UNIT-4

Sales Promotion:

Meaning and Definition:

Sales promotion refers to ‘those marketing activities that stimulate consumer shows and
expositions.Purchasing and dealer effectiveness such as displays, demonstration and various non-
recurrent selling efforts not in the ordinary routine.” According to A.H.R. Delens: “Sales
promotion means any steps that are taken for the purpose of obtaining an increasing sale. Often
this term refers specially to selling efforts that are designed to supplement personal selling and
advertising and by co-ordination helps them to become more effective.”

In the words of Roger A. Strong, “Sales promotion includes all forms of sponsored
communication apart from activities associated with personal selling. It, thus includes trade
shows and exhibits, combining, sampling, premiums, trade, allowances, sales and dealer
incentives, set of packs, consumer education and demonstration activities, rebates, bonus, packs,
point of purchase material and direct mail.”

Objectives of Sales Promotion:

Sales promotion is a vital bridge or a connecting link between personal selling and advertising.

Sales promotion activities are undertaken to achieve the following objectives:

1. To increase sales by publicity through the media which are complementary to press and poster
advertising.

2. To disseminate information through salesmen, dealers etc., so as to ensure the product getting
into satisfactory use by the ultimate consumers.

3. To stimulate customers to make purchases at the point of purchase.

4. To prompt existing customers to buy more.

5. To introduce new products.

6. To attract new customers.

7. To meet competition from others effectively.

8. To check seasonal decline in the volume of sales.

Importance of Sales Promotion:

The importance of sales promotion has increased tremendously in the modern times. Lakhs of
rupees are being spent on sales promotional activities to attract the consumers in our country and
also in other countries of the world.

Some large companies have also begun to appoint sales promotion managers to handle
miscellaneous promotional tools. All these facts show that the importance of sales promotion
activities is increasing at a faster rate.

Sales Promotion Kinds: Consumer, Dealer and Sales Force Promotion

Some of the major kinds of sales promotion are as follows: I. Consumer sales promotion II.
Dealer sales promotion III. Sales force promotion.

I. Consumer Sales Promotion:

Activities aimed at reaching the consumer at his home or in his office may be called consumer
sales promotion. It is aimed to inform or educate the consumers and to stimulate the consumers.
Success in sales depends on consumers’ co-operation. Consumer sales promotion increases the
use of product by the consumers, attracts new customers and stands straight among the
competitors, to introduce new products and to promote established products.

The following are the various sales promotion schemes used at the consumers’ level:
1. Sampling:
Free samples are given to consumers to increase their interest in the product. They are also given
to introduce a new product and expand the market. It increases the sales volume when the
product is a new one to the customers. It is an effective device when the product is purchased
often, e.g., soaps, detergents, tea or coffee etc.

It is a method of demand creation. Sampling gives a chance to the consumers to compare the
products with other substitutes. Samples are given to doctors by medical representatives.
Specimen copies of books are given to professors. The idea behind this is that they recommend
their products for use to patients or students.

The samples may be delivered door to door, sent by mail, picked up in a store, attached to
another product etc. It is the most effective way to introduce a new product. It is costly to
produce a sample. It is the most expensive method. It is costly to distributors also. It is not
justifiable for well-established product, a product with slow turnover, a product having less
profit, perishable products etc.

2. Coupons:
Coupons are supplied along with a product. It is a certificate that reduces prices. Coupons can be
mailed, enclosed in the packets or printed in the advertisements. The purpose is to attract the
customers and bring them to a particular shop to increase the sales of a particular brand.

The coupons are used:

(1) to introduce new products,

(2) to increase the sale of an established product,

(3) to sell new and larger size of a product,

(4) to encourage repeated sales, and

(5) to switch on consumer from one brand to another brand. It is a short-run stimulus.
3. Demonstration:

It is the instructions to educate the consumers in the manner of using the product. It is a
promotional tool to attract the attention of the consumers. When products are complex and of a
technical nature, demonstration is necessary, e.g., computers, field machinery, electrical
pumping set etc. Demonstration is done in front of consumers for mix, wet grinder in retail shops
etc.

Further examples:
Demonstration at retail shops:
Sometimes, the demonstrations are organised at the retail stores by company salesmen for the
benefit of retailers as well as consumers.

School Demonstrations:
When the products happen to be a costly one and a hi-tech one, companies arrange
demonstrations in schools or hotels. Here the consumers are invited to a particular place and
demonstrations are arranged.

Door-to-door Demonstrations:
Consumer products companies quite often resort to house- to-house demonstrations. It is
considered a highly specialized field of sales promotion. Eureka Forbes, the consumer appliances
firm etc. popularized their products through door-to-door demonstrations. Demonstrations to key
people: Sometimes, demonstrations are organised for the benefit of key people and influential
persons. It is a good selling technique.

4. Contests:
These are conducted to attract new customers or to introduce new products. The consumers are
asked to state in a few words why they prefer a particular product. To enter into the contest, the
consumers must purchase a product and submit the evidence (a label or package or a card
attached to the product) with the entry form for contest.

To take part in the contest the consumers must be interested in the product. Consumers’ skill and
their ideas are tested and the prize is given to the best entry. It stimulates sales at the retail level.
Entry forms correctly filled are submitted to the panel of judges. They will select the best and
prizes will be given to the successful consumers. Like contest, sweepstakes and games are also
employed in sales promotions, and prizes are offered to the winners.

5. Money Refund Offers:

If the purchaser is not satisfied with the product, a part or all of the purchaser’s money will be
refunded. It is stated on the package. It will create new users and strengthen the brand loyalty.
Sometimes, the money will be refunded if 10 top covers or 10 empty bottles or 10 packages are
sent back to the manufacturers.

6. Premium Offers:
It is a temporary price reduction which increases the instinct of the buyers. Products are offered
free or at a reduced cost as an inducement for purchasing. It is offered to consumers for
consumer goods like soap, brush, paste, washing powder, glucose etc. For instance, when the
customer buys two soaps, a soap box is given free along with the soaps. The soap box is a
premium. In certain cases, the price is reduced. The reduced amount is a premium.

There are many types of premium offers:

(a) Direct premium

(b) A reusable container

(c) Free-in-mail premium

(d) A self-liquidating premium

(e) Trading stamps.

(a) Direct Premium:

A with-pack premium accompanies the product inside (in pack) or outside (on-pack) the package
e.g., one plastic spoon in Taj tea or one steel spoon inside glucose-D or Cadbury sweets inside
the bourn-vita refill pack etc.

(b) A Reusable Container:

It is a container which can be reused after the product is used. Point soap powder, sway soap
powder etc. are in plastic buckets or plastic containers.

(c) Free in Mail Premium:

Premium items are sent by the company by mail to consumers who are requested to send the
proof of their purchase. For instance cigarette companies offer a packet of 10 cigarettes against
10 empty covers.

(d) A Self-liquidating Premium:

It is an item sold below its normal retail price to consumers. The cost of the additional product is
collected from the buyer at a concessional rate. For instance, a steel tumbler is given free of cost
if you buy a packet of 200 gms of sunrise instant coffee; or a soap powder manufacturer offers
two kilograms of soap powder along with a plastic bucket at 50% off price. This method
increases sales and brings benefits.

(e) Trading Stamps:

It is given for purchasing the product in a particular shop. It is a premium given to the consumers
by the seller in the form of stamps. These stamps are redeemable at the stamp redemption
centres. To attract customers the retail shops use trading stamps.

7. Price off Offer:

It stimulates sales during a slump season. It gives a temporary discount to the consumers, i.e.,
goods are offered at a rate less than the labelled rate. Fans are sold at a reduction rate in rainy
season.

8. Consumer Sweepstakes:
Consumers submit their names for inclusion in a list of prize-winning contest. A ticket (like a
lottery ticket) is given to the consumer of a specific brand. At the specified time, lots will be
drawn. The prize-winner gets the prize. This system is followed by retail businessmen to
promote sales.

9. Buy-back Allowance:
Allowance is given following a previous trade deal. That is, trade deal offers a certain amount of
money for new purchases based on the purchased quantity. It prevents decline in post-trade deal.
Buyers’ motivation is increased because of their cooperation on the first trade deal, e.g., when
cinthol and marvel soaps are concerned, the salesmen give one mug and two coupons free. If we
purchase the two soaps by giving the coupons to the shop, the seller will reduce Rs. 2/- from the
original price.

10. Free Trials:

It consists of inviting prospective purchasers to try the product without cost, in the hope that they
will buy the product. Thus, buyers are encouraged by free trial to stimulate purchase interest.

II. Dealer Sales Promotion:

The other name for dealer promotion is trade promotion. Manufacturers use a number of
techniques to secure the co-operation of wholesalers, retailers or the middlemen. These activities,
which increase the interest and enthusiasm of dealers and distributors, are called dealer or
distributor sales promotion. It is the middlemen who are important persons for the fast
movements of products. Hence this must be offered with some incentive.

Following are the dealer sales promotion devices:

1. Buying Allowance:
It is an offer of money off or temporary reduction to dealers for purchasing in stipulated period
of time. It is a very effective method to introduce new products in the market. It encourages the
dealers to buy a quantity that they will not buy in ordinary time. This buying allowance gives the
dealers immediate profit, and price redemption. A wet grinder producer will give one grinder
free if one purchases five wet grinders at a time.

2. Merchandise Allowance:
An advertising allowance is given to the dealers for advertising the features of the
manufacturer’s product. A display allowance is given to them for arranging special displays of
the product. After verifying the promotional work of the dealer, the manufacturers will give a
certain amount of money for promotional activities.
They hope that additional efforts will be taken to increase the sales at retail level. Some
manufacturers, as an encouragement, offer additional quantities of merchandise. This technique
is known as merchandise deal e.g., Godrej company offers the dealers one extra soap cake, free
of cost, when one purchases a dozen soap cakes.

3. Price Deals:
Apart from the regular discount, special discounts are also allowed to the dealers for a specified
quantity of purchase. This special discount is over and above the regular discount. For instance, a
regular discount of Rs. 10 per case is allowed; and if the dealer purchases 100 cases at a time, he
will be given a discount of Rs. 12 per case, i.e., Rs. 200 extra for the purchase of 100 cases.

4. Push Money or Premium:

Manufacturers may offer push money. It is a payment in cash or gifts given to dealers or to their
sales force to push the manufacturer’s product. To push his brand, the manufacturer will offer
free specialty items that carry company’s name, such as pens, pencils, calendars, match boxes,
memo pads and yard sticks etc. This is a device for aggressive selling.

5. Co-operative Advertising:
Dealers spend money in advertising manufacturer’s product with the consent of the
manufacturers. The dealer can claim an allowance by giving the proof of the advertisement. This
is an indirect advertising for the manufacturer. It will increase the sales of the manufacturer’s
product. But it is a burden on the manufacturer’s budget.

6. Dealer Sales Contests:

This is an indirect way of boosting the sales. This type of contest is conducted at the level of
retailers and wholesalers. This is in the form of window display, store display, sales (volume)
etc. Prize is awarded to the outstanding achievements. This method is aimed at stimulating and
motivating distributors, dealers, sales-staff etc.

7. Dealer’s Listed Promotion:

Listing dealer is an advertisement. It gives a list of dealers or retailers who stock the product or
who are engaged in its promotion. For example, the advertisement of Bombay Dyeing in
newspapers carries the names of the stockiest of their products. The consumer can buy the
product from anyone of the listed dealers. This method induces the dealers to stock the products;
and the consumers are encouraged to buy the products from the listed dealers.

8. Dealer’s Gift:
Manufacturers give attractive and useful articles to dealers against their order. The articles are
transistor, radio, television set, clock, watch etc. Some manufacturers offer free holidays family
tours to dealers who place more orders. Ralli Fan Co., arranges for free holidays tours to those
who sell the maximum fans in a year.

9. Point-of-purchase:
This plays the role of silent salesman. Point-of-purchase is also known as dealer-aids, dealer
displays, and dealer hopes etc. The competition among the retailers or traders has encouraged
point-of-purchase advertising, which is a significant method for sales promotion. It means
advertising at the point of purchase by the consumers.

It is generally at the level of retailer’s shop. For instance floor displays, stands, overhead signs,
wall signs, posters etc., are examples of point-of-purchase materials. Again, it may be exterior or
interior items. Exterior items like banners, displays are utilized by firms like service station.

Interior items like floor display, end of counter displays, displays at walls, shelves, hanging from
ceiling etc. are found in the store. Retailers adopt this method to draw the attention of customers
and create an interest in the minds of the prospects. This method is suitable for consumer goods
as well as industrial goods.

III. Sales Force Promotion:

As dealer and consumer promotion, the sales force promotion also is a necessary one. The
activities of sales force must be induced. In the channel of distribution the role of salesman is
very important. The idea of sales force promotion is to make the salesman’s effort more
effective.

The tools for sales force promotions are:

1. Bonus to Sales Force:
The manufacturer sets a target of sales for a year. If the sales force sell the products above the
targeted sales, bonus is offered to them. This is an encouragement incentive given to the sales
people to sell more products—to cross the quota or targeted sales.

2. Sales Force Contests:

To increase the interest and efforts of sales by sales force over a specified time, these contests are
announced. The prizes are given to the salesman who secures the maximum sales in sales
contests. Thus it stimulates the salesmen to sell more products.

3. Salesmen Meetings and Conferences:

The idea behind these is to educate, inspire and reward salesmen. Encouragement is given to
them during the discussion. New selling techniques are described to them and discussed in the
conference.

Recruitment of Salesperson
The recruitment of salesperson shall start with the task of determining the number of people to be
inducted into the organization.
The number of salespersons required will depend upon such factors as the number of customers
(existing and potential), the number of times the customers need to be contacted and the time
required, etc. It is important that the organization has the right number of salespersons. The
number shall neither be more nor less.

The next step is to specify the authority and responsibility associated with the salesperson’s job.
This is what is known as job description. The functions to be performed by the salespersons will
have to be specified.
As the third step, the requirements of the job should be made clear. That is, the qualification
necessary to carry out the job has to be prescribed. This is what is known as job specification.
The qualification for different categories of salespersons, i.e., indoor salespersons, service
salespersons, traveling salespersons, etc., will have to be determined.
Sources of recruitment of salespersons
The following are some of the sources of recruitment of salespersons.

1. Recruitment of Salespersons from among the existing employees

Preference may be given to the existing employees of the concern. Employees working in other
departments may be considered if they possess the desired qualification, aptitude and attitude for
a sales career. Some of the advantages of selecting from within the organization are:

1. They can be easily assessed, as their service records are already available.

2. Such people are supposed to be more loyal and sincere.

3. The initial training to be given (called induction training) is not necessary as they are already
familiar with the organization.

4. Better control can be exercised over their activities as they are not strangers. To quote the
proverb here ‘known devil is better than an unknown angel will be more appropriate.

5. As the person is already an employee of the concern, he need not be paid a very high
remuneration.
Limitations of selecting salespersons from within organization
Selection from within the organization has certain limitations too. These are

1. People without any aptitude for selling may get selected.

2. As the selected persons are already employees of the same concern, they may adopt a
casual approach towards the work.
3. Such a method prevents dynamic youngsters, from outside the concern, from getting
selected.
2. Recruitment of Salespersons through Newspaper advertisements
The vacancy may be notified by way of newspaper advertisements. The nature of work, the
qualification expected, previous selling experience, salary offered, etc., will be usually specified
in the advertisement itself. Interested persons may be asked to apply along with their bio-data
within a stipulated time. Job seekers also advertise in newspapers. The employer may keep the
particulars of such individuals and inform those who are found good.

3. Recruitment of Salespersons through Employment exchanges

The Government run employment exchanges may be contacted in this regard. The employer may
request such employment exchanges to furnish a list of eligible candidates. There are also private
employment consultants and bureaus that provide valuable information on such matters.

4. Recruitment of Salespersons through Campus interviews

Another popular method of recruitment these days is what is known as ‘campus interview’. By
this it is meant that the employers will visit colleges and universities at a particular period of
time every year and interview the students studying certain degree courses. Usually, the eligible
final year students will be interviewed. Those found suitable will be given the placement orders
immediately. Such selected persons can join the concerns after completing their degree course.

5. Recruitment of Salespersons from competitors

Salespersons working for the competitors may be lured with better perquisites. The ethics in such
a practice has been a matter of controversy. The advantage of such an approach is that the
salespersons selected are already well versed in the particular line of business and therefore can
perform their work more effectively. Such people do not require much training. But the
drawback of such an approach is that the salespersons may not be loyal. If some other
businessman tempts them with even greater perquisites, they may ditch the present employer and
go.

6. Recruitment of Salespersons from unsolicited applications

Renowned organizations receive a number of applications frequently from the unemployed
graduates although the concern has not called for applications. The personnel department of the
concern may maintain a record of all such applications for future consideration. Any candidate
found suitable may be informed when a vacancy arises.

7. Recruitment of Salespersons by recommendation

Another important source of recruitment is that the employer may be informed of a suitable
candidate for a job in the concern.
Such a recommendation may come either from an employee of the organization or from any
friend or relative of the employer.

Sales Aptitude Test

There are many different types of roles in sales, retail, face to face, insurance or financial
services salespeople, sales managers, directors and more. Whilst the aptitude tests for sales
people may differ according to the roles you are applying for, the psychometric tests will usually
focus on personality or situational judgement tests.

Sales Skills

As someone working in sales you need to have good interpersonal skills. You need to be able to

read your customers, understand their needs, and find a way to sell them what they want to buy.

Below is a list of just some of the skills that salespeople need to be strong in. The key to the

skills you will need in any given job will be explained in the job description.
Confident and resilient Out going and likable Building relationships

Customer focused Team work Tenacity and persistence

Strong negotiation skills Flexibility and innovation Goal driven (but realistic)

Commercial awareness Responsive to change Good communicator

Sales Job Interview

Many people like to compare interviews for sales jobs to an actual sale itself where you are the
product you are trying to sell. In that vein, when preparing for a sales interview, think about what
are your biggest “selling points” or your competencies. Sales interviews tend to focus on
competencies and our competency-based interview question tips offer lots of great ways to
tackle these questions.

What Questions Will Be Asked at a Sales Job Interview?

 Tell me about yourself.

 Why do you want to work in sales?

  What motivates you to sell?

Sales Personality Tests

Personality forms a big part of any sales job description. As a result many employers require
personality tests as part of their application processes. The aim of a sales personality test is to see
who will be a successful salesperson. The personality test provides your company with
information about the different aspects of your behaviour and how they will impact on your
ability to achieve the competencies required of you. In order to make them as valuable as
possible, personality tests are usually designed in accordance with the requirements of the role,
job description and employer you are applying to. Personality questionnaires do not have right or
wrong answers, they are a measure of the fit of your personality to an ideal picture.

How to Prepare for a Sales Personality Test

Personality questionnaires do not have right or wrong answers, they are a measure of the fit of
your personality to an ideal picture. When preparing for a personality test there are several things
to do:

 Before you start, think about what the employer is looking for in employees. This is
usually found in the job description and company values.

 When taking the test you need to “put your work hat on”, and answer questions as though
you are already in this job.

 Be truthful in your answers, don’t try to answer based on what you think the employer
wants to see.

The best way to prepare is by taking a practice personality test. Use our expert preparation
materials to really ace the test.
Sales Situational Judgement Tests : Situational judgement tests are another type of
psychometric test looking at how you respond in a work setting. In this type of test you are
presented with a scenario based on everyday work situations, and asked to assess the best
response to the scenario or to judge whether a given response was appropriate or not.Employers
of sales staff want to assess how you respond to situations when you are in the middle of them.
They want to know how good you are at judging the correct course of action when things do not
go your way. A sales situational judgement test will usually contain sales scenarios such as
difficult customers, strong negotiations or changing requirements.

Sales Aptitude Tests : Alongside the sales personality and situational judgement tests you are
often asked to sit some reasoning or aptitude tests. The sales aptitude tests you can expect will
depend on the job you are applying to. Here are some of the common sales aptitude tests
explained.

Verbal reasoning - salespeople need to be able to communicate with customers, as well as

understand information presented in written formats. The type of verbal aptitude test you will
take will depend on the role and sector you are applying to.

Numerical reasoning - the ability to understand sales sheets is a key part of your role as a
salesperson, as is the need to make numerical calculations quickly. In the numerical reasoning
tests you are asked questions that will examine your ability to make these calculations quickly
and accurately.
Abstract reasoning - abstract reasoning is a non verbal logic test. You are tested on your ability
to interpret patterns and come to logical conclusions using information based on shapes rather
than words or numbers. The aim of this test is to examine how you see patterns and put
information together.

Error checking - attention to detail is key in sales positions. Error checking tests such as those
provided by CEB’s SHL and Saville Consulting ask you to check over data for errors.

Sales-Force Training: Significance and Contents of Good Training Programme

With the selection of candidates, the responsibility of the sales manager further increases. More
posing, intricate and head cracking responsibility is that of training the selected sales-force.

Training of sales-force is not something that is thrown upon the sales organisation as a
superficial and unwanted thing. Training is basic need of every organisation as it is thickly
interwoven in the fabric of unit irrespective of its size and nature.

Sales-force training
Training is that continuous process which has four elements namely, telling the salesmen,
showing them, letting them do it and checking their doing and making sure that they are up to the
expectations.

Sales training is that responsibility of a sales manager that eats away the laxities and fills the
cavities of a potential salesman and gives a finishing touch to make them more supple, suitable
and able, for the sales- line responsibilities. Training is a programmed learning of the tricks of
the trade.

Significance of Sound Sales-Force Training:

Learning the things by experience means learning by trial and error or hit and misses approach.
However, training replaces such costly and time- consuming learning by programmed learning in
which accumulated experience is shared by the veterans. It is a deliberate effort and acts as a
substitute for so called ‘experience’.

The merits of training lie in the following points:

1. It improves sales performance:
Better and improved understanding of market forces, company policies, product knowledge and
the knowledge of the customers and the knowledge and the use of selling techniques enable him
to handle customers with full confidence. This results in improvement of his sales performance
and profitability of the firm.

2. It minimizes the turnover of sales-force:

In any organisation, new sales-force turnover rate is much higher than the seasoned sales-force.
It is because, they feel themselves misfits for the jobs, become unnerved and get divorced from
the company. It is sales training that builds-up his knowledge, skills and confidence thus
retaining them in the line longer.

3. It improves his understanding and behaviour:

Sound training is one that imparts deeper and sounder understanding of company its past, present
and future as to philosophy, policies, and the procedures. This makes him aware of what is
expected of him in terms of performance and, therefore, behaviour.

He is made to match to the pattern of behaviour suitable for the firm’s growth and, therefore, his
growth and prosperity.

4. It curbs wastages:
A trained salesman is likely to cause least waste as he is capable of handling goods and
belongings with utmost care and caution. Trained salesmen are self-starters and look down upon
the supervision.

It is the untrained who waste much of their valuable time because; they are unaware of its
importance. The wastage of time, efforts and products are nipped in the bud by a comprehensive
training programme.

5. It guarantees sound employer-employee relations:

Trained salesmen bring increased sales and improved sales performance giving company the
desired turnover and profits. When company earns well, it pays well. This guarantees sound
relations, no resignations, no bickering and no clashes. There prevails high employee morale
manifested in the form of reduced employee turnover, increased sales, increased profits,
improved amity, and job-satisfaction. High employee morale has its salutary impact on its image
and its further refinement.
Contents of Good Training Programme:
Training programme is designed for sales-force on the basis of the experience gained by the sales
executive, nature of the job and the difficulties encountered by the sales-force. A training
programme is the detailed training material with emphasis on difficulties faced by the salesmen.

Therefore, a well-organized training programme cannot be improvised overnight as it calls for

number of tedious tasks of designing it, preparing it, installing it, operating it and evaluating it.

The extent and nature of training imparted varies from firm to firm depending on such factors as
the back-ground and the knowledge of the candidates selected, the nature of jobs, or the specific
selling tasks, nature of type of commodities to be handled, the attitude of sales-executives with
regard to the training procedures and the like. A comprehensive training programme that aims at
generating more sales volume.

Improving knowledge about the history and objectives of the company, its products,
services, policies, procedures and formalities contributing to his personal development and
advancement in the organisation, keeping him interested in the company, should contain
the following:
1. Knowledge of the products.

2. Knowledge of the market.

3. Knowledge of company.

4. Knowledge of selling techniques.

1. Knowledge of products:
Product knowledge is almost inevitable as the very existence of his is conditioned by this.

The product knowledge that he is to have can be lumped under four captions namely:
(a) General information relating to the products:
This covers origin and history research and development undertaken and the major
improvements brought about to suit it to the changing requirements of the customers.

(b) Physical dimensions:

This covers the various dimensions like size, weight, colour, model, place of product in the
product line, method of manufacturing and packaging.

(c) Product performance points:

This covers such points as product features and benefits, ways of getting best results.

(d) The services rendered:

This covers after-sale services rendered such as installation, maintenance, replacements, spare-
parts, demonstrations and the like.

2. Knowledge of market:
Market knowledge is to do with people. That is, consumer behaviour and competitors. Salesman
is to know the details of the company markets their coverage as to a locality, rationality,
nationality and internationality.

He is to have demographic profile of consumers along with psychological, sociological and

economic factors influencing such markets. Another very significant variable is that of
competition.

The salesman is to acquaint himself of competitive forces where he learns as to how to compete
away the business from the strong competitors. He is expected to have clear-cut picture about the
strength and weaknesses of his rivals in the field.

3. Knowledge of the company:

To develop a devoted sales-force with high morale, knowledge of company is a must. This
covers past history ups and downs, current affairs, dimensions of current growth, personnel of
the organization, structural pattern and the policies and strategies, procedures in each area of
sales activity such as purchases, sales-distribution, transportation, warehousing, dealers, credit
and collection public relations, publicity and advertising, consumer complaints and adjustments.
Such information helps the salesmen to identify themselves within and project its image for the
better tomorrow.

4. Knowledge of selling techniques:

Training fills the gaps of inexperience. In case of newly joined salesmen, the sales-supervisors
and the executives who were once upon a time the salesmen, share their experiences of the use of
various techniques of sale mastered by them during their past selling careers.

There is no substitute for such living success stories or even the failures from which the strength
and weaknesses of selling methods and techniques are highlighted. This helps in properly
equipping the salesmen to meet the challenges of ever changing line of sales.

Evaluation of Sales Training Programme:

Periodic evaluation of sales training and training programmes through which it is done are a
must to keep the top management and the sales-force informed of the real value of training.
Further, such evaluation makes possible further improvements in the programme content and the
impact on trainees.

Evidence of training effectiveness is clearly manifested in increased sales volume, lower selling
costs reduced returns inwards, reduced turnover of sales-force and well balanced full-line selling.

The other and more important indicators of satisfactory training are improved employee morale,
interest, goodwill, cooperation and devotion of salesmen. The proofs of improved training can be
traced to salesmen’s records of volume, performance against quota, new accounts opened, new
prospects secured, and size of the unit sales and so on.