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Sales Promotion Strategies Explained

The document discusses sales promotion, advertising, and personal selling as key components of marketing strategies. It defines sales promotion as short-term initiatives aimed at stimulating demand and outlines various strategies and tools for consumer, dealer, and sales force promotions. Additionally, it emphasizes the importance of advertising as a dominant promotional element, detailing its characteristics, objectives, and decision-making processes.

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0% found this document useful (0 votes)
11 views21 pages

Sales Promotion Strategies Explained

The document discusses sales promotion, advertising, and personal selling as key components of marketing strategies. It defines sales promotion as short-term initiatives aimed at stimulating demand and outlines various strategies and tools for consumer, dealer, and sales force promotions. Additionally, it emphasizes the importance of advertising as a dominant promotional element, detailing its characteristics, objectives, and decision-making processes.

Uploaded by

Anu Priya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

UNIT – IV

SALES PROMOTION, ADVERTISING & PERSONAL SELLING

Sales Promotion – Meaning


Sales promotion is a part of the promotional mix where the business uses many
short-term customer-oriented strategies to stimulate the demand for its product by
making it look more attractive and/or worthy.
Sales Promotion Definition
Sales promotion is a marketing strategy where the product is promoted using
short-term attractive initiatives to stimulate its demand and increase its sales.
This strategy is usually brought to use in the following cases –
• to introduce new products,
• sell out existing inventories,
• attract more customers, and
• to lift sales temporarily.
American Marketing Association defines sales promotion as –
Media and non media marketing pressure applied for a predetermined, limited period
of time in order to stimulate trial, increase consumer demand, or improve product
availability.
Purpose of sales promotion
1. The basic purpose of promotion is to disseminate information to the potential
customers.
2. Sellers use incentive-type promotions to attract new customers, to reward loyal
customers and to increase the repurchase rates of occasional users.
3. To encourage the customers to try a new product.
4. Sales promotions yield faster responses in sales than advertising.
5. Sales promotion is considered as a special selling effort to accelerate sales.
6. Brand switchers are primarily looking for low price, good value and premiums. Sales
promotions are likely to turn them into loyal brand users.

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7. It helps to defeat competitors’ promotional activities.
Objectives / Importance of sales promotion:
i. It improves the performance of middlemen and acts as a supplement to advertising
and personal selling.
ii. It motivates sales force to give desire emphasis on new accounts, latent accounts, new
products and new territories.
iii. It increases sales and makes sales of slow moving products faster and stabilize
fluctuating sales pattern.
iv. It attracts channel members to participate in manufacturer promotion effort.
v. Motivating the dealers to buy high volumes of products and push more of the brands
that are on promotion.
vi. Supporting and supplementing the advertising and personal selling efforts.
vii. Making consumers to switch brands in favour of firm.
viii. To overcome the seasonal fluctuation of products.
ix. Inducing retailers to promote the brand by local advertising and POP display.
x. Sales promotions motivate the salesmen to sell more and to sell the full line of
products.
xi. To reduce the perception of risk associated with the purchase of a product.
Sales Promotion Strategies
Sales promotion strategies can be divided into three broad types. These are –
• Pull Strategy – The pull strategy attempts to get the customers to ‘pull’ the
products from the company. It involves making use of marketing
communication and initiatives like seasonal discounts, financial schemes, etc.
• Push Strategy – The push strategy attempts to push the product away from the
company to the customers. It involves convincing the intermediary channels to
push the product from the distribution channels to the final consumers using
promotional and personal selling efforts. This strategy involves making use of
tactics developed especially for resellers, merchants, dealers, distributors, and
agents.

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• Hybrid Strategy – A hybrid sales promotion strategy makes use of both the pull
and push strategy to sell the product with the least resistance possible. It
involves attracting the customers using special coupons and also providing
incentives to the merchants to sell the brand’s products.
Types of sales promotion
Sales promotion can be divided as follows:
1. Consumers sales promotion
2. Dealers promotion and
3. Sales force promotion.
1. Consumers Sales Promotion:
Sales promotion aimed at consumers is called ‘consumers sales promotion’. It
aims at stimulating consumers. The main consumer’s promotion tools include samples,
coupons, demonstration, contests, cash refund offer, premium, etc.
i. Samples:
Samples are defined as offers to consumers of a small amount of a product for
trial. Free samples are given to consumers to generate their interest in the product.
Samples help consumers variety and the quality of the product. Samples are delivered
at the doors of consumers verity the quality of the product. They are also sent by mail
or given to customers in the retail store itself. Sometimes, samples are attached to
another product.
Though sampling is effective, producing numerous samples of a product is quite
expensive. Moreover, distributing samples to customers also involves expenditure.
Samples is not justified in case of- (a) well established product (b) a product that is not
superior in some way to competing products (c) a product with a slow turnover (d) a
product with a margin of profit, or (e) a highly fragile, perishable or bulky product.
ii. Coupons:
A coupon is a certificate that fetches buyers a saving when they purchase a
specified product. Coupons are generally issued along with the product. Or a cash
refund. Coupons are designed- (a) to introduce a new product (b) to promote the sale of

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an established product, (c) to sell a product in large sizes (d) to stimulate customers to
switch brands; and (e) to encourage repeat sales.
Coupons are used for consumer’s convenience goods. They may be distributed
door to door, by mail or they may be inserting in package. Sometimes, coupons may be
part of magazine or newspaper advertisement.
iii. Demonstration:
Demonstration is required when products are complex and of a technical nature.
Customers are educated as to how to make proper use of the product. Demonstration of
products induces customers to buy. Demonstrations are provided free of cost.
iv. Contests:
Contests are the promotion events that give consumers the chance to win
something such as cash, trips or other goods. Contests are conducted to attract new
customers. They introduce new product by asking the product to state the reasons for
the purchase of the product.
The buyer purchases the product and submits the evidence of purchase with
entry form for contest. Entry forms are duly filled by the buyers. A panel of judges
selects the best buyers and finally they are given prizes.
v. Cash Refund Offer:
Cash refund offers are rebates allowed from the price of the product. It is an offer
to refund part of the purchase price of a product to consumers who send a proof of
purchase to the manufacturer. Moreover, if the purchaser is not satisfied with the
product, the whole price or part of it will be refunded. Cash refunded offer is stated on
the package.
vi. Premium:
Premium refers to goods offered either free or at low cost as an incentive to buy a
product. A premium may be inside the package, outside it or received through mail.
The reusable package itself serves as a premium. Premium is generally offered for
consumers as good as such as shop, toothpaste, etc. Premium may be of several kinds—

55
direct premium, reusable container, free in mail premium, a self-liquidating premium,
trading stamps, etc.
Direct premium can be inside the pack or outside it. A reusable container can be
reused after the product is reused. Free in mail premium means a premium item will be
sent by mail to consumers who present proof of purchase to the manufacture.
A self-liquidating premium is the extra quantity offered at the normal price.
Trading stamps are given by the seller to consumers. There are redeemable at the stamp
redemption centers.
vii. Price off Offer:
Goods are sold at reduced prices during slump season. Reduction in prices
stimulates sale of goods.
viii. Consumers Sweepstakes:
A sweepstakes calls for consumers to submit their names for a draw. Names of
consumers are included in a list of prize winning contest. The lots are draw and the
winners get prizes.
ix. Buy Back Allowances:
Allowance are granted to buyers on the basis of their previous purchase. In other
words, buy back allowances are given for new purchases, based on the quantity of
goods bought previously.
2. Dealer Sales Promotion (Trade Promotion):
Dealer sales promotion or trade promotion is employed when products are sold
through the retailers or wholesalers. Trade promotion can persuade retailers or
wholesalers to carry a brand, allocate shelf space, promote it in advertising and push it
to consumers. Dealer sales promotion tools include buying allowance, merchandise
allowance, price deals, premium, cooperative advertising, sales contests, point
purchase, etc.
i. Buying Allowance- Buying allowance is granted to those dealers who purchase in
stipulated period of item. It is very much useful in introducing new products to

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consumers. It motivates dealers to buying allowance, merchandise allowance, price
deals, premium, cooperative advertising, sales contest, point of purchase, etc.
ii. Merchandise Allowance- Manufacturer may offer an allowance in return for the
retailer’s agreement to feature the manufactures product in some way. For example, an
advertisement allowance compensates them for using special displays.
iii. Price Deals- Price deals relate to the quantity of purchase. In addition to regular
discounts, dealers are allowed special discount for a specified quantity of purchase.
Thus, special discount is over and above regular discount given to dealers.
iv. Push Money or Premium- Premium is a product usually offered free or at less than
its usual price. Premium encourages resellers to buy a certain quantity. Manufactures
may also offer push money. It is cash or gifts given to dealers to push a particular
manufacture’s goods.
v. Cooperative Advertising- Dealers are given an allowance to advertise the
manufacturer’s product. Dealers claim such allowance by producing to the
manufactures the proof of advertisement.
vi. Dealers’ Sales Contests- A sales contest is a contest for dealers for motivating them
to increase their sales performers. They may be in the form of holiday trips, cash prizes
or other gifts. Some companies award points for performance to achievers.
vii. Point of Purchase- Point of purchase display as a salesman. It calls the attention of
the customers to the product with the hope of initiating buying action. This device is
known by several names such as dealer aids, dealer displays, merchandising and point
of sales materials.
3. Sales Force Promotion:
Sales force promotion aims at the sales force. It stimulates them to work hard.
The tools for sales force promotion include:
(i) Bonus to sales force
(ii) Sales force contest and
(iii) Salesmen meeting and conferences.

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(i) Bonus- The manufacturers sets a sales force attains the target, bonus is given to
them. So, bonus scheme encourages salesmen to reach sales target.
(ii) Sales Force Contest- Sales contests are conducted in order to step up the selling
efforts of sales force. Prizes are given to salesmen who win in such contests by effecting
maximum sales.
(iii) Salesmen’s Meet and Conferences- Meetings are conducted for salesmen in order
to broaden their knowledge and fine tune their skill. Meetings and conference certainly
quip salesmen with the latest developments in the industry, etc.
Sales promotion, thus, stimulates quick movement of goods along the channel of
distribution.
ADVERTISING
Advertising is a dominant element of market promotion. Many times, the entire
promotional efforts are replaced by advertising alone. Major portion of promotion
budget is consumed by advertising alone.
Advertising is so powerful and popular that it is taken as equal to marketing.
Mass media are used intensively to advertise various products. Marketing without
advertising seems to be impossible. Advertising works like a magic stick to actualize
marketing goals.
Definitions:
“Advertising consists of all activities involved in presenting to a group a non-
personal, oral or visual, openly sponsored identified message regarding a product,
service, or idea. The message, called an advertisement, is disseminated through one or
more media and is paid for by the identified sponsor”-William Stanton.S
“Advertising is any paid form of non-personal presentation and promotion of
goods, services, or ideas by an identified sponsor.”- Philip Kotler.

58
Characteristics/ Features of Advertising:
1. Tool for Market Promotion:
There are various tools used for market communication, such as advertising,
sales promotion, personal selling, and publicity. Advertising is a powerful, expensive,
and popular element of promotion mix.
2. Non-personal:
Advertising is a type of non-personal or mass communication with the target
audience. A large number of people are addressed at time. It is called as non-personal
salesmanship.
3. Paid Form:
Advertising is not free of costs. Advertiser, called as sponsor, has to spend
money for preparing message, buying media, and monitoring advertising efforts. It is
the costliest option of market promotion. Company has to prepare its advertising
budget to appropriate advertising costs.
4. Wide Applicability:
Advertising is a popular and widely used means for communicating with the
target market. It is not used only for business and profession, but is widely used by
museums, charitable trusts, government agencies, educational institutions, and others
to inform and attract various target publics.
5. Varied Objectives:
Advertising is aimed at achieving various objectives. It is targeted to increase
sales, create and improve brand image, face competition, build relations with publics, or
to educate people.
6. Forms of Advertising:
Advertising message can be expressed in written, oral, audible, or visual forms.
Mostly, message is expressed in a joint form, such as oral-visual, audio-visual, etc.
7. Use of Media:
Advertiser can use any of the several advertising media to convey the message.
Widely used media are print media (newspapers, magazines, pamphlets, booklets,

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letters, etc.), outdoor media (hoardings, sign boards, wall-printing, vehicle, banners,
etc.), audio-visual media (radio, television, film, Internet, etc.), or any other to address
the target audience.
8. Advertising as an Art:
Today’s advertising task is much complicated. Message creation and
presentation require a good deal of knowledge, creativity, skills, and experience. So,
advertising can be said as an art. It is an artful activity.
9. Element of Truth:
It is difficult to say that advertising message always reveals the truth. In many
cases, exaggerated facts are advertised. However, due to certain legal provisions, the
element of truth can be fairly assured. But, there is no guarantee that the claim made in
advertisement is completely true. Most advertisements are erotic, materialistic,
misleading, and producer-centered.
10. One-way Communication:
Advertising involves the one-way communication. Message moves from
company to customers, from sponsor to audience. Message from consumers to marketer
is not possible. Marketer cannot know how far the advertisement has influenced the
audience.
Key Decisions in Advertising:
Advertising is one of – but popular and powerful – tools of market promotion. It
involves a several decisions.
Some experts explain advertising decisions and activities in form of six ‘M’s as
under:
1. The first ‘M’ stands for Mission – Advertising Objectives.
2. The second ‘M stands for Money – Advertising Budget.
3. The third ‘M’ stands for Message – Creating Advertising Message and Copy.
4. The forth ‘M’ stand for Monitoring – Managing (organising) of Advertising Efforts.
5. The fifth ‘M’ stands for Media – Advertising Media Selection and Media Scheduling.

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6. The sixth ‘M’ stands for Measurement – Measuring and Evaluating Advertising
Effectiveness (MEAE).
Advertising Objectives:
1. To Inform Buyers:
This objective includes informing customers regarding product’s availability,
price, features, qualities, services, and performance. Besides, it also includes informing
them about changes made in the existing product and introduction of new products.
Company also highlights its location, achievements, policies, and performance through
advertising.

2. To Persuade or Convince Buyers:


Company uses advertisement to persuade or convince the buyers about superior
advantages offered by its product. Company communicates competitive advantages the
product offers to induce customers buy it. Comparative advertising is used to prove the
additional benefits of product at a given price.
3. To Remind Buyers:
Marketer uses advertising to remind the buyers regarding existence of company,
products, maintenance of quality, superior services, and chasing customer-orientation.
Mostly, the existing firms aim their advertising for this objective.
Here, the purpose is to inform that the company is still in existence and serving
customers in a better way. Due to huge information bombarded by a number of

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companies, customers are more likely to forget name of company and/or products and
services it offers.
4. To Face Competition:
Advertising is treated as the most powerful weapon to fight with competitors
effectively. Advertising enables the firm to respond the competitors strongly. It helps
the firm to distinguish its total offerings from competitors.
In brief, the firm can face competition, can prevent the entry of competitors, or
can remove competitors away from the market. In competitive marketing environment,
the firm cannot survive without an effective advertisement.
5. To Achieve Sales Targets:
Increase sales volume is one of the major advertising objectives. A company can
advertise its products in various media to attract customers situated in different parts of
the world. National and international marketing is the result of advertising. Even, non-
users can be converted into users and usage rate can be increased. Thus, company can
achieve its sales objectives by advertisement.
6. To Build and Improve Brand Image:
Advertising is used for brand recognition and acceptance. A company can
distinguish its brand by magnifying major benefits the product offers. Advertisement
attracts customers toward the brand; they try it and accept it over time. In the same
way, bad image related to brand can be changed by systematic presentation of facts and
scientific evidences, and removing misunderstanding.
7. To Help or Educate People:
Advertising is not always used only for company’s benefits. It is meant for
helping customers to make the right choice of product. It educates people about
availability of new products, its features and qualities, price, services, and other related
aspects. Such information is instrumental for purchasing suitable products. Thus, it
guides customers to choose the most appropriate product.

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8. To Build Company Image and Reputation:
A company opts for advertisement to build prestige and reputation in the
market. Most of the companies, though they are satisfied with the volume of sales, go
for advertising to acquire fame in the market. Many companies advertise its policies,
activities, and achievements to make a permanent place in the mind of people.
9. To Assist Sales Force and Middlemen:
Advertising is an aid to middlemen and salesmen. Advertising also popularizes
the name of dealers. Likewise, advertising provides necessary information to the
buyers. Middlemen and salesmen are not required to do the same. It eases the task of
sellers. In the same way, advertising encourages sales force.
10. Other Objectives:
There are certain minor objectives of advertising, such as:
i. To promote new products.
ii. To build long-term relations.
iii. To remove misunderstanding.
iv. To expand of market.
v. To gain confidence of buyers.
vi. To request customers to compromise with unavoidable circumstances.
vii. To seek apology of the buyers for any undesirable events, etc.
TYPES OF ADVERTISING
1) Online Advertising
Online advertisings or digital advertisings as a form in which the message is
conveyed via the internet. For every website ads are a major source of
revenue. Advertising online has become very popular in the last decade. Online
advertising has become so effective that a particular ad can be targeted to a specific
person of specific age of a specific location on a specific time. In terms
of pricing advertising online is very cheap compared to all other forms of advertising.

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2. SMS advertising
SMS marketing is the major source of mobile advertising. Users are informed
about the product or service. This was when the internet was not available on mobile
phones. Once mobile phones got access to internet all internet advertising flowed to
mobile and experts suggest that mobile advertising will be the only major
advertising strategy for almost every company in near future.
[Link] Ads
Television was the most popular form of advertising. Most popular events where
the top attractions for advertisers to advertise about their products. Ads of almost all
products are shown on television. Although it is costly, Television Ads are till date one
of the best type of advertising and have the most fantastic reach for a large audience.
4. Ads in Theatres
The advertisements in movie theatres before all the movies start or during the
intimation are called movie ads. These are one of the costliest forms of advertising since
people cannot skip it change the channel or move away. Many of the companies have
started opting for movie ads since it ensures that the entire message reaches the
audience and unlike online advertising, the audience cannot interfere till the
advertisement is over. Movie ads are different from placement ads.
5. Product Placement
Product placement is called covert advertising wherein a product is quietly
embedded in the entertainment media. Most of the times there is no mention of the
product although the audience sees the product. Movies are the major places where
product placement is done. They could be a few TV shows where product placement
has been used but the effectiveness is observed more in movies than TV shows.
6. Radio
Radio advertisements are the ones that are broadcast it through radio waves and
heard on radios all over the place. These mostly consist of audible advertisements.
While some consider this to be an ineffective form of advertising there are still many
followers listen to the radio every morning.

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Advertisement for almost every product can be found on the radio. Every single feature
and benefit of the product have to be explained on the radio, unlike other sources where
the customer can see the product for inside.
[Link]
Printing is the slowly decreasing form of advertising. There were days before the
evolution of television when printing was a major source of advertising and considered
to be one of the most effective media. But since the explosion of television usage, print
advertisements have taken a backseat. The main disadvantage of print advertising is the
shelf life of the ads is short . However, because its reach is solid, Print advertising is one
of the most expensive and most effective types of advertising.
A) Magazine advertising
These are also known as periodical advertisements in which a weekly fortnightly
or monthly magazine are used for advertising. Ads are printed in the corners or on the
entire page of the magazine and sometimes even an extra page might be inserted
simply for advertising. Ads are categorized and segregated according to the magazine
category.
B) Brochures or handouts
Brochures are specific advertising materials used to promote a particular product
usually given at a point of sale are handed out at different locations. Brochure
advertisings do not use any base like magazine advertising and are independent.
C) Newspaper
Newspapers display a huge number of ads in them, right from matrimonial
services to job hunt, to the notifications and circulars from the Governments.
Newspapers were the extremely popular form of advertising in the early 20th century
and to some extent it still is.
8) Outdoor
Outdoor adv. consists of displaying large posters banners or hoardings with the
advertisement. These are displayed on the side of the road, on the glass of large
buildings, or on specifically targeted places that have huge inflow from the public.

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9) Global
Google advertising is more of a strategy that the type of advertising but some
have classified these as a separate type of advertising. In Global Advertising, a single
Ad runs throughout all the countries where the product is present, irrespective of the
audience and their language.
10) Outdoor Blank Space Advertising
It is a newer form of advertising which ensures a large reach of audience.
Occupying the empty spaces for advertisements is known as space advertising.
Examples include the spaces of metros, buses, cabs, flight seats & movie theatre seats
(where advertising is done on the removable seat covers) etc. Since a huge number of
people use these facilities and they have a long shelf life, they have proved very
effective.
11) Online E-mailers
It is classified as internet advertising E-mailers have gained a separate category
owing to the fact of personalization. The emails sent from companies have a
personalized message including a personalized greeting makes E-mailers more effective
than most of the forms of advertising.
Advertising and Publicity
Difference and Comparison

Basis Advertising Publicity


Meaning Advertising is a sponsored Publicity is a free activity
promotion done with the done for circulating
objective of selling the information or news.
product.
Sub-part of Promotion mix Public relations
Nature Impersonal and general Both personal and
impersonal
Control Company Third party

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Target Audience Prospective customers or Public in general
buyers
Initiative Initiated by the company Initiated by the media
Cost Involved Involves advertising Involves no or very less
expenses expenditure on
arrangements
Impact Increase in sales volume Brings out negative or
positive aspect of a product
or brand
Benefit Builds brand image Creates goodwill and
develops trust
Audience's Perception Mere sales promotion Source of genuine
information
Duration or Longevity Runs repetitively Featured only once
Creativity Creative ways are used to Creativity is used to create
draft and deliver the a buzz or news on media
message
Credibility Less Comparatively high
Sponsorship Sponsored Not sponsored
Follow Up Results can be measured in Difficult to measure the
terms of sales volume result in numbers

ADVERTISING AGENCY
Advertising agencies take all the efforts for selling the product of the clients.
They have a group of people expert in their particular fields, thus helping the
companies or organizations to reach their target customer in an easy and simple way.
The first Advertising Agency was William Taylor in 1786 followed by James
“Jem” White in 1800 in London and Reynell & Son in 1812.

67
Role of Advertising Agencies
• Creating an advertise on the basis of information gathered about product
• Doing research on the company and the product and reactions of the customers.
• Planning for type of media to be used, when and where to be used, and for how
much time to be used.
• Taking the feedbacks from the clients as well as the customers and then deciding
the further line of action.
Types of Advertising Agencies.
1. Full service Agencies
▪ Large size agencies.
▪ Deals with all stages of advertisement.
▪ Different expert people for different departments.
▪ Starts work from gathering data and analyzing and ends on payment of
bills to the media people.
2. Interactive Agencies
▪ Modernized modes of communication are used.
▪ Uses online advertisements, sending personal messages on mobile
phones, etc.
▪ The ads produced are very interactive, having very new concepts, and
very innovative.
3. Creative Boutiques
▪ Very creative and innovative ads.
▪ No other function is performed other than creating actual ads.
▪ Small sized agencies with their own copywriters, directors, and creative
people.
4. Media Buying Agencies
▪ Buys place for advertise and sells it to the advertisers.
▪ Sells time in which advertisement will be placed.
▪ Schedules slots at different television channels and radio stations.

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▪ Finally supervises or checks whether the ad has been telecasted at opted
time and place or not.
5. In-House Agencies
▪ As good as the full service agencies.
▪ Big organization prefers these type of agencies which are in built and
work only for them.
▪ These agencies work as per the requirements of the organizations.
PERSONAL SELLING
Meaning:
Personal selling is an act of convincing the prospects to buy a given product or
service. It is the most effective and costly promotional method. It is effective because
there is face to face conversation between the buyer and seller and seller can change its
promotional techniques according to the needs of situation. It is basically the science
and art of understanding human desires and showing the ways through which these
desires could be fulfilled.
Definition:
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”.
Features of Personal Selling:
The main features of personal selling are:
i. It is a face to face communication between buyer and seller.
ii. It is a two way communication.
iii. It is an oral communication.
iv. It persuades the customers instead of pressurizing him.
v. It provides immediate feedback.
vi. It develops a deep personal relationship apart from the selling relationship with the
buyers and customers.

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Personal Selling Process:
1. Prospecting and evaluating:
The effort to develop a list of potential customers is known as prospecting. Sales
people can find potential buyers, names in company records, customer information
requests from advertisements, telephone and trade association directories, current and
previous customers, friends, and newspapers. Prospective buyers predetermined, by
evaluating
➢ their potential interest in the sales person’s products and
➢ their purchase power.
2. Preparing:
Before approaching the potential buyer, the sales person should know as much
as possible about the person or company.
3. Approach and presentation:
During the approach, which constitutes the actual beginning of the
communication process, the sales person explains to the potential customer the reason
for the sales, possibly mentions how the potential buyer’s name was obtained, and
gives a preliminary explanation of what he or she is offering. The sales presentation is a
detailed effort to bring the buyer’s needs together with the product or service the sales
person represents.
4. Overcoming objections:
The primary value of personal selling lies in the sales person’s ability to receive
and deal with potential customers’ objections to purchasing the product. In a sales
presentation many objections can be dealt with immediately. These may take more
time, but still may be overcome.
5. Closing the sale:
Many sales people lose sales simply because they never asked the buyer to buy.
At several times in a presentation the sales person may to gauge how near the buyer is
to closing.

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6. Follow up:
To maintain customer satisfaction, the sales person should follow up after a sale
to be certain that the product is delivered properly and the customer is satisfied with
the result.
Objectives of Personal Selling:
The major objectives of salesmanship are as follows:
(i) Attracting the Prospective Customers:
The first and foremost objective of a salesperson is to attract the attention of
people who might be interested to buy the product he is selling.
(ii) Educating the Prospective Customers:
The salesman provides information about the features, price and uses of the
product to the people. He handles their queries and removes their doubts about the
product. He educates them as to how their needs could be satisfied by using the
product.
(iii) Creating Desire to Buy:
The salesman creates a desire among the prospective customers to buy the
product to satisfy specific needs.
(iv) Concluding Sales:
The ultimate objective of personal selling is to win the confidence of customers
and make them buy the product. Creation of customers is the index of effectiveness of
any salesperson.
(v) Getting Repeat Orders:
A good salesperson aims to create permanent customers by helping them satisfy
their needs and providing them product support services, if required. He tries for
repeat orders from the customers.
Qualities of good sales personnel
1. Impressive personality – A salesman should have a good appearance. He should
have good build and be well dressed. As soon as a salesman comes into contact with a
potential customers, the latter will be impressed by the salesman’s pleasing personality.

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2. Sound health – A salesman has to work hard. He is to travel a lot. He should possess
sound health.
3. Knowledge of the product and the company – A salesman should have full
knowledge of the product and the company he is representing. He should be able to
explain each and every aspect of the product i.e. its qualities, how to use it, what
precautions to be taken, etc. He should be able to explain the business and service
record of the company. He should also have knowledge of products of rival companies.
So that he can put across the superiority of his own products.
4. Mental qualities – A good salesman should possess certain mental qualities like
imagination, initiative, self-confidence, sharp memory, alertness etc. He should be able
to understand the needs and preference of customer.
5. Integrity of character – A good salesman should possess the qualities of honesty and
integrity. He is to gain the confidence of the customers. He should be able to
understand their needs and guide them as how to satisfy those needs. His employer too
should have faith in him. A salesman should be loyal both to the employer and to the
consumer.
6. Good behaviour – A salesman should be co-operative and courteous. Good
behaviour enables one to win the confidence of the customers. He should not feel
irritated if the buyer puts up many questions even if the questions are irrelevant. It is
also not necessary that the person he is trying to convince buys the products. A
salesman has to remain courteous in every case.
7. Ability to persuade – A salesman should be good in conversation so that he can
engage the person he is attending in conversation. He should be able to convince him
and create the desire in his mind to possess the commodity.
8. Flexibility of approach – He should interact with customers with a flexible approach,
i.e., try to persuade different types of customers with different reasons.

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