SETTING PERSONAL

SELLING OBJECTIVES
Obj set in consultation with Marketing Department

Some Examples of Personal selling objectives:

hMaintain existing customer base
hObtain 20% new customers
hMotivate Dealers- maintain 1 month stocks
hKeep existing customers informed of new Product
hProvide technical service within 48 Hrs of call.
hTrain Middlemen (dealer) on Customer Care
Case on Personal Selling Objective- Case-1
 
A credit card company is Planning to set it’s personal selling objectives based
on the following feedback it received from the sales department and the DSAs
of the company.
 
Average customers are not aware of the complete product benefits of credit
cards.
 
The DSA,s do not have skilled and trained Manpower.
 
The conversion % in the assignment base chosen has been just 5%. The
industry standard is 15% conversion.
 
The customer base of this company ranks within the last three among the 10
players in this business. 
Based on the above please prepare personal Selling Objective for this
organization
What is Market Potential ?
Estimate of maximum possible Sale opportunity in
the Market.
What is Sales Potential?
•The possible sales which can be achieved out of
Market Potential
What is Sales Forecast?
Estimate of Sales in terms of units or value in given
period of time

The above all is based on a given Marketing plan

and inputs
Market Motivation

Before fixing the forecast answer the

following

•Why do people buy?

•Why people do not buy?
•How best to present product (the sales pitch)
•Relative effectiveness of different selling appeals
•Relative appropriateness of promotional methods
Methods of Forecasting
Jury executive opinion

•Top executive estimate probable Sales

•An average is calculated
•The rationale and input material is shared.

Discuss strength & weaknesses

The Delphi Method

•Developed by Rand Corporation

•Similar to Jury Executive opinion
•But done based on structured questionnaire
•Eliminates majority opinion

Discuss Strengths and Weaknesses

Poll of Sales Force Opinion

•Each Sales personnel does an forecast of his

territory or assignment base.
•Modifications are made by Mgt

Discuss Strength and Weaknesses

Projection of Past Sales method

Add on based the current years sales performance

Could take past several years of actual performance

Current Year Sales

Next year Sales = Current Year Sales X ______________

Last year Sales

Example: ( figs in units)

110
Next year Sales = 110 X _______
90
Next year Sales = 134
Generally is around 15% of the past years performance
Time Series Analysis

Similar to past Sales Projections but takes

following into consideration

•Long Term trends

•Cyclical Changes
•Seasonal Variations
•Irregular Fluctuations
Survey of Customer Buying plans method

•Seek customer survey

•Seek their plans to buy
•Then estimate forecast

Discuss Strengths and Weakness

EFFECTIVE SALES
EXECUTIVE
Traits of a Effective Sales Executive

•Ability to set personal goals

•Matching it with org goals
•Splitting the goals to set of activities to perform
•Review the activities and modify if needed
•Effective Time Management
•Ability to plan daily and implement
•Ability to exhibit skilled leadership qualities
Relationship with Top Management

•Should exhibit initiative and personal drive

•Keep Top Mgt informed on progress
•Need to accept responsibility
•Should not be indispensable
•Effective Problem solvers and decision makers
•Keep Management informed on decisions and
developments
•Report promptly
•Do not relay on rumors
•Do not seek help on decision making too often,
hence diluting authority.
Relation with Product Manager

•Provide vital inputs on product performance

•Product jointly decided by Mark, Finance,Production &
Sales Dept
•Periodic feedback on Product for modification

Relation with Promotion Mgt

•Provide inputs for Promotional Strategy

•Help in implementation
•Keeps sales team informed on the promotional Plans
•Takes advantage of the A & P investment.
Relationship with Pricing

•Decided jointly by Marketing and Sales

•Involves Finance, Production, Legal functions etc
•Should be aware of competitor’s Pricing
•Should have a feel of customer acceptability
•Implementation of pricing
 SALES RELATED
MARKETING POLICIES
Product Policy- What to Sell
Distribution policy-Whom to Sell
Pricing Policy- What price to sell

The degree of authority for above varies in

different companies
 PRODUCT POLICY
Product line Policy
•Changes in product offering
•Re organizing product / line simplification
•Re organization of Product line / Diversification
•Ideas of new Product
•Appraisal of proposal of New Products

Product design Policy

Product Quality/ Service Policy

Guarantee Policy
DISTRIBUTION POLICY
Policy on Marketing Channels

Channel wise sales volume potential

Channel wise net profitability

Policy on Distribution Intensity

Mass distribution
Selective Distribution
Exclusive agency distribution
Case-II Sales Management
Product Related Policy: 
A Multi Product and Multi Brand company has eight brands
in the product range of Toilet soaps.
The contributions of various products are as follows:
 
   % of Profit Turn over
contribution
PRODUCT A 9% 8%
PRODUCT B 11% 9%
PRODUCT C 14% 12%
PRODUCT D 6% 18%
PRODUCT E 2% 11%
PRODUCT F -4% 22%
PRODUCT G 15% 16%
PRODUCT H -2% 4%

Discuss on options of Product Line Policy

Policy on Distribution Intensity

•Mass distribution
•Selective Distribution
•Exclusive agency distribution
 PRICING POLICY
Competition Related Pricing
Matching the competitor’s pricing
Pricing above competitor
Pricing under Competition

Pricing related to costs

Full cost pricing
Promotional Pricing
Contribution pricing (covering variable cost)
Buyer Based pricing
•Based on Volume
•Frequency of purchase
•Geographical location of customer

List Pricing (Regulated Pricing for

middlemen)
•Recommended & control dealer price
•Leads to customer satisfaction
•Helps fight competition uniformly
•Consider freight, Govt levies, taxes and other
costs of dealer
Policy on Discounts
•Wholesaler, Retailer discounts
•Turn over discount
•Selective product discount

Geographical pricing Policy

•FOB ( Free on Board) – (ex works,factory)-
used to heavy products industrial products.
•Delivered prices ( postage stamp pricing)
Policy on Price leadership
Industry leader sets price and other follow
Example: egg, cement, petrol etc

Product line Pricing

Multiple product pricing structure
Planned enhancement
Mutual advantage pricing

Competitive bidding policy

Closed tenders
Open tenders
PERSONAL SELLING
PERSONAL SELLING
STRATEGY
STRATEGY
•Kind of Sales force
•Size of the Sales force
•Appropriate deployment
Competitive settings and personal
selling strategy

•Pure Competition
•Monopolistic Competition
•Oligopolistic Competition
•No Direct Competition
Pure Competition
•Many players
•No specific player dominates market
•No single player influence demand & supply Marjory
•No Govt Regulations on pricing or supply

This hardly exists. If it does-personal selling strategy

should be:
•Better Service to the customers(Presale & Post Sale)
•Organizational efficiency
•Cost Management
Oligopolistic Competition
•Smaller groups of companies join together
•They know each other
•Makes difficult for new entrants
•Competitors activities are closing watched
•Personal selling helps in maintaining dealer co-
operation, servicing distribution network
•Personal selling effectively uses promotional
strategy
No Direct competition
•No Direct Competition, but have in direct
competition through substitutes
•They would capitalize no competition situation
•Price skimming or penetration strategy used.
•Should aim at vast coverage of market
•Personal selling should use pricing and
promotion strategy to its advantage.
Personal Selling Strategy Based on

Whom to Sell
What to Sell
How to Sell
 Product Market analysis-Case-III
Example for a Cellular company

BUSINESS/
CORPORATE
CorporateSMES SMEs
PROFESSIONS
Business/
GOVTProfessiona

GROUP BOOKING

FREQUENT
CALLER SCHEME

LOW CALLER
SCHEME

PREPAID
SERVICES

Identify Whom,What and How to sell?

Determining the size of the sales force

Work load method

Decide assignment base

Classify based on time needed / calls needed
Determine calls per day/ month/ year
Divide it by assignment base to arrive at number
of Sales personnel needed.
Sales Potential method

Productivity based system

Consider average productivity
Divide the target with productivity to arrive at
sales persons needed

Incremental Method

Based on expected increase in cost/revenue per

sales personnel added
Cost Benefit compared and decision is taken
This is a good cost conscious and result oriented
method
SELECTING SALES
SELECTING SALES
PERSONNEL
PERSONNEL
 SELECTION PROCESS

Employment Offer

Physical Examination

Testing

Reference Check

Interview

Formal Application

Preliminary Interview

Rejection
Formal application form
Capture necessary information
•Should be structured

Should have:
•Personal Information
•General Information
•Employment record
•Educational background
•Health
•Self assessment
•Declaration

Allocate score to each set of information based on

the desired job responsibility
Interview

An interview can judge

•Common skills
•Personal appearance
•Manners
•Attitude towards selling
•General life
•Reaction to obstacles
•Personal impact on others
Other Dos in an Interview

•Read the application form

•Mark queries
•Plan a strategy for interview
•Present a ppt in case of large group
•Use un-freezing questions
•Maintain pleasant rapport
Who should interview?
Branch head with his assist—initial interview
Shortlist candidate—Reg head or sales chief

How many in the panel?

Depends on type of job
Institutional Sales- Panel recommended
Direct Sales Sales- Sales Manager with his Assist/
HR Rep
Interviewing the spouse

•Check for frequent travelling

•Check for working hours
•Check for independence
Interview Techniques

Patterned Interview

•Have a structured interview

•Job based questions

Non Directive Interview

•Open ended questions

•Seek for narration of personal info, job exp,
skills, strengths, weakness
•Judge based on responses
Interaction (Stress Interview)
Simulate Selling Environment
Set up situation to understand psychological behavior
Need trained psychologists
Rating Scales method
Rate each response in scale of suitability for job.
Physical appearance
Impact on others
Communication
Experience
Attitude
Objections handling skills

This eliminates gender, creed, religion bias.

Credit checks
•Check on credit rating
•Check for large debts
•Check for Financial Responsibility

Psychological tests
The following test can be conducted based on
type of selling assignment

•Sales aptitude test

•Attitudinal tests
•Test for creativity
•Industry knowledge
•Habitual characteristics
•Interest areas
Role Play on Interview
Each team will have to conduct an role play based on
discussion on the following aspects of selecting a front line
sales personnel for service Industry (Telecom Industry) for
handling corporate sales.

The non-directive interview should have the cover the

following aspects:

•Put the candidate at ease

•Find attitude towards selling
•Ability to handle objections
•Candidate’s positive attitude
•Customer friendly attitude

Rate on the above parameters and give your feedback.

Evaluation would be done on the Interviewer.
PLANING SALES
PLANING SALES
TRAINING
TRAINING
Need for Training
•Training is a means to supplement and share
experience
•Reduces initial turn over of Sales personnel

•It replaces the old method of “swim or sink”

Types of Training Programs

•Trg for new recruits
•Re orientation training for existing sales executives
Following are aspects involved in Training programs

A -- Aim
C -- Content
M -- Method
E -- Execution
E -- Evaluation
Aim
•Define job specifications
•Trainee’s background and experience
•Sales related Marketing policies

Content
•Product knowledge
•Sales Technique
•Market Information
•Company profile
Method
•Lecture method
•Personal Conference/ meeting
•Demonstration method
•Role Playing
•Case Study method
•Gaming
•On the job Training
•Programmed Training (self Interactive CD/ Internet)
•Correspondence Course
Execution
Who should conduct program

Initial Trg Program

Continuing Sales Trg
Trg for the Trainers

Training philosophies
Conditioned method
Non conditioned method
When should the Trg be conducted?

After some time in field

Before and after field experience
First Trg and then field
Module of “on the job Trg” in Trg program.
Timing of continuing Sales Trg (Reorientation program)
•New product Development
•Low productivity
•New Market segments approach
•New Product application
•Product Development

Training site
Centralized
•Branch level
•Other venue
Manuals & Training Aid
•Text of the content of Trg program
•Case study
•Exercises
•Product information
•Company profile
•Objection handling tips
 Evaluation of the Training Program
FEEDBACK FORM ON SALES TRAINING TRAINING

Details of the Program___________________ Date:_____________

The Objective of the Feedback is to get an idea of the overall impact and benefit derieved from the program

INSTRUCTIONS FOR FILLING

Mark Tick above the smiling sign depending upon the feedback you want to give

Poor Average Good Outstanding

TICK
CONTENT OF THE
TRAINING PROGRAM

Suggestions

TICK
SCHEDULE OF THE
PROGRAM

Suggestions

TICK
FACILITIES AND
ARRANGEMENTS

Suggestions
TICK
QUALITY OF THE
TRAINER

Suggestions

TICK
ENVIRONMENT FOR
LEARNING

Suggestions

TICK
TIME SPENT ON
CONCEPT AND ROLE
PLAY

Suggestions

TICK
TRAINING MATERIAL
AND AIDS

Suggestions
 MOTIVATING
MOTIVATING
SALES PERSONNEL
SALES PERSONNEL
Most of us need motivation periodically
Few are self starters

What is motivation?
•It is goal directed behavior
•The amount of effort a person is ready to spend
in planning, identifying prospect, sales calls, etc
•The needs and desires to achieve target
Motivation help from Management

Management needs to continuously motivate sales

personnel
Create a good motivated sales TEAM

Reasons for De-motivation

Due to the nature of Sales job

Exhilaration and depression is mixed
Turn downs
Frequent failures
Different customer profile
Face the brunt
Role conflicts
Conflicts of identification with customer company
Advocator of customer’s point of view

Repeated familiar situations

•Same product
•Same Territory
•Same Customers

Maintain feeling of group identity

Make them feel a part of the team
There is a need to be seen as performer in group
A.H Maslow, Motivation and Personality theory

Self
Actualization
Needs

Esteem Needs

Belongingness &
Social Relationship
needs

Safety and Security Needs

Basic Physiological Needs

Achievement Motivational Theory (Self
motivated people)
They like problem situation and like personal
responsibility in finding solutions

•Tend to set attainable goals

•Want feedback on how they are doing
•Can be found by (TAT )Thematic Apperception Test
•They are self driven
•They need right environment to perform
Motivation and Communication
•We need to establish communication with Sales
team
•They could have a real of an imagined problem
•Sales Personnel need freedom of expression

Interpersonal contact
•Meet Sales personnel often personally
•Identify Business or personal problems
•Arrange conferences, Regional meet to hear their
problems
Motivational interviews
•Meet Sales personnel face to face
•Find out their individual need fulfillment
•Gather information bit by bit
•Probe to motivate

Written Communication
Keep the Sales team informed
•Letters
•Bulletins
•Industry information circulars
•New developments
•Performance charts
•Top selling Sales personnel list
SALES BUGETTING
SALES BUGETTING
Budgeting
•Important tool for Revenue and cost control
•Prepared for calendar or financial year
•Further broken down into (monthly, quarterly
yearly)
•Corrective action needs to be taken
•No sales worth enough with no profits
•Monthly Budget monitoring a must
•Paves the road for profitable management of
business
•Budget vs. Actual to be compared & variance identified
General Budget Heads

Sales
Collection

Sales & Marketing Expenses

Employee cost
Production cost
Over Heads/ Operation costs
Depreciation
Interest Cost
Profit value/ percentages
 Budget Format
Quarterly Budget
Apr to Jun
Branches 2-Apr 2-May 2-Jun 02 Total
No. of Copies (000) 90

Product 1 4.0 5.0 6.0 15.0

Product 2 1.5 2.5 5.0 9.0
product 3 0.2 0.3 0.4 0.9
Total Advt. Revenue A 5.7 7.8 11.4 24.9
Collection (Cash Inflow) 2.8 4.0 4.9 9.0 20.7
SALES & MARKETING
A&P 0.20 - 0.10 0.30
Business Promotion -
Commission 0.17 0.23 0.34 - 0.75
Incentive 0.09 0.12 0.17 - 0.37
Customer Relations Mgmt/TelecomCo ordination cost
Market Research
Telemarketing
Teleselling
Provision For Bad Debts 0.09 0.12 0.17 - 0.38
TOTAL SALES & MARKETING AND
PRODUCTION B 0.54 0.47 0.79 1.80
BRANCH EMPLOYEE COST C 0.68 0.68 0.68 2.04
 Arp 02 May 02 June 02 Ap-June Total
Branch Establishment Expenses
Accomodation/ Brokarage (FF) 0.45 0.45
Conveyance 0.03 0.01 0.02 0.06
Deputation Allowance 0.20 0.20 0.20 0.59
Hire Charges 0.04 . 0.04
Miscellaneous Expenses 0.01 0.01 0.01 0.03
Market Allowance 0.13 0.13 0.13 0.38
Newspaper & Periodicals 0.01 0.01 0.01 0.03
Office Expenses 0.04 0.04 0.04 0.12
Office Rent
Postage & Courier 0.03 0.03 0.03 0.10
Printing & Stationery 0.05 0.05
Recruitment Expenses 0.05 0.05
Ttraining & Development Expenses 0.03 0.03 0.03 0.08
Repairs & Maintenance 0.02 0.01 0.03
Telephone & Fax Expenses 0.06 0.04 0.04 0.14
Transit Office Expenses 0.20 0.20
Travelling 0.17 0.10 0.12 0.37
Vehicle Maintenance 0.01 0.01 0.02
Water & Electricity 0.04 0.04 0.04 0.12
Regional Office expences 0.24 0.24 0.24 0.73
Finance Charges

TOTAL OF BRANCH OPERATIONAL COST D 1.80 0.89 0.90 - 3.59

GRAND TOTAL OF SALES & MKT, EMP, BR
OPERATIONAL COST B+C+D 2.48 2.48 2.48 7.43
PROFIT 3.22 5.32 8.92 9.47
SALES TERRITORIES
SALES TERRITORIES
What is Territory Allocation?

“Sales Territory is grouping of customers and

prospects assigned to an individual Sales personnel”
Advantages of Territory Allocation

To achieve better Market Coverage

•Helps fight competition
•Economical routing possible
•Helps in Time Management of the Sales personnel
•Easier for repeat follow up

Control Expenses
•Reduces Travelling costs
•Client servicing cost lowers
•Cost per call ration falls
Helps in Evaluation of Sales Personnel
•Territory specific market potential chalked out
•Actual vs potential can be compared
•Local conditions can be considered

Contributes Morale of the Sales Personnel

•Convenient for Sales personnel to manage
•Reduces Travel fatigue factor
•Avoids inter Sales personnel disputes on accounts
•Finds more time
Co ordination of Personal Selling and Advertising &
Promotional effort
•Helps to keep his customers informed on
promotional plans
•Can have establish feedback on promotion easily
•Territory specific promotions can be planned.
Effective Database management
•Helps maintain and update Territory specific database
•Sales performance territory wise
•Customer behavior Territory wise
Geographic Territory Allocation
Basic shapes of Geographical Territories

•Road wise
•Pin Code wise
•Industrial zone wise
•Major Road and landmark wise
•Major parts of the city
•City wise
•State wise
•Region wise
Territory Allocation Based on Type of Business
(partly Geographic)

•B2B
•B2C
•B2BC
•Trading Area
•Industrial area
•Industrial Traders
•Residential Area
•Commercial Complexes
Territory Allocation Based on market Potential (Non
Geographic)

•List all prime segment based in descending order

of Priority
•Capture database of Segments
•Obtain exact numbers in each segment
•Estimate sales potential based on past
performances in each segment
•Match the profile of Sales personnel and area.
Estimating Target for Sales personnel

•Estimate number of Potential customers

•Pin down assignment base for individual Sales personnel
•Fix conversion percentage for each segment of
the assignment Base
•Project average order Value
•Covert to Sales Target for each Territory
Rules:
•Estimate potential target for area and not Sales
personnel
•This logic will help in changing Territory if needed
•The next Salesmen takes over unachieved part of
Territory