Sales Territory – The Concept and Purpose - E-Learning System

Sales Territory and Sales Territory and PromotionPromotion

Sales Force ManagementSales Force ManagementChapter 4Chapter 4

Sales Territory Sales Territory ––The Concept and Purpose The Concept and Purpose

"A sales territory is a grouping of customers "A sales territory is a grouping of customers and prospects assigned to an individual sales and prospects assigned to an individual sales person.person.““The focus is on "group of customers" rather The focus is on "group of customers" rather than "a confined geographic areathan "a confined geographic area““Pump manufacturers appoint different sales Pump manufacturers appoint different sales persons to promote their products among persons to promote their products among industrial users and farmers, even in the same industrial users and farmers, even in the same geographic area. geographic area.

The Purpose The Purpose

Sales territories serve the following purposes: Sales territories serve the following purposes: Provide better market coverage Provide better market coverage Result in economy and economy of effort.Result in economy and economy of effort.Assist objective performance evaluation.Assist objective performance evaluation.Improve morale and motivation.Improve morale and motivation.Generate synergism.Generate synergism.

Market Coverage Market Coverage Mere establishment of territories does not serve the Mere establishment of territories does not serve the purpose. purpose. These are to be set up intelligently and sales persons These are to be set up intelligently and sales persons be properly assigned. be properly assigned. The design of territory must satisfy the following :The design of territory must satisfy the following :

Economical and convenient to reach each and every Economical and convenient to reach each and every prospect.prospect.Reasonable distribution of work load among salesmen.Reasonable distribution of work load among salesmen.Provide minimum travelling time and maximum servicing Provide minimum travelling time and maximum servicing time.time.Establish good rapport with customers to solve their Establish good rapport with customers to solve their problem rather than mere selling problem rather than mere selling

Economy and Effort Economy and Effort

Good design of territory and appropriate Good design of territory and appropriate assignment of sales persons results in the assignment of sales persons results in the following:following:

Economy of effort.Economy of effort.Economy of expenditure.Economy of expenditure.Higher sales volume.Higher sales volume.Better profits.Better profits.

This increases customer satisfaction and better This increases customer satisfaction and better profit.profit.

Objective Evaluation Objective Evaluation of Sales Performance of Sales Performance

Well designed territory and assignment of Well designed territory and assignment of salesmen establish parity between authority salesmen establish parity between authority and responsibility. and responsibility. This will also increase accountability. This will also increase accountability. All these leads to objective assessment of All these leads to objective assessment of salesmen performance.salesmen performance.

Morale and Motivation Morale and Motivation

Well designed sales territory increases sense of Well designed sales territory increases sense of belongingness and spirit of competition. belongingness and spirit of competition. Salesmen consider their territory an opportunity to Salesmen consider their territory an opportunity to prove his worth. prove his worth. His initiative, innovations and efforts will, not only His initiative, innovations and efforts will, not only result in monetary benefit but also, increases his fame result in monetary benefit but also, increases his fame through recognition and acknowledgement by top through recognition and acknowledgement by top management. management. Obviously these will go a long way to improve Obviously these will go a long way to improve morale and motivation.morale and motivation.

Synergism Synergism Proper design of territory will ensure Proper design of territory will ensure synergism due to the following:synergism due to the following:

Close coClose co--ordination between various efforts like ordination between various efforts like advertisement, personal selling and promotional advertisement, personal selling and promotional activities.activities.Close coClose co--operation between various functionaries operation between various functionaries in the organisation and in particular with salesmen in the organisation and in particular with salesmen and dealers.and dealers.

CoCo--operation, cooperation, co--ordination and effective ordination and effective control assist synergism.control assist synergism.

Sales Territory Sales Territory --Design CriteriaDesign CriteriaDesign of sales territory takes into account following Design of sales territory takes into account following aspects: aspects:

Strengths and weaknesses of firm.Strengths and weaknesses of firm.Opportunities and threats of market.Opportunities and threats of market.Marketing managerial resources to improve competitive Marketing managerial resources to improve competitive position.position.Comprehensive sales plans which covers all territories and Comprehensive sales plans which covers all territories and all products/ services. all products/ services. Strengths and weaknesses of firm.Strengths and weaknesses of firm.Opportunities and threats of market.Opportunities and threats of market.Marketing managerial resources to improve competitive Marketing managerial resources to improve competitive position.position.Comprehensive sales plans covering all territories and all Comprehensive sales plans covering all territories and all products/ services. products/ services.

Sales Territory Sales Territory ––Design ProcessDesign Process

Important steps involved in designing sales territory Important steps involved in designing sales territory are:are:

Control Units:Control Units: Identification of basic control unit.Identification of basic control unit.Sales Potential:Sales Potential: Determine sales potential in each control Determine sales potential in each control unit.unit.Sales Territory (Tentative):Sales Territory (Tentative): Fix tentative sales territory Fix tentative sales territory consisting of a certain number of control units.consisting of a certain number of control units.Sales Territory (Final):Sales Territory (Final): Fine tuning of sale territories for the Fine tuning of sale territories for the purpose of equity and equal work loads.purpose of equity and equal work loads.

Control Units Control Units

The basic geographic unit which is small and The basic geographic unit which is small and easily identifiable, similar to "panchayat" or easily identifiable, similar to "panchayat" or "ward" in local administration. The advantages "ward" in local administration. The advantages of identifying control units are:of identifying control units are:

When big areas are counted, smaller areas of lesser When big areas are counted, smaller areas of lesser potential are ignored. potential are ignored. Small markets are as important as big ones, as Small markets are as important as big ones, as "drops of water make the ocean.""drops of water make the ocean."These units remaining stable are easy to identify These units remaining stable are easy to identify and manage.and manage.

Sales Potential Sales Potential

Having identified the control unit, the next step is to Having identified the control unit, the next step is to estimate sales potential in such control unit. estimate sales potential in such control unit. Specification be made in regards to all the prospects Specification be made in regards to all the prospects in terms of their characteristics like age, sex, income in terms of their characteristics like age, sex, income group, occupation etc. group, occupation etc. Such precise description assist salesman to locate and Such precise description assist salesman to locate and effect sales. effect sales. Vague description like "all male office goers buy our Vague description like "all male office goers buy our product" must be avoided.product" must be avoided.

Sales Territory (Tentative)Sales Territory (Tentative)

Tentative sales territory is carved out by Tentative sales territory is carved out by combining contiguous control units, so that combining contiguous control units, so that total total ““sales potentialsales potential”” in each territory is in each territory is approximately equal.approximately equal.

Size: Size: Size depends on the following parameters Size depends on the following parameters like number of territories, sales force size, and total like number of territories, sales force size, and total sales volume of entire firm etc.sales volume of entire firm etc.Shape: Shape: Shape of territory influence, distance of Shape of territory influence, distance of travel and ease of approach.travel and ease of approach.

Territory ShapesTerritory Shapes

CircleCircle WedgeWedge Clover LeafClover Leaf

Sales Territory (Final)Sales Territory (Final)Improvement of Improvement of ““tentative sales territory" tentative sales territory" becomes necessary because of the following becomes necessary because of the following facts:facts:

Territories of nearly equal potential, needs Territories of nearly equal potential, needs different selling efforts.different selling efforts.Depending on the nature of territory and the Depending on the nature of territory and the customers, sales expenses will be different in customers, sales expenses will be different in territories having similar market potentials.territories having similar market potentials.Sales efforts, expenses and effectiveness depends Sales efforts, expenses and effectiveness depends on personality, experience, expertise and on personality, experience, expertise and salesmanship of the salesmen.salesmanship of the salesmen.

Fine Tuning of TerritoriesFine Tuning of TerritoriesFine tuning of tentative sales territory involves the Fine tuning of tentative sales territory involves the following activities in order to determine the work load following activities in order to determine the work load more effectively:more effectively:

Determine the number, location and size of customers and Determine the number, location and size of customers and prospects in each tentative territory.prospects in each tentative territory.Estimate time required for each sales call.Estimate time required for each sales call.Determine travel time between the calls.Determine travel time between the calls.PrePre--fix call frequencies.fix call frequencies.Calculate the number of calls possible within a given period.Calculate the number of calls possible within a given period.Adjust number of calls possible for a given class of customers Adjust number of calls possible for a given class of customers Make final adjustment based on experience of sales personnel Make final adjustment based on experience of sales personnel in such area.in such area.

Assigning Sales Personnel Assigning Sales Personnel To TerritoriesTo Territories

Objective: Assign each sales person to the particular Objective: Assign each sales person to the particular territory where his or her relative contribution to profit is territory where his or her relative contribution to profit is the highest. the highest. Criteria: vary according to organisationCriteria: vary according to organisation

Fixed Assignment Fixed Assignment -- salesmen selected and assigned to different salesmen selected and assigned to different territories are not disturbed from their assigned territories. territories are not disturbed from their assigned territories. Free Assignment Free Assignment –– any salesman can do assignment to any any salesman can do assignment to any territory. territory. Composite Assignment Composite Assignment -- sales territories are designed in such a sales territories are designed in such a way, that some territories are built to suit around individual way, that some territories are built to suit around individual sales persons for fixed assignment and another set to suit sales persons for fixed assignment and another set to suit ability level of individuals.ability level of individuals.

Assignment of Sales Personnel to Assignment of Sales Personnel to Territories of Equal Potential Territories of Equal Potential

TerritoryTerritory SalesSalesPotentialPotential

SalesSalesPersonPerson

AbilityAbilityIndexIndex

SalesSalesForecastForecast

ProfitProfitForecastForecast30% of Sales30% of Sales

II Rs 2.5 lakhsRs 2.5 lakhs AA 1.01.0 Rs. 2.5 LRs. 2.5 L Rs. 0.75 LRs. 0.75 L

IIII Rs 2.5 lakhsRs 2.5 lakhs BB 0.80.8 Rs. 2.0 LRs. 2.0 L Rs. 0.75 LRs. 0.75 L

IIIIII Rs 2.5 lakhsRs 2.5 lakhs CC 0.70.7 Rs.1.75 LRs.1.75 L Rs.0.525 LRs.0.525 L

TotalTotal Rs.7.5 lakhsRs.7.5 lakhs Rs.6.25 LRs.6.25 L Rs.1.875 LRs.1.875 L

Assignment to territories of Assignment to territories of Potential Proportional to Abilities Potential Proportional to Abilities

TerritoryTerritory SalesSalesPotentialPotential

SalesSalesPersonPerson

IIII Rs 2.4 lakhsRs 2.4 lakhs BB 0.80.8 Rs.1.92 LRs.1.92 L Rs.0.576 LRs.0.576 L

IIIIII Rs 2.1 lakhsRs 2.1 lakhs CC 0.70.7 Rs.1.47 LRs.1.47 L Rs.0.431 LRs.0.431 L

TotalTotal Rs.7.5 lakhsRs.7.5 lakhs Rs.6.39 LRs.6.39 L Rs.1.907 LRs.1.907 L

Assignment of Sales Personnel to Assignment of Sales Personnel to Territories with Different Sales PotentialTerritories with Different Sales PotentialTerritoryTerritory SalesSales

PotentialPotentialSalesSalesPersonPerson

IIII Rs 1.5 lakhsRs 1.5 lakhs BB 0.80.8 Rs. 1.2 LRs. 1.2 L Rs. 0.36 LRs. 0.36 L

IIIIII Rs 1.0 lakhsRs 1.0 lakhs CC 0.70.7 Rs. 0.7 LRs. 0.7 L Rs. 0.21 LRs. 0.21 L

TotalTotal Rs.7.5 lakhsRs.7.5 lakhs Rs. 6.9 LRs. 6.9 L Rs. 2.07 LRs. 2.07 L

Optimum Assignment Optimum Assignment The optimum territorial assignment is reached whenThe optimum territorial assignment is reached whenincremental sales produced per rupee of sales incremental sales produced per rupee of sales expenditure are equal in all territories. expenditure are equal in all territories. Hence do the following:Hence do the following:

Fix upper and lower level of sales potential in each Fix upper and lower level of sales potential in each territory.territory.Do not increase size of sales potential beyond "point of Do not increase size of sales potential beyond "point of feasibility". This is the point beyond which incremental feasibility". This is the point beyond which incremental expenses exceed incremental profit.expenses exceed incremental profit.It is not realistic to assume individual ability index remain It is not realistic to assume individual ability index remain fixed. As coverage difficulty increases, this index goes fixed. As coverage difficulty increases, this index goes down.down.Sales persons have different degrees of effectiveness in Sales persons have different degrees of effectiveness in different territories.different territories.

Routing and Scheduling Routing and Scheduling of Sales Personnel of Sales Personnel

Objectives: Objectives: To maximise sales by minimising wastage of time by sales To maximise sales by minimising wastage of time by sales personnel.personnel.To establish and maintain line of communication. To establish and maintain line of communication. To know the whereabouts of sales person.To know the whereabouts of sales person.To improve sales coverage.To improve sales coverage.To reduce nonTo reduce non--selling time.selling time.To avoid back tracking.To avoid back tracking.To improve size of average sales order.To improve size of average sales order.To improve profit.To improve profit.

Routing Plan Routing Plan Preparation of routing plan needs following Preparation of routing plan needs following information:information:

Numbers and locations of customers, Numbers and locations of customers, Means and methods of transports, Means and methods of transports, The desired call rates, The desired call rates, Detailed maps showing important towns and cities, Detailed maps showing important towns and cities, Connecting routes like air, road, water ways and Connecting routes like air, road, water ways and The border of territories and other major landmarks. The border of territories and other major landmarks.

Based on these, routing plans are made. Based on these, routing plans are made. Normally one uses different route, each time of visit Normally one uses different route, each time of visit of territory to cover more customers and prospects.of territory to cover more customers and prospects.

Call Scheduling Call Scheduling Call scheduling is more difficult than route planning. Call scheduling is more difficult than route planning. Based on desired call frequency rate for each Based on desired call frequency rate for each customer on the route, call schedule is easily made as customer on the route, call schedule is easily made as part of routing plan. part of routing plan. Customers and prospects are segregated based on Customers and prospects are segregated based on desired call frequency rate. desired call frequency rate. Depending on number and location of customers and Depending on number and location of customers and prospects, schedule the call along the planned route prospects, schedule the call along the planned route with these locations. with these locations. It is impossible to set up fixed routing and scheduling It is impossible to set up fixed routing and scheduling plans.plans.

Company's Role Company's Role Absence of information such as waiting time for Absence of information such as waiting time for bus/train/air, disruptions and insistence of certain bus/train/air, disruptions and insistence of certain customers/prospects' to get prior appointment. customers/prospects' to get prior appointment. To get over these difficulties, some firms allow "cautions To get over these difficulties, some firms allow "cautions time" or "slack" to compensate such unforeseen time" or "slack" to compensate such unforeseen contingencies. contingencies. Most firms find it difficult to draw up detailed plans. In Most firms find it difficult to draw up detailed plans. In particular gas companies of petroleum/oil/diesel often particular gas companies of petroleum/oil/diesel often prepare such detailed plans.prepare such detailed plans.Wholesale/retailers of groceries/drug/hardware etc. can Wholesale/retailers of groceries/drug/hardware etc. can afford to draw less detailed schedule and routing plans.afford to draw less detailed schedule and routing plans.

Routing, Scheduling and Control Routing, Scheduling and Control

These plans assist sales managers to exercise These plans assist sales managers to exercise better control of sale forces. better control of sale forces. This also forms an integral part of the overall This also forms an integral part of the overall design of sales territories and assignment of design of sales territories and assignment of sales personnel. sales personnel. These plans be continuously reviewed to make These plans be continuously reviewed to make them more effective and realistic. them more effective and realistic. Surprise checks and rewards to adhere to Surprise checks and rewards to adhere to plans, improve their control. plans, improve their control.

Sales Promotion Sales Promotion -- The ConceptThe Concept

The sales promotion consists of three broad activities:The sales promotion consists of three broad activities:Personal selling.Personal selling.Advertisement.Advertisement.Supplementary selling activities.Supplementary selling activities.

Advertisement is considered only as a part of sales Advertisement is considered only as a part of sales promotion and hence advertisement is subordinated to promotion and hence advertisement is subordinated to sales promotion. sales promotion. Sales promotion is that component of the marketing Sales promotion is that component of the marketing mix that increases the capacity and desire of sales mix that increases the capacity and desire of sales people, distributors and dealers to sell a company's people, distributors and dealers to sell a company's product and make consumers product and make consumers eager eager to buy it. to buy it.

Sales Promotion Sales Promotion -- Nature Nature Sales promotion is a continuous process.Sales promotion is a continuous process.It reinforces the marketing mix including It reinforces the marketing mix including advertisement. advertisement. Sales promotion ultimately increases the eagerness of Sales promotion ultimately increases the eagerness of customers to buy the product.customers to buy the product.It must always be treated as a separate function, no It must always be treated as a separate function, no matter now interrelated and connected to advertising matter now interrelated and connected to advertising it becomes. it becomes. Sales Promotion Manager's responsibilities are to do Sales Promotion Manager's responsibilities are to do the thinking to negotiate the marketing programme, the thinking to negotiate the marketing programme, which Sales Manager does not know how to dowhich Sales Manager does not know how to do..

Sales Promotion Sales Promotion -- Objective Objective

Sales promotion has three basic purposesSales promotion has three basic purposesCommunicate with consumers on marketing information.Communicate with consumers on marketing information.Persuades and convince buyers to buy the product.Persuades and convince buyers to buy the product.Act as powerful tools of competition for attaining and Act as powerful tools of competition for attaining and sustaining competitive advantage.sustaining competitive advantage.

It is essentially a persuasive communication, in a It is essentially a persuasive communication, in a form of nonform of non--price competition. price competition. It must create and stimulate demand and capture It must create and stimulate demand and capture demand from rivals and maintain demand for your demand from rivals and maintain demand for your product against keen competition. product against keen competition.

Scope of Sales PromotionScope of Sales Promotion

Personal selling. Personal selling. Advertisement. Advertisement. POP displays. POP displays. Exhibitions.Exhibitions.Demonstrations.Demonstrations.Premium services & Premium services & gifts. gifts.

Use of coupons.Use of coupons.Rebates.Rebates.Dealer/Distributor Dealer/Distributor Incentive.Incentive.Contests.Contests.Direct marketing.Direct marketing.Awards.Awards.

Principles Of Sales Promotions Principles Of Sales Promotions 1.1. Promotion should add value to the Promotion should add value to the

products/services.products/services.2.2. Promotion be branded and make them exclusive.Promotion be branded and make them exclusive.3.3. Focus of promotion must be the future sales for Focus of promotion must be the future sales for

longlong--term basis.term basis.4.4. Look for opportunities of repeat sales.Look for opportunities of repeat sales.5.5. Give promotion a theme to help reinforce Give promotion a theme to help reinforce

advertisement.advertisement.6.6. Promotion efforts must be "targetPromotion efforts must be "target--specific."specific."7.7. Promotion efforts must be specific and stated in Promotion efforts must be specific and stated in

quantifiable terms. quantifiable terms.

Principles Of Sales PromotionsPrinciples Of Sales Promotions8.8. Support your best (frequent) customers with Support your best (frequent) customers with

rewards.rewards.9.9. Do not miss crossDo not miss cross--promotional opportunities.promotional opportunities.10.10. Establish personal rapport with customers and Establish personal rapport with customers and

promotional steps must reinforce the same.promotional steps must reinforce the same.11.11. Presentation must be of "top class" nature, even if it Presentation must be of "top class" nature, even if it

costs extra money.costs extra money.12.12. Promotion steps must be rewarding Promotion steps must be rewarding for for sales staff.sales staff.13.13. Make promotion interesting, and easy to attract Make promotion interesting, and easy to attract

customers.customers.14.14. Make promotional activities with fun' and frolic.Make promotional activities with fun' and frolic.15.15. Test each of the promotional steps before launchingTest each of the promotional steps before launching..

Sales Promotion Sales Promotion Strategy And StructureStrategy And Structure

sales promotion strategy consists of following steps:sales promotion strategy consists of following steps:Planning.Planning.Design (Production).Design (Production).Execution.Execution.

Since strategy and structure are interrelated, great Since strategy and structure are interrelated, great care must be given to develop a plan which improves care must be given to develop a plan which improves integration, interpersonal relations and cointegration, interpersonal relations and co--ordination ordination between various functional departments like R&D, between various functional departments like R&D, engineering and others.engineering and others.

Market Research Market Research Market Research should ensure following:Market Research should ensure following:

Depend on hard Depend on hard facts facts and not on "hunches."and not on "hunches."Do not depend too much on inconclusive research Do not depend too much on inconclusive research studies/surveys. studies/surveys. DO not base on small samples, as "little knowledge is DO not base on small samples, as "little knowledge is dangerous."dangerous."Questionnaire must be clear, relevant and adequate.Questionnaire must be clear, relevant and adequate.Ensure sample size is adequate and sample represents Ensure sample size is adequate and sample represents faithfully the target group.faithfully the target group.Make the analysis statistically sound and correct. Make the analysis statistically sound and correct. Ensure the "Report" includes all relevant aspects.Ensure the "Report" includes all relevant aspects.Ensure "Agency" commissioned to undertake the study has Ensure "Agency" commissioned to undertake the study has no "axe to grind."no "axe to grind."Research should find out what customer wants to buy and Research should find out what customer wants to buy and sell it to him, instead "sell what we have produced."sell it to him, instead "sell what we have produced."

CoCo--ordination of Sales Promotion ordination of Sales Promotion and Advertisement and Advertisement

This is the execution part of This is the execution part of ‘‘sales promotionsales promotion’’..Following methods are used for improving coFollowing methods are used for improving co--ordination between the two:ordination between the two:

Combine both these functions and entrust the responsibility Combine both these functions and entrust the responsibility to a single individual like "Director, Advertising & Sales to a single individual like "Director, Advertising & Sales Promotion."Promotion."Establish "sales promotion section" in each division under a Establish "sales promotion section" in each division under a manager. Once the programme is ready, Advertisement manager. Once the programme is ready, Advertisement Department pass on relevant materials to unit sales Department pass on relevant materials to unit sales promotion managers, who carry on the programme with the promotion managers, who carry on the programme with the Divisional Manager.Divisional Manager.Sales promotion must be coSales promotion must be co--ordinated with personal ordinated with personal selling. In order to do so, sales training must include sales selling. In order to do so, sales training must include sales promotion programme promotion programme

Promotion Mix Promotion Mix Promotion mix form the total system which consists of :Promotion mix form the total system which consists of :

Advertisement Advertisement -- It is an impersonal salesmanship for mass It is an impersonal salesmanship for mass communication. It is a "persuasive communication" as well as communication. It is a "persuasive communication" as well as a "tool for competition." a "tool for competition." Publicity: Publicity: It is a nonIt is a non--personal simulation of demand by personal simulation of demand by placing commercially significant news about it or secure placing commercially significant news about it or secure favourable presentation/review of it in mass media like favourable presentation/review of it in mass media like newspaper, radio, TV and internet.newspaper, radio, TV and internet.Personal Selling: Personal Selling: Best way of oral, faceBest way of oral, face--toto--face persuasive face persuasive communication.communication.Promotion: Promotion: All activities promoting sales other than All activities promoting sales other than advertisement, publicity and personal selling. advertisement, publicity and personal selling.

Promotion Square Strategy Promotion Square Strategy Product :Product :The nature of product has decisive influence The nature of product has decisive influence on the form and type of promotional steps. on the form and type of promotional steps. Buyer: Buyer: In order to satisfy the needs of buyer, the firm In order to satisfy the needs of buyer, the firm must know customer aspirations, attitudes and values. must know customer aspirations, attitudes and values. Firm: Firm: Every firm has a unique public image and Every firm has a unique public image and goodwill. Promotion steps and their judicious mix can goodwill. Promotion steps and their judicious mix can exploit the goodwill of the company.exploit the goodwill of the company.Channel: Channel: Choice of channel is very important as it Choice of channel is very important as it affects "pull" and "push" strategy. affects "pull" and "push" strategy.

Promotion SquarePromotion SquarePull Strategy (Suction Pull Strategy (Suction Strategy):Strategy): Mass communication Mass communication through repeated advertisement through repeated advertisement assist pull strategy. Here buyers assist pull strategy. Here buyers literally "pull out" the product literally "pull out" the product from dealers.from dealers.Push Strategy:Push Strategy: In push In push strategy, extensive sales strategy, extensive sales promotion steps like personal promotion steps like personal selling, including moderate selling, including moderate advertisement and other steps advertisement and other steps are needed to create consumer are needed to create consumer demand. demand.

The Product

The ChannelThe Firm

The Buyer

Sales Promotion Sales Promotion Programme And Steps Programme And Steps

The other forms of promotion steps are under The other forms of promotion steps are under the following topics: the following topics:

1)1) Local sales promotion programme,Local sales promotion programme,2)2) Customer promotion steps, Customer promotion steps, 3)3) Dealer promotion steps and Dealer promotion steps and 4)4) AfterAfter--salessales--serviceservice

Local Sales Promotion Programme Local Sales Promotion Programme When products are sold through distributors/dealers, local When products are sold through distributors/dealers, local promotional programmes are required.promotional programmes are required.Sales department must train dealer's/distributor's personal Sales department must train dealer's/distributor's personal selling staff on sales promotion methods/techniques.selling staff on sales promotion methods/techniques.These persons must be provided with a "shopping bag" full of These persons must be provided with a "shopping bag" full of promotion materials.promotion materials.Sales persons on the field knows better the attitude of Sales persons on the field knows better the attitude of customers in his locality. This will assist him to design a tailcustomers in his locality. This will assist him to design a tailor or made sales promotion programme appropriate to each locality.made sales promotion programme appropriate to each locality.To assist coTo assist co--ordination, company's sales person should have ordination, company's sales person should have been given an individual salesbeen given an individual sales--promotion budget with great promotion budget with great deal of 'latitude' to use his discretion and initiate innovativedeal of 'latitude' to use his discretion and initiate innovativepromotion steps to suit each territory.promotion steps to suit each territory.

Customer Sales Promotion Steps Customer Sales Promotion Steps 1.1. Gift premium Services and Sales Aids: Gift premium Services and Sales Aids: Offering Offering

own products as incentives and stimulating interest.own products as incentives and stimulating interest.2.2. Discount Coupons: Discount Coupons: This is very popular. Shop This is very popular. Shop

keepers are reimbursed this amount by the firm.keepers are reimbursed this amount by the firm.3.3. Rebate: Rebate: RebateRebate--is announced for a purchase within is announced for a purchase within

a period. a period. 4.4. Contest: Contest: This is a competition based on skill in This is a competition based on skill in

which prizes are offered. Proof of purchase is which prizes are offered. Proof of purchase is usually required for each entry.usually required for each entry.

5.5. Direct Marketing/Mailing: Direct Marketing/Mailing: To a credit card holder, To a credit card holder, a subscriber of a journal, or a member of a subscriber of a journal, or a member of professional body of a merchandise, offering a trial professional body of a merchandise, offering a trial offer. offer.

Customer Sales Promotion StepsCustomer Sales Promotion Steps6.6. Exhibition: Exhibition: Participation in exhibitions, national or Participation in exhibitions, national or

regional, is yet another step. regional, is yet another step. 7.7. Early Order Discount Early Order Discount This encourages buyers to This encourages buyers to

place quantity orders before a particular cut off date place quantity orders before a particular cut off date or season.or season.

8.8. Cash Discount Cash Discount This is discount paid to the This is discount paid to the consumer as an incentive for paying their bills consumer as an incentive for paying their bills early. early.

9.9. Freight Allowances: Freight Allowances: The customers are reimbursed The customers are reimbursed fully or partially expenses incurred by them in fully or partially expenses incurred by them in picking up items from the company warehouses.picking up items from the company warehouses.

10.10. Installment Selling. Installment Selling. Here items are sold in which Here items are sold in which payment of bills are payment of bills are made in easy installment. made in easy installment.

Dealer/Distributor Promotion Steps Dealer/Distributor Promotion Steps 1.1. Sales Incentive: Sales Incentive: Incentives are in the form of cash, Incentives are in the form of cash,

merchandise or paid holidays for merchandise or paid holidays for meeting/exceeding fixed target. meeting/exceeding fixed target.

2.2. Awards: Awards: Awards are given to sales persons & Awards are given to sales persons & dealers/distributors recognising their outstanding dealers/distributors recognising their outstanding achievement.achievement.

3.3. POP Displays: DPOP Displays: Dealers are given incentives for ealers are given incentives for pointpoint--toto--point (POP) displays. point (POP) displays.

4.4. Store Demonstration: Store Demonstration: Store demonstration is very Store demonstration is very important. Firm supports dealers/distributors for important. Firm supports dealers/distributors for such demonstration.such demonstration.

5.5. Quantity Discounts: Quantity Discounts: Time honoured practice of Time honoured practice of providing discount for higher/bulk quantity orders. providing discount for higher/bulk quantity orders.

Dealer/Distributor Promotion StepsDealer/Distributor Promotion Steps

6.6. Functional/Trade Discount :Functional/Trade Discount :This is also for quantity but This is also for quantity but extended to all agents in different distribution levels extended to all agents in different distribution levels (vertically applied) such as wholesaler/distributor and (vertically applied) such as wholesaler/distributor and retailer. This is called retailer. This is called ““vertical application.vertical application.””

7.7. Advertisement Allowances:Advertisement Allowances: Provided to those local Provided to those local dealers/retailers for their expenses on local advertisement.dealers/retailers for their expenses on local advertisement.

8.8. Consignment Selling: Consignment Selling: Looked upon as simply a method of Looked upon as simply a method of "loading up the dealer." Useful for introduction of new lines "loading up the dealer." Useful for introduction of new lines or new products. Manufacturer takes great risk in sending or new products. Manufacturer takes great risk in sending consignment without insisting on prior payment from dealer.consignment without insisting on prior payment from dealer.

9.9. Installment Selling: Installment Selling: Payment is made in easy periodic Payment is made in easy periodic installments.installments.

After Sales ServiceAfter Sales Service

After sales service plays a vital role in sales After sales service plays a vital role in sales promotion. promotion. Modern concept emphasises sales management Modern concept emphasises sales management as as ““to satisfy the customer through our product to satisfy the customer through our product and services.and services.””Having satisfied them by efficient after sales Having satisfied them by efficient after sales service you are laying the foundation for service you are laying the foundation for "customer loyalty" and "repeated orders."customer loyalty" and "repeated orders.””

Brand PatronageBrand PatronageBranding is the practice of giving specified name to a Branding is the practice of giving specified name to a product or group of products from one seller. product or group of products from one seller. Brand patronage is the most important objective of Brand patronage is the most important objective of sales promotion. sales promotion. Customer preference towards brands indicate Customer preference towards brands indicate following tendencies following tendencies

(1) Brand insistence (1) Brand insistence (2) Brand loyalty (2) Brand loyalty (3) Band preference (3) Band preference (4) Brand acceptance (4) Brand acceptance (5) Brand awareness (5) Brand awareness (6) Brand unawareness. (6) Brand unawareness.

Advertisement Advertisement Advertisement is a form of mass communicationAdvertisement is a form of mass communicationThe steps involved in advertising are: The steps involved in advertising are: (1) Choosing appropriate media which is most effective on target(1) Choosing appropriate media which is most effective on target

group. group. (2) Designing appropriate message for transmission through the (2) Designing appropriate message for transmission through the

media. media. (3) Paying for space and time to the media owner.(3) Paying for space and time to the media owner.

Purpose of promotion mix consists of following steps: Purpose of promotion mix consists of following steps: (1) Communication (1) Communication (2) Persuasion (2) Persuasion (3) Assist firm in attaining and sustaining competitive advantag(3) Assist firm in attaining and sustaining competitive advantagee..

Advertisement meets the first step fully and the third step partAdvertisement meets the first step fully and the third step partly. ly. In regards to branding advertisement has a serious limitation.In regards to branding advertisement has a serious limitation.

Publicity Publicity

Publicity is also called "marketing public relations". Publicity is also called "marketing public relations". It comes from news paper/radio and TV reviews by It comes from news paper/radio and TV reviews by journalists and other professionals or independent journalists and other professionals or independent third parties.third parties.It reaches the prospects in the form of "education" It reaches the prospects in the form of "education" rather than a commercial communication. rather than a commercial communication. Publicity differs from advertisement in the form of Publicity differs from advertisement in the form of "message" and "payment" terms. "message" and "payment" terms. This is not a paid form of advertisement.This is not a paid form of advertisement.

Personal Selling Personal Selling Personal selling is a facePersonal selling is a face--toto--face promotional face promotional effort. effort. This step has better success rate for achieving This step has better success rate for achieving brand patronage from prospects and existing brand patronage from prospects and existing customers. customers. Personal selling has better success rate in Personal selling has better success rate in converting prospects to buyers, compared to converting prospects to buyers, compared to advertisement.advertisement.

Sales Promotion Sales Promotion -- Strengths Strengths

1. Stimulate positive attitude towards product.1. Stimulate positive attitude towards product.2. Give extra incentive to customer to purchase 2. Give extra incentive to customer to purchase

product.product.3. Gives direct inducement to make buying decision3. Gives direct inducement to make buying decision

immediately.immediately.4. It has flexibility and can be used at any stage in 4. It has flexibility and can be used at any stage in

product life cycle.product life cycle.

Sales Promotion Sales Promotion -- WeaknessesWeaknesses

1. Have short term impact on sales say 3 months.1. Have short term impact on sales say 3 months.2. It alone cannot bring up brand loyalty.2. It alone cannot bring up brand loyalty.3. It can only supplement other sales effort like 3. It can only supplement other sales effort like

advertisement and personal selling. advertisement and personal selling. 4. Too many sales promotion steps may adversely 4. Too many sales promotion steps may adversely

affect 'brand image'. affect 'brand image'. 5. Sales promotion becomes ineffective when 5. Sales promotion becomes ineffective when

product reaches declining stage or of poor quality. product reaches declining stage or of poor quality.

Advertisement vs. Sales PromotionAdvertisement vs. Sales Promotion

1.1. Indirect persuasion of Indirect persuasion of customers.customers.

2.2. LongLong--term objective to term objective to build brand awareness, build brand awareness, image or loyalty. image or loyalty.

3.3. Add value to product. Add value to product. 4.4. Advertising assists Advertising assists

personal selling.personal selling.

1.1. Direct and open Direct and open persuasion of customers.persuasion of customers.

2.2. This is an immediate job This is an immediate job of boosting sales.of boosting sales.

3.3. Alter price value Alter price value relationship. relationship.

4.4. Promotion supplements Promotion supplements both advertising & both advertising & personal selling.personal selling.

Sales Territory – The Concept and Purpose - E-Learning System

Documents

Transcript of Sales Territory – The Concept and Purpose - E-Learning System

PROFILE OF DELHI: NATIONAL CAPITAL TERRITORY

Foreclosure sales

Sales Fails

Implementing State and Country/Territory Picklists

sPecial PurPose sPrinklers

QP-Territory Sales Manager (Retail).pdf - National ...

Guardianship Purpose - PowerDMS

For Demonstration Purpose -

INTERNATIONAL SALES LAW

Rethinking Constitutional Claims on Territory

SALES PROGRAM

PUBLIC PURPOSE JOURNAL

Territory and population of Lipetsk region

SALES CATALOGUE

GENERAL PURPOSE ENGINE - Dabed

AUTHOR'S PURPOSE & TEXT STRUCTURE

TRAVEL WITH PURPOSE™ - Hilton

Territory, rank and mental health

Introduction: Purpose of the audit

Indian territory, descriptive, biographical and genealogical ...