultan Chand &Sons

26
UNIT 2: SALESMANSHIP

STRUCTURE

2.0 Objectives

2.1 Introduction
2.2 What is Salesmanship
2.3 Scope of Salesmanship
2.4 Type of Salesmanship
2.5 Significance of Salesmanship
2.6 Role of a Salesman
2.7 Qualities of a Salesman
2.8 Functions and Duties of a Salesman
2.9 Creative Salesmanship
2.9.1 Characteristics of Creative Selling
2.9.2 Creative Salesmanship Vs. Competitive Salesmanship
2.9.3 Creative Selling Process
2.10 Let Us Sum Up
2.11 Keywords
2.12 Answers to Check Your Progress
2.13 Terminal Questions

2.0 Objectives

After studying this unit, you should be able to:

 Explain the meaning of salesmanship

 Describe the roles and duties of a salesman
 State the scope of salesmanship
 Analyse the different types of salesmanship
 Appreciate the significance of salesmanship
 Discuss an understanding on the functions and duties of a salesman
 Explain the meaning of creative salesmanship
 Differentiate between creative and competitive salesmanship
  Outline the process of creative selling

2.1 Introduction

Traditionally referred to as a “door to door” profession, salesmanship refers to the ability of

an individual to sell a product/service to another individual. In the complex and competitive
world that we live in today, the importance of salesmanship has been consistently increasing.
A salesman today, is one of the key figure in the manufacturing and distribution world.
Accepted as an essential component of the sales and marketing, the importance of
salesmanship ranges from producers to society to consumers. As the famous saying in
marketing goes “consumer is always right”, it is the salesman who helps the consumer in
being right - by assisting in the decision making process and selection of products. In this
unit, you will learn scope, type, significance, role, qualities and functions of salesman.

2.2 What is Salesmanship?

“Salesmanship is a marketing strategy by which a salesman can sell his goods or services to a
person”.W. G Carter defined salesmanship as “an attempt to induce people to buy goods”.
Acting as a bridge between buyers and customers, the main goal of salesmanship is profit
maximization. However, salesmanship is not merely about selling goods. As described by W.
Major Scot, the job of salesman is also to create demand “by demonstrating that the need
does exist, although before his visit there was no consciousness of that need”. G. Blake added
to the above by identifying salesmanship as “winning the buyer’s confidence for the seller’s
house and goods thereby winning regular and permanent customers”.

Salesmanship also represents the seller-initiated efforts offered to prospective customers.

These efforts are complimented with product information and motivate customers to make
favourable buying decisions. A salesman must possess the ability to interact with customers
utilizing different mediums and methods. In this sense, it may also be right to describe a
salesman as a psychologist with a knack for marketing. Salesman is nothing but an advisor
with one customer, a friend to some other customer and a store of all information to others.
Donning these multiple hats, salespersons must therefore be able to adjust their personalities
to suit every type and mood of customer.
Salesmanship is a dynamic element of economic strategy where selling plays a vital role in
industrial profits. As a profession, salesmanship is a glamorous constituent of a capitalistic
economy.

Salesmanship as an Art

It may be apt to describe salesmanship is an art, as it relates to selling a product or delivering

consumer satisfaction. It is an art because:

a) Salesmanship requires the necessary skill set to appeal to the customer.

b) The knack of persuasion possessed by a salesman encourages the buyer to make the
purchase decision.
c) It requires the salesman to possess the art of communication to structure its
interactions with the customer.
d) The salesman must be able to influence the buyer towards the directed product /
service.

Duties of a Salesman

a) Make sales of assigned products or services

b) Perform the assigned duties (including travelling to distant locations for the purpose)
c) Collection of bills related to sales
d) Customer complaint resolution
e) Customer relationship management
f) Develop and maintain firm goodwill
g) Contribute to inventory management
h) Ensure proper reporting – sales made, calls made, services offered, lost customers,
and any other important matters related to either the competition or firm

2.3 Scope of Salesmanship

Salesmanship is not confined to merely making sales, but also includes its ancillary activities
such as repairing, teaching, legal, medicine and so on. At the higher-level, salesmanship also
refers to product knowledge, customer knowledge, training and control, management of sales
department etc. The scope of salesmanship has also been increasing consistently for a firm,
with the advent of new technologies. With more transactions taking place on the internet
today, its scope has been expanding. Persuasive skills are still an important requisite to
salesmanship, as customer interactions go virtual. With sales meetings going online, it is only
the platform that has changed but the approach to salesmanship remains the same.

Salesmanship may be described as a collection of different functionalities at different points

of time. These include,

1. Collection of more information regarding the market.

2. Increasing economic power in various standardized sectors.

3. Growth of technological progress.

4. Enrichment of managerial efficiency.

5. Extension effect on the economy.

Thus, it may be appropriate to say that salesmanship is a specialized craft that does not
include merely sale of products and services. It covers a wide range of activities and there is
still scope of more development in this sphere.

Check your Progress A

Fill in the blanks:

i. The knack of ______________ possessed by a salesman encourages the buyer to make

the purchase decision.
ii. _______________ is an attempt to induce people to buy goods.
iii. With sales meetings going online, it is only the _________ that has changed but the
approach to salesmanship remains the same.
iv. Salesmanship also involves collection of ___________ regarding the market.

State whether the following statements are True or False:

i. The salesman must be able to influence the buyer towards the directed product /
service.
ii. Salesmanship represents the seller-initiated efforts offered to prospective customers.
iii. A salesman does not contribute to inventory management
 iv. The advent of new technologies have had no impact on salesmanship.

2.4 Types of Salesmanship

Depending on the varied roles performed, salesmanship may be divided into the following
categories:

a) Wholesaler’s Salesman

The wholesaler’s salesman is concerned only with the wholesaler. The purpose of this type of
salesmanship is to market the product only to the wholesaler. The role includes: taking orders
from wholesalers, guiding wholesalers to offer credit to retailers, assisting wholesalers in
improving their sales, collect bills and to keep track of important marketing information.

b) Manufacturer’s Salesman

The manufacture’s salesman may be sub-divided into following sub-categories:

 Missionary Salesperson – These salesperson interact with wholesalers, retailers and

consumers to offer and guide them regarding the product / service.
 Technical Salesperson – These salespersons are hired to sell technical products, such
as machines and equipment. These salespersons possess professional training on the
product and are able to guide and help the customer both before and after sales.
 Merchandising Salesman – These salespersons not only sell products but also guide
retailers in terms of in-store product display and arrangement. These type of salesmen
are usually found promoting products, such as, grocery, drugs, apparels, fashion etc.
 Sale Promotion Salesmen – The main job of this type of salesmen is to convince
customers to buy their products. They provide product demonstrations, and also offer
samples to prospective customers.

c) Retailer Salesman

Retail salesman works with the final consumer directly. They can be subdivided into
following categories:

 Indoor Salesman – Indoor salesman works inside a store. These are hired by store
owners to help shoppers make buying decisions.
  Outdoor Salesman – Outdoor salesman work for the retailer by visiting customers and
taking orders. They also facilitate with lead generation for the retailer. Impressions,
interactions with the customers may facilitate generation of lead as well as may evoke
customers to take decision for buying the product.

d) Specialty Salesman

Specialty salesman sells products such as expensive durable goods, furniture, books, house
furnishings, washing machines, automobiles, refrigerators etc. Salespeople of this kind must
master the art of salesmanship. They are representatives of manufacturers who produce
special items.

2.5 Significance of Salesmanship

A salesman is a friend and guide to its customers while a support to its producer. The
significance of salesmanship can be described based on the following factors:

a) Flexible Tool: Salesmen present their ideas tailored to customer needs and desires.
Based on a judgment of consumer reaction, a salesman can adapt its sales approach
and make adjustments to sales presentations in real-time. This offers producers a
flexible tool in hand to reach to prospective customers.
b) Minimum Wasted Efforts: The efforts of a salesman are directed only towards
prospects. It does not waste its time on those who it does not find suitable to sell the
product. Therefore, salesmanship is an activity characterized by minimum wasted
efforts.
c) Results in Actual Sales: Salesmanship is a tool used by organizations to complement
their other promotional activities. However, while advertising and promotions can
only lead to demand creation, it is salesman who converts the demand into actual
sales. By clarifying consumer doubts, resolving their issues and making product
presentations, it is the sales person who convinces the customer to make the purchase.
d) Offers Feedback: A salesman is a medium for companies to engage in two-way
communication with the customer. A salesman not only offers product information to
the customer, but also provides knowledge to the company about tastes, habits and
attitudes of prospective buyers. The company may also decipher the strength of its
marketing program based on the feedback received from the salesman.
 e) Advantageous to Consumers: Salesman is of great help to customer as well. The
salesman is the primary source of information to the customer regarding new products
in the market as also for existing products. Further, salesman also helps customers in
complaint resolution, identifying products suited to their needs and clarifying any
doubts.

2.6 Role of a Salesman

Selling forms an important component of the marketing function in organizations.

A salesman performs the following roles:

a) Sales Lead Conversion

Salespersons act as a bridge between consumer needs and products. In this sense,
salespersons close deals by introducing consumers with additional product information
helping the customers form a connect between their needs and the product. Direct interactions
with customers offers salespersons the advantage of tailoring their sales pitch and offerings to
suit customer need. This forms the most attractive aspect of a salesperson to the consumer, as
they view salespersons as product experts, building credibility and also converting leads or
prospects into customers. Sales persons should possess detailed knowledge of the products
and impressive presentation style for facilitating decision making of customers for buying the
product.

For example, at a car showroom, the salesperson asks questions to its customers regarding
their personal life including size of family, typical daily routine, etc. This helps the
salesperson gain knowledge on what type of car would be suitable for the customer. It can
then offer information to the customer about various cars available and convert the prospect
into customer.

b) Business Growth

Salespersons play a critical role in building loyalty and trust between customers and
businesses. During sales interactions, it is the salesperson who plays a crucial role towards
converting a prospect into customer. Also, it is based on salesperson’s interactions that the
customer recommends the firm to friends and family, thereby aiding in business growth. The
sales person must have sound convincing skills to persuade the customers to buy the product.
Sales persons should make their best efforts to satisfy the customers. The satisfied customers
may recommend other persons to buy the product. Such customers will play significant role
in the growth of business.

c) Customer Retention

Customer retention is a very challenging task. Selling is a personal interaction. Excellent

salespersons are not those who make sales, but those who also make a long-lasting impact on
their customers. Long term customer relationships further lead to repeat customers increasing
the brand reputation and WOM.

Sales follow-ups are an important tool of customer retention utilized by the salesperson. This
gives the salesperson an opportunity to get customer feedback and engaging in resolution of
customer issues in a timely and professional manner. For this purpose, the sales persons have
to interact with the customers after the completion of the sale. If there is any grievance, sales
person must make sincere effort to resolve it so that the customer feels good about the
product. Once the customer is satisfied, he/she may be loyal towards the product and brand.

2.7 Qualities of a Salesman

Mayer & Greenberg (2006) in their article published in the Harvard Business Review
identified for a good salesman to be possessing the following qualities:

 Ability to Feel: Empathy was identified as a crucial quality towards becoming a good
salesman. A salesman cannot sell without the ability to gain feedback from customer
through empathy. A salesman must be able to sense the reactions of customers and
should be able to adjust its responses based on those responses.
 Need to Conquer: The drive to get the sale through is another important quality of a
good salesperson. Closing the sale must act a drive to enhance a salesperson’s ego.
Also, failures must act as triggers to greater efforts that bring success.
 Need for Balance: This calls for several combinations of empathy and ego drive. In
this sense, a salesman must possess qualities that display its ego towards closing the
sale yet also contain empathy towards customers’ needs and perceptions.
Other qualities that describe a good salesman are:

a) Good Listener: Good salespersons treat customers to be equally responsible for the
talk. While the salesperson possesses the capability to communicate, it must also
provide time for customers to respond.
b) Resilience: A good salesperson should be able to accept failures without despair.
Rejections should not act as lows but as motivators for future.
c) Confidence: A good salesman is confident, in control of its surroundings and
informative. Confidence reflects in the manner one presents itself and their views.
d) A good salesperson must possess the ability to analyse customer motivation and
behaviour.
e) A good salesperson must possess complete information on the product, and should
also be able to demonstrate the product to prospects.

Check your Progress B

1. Fill in the Blanks:

i. ___________________ interact with wholesalers, retailers and consumers to offer
and guide them regarding the product / service
ii. ___________ salesman sells products such as expensive durable goods, furniture,
books, house furnishings etc.
iii. Salespersons act as a bridge between _________________ and products
iv. Salesmanship is a tool used by organizations to complement their other _________.
2. State whether the following statements are True or False:
i. Sales promotion salesmen convince customers to buy their products.
ii. Retail salesman has an indirect interface with the customer.
iii. Selling is a personal interaction.
iv. The efforts of a salesman are directed only towards prospects.

2.8 Functions and Duties of a Salesman

The following are functions and duties of a Salesman:

 1. Selling: To meet prospects, demonstrate products and to induce prospects to buy.
2. Guiding the buyers: To guide buyers towards products suiting their needs and
requirements
3. Attending to complaints: To attend to customer complaints and engage in grievance
redressal
4. Collection of bills: To collect outstanding bills for sales made
5. Collection of credit information: To collect information on credit-worthiness of
customers
6. Reporting: To send daily, weekly or monthly reports to its firm regarding calls made,
sales impact and services rendered.
7. Organizing: To organize tour programs.
8. Attending sales meeting: To attend sales meeting to discuss marketing problems, sales
promotion activities, sales policies etc.
9. Touring: To undertake regular travel to meet prospects and customers in the assigned
territories.
10. Arranging for packing and delivery: To arrange for packing and delivery of the goods
sold
11. Window & counter displays: To arrange for attractive window and counter displays so
as to induce the prospects to buy
12. Promotion of goodwill: To promote goodwill of the firm in the market
13. Recruitment and training: To recruit new salespersons and give them training.
14. Working with middlemen: To establish direct relations with the middlemen such as
wholesalers and retailers, while collecting marketing information and passing it on to
them.

2.9 Creative Salesmanship

A good salesman creates in customer’s minds the desire to possess the product / service it is
selling. This act of educating the public leading to a desire to possess the goods and services,
while also resulting in an enhanced civilized society is known as creative salesmanship.
Salesmanship applied to good ends is creative salesmanship. With the salesman always
looking for new ideas to reach its prospects minds, the modern salesmanship may also be
termed as creative salesmanship.
Creative salesmanship may also be described as a means to explore new markets for existing
products, to sell new products to customers who do not have interest in or are not aware of it.
The salesman here is required to play an intelligent role by awakening customer interests,
creating desire, answering objections and helping the prospect make up its mind in favour of
the product.

2.9.1 Characteristics of Creative Selling

a) Creation of market for old and new products. Salesman is assigned the task to create
new market for old or existing products.
b) Salesman present facts in an interesting manner so as to generate consumer interest.
c) Sales may take place immediately or after some delay, but time is not a consideration.
d) Emphasis lies on service and utility of the product and incentives like discounts, credit
facilities and home delivery.
e) Focus lies not on the price, but the satisfaction that the product may deliver.

2.9.2 Creative Salesmanship Vs. Competitive Salesmanship

Competitive salesmanship refers to the routine work whereby existing or traditional

tactics are employed. These could also include lowering quality, lowering of prices, and
offering incentives such as credit on liberal terms, extra discount and other concessions
possible.

The differences between creative and competitive salesmanship are summarized below:

Creative Salesmanship Competitive Salesmanship

Sales To create new sales by breaking new To increase sales under existing
Objective ideas. conditions.

Approach to Use of unique and latest ideas. Usual or regular sales tactics
Sales employed.

Results Lays a strong foundation for present Aim at quick sales.

and future sales.

Option of the Focus on creating desire. Focus on increasing and

start maintaining turnover.

Coverage More comprehensive and encapsulate All competitive salesmanship is not

competitive salesmanship as well. creative.

Relationship Builds long term relationships with Competitive forces may not lead to
Building customer with trust as the building long term relationships.
block.

2.9.3 Creative Selling Process

Creative Selling Process

•Prospecting
•Preparing
•Approaching
•Presentation
•Handling Objections
•Closing
•Follow Up

Figure1: Creative Selling Process Steps

The following are the steps to creative selling process:

Step 1: Prospecting: The process of finding and qualifying potential customers is known as
prospecting. This is the foundational step in a sales process. The activities involved here,
include:

 Generating Sales Leads – the likely prospects

  Identifying Prospects – a prospect who indicates need or desire for the products

 Qualifying Prospects – Prospects who possess the authority to decide and have money
to buy the product

Step 2: Preparing: This step entails preparation for the sales call. The steps here include:

 Creating prospect file: names of key people, role in decision making process
 How to approach the prospect: exploring options of first contact
 Establishing objectives: the flow of communication during sales call is based on these
 Preparing presentation: based on objectives of the sales call

Step 3: Approaching: This is the step where a salesperson can make a lasting impression.
Three elements guide first impressions:

 Appropriate appearance
 Salesperson attitude and behaviour
 Salesperson’s opening lines

The prospects may be approached using one of the following means:

 Premium method: Offering the prospect a gift to begin the interaction

 Question method: Posing questions on topics of interest
 Product method: Offering a sample or a free trial of the product for review

Step 4: Making the presentation: A presentation may take many forms, but its purpose
remains the same: to communicate the product message in such a manner that it convinces
the prospect to buy. Two methods of presentation are generally utilized:

 Canned approach: a memorized presentation

 Need satisfaction approach: identify customer needs and create a presentation to
specifically address their needs

Step 5: Handling Objections: The prospect may raise various doubts and objections during
the presentation. Salespersons must view these objections as a prospect’s interest in the
product, and as an opportunity to garner more interest.
Step 6: Closing: This is the step that involves persuading the prospect to make the purchase.
There are several closing techniques employed by salespersons. These include:

 Alternative Proposal Close – Assuming that the prospect has already decided to buy.
 Silent Close – Finish presentation and sit quietly, waiting for the customer to respond.
 Direct Close – Asking for the order directly.
 Extra Inducement Close – Offering the prospect something extra so as to close the
deal.
 Standing Room Only Close: Create an urgent demand of the product to close the deal
quick.

Step 7: Follow Up: Following up on existing sales is an effective means to generate repeat
sales. Before the follow – up a salesperson must ensure that the product has been properly
delivered and the customer is satisfied. An unhappy customer must also be followed up using
appropriate techniques to resolve complaints. The following tactics may be employed at this
step:

 Handle complaints promptly and in a pleasant manner

 Maintain regular contact with customers
 Be appreciative

Check your Progress C

1. Fill in the Blanks:

i. A salesman promotes ____________________ of firm in the market
ii. This act of educating the public leading to a desire to possess the goods and
services, while also resulting in an enhanced civilized society is known as
______________.
iii. In creative selling, focus lies not on the price, but the __________ that the product
may deliver.
iv. ___________________ focuses on increasing and maintaining turnover
2. State whether the following statements are True or False:
i. The salesman may arrange for attractive window and counter displays so as to
induce the prospects to buy.
 ii. Creative salesmanship may also be described as a means to explore new markets
for existing products
iii. Time is a constraint to creative selling.
iv. The process of finding and qualifying potential customers is known as prospecting

2.10 Keywords

Salesmanship: the ability of an individual to sell a product/service to another individual

Wholesaler’s salesman: concerned only with the wholesaler. The purpose of this type of
salesmanship is to market the product only to the wholesaler

Missionary Salesperson: These salesperson interact with wholesalers, retailers and

consumers to offer and guide them regarding the product / service.

Technical Salesperson: These salespersons are hired to sell technical products, such as
machines and equipment.

Merchandising Salesman: These salespersons not only sell products but also guide retailers
in terms of in-store product display and arrangement.

Sale Promotion Salesmen: They provide product demonstrations, and also offer samples to
prospective customers.

Retail salesman: works with the final consumer directly

Specialty salesman: sells specialty products such as expensive durable goods, furniture,
books, house furnishings, washing machines, automobiles, refrigerators etc.

Creative Salesmanship: The act of educating the public leading to a desire to possess the
goods and services, while also resulting in an enhanced civilized society.

Competitive salesmanship: the routine work whereby existing or traditional tactics are
employed.

2.12 Answers to Check your Progress

Check your Progress A

Fill in the blanks:

i) Persuasion ii) Salesmanship iii) Platform iv) Information

True or False:

i) True ii) True iii) False iv) False

Check your Progress B

Fill in the blanks:

i) Missionary Salesperson ii) Specialty iii) Consumer Needs iv) Promotional activities

True or False:

i) True ii) False iii) True iv) True

Check your Progress C

Fill in the blanks:

i) Goodwill ii) Creative Salesmanship iii) Satisfaction iv) Competitive Salesmanship

True or False:

i) True ii) True iii) Falseiv) True

2.13 Terminal Questions

1.) What is Salesmanship? Is it an art?

2.) What are the duties of a salesman?
3.) What does salesmanship encompass? Discuss its scope.
4.) Differentiate between the various types of salesmanship?
5.) How would you describe a good salesman? What qualities must it possess?
6.) What is creative salesmanship?
7.) Differentiate between creative and competitive salesmanship?
8.) Highlight the creative selling process in detail.

Some Useful Books

Whitehead, Harold. 2010. Principles of Salesmanship, Kessinger Publishing

Russel, Frederic A. 2016. Textbook of Salesmanship, McGrawHill.

Cates, M. F. 2015. Seven Steps to Success for Sales Managers, Pearson FT Press.

.
UNIT 3 SALES MANAGEMENT

Structure

3.0 Objectives
3.1 Introduction
3.2 Evolution
3.3 Meaning
3.4. Importance of Sales Management
3.5 Scope of Sales Management
3.6 Types of Salespersons
3.7 Difference between Selling & Marketing
3.8 Sales Management Process
3.9 Trends in Sales Management
3.10 Let Us Sum Up
3.11 Key Words
3.12 Answers to check your progress
3.13 Terminal Questions

3.0 OBJECTIVES

After studying this unit, you should be able to:

 describe the evolution, meaning and importance of sales management;

● discuss the scope of sales management;
● explain the role of sales managers;
● distinguish between selling and marketing; and
● discuss the Sales management process.

3.1 INTRODUCTION

This unit introduces you with the fundamentals of sales management -evolution, meaning and
importance in the business context. You must note that sales is the only function of marketing
that brings in revenue to the organization and hence assumes a key role in the entire scheme
of things. The sales managers use scientific processes to design and implement sales
management program for their organizations. The salespeople act as the linking pin between
the organization and its customers. They are the face of the companies. Thus, it is very
important to organize and direct their efforts both within and outside the companies.
The sales managers create the formal and informal structures for the effective communication
within the sales department. While outside the organizations, the sales managers build and
maintain effective distribution networks for their brands. In this unit, you will learn about the
evolution, definition, scope and importance of sales management. You will also learn about
the different types of salespersons and sales management process.

3.2 EVOLUTION OF SALES MANAGEMENT

Pre industrial revolution era - Prior to industrial revolution, the economic scenario was
well dominated by the small-scale industries whose focus always remained catering to the
needs of the local customers. Manufacturing and selling functions in such a setup were taken
care of by the single person. The prime challenge that small scale businesses faced was to
produce enough to meet the customer demands.Thus, the focus was more on manufacturing
issues and selling was not a problem at all as all the orders were received well in advance of
the production taking place.

Post industrial Revolution - Industrial Revolution that took place in England in the year
1760 brought about some significant changes in the marketing scene for the businesses. There
started mass production of goods in factories with the help of modern machines which in turn
led businesses to hunt for newer markets to sell their produce. The demand in local markets
was not large enough to absorb the huge quantities produced by the factories. Thus emerged
the need for sales to ensure the surplus produce to be absorbed. The other operational issues
which dominated the business scene were that of recruitment of workers in large numbers and
acquisition of fixed assets like building, machinery etc. for which large funds were required
to be raised. Thus, forcing many firms to adopt the corporate form of organization.Since the
magnitude of the operations increased multifold, separate functional departments came into
being like the financial department, manufacturing department, personnel department, sales
department.

The establishment of sales department helped the firms with the problems related to
expansion of their markets. The goods were sold to the small retailers who then sold in small
quantities to the end users. Subsequently wholesalers came into being who purchased in large
quantities to sell in smaller quantities to the retailers who finally sold to the end users. The
emergence of so many intermediaries created the challenge of communicating with end
customers for the businesses.

On the other hand, the marketing function started receiving more importance in the firms
with advertising and sales promotions becoming more complex. The need to separate
marketing from sales function was increasingly being felt. Thus, new departments like
Marketing Research,Advertising, Merchandising etc. came into existence. Inspite of
emergence of separate marketing functions,sales department continue to hold important
position for the businesses as it is the only function that brings in revenue. It is aptly termed
as “Income Centre “of the business organization. Now let us try to understand the meaning of
sales management.

3.3 DEFINITION

Sales Management was originally said to be the function of directing the efforts of the
salesforce of the business. However, in the modern times the broader view of sales function is
found to be more popular with the businesses. Accordingly, the Sales Management is
concerned with development of the sales staff, managing sales related operations and
implementation of sales techniques such that sales targets of the business are accomplished
effectively.

American Marketing Association defines sales management as follows: “Sales Management

is the planning, direction and control of selling of business unit including recruiting,
selecting, training, equipping, assigning, routing, supervising, paying and motivating as
these tasks apply to the personnel of the sales force”.

The definition of AMA focuses on two broad aspects of sales management. First you have to
plan, direct and control selling activities. Second, you have to recruit, select, train, equip,
assign, rout, supervise, pay and motivate the sales force. The definition equates sales
management to the management of sales staff however contemporary sales managers have a
broad spectrum of responsibilities to perform. In addition to managing the sales staff they are
also responsible for developing the company's long-term sales plan, chalking out sales
strategies to be implemented in target markets, implementing sales budgets. They are
responsible for managing omni channels of the company. They scan the marketing
environment continuously to frame the responsive sales strategies.

The sales management function primarily seeks to accomplish three basic functions namely
sales volume, profit maximization and growth. The authority to achieve these three goals is
delegated by the top-level management to the sales management through marketing
management.

3.4. IMPORTANCE OF SALES MANAGEMENT

The significance of sales management as a function is evident from the huge budgets
allocated for the same across the companies. This is because it helps the firm deal with
competition and is thus considered an inevitable part of the business organization. Importance
of the sales management as a function can be summarized in the following points:

1. Attains organizational goals: Sales management helps in achieving predetermined

organizational goals by transforming the marketing plans into actions to generate
profits, meeting customer demands effectively and capturing the market share.

2. Aids in better planning: One of the fundamental tasks of sales management is to

formulate the sales plans, sales budgets and drawing sales strategies so that the efforts
of the salesforce can be well directed towards achieving the common organizational
goals.

3. Maximises the sales: By supporting the establishment of SMART sales plans, the
sales management aids in maximizing the sales and thereby revenue for the
organizations.

4. Fosters strong customer relationships: Sales management urges the salesforce to

attach highest importance to building strong customer ties .The strong ties with the
customers facilitates the brand develop a loyal customer base and increased
profitability.
 5. Optimum utilization of distribution channels: Channels of distribution can be more
optimally utilized by the organization when the sales management is able to identify
appropriate distribution channel. They must take adequate step to resolve the
distribution issues and enhance the smooth operations of the distribution channel.
6. Develops result driven salesforce: Sales management is concerned with not only
recruiting but also training, motivating and compensating the sales staff. The
continuous training, development and motivation drive them to contribute effectively
towards the profits of the firm.

3.5 SCOPE OF SALES MANAGEMENT

Sales is the management function responsible for ensuring that an organization has
sustainable cash flow. For this, sales department undertakes a variety of functions. Look at
Figure 3.1 which shows scope of sales management.

Fig 3.1: Scope of Sales Management

The scope of the sales management has been discussed below:

1. Sales Forecasting and Budgeting: The sales managers are expected to chalk out
well-structured sales plans well in advance. She/he should estimate the expenses that
will be incurred as a result of various sales activities.
 2. Sales Team Structure: The sales team is expected to perform variety of sales
related activities. The sales manager is responsible for determining and organizing
the functions to be performed by his sales team.

3. Manpower Planning and Hiring: The sales manager is required to estimate the
requirement of sales personnel in the organization. As per requirement of the
organization, She/he should plan recruitment and selection activities.

4. Sales Training: To drive effective performance from the salespeople, it is important

to impart them with the right skill sets. The sales managers are responsible for
providing training and orientation to newly hired sales candidates so as to establish a
suitable match between the know-how and job position.

5. Sales Areas: The sales manager is responsible for establishing sales goals for the
team, for this purpose she/he determines the sales quotas and identifies the sales
territories. She/he further determines the region where the company wants to sell its
products depending on the profitability of the organization.

6. Salesforce Management: The sales manager is entrusted with the responsibility of

motivating the sales personnel, appraising their performance, ascertaining their
remuneration and rewards for the targets achieved. Therefore, she/he should manage
the sales force in such a way that they are driven towards the achievement of the goal.

Check your progress A

1. Fill in the blanks.

i. The ……………. is responsible for determining and organizing functions to
be performed by his sales team.
ii. ................... is the management function responsible for ensuring that the
organization has sustainable cash flow.
iii. Industrial revolution took place in England in the year …………. brought
about some significant changes in the marketing scene.
 iv. The sales management functions primarily seeking to accomplish three basic
functions namely sales volume, ………….. and growth.

2. State whether the following statements are True or False.

i. Sales management is the function of directing the efforts of the sales force of
the business.
ii. The sales management does not use scientific processes to design and
implement sales management program.
iii. Sales Management seeks to accomplish only sales volume.
iv. Sales Training comes under the scope of sales management.

3.6 TYPES OF SALESPERSONS

The existence of varied buying situations has led to the emergence of various selling
functions. Selling tasks determine the nature of the sales process for any situation. Figure 3.2
shows various types of salespersons classified on the basis of various selling situations:

Figure 3.2: Types of Salespersons

1. Order takers: Order takers are not anticipated to steer clients to buy the
organization’s merchandise or increase their quantity of purchase. They are required
to take the orders from the customers and share the information with the relevant
people within the business enterprise. They are also expected to have an up-to-date
information of the date and time of delivery of orders that have been booked by them
to the customers. They need to respond to the queries regarding the delivery date to
the customers.

2. Inside order takers: Retail sales assistants may guide the customers inside the retail
store. The customers freely select the products from the retail outlet without the
presence or impact of a salesman. He is responsible for taking the payments and
delivering the goods.

3. Delivery Salespeople: Timely delivery of the product is the primary responsibility of

delivery salespeople. They do not try to persuade the customers to increase the order
size. Reliability of product delivery determines the probability of getting or losing the
order from the customers. Therefore, the delivery has to be made on time.

4. Outside Order Takers: They are primarily concerned with responding to the
customer calls. They secure the orders from the customers on the basis of sales calls.

5. Order Creators: In certain industries, the job of a salesperson is not to close the sale
but to convince the customer to promote the seller's brand. Such salespersons are
termed as Missionary Salespeople. For example, medical representatives contact
doctors not for the direct sale but convince them to prescribe their brand’s medicines.

6. Order Getters: The main aim of order getters is to convince customers to shop for
the company’s merchandise. The salesman must be able to comprehend client needs
and persuade him that his company’s products best serve his needs. The order getters
must have complete knowledge of the products so that she/he may convince the
people by highlighting the functions and features of the product.
3.7 DIFFERENCE BETWEEN SELLING & MARKETING

In our day to day lives, the term marketing and selling are used synonymously. Both
marketing and selling functions are directed towards revenue generation. Being so closely
interwoven, it becomes difficult for many to differentiate between the two. However, there
exists a big difference between the two functions.

Selling is the part of Marketing. It is concerned with delivering the goods/ services to the
customers in exchange for price. For example, one goes to a shop to buy a pair of shoes and
the shopkeeper sells the shoes in exchange for the price paid to him for the same.

Marketing is much broader in scope. It is a function that begins with determining the needs
and wants of the customers and ends with the customer satisfaction and feedback. In between
various activities like production, pricing, promotion and distribution take place and at last
the selling happens. The customer always remains the focal point of marketing. For example,
when one buys a car and gets after sales service which is also a part of marketing. Let us
learn the difference between marketing and selling.

Point of Marketing Selling

Difference

Definition Marketing is concerned with creating Sales are the process of persuading
value for the customers by delivering the customers to buy the products to
them goods and services according to increase the sales.
their needs and making a profit.

Scope It is wider in scope. It is narrow in scope.

Business It views the business as a process of It views business as a process of

viewpoint satisfying the customer. manufacturing goods.

Orientation Profit orientation. Sales orientation.

Price Price is determined by the consumer. Price is determined by the cost.

Customer It views the customers as the starting Customers are viewed as the last
orientation point of any business. link in any business in selling.

Profits It focusses on earning profits through It focusses on earning profits

customer satisfaction. through aggressive promotions

Emphasis Emphasis on adoption of latest Emphasis on cost reduction by

technology for product innovation to staying with the same technology.
provide enhanced value to the
customers.

Views of It stresses on the needs of the customers. It stresses on the needs of the sellers.
seller’s
needs

3.8 SALES MANAGEMENT PROCESS

Sales management process is concerned with accomplishing salesforce objectives and targets
effectively and in an efficient manner by implementing the management processes of
planning,organizing,staffing,training, leading and controlling. The sales management is a
three-step process. Look at figure 3.3 which shows three steps of sales management process.
 Figure 3.3: Sales Management Process

Let us learn the sales management process in detail.

Devising Strategic Sales Management Programme

A well-planned sales management programme begins with an extensive environment

scanning by the sales planner. The trends prevailing in the contemporary political,
economical, social, technological, ecological and legal environment must be thoroughly
examined to identify the upcoming opportunities and threats for the business. The
competitors’ moves and the demands of the potential customers must also be ascertained.
An appraisal of firm’s internal environmental factors i.e.,organizations’ strategic intent
(Vision,mission, objectives), human capital, financial resources, firm’s current level of
capacity utilization, manufacturing processes, research and development activities must also
be undertaken by the sales planners to determine firm’s ability to carry out certain strategies.
The sales manager is expected to take following five important decisions at this stage:

1. Determining firm’s personal selling strategy.

2. Determining firm’s account management policies.
3. Organization of firm’s salesforce.
4. Decisions regarding the sales forecasts, establishing sales quotas and sales budgets.
5. Designing the sales territories and allocation of the territories to the salespersons.

Administration of Strategic Sales Management Programme

Administering the sales management programme involves channelizing the efforts of the
salespeople towards attainment of organizational goals. Various factors play an important
role in determining the job behavior of the salespeople. A sales manager must have the
knowledge of these factors which are stated below:

1. Environment: The macro environmental variables which affect the ability of the
salespeople to achieve their sales goals are economical, political, social,
technological, ecological and legal conditions prevailing in the market. The micro
environmental variables include demand supply related market conditions,
competitor's strategy etc. Various components of marketing mix like brand image,
 product quality, pricing policies, channel design and promotional efforts of the firm
also have a significant bearing on the performance of the salespeople towards
attainment of the sales targets. Therefore, they should analyze the whole range of
marketing mix carefully.

2. The clarity of job description: The roles and responsibilities of the salespeople
should be clearly laid down in the job description so as to clarify the role expectations
and to avoid any confusions. They must be equipped with the know-how of handling
various sales situations which they would face on a day-to-day basis. The proper
analysis of Job and the roles of salesperson may facilitate them to perform sales
activities effectively.

3. Personal factors: Various personal traits possessed by the salesperson like

personality, analytical and critical thinking abilities, education level, sales aptitude,
selling skills, motivation and commitment level etc determine the performance levels
of the salesperson. These traits are very much helpful in performing the sales job.

4. HR Policies: The HR processes of recruitment and selection criteria for the salesman
must be carefully designed. An ongoing training program is a must to upgrade the
know-how of salesforce regarding various aspects of market and the product. To keep
the salespeople going, it is very important for the sales manager to reward the superior
performances suitably. Both financial and non-financial rewards go a long way in
motivating the salesforce towards a consistent superior performance.

Assessment and Control of Strategic Sales Management Programme

To ensure that the sales management programme generates the desired outcome, it's
important for the sales manager to monitor its implementation in a way stated out in the
strategic plan. The sales manager should keep a close watch on the environmental changes in
the light of which sales plans may need some adjustments from time to time.

Various performance parameters need to be measured to make accurate decisions. Three

basic analysis conducted by the firms in this regard are as follows:
 1. Sales Analysis: It is a practice to break down the total sales territory wise, product
wise and customer wise a comparison between the quotas and forecasted sales in the
said areas. If there is any discrepancy, the proactive steps should be taken to bridge
the discrepancy. The breaking up of these activities provides good opportunity to
make.

2. Cost Analysis: The sales managers work out various costs pertaining to each
salesperson, product line, sales territory and customer type. This data then is
combined to the sales analysis data to ascertain customer profitability and the
profitability on each segment. In case the cost of a particular unit is more or less,
necessary corrective measures should be taken.

3. Behavioral Analysis: Here, the salesperson’s job-related behavior is evaluated using

various techniques like self-appraisal, field observations, customer feedback forms,
supervisor’s ratings along with his sales volume to assess his/her overall performance.
The good performers should be encouraged and incentivized.

3.9 TRENDS IN SALES MANAGEMENT

Contemporary businesses operate in the VUCA world which is characterized by high levels
of Volatility, Uncertainty, Complexity and Ambiguity. To survive in this highly disruptive
business environment, the sales manager must continuously scan the emerging trends shown
in figure 3.4
 Figure 3.4 Trends in Sales Management

Global Markets: With the rise of globally connected economies, the companies have also
begun expanding their operations across the national frontiers. While selling the products
abroad, the sales managers may have to face many challenges related to differences in
culture, laws, customer preferences, negotiation style etc. The sales managers must take into
account the global competitors while devising their sales strategies to tap the business
opportunities arising in the global markets.

Technological Advancements: The emerging digital technologies have made the modern-
day customers more aware than ever before about the new product launches, price of various
products, the strengths and weaknesses of various products. The customers can access almost
every information about the brands online. The internet-based content consumption has gone
up significantly amongst the consumers. Marketers are also leveraging the technology to
collect the information about their customers, competitors, market trends and to develop
customized products that offer superior value to their customers. The sales managers also are
utilizing technology at large in the form of latest sales and CRM softwares,
videoconferencing apps etc to deal with the competition effectively and in a cost-effective
manner.

Diverse Salesforce: Modern day salesforce consist of individuals with diverse backgrounds,
gender, age, culture, education, etc. This diversity brings in a difference in the needs and
expectations of the salesforce. A sales manager needs to understand these differences to
manage them effectively.

Omni-Channel Management: Contemporary businesses are increasingly adopting

multichannel route to provide superior customer experience whether they shop from online or
offline. The use of omni channels offer many benefits like reduction in channel cost, better
market coverage and customized selling. However, one flip side of using omni channel is that
at times it leads to emergence of channel conflicts when two or more channels start
competing against each other. The sales managers must utilize various conflict resolution
techniques to handle such disputes.

E-Selling: With the increased internet penetration, more and more customers expect the
companies to sell them online. Increased online buying makes brands focus their efforts on
selling to convert passive audience into active customers. The sales managers must select
shopping cart softwares and services carefully.

CHECK YOUR PROGRESS B

1. Discuss technological advancements in trends in sales management.

2. What is the clarity of job description?
3. What is the difference between selling and marketing?
4. Fill in the blanks:
i. …………. is the planning, direction and control of selling of business unit
including recruiting, selecting, training, equipping, assigning, routing,
supervising, paying and motivating as these tasks apply to the personnel of the
sales force.
ii. …………. is a practice to break down the total sales territory wise, product
wise and customer wise so that a comparison can be made between the quotas
and forecasted sales in the said areas.
iii. The main aim of ………… is to convince customers to shop for the
company’s merchandise.
iv. ………….. emphasis on adoption of latest technology for product innovation
to provide enhanced value to the customers.
 v. The job of a ……….. salesperson is not to close the sale but to convince the
customer to promote the seller’s brand.

3.10 LET US SUM UP

Sales is the only function of marketing that brings in revenue to the organization and hence
assumes a key role in the entire scheme of things. The salespeople act as the linking pin
between the organization and its customers.

Sales Management was originally said to be the function of directing the efforts of the
salesforce of the business. However, in the modern times the broader view of sales function is
found to be more popular with the businesses. Accordingly, the Sales Management is
concerned with development of the sales staff, managing sales related operations and
implementation of sales techniques such that sales targets of the business are accomplished
effectively.

The scope of sales activities revolves around sales forecasting and budgeting, sales team
structure, manpower planning and hiring, sales training, sales areas and salesforce
management.

Many times, sales and marketing are used synonymously however there exists many
differences between them. Selling is the part of Marketing. It is concerned with delivering the
goods/ services to the customers in exchange for price. For example, one goes to a shop to
buy a pair of shoes and the shopkeeper sells the shoes in exchange for the price paid to him
for the same.

Marketing is much broader in scope. It is a function that begins with determining the needs
and wants of the customers and ends with the customer satisfaction and feedback.

Sales management process is concerned with accomplishing salesforce objectives and targets
effectively and in an efficient manner by implementing the management processes of
planning,organizing,staffing,training, leading and controlling.
To survive in this highly disruptive business environment, the sales manager must
continuously scan the emerging trends like global market conditions, technological
advancements, diverse workforce, omni-channel management and e-selling.

3.11 KEYWORDS

Cost Analysis: The process through which the sales managers work out various costs
pertaining to each salesperson, product line, sales territory and customer type.

E selling: The process of selling the products using online platforms like websites, apps etc.

Missionary Salespeople: The salesperson who undertakes various activities like product
demonstrations, presentations etc. to spread the word about the brand in order to convert
prospects into customers.

Order Getters: The salesman who comprehends client needs and persuades them that his
company’s products best serve their needs.

Sales analysis: It is a practice to break down the total sales territory wise, product wise and
customer wise so that a comparison can be made between the quotas and forecasted sales in
the said areas.

Sales forecasting: It refers to the process of predicting the future sales revenue usually based
on historical sales data and market trends.

Sales management: Sales Management is the planning, direction and control of selling of
business unit including recruiting, selecting, training, equipping, assigning, routing,
supervising, paying and motivating as these tasks apply to the personnel of the sales force.

3.12 ANSWERS TO CHECK YOUR PROGRESS

A. 1. i. sales manager ii. sales iii. 1760 iv. profit maximization

2. i. True ii. False iii. False iv.True
B. 4. i. Sales management iii. Sales analysis iv. Order getters v. Marketing v.Missionary

3.14 TERMINAL QUESTIONS

1. What do you understand by sales management? Describe the importance of sales

management in the organization.
2. Discuss the scope of sales management activities in an organization.
3. Distinguish between marketing and selling.
4. Describe the steps in the sales management process in detail.
5. Write a short note on the evolution of sales management.
6. Discuss the contemporary trends in sales management.
7. Explain the types of salespersons.

SOME USEFUL BOOKS

Cavale, K. K. H. V. M. (2006). Sales and distribution management: text and cases. Tata
McGraw-Hill Education.
Panda, T.K., Sahadev, S. (2012). Sales and Distribution Management. Oxford Higher
Education.
Still, R. R., Cundiff, E. W., & Norman &A, P. G. (2011). Sales and Distribution
Management.
UNIT 4 SALES FORCE MANAGEMENT

Structure

4.0 Objectives

4.1 Introduction

4.2 Sales Force Recruitment Planning

4.3 Recruitment of Sales Force

4.4. Selection of Sales Force

4.5 Selection of Sales Force

4.6 Sales Force Training

4.7 Sales Force Compensation

4.8 Sales Force Motivation

4.9 Sales Force Evaluation

4.10 Let Us Sum Up

4.11 Key Words

4.12 Answers to Check Your Progress

4.13 Terminal Questions

4.0 OBJECTIVES

After studying this unit, you should be able to:

● to understand the recruitment and selection process for the sales force;
● to examine the training process for the sales force;
● to discuss various methods of compensating the sales force;
● to examine the steps for creating the sales force compensation plan;
 ● to explain the need for motivating the sales force and analyze the different
motivational theories in the sales context; and
● to understand the sales force evaluation process.

4.1 INTRODUCTION

Sales force of any organization is the main revenue generator for the business. Thus, it is
important to manage them well. It is the responsibility of the sales managers to perform the
function of Sales force management. Sales force management is a specialized form of
personnel management wherein the sales managers plan and execute the recruitment,
selection, training, motivation, compensation and evaluation processes pertaining to the sales
personnel in an organization.

The sales job is considered to be highly stressful and thus are often prone to higher attrition
rates in the organizations. Thus, it becomes very important for the sales managers to nurture
them carefully under his guidance and pay constant attention to them.

This unit deals with the major decisions which the sales manager is required to take while
managing the sales force.

The first and the foremost decision to be taken with regards to the salespeople is the hiring
decision. Hiring process typically involves three sub processes namely Recruitment planning,
Recruitment and Selection of sales force.

4.2 SALES FORCE RECRUITMENT PLANNING

When undertaking recruitment planning, the sales managers are required to work out the
number of salespersons to be recruited based on company’s long term and short-term plans,
workload analysis and turnover analysis for determining the optimum sales force size

The starting point of the recruitment planning is Strategic Position Analysis. It is the process
that specifies the method of performing the job and the skills and competencies required by
salesperson to perform the job effectively. This involves conducting job analysis to prepare
job description and job specification Job description is a written statement of duties and
responsibilities pertaining to a job. Job specification refers to the statement of minimum
qualifications required by the sales person to perform the job effectively. Both Job
description and job specification aid the process of recruitment, selection, training,
compensating and evaluating the sales force.

4.3 RECRUITMENT OF SALES FORCE

Effective recruitment and selection of salespeople is one of the most crucial tasks of sales
management. It entails finding people who match the type of sales position required by a
firm. Recruitment involves sourcing the prospective candidates and encouraging them to
apply for the job. Recruitment ends with the receipt of applications. Salesmen can be
recruited through a number of sources as stated below:

1. EXTERNAL SOURCES OF RECRUITMENT

i. Newspaper advertisements: The vacancy may be notified via way of newspaper

classified ads. The nature of tasks, the qualification expected, prior sales experience,
remuneration etc. can be stated in the advertisement itself. Interested candidates can
be requested to send in their resume within a stipulated time.
ii. Employment exchange: The employment exchanges operated by the government
may be contacted in this regard. The business establishments can also request such
employment exchanges to furnish a list of eligible applicants. Job consultants and
employment bureaus also offer similar services.
iii. Campus interviews: The firms visit universities every year to interview the students
studying degree courses therein. Those candidates who are found suitable are placed
with the companies and give appointment letters without delay. These selected
candidates join the firms upon the completion of their degree course.
iv. Competitors’ sales force: It is possible to attract competitors’ salesforce by offering
them better compensation packages. This form of hiring is often known as poaching.
The benefit of such hiring is that the salespersons selected through this method are
already well trained in that business and therefore can carry out their work with
greater efficiency.
v. Unsolicited applicants: HR departments of the companies receive applications
received from unsolicited applicants regularly. Any candidate’s resume that matches
the company’s requirements can be recruited as and when any vacancy arises.
vi. Web sources: With the advent of the internet, companies have been increasingly
relying on web sources like job portals and social media for recruiting the sales staff.
 The viral nature of social media makes them a popular tool for recruiting sales
professionals.

2. Internal sources of recruitment

i. Employee Movements: At any given point of time, some vacancies can be filled up
internally by promoting the employees from within, by transferring the employees
from one territory to another, lateral moves from one department to another.
ii. Employee referrals: Existing employees can recommend candidates from their
circles whose credentials could match company’s requirements. Existing employees
are well acquainted with the work environment and expectations of the firm so are in
position to recommend a suitable candidate for the organization.

4.5 SELECTION OF SALES FORCE

Selection is the process of choosing the most appropriate candidates from among the pool of
candidates who applied for the posts. Selection begins as soon as recruitment ends. The
typical selection process consists of the following steps:

1. Pre-Screening interview: The purpose of pre-screening interview is to screen unqualified

candidates at the outset. It consists of asking the candidates a series of questions to know the
candidates better prior to conducting a detailed interview. The questions in this interview
relate to career goals, job profile preferences etc.

2. Formal Application Form: Once the preliminary interview is done, candidates are asked
to fill out a formal application. The application form is a quick way of screening out
unsuitable candidates and shortlisting suitable candidates for interview. The questions
contained in the application form should enable the sales manager to check if the applicant
possesses minimum qualifications, skills and experience in accordance with the job
specification. The application form seeks to reveal crucial information about the candidates.
Some applicants may be habitual job-hoppers; others may lack adequate educational
qualifications. The application form acts as an initial screening device for unsuitable
candidates. Careful designing of application form must therefore be accorded the highest
priority for the HR.
3. The Interview: The personal interview is the most widely used selection tool used by
companies to evaluate the candidates. It acts as a reliable source of collecting information
about the candidate on the basis of face-to-face interaction. A candidate can be evaluated for
his/her selling skills , confidence , personal appearance and courtesy, attitude towards selling
and life in general by the interviewer during the interview.

Types of Interviews

i) Structured interview: A structured interview requires the interviewer to ask a set of

predetermined questions. It implies the same questions being asked to all the candidates.
Also, each candidate is allotted the same time to answer. This allows the interviewer to assess
the candidates in the most objective and unbiased manner.

ii) Non-structured interview: An unstructured interview does not contain a set of predefined
questions. Here the interviewer asks the questions spontaneously as a part of free-flowing
conversation, thus each candidate is asked different questions. The underlying principle for
this interview is that it is able to generate truthful responses and brings out the real
personality of the candidate. One of the major concerns for conducting this type of interview
is that it requires immense skill and expertise on the part of the interviewer to administer and
interpret the candidates’ responses effectively.

iii) Semi-structured interview: It is a combination of structured and unstructured interview

wherein only a few predetermined questions are asked by the interviewers while the rest of
the questions are not pre planned. It allows for objective comparison of candidates along with
offering a more personalized and spontaneous approach that allows for better selection.

iv) Stress interview: A stress interview is an assessment tool that seeks to measure a
candidate's response to stress. It generates useful insights as to how a candidate will respond
while juggling high-priority tasks, how he will conduct himself while dealing with
challenging clients.
Here the interviewer creates a stressful environment for the candidates while interviewing by
way of criticism, asking tough questions, creating interruptions etc. This technique works
well for selecting the sales force that often needs to work under stressful conditions in actual
selling situations.
v) Rating scales: An interview rating scale allows the interviewer to record the score to the
candidate on the basis of how well he answers the pre-planned questions. Each question in
the interview rating sheet addresses a specific skill of the candidate. Candidate receives a
high rating if he answers the questions as expected by the interviewer. Towards the end of the
interview, the overall score is arrived at by compiling the candidate’s ratings. The scores of
various candidates are compared against each other to determine the most suitable candidate.

4. Selection tests: Tests act as an effective tool of selection when the organization wants to
hire a relatively large number of salespersons. Various types of tests are stated as follows:

i. Mental intelligence tests: These tests seek to assess candidate’s intelligence quotient
(IQ) and capablity to learn.

ii. Aptitude tests: These tests seek to assess a candidate's sales aptitude. It helps
interviewer identify and hire the candidate with highest potential for sales success.

iii. Interest tests: These tests are designed to compare a candidate's interests with the
interests of successful salespersons in the field.

iv. Personality tests: These tests assess the candidate’s personality traits to ascertain
their suitability for a particular sales job.

v. Situation tests: These tests assess the candidate's ability to work in the real work
situation. It appraises the competence of candidates to deal with different types of
customers.

6. References Checks: Reference checks are done by the organizations to find out more
information about an applicant pertaining to their conduct, character, ethics etc by the way of
contacting their previous employer, colleagues, friends etc. Some employers do not find the
information generated from reference checks reliable as they believe that references are
usually hesitant to criticize their acquaintances.
7. Medical Examination: A good health is a prerequisite for good job performance. A
medical examination of the candidate is done to uncover any health disorders if any existing
in the candidates. Sales jobs demand a good level of physical fitness on the part of the
candidates. It is also the moral responsibility of the candidate to disclose about any health
condition he /she is suffering from.

8. Determination of Terms of Service: As soon as the candidate clears the above stages,
terms of service relating to compensation, allowances, other perquisites, working hours etc
are determined prior to issuance of appointment letter.

9. Issuance of Appointment letter: An appointment letter containing the details about the
terms of service, joining date, probation period etc is issued to the selected candidate. This
letter must be signed by the competent authority and if the candidate is interested in the job
offer, he/she is required to join the duty before the expiry date mentioned in the appointment
letter.

10. Socialization and Assimilation: As soon as the candidate joins the organization, he is
enrolled for an orientation programme wherein he is being provided with all the organization
and job-related information. This helps the salesperson to assimilate smoothly into the
company's culture and helps them adjust to their new jobs.

Check Your Progress A

1. State whether the following statements are True or False.

i. Terms of service relating to compensation, allowances, other perquisites etc. are

determined prior to reference check.
ii. Aptitude tests seek to assess a candidate's sales aptitude.
iii. The personal interview is the not most widely used selection tool used by
companies to evaluate the candidates.
iv. Existing employees can recommend candidates from their circles whose
credentials could match company’s requirements.
v. Sales force of any organization is the main revenue generator for the business.
4.6 SALES FORCE TRAINING

In the fiercely competitive market, training the sales force can help organizations achieve
market success. Modern day customers often assess an organizations' product offering based
on the performance of the salesperson’s ability to flawlessly execute the sales demo, his
confidence, objection handling abilities etc. The salesman’s performance in front of
customers becomes extremely critical in times when the market is competitive.

Rationale For Training

Training the sales force is very important because it presents an opportunity for salespersons
to improve their knowledge base and job specific skills to become more effective at their
work. Despite the high training cost associated with sales force training, the return on
investment is immensely high, if undertaken consistently by the organizations. Sales Force
Training intends:

1. To acquaint the sales person about the fundamentals of salesmanship.

2. To provide the sales person with the information pertaining to sales territories and
customers.

3. To sensitize the sales force about the company’s policies, mission, vision, business
strategies, challenges and prospects.

4. To help the salesperson have a better understanding of products of the company.

5. To inform the salesperson about his job-related duties and responsibilities.

Sales Training Process

Sales training is a process of imparting the sales force with job specific skill set which helps
them perform their task better and to correct the deficiencies in their sales performance.
Whenever the market scenario undergoes any change, the sales force needs to be trained to
meet the emerging challenges. Training equips the sales force with the necessary skill to
execute their job responsibilities in an efficient manner.

Sales training process consists of following steps to achieve training goals (Figure 4.1):

Sales Training Need Analysis ‐STNA

Designing and Administering the

Training Program

Evaluation of Sales Training

program

Figure 4.1: Sales Training Process

1. Sales Training Need Analysis STNA:

The starting point for designing an effective sales training programme is to identify the
training needs by identifying the gap between the actual and the desired performance of the
Sales Force.Training needs are identified at three levels namely:

i. Organizational level: STNA at the organizational level refers to macro level analysis
that aims to identify the areas where the sales force of the organization lacks
necessary know-how or skills and provide need-based training.
ii. Task Level: At the task level, STNA determines the type of training that needs to be
imparted to sales staff to achieve a specified level of proficiency. This analysis can
help identify the knowledge and skills required to perform specific jobs at the
workplace.
iii. Individual level: At the individual level, STNA seeks to assess the current
performance of the salesperson in the given job role. The gap between the expected
performance and the actual performance reveals the training needs of the salesperson.
2. Designing and Administering the Training Program

Once the training needs of the sales force have been determined, the sales manager should
begin planning for designing and administering the training program.

Types of Salesmen Training: The training programme must be designed considering

organizational needs so as to boost the productivity of the sales force. Different types of
training can be provided to the sales force depending upon the organization’s need and
resource availability which are as follows:

i. On-the-Job Training methods: These training methods are highly personalized in

nature involving direct interaction between the trainer and the trainee. These are best
suited in the situations wherein sales-force required to be trained is limited and needs
individual attention.
ii. Field training method: Under this method, the salesman learns by observing. The
trainee accompanies the trainer who approaches the prospective customers with sales
catalogues. The sales trainee observes the trainer performing various sales tasks
carefully and thereby learns the selling techniques.
iii. Off-the-Job Training Methods: Complicated jobs need much technical knowledge
to be imparted in the classroom settings which are called off the job training methods.
Class-room training offers a congenial learning environment without any fear of
interruption of work.
iv. Lectures: Under this method, experts deliver lectures pertaining to various aspects of
sales to sensitize the salesmen about the fundamentals of selling. Towards the end of
the lecture, salespersons participate in the group discussions and written tests.
v. Conferences and Seminars: The sales force can be encouraged to attend conferences
and seminars. Salespersons get an opportunity to discuss various sales related
problems and solving techniques at such conferences. Sales force get to learn the
latest techniques of solving problems by attending marketing seminars and
conferences.

vi. Case Discussion Method: Under this method, salespersons are presented with a
hypothetical case having a sales related problem. They are expected to identify the
 problem and select the specific solution from among the various alternatives
available.

vii. Specialized Courses: The organizations may send the salesperson to institutions of
repute to take up the special courses on salesmanship. The expenses like tuition fees
and other related expenses incurred for attending such courses may be borne by the
organizations.

3. Evaluation of Training Programs

Training programs involve substantial investment in terms of time, efforts and money thus
organizations are always very keen for measuring their effectiveness.

Kirkpatrick (1994) has suggested the following four level criterion of training effectiveness
measures:

i. Reaction: Reaction represents the first level of criteria which assesses the extent to
which trainees found the training program engaging and relevant to their job profiles.
This can be measured by conducting an after-training survey via questionnaire that
requires trainees to rate their experience.
ii. Learning: Level II measures the extent to which trainees acquired the skills,
knowledge and aptitude from the training program. This can be done by conducting
written exams or having a well-defined scoring system.
iii. Behavior: Level III measures the change in the behaviors of the trainees’ post
attending the training program. Assessing the behavioral changes shows whether the
trainees are able to apply the skills acquired during training to the actual work
settings. This change can be noticed by the supervisors or by the customers too in
many cases.
iv. Results: This level measures whether the training program has led to any
performance improvement of the salespersons or not.
v. Results are often reflected in increased sales, customer satisfaction, reduced customer
complaints, improved customer retention ratios, improved customer relations, etc. The
organizations track the results after the training program.

4.7 SALES FORCE COMPENSATION

One of the key concerns of the sales management function relates to deciding on salesforce
compensation as it not only impacts the sales costs but also more importantly influences the
behavior, attitude and interest of the sales force towards their job role.

Sales compensation represents the payment that salesforce receive in return for their work. It
is very important to design sales compensation carefully to drive the successful sales team’s
performance.

Types of Sales Compensation

Choosing the right compensation plan for the sales force will keep them motivated which will
result in boosting the organizational sales and thereby the profits.

Organization can choose from among various sales compensation plans based on various
factors like nature and size of organization, sales cycle length etc. Some of the sales
compensation plans have been discussed below:

i. Straight Salary Sales Compensation: Under this plan, the organization pays a fixed
salary to its salespersons and no commission, no bonus, and no incentives. This sales
compensation plan is popular with companies which do not allow direct sales. When
the salespersons work in small groups where everyone has made an equal effort, this
method of sales compensation is increasingly adopted.

ii. Salary plus commission: This is one of the most popular sales compensation plans
used in many industries. Under this method, the salesperson's base salary is kept low
and they are paid the commission on the total sales generated by them. This sales
compensation plan seeks to motivate the sales persons to put additional efforts and
make more and more sales.

iii. Commission only: As the name suggests, this sales compensation requires the
organization to pay the salesperson only on the basis of sales generated by him, thus
there is no guaranteed income to the salesperson. This plan is relatively very easy to
administer as it required the organization to pay only against the sales generated.
 iv. Profit Margin / Revenue: This plan compensates the sales force on the basis of the
organization’s performance. This type of sales compensation plan is more popular
with the startups that often face the liquidity crunch. This type of sales compensation
plan is mostly used by start-ups because of the lack of liquidity. The organizations
must adopt this plan only if the sales force is stable enough to survive well during off
periods.

v. Territory volume: The organizations having team-based corporate culture popularly

adopt this type of sales compensation plan. This method of sales compensation
requires territory volume to be calculated at the end of each term which is then
divided equally among the total number of salespersons working within that territory.

Creating Sales Compensation Plan

To create a right sales-compensation plan for an organization, sales manager should take the
following steps (Figure 4.2):

Determine Sales
Compensation Plan
Objectives

Selecting the Sales

Compensation Plan

Deciding upon Timing

and Method of providing
Compensation

Setting Sales Quotas

Reviewing Sales
Compensation Plan
Figure 4.2: Steps for creating sales compensation plan

i. Determine Sales compensation plan objectives: The starting point for working out
a sound sales compensation plan is to establish the sales compensation plan priorities
clearly. The organization may aim at increased revenue, reduced expenses, boosting
the sales of a particular product etc.

ii. Selecting The Sales Compensation Plan: Having defined the goals, the sales
managers must select the type of compensation plan they prefer to have for their sales
team based upon careful analysis of type and size of organization, its product line,
sales cycle, size of sales team etc.

iii. Deciding upon Timing and Method of providing Compensation : The sales
manager must determine when the salespeople will get compensated: whether at the
time of customer signing a contract or at the time when they send their first payment.
Sales manager must also select their payroll software to administer a sales
compensation plan.

iv. Setting Sales Quotas: The sales quotas must be established so that salespersons know
what they are expected to do to earn the compensation. It’s important to fix these
quotas reasonably yet in a manner that reflects organization’s business goals.

v. Reviewing Sales Compensation Plan: The sales managers must review these
business plans in the light of changes taking place in the environment and in
accordance with the changes in the expectations of the organization’s sales force.

4.8 SALES FORCE MOTIVATION

The sales function plays a very important role in the success of the organization. The
achievement of organizational goals depends on the organization’s sales force thus it is
necessary to keep them highly motivated throughout. Motivation refers to creating an urge in
an individual to achieve a specified goal. The salespersons’ motivation directly impacts his
sales performance and his ability to achieve sales targets.
Sales force can be motivated using both monetary and non-monetary rewards. The monetary
rewards may include bonuses, commission etc while non-monetary rewards may include
vouchers, prizes, perks, gift cards etc.

Relevant Sales Force Motivation Theories

Motivation theories seek to explain why the employees behave the way they do at work.
What drives their behavior at work. What makes some employees put in more effort at work
as compared to others. Some motivational theories that are applied to the sales context are:

Maslow’s Hierarchy of Needs Theory: This theory suggests that needs happen to an
individual in a particular order. Higher order need needs become important to an individual
only once the lower order needs i.e., the basic needs have been adequately fulfilled. The five
need levels of Maslow’s need Hierarchy are- physiological needs, safety needs, social needs,
esteem needs and self-actualization needs.

Herzberg’s Motivation-Hygiene Theory: This theory recognizes the factors that cause
dissatisfaction at job as ‘hygiene factors’ which include working conditions, compensation ,
organization’s policies and supervision etc and factors offering job satisfaction as
‘motivators’ which include incentives , bonuses , achievement, awards , recognition, more
responsibility and growth opportunity .The theory states that the absence of hygiene factors
can cause dissatisfaction among the employees at work but their presence would not lead to
increased employee motivation.

Vroom’s Expectancy Theory: This theory is based on three concepts named expectancy,
instrumentality and valence. The theory suggests that an individual’s motivation to do the
effort depends upon his expectation of success. For example, if the salesperson believes that
higher effort will generate higher sales (high expectancy) which in turn will generate higher
incentive (high instrumentality) for him which is very important for him (higher valence) will
result in higher motivation on his part. (You will learn in detail about sales force motivation
in Unit 7.)

4.9 SALES FORCE EVALUATION

Sales force evaluation entails the comparison of the performance of the sales force with the
objectives they were expected to achieve. It is the responsibility of every sales manager to
appraise the performance of the salespersons working under him.

The objective of assessing actual performance against planned performance objectives is to

identify the performance gaps SO as to initiate timely action to improve the same. The
evaluation also has a strong bearing on the motivation of the sales persons as it provides
feedback to them as to whether their performance was good or bad.

Sales Force Performance Evaluation Process

The process of appraising sales force consists of the following steps:

i. Determining sales goals and objectives: It is important to establish the long-term

sales goals on the basis of outcomes expected in terms of profitability metrics, sales
efforts and results. Having established long term sales goals, the sales manager must
determine the short-term sales goals which may consist of more quantifiable targets
like number of sales calls made, number of new accounts acquired, report preparation
etc. It is always considered wise to use the combination of quantitative and qualitative
performance standards
ii. Sales plan development: A sales plan acts as a road map that guides the salespersons
as to how the sales targets have to be achieved. The four aspects of the sales plan are:
Analyzing the situation (2) Analyzing the opportunities and threats (3) action plans
(4) performance appraisal system.
iii. Establishing performance standards for sales force: Performance standards
represent the yardsticks against which the performance of the sales force would be
measured in future. Ideally, performance standards must be decided mutually by the
sales force and the sales manager. Both quantitative and qualitative measures must be
used to set performance standards for the salespersons considering the efforts required
on the part of salespersons and the results to be achieved.
iv. Resource allocation through sales quotas: Sales quota represents the sales target an
individual salesperson is supposed to achieve. They play an important role in keeping
your sales force accountable and motivated. Sales quotas ensure that the efforts of the
organizations’ sale force are aligned with the organizational overall goals. The sales
 managers may set various types of sales quotas like direct quota, overlay quota, profit
quota, volume quota etc.
v. Specify sales force performance appraisal system: The sales force must know well
in advance as to how their performance will be monitored and evaluated. Which job
behaviors will be rewarded must be clearly specified and made known to the
salespersons on a timely basis. Various methods of appraising the performance can be
used for the said purpose like MBO, BARS, 360-degree appraisal, Critical Incidents
Method etc.
vi. Appraisal feedback: Having evaluated the performance of the salespersons, they
must be provided with the performance feedback clearly mentioning the areas of
further improvement in their performance. Special care must be taken to ensure that
the appraisal should be free from any biases like halo effect, horn effect, recency bias,
central tendency bias etc. The salespersons may also be referred to the sales training
program to help them improve their future performance as the case may be.

Check your Progress B

1. Distinguish between On the job and Off the job training.

2. Fill in the blanks:

i. _____________ has suggested the four-level criterion of measuring training

effectiveness.

ii. _____________ are highly personalized in nature involving direct interaction

between the trainer and the trainee.

iii. The purpose of____________ is to screen unqualified candidates at the outset.

iv. Under ___________method, the trainee accompanies the trainer who approaches
the prospective customers with sales catalogues.

v. Under ____________ plan, the organization pays a fixed salary to its salespersons
and no commission, no bonus, and no incentives.

4.10 LET US SUM UP

Sales force of any organization is the main revenue generator for the business. Thus, it is
important to manage them well. It is the responsibility of the sales managers to perform the
function of Sales force management. Sales force management is a specialized form of
personnel management wherein the sales managers plan and execute the recruitment,
selection, training, motivation, compensation and evaluation processes pertaining to the sales
personnel in an organization.

The first and the foremost decision to be taken with regards to the salespeople is the hiring
decision. Hiring process typically involves three sub processes namely Recruitment planning,
Recruitment and Selection of salesforce. Recruitment involves sourcing the prospective
candidates and encouraging them to apply for the job. Recruitment ends with the receipt of
applications. Salesmen can be recruited through a number of sources namely – internal and
external.

Selection is the way of choosing the most appropriate candidates from among the pool of
candidates who applied for the posts. Selection begins as soon as recruitment ends.

In the fiercely competitive market, training the sales force can help organizations achieve
market success. Modern day customers often assess an organizations' product offering based
on the performance of the sales person’s ability to flawlessly execute the sales demo, his
confidence, objection handling abilities etc. Training the sales force is very important because
it presents an opportunity for salespersons to improve their knowledge base and job specific
skills to become more effective at their work. Despite the high training cost associated with
sales force training, the return on investment is immensely high, if undertaken consistently by
the organizations.

One of the key concerns of the sales management function relates to deciding on salesforce
compensation as it not only impacts the sales costs but also more importantly influences the
behavior, attitude and interest of the sales force towards their job role. Choosing the right
compensation plan for the sales force will keep them motivated which will result in boosting
the organizational sales and thereby the profits.

Organizations can choose from among various sales compensation plans based on various
factors like nature and size of organization, sales cycle length etc.

The achievement of organizational goals depends on the organization’s sales force thus it is
necessary to keep them highly motivated throughout. Motivation refers to creating an urge in
an individual to achieve a specified goal. The salespersons’ motivation directly impacts his
sales performance and his ability to achieve sales targets. Sales force can be motivated using
both monetary and non-monetary rewards.

Sales force evaluation entails the comparison of the performance of the sales force with the
objectives they were expected to achieve. It is the responsibility of every sales manager to
appraise the performance of the salespersons working under him. The objective of assessing
actual performance against planned performance objectives is to identify the performance
gaps so as to initiate timely action to improve the same. The evaluation also has a strong
bearing on the motivation of the sales persons as it provides feedback to them as to whether
their performance was good or bad.

4.11 KEY WORDS

Mental intelligence tests: these tests seek to assess a candidate's intelligence quotient (IQ)
and capability to learn.

Personality tests: these tests assess the candidate’s personality traits to ascertain their
suitability for a particular sales job.

Salary plus commission: under this method, the salesperson's base salary is kept low and
they are paid the commission on the total sales generated by them.

Sales Force Evaluation: Sales force evaluation entails the comparison of the performance of
the sales force with the objectives they were expected to achieve.

Straight Salary Sales Compensation: Under this plan, the organization pays a fixed salary
to its salespersons and no commission, no bonus, and no incentives.

Stress interview: A stress interview is an assessment tool that seeks to measure a candidate's
response to stress. It generates useful insights as to how a candidate will respond while
juggling high-priority tasks, how he will conduct himself while dealing with challenging
clients.
Structured interview: A structured interview requires the interviewer to ask a set of
predetermined questions. It implies the same questions being asked to all the candidates.
Also, each candidate is allotted the same time to answer.

4.12 ANSWERS TO CHECK YOUR PROGRESS

A. 1. i. False ii. True iii. False iv. True v. True

B. 2. i. Kirkpatrick ii. On-the-Job Training methods iii. Pre-screening interview iv. Field
training method v. Straight Salary Sales Compensation

4.13 TERMINAL QUESTIONS

1. Examine the sources of recruitment for the sales force of an organization.

2. Outline the selection procedure that a sales manager must follow for hiring the
salespersons in his organization.
3. Describe the steps the sales manager must undertake to arrange training for the
company’s sales force.
4. Write short note on different types of sales compensation plans.

5. Explain in detail sales force performance evaluation process.

6. Examine various motivation theories relevant to sales context.

7. Write a detailed note on the types of interviews.

SOME USEFUL BOOKS

Cavale, K. K. H. V. M. (2006). Sales and distribution management: text and cases. Tata
McGraw-Hill Education.

Panda, T.K., Sahadev, S. (2012). Sales and Distribution Management. Oxford Higher
Education.
Still, R. R., Cundiff, E. W., & Norman &A, P. G. (2011). Sales and Distribution
Management.
 BCOS-186
Personal Selling and Salesmanship

BLOCK
2

Buying Motives and Sales Force Motivation

UNIT 5
Buying Motives
UNIT 6
Buyer Behaviour
UNIT 7
Sales Force Motivation
BLOCK 2 BUYING MOTIVES AND SALES FORCE
MOTIVATION

In the previous Block 1, you have been acquainted with the concept of personal selling and sales
management. Now in this block, you will be given a tour of the concepts of buying motives, byer
behavior and sales force motivation. This block consists of three units.

Unit 5 explains the meaning of concept of buying motives, importance of buying motives, types
of buying motives, and application of buying motives in personal selling and buyers’ motivation

unit 6 explains the meaning of concept of buyer behaviors, difference between buyer and
consumer, and factors affecting buyer behavior

unit 7 explains the meaning and importance of concept of motivation, dynamic nature of
motivation, motivation and need, maslow’s theory of need hierarchy and motivational techniques
for the salespersons (financial & non-financial motivators).
 UNIT 5: BUYING MOTIVES
Structure
5.0. Objectives
5.1. Introduction
5.2. Meaning of Buying Motives
5.3. Importance or application of buying motives in personal selling
5.4. Types of Buying Motives
5.5. Buyer Motivation
5.6. Let Us Sum Up
5.7. Key Words
5.8. Answers to Check Your Progress
5.9. Terminal Questions

5.0. OBJECTIVES
After studying this unit, you should be able to:
 explain the concept of buying motives;
 discuss the importance of buying motives in personal selling;
 describe the types of buying motives;
 apply the concept of buying motives in personal selling; and
 describe the notion of buyer motivation.

5.1. INTRODUCTION
The slogan “Consumer is the king of the market” is what forms the basis for the modern
marketers today. A consumer is said to have a motive behind his each and every purchase. In
other words, A consumer’s purchase depends upon the motives that he wishes to fulfil by
buying that product. These motives are stimulated by various customer. Specific factors like
physiological, societal, and financial factors etc. influence the buying motives. A customer is
susceptible to buy a particular product if it fulfils his motive of purchase. To rephrase it, a
marketer is likely to sell the product to the customer if he is able to identify his motive of
purchase. For instance, during monsoon season, a customer is motivated to by an umbrella to
protect himself from the rain. Similarly, a customer is motivated to buy a detergent in order to
wash his dirty clothes. The factors that stimulate or motivate the customer to buy a particular
product are referred as ‘buying motive’.

A customer is said to make a purchase not just to own that particular product but to satisfy
these forces that are the ‘buying motives.’ To reiterate, ‘buying motives’ are the “internal
feelings” of a customer/ buyer and he tries to gratify them to the fullest. Buying motives
relate to the feelings and emotions of people which generates a desire to purchase.Buying
motives are the motive to persuade the desires of people so that they buy a particular good or
service. In this unit you will learn :

5.2. MEANING OF BUYING MOTIVES

Various authors have made significant contribution to the literature of buying motives in
personal selling. Few of them have put forward the following definitions of buying motives:
As defined by W. J. Stanton,“A motive may be defined as a drive or an urge for which can
individual seeks satisfaction. It becomes a buying motive when the individual seeks
satisfaction through the purchase of something.”

As per D. J. Duncan, “Buying motives are those influences or considerations which provide
the impulse to buy, induce action or determine choice in the purchase of goods and services.”

Prof. S. Davar defined it as“A motive is an inner urge that moves or prompts a person to
some action.”

In the words of Berelson and Steiner“A motive is the inner state that energizes, activates or
moves and that directs or channels behaviour towards goals.”

Prof. William G. Carter has given a long list of buying motives such as “money, vanity,
acquisitiveness, rivalry, adornment, cleanliness, collecting, amusement, construction,
companionship, mental culture, appropriateness, ambition, inhibitive- ness, reverence,
affection, tastes, sex, limitation, curiosity, self-preservation, sympathy, gratitude, patriotism,
and so on.”
From the above mentioned definitions we can conclude that buying motive is a psychological
human urge which inspire the consumers to buy the products or services to satisfy their
needs. In other words, a buying motive is the desire, stimulus, thoughts, urge, instinct,
feelings that makes a buyer to buy a commodity.

5.3. IMPORTANCE OR APPLICATION OF BUYING

MOTIVES IN PERSONAL SELLING
The understanding of the ‘Buying motives’ concept is necessary due to the following reasons:

1. Improvising salesmanship : As a buying motive is the sole reason behind every

purchase, therefore a salesperson can improve his skills of salesmanship by
understanding the buying motive of his customer. Once he understands the motive of
his customer behind the purchase, he will be able to better cater his needs in terms of
the quality, price, size, colour etc. of the product. Also, by understanding the purchase
motive of the customer, the salesman will be in a better position to guide him and
influence his purchase behaviour. The understanding of this concept will definitely
help the salesperson to polish his skills on existing job and look forward to better
career opportunities.
2. Assists in product planning : Buying motives facilitate the marketing experts and the
firms, in taking product planning decisions in line with the customers’ preferences.
Under this, the various market experts conduct a thorough market research wherein
they try to explore the buying motives of their target audience. They try to understand
what colour, size, features, occasions, design etc, the target audience is looking for.
Accordingly, these experts or firms take decisions pertaining to the planning of the
product.
3. Facilitates in pricing decisions : Pricing decision is one of the critical factors that
influence a firm’s survival or growth in the market. Therefore, a firm must undertake
a comprehensive analysis of the data while setting up the price of a product. Buying
motives helps the firms in determining the motives of their target audience and further
classifying them into rational or emotional buying motive categories. Based on these
buying motives classification, their price sensitively can be determined. A rational
buying motive buyer is likely to be more price sensitive than an emotion driven buyer.
4. Role in promotion- mix : A firm uses various promotional techniques viz. personal
selling, advertising, direct marketing, sales promotion, and publicity etc. to spread
awareness or communicate about its product or services to the target audience.
Knowledge of the buying motives of the target audience can help the marketers to
understand the forces that stimulates their target audience to make a purchase. A
decision can be made whether the target audience is driven by rationality or is
stimulated by emotions. Accordingly, a suitable promotion mix comprising of
appropriate promotional technique, the type of advertising appeal used in the
message, the body copy of the message/ advertisement etc. can be determined to
communicate with the target audience effectively.
5. Determining channels of distribution : There are some consumers that prefer buying
product or service from the wholesaler itself. They do not prefer buying commodities
from some middlemen or retailer. Such customers are influenced by “self- protective”
buying motives while making a purchase. Therefore, a marketer must take into
consideration the ‘buying motives’ of the customers before taking any logistics
related decision.
6. Contributes to firm’s goodwill : Firms try to satisfy their customers by understanding
their buying motives and cater their needs accordingly. Customer satisfaction in turn
results into a positive image of the firm in the market which leads to the creation of
firm’s goodwill in the market.
7. Increases Customer trust and loyalty : Since, firms ensure their customers’ satisfaction
by analysing their buying motives, it builds the customer’s trust in the brand or firm.
Customer trust further induces the customer’s loyalty to the brand or firm.
5.4. TYPES OF BUYING MOTIVES
Buying motives can be classified as follows (Figure1):

Rational product
buying motives
Product buying
motives Emotional
product buying
motives
Buying Motives
Rational
patronage
Patronage buying motives
buying motives Emotional
patronage
buying motives

Figure 1: Types of buying motives flow chart, let us learn them in detail.

1. Product buying motives :

Under product buying motives, a customer is said to be motivated to buy a specific

product. This motivation is induced by various product specific factors like size, colour,
package, quality, quantity, and design etc.

Product buying motives can be further classified into rational buying motives and
emotional product buying motives.

i. Rational product buying motives

When a buyer decides to purchase a certain product after carefully or logically considering
each and every aspect associated with the purchase. Such purchase is said to be influenced
by rational buying motives.
Some of the rational product buying motives are listed below:

 Safety or Security: Security or safety is one of the significant rational products

buying motive of the customers which influences their purchase decision. For
example, if one wishes to buy an iron safe or a locker to safeguard his
jewellery or any other expensive item, he shall examine each and every aspect
of the iron safe or the locker in terms of its strength, space, and security etc. to
make sure that his belongings remain safe therein.

 Economy: Operating or maintenance cost of the product also plays a crucial

role while making purchase decision. Customers often, prefer buying those
 goods or commodities who’s operating or maintenance costs are
comparatively low. For instance, customers belonging to middle income group
prefer buying a diesel or CNG operated cars since their prices are lower than
petrol prices. Also, they give better mileage than petrol cars.
 Price of the product: It is the first and foremost factor that buyers consider
while making a purchase decision. Buyers has a tendency of comparing the
prices of the similar goods (substitute in nature) and buy the one which is
relatively cheaper.

 Suitability of the product: Suitability is one of the buying motives which

influences a buyer’s purchase decision. A smart buyer usually buys those
products that suits to his requirements. For instance, a buyer owns a small
house and is looking for a dining table for his house, will go for a compact one
rather than a big dining table as it will occupy more space.

 Versatility of the product: A product is said to be versatile when it can be put

to multiple uses. A buyer’s purchase decision is influenced by the versatility
of the product.

 Durability of the product: Durability means long lasting that is something

superior in quality which lasts longer in comparison to other products.
Durability is one such factor that influences a buyer’s purchase behaviour.
Buyers even pay premium price for durable products. For example, buyer
usually prefer teak or rosewood, though they are comparatively costlier over
any other inferior wood for the furniture.

 Convenience/ comfort of the product: Buyers prefer buying those products that
are convenient to use. For instance, a domestic gas stove. Here, the buyer
prefers the most convenient model so that he can easily use it.

Emotional product buying motives

When a buyer decides to purchase a certain product without carefully or logically, but
emotionally considering every aspect associated with the purchase. Such purchase is said
to be influenced by emotional buying motives.

ii. Emotional product buying motives include the following:

 Prestige or Pride: Prestige is the one of the strongest emotional buying motives
that buyers possess. Buyers feel proud of possessing certain products and
purchase those products to ensure their social status in the society. For
instance, preference for diamond jewellery, buying a newly launched iPhone
model, new luxurious automobiles etc.

 Emulation: Some people buy certain products just because some other person
owns that product. In other words, some buyers try to imitate others and tend
to buy what others own. For instance, a boy is likely to buy a new bike just
because his friend has bought the latest model of that bike. Similarly a
housewife wishes to buy a diamond ring just because some of her relatives has
bought one.
  Affection: Affection or love is the most common emotional buying motive.
Buyers tend to buy certain commodities or goods out of their love or affection
for someone. For example, a son buys an expensive watch for his dad and a
mother gifts a costly ring to her daughter out of her love and affection.

 Individuality or distinctiveness: Desire to look different from others is one of

the emotional buying motives. For instance, some people wear a specific type
of clothes to make himself different and ensure their individuality.

 Pleasure or recreation: A wish for pleasure or recreation also induces a buyer

to buy certain goods. People buy goods like musical instruments, radios etc
with a desire for pleasure or recreation.

 Habit: Habit is a significant emotional buying motive. People become habitual

of some goods and they need them at any cost. For instance, People get
addicted with alcohol or cigarettes; some facewash that suits your skin;
sleeping pills etc.

2. Patronage buying motives

Under patronage buying motives, a customer is said to be motivated to buy from a

specific seller or shop. This motivation induced by various seller or shop specific factors
like convenience, variety, shop reputation, and credit facility etc.

Patronage buying motives can be further classified as rational patronage buying motives
and emotional patronage buying motives. Let us learn them.

i. Rational patronage buying motives

When a buyer decides to patronize or purchase from a certain shop or seller after carefully
or logically considering each and every aspect associated with it. Such purchase is said to
be influenced by rational patronage buying motives.

Some rational patronage buying motives are as follows:

Convenience: Convenient location or working hours is the most common

rational patronage buying motive. A Buyer is likely to patronise a shop which
is located at a convenient place. For example, local grocery shops, chemist
shops, dairy etc.
In addition to convenient location convenient working hours also induces a
buyer to patronise a specific shop. For instance, a 24- hours open chemist
shop; grocery shop with long working hours; other convenience shops like
24*7 etc.

Lower prices: Price has always been the most dominating factor influencing a
buyer’s purchase decision. A buyer is most likely to patronise a shop which
charges him a price which is comparatively lower than the price charged by
 others. A special discount or rebate always motivates a customer to patronise
the shop.

Credit facilities: Shopkeepers tend to offer certain privileges to the customers

to engage them. One such privilege is credit facility. Many shopkeepers sell
their products to the customers on credit basis and maintain a register/ record
of the same. Later, the buyer at his convenience pays back to the seller.

Wider choices: Customer always prefers shops that offers them with wide
variety of options. Hence, wider choice factor induces a customer to patronise
a shop and is considered as an important rational consideration.

Reputation of the shop: Shopkeepers who are honest in their dealings and offer
fair prices to their clients are always preferred by the customers. A customer
automatically starts patronising a shop or shopkeeper who has good reputation
in the market.

ii. Emotional patronage buying motives

When a buyer decides to patronize or purchase from a certain shop or seller without
logically but emotionally considering each and every aspect associated with it. Such
purchase is said to be influenced by emotional patronage buying motives.

Some emotional patronage buying motives are as follows:

 Shop appearance: Sometimes, customers find some shop attractive because of
their ambience, display of the goods, theme of the shop etc., so they start
patronising that particular shop.

 Recommendations: Recommendations plays a significant role in determining a

buyer’s purchase behaviour. Word of mouth or recommendation by some
person for example family member, peer group, friends, relatives etc. plays an
important role in influencing a buyer purchase pattern.

 Emulation: Some people buy certain shops or shopkeeper just because other
peoplebuy from that shop. In other words, some buyers try to imitate others
and tend to buy from those shops from where other people buy.

 Prestige: Status or prestige is one of the significant emotional patronage

buying motives. For example, people prefer visiting five- star hotels for
dinner; people buy clothes from certain top brands etc.

 Habit: Habit is one of the emotional patronage motives. People are often seen
buying products from some shops simply out of their habit of buying it from
that particular shopkeeper or shop.
5.5. BUYER MOTIVATION
Buyer motivation refers to a set of psychological factors that influences a buyer’s purchase
decision. In other words, these are the factors that drives a person to buy a product or service.
For instance, a hungry person is motivated to buy food; people are motivated to buy new
clothes during festivals etc. The concept of ‘buyer motivation’ has originated from a process
known as the “Buyer’s Journey.” (Figure 2)

Figure 2: Stages of a buyer’s journey

There are mainly three stages involved in a buyer’s journey:

1. Awareness: This is the first stage of the buyer’s journey. In this stage, the buyer
becomes aware of the problem,need or want. To rephrase it, the buyer tries to identify
the problem for instance, the buyer is feeling hungry or thirsty etc. In this, the buyer
recognises the need, want or problem. The identified problem, need or want acts as
stimulus that motivates the buyer to involve in information search. However, the
stimulus can be internal or external. For example, a buyer was feeling hungry and
started searching for a restaurant is an internal stimulus on the other hand the buyer
searching for a restaurant on some friend’s recommendation is an external stimulus.
2. Information search: At this stage, the buyer is well aware of the problem. The buyer
has successfully identified his want or need. Now, the buyer tries to explore the
various options that can satisfy his need or solve his problem. The buyer undertakes
extensive research and gathers information about each available option. For example,
the buyer was feeling hungry and started exploring the nearby restaurants.
3. Decision: This is the final stage where the buyer makes the decision and chooses the
best suitable option among all other available options.The buyer is determined that the
chosen option will solve his problem or satisfy his need or want to the fullest.

Check Your Progress

1. State whether the following statements are: True or False

i. A motive is an inner urge that moves a person to some action.

ii. Buying motives assists in product planning.
iii. Buying motives has no role in promotion- mix.
iv. Safety is a type of emotional product buying motive.
 v. Rational Patronage buying motives are influenced by emotions.

2. Fill in the blanks:

i. Buying motives can be classified as ___________ and _______________ motives.

ii. The three stages of a buyer’s journey are ______________, _____________ and
__________.
iii. Emulation or imitation is a type of _______________ product buying motive.
iv. Patronage buying motives are concerned with patronising a specific ___________.
v. __________ and ___________ are examples of rational patronage buying motives.
vi. Reputation is a type of ________________ buying motive.
vii.____________________ stage of buyer’s journey is concerned with identification
of the problem.
viii. A stimulus can be _________________ or __________________.
ix. A buyer’s motivation is driven by a set of ______________________ factors.
x. Individuality is a type of ______________ buying motive.
3. What do you mean by Buying motives? What is its importance in personal selling?
4. What do you mean by emotional patronage buying motive?

5.6. LET US SUM UP

A consumer is said to have a motive behind his each and every purchase. In other words, A
consumer’s purchase depends upon the motives that he wishes to fulfil by buying that
product. These motives are stimulated by various customer – specific factors like
physiological, societal, and financial factors etc.
The factors that stimulate or motivate the customer to buy a particular product are referred as
‘buying motive’. A customer is said to make a purchase not just to own that particular
product but to satisfy these forces that are the ‘buying motives.’ To reiterate, ‘buying
motives’ are the “internal feelings” of a customer/ buyer and he tries to gratify them to the
fullest.

The understanding of the ‘Buying motives’ concept is necessary due to the reasons: 1.
Improvising salesmanship 2. Assists in product planning 3. Facilitates in pricing decisions 4.
Role in promotion- mix 5. Determining channels of distribution 6. Contributes to firm’s
goodwill 7. Increases Customer trust and loyalty.
Buying motives can be classified into product buying motives and patronage buying motives,
which can be further classified into emotional product buying motives and rational product
buying motives and emotional patronage buying motives and rational patronage buying
motives respectively.

Some emotional product buying motives areprestige, emulation, affection, individuality,

pleasure, habit. Some rational product buying motives aresafety, economy, price, suitability,
versatility, durability, convenience.

Some emotional patronage buying motives are appearance, recommendations, habit,

emulation, prestige. Some rational patronagebuying motives areconvenience, lower prices,
credit facilities, wider choices, reputation of the shop.

Buyer motivation refers to a set of psychological factors that influences a buyer’s purchase
decision. In other words, these are the factors that drives a person to buy a product or service.
There are mainly three stages involved in a buyer’s journey: Awareness, information search,
decision.

5.7. KEY WORDS

Buying motives: factors that stimulate or motivate the customer to buy a particular product

Buyer motivation refers to a set of psychological factors that influences a buyer’s purchase
decision.

Emotional patronage buying motives: When a buyer decides to patronize or purchase from
a certain shop or seller without logically but emotionally considering each and every aspect
associated with it.

Emotional product buying motives: When a buyer decides to purchase a certain product
without carefully or logically, but emotionally considering every aspect associated with the
purchase.

Patronage buying motives: a customer is said to be motivated to buy from a specific seller
or shop.

Product buying motives: a customer is said to be motivated to buy a specific product.

Rational product buying motives: When a buyer decides to purchase a certain product after
carefully or logically considering each and every aspect associated with the purchase

Rational patronage buying motives: When a buyer decides to patronize or purchase from a
certain shop or seller after carefully or logically considering each and every aspect associated
with it.

5.8. ANSWERS TO CHECK YOUR PROGRESS

1. i. True ii. True iii. False iv. False v. False
2. i. Product and patronage ii. Awareness, information search and decision iii. Emotional iv.
Shop or shopkeeper v. Lower prices and wider choice vi. Rational vii. Awareness viii.
Internal and external ix. Psychological x. Emotional product

5.9. TERMINAL QUESTIONS

1. Define buying motives.
2. Discuss the significance of buying motives in personal selling.
3. Explain the various types of buying motives with examples.
4. Differentiate between rational and patronage buying motives
5. Write short note on the following:
a) Buyer motivation
b) Emotional patronage buying motives
c) Rational product buying motives
d) Buyer’s journey
e) Emulation
 UNIT 6: BUYER BEHAVIOUR
Structure
6.0. Objectives
6.1. Introduction
6.2. Concept of Buyer Behavior
6.3. Difference between Buyer and Consumer
6.4. Factors affecting/ influencing Buyer Behavior
6.5. Let Us Sum Up
6.6. Case Study
6.7. Key Words
6.8. Answers to Check Your Progress
6.9. Terminal Questions

6.0. OBJECTIVES
After studying this unit, you should be able to:
 explain the concept of buyer behaviour;
 differentiate between a buyer and consumer; and
 describe the factors affecting/ influencing a buyer’s behaviour.

6.1. INTRODUCTION
Buyers are the foundation of any business organisation. No business organisation can grow,
survive or excel without buyers or customers. Therefore, marketing firms must aim at
understanding the behaviour of its buyers. They must conduct thorough research to find out
“What factors drive his buyer to act?” “Who are the people influencing the buying decision
of the buyer?” “What are the needs of their buyers” “What is the occasion for which the
buyer is likely to make purchase?” “What is the frequency of buying?” Such questions will
help the marketers to develop a deeper understanding of their buyer and formulate more
appropriate strategies.
Since, buyer behaviour is a psychological construct which is complex to understand and act.
Therefore, well-planned and equipped strategies are required to conduct an extensive market
research and analyse the results carefully. In this unit, you will learn
6.2. CONCEPT OF BUYER BEHAVIOUR
Buyer behaviour refers to the way a buyer acts while making a purchase. It refers to the way
in which a buyer takes decision to actually buy a product or not. Buyer behaviour is also
termed as “consumer buying behavior”. However, the term consumer buying behaviour is
limited to an individual buyer while using the term “buyer behaviour” a buyer can be an
individual, group of individuals, organisation etc. A marketer tries to understand the
underlying conditions or circumstances that drives a buyer to behave in a particular manner.
In other words, the marketer tries to understand what makes a buyer to buy a given product
and not some other product. Some important definitions of buyer behaviour are as follows:
According to Prof. Philip Kotler, “Buying behavior is the decision process and acts of
customers involves in buying and using products.”
According to E. W. Condiff, R. R. Still and R. A. Govoni, “Buyer behavior may be viewed as
orderly process whereby the individual interacts with his/her environment for the purpose of
making market place decisions on products and services.”
According to C. G. Waltters and W. G. Paul, “Consumer behavior is the process whereby
individuals decide what, when, where, how and from whom to purchase goods and services.”
According to Frederick Webster, “Buyer behavior is all psychological, social and physical
behavior of potential customers as they become aware to evaluate, purchase, consume and
tell other people about the product and services.”
Buyer behaviour is the process where people make decisions regarding what, when, how to
buy and use the products. Buyer behaviour is the driving force behind any market process as
it helps in understanding what the consumer actually wants.

From the above definitions we can conclude that The concept of ‘buyer behaviour’ facilitates
the marketer to understand his customer well and make its ‘marketing mix’ strategies after
considering his target buyers’ behaviour with due diligence.

6.3. DIFFERENCE BETWEEN BUYER AND CONSUMER

A buyer also known as customer, is the person who actually buys the product or service.
Buyer is the person who pays for the product or services availed. A buyer may buy a product
or service with an intent to resell or consume it. On the contrary, a consumer is the person
who ultimately consumes the product or service. A consumer is said to be the end user of the
product or service. For instance, Ram’s father buys a pair of shoes for Ram. In this case
Ram’s father is the buyer or customer and Ram is the consumer. On the other hand, Ram’s
father buys a pair of shoes for himself. In this case Ram’s father is the buyer as well as the
consumer of the product. The following table outlines the difference between a buyer and a
consumer taking various basis into consideration (Table 1).
Table 1: Difference between buyer and consumer
Basis Buyer Consumer
Meaning A person who purchases the A person who uses or is the end
product or service. user of the product or service.

Resell A buyer can resell the goods. A consumer can not resell the
goods since he is the end user of
the product or service.

Purchase of goods A buyer needs to buy a A consumer need not buy a

product or service. product or service.
Purpose To resell or consume the To consume the goods and
goods and services services
Price of the product Price is paid by the buyer Price may or may not be paid by
the consumer
Target group Individual or organisation Individual, family or group of
people

6.4. FACTORS AFFECTING BUYER BEHAVIOUR

There are five major factors that affects a buyer behavior viz. cultural, social, personal,
psychological, and economical factors. The below given flowchart explains these factors in
detail (Figure 1). Let us learn them in detail.

Figure 1: Factors affecting buyer’s behavior flowchart

1. Cultural factors: Buyer’s behavior is influenced by various cultural factors like the
buyer’s culture, social class and sub- culture. Let us learn various cultural factors.
(a) Culture: Culture is the most significant factor affecting a buyer’s purchase behavior.
Cultural factors include factors like ethics, values, wants, needs, preferences,
perceptions etc. Cultural factors are the observed factors that a person deduces by
observing his family members or the ecosystem he lives in.
(b) Sub- culture: A culture generally, consists of various subcultures like religions,
geographic groups, racial group, nationality, caste etc. These subcultures share same
set of values or beliefs. A marketers may segment the market on the basis of these
subcultures and can accordingly cater the needs of the target segment. For instance, a
marketer may target a specific religious group.
(c) Social class: Every society possess some form of social class. A social class is
determined on basis of various factors like education, wealth, income, occupation etc.
A marketer may aim at targeting a specific segment of social class. For example,
apple inc. targets people falling in higher income group.

2. Social factors: Social factors also influence a buyer’s purchase behaviour. These
factors include various factors like family, reference group, roles and status etc. let us
learn various social factors.
(a) Family: Family plays a significant role in influencing a buyer’s decision about a
product or brand. Family is said to be the strongest factor that impact a person’s
decision. Marketers must aim at understanding the role of the family members like
parents, husband, wife, children, siblings etc. in influencing a purchase decision.
(b) Reference group: Reference group consists of the people whose suggestions or
advices matter to one. Reference group generally consists of people like friends,
colleagues, relatives, neighbours etc. who we look up to while making a purchase
decision. For instance, buying an iPhone instead of an android phone because your
friend has an iPhone.
(c) Role and status: A person’s buying behaviour is significantly influenced by the role or
status one holds in the society. A person’s role or status is determined by the
profession or the group of people one is associated with. For example, working in a
finance company, a teacher, a housewife, a doctor, chairman of a housing society etc.
A female playing dual roles of housemaker and a teacher, her purchase decision will
be influenced by both the roles she is playing in the society.

3. Personal factors: Personal factors are equally important in determining a buyer’s

purchase decision. These include factors like age, income, occupation, lifestyle,
personality. Let us learn various personal factors.
(a) Age: The age of a person influences his purchase decisions. As you must be aware
that people pass through various stages of life cycle like from a child to an adult, from
unmarried to a married couple, from parents to old age etc. at each stage a person’s
preference of products or services varies. For example, young buyers prefer flashy or
fashionable clothes whereas an elderly person may prefer a comfortable and simple
attire.
(b) Income: Income is the most critical factor influencing a buyer’s purchase decision.
The first and the foremost requirement to make a purchase is affordability. A buyer is
said to form demand of a product only if the product is in the reach of the buyer’s
income or affordability. People belonging to higher income group may purchase
expensive items as they can afford it.
(c) Occupation: Occupation influences a buyer’s behaviour while making a purchase. A
buyer tends to make purchase as per his/ her profession. For instance, a teacher will
buy clothes according to his/her profession and a doctor will buy clothes as per his job
considerations.
(d) Lifestyle: Lifestyle is a way or an attitude that person follows to live in a society and
lead his/ her life. Lifestyle is another important factor influencing a buyer’s
behaviour. For instance, a person leading a healthy lifestyle, tend to buy more healthy
stuff than unhealthy or junk food.
(e) Personality: Personality refers to the totality of the behaviour a person in given
situations at different point of times. Personality traits consists of factors like
introvert, extrovert, aggressive, submissive, dominant etc. A marketer may always
segment the audience on the basis of their personality and cater their needs
accordingly.

4. Economic factors: Economic factors are concerned with the purchasing power of a
buyer. These includes factors like personal income, family income, income
expectations, liquid assets, consumer credit etc. let us learn various economic factors.
(a) Personal income: Many economists have tried to correlate a person’s income with his/
her spending. As per them, a person’s spending increases with an increase in his/ her
income. Therefore, personal disposable income of a buyer is a significant factor
influencing a buyer’s behaviour.
(b) Family income: The size of the buyer’s family or the aggregate income of the family
influences a buyer’s purchase decision. A small or nuclear family is said to spend less
whereas a big family may spend more.
(c) Income expectations: Expectations plays an important role in determining a buyer’s
purchase behaviour. A buyer expecting a lower income is tend to spend less. On the
other hand, buyer expecting a higher income may spend more. Therefore, marginal
propensity to consume or save of a buyer is greatly influenced by the level of
expected income.
(d) Liquid assets: Liquid assets refer to those assets which can easily be converted into
money without much variation in the value of the asset, for example: cash, marketable
securities etc. A buyer’s behaviour shall be influenced by the amount of liquid and
fixed assets held by the buyer.
(e) Consumer credit: Nowadays, marketers have started offering credit to their buyers.
Marketers are following the notion of “Buy now, Pay later”. For example, Bajaj
finance offers zero cost EMI to buyers.
 5. Psychological factors: Psychological factors consist of four factors these are
motivation, perception, learning and attitude (figure 2). Let us learn various
psychological factors.

Figure 2: Psychological factors affecting buyer’s behaviour

(a) Motivation: Motivation plays an important role in determining a buyer’s behaviour.
People have various needs that motivates them and influences their behaviour. Some
of these needs are physiological needs, safety needs, social needs, esteem needs, and
self- actualisation needs. An unfulfilled need is said to motivate a buyer. However,
once a need is fulfilled it no longer motivates the buyer. Hence, it may not be able to
influence the buyer’s behaviour. For instance, a person working at a higher position in
an organisation might not feel motivated with an increment in the salary. However, a
job promotion may interest him.
(b) Perception: A buyer’s purchase behaviour is critically influenced by the buyer’s
perception about the brand or product. Perception refers to the image that a person
holds about a particular product or brand in his/ her mind. This perception is formed
on the basis of cognitive processing going through a buyer’s mind. A buyer or
customer comes across various advertisements, reviews, comments etc. about a brand
or product. These brand or product related activities may lead to formation of
cognition in buyer’s mind based on which a buyer forms an impression of the brand
or product. For instance, a product having maximum positive customer reviews or
comments is likely to form a positive perception in the buyer’s mind.
(c) Learning: Learning is an ongoing process that takes place over a period of time. It
begins before a person buys a product or service and continues after he/ she buys it.
However, when a buyer buys a product or service, he/she is likely to gather more
information about the product or service.
Learning may be conditional learning, cognitive learning, social learning, etc. In conditional
learning, a buyer is exposed to a recurring situation. Hence, he/ she develops a strategy to
tackle the situation. Under cognitive learning, a buyer uses his/ her skills or knowledge
acquired over a period of time, to seek satisfaction out of the purchase he/ she made. In social
learning the person learns new behaviours by observing or imitating other persons.
 (d) Attitude: A buyer possesses certain belief or attitude towards a product or brand that
guides him/ her to behave in a certain manner. This attitude or belief defines the
image of a brand or product in the market. Marketers must aim at launching certain
campaigns that can modify or change the existing attitude or belief in his favour.

Check Your Progress A

1. State whether the following statements are: True or False

i A consumer is a person who uses the product.

ii A buyer cannot resell products.
iii Cultural factor does not influence buyer behavior.
iv Attitude is a type of psychological factor.
v Age influences a buyer’s purchase decision.
2. Fill in the blanks:
i Price of the product is paid by a ____________.
ii Income is a ________________ factor which influences a ____________.
iii Motivation is a type of __________________ factor.
iv A buyer can either _________ or ___________ the product.
v Consumer credit and income expectation falls under ________________ factors.
vi Learning is of two types: ______________ and _________________.

6.5. LET’S SUM UP

Buyers are the foundation of any business organisation. No business organisation can grow,
survive or excel without buyers or customers. Therefore, marketing firms must aim at
understanding the behaviour of its buyers.
Buyer behaviour refers to the way a buyer acts while making a purchase. It refers to the way
in which a buyer takes decision to actually buy a product or not. Buyer behaviour is also
termed as “consumer buying behavior”.
A buyer also may be a customer, is the person who actually buys the product or service.
Buyer is the person who pays for the product or services availed. A buyer may buy a product
or service with an intent to resell or consume it. On the contrary, a consumer is the person
who ultimately consumes the product or service.
There are five major factors that affects a buyer behavior viz. cultural, social, personal,
psychological, and economical factors.
Cultural factors include: the buyer’s culture, social class and sub- culture.
Social factors include: various factors like family, reference group, roles and status.
Personal factors include: factors like age, income, occupation, lifestyle, personality.
Economic factors include: factors like personal income, family income, income expectations,
liquid assets, consumer credit.
Psychological factors: consist of four factors these are motivation, perception, learning and
attitude.

6.6. CASE STUDY

Case study 1
Wipro: One Of The Foremost Names In The Global It Landscape

Wipro Ltd is a global information technology, consulting, and outsourcing company with
140,000 employees serving over 900 clients in 57 countries. It helps customers perform better
by leveraging our industry-wide experience, technology expertise, comprehensive portfolio
of services, and a vertically aligned business model. They are trusted partners for global
businesses seeking to 'differentiate at the front' and 'standardize at the core' through
technological interventions. In a competitive scenario, it is important to be highly customer-
oriented. At Wipro, they have consciously adopted an outside-in' approach. They focus on
customers challenges and the trends driving the customer's industry landscape, and work
together to address these problems. These problems could range from strategic issue such as a
customer intending challenges of increasing operational efficiency. They ensure customer
focus by keeping a constant tab on our customers' needs. Hence, customer inputs and
research are of prime importance. They try to identify the trends that influence customers and
their technology demands. They conduct quarterly and annual pulse surveys to assess the
factors considered significant by customers while taking decisions and their satisfaction
levels after engaging with us. Wipro engage with its customers in multiple ways. This
includes a combination of traditional and non-traditional means with a focus to bridge
customers' needs with their offerings.
Wipro extensively leverages interest and social media platforms such as Twitter, Facebook,
and blogs, where they have built a community of customers, employees, academic, and other
interested stakeholders to engage in discussions on any relevant topic. For some specific large
accounts, they have created a customized platform as part of an account-based marketing
(ABM) initiative wherein our communication is customized to suit the needs of specific
accounts. They also engage through traditional means including seminars, trade events, and
publications
• They also engage through with the influencer community extensively including analysts and
advisors. These influencer communities reach out to the customers.Their customer-centric
approach is important because it helps them to understand what is driving the business, what
is impacting the top-lines and bottom-lines, and what is the next big thing that will transform
the lives of people.
Source: Adapted by Sinha, Pyush (2013), Marketing, Asian Edition published in 2013,
Oxford University
Questions
1. Wipro's customer engagement program outlines an outside-inapproach. What internal
(inside-out) changes do you think the company needs toundertake to increase its customers
focus?
2. Global players such as Wipro have found a favorable economic environment and a
challenging technological environment. What measures should the company take in order to
thrive on the changes in its business environment.
3. How do you think Wipro should keep aware of the changes in consumer buying behavior
so that they are able to achieve their objective of being highly customer oriented?

Case study 2
Case Study: Emami Fair And Handsome: Beauty regimes For Men?

Emami, has launched a unique fairness cream for men to make skin fair and handsome.
Emami offers this cream to men who want to look younger. The cream also helps in relieving
stress and fatigue signs-giving men's tough skin a firmer look.
Today, men want to look stylish at all times, and the rise in the demand for male grooming
products prove this fact. According to an A.C. Nielsen survey conducted amongst 1000
SECA and B men in Mumbai, Delhi, Kolkata, and Hyderabad on male grooming, every
second Indian man from the metros has a monthly date with the beauty salon. Men want to
indulge themselves in daily beauty regimes, and it is not only women who want to pamper
themselves.
Men have increasingly started using gels, deodorants, and creams, which has led companies
to launch several beauty products for men in recent years.

Source: Jomol (2010)

Questions

1. Why do you think younger men are most likely to use skincare products?
2. How do you think companies like Emami can better position their men's skincare
ranges?
3. Consider your own perceptions of men's skincare products. If you are a man: have
youever bought any such product? If you are a woman: have you ever bought a male
friend or partner any such product, or does he buy his own? If he buys his own, what
are your perceptions of this behavior? If you bought such product for him, why do
you think he does not buy these products for himself?

6.7. KEYWORDS
Attitude: A buyer possesses certain belief or attitude towards a product or brand that guides
him/ her to behave in a certain manner
Buyer behaviour: Buyer behaviour refers to the way a buyer acts while making a purchase.
It refers to the way in which a buyer takes decision to actually buy a product or not.
Buyer: A buyer also known as customer, is the person who actually buys the product or
service.
Consumer: A consumer is the person who ultimately consumes the product or service.
Culture: Cultural factors are the observed factors that a person deduces by observing his
family members or the ecosystem he lives in.
Lifestyle: Lifestyle is a way or an attitude that person follows to live in a society and lead his/
her life.
Liquid assets: Liquid assets refer to those assets which can easily be converted into money
without much variation in the value of the asset, for example: cash, marketable securities etc.
Perception: Perception refers to the image that a person holds about a particular product or
brand in his/ her mind.
Personality: Personality refers to the totality of the behaviour a person in given situations at
different point of times.
Social class: A social class is determined on basis of various factors like education, wealth,
income, occupation etc.
Sub- culture: A culture generally, consists of various subcultures like religions, geographic
groups, racial group, nationality, caste etc.
6.8. ANSWERS TO CHECK YOUR PROGRESS
A. 1. i.True ii. False iii. False iv. True v. True.

2. i Buyer ii personal and buyer behavior iii psychological iv consume and resell v economic
vi conditional and cognitive

6.9. TERMINAL QUESTIONS

1. Define the term ‘buyer behaviour’.
2. Differentiate between a buyer and a consumer.
3. State the various factors affecting a buyer’s behavior.
4. How income expectations influence a buyer’s behavior. Illustrate with the help of an
example.
5. Discuss the role of cultural and personal factors in influencing a buyer’s behavior.
6. Write short notes on the following:
(a) Culture
(b) Motivation
(c) Types of learning
(d)Impact of economic factors on buyer behavior
 UNIT 7: SALES FORCE MOTIVATION
Structure
7.0. Objectives
7.1. Concept of Motivation
7.2. Dynamic Nature of Motivation
7.3. Motivation and Need
7.4. Maslow’s Theory of Need Hierarchy
7.5. Motivational Techniques for the Salespersons
7.5.1. Financial Motivators
7.5.2. Non- Financial Motivators
7.6. Let Us Sum Up
7.7. Key Words
7.8. Answers to Check Your Progress
7.9. Terminal Questions

7.0. OBJECTIVES
After studying this unit, you should be able to:
 explain the concept of motivation;
 explain the dynamic nature of motivation;
 differentiate between motivation and need;
 describe the hierarchy of needs; and
 discuss various financial and non- financial techniques of motivation.

7.1. CONCEPT OF MOTIVATION

Motivation is a stimulus which impels an individual to respond. If the motivation is positive,
a person is likely to give his/ her full strength to a given work. Some scholars have tried to
define motivation, few of them are as follows:

According to Vitiles,“Motivation represents an unsatisfied need which creates a state of

tension or disequilibrium, causing the individual to make in a goal-directed pattern towards
restoring a state of equilibrium by satisfying the need.”
According to Memoria,“A willingness to expend energy to achieve a goal or reward. It is a
force that activates dormant energies and sets in motion the action of the people. It is the
function that kindles a burning passion for action among the human beings of an
organisation.”

According to Dubin, “Motivation is the complex of forces starting and keeping a person at
work in an organization.”

According to Vance,“Motivation implies any emotion or desire which so conditions one’s

will that the individual is properly led into action.”

According to Lillis,“It is the stimulation of any emotion or desire operating upon one’s will
and promoting or driving it to action.”

According to the Encyclopedia of Management,“Motivation refers to degree of readiness of

an organism to pursue some designated goal and implies the determination of the nature and
locus of the forces, including the degree of readiness.”

According to Berelson and Steiner,“A motive is an inner state that energizes, activates, or
moves and directs or channels behaviour goals.”

7.2. DYNAMIC NATURE OF MOTIVATION

Motivation is the driving force that stimulates a person to act. Motivation is considered to be
dynamic in nature which means it keeps on changing with respect to the changing
circumstances. Needs and wants of a person constantly changes due factors like the person’s
physical condition, environment, social network etc.
When a person achieves or fulfills one goal or need, he/ she tries to achieve or attain the new
goals. Some psychologists have put forward certain reasons for the varying needs and
advocated that “needs and wants are constantly changing” because:
a) An individual’s existing need is never completely satisfied, which keeps on
stimulating him to achieve complete satisfaction.
b) Once a need is satisfied, the next higher- level need arises.
c) An individual is said to set up new higher goals once he fulfills the basic goals
For instance, previously companies used to give a plastic bag to their customers to carry the
product or goods. Now, as customers are becoming more environment conscious, these firms
have shifted from plastic bags to paper bags.

7.3. MOTIVATION AND NEED

The desire to fulfil a conscious or unconscious need drives a person to take action. The
energy of this which drives a person to perform or make choices is known as motivation. For
instance, a person is feeling hungry. This need (hunger) will result into physiological
discomfort to the person, known as drive (discomfort). As a result of which, a person gets
motivated to buy food. The below figure well demonstrates this process:
 Need
(Hunger)

Drive
(Physiological
discomfort)

Motivation
(Buy food)

Figure: Process of need, drive and motivation

A marketer may plan to direct or influence the energy (motivation), generated through the
need, towards his offerings. For instance, A marketer wants to advertise for his newly opened
yoga centre. The marketer will probably come across a number of motives for which people
will come to a yoga class. Some of the motives will be attainment of spirituality, making
social circle, lose/ maintain weight etc. In this case the marketer must try to plan such
promotion campaign that congruent to the majority of the people’s motive to join a yoga
centre. The marketer may aim at targeting the physical well- being as its advertising agenda.
Alternatively, the marketer can plan to target a niche market by communicating the agenda of
spiritual fulfilment.

7.4. MASLOW’S THEORY OF NEED HIERARCHY

Maslow need hierarchy theory of motivation was given by an American psychologist,
Abraham H. Maslow in the year 1943. This theory explains the underlying human
motivations with respect to the different level of human needs. The theory states that a person
tends to fulfill his needs in a hierarchical manner starting from a basic need and advancing to
higher level needs. In other words, higher level needs are not likely to motivate a person
unless his basic needs are fulfilled. Maslow have categorized these needs into 5 categories
(Figure 1):
 Self‐ actualization needs
(Sense of fulfillment)

Esteem needs
(Status, pride, confidence etc.)

Social needs
(Family, friends etc.)

Safety needs
(job security, personal safety etc.)

Physiological needs
(Food, water, shelter etc.)

Figure 1: Maslow need hierarchy pyramid

1. Physiological needs: Physiological needs are the basic needs a person requires in
order to survive. Some examples of physiological needs are water, food, shelter, sleep
etc. If these needs are not fulfilled or satisfied, it will become difficult for a person to
survive.

2. Safety needs: The second level of need is safety needs. Once the physiological needs
of a person have been satisfied, he/ she asks for safety or security in life. The safety or
security needs are concerned with job security, financial security, good health, and
personal security etc.

3. Social needs: Social need is the third level of need. Social need is concerned with the
love and belongingness. A person needs to feel a sense of belongingness and love
either from a large group of social networks or a small group of connected people like
family or friends. This connection can also come from association with some
professional group, social media, religious group etc.

4. Esteem needs: The fourth level of the need hierarchy is esteem needs. These needs are
concerned with a person esteem that is respect, status, prestige, and validation by
others etc. It is also termed as self- esteem which means how a person feels for
himself. Lack of this esteem may result into inferiority complex or low confidence
level.

5. Self- actualization needs: Self- actualization needs are the most advanced or highest
level of needs of a person. At this level a person feels that his full potential has been
utilized and he/she has reached to the best of his/ her capabilities. However, this self-
 actualization feeling is transient since people tend to strive for personal growth
throughout their lives.

7.5. MOTIVATIONAL TECHNIQUES FOR THE

SALESPERSONS
A firm is unlikely to build successful sales even with the best of the product or a service, if its
salesforce is not motivated to make sales. Therefore, marketers must aim at keeping their
salesperson motivated, enthusiastic, and encouraged. The marketer may develop or adopt
certain tools or techniques to keep his salesforce motivated. Some tools and techniques of
motivation are discussed below:

7.5.1. FINANCIAL MOTIVATORS

A person can be motivated using both financial and non- financial tools. Some of the
financial tools of motivation are as follows:

1. Remuneration: Remuneration is the salary or pay given to the employees.

Remuneration is given according to the level or position at which an employee is
working. Firms use remuneration as a tool to keep their employees motivated. They
often offer regular yearly increment in the salary or pay to motivate their employees.

2. Bonuses: Bonus is another tool used by various firms to keep their employees
motivated. Bonus is a form of extra income that an employee gets above his basic
salary or pay. For instance, a firm declared an INR 10000 bonus over the basic salary
to the top 5 salespersons of the year. This way the salesperson is motivated to sell
more so as to get bonus in the end.

3. Commission: Some firms offer commissions to their employees to keep them

motivated. A commission is an additional percentage of pay over the basic pay. For
instance, a marketer announced that the salesperson will be given a 10% commission
on the profits earned by the firm on the car sold by them.
 4. Promotion: Promotion refers to an increase in the authority and responsibility of an
employee along with an increase in the pay or remuneration of the employee.
Promotion is used as a motivational tool by the employees.

5. Fringe benefits: Apart from the above monetary benefits, firms often offer other
monetary benefits to the employees in the form of fringe benefits. Fringe benefits
involve benefits like free car parking, accommodation by the company, holiday
allowance, mobile phone by the company, etc.

7.5.2. NON- FINANCIAL MOTIVATORS

Some non- financial motivators are as follows:

1. Job security: Job security is a significant tool of motivation. A temporary worker or

employee is motivated the most with job security than any other tool of motivation. A
worker or employee no matter what monetary and other fringe benefits they are
getting, if they do not have a secure job there is always a risk of losing the job which
demotivates an employee to perform at his/her full capacity.

2. Challenging work: Challenging work always motivates a dynamic employee or

worker as they may not order doing routine job. A firm should always focus at
making a work challenging through job enlargement and job redesigning.

3. Recognition: An employer must appreciate his employee or worker for his hard work.
A mere token of appreciation or few words of appreciation can boost the morale of
the employee to perform even better in future.

4. Opportunities for Advancement: An employer must ensure that there is no stagnation

in the growth of his employee specially at the prime time of the employee’s career.
Management must give opportunity to their employee to grow so as to keep them
motivated.

5. Empowerment: The management must ensure a representation of the workers or

employees in the critical issues of the firm. They must try to avoid unilateral
decisions. Workers or employees must be involved in the decision- making process as
this will provide them a feeling of belongingness with the company or firm.
Check Your Progress A
1. State whether the following statements are: True or False

i. Maslow hierarchy of need represents five needs.

ii. Physiological needs are at the top of the hierarchy.
iii. Empowerment is a financial motivational technique.
iv. Motivation is driven by needs.
v. Motivation is dynamic in nature.
2. Fill in the blanks:
i. Bonus is a _______________ motivational technique.
ii. _________________ need is at the top of the need hierarchy.
iii. Shelter is an example of _____________ need.
iv. Job security is an example of ______________ need.
v. ____________ and ____________ are two non- financial motivational techniques.

7.6. LET US SUM UP

Motivation is a stimulus which impels an individual to respond.It is the driving force that
stimulates a person to act.
Motivation is considered to be dynamic in nature which means it keeps on changing with
respect to the changing circumstances.
When a person achieves or fulfills one goal or need, he/ she tries to achieve or attain the new
goals.
The desire to fulfil a conscious or unconscious need drives a person to take action. The
energy of this which drives a person to perform or make choices is known as motivation.
The Maslow theory of need hierarchy states that a person tends to fulfill his needs in a
hierarchical manner starting from a basic need and advancing to higher level needs.
A person can be motivated using both financial and non- financial tools.Some of the financial
tools of motivation are remuneration, bonus, commission, promotion etc.Some non- financial
tools of motivation are empowerment, recognition, job security etc.
7.7. KEY WORDS
Commission: A commission is an additional percentage of pay over the basic pay.
Esteem needs: These needs are concerned with a person esteem that is respect, status,
prestige, and validation by others etc.
Fringe benefits: Apart from the monetary benefits, firms often offer other monetary benefits
to the employees in the form of fringe benefits.
Motivation: Motivation is a stimulus which impels an individual to respond.It is the driving
force that stimulates a person to act.
Physiological needs: Physiological needs are the basic needs a person requires in order to
survive
Promotion: Promotion refers to an increase in the authority and responsibility of an
employee along with an increase in the pay or remuneration of the employee
Remuneration: Remuneration is the salary or pay given to the employees.
Self- actualization needs: At this level a person feels that his full potential has been utilized
and he/she has reached to the best of his/ her capabilities.
Social needs: A person needs to feel a sense of belongingness and love either from a large
group of social networks or a small group of connected people like family or friends.

7.8. ANSWERS TO CHECK YOUR PROGRESS

A. 1. i. True ii. False iii. False iv. True v. True.

2. i Financial ii self- actualisation iii basic iv safety v empowerment and recognition

7.9. TERMINAL QUESTIONS

1. Define the term ‘motivation’.
2. Explain the process of need, drive and motivation.
3. State the Maslow theory of need hierarchy.
4. Explain the various financial and non- financial techniques of motivation.
5. Write short note on the following:
a) Dynamic nature of motivation
b) Empowerment
c) Financial motivational techniques
d) Esteem needs
 BCOS-186
Personal Selling and Salesmanship

BLOCK

3
Selling Process
UNIT 8
Sales Process
UNIT 9
Sales Presentation and Demonstration
UNIT 10
Concluding Sales -
______________________________________________________________________________
BLOCK 3 SELLING PROCESS

In the previous block, you have learned about buying motives, buyer behaviour and sales force
motivation. In this block, you will learn about sales process, sales presentation and
demonstration and methods of concluding sales. This block consists of three units:

Unit 8 explains the meaning of sales process, steps in sales process. This unit will also discuss
about the methods of approaching prospects and how to make sales presentation and
demonstration.

Unit 9 discusses the principles of effective presentation, planning the presentation strategy,
essentials, tools and techniques and steps involved in sales presentations and demonstration.

Unit 10 discuss the various techniques of closing sales, sales resistance, handling of objections,
and post sales services.
 UNIT 8 SALES PROCESS
Structure
8.0 Objectives

8.1. Introduction

8.2 What is meant by Sales Process

8.3 Steps of Sales Process

8.3.1 Prospecting and Qualifying

8.3.2 Planning the Sales Call (The Pre-approach)

8.3.3 Approaching the Prospect

8.3.4 Making a Sales Presentation and Demonstration

8.3.5 Dealing with Prospect Objections

8.3.6 Closing the Sales

8.3.7 The Follow Up or Feedback

8.4 Let Us Sum Up

8.5 Keywords

8.6 Answers to Check Your Progress

8.7 Terminal Questions

8.0 Objectives
After studying this, unit you should be able to:

 define and explain the steps in the selling process;

 discuss the needs of a prospect and prospecting methods;
 enumerate various methods of handling customer objections;
 state various methods to approach the prospect; and
 describe the concept of closing the sales.
8.1 Introduction
The selling process is a process wherein a salesperson identifies and qualifies the prospects,
approach them, make a sales presentation, handle their objections and closes a sale. It is the
responsibility of the salesperson to follow up with the existing prospects and further identifies
sales leads to continue the process further. It is 90% preparation on prospects handling and
10% on sales preparation. So, salesperson must have scientific method of handling prospect
and presentation for synergistic effect. In this unit we will discuss the meaning of sales
process, what are the different steps in sales process, what are the various strategies used by
salesperson at different stages of sales process and how can they maintain good relations with
their prospects through feedback of follow up process.

8.2 What is Meant by Sales Process

A sales process is defined as a sequential step that a salesperson performs over a sales cycle
to convert a prospect into a customer. Usually a tried-and-tested process, it acts as a guide for
salespeople to move a deal through the sales pipeline and close it. It is a step-by-step process
which begins long before the contact of the customer and the salesman.

A sales process is a set of activities undertaken to successfully obtain an order and develop
long term customer relationship.A sales pipeline is a visual snapshot of opportunities in
different stages of sales process. It also enables salespeople to know which deals to focus on,
where do they need to put extra efforts, and how much are they likely to make in the coming
months.

Benefits of Sales Process

A structured Sales process provides the following benefits:

 Develops and nurtures deeper understanding with the prospects

 Get more qualified leads
 Helps to implement marketing strategies effectively
 Lowers the customer acquisition cost and bring more customer referrals
 Allows to speed up the sales
 Move deals seamlessly by undertaking bottlenecks
 Forecast accurate numbers
8.3 Steps of Sales Process
Organisations can follow different steps in sales process depending upon the nature of
business and different types of sales teams and representatives. Different sales teams follow
different sales processes. Mentioned below are the generic steps that can be followed by all
organisations:

Prospecting and Qualifying

Planning the Sales Call (The Pre-approach)

Approaching the Prospect

Making the Sales Presentation

Dealing with Prospect Objections

Closing the Sales

The Follow Up or Feedback

Fig 1: The 7 Steps of a Sales Process

Let us learn these steps in detail.

8.3.1 Prospecting and Qualifying: It is a process of identifying prospective

buyers of the product.A lead is not the same thing as prospect. A lead is one for which the
salesperson has contact information. Once the lead has been qualified it becomes a prospect.
An individual or an institution may be qualified to be a prospect if he has the need, authority,
ability and eligibility to buy. Improvement in prospecting is one way to stretch productive
selling time. Sales persons who are proficient in prospecting apply their selling efforts
productively and do not waste time on; non-prospects.

It is a wastage of time and effort and also unethical for salespersons to sell their product to
people who do not need it. Salespeople should sell their product in such a manner that
product do not come back but the customer do. Individual and organisations who do not have
the ability to buy should not be pursued because they will try to postpone their purchase. Too
much of sales persons time is wasted talking to people who do not have the formal authority
to purchase a product. Majority of the time organisations have a buying committee who are
responsible for making purchase. Purchase decisions may even be shared at consumer level
between the family members. Before approaching a prospect, a sales person should confirm
that the prospect has eligibility to purchase the required product.

Activity1
On the basis of examples below identify if the following leads will qualify to be the prospects
and why:

1.Selling a Kanjeevaram silk saree to a household worker for personal

use………………………………………………………………………………………………
………………….

2. Selling a typewriter to a computer operator ……………… ………………… …………

…………………………………………………………………………………………………

3. Convincing a clerk in a real estate company to convince the CGM of the corporate to
provide the tender to a contractor………………………………
………………………………………

4.Convincing a son of rich businessman to purchase a car…………………………………..

5. Selling Crizal lenses to a well sighted person …………………………………… ………

Steps in Prospecting
It is important to define your prospect so that the selling efforts are focused from the very
beginning. Once the prospect is defined it is important to search for the potential prospects:
where they are located so that the information about each tentative prospect can be collected.
Prospects with requirement ‘too small” to represent profitable business are removed from
consideration. In case more detailed information is needed personal visits may be handy to
separate prospects from non-prospects. Finally, it is important to relate the company’s
product to each prospects’ requirement in terms of its uses and application from customers
point of view.

Center of Cold
Influence Spotters Observations Advertising
canvassing
Method

Company
Endless chain Retailers Miscellaneous
records
.
Fig 2: Major Prospecting Methods

Major Prospecting Methods

i. Centre of Influence Method: Salespersons may join organisations, clubs like
gymkhana club, press associations, lion’s club where they interact with people of
influence who may become their clients or may assist in future networking. However,
while doing so the sales people need to maintain a low profile so that the interaction
seems accidental rather than intentional.
ii. Spotters: They are also known as ‘sales associates’ and they help the sales person in
further spotting the clients or providing a lead for a fee. Current satisfied customers,
taxi drivers, clerks or even competitor’s sales persons can be a good source in
providing referrals to the sales person.
iii. Observations: Organized and scientific observation may provide salesperson with
many fruitful leads. For example, reading newspapers, visiting shopping malls or
interacting with people as a part of daily activities may provide sales people with
information regarding new job offers, marriages, deaths, births that may indicate
change in people’s need and requirement for diverse products.
iv. Advertising: Efficient advertising by the companies in newspaper, radio, television
and magazines may also attract the prospect to contact the salesperson and initiate
sales.
 v. Cold canvassing: It is also known as ‘random prospecting’. In case of daily use
products that are needed by everyone, simply knocking at the door to uncover
potential prospects can be an efficient technique in generating sales.
vi. Endless chain: By using referrals and testimonials from the satisfied customers, the
sales representatives can develop endless chains of lead, but in such case contacting
satisfied customer is of utmost importance otherwise chain may be broken.
vii. Company records: Obtaining information from internal records of the company
regarding list of customers, their profile, likes and dislikes may reveal information
about potential prospects.
viii. Retailers: They are in direct contact with the customers and are familiar about their
tastes, needs and preferences.
ix. Miscellaneous: Trade fairs and exhibitions, trade publications, computerized
database, group or party plans organised by Tupperware, Oriflame and Amway invite
the interested people to follow up later.

ACTIVITY 2

Discuss with the salesperson of an insurance company, an educational institution, a real estate
broker and identify the prospecting methods and strategies used by them and discuss why
they used those strategies?

Salesperson of an insurance company…………………………………………… …………

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

Salesperson of an educational institution ……………………………………………………..

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

Salesperson of a real estate broker……………………………………………………………

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………..

8.3.2 Planning the Sales Call (The Pre-approach)

This is the second step in the selling process in which sales person gather information about
the needs, behaviour, nature, likes, dislikes, preferences, economic and social status so that
sales person equip himself to give effective sales presentation accordingly. This kind of
preparation to meet the prospect is called Pre-approach.

The significance of pre approach lies in concentrating only on prospects and not suspects,
hence saving time. It also provides all the required information about prospect so no loose
talks or mistakes may happen and sales person can give sales presentation more efficiently
and effectively. This builds up the confidence of the salesperson and demonstrate
professionalism on his part. It also helps in developing goodwill between the salesperson and
the prospect and enhance the probability of making a sale.

Planning the sales call requires obtaining strategic information about the prospects like
their name, position, personal background, educational background, technical knowledge,
normal buying behaviour, personality traits, authority in the decision making etc. Sales
person must understand total buying situation and try to gather information from trade
associations,chambers of commerce etc. Salesperson may also obtain preliminary information
by gathering first-hand information by making a preliminary call. Such a detailed information
is necessary to provide complete solution to the buyers.

A number of steps can be taken to ensure a positive response by the sales person. A senior
official in the company can be asked to set an appointment and salesperson can send a sales
promotion gift also known as ‘door openers’ like pen, key ring, calendar or diary along with a
personalized letter and brochure targeting buyer’s needs. Once the appointment is finalized
the salesperson should plan his sales call route to minimize travel time and expense.
Reconfirming the appointment on the scheduled day is always better to avoid unexpected
cancellation of appointment.

ACTIVITY 3
1.What kind of strategic information a salesperson selling avacuum cleaner and a salesperson
selling water purifier would require regarding their prospects before approaching them
directly. Prepare a checklist of eight items for the same.

Checklist of a salesperson selling vacuum cleaner:

1.…………………………………… …………2………………………………………….

3.…………………………………… …………4…………………………………………..

5.…………………………………… …………6…………………………………………..

7.…………………………………… …………8…………………………………………..

Checklist of a salesperson selling water purifier

1.…………………………………… …………2………………………………………….

3.…………………………………… …………4…………………………………………..

5.…………………………………… …………6…………………………………………..

7.…………………………………… …………8…………………………………………..

2. Compare the checklist of both the salespersons, one selling vacuum cleaner and another
selling water purifier. Is there any difference? Why?

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………………..

8.3.3 Approaching the Prospect

This is when prospect and salesperson come in direct contact with each other. Since this is
the first opportunity for face-to face interaction, the salesperson should put his best foot
forward and try to gain attention of the prospect by explaining the utility and true value of the
product. He should create an impression through his personality, product information,
professionalism and command of the situation.A salesperson should always be very well
mannered through-out his interaction with the prospect and show positive attitude to
criticisms. This provides salesperson an opportunity to judge if the prospect has positive
inclination towards his product.

A salesperson should always avoid paying surprise visits and should try to meet the prospects
during the slack hours rather than odd hours like too early in the morning or too late in the
evening or during financial closing. It is always advisable to meet during the slack hours.A
number of methods and strategies can be used by the salesperson to approach the prospect
depending upon the selling situation as explained in Fig 3.

Introductory Approach
The salesperson can make an initial good impression by confident introduction of himself
and his organisation.

Reference Approach
The salesperson can carry testimonial letters from satisfied customers.

Customer Benefit Approach

The salesperson can highlight the benefit that the prospect can obtain by their purchases.

Compliment Approach
Praising the prospect for his good choice or classy taste.

Interactive Approach
Involving the prospect in two way communication or interaction to understand the
requirement of the buyers.

Dramatic Approach
This attention getting approach is used by salesperson since time immemorial.

Sample Approach
Salesperson can offer samples or free gifts but should take care of legal and ethical
guidelines.

Fig 3 : Methods for Approaching the Prospects

ACTIVITY 4

Identify which approaching method has been used in the following sentences:

1.“Well, I must say Mr. Sharma the interior of your office is very attractive. You have very
good taste”……………………………………………………………………………..........

2. “Using our product will reduce your energy consumption by

15%”…………………………..

3.“The furniture of our company is light weight, folding, adjustable and also anti-bacterial”.
…………………………………………………………………………………………………

4. “What is the purpose for purchasing a printer, personal or

official?”........................................

5. “Let me show you how you can turn your white hair into black within 10
minutes”………….

6.“You can get Free headphones with purchase of a laptop”…………… ……………………

7.“The premium that we offer if you purchasecar could be a year of free gas-fill ups” ……..

8.“Using this lightweight projector will creat a balance between size, price, brightness and
comfort. A perfect solution for last moment business trips or for work at home presentations”
……………..………………………………………………………………………………….

9 “Your friend xyzis satisfied with our washing machine and suggested that I contact you”
……………………………………………………………………………………………….

10. Welcome to our Apex Audio. Have you been into our store before? …………………….

8.3.4 Making the Sales Presentation

Making the sales presentation or demonstration is an exercise to showcase the characteristics
of the product and highlight its utilities, performance, services and quality. If the salesperson
is able to make the product appeal to the customers half the battle is won. Prospects should be
allowed to handle the product. If the prospect can test the product successfully in front of
prospect, it will enhance the confidence of the prospect and buying decision is reinforced.
Salesperson should never compare their product with the competitor’s product. Help can be
taken from overhead projectors, videoplayers, tape recorders to demonstrate the product to
the prospects so that it appeals to all five senses viz: sight, hearing, touch, smell, and taste.
Sales persons should make sincere efforts to influence the customers through all senses so
that the customer may generate their interest towards the product.

Check your progress A

1.Which of the following statements are True and which ones are False:

i. Sales process is a step of sequential steps that cannot be repeated. (T/F)

ii. Qualifying a prospect on the basis of eligibility is a wastage of time for the
salesperson.
iii. Efficient sales person who aims to focus on productive selling should take time to
qualify their prospects.
iv. Forceful selling is the essence of success for a salesperson rather than to get entangled
into the nitty-gritties of courtesies and mannerisms.
v. A salesperson should always pay surprise visits to his prospects because these
surprises rejuvenate his prospects and alleviate their boredom.

2. Fill in the blanks

i. This stage involves the first opportunity for face-to face interaction, between the
prospect and the salesperson and the salesperson should put his best foot forward,
it is known as………………………
ii. In this approach a salesperson may carry references from previous customers, it is
known as ……………………….
iii. An individual or an institution may be qualified to be a prospect if he has the
need, authority………………………. to buy.
iv. It is very common for the salespeople to overreact and indulge in a kind of
performance to get prospects attention.This is known as ……………
v. Current satisfied customers, taxi drivers, clerks can act as
……………………..and help in providing a lead for a fee.

8.3.5 Dealing with Prospect Objections

Seldom will the prospects can be taken straight from sales presentation to closing the sales.
Once the product characteristics have been demonstrated any rational prospect will have
certain questions, doubts, objections in his mind about the performance of the product. So,
objections should be taken as a positive sign of interest and involvement. It may be an
indirect way of asking for more information, more time, more convincing or more assurance
before they commit themselves. This is just to safeguard themselves to avoid taking a wrong
decision. It is the responsibility of sales persons to remove such objections or barriers to the
sale. Resistance can be expressed verbally (e.g. ‘I am not clear how will this product help
me’) or in a non-verbal manner (e.g. Prospects facial expressions show that he is confused or
is in dilemma). Sales objections is an indication that the prospect is paying attention to the
sales presentation and may be interested if the objections can be addressed effectively.

Sometimes prospects objections may be to get out of the selling situations or brush off the
salesperson. Like they may say, “we are just exploring our options right now” or “we are not
ready to take a decision today” or “we do not have money right now”. More often such
statements indicate purchase anxiety which can be handled by reducing their risks by
providing more information to them or link the product with their needs. Salesperson can use
a number of methods to handle prospects objections:

“Yes, but” Approach : Also known as indirect denial method,

here first salesperson agrees with the objection but then gently
handle the objection.

Counterbalance Method: In case the prospect is making a valid

objection, the sales person should offset it by offering an
advantage.

Denial Method: Politely and firmly deny an invalid objection by

the prospect.

Question Method: Deflate the objection by cross questioning

Failure‐to‐hear Method: Sometimes deliberately ignoring the

prospects objections

Boomarang Method: Also called translation method because

the objection raised by the prospect often comes back to him as
a reason for purchase.

Fig 5: Methods to handle Objections

Rules for overcoming objections

 Never argue with your prospects
 Always refer to an objection as an ‘interesting point’
  Don’t jump into providing an answer or be in a hurry to answer. Give a pause then
answer thoughtfully
 Don’t overanswer. Stick to what has been asked
 If you don’t know the answer then the best is to gather the information and then
provide an answer
 Don’t be drawn into useless discussions
 Be confident and never doubt your answer

ACTIVITY 5

Identify which method has been used to handle objections in the following sentences:

1.Buyer: “We cannot afford to purchase this product.”

Salesperson: “Yes, but can you afford not to purchase it?” ……………… …………………..

2.Buyer: I think this ring is too expensive

Sales person: I do believe it is. I assume you don’t want to gift your wife a much cheaper
present………………………………………………………………………………………….

3. Buyer: I don’t see the need for screen guard for the laptop
Salesperson: Do you have kids? If yes then you will be needing it.………………………..

4.Buyer: The fabric of this shirt does not seem to be of the best quality
Salesperson: Yes, you are right. If it had been, the price would have been considerably
higher……………………………………………………………. …………………………….

5. Buyer: the colour of this fabric is likely to fade

Salesperson: No, the material will not fade and it has been lab tested that the colour is a fast
one…………………………………………………………………… ………………………..

8.3.6 Closing the Sales

Once the salesperson has demonstrated the product and handled sales objections then finally
the salesperson should close the sales at the right time. Closing time provides an opportunity
to register tangible proof of selling skills. Inadequate preparation, poor impression, failure in
meeting objections or wrong approach on the part of the salesman may come in his way. For
a salesperson such rejections are painful especially if they are on continuous basis.
However,if the salesperson has been successful in maintaining good relationship with the
prospect closing the sale is a logical outcome.
There can be many ways of effectively closing the sale:

 Taking for granted

 Offer some incentive to purchase e.g discount or a small gift
 Telling success stories of people benefiting from it
 Creating fear of loss
 Stressing small relevant details
 Requesting straight for an order

Every salesperson reach closing with certain apprehension as he cannot be 100% sure
because sometimes even after smooth flow throughout the sales process it may not end in
sale. If it is a high-pressure sale the salesperson has to convince the prospect that the product
is good for him and need effective persuasion to close the sale. Even after refusal of customer
salesman should not give up and aim for at least five ‘trial close’.A trial close is to see if the
prospect is ready to buy and salesperson can close the selling procedure.

Prospects may provide a number of closing cues to the salesperson. For example, ‘prospect
may begin handling the product’; prospect starts testing and trying the product; ‘prospect has
nothing more to ask’; ‘prospect start asking about the final price, installation, delivery etc.;
‘prospect unconsciously reach for his wallet.

The salesperson may try for ‘indirecttrial closes’ by asking questions like:

 ‘Which colour you prefer to buy’

 ‘What is your favourite payment option, cash or card?’
 ‘The washing machine is absolutely maintenance free.’
 ‘When and how will you like it to be delivered”

If even after theses ‘indirect trial closes’salesperson fails to close the sale, then he should try
for ‘direct closes’ Sometimes prospect expect the salesperson to ‘push them into buying’. It
makes them feel important and also put them at much better bargaining position. But certain
prospects may respond negatively to such frank requests.

After all these efforts, if the prospect does not show any inclination to purchase the product
the salesperson should continue to sell the product by providing more information about the
product, stressing upon the positive points, summarising the benefits of the product, offering
better price or extending the corporate warranty.
ACTIVITY 6
1. Suggest a suitable strategy for closing the sale of:
a) Washing machine
b) Car
c) Insurance
d) An apartment
e) A holiday package

8.3.7 The Follow Up or Feedback

Once the product is sold it is very important to take the feedback or follow up with customers
to ensure if they are satisfied with the product. This step is very important to reduce post
purchase dissonance of the buyers. The buyers may suffer from anxiety regarding their
purchase decision. This anxiety can be reduced to a great extent by constant and continuous
follow up and re-assuring the buyers about their right decision. It is very important to listen to
buyers’ feedback even if it is criticism because it provides an opportunity to improve the
product and encourage repeat purchase behaviour.

Moreover, if the company do not listen to their criticism, they will bad mouth it to others and
this will harm the credibility of the company.It is said that if the customers are dissatisfied
only 10% customers come back to you and the remaining will bad mouth to others. Feedback
may also help the salesperson to introduce complementary products of the company. A
satisfied customer will always be brand loyal and can be used as a reference for establishing
future contacts and networking. This is what relationship marketing is all about.

The following steps can be taken by the salesperson after the sales:

 Concentrate on account penetration. Look for people with needs and problems that
can be satisfied by you.
 Maintain contact and relationship with customers.
 Handle customers complains immediately because this demonstrates your
commitment towards them.
 Always keep your promise as nothing destroys the relationship then not keeping your
promises.
 Become a valued partner in business. Shift your role from a salesperson to trusted
advisor for customer.
  Appreciate your customer by offering him a birthday card, or a thank you note or, a
thank you call.

Check your progress B

1.Which of the following statements are True and which ones are False:

i. Sales objections is an indication that the prospect is paying attention to the sales
presentation and may be interested if the objections can be addressed effectively.
ii. Salespersons should not listen to the criticism by buyers because the more they listen,
the more buyers will complain.
iii. Creating a fear of loss in people can be an effective method of closing a sale.
iv. Salesperson feel relax once they have sold the product and should forget about the
current customers and start afresh.
v. Low pressure sales throughout is an indication that prospect will surely purchase the
product.

2. Fill in the blanks:

i. Prospects objections like they may say, “we are just exploring our options right
now” or “we are not ready to take a decision today”
show…………………………on their part.
ii. Nullifying prospects objections by cross questioning is known as
………………………..approach.
iii. Which color customer would like to buy, which payment option he will use are
the few examples of ……………………
iv. Offsetting prospects valid objection by providing an advantage is known as
……………….
v. Feedback of follow up is very important to reduce
…………………………………….. of the buyers.

8.4 Let Us Sum Up

This chapter discusses the process of selling as many sales people use in it the field. A sales
process is defined as a set of sequential steps that a sales person performs to convert a
prospect into a customer. It also enables sales people to know which deals to focus on, where
they need to put extra efforts, and how much they are likely to make in the coming
months.Different organization operating in different industries has to follow the basic selling
process. For example, an automobile company will have different selling process as
compared to a company selling insurance.

The process of selling involves a series of seven steps that commences with prospecting and
qualifying, Pre-approach, Approaching the prospect, sales presentation, handling with
customer objection, closing the sales and finally, the follow-up action. An effective selling
process bolster the managers and organization to accomplish their aims and goals set for the
individual, territory and organization.

Prospecting and qualifying isa process of identifying prospective buyers of the product. An
individual or an institution may be qualified to be a prospect if he has the need, authority,
ability and eligibility to buy. The major prospecting methods are center of influence method,
spotters, advertising, endless chain, observation, cold canvassing, company records, retailers
etc.

The second step in the selling process Pre-approach in which sales person gather information
about the needs, behaviour, nature, likes, dislikes, preferences, economic and social status so
that accordingly sales person equip himself to give effective sales presentation. The
significance of pre approach lies in concentrating only on prospects and not suspects, hence
saving time.

Third step is Approaching when prospect and salesperson come in direct contact with each
other. The salesperson should create a good impression on the prospect through his
personality, product information, professionalism and command of the situation. A number of
methods and strategies can be used by the salesperson to approach the prospect depending
upon the selling situation this includes introductory approach, customer benefit approach,
compliment approach, reference approach, interactive approach, dramatic approach and
sample approach.

Forth step is Making the sales presentation or demonstration which is an exercise to showcase
the characteristics of the product and highlight its utilities, performance, services and
quality.If the prospect can test the product successfully in front of prospect, it will enhance
the confidence of the prospect and buying decision is reinforced.

Fifth step in selling process is dealing with prospects objections. Once the product
characteristics have been demonstrated any rational prospect will have certain questions,
doubts, objections in his mind about the performance of the product. So, objections should be
taken as a positive sign of interest and involvement. It may be an indirect way of asking for
more information, more time, more convincing or more assurance before they commit
themselves.

Once the salesperson has demonstrated the product and handled sales objections then finally
the salesperson should close the sales at the right time. This is the sixth step in selling
process.Inadequate preparation, poor impression, failure in meeting objections or wrong
approach on the part of the salesman may come in his way of closing the sale.

Once the product is sold it is very important to take the feedback or follow up with customers
to ensure if they are satisfied with the product. This last step of selling process is very
important to reduce post purchase dissonance of the buyers and enhance their loyalty towards
the company.

8.5 Keywords
Sales Process: It is a set of recurring steps that a sales person follows while selling a product.
It is a complete cycle which commences from identifying the customer to closing the deal
with them.

Prospecting: It is the first step in process of sales, which involves identifying and qualifying
potential customers. The aim of prospecting is to convert the potential customer into current
customer.

Prospects:A prospect is a customer who has potential and has been qualified as fitting certain
criteria outlined by a company based on its business offerings.

Approaches to selling: These are the approaches that a salesperson follow to reach the
prospect and make good impression. This prepare the prospect to be receptive to sales
presentation and demonstration

Approaches to presentation:These refer to the strategies adopted be a salesperson to present

his product to the prospects.
Objection handling: When a prospect shows a concern or doubts about the product or service
a salesperson is selling and the salesperson answered in a way that mitigate those concerns
and allows the process of deal to move ahead.

Sales closing methods: These are the different techniques adopted by a salesperson to close
the sales.

8.6 Answer to check your progress

A. 1. i. False ii. False iii. True iv. False v. False

2. i. approach ii. reference approach iii. ability and eligibility iv.dramatic

approach v. Spotters
B. 1. i. True ii. False iii. False iv. False v. False
2.i. Purchase anxiety ii. question iii. indirect close iv. Counter balance
method v. post purchase dissonance

8.7 Terminal Questions

1. Define Sales Process. What is the significance of sales process to sales management?
2. What are the steps involved in the sales process? Discuss.
3.What do understand by Prospecting? Discuss the various methods of prospecting.
4. What are prospect objections? Explain how a salesperson can handle the objections of a
prospect.
5. Discuss the Strategies used to approach the prospect.
6. Write Notes on
a) Closing the Sales
b) The follow up or feedback

Some Useful Bookss

Anderson, Rolph E., Joseph F. Hair, Jr. and Alan J. Bush, 1992. Professional Sales
Management, McGraw-Hill, Inc.
Douglas J. Dalrymple, William L. Cron and Thomas DeCarlo, 2021.Sales management
Concepts and cases, John Wiley & Sons, Inc.
Panda, Tapan K and Sunil Sahdev, 2005. Sales and Distribution Management, Oxford
University Press; New Delhi.
Still Rr, Cundiff EW &Govani, NAP, Sales Management: Decisions, Strategies and Cases,
Fifth Edition, Prentice Hall of India. New Delhi.
 Unit 9 Sales Presentation and Demonstration
Structure
9.0 Objectives

9.1 Introduction

9.2 Meaning of Sales Presentation and Demonstrations

9.3 Essentials of Sales Presentation and Demonstrations
9.4 Tools and Techniques of Sales Presentation and Demonstrations

9.5 Steps Involved in Sales Presentation and Demonstrations

9.6Types of Sales Presentations and Demonstration

9.7 Types of Prospect Categories and Strategy

9.8 Sales Presentation Strategies

9.9 Case Study

9.10 Let Us Sum Up

9.11 Key Words

9.12 Answer to Check Your Progress

9.13 Terminal Questions

9.0. OBJECTIVES
After studying this unit, you should be able to:

 explain the meaning of sales presentation and demonstration;

 describe the essentials of sales presentation and demonstration;
 outline Tools and techniques of Sales Presentation and Demonstrations;
 explain the steps involved in Sales presentation and demonstration;
 distinguish between different types of Sales presentations and demonstration;
 discuss different types of prospect categories and strategies; and
 explain different types of Sales Presentation Strategies.
9.1 INTRODUCTION
Sales Presentation and Demonstration is a very important aspect of selling process. Once the
salesperson has identified his prospects, planned the sales call and made all necessary
preparation for approaching the prospect, next important task is to demonstrate and present
the company’s product. It is an exercise to highlight the characteristics and attributes of the
product. At this stage, the salesperson provides detailed information about the product,
narrates the benefits and features of the product and explain real value of the product. During
the sales presentation, the salesperson must hold attention of the prospect to stimulate his
interest and arouse desire for the product. In this unit, we have discussed the meaning of
sales presentation and demonstration, the essentials of sales presentations, tools and
techniques of sales presentations, various steps involved in sales presentation and
demonstrations, types of sales presentations and demonstrations, types of prospects categories
and strategies and various sales presentation strategies.

9.2 Meaning of Sales Presentation and Demonstration

A sales presentation can be defined as a talk, giving information about a product or service
that sales person is trying to sell, or intended to persuade people to buy it. A salesperson’s
success in his selling career is guided by his expertise over his art of presentations. It is
persuasive verbal and visual explanation of the selling proposition. Effective presentation can
definitely provide him competitive advantage over his competitors. Two-way communication
between the salesperson and the prospect and creating a fit between the attributes and
characteristics of the product and prospect’s needs helps in clearing the doubts and objections
of the prospect and help in creating low pressure sales. At no stage the presentation should
ignore prospect’s interest, nature of the product and availability of time at salesperson’s
disposal to demonstrate the product. If the salesperson can use sales presentation stage
efficiently and effectively, the next stage of handling prospects objections can be effectively
handled. An attractive packaging of the product, conspicuous display and placement of the
product in a retail outlet and, aesthetic interiors of the retail outlet are also a part of good
presentation. A good presentation is as important as good product. Effective presentation
facilitates in creating first impression of the customer. Therefore, the sales person should
prepare well and rehearse his/her sales presentation thoroughly.
In diverse global market, salespersons customize their presentation according to the customer
needs and culture of that country. For example, in Southeast Asia the Muslims and Indian
community used to own fine carpets. Electrolux salespersons focussed on cleaning efficiency
of Electrolux vacuum cleaners. To cater to Chinese preference for polished floors, Electrolux
emphasized on floor polishers in China. Countries have diverse point of view regarding door
-to-door selling. In Denmark door-to-door selling is considered as high pressure selling and is
legally banned whereas in United States of America door-to-door selling is more mature. In
1990s American International Group (AIG) was successfully selling insurance policies door-
to-door in China. Eventually Chinese insurance agencies like People’s Insurance and Ping An
insurance had to safeguard themselves against the rising competition from AIG started selling
door-to-door. Unlike American, Japanese car buyers never visited showrooms and were used
to being catered by car salespersons. The auto salespersons and Japanese customers had a
long-term relationship. Japanese car buyers used to have several face-to-face meetings
wherein trust was developed and this relationship used to continue for effective follow up.
Companies like Ford who had set up big showrooms in Japan found it difficult to establish
themselves. In 1990s Moscow Bread Company faced a lot of problem with selling their bread
which was sold in open without being wrapped as a result more than one third of bread was
getting wasted. They hired Anderson Consulting who offered a very simple but effective
solution- selling the bread in plastic bags that kept the bread fresh for days and also provided
place utility.

ACTIVITY 1

You must have watched salesperson involved in sales presentation and demonstration in B2B
and B2C selling. What difference in their approach was witnessed by you?

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………..

Essentials of a good Sales Presentation and Demonstrations

A good presentation should fulfill the following requirements:
  The product should be located in a conspicuous place so that it is visible to the
prospect and the salesperson can also present it to the prospect without any problem.
Such a sorted approach creates good impression on the prospect.
 Packaging is known as ‘silent salesman’. The product should be packed aesthetically
so that it attracts the prospect and take him through the AIDA model.
 Salesperson should be well informed and he should have through knowledge not only
of his company’s product but also of the competitor’s product so that he is able to
satisfy the queries of the prospect in a satisfactory manner.
 A wise salesperson should never compare his company’s product with the
competitor’s product nor criticize the competitor’s product. A thorough knowledge of
the competitor’s product shall be used to highlight the benefits of his company’s
product and disadvantages of competitor’s product.
 The task of the salesperson is to facilitate decision making by the prospect. Prospect
should be shown the kind of product he is looking for. Salesperson should avoid
showing too many varieties to him because this will confuse him and should also
avoid too less variety because then the prospect will not be able to decide.

ACTIVITY 2

Imagine yourself as a salesperson of Sony LED TV. How will you display a good sales
presentation and demonstration?

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………...

9.3 Tools and Techniques of Sales presentations and

Demonstrations
Historically sales presentations were delivered by salesperson on one-to -one basis using
traditional tools like brochures, charts, slides movie clips etc. Technology further expanded
the traditional way of presenting and demonstrating the product to include video cameras,
overhead projectors, telephone presentations, video conference presentations, presentations
delivered via emails, internet.

Slide shows and power points do not have the ability to impress the prospects now.
Increasing competition require that the message should stand out. Technology can make
presentations more memorable and effective. Digital interactivity has become the buzzword
today which allows the prospects and the clients to interact with the presentation making it
more engaging. Companies are creating multi touch experience with their presentations.
Prospects can interact with them using touch points, using their mobile or laptops sitting at
home. Digital interactive software is making interactive and colorful presentations. Video
conferencing that shows the body language, facial expression is an outstanding contribution
of technology. It helped millions in connecting with each other during the pandemic.

The success of e-commerce lies in the power of technology that can effectively present the
product using 3-dimensional presentations. Prospects are also provided options to view the
product from different angles, in different colors.

However, technology fails to develop relationships and personal interaction to sales which
are the foundation to sales. Salesperson should use technology selectively and chose the one
that yield highest productivity and performance. A judicious blend of technology with
personal touch will win the battle for salespersons.

ACTIVITY 3

1. What were the advantages of technology experienced by you in sales presentations

during the pandemic recently?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

9.4 Steps Involved in Sales Presentation and Demonstration

Regardless of tools and techniques followed for sales presentation and demonstration,
following logical sequential steps are a pre requisite for making sales. Let us learn them in
detail.
 1. Attracting Attention: It involves reading prospects mind and thoughts and providing
them with appropriate product. Prospects attention can be gathered by well-designed
and decorated retail outlet, proper illumination, attractive visuals, aroma, decoration
and catchy product display so that it appeals to prospect’s all five senses viz: sight,
smell, sound, taste and touch.
2. Creating Interest: The sales persons should possess the detailed knowledge of the
product and company. He should highlight the unique features of the product along
with various schemes of the company so that the interest of the customers may be
aroused. The salesperson create interest in the prospect by providing them more
detailed knowledge about the product in terms of features, benefits of the product.
3. Arousing Desire: Taking the prospect to the next level in this stage the salesperson
converts prospect’s interest into desire by providing him emotional satisfaction and
showing him that the product will fulfil his needs. The salesperson at this stage is able
to influence the prospect’s mind and build trust in the product and the brand. This
trust may also arise out of prospect’s dissatisfaction with products of other brands.
4. Building Conviction: At this stage salesperson has provided satisfactory reply to
prospect’s objections and complaints. The salesperson has provided references of the
satisfied customers, explained the entire offer in details along with the discounted
price, all warranties, compensations and warnings. The prospect is convinced that the
product will satisfy his needs better than the earlier brands.

ACTIVITY4
High-tech Ltd. is an air purifier brand, which has just entered the market. The company wants
to make its place in the competitive environment. You are required to design a sales
presentation to increase its sales.

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………..
9.5 Types of Sales Presentations and Demonstration
Sales presentations and demonstrations can be oral and written. Oral presentations are used in
case of less expensive products and most of the times they supplement written presentation.
Oral presentations are used more in case of business to consumer (B2C)selling and explain
preliminary information related to features, benefits and uniqueness of the product.

Written presentations are an integral part of Business to business (B2B) selling. Sales
presentations are of three types:

1. Canned Presentations: The presentations prepared by companies are known as

canned presentations. They are designed by experienced people in the organization in
the form of printed and audio-visual material and are used by new salesperson and
provide them confidence initially. These presentations are not effective in case of
multi-product selling and same customer selling situations. Such presentations are of
not much interest to the prospects and they do not encourage two-way
communication. However, this type of presentation becomes useful when the same
presentation must be repeated multiple number of times.

Example: Generally, sales presentation to retailers who may not be always educated to catch
up with the little content, so presentation has to be self-explanatory.

2. Organized Presentations: In case of organized presentation salespersons have more

flexibility to adapt the presentation in accordance with company’s guidelines and
encourages two-way participation. They can be developed based on experience and
understanding of the salesperson.
3. Tailored Presentations: Such presentations are tailored to the specific needs of the
clients which can be wholesalers or retailers or other business clients and so are
mostly used in B2B selling. However, such presentations should be used by
experienced salesperson who understand how to portray the company’s image and
policy.

In modern parlance buying has become more complex because it needs approval from more
than one person. Sales teams are involved who together design written proposal who should
have following characteristics:
  They shall enhance salesperson and company’s image and attract attention of the
stakeholders.
 Build trust in the company’s image to deliver and they get required response from
their client
 The sales proposal should convey an understanding of their business client’s needs.
 Deliver solutions to their problems.

Check your Progress A

1. State whether the following statements are True or False.
i. A salesperson can follow an interactive communication with Canned Presentation T/F
ii. A salesperson should help customers to make the best choice by showing diverse
varieties of a product T/F
iii. Reading minds of the customer can baffle the salesperson to proceed with his
objective T/F
iv. Interest can be generated in the prospects by giving detailed information of the
product. T/F
v. Sales person should have thorough knowledge only about his company’s product T/F

2. Fill in the blanks

i. Prospects who say “This presentation is time-taking” or “Please cut to the chase” are
……………………. Prospects
ii. Presentations which are made according to the specific needs of the clients are
………………. Presentations
iii. …………………… Strategy aims to provide solution to the prospect.
iv. Products when packed aesthetically attracts the customers and that is why packaging
is also known as ……………………………
v. …………………… presentations are not successful in multi-product selling and
same customer selling situations

9.6 Types of Prospects Categories and Strategy

Personal selling is a very important wing of promotion mix since it involves two-way
communication. A salesperson should have the ability to understand the psyche of his
prospect and sell the product accordingly. He cannot use the same selling strategy for all
prospects. Depending upon different categories of customers, different strategies should be
used. Some of the strategies are discussed below:

1. Skeptical Prospect: This category of prospects cannot be convinced easily. They

always have reservations and doubts. Such prospects should not be given a detailed
presentation because they are fault-finding people. So, salesperson should be
conservative in their presentation with them.
2. Silent Prospect: Prospect who are silent type should be asked more questions so that
salesperson can understand their needs, interests, problems and provide the product
accordingly.
3. Opinionated Prospect: Such prospects should be handled with care. Salesperson
should listen to them carefully, agree with their point of views and pamper their ego.
4. Procrastinator Prospect: Certain prospects are in a habit of postponing the purchase
decision. They should be informed of the benefits they will receive if they purchase
the product now. They need to be reassured of their authority and purchase decision.
5. Impulsive Prospect: Impulsive prospects do not have patience to listen to the entire
presentation in details. Salesperson should speed up the presentation and avoid
presenting unnecessary details. They should just focus on the highlights and try to
close as soon as possible.
6. Methodical Prospect: These prospects are interested in all the details, explanations
and key points. Salesperson should go slow with them, provide them with all the
information and close the sales only when prospect is ready.
7. Timid and Cautious Prospect: Too much of showmanship and confidence of
salespersons can put such prospects off. Salesperson first should try to make them
comfortable and then gently move forward with a simple and straight forward
presentation.
8. Talkative Prospect: Such prospects have their own long stories to tell. Salespersons
should not allow them to take the presentation off the track. He should listen to them
but at the same time politely come back to the point. They should not let the prospects
take control of the presentation.
9. Chip on the shoulder Prospect: These prospects have a lot of attitudes. They should
be respected and handled in a sincere and friendly manner. Agree with them and
quietly sell the product.
Check Your Progress B
1. Identify the type of prospect in the following statement.
i. I will purchase this washing machine later after discussing it with my family
…………..
ii. Please be quick since I have back-to-back meetings …………….
……………………….
iii. What if this part of the printer is not under the warranty? ………………
………………….
iv. Please provide delivery details and who else has bought your product ……….
……………
v. Why should I listen to you? …………………..
……………………………………………
vi. Where do you hail from? …………………….
…………………………………………….
vii. I am thinking to buy at some point later since I have financial
issues……………… …….

9.7 Sales Presentation Strategies

A number of strategies can be used by salespersons to make their presentation and
demonstration effective and efficient.

1. Stimulus Response Strategy: Salespersons using this strategy present the purchase
stimuli in such a manner that it receives positive response from the prospects.
2. Consultative Selling Strategy: Also known as ‘problem solution strategy’, using this
strategy the salesperson aims to solve the problem of the prospect. The entire
presentation is guided to provide solution to the client or prospect. The solution is
arrived at after several rounds of interaction wherein at each stage advantages and
disadvantages are discussed. This is more common in case of technical products like
purchasing a software to enhance efficiency, event planners who plan events as per
specifications of their clients.
3. Need Identification and Satisfaction Strategy: In this selling strategy, the
salesperson first identifies the need of the prospect. Prospects disclose their
 psychographic characteristics in terms of their attitudes, interests, opinions,
personality and lifestyles. This requires skillful questioning by an experienced
salesperson. The salesperson, like a psychologist should try to understand the mental
framework of the prospect. Try to understand his background and then indulge in
demonstration and presentation. Misreading or too conservative reading of prospect
may lead to losing the sale.
4. AIDA Strategy: When using AIDA strategy, salesperson move prospects through the
sequential steps of AIDA: attention, interest, desire, and action. It demonstrates the
stages a customer goes through during the process of purchasing a product.
5. Professional Selling Strategy: As buying has become more complex phenomenon
with purchase committees involving more than one decision makers selling has
become more professional involving team work. Each member of the Sales team is
specialist in his own field and they make presentation to the purchase committee or
buying team and must appeal to them all. Such kind of selling is very common in
government organizations.
6. Depth Selling strategy: Depth selling involves applying all the above-mentioned
selling strategies in unison. It starts with understanding the need of the prospect to
uncover the buying motives, stimulus-response strategy to get a positive response
from the prospect and then ends with problem-solving strategy to win prospects trust.
Using these strategies salesperson takes the prospect through various stages of AIDA.
So, it is a judicious blend of all selling strategies which can be used by a brilliant
salesperson only.

Check Your Progress C

1. Identify what kind of sales presentation and demonstration strategy is used in the
following examples:
i. “I am looking for a wedding dress for my sister’s wedding”
……………………………………
ii. “I am sorry, I will not be able to provide more than 10% discount. If you want more
Let me, call my Team Leader. He can help you with it.”
………………………………………………..
iii. “See how quickly and smoothly your photocopier runs,
isn’t?”……………………………….
 iv. “ You can go for a top up in your existing general medical insurance if you are
diabetics”………………………………………………………………………………
……….

9.8 CASE STUDY ON EUREKA FORBES

INTRODUCTION

Eureka Forbes Ltd. started under Shapoorji Pallonji Group in 1982 as a multi- channel,
multi- product organization which included water purifiers, air purifiers, vacuum cleaners and
security solutions and India’s leading health and hygiene brand. The prize winning
Aquaguard is the star water purifier of Eureka Forbes followed the tried and tested direct
selling route and is regarded as the first direct selling companies in India. Sales personnel was
considered as the core strength of the company and they focused on recruiting young men in
their 30s who were enthusiastic, extroverted, outgoing with effective communication skills
called “Eurochamps”.

With a belief that ‘A relationship does not die with a sale. It actually begins.’ Eureka Forbes
focused on Customer Relationship Management (CRM) and maintained fabulous customer
feedback and today (2021) the company has a gross turnover of 29.6+ millions with 35
countries covered and 20+ million happy customers.

Sales Process

Usually, the following sales process is followed by sales personnel in Eureka Forbes.

Prospecting & Qualifying

The Euro champ requires to make a list of potential customers and qualify the leads.

Formulating prospect definition: They have to identify household, organizations and persons
who have the requirement for a water purifier.

Searching out potential sources: A number of traditional and modern methods of prospecting
are there and all Eurochamps continue looking for innovative sources.

Qualifying prospects: A customer can be qualified by giving answers to three simple

questions asked by a sales person. A prospective customer must have the requirement for the
water purifier, the financial budget to purchase and authority to make a decision to purchase.
After, assembling the information the needs of each prospect determined.

Need Identification: From the information that the Eurochamp has about the company’s
product, now chooses and recommends those that seem to be the most appropriate for a
particular prospect.

Pre-Approach & Approach

Pre-approach: The initial contact that Euruchamp make with the prospect is known as
approach, and preparing for approach is known as approach. In this stage, the Eurochamp of
Eureka Forbes water purifiers gather knowledge about the water purifier he will sell, about
the company he will represent i.e. the Eureka Forbes company that he will represent, the
competitors, market in which he will sell and about the prices. Eurochamp is also working on
the pre-sales objectives, pre-sale presentation plan, details about the requirements of the
buyers, their buying behavior, personal characteristics. The more well prepared he is the more
chances of success.

Approach: At approach stage when he is meeting the customer for the first time, it is
important for him to decide on the approach style so that favourable response can be
achieved.

Objectives of Approach:

Creating a favourable impression Breaking the ice (Making the prospect

comfortable)

Arresting the attention of the prospect Probing to find out the needs of the
prospect

Creating an interest for the product Planning and designing the

presentation

Presentation & Demonstration

This stage is also known as ‘story telling stage’where the Eurochamp displays the product to
the prospect. Demonstration is ‘showing and telling’ about the product. The ease of use of the
product is demonstrated to the prospect and how easy it is to have pure drinking water
through the purifier is further explained. The presentation and demonstration can be made
using brochures, pamphlets, fliers, charts etc. They, are used to ‘paint a picture’ in the mind
of the prospect. Further testimonials and references are used emphasize his point. Eurochamp
always link the features of water purifier with the needs of the customer thus, reducing the
gap between the customers and the product and reducing the possibility of objection in the
subsequent gaps.

While giving a sales presentation, the Eurochamp always try to associate features of the water
purifier with the needs of the customer. This helps in lessening the gap and level of customer
objection in the subsequent stages.

If the customer agrees with the opening idea, the salesperson goes for a trial closure.
Otherwise Eurochamp further elaborates the additional benefits. The apprehensions of the
customer regarding product performance are further clarified. Mor informationis seeked from
indifferent customers. This probing helps in confirming the fit between the stated needs and
promised benefits

Handling objections

The objections of the customers during the presentation are handled positively, deeper
probing is done to further clarify the objections, deny the relevance of objections and
transform the objections into the reasons for buying the product.Objections can be
psychological objections like reluctance, giving up), objections related to delivery, price,
company or product characteristics.

Closing

Once all the objections are countered successfully the sale is to be closed. Customers should
be motivated to sign the order form. If the customers objections have been handled
efficiently, presentation and demonstration is effective then final close should happen without
any resistance. First close is hardly so Eurochamps should try for several close and keep
trying various techniques of closing the sales.

Follow up and Maintenance

Once the sales has closed, the Eurochampsexpress gratitude to the customer. The continuous
follow up is necessary to reassure him on his decision of purchase. Once again,all the
necessary details (like the delivery time, terms of purchase etc.) are clarified. A proper follow
up should be done to ensure correct installation, instruction and after sales service. Proper
follow up reduces the cognitive dissonance of the customers. These steps may create satisfied
customers with brand loyalty.

9.9 Let Us Sum Up

This unit discusses sales presentation and demonstration and the steps involved. Sales
presentation and demonstration can be defined as a talk, giving information about a product
or service that salesperson is trying to sell, or intended to persuade people to buy. It involves
a series of five steps which includes: Attracting attention, creating interest, arousing desire,
building conviction of customers. The essentials of presentation and demonstrations are also
discussed here. The units has also explained the tools and techniques used in sales
presentations and demonstration emphasizing upon the role of technology in improving the
product presentations. Different types of sales presentations have also been discussed in this
chapter. Canned presentation, organized presentation and tailored presentation.

A prospect is a person who could be a customer of your business based on certain qualifying
criteria. This chapter discusses the various types of prospects namely: skeptical prospect,
procrastinator prospect, silent prospect, opinionated prospect, talkative prospect, timid and
cautious prospect, methodical prospect, impulsive prospect and chip on the shoulder prospect.

This unit also discusses various sales presentation strategies which can be used by a
salesperson to enhance the sales. Stimulus response strategy, Consultative selling strategy,
need identification and Satisfaction strategy, AIDA strategy, professional selling strategy,
Depth selling strategy.

9.10 Key Words

Sales Person: An individual whose primary job is to sell a product/service.

Sales Presentation: A sales presentation is a talk that attempts to persuade an individual with
a planned strategy of sales presentation of a product or service.

Canned presentation: Standard presentations which are prepared by companies.

Organized Presentation: Presentations which are based on the experiences and understanding
of sales person.

Tailored Presentation: Presentations which are made according to specific needs of the
clients.

9.11 Answer To Check Your Progress

A. 1. i. False ii. False iii. False iv. True v. True

2. i. Impulsive ii. Tailored iii. Consultative selling iv. Silent Salesman v. Canned
Presentation
B 1. i. Procrastinator prospect ii. Impulsive Prospect iii. Skeptical Prospect

iv. Methodological Prospect v. Chip on the shoulder prospect vi. Talkative Prospect

vii. Procrastinator Prospect

C. i. Need identification and satisfaction strategy ii. Professional selling strategy

iii. Stimulus- response strategy iv. Problem Solution Strategy

9.12 TERMINAL QUESTIONS

a) Define sales presentation and demonstration. What are the requisites for a good sales
presentation and demonstration?

b) Explain the tools and techniques used for sales presentation and demonstration.

c) What are the steps involved in sales presentation and demonstration?

d) What do you mean by prospects? Discusses the types.

e) What strategies can be used by a salesperson to make its sales presentation and
demonstration effective and efficient?

f) State and explain the types of sales presentations and demonstration.

Some Useful Books

Anderson, Rolph E., Joseph F. Hair, Jr. and Alan J. Bush, 1992. Professional Sales
Management, McGraw-Hill, Inc.
Douglas J. Dalrymple, William L. Cron and Thomas DeCarlo, 2021.Sales management
Concepts and cases, John Wiley & Sons, Inc.
Panda, Tapan K and Sunil Sahdev, 2005. Sales and Distribution Management, Oxford
University Press; New Delhi.
Still Rr, Cundiff EW & Govani, NAP, Sales Management: Decisions, Strategies and Cases,
Fifth Edition, Prentice Hall of India. New Delhi.
 Unit 10 Concluding Sales
Structure
10.0 Objectives

10.1 Introduction

10.2 Meaning of Concluding the sales

10.3Closing Cues

10.4 Trial Closes

10.5 Sales Closing Techniques

10.6 Case Study

10.7 Closing the sale is not the end

10.8 Case study on Asian Paints

10.9 Let Us Sum Up

10.10 Key Words

10.11 Answer to Check Your Progress

10.12 Terminal Questions

10.0 Objectives
After studying this unit, you should be able to:

 explain the meaning of closing the sale;

 describe the closing cues;
 examine the trial close;
 outline the sales closing techniques; and
 explain the importance of follow up.

10.1 Introduction
This is the culmination of selling process. The entire exercise of selling a product becomes
futile if the sales do not take place. The objective of close is to convince the prospect to place
an order immediately or sign the order form. Closing the sales is the logical outcome for
every salesperson, the fruit of his labour at the end of long selling process after satisfactorily
answering customers objections and removing all obstacles. The salesperson should attempt
to close the sales when they are in the conviction stage of buying process. When sales
presentation is thorough and complete there is no difficulty in closing the sales.
Unfortunately, the research shows that 64% of salesperson fail to close the sales because they
are afraid of being told “no”. In this unit, we will study the meaning of concluding or closing
the sale, analyze the closing cues, explain how ‘trial close’ be attempted by salesperson,
outline the sales closing techniques, and explain that the selling does not end with sale.

10.2 Meaning of Concluding the sales

Once the salesperson has demonstrated the product and handled sales objections then finally
the salesperson should close the sales at the right time. An effective close is basically a proof
of the efficiency of the salesperson. If the salesperson has been successful in giving
impressive presentation, is successful in creating good impression, followed a positive
approach in solving prospects objections and maintained good relationship with the prospect
sale is bound to close. If he fails to create good impression, there may be rejections of sale
which may demotivate a salesperson.

But no matter how good a salesperson is, he cannot be 100% sure thateven in case of ‘low
pressure sales’ sales are bound to happen and in case of ‘high pressure sales’ sales will not
take place. Sometimes it may happen that throughout the selling process the prospect agreed
with the salesperson and sales process was smooth, still sales may not happen. On the other
hand, it may also happen that the prospect had a very critical approach and there was very
high pressure on the salesperson but towards the end the prospect readily agreed to purchase
the product.

10.3 Closing Cues

Throughout the selling process the salesperson should be alert and use his wisdom to identify
an opportunity which could lead him to sales. Although it requires a lot of experience, the
salesperson continuously has to assess the attitude and mood of the prospect, and he should
have good understanding of different variety of prospects. The salesperson should be calm,
patient, attentive and answer all the queries of the prospect with a smile. The salesperson
must learn not only ’how’ to close but also ‘when’ to close. He should be very intuitive in
identifying the ‘closing cues. Given below are examples of certain ‘closing cues’

 When customer is interested, he will start handling the product. “Let me try the
trousers to check the fitting and the style” or “let me check the camera of this mobile
by clicking a selfie”.
 When the prospect admires the product and make a positive statement about the
product. He may say, “Oh! This blanket is very soft” or “This puppy is so lively. He
will reduce all my stress when I am back from office after a hard day’.
 When the prospect asks for the order form and start reading it.
 When the prospect start asking about the ‘best deal’ that the salesperson can offer
him’, or he is interested in the final discounted price of the product.
 When prospect start asking much detailed questions like how will product be
delivered, how it will be installed, how early it can be installed, who will come to
instal the product.
 When the prospect’s voice become soft, expressions become more friendly and
pleased and the prospect start conversation with the salesperson in a relaxed and
jovial manner.
 When the prospect becomes interested in who all are using the product. This is to
reduce his post purchase dissonance and get social approval for his decision.
 When the prospect unconsciously checks if he has the cash or if he is carrying his
debit/ credit card. He further asks about other payment options like UPI or net
banking or any other.
 When the prospect is interested in trying or test the product……..Like.. “When can I
test drive the car.
 When prospect has completed the sales presentation and now, he looks at the prospect
for some indication or positivity from him.
 When prospect has answered prospects objections successfully.

ACTIVITY 1

Have you ever used/ noticed the ‘closing cues’ in your interaction with salesperson? Is
there any difference in the ‘closing cues’while making a purchase for your home and
while making a purchase for your office?
 ………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

Check Your Progress A

1. State whether the following statements are True or False.

i. Once the salesperson has demonstrated the product and handled sales objections
then finally the salesperson can close the sales any time.
ii. The entire exercise of selling a product becomes futile if the sales do not take
place.
iii. In case of ‘low pressure sales’ salesperson can be 100% sure that sales are bound
to happen.
iv. The salesperson must learn not only ’how’ to close but also ‘when’ to close.

v. The salesperson continuously must assess the attitude and mood of the prospect.
2. Fill in the blanks:
i. If the prospect knows who all are using the product it is easy to get
……………………………………………….. for his decision.
ii. The salesperson should attempt to close the sales when they are in the
……………………………… stage of buying process.
iii. When customer is interested, he will start ………………………. the product.
iv. The research shows that 64% of salesperson fail to close the sales because they are
afraid of being told ……………………………………………………………….
v. Continuous rejections can be ………………………….. for a salesperson.

10.4 Trial Closes

A trial close is often used by a salesperson to check whether the prospect is ready to buy
the product and thus he may proceed to close the sale. It is suggested that a salesperson
may use the ‘trial close’ at least five times before giving up closing the sale. A ‘trial
close’ is a very significant tool at the disposal of salesperson and be used after the sales
presentation and demonstration stage and close of the main body of the presentation
before moving towards sale or when prospect is ready for sale.
The ‘trial close’ may help a salesperson to determine:

Whether the prospect likes your product

Whether his objections have been answered satisfactorily.

Whether some additional questions are not answered

Whether the prospect is ready to close the sales.

A salesperson may try for ‘indirect close’ using verbal and nonverbal forms in the
following ways;

“Which brand will you prefer to buy…….SONY or Haier.”

“Which colour refrigerator you would prefer to buy….. grey or white”.

“Will you like to purchase an extended warranty of another one year for this Dell laptop”.

“Will you pay all at one time in cash or you would prefer to pay in instalments and will
take loan.”

Give the perfume or product to the prospect to touch, smell, or hear. Let him have multi-
sensory experience. …… “The fragrance of this perfume will last in your clothes for at
least two washes”.

“This cardigan will keep you very warm and cosy in this winter”.

The prospect may respond in different ways to the salesperson’s ‘indirect close’.Some
prospects may want more information before he makes his commitment while others may
come up with more objections. The prospect may feel that salesperson is too hurried and
so he may become defensive.If an “indirect trial close” fails to get a favourable response
from the prospects the salesperson may try for ‘direct close’ as well. For example, he
may try for ‘direct close’ and ask very politely, “What is your opinion about the product”;
“What do you think about our offer”; “What is your point of view on the things discussed
so far”. If still it does not work, he should continue selling the product with a positive
attitude.

ACTIVITY 2

Conduct a market survey with 5 housewives engaged in B2C purchase and 5 heads of
purchasing in different offices engaged in B2B purchase. Identify the most common ‘trial
closes’ used by salesperson that they have noticed. Compare the trial closes used in B2C
and B2B.

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

Check Your Progress B

1. State whether the following statements are True or False.
i. It is suggested that a salesperson may use the ‘trial close’ at least five times
before giving up closing the sale.
ii. A ‘trial close’ is a very significant tool at the disposal of salesperson and be
used after qualifying.
iii. The different prospect may respond in similar way to the salesperson’s
‘indirect close’.
iv. The prospect may feel that salesperson is too hurried and so he may become
offensive.
v. The prospect should not be asked personal questions like which color T-shirt
they will prefer.
2. Fill in the blanks
i. A salesperson may use the ………………………. at least five times before giving
up closing the sale.
ii. If an “indirect trial close” fails to get a favourable response from the prospects
the salesperson may try for
…………………………………………………………….
iii. “What do you think about our offer” is an example of ……………………………
iv. A …………………… is often used by a salesperson to check whether the
prospect is ready to buy the product.
v. “Which model you would prefer is an example of
………………………………….
10.5 Sales Closing Techniques
There are several closing techniques that can be used by a salesperson alone or in
combination with other techniques as per the situation. Let us learn them in detail.

Choice Close: Instead of being asked openly whether the prospect will purchase the
product or not, in case of this technique the prospect is gently guided to choose between
two items the seller has. For example, prospect can be asked, “Which model washing
machine you would prefer?”.

This close avoids giving the option of ‘No’ to the prospect.

Minor Points Close: Using this approach, the salesperson take confirmation from the
prospect on minor points and gradually winning him over and leading towards final sale.
He may help the prospect in narrowing down his choice by asking questions like, “Which
colour would you prefer?”

“You want a deluxe model car or premium model car”, “How would you like to make
payment cash, debit card, credit card?”, “Will it be down payment or instalment”, “How
soon you want it to be delivered to you”.

Assumptive Close: In this case the prospect assumes that the prospect will make
purchase and he communicates this thought to the prospect through his actions, comments
etc. “How will you like to make payment- cash or card” “Will you eat it here in the
restaurant or take away”. He may start wrapping the product, start preparing the bill or
take out his card payment machine. Handling the prospect, a pen to write or handling over
the keys to him is an example that the sale is about to close.

Stimulus-Response Close: The salesperson ask such questions that the prospect is
stimulated to provide favourable response. “You would prefer a base cream that would
compliments your fair complexion, Isn’t”. “You would like to wear such a dress for your
wedding that you stand out, something that nobody has worn before, right”. Such a
strategy is used more by inexperienced salespersons. However, the salespersons should be
careful in implementing this strategy ascertain prospects may find such compliments
irritating.

Summary Close: After the presentation is over the prospect may sum up the advantages
and disadvantages of the product to the prospect. So once everything is in front of the
prospect in black and white it is easy for him to take decision. He can weigh the
advantages and disadvantages and take his decision accordingly. Such a strategy works
very well with rational prospects.

Standing Room Only Close: The salesperson wants the prospect to take his decision
immediately after the presentation because he knows no matter how much the prospect is
impressed with the product, brand and the salesperson once he leaves without deciding he
may not be able to come back because of personal, environmental and situational factors.
So, they put psychological pressure on the prospect by saying that the only few pieces of
the product are left so if they postpone their purchase, they may lose the product as the
product is selling like hot cakes.

Special Deal Close: Sometimes it happens that the prospect is almost ready to purchase
the product but needs some extra push to take favourable decision.Offering their best deal
is one way of luring the prospect to take purchase decision. The salesperson might say, “I
can offer microwave idli-maker along with the microwave if you purchase today” or,
“Since this is the last piece of electric tandoor left, I can offer 15% discount instead of
10%”. He may also say, “I am giving you discount from my commission because with
this piece I will reach my target”.

Success Story Close: The salesperson can cite examples from past customers with
similar problems. He may say that the product solved their problems so it will be of great
help to them as well. “My sister also purchased this electric scooter and she found it to be
very economic with almost zero maintenance”or, “My brother also completed his MBA
from this business school, and he is very well placed in Dubai and my cousin from same
business school qualified for IAS”.

Closing on Resistance: Sometimes the prospect may still have doubts even when the sale
is about to close. Under such situation sales person should be patient and very quietly turn
the resistance into the reason for purchasing the product. “Don’t worry about the weight
of the pots with fresh plants, I will get them home delivered and not only that my man
will plant the saplings also in the pot of your choice”.
Turnover Close: Such closing technique is very common in case of technical products.
Today rather than one individual salesperson handling the entire sales, sales team are
involved in the procedure. If the salesperson feels that prospect’s objections are very
technical or in some cases prospect is looking for greater discount, he might handover the
prospect to his senior stating, “My team leader can answer your specific questions. Let
me introduce you to him”.

Pretend-to-leave Close: A very common and polished technique used by experienced

salesperson who can understand the psychology of the prospects. Once the salesperson
has completed the sales presentation the salesperson in a way pretend to leave and stat
attending other prospects though his focus is very much there. This provides the prospect
some time to think and evaluate the advantages and disadvantages of the final deal.
Sometime they may also discuss about it finally with their family. Then the prospect may
themselves approach the salesperson to close the deal or if this doesn’t seem to be
happening the salesperson may come back with final benefit or ‘extra incentive’ which
may motivate the prospect to close the sale.

Puppy Dog Close: It is based on the notion that very few can resist a cute puppy and if
they take them home they end up keeping them. Similarly, if the salesperson let the
prospect take home the product and try it before finally purchasing it, they will find it
difficult to part with it. For example, if the prospect is not able to decide between buying
which brand, salesperson may ask the prospect to carry home both the products and take
his own time to decide. Majority of the time prospect end up keeping both the products.
One prospect stated, “My family jeweller told me to take both the diamond ring and the
diamond bracelet home because I was not able to decide what to purchase to gift my niece
for her wedding. I ended up purchasing both- ring for my niece and bracelet for myself.”

No-Risk Close: This technique also works like puppy dog close. In this case there is no
risk for the prospect as salesperson is giving money back guarantee in case the prospect
does not like the product, he can return the product and get the money back. Most of the
time even if the prospect is not fully satisfied with the product, he will not return the
product and adjust. The reason being that the moneyback guarantee reduces his post
purchase dissonance. He feels that the product is not forced upon him. The prospect may
think, “I am not fully satisfied with the water purifier and informed the salesperson about
it. He said that there is no problem I may try the water purifier for few more days and if
still I am not satisfied with the product, I may return it but after few days I got used to the
faults in the purifier. Moreover, going to the shop again and trying new product again
seemed too much because of my busy schedule so I continued with the same water
purifier.”

Lost Sale Close: This sale technique requires humility on part of salesperson. He finally
accepts that he was unable to provide the kind of product the prospect was looking for
and so apologizes to the prospect for not able to understand him and fulfil his need. He
may honestly ask him what would have taken for the sale to happen. This may surprise
the prospect and he may himself help the salesperson to provide what he is looking for
and ultimately sales may happen on happy note.

10.6 Closing the sale is not the end

Closing the sale is not the end of salesperson and customer’ interaction. In fact, it is the
beginning of development of new relation ship between them which is the foundation of
any relationship and is known as relationship marketing. After the purchase it is very
natural and very human for customers to suffer post-purchase anxiety about the wisdom
of their purchase decision. Follow up calls from salesperson play a very important role in
alleviating the anxiety and reassure the customers of their decisions. Alleviating this
anxiety is very important otherwise an unsatisfied customers may bad mouth it to other
prospects and tarnish company’s image. Research prove that the unsatisfied customer will
complaint more about the product to other prospects then a satisfied customers spreading
the positive reviews. Moreover, it is easy to sale to a current happy and satisfied customer
than looking for a new prospect. So, salespersons should always keep the lines of
communication open and if salespersons have any problem even after the purchase,
resolve them as soon as possible. Maintaining relationship with prospect even after
closing the sale also make it easy for the salespersons to introduce complementary
products later. The concept of team selling should continue in the follow up stage as well.

ACTIVITY 3
Give one example each for the following closing techniques used by salesperson from
your interaction with them on various occasions:
Turnover Close……………………………………………………………………………..

……………………………………………………………………………………………..

Minor Point Close………………………………………………………………………….

………………………………………………………………………………………………

Assumptive Close…………………………………………………………………………..

………………………………………………………………………………………………

Check Your Progress C

1. State whether the following statements are True or False.
i. It is based on the notion that very few can resist a cute puppy especially if it of
white colour and has long hair.
ii. Putting psychological pressure on the prospect and lying by saying that the only
few pieces of the product are left is unethical.
iii. Offering their best deal is one way of luring the prospect to take purchase
decision.
iv. In case of No-risk close even if the prospect is not fully satisfied with the product,
he will not return the product and adjust.
v. Handling the prospect, a pen to write or handling over the keys to him is an
example that the sale is about to close.
2. Fill in the blanks:
i. Asking final short questions that they finally lead to sales is
called…………………
ii. When the salesperson starts wrapping up the sales taking it for granted that sales
will happen is
called……………………………………………………………………...
iii. After the purchase it is very natural and very human for customers to
suffer…………………………………………. about the wisdom of their purchase
decision.
iv. The sales technique in which the salesperson is giving money back guarantee in
case the prospect does not like the product, and he can return the product and get
the money back work like ………………………………………………. close.
 v. Closing technique where rather than one individual salesperson handling the entire
sales, sales team are involved in the procedure is
called……………………………..

10.7 Case Study on Asian Paints

This company was started by Champaklal H. Choksey, Chimanlal Choksi, S.C Dhani and
A.Vakilback in 1942 as a partnership firm. In 1945, it was transformed into a private limited
company under the name of Asian Oil and Paint Company Private Limited. In 1965, the
name was modified to Asian Paints (India) Private Limited (APIL). In 1973, it was changed
into public limited company; it set up its first plant in Bhandup in 1957.
APIL stems 92% of its returns from paints. It has focused on decorative paints, and it has a
market share of 45% in the domestic paints market. It is the only paint company with a
captive pan as a key input. The company is streamlining its operations into three SBU’s-
industrial, decorative, global. It has set itself a target to be among the top five paint
companies by 2005.
Sales Process
Usually, the below mentioned sales process is followed by sales managers in Asian Paints.
Prospecting
The territory of sales manager is pre-determined from an existing database of dealers, non-
dealers and sub-dealers. A charting exercise is done two times every year (once before the
season and one after the season) by the concerned salesperson to attain data on additions to
the existing database/corrections to the database. This provides the sales manager with a
database of channel members in the territory, their current and potential sales for the future,
their linkages, purchase behavior and financials so that the intermediaries can be discovered.
Qualifying
Based on their potential, viability and their effect on other channel partners, a decision is
taken whether to pitch for dealership at these shops.

Need Identification
The shops are either proprietorships or partnerships. Asian Paints, being the market leader
with an outstanding brand pull, does not require to make market push to create customer
traffic. But the requirement for the customers to directly deal with the company is too strong
because of market dynamics. This happens because of low direct benefits for the shop like
higher stocking, high levels of instant investment, zero credits and all credits at the end of the
month resulting in higher purchase cost or higher obstruction of funds.
The possible requirements of the resellers can be categorized as per the following: the
shopkeeper wants to start the shop’s image by becoming an authorized dealer; wants to build
trust among customers by becoming an authorized dealer; wants to increase share in the
market; wants to expand into paints; wants to participate with other shops having dealerships;
requires company assistance to growing business.
Demonstration
The terms and conditions of becoming an Asian Paints dealers are explained. The procedures
are simple, not much of certification required. The product portfolio is explained with
importance on making the brand move quicker in the channel. The standard pack sizes are
clarified, and demonstration kits are used if required during the demonstration.
Handling Objections
The most common objections encountered and the way they are handled are explained below:
In response to objections on higher stocking (must order in average quantities and not loose),
the prospective dealers are instructed that it is proposed for the advantage of the dealer so that
he can entice huge number of customers. In such a case, stocking is essential. The SKUs that
are not fast moving can be sold loose also.
In response to objections on high level of instant investment, they are guided that this
investing is one time and since Asian paints products enjoy a higher return on investments,
the returns on the same investments are higher compared to investments with the competitors.
It is always advantageous for the dealer to stop the entire range as in such a case he stands to
gain customers who may not come to his shop due to non-stocking of the same.
In response to objection on zero credit, they are instructed that this is a company rule as
accompany is dealing with the dealer for the first time and the company is not taking any
securities like other companies do (It only takes payments for the goods build). The credit
provision may be considered once few transactions are over depending on the value of
transactions, examples of other dealers are given in the context.
In response to objections on all credits at the end of the month resulting in higher purchase
cost/higher obstruction of funds, they are instructed that there are other assistances that an
authorized dealer enjoys against which the blockage is negligible.
In response to the argument that competition is offering better schemes and better credit, they
are counselled that it is difficult for the competitors to maintain sales as fast as that of Asian
Paints. So, the higher return on investment that the dealer will get by Asian Paints will
compensate for the same.
In response to claims of better servicing by the competitor company, they are counselled that
this is by far not true and can be countered by comparing the number of visits the competitors
salesperson makes (his frequency of visits are less compared to Asian Paints sales personnel).
The responses to dealer are much faster due to the smaller geographical territory assigned to
Asian Paints salespeople.
In response to objections on counting complexity (tracking of purchase and settlement of
schemes), they are advised that documents of accounts are shown with their responses in the
customer service initiative response book for his contentment.
In response to objection against happy selling competition and no needs for Asian Paints
dealership campaign run by the competitors, they are counselled that the higher ROI that the
Asian Paints dealer enjoys gives him higher returns throughout the year rather than for a
specific period.

Closing
Once all the objections are answered successfully, the initial order for first billing is made,
this order is made keeping in mind the profile and potential of the shop and no such products
are billed that can end up as dead stock. This determination and concern is to bill only those
items that will have a fast-moving character in his shop. The sales is closed with a clear
signal that the company is acting in the interest of the dealer. Sales activities are also
undertaken at the point of the end customers of the product. The end customers include
painters, painting contractors, interior designers, architects, committee members (in case of
Cooperative societies/Institutions), technical/purchase departments, end customers (husband,
wife and even kids), builders, and dealers. The decision makers can be a combination of
several or all the above with the varying degrees of influence at different phases of buying
paint.

10.8 Let Us Sum Up

This unit summarizes closing the sale stage which is the culmination of selling process.
Closing the sales is the logical outcome for every salesperson, the fruit of his labour at the
end of long selling process after satisfactorily answering customers objections and removing
all obstacles.When sales presentation is thorough and complete there is no difficulty in
closing the sales. If the salesperson has been successful in giving impressive presentation, is
successful in creating good impression, followed a positive approach in solving prospects
objections and maintained good relationship with the prospect sale is bound to close. But no
matter how good a salesperson is, he cannot be 100% sure that even in case of ‘low pressure
sales’ sales are bound to happen and in case of ‘high pressure sales’ sales will not take place.
The salesperson should be alert and use his wisdom to identify an opportunity which could
lead him to sales. The salesperson must learn not only ’how’ to close but also ‘when’ to
close. He should be very intuitive in identifying the ‘closing cues.

A trial close is often used by a salesperson to check whether the prospect is ready to buy the
product. A ‘trial close’ is a very significant tool at the disposal of salesperson and be used
after the sales presentation and demonstration stage and close of the main body of the
presentation before moving towards sale or when prospect is ready for sale. The ‘trial close’
may help a salesperson to determine: Whether the prospect likes your product, whether his
objections have been answered satisfactorily, whether some additional questions are not
answered or whether the prospect is ready to close the sales.If an “indirect trial close” fails to
get a favourable response from the prospects the salesperson may try for ‘direct close’ as
well.

There are several closing techniques that can be used by a salesperson alone or in
combination with other techniques as per the situation. For example: choice close, minor
point close, assumptive close, stimulus response close, summary close, special deal close,
turnover close etc.

Closing the sale is not the end of salesperson and customer’ interaction. In fact, it is the
beginning of development of new relationship between them which is the foundation of any
relationship and is known as relationship marketing. Follow up calls from salesperson play a
very important role in alleviating the anxiety and reassuring the customers of their decisions.

10.9 Key Words

Closing the sales: The selling process concludes with closing the sales.

Trial Close:A trial close is used by a salesperson to check whether the prospect is ready to
buy the product and thus he may proceed to close the sale.
Closing Cues: It is an opportunity that salesperson should identify which could lead him to
close the sales.

Sales Closing Methods: Different techniques that can be used by salesperson to close the
sales for example choice close, minor points close, assumptive close, summary close, puppy
dog close, turn over close etc.

10.10 Answer to check your progress

A. 1. i. False ii. True iii. False iv. True v. True

2.i. social approval ii. conviction iii. handling iv. no v. demotivating

B. 1. i. True ii. False iii. False iv. False v. False

2.i. ‘trial close’ ii. ‘direct close’ iii. direct close

iv. trial close v. trial close

C.1. i. False ii. False iii. True iv. True v. True

2.i.. minor point close ii. assumptive close iii. post-purchase anxiety

iv. puppy dog close v. turnover close

10.11 Terminal Questions

1. What is the meaning of concluding the sale? Why it is said that no matter how
good the sales presentation was a salesperson cannot be hundred percentage sure
of closing the sales.
2. Why is it important for a salesperson to identify the ‘closing cues? What will
happen if they do not do so.
3. Explain the significance of ‘trial close’ in closing the sale with suitable examples.
4. What are the different closing techniques that can be used by a salesperson to
close the sales? Explain any two which according to you are most effective in
B2B selling.
5. It is often argued that closing does not end with a sale. Explain.
Some Useful Books
Anderson, Rolph E., Joseph F. Hair, Jr. and Alan J. Bush, 1992. Professional Sales
Management, McGraw-Hill, Inc.
Douglas J. Dalrymple, William L. Cron and Thomas DeCarlo, 2021.Sales management
Concepts and cases, John Wiley & Sons, Inc.
Panda, Tapan K and Sunil Sahdev, 2005. Sales and Distribution Management, Oxford
University Press; New Delhi.
Still Rr, Cundiff EW &Govani, NAP, Sales Management: Decisions, Strategies and Cases,
Fifth Edition, Prentice Hall of India. New Delhi.
 BCOS-186
Personal Selling and Salesmanship

BLOCK

4
Sales Report, Ethics and Career Opportunities
UNIT 11
Report and Documents in Sales
UNIT 12
Ethics in Selling
UNIT 13
Skills for Salesperson
UNIT 14
Career Opportunities in Personal Selling
BLOCK 4 SALES REPORT, ETHICS AND CAREER OPPORTUNITIES

In the previous block, you have learnt about the sales process. In this block, you will learn about
the sales reports and documents, ethics in selling, salespersons skills and career opportunities in
personal selling. This block consists of four units.

Unit 11 describes about the preparation of sales report, types of sales report and documents,
essentials of good sales report and process of writing sales manual.

Unit 12 discusses the ethical aspects in selling, legal issues in selling and compliance techniques
to ensure ethical selling.

Unit 13 discusses the various important skills for salesperson: Communication Skills, inter-
personal Skills, persuading skills, organizational skills, and customer service Skills.

Unit 14 discusses the career avenues in personal selling, measures for making personal selling
an attractive career and self-employment opportunities in personal selling.
Unit 11: Report and Documents in Sales

Structure
11.0 Objectives
11.1 Introduction

11.2 Objectives of Making Sales Reports and Documents

11.3 Importance of Sales Reports

11.4 Types of Documents in Sales
11.4.1 Progress or Call Report
11.4.2 Sales Work Plan Report
11.4.3 Expense Report
11.4.4 New Business Report
11.4.5 Loss Sales Report
11.4.6 Complaints and Adjustments Report
11.5 Salient Features of a Good Sales Report
11.6 Sales Manual
11.6.1 Benefits of Sales Manual
11.6.2 Contents of Sales Manual
11.6.3 Essentials of an Effective Sales Manual
11.6.4 Process of Writing a Sales Manual
11.6.5 Features of a Good Sales Manual
11.7 Order Book
11.8 Cash Memo
11.8.1 The Contents of Cash Memo-
11.9 Tour Diary

11.10 Let Us Sum Up

11.11 Key Words
11.12 Answers to Check Your Progress
11.13 Terminal Questions

11.0 OBJECTIVES
After studying this unit, you should be able to:
 explain the Sales Report and its components ;
 describe the objectives and the importance of the sales report;
 describe the various types of documents in the sales ;
 enumerate salient features of the good sales report ;
 develop Sales Manual ;
 explain the benefits, contents, and essentials of the Sales Manual; and
 discuss the features of a good sales manual .

11.1 INTRODUCTION
Sales report is the document in which sales activities within a specific time frame are
recorded. It is also called a sales document. It is a concise document which lists down all the
activities performed by different people in the field. The sales report is prepared and sent by
sales people to the higher authorities in their department for evaluation and formulation of
strategies for the upcoming activities. The managers of higher stature expect their team to
make value generating reports that would encapsulate all that is required for data analysis.
Data such as competitive course of actions, customer related statistics, reactions based on
policies of the company and its products as well as services and so on are presented. The
performance of sales force is also listed down in the sales report in a comprehensible manner.
The pertinent data such as number of leads generated, number of orders placed, territories
covered, number of new prospects etc. are entailed in the sales document. To be aware of the
sales statistics, it is important to know what the contributions are in the salesforce and which
areas require more attention to reach its full potential. In the process of sales, there are
various stages which requires strategic planning with respect to the previous patterns that
have been found by analyzing the past records. Therefore, sales reports make the job easier
for the business leaders to come up with solutions as to how the sales statistics could be made
better in the days to come. A sales analysis report typically contains all the data pertaining to
the sales funnel and indicates the performance of the sales representatives as well. Growth
initiatives or measures for sales and its approach could be simplified using the help of real
time sales reports. There are different kinds of sales reports which are based on several KPIs
(Key Performance Indicators) and frequencies. The sales documents contain explanations to
the sales figures and their possible impact on future operations in the sales department. Sales
documentation gives an insight into the future course of action and find the scope to enter
new markets for increasing the sales. The reports vary depending on the time frame and the
number of leads generated. The documents can be made on a daily, weekly, or monthly basis.
These reports would describe the trends over a certain period. Analyzing the data would help
the sales representatives to enhance the performance of the entire team and produce better
overall sales results. In this unit, you will learn about the objective of formulating the data in
a sales report format and its importance in the process of improving the business motives of
different organizations.

11.2 OBJECTIVES OF MAKING SALES RELATED REPORTS AND DOCUMENTS

A business leader needs a reliable and real time information system to create a functional
sales process and channelize it in the desired manner. The sales representatives are in
constant contact with the customers and are aware of the competition they are facing in the
market. Therefore, they are the ones who have access to the first-hand data available. The
sales reps can formulate the information through sales reports and documents. These reports
and documents could be mundane if not put in a structured format. The best way to describe a
sales report is to make it comprehensible so that it can communicate the analysis to the
audience in a right manner. Every single aspect of sales data cannot be illustrated in a sales
report. Thus, the most important thing to consider is that it must be portrayed in a way that it
helps to attain the goals of an organization and fulfil its objectives.

The sales documents provide a detailed information on performance of sales reports. Some
other purposes of sales related documents are providing enough material to assess the details
of prospects contacted and the follow ups made. Apart from this, number of orders taken,
miles covered in the assigned territory, number of days worked, costs incurred and so on are
also entailed in the report. The suggestions and grievances of the customers do have a
specific space in the sales report. This helps the business leaders to change the policies and
programs in accordance with the suggestions given by customers. Based on previous sales
documents, a salesperson would be able to channelize the new ideas into new innovative
ways for capturing a greater number of territories with the help of advertisements,
promotions, campaigns and so on. The objective of formulating a sales document is to give a
detailed information for monitoring the performance. It helps to establish the possible ways
of determining business opportunities. Some other objectives are mentioned as follows:

a) To monitor and analyze the performance of sales representatives

b) To analyze the customer satisfaction based on the data collected on the responses and
reactions of customers.
c) To understand the competition in the market and be aware of the activities of the
competing firms.
d) To mitigate the problems encountered by the sales representatives.
e) To predetermine the changes occurring in the market conditions.
f) Sales policies are made based on the data collected.
g) To improvise the techniques of fulfilling the sales quota and achieve a greater number of
sales territories.
h) To reduce the costs incurred in performing sales and control extra expenses.

11.3 IMPORTANCE OF SALES REPORTS

Sales reporting and documentation might seem to be a daunting task. However, it is quite
insightful for any company and is pertinent enough for its success. The performance of
individuals can be portrayed via the articulated reports. It would help to find the best
performing sales person. The documents will give proper information on where the best leads
would be found and how well qualified those leads are. The use of big data would help in
segregating large volumes of data pertaining to sales and simultaneously create well-
structured reports. The challenges encountered with the sales pipeline can be very well
identified using the reports. Sales reports gives the utmost important set of data about the
representatives or sales executives of the department. It provides valuable inputs on market
trends and competitive analysis with respect to other companies. Important questions are
addressed in the sales documents such as who the customers are, regions from where the
leads are generated, the reason for delayed responses or any other loophole, performance
figures related to the campaigns, and the closing rate. Sales report not just addresses
questions like this but is also important in certain ways. The major importance of sales
reports are as follow:

1. Evaluating the revenue generating products offered by the company: The sales
related documents make it easy to comprehend which is the best product or service
that is generating huge amount of revenue and has the potential to gain a greater
number of customers. The reason why it becomes easy to evaluate is the structured
way of articulating the expenses, analyzing the sales, assigning value to the products,
and keeping the track of money incurred by the process of selling the products or
services offered by the company. It facilitates the sales funnel by identifying the
profits incurred by each product. The reporting process enables a sales representative
to fine-tune the efforts spent on marketing and selling the products. The data can be
 used to promote and advertise the goods which are generating opportunities in terms
of wealth and customer loyalty for future growth of the company.
2. Monitor the slow-paced products: The sales reports not only provide information on
the most prominent products offering huge benefits but also find a way for
determining which product is generating the least number of profits. It helps to locate
the products which are moving in slow pace in the product line and offering the least
benefit to the company. The data constituted in the sales document will be able to tell
us how to optimize the existing resources. It shall help the executives to support the
managers in designing strategies beneficial to the organization. The risks of over
stocking can be reduced by the help of available data. The cost of reducing is too
high, holding inventory can overshoot the expenses and incur losses in the process.
Using the data available in the sales report one can manage price changes and use the
technique of introducing discounts on products which are incurring losses.
3. Determining most profitable consumers: The same way by which the sales report
was helping the managers to find the products incurring profits, it shall also help them
identify the profitable and potential customers. This seems to be a data holding a lot
of value as it becomes a decisive factor where a company should invest more in order
to gain new customers and retain the existing ones. It serves the purpose of brand
loyalty. Customers are an asset to the company and the entire success rate of the
company depends on how many new customers a brand is able to attract. This
pertinent piece of information from the sales data will allow the companies to
improve their customer retention policies and build on the strategies enabling
customer loyalty. This can be done through various processes such as discounting on
specific products, bonuses for the loyal customers and VIP services to the existing
customers, so that they are satisfied and share their experiences with the use of word
of mouth.
4. Finding more suitable prospects and different consequences: The data in a sales
document presents various trends and patterns and by visualizing such patterns it
becomes much easier to detect the potential challenges and opportunities pertaining to
the territories covered. If the sales data of a particular product indicates a growth in its
sales volume, the inventory must be stocked in correct amount so that the supply
meets the demands. The distribution channels must have the products in store so that
there is no compromise in meeting the demands of the customers. Well, on the other
hand if a product experiences slowdown in the sales figures, the managers can
 simultaneously lower the prices or give additional discounts to attract customers.
More investment on such products could be done, if the report of sales indicates
otherwise, this will help in popularizing the products and increase its sales.

Check your Progress A

1. Which of the following statements are True and or False:

i. Sales report is the document in which activities of all the departments in a business
are recorded.
ii. The managers of higher stature expect their team to make value generating reports
that would encapsulate all that is required for data analysis.
iii. KPIs stands for Key Performance Institutions
iv. Sales reports helps in monitoring and analyzing the performance of sales
representatives
2. Fill in the Blanks
i. Sales report gives the utmost important ___________________ about the
representatives or sales executives of the department.
ii. Sales report facilitates the ______________ by identifying the profits incurred by
each product.
iii. Monitor the slow-paced ___________ is possible through the sales report.
iv. The purpose of determining most profitable consumers is the look for the customers
who have high ______________.
v. A business leader needs a __________ and ___________ information system

11.4 TYPES OF DOCUMENTS IN SALES

11.4.1 Progress or Call Report

A sales executive must make calls for generating leads each day, week, or month. The
representative makes a note of each, and every person contacted on the company’s behalf and
makes an entry in the sales document. This is a first-hand entry in the report and is valuable
to the organization. The data consists of all the accounts pertaining to different territory. The
information listed in the document is necessary as it contains order details, competing brands,
suitable slots provided to touch base with customers, and the negotiations done with the
consumers. Every bit of information is stored in progress or call report. Henceforth,
companies make a deliberate use of such reports in strategy making or during any kind of
policy changes.

11.4.2 Sales Work Plan Report

It is the kind of report where basic planning and outlining of future programs are done. A
report related to the sales work to be done in the near future is formulated and kept ready for
the next course of action in the sales work. The important information such as accounts to be
called, territories to be covered, travel plans for sales purpose, hotels to be checked in, any
new contacts to be made, routes to be travelled for various purposes are articulated in
advance by the salesperson, so that the sales program is done in a smooth and efficient
manner. This report helps in scheduling and planning the entire journey of a sales
representative. An example of a document which contains such information to be stored as
sales work plan report is given in figure 11.1

Hindustan Unilever Limited (HUL), Mumbai

Name of Salesperson- Date-Week

Day Name of Place Object of

Prospect visit

Figure 11.1 Sales Report

11.4.3 Expense Report

This is also known as reimbursement report, where a sales executive records all the
information related to the expenses incurred by him/her during a sales work. During their
jobs, they have to travel various places and deal with different clients and customers. Hence,
each month they need to record all their travel and related expenses in expense report so that
they get an easy reimbursement for their duties. This kind of a report is also helpful in finding
out the expenses and their nature. In case there is a need of cost cutting, managers can refer to
these documents to reduce the funds allocated for expenses. This report can be submitted on a
weekly or monthly basis to the higher authorities for a reimbursement of the expenses made.
The sample of an expense report has been shown in Figure 11.2

Expense Report
Hindustan Unilever Limited (HUL), Mumbai
Name of Salesperson- Date-Week

Date Account Description Hotel Meals Transport Total

Figure 11.2 Expense Report

11.4.4 New Business Report

The new prospects identified are listed in such a report. The new business report consists of
all the new businesses initiated during a certain time period. The performance of sales
representatives is measured using such a report. The ability of a salesperson to capture the
market, attract customers and contribution to the company are all evaluated using this report.
Managers are able to identify the potential of a sales guy to generate new business.

11.4.5 Loss Sales Report

There is a possibility of losing sales during a sales process. This document would contain all
the required details of all such orders and customers lost during a given period. The loss in
sales is registered for future use, so that prevention methods can be applied if such a case
seems to take place. The loss in sale will help in analysing the customer retention policies and
make improvisations based on the report. Loss sales report would give a first-hand
information on preventing future losses by improving the sales techniques such as customer
service improvement, salesperson training, improvement of products and so on.

11.4.6 Complaints and Adjustments Report

It records all the important complaints and the modifications done in the policies related to
products and services of the organization. The report generated by a salesman is evaluated
and analysed by the higher authorities with respect to the complaints registered. The amount
spent for complaint adjustment and all the complaints associated to a sales representative’s
work is analysed by the existing information in the report. The reasons in the form of specific
clauses are mentioned in this document. The steps of resolving the problem, redressal of the
grievances and complaints are recorded along with the complaints in the document. The
adjustment report contains information about the response given with respect to the grievance
mentioned in the report.The letter of complaint entails details about the request of the
customers for compensation or refund of the damaged or defective products, bad services, or
delay in delivering any service to the customers. The complaints which are made in person
are recorded in complaints and adjustment reports. The reason behind this is effective and
formal handling of the complaints such that these are not repeated in future. The diplomacy
and dignity are maintained if the grievances are kept formal and recorded with respective
dates and instances.

There are quite a few important points to keep in mind while documenting a complaint report.
The process to write a complaint or adjustment report is as follows:

 The reason for document the grievances or complaints is the priority and should be
mentioned in the beginning. The details of the situation must be mentioned at a later
stage.
 A description of the problem should be mentioned next along with the evidence.
 The compensation or any kind of solution which is demanded must be stated at this
stage.
 The reason for accepting or granting the request could also be mentioned to make the
report more detailed and structured.
 Suggestions or feedback related to the service has to be mentioned at the final step to
make the organization aware of the consequences such as losing customer or
reputation in the industry.
Adjustment reports are basically the solutions implied or the responses given with respect to
the complaints registered. These must be handled carefully and effectively if in case the
refund cannot be generated for a specific product or service. The letters for adjustment must
be written in such a manner that it does not hurt the sentiments or trust of other people. The
reference must be given according to the date at which the complaint was registered. In the
adjustment document, concern must be expressed with respect to a specific grievance along
with the solution given for dealing with the case.

11.5 SALIENT FEATURES OF A GOOD SALES REPORT

An ideal sales report follows the 4 C’s -“Clear, Concise, Complete and Correct”.There are
several instances where a presentation based on sales reports are shown but they appear too
confusing and are complex in nature. This kind of a presentation would lead to wrong
interpretations and false expectations. Therefore, it is important to create the reports in a
manner they are supposed to be presented, i.e., readable, comprehensible and must be
interpreted in a proper way.

For appraising a sales team, a manager would require all the details pertaining to the sales
made, prospects gained, revenue generated and so on. The sales department of any company
is the most vital part of it. Since, the sales team is doing the groundwork of attracting
customers and retaining them. They are the first point of contact with the customers. The
details pertaining to the sales report shall give a path to understand which products have to be
discontinued in future, how many employees to hire in the sales team, what number of
bonuses to be paid and so on and so forth. This information entailed in a sales report are
critical to the success of an organization. It is important that sales executives must create
properly structured, clear, and comprehensible reports and documents of sales work so that
they are able to show the pertinent information in order to save the company from losses and
create a smooth path for continuous success and growth in the future.

The information stored in various places grows bigger and bigger in size and managers find it
very difficult to sort it and analyse which information is useful and which is not. The
managers must guide their representatives about the sales documents and the process of
creating it so that they are aware about the nuances of it and are able to portray the
information in such a manner that it becomes useful for the entire team and the enterprise at
large. The audience must be known to the managers as well as the salespeople and the
requirement of specific information should also be determined beforehand. This would help
in creation of a concise and clear sales report.

The data should be aligned with the vision of the audience and decision making must be
based on the report to make sure that the enterprise is on the correct track. It is important to
find the appropriate time to focus on, i.e., weekly, monthly, or yearly. The focus of the sales
document will be identified by the time of the report. Annual reports give a comprehensive
information about the trends of products and services of a company. Important information
such as buying behaviour of customers, new initiatives of marketing, new product
development, the fluctuations in the trend at various occasions are included in the report. The
data allows a user to compare the results of sales and make improvements for the same.

The sales report should be easily perceivable, and it should have the ability to convey the
interpretation just the way it should be. The data must be readable, comprehensive, and
understandable at the same time. Through the help of graphs and pie charts, the data in simple
tables can look much cleaner and the trend can be seen in a proper way. Only a reliable set of
data in a sales report can be used to make it solid evidence for decision making. The size of
an enterprise may differ but there is a need to install a reliable and robust software to track
and analyse the sales data before crafting a report. Customer Relationship Management
(CRM) helps a company to design the most important data sets inclusive of all the major
aspects in a sales report. A well-adapted CRM gives an unparalleled set of information which
is useful for many purposes.

The sales representatives might find it interesting to capture all sorts of data in a sales report.
However, data such as number of calls made could be of less important to the higher
management as compared to number of orders taken. Therefore, the main objective of a sales
executive would be to show only that information which seems useful for taking action. The
list would comprise of daily call report, productivity report, the sales pipeline, the forecast or
prediction of sales and finally the sales forecast for the upcoming terms. The data can be
forged, or the numbers can be twisted. These numbers would never tell a perfect story of the
sales work done. Therefore, the sales representatives are expected to show the data in a way
that it can be visualized by the management in an appropriate manner. The sales document
must be made interesting with the use of graphs, pie charts, histograms and so on. The
numbers must be aligned to the context. For instance, the sales of previous month went down
tremendously, the management would look for a possible reason. The sales report must be
able to indicate that the sales went down because of tropical storm or any other reason and
the impact was huge. It was the reason behind a smaller number of sales made in the territory
which attracted a huge customer base. It should be shown that the predicted sales data shows
a rise in the coming months. This kind of a story or a context should be attributed along with
the predicted sales data. This will help the team to determine the actual trend followed.

Check Your Progress B

1. Which of the following statements are True or False:

i. A General Manager must make sales calls for generating leads each day, week, or
month.
ii. A report related to the sales work to be done in the near future is formulated and kept
ready for the next course of action in the sales work.
iii. Expense Report is also known as reimbursement report.
iv. The new business report consists of all the new businesses initiated during a certain
time period.
v. Loss Sales Report contains all the required details bad debts.
2. Fill in the Blanks
i. ____________________records all the important complaints and the modifications
done in the policies related to products and services of the organization.
ii. Adjustment reports are basically the ____________ implied or the responses given
with respect to the complaints registered.
iii. An ideal sales report follows the 4 C’s - “Clear, _________, Complete and Correct”.
iv. The data should be aligned with the __________ of the audience to make sure that the
enterprise is on the correct track.
v. The _______________helps a company to design the most important data sets
inclusive of all the major aspects in a sales report.

11.6 SALES MANUAL

The sales manual is guide stating the best policy, practices, procedures, and protocols that
guide the salespersons throughout their sales efforts. Such manuals also set the standards for
their performance. The sales representatives who generate revenue tremendously by showing
their efforts are crucial for the company. Companies have seen success because of certain
reasons. The sales team of a flourishing company has access to all the information required to
bring about positive changes in an organization. They are updated with all the scenarios
which makes them more effective and smarter. The companies provide adequate and real
time data to the sales personnel to support them with all the means for generating larger
revenues by contacting a greater number of prospects. The trainings provided to sales team
are indispensable for the growth of the company. The sales manual created by personnel of an
enterprise is shared among all others and the sales team is most benefitted by such
handbooks.

It is a key resource for the sales team as it is an essential part of the training provided to the
personnel. All such information which is required by the team is present in the manual and it
assures a trustworthy performance of the sales associates. The selling process of a company is
taught through the use of sales manual. The sales personnel are educated through the
handbook about the major benefits, advantages pertaining to the process and the way things
are done in the organization. The associates can also be made aware of the competitive
markets through the sales manual. It will serve as a guide that shall teach the associates about
closing prospects.

The manual must be a living document and it should be updated in a timely manner. The
manual has to entail all the ongoing sales processes along with the policies and practices of
the company. However, the sales manual would not suffice, so the sales associate has to go
through a rigorous on-the-job training to get a practical view of the things. The sales manual
acts as a complement to the training via mentors and is an additional help given to the sales
team.

11.6.1 Benefits of Sales Manual

The ever-increasing success rate of some companies is only because of a robust sales team
which is well equipped with the resources, properly trained and knows how to deal with
customers. The advantages of the products and services offered by a particular company
should be known accurately to the sales teams. The key skills of negotiation, fluent
communication skills and a positive outlook helps the sales team to connect with the
consumers. However, this must be complemented with an adequate training which makes
them aware of the functionalities of the department, the uniqueness of the products and the
competitive advantage they have over others. The sales personnel of competitive firms are
educated about the policies, programs, benefits of the products offered, and many other things
which are imperative to the whole system. That is the sole reason why competitive
enterprises keeps the sales team updated. This is done by the sales manual as it provides the
key metrics and standards of the performance expected. The sales document essentially
provides a huge number of benefits. Some of which are listed as follows-

a) The perspective of the employees is common. It is beneficial in keeping the personnel

on the same page. When the goals and objectives are common, it is advantageous for any
firm as there would be a smaller number of conflicts and the work would follow a smooth
path. This paves the way for efficient and trustworthy communication across all the
functional teams. The sales manual eradicates any miscommunication and eliminates any
kind of confusion among the teams while they are contacting the prospects.
b) The priorities of the company are set straight, and the sales team is tactfully aligned
with the objectives of the company. The manual is also a one stop solution for the sales
department to understand how is their performance benefiting the whole organization.
The process of sales is repetitive and is recorded in the sales document to be followed by
the team to enhance the system of on boarding and making the organizational culture
effective.
c) Improving the arrangement of sales and marketing process. The sales manual builds
the developmental goals and helps to achieve the same. The sales and marketing process
are aligned together and promoted for capturing the market and increasing the customer
base.
d) It equips the sales team with the tools and techniques they need. An appropriate sales
manual gives the sales personnel the instruments they need to close, any additional
arrangements they need for transforming the possible prospects into purchasers. The sales
personnel will see how to conquer dismissals or rejections and address the organization's
incentive. As time passes, this shall also assist the managers with expanding their deals
and reach the main goal.

There are key resources required for performing better in any department. On this note, sales
representatives also look for useful information which shall help them to take their
performance to next level. The managers pass on important documents, handbooks, and
manuals for their benefit. There is a huge competition in the market and companies are
striving hard to give their best efforts in whichever ways possible. The sales representatives
of several firms are trying to gain a competitive edge over others. Having said this, it is
important to look out what would make the sales department of a particular company
effective and what are the ways by which they can give the best results. The sales manuals
are such tools which gives an edge over others because lots of things depend on these
manuals. The training of the sales personnel is somewhat dependent on these manuals. The
manuals provide a concise and clear content to the personnel for understanding the plans
better.

It is believed that the quickest way of expanding the business or growing sale of items is to
teach the sales force the vital elements and advantages of the offerings, novel benefits of the
item, how to sell the item, and the opposition or rivals in the market. The performance of the
organization relies upon its sales group's performance and ability to make a mark on the
consumers. That is the reason shrewd organizations keep sales teams exceptionally educated
pretty much everything about the fundamentals, which is absolutely important for being
savvy and compelling. They supply resources to the sales personnel so that their needs are
met, and they are able to do the work outstandingly well and keep them all around prepared.
The business manual teaches strategy, techniques, best practices and how-to direct the team
and in which direction. It clarifies all the conventions and cycle of doing the job in a perfect
manner.

It gives guidelines of performing sales. In all such cases, brevity and a good enterprise
consists of a well-crafted sales manual. Such manual which is significant on the grounds that
sales representatives do not have enough of time to read the information, and they need fast
access to the data. It is important that the business manual is succinct and provides quality
data.

11.6.2 Contents of Sales Manual

Contact information-The information pertaining to contacts of several people associated to
different domains are articulated in the sales document. It incorporates telephone numbers
and email address where salesman can get extra data about the product or service.

Selling strategies-“The outline target market, market size, sales cycle, ideal client profile,
rundown of current clients, references, press notices and examples of overcoming adversity
are included. In case this is a one-page sales guide, the data should be kept to one passage
listed in bullet points.
These techniques incorporate objective market, market size, sales cycle, ideal client profile,
rundown of current clients or consumers and references.
Products and demonstration of products-Positioning of the item, how does it squeeze into
the general product offering, a listing of key elements and advantages, demonstration
features, highlights are most normal customer questions, and statements related to product
updates. For a one-page sales guide utilize just the main three vital components and
advantages. The positioning of products in the product line offering, key provisions and
advantages, features, highlights, exhibits, most normal customer facing questions are the
important aspects which needs to be looked closely. Hence, these are stated explicitly.

Competition-A list of key competitors with a component framework is the most ideal way of
showing this important data. It is pertinent to remember to incorporate pricing of the products
and services offered. Short reviews on key contenders including qualities, loopholes, and an
outline of their system can be valuable only if there are a couple of competitors. Since
numerous competitors fall into comparable classes one might need to picture a wider
technique for going up against these key competitors in those classifications. One might
likewise need to incorporate reviews of what the will competitor say to the existing
customers.

The manual states the products, valuation, qualities, shortcomings, and techniques or
strategies of main competitors. The manual includes:

 Pricing or valuation: Includes estimating, requesting and so on.

 Guarantee: Data sheets, leaflets, pamphlet, and white papers.
 Presentation of sales: Video or presentations which are made online is consistently
helpful.
 Glossary: Terms and abbreviations related with the product or service.
 Record or index: If the business manual is extended, indexing is pertinent.
 Reference material: List of reference for more item information, similar to an
organization site.

11.6.3 Essentials of an Effective Sales Manual

An intensive and very well-planned sales manual is a significant asset for the sales group's
growth and success. It is through the sales manual that business partners get a major piece of
their preparation and solid information structure. The manual should be reliable and
important to guarantee trustworthy and efficient performance.

Few important aspects to keep in mind while creating a sales manual are mentioned below-

a) A spectacular format- Nobody will peruse the whole manual. It is significant that the
necessary data is introduced and presented to the audience in an attractive and attention
 catching manner. There should be legitimate chapter by chapter list, clear headings for
each area and subsections, index file and glossary terms. Utilization of charts, tables and
representations be made to sum up the complex data.
We covered the sales cycle ventures above, and presently it is an ideal opportunity to
walk through each progression in accordance with the business, products, and sales
group. Analysing the customer interaction history is quite important. What steps were
compelling, and where did the sales did not hit the targets, all these things considered, the
number of orders taken, and revenue generated out of those. With the other sales
representatives in the sales team, it can be planned simultaneously as to what actions can
be taken and what are the things that have to be prevented during interaction with the
customers. All these key aspects of Dos and Don’ts are mentioned in the sales report. For
instance, Fred's sales group maps the six sales measure steps and formulates the moves
they make inside each stage. Similarly, they survey the most recent a year of sales
movement with respect to each territory they cover to get where they can further develop
their new sales cycle to meet their new objective. The figure given below is an example
of a process chart in a sales report, wherein the sellers and buyers actions can be noted
down in a structured format.

Sales Prospecting Connecting& Handling Closing

Researching Presenting
Process Qualifying Objectives

Research
Market, Engage Analyze
Seller’s Address
define Prospects, prospect Present Negotiate
questions
qualification Ask needs, Demonstrati and gain
Activities and
criteria, Qualifying Research on agreement
Generate concerns
questions organization
Leads

Buyer’s

Activities
b) Concise and crisp: The length of the sales manual will fluctuate based on the main
interest group and the nature and number of product choices available.
c) Keeping in mind the buzz words: Any sales representative may be new to the trendy
expressions of the business. Articulation should be made in such a way that it is basic,
simple, and easy to understand. The fundamentals and glossary terms must be made clear
if they are used in the sales manual.
d) Properly defined consumer sections: Sales personnel will frequently duplicate pieces of
the business manual and handover it to the consumers. Areas of the manual should be
appropriately distinguished.
e) Updating the manual consistently: A business sales guide, which is obsolete, is futile. A
newly updated sales document keeps the sales representative educated with regards to the
advancements inside the organization and new competitive declarations.

11.6.4 Process of Writing a Sales Manual

A sales manual is a document helping sales associates in the department for transforming
probable prospects into closed ones. Sales manuals must be working drafts and renewed
consistently to show case the current approaches and practices. It is imperative for the sales
associates to remember organizing and keeping in mind the length while making the sales
manual. The personnel should track down all crucial information quickly and also in an
effective manner.

The organization’s sales manual is the department’s methods for making the progress in the
sales work. It tells the representatives about the products a company is selling, yet in addition
“where, why, how and to whom”. So, in the event that a manager does not have one, it is an
ideal opportunity to think of one. The business is run by the sales force who is making a
direct contact. A sales manual in any business will put new and prepared sales staff in total
agreement. It shall help the sales team to adjust itself appropriately with the rest of the
organization, the managers must instruct their salesmen on the advertising objectives and
drives and furthermore motivate and empower them with the apparatuses they need to make it
happen.

To get everything rolling, the sales managers should decide how do they intend to convey the
sales manual to the sales team. It is pertinent to firstly, get coordinated prior to settling on
which parts to remember for the manual. Numerous managers believe that a format or an
outline is a decent way of finding all the essential data in one place. Without getting sorted
out and making a layout, they would probably overstuff the manual with unessential data.
Therefore, it is necessary to carve a niche for filling in the valuable data as required.

In the draft for the sales manual, one must utilize the principal subjects one needs to cover as
section headings, then, at that point, the significant focuses or steps as subheads must be
listed down. For instance, “keeping consistent sales records, importance of record-keeping,
tools for issuing, accurate sales receipts, follow-up using sales records”.

The manual must be filled with all the assembled and related material including duplicate of
products offered, datasheet, presentation, market prerequisite, records, several other things. It
is of importance to figure out which showcasing data needs refreshing or another one must be
made. Investing energy with product managers who have done the sales calls and knows the
product extremely well and getting pertinent data from them is a major step to make the sales
manual. Role plays can be done if possible, spending time with experienced salesmen to
know where they have been effective, spending time with new sales delegates and ask how
they feel, writing a first draft of all material, logically evaluating segments as they are
finished with the proper product supervisor, having a couple of sales representatives, survey
the report for culmination, reviewing the draft with product manager and other fitting
individuals, and finally writing the last draft and distributing the sales document. These
would sum up the entire process of drafting an effective sales manual.

11.6.5 Features of a Good Sales Manual

Present day businesses must attempt to foster their products and services as a critical
component of their development and achievement. Similarly, it is also significant that the
sales staff is the vehicle that moves products and services under the control of the customers.
It is proven that a sales manual improves the sales associates’ ability to perform. Therefore, a
well-formulated sales manual is a key to organization’s success. It is imperative to compose a
sales instructional booklet that will give salesmen the information, aptitude, and devices
important to takeover the market.

An exhaustive and all-around planned sales document is a significant asset for sales
associates’ success. It is through sales manual that the sales personnel get a major piece of
their preparation or training, solid data structure and reliable inputs in the manual are
absolutely necessary to guarantee an effective performance. An attractive format, proper
concise length, effective pronunciation, and properly demarcated sections and regular updates
in the manual are essentials of an effective sales manual.

11.7 ORDER BOOK

An order book is an electronic register of purchase and sell orders for all the product levels. It
is updated regularly and is considered to be a significant record containing all the details of
products offered by the company in the market. The request book assists sellers with
checking the condition of the products at any particular instance. Order books have
significantly worked on the steps at which orders are taken and in the process of being a
value for commercial purposes. The purchase and sell orders recorded in anorder book are
guided along with the cost. The book additionally shows the number of offers and offers are
at each product level. It can recognize any changes in orders on either during purchase or
selling, giving obvious directions with regards to the changes in selling pattern of a product.
The structure of an order book can fluctuate between the recorded guidelines. It typically
comprises of a few important aspects as mentioned below:

Features of an Order Book

Customers and sales personnel’s view of an order book: An order book is a market price
register. It incorporates a buyer’s view as well as the representative’s view. They are the two
most significant parties in a market.

Offer and inquire: Rather than understanding any party’s view, some order books utilize the
expressions "bid" and "ask." Buyers are the ones who "bid" for a specific number of offers at
a predefined cost, and vendors "inquire" at a particular cost for their portions. As a guideline,
the purchaser's side (bid) is on the left, and the vender's side (ask) is on the right, shaded
green and red, individually.

Costs: An order book records the value of interest of the two sides. The number in the
purchaser's or alternately the salesperson’s segments address the sum they are offering or
requesting and at what cost.

All out: The absolute sections are the total measures of the particular security sold from
various costs.

Visual exhibition: Primarily, an order book comprises of a table of numbers comprising of

costs and aggregate totals from different sides. To more likely address the connection among
purchasers and sellers, most of the request books accompany a visual presentation too. It
tends to be a kind of detailed structure comprising of all the detailed information about the
orders at all stages.

An order book is an organization’s list containing different aspects such as orders from
customers which are open, unshipped, client orders, ordinarily time-staged and esteemed at
real individual request costs. This is additionally alluded to as sales request book. This book
contains the subtleties of “sales request, the salesperson, and merchants name, sales request
number, number of the voucher, type of the voucher, request reference number, request sum
and so on”.

11.8 CASH MEMO

In case the products are sold in real cash, the seller prepares a money reminder. In case there
is an occurrence of credit sales, a receipt is already prepared. In any case, the meaning for
both remains same. A cash memo typically contains the following:

1) Name and address of purchaser

2) Name and address of buyer

3) Serial number and date

4) Customer/buyer request number

5) Description of products

6) Rates and aggregate sum

7) Discount

8) Tax subtleties

9) Total sum in words and figures.

It is not quite the same as money receipt as the latter is an affirmation of the cash received.

Cash Memo is a business document given by the seller to the buyer when cash is accepted as
a payment. At the point when a merchant sells any product for cash, he gives a cash memo
and when he buys products for cash, he gets a money update. Insights about the things,
amount, rate, and the cost are referenced in the cash memo. It functions as a proof of cash
instalment made. In straightforward words, we can say that a Cash memo is a record
expressing cash received for products sold. It is paid as a token of bill for cash sales.

The contents of Cash Memo

The contents of the cash memo are as follow:

1. Date

2. Serial Number

3. Name and address of provider

4. Name and address of purchaser

5. Unit cost of merchandise

6. Amount serial number, date of travel, method of accommodation, motivation behind visit.

7. Discount (assuming any, both for exchange and money rebate)

8. Assessment (GST or other all things considered)

9. Aggregate amount received

10. Signature of the cashier.

11.9 TOUR DIARY

A tour diary is a little book kept up with by sales representative containing the subtleties of
deals visits made by him or her during a given period. It helps the sales associate to report
about the endeavors made by him or her. It might contain the following data:

a) Names of spots visited (cities/states/country)

b) Dates on which visit is made
c) Mode of transport utilized
d) Expenses caused on movement
e) Names and details of imminent customers
f) Result of visits as far as request, any kind of feedback and so on

Check Your Progress C

1. Which of the Following Statements are True or False.
 i. The sales report is guide stating the best policy, practices, procedures, and protocols that
guide the salespersons throughout their sales efforts.
ii. The trainings provided to sales team are indispensable for the growth of the company.
iii. The manual must be a living document and it should be updated in a timely manner.
iv. The priorities of the company are set straight, and the sales team is tactfully aligned with
the objectives of its competitors.

2. Fill in the Blanks

i. The companies should provide adequate and __________to the sales personnel to support
them.
i. The key skills of negotiation, fluent communication skills and a ___________helps
the sales team to connect with the consumers.
ii. Products and demonstration of products is one of the important contents of
______________
iii. An intensive and very well-planned sales manual is a significant asset for the sales
group's __________ and __________.
iv. Sales manuals must be _____________ and renewed consistently to showcase the
current approaches and practices.
v. An _____________ is an electronic register of purchase and sell orders for all the
product levels.

11.10 LET US SUM UP

Planning a sales cycle shall help a sales group to close more prospects and convert a greater
number of leads. This will surely guarantee that the sales team furnishes each prospect with a
reliable service that is illustrative of the brand image of the company. It helps to conclude
that the sales representatives must follow these means to make and guide a business
interaction customized to the business, sales group, and clients to support changes and
develop enduring connections in the present scenario. Whenever it is planned that a sales
associate has to interact with customers, he or she has to make all supporting report formats,
one must incorporate them into a full SOP manual. The next step would be to arrange the
manual dependent on offices. For instance, they may have "sales," "activities" and
distribution" areas in the SOP manual. Each segment would then be separated further into the
center cycles of that office, by and large in the request each center interaction happens in the
general conveyance of products. In the "Distribution" segment, one could have a few center
cycles that incorporate "acquiring the order," "preparing for delivery," "transportation" and
"following up with the customers or clients." It is imperative to arrange the SOP manual with
a chapter-by-chapter list, and unmistakably list down every methodology in an intense title
header. One might even incorporate tabs for colleagues to effectively flip through the manual,
to assist them with finding appropriate SOPs in their areas of expertise. For any cycle, it is
simpler for sales associates to follow a structure or agenda. Fostering a far-reaching format
dependent on the planned interaction. On the off chance, a sales associate needs to gather
explicit data at the customer interaction step, ensuring the layout has all necessary data spread
out compactly. It is pertinent to accept the steps taken during the sales process and take
actions according to all that is listed in the SOP, particularly when they are confronting a
customer. Incorporating the plans and structures as an addendum to the sales

manual, the process would be smooth and generate huge amount of revenue for the company.

11.11 KEY WORDS

Sales Report: Sales report is the document in which sales activities within a specific time
frame are recorded. It is also called a sales document.

Most Profitable Consumers: These are the customers from whom the business gets
maximum revenue. They are the loyal customers of a business.

Progress or Call Report: This report is the record of calls made by a sales executive for
generating leads each day, week, or month.

The representative makes a note of each, and every person contacted on the company’s behalf
and makes an entry in the sales document.

Sales Work Plan Report: It is the kind of report where basic planning and outlining of
future programme are done.

Expense Report: This report contains all the information related to the expenses incurred by
him/her during a sales work.

New Business Report: The new prospects identified are listed in such a report. The new
business report consists of all the new businesses initiated during a certain time period.
Loss Sales Report: There is a possibility of losing sales during a sales process. This
document would contain all the required details of all such orders and customers lost during a
given period.

Complaints and Adjustments Report: It records all the important complaints and the
modifications done in the policies related to products and services of the organization.

Order Book: An order book is an electronic register of purchase and sell orders for all the
product levels.

11.12 ANSWERS TO CHECK YOUR PROGRESS

A. 1. i. False ii. True iii. False iv. True

2. i. Set of Data ii. Sales Funnel iii. Products iv. Brand Loyalty v. Reliable and Real Time

B.1.i. False ii. True iii. True iv. True v. False

2. i. Complaints and Adjustments Report ii. Solutions iii. Concise iv. Vision v. CRM
(Customer Relationship Management)

C.1. i. False ii. True iii. True iv. False

2. i. real time data ii. positive outlook iii. Sales Manual iv. growth and success v.
working drafts vi. order book

11.13 TERMINAL QUESTIONS

1. Define Sales Report. Discuss the various objective of making sales related reports and
documents.
2. Briefly explain about the various types of documents in the sales
3. Write notes on the following
a. Progress or Call Report
b. New Business Report
c. Loss Sales Report
4. Draw the format of Sales Work Plan Report Expense Report and explain the meaning
along with the examples.
5. Explain the salient features of a good sales report using suitable examples.
6. Define Sales Manual. What are the benefits of Sales Manual?
 7. Describe the Contents of Sales Manual.

8. Explain the Essentials of an effective Sales Manual.

9. Explain in detail the process of writing a sales manual.

10. What are the features of a good sales manual? Explain.

11. What do you mean by an Order Book? Discuss the various features of an order book.

12. Write notes on the following:

a. Cash Memo
b. Tour Diary

SOME USEFUL BOOKS

Gupta S. L., 2008, Sales and Distribution Management, Text and Cases, An Indian
Perspective, Excel Books, New Delhi. (Chapter 8, Chapter 12)

Still, R. R., Cundiff, E. W., Govoni, N. A. P., 2009, Sales Management, Decision, Strategies
and Cases, Pearson Prentice Hall, New Delhi (Chapter 19)

Sahu, P. K., 2008, Salesmanship and Sales Management, Vikas Publishing House Private
Limited, New Delhi. (Chapter 21)

Tyagi C. L., Kumar A., 2004, Sales Management, Atlantic Publishers and Distributors, New
Delhi (Chapter 19)
12.1.1 WHAT IS MEANT BY ETHICS?
Ethics refers to the field of study that guides an individual in deciding what
is good or bad, right or wrong, fair or unfair. It is believed to be a set of
principles based on morality about human conduct or behaviour across
different situations. The term ethics has been derived from the Greek word
‘ethos’ which means character, ideals or standards. Ethics not only applies
to personal lives but also are applicable to every domain of professional
and organizational lives too.

In words of Dale S. Beach, “Ethics refers to a set of moral Principles which

should play a very significant role in guiding the conduct of managers and
employees in the operation of any enterprise.” Ethics, therefore, addresses
the issue of what ought to be at the group or societal level as well as at the
personal front of an individual.

12.1.2 WHAT IS ETHICAL SELLING?

Ethics in selling or ethical selling deals with all the moral issues related to
a company’s efforts or activities that are made in the direction of
persuading or convincing customers to buy the product of the company. It
refers to a set of behavioural standards that ensure that every lead, prospect
and customer is given a treatment of respect, fairness, honesty and
integrity.
Sales Ethics ensures use of trustworthy sales practices, honest selling
techniques, sharing accurate and relevant information with customers and
showing honest concern for their needs when selling the products. In other
words, ethics in selling represents a philosophy of a company to follow
value-oriented, clean and transparent selling practices when dealing with
the customers. It also directly or indirectly persuades the salespeople to
maintain their professional integrity in every interaction with customers or
the prospects.

Clarity in defining and communicating a proper code of sales ethics will

help a business meet its ethical obligations. Implementing ethical sales
practices is considered to be good business which helps it in earning
customer faith, trust and loyalty and strengthens its goodwill.Ethical selling
is a sort of promise to the customer that he will neither be overcharged nor
will he be exploited by the seller or any of his representatives in any way.

Honesty Principles
Fairness

Accountability ETHICS IN SELLING Integrity

Moral Conscience Honour

Figure1. Elements of Ethics in selling

 business in the long run. The business can enjoy good public image if it
adopts ethical selling ways and techniques and thereby keep the customers
assured of right business. It is in the interest of business itself to follow
ethics in its practices.

2. It helps a business earn public/societal support. By being ethical and following

right selling practices, a business earns public faith and support. The societal
members are assured of justified conduct on part of the company through ethical
selling.

3. Ethical conduct is helpful in enjoying a competitive edge over other rivals in the
market. An ethical business enjoys public support and goodwill which, in turn,
helps it gain an edge over its competitors and pulls more customers towards it.

4. Ethical selling is a way to enjoy long term business revenue and profits. With
the help of support from customers and enjoying a strategic advantage in the
market, the business may have a stronger and loyal customer base sustained in the
long run. This may become the reason for a business’ long term survival in the
industry as it fosters repeat business.

5. Selling techniques that involve ethical conduct on part of salesmen is a reflection

of value oriented business philosophy and is a mark of good corporate
citizenship. This further helps the business gain society’s acceptance and
Government’s support too.

B) Benefits to the Salespersons or salesmen

1. Ethical dealings help the salespeople build a rapport with the customers which in
turn helps them in closing the deals easily.

2. Salespersons adopting ethical sales techniques can win customers’ faith and
therefore, they can take advantage of this situation in having a strong and loyal
customer base under them.

3. Ethics in selling may help the sales representatives in successful relationships

with customers that may last till long.

4. It ensures repeat business from the customers and this therefore, can benefit the
salespersons to enjoy greater commission on higher sales levels achieved.

5. Ethical conduct shown during the selling process spreads a positive word of
mouth and the salesman has a chance of having new clients added in his kitty.

C) Benefits to the Customers

1. Ethics is a cherished set of values which make the customers’ work of future
purchases easier and more convenient.

2. It instills confidence among the customers as they know about the ethical
conduct of business and therefore, they are assured of right purchase decisions.

3. Customers’ interests are protected and they enjoy pleasant experience while
making purchases from an ethical seller following ethical selling practices.

4. It creates a win-win situation for both the seller and buyer and both enjoy
2. Be Accountable: A good sales professional is the one who shows that he is and
will be responsible to solve the doubts and queries of the customers not only during
but also after the sales has been made. Moreover, he must accept his mistakes due to
which the customers faced problems.

3. Give Clear and true information: It may be easy for any salesperson to exaggerate
information and facts about products or services to close the deal conveniently. But,
this may jeopardize future sales and may break the trust of customers. Clarity of
information and facts related to the product not only makes the understanding better
but also helps the customers take right purchase decisions.

4. Be honest in giving competitors’ information: In a selling environment what one’s

competitor is doing must be known and monitored carefully. While talking good
things about the his products, the sales professional must try to highlight what sets his
products apart from others in the market and in doing so, he must be honest in
speaking about his competitors and their products. Special care must be taken to
avoid criticizing or bad-mouthing competitors. Such behaviour can be perceived as
unethical to customers. In other words belittling the competitors would not make the
company look better in the prospect’s eyes. Instead, they will see you as dishonest and
unethical.

5. Have a solution-oriented attitude: To keep the customers satisfied and happy in

future too, the sales professional must always try to show a problem solving attitude or
a solution-oriented disposition while dealing with customers who have problems. This
attitude will put the customers at ease and will assure them that their problems will be
taken care of.

6. Fulfill the promises made to the customers: Ethical selling behaviour must be based
on trust and faith. The trust is always sustained when the promises made are fulfilled
and the results are delivered. Sales professionals must try to follow till the end to make
sure that the commitments they made to the prospects or customers are met. Whether
the commitment is about the promise of more information about a product, a follow-
up call, or honoring a time that has been set for a meeting, keeping your word with the
customers is a demonstrated ethical behaviour and should be a top priority.

7. Dealing with customer objections patiently: Ethics not only relate to being right
and justified always. It also lays emphasis on being good and courteous to the
customer or the prospect. Objections on part of prospects while discussing about
the product, is an inevitable part of the selling process. However, the real art lies
in how the objections are handled without disturbing the mood and without getting
impatient with the prospect or customer in a selling situation.

There may be several other ways to depict ethical behaviour in a selling

situation. In all such situations, ethics lays down the foundation for cordial long
term relationship between both the customers and the sales representatives.

Caselet 1: Being Ethical always pays!

Raj has always been a good salesperson at Star enterprises dealing in selling of
electronics which are not of any popular brands. The products are manufactured
at the local factory and the customers are the ones who are fine with buying
electronics of local make. Sonali who just shifted to the city where Star
enterprises operate and Raj holds a sales territory, met him and enquired about
 the prices and quality of electronics sold by the firm. Raj clearly mentioned that
the products are not from any known brands and are locally manufactured. He
did not hesitate in telling the fact that the products are mediocre in performance
during his first meeting only and did not have the fear that his clear truth telling
may spoil the first impression for the products of his company. However, later
Sonali placed the order of all the electronics for her house with Raj . Not only
this, she recommended Raj’s name to many of her friends who later shifted to
the same city.

Ques1: What do you think has made Raj as a salesperson so dependable for
Sonali?

Ques2: What values are reflected in this case on part of Raj as a

salesprofessional?

12.5 ETHICAL AND LEGAL ASPECTS/ISSUES IN

SELLING
Selling is a profession that may create circumstances where, under pressure
the sales professionals may be forced to adopt unfair means, follow shortcuts to
meet targets and may compromise on values. Some unethical issues may be
illegal too and fall under the category of ethico-legal aspects of selling.
However, there is some difference between the both. While ethical issues are
based on human values and principles that define right and wrong, legal issues
are the ones which are based on legal standards set by the Government. For the
convenience of understanding, we shall be taking ethical and legal aspects
related to selling together.

Some of the most commonly seen and experienced ethical and legal issues in
selling are explained as follows:

1. Misrepresentation or hiding facts: This occurs when the sales

professional intentionally hides some important information or facts from
the customer in order to close the deal quickly. Misrepresentation of facts
can lead to wrong decision making on part of customers who may later on
repent and regret after making a purchase decision on the basis of partially
correct information or incomplete information as given by the salesman.

2. Price Discrimination: Under this, a salesperson may charge

different prices from customers for the same product. It is an issue in
which seller convinces the customer to agree upon a price which may be
different for some other customer. The final price fixed depends upon the
bargaining capabilities of buyers and sellers. In such situations where the
prices are not common and same for all, there is a lot of probability for the
salesperson to overcharge some customers.

3. Bribes: A salesperson may offer undue favours in form of bribes

or gifts to customers at the expense of company to close a big deal to his
advantage. Bribes fall under Contract Act, 1872 and Sale of Goods Act,
1930 as a legal issue related to sales of goods. Bribes are easy but unfair
ways of getting the things done in one’s favour. In selling situations, bribes
may be small or substantial, but in both the cases, it is illegal and unethical
 as well.

4. Tie-in sales: In this situation, a customer is indirectly forced to

or required to purchase another product the same seller in relation to the
first product he is purchasing from him. In other words, the seller requires
that the buyer purchases both the tying product and the tied product from
him only.

5. False promising or over promising/Exaggeration: In several selling

situations, sales professionals and companies make use of exaggerated
claims and undue promises initially to close the deals and to make selling
convenient for themselves. However, the truth is something different and
the actual product is not of the same quality or characteristics as promised
earlier leading to an unethical situation.

Use of sales puffery, hyperboles or boastful statements is an easy way to

exaggerate when promoting a product or service. Claims that vaguely
frame products or services as being the ‘best’ or ‘perfect’ can create a false
impression in the mind of customers or prospects. For example,
advertisements saying that their products are the best in the country, or
their products make a smarter you, etc. are unethical, though they cannot
be objectively declared as wrong.

6. Selling hazardous and spurious products: Sale of low quality,

duplicate, copied, fake or pirated products is both illegal and unethical in
selling. Such products may be dangerous to use and may affect the health
and well- being of the users. Imitations may also violate copyright act and
are used by the sales professionals to earn greater revenues by selling low
quality and cheap substitutes. This is one way of befooling the customers
and is unethical in conduct.

7. Delayed deliveries: Delaying deliveries of consignments not only

is wrong but also leads to bad impression of the brand or company among
customers. Delayed deliveries may spoil the total goodwill and also may
annoy the customers. Sometimes, the customer may need a product on a
specific date. If the product does not reach them by that day, the purpose of
buying the product will be lost.

8. Creating artificial scarcity of commodities: In many cases, the

seller or sales professional may present a wrong picture about the
availability of the product to make it falsely ‘rare’ or scarce in the market.
This is in other words may be understood as hoarding and is an illegal
business practice.

9. Online selling frauds: In recent scenario, online selling

transactions have become very popular and given a new picture to the
whole business world. With a lot of ease of transacting from home or office,
online purchases have made our lives very easy. However, this comes with
an inevitable set of risks and problems including frauds of money, fake
promises, misrepresentation of products and other ways of cyber law
violation.

10. Compromised Quality or Quantity: One other ethical issue experienced by

 many customers is receiving wrong quality or quantity of ordered product
as against the promised one. The problem gets worse when the items
received come with a ‘not returnable’ clause and thus, the customer gets
trapped in the situation.

11. Invasion of privacy: In the recent past, the issue of privacy

invasion has gained a lot of attention in the world of selling and marketing.
Sending unwanted and huge number of mails, messages, or calls to
customers as a way of aggressive selling and marketing is something
disturbing and has now become ethical and legal issue too. In this context,
the concept of permission marketing is becoming very significant
nowadays.

12.6 COMPLIANCE TECHNIQUES TO ENSURE

ETHICAL SELLING
In this unit, so far, we have discussed a lot of ethical issues and problems faced
by customers in today’s times. There needs to be a check on the business
practices specially selling and marketing ones that have a direct impact on
customers and prospects. Abiding by certain ethical principles, may help in the
long run and may pull customers with high degree of loyalty. Before we discuss
compliance techniques, we must understand what ethical compliance is.
Compliance refers to conformity or adherence to laws and regulations. It is a
means by which companies seek to ensure that it does not adopt any shady
practices which may tarnish its long term reputation.
Now we shall study the ways and techniques that can be adopted by sellers and
their representatives to ensure ethical ways of selling. To ensure that the system
of sale and purchase remains ethical and justified, both the customers and
sellers need to be value-oriented and careful while undertaking any such
transaction.
Some ways or means to ensure that selling environment remains ethical are
discussed below:

1. Hire Right Salespeople: At the very first stage only it is

recommended that the company hires the right kind of salespeople whose
values are in tune with the values of the company. This can be judged
during interaction with the candidates who have applied for salesperson’s
job in the company.

2. Establish a code of conduct for ethical selling: There must be a proper code
of conduct established to guide and regulate the conduct and behaviour of
sales people. With an already established code of conduct, the employees
will have a defined course of action which they will follow to depict values
in selling situations.

3. Encourage open communication to facilitate understanding of

goals and expectations: An effective leader is the one who communicates
the expectations from the subordinates with clarity so that everyone knows
what is to be done and what policy guidelines need to be followed.

4. Prepare cold calling scripts and email templates to be sent to the prospects:
This may ensure that the values are properly implemented. This may also
ensure that the sales people treat employees with ethics. It is recommended
 to create calling scripts and mail content in synchronization with the values
and ethics of the company that it seeks to get implemented.

5. Train people in the direction of Ethical selling: One very important

way to mould and change salespeople’s behaviour in the direction of
organizational ethics is to train them in the right way through right kinds of
training programs. The learning gained through such programs will be
helpful for the salespeople to understand the set of ethics that the company
wants them to follow with the customers.

6. Avoid exaggerations and unverified claims: To make sure that

customers do not feel cheated after they make transactions with the
company, it is important that at the beginning of the transaction only, the
salesperson does not make any false claims or does not establish any wrong
picture of the company’s products. Unverified claims may put the sales
professional and the company in a big problem later.

7. Create an overall culture of ethics in the organization: There is a

need to develop policies based on the company’s mission and values that
describe what is acceptable and what is not. Good ethical policies not only
list or describe appropriate and inappropriate behaviors; they also describe
the underlying principles. With such a culture of ethics prevailing through
policies, a sense of discipline shall follow in a strong way.

The summary table:

DOs and DON’Ts of Ethical Selling

The Dos The DON’Ts

Be transparent Don’t give false promises to customers
Respect customer privacy Don’t hide facts
Solve consumer problems quickly Don’t exaggerate
Be Truthful Don’t give wrong comparisons
Respect your target customers Don’t criticize competitors bluntly
In the field of selling, understanding consumer psychology holds a great deal
of importance. A sales professional therefore, needs to possess the skills of
persuading and the art of convincing prospects to believe in what they are
saying and selling. This is also necessary as the job of any salesperson depends
completely on prospects’ faith and positive attitude showing that they are
convinced to purchase a particular product or service.
Some of the most commonly used compliance strategies or techniques are
discussed below:

1. Foot-in-the-Door Technique: This technique was first understood by

Jonathan Freedman and Scott Fraser in 1966. The idea behind the strategy
was to convince the targeted person to say a ‘yes’ to a small request initially
before getting him to say ‘yes’ to a bigger request later.
The foot-in-the-door (FITD) technique is a compliance strategy that entails
persuading someone to agree to a major request by first persuading them to
agree to a small or moderate request. Making a minor request that is likely
to be accepted before making your larger request is known as the foot-in-
the-door strategy. The theory behind this method is that if you get a 'foot in
the door' by saying yes to the first request, the person will be more likely to
agree to the second. The Foot in the Door technique is a persuasion tactic
used frequently in marketing and sales. It works on the compliance and
consistency principle, which states that if someone agrees to a little request
at first, they are more likely to agree to a larger one later.
For example, a door to door salesperson may request a house hold lady to
try out a sample of a product initially and then can convince her for a longer
conversation with him to show the whole range of products he is carrying.

2. Door-in-the-Face Technique: Another consecutive request method is

the door-in-the-face strategy, which works in a reverse manner. It entails
making an irrational request that the respondent is almost certain to reject
outright in the beginning. Following that, the intended request is made with
a better deal or offer.

This persuasion technique is occasionally employed in sales discussions. A

car dealer, for example, may offer to acquire an automobile as a 'trade-in'
for a new car at a fraction of its genuine value. The consumer will decline
the offer, as anticipated by the salesman, and will later return with an offer
that he considers reasonable. Even though the second offer is less than
ideal, the customer accepts it since it appears to be acceptable in
comparison to the paltry sum provided in the first offer. One of the
explanations supporting the concept of the door-in-the-face technique is the
way in which it plays on our sense of guilt. When we decline a person’s
initial request, we are left with a sense of guilt for not accepting a person or
denying his request. When a second, more reasonable request is made, it is
sufficiently reasonable for us to fulfill, and we view it as an opportunity to
reduce the guilt that we experienced earlier. (O'Keefe and Figgé, 1999)

3. Low-Balling Technique: The low-ball technique involves making an

invitation and gaining agreement from an individual , then changing the
terms of the deal at the eleventh hour . In other words, it is a kind of
unethical tactic through which a salesperson initially tries to win the
customer’s willingness to purchase the product. However, later changes the
trade terms or the offer price by using excuses or some other vague
reasons. This unethical method of gaining agreement from a person is
usually found in sales negotiation scenarios.
For example, A car salesman may tell a prospective customer that the
worth of a specific car is $10,000. The customer agrees to shop for the car,
thinking that they need received an honest deal. However, just before they
sign the papers to finish the acquisition , the salesperson tells them that the
worth was incorrect, and he can only sell the car at $12,000. The customer
has spent an extended time within the office and does not want to start
out their car search again. Therefore, they agree to buy the car at the higher
price.

4. Norm of Reciprocity: Reciprocity can be understood as a socially

accepted etiquette of respecting others to get respect from them. It is a kind
of implied understanding to be adhered to. The norm of reciprocity works
on the belief that an action done in favour of someone shall be reciprocated
with a gesture of gratitude or thanks or in any way of appreciation in
return. There is a sense of giving back or repaying when we receive any
favour or gift from someone.
 Marketers can use this strategy by giving small favours, gifts free trials and
other benefits to customers before asking them to pay for the product. In
reciprocation, the customer may feel obliged to make the payment
immediately or may be somehow forced to purchase the product after the
gift or free trial he has received from the seller.
For example, some bed mattress companies offer free home trials of their
products before the customer is asked to pay anything. By the top of the
free trial, an individual may feel that they need personally gained from the
free trial and will repay the generosity of the corporate by purchasing the
mattress.

5. Ingratiation: Ingratiation is a compliance strategy that involves

presenting yourself in a positive way to people you wish to persuade. First
identified by social psychologist Edward E. Jones in his 1964 work,
Ingratiation: A social psychological analysis; ingratiation covers variety of
approaches to realize the favor of another party, many of which we use
without even realising (Jones, 1964).

It is often seen that others tend to like us, if we are fond of them or like
them or compliment them for their positive characteristics. When we
overlook someone’s weaknesses and highlight their positive aspects, they
Feel good and more confident. Another form of ingratiation requires
demonstrating that you yourself are likable. Prosocial behavior, exhibited
through confident body language, such as making eye contact whilst
holding a conversation, smiling and remaining positive, can help to show
that you are someone people can warm to. This technique can be used by
sales professional when he is meeting a stylish or a high profile client and
is trying to convince him about a product or a service. By being warm and
presentable to others, the chances of acceptance get increased.

6. That’s Not All: Using the ‘That’s Not All’ persuasion technique, the
sales professional can sometimes win the difficult customers who are
undecided about making a purchase decision. In this technique, initially the
sales person makes a small request and then reinforces the same by
offering additional benefits so that the total offer seems to be very
attractive.

For example, a sales representative may start a conversation by talking

about the benefits of a product followed by an act of offering additional
benefit such as special discount or some freebies with the purchase of that
product. In this case, even though the added benefit is not one that the
person would pay for separately, when it is added to the original offer, it
makes for a more persuasive argument.

Check your progress B

1. Which of the following statements are True and which are False?
i. Puffery in sales is a kind of over promise made by salesperson
ii. Online transactions are free from frauds
iii. Changing the offer price is called Ingratiation
iv. Compliance techniques involve different approaches of persuasion

2. Fill in the blanks:

i. is a social norm used as a persuasion technique.

 ii. is the other name for creating artificial scarcity of goods in
the market.

iii. Sense of guilt plays an important role in the technique of

compliance in selling.

iv. _______________ is a way of Marketing used to reduce the intensity of

invasion of privacy.

12.7 DEVELOPING ETHICAL CODE OF ETHICS

FOR SELLING
The world of sales and Marketing is prone to unethical ways and practices.
Amidst tough competition and frequently changing customer tastes, it is
difficult to have a stable revenue inflow and profits. And therefore, to make
their work easier, the sales professionals tend to follow short cuts and adopt
unethical selling approaches many-a-times. However, as already discussed,
compromising on ethics may tarnish the goodwill of the company and may
lead to damaging consequences for the business in the long run. Hence, it
becomes imperative for business to establish a strong and robust code of ethics
which can be enforced to guide the actions of the sales professionals and can
channelize their efforts in an ethical direction. Developing a code of ethics for
business helps build a culture of ethical selling.
The code of ethics may simply be a cluster of statements reflecting the way
the business functions, the way it takes decisions and treats customers,
suppliers and industry peers. For example, your code of ethics might include
statements such as:
 The business recognises that what it does is more important than what it says.
 It gives the customers and suppliers honest, accurate information.
 It makes sure that the customers' purchasing decisions are based on their
preference, not pressure.
 The business is always ready to help customers even after sale of goods.
 The business competes in the market by building its own reputation, not by
damaging the reputation of their competitors.
Developing a code of conduct for selling
Usually code of ethics is developed to monitor the working of salespeople.
Codes of conduct are designed to:
 describe desirable and undesirable selling behaviours.
 promote high standards of practice.
 reduce the risk of fair trading breaches and
 help staff make ethical decisions.

Writing a code of conduct

The business must write its code of conduct with its staff and customers in
mind, clearly setting out the purpose and structure of the document. The code
of conduct can be discussed before being getting finally drafted. It is
important to involve the employees while laying down the code statements so
that the people follow it religiously and also show accountable behaviour
towards it.

Template for a sales code of conduct document

A reasonably good code of conduct can include the following information:
 overview – outlining why has such a document been created and what it will
 techniques including Low Balling, Foot-in-the-door, Door-in-the-face,
reciprocity, ingratiation and that’s not all techniques.
 To ensure a good system of selling which makes sure that ethics is
being followed properly, an ethical code of selling is highly
recommended. It not only helps in making the selling practices ethical,
but also helps in avoiding malpractices that may spoil the relationship
of business with its customers.

12.9 Answers check your progress

A. 1 i. False ii. True iii. False iv. True v. False
2. i. loyalty and trust ii. vary iii. rapport iv. Win – win
B. 1 i. true ii. false iii. false iv. true
2. i. reciprocity ii. hoarding iii. door in the face iv. permission marketing

12.10 TERMINAL QUESTIONS

Q1. Explain with examples the application of Ethics in selling.

Q2. What is the meaning of ethical selling? Explain its features.
Q3. Discuss the importance of Ethics in selling for different parties.
Q4. Explain various ethical and legal issues involved in selling. Give suitable
examples to substantiate your answer.
Q5. Discuss different types of ethical behaviours.
Q6. What is the purpose of compliance in selling? Explain different compliance
techniques with suitable examples.
Q7. What steps can be taken to ensure ethics in selling?
Q8. Why and how would you draft a code of ethics in selling?
Q9. What are Dos and Don’ts of ethical selling?
Some useful books

1. Adams, J. S. (1963). Toward an understanding of inequity. Journal of Abnormal and Social

Psychology, 67, 422–443.
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Englewood Cliffs: Prentice-Hall.
5. Aldrich, H., & Herker, D. (1977). Boundary spanning roles and organization
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Management Review, 14(1), 20–39.
12. Ashforth, B. E., Sluss, D. M., & Harrison, S. H. (2007). Socialization in organizational
contexts. International Review of Industrial and Organizational Psychology, 22, 1–70.
13. Babin, B. J., Hair, J. F., & Boles, J. S. (2008). Publishing research in marketing journals using
structural equation modeling. Journal of Marketing Theory & Practice, 16(4), 279–285.
14. Bandura, A. (1977). Self efficacy: Toward a theory of behavioral change. Psychological
Review, 84(2), 191–215.
15. Burnett, M., Pettijohn, C., & Keith, N. (2008). A comparison of the ethical perceptions of
prospective personal selling and advertising employees. Marketing Management
Journal, 18(1), 77–83.
16. Crosby, L. A., Evans, K. R., & Cowles, D. (1990). Relationship quality in services selling: An
interpersonal influence perspective. Journal of Marketing, 54(7), 68–81.
17. Dabholkar, P. A., & Kellaris, J. J. (1992). Toward understanding marketing students’ ethical
judgment of controversial personal selling practices. Journal of Business Research, 24(4),
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20. Ferrell, O. C., Ingram, T. N., & LaForge, R. W. (2000). Initiating structure for legal and ethical
decisions in a global sales organization. Industrial Marketing Management, 29(6), 555–564.
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performance. In F. D. Schoorman & B. Schneider (Eds.), Facilitating work effectiveness.
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force training in Singapore: A comparative study. Services Marketing Quarterly, 25(3), 19–
33.
24. House, R. J. (1971). A path goal theory of leader effectiveness. Administrative Science
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25. House, R. J., & Dressler, G. (1974). The path-goal theory of leadership: Some post hoc and a
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and salesforce supervision. Journal of Marketing Research, XXX(2), 78–90.
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Right Thing (Giving Voice to Values on Business Ethics and Corporate Social Responsibility
Collection)
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UNIT 14 CAREER OPPORTUNITIES IN PERSONAL
SELLING
Structure

14.0 Objectives

14.1 Introduction

14.2 Why Do You Choose a Sales Career?

14.3 What Does a Professional Salesperson Do?

14.4 Types Of Sales Jobs Based On Industries

14.5 Changing Role of a Salesperson

14.6 Criteria for Success in a Sales Career

14.7 Measures for Making Personal Selling an Attractive Career

14.8 Let Us Sum Up

14.9 Key Words

14.10 Answers to Check Your Progress

14.11 Terminal Questions

14.0 OBJECTIVES

After studying this unit, you will be able to understand:

 analyse how a sales career can benefit you;

 discuss what does a salesperson do;
 explore what are the major industries offering a lucrative sales job;
 describe the changing role of a sales professionals;
 discuss the criteria for success in a sales career; and
 explain the measures for making personal selling an attractive career.
14.1 INTRODUCTION

David Mackenzie Olgilvy, the father of advertising, once said“We sell orelse”.What he meant was that the
ultimate purpose of business is to sell something to someone and establish exchange transaction. Without
selling the whole purpose of establishing the business remains incomplete. Selling is so prominent for
business that in spite of growing digital marketing and e–commerce, it is the effort of sales force of the
business that has an impact on virtually every other area of business. Despite new technologies, tools, and
business models, the skills and competencies of sales people will always be crucial for building
relationships, closing deals, and finding new opportunities. Selling is an honourable, challenging, and
rewarding career.
Selling is not just for sales professionals; it is a skill everyone of us needs to learn. Even if we never
actually hold a sales job, we do need to sell during a range of activities like selling an old car or selling
yourself in a job interview. The competitive world today demands good interpersonal skills and, the lack of
selling capability can put anyone at a disadvantage. The skills and knowledge gained from a selling course
can be used by a student who plans to go into virtually any field, such as law, medicine, journalism, or the
military, or by those who start their own business.
In this unit, you will learn the reasons why do people choose selling profession as a career, the types of
sales jobs, the responsibilities of a salesperson, the criteria for success in sales, whether a person is suited
for sales career or not and measures for making personal selling an attractive career.

14.2 WHY DO YOU CHOOSE A SALES CAREER?

A career in sales is worth exploring for individuals who look for a flexible, competitive and challenging
work environment, high earning potential, and an opportunity to continuously develop and adapt oneself in
skills according to the changing environment and grow their professional capabilities. The major reasons
for choosing a sales career are:

1 Earning Potential of a Sales Career: Sales is a performance-based career. The more you sell,
the more incentive you receive. The sales career is best for those who like competition and who like to
work hard to stay ahead of others. The reward for the hard work generally comes n the form of
monetary measure like periodical bonuses, prizes, trips, commissions, and various other incentives.
There are very few other fields which provide earning potential which most of the sales careers do.
The employers hire the sales professionals to earn revenue and they know very well that sales is the
ultimate purpose of their business, without it business might soon be shut. Thus, the employers are
willing to provide higher incentives to these sales professionals to keep them motivated towards their
organisation.

2 The Flexibility of a Career in Sales: Sales field is one of those fewest fields which provide
highest level of flexibility in work schedule. While the degree of flexibility depends upon the
particular type of sales job and the company, most of the sales professionals have the freedom to
manage their daily schedule as long as they meet their targets. This helps the sales people to maintain
their work – life balance.
This flexibility provides individual an opportunity to manage between household tasks and professional
assignment. He can quickly run an errand like meeting a doctor and simultaneously fix an appointment
with a client. He might also want to avoid morning – evening peak rush hours commute to office while
preferring to pick and drop kids to school. This flexible arrangement permits him to follow a comfortable
pace at work and choose a work environment that optimizes his productivity.
When a person feels a greater sense of control and ownership over his life and work, he will have better
relationships with his boss and co - workers as well as feel more motivated and less stressed out.

3 Job Security: It is a fact that the employees who are more valuable for the employer are less
likely to be terminated, laid off or replaced. However, in time of an economic downturn, if the
industry is hit hard, every employee loses value. However, the situation with sales professionals is a
little bit different in the sense that in struggling times, sales people are the last ones to be laid off as
they carry out the task of bringing in revenue with profits for the business which is the ultimate goal of
business. Effective salespeople with an ability of bringing in business and building relationships have
huge market value. So, any employer would hesitate to lay off successful salespeople till the moment
it becomes extremely difficult to run the business. There is no other department or business function
that has a greater impact on the development of the all-important cash flow than the sales department.

4 Psychological Satisfaction: Most of the people like to win and to feel as if their work makes a
difference. For a salesperson, closing a deal is a moment of delight if it brings substantial incentives. It
can be more rewarding if the deal helped the client solve a business or a personal issue or if it beats out
the competition and helps secure his job. The psychological rewards may range drastically from one
sales job to another. The excitement of victories and the fact that you are creating and securing
employment for others, makes the sales career a very attractive option.

5 Career Stepping Stone: Sales is a challenging and dynamic field to work in. It requires the sales
professionals to constantly learn new skills and brush up the old ones. There are ample opportunities in
a sales career to learn, grow and develop new skills. Modern techniques, methods and technology turn
up dynamically which need to be learnt and practiced to be able to have an edge. Thus, it shows that a
sales job provides a stepping stone for many other careers. Researchers say that a lot of business
managers, marketing and technical professionals, trainers and college professors come from a prior
field of sales and acknowledge the skills they acquire in their sales job. Thus, graduates, young
professionals, or career switchers having a dream job in mind but lacking skills like communication
and interpersonal skills, presentation and persuading skills and who could not find an entry point in
their career may try to first get into a sales job and then switch to desired field.

6 Mastering In-Demand Skills: There is a great importance of soft skills in a sales job. Soft
skills are a “combination of people skills, social skills, communication skills, character or
personality traits, attitudes, career attributes, social intelligence and emotional intelligence
quotients, among others, that enable people to navigate their environment, work well with
others, perform well, and achieve their goals.” In today’s competitive world, these skills need to be
learnt and practiced more than the hard skills. Building up these skills may be the best investment one
can make in his personality and thus, his career.
Creativity, persuasion, collaboration, adaptability, time management, conflict management, stress
management, customer service, emotional intelligence and storytelling are some of the most
important soft skills that a person in sales career can acquire very well. A sales job helps building up
and mastering skills that are applicable to many roles which may be taken up by the individual in his career
ladder.

7 Challenging Job: In a sales job, a person can test his mettle every day. They need to prove
themselves every day and in front of every customer. Each customer is an opportunity to prove
oneself. The rewards associated with each target keep the job more challenging. The person learns to
face challenges in everyday life. Selling provides immediate feedback on salesperson’s efforts. The
reactions from buyers leave no doubt of salesperson’s performance. He can use that feedback to
improve constantly. Every time he presents himself and his offering, he has a chance to sharpen his
skills.

14.3 WHAT DOES A PROFESSIONAL SALESPERSON DO?

The salesperson’s tasks and assignments can vary from job to job and organisation to organisation,
depending upon various factors like the nature of product and service that he is selling. For instance, the
tasks of a salesperson selling Amway products through multi – level marketing are similar but somewhat
different from the tasks of a salesperson selling automobiles for Maruti Suzuki.
People believe that the job of a salesperson varies from presenting and demonstrating to closing the deal
and follow up. However, in today’s marketplace, there is much more to his credit. As manager of a
territory, the salesperson has the responsibility to:

1. 1Create new customers: The first and foremost task of a salesperson is to keep increasing the
sales or replacing the customers that will be lost over time. This requires continuous prospecting
which means identifying the potential customers. Thus, in a way, it may be said that prospecting is
the most important part of sales. The salespersons require the ability to apply their judgment , for
identifying the people or organizations that have the potential to buy their products.

2. 2 Sell more to present customers: For increasing the market share, the company not only
needs to create more customers but also to sell more occasionally and in more quantity to existing
customers. Research says that creating new customer is far costlier than satisfying existing
customer. Thus, building up loyalty of customers towards own products/ services becomes very
important for the salesperson.

3. 3 Build long-term relationships with customers: Research says that selling to a new
customer is much costlier than selling to an existing one. Thus, satisfying the existing customers
become all the more essential. After sales service and regular communications with them is
necessary to build long term relations with the customers in order to sell them again and again.

4. 4 Provide solutions to customers’ problems: Latent or apparent, people have needs

whichcan be met. They have problems or issues whichcan be solved by purchasing goods or
service. This is where salespeople’s another role comes in. They look for existing or latent needs
or problems of their customers and show how the useof their products or services can satisfy needs
or solve problems.
 5. Provide service to customers: After selling, the salespeople provide a lot of other services to
their customers like grievance redressal, returning damaged products, giving free samples to be
distributed to customers, suggesting new business opportunities, and suggesting promotional
programs to help the customer to promote the firm’s products.

6. Helps customers resell products to their customers: Many times sales person’s job is to
guide and help the customers to resell the products and services to their customers. They provide
assistance to their wholesale customers to sell products to retail customers and helps retail
customers sell products to consumers. Consider a salesperson selling spices to grocery
wholesalers. For selling his product to wholesalers, he must also need to contact the grocery
retailers, take up their orders and send the orders to the wholesalers. If required, the salesperson
might also assist the customer by working at his place. A salesperson selling a vacuum cleaner
may make an arrangement for its demonstration at his customer’s (wholesaler or retailer)
workplace.

7. Thus, with the help of this salesperson, the wholesalers sell and deliver the product to the retailers.
The salesperson also develops promotional programs to help the retailer sell the firm’s products.
These programs involve supplying advertising materials, conducting store demonstrations, and
setting up product displays.

8. Help customers use products after purchase: This is especially in case of sales of
technical products. Many times, the customers need to be demonstrated how to obtain full benefit
from the product. For example, on the sale of a new software to an organisation, the technical
specialists need to provide lectures/ classes to the employees of that organisation to show them
how to run and use the software effectively.

9. Build goodwill with customers : The salesperson needs to build professional yet friendly
and personal relationships with his customers and even their influencers. A salesperson’s job also
include a continuous manifestation of integrity, trustworthiness, high ethical standards, and a
sincere interest in solving problems to each of his customers.

10. Provide company with market information: Another important task of a salesperson is to
collect market information and pass it on to the organisation. He may collect information about
latest trends and preferences of customers, their reaction, complaints, grievances and suggestions
on new launches, number of competitors in the market and their activities and new marketing
techniques and methods prevailing. This information can be collected from wholesalers, retailers
or the customers themselves. Thus, salespeople are a prominent part of information system for any
organisation.

14. 4 TYPES OF SALES JOBS BASED ON INDUSTRIES

Sales is inherent in any kind of industry or business organisation. No industry or organisation can exist
without the sales job. For nearly every industry that exists, there is a corresponding sales career, each
having its pros and cons. One may consider various factors like personal liking, education and experience
requirements, pay scale, perquisites, working conditions, working hours and many more to choose a
particular industry for sales career. For those interested in either starting a sales career or changing from
one sales industry to another, there are many choices. Following are some of the industries in which sales
takes a major role so that sales career may be lucrative, although the list is not exhaustive and definitive:

1 IT Industry Sales Careers

The salespeople in the IT industry enjoy two major benefits - a high income potential and job security.
However, a constant threat of ever changing technology also looms over them. If the salespeople in this
industry do not adapt themselves to the dynamic technological environment, these benefits may vanish
quickly. Thus, they need to commit themselves forever to learn new techniques, skills and methods.
An IT sales professional has the following major tasks to perform:
 speak to customers, either face to face or over the phone.

 gain an understanding of customers' diverse and specific business needs and apply product
knowledge to meet them.

 ensure quality of service by developing a thorough and detailed knowledge of technical

specifications and other features of employers' systems and processes, and then documenting
them.

 carry out cold-calling in order to create interest in products and services, generate new business
leads and arrange meetings.

 identify and develop new business through networking and follow-up courtesy calls.

 prepare and deliver presentations and demonstrations of software to customers.

 market and promote a portfolio of products by writing and designing sales literature and attending
industry events.

 maintain awareness and keep abreast of constantly changing software and hardware systems and
peripherals (e.g. keyboard and mouse).

 provide technical advice to customers on all aspects of the installation and use of computer
systems and networks, both before and after the sale.

 advise on software features and how can they be applied to assist in a variety of contexts such as
accounting, manufacturing or other specialist areas.

 handle hardware or software problems and faults, referring on to specialist technical colleagues
where appropriate.

2 Real Estate Agent

Real estate sales agents, also sometimes called as property dealers or agents, help their customers in
buying, selling, and renting a house, shop, land or other properties. While agents do much more than just
sell homes and other properties for and to people, essentially their job is to close deals. The rewards for
successful agents can be unlimited, however, like any other sales profession, there is no success without
hard work. A very critical combination of right personality, marketing skills, time management, knowing
how to figure out clients' needs and wants, negotiating, etc. is required to become successful in this field.

Some countries like USA require the aspirants to clear state and national level exams to get the license.
However, in India, there is no such requirement of education or clearing of exams. Sales agents may work
as an employee in a company or as an independent contractor.
Real Estate Agent’s Responsibilities:
  Appraise property values by comparing a property with similar properties that have been recently
sold to determine its competitive market price.

 Advise clients on market conditions, prices, mortgages, legal requirements, and related matters.

 Promote sales of properties through advertisements, open houses, and participation in multiple
listing services.

 Accompany buyers during visits to and inspections of property, and advise them on the suitability
and value of the property they are visiting.

 Prepare documents such as representation contracts, purchase agreements, closing statements,

deeds, and leases, coordinate property closings, overseeing the signing of documents and
disbursement of funds.

 Confer with escrow companies, lenders, home inspectors, and pest control operators to ensure that
terms and conditions of the purchase agreement are met before closing dates.

 Contact property owners and advertise services to solicit property sales listings.

 Arrange for title searches to determine whether clients have clear property titles.

 Attend conventions, seminars, and staff and association meetings to remain knowledgeable about
real estate markets.

 Advise sellers on how to make homes more appealing to potential buyers.

 Investigate clients’ financial and credit status to determine eligibility for financing.

 Develop a network of attorneys, mortgage lenders, and contractors to whom clients may be
referred.

 Inspect condition of premises and arrange for necessary maintenance or notify owners of
maintenance needs.

 Evaluate mortgage options to help clients obtain financing at the best prevailing rates and terms.

 Rent or lease properties on behalf of clients.

3 Health Care Industry Sales Careers

Health care industry provides much security as it is one of the growing industries of all. It is such a diverse
industry, that the options for growth can be tremendous. With medical technology booming, there are so
many different niches in this industry: surgical equipment, nanotechnology and durable medical equipment
to name a few. The pharmaceutical industry is another branch in this industry. An aspirant needs great
customer service skills, knowledge of industry and patient protocols, time management, and patience.
These salespeople have the major task of making cold calls to their potential clients including public and
private hospitals, doctors’ offices and medical centres.
Primary responsibilities or skills of health care industry are:

 Communication skills are quite important while dealing with patients, their family and colleagues.
 A healthcare worker should be very flexible for working hours.
 The ability to co-operate with others is an advantage in health care industry
 Strong work ethics, dealing with pressure, time management, team player are some skills which a
health care provider must possess.
 Making cold calls to their potential clients
4 Food Service Sales
The sales people in food industry are responsible for selling food and food-related items to establishments
that help people meet their need of eating food.

Food service sales person may work as a restaurant supply distributor or exclusively for food distributors.
No matter who a foodservice sales person works for, they should expect stiff competition, a lot of
networking and a job that extends beyond the normal working hours.

Primary responsibilities of a foodservice sales person are:

 Sell food, food ingredients, and food services to businesses and individuals.

 Sell food for the purpose of re-distribution and to get the food into the market.

 Sell food to restaurants, caterers, event planners, etc.

 Manage and develop new customers, while maintaining existing sales within assigned customers
and a given sales territory.

 Develop a daily/weekly call list and maintain information accuracy monthly and review daily
sales reports.

 Review monthly the best monitoring sales report with management to determine if goals and
objectives are being met.

 Coordinate sales with food service producer to ensure demand is met.

 Communicate trends/pricing issues and other unique issues as it relates to sales.

 Participate in marketing events such as seminars, trade shows, and telemarketing events.

 Coordinate shipping schedules and delivery of merchandise and services.

5 Pharmaceutical Sales
The pharmaceutical industry is poised for rapid growth, with an aging population in need of medication
and healthcare, as well as a rise in the number of drugs receiving government approval.
Successful sales representatives in the pharmaceutical industry will need great customer service
skills along with product knowledge. They will also need some basic medical knowledge, patient
protocols, and best practices, as well as knowledge of trends in the industry.

Major tasks for pharmaceutical sales persons are:

• Finding new customers by cold calling or walking into hospitals, medical centres, doctors' offices,
and HMOs.
• Meeting frequently with healthcare professionals to describe the drug's chemistry, uses, side
effects, and potential interactions.
• Following leads and target potential new customers within an assigned geographic region.
• Presenting at industry conferences, establishing networking events, and conducting workshops to
cultivate potential sales.
• Most pharmaceutical sales representatives specialize in promoting certain drug classes, such as
analgesics, antibiotics, antidepressants, or beta blockers.
• Undertaking administrative tasks like taking purchase orders, establishing new accounts,
reviewing product literature, and resolving consumer complaints.

6 Insurances Sales Agents

The sales people in insurance companies help their employers enlarge their customer base by searching for
potential customers and selling them one or more types of insurance and related services. Insurance sales
agents explain various insurance policies and help their clients choose plans that suit them. They generally
sell one or more types of insurance, such as life insurance, medical insurance, automobile insurance, stock
and property insurance, etc.

Insurance sales agents typically have the following tasks to perform:

 Making cold calls to prospective customers to solicit new business.
 Interviewing potential clients to get their relevant financial information and existing coverage.
 Introducing the prospective clients the various policies available with him.
 Analysing the clients’ existing policies and suggest additions or changes.
 Customizing the policies to suit individual needs.
 Handling policy renewals.
 Maintaining clients’ records in soft and hard form.
 Helping the clients settle their claims.

7 Loan Officer
Although it may not be a traditional sales job, loan officers are generally in the business of selling loan
products services to the clients. They are typically employed by banks, non banking financial institutions
and mortgage companies to evaluate, authorize and recommend loan applications for various kinds of
customers – businesses or individuals. Loan officers may have various kinds of specialization. They may
be commercial loan officers (who specialize in making loans available to businesses), consumer loan
officers (specializing in making loans available to individuals) or mortgage loan officers (who specialize in
loans used to buy real estate, property and buildings). Within these three fields, the loan officers may
specialize as Mortgage loan officers or Loan underwriters.

Generally Loan officers have the following tasks to perform:

 Making calls to prospective clients to generate new business.

 Arranging meetings with the applicants to gather and verify their personal information and
financial information such as credit score and income level.

 Introducing various types of loans available, according to the needs of the clients and handling
their queries.

 Guiding the customer through the application process .

 Analyse the loan applications according to the terms and conditions of the employer and
government norms.

 Approve loan applications or refer them to management for a decision.

8 Sales Engineers
Sales engineers are those sales persons who sell complex scientific and technological products or services
to businesses. These salespersons must have in depth knowledge and experience of how to handle the
complex products. They must be aware of all the products’ parts and functions and must understand the
scientific processes that make these products work. They often work under stressful conditions because
their income and job security depend on successfully completing sales. Some may work long and irregular
hours to meet sales goals and client needs. Still, this can be a rewarding career for those who want to work
in a fast-growing field.

Sales engineers typically do the following:

 Prepare and deliver technical presentations that explain products or services to customers and
prospective customers.

 Arrange delivery engineers to assess equipment needs and system requirements.

 Collaborate with sales teams to understand customer requirements and provide sales support.

 Secure and renew the orders of the customers.

 Help clients solve problems with installed equipment and ask for technical requirements for
modifications.

 Help the marketing team in market research.

 Plan and give suggestions to production team to modify products to meet customer needs.

 Recommend improved materials or machinery to customers, showing how changes will lower
costs or increase production.

9 Securities, Commodities, and Financial Services Sales Agent

These salespeople are responsible for selling a variety of financial services, like advising on or selling
mutual funds, various types of insurances, retirement plans, investments or tax saving. Working in the
fast-paced industry of the financial markets can be attractive to those who thrive in high-pressure situations
and want to work in a competitive field. These sales agents are responsible for selling securities and other
financial products to customers, providing financial and purchasing recommendations, and conducting
trading activities.
They contact potential clients to explain their services, which may include: foreign trade job, retailing job,
textile, fashion, industry, the handling of checking accounts, loans, certificates of deposit, individual
retirement accounts, credit cards, and estate and retirement planning.
Financial services sales agent have the following primary responsibilities:

 Sell financial services to businesses and individuals.

 Recommend certain services such as life insurance, retirement income, investments, and long-term
care insurance.

 Build relationships with clients and communities.

 Provide solutions for short and long-term financial goals.

 Help clients achieve financial security.

 Determine clients' financial needs and areas of improvement.

 Determine security risks and advise customers regarding expected fluctuations.

  Develop prospects from current commercial customers, referral leads, and sales and trade
meetings.

 Prepare forms or agreements.

 Sell trusts, investments, and check processing services.

 Make presentations on financial services to groups in order to attract new clients.

 Use financial, tax, economics and accounting skills to review a client's personal data and
recommend investment strategies that are appropriate to the client's goals.

 Advise a client on whether to buy certain types of stocks, bonds and mutual funds.

 Evaluate financial reporting systems, accounting and collection procedures, and investment
activities, and make recommendations for changes to procedures, operating systems, budgets, and
other financial control functions.

 Determine whether loans must be obtained to meet cash requirements or whether surplus cash can
be invested.

 Solicit business, authorize loans, and direct the investment of funds, always adhering to Federal
and State laws and regulations.

14.5 CHANGING ROLE OF SALES PEOPLE

Earlier, the major task of sales people was to communicate all the detail of their products/ services and
their comparison with the substitutes to make the prospects understand how their product may benefit the
customers and solve their problems. Those were the times, salespeople used to persuade people into buying
their offerings and many times into wrong purchases just to hit their targets.
However, in the recent years, technological innovations have changed the marketplace. Now the product
information is available on internet in abundance. In fact, some website have the sole purpose of providing
information and making comparisons easy. Does this mean that the sales jobs are redundant and the
salespeople will be out of the ark? And, now should the companies not hold their salespeople accountable
for the revenue quota?
More experts believe that selling is so prominent for business that in spite of growing digital marketing and
e – commerce, it is the effort of sales force of the business that has an impact on virtually every other area
of business. Despite new technologies, tools, and business models, the skills and competencies of sales
people will always be crucial for building relationships, closing deals, and finding new opportunities.
However, the role of a salesperson has been changing ever since the inception of digital marketing and e –
commerce. The information technology has not only brought threats but also opportunities for the
salespeople. The world of selling now requires a completely different mentality and skill set. It is no longer
about persuading people into buying something they do not need, do not want, or can not afford. It is
about being there as a trusted advisor to help guide them through the buying process. The salesperson’s
role is evolving to be that of a consultant. The role of the business-to-business salesperson is changing
from “product information provider” to “business success coach”, from “always be closing” approach to an
“always be helping” approach, from a “traveling figure” to a real “relationship manager”. It is about being
there as a trusted advisor to help guide them through the buying process.
Armed with wireless technology, sales people can provide prospects and customers with increased service,
in less time, from anywhere around the globe. Sales people will travel less and use online audio and video
conferencing more. Thus, the technological advances which enabled the buyers to research suppliers and
find products, also helped to make the sales force more productive.
For example, prospective customers may have instant access via the Internet to information about a
company’s products and those of its competitors. They will still however, need a salesperson’s personal
contact and expertise to help them diagnose their specific needs and decide on the best solution to satisfy
them. Therefore the role of sales person has been changing. The domain of sales activities has been
expanding. The sales persons must be equipped with the required skills to manage there changing scenario
of sales job.

14.6 CRITERIA FOR SUCCESS IN PERSONAL SELLING

To become successful in a sales career, like any other career, there are some basic demands which need to
be fulfilled. These are:

1 Love of selling: One of the most important conditions to become a successful salesperson is the
love of selling. If the salesperson loves his job, finds it challenging and motivating, and if he believes
that the product or service that he is selling will solve the customers’ problems and will provide them
great value, he is surely in the right field of career. The love of their work keeps the people devoting
more and more to their job and it is one of the characteristics of successful people.

2 Willingness to work hard, work smart, then work some more: A pre- requisite to enter a
sales career is the willingness to work hard and smart. A positive attitude towards work is really
needed. A career in personal selling commonly requires 10 – 12 hours work days including many
Saturdays and Sundays. It is their love of work and their need for success that motivate the top sellers
to bear with hectic schedules. This also requires persistence which comes the ability to go beyond
normal limits.
3 Have an optimistic outlook: A positive outlook towards work, organisation, customers and in
general, towards life, provide the strength to survive and excel in tough times. A sales job provides a
number of such benefits which other jobs may provide. However, they too face many challenges and
threats like hectic schedule and dynamic environment. Yet, their optimistic attitude helps them face
periodic problems. They persistently find ways to improve their performance even in tough times. In
no other field is the necessity of having a positive attitude more prominent than in sales. Successful
salespeople are enthusiastic, confident, and constantly think of themselves as successful.

4 Be knowledgeable: For a salesperson knowledge means information about the customers, their
demography, tastes and lifestyle, their existing and latent needs, the various substitutes available in the
market, the competitors- their characteristics and market share, latest marketing techniques being used
in the market, etc. Knowledge also includes awareness about the latest techniques, skills and ideas
used by other salespeople while dealing with customers. To become successful, salespeople need to
focus on having thorough knowledge in all aspects of their business. This boosts their confidence and
helps in building a professional image as well as trust with customers.
As goods and services become more complex, companies place greater emphasis on training their
salespeople and on salespeople training themselves. It is no wonder that corporate recruiters seek above-
average individuals to fill their entry-level sales positions.
5 Be ruthless about time: One of the greatest mantra to become successful in career and life is to
kill procrastination. Any kind of talent in a person is wasted if he/ she is not able to utilise it because
of procrastination.

Successful sales people do not use the word someday. They realize that what you do today determines your
tomorrows. Thus, tomorrow is today! They always think of today as a new opportunity in their lives. They
are do-it-now people. They pick up the phone, mail a letter, or make a sales call today to be successful
tomorrow.

6 ask questions and then listen to uncover customer needs: People nowadays do not like the kind
of salespeople who speak a lot and do not let them speak about their problems. One of the most
important skills that salespeople need to learn is to listen carefully to what his customer is telling him.
They need to ask questions then pay attention as the prospects answers the questions to uncover their
needs.

7 Serve your customer: Customers never like to be sold. They need the customers to solve their
problems. They like to believe that the salesperson care for them and will always give them the best
advice about the products and services which can solve their problem. Customer service is not just a
series of steps to be completed. It is an attitude and a way of looking at customers that enables the
salespeople to provide the best level of service that they and their organization are capable of
providing. The power of customer service cannot be underestimated when it comes to making sales
and keeping customers. Many customers are willing to pay a higher price or go without certain
features if they know that they have access to excellent customer service people who will be
responsive and effective whenever they are needed. Providing service to customers also help the
salespeople to gain respect from their customers.

8 Be physically and mentally prepared: Even in the times of e – commerce and internet
marketing, still many of the sales job are of primarily of travelling in nature. Salespeople need to meet
their clients on a regular basis in order to give presentation and fix their problems. Regular travelling
and hectic schedule demands the salesperson to keep himself physically prepared. With physical
preparedness comes mental strength. Exercise elevates the mood by increasing energy and
simultaneously secreting adrenaline-like substances in the body that act as stimulants and
antidepressants, according to the medical community. This increased feeling of well-being transmits
itself to the body and mind. Knowing that you are in shape to deal with today and tomorrow is an
important component of being successful.

14.7 MEASURES FOR MAKING PERSONAL SELLING AN

ATTRACTIVE CAREER
Despite providing some exceptional benefits, the sales profession has not gained much importance
amongst job seekers. Thus, there is a need to make this profession attractive and measures need to be taken
by the academicians as well as the employers who need people for their sales department.

Suggestive Measures to be taken by Academicians:

Classroom/training exercises: Academicians need to be aware that the perception about the career in
marketing in general and sales in particular starts building up during their graduation and post graduation
when they make a choice among various fields of subjects. Marketing professors and trainers need to
incorporate classroom/training exercises, role plays, and other experiential methods to eliminate the
negative perceptions wherever possible and reinforced the positive perceptions. Students from different
backgrounds are likely to be different and the classroom instruction or the training program needs to be
adjusted to the characteristics of each group of students.

enlightening the students about sales career: the students may be assigned the task of interviewing a
sales person. Those who have family members in sales, they can present their experience/feelings about the
profession to the class. Inviting sales persons or managers as guest speakers in the class will also help
students develop correct perception of the profession.

Developing the skill set: Among the skills set for sales people, sales presentation skill is very important.
Apart from oral communication, the students must be provided the opportunity to develop listening,
persuasion and negotiating skills. Development of these skills should be woven into the fabric of business
curriculum since these skills are useful to all managers not just the sales professionals. Educators and
trainers have to stress repeatedly the positive aspects of presentation and communication skills. Sales
careers are primarily communication careers with business skills becoming the substance used in the
transactions. Educators should create measurable standards to assess students’ progress.

Suggestive Measures to be Taken by Employers

Training: Companies need to provide adequate training to the new comers about their organisation, their
products and services, as well as competitors. They also need to provide refresher training to existing sales
force for making them acquainted with the new techniques and methods of selling arising in the dynamic
market.

Adequate perquisites: Sales people are the representatives of the organisation to the world. They carry
the flag of the brand in front of the customers. The level of their motivation will reflect in their relationship
with the customers. Companies need to continuously provide adequate perks to their sales team to attract
and retain talent. They need to make the job of sales motivating for the sales force.

Guidance to Universities: Human resource and sales management need to focus upon the skills needed in
the sales profession. They need to pass it on to universities, colleges and training institutes so that, with
this information, they can adjust their curricula to ensure that students and sales trainees get the proper
training that their profession requires.

Check your progress

1. What are the responsibilities of a professional sales person?

2. Who are sales engineer?
3. What are the measures to make personal selling an attractive career?
4. What are the major reasons for choosing a Sales Career?
5. True or False
i. Employees who are more valuable for the employer are likely to be terminated or
replaced. (True/False)
ii. There is a great importance of soft skills in a sales job. (True/False)
iii. The role of a salesperson has been changing ever since the inceptions of digital
marketing and e-commerce. (True/False)
iv. Among the skills set for sales people, sales presentation skill is not very
important. (True/False)
14.8 LET US SUM UP

Selling is not just for sales professionals; it is a skill every one of us needs to learn. Even if we never
actually hold a sales job, we do need to sell during a range of activities in professional as well as personal
lives.
A career in sales is worth exploring because of the benefits like earning potential of a sales career, the
flexibility of a career in sales, job security, psychological satisfaction, career stepping stone, and mastering
in-demand skills.
The salesperson’s tasks and assignments can vary from job to job and organisation to organisation,
depending upon various factors like the nature of product and service that he is selling. As manager of a
territory, the salesperson has the responsibility to create new customers, sell more to present customers,
build long-term relationships with customers, provide solutions to customers’ problems, provide service to
customers, helps customers resell products to their customers, help customers use products after purchase,
build goodwill with customers, and provide company with market information
Sales is inherent in any kind of industry or business organisation. No industry or organisation can exist
without the sales job. Some of the industries in which sales takes a major role so that sales career is
lucrative are Information Technology, real estate, pharmaceutical, health care, food, and financial services.
The role of a salesperson has been changing ever since the inception of digital marketing and e –
commerce. The information technology has not only brought threats but also opportunities for the
salespeople. It is no longer about persuading people into buying something they do not need, do not want,
or can not afford. It’s about being there as a trusted advisor to help guide them through the buying process.
The salesperson’s role is evolving to be that of a consultant. Armed with wireless technology, salespeople
can provide prospects and customers with increased service, in less time, from anywhere around the globe.
Salespeople will travel less and use online audio and video conferencing more.

14.9 KEYWORDS

Digital marketing – It is a type of marketing in which the marketers use internet to promote their products
and services on mobiles, computers, laptops and other digital media and platforms.

E – commerce - E-commerce (electronic commerce) is the buying and selling of goods and services, or
the transmitting of funds or data, over an electronic network, primarily the internet. These transactions are
business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.

14.10 Answers to check your progress

5.i. False ii. True iii. True iv. False

14.11 Terminal Questions

1. Discuss why a college graduate should choose Sales as a starting point of his/ her professional career.
2. What are the primary and secondary responsibilities of a Sales professional?
3. Discuss the changing role of a sales professional in light of increasing digital marketing.
4. Which industries offer lucrative sales career? What are the responsibilities of a sales person in these
industries?
5. Suggest the measures that may be adopted by education providers as well as employers to make a sales
career attractive for job seekers?