Personal Selling& SalesPromotion

A Report on

Personal Selling & SalesPromotion

Course Name: Principles of Marketing

Course Code: F-204

Submitted To:

Ms. Pallabi Siddiqua

Assistant Professor

Department of Finance

Faculty of Business Studies

University of Dhaka

Submission Date: 2nd July, 2014ii

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Group Profile

Sl.No.

ID No. Name Remarks

1 19-042 Shaikat Mozumder

2 19-060 Ummya Riah Sultana

3 19-192 Sakib Alam Chowdhury

4 19-200 Md. Shohidul Islam

5 19-208 Afia Yasmin

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Acknowledgement

First of all we express our gratitude from heart to theBeneficent, the Merciful & Almighty Allah for giving us thestrength and patience to prepare this term paper within theprogrammed time.

We are deeply indebted to our course teacher, Ms. PallabiSiddiqua, Assistant Professor, Department of Finance, Faculty ofBusiness Studies, University of Dhaka, for her co-operation andprecious contribution in preparing the report. She gave us properinstruction about preparing the report. It gave us theopportunity to draw out an analysis about personal selling &sales promotion.

We have taken help from internet & our book Principle ofMarketing to solve cases. We are thankful to those authors forthe help we have gathered from their resourceful work.

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Letter of Transmittal2nd July, 2014

Ms. Pallabi SiddiquaAssistant ProfessorDepartment of FinanceFaculty of Business StudiesUniversity of Dhaka

Dear Madam,

Subject: Submission of term paper on “Personal selling & sales promotion”.

It is an immense pleasure for us to submit the Term Paper on“Personal selling & sales promotion" which is prepared as apartial requirement of the course named "Principles of Marketing"(F-204) of BBA program under Department of Finance of Faculty ofBusiness Studies, University of Dhaka. The study is mainlyfocused on different personal selling & sales promotionapproaches followed by some renowned company of the world likeHP, P&G. The experience that we gathered through this study willhelp in our career us to do teamwork indeed. It was anopportunity of rediscovering our potentials. It was ofexcitements too.

We would like to convey our special thanks and gratitude to youfor patronizing our effort & for giving us proper guidance andvaluable advice. We have tried our best to cover all the relevantfields.

We thank you and look forward to receive your cordial approval ofour submission.

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Sincerely Yours,

Shaikat Mozumder(On behalf of all group members)

Executive Summary

This chapter is all about personal selling and sales promotion. In this chapter we have found three cases. They are about HewlettPackard, value merchants versus value spendthrifts and proctor & gamble respectively. And all of those are related to personal selling and sales promotion.

At first comes the case of Hewlett Packard. Here we found some problems of Hewlett Packard. They are like -Customers complain that they had to deal with too many salespersons, too much confusing management layers that made hard to figure out whom to call, customer had troubled tracking down sales representatives, salespersons are apathetic and lacked of deep knowledge on certain products, lacking of proper sales force management etc.

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Then we found the solution of these problems. That’s helps the company to gain their ultimate target.

The second one is about value merchants versus value spendthrifts. The controversy is which one is better for the organization in the short run as well as in the long run. Value spendthrifts based on the logic of emphasizing on lower prices while getting little from customers in return. On the contrary value merchants are the idea of customer value. Rather than simply dropping prices to get or keep short term sales, value merchant salesperson’s shows document and demonstrate superior value in order to capture a customer’s long term business.

The last one is on Proctor and Gamble. Here we face some questionlike sales force structure of the company, positive and negative aspect of team selling focused on customer based, the CBD structure and how this structure may be more efficient. Based on the text book, case and online we try answering the best possiblesolution.

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Table of Contents

Chapter no. Contents of Chapter Page number

01 Introduction 1

02 Literature Review 3-6

03 Analyzing Case 7-18

04 Conclusion 19-20

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Chapter 1

Introduction

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Introduction

Personal selling is the interpersonal arm of the promotion mix. Acompany’s sales force creates and communicates customer value through personal interactions with customers. Companies around the world use sales forces to sell products and services to business customers and final consumers. Personal selling is one of the oldest professions in the world. The people who do the selling go by many names, including salespeople, sales representatives, agents, district managers, account executives, sales consultants, and sales engineers.

Sales promotion is the most short-term of the promotion mix tools. Personal selling and advertising often work closely with another promotion tool, sales promotion. Sales promotion consistsof short-term incentives to encourage the purchase or sales of a product or service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now. Sales promotion tools are used by most organizations, including manufacturers, distributors, retailers, and not-for-profit institutions.

Objectives

The objective of this report is to understand the followingtopics through some case studies:

Personal sellingDifferent types of personal sellingManaging sales forcePersonal selling processSales promotionAnalyzing different cases

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Chapter 2Literature Review

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The Sales Force Structure

A company can divide sales responsibilities along any ofseveral lines. The structure decision is simple if the companysells only one product line to one industry with customers inmany locations. In that case the company would use a territorialsales force structure. However, if the company sells manyproducts to many types of customers, it might need a productsales force structure, a customer sales force structure, or acombination of the two.

Territorial Sales Force Structure: In the territorial salesforce structure, each salesperson is assigned to anexclusive geographic area and sells the company’s full lineof products or services to all customers in that territory.This organization clearly defines each salesperson’s job andfixes accountability. It also increases the salesperson’sdesire to build local customer relationships that, in turn,improve selling effectiveness. Finally, because eachsalesperson travels within a limited geographic area, travelexpenses are relatively small.

Product Sales Force Structure: Salespeople must know theirproducts, especially when the products are numerous andcomplex. This need, together with the growth of productmanagement, has led many companies to adopt a product salesforce structure, in which the sales force sells alongproduct lines.

Customer Sales Force Structure: More and more companies arenow using a customer (or market) sales force structure, inwhich they organize the sales force along customer or

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industry lines. Separate sales forces may be set up fordifferent industries, serving current customers versusfinding new ones, and serving major accounts versus regularaccounts. Many companies even have special sales forces tohandle the needs of individual large customers.

Complex Sales Force Structures: When a company sells a widevariety of products to many types of customers over a broadgeographic area, it often combines several types of salesforce structures. Salespeople can be specialized by customerand territory; product and territory; product and customer;or territory, product, and customer.

Product Sales Force Structure: Salespeople must knowtheir products, especially when the products are numerousand complex. This need, together with the growth of productmanagement, has led many companies to adopt a product salesforce structure, in which the sales force sells alongproduct lines.

Customer Sales Force Structure: More and morecompanies are now using a customer (or market) sales forcestructure, in which they organize the sales force alongcustomer or industry lines. Separate sales forces may be setup for different industries, serving current customersversus finding new ones, and serving major accounts versusregular accounts. Many companies even have special salesforces to handle the needs of individual large customers

Sales Force Size

Once the company has set its structure, it is ready to considersales force size. Sales forces may range in size from only a fewsalespeople to tens of thousands. Some sales forces are huge—forexample, PepsiCo employs 36,000 salespeople; American Express,23,400; GE, 16,400; and Xerox, 15,000. Salespeople constitute oneof the company’s most productive—and most expensive—assets.

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Therefore, increasing their numbers will increase both sales andcosts.

Other Sales Force Strategy and Structure Issues

Outside Sales Force: Outside salespeople travel to call oncustomers in the field.

Inside Sales Force: Inside salespeople conduct business fromtheir offices via telephone, the Internet, or visits frombuyers. Some inside salespeople provide support for theoutside sales force, freeing them to spend more time sellingto major accounts and finding new prospects.

Team Selling: As products become more complex, and ascustomers grow larger and more demanding, a singlesalesperson simply can’t handle all of a large customer’sneeds. Team selling using teams of people from sales,marketing, engineering, finance, technical support, and evenupper management to service large, complex accounts. In manycases, the move to team selling mirrors similar changes incustomers’ buying organizations.

Sales Promotion

Sales promotion is a short-term incentive to encourage thepurchase or sale of a product or service. Sales promotion toolsare used in every organization, including manufacturers,distributors, retailers and nonprofit organizations.

Major Sales Promotion Tools

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Consumer Promotion Trade Promotion Business Promotion

The Personal Selling Process

The selling process consists of several steps that salespeoplemust master. These steps focus on the goal of getting newcustomers and obtaining orders from them. However, mostsalespeople spend much of their time maintaining existingaccounts and building long-term customer relationships. There areseven steps in personal selling process.

Prospecting and Qualifying: The first step in the selling process is prospecting—identifying qualified potential customers. Approaching the right potential customers is crucial to the selling success.

Pre-approach: Before calling on a prospect, the salesperson should learn as much as possible about the organization (what it needs, who is involved in the buying) and its

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buyers (their characteristics and buying styles). This step is known as pre-approach.

Approach: During the approach step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. This step involves the salesperson’s appearance, opening lines, and follow-up remarks.

Presentation and Demonstration: During the presentation stepof the selling process, the salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems. The customer-solution approach fitsbetter with today’s relationship marketing focus than does ahard sell or glad-handing approach.

Handling Objections: Customers almost always have objectionsduring the presentation or when asked to place an order. Theproblem can be either logical or psychological, and objections are often unspoken. In handling objections, the salesperson should use a positive approach, seek out hidden objections, ask the buyers to clarify any objections, take objections as opportunities to provide more information, andturn the objections into reasons for buying. Every salesperson needs training in the skills of handling objections.

Closing: After handling the prospect’s objections, the salesperson now tries to close the sale. Some salespeople donot get around to closing or handle it well. They may lack confidence, feel guilty about asking for the order, or fail to recognize the right moment to close the sale.

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Follow-Up: The last step in the selling process—follow-up—isnecessary if the salesperson wants to ensure customer satisfaction and repeat business. Right after closing, the salesperson should complete any details on delivery time, purchase terms, and other matters. The salesperson then should schedule a follow-up call after the buyer receives the initial order to make sure proper installation, instruction, and servicing occur.

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Chapter 3Analyzing Case

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Hewlett-Packard

Overhauls Its Vast Corporate SalesForce

Example- Someone needs a new digitalcamera. He is not sure which one to buyor even what features he need. So hevisits one of his nearest electronicsshop to talk to a salesperson. He walksthrough the camera section but he can’tfind anyone to help him. Finally hefinds a salesperson but he yawns andtells him that he is responsible for selling all the products inthe store and he doesn’t really know much about cameras. So headvises him to talk to someone else. Finally the person finds anexpertise salesperson. But he disappears to handle some othertask after answering some of my question and handing him someoneelse who is new. But there is much more contradict aboutinformation including price and feature between the twosalespersons. That time the person becomes confused what to do.

HP (Hewlett-Packard) is one of the technology giant corporations.Its revenues and profits had flattened and its stock price hadplummeted before joining the new CEO Mark Hurd. The new CEO findssome problem for which the corporation is going to lose theirprofit day by day. He also talked with 400 corporate customers.Mostly what he heard were gripes about HP’s corporate salesforce. Customers complained that they had to deal with too manysalespeople, and HP’s confusing management layers made it hard tofigure out whom to call. Mark Hurd finds out the followingproblems.

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Problem –

Customers complain that they had to deal with too manysalespersons.

HP has too much confusing management layers that madehard to figure out whom to call.

Customer had troubled tracking down salesrepresentatives.

Salespersons are apathetic and lacked of deep knowledgeon certain products.

Lacking of proper sales force management. It often takes week for representatives to respond to

seemingly simple requests. Pressure of administrative task. Give less time to customer. Burdened with bureaucratic red tape. No control over the sales person who sold their products. The corporation had become so centralized.

Solution-

The corporation assigned each salesperson three or feweraccounts. The top 2000 accounts were assigned just onesalesperson.

The CEO cut hundreds of unproductive salesperson. The corporation changes the sales force structure. The CEO decentralized the corporation. Eliminate the unnecessary Customer Sales Group (CSG).

This had out of control of direct sales to customer. Drive away the three layers of management.

Summary-

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The corporation changes the sales force structure. TheCEO made the corporation “complex sales force structure”where there is two parts. One is product sales forcestructure and another is customer sales force structure.In product sales force structure salesperson arespecialized in selling only a portion of the company’sproducts lines.In customer sales force structure salesperson arespecialized in selling only to certain customers orindustries.

There were three divisions 1.personal systems group(PSG), 2.tecnology solutions group (TSG), 3.image andprinting group (IPG) along with customer’s sales group(CSG). The CSG was bloated and underperforming. Therewere 17000 sales persons but only 10000 directly sold thecustomers. So the CEO of HP drives away the CSG from theorganization.

The organization was too much centralized. For thatreason the lower level sales person cannot take anydecision. So it takes around a week to full fill therequest of the customers. Now it takes 2 or 3 days.

Previously the sales person had to work theadministrative work. The CEO lessens their administrativework. As a result sales persons now spend more than 40percent of their time with customers, up from just 30percent last year.

Value Merchants Vs Value Spendthrifts13

It’s the company’s job to create a compelling value propositionfor customers. Then it’s the salesperson’s job to buildprofitable customer relationships based on that valueproposition. Unfortunately, in the heat of closing sales,salespersons too often take the easy way out by cutting pricesrather than selling value. It’s usually much easier to win a saleby matching competitors’ lower prices than by working to convincea customer that your product’s greater value justifies its higherprice.

According to “Value Merchants: Demonstrating and DocumentingSuperior Value in Business Markets” there are two types ofsalespeople:

1. Value spendthrifts

2. Value merchants

Value spendthrifts indicate give value away, emphasizing lowprices while getting little from customers in return. Incontrast, value merchants emphasize customer value. Rather thansimply dropping prices to get or keep short term sales, valuemerchant salespeople document and demonstrate superior value inorder to capture a customer’s long term business.

The challenge for sales managers is to transform valuespendthrifts into value merchants. Compensation plays animportant role. To encourage salespeople to seek return on valuerather than simply cutting price to gain or retain business, the

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sales compensation plan should reward value selling behaviors andprofitable outcomes rather than just short term sales outcomes.

Now comes the differences between value spendthrifts and valuemerchants:

Value Spendthrifts Value Merchants Prefer to give quick price

concessions to close dealsand move on to otherbusiness.

Give price concessionswithout changes in themarket offering.

Routinely trade morebusiness for lower prices.

Give services away forfree to close a deal.

Sell primarily on pricecomparisons withcompetitors.

Complain to the companythat its prices are toohigh.

“Hang tough” in thenegotiations to gainbetter profitability outof each deal bases oncustomer value.

Only give priceconcessions in exchangefor cost-saving reductionsin the market offering.

Routinely gain morebusiness at the sameprice.

Strategically employservices to generateadditional business.

Sell primarily on cost ofownership comparisonsversus competitors.

Explain to the company15

Believe management pursuesa volume-driven strategy.

Tell the company thatcustomers are onlyinterested in price.

that they need more proofof superior value.

Believe management pursuesa value-driven strategy.

Provide customer insightsto improve the value ofthe company’s offerings.

Apart from this, bearings and industrial supplies resellerapplied industrial technologies has implemented a DocumentedValue Added (DVA) program, which requires salespeople to prepareformal DVA reports in which they record all of their efforts toprovide value for individual customers.

Applied salespeople use DVA as an integral part of their everydayselling activities in a number of ways. They use DVA reports tobuild customer loyalty and gain future sales. DVA enables thesalesperson to make compelling statements to a customer. The DVAprogram itself even adds value for customers. It providescustomer purchasing managers with documentation that shows theirmanagers how they have met their have met their firm’s costreduction goals. Therefore, DVA program helps Applied’ssalespeople to build profitable relationships with buyers basedon mutual benefit.

Procter & Gamble

Selling Through Customer BusinessDevelopment

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It seems that when it comes to personal selling, the “win-win” gets thrown around so much that it has become a cliché. But at Procter & Gamble formed a family-operated soap and candle companyin 1837. P&G has understood that if the customer doesn’t do well,neither will the company. That’s whyeven though P&G boasts a massivesales force of more than 12000employees worldwide, P&G’s peoplerarely utter the term sales. At P&Git’s called “Customer BusinessDevelopment” or CBD. The title alonepretty much says it all. Rather than just selling detergent or toothpaste, P&G’s philosophy is to grow its own business by growing the business of its customers. In this case customers arethe thousands of retailers and wholesalers that distribute P&G’s brands throughout the world. To deal with complex customers, P&G organizes its sales representatives into customer business development teams. Rather than assigning reps to specific geographic regions or products, it assigns each CBD team to a P&Gcustomer.

Regardless of the team’s size, the strength of the CBD concept derives from the fact that each team, in and of itself, is a complete customer-service unit, containing at least one support specialist for every important business function. But the multifunctional nature of the CBD team also means that collaboration extends far beyond internal interactions.

CBD team members are very good at demonstrating to the retailer that the best way to win the first moment of truth is most often will a P&G product. But P&G is so committed to the principle of developing the customer’s business as a means of developing its own.

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In this case some question arises through P&G’s sales force strategy. These are briefly discussed here.

Question 1: Which of the sales force structures discussed in thetext best describes P&G’s CBD structure?

Sales force management is the analysis, planning, implementation& control of sales force activities. A company can divide salesresponsibilities along with several lines. There are four typesof Sales Force Structures

Territorial Sales Force structure Product Sales Force Structure Customer Sales Force Structure Complex Sales Force Structure

Complex Sales Force Structure: when a company sells a widevariety of products to many types of customers over a broadgeographic area, it often combines several types of sales forcestructures. A good sales structure can mean the differencebetween success and failure. Companies should periodically reviewtheir sales force organizations to be certain that they serve theneeds of the company and its customers.

The sales structure described in the case is Complex sells forcestructure. In sales force structure salespeople are specializedby customer & territory, by product & territory, by product &customer or by territory product & customer. No single structureis best for all companies & situations. In our case, we canrelate the CBD team with by product & customer. For decades,

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Procter & Gamble has been at the top of almost every expert’s A-list of outstanding marketing companies. The experts point toP&G’s stable of top selling consumer brands, or that, year in andyear out, P&G is the world’s largest advertiser. Consumers seemto agree. You’ll find at least one of P&G’s blockbuster brands in99 percent of all American households; in many homes, you’ll finda dozen or more familiar P&G products. P&G faces complexitiesduring deal with customers because most of its customers such asWal-Mart, Walgreens, Dollar store chain are very complex tohandle as they are very big retailer. So P&G organizes its salesrepresentative’s team into Customer Business Development teamsrather than assigning representatives to specific geographicregion or products. It assigns its CBD team to a P&G customer.The strength of the CBD concepts derives from the fact that eachteam, it & itself is a complete customer service unit containingat least one support specialist for every important businessfunction. Each CBD team includes a marketing strategy,operations, information systems, logistics, finance & humanresource specialist. This multifunctional structure enables eachteam to meet the multiple & vast need of its customers.

Question 2: From the perspective of team selling, discuss thepositive as well as some possible negative aspects to thecustomer business development sales organization.

As the product become more complex and as customers grow largerand more demanding, the companies now use team selling instead ofa single selling person to service large complex accounts.

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P&G have used teams for a long time. P&G sales reps are organizedinto CBD teams. Each CBD team is assigned to a major customersuch as Wal-Mart (which tallies a massive 20% of all P&G sales),sale way or CVs pharmacy. The CBD team for Wal-mart consists of350 employees. Teams consist of a CBD manager, several accountexecutives and specialists in marketing strategy, operations,information systems, logistics and finance. The organizationplaces the focus on serving the complete needs of each importantcustomer.

Team selling does have some pitfalls or lacking. Salespeople areby nature competitive and have often been trained and rewardedfor outstanding individual performance. Salespersons that areused to having customers all to themselves may have troublelearning to work with and trust others on a team. In addition,selling teams can confuse on overwhelm customers who are used toworking with only one sales person. Finally, difficulties inevaluating individual contributions to the team selling effortcan create some sticky compensation issues.

Question 3: Based on information on web site (www.mypgcareer.com)and information in this case, discuss the importance ofrecruiting, training and compensation in making the CBD structuremore effective.

Procter’s vision of Human Resources is different from many otherorganizations. They realized that if the consumer does not dowell, the company too won't do well: It is also the sameconcerning its employees. The recruitment is a crucial step forP&G and especially into the CBD structure. The objective is tofind the right person, for the right place, at the right time. Ifit's the case, the next step will be to develop him or her. Keephim or her, and a huge amount of money can be saved. To achievesuch goals. P&G has a very demanding recruitment policy. First,

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all candidates have to apply on the dedicated website(www.mypgcareer.com). No Job offer from P&G can be findelsewhere. Then candidates have 2 to 4 written tests to pass, andthen they have to present themselves through 3 interviews.Applicants must be innovative, dynamic and responsible. Theobjective is that future employees have to be able to stand backand be imaginative when they set a project. That is why P&G waselected as “the most innovative company in 2007.”

Learning, training, self confidence, and leadership are importantaspects to the firm: an employee who has access to knowledge andbusiness competencies is more efficient in his job. That‘s why,several seminaries, online and classroom courses are proposed toeach employee since his entrance in the company.

P&G wants to keep and retain the talent they care for. Thereforethey are concerned on the personal well being of its workers, byproposing extended family leave, sabbatical breaks, part timejobs, and so on. A person who is happy and full blown in hispersonal life is likely to be more implicated in the job. Theyhave implemented a “promotion from within" policy to allow peopleto compete for key CBD roles around the world. Globally, P&G hason the ground operations in over 85 countries. With their CareerPath Model, employees can work for life for Procter. Every 3 or 4years, they have the possibility to change their position andhave different roles, at the same or at higher levels.

The CBD structure is certainly the ideal structure to reachhighest positions in the firm as their website presents it: "Athigher levels you could become the leader of one of our topworldwide customer teams or the CBD Head of one of our largestcountries of regions. You might even rise to the very top as aGlobal CBD Officer, a president -level role, leading the 12,000person P&G CBD Organization.

Therefore, P&G’s employees are committed to the firm, they areaware that they have an exceptional working life quality. This isbecause of the size of the organization and certainly the bestcompensations on the market.

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Question 4: Discuss some ways that the CBD structure may be moreeffective than a single sales representative for each step in thepersonal selling process.

In personal selling process CBD structure is more effective insome ways than a single sales representative. Some ways aredescribed here through the steps of personal selling process.

Prospecting- In this stage P&G classifies its customersaccording to their importance. The most important customersbring a lot of added value to the company benefit from aparticular type of sale.

Pre approach- For important customers: “complexes”, a teamof sale named CBD are assigned to them. So, every CBD isassigned to a P&G customer. It is generally a team of 20employees, a compound of department’s specialists (sales,marketing, IT, HR etc.). The team tries to maintain a goodrelationship with their customers by answering theirsilliest of questions.

Approach- The purpose to compose a team for a specificcustomer allows him to benefit from a complete service. So,the customer benefits all the resources needed: variousmembers of the team being specialists in diverse fieldsfacilitate this approach. Thus, the CBD structure issuccessful because it gives the best satisfaction to itscustomers.

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Making the presentation-To satisfy its best customers’needs, but also to make it profitable for the firm: thereare four objectives the must be achieved by the CBD teamwith their customer:1. Align Strategy2. Create Demand3. Optimize Supply4. Enable the organization to develop capabilities to

maximize business results

So, a business plan is presented to the customer, in whichall the stages are studied well. The aim for both parties isto understand what the customer wants.

Overcoming objections-In this stage, few objections are madeby the customers. The decisions are taken together, so thecustomer necessarily agrees with the strategy proposed bythe team. P&G’s employees try to meet the expectations ofthe customer as well as those of the consumer, because themore they are satisfied, the more the company will makeprofits.

Closing the sales-To convince the customer, the win-winsituation is highlighted. Thus the strategy concludes theadvantages that it will get for both parts as indicated.

Follow up-Very often, the members of the team contact thecustomer to maintain this partnership. Conversely, in caseof trouble, the customer can easily contact a staff member.As the members of the team work together, it is easy totreat the problem or to meet the needs of the customer.Various objectives are estimated to know if they areeffective of not. Observing this process leaded by the CBDteam, we realize that there is a huge difference if we

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compare it to a single sales rep. When the CBD team benefitsfrom the expertise of each member of different areas, thesingle sales rep has only its persuasion power to make thedifference. In P&G, the personal selling process is wellorganized to meet perfectly customers’ expectations, whereasa single sales rep has not the power to act on all thecompany’s fields and thus, cannot follow its customer duringevery steps of the process. Finally, the CBD structure isideal for the communication between all actors of thecustomer management process, and it also benefits for theretailer who is perfectly served. Structure is ideal for thecommunication between all actors of the customer managementprocess, and it also benefits for the retailer who isperfectly served.

Question 5: It seems that P&G has the most effective sales forcestructure of any company in its industry. Why have competitorsnot been able to match P&G’s sales force structure?

P&G serves a variety of products in the market. These includebeauty products, feminine &

Family products, global health & home care and so on.

Companies like P&G are a force in the world. Their marketcapitalization is greater than the GDP of many countries, andthey serve consumers in more than 180 countries. P&G brands havesome competitors, but there are very few global companies intothe FMCG (Fast-moving consumer goods) world. Therefore, P&G usesits global power to be more efficient in their relationships withretailers. If we take the example of P&G in France, it is morethan 50 brands that have consumers’ recognition, and thus that

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weigh into negotiations’ with retailers. Moreover, P&G pioneeredthe CBD structure. They achieved to improve it year after year tobe perfectly operational. Therefore, the size of the organizationand its brands portfolio allows avoiding structural costs thatother companies would have by implementing such a structure. .Competitors have attempted to implement some aspects. However,P&G pioneered the CBD structure. And it has built some uniquecharacteristics that have allowed it to leverage more power fromits team structure than its rivals can.

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Chapter 5Conclusion

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Finally from the three cases we know different sales pattern andsales force structures of two biggest organizations in the world.HP’s sales force structure is different from P&G’s sales forcestructure. Therefore both of the organization determines theirsales force strategy according to their customer level andsatisfaction. Though both have different sales force structureboth are appropriate for their particular company structure theirlevel of customer satisfaction is also high.

Now we’ve clear idea about sales pattern of HP how they identifyall of their problems and the most important thing is thesolution. In the case, the contribution of the new CEO of thecompany can never be ignored. Then comes the controversy betweenvalue merchants and value spendthrifts. Both of them are reallygood but in the long run value merchants are more qualifiedwhereas value spendthrifts are for short term.

In the last we’ve found the sales force structure of P&G. wetried to make the best answer of the given questions through thetext along with the help of internet. All these things enrich ourknowledge and broaden our skills about personal selling and salesforce structure as well as sales promotion.

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