Integrated Marketing Communication and Sales Management

UNIT I

What Is Integrated Marketing Communication?

Integrated marketing communication is the the process of coordinating all this activity across different communication
methods. Note that a central theme of this definition is persuasion: persuading people to believe something, to desire
something, and/or to do something. Effective marketing communication is goal directed, and it is aligned with an
organization’s marketing strategy. It aims to deliver a particular message to a specific audience with a targeted purpose of
altering perceptions and/or behavior. Integrated marketing communication (IMC) makes this marketing activity more
efficient and effective because it relies on multiple communication methods and customer touch points to deliver a consistent
message in more ways and in more compelling ways.

Integrated Marketing Communications (IMC) is a concept under which a company carefully integrates and
coordinates its many communications channels to deliver a clear and consistent message. It aims to ensure the
consistency of the message and the complementary use of media.

IMC is an integration of all marketing tools, approaches and resources within a company which maximizes impact
on the consumer mind resulting in maximum profit at minimum cost.

The American Marketing Association defines IMC as “a planning process designed to assure that all brand
contacts received by a customer or prospect for a product, service, or organization are relevant to that person and
consistent over time.” 

The Role of IMC in the Marketing Process

IMC is defined as customer centric, data driven method of communicating with the customers. IMC is the
coordination and integration of all marketing communication tools, avenues, functions and sources within a
company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost.
Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and
messages are carefully linked together.
A. Marketing Strategy and Analysis
Any organization that wants to exchange its products or services in the marketplace successfully should have a
strategic marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an
organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies.

1. Opportunity Analysis
Market opportunities are areas where there are favourable demand trends, where the company believes customer
needs and opportunities are not being satisfied, and where it can compete effectively. Athletic-shoe companies
such as Nike, Reebok, and others see the shoe market as an opportunity to broaden their customer base both
domestically and internationally.

2. Competitive Analysis

1. In developing the firm’s marketing strategies and plans for its products and services, the manager must
carefully analyse the competition to be faced in the marketplace. For example, recently the U.S. market has
seen significant growth in the high-end luxury market, with more consumers spending more of their money
on luxury goods than ever before. High-end products from Coach, Tiffany’s, and Ralph Lauren are all
benefiting from this change in consumer spending habits.
2. This may range from direct brand competition (which can also include its own brands) to more indirect
forms of competition, such as product substitutes
3. An important aspect of marketing strategy development is the search for a competitive advantage,
something special a firm does or has that gives it an edge over competitors

3. Target Market Selection

After evaluating the opportunities presented by various market segments, including a detailed competitive analysis, the
company may select one, or more, as a target market. This target market becomes the focus of the firm’s marketing effort,
and goals and objectives are set according to where the company wants to be and what it hopes to accomplish in this market.
Marketers rarely go after the entire market with one product, brand, or service offering. Rather, they pursue a number of
different strategies, breaking the market into segments and targeting one or more of these segments or marketing and
promotional efforts. This means different objectives may be established, different budgets may be used, and the promotional-
mix strategies may vary, depending on the market approach used.

B. The Target Marketing Process

Because few, if any, products can satisfy the needs of all consumers, companies often develop different marketing
strategies to satisfy different consumer needs. The process by which marketers do this is referred to as target
marketing and involves four basic steps: identifying markets with unfulfilled needs, segmenting the market,
targeting specific segments, and positioning one’s product or service through marketing strategies.

Identifying Markets
Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our
knowledge of their specific requirements. The more marketers can establish this common ground with consumers,
the more effective they will be in addressing these requirements in their communications programs and informing
and/or persuading potential consumers that the product or service offering will meet their needs.

Market Segmentation
The segmentation process involves five distinct steps:

1. Finding ways to group consumers according to their needs

2. Finding ways to group the marketing actions—usually the products offered
3. Developing a market-product grid to relate the market segments to the firm’s products or actions
4. Selecting the target segments toward which the firm directs its marketing actions
5. Taking marketing actions to reach target segments

Segmentation can be done on the basis of:

 Geographic location
 Demographic attributes
 Psychographic attributes
 Behavioural attributes

Selecting a target market

The next objective is to select the segment of the consumers which you want to target. Three market coverage
alternatives are available. Undifferentiated marketing involves ignoring segment differences and offering just one
product or service to the entire market. Differentiated marketing involves marketing in a number of segments,
developing separate marketing strategies for each. Concentrated marketing is used when the firm selects one
segment and attempts to capture a large share of this market.

Market Positioning
Positioning has been defined as “the art and science of fitting the product or service to one or more segments of the
broad market in such a way as to set it meaningfully apart from competition.” Positioning strategies generally
focus on either the consumer or the competition.

Developing a Positioning Strategy: To create a position for a product or service, managers must ask themselves six
basic questions:

1.       What position, if any, do we already have in the prospect’s mind?

2.          What position do we want to own?
3.       What companies must be outgunned if we are to establish that position?
4.       Do we have enough marketing money to occupy and hold the position?
5.       Do we have the guts to stick with one consistent positioning strategy?
6.       Does our creative approach match our positioning strategy?
C. Developing the marketing planning program

The development of the marketing strategy and selection of a target market(s) tell the marketing department which
customers to focus on and what needs to attempt to satisfy. The next stage of the marketing process involves
combining the various elements of the marketing mix into a cohesive, effective marketing program. Each
marketing-mix element is multidimensional and includes a number of decision areas. Likewise, each must consider
and contribute to the overall IMC program.

1. Product decisions

An organization exists because it has some product, service, or idea to offer consumers, generally in exchange for
money. This offering may come in the form of a physical product (such as a soft drink, pair of jeans, or car), a
service (banking, airlines, or legal assistance), a cause (United Way, March of Dimes), or even a person (a political
candidate). The product is anything that can be marketed and that, when used or supported, gives satisfaction to the
individual. The term product symbolism refers to what a product or brand means to consumers and what they
experience in purchasing and using it.

2. Price Decisions

The price variable refers to what the consumer must give up to purchase a product or service. While price is
discussed in terms of the dollar amount exchanged for an item, the cost of a product to the consumer includes time,
mental activity, and behavioural effort. From an IMC perspective, the price must be consistent with the perceptions
of the product, as well as the communications strategy. Higher prices, of course, will communicate a higher
product quality, while lower prices reflect bargain or “value” perceptions.

3. Distribution Channel Decisions

One of a marketer’s most important marketing decisions involves the way it makes its products and services
available for purchase. A firm can have an excellent product at a great price, but it will be of little value unless it is
available where the customer wants it, when the customer wants it, and with the proper support and service.
Channel decisions involve selecting, managing, and motivating intermediaries such as wholesalers, distributors,
brokers, and retailers that help a firm make a product or service available to customers. The distribution strategy
should also take into consideration the communication objectives and the impact that the channel strategy will
have on the IMC program.
Role of Advertising and Promotion

Marketers use the various promotional-mix elements—advertising, sales promotion, direct marketing,
publicity/public relations, and personal selling—to inform consumers about their products, their prices, and places
where the products are available. Each promotional mix variable helps marketers achieve their promotional
objectives, and all variables must work together to achieve an integrated marketing communications program. The
development and implementation of an IMC program is based on a strong foundation that includes market
analysis, target marketing and positioning, and coordination of the various marketing-mix elements.

Promotion mix is a combination of various marketing techniques, oriented to acquire a common target. It provides
a structure for budget allocation for different elements of the promotional mix.

Some elements of promotional mix are as follows −

 Advertising
 Sales promotion

 Public relations and publicity

 Personal selling

 Direct marketing

 Type of product market

 Overall marketing strategy

 Buyer readiness stage

 Product life cycle stage

 The Foundation - As the name suggests, foundation stage involves detailed analysis of both the product as well
as target market. It is essential for marketers to understand the brand, its offerings and end-users. You need to
know the needs, attitudes and expectations of the target customers. Keep a close watch on competitor’s activities.

 The Corporate Culture - The features of products and services ought to be in line with the work culture of the
organization. Every organization has a vision and it’s important for the marketers to keep in mind the same before
designing products and services. Let us understand it with the help of an example.

Organization A‘s vision is to promote green and clean world. Naturally its products need to be eco friendly and
biodegradable, in lines with the vision of the organization.

 Brand Focus - Brand Focus represents the corporate identity of the brand.

 Consumer Experience - Marketers need to focus on consumer experience which refers to what the customers
feel about the product. A consumer is likely to pick up a product which has good packaging and looks attractive.
Products need to meet and exceed customer expectations.

 Communication Tools - Communication tools include various modes of promoting a particular brand such as
advertising, direct selling, promoting through social media such as facebook, twitter, orkut and so on.
 Promotional Tools - Brands are promoted through various promotional tools such as trade promotions, personal
selling and so on. Organizations need to strengthen their relationship with customers and external clients.

 Integration Tools - Organizations need to keep a regular track on customer feedbacks and reviews. You need to
have specific software like customer relationship management (CRM) which helps in measuring the effectiveness
of various integrated marketing communications tools.

Integrated Marketing Communication Components

Communication process
Step 1: Know your target audience
as a general rule, there is no “general audience”. You always want to communicate with a specific audience to
make the most effective use of your resources.

Segmenting specific audiences into groups based on characteristics will help you identify who are most likely to
purchase or utilize your products and services.

Step 2: Develop a situation analysis

commonly referred to as a SWOT Analysis, this is basically a structured method of evaluating the internal
strengths and weaknesses, and external opportunities and threats that can impact your brand.

A situation analysis can provide much insight into both internal and external conditions that can lead to a more
effective marketing communications strategy.

Step 3: Determining marketing communication objectives

in this step, you basically want to document what you want to accomplish with your IMC strategy. Objectives
should be measurable if you truly want to map your campaign’s effectiveness at the end of your plan’s term.

Step 4: Determining your budget

having a realistic idea on what you have to work with is important as it will shape the tactics you develop in the
next step. Once you determine your overall budget, you will want to come back to this after completing step five to
further refine your budget allocations.

Step 5: Strategies and tactics

looking back at the objectives you created in step three, you will want to develop strategies which are ideas on how
you will accomplish those objectives. Tactics are specific actions on how you plan to execute a strategy.

Step 6: Evaluation and measurement

Almost as important as the plan as a whole, you want to outline a method of how you will evaluate the
effectiveness of your IMC strategy. Sometimes elements of your plan will not work. It’s important to know what
did or didn’t, try to understand why, and make note for future planning.

The more focused on how you will utilize your resources for promoting your business, the more you will
understand where you money is going and how it’s performing. An IMC strategy is important for any business or
organization.

Steps involved in developing IMC programme

1. Identify Different Marketing Communication Methods

As part of your integrated marketing strategy, it's imperative to determine the various marketing communication
methods you want to leverage as part of your plan. Consider your target audience and how they like to receive
information, gather facts, and perform research on the problem they are trying to solve. From there, determine
what channels are most relevant for your specific campaign. Some examples include:

a. Content Marketing: Make your content available online through blog content, video marketing, premium
content (behind a landing page to capture information), pop-ups, and dynamic website content to help your
potential buyers connect and learn more about you even before they start the decision-making process.

b. Email Marketing: Use email to re-engage your existing audience through unique and helpful content. Always
consider your existing contacts and how you can re-engage them through content. It's not always about generating
new leads, but oftentimes your most impactful marketing efforts come from delivering the right content at the right
time to your existing subscribers. Here is a helpful case study about how you can drive growth and see tremendous
impact through email marketing.

c. Social Media Marketing: Social media opens the door to building relationships, developing brand awareness,
and generating website traffic. When combined with email marketing and content marketing, digital marketing
campaigns utilizing social media can truly bring exceptional results by connecting with your target audience on a
platform they are already spending time on regularly. Here is another helpful case study about driving lead
generation and content results through social media.

2. Develop a Marketing Communication Plan

Once you have determined the marketing channels that are going to resonate with your audience, it's time to
develop a comprehensive plan to execute on your marketing initiatives. To do this, you need to focus on three
primary items:

a. Audience: Determine the buyer persona for each of your marketing methods. For example, if one of your
personas are baby boomers, consider email marketing and Facebook. If your other persona is millennials, consider
texting and Instagram. Your persona is going to define what channels you use to engage with them, not the other
way around. 

b. Content: Define the content that will speak to your audience the most effectively. For example, if you are trying
to generate new contacts for your database, you may want to have a top-of-the-funnel offer such as subscribing to a
newsletter, or downloading a checklist on your site. Pro Tip: You can even have this as a pop-up form that
displays when people are exiting your site. This gives you one last way to connect with them. You would be
surprised how well these work. I have seen conversion up to 17% on pop-up forms. If you are trying to drive
re-engagement in your database to convert existing leads into opportunities, consider delivering them case studies,
video testimonials, and more. This will aid them in their decision-making process.

c. Cadence: It's important to understand how often people like to receive information. You can get this data from a
variety of marketing automation platforms. For example, in HubSpot we can see how often people read emails,
engage on the website, and even on social media. We can use that information to ensure we are sending content
frequently enough, but not too frequently that it becomes overwhelming for the prospect.  If you see that for a
specific product or service you offer, the general sales cycle is around 90 days, you want your email cadence to
align with that timeframe. Use the data available to you to make the best decision based on your audience and how
often they engage with your brand.

3. Understand the Customer Decision-Making Process

Understand what makes customers decide to buy a product or service, and then discover why they would decide to
buy from you. The important thing here is understanding the problem you are solving for them, and how to help
them in that decision journey.  You will notice that some customers use an extended decision-making process, but
others use low levels of involvement to make limited, nominal, or spontaneous decisions. It all depends on your
business and what you sell. If it's a consumer item that is a low price point, your timeframe will be shorter. If you
are selling B2B software, it's likely longer due to the number of people involved. Most customer decisions follow a
basic pattern while involved in a particular situation that could result in a sale. This is called the Decision-Making
Process, and the following is an example that outlines the process.

4. Implement Your Marketing Communication Plan

Now it's time to implement your plan and see the results. Here are some steps to help you do just that.

a. Calendar: Make sure that you are using a calendar to know what content is being sent at what time to prospects,
and on what channel. This will help you organize your campaign assets and communicate with your prospects at
the right place and time in their decision-making journey.
b. Automation Software: In order to do this at scale, you are going to need some type of marketing automation
software that aligns with your CRM so you can see the full sales process. By using software to help you implement
your program, you can most effectively reach your audience and present an integrated, seamless, and consistent
message to them on a variety of channels with ease

c. Analyze: To help make your marketing communication strategy comprehensive and results-driven, continue to
monitor the needs of your prospects, focusing on the capabilities of your product or service that solve their
problem, and generating audience excitement. You can do this through monitoring engagement with your
campaigns, email open rates and click rates, social interactions, requests to speak with sales, and ultimately the
closed deals. Here is a helpful blog article about inbound marketing analytics to get you started.

d. Stay on Top of Trends: Always stay ahead of the curve to find new ways to make your marketing
communication strategy different from your competitors, so your communication efforts contribute to the value of
your brand. There are constantly new tools and tactics introduced to the marketing industry. Make sure you know
what may add value to your integrated marketing communications strategy so you can test new tools and strategies
that may align with your target audience.

Purpose of IMC
1. To develop brand awareness
2. To increase consumer or business demand for a product category
3. To change or influence customer beliefs or attitudes
4. To enhance purchase actions
5. To encourage repeat purchases
6. To build customer traffic to physical stores, websites or other marketing channels
7. To enhance firm/brand image
8. To increase market share
9. To increase sales
10. To reinforce purchase decisions

Types of IMC
1. Advertising

Advertising is one of the most effective ways of brand promotion. Advertising helps organizations reach a wider
audience within the shortest possible time frame. Advertisements in newspaper, television, Radio, billboards help
end-users to believe in your brand and also motivate them to buy the same and remain loyal towards the brand.
Advertisements not only increase the consumption of a particular product/service but also create brand awareness
among customers. Marketers need to ensure that the right message reaches the right customers at the right time. Be
careful about the content of the advertisement, after all you are paying for every second.

2. Sales Promotion

Brands (Products and services) can also be promoted through discount coupons, loyalty clubs, membership
coupons, incentives, lucrative schemes, and attractive packages for loyal customers, specially designed deals and
so on. Brands can also be promoted effectively through newspaper inserts, danglers, banners at the right place,
glorifiers, wobblers etc.

3. Direct Marketing

Direct marketing enables organizations to communicate directly with the end-users. Various tools for direct
marketing are emails, text messages, catalogues, brochures, and promotional letters and so on. Through direct
marketing, messages reach end-users directly.
4. Personal Selling

Personal selling is also one of the most effective tools for integrated marketing communication. Personal selling
takes place when marketer or sales representative sells products or services to clients. Personal selling goes a long
way in strengthening the relationship between the organization and the end-users.

Personal selling involves the following steps:

1. Prospecting - Prospecting helps you find the right and potential contact.
2. Making first contact - Marketers need to establish first contact with their prospective clients through emails,
telephone calls etc. An appointment is essential and make sure you reach on time for the meeting.
3. The sales call - Never ever lie to your customers. Share what all unique your brand has to offer to customers. As a
marketer, you yourself should be convinced with your products and services if you expect your customers to invest in
your brand.
4. Objection handling - Be ready to answer any of the client’s queries.
5. Closing the sale - Do not leave unless and until you successfully close the deal. There is no harm in giving
customers some time to think and decide accordingly. Do not be after their life.

5. Public Relation Activities

Public relation activities help promote a brand through press releases, news, events, public appearances etc.The
role of public relations officer is to present the organization in the best light.

6. Mobile Marketing

Mobile marketing involves communicating with the consumer via a mobile device, either to send a simple
marketing message, to introduce them to a new participation-based campaign or to allow them to visit a mobile
website.

Cheaper than traditional means for both the consumer and the marketer, mobile marketing really is a streamlined
version of online marketing the use of which is increasing as time progresses. Examples are advertisements that we
see on mobile applications.
7. Events and Experiences

These are company sponsored activities and programs designed to create brand-related interactions with
customers. Sponsorships improve the visibility of the company. Companies provide customers with an experience
of using the product which ends up leading to a higher brand recall than competitors. These events prove to be
engaging with the audience.

8. Social Media Marketing

The concept of social media marketing basically refers to the process of promoting business or websites through
social media channels. Companies manage to get massive attention on such channels and can interact with
consumers as and when they are browsing the internet.

Advertising Management
Advertising management is a planned managerial process designed to oversee and control the various advertising
activities involved in a program to communicate with a firm's target market and which is ultimately designed to
influence the consumer's purchase decisions.

Advertising Management is a managerial process aimed at managing the advertising activities of organization. It is
one through which company’s monitor and controls their advertisement programs for attracting target audience.
This is a process which uses different kind of media for selling company products.

Advertising management is important process as it has an important role in developing better image of companies
in market and increases their customer base. Without a proper advertising strategies and management processes, all
marketing campaigns and promotions may go in vain.

Advertisement management process requires many steps to be followed to derive better results from advertisement
activities. These steps include deciding advertising objective, setting advertising budget and strategies for doing
campaigns, recognizing target audience, creating effective message and also measuring overall efficiency of whole
advertisement activities. It continuously monitors the various promotional activities from time to time and take
necessary steps if found necessary to ensure better results. 

Nature of Advertising Management

1. Defines target market

Advertising management process recognizes and selects target audience in market to be approached by business. It
formulates plans as per the target customers for selling products to them.

2. Sets advertisement budget

It sets the overall budget for carrying out all advertisement activities by business. Advertising management oversee
all promotional activities and ensure that all expenditure remain within the allocated budget.

3. Tells promotional message

Advertising management designs the promotional message to be circulated for attracting the customers. It creates
strategies regarding what companies will say to their customer for introducing and selling their products to them.
4. Chooses media strategy

Choosing the right source of media is must for efficient promotion of products. It makes plans how companies will
reach its customers. Advertising management chooses the right type of media available for effective marketing of
business products.

5. Measures advertisement effectiveness

Advertising management technique monitors the performance of various advertisement strategies adopted by
business. It replaces or adopts new methods of promoting the products if any of the implemented strategies is
found to be ineffective.

Scope of Advertising Management

1. Introduces new products

It helps in introducing new products of companies in market. Advertising management through managing all
advertising activities induce people to know about or try new products. 

2. Create wide awareness

Advertising management enables in creating wide awareness of brand products among audience. It is one through
which company communicates all information regarding features, uses and advantages of product in market.

3. Increase sales

This process has a significant role in bringing up the sales of business organizations. Advertising activities
facilitates mass sales for companies by reaching out to large customers and convincing them for buying it.

4. Enhances goodwill

Managing of all advertisement activities results in improving the brand’s image in market. It is the means through
which companies show their presence among audience. Customers consider those brands superior that spend more
on keeping them aware of their products.

5. Persuades customers

It assists in bringing more and more customers to business. Advertising management focuses on attracting large
people by circulating well defined promotional message among customers. It convinces them to purchase the brand
products by explaining them all benefits. 

6. Faces competition

Advertising management process helps in facing the tough competition in market. There are large numbers of
brand available selling same variety of products. Advertising activities enables business in differentiating their
products among customers by explaining them all features and benefits over the other available products.
7. Generate employment

It has also led to generation of large number of employment opportunities in country. There are many people who
are working in various advertisement agencies. Companies pay fees to these agencies for promotion of their
products.  

Advertising appeals

Advertising appeals refers to the approach used to attract the attention of customers or to influence their feelings
towards a brand, product or service. It is the central idea of an advertisement and speak to an individual's need,
wants or interest and entice her to take the desired action which generally is “Buy me”

1. Emotional appeals - Emotional appeals relate to the consumers social or physiological needs for purchasing a
product or a service. Many consumers’ purchase decisions are emotional and are made on what they feel about a
particular brand more than its features. They are designed to make an audience associate positive feelings with
your brand. These appeals generally focus on trust, joy, love, loyalty and happiness, which you can leverage
through the use of powerful music and imagery. Examples – Jewellery ads, Ariel share the load ads

2. Sexual Appeals - Sex appeals relate to a person’s natural desire to experience romance and appeal to others
romantically. The goal of this appeal is to make people feel like they will be more attractive, more desirable, and
more likely to get the person of their dreams if they use a certain product or take certain actions.Sex appeals
capture attention, but seldom promote product consumption. Although history has shown that sex does indeed sell
or at least gets attention. Examples – Fragrance product ads, condom ads

3. Humor Appeals - Who doesn’t like something that’s funny? Humor appeals make consumers laugh and create
an emotional link with the product. It is a proven appeal type for grabbing attention. When consumers find
something humorous, it has value because is causes them to watch, laugh and, most importantly, remember. By
capturing the viewer's attention, humor appeals cut through advertising clutter and allow for enhanced recall and
improved moods of the viewers. The challenge with humor however is to keep the brand in the humor – so your
market associates the humor with your brand. Often it’s the humor that is remembered more than the product.
Examples – Mentos ads, Center shock ads, Fevicol ads.

4. Musical Appeals - Like humor, music is a great way for brands to get noticed and make an audience remember
their products. In addition, musical appeals can bring up positive memories whenever someone hears a catchy tune
in an ad, which goes a long way toward making them feel good about the product being presented. The use
of musical appeals allows for a connection between the product or service and a catchy jingle or piece of music.
Examples – Airtel jingle ad, Lifebuoy “Lifebuoy hai janah tandaroosti hai wahan”, Washing powder Nirma.

5. Rational appeals - Rational appeals use logic, facts, and data to convince consumers to buy products, and are
often found in advertisements for medications, cookware, and cleaning products. They focus on the consumers
practical, functional need and utility for the product or service. It emphasizes on either product features or its
functional benefits or its problem removal or problem avoidance attribute. Examples – mobile phone ads showing
features, detergent ad showing superior stain removal property.

6. Fear Appeals - Fear appeals focus on the negative outcomes that can happen because of an action or inaction.
Another fear tactic involves isolation. People will purchase a product to avoid isolation from others because of bad
hygiene for example in the case of toothpastes and Deodorants. Fear appeals fit particularly well with certain types
of goods and services, particularly those products that can eliminate threats or provide a sense of personal security.
For example, fear is often used in insurance company ads, focusing on the consequences of an untimely
death. Examples – anti tobacco ads, toothpaste ads focusing on germ fighting property.
7. Scarcity appeals - Scarcity appeals tap into people’s fear of missing out, so they’re a great way to convince
people to take advantage of a sale or a limited edition product. However, make sure that scarcity actually applies to
what you’re selling and sale is indeed a sale and is not a permanent offer. Examples – Toothbrush Free with
Toothpaste ads, ads giving gifts or lucky coupons.

8. Bandwagon appeals – Bandwagon appeals, also known as FOMO appeals (Fear of missing out appeals), make
consumers believe that they are missing out by addressing the consumer’s need to belong. This type of message
says buy this product because everyone does. Examples – ads showing “India’s no. 1 or most preferred brand”,
“Desh ke 80% logon ne ise chuna”.

9. Favorable Price appeals – Favorable price appeals make price as the dominant point of the message. It can be
used to announce a lower price product, low prices every day. Examples – 5 Rs. Chhota coke, Vodafone’s 10 ka
chhota recharge, Mc Donalds “I love it” ads

10. Competitive advantage appeals – Competitive advantage appeals make either a direct or indirect comparison
to another brand and usually claim superiority on one or more attributes. This is also known as comparative
advertising. Examples – Detergent ads showing a particular product cleaning a cloth better than competition
product, health drink ads showing more or higher nutrients than the competition product.

What is an Advertisement Design?

There is neither a magical formula nor pre-defined rules to combine lines, colors, images, typefaces, and other
graphic elements to create an eye-catching ad. However, design depends upon the requirement of the client and
features, functions, appearance, and nature of the product.

Execution of a well-thought out layout and design has an impressive effect on consumers. A smartly articulated
design encourages or in other words subtly compels people to buy the product.

How to Develop Creative Ad Design?

Designing is all about creative idea and creative idea is solely dependent upon the clear understanding of a
project’s goal. Once the project is clear, one needs to do a little market research to understand the behavior of
potential customers.

Punchline, eye-catching heading, succinct content body, and relevant image (if any required) must be figured out
in advance. If you have all equipment ready with you, you can develop a creative design.

Strategy of Creative Design

A clear-cut idea and a well-defined strategy are the integral parts of a creative design. Strategy includes some of
the essential components such as −

Simplicity − Try to keep the layout simple. Put large pictures on top, headline beneath that, content body in the
middle, while logo and address on the right side at the bottom.

Balance − To focus on some points, you need to create a symmetry in design. The key part of creative designing is
to organize all elements including images, blocks, headlines, content body, and illustration so that they seem
balanced.

Proportion − The size and color of all graphic elements must be determined by their significance and
surroundings of the illustration. For example, important idea, image, or design must be larger, brighter, and bolder
so that it appears distinct from other elements (as shown in the image given below).
Unity − First find out the focal point of the ad where you want people to focus. Once done, highlight it as a central
point by dimming the surrounding and background design and color. One point to always keep in mind is that all
elements of your design - the visual language and presentation should be in unity.

Contrast − Create contrast so that it can grab people’s attention. For example, among a bunch of mango, an apple
grabs attention.

Consistency − Maintain the consistency. Page to page consistency is indispensable for an eye-catching ad. It helps
people understand the meaning of different elements of an ad.

Photo Design − Generally, photo attracts people first. Selection of a good photograph and placing it smartly in an
ad is another smart way to grab people’s attention (see the image below).

Proximity − Proximity is one of the most significant elements of creative design. It compels people to think on the
design (ad). Therefore, designing proximity is a cerebral task. For example, remember the ad Marlboro Cigarette
— the mythical man, a combination of cigarette, horse, cowboy, and rustic image of the Old West. The ad was an
instant hit.

Color Design − Selection of color is also a very important task. Normally, black and white is boring, but some ads
demand only black and white colors. Ads which require to be colorful, needs to be designed very carefully
maintaining the consistency and proportion. Excessive use of colors or excessive brightness distract people’s
attention.

Advertising Agencies

“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally
stitch the cloth and deliver it to the customer.”

Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered and
hands it over to the client. Advertising agencies are mostly not dependent on any organizations.

These agencies take all the efforts for selling the product of the clients. They have a group of people expert in their
particular fields, thus helping the companies or organizations to reach their target customer in an easy and simple
way.

The first Advertising Agency was William Taylor in 1786 followed by James “Jem” White in 1800 in London and
Reynell & Son in 1812.

A firm engaged in providing services of advertisement for clients to create awareness and market for them is
known as advertising agency. These agencies involve people with specialized skills and knowledge who are well
versed in marketing, advertising and consumer behavior. These experts combine their talent to create
advertisement for their clients. Therefore, an advertising agency is a specialized organization helping its clients to
adopt advertising for marketing their goods and services in most effective manner.

Philip Kotler opines that “Advertising agency is a marketing service firm that assists its clients in planning,
preparing, implementing and evaluating various activities of advertising campaign.”

Role of Advertising Agencies

1. Creating an advertise on the basis of information gathered about product
2. Doing research on the company and the product and reactions of the customers.
 3. Planning for type of media to be used, when and where to be used, and for how much time to be used.
4. Taking the feedbacks from the clients as well as the customers and then deciding the further line of action

All companies can do this work by themselves. They can make ads, print or advertise them on televisions or other
media places; they can manage the accounts also. Then why do they need advertising agencies? The reasons
behind hiring the advertising agencies by the companies are:

 The agencies are expert in this field. They have a team of different people for different functions like
copywriters, art directors, planners, etc.
 The agencies make optimum use of these people, their experience and their knowledge.
 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.

5 types of advertising agencies.

1. Full service Agencies

 Large size agencies.

 Deals with all stages of advertisement.

 Different expert people for different departments.
 Starts work from gathering data and analyzing and ends on payment of bills to the media people.
2. Interactive Agencies
 Modernized modes of communication are used.

 Uses online advertisements, sending personal messages on mobile phones, etc.

 The ads produced are very interactive, having very new concepts, and very innovative.
3. Creative Boutiques
 Very creative and innovative ads.

 No other function is performed other than creating actual ads.

 Small sized agencies with their own copywriters, directors, and creative people.
4. Media Buying Agencies
 Buys place for advertise and sells it to the advertisers.

 Sells time in which advertisement will be placed.

 Schedules slots at different television channels and radio stations.
 Finally supervises or checks whether the ad has been telecasted at opted time and place or not.
5. In-House Agencies
 As good as the full service agencies.

 Big organization prefers these type of agencies which are in built and work only for them.
 These agencies work as per the requirements of the organizations.

Advertising Budgeting
What Is an Advertising Budget
An advertising budget is an estimate of a company's promotional expenditures over a certain time period. More
importantly, it is the money a company is willing to set aside to accomplish its marketing objectives. When
creating an advertising budget, a company must weigh the value of spending an advertising dollar against the value
of that dollar as recognized revenue.

A budget is an expression in monetary terms of the forward plan and the proposed activity. Advertising plan
includes sales targets, product facts, marketing information, competitive situation, creative platform, copy
treatment etc. The advertising budget is the translation of an advertising plan into monetary form. It states the
amount of proposed advertising expenses and informs the management of the organisation the expected cost of
executing the advertising plan.

The budgetary process involves:

a. Preparation,

b. Presentation,

c. Execution, and

d. Control.

a. Preparation:

The total expenditure on advertising is estimated on the basis of the information of markets, product, pricing,
image, message and media. The determination of the total funds is the first step in budgeting, which is known as
budget appropriation. The determination of advertising appropriation depends on the existing sales, the unit of
sales, and the expenditure on advertising and affordable capacity.

After determining the appropriation, the next step is to specify the expenditure to be incurred on each function of
advertising. The allocation of appropriation to different advertising activities in made on the basis of the
contribution to advertising and the attitude of the management.

Thus, the total budget is cut into small budgets for each advertising function. Advertising budgets are prepared for each
market segment, time and geographic area.

b. Presentation:

The budget prepared by the advertising manager is presented to the marketing manager who decides the rationale
and the contribution of the budget components. The budget is modified on the basis of the prevailing marketing
conditions and management requirements.

The top executive may also fix the budget and budget components. The financial manager is consulted before this
decision is taken. The budget is modified in the light of sales forecast, sales opportunities and the role of
advertising in capturing the market share. The advertising plan is then formulated for the final budget.

c. Budget Execution:

The execution of the budget is done through routine activities. The cost of advertising, production, purchase of
advertising time and space and other functions are considered. Constant surveillance and periodic checks
determine whether the advertising norms are implemented and budgets properly utilized.
The budgets are prepared in the light of the normal marketing conditions. If the conditions change, the budgets are
changed accordingly. Contingency funds are provided in the beginning, which are used during times of need.

d. Control of Budget:

The advertising budget should not be less than the advertising expenditure. The expenditure is compared with the
provision in the advertising plan. No larger amount should be spent unless the advertiser is constrained to do so in
the light of existing conditions. The planned expenditure and the actual expenditure should be on parallel lines.

The budgeted expenditure on advertising should be used only for advertising purposes and not for other purposes.
Since sales promotions include several functions other than the advertising function, the advertising budget should
be used only for the advertising purposes and not for other sales promotion strategies – that is, on personal selling,
merchandising, packaging, public relations, etc.

Advertising Budget Methods

1. Percentage of Sales: Under this method, the advertising budget is set as a percentage of either the past sale
or expected future sales. Small businesses usually use this method.
2. Competitive Parity: This method advocates that a company sets an advertising budget similar to the one
that is set up by its competitor to yield similar results.
3. Objective and Task: This method is based on the advertising objectives under this method. Once the
objectives are decided, the cost is estimated to complete those objectives, and accordingly, a marketing
budget is set.
4. Market Share: In this method, the advertising budget is based on the market share of a company. For a
higher market share, less marketing budget is set.
5. All available Funds: This is a very aggressive method under which all available profits are allocated
towards advertising activities. This method can be used by start-up businesses that need advertisements to
attract customers.
6. Unit Sales: Under this method, the cost of advertisement per article is calculated and based on the total
number of articles, it is set.
7. Affordable: As the name suggested, the company sets its budget based on how much it can afford to spend.

Factors Affecting Advertising Budget

1. Existing Market Share: A company having a lower market share will require to spend more on its
promotional activities. On the other hand, companies with larger market shares can spend less on their
promotional activities.
2. Competition level in the industry: If there is a high competition level in the industry in which the
company operates, then the advertising budget would be required to be set on a higher side to get noticed
by audiences. In case monopoly exits or where there is the least level of competition involved, the company
will need to invest less in marketing.
3. Stage of the Product Life Cycle: It is a well-known fact that in the initial introduction stage and growth
stage of a product or service, more amounts would be required for advertising. While in the later stages of
the product life cycle, the need for advertising will decline.
4. Decided frequency of Advertisement: Advertising budget will also depend on how frequently a company
wants to run its ads. Frequent ads will call for a greater budget.

Media planning and evaluation

Media planning is the series of decisions involved in delivering the promotional message to the prospective
consumers. It is the process of directing the advertising message to the target audience by using the appropriate
channel at the proper time and place.
The media plan marks on the best way to get the advertiser’s message to the market. Generally, the goal of the
media plan is to find that combination of media that allows the marketer to communicate the message in the most
effective manner to the largest number of potential customers at the lowest cost.

Media planning assists in controlling wasteful advertising. It ensures die optimum-utilisation of resources spent on
advertising. In media plan, media objectives are decided keeping in view the advertising objectives of the
organisation. Media plan specifies media strategies. Media strategy means plans of action designed to attain media
objectives.

Types of Advertising Media

Nine types of advertising media available to an advertiser are: (1) direct mail (2) newspapers and magazines (3)
radio advertising (4) television advertising (5) film advertising (6) outdoor advertising (7) window display (8) fairs
and exhibition and (9) specially advertising

(1) Direct Mail:

This is one of the oldest types of advertising media. Under this method message is sent to the prospective buyers
by post. A mailing list is prepared for this purpose. Circular letters, folders, calendars, booklets and catalogues are
sent under this type of advertising. In the sales letter an appeal is made to the buyers separately.

It contains detailed information with regard to the product. The main aim of these letters is to create the reader’s
interest in the product. The letter should be attractive, interesting and convincing. Booklets and catalogues contain
information regarding detailed description and prices of different varieties of products.

This method is very effective as it establishes direct contact with the consumer and also maintains secrecy in
advertising. Detailed information with regard to the product can be sent to the buyers. The letters and circulars
contain personal appeals which are greatly helpful in arousing their interest in the products. This method can be
effectively undertaken in case the manufacturers are selling directly to the consumers.

Direct mail advertising suffers from certain drawbacks also. It has limited access i.e. a small number of buyers can
be covered. There are practical difficulties in preparing and maintaining up-to-date mailing list. This is also not
suitable for every type of product.

(2) Newspapers and Magazines:

These are the important forms of press advertising, newspapers are the most effective and powerful medium of
advertising. Newspapers contain valuable information with regard to different current events. It may be referred to
as ‘a store house of information’. There are daily, bi-weekly and weekly newspapers. Newspapers have widest
circulation and read by many people. The newspapers may be local, provincial or national.

There is a separate advertisement department in every newspaper which classifies and designs different
advertisements in the paper. Before selecting a newspaper the advertiser should take into consideration various
factors viz., coverage of the newspaper, the class of customers and the cost of advertising etc.

The newspapers offer widest circulation and have universal appeal. The cost of advertising is lesser as compared to
other media. The newspapers have more repetitive value and are very helpful in introducing a new product. These
are suitable for all types of goods having wider markets.

A high degree of flexibility is ensured by newspapers i.e., the advertisement campaign can be undertaken and
stopped quickly. Advertisements are the main source of revenue to the publishers. The most important benefit
derived from the newspapers is that the advertiser’s message can be conveyed to the readers quickly.
Besides newspapers suffer from certain drawbacks also. They have shorter life and are not suitable for illiterate
people. Most of the people read the papers casually especially in the morning hours when they are in a hurry to
join their respective jobs.

Secrecy cannot be maintained in this type of advertising. Another drawback of newspaper advertising is that they
are in black and white prints. Colored advertisements are not covered, which are more appealing and attractive.

Magazines:
Magazines or periodicals are other important media of communication. Magazines may be released weekly,
monthly, quarterly, bi-annual or annual. These are read with more interest by the readers as compared to
newspapers. Advertisements given in magazines are more descriptive and attractive. They are usually in colored
form which depicts the product nicely and gives lasting impression to the reader.

There are magazines or journals meant for general public and special class of people. There are exclusive
magazines relating to industry, trade, finance and economics etc. There are also special magazines for men, women
and children. The magazines have longer life and are very suitable for advertising specific goods.

Magazines have lesser flexibility as compared to newspapers. Last minute changes cannot be introduced in the
advertisement as they are sent to the press many days before the publication. There is lesser repetitive value and no
secrecy can be maintained.

Cost of advertising is higher as compared to newspapers. Their circulations are small and are suitable for educated
readers only. In the introduction of a new product, magazines are not much suitable on account of lesser continuity.

(3) Radio Advertising:

Radio advertising is very popular these days. The advertisements are broadcasted from different stations of All
India Radio. Radio advertising can be explained as “word of mouth advertising on a wholesale scale”. The
advertising messages can be in different regional languages.

The most important advantage derived from radio advertising is that it covers every type of listener whether
illiterate or educated. It is a very effective medium for popularising on mass scale various consumer articles. The
coverage of this medium is wider extending to a large number of listeners. It ensures quicker repetition.

Radio advertising suffers from shorter life, limited memory and short messages. Cost of advertising is higher. The
message may not be listened properly by the listener. There is no secrecy. This is useful for those who possess
radio sets. There is lesser flexibility and lack of personal touch.

(4) Television Advertising:

This is the latest and the fast developing medium of advertising and is getting increased popularity these days. It is
more effective as compared to radio as it has the advantages of sound and sight. On account of pictorial
presentation, it is more effective and impressive and leaves ever lasting impression on the mind of the viewer.

It is a very costly medium which can be employed by big concerns only; it has a shorter life span and limited
coverage. Back reference to the advertisement cannot be made after its presentation. The duration of the
advertisement is very limited.

Despite of the above mentioned drawbacks, this method of advertising is gaining rapid coverage and immense
popularity among the masses.

(5) Film Advertising:

This is also known as cinema advertising. This also provides sight and hearing facilities like television. Short
advertisement films are not prepared by big business houses which are sent to different cinema houses to be shown
to the audience before the regular shows or during the intermission. It has more repetitive value but not to the same
viewers. Its coverage is limited which benefits the local population only.

It is a very costly medium involving higher distribution and film making costs. Only big organisations can afford
to produce advertisement films. It ensures more flexibility at larger costs. Its effectiveness cannot be measured
properly. Film making is a time consuming process.

(6) Outdoor Advertising:

This type of advertising include different media like posters, placards, electric displays or neon signs, sandwich
men, sky writing, bus, train and tram advertising. This is also known as ‘Mural advertising’. The main aim of
outdoor advertising is to catch the attention of passerby within twinkling of an eye.

This is the most effective medium of advertising. This is very suitable in the case of consumable and household
articles like soaps, medicines, fans, shoes and pens etc. Posters and placards are usually fixed on the walls near the
road sides, railway station and bus stands. These posters are made of thick paper or metal plate or wood and carry
the advertising message which can be easily read and seen from a distance. The posters also pasted on the back of
buses, trains and trams which are greatly helpful in carrying the message throughout and outside the city. Painted
displays are prepared by expert painters which carry attractive multi-colored pictures also to impress upon the
people. Electric displays or neon signs are also used in order to impress the passerby. These carry a very short
message. This is a very costly device.

Sandwich-men move from street to street carrying the posters and peculiarly. They shout and sing praising the
concern and the product. Sky writing is also known as air advertising.

The pilots of the aero planes through whom this is carried write the advertiser’s message in the form of smoke or
illumination. The message is quite visible even from a long distance. Balloons fitted with the message and pictures
of the product are also flown in the sky.

This type of advertising has a wider coverage and leaves effective impression on the people. It is very suitable for
making the product popular and creating proper brand image. It has greater flexibility and can be designed by
keeping in view the peculiarities of a particular locality. It requires lesser time and effort on the part of the
advertiser to undertake this medium. This is more durable and economical form of advertising medium. It has been
referred as reminder or residuary publicity which is used by the advertiser after all the other advertising media.
Sticking of bills and posters destroys the walls of different building and adversely affects the cleanliness and
beautification of a particular area. Various media like skywriting, sandwich men, balloons and electric displays are
very costly. They are beyond the means of a small trader.

(7) Window Display:

It is a common method which is usually undertaken by retailers who display their products in the shop windows in
order to attract the customers. This is also known as exterior display.

It is the most effective and direct method of influencing the people. Window display has direct appeal to the
onlookers. It is instrumental in arousing the desire to purchase in the prospective customers. It acts as a silent
salesman.

In order to operate this method successfully, goods should be arranged properly and systematically in the show
windows. The articles in the windows should be regularly- changed. The advertiser should not forget that the
window is the index of his shop. Utmost care should be undertaken to display the products in windows.

(8) Fairs and Exhibition:

A trade exhibition or a fair is organized on extensive scale which is attended by different manufacturers and traders
along with their products to be sold to the large number of people who visit the exhibition. The exhibition may be
either organized on local, provincial or international basis. The examples of some of the international exhibitions
are EXPO 70 of JAPAN, ASIA 72 and recent trade fair at Delhi every year. Different stalls or pavilions “are
allotted to various traders who display their goods in these pavilions. The manufacturers also distribute the sales
literature and sometimes free samples of goods to the people. Facilities of practical demonstration are also
provided to the customers. The customers clearly understand the method of operation and use of the product.

In the case of international exhibitions, traders of different countries assemble at one place; they can conveniently
share the experiences of their respective countries with each other which are really informative and useful for all of
them. It provides ample opportunity for learning. The huge gathering of people in the exhibition provides a larger
market for sale.

(9) Specially Advertising:

Most of the business houses in order to increase their sales, advertise their products, give free gifts like diaries,
purses, paper weights and calendars to the customers. The name of the firm or the dealer is inscribed on the articles
presented.

Media strategy: Creativity, Elements of creative strategies and its implementation

As important it is determining what to communicate in an advertisement, equally important is how it is communicated. The
appeal and execution styles of advertisements talk about just that. The advertising appeal refers to the approach used to
attract the attention of consumers and/or to influence their feelings toward the product, service, or cause. The creative
execution style is the way a particular appeal is turned into an advertising message presented to the consumer.

1. Informational/Rational Appeal

Informational/rational appeals focus on the consumer’s practical, functional, or utilitarian need for the product or
service and emphasize features of a product or service and/or the benefits or reasons for owning or using a
particular brand.  Rational-based appeals tend to be informative, and advertisers using them generally attempt to
convince consumers that their product or service has a particular attribute(s) or provides a specific benefit that
satisfies their needs. Informational appeal has other categories. Competitive advantage appeal is where an indirect
comparison with a competitor is made. Favorable price appeal is where the price is the focal point of the
communication. News appeal concentrates on some news or announcement about the product.

2. Emotional Appeal

Emotional appeals relate to the customers’ social and/or psychological needs for purchasing a product or service.
Many consumers’ motives for their purchase decisions are emotional, and their feelings about a brand can be
more important than knowledge of its features or attributes. The Kelloggs’ “Respect yourself” campaign has been
very effective in positioning Nutri-Grain as a healthy alternative for those who don’t take time to eat breakfast.
Another example is where McDonald’s changed its advertising strategy recently and is now putting more
emotion in its commercials to evoke a feel-good connection with consumers. The company’s senior vice president
of marketing explained the change by stating,

3. Combining Rational and Emotional Appeals

In many advertising situations, the decision facing the creative specialist is not whether to choose an emotional or a
rational appeal but, rather, determining how to combine the two approaches. Consumer purchase decisions are
often made on the basis of both emotional and rational motives, and attention must be given to both elements in
developing effective advertising.

There are other kinds of appeals as well. Some brands follow the concept of reminder advertising. The main
objective is to build the brand in such a way that the customer sees the brand name in front of them all the time.
Other ads include teaser ads where when a new product is about to be introduced ads are designed in such a way
that they build up the curiosity and interest of the consumers.

UNIT II

Direct Marketing:

What Is Direct Marketing?

Direct marketing consists of any marketing that relies on direct communication or distribution to individual
consumers, rather than through a third party such as mass media. Mail, email, social media, and texting campaigns
are among the delivery systems used. It is called direct marketing because it generally eliminates the middleman,
such as advertising media.

Direct marketing is a type of advertising campaign that seeks to achieve a specific action in a selected group of
consumers (such as an order, store or website visit, or a request for information) in response a communication
action done by the marketer. This communication can take many different formats, such as postal mail,
telemarketing, point of sale, etc. One of the most interesting methods is direct email marketing.

For example, subscribers to teen magazines might be presented with Facebook ads for acne medication which,
based on their age, they are likely to need. Or members of the United States Equestrian Federation might all
receive an email promotion offering special pricing on horse gear. Current residents of Wilmington, Delaware
might receive a flyer announcing the arrival of Wegmans supermarket to their area. Conversely, people in
Wilmington, Ohio would not.

Features of Direct Marketing

Features of Direct Marketing
The features of direct marketing are: no middlemen, customer oriented, various forms, direct distribution channel
and direct contact between producer and customers etc.

1. No middlemen
In direct marketing system, selling and buying take place keeping direct contact between marketers and customers
through different media. So, no middlemen are found in this marketing. Since no middlemen work in it and no
commission is given to them, the cost is saved and the customers can get goods at the cheapest price.

2. Customer oriented
In direct marketing, relationship between sellers and customers becomes deep as well as strong. The sellers give
emphasis on the wants, desires of each customer. It is one-to-one marketing. As the producers remain in direct
contact with customers, they make marketing mix keeping the customers at the center.
3. Forms
The channels which help to conduct direct marketing are taken as its forms. So, there are many forms of direct
marketing. They are direct mail, and catalogue marketing, telemarketing, television marketing, Internet marketing,
etc. Any of these forms can be direct marketing.

4. Direct channel
Marketing channel becomes direct in direct marketing. In this marketing channel, no middlemen can be found. The
producers themselves deliver products to the customers directly. Customers also keep direct contact with producers
or distributors through different media. Selling and buying take place directly between them. As the channel
becomes short in this marketing, distribution cost also becomes least.

5. Direct contact
There is direct channel in direct marketing. Since no middlemen remain in this form, direct contact is established
between sellers and customers. Producers can keep contact with customers one by one. This makes easy for the
producers to know about the purchasing power, wants and interest of the customers. Direct ransacking taking
place. Distribution cost is also reduced due to direct channel of distribution.

Benefits of Direct Marketing
Direct marketing allows you to promote your product or service directly to your target audience and measure
results quickly, but the benefits don't stop there. Here are 6 benefits of digital direct marketing:

1. High segmentation and targeting. One of the great advantages of this type of marketing is that you can
reach your specific audience segments with personalized messages. If you want to succeed, you should
invest time to research and identify the consumers most likely to convert and thus direct your efforts to
actions that really work.
2. Optimize your marketing budget. Addressing online direct marketing to a specific audience allows you
to set realistic goals and improve your sales on a tight budget. If you properly optimize your direct
campaign, you will achieve results with only a small percentage of the cost of traditional advertising.
3. Increase your sales with current and former clients. Digital direct marketing lets you communicate with
your current customers to keep the relationship alive while continuing to bring value. It also allows you to
get back in touch with old customers and generate new sales opportunities.
4. Upgrade your loyalty strategies. Direct contact with your customers allows you to customize your
promotions, emails, and offers to create an instant bond. To maximize results, you can combine your direct
marketing methods with your loyalty program.
5. Create new business opportunities. Direct marketing allows you to adapt to market demands at all times
and respond more effectively.
6. Tests and analyzes the results. Direct response campaigns give you the opportunity to directly measure
your results. Take the opportunity to squeeze the most of your tests and make decisions in real time. 

Advantages of Direct Marketing

1. Targeted advertising

Direct advertising allows marketers to target particular groups of customers with customized promotional
messages. In turn, businesses are likely to achieve high conversions since they focus their messages on people who
are most likely to need their products or services.
2. Budget marketing

Direct marketing that focuses on a particular demographic can help businesses set plausible sales goals and also
improve sales results when on a tight marketing budget. With direct marketing, companies can run effective and
enterprising marketing campaigns at a small fraction of the cost of mainstream broadcast promotions.

3. Boosts sales to existing and lapsed customers

Customers are often ready to welcome businesses that show that they understand users’ needs and also those that
are keen on building personal relationships. Direct marketing allows to increase sales to existing customers by
maintaining their customer records and selecting simple, thought-out marketing techniques for their audience.

Direct marketing also shines when it comes to re-establishing relationships with all customers who have not
returned to a company in a while. It helps businesses understand why customers chose to move on and what can
rekindle these lapsed relationships. When a business learns what they need to do to improve sales from previous
customers, it can keep accurate records to ensure that returned customers get to stay.

4. Improves customer loyalty

Direct marketing is excellent for building and maintaining relationships with customers and prospects. It allows
marketers to personalize both advertising messages and offers to create solid links with customers and also
strengthen existing personal connections.

It is good practice to combine direct marketing techniques with customer loyalty programs to increase the bond.
Examples of customer loyalty strategies include giving discount offers, sending birthday cards, and inviting
customers to upcoming sales events.

5. Helps in pushing new business

Direct marketing gives business owners an excellent launching pad for their companies. It enables them to
effectively communicate with their target market, thus bringing their businesses more sales. Moreover, when
marketers implement effective direct marketing techniques for customer acquisition, they can generate genuine
fans of their brand and thus grow sales. This strategy also helps new businesses to adapt and respond to market
demands.
New businesses can also use direct marketing to:

 Improve sales of specific products.

 Clear discontinued stock.

 Renew sales.

 Increase customer retention and loyalty

 Follow up on promotional offers.

6. Allows to measure product performance

Direct marketing is an excellent way of evaluating the appetite customers have for particular products and services.
Moreover, this strategy enables marketers to try out new markets, evaluate sales results, and gauge the
effectiveness of their sales and promotion tactics. In turn, marketers can easily tweak their campaigns to ensure
success. Each time marketers run advertising campaigns; they should monitor and analyze their results so that they
can use this information to improve subsequent campaigns.
Disadvantages of direct marketing

1. Image factors. As we noted earlier, the mail segment of this industry is often referred to as junk mail. Many
people believe unsolicited mail promotes junk products, and others dislike being solicited. Even some senders of
direct mail, including Motorola, GM, and Air Products & Chemicals, say they throw out most of the junk mail they
receive. This problem is particularly relevant given the increased volume of mail being sent. (One study estimates
the typical American receives 14 pieces of junk mail per week.)39 Another predicts that by 2007 consumers will
receive over 3,900 junk e-mails per year.40 In 2002 over 205.7 billion pieces of mail were sent in the United States
alone.41

Likewise, direct-response ads on TV are often low-budget ads for lower-priced products, which contribute to the
image that something less than the best products are marketed in this way. (Some of this image is being overcome
by the home shopping channels, which promote some very expensive products.) Telemarketing is found to be
irritating to many consumers, as is "spam" or Internet junk mail. As you can see in Ethical Perspective 14-2, other
factors have also created image problems for the direct-marketing industry.

2. Accuracy. One of the advantages cited for direct mail and telemarketing was targeting potential customers
specifically. But the effectiveness of these methods depends on the accuracy of the lists used. People move, change
occupations, and so on, and if the lists are not kept current, selectivity will decrease. Computerization has greatly
improved the currency of lists and reduced the incidence of bad names; however, the ability to generate lists is
becoming a problem.42

3. Content support. In our discussion of media strategy objectives in Chapter 10, we said the ability of magazines
to create mood contributes to the overall effectiveness of the ads they carry. In direct-response advertising, mood
creation is limited to the surrounding program and/or editorial content. Direct mail and online services are unlikely
to create a desirable mood.

4. Rising costs. As postal rates increase, direct-mail profits are immediately and directly impacted.

Strategies in Direct Marketing

1. 360-Degree Approach- Just like any other marketing strategy, including a 360-degree approach to your
direct marketing strategy and using all the available marketing mediums to convey the marketing message
makes the communication more effective.

2. Segmenting The Target Market- Using lists of targeted prospects so that promotional messages can be
sent only to those who would most likely be interested in the services you offer is an effective direct
marketing strategy. This can be done by collecting information via surveys, or sometimes also monitoring
your regular customers’ behaviours.

3. Personalized Messages – Although the number of sales pitches delivered can be massive, inserting the
recipient’s name or location at a prominent place in the message adds a nice personal touch which can
attract your potential customers.

4. Increasing Customer Loyalty- Since direct marketing allows you to directly contact your customers, it
also allows you to build a good relationship with your existing and potential customers. Combine direct
marketing techniques with customer loyalty strategies to build better customer relationships.

5. Testing Products and Sales Performance- Direct marketing allows you to directly test products and
customers’ feedbacks to them. Each time you run a direct marketing campaign for your business, it is
important to monitor the reviews and ratings from your customers in order to improve any future direct
marketing campaigns.
 6. Harnessing The Power Of The Internet- Direct marketing isn’t limited to the offline world anymore.
Your target market is already on the internet. Using emails, retargeting, Facebook ads and Google ads to
reach to the target audience directly gets more results.

7. Call To Action Marketing- The call-to-action (CTA) is one of the most common features across all forms
of direct marketing today. The audience you target can easily know more about the services you offer by
calling you on a toll-free number or clicking the link in an email promotion you sent them.

Types of Direct Marketing

1. Face-to-Face Marketing- This is one of the oldest forms of direct marketing. Authorised sales
representatives are employed to meet prospects directly. The goal of each representative is to reach out to
these prospects, convert them into profitable consumers and thus promote the business of your
organization.

2. Door-to-Door Marketing- Door-to-Door sales (D2D) are another form of face-to-face marketing. It
simply means that your sales representative is participating in door-to-door prospective, which indicates a
system of direct contact with your targeted audience. Rather than relying on any other kind of marketing, a
D2D salesman goes from one place to another, engaging prospects in a conversation about the products
and services you offer implementing various compliance techniques with the intention of doing business
with them.

3. Kiosk Marketing- Public places that get a lot of crowds are always full of opportunities to gain people’s
attention towards your business. Representatives stationed at kiosks in these places such as shopping malls
can directly talk to potential customers by catching their eyes with your products and services.

4. Leaflet Handouts- This type of direct marketing involves handing out leaflets to the targeted audience
that contain printed information about the products and services you offer, giving your potential customers
the option to contact you, should they decide to make a purchase. Leaflets are sometimes also handed out
at kiosks, to encourage a more positive engagement from your prospects. These leaflets may also
sometimes contain offers and coupon codes that are redeemable for only a limited amount of time, thereby
enticing your prospects further into making a purchase from you.

5. Telemarketing- The process of contacting your prospects individually and trying to get them interested in
purchasing what your business has to offer has rapidly grown in the past few years. Representatives at
call-centres contact a list of people who would be interested in your product and inform them the perks
and advantages of making the purchase. This technique is often used by AT&T and Vodafone to inform
both existing and potential consumers about the services they offer.

6. Email Marketing: With the widespread usage of the internet, businesses have inclined towards sending
emails to contact their prospects directly. This technique is called cold emailing and if used with a proper
strategy has a really good conversion rate.

7. Targeted Advertisements: Internet has opened the gates to yet another form of direct marketing –
Targeted Advertisements. Almost every activity a user perform over the internet is recorded in the form of
a cookie or other data. This data along with the user’s demographics is used by advertisers to target
personalized ads to him directly. An example of targeted advertisements is remarketing where user
witnesses the advertisements of the products he abandoned while visiting an eCommerce website.

Meaning of Promotion
Promotion is a marketing tool, used as a strategy to communicate between the sellers and buyers. Through this, the
seller tries to influence and convince the buyers to buy their products or services. It assists in spreading the word
about the product or services or company to the people. The company uses this process to improve its public
image. This technique of marketing creates an interest in the mindset of the customers and can also retain them as a
loyal customer.

Promotion is a fundamental component of the marketing mix, which has 4 Ps: product, price, place, and
promotion. It is also an essential element promotional plan or mix, which includes advertising, self and sales
promotion, direct marketing publicity, trade shows, events, etc.,

Some methods of this procedure contain an offer, coupon discounts, free sample distribution, trial offer, buy two
items in the price of one, contest, festival discounts, etc. The promotion of a product is important to help
companies improve their sales because customers reaction towards discounts and offers are impulsive. In other
words, promotion is a marketing tool that involves enlightening the customers about the goods and services offered
by an organization.

Tools used:

1. Advertising-

It helps to outspread a word or awareness, promote any newly launched service, goods or an organization. The
company uses advertising as a promotional tool as it reaches a mass of people in a few seconds. An advertisement
is communicated through many traditional media such as radio, television, outdoor advertising, newspaper or
social media. Other contemporary media that supports advertisement are social media, blogs, text messages, and
websites.

2. Direct Promotion-

It is that kind of advertising where the company directly communicates with its customers. This communication is
usually done through various new approaches like email marketing, text messaging, websites, fliers, online adverts,
promotional letters, catalog distributors, etc.

3. Sales Promotion-

This utilizes all sorts of a marketing tool to communicate with the customers and increase sales. However, it is for
a limited time, used to expand customers demand, refresh market demand and enhance product availability

4. Self-promotion-

It is a process where the enterprises send their agents directly to the customers to pitch for their product or service.
Here, the response for the feedback of the customer is prompt and therefore, easy to build trust.

5. Public Relation-

Popularly known as PR is exercised to broadcast the information or message between a company (NGO,
Government agency, business), an individual or a public. A powerful PR campaign can be valuable to the
company.

6. Online Promotion-

This includes almost all the elements of the promotion mix. Starting from the online promotion with pay per click
advertising. Direct marketing by sending newsletters or emails.
Key Points of Promotion
  It is a communication tool that incorporates all the elements used to spread awareness and convince
customers to buy goods and services
 It is applicable only for short term sales
 It is one of the variables of the marketing mix
 The effect of promotion is short term
 The result or outcome of the promotion is immediate
 It is an economic marketing tool as compared to advertising
 It can be used for all sorts of businesses irrespective of the size, brand of a company

Promotion Important
1) Increasing brand awareness –

Promotions help in creating brand awareness. With the help of various media like the television, billboards, radio
or local newspaper news, you can spread across information about your brand and company, which helps people to
find out more about you and look into your products and make purchases.

2) Segment Identification –

If your promotional and marketing strategy is loosely structured, it might not be successful in targeting the “right”
audiences. Having a full-proof and well-thought-out promotional strategy and marketing plan can help you identify
different segments of consumers in the market and offer suitable solutions for your clients.

3) Increasing customer traffic –

Promotion also helps in increasing customer traffic. The more you promote your brand, the more will the
customers know about you and your company and the more will they be interested in your products. Promotion can
be done even by giving out free samples which work wonders for customers! They try your product and ultimately,
come to you and make purchases.

Push pull strategies

Push marketing defines a promotional strategy in which businesses attempt to take their products to the customers
– consumers are not actively seeking a product or service, but are introduced to it through active promotion such as
billboards, TV advertising and cold-calling in the hope that they will develop a desire to engage in purchasing said
product or service. Within digital marketing, Push Marketing is enacted by means of display advertising and cold-
emailing, again placing the product or service directly in front of the consumer in the hope of raising brand
awareness and ultimately, making a sale.

Overall, the term “Push” envelops the idea that marketers are attempting to push their products at
consumers, flaunting their products to consumers. This form of marketing can therefore be associated with younger
brands trying to build brand image and market share, and can be employed particularly effectively in marketing
fast moving consumer goods, inducing higher rates of short term sales.

Examples of Push Marketing strategies:

– Face-to-face sales, for example in a showroom.

– Point of sale (POS) displays, such as brand named objects in a shop in order to attract attention and promote
sales

– Trade Show promotion

– Attractive packaging design to encourage purchases

Examples of Push strategies within digital marketing

– Display advertising, whereby companies use text and logos to attract potential consumers who may not have
otherwise seen the company

– Cold emails, this is a classic example of push marketing where the company will send out an email to people
with a perceived interest in their product in order to increase brand recognition

Pull marketing relies on much the opposite, in that consumers will actively seek out a brand for its products or
services because they are already aware of its reputation. In terms of marketing, through intensive advertising, the
aim is to establish a brand that becomes inherently linked with customer satisfaction, as products provide value for
the end user. Therefore, what’s required from a digital marketing perspective is that consumers will be influenced
by effective Search Engine Optimisation, Pay Per Click strategies, blogs, content marketing and Social Media
campaigns and so come to the company of their own volition. Overall, pull marketing relies on the generation of
brand loyalty and therefore growing rates of repeat custom.

Examples of Pull Marketing strategies:

– Extensive advertising campaigns, these are associated with intense marketing in order to promote an ideology
and therefore brand loyalty, for example Porsche who conduct little constant advertising, yet the consumer seeks
them.

Examples of Pull strategies within digital marketing

– Search Engine Optimisation (SEO), whereby companies will attempt to promote their website as highly a
possible on the organic results of a search engines findings in order to instigate interest.

– Pay per Click (PPC) whereby a company will pay the publisher for each click their companies’ website receives.
This form of pull marketing is conducted in order to attract the most appropriate people to your site and therefore
increase the conversion rate.

– Social Media, this involves promoting your brand to potential consumers via websites such as facebook or
twitter.

What Is Publicity?

Publicity creates public awareness of yourself, your business, or your brand, products, or services through media
coverage and other forms of communication.
It's often part of a marketing campaign. Publicists help to manage publicity for individuals and businesses with a
goal of increasing positive publicity and minimizing or responding to negative coverage.

Publicity is also a way of mass communication. It is not a paid form of mass communication that involves getting
favourable response of buyers by placing commercially significant news in mass media. Publicity is not paid for by
the organisation. Publicity comes from reporters, columnists, and journalists. It can be considered as a part of
public relations.

Publicity involves giving public speeches, giving interviews, conducting seminars, offering charitable donations,
inaugurating mega events by film actors, cricketers, politicians, or popular personalities, arranging stage show,
etc., that attract mass media to publish the news about them.

Publicity is undertaken for a wide range of purposes like promoting new products, increasing sales of existing
product, etc. It also aimed at highlighting employees’ achievements, company’s civic activities, pollution control
steps, research and development successes, financial performance, its progress, any other missionary activities, or
social contribution.

Publicity has been defined as:

1. William J. Stanton:

“Publicity is any promotional communication regarding an organisation and/or its products where the message is
not paid for by the organisation benefiting from it.”

2. Philip Kotler:

“Non-personal stimulation of demand for the product or service, or business unit by placing commercially
significant news about it in public medium or obtaining favourable presentation of it upon radio, television, or
stage that is not paid for by the sponsor.”

Characteristics of Publicity:

Key characteristics of publicity have been briefly described in following part:

1. Meaning:

Publicity is not a paid form of mass communication that involves getting favourable response of buyers by placing
commercially significant news in mass media. It involves obtaining favourable presentation upon radio,
newspapers, television, or stage that is not paid for by the sponsor.

2. Non-paid Form:

Publicity is not a paid form of communication. It is not directly paid by producer. However, it involves various
indirect costs. For example, a firm needs some amount for arranging function, calling press conference, inviting
outstanding personalities, decorating of stage, other related costs, etc.

3. Various Media:

Mostly, publicity can be carried via newspapers, magazines, radio, or television. For example, in case a product is
launched by popular personality in a grand function, the mass media like newspapers, television, radio, magazines,
etc., will definitely publicize the event.
4. Objectives:

Sales promotion is undertaken for a wide variety of purposes. They may include promotion of new product,
pollution control, special achievements of employees, publicizing new policies, or increase in sales. It is primarily
concerns with publishing or highlighting company’s activities and products. It is targeted to build company’s
image. In a long run, it can contribute to increase sales.

5. Control of Producer:

Company has no control over publicity in terms of message, time, frequency, information, and medium. It comes
through mass media like radio, newspapers, television, etc. It is given independently by the third party. It is
presented as a news rather than propaganda.

6. Credibility/Social Significance:

Publicity has high degree of credibility or reliability as it comes from mass media independently. It is given as
news for social interest. It has more social significance compared to other means of market promotion.

7. Part of Public Relations:

Publicity is a part of broad public relations efforts and activities. Public relations includes improving, establishing,
and maintaining direct relations with all publics. Publicity can help improve public relations.

8. Costs:

Publicity can be done at much lower cost than advertising. Company needs to spend a little amount to get the event
or function publicized.

9. Effect:

Publicity message is more likely to be read, viewed, heard, and reacted by audience. It has a high degree of
believability as it is given by the third party.

10. Repetition:

Frequency or repetition of publicity in mass media depends upon its social significance or the values for news.
Mostly, it appears only once.

How Publicity Works

Traditional advertising has its limitations. It's expensive, and it can be difficult to know whether you're reaching
your target audience.

Publicity won't necessarily take the place of traditional advertising, but it can raise your profile. Even better, the
best publicity strategies don't involve buying advertising time or space.

There are multiple ways to generate news stories about your business.

1. Press release: Use press releases to alert the media to newsworthy events or changes regarding your
business. Press releases use a specific format, tend to be short, and lead with the most important
 information. You can find templates online to follow or hire a writer or publicist to craft one for you. Once
your release is written, you can distribute it to local media outlets, put it on your website, and distribute it
using a service like PR Newswire.

2. Network: Develop contacts within the media to increase coverage of your business. You can do this
through networking, introducing yourself and your business, and getting in touch when you hear about
newsworthy items, whether they involve your business or not.

3. Volunteer: Get involved in charity drives, local events, or industry milestones so your business will be
mentioned in press coverage of those events.

4. Self-promotion: Pitch yourself as an expert source for news stories using resources like HARO. Journalists
are often looking for people to contribute their knowledge for news articles. Keep in mind that you can't
directly promote your product or service when acting as a source. Instead, you're promoting your expertise,
which helps potential customers see you as an authority in your field.

Public Relations
A part from four major elements of marketing mix, another important tool of marketing is maintaining Public
Relations. In simple words, public relations mean maintaining public relations with public. By maintaining public
relations, companies create goodwill. Public relations evaluate public attitudes; identify the policies and procedures
of an organization with the public interest to earn public understanding and acceptance.

Public does not mean only customers, but it includes shareholders, suppliers, intermediaries, customers etc. The
firm’s success and achievement depends upon the support of these parties for example, firm needs active support
of middle men to survive in market, it must have good relations with existing shareholders who provide capital.
The consumers’ group is the most important part of public as success of business depends upon the support and
demand of customers only.

Role, Significance, advantages of public relations:

Public relations are significant in the following ways:

1. Help to convey the policies and programmes of the organisation.

2. Help to collect information about public opinion about the organisation, management activities etc.

3. To overcome the complaints and dislikes of public.

4. To mould people’s attitude in favour of organisation.

5. To maintain goodwill and understanding between organisation and public.

6. To build an image of the organisation.

Ways/Methods and Tools of Public Relations:

The companies can use the following tools to improve their relations with public:

1. News:
Sometimes companies get involved in such kind of activities or make such policies so that they get some positive
coverage in news. For example, a company’s name may be covered in news for reservation of jobs for women or
for introducing new technology etc.

2. Speeches:
The speeches given by the leaders of corporate sectors influence various members of public specially banks,
shareholders etc. Public relations department creates occasion when the speeches are delivered by the leader of
company.

3. Events:
Events refer to organizing press conferences, multimedia presentation, matches, stage shows etc.

4. Written Materials:
Sometimes written materials such as Balance Sheet, Annual Reports, Special documents, Brochures etc. are
circulated to various parties to improve and maintain public image of the company.

5. Public Service Activities:

Big business houses often associate themselves with various social service projects such as women welfare
programmes, charity shows, up-keeping of parks, planting trees on road side, training schools, running schools,
colleges, hospitals etc.

The importance of Public Relations

1. Public relations works through intermediaries

Due to it being compared with advertising, PR is maybe the least understood of all marketing tools. The basis of
PR includes using intermediaries to communicate with your audience and influence them. Those intermediaries
may be industry spokespersons, stock analysts, investors, trend setters, industry analysts, customers, employees,
and even the electronic and print media. Typically your business has very little control over those influencers, or
intermediaries, which will make public relations so difficult.

2. Public relations is messy

Advertising, on the other hand, provides you that control. You won't just get to create your organization's
messages, match them with a supporting graphic, then place them where you desire your audience to read them
and as you desire them to read them. Plus, you'll pay for that control. In order to get individuals to hear you, you
must persuade many important influencers that your business, its services or products are worth their time to
consider. You must have your act together. They do not have time to spend on incomplete ideas. Getting your act
together for a key influencer will mean that you:

 Know competition well

 Know industry well
 Know context that your service or product is utilized in
 Know customers
 Know customer's interests
 Understand why what you need to say is crucial to them

3. Public relations is personal

You might have demographics for your audience in advertising. You might even have performed focus groups and
market research to pin down their necessities. However, as individuals the audience remains mainly anonymous to
you. You'll communicate to them more as a circle that shares common interests, instead of as individuals.
Advertising, by its nature, includes a mass communication.

4. Public relations builds up credibility

Public relations boosts an organization's credibility, because it'll operate through numerous trusted intermediaries.
Plus, these intermediaries communicate to a certain audience which looks to them to filter out all nonsense. If
messages are chosen to be communicated, they'll gain credibility due to the intermediaries' credibility.

5. Public relations is precise

With advertising, it's possible to calculate the responses and audience impact which you have. It is similar to a
controlled experiment which is being done repeatedly. Public relations is less predictable due to you having to get
the intermediary to comprehend your important message points and reiterate them in his/her messages. It means
cautiously aligning them with an intermediary's messages. It'll mean knowing his needs and your audience's needs
and where your business and its messages fit within that environment.

6. Public relations is based on relationships

Great public relations means setting up ongoing relationships with many important influencers (and therefore their
audiences) and knowing how your business may become an excellent data source for the influential. However, this
relationship is based on your organization's capability of providing these things:

 Thorough knowledge of the influencer's need

 Timely response to an influencer's requests
 Unique accessibility to important executives in your organization
 Truthfully stating your case

7. Charitable Work

When the general public is aware of a small business’s charitable contributions and community support, it can
make it more interested in patronizing the business. For example, a public relations outreach effort that notifies the
community about a small business's cash donation to a local school paints the business as a good corporate citizen.
This can help elevate an image of trust and respect, which can translate to a better overall perception of a company.

8. Economic Impact

Regularly touting a company's earnings, job creation and overall economic impact can help establish it as an
important part of a city's economic engine. For example, releasing quarterly employment figures or contributing to
economic development reports is an effective way to show the benefit the company brings to the community. This
can raise awareness of the importance of the organization and better position it for expansion funding and
business-to-business opportunities, and even make it be seen as a viable employer.

9. Internal Perceptions

Internal public relations campaigns have the potential to bolster staff morale, improve communications and
motivate employees. Public relations efforts that keep all employees in the loop about company activities and
strategic plans and invite feedback can get significant buy-in from employees. This can make them more
supportive of the company’s efforts and more effective performing their jobs.

10. Innovation

A public relations initiative that touts a small business’s innovations can attract attention, investors and potential
business partners. Regular forms of communication in the form of feature news articles, public appearances and
presentations, and service on expert industry panels establish a small business’s place in their industry’s spotlight.
This positive perception can help improve overall effectiveness by demonstrating the company's ongoing
successes.

11. Products and Services

A good public relations campaign highlights a small business’s products and services through creative means. For
example, a publicity campaign that highlights a new product launch also promotes the business as a whole. A press
conference held to discuss an expansion has the added benefit of introducing key decision-makers to the general
public and putting a public face with the company name. These types of outreach efforts can help improve the
overall impression of an organization.

Corporate Advertising Role

Corporate Advertising is a promotional strategy that is designed to not only interest consumers in products and
services offered by an organization, but also to cultivate a positive reputation among consumers and others written
the business world. The focus of Corporate Advertising is on the company itself, with the attention to the products
produced by the organization being a byproduct of the advertising effort.

The four types of corporate advertising commonly used by organizations are:

1. PR Ad
2. institutionally Ad
3. corporate Identity Ad
4. recruitment Ad

1. PUBLIC RELATIONS AD: it is typically used to improve the company’s relations with labour, government,
customers or even suppliers. Thus, when a company sponsors arts events, programmes on television or charitable
activities, they are engaging in PR.

PR Ad is used when a company wishes to communicate directly with one of its important publics to express its
feelings or to enhance its point of view to that particular audience. They are designed to enhance a company’s
general community citizenship and to create public goodwill.

While corporate advertising does include some mention of company products, the object of this type of advertising
is not directly aimed at generating sales. Instead, corporate ads focus on the strength and reliability of the company
as a whole, the integrity that the business employs in all its business relationships, and how the company seeks to
better the circumstances of the geographic locations where it operates. As part of this process, it is not unusual for
one or more of the leading products to be mentioned, but there is usually no mention of pricing or upcoming
discounts of products found within corporate advertising campaigns. Those are left to product advertising efforts
that focus specifically on the goods produced for sale.

2. INSTITUTIONAL AD: otherwise called corporate advertisement

The promotional message aimed at creating an image, enhancing reputation, building goodwill, or advocating an
idea or the philosophy of an organization, instead of sales promotion. When employed by an organization to
market itself (instead of its products), it is called corporate advertising.
Institutional advertising is marketing designed to promote a company rather than a specific good or service. It can
be designed to make the public more aware of a company or to improve the reputation and image of an existing
company. Depending on the company, this can be a form of brand advertising.

Some forms of institutional advertising are so geared towards promoting a positive image that they effectively
discourage sales of a product to some extent. For example, alcohol firms may run commercials warning against
excessive drinking or driving while under the influence. Such commercials are usually designed to improve the
image of the company, making it seem more trustworthy or responsible.

Institutional Ads serve these purposes amongst others:

1. To report company’s achievement or accomplishment

2. To position company competitively in the market place
3. To reflect a change in corporate personality
4. To shove up stock prices of companies
5. To improve employees morale
6. To avoid communication problems with agents, dealers, suppliers, customers etc.

3. CORPORATE IDENTITY AD: This is embarked upon on rare occasion such as when organization decides to
change its name, logo, address, trademark or corporate signature or in case of a merger. When such occasions
occur, there is need for Corporate Identity Advertising, this is to communicate the change to the public’s.

Corporate identity comes into being when there is a common ownership of an organizational philosophy that is
manifest in a distinct corporate culture — the corporate personality. At its most profound, the public feel that they
have ownership of the philosophy. Often referred to as organizational identity, corporate identity helps
organizations to answer questions like “who are we?” and “where are we going?” Corporate identity also allows
consumers to denote their sense of belonging with particular human aggregates or groups.

In marketing, a corporate identity is the “persona” of a corporation which is designed to accord with and facilitate
the attainment of business objectives. It is usually visibly manifested by way of branding and the use of
trademarks. Many companies, such as McDonald’s and Electronic Arts, have their own identity that runs through
all of their products and merchandise. The trademark “M” logo and the yellow and red appear consistently
throughout the McDonald’s packaging and advertisements. Many companies pay large amounts of money for the
research, design and execution involved in creating an identity that is extremely distinguishable and appealing to
the company’s target audience.

4. RECRUITMENT AD: This is used when the prime objective is to attract employment applications.
Recruitment advertising, also known as Recruitment Communications and Recruitment Agency, includes all
communications used by an organization to attract talent to work within it.

Recruitment advertisements may be the first impression of a company for many people, and the first impression
the firm makes goes a long way to determining interest in the job opening being advertised. Recruitment
advertisements typically have a uniform layout and contain the following elements:

 the job title heading and location

 an explanatory paragraph describing the company, including the Employer Brand
 a description of the position
  entry qualifications
 the remuneration package (not always provided by the employer)
 further details and from where application forms may be sought

When faced with hiring many roles, corporate employers have many channels and options to choose from. They
may:

 A retained search firm

 A contingency search firm
 Retain a recruitment process outsourcing organization
 Use a candidate fulfillment service
 Retain a recruitment advertising agency
 Retain a specialist interactive recruitment advertising agency
 Leverage old media to advertise their openings (print, radio and television)
 Leverage job boards
 Leverage new media
 Invest in additional internal resources

Corporate Advertising Limitations

1. Consumers do not like this form of advertising. Studies have found that most consumers do not like
corporate ads because they do not understand the reason for the ads. This could result from large
corporations not clearly communicating their message in the advertisement itself.

2. It’s a costly form of self-indulgence. Corporate ads have been accused of only boosting the egos of the
board and upper management. Because these ads do not focus on a specific product, the content usually
discusses the overall company and, therefore, can be seen as boastful.

3. Consumers assume the firm is in trouble. Many people have suggested that the only times organizations
release corporate advertisements are when they are going through financial struggles or are seen in a bad
eye by the public. Because of the bad publicity, corporate ads then just attempt to fix the problem. 

4. Corporate advertising is a waste of money. Because the ad is not promoting a product, is not directed at
anyone specific, and not generally liked, many believe these forms of advertisements are a waste of
resources. 

Monitoring, Evaluation and control:

Measurement in advertising:

Advertising is often a significant portion of the operating budget of small and large businesses, which is why
measuring its effectiveness is so important. Measuring involves finding out how often people are viewing a
company's ads and if the core messages of these ads is registering with the target demographic. According to the
Association of Magazine Media, companies can measure the effectiveness of their advertising by comparing
results against objectives and by calculating the return on investment.

Performance

Measuring advertising performance involves tracking ad campaigns to see if the advertisements are running as
expected and the media platforms are delivering to the projected audience. For example, if a small business is
running radio ads for a new product, it should verify that the ads are running in the scheduled time slots and that
there is an appropriate separation from the competitors' ads. A simple way to determine an advertising message's
reach is to multiply the circulation or audience by the number of advertisement insertions, broadcasts or displays.
If the result falls short of expectations, a marketing manager may have to change the advertising media mix,
messaging or do both.

Return on Objectives

Companies can measure the "return on objective" in several ways. If the objective is to change consumer behavior,
a company could conduct a telephone or online survey to track brand awareness, ability to recall advertising
messages and purchase intent. For example, a pharmaceutical company could ask senior citizens if they have seen
ads for the company's new hypertension drug and if they can remember what the ads say. Companies could also
measure the response to advertising messages by calculating changes in website visits, clicks on Internet ads, store
traffic and sales. For example, a retailer could measure the change in store traffic after a newspaper ad to see if it
meets the objectives. If not, the message, the advertising medium or both may need to change.

Return on Investment

"Return on investment" is the incremental sales growth for each dollar of advertising spending. A high return
usually means that the advertising strategy is working, while a low or negative return may require a reevaluation of
the marketing strategy. A company may need to change its core message or advertise on several media platforms to
improve the effectiveness of its advertisements. For example, even a small shift in the ad budget from radio to
television or from print magazines to the Internet may improve the return on investment.

Considerations

Companies can measure the effectiveness of online advertisements in different ways, such as tracking the number
of clicks on their Internet ads, social media "conversations" referring to particular ads and website visits.
Companies can also measure the effectiveness of their billboard ads using surveys or measuring changes in store
traffic. Billboard ads are effective because people tend to remember the names of stores, restaurants and specific
events they see on these ads, according to a 2009 survey by Arbitron, a market research company.

Methods used for evaluation:

I. Pre-testing methods:

1. Check-list test:

A check-list is a list of good qualities to be possessed by an effective advertisement. A typical check- list provides
rating scale or basis for ranking the ads in terms of the characteristics.

These characteristics may be honesty, attention getting, readability, reliability, convincing ability, selling ability
and the like. The ad that gets highest score is considered as the best.
2. Opinion test:

Opinion test or consumer jury test is one that obtains the preference of a sample group of typical prospective
consumers of the product or the service for an ad or part of it. The members of the jury rate the ads as to their
head-lines, themes, illustrations, slogans, by direct comparison.

Getting preference from a juror is better than getting it from a member of general public or an ad expert.

Jury’s preference is arrived at by seeking answers to the questions as to which ad was seen first?

Which was most convincing?

Which was most interesting? And so on.

3. Dummy magazine and port-folio test:

Dummy magazines are used to pre-test the ads under conditions of approximation resembling normal exposure. A
dummy magazine contains standard editorial material, control ads that have been already tested and the ads to be
tested. The sample households receive these magazines and the interviews are conducted to determine recall
scores.

Port-folio test is like that of dummy magazine test except that the test ads are placed in a folder that contains
control ads. The respondents are given these folders for their reading and reactions. The test scores are determined
in the interview. The ad with highest score is taken as the best.

4. Inquiry test:

It involves running two or more ads on a limited scale to determine which is most effective in terms of maximum
inquiries for the offers made. These inquiry tests are used exclusively to test copy appeals, copies, illustrations, and
other components.

Any of these elements may be checked. The point that is to be checked is changed and all other components are
unaltered, to get the score.

5. Mechanical tests:

These mechanical tests are objective in nature unlike the one already explained. These help in provide good
measures as to how respondent are eyes and emotions reaching a given advertisement.

The most widely used mechanical devices are:

1. Eye Movement Camera

2. Perceptoscope

3. Psycho-galvanometer and

4. Tachistoscope.
II. Concurrent Testing Methods:

1. Co-incidental surveys:
This is called as coincidental telephone method also whereby a sample of households is selected, calls are made
during the time programme broadcast, the respondents are asked whether their radio or television is on, and if so,
to what station or programme it is tuned? The results of the survey are used to determine the share of response for
the advertisement or the programme.

2. Consumer diaries:
This method involves giving the families selected in advance of diary or individual diaries to the members of the
family. The selected families and individual respondents are asked to record the details about the programme they
listen or view. The diaries are collected periodically to determine the scores.

3. Mechanical devices:

The mechanical devices used to measure the ad differences concurrently are more common to broadcast media.

These are:

1. Audio meters

2. Psychogalvanometer

3. Tachistoscope and

4. Truck Electronic Unit.

4. Traffic counts:

Traffic counts are of special applicability to outdoor advertising. One can get good deal of information through
traffic counts. This counting is done by independent organisations may be private or public. This work is also
undertaken by advertising agencies. For instance, how many automobiles and other vehicles were exposed to a
bulletin board or a poster or a wall painting and how many times? Can be determined.

III. Post-testing methods:

1. Inquiry tests:

It is controlled experiment conducted in the field. In inquiry test, the number of consumer inquiries produced by an
advertising copy or the medium is considered as to the measure of its communication effectiveness.

Therefore, the number of inquiries is the test of effectiveness which can be produced only when the ad copy or the
medium succeeds in attracting and retaining reader or viewer attention. To encourage inquiries, the advertiser
offers to send something complimentary to the reader or the viewer, if he replies.

2. Split-run test:

A split-run test is a technique that makes possible testing of two or more ads in the same position, publication,
issued with a guarantee of each ad reaching a comparable group of readers. It is an improvement over the inquiry
test in that the ad copy is split into elements like appeal layout headline and so on. Here also, the readers are
encouraged to reply the inquiries to the keyed or the given address.
3. Recognition tests:

Recognition is a matter of identifying something as having seen or heard before. It is based on the memory of the
respondent. It attempts to measure the ad effectiveness by determining the number of respondents who have read
or seen the ads before. To arrive at the results, readership or listenership surveys are conducted.

4. Recall tests:

Recalling is more demanding than recognizing as a test of memory. It involves respondents to answer as to what
they have read, seen or heard without allowing them to look at or listen to the ad while they are answering.

There are several variations of this test. One such test is Triple Association Test which is designed to test copy
themes or the slogans and reveals the extent to which they have remembered.

5. Sales tests:

Sales tests represent controlled experiment under which actual field conditions than the simulated are faced. It
attempts to establish a direct relationship between one or more variables and sales of a product or service. It
facilitates testing of one ad against another and one medium against another.

To sum-up, ad effectiveness testing is a must to avoid costly mistakes, to select the best alternative from the
apparently equal alternatives, to resolve the differences of opinion and to add to the store of knowledge having
deep bearing on advertising effectiveness and efficiency. Ad effectiveness testing can be at three levels namely,
prior to, during and after the release of an ad.

There are many methods to choose. The final results depend on the validity, reliability and the relevance of each
method employed. Testing, if done in good faith, can payout its costs and rich dividends too.

International Advertising:

International Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually in
more than one country performed by an identified sponsor. Marketers see advertising as part of an overall
promotional strategy. Other components of the promotional mix include publicity, public relations, personal
selling, and sales promotion. Advertising is a cogent communication attempt to change or reinforce ones’ prior
attitude that is predictable of future behavior.

It can be viewed as a communication process that takes place in multiple cultures that differ in terms of values,
communication styles, and consumption patterns. It is also a business activity involving advertisers and the
advertising agencies that create ads and buy media in different countries. The sum total of these activities
constitutes a worldwide industry that is growing in importance. International advertising is also a major force that
both reflects social values, and propagates certain values worldwide.

International advertising involves recognizing that people all over the world have different needs. Companies like
Gillette, Coca-Cola, BIC, and Cadbury Schweppes have brands that are recognized across the globe. While many
of the products that these businesses sell are targeted at a global audience using a consistent marketing mix, it is
also necessary to understand the regional differences, hence it is important to understand the importance of
international marketing. Organizations must accept that differences in values, customs, languages and currencies
will mean that some products will only suit certain countries and that as well as there being global markets e.g. for
BIC and Gillette razors, and for Coca-Cola drinks, there are important regional differences for example advertising
in China and India need to focus on local languages. Just as the marketing environment has to be assessed at home,
the overseas potential of markets has to be carefully scrutinized. Finding relevant information takes longer because
of the unfamiliarity of some locations. The potential market size, degree and type of competition, price,
promotional differences, product differences as well as barriers to trade have to be analyzed in order to advertise
our product effectively in different countries

INTERNATIONAL ADVERTISING HELPS IN:

1. Remind customers and prospects about the benefits of your product or service
2. Establish and maintain your distinct identity

3. Enhance your reputation

4. Encourage existing customers to buy more of what you sell

5. Attract new customers and replace lost ones

6. Slowly build sales to boost your bottom line

7. Promote business to customers, investors

Global environment in advertising

Before a company decides to become global, it must consider social, cultural, economic, political, competitive, and
other factors relative to the global expansion it is considering. Creating a worldwide marketing plan is no simple
task. It is virtually impossible for a company to communicate one identical message in a unified voice to global
markets unless a company holds the same position against its competition in all markets (e.g., market leader, low
cost, etc.). This is rarely the case, so most global companies must be open to some level of localization and be
nimble enough to adapt to changing local market trends, tastes, and needs.

Global marketer must balance four potentially competing business objectives when developing worldwide
advertising: 1) building a brand while speaking with one voice, 2) developing economies of scale in the creative
process, 3) maximizing local effectiveness of advertisements, and 4) increasing the company’s speed of
implementation. Global marketers can use several approaches when executing global promotional programs:
exporting executions, producing local executions, and importing ideas that travel.

To successfully implement these approaches, marketers must ensure that their promotional campaigns take into
account how consumer behavior is shaped by internal conditions (e.g., demographics, knowledge, attitude, beliefs)
and external influences (e.g., culture, ethnicity, family, lifestyle) in local markets. Areas for attention include:

1. Language: Language differences are crucial in global marketing. There are nearly 3,000 languages in the
world. Language differences have caused many problems for marketers in designing advertising campaigns
and product labels. As discussed in this course’s discussion on naming, language can be problematic in the
global naming process, with numerous examples of brand names that work well in some languages but
have offensive or unfortunate meanings in other languages. Even countries that use the same language have
words with different meanings. Consider the British terms “flat” (apartment in U.S. English), “pants”
(underwear in U.S. English), and “lift” (elevator in U.S. English). Marketing messaging and materials
could easily go wrong if they are not adjusted to fit in-country dialect and usage. Language becomes even
more significant if a country’s population speaks several languages. An additional language consideration
for marketers is literacy rates. Depending on the target audience and market, literacy may be a significant
issue. Some countries, primarily less-developed countries, still have low literacy rates, such as Afghanistan
with just 38 percent adult literacy in 2015, and Haiti with 61 percent. India, with its burgeoning economy,
reported a literacy rate of 72 percent in 2015. In many countries, literacy rates can differ widely between
men and women in many countries, too.
2. Colors: Colors may have different meanings in different cultures. This highlights the importance of careful
testing of packaging and other visual elements intended for global audiences. For example, green is a
sacred color in the Muslim faith, and it is not considered appropriate for packaging and branding purposes
 in Middle Eastern countries. In Japan, black and white are colors of mourning and should be avoided on
product packaging. Purple is associated with death in some Hispanic nations.
3. Values: An individual’s values arise from his or her education, moral or religious beliefs and are learned
through experiences. For example, Americans place a very high value on material well-being and are much
more likely to purchase status symbols than people in India. Chinese consumers highly value the sense of
honor, dignity, and pride, and in some situations they will pay price premiums to “save face” by spending
what is perceived to be an appropriate amount to preserve their honor.
4. Business norms: The norms of conducting business also vary from one country to the next. In France, for
example, wholesalers do not like to promote products. They are mainly interested in supplying retailers
with the products they need.
5. Religious beliefs and holidays: In addition to affecting their values, a person’s religious beliefs can affect
shopping patterns and products purchased. In the United States and other Christian nations, the Christmas
holiday season is a major sales period. In China, the Chinese New Year bring out the shoppers. In India, a
string of Hindu festivals including Dussehra and Diwali mark a holiday season that extends over multiple
months.

Recommendations for Adjusting the Promotional Mix

When launching global advertising, public relations, or sales campaigns, global companies test promotional ideas
using marketing research systems that provide results comparable across countries. These systems help marketers
achieve economies of scale in marketing communications, since they reveal which messaging or creative elements
contribute to a product’s market success. Marketing-research measures of nonverbal factors such as flow of
attention, flow of emotion, and branding moments can provide insight into what is working in an advertisement or
other marketing communication piece across multiple countries and languages.

The same recommendations about how to research and understand a target market in domestic settings apply to
global settings. Marketing research is essential for marketers to build their understanding of which promotional
tactics will be successful in any country or region. Informed experimentation and trial and error are also good
teachers. Once marketers and brand managers discover what works (and what doesn’t) in the promotional mix,
they can import this knowledge to infuse creative ideas into other markets. Likewise, companies can use this
intelligence to modify various elements in their promotional mix that are receiving minimal or unfavorable
response from global audiences.

Internet advertising:
Delivering ads to Internet users via websites, email, ad-supported software, text messaging and Internet-enabled cellphones.
Also called an "ad network" or "ad serving network," Internet advertising organizations act as a middleman between the
advertiser and the Internet venues that display the ads. They sell the online campaign to the advertisers and then deliver the
ads to the sites that display them. The site owners receive a royalty based typically on the number of times users click the ads
(see click-through rate). Such organizations may provide software tools that enable companies to deliver their own ads. See
banner exchange, banner ad, Google AdWords and adserver.

Online advertising is a marketing strategy that involves the use of the Internet as a medium to obtain website traffic
and target and deliver marketing messages to the right customers. Online advertising is geared toward defining
markets through unique and useful applications. Since the early 1990s there has been an exponential increase in the
growth of online advertising, which has evolved into a standard for small and large organizations. Online
advertising is also known as Internet advertising or Digital Advertising.

Components of Internet advertising

1. Advertising

Online advertising involves bidding and buying relevant ad units on third-party sites, such as display ads on blogs,
forums, and other relevant websites. Types of ads include images, text, pop-ups, banners, and video. Retargeting is
an important aspect of online advertising. Retargeting requires code that adds an anonymous browser cookie to
track new visitors to your site. Then, as that visitor goes to other sites, you can serve them ads for your product or
service. This focuses your advertising efforts on people who have already shown interest in your company.

2. Content marketing

Content marketing is an important strategy for attracting potential customers. Publishing a regular cadence of high-
quality, relevant content online will help establish thought leadership. It can educate target customers about the
problems your product can help them resolve, as well as boost SEO rankings. Content can include blog posts, case
studies, whitepapers, and other materials that provide value to your target audience. These digital content assets
can then be used to acquire customers through organic and paid efforts.

3. Email marketing

Email is a direct marketing method that involves sending promotional messages to a segmented group of prospects
or customers. Email marketing continues to be an effective approach for sending personalized messages that target
customers’ needs and interests. It is most popular for e-commerce business as a way of staying top of mind for
consumers.

4. Mobile marketing

Mobile marketing is the promotion of products or services specifically via mobile phones and devices. This
includes mobile advertising through text messages or advertising in downloaded apps. However, a comprehensive
mobile marketing approach also includes optimizing websites, landing pages, emails, and content for an optimal
experience on mobile devices.

5. Paid search

Paid search increases search engine visibility by allowing companies to bid for certain keywords and purchase
advertising space in the search engine results. Ads are only shown to users who are actively searching for the
keywords you have selected. There are two main types of paid search advertising — pay per click (PPC) and cost
per mille (CPM). With PPC, you only pay when someone clicks on your ad. With CPM, you pay based on the
number of impressions. Google Adwords is the most widely used paid search advertising platform; however, other
search engines like Bing also have paid programs.

6. Programmatic advertising

Programmatic advertising is an automated way of bidding for digital advertising. Each time someone visits a web
page, profile data is used to auction the ad impression to competing advertisers. Programmatic advertising provides
greater control over what sites your advertisements are displayed on and who is seeing them so you can better
target your campaigns.

7. Reputation marketing

Reputation marketing focuses on gathering and promoting positive online reviews. Reading online reviews can
influence customer buying decisions and is an important component of your overall brand and product reputation.
An online reputation marketing strategy encourages customers to leave positive reviews on sites where potential
customers search for reviews. Many of these review sites also offer native advertising that allows companies to
place ads on competitor profiles.

8. Search engine optimization

Search engine optimization (SEO) focuses on improving organic traffic to your website. SEO activities encompass
technical and creative tactics to improve rankings and increase awareness in search engines. The most widely used
search engines include Google, Bing, and Yahoo. Digital marketing managers focus on optimizing levers — such
as keywords, crosslinks, backlinks, and original content — to maintain a strong ranking.

9. Social media marketing

Social media marketing is a key component of digital marketing. Platforms such as Facebook, Twitter, Pinterest,
Instagram, Tumblr, LinkedIn, and even YouTube provide digital marketing managers with paid opportunities to
reach and interact with potential customers. Digital marketing campaigns often combine organic efforts with
sponsored content and paid advertising promotions on key social media channels to reach a larger audience and
increase brand lift.

10. Video marketing

Video marketing enables companies to connect with customers in a more visually engaging and interactive way.
You can showcase product launches, events, and special announcements, as well as provide educational content
and testimonies. YouTube and Vimeo are the most commonly used platforms for sharing and advertising videos.
Pre-roll ads (which are shown for the first 5–10 seconds before a video) are another way digital marketing
managers can reach audiences on video platforms.

11. Web analytics

Analytics allow marketing managers to track online user activity. Capturing and analyzing this data is foundational
to digital marketing because it gives companies insights into online customer behavior and their preferences. The
most widely used tool for analyzing website traffic is Google Analytics, however other tools include Adobe
Analytics, Coremetrics, Crazy Egg, and more.

12. Webinars

Webinars are virtual events that allow companies to interact with potential and existing customers no matter where
they are located. Webinars are an effective way to present relevant content — such as a product demonstration or
seminar — to a targeted audience in real time. Engaging directly with your audience in this way gives your
company an opportunity to demonstrate deep subject matter expertise. Many companies leverage attendee lists in
other marketing programs (email and retargeting advertisements) to generate new leads and strengthen existing
relationships.

Advantages of internet advertising

1. Easy global coverage. Nowadays, people have a habit of searching for information about products and
services via search engines like Google, Bing, and others. Internet advertising is a way to demonstrate your
offers in front of over 4.3 billion web users around the globe. You can easily target the entire world via the
Internet.
2. Affordable for any budget. According to Seriously Simple Marketing, the minimum cost to reach an
audience of 2,000 is three times cheaper than traditional advertising methods, so any company from a small
family business to a huge enterprise can utilize online ads and get the most out of their financial resources.
3. Drives traffic to a website. The more visitors you get to the site, the more potential customers you have,
which will result in increased sales. Internet advertising aims to attract users’ attention and send them to
 your website. The offers displayed in the digital ads should arouse curiosity and give people a good reason
for clicking through your site.
4. Allows targeting. Unlike traditional marketing media that advertises to everyone without filtering, internet
advertising tailors the message to a specifically targeted audience — people who are most likely to convert
into customers. For instance, a travel equipment company may use social media ads for advertising to users
who are keen on travel, encouraging likes and shares.
5. Enables retargeting. Internet advertisements are a way to say, “hey, looks like a couple of days ago you
checked out this toaster. I’ve got a marvelous one for you here!” If many prospects visit your household
appliances online store without buying anything, remind them about your brand with banner ads displayed
on websites they browse.
6. It allows you to create various touchpoints with your audience. Internet advertising helps you to appear
in the right place at the right time to communicate with your audience. If you own a small bakery, use
socials like Instagram and Pinterest to demonstrate the products. To share news, and build long-lasting
relationships with your audience, reinforce them with email marketing. By mixing different types of digital
advertising wisely, you can show that your company is always present and ready to be of service.
7. It is measurable. Unlike offline marketing, where the cost and effectiveness are somewhat approximate,
you can precisely track the return on your efforts and internet marketing efficiency with web analytics
platforms like Google Analytics.

Disadvantages of internet advertising

The main challenges associated with advertising online include fierce competition, the cost of mistakes,
complicated analytics, and ad blindness. Let’s have a closer look.

1. High competition. Of course, this depends on your niche, but if you haven't invented something new,
you'll have to compete for clients' attention. This market is oversaturated, especially for eCommerce
businesses, so you need to put your customers' needs upfront and regularly improve your product to make it
competitive.
2. Mistakes are expensive. Targeting wrong people, selecting highly competitive keywords, and leaving your
ad campaign running after turning it off are the most common mistakes that can cost you a fortune. To
eliminate these mistakes, you need either a top specialist or a lot of experience. Both variants require
investments.
3. Complicated analytics. To analyze the performance of your ads, you need a third-party platform like
Google Analytics and some experience to interpret the results correctly. Medium-sized enterprises and big
brands have analysts to make the ads more targeted and effective.
4. Ad blindness. This term is related to banner blindness. Users see advertising almost every time they open a
web page. For this reason, they simply ignore banners without even noticing them. To fight this, make sure
that your banners target the right people who need your offer.

Types of Internet advertising.

There are many different types of online advertising - or internet advertising/web advertising as it is otherwise
known - and it can be difficult to know where to start. To help, we have highlighted some of the most important
types of online advertising for you to consider:

1. Social Media Advertising

2. Content Marketing
3. Email Marketing
4. SEM (Search Engine Advertising) - including PPC
5. Display Advertising - including banner advertising & retargeting
 6. Mobile Advertising

1. Social Media Advertising

Once you have established a clear social media marketing strategy, you can start to consider advertising on social
media platforms. Most social media sites now easily allow advertisers to utilise their reach and promote their
products from within the platform. They also include good analytics tools to assess the success of the investment
made. This might include a promoted tweet or post, a promotion of user-generated content or even an entire
campaign that is released across multiple social channels. , you can start to consider advertising on social media
platforms. Most social media sites now easily allow advertisers to utilise their reach and promote their products
from within the platform. They also include good analytics tools to assess the success of the investment made. This
might include a promoted tweet or post, a promotion of user-generated content or even an entire campaign that is
released across multiple social channels.

2. Content Marketing

Content Marketing is another great way to get a brand and message in front of the right people. It’s primary focus
is to attract organic traffic to a website by improving a site’s SEO, but once you have the strategy and content in
place, you can increase its reach and engagement by paying for the content to feature on relevant websites. Paid
advertising can help to increase the ROI of content marketing - i.e. without promotion, the production costs can
often outweigh the potential return.

Native advertising, a form of paid media, is a clever way of creating an ad that follows the theme of the site where
it is placed i.e. it is intentionally designed to look like the media where it appears, and is sometimes referred to as
an advertorial or sponsored content.

3. Email Marketing 

Email Marketing should be an integral part of your online communications as it’s an important way to keep in
touch with your existing customers. As such, consideration and investment should certainly be on your radar.
Whether you love or loathe Amazon, they are undoubtedly one of the leaders when it comes to sending targeted
email campaigns and we can all learn a lot from them in this respect. We have gone into the concept of email
marketing in more detail on this page. 

4. Search Engine Marketing (SEM) 

Search Engine Marketing is designed to increase the visibility of your website on the search engine results pages
(SERP) by paying to appear on search engines, such as Google. It is not to be confused with SEO (search engine
optimisation), which is the art of appearing as high as possible within the search engines without having to pay for
it. SEM is often called PPC (pay per click) and can be used on Google Adwords or Microsoft Bing Ads for
example. The effectiveness of the investment is generally measured by CPC (cost per click) or CPI (cost per
impression).

5. Display Advertising

Display advertising is when your advert - usually made up of branded photos, videos, graphics or rich media
content - are placed on third party websites, which when clicked, refer the user back to your own website. It’s
important to consider the journey the user takes when they click on an ad as it would be a waste of time, effort and
money to attract web traffic that doesn’t convert to business because the UX on the landing page hasn’t been
properly thought out.
One of the safest ways to advertise online is through carefully selected website placements that will complement
your brand positioning. It means you’ll always appear on sites that you actually WANT to be on, rather than sites
chosen by a third-party platform. This can be time consuming, so other alternatives include ‘contextual targeting’,
which is the automated process of selecting relevant websites based on the desired keywords, and ‘topic targeting’,
which is site selection based on having specifically similar content.

One of the most effective forms of display advertising is retargeting, or remarketing as it is otherwise known.
Unlike other banner ads, retargeted ads are served to users who have already visited your website or are an existing
contact in your database.

6. Mobile Advertising

With so many of us spending such a big part of our day using our smartphones, it’s no wonder advertisers are
using mobile advertising to reach their customers. However, this is becoming an increasingly regulated way to
market products and services, so it should be approached with caution. Different types of mobile specific
marketing includes advertising via mobile apps, push notifications, SMS/text messaging and MMS.

Unit- III

Sales Management and Organization:

Sales management refers to the administration of the personal selling component of a company’s marketing program. It
includes the planning, implementation, and control of sales programs, as well as recruiting, training, motivating, and
evaluating members of the sales force

The word sales management is a combination of two words- sales and management. Sales is the art of planning in the mind
of another a motive which will induce favourable action. The committee of American Marketing Association has defined it
as- “Selling is the personal or impersonal process of assisting and or persuading a prospective customer to buy a commodity
or a service or to act favourably upon an idea that has commercial significance to the seller.”

Sales management is the process of developing, planning, monitoring, and controlling the entire process of selling
your company’s goods or services. It also concerns recruiting, training, and supervising your sales force and covers
all pre-sales, sales, and post-sales activities.

Sales management is the process of hiring, training and motivating sales staff, coordinating operations across the
sales department and implementing a cohesive sales strategy that drives business revenues. Sales are the lifeblood
of any organisation and managing the sales process is one of the most important functions of any business.

Sales management can be seen as a segment of the organization’s marketing mix. It deals with the formation of
sales strategies; product merchandising and pricing; sales promotion activities; distribution function; and planning,
staffing, supervising, motivating and controlling of sales personnel to attain the desired sales objectives.

Sales Management Definition

Two sales management definition are mentioned below:

American Marketing Association (AMA) define sales management as:

“The planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning,
routing, supervising, paying and motivating as these tasks, apply to the personal sales force“.

B.R. Canfield define Sales Management involves the direction and control of salesmen, sales planning, budgeting,
policymaking, coordination of marketing research, advertising, sales promotion and merchandising and the integration in the
marketing programme of all business activities that contribute to the increased sales and profits.”

Objectives of Sales Management

Sales management objectives are categorized into two types:

1. Quantitative Objectives (Short-term)

2. Qualitative Objectives (Long-term)

Quantitative Objectives (Short-term)

1. To retain and capture market share.
2. To determine sales volume in ways that contribute to profitability.
3. To obtain new accounts of given types.
4. To keep personal expenses within specified limits.
5. To secure a targeted percentage of certain accounts of a business.

Qualitative Objectives (Long-term)

1. To do the entire selling job.
2. To service existing accounts, (customers).
3. To search and maintain customer cooperation.
4. To assist the dealer in selling the product line.
5. To provide technical advice wherever necessary.
6. To assist in training of middleman’s sales personnel.
7. To provide advice and assist the middlemen.
8. To collect and report market information of interest and use to the company management.

1) Achieving Sales volume

Achieving sales volume is the first objective of Sales. The word “volume” is critical because whenever
a product sales start, the market is supposed to be a virgin market. Thus there needs to be optimum penetration so
that the product reaches all corners of the region targeted. Ultimately, penetration levels can be decided on the
basis of sales volume achieved.

2) Contribution to profit

Sales brings turnover for the company and this turnover results in profits. Naturally, sales has a major contribution
to profit and it is categorized as a profit function in several organizations. But there is one more aspect to the
contribution of profit by sales.
The objective of sales management is to sell the product at the optimum price. Some companies
might target a premium pricing for a product to make it premium in the market. But if the sales team drops the
price, then the objectives are not being met and the profit is dropping. This has to be kept in check by seniors as
price drops directly affect the margin of the product.

3) Continuous growth

A company cannot remain stagnant. There are salaries to be paid, costs have been incurred and there are
shareholders to be answered. So a company cannot survive without continuous growth. If there is no innovation at
the product level or at the company level, then the company has to be blamed. But if the products are good, and
still the penetration is not happening, then it is the fault of sales manager and sales executives.

It is the job of marketing to take feedback and bring new products in the market. But if the sales team does not
provide the appropriate feedback of “Why the product is not selling”, then growth becomes impossible. This is
why, more penetration and more growth is in the hand of sales people.

4) Sales Management and financial results

Financial Results are another objective of sales management and are closely related and therefore sales
management has financial implications as well.

Sales – Cost of Sales = Gross Profit

Gross Margin – Expenses = Net profit.

Thus the variation in Sales will directly affect the Net profit of a company. Hence maintaining and managing sales
is important to keep the product / service / organization financially viable.

The Objectives of sales are therefore decided on the basis of where the organization stands and where it wants to
reach. It is a collaborated effort from the top management along with the marketing managers and sales managers
to provide with a targeted estimate.

Sales management components

Sales management stands on three pillars:

1. Strategy
Without having a clear strategy your sales efforts will be fruitless. To know what resources and specialists your
business may require, you should set up a sales process and plan a series of activities at every stage of your sales
funnel or sales pipeline. This can be done for either the whole company or in regard to individual brands, goods, or
services.
A sales funnel is a powerful analytical tool, if designed with a data-first approach. It describes a single customer’s
journey through 5 steps: awareness, interest, consideration, decision, and — the most desired stage for all
businesses — purchase. 
The funnel conditions sales pipeline — determined stages of reaching out to clients. It varies between companies,
depending on the market type, resources owned, and business objectives. But as a rule, the pipeline has such stages
as lead generation, qualification, meeting, proposal, and closing the deal. 
Keeping in mind the funnel and the pipeline, you’ll be able to come up with a documented sales plan. This
typically covers:

 Development goals
 Sales KPIs
 Buyer personas profiles
 People and processes
 Exact selling methodologies
 Software needed.

2. Operations

A sophisticated strategy isn’t worth a penny without being implemented. You need the team on paper to come true.
People are the stumbling block that separates average companies from the best players in the market.
It’s not only that sales reps bring you revenue — they are your brand’s ambassadors. Salespeople directly deal
with:

 Lead conversion. They build a bridge between what the client needs and what your company can offer.
 Business growth. Sales representatives initialize referrals and help build customer loyalty.
 Client retention. Their connections with customers shouldn’t be under-evaluated. Remember that a 5%
increase in retention rates may boost profits by 25%.

3. Analysis

Sales analysis concerns either KPIs and sales metrics. A key point here is to bring actionable insights that can be
further used in the sales strategy. The following effectiveness indicators are usually used by most sales managers:
  Total revenue
 Revenue growth rate
 Revenue distribution by sources
 Revenue distribution by representatives
 Average conversion rate
 Sales-to-date
 Average purchase value.

Nature of Sales Management

To understand the concept of sales management clearly, we must go through its following characteristics:

 Goal-Oriented: Similar to other management activities, sales management also have a specific purpose
and intended for the achievement of specified goals or objectives.
 Continuous Process: The sales manager needs to perform sales management functions regularly, and this
process is never-ending.
 Systematic Approach: It is an organized way of handling the sales function of the company where every
problem has a defined and proven solution.
 Relationship Selling: The salespeople make efforts to build a strong customer relationship to sell the
products or services effectively.
 Marketing Management Integration: Marketing is a broader concept; marketing management includes
all the activities related to sales management.
 Different Sales or Job Position: It is the combined efforts of the whole sales team, including salesperson,
sales executive, sales head, sales manager and after-sales service personnel.
 Pervasive Function: It is a universally applicable concept which has been adopted and tested by every
kind of business organizations.

Importance of Sales Management

Why is sales management considered to be an inevitable part of business organizations?

The following benefits of sales management will enlighten you over the above question:

1. Realizes Organizational Objectives: Sales management is practised to attain the pre-defined organizational
goals or objectives which can be increasing profitability, customer satisfaction, market acquisition, and so on.

2. Manages Sales Force: The sales team includes personnel performing various sales-related tasks; the activities
of the sales force are hence monitored and regulated through sales management.

3. Better Planning: Planning is an essential function of sales management; it includes the formulation of goals,
strategies, programmes and budget.

4. Sales Maximization: It also helps the management in setting sales target, which are though higher than the
previous goals but are possibly attainable.

5. Builds Strong Relationship: The sales personnel emphasizes on building up strong interpersonal relations
with the customers, as their primary motive. Since it ultimately drives the sales and profit maximization.

6. Optimizes Distribution: It provides for maximum utilization of the marketing channels by identifying the key
problem areas and finding a solution to these issues.
7. Aids Top Management Decision Making: It comprises of the comparison between the desired and actual
result and thus, supports the top-level management or directors to make crucial decisions (such as business
expansion and closure).

8. Improves Profitability: The most critical concerns of top-level management is profit maximization, which is,
therefore, passed on as a primary objective of the sales management.

9. Develops Personnel: In the process of sales management, the sales personnel is provided sufficient training,
growth opportunities and support to ensure their overall development.

10. Product Development: The sales team are in constant touch with the clients or customers, which helps the
management to know about their preference and taste.

Sales executive as a coordinator

A sales executive helps to build a business by recognizing new business prospects and selling products to
them. They maintain relationships with the current clients and also develop and maintain new client
relationships.
They are required to stay ahead of their competition. They regularly work on improving their skills through
seminars, attending classes, or workshops.

Sales Executives  are extremely important for an organization to bring in revenue. They are also the liaison
between the organization and clients. Depending on the type of product or service sales could be classified as
field sales and inside sales. Even though the approach differs in these two types of sales, the roles and
responsibilities are similar.

When it comes to field sales, the executives need to visit the client’s place for meetings, follow-ups, and support. On the
other hand, inside sales involve contacting the clients through e-mails, calls, and virtual meetings eliminating the need
to physically visit their workplace.

Sales Coordinators are the support for the Sales team in their duties in not only Sales but also in admin duties.
Sales coordinators play an important role in coordinating between the sales and marketing team and also in other
admin duties. Although their primary work is to assist senior sales managers with their functions, their functions
can also extend beyond the sales team at times.

The need for Sales Coordinator

Sales jobs involve a lot of traveling and field visit. While the primary function of junior Sales reps are based
mostly on the field and involves client visits, senior sales managers have a mixed profile. They have to visit top
clients and be present for negotiation in bulk deals and they also have to manage team and report to the superiors
about the progress.

They are involved in preparing and distributing targets, close sales deals, manage a team, disburse the sales
incentives by cross-checking with numbers and vis-à-vis target, and maintain records and other functions. Thus
their role is a mix of field and admin jobs and when it comes to choosing, they always choose to work in the field
with customers rather than perform admin duties. Here, the role of Sales coordinators comes into the picture. They
support the senior managers with admin duties.
Job Profile of Sales Coordinators
1. Assist in office duties, maintain the records, attend phone calls, walk-in customers.
2. Ensure the office is correctly regulated by making available all required things, arranging meetings of
different teams and coordinating with other teams to avoid conflict in schedules
3. Coordinating the sales team by managing schedules, filing documents and communicating relevant
information to the management.
4. Percolate information, announcements, new policies etc from higher management to the teams
5. Ensuring the adequacy of sales-related equipment or material by acting as a mediator with the Marketing
team and Sales team
6. Ensure the achievement of all sales teams is filed properly before the closing.
7. Making sure that salaries and incentives are disbursed on time.
8. Responding to complaints from customers and give after-sales support when requested
9. Store and sort financial and non-financial sales data and other relevant information in electronic form and
produce as and when required
10. Ensure collection details are updated by every team in order for review by higher management
11. Collect and compile data in order to present to the senior management as and when required.
12. Handle the processing of all orders with accuracy and timeliness
13. Inform clients of unforeseen delays or problems
14. Monitor the team’s progress, identify shortcomings and propose improvements to senior management
15. Assist with the preparation and organizing of promotional workshops, events or courses
16. Assist the Sales team in preparation of Quotations, tenders, and other necessary documents
17. Ensure adherence to laws and policies of the company by all employees
18. Supervise the office and obtain the necessary approvals for the smooth functioning of the sales teams.
19. Manage the expenses of the office and related functions
20. Work as a team with the sales team to ensure overshooting of targets before the deadlines
 21. Assist senior managers in preparation of reports and timely submission of formats if any.
22. Assist in any other sales or marketing related function.

Skills required for Sales Coordinator

Since multi-tasking is required by sales coordinators, in terms of background an educated person with little
experience in functions of sales is preferred. College graduation is required. Proficiency in English is of
importance since many times, the customer first interacts with Sales Coordinators. Good body language along with
basic mannerisms and politeness is preferred in them. Multilingual skills are an asset.

They should also know have basic computer knowledge along with commonly used computer software’s such
as Microsoft applications is required. They should be good with numbers and may be required to do basic
calculations which may or may not be computer assisted.

Although the experience and education required to be a sales coordinator vary depending on the industry, in some
cases, a high school diploma or a graduate degree with previous experience in Sales or related fields would be
preferred by employers. Other employers may require a bachelor’s degree plus previous experience in that
industry. For some industries, two to five years of sales or office administration experience are required.

A radiant personality with good character is also considered. The sales coordinator should be able to gel well with
the teams and be the first point of contact for employees as well as customers for sales related queries. If the
company is using any software’s, the management of the same is the responsibility of Sales Coordinators.

Advantages of having a sales coordinator:

1) Focus
Senior sales manager and the sales team can focus on attending sales calls and generating sales rather than looking
in admin functions. The admin functions can be left with Sales coordinators.

2) Timely work
Sales coordinators ensure timely work is done and reports and formats are filled and sent across and submitted.
Any customer queries can be attended and solved by them since there will be a dedicated person for the same.
Sales incentives are a crucial part of the Sales job and ensuring proper disbursement of the same after calculating
the numbers against achievement and targets, and if need be, confirming it against Sales unit’s numbers is a
tedious job and getting all of it done on time is the function of Sales Coordinators.

3) Regular Follow-ups
Sales managers, in workload, overlook few things which are followed up by them. They get the job done in
absence of Sales Managers.

4) Support system
Sales coordinators are a support system for the Sales team. In case of the senior manager being absent or the
position being vacant, all of the admin duties are taken care by Sales coordinators along with other functions.

5) Support Rewards and Recognitions

In few organizations, Sales coordinators are also involved in RnR’s of the company since they are associated with
sales functions and know the team and team members in detail. They can also shed light on the work done by
an individual employee, if need be, and assist with RnR functions.
What is Sales Control?
Sales control ensures the productivity of the sales force and its mechanism varies from companies to companies.
Control on sales force keep them alert, creative, and active and make consistent them in their actions. An effective
and suitable sales control system is essential for both companies as well as salespeople. Sales control is one of the
functions of sales management which ensures the sales achievement and profit objectives of the company by
coordinating effectively and efficiently the different sales functions.
One of the most important responsibilities of a sales manager is to exercise control over sales and the performance
of selling activities. Sales need to be controlled both on an ongoing (continuous) basis as well as overall,
periodically.

Why sales control is important?

The control over the activities of salespersons is exercised by the manager through supervision. The
annual target can only be achieved only when all activities are carried out as per plan. Following are the reasons
that show why sales control is important.

i) No matter the salesman works independently or works at longer distances from the manager. In such scenarios,
problems of coordination might arise with a manager or with other salesmen. Therefore, in such scenarios, control
is necessary.

ii) it is important to keep the transparency of all the actions of a salesman with the manager so that negative
deviations can be analyzed and corrected.

iii) it is important to direct the efforts of a salesman to maximize the profitability and ensuring maximum
utilization of men and material.

iv) Customers are most valuable for every business. therefore, it is important to address the problems and
complains made by customers. in this way, the positive image of the organization can be made in the market.
the sales manager should direct salesmen to keep customers on top of their priority and keep them happy and
satisfied.

Steps in Sales Control

1) Setting sales Force Standards

A standard is a target against which the performance of a salesperson can be measured. It can be used for
comparison and usually, supervisors insist to follow the standards. It is important that the standard should be
realistic and achievable. A very high standard is of no use as it will be unattainable and will only demotivate
people.

Standards should be designed by keeping in mind the resources of an organization and it is important that
standards must be set in numerical or measurable value. for example, 1 crore standard sales per annum, 5 lakhs
standard profit per annum, or minimum 4% reduction in cost. Most of the times, it becomes difficult to put the
standards in numerical terms.

For example, the quality standard for work or quality standards for managerial works, etc. it is important to specify
a time limit within which standards must be achieved and standards must be kept for a short period of time.
For example, if a company has set a standard of sales of $12,00,000 per annum then sales of $1,00,000 should be
set as a standard for sales every month. The advantage of having short term targets is that the issues or problems
can be detected in the early phase and dealt fast.

In addition to this, standards can be revised from time to time and can be changed according to the situation. For
example, in festival season such as Christmas, there are some companies which make more business than the
others.

2) Measuring Actual sales Performance

once the standards are set for salespeople to follow their performance is measured on the basis of work done by
them. A performance which can be measured in numbers is usually easy to measure than the other performances.
However, measuring qualitative as well as quantitative performance is equally important. It should be considered
ethical to achieve quantitative standards by ignoring qualitative standards.

Therefore, it is important to fix certain quality standards so that performance can be measured easily when the
number of rejections sales returns increase. The performance of a manager is measured on the basis of the overall
performance level of the department. It is important to measure the performance in a short period of times to get an
accurate estimation.

3) Comparing actual Performance with Standards

to measure and analyze the performance of a salesperson, it is important to compare the actual performance with
the standard performance. if both performances match the controlling functions cease there.

However, in the case of mismatch manager puts efforts to find out the reason behind the deviation in performance.
a minor deviation in performance can be ignored, however, strict actions should be taken when there is a major
deviation between both actual and standard performances.

4) Correcting Deviations and taking Follow-up actions

it is important to take all major deviations in the eyes of top management. The deviation can be divided into two
categories such as critical point control and management by exception.

Types of Sales Control

Sales budget and sales programs are the basic available tools to control the efforts. Other available tools are
1. Sales Budget
2. Sales Programs
3. Sales Audit
4. Sales Analysis
The above tools can be used in identifying the strength and weakness of the internal processes and opportunities
and threats from the external environment. Further it will help the management in locating the defect in the
functioning of the sales department and take corrective measures.
1 Sales Budget
Sales budget creates a overall constraint for the sales team to operate within. Budget in terms of expenses and
efforts spent can control the sales activities well and align them with company's sales objectives and profit targets.
A sales team may be able to perform well and meet sales target but if the cost spent to achieve the same is very
high then the profit would be less. Hence companies assign a sales budget for the sales activities.. Sales Programs
Sales program are a set of activities, training and best practices which a company follows for performing sales
activities. A sales program can train the sales force well on the companies values so that the sales team follows
them when they go on field to sell the products and services. Through a program it can be ensured that all the sales
team members follow similar approach and system to achieve it. 
2 Sales Audit
Sales audit is the systematic and unbiased review of the basic objective and policy of the selling function of an
organization. Sales audits help in improving the effectiveness of the sales arm of the organization. Audits normally
examine six aspects such as
Objective of the company
Internal policies
Structure of the organization
Sales methods
Procedures
Sales personnel
3 Sales Analysis
Sales analysis is the study of sales volume operations to find the sales and profit trend. It helps in achieving better
sales performance. It also provides insights on the sales territories, type of customers and products.

Methods of Controlling Sales Force

There are different types of sales force controlling methods to control the efforts of the sales force. However, these
methods are not ideal for all organizations and scenarios. Applicability of a controlling method depends on criteria,
areas, and different aspects used for measuring and comparing.

Followings are the widely used sales force controlling methods

1) Establishing sales Territories

Establish sales territories for the members of your sales force. In this way, they will not be competing with one
another and focus entirely on their getting leads and making more and more sale. In addition to this, when the
territory is well-defined to the members of the sales the chances of missing out on potential customers reduce and
it also becomes easy for a salesperson to establish a relationship with customers to the future business.

2) Allocation of sales Quota

most sales driven businesses define sales quota to each of its employees before one financial year. Sales quota
gives a goal to the salesperson to work on and also help the company to keep the estimation of revenue generation
by the end of a financial year.

The performance of a salesperson can be measured on the basis of sales made by them. However, sales quota
varies from one sales person to another salesperson as depending on the area allotted to them and products sold by
them.

3) Maintaining contact with a salesperson

it is important to keep constant contact with the members of the sales of your sales team. In this way, you can keep
them motivated and also can help them to solve issues that they face in cracking sales deals.

The sales person can be contacted through phone calls or by face-to-face meetings.

4) Determining authorities and rights of salespersons

it is very important to make your sales team members aware of the rights and duties they have. By being aware
they can perform their job better and efficiently.

5) Salesman’s reporting

Reporting is one of the most famous and used methods to keep track of the performances of salespeople. You
should make clear how and when they should report to their subordinators.

6) Complaints and Objection Notes

it is important to keep track of complaints and objection made by both salespersons as well as customers. reacting
to complaints and objections will eventually help you to improve your work and services provided by your sales
team.

7) Analyzing Sales Expenses

Salespeople are usually allocated limited expenses every day so that they can reach customers without many
difficulties.

However, some salespersons are known to take advantage of this facility. Therefore, expenses submitted by them
should be analyzed properly before approving them.

8) Observation and visits and field trips

Managers usually stay in touch with their team members over phone and emails. However, it is important that you
should go out on field trips with your team members at least once in six months.

This can help you to analyze how your team members are performing and what is their relationship with your
customers. on the other hand, you will come to know about the hardships that your team members face while
working in the field. This can make you more empathetic towards them.
9) Providing sufficient sales tools:

Sales tools are important for salespeople to make sales efficiently. Sales tools include material and literature like
sales manual, sales literature, order forms, visiting cards, and small video clips to teach them to make sales
effectively.

Sales organization
Organisation is a structure as well as a process of putting together this structure. In organizational process, lines of
authority are defined. We know who our superior is, and whom we are reporting to. The superior has the authority
to direct us. He assigns part of his work load to us, and creates our duties/responsibilities.

Sales organisation consists of human beings or persons working together for the effective marketing of products
manufactured by the firm or the products purchased for resale. Sales organisation co-ordinates the efforts of
members of a group to bring about a desirable result. It provides an efficient, economic and flexible administrative
set up to ensure timely movement of products from the warehouse to the ultimate consumer. Thus it provides
satisfactory job to buyers and sellers.

A sales organisation has a number of departments. It has a planned and well co-ordinated structure. It performs the
functions of planning, organizing and controlling marketing and distribution of products. Sales organisation is a
foundation for effective sales planning and sales policies. Systematic execution of plans and policies and
programmes of a sales organisation control all the sales activities. As such it ensures maximum efficiency and
profitability without losing consumer service and satisfaction.

Significance of Sales Organization

Let us now understand the significance of sales organization.

1. To plan purchase
The sales of the company depend on the sales anticipation. The sales will increase only when the consumer purchases the
goods or services. Therefore, the company has to plan the sales according to the consumer need and want, meaning where
they want the product, what they want etc. The planning and development is done accordingly to satisfy the need of
consumer.

2. To create pattern of demands for products

The demand of the product is created to lead to sell in the market. When a product is manufactured in the factory, it is not
sold automatically. Salespersons push the product to consumers. But even they cannot force the consumer to buy the
product. The sale depends on the consumer’s need and perception. This need is created by the selling skills, promotions
through advertisements, etc., which in turn help in creating demand in market.

2. To handle the orders received

This is an important step where the salesperson has to answer the calls and queries of the customers, receive orders and
make the product ready as per the demand of consumers.
Finally, the products are packed and dispatched as per the expectation of consumer; all these are imperative and effective
tasks.

3. To collect the dues

Sales cannot always be done for cash. Bulk sales are made on credit. It’s very difficult for an organization to perform only
on the basis of cash sales; in this competitive market, credit sales play a crucial role.
After the credit sales have been done, the organization has to collect dues. It is a very challenging task as the salesperson has
to retain the business and still get the task done.
 4. To handle the task of personnel management
Every organization wants best sales personnel to enhance the sales. This depends on training. The organization has to select,
train, motivate, monitor and control its sales personnel. Here the company has to make an investment in sales personal.
In summary, we can conclude that there is an immense impact of sales organization on a company.

Types of sales organization

There are four main types of sales organizational structures:

1. Functional Structure
2. Geographic Structure
3. Market-Based Structure
4. Product Sales Force Structure

Each one has its own pros and cons that you should consider before implementing any of the structures in your
business.

1. Functional Structure
Function structure refers to the sales organization structure that focuses on specialization within the marketing
team. This means that everyone has their own purpose to fulfill within the team based on their specialties, interests,
and other factors.

Having a sales team that runs by a functional structure is more efficient, but it does come with a plethora of
problems. It may sound great to have each person specialize in their tasks, but sales is a very interwoven
department. This means that people need to coordinate a lot in a sales team that runs by a functional structure.

Having specialization can also be difficult when you're handling clients and accounts from different geographic
regions. Some people may not be able to handle multi-lingual accounts or they may not know how to interact with
people of different cultures.

In addition, there may be some problems with duplicate information. As tasks and to-dos run around the office, it's
likely that multiple people are going to end up with the same account at the same time. This is because processes
tend to run simultaneously in the sales team.

Having duplicate processes going around may sound efficient at first, but it can be detrimental to an account. This
is especially if both sales associates are interacting with a customer at the same time. It can be overwhelming to
perform multiple processes on the same client at once.

2. Geographic Structure
Geographic sales structures sound like what they are. Sales teams that run by this structure organize by location.
 So, let's say that you have some clients in Atlanta, others in Boston, and others in New York. With a geographic
organizational structure, you're likely to break your sales team between these cities. This is also known as a
territorial sales force structure.

Geographic sales structures are extremely popular in the sales world. They come with too many benefits to ignore.

 First, sales teams that are organized based on the geographical location of their clients cost much less. It
doesn't take a lot to leave certain sales reps in certain areas. If you weren't organizing based on region, you may
have to move your sales reps all over the place, which can add up in cost over time.

 Second, a successful sales team in one geographic area leads to continued growth in that area as well as the
surrounding areas. By taking care of one region at a time, you're more likely to be successful in caring for that
region.

 Third, clients in a certain geographical area will come to know your sales rep in that area extremely well.
Even if you have multiple, it's likely that it's a small team that will split up the clients in the area.

If customers get to know your sales representatives well, you're more likely to make more sales and increase
customer loyalty. This means more revenue in the future and better customer relations overall.

Plus, those existing customers may bring more in.

That being said, it may be difficult to decide on your layout. You need to know where to place territory lines for
your sales reps to follow.

Plus, the sales reps that are located in these different areas won't be able to specialize. This can make more difficult
sales tasks harder to do on their own.

3. Market-Based Structure
A market-based structure, also known as a customer sales force structure, refers to a sales team that is organized by
customers or industry. More likely, they're grouped by industry.

By placing your sales reps in a specific industry, you're giving them a chance to specialize in that industry and the
needs of the companies within that industry. Plus, by becoming experts, your sales reps will have a better chance to
grow stronger relationships with your current and potential clients.

For companies that aren't focused on one industry or a few industries, it's likely that a market-based structure
would be advantageous. This is especially given that higher-ups on the management team can bounce around from
industry to industry that the sales reps are specialized in.

By organizing your team strategically in this way, you'll be able to make more sales and build stronger bonds with
your clients.

Unfortunately, market-based structures come with higher costs and difficulties in sorting the location of different
companies. Obviously, companies don't base their location on what industry they're in (entirely). This means that
some tech companies are in San Francisco, others are in Nashville, and others are in Minnesota.
You'll have to move your sales reps around a lot to make up for the splotchy geography of different industries. This
can raise your costs and leave your sales reps whipping from one area to the next.

4. Product Sales Force Structure

The product sales force structure focuses on the products that clients make. This can be based on individual
products or product types. This organizational structure is the most specialized of all of these options. 

With this kind of sales organizational structure, you may find that your sales reps are more attuned to how to sell to
certain companies based on the products they have. In fact, you'll have sales reps that can handle one product type
at once company and the same product type at another company.

This kind of specialization is great if your company focuses on one industry, but it can become a little much when
you're bringing multiple industries with multiple products in at once.

Sales reps can get interwoven with too many factors. This may cause communication issues and the need for more
coordination with each, individual sales rep.

Objectives and theories of personal selling

Objectives of Personal Selling:

The major objectives of salesmanship are as follows:

(i) Attracting the Prospective Customers:

The first and foremost objective of a salesperson is to attract the attention of people who might be
interested to buy the product he is selling.

(ii) Educating the Prospective Customers:

The salesman provides information about the features, price and uses of the product to the people. He
handles their queries and removes their doubts about the product. He educates them as to how their
needs could be satisfied by using the product.

(iii) Creating Desire to Buy:

The salesman creates a desire among the prospective customers to buy the product to satisfy specific
needs.

(iv) Concluding Sales:

The ultimate objective of personal selling is to win the confidence of customers and make them buy
the product. Creation of customers is the index of effectiveness of any salesperson.

(v) Getting Repeat Orders:

A good salesperson aims to create permanent customers by helping them satisfy their needs and
providing them product support services, if required. He tries for repeat orders from the customers.

Personal Selling Process:

The process of personal selling includes prospecting and evaluating, preparing, approach and
presentation, overcoming objections, closing the sale and a follow up service.

1. Prospecting and evaluating:

The effort to develop a list of potential customers is known as prospecting. Sales people can find
potential buyers, names in company records, customer information requests from advertisements,
telephone and trade association directories, current and previous customers, friends, and newspapers.
Prospective buyers predetermined, by evaluating (1) their potential interest in the sales person’s
products and (2) their purchase power.

2. Preparing:

Before approaching the potential buyer, the sales person should know as much as possible about the
person or company.

3. Approach and presentation:

During the approach, which constitutes the actual beginning of the communication process, the sales
person explains to the potential customer the reason for the sales, possibly mentions how the potential
buyer’s name was obtained, and gives a preliminary explanation of what he or she is offering. The
sales presentation is a detailed effort to bring the buyer’s needs together with the product or service
the sales person represents.

4. Overcoming objections:

The primary value of personal selling lies in the sales person’s ability to receive and deal with
potential customers’ objections to purchasing the product. In a sales presentation many objections can
be dealt with immediately. These may take more time, but still may be overcome.

5. Closing the sale:

Many sales people lose sales simply because they never asked the buyer to buy. At several times in a
presentation the sales person may to gauge how near the buyer is to closing.

6. Follow up:

To maintain customer satisfaction, the sales person should follow up after a sale to be certain that the
product is delivered properly and the customer is satisfied with the result.
Theories of Personal Selling

1. AIDAS theory of personal selling

2. “Right Set of Circumstances” theory of selling

3. “Buying Formula” theory of selling

4. “Behavioral Equation” theory

AIDAS Theory of Selling:

This theory, popularly known as AIDAS theory (attention, interest, desire, action and satisfaction), is based on

experimental knowledge. This theory is very common.

According to this theory potential buyer’s mind passes through the following stages:

1. Attention Getting:

It is the crucial step in the AIDAS process. The objective is to put the prospect into the right state of mind to

continue the sales talk. The salesperson has to convince the prospect for participating in the face-to-face interview.

A good beginning of conversation may set the stage for a full sales presentation. The salesperson must apply his

social and psychological skills to draw the attention of the prospect to his sales presentation.

2. Interest Creating:

The second step is to intensify the prospect’s attention so that it involves into strong interest. To achieve this, the

salesperson has to be enthusiastic about the product. Another method is to hand over the product to the prospect

and let him handle it. Brochures and other visual aids serve the same purpose. Throughout the interest phase, the

hope is to search out the selling appeal that is most likely to be effective.

3. Desire Stimulating:

After the attention getting and creating interest, the prospect must be kindled to develop a strong desire for the

product. This is a ready-to-buy point. Objection from the prospect will have to be carefully handled at this stage.
Time is saved and the chances of making a sale improved if objections are anticipated and answered before the

prospect raises them.

4. Action Inducing:

If the presentation has been perfect, the prospect is ready to act, that is, to buy. Very often there may be some

hesitation on the part of the prospect at this stage. The salesperson should very carefully handle this stage and try

to close the deal effectively. Once the buyer has asked the seller to pack the product, then it is the responsibility of

the seller to reassure the customer that the decision was correct.

5. Satisfaction:

The customer should be left with the impression that the salesperson merely helped in deciding. After the sale has

been made, the salesperson should ensure that the customer is satisfied with the product. The salesperson should

sense the prospect’s mind and brief his talks.

“Right set of circumstances” Theory of Selling:

It is also called the “situation-response” theory. It has its psychological origin in experiments with animals. The

major emphasis of the theory is that a particular circumstance prevailing in a given selling situation will cause the

prospect to respond in a predictable way. The set of circumstances can be both internal and external to the

prospect. This is essentially a seller-oriented theory and it stresses that the salesman must control the situation in

such a way as to produce a sale ultimately.

“Buying Formula” Theory of Selling:

The buyer’s needs or problems receive major attention, and the salesperson’s role is to help the buyer to find

solutions. This theory purports to answer the question: What thinking process goes on in the prospects’s mind that

causes the decision to buy or not to buy? The name “buying formula” was given to this theory by strong.

The theory is based on the fact that there is a need or a problem for which a solution must be found which

would lead to purchase decision, as shown below:

Whenever an individual feels a need, he is said to be conscious of a deficiency of satisfaction. The solution will

always be a product or service or both and they may belong to a producer or seller. The buyer develops interest in

buying a solution.

In purchasing, the “solution” involves two parts:

1. Product or service or both,

2. The brand name, manufacturer or the salesperson of the particular brand name:

The product or service (Brand name) must be considered adequate to satisfy the need and the buyer must

experience a pleasant feeling or anticipated satisfaction. This ensure the purchase.

Behaviour Equation Theory of Selling:

This theory is a sophisticated version of the “right set of circumstances” and this theory was proposed by Howard,

using a stimulus response model and using large number of findings from behavioural research. This theory

explains buying behaviour in terms of purchasing decision process, viewed as a phase of the learning process, four

essential elements of learning processes included in the stimulus response model are drive, cues, response and

reinforcement, which are given below, in brief:

1. Drive is a strong internal stimuli that impel buyers’ response. Innate drives stem from psychological needs and

learned drives such as striving for status or social approval.

2. Cues are weak stimuli that determine when the buyer will respond. Triggering cues activate the decision process

whereas new triggering cues influence the decision process.

3. Response is what the buyer does.

4. A reinforcement is any event that strengthens the buyers’ tendency to make a particular response.

Howard believed that selling effort and buying action variables are multiplicative rather than additive.

Therefore, Howard incorporated these four elements into a behavioural equation that is:

B=P×D×K×V

P = Response or internal response tendency, i.e. the act of purchasing a brand or a particular supplier.

D = Present drive or motivation level

K = “Incentive potential” that is, the value of product or brand or its perceived potential value to the buyer.

V = Intensity of all cues: triggering, product or informational.

Analyzing market potential:-

What is a market analysis?

A market analysis is a thorough assessment of a market within a specific industry. With this analysis, you will
study the dynamics of your market, such as volume and value, potential customer segments, buying patterns,
competition, and other important factors. A thorough marketing analysis should answer the following questions:

 Who are my potential customers?

 What are my customers’ buying habits?
 How large is my target market?
 How much are customers willing to pay for my product?
 Who are my main competitors?
 What are my competitors’ strengths and weaknesses?
How to conduct a market analysis

While conducting a marketing analysis is not a complicated process, it does take a lot of dedicated research, so be
prepared to devote significant time to the process.

These are the seven steps of conducting a market analysis:

1. Determine your purpose.

There are many reasons you may be conducting a market analysis, such as to gauge your competition or
understand a new market. Whatever your reason, it’s important to determine it right away to keep you on track
throughout the process. Start by deciding whether your purpose is internal – like improving your cash flow or
business operations – or external, like seeking a business loan. Your purpose will dictate the type and amount of
research you will do.

2. Research the state of the industry.

It’s vital to include a detailed outline of the current state of your industry. Include where the industry seems to be
heading, using metrics such as size, trends and projected growth, with plenty of data to support your findings. You
can also conduct a comparative market analysis to help you find your competitive advantage within your specific
market.

3. Identify your target customer.

Not everyone in the world will be your customer, and it would be a waste of your time trying to get everyone
interested in your product. Instead, decide who is most likely to want your product using a target market analysis
and focus your efforts there. You want to understand your market size, who your customers are, where they come
from, and what might influence their buying decisions, looking at factors like these:
 Age
 Gender

 Location
 Occupation
 Education
 Needs
 Interests

During your research, you might consider creating a customer profile or persona that reflects your ideal customer
to serve as a model for your marketing efforts.

4. Understand your competition.

To be successful, you need a good understanding of your competitors, including their market saturation, what they
do differently from you, and their strengths, weaknesses and advantages in the market. Start by listing all your
main competitors, then go through that list and conduct a SWOT analysis of each competitor. What does that
business have that you don’t? What would lead a customer to choose that business over yours? Put yourself in the
customer’s shoes.

Then, rank your list of competitors from most to least threatening, and decide on a timeline to conduct regular
SWOT analyses on your most threatening competitors.
5. Gather additional data.

With marketing analyses, information is your friend – you can never have too much data. It is important that the
data you use is credible and factual, so be cautious of where you get your numbers. These are some reputable
business data resources:

 U.S. Bureau of Labor Statistics

 U.S. Census Bureau
 State and local commerce sites
 Trade journals
 Your own SWOT analyses
 Market surveys or questionnaires

6. Analyze your data.

After you collect all the information you can and verify that it is accurate, you need to analyze the data to make it
useful to you. Organize your research into sections that make sense to you, but try to include ones for your
purpose, target market and competition.

These are the main elements your research should include:

 An overview of your industry’s size and growth rate

 Your business’s projected market share percentage
 An industry outlook
 Customer buying trends
 Your forecasted growth
 How much customers are willing to pay for your product or service

7. Put your analysis to work.

Once you’ve done the work to create a market analysis, it’s time to actually make it work for you. Internally, look
for where you can use your research and findings to improve your business. Have you seen other businesses doing
things that you’d like to implement in your own organization? Are there ways to make your marketing strategies
more effective?

If you conducted your analysis for external purposes, organize your research and data into an easily readable and
digestible document to make it easier to share with lenders.

Be sure to retain all of your information and research for your next analysis, and consider making a calendar
reminder each year so that you stay on top of your market.

Benefits of Market Potential Analysis

 Understand market potential for a single store, network of stores or a new market
 Deploy resources effectively by ranking markets in priority order
 Forecast total opportunity in terms of number of customers and revenue potential
  Estimate your market share

Sales potential and sales forecasting method & evaluation

What is Sales Potential?

Sales potential is the estimated market share that company expects to capture in a market in a stipulated time
period after entering the market. Sales potential results are very important for a company in determining whether to
enter a market or not depending on the estimated profitability from sales potential.

Sales potential and market potential are different things. Market potential is the total sales or total potential sales of
all players in the industry in the defined geographical area during a certain period of time. Sales Potential is an
figure indicating the maximum or total sales from all prospective buyers of the product. Market potential is a
marketing exercise which estimates the maximum potential a product can have. It is generally a percentage of the
total market potential. In a way, market potential can be said to be the estimated market size for a product category
and sales potential is the prospective market share.

What Is the Importance Of Sales Potential?

Now that you know the definition of sales potential, what it’s importance in the real world? Follow the bullet
points below to get a sneak peek at its advantages as well as disadvantages:

Advantages of Potential Sales

 It indicates to what amount you can sell a product so that it brings the highest possible revenue.
 Since it deals with a summative assessment, it facilitates the decision-making process of a firm regarding
the product or service.  
 The sales potential method allows a business to predict the future revenue volume, market share, financial
and business development. 
  It facilitates the key stakeholders to determine the overall business health and meet the targets.  
 Profit estimation is also pretty easier through it because of the involvement of direct costs.

Disadvantages of Potential Sales

 At times, this forecast gives incorrect results that hamper the decision-making process
 The purchasing behavior cannot be changes 

What is a Sales Forecast?

A sales forecast is a prediction of future sales revenue. Sales forecasts are usually based on historical
data, industry trends, and the status of the current sales pipeline. Businesses use the sales forecast to
estimate weekly, monthly, quarterly, and annual sales totals. Just like a weather forecast, your team
should view your sales forecast as a plan to work from, not a firm prediction. Sales forecasting is also
different from sales goal-setting. While a sales goal describes what you want to happen, sales forecast
estimates what will happen, regardless of your goal.

The following are the various methods of sales forecasting:

1. Jury of Executive Opinion.

2. Sales Force Opinion.

3. Test Marketing Result.

4. Consumer’s Buying Plan.

5. Market Factor Analysis.

6. Expert Opinion.

7. Econometric Model Building.

8. Past Sales (Historical Method).

9. Statistical Methods.

1. Jury of Executive Opinion:

This method of sales forecasting is the oldest. One or more of the executives, who are experienced and have good

knowledge of the market factors make out the expected sales. The executives are responsible while forecasting

sales figures through estimates and experiences. All the factors-internal and external—are taken into account. This

is a type of committee approach. This method is simple as experiences and judgement are pooled together in taking

a sales forecast figure. If there are many executives, their estimates are averaged in drawing the sales forecast.

7. Econometric Model Building.

8. Past Sales (Historical Method).

9. Statistical Methods.

1. Jury of Executive Opinion:

This method of sales forecasting is the oldest. One or more of the executives, who are experienced and have good

knowledge of the market factors make out the expected sales. The executives are responsible while forecasting
sales figures through estimates and experiences. All the factors-internal and external—are taken into account. This

is a type of committee approach. This method is simple as experiences and judgement are pooled together in taking

a sales forecast figure. If there are many executives, their estimates are averaged in drawing the sales forecast.

Merits:

(a) This method is simple and quick.

(b) Detailed data are not needed.

(c) There is economy.

Demerits:

(a) It is not based on factual data.

(b) It is difficult to draw a final decision.

(c) More or less, the method rests on guess-work, and may lead to wrong forecasts.

(d) It is difficult to break down the forecasts into products, markets, etc.

2. Sales Force Opinion:

Under this method, salesmen, or intermediaries are required to make out an estimate sales in their respective

territories for a given period. Salesmen are in close touch with the consumers and possess good knowledge about

the future demand trend. Thus all the sales force estimates are processed, integrated, modified, and a sales volume

estimate formed for the whole market, for the given period.

Merits:

(a) Specialized knowledge is utilized.

(b) Salesmen are confident and responsible to meet the quota fixed.

(c) This method facilitates to break down in terms of products, territories, customers, salesmen etc.
Demerits:

(a) Success depends upon the competency of salesmen.

(b) A broad outlook is absent.

(c) The estimation may be unattainable or may to too low for the forecasts as the salesmen may be optimistic or

pessimistic.

3. Test Marketing Result:

Under the market test method, products are introduced in a limited geographical area and the result is studied.

Taking this result as a base, sales forecast is made. This test is conducted as a sample on pre-test basis in order to

understand the market response.

Merits:

(a) The system is reliable as forecast is based on actual result.

(b) Management can understand the defects and take steps to rectify.

(c) It is good for introducing new products, in a new territory etc.

Demerits:

(a) All the markets are not homogeneous. But study is made on the basis of a part of a market.

(b) It is a time-consuming process.

(c) It is costly.

4. Consumers’ Buying Plan:

Consumers, as a source of information, are approached to know their likely purchases during the period under a

given set of conditions. This method is suitable when there are few customers. This type of forecasting is generally

adopted for industrial goods. It is suitable for industries, which produce costly goods to a limited number of
buyers- wholesalers, retailers, potential consumers etc. A survey is conducted on face to face basis or survey

method. It is because changes are constant while buyer behaviour and buying decisions change frequently.

Merits:

(a) First hand information is possible.

(b) User’s intention is known.

Demerits:

(a) Customer’s expectation cannot be measured exactly.

(b) It is difficult to identify actual buyers.

(c) It is good when users are few, but not practicable when consumers are many.

(d) Long run forecasting is not possible.

(e) The system is costly.

(f) Buyers may change their buying decisions.

5. Market Factor Analysis:

A company’s sales may depend on the behaviour of certain market factors. The principal factors which affect the

sales may be determined. By studying the behaviours of the factors, forecasting should be made. Correlation is the

statistical analysis which analyses the degree of extent to which two variables fluctuate with reference to each

other.

The word ‘relationship’ is of importance and indicates that there is some connection between the variables under

observation. In the same way, regression analysis is a statistical device, which helps us to estimate or predict the

unknown values of one variable from the known values of another variable.
For instance, you publish a text book on “Banking”, affiliated to different universities. The permitted intake

capacity of each and the medium through which the students are taught are known. Is it a compulsory or an

optional subject? By getting all these details and also by considering the sales activities of promotional work, you

may be able to declare the probable copies to be printed.

The key to the successful use of this method lies in the selection of the appropriate market factors. Minimizing the

number of market factors is also important. Thus the demand decision makers have to consider price, competitions,

advertising, disposal income, buying habits, consumption habits, consumer price index, change in population etc.

Merits:

(a) It is a sound method.

(b) Market factor is analysed in detail.

Demerits:

(a) It is costly.

(b) It is time-consuming.

(c) It is a short run process.

6. Expert Opinion:

Many types of consultancy agencies have entered into the field of sales. The consultancy agency has specialized

experts in the respective field. This includes dealers, trade associations etc. They may conduct market researches

and possess ready-made statistical data. Firms may make use of the opinions of such experts. These opinions may

be carefully analysed by the company and a sound forecasting is made.

Merits:

(a) Forecasting is quick and inexpensive.

(b) It will be more accurate.

(c) Specialized knowledge is utilized.

Demerits:

(a) It may not be reliable.

(b) The success of forecasting depends upon the competency of experts.

(c) A broad outlook may be lacking.

7. Econometric Model Building:

This is a mathematical approach of study and is an ideal way to forecast sales. This method is more useful for

marketing durable goods. It is in the form of equations, which represent a set of relationships among different

demand determining market factors. By analyzing the market factors (independent variable) and sales (dependent

variable), sales are forecast. This system does not entirely depend upon correlation analysis. It has great scope, but

adoption of this method depends upon availability of complete information. The market factors which are more

accurate, quick and less costly may be selected for a sound forecasting.

8. Past Sales (Historical method):

Personal judgement of sales forecasting can be beneficially supplemented by the use of statistical and quantitative

methods. Past sales are a good basis and on this basis future sales can be formulated and forecast. According to

Kirkpatrick, today’s sales activity flows into tomorrow’s sales activities; that is last year’s sales extend into this

year’s sales. This approach is adding or deducting a set of percentage to the sales of previous year(s). For new

industries and for new products, this method is not suitable.

(a) Simple Sales Percentage:

Under this method, sales forecast is made by adding simply a flat percentage of sales so as to forecast sales as

given below:

Next year sales = Present year sales + This year sales/Last year sales

or = Present year sales + 10 or 5% of present sale

(b) Time Series Analysis:

A time series analysis is a statistical method of studying historical data. It involves the isolation of long time trend,

cyclical changes, seasonal variations and irregular fluctuations. Past sales figures are taken as a base, analysed and

adjusted to future trends. The past records and reports enable us to interpret the information and forecast future

trends and trade cycle too.

Merits:

(a) No guess-work creeps in.

(b) The method is simple and inexpensive.

(c) This is an objective method.

Demerits:

(a) ‘Market is dynamic’ is not considered.

(b) No provision is made for upswings and downswings in sales activities.

9. Statistical Methods:

Statistical methods are considered to be superior techniques of sales forecasting, because their reliability is higher

than that of other techniques.

They are:

(i) Trend Method

(ii) Graphical Method

(iii) Time-series Method:

(a) Freehand method

(b) Semi-average method

(c) Moving average method

(d) Method of least square

(iv) Correlation method

(v) Regression method.

Determining sales related marketing policies - product policies, distribution

policies & pricing policies:-
Product policies:
What is Product Policy?
Product policy is defined as the broad guidelines related to the production and development of a product. These
policies are generally decided by the top management of a company i.e. board of directors. It is like a long term
planning with respect to the product-mix of the company in order to deliver maximum customer satisfaction.

Product Policy Objectives

Product policy of a company has certain objectives
1. Survival
The main objective of any company is to stay in the market profitably.

2. Growth
Based on the long term goals of the company the policies are defined to get a good growth in the market.

3. Flexibility
The product policy needs to be flexible to the changing needs of the customers, government regulations, global
trends and economy.

4. Scalability
The companies should use its resources properly to make the most of its valuable resources. With time the
company needs to develop economies of scale to improve profits.

Importance of Product Policy

Product life cycle plays a very important while defining product policies.
When a product is in introduction stage the company needs to decide upon its pricing strategy whether it wants
penetration pricing or skimming. To achieve quick breakeven the companies use skimming technique otherwise
use penetration to keep the competition out of the market. Also the focus should be on creating awareness about
the product and building the brand.

In growth stage the company needs to maintain its profit by improving the product quality. It takes some time to
recreate the advertising strategy.
In maturity stage the very few firms are left in the business. The product’s sales growth slows down and the
company needs to target its loyal customers. A product change or communication changes is required at this stage.
In decline stage the sales for the product begin to fall and very few firms are left in the industry.

4 Types of Product policy decision

1) Individual product decision:-

a) Product attribute: it consists of the quality, feature, style and design of the product. Quality of the product
assures the customer that the manufacturer is giving the customer a good quality product. Feature helps the
consumer in differentiating the product from other products in the market. Style and design of the product helps in
bringing the attention of the customers towards the product.

b) Product branding: the product must have its own unique brand name. Only then the customer will be able to
differentiate the product from the other products. Brand name also helps the marketers in promoting the product
and making consumer brand conscious.

c) Product packaging: packaging means the outer cover which contains the product. Like a tooth paste has two
covers first in shape of tube and another cardboard cover put the tube in it. It is generally said that Packaging act as
a silent salesman because product packaging helps the customer to get the knowledge about the product quality,
quantity, weight, price etc.

d) Product labeling: labeling on the product is very essential as it gives the consumer information regarding the
manufacturer’s name, place, date of manufacturing, expiry date, calories, carbohydrates, nutritional value etc.

e) Product support services:- these are the services which are provided to the customer after selling the product
to the customer like after sale services, installation etc.

II) Product line decision:–

product line means group of product which are closely related to each other. In product line decision the marketer
makes the decision regarding the product line length, means the number of products in the product line. The
product line may be short which means the marketer can increase the profit by adding a new product or there may
be long product line. There are two ways of adding the product.
a) Product line stretching: it means adding a new product by stretching the product line by upward, downward or
both ways.
b) Product line filling: it means when the company add a new product within existing range of products.

III) Product mix decision:-

it means total products produced and sold by the company. Like amul produces, milk, milk powder, ghee, butter,
cheese spread etc. product mix includes:
a)  Product mix width: it means how many products the company is offering. Like tea, butter, cheese etc.
      b) Product mix length: it means no. of items in each product line. Like 5 kind of shampoo, 7 kind of washing
powder etc.
     c) Product depth:  it refers to different items in each product line. Like a company is offering different kind of
soap eg. X, y, z. etc.
     d) Product consistency:  refers to how closely related the various products in end use.

  IV) Product positioning decision:-

it the way by which the marketer communicate the information of the product to the prospective buyer. It can be
done on the bases of price or size or usage of the product.
Distribution policies:-

What is a distribution policy?

A distribution policy is the strategy applied by a company for the correct shipment of its products from the

production chain to its positioning in the market.

Distribution policies refer to the measures taken by a company, from manufacturing to packaging and final

transport stages, to ensure the product reaches the most appropriate channels and points of sale; and does so

within the planned launch and product replenishment times.

So, we might say that in a typical journey of a product, it passes through these hands:

1. Manufacturer
2. Wholesaler
3. Distributor or contractor
4. Seller or retailer
5. Agents or reps
6. Consumer

Types of distribution policies

A distribution and sales policy is classified according to the number of intermediaries involved, which makes

it more (or less) complex to manage.

We can distinguish five standard categories:

 Direct policy: You sell your products directly to the customer and by means of a simple strategy, as a
single sales channel (that is, your own physical or online store).
 Indirect policy: You distribute your products through several intermediaries and channels.
 Intensive policy: This is the most wide-ranging strategy, as it includes a larger number of intermediaries
and channels. Its degree of complexity depends on how ambitious you are: do you want to sell
internationally, for which you will need diverse distributors? Will you be betting on an all-channel strategy
that integrates physical and digital channels, in which case you’ll need to direct more effort towards your
warehouses and contacting a large number of sellers?
  Selective policy: You only distribute your products through a limited number of channels (such as, only
physical stores or only online marketplaces), or in a small geographical network (a country or a city).
 Exclusive policy: This involves you granting the distribution rights of your products exclusively to one
channel or outlet. It can be your branded online store or a retailer with whom you reach an agreement. This
type of distribution is common in brands with a very specific target or selling luxury products, in order to
feed their image of prestige; for example, certain Bulgari jewelry that can only be found at Harrods in
London.

How to design your distribution policy

Factors to consider:
 What kind of product it is, because if it’s made of perishable material you’ll need faster distribution to
avoid accumulating expired stock. If the product is delicate or hazardous, you’ll need special insurance and
transport for it.
 Where your end customers buy, whether through physical or digital channels, or both.
 Whether your product needs demonstrations and tutorials in person, by sales reps.
 Whether your product supports customization, and how you can best offer this (yourself or through
another participant)

Examples of distribution policies

Simple distribution

A brand of locally produced gluten-free biscuits in Barcelona wants to position, or find a niche for, its products.

They have a limited warehouse and a handcrafted production process that does not allow them to reach large

volumes of shipments.

Their focus may be on distributing their cookies to local businesses, with an indirect yet simple distribution

process leading from their factory to cafes, bakeries and specialized shops in Barcelona that will sell their biscuits.

They may also be interested in employing an agent to make their brand known through newly-established local

businesses and thereby gradually increase profits. This will enable the company to obtain more equipment,

achieve a higher production rate, and expand distribution to other cities and across more channels (such as

their own website, supermarkets and marketplaces).

Pricing Policy:-
A pricing policy is a standing answer to recurring question. A systematic approach to pricing requires the decision
that an individual pricing situation be generalised and codified into a policy coverage of all the principal pricing
problems. Policies can and should be tailored to various competitive situations. A policy approach which is
becoming normal for sales activities is comparatively rare in pricing.

Most well managed manufacturing enterprises have a clear cut advertising policy, product customer policy and
distribution-channel policy. But pricing decision remains a patchwork of ad hoc decisions. In many, otherwise well
managed firms, price policy has been dealt with on a crisis basis. This kind of price management by catastrophe
discourages the kind of systematic analysis needed for clear cut pricing policies.

The following considerations involve in formulating the pricing policy:

(i) Competitive Situation:
Pricing policy is to be set in the light of competitive situation in the market. We have to know whether the firm is
facing perfect competition or imperfect competition. In perfect competition, the producers have no control over the
price. Pricing policy has special significance only under imperfect competition.

(ii) Goal of Profit and Sales:

The businessmen use the pricing device for the purpose of maximising profits. They should also stimulate
profitable combination sales. In any case, the sales should bring more profit to the firm.

(iii) Long Range Welfare of the Firm:

Generally, businessmen are reluctant to charge a high price for the product because this might result in bringing
more producers into the industry. In real life, firms want to prevent the entry of rivals. Pricing should take care of
the long run welfare of the company.

(iv) Flexibility:
Pricing policies should be flexible enough to meet changes in economic conditions of various customer industries.
If a firm is selling its product in a highly competitive market, it will have little scope for pricing discretion. Prices
should also be flexible to take care of cyclical variations.

(v) Government Policy:
The government may prevent the firms in forming combinations to set a high price. Often the government prefers
to control the prices of essential commodities with a view to prevent the exploitation of the consumers. The entry
of the government into the pricing process tends to inject politics into price fixation.

(vi) Overall Goals of Business:

Pricing is not an end in itself but a means to an end. The fundamental guides to pricing, therefore, are the firms
overall goals. The broadest of them is survival. On a more specific level, objectives relate to rate of growth, market
share, maintenance of control and finally profit. The various objectives may not always be compatible. A pricing
policy should never be established without consideration as to its impact on the other policies and practices.
(vii) Price Sensitivity:
The various factors which may generate insensitivity to price changes are variability in consumer behaviour,
variation in the effectiveness of marketing effort, nature of the product, importance of service after sales, etc.
Businessmen often tend to exaggerate the importance of price sensitivity and ignore many identifiable factors
which tend to minimise it.

(viii) Routinisation of Pricing:

A firm may have to take many pricing decisions. If the data on demand and cost are highly conjectural, the firm
has to rely on some mechanical formula. If a firm is selling its product in a highly competitive market, it will have
little scope for price discretion. This will have the way for routinised pricing.

Objectives of Pricing Policy:

The pricing policy of the firm may vary from firm to firm depending on its objective. In practice, we find many
prices for a product of a firm such as wholesale price, retail price, published price, quoted price, actual price and so
on.

Special discounts, special offers, methods of payment, amounts bought and transportation charges, trade-in values,
etc., are some sources of variations in the price of the product. For pricing decision, one has to define the price of
the product very carefully.

Pricing decision of a firm in general will have considerable repercussions on its marketing strategies. This implies
that when the firm makes a decision about the price, it has to consider its entire marketing efforts. Pricing decisions
are usually considered a part of the general strategy for achieving a broadly defined goal.

(i) Price-Profit Satisfaction:

The firms are interested in keeping their prices stable within certain period of time irrespective of changes in
demand and costs, so that they may get the expected profit.

(ii) Sales Maximisation and Growth:

A firm has to set a price which assures maximum sales of the product. Firms set a price which would enhance the
sale of the entire product line. It is only then, it can achieve growth.

(iii) Making Money:

Some firms want to use their special position in the industry by selling product at a premium and make quick profit
as much as possible.

(iv) Preventing Competition:

Unrestricted competition and lack of planning can result in wasteful duplication of resources. The price system in a
competitive economy might not reflect society’s real needs. By adopting a suitable price policy the firm can
restrict the entry of rivals.

(v) Market Share:

The firm wants to secure a large share in the market by following a suitable price policy. It wants to acquire a
dominating leadership position in the market. Many managers believe that revenue maximisation will lead to long
run profit maximisation and market share growth.

(vi) Survival:
In these days of severe competition and business uncertainties, the firm must set a price which would safeguard the
welfare of the firm. A firm is always in its survival stage. For the sake of its continued existence, it must tolerate
all kinds of obstacles and challenges from the rivals.

(vii) Market Penetration:

Some companies want to maximise unit sales. They believe that a higher sales volume will lead to lower unit costs
and higher long run profit. They set the lowest price, assuming the market is price sensitive. This is called market
penetration pricing.

(viii) Marketing Skimming:

Many companies favour setting high prices to ‘skim’ the market. Dupont is a prime practitioner of market
skimming pricing. With each innovation, it estimates the highest price it can charge given the comparative benefits
of its new product versus the available substitutes.

(ix) Early Cash Recovery:

Some firms set a price which will create a mad rush for the product and recover cash early. They may also set a
low price as a caution against uncertainty of the future.

(x) Satisfactory Rate of Return:

Many companies try to set the price that will maximise current profits. To estimate the demand and costs
associated with alternative prices, they choose the price that produces maximum current profit, cash flow or rate of
return on investment.

Factors Involved in Pricing Policy:

The pricing of the products involves consideration of the following factors:
(i) Cost Data.

(ii) Demand Factor.

(iii) Consumer Psychology.

(iv) Competition.

(v) Profit.

(vi) Government Policy.

(i) Cost Data in Pricing:

Cost data occupy an important place in the price setting processes. There are different types of costs incurred in the
production and marketing of the product. There are production costs, promotional expenses like advertising or
personal selling as well as taxation, etc.

They may necessitate an upward fixing of price. For example, the prices of petrol and gas are rising due to rise in
the cost of raw materials, such as crude transportation, refining, etc. If costs go up, price rise can be quite justified.
However, their relevance to the pricing decision must neither be underestimated nor exaggerated. For setting prices
apart from costs, a number of other factors have to be taken into consideration. They are demand and competition.

Costs are of two types:

Fixed costs and variable costs. In the short period, that is, the period in which a firm wants to establish itself, the
firm may not cover the fixed costs but it must cover the variable cost. But in the long run, all costs must be
covered. If the entire costs are not covered, the producer stops production.

Subsequently, the supply is reduced which, in turn, may lead to higher prices. If costs are not covered, the producer
stops production. Subsequently, the supply is reduced which, in turn, may lead to higher prices. If costs were to
determine prices why do so many companies report losses?

There are marked differences in costs as between one producer and another. Yet the fact remains that the prices are
very close for a somewhat similar product. This is the very best evidence of the fact that costs are not the
determining factors in pricing.

In fact, pricing is like a tripod. It has three legs. In addition to costs, there are two other legs of market demand and
competition. It is no more possible to say that one or another of these factors determines price than it is to assert
that one leg rather than either of the other two supports a tripod.

Price decisions cannot be based merely on cost accounting data which only contribute to history while prices have
to work in the future. Again it is very difficult to measure costs accurately. Costs are affected by volume, and
volume is affected by price.

The management has to assume some desired price-volume relationship for determining costs. That is why, costs
play even a less important role in connection with new products than with the older ones. Until the market is
decided and some idea is obtained about volume, it is not possible to determine costs.

Regarding the role of costs in pricing, Nickerson observes that the cost may be regarded only as an indicator of
demand and price. He further says that the cost at any given time represents a resistance point to the lowering of
price. Again, costs determine profit margins at various levels of output.

Cost calculation may also help in determining whether the product whose price is determined by its demand, is to
be included in the product line or not. What costs determine is not the price, but whether the production can be
profitably produced or not is very important.
Relevant Costs:
The question naturally arises: “What then are the relevant costs for pricing decision? Though in the long run, all
costs have to be covered, for managerial decisions in the short run, direct costs are relevant. In a single product
firm, the management would try to cover all the costs.”

In a multi-product firm, problems are more complex. For pricing decision, relevant costs are those costs that are
directly traceable to an individual product. Ordinarily, the selling price must cover all direct costs that are
attributable to a product. In addition, it must contribute to the common cost and to the realisation of profit. If the
price, in the short run, is lower than the cost, the question arises, whether this price covers the variable cost. If it
covers the variable cost, the low price can be accepted.

But in the long run, the firm cannot sell at a price lower than the cost. Product pricing decision should be lower
than the cost. Product pricing decision should, therefore, be made with a view to maximise company’s profits in
the long run.

(ii) Demand Factor in Pricing:

In pricing of a product, demand occupies a very important place. In fact, demand is more important for effective
sales. The elasticity of demand is to be recognised in determining the price of the product. If the demand for the
product is inelastic, the firm can fix a high price. On the other hand, if the demand is elastic, it has to fix a lower
price.

In the very short term, the chief influence on price is normally demand. Manufacturers of durable goods always set
a high price, even though sales are affected. If the price is too high, it may also affect the demand for the product.
They wait for arrival of a rival product with competitive price. Therefore, demand for product is very sensitive to
price changes.

(iii) Consumer Psychology in Pricing:

Demand for the product depends upon the psychology of the consumers. Sensitivity to price change will vary from
consumer to consumer. In a particular situation, the behaviour of one individual may not be the same as that of the
other. In fact, the pricing decision ought to rest on a more incisive rationale than simple elasticity. There are
consumers who buy a product provided its quality is high.

Generally, product quality, product image, customer service and promotion activity influence many consumers
more than the price. These factors are qualitative and ambiguous. From the point of view of consumers, prices are
quantitative and unambiguous.

Price constitutes a barrier to demand when it is too low, just as much as where it is too high. Above a particular
price, the product is regarded as too expensive and below another price, as constituting a risk of not giving
adequate value. If the price is too low, consumers will tend to think that a product of inferior quality is being
offered.
With an improvement in incomes, the average consumer becomes quality conscious. This may lead to an increase
in the demand for durable goods. People of high incomes buy products even though their prices are high. In the
affluent societies, price is the indicator of quality.

Advertisement and sales promotion also contribute very much in increasing the demand for advertised products.
Because the consumer thinks that the advertised products are of good quality. The income of the consumer, the
standard of living and the price factor influence the demand for various products in the society.

(iv) Competition Factor in Pricing:

Market situation plays an effective role in pricing. Pricing policy has some managerial discretion where there is a
considerable degree of imperfection in competition. In perfect competition, the individual producers have no
discretion in pricing. They have to accept the price fixed by demand and supply.

In monopoly, the producer fixes a high price for his product. In other market situations like oligopoly and
monopolistic competition, the individual producers take the prices of the rival products in determining their price.
If the primary determinant of price changes in the competitive condition is the market place, the pricing policy can
least be categorised as competition based pricing.

(v) Profit Factor in Pricing:

In fixing the price for products, the producers consider mainly the profit aspect. Each producer has his aim of profit
maximisation. If the objective is profit maximisation, the critical rule is to select the price at which MR = MC.
Generally, the pricing policy is based on the goal of obtaining a reasonable profit. Most of the businessmen want to
hold the price at constant level.

They do not desire frequent price fluctuation. The profit maximisation approach to price setting is logical because
it forces decision makers to focus their attention on the changes in production, cost, revenue and profit associated
with any contemplated change in price. The price rigidity is the practice of many producers. Rigidity does not
mean inflexibility. It means that prices are stable over a given period.

(vi) Government Policy in Pricing:

In market economy, the government generally does not interfere in the economic decisions of the economy. It is
only in planned economies, the government’s interference is very much. According to conventional economic
theory, the buyers and sellers only determine the price. In reality, certain other parties are also involved in the
pricing process. They are the competition and the government.

The government’s practical regulatory price techniques are ceiling on prices, minimum prices and dual pricing. In
a mixed economy like India, the government resorts to price control. The business establishments have to adopt the
government’s price policies to control relative prices to achieve certain targets, to prevent inflationary price rise
and to prevent abnormal increase in prices.
UNIT-4

What Is Sales Operations?

Sales operations refers to the unit, role, activities and processes within a sales organization that support, enable,
and drive front line sales teams to sell better, faster, and more efficiently. Through strategically implemented
training, software tools and engagement techniques, sales ops leaders enable sales reps to focus more on selling in
order to drive business results. But perhaps more than anything else, sales operations bring a system to selling.
This often overlooked and sometimes under-appreciated department uses data to drive strategy, best practices to
guide training, and technology to hack success. Because of its broad scope and deep impact on both top line
(productivity) and bottom line (efficiency) performance, the sales ops department has become a strategic and
indispensable component of a mature sales organization, especially in the enterprise, SaaS and B2B space.

What are the roles of sales operations?

Sales operations teams accomplish their goals through a variety of roles and functions including strategy, data
analysis, hiring and training, forecasting, territory design, and sales process optimization.
While the exact structure and functions will vary from business to business, generally these roles can be defined
under four main categories:
 Strategy
 Technology
 Operations
 Performance
Here’s a brief breakdown of the primary roles of a sales ops team.
Strategy
One of the main roles of sales ops is to define a high-level vision for the sales organization and develop strategies
to meet those goals.
A few of their strategic functions might include:
 Sales process optimization
 Sales technology and methodology evaluation
 Sales coverage model and territory planning
 High-level planning and goal setting
 Data analysis
 Sales forecasting

Technology
Over the past several years, there has been an exponential increase in the SaaS applications and other sales tools
available to organizations. While better data and technology can promote sales, the complexity of multiple
platforms can overwhelm sales reps and turn into a timesuck on the sales floor.
That’s where sales ops comes in. Their job is to manage the sales tech stack so the sales reps can focus on selling.
Here are a few ways they do that:
 Integration of apps and tools
 Adoption and customization of a CRM
 Communications management
 Data management and reporting
 Task automation

Operations
Sales ops contributes to high performance and expertise throughout the sales department by assuming the burden
of administrative and operational tasks. With the help of data analysis and process optimization, sales ops teams
can take the lead on training, hiring, and knowledge management to ensure their sales reps have the information
and skills to succeed on the sales floor.
 Operational tasks and responsibilities include:
 Product training
 Sales training
 Hiring and onboarding top talent
 Market intelligence support
 Contracts and SLAs
 KB management

Performance
Finally, sales ops seeks to improve performance and productivity by eliminating barriers and smoothing processes
for the sales reps.
Sales ops may focus on the following performance priorities:
 Implementation of sales methodologies and best practices
 Identifying KPIs and sales metrics
 Compensation and incentive plans
 Lead management

Roles, Responsibilities & Functions of a Sales Operation Representative

The broader purpose of a sales operation unit is to boost productivity, efficiency, and the overall impact that your
sales team has on business performance. Your sales ops department needs to fulfill a considerable array of roles,
responsibilities, and functions to achieve this.

1) Cross-Functional Collaboration
Sales operations function as an advocate for the sales team. They play a critical role in planning the sales and
operations functions to ensure the business goals are entirely aligned (known as cross-functional collaboration),
across each arm of the business.

2) Data Management
Sales operations measure and evaluate sales data to conclude how effective a product, sales process, or campaign
has been. By undertaking such a crucial role, sales ops teams can understand what has and hasn’t worked. By
undertaking such a crucial role, sales ops teams can recognize what has or hasn’t worked and, consequently, make
informed decisions about which direction to pursue. 

3) Forecasting
By examining past data and previous trends, sales operations can forecast future sales growth to report on the
needs and goals of future campaigns. This is crucial as forecasts give sales teams the chance to pinpoint any issues
while still finding a solution or workaround.

4) Sales Team Support

Sales ops are in place to help sales representatives become more efficient and, therefore, better at creating
opportunities for conversions. This is done by sending leads, managing the transaction process, creating contracts,
and providing training to improve time management skills.

5) Remuneration Management
Sales operations also manage the sales rep’s compensation and remuneration plans. They work to establish goals
and performance targets to acknowledge and resolve waning performance.

6) Lead Gen
Sales ops manage administrative tasks, such as lead gen and appointment booking, so that the salespeople can get
on with creating more opportunities to sell.
7) Sales Tactics
Sales operations often use their data analysis findings and forecasting to create a tactical sales strategy and set
objectives around them. The team is also responsible for structuring a sales procedure that improves conversion,
shortens the sales cycle, and maximizes profitability.

8) Comms
The sales ops team is in charge of keeping the sales team accountable by reporting on sales and campaign
outcomes and communicating team news and wins.

9) Organization
Sales ops influence the sales department’s structural organization to ensure that each separate part can come
together to positively influence the efficiency, impact, and performance of the team.

10) Technology Implementation

The sales ops team oversees the management and use of the necessary technical tools and platforms, often in close
consultation with the IT department. 

11) Sales Briefs 

Sales operations are responsible for deciding and assigning sales briefs to each salesperson. This might mean
specific physical territories or certain industry sectors that need to be targeted. 

12) Training
To create the most successful team possible, sales operations take on training new and current sales reps. They
may also facilitate different programs that promote strong team camaraderie. 

While these roles, responsibilities, and functions are crucial to a sales team’s effective operation, they won’t be
possible without the correct staff structure in place.

What is a sales budget?

A sales budget is a financial plan that estimates a company’s total revenue in a specific time period. It focuses on
two things—the number of products sold and the price at which they are sold—to predict how the company will
perform.
What is a sales budget used for?

The sales budget is a planning tool that allows companies to manage resources and profits based on expected sales.
It takes into account previous sales patterns and budgets for similar time periods so that each department can have
a big-picture idea of where they stand financially. This helps companies be more efficient in reaching their goals
and maximizing their profit.

The sales budget is also invaluable when it comes to setting realistic targets. For instance, a sales team may have a
sales goal of increasing customer subscriptions by 50 percent, but the sales budget will keep expectations leveled
by reflecting an annual increase of 20 percent. This doesn’t mean 50 percent isn’t achievable; it simply means that
when budgeting based on revenue, the 50 percent should be a bonus, not an expectation.
What’s included in a sales budget?

When diving into sales forecasting or budget preparation, it’s important to ensure your components are prepared
and accurate before starting your plan. Depending on the size of your business, you may have a larger or smaller
sales budget spreadsheet than others, but all sales budgets should include three key elements:

1. Income statement: contains the net income of the company and gives a general financial overview of how
the company is doing.
2. Balance sheet: lists a company’s liabilities, assets, and equity for a given budgeting period.

3. Cash flow statement: reports cash received and cash spent for a certain budgeting period.

Elements of a sales budget

The elements of a sales budget include:

Sales forecast

Through looking at past data, an organization creates a sales forecast based on past trends. This is the number of
units they expect to sell during their budget period. Sales forecasts can look at the amount they anticipate an
individual to sell, a team or the overall company.

Price per unit

The sales budget includes the most recent price for a company's product or service. It focuses on one particular
item or unit. If companies anticipate a fluctuation in prices throughout their budget period, then they include that
here as well.

Total revenue

The final element of the sales budget is the total revenue. You can calculate this by multiplying the sales forecast
by the price per unit. The total revenue is the company's sales budget.

How to develop a sales budget

Here are some steps to take to develop a sales budget for your company:

1. Select a period of time

Determine the period to use for your sales budget. This may be either monthly, quarterly or annually. Companies
most often use an annual evaluation, but you may consider looking at a shorter period of time as well.

2. Gather sales prices

Compiling a list of sales prices is important for calculating your sales budget. Get the prices for your various
products or services. Also, consider any prices your company may use later on due to factors, such as sales or
increased demand.
3. Collect sales data

Research data from your company's sales in your selected period of time to determine how many items you might
sell. For instance, if you are examining your winter quarter, consider looking at data from last year's winter quarter.
By looking at past sales, you can predict how many units you may sell in the future.

4. Look at industry market trends

Stay up-to-date on current market trends. This includes looking at market fluctuations and preferences toward
certain trends through research. Knowing the state of the market trends can help you determine whether your
product or service may still be relevant during your calculated time.

5. Communicate with your customers

Consider talking to your customers to see what they plan to spend in the selected time period. It's particularly
helpful to look at your long-term customers' spending patterns. Also, consider that some customers may purchase
during a specific time of year which can impact certain quarters.

6. Create your forecast

After gathering information about your previous sales, market trends, customer intentions, you can calculate your
sales budget. To do this, multiply the expected number of units sold by the current sales price. For example, if a
book shop expects to sell 120 books in their quarter one and each book costs $12, their sales budget would be
$1,440 (120 x $12 =$1,440) for their first quarter.

7. Compare results

Once your designated time period ends, compare your actual results with your predicted sales budget. Look to see
how closely your actual results were to your estimations to help you determine how accurate your calculations
were. Your results can help you take effective measures in the future to get more accurate calculations.

Importance of Sales Budget:

1) Business Budgeting :

The budgeting of different departments might be dependent on the Sales Budget. This is especially true in a
production company where the production expenses are proportional to the amount of sales you hope to achieve.
Without expected Sales Budget, the company doesn’t know how much to spend on Marketing, how much to spend
on production and in any other department. While these are variable expenses, the fixed expenses like rent and
utilities also have to be covered from sales budget.

2) Growth Goals :

Another aspect of Sales Budget is that it sets targets for the Sales team and achieving those targets will help the
company to grow economically and expand. The Sales team is motivated by giving incentives on hitting numbers
and crossing them. The company can expect an overall growth in every department once Sales numbers are
achieved.
3) Performance :

Sales Budget is prescribed to the Sales team at the beginning of the year and the targets are distributed accordingly.
At the end of the year, this budget can be used to know the performance of the sales team and, in turn, the
performance of the organization. This depends on the forecasting done and also on the market conditions and
competitor activities. But Sales Budget helps analyze the performance of every sales team member quantitatively.

Advantages

1. Planning: Sales Budget helps in the proper planning of the organizational budget.
2. Resource allocation: Sales Budget helps in the allocation of resources for all other departments based on
Sales forecast, sales plan and other factors.
3. Expense Check: Sales Budget is also helpful to keep a check on the expenses of the company.
4. Yardstick: Sales Budget serves as a yardstick for evaluation of Forecast vs achievement or Target vs
Achievement and overall economy of the company.
5. Weak areas: Sales Budget also helps identify weak links and areas in the organization which are a
hindrance in achieving the sales budget. Necessary actions can be taken to correct those weak links and
strengthen the front line.
6. Guide: Sales Budget acts as a guide and constant reminder throughout the year for the organization about
the agreed budgets and helps everyone to be on track.

Disadvantages

1. Sales budget cannot always be 100% accurate since no one can predict future events or sudden market
trends for the company.
2. A sales budget decided by authority or management may not go well for various reasons. The unrealistic
sales budget is a common complaint by the front line executives.
3. Preparing, editing, modifying, re-working, getting the approval of sales budget can take up too much of
managerial time, in which time actual sales can be realized.
4. Unforeseen expenses are not considered in Sales Budget which may arise out of any ca

Sales Budget Process

1. Decide a Period of Sales Budget: A sales budget can be planned accurately if a specific period is
determined. It can be made monthly, quarterly or yearly.
2. Collect Previous Sales Data: The next step is gathering the sales data or record for the previous period. It
acts as a base to plan a sales budget for future sales.
3. Gather Industry’s Sales Information: The company needs to be updated with the total sales of the
particular industry for a specific period. It should be aware of its market share and the expected growth of
the industry within that period.
4. Compare Sales of Consecutive Period: After collecting the sales records, a comparative analysis is
required of the previous sales periods to predict the future sales possibilities.
5. Study Current Market Trends: Next step is keeping an eye on the market fluctuations, preference and
trend which helps in determining a more accurate sales budget.
 6. Communicate with Customers: The customer reviews and buying habits should be analyzed to know
their buying trends and intentions for preparing a sales budget.
7. Prepare Sales Forecast: Based on the above data and analysis regarding past sales, market trends and
customer’s response, sales for a particular period is forecast.
8. Compare Actual Sales with the Forecast: Finally, the actual performance or the sales volume is
compared with that of the estimated sales to find out the accuracy of the sales budget. It provides for taking
the corrective measures in future.

Factors Influencing Sales Budget

The sales budget is not a vague assumption of sales. However, it is a well-planned strategy to streamline the
various business operations and set some realistic and achievable targets for the team.

It is framed by different factors existing in the business environment. These factors can be bifurcated into the

following two categories:

1. Internal Factors
2. External Factors

Internal Factors

The company’s inner strengths or weaknesses, influence its sales budget. It involves factors like plant’s production
capacity, marketing channel, promotion and advertisement, sales volume and revenue, etc.

Let us now discuss these factors in detail below:

 Sales Trend: The past sales made by the company within a specific period plays a significant role in
determining future sales possibilities.
 Production Capacity: The maximum utilization of the plant’s manufacturing capacity should be
considered for the preparation of the sales budget.
  Product Diversification and Product Development: When the company enters into a new product line to
increase its sales volume and profitability, it must prepare the sales budget accordingly to facilitate product
development.
 Seasonal Fluctuation: The company has to figure out the changes in the sales trend during seasonal
fluctuations like weekends, the first week of every month, festivals, etc. while determining the sales
forecast.
 Selling and Distribution Channel: The selected marketing channel profoundly affects the sales forecast.
Like for direct sale of goods, a more accurate sales data can be gathered, and hence a better sales estimate
can be prepared.
 Sales Promotion and Advertisement: If the product is well promoted through advertisements, offers,
discounts, etc.; it increases the potential sales and thus influences the sales budget too.
 Price Fluctuation: The change in the price of the product creates an impact on its potential sales.
Therefore, the price of the product, as well as the price of the competitor’s product, must be taken into
consideration while deciding the sales budget.
 Market Research: Research is the basis for determining sales possibilities. Sales forecasting is not just
prediction but is a practical approach depending on the past market trends.

What is a Sales Territory?

A sales territory refers to a geographical area assigned to a salesman for the purpose of marketing the products of
his concern. Generally, a firm divides the markets into specific geographical zones or areas and assigns each
salesman a specific zone in which he has to carry out his selling operations. The specific geographical zone or area
assigned to a salesman becomes his sales territory. Each of the territory is served by one or more salesmen.

Factors Determining Allocation of Sales Territories

The allocation or division of sales territories among the salesmen is based upon several considerations or factors,
such as the nature of the product, the potential demand for the product in the area, the extent of competition present
in the area, transport and communication facilities available, channels of distribution, types of customers, the
capacity of the salesmen, the types of customer services to be provided, the sales expenses ratio, etc. Each of these
factors are explained in detail.

1. Nature of the product

First, the nature of the product is of utmost importance. There are certain consumer items which have constant
demand in the market. They are high turnover goods and they need little selling efforts. Thus, for such products a
large territory can be assigned. For luxurious, bulky and durable articles, which need concentrated selling efforts
small sales territory can be assigned.

2. Demand for product

While allocating sales territories to salesmen, the demand for a particular product should also be taken into
account. If the demand for a particular product is constant and frequent, then the whole sales filed can be divided
into small sales territories. However, in case of low demand and infrequent purchase of articles, the size of the
sales territory should be large.

3. Transport facilities
The marketing of a particular product depends to a large extent on the availability of transport facilities. If the
transport facilities like road, railway and air links etc., are satisfactory, then large sales territories can be allotted to
salesmen. However, areas having poor transport facilities should be divided into very small sales territories. If the
company provides vehicles such as a car or motor cycle for the salesmen, then larger sales territories can be
assigned.

4. Competition and Frequency of Contact

Competition cuts the size of the territories and increases the frequency of contact. In other words, the salesman has
to meet dealers and customers very frequently in highly competitive areas. On the other hand, limited competition
or near monopoly situation lengthens the frequency of contacts between the salesmen and the dealer/customer. In
such situations, the salesmen can be assigned larger sales territories.
5. Population
The density of population in a particular area determines the size of the territories. In other words, if particular area
of a territory is thickly populated, there arises the need to divide the sales field into small sales territories. On the
other hand, if the area is thinly populated, then larger sales territories can be allocated to salesmen.

6. Distribution System
Very often the distribution system of a particular organization determines the size of its sales territories. In case the
company sells through middlemen like wholesalers, dealers, retailers etc., larger sales territories can be allocated to
salesmen. On the other hand, if the product is sold directly to consumers or very few middlemen are used, then
small sales territories can be assigned to salesmen.

7. Advertising and Sales Promotion Activities

Companies which have widespread advertising and other sales promotion activities, can assign small sales
territories to each salesmen in view of the demand for the product created by advertisements. This enables them to
sell extensively in territories allotted. On the other hand, low advertised products need large sales territories for
each salesman.

8. Ability and Experience of Salesman

The size of the sales territory also depends on the ability and experience of the sales force. Experienced
and talented salesmen are able to sell more and, therefore, they can easily be allotted large sales territories. New
and inexperienced salesmen are usually allocated small sales territories as their ability to sell is limited. A
salesman is expected to produce maximum sales turnover from his area with the minimum amount of time and
effort. The commonly used division are states, districts, cities and trading areas.
The allocation of sales territories is often followed by the planning of the route which a salesman should follow
within his sales territory. The planning of the route involves the determination of places to be visited (including
exploration of new markets), the number of customers to be contacted and the number of calls to be made every
day by the salesman.

Steps to plan and define Sales Territory

Following are the high level steps to start with defining effective sales territories:
1. Define Market and Groups
The first and foremost step in defining a sales territory is to define an overall market with potential. Until and
unless the overall population is not defined, finer sales territories would not be accurate. Also a company needs to
see if they need to define by geographical borders or through customer demographics or groups.  
2. Evaluate Competition 
The next step is to understand the market better along with the competitors and complementary services. It is good
to see how the competitors in the market structured in terms of territories. If multiple competitors are already
competing on a basis of a type of territory then either the company can also follow the same structure or may be try
to differentiate through different type of sales territory formation. 
3. Define Sales Objectives
After the first 2 steps are completed, next step would be to define the size of the territory along with the sales
objectives in terms of targets, budgets, team size and efforts to be put to make it profitable.
4. Execute and Improve
The last step is to deploy sales force in the created territories and start monitoring the performance. If the team is
able to achieve the objectives well while maintaining profits margins, the same can be continued and used across
company and subsidiaries else proper analysis should be done to improve the issues through data and feedback.

Example of Sales Territory

Let us assume a computer sales company who sells PCs and laptops to customers in a state. The sales team can be
divided into different territories as per geographic areas in the state. Let us assume the state is already divided into
3 major areas based on geography. The sales team can use these 3 major areas and divide them further into 2
territories.
Now these 6 sales territories can be used by the 6 sales teams. But in actual world it is not this simple. Actual
process involves sales targets and quotas along with customer density in these areas.
Many times to compete with the competitor, the computer company might need to have similar territories to
compete efficiently in the market. Sales territory planning requires a lot of data and work and also it needs
revisiting the plan frequently. the territories should be dynamic and change as per the market shifts.

What is a Sales Quota?

A sales quota is a sales goal, sales target, or minimum sales level that a sales entity – team or individual – aims to
achieve. Sales quotas are typically time-sensitive – set to be reached monthly, quarterly, or yearly – and can be
measured in dollar amounts or units sold, or even as specific as number of new customers, or through activities like
product demonstrations.

Sales quota is the sales goal or figure set for a product line, company division or sales representative. It helps the
managers to define and stimulate sales effort. Sales quota is the minimum sales goal for a set time span. Sales
quota can be individual or group based e.g. for a business unit or a team.
It is a way or a parameter to drive the sales organization to achieve and realize its targets before hand. It also helps
in growth and investments required.
Generally sales quotas are set slightly higher than the estimated sales so as to stretch the sales force effort. 
These are developed through the study of annual territory marketing plan. In this the plan for developing new
accounts and expanding existing accounts is given by the representatives.

Types of Sales Quotas

Importantly, there isn’t a one-size-fits-all quota solution. Instead, to maximize sales performance management
planning and fit organizational strategy, quotas can take many shapes and sizes.

Types of Sales Quotas:

This can include many things from cold calling, Marketing emails, advertisements, invitation to executives for
events and many more things. It’s always in the interest of the sales team as to how they should get the stuff out.
1. Sales volume quota: This always includes sales in monetary terms or units sold for a specific period of time.
This type of sales quotas is always set for a given year. The sales teams are then assigned their yearly quotas to be
accomplished. These quotas are set in the areas mentioned below:
(i). Product line

(ii). Product range

(iii). Branch offices

(iv). Individual sales person

2. Profit quotas: This type of quotas is very useful for FMCG companies as various products add to varying levels
of profits. The advantage of this type of sales quota is that the sales person can use his time optimally. Hence
he/she can strike a balance between high and low profit yielding products.
3. Expense Quotas: These are linked to selling costs with a realistic time frame. Few companies set quotas for
expenses to different sales levels achieved by the sales person. The sales team may be given an expense budget
which is a percentage of a particular region’s sales volume. He/She should spend only that sum as expenses.
4. Activity Quotas: Under such quotas the sales team is required to execute other activities that will have a long
term bearing on the company’s goodwill. Here certain objectives related to the job are set in attaining the
performance targets of the sales force. When it comes to the Indian companies we have few common types of these
quotas as mentioned below:
(i). Quantity of sales presentation made

(ii). Amount of calls made

(iii). Number of dealer visits

(iv). Recovery calls made

(v). New clients procured

The given below graph represents the percentage of sales by using cold calling methods. We can easily find out the
number of attempts with percentage success. It is relevant from the picture that more the number of attempts more
are your success percentage.

Sales Quota – Important Principles of Setting Sales

Quotas

Setting of sales quotas is a difficult and skillful activity. As such, it is not possible to determine any formula and
follow it. But, with the help of certain principles, sales quotas can be set skillfully.

These principles are:

1. Objectivity – Sales quotas should be set on the basis of facts and figures while applying skills and intelligence.
2. Simplicity – The simplest method of quota setting should be sued so that the salesmen and other related persons
may understand it easily. Professor White has rightly stated that “An imperfect, but simple quota system is likely
to work better than an accurate, but complicated one.”

3. Fairness – There should be fairness in allocating sales quotas. This means that there should be uniformity in the
allotment between salesmen. But keeping in view of nature of territory, competition and the ability of the
salesman, there can be little differences in the quota allotment.

4. Achievable – The sales quota should be achievable without much difficulty. If higher quota is fixed to achieve,
it would be difficult even for an average salesman to achieve it and it will not motivate the salesman. Quota should
be of optimum level.

5. Flexibility – Stanton and Buskirk were of the views that no sales quota be good so far as it has not the quality of
flexibility.

6. Definiteness – It means that there should be definiteness in the quotas fixed, either the quotas may be fixed on
geographical basis, or on money value, or on units of product. It should be definite to every salesman that, which
object is to be achieved by him.

7. Follow-up – For the successful achievement of sales quotas it is essential to follow-up or evaluate the sales
quotas. It is the duty of the managers to compare the sales quotas with the sales results regularly. Evaluation of
performance will be helpful to determine the remuneration plan, motivational schemes and promotion to salesmen.

8. Stability – Stability should be maintained in quota fixation. It means that the base and the method of quota
setting should not be changed frequently. Frequent changes in the methods of quota setting may create confusion
among the salesman and brings an end to goodwill of managers.
9. Participation – Participation of all the sales persons are needed to achieve sales quotas successfully.

10. Motivational – The quotas should have motivating effect on the salesmen. Those who have achieved the sales
quotas should be given incentives so as to motivate and encourage them for future.

11. Accuracy – Accuracy should be maintained while setting sales quotas. The information and facts used for
setting quotas must be accurate and representative to respective sales territories.

Sales Quota – Need for Quotas Setting

1. Accurate, Fair and Attainable Quotas:

Good quotas are accurate, fair and attainable. Obtaining accurate quotas is a function of the quota-setting
procedure – the more closely quotas are related to territorial potentials, the greater the chances for accuracy.
But, in addition, regardless of the type of quota – sales volume, budget, activity, or combination – sound
judgement is important in analyzing market data, adjusting for contemplated policy changes (and for conditions
unique to each territory), and appraising changes in personnel capabilities, as well as in setting the final quotas.
Accurate quotas result from skillful blending of planning and operating information with sound judgement. Setting
a fair quota involves determining the proper blend of sales potential and previous experience.
If management believes that its quota-setting procedure produces accurate quotas and is confident that fair quotas
are being assigned, then they should be attainable. Most quota-setting errors are those of judgement, most traceable
to setting quotas above each salesperson’s expected performance to provide an incentive for improvement. Quotas
that some sales personnel fail to attain are not necessarily unfair – whether they are-or not depend on who fails to
attain them.
Thus, in ascertaining fairness, management faces a possible dilemma because the quotas themselves are the
performance standards most used for appraising the quality of sales personnel. Clearly, subjective evaluations of
sales personnel according to quantitative performance criteria are required to ascertain whether quotas are fair.

2. Securing and Maintaining Sales Personnel’s Acceptance:

Management must make certain that sales personnel understand quotas and the quota-setting procedure. Conveying
this understanding is a critical step in securing staff acceptance of quotas. If sales personnel do not understand the
procedure used in establishing quotas, they may suspect. This attitude destroys the quota’s effectiveness as an
incentive.
It is important that sales personnel understand the significance of quotas as communicators of “how much for what
period,” but, if they also understand the quota-setting procedure, they are more likely to consider their quotas
accurate, fair, and attainable. The quota-setting method should be simple enough for sales personnel to understand,
yet sufficiently sophisticated to permit acceptable accuracy.
Sometimes, this means that management, faced with choosing between two quota-setting procedures, may choose
the less sophisticated because it can be more easily explained to, and understood by, the sales staff.

3. Participation by Sales Personnel in Quota Setting:

If sales personnel participate in quota setting, the task of explaining quotas and how they are determined is
simplified. With sales personnel helping to set their own quotas, management has more assurance that the
procedure will be understood. How much staff participation is solicited depends upon management philosophy,
types of quotas, information available, sophistication of the quota-setting procedure, and the caliber of the sales
force.
It is not advisable to turn the whole quota-setting job over to the sales staff, but some sales force participation can
obtain more accurate and realistic quotas. Sales personnel have some information about their territories that
management does not have, and it can contribute to quota accuracy.

4. Keeping Sales Personnel Informed:

Effective sales management keeps sales personnel informed of their progress relative to quotas. Sales personnel
receive frequent reports detailing their performance to date. This permits them to analyze their own strong and
weak points and take corrective action.
Of course, sales personnel need encouragement, advice and occasionally, warnings, in deciding to take measures to
improve their performance. Reaping full benefits from keeping sales personnel informed requires frequent personal
contacts by supervisors, as well as regular reports.

5. Need for Continuous Managerial Control:

In administering any quota system, there is a need for continuous monitoring of performance. Arrangements must
be made to gather and analyze performance statistics with minimum delay. Chart recording each salesperson’s
performance against quota on a monthly, or even weekly, basis facilitates this analysis. Keeping sales personnel
informed at frequent intervals, at least monthly, requires subdividing the year.
Generally, the annual quota is divided by the number of reporting periods, but, of course, this can be misleading,
when random fluctuations in sales occur. For products with seasonal sales patterns it is more logical to apportion
annual quotas relative to either the proportion of sales made in each reporting period during the previous year, or
the proportions made in “normal” years.

Sales Meeting:-

Generally, a sales meeting refers to a gathering or forum scheduled by a company's sales department. Team
members may discuss sales policies and procedures, incentives, or one of the company's products or services.
Sales meetings are an important part of the sales process because they're designed to assist in the development of
products and services while building relationships, identifying deficiencies and needs, and outlining the product's
benefits.

Sales meeting is a coming together of sales representative of the company selling the product or the service and the
potential buyer to discuss a possible lead, quote or an order. Usually it is in a presentation format, but it can be a
telephone call or an online meeting as well. Sometimes the sales meeting can also be a review or a follow up after
a sales has been made.
During a sales meeting, the salesperson provides a description of the product and explains the ways in which it will
meet the needs of the buyer. It is important during the meeting, for the sales person to focus on the features that
solve the user’s problems or else she may lose the buyers attention if the service or the product offers too many
irrelevant features.

How Sales Meetings Work

A sales meeting is a gathering scheduled by the company's sales managers or other executives. Parties involved in
these meetings include members of the sales department, other key company personnel, developers,
and manufacturers. The meeting may also be attended by new and/or existing clients.

Sales meetings are scheduled for a variety of reasons. The purpose of a sales meeting depends on the type of
company. They may be used as a way to:

 Motivate staff, recognize top performers, and set department goals

 Discuss new products and services in development, and give product updates
  Identify challenges and problems in the department
 Overcome deficiencies in sales figures
 Develop strategies and improvements for new and existing products
 Provide new and existing clients with company and product knowledge and a presentation of the benefits
offered by the company

Sales Meeting Approach

A famous approach to sales meeting is following the order of features, evidence, benefits and agreement. The sales
person should have a collection of impressive and effective statements for each of the above objectives.
Let us discuss these:
1. Features
The most important aspect of a good sales meeting is that how well a sales representative is able to explain and sell
the features of the product and how these features are modern and differentiated as per the market.
2. Evidence
In sales meeting, data and facts would add a lot of weight to the features. Any feature if backed up by data can help
it establish well with the customer. e.g. The AC is able to adjust the temperature without consuming too much
power. If this is backed by an energy rating or a comparative study, then the customer would actually agree to it.
3. Benefits to the Customer
Customers need to understand the benefits these features will have for them. The benefit from the previous
example can be that the electricity bill of the customer will come down as compared to the current product being
used or considered. This is now a real benefit to the customer.
4. Agreement
The sales meeting can be called successful only if it converts into a deal or at least takes to next step in the sales
cycle e.g. customer asking for a quote.
The ultimate objective of the sales meeting is to close the sale and make sure that the customer understands the
features and benefits well.

Types of Sales Meetings

Sales meeting can be classified on the basis of where it happens:
1. Client Side
In this type, the customer has invited for sales meeting at their venue. This is a good opportunity for the sales team
to present the features well. This meeting already shows that customer trusts the product or brand and is willing to
know more about the product or service. Make sure you can show a demo or an example which is customized as
per the customer
2. Virtual
In the modern business many a times sales team would get an opportunity to present the product virtually through
video conferencing. This is again a very good opportunity. In this meeting , technology can be used to give a good
virtual presentation with clear storyline and objectives. Even a audio visual demo of the product can be shown
using the best of technology.
3. Event/Conference
Many times the sales meeting can be really impromptu and can happen when you meet a customer.
The sales team should always be prepared for such meetings in advance and should have some material and demo
handy to be shown to customer on demand.
4. Review Meetings
Sales meeting may not always happen with potential customer but can also happen with existing customers for
reviewing how the product is performing and if the customer is happy with the performance, service and support.
These meetings can be good for upselling and cross-selling.

Sales Meeting Agenda

Every sales meeting should have a clear agenda. Some of the points which need to be ready are:
1. The objective of the meeting should be very clearly defined. Is it for a new sale or upsell?
2. The content of the presentation should be well prepared and rehearsed as this may be the only chance with the
customer.
3. Only the required key sales people should be part of the meeting
4. A demo or a showcase should be presented to the customer to add value to the meeting and give customer the
idea of the product
5. The duration of the meeting should be respected as per client's convenience.
6. Sales team should request for a follow up if required.
7. If possible, share some reference material, presentation with customers so that they can revisit them to make
more informed decision.

Importance of Sales Meeting

Sales meeting plays a very important role in the sales of B2B products as well as in high involvement products. A
customer needs to be sure about buying a product if it is costly and is required for business or long term.
The customer needs to understand everything relate to the offering before they decide to place an order with a
company. 
Sales meeting gives that opportunity for the company to explain the features and benefits well so that customer can
make an informed decision.

Examples of Sales Meeting

Let us consider the 2 scenarios:
1. Financial planners would conduct a sales meeting to talk about retirement plans, engage the potential buyer and
convey her about how the company’s investment products will help her meet her goals for the future.
2. A car dealer during a sales meeting explains various features of a car along with other models and options
available to the customer. The customer might ask questions and might have queries and concerns related to
features and price of the car. If the sales meeting is able to address all the queries, it can lead to a strong
opportunity or a potential close of sale.

Sales contest:-
A sales contest is a short-term incentive program designed to motivate sales personnel to accomplish specific sales
objectives. In general, sales contests are used by firms to stimulate extra effort for obtaining new customers,
promoting the sales of specific items, generating larger orders per sales call, etc.

The sales department is the only department which helps in generating revenue, and it is important to keep the
salespersons motivated and maintain a stimulating environment so that maximum sales can be achieved.

Sales managers are constantly required to come up with innovative ideas to motivate their team members.

They opt for different strategies such as motivational speech, target setting, incentives, etc. to motivate their
salespersons to bring more sales. Sales contest is also one of these strategies that a sales manager use to encourage
salespersons to bring more sales.

People are competitive in nature, and they tend to perform better in a competitive environment. Sales contest is
also a short term competition organized between salespersons of an organization to order to achieve short-term
sales objectives.

Sales contest are used to organizations to boost the sales of a newly launched product or to make their salesperson
put more efforts to acquire more customers or to complete the annual target of sales.

The incentives given as a reward for the sales contest are not part of regular incentives given to salesperson when
they achieve their target. These are added incentives which stimulate instant sales.

Salespersons like these type of contests as they get the chance to earn extra within a short period and this type of
sales contests keep them on toes to work hard so that they can enjoy the reward.

Advantages of Sales contests

There are several advantages of sales contests in addition to bringing more sales. Let us learn about these
advantages one by one.

#1 Motivates team members by healthy competition:

Sales contest bring a spark of competition among the members of the sales team. Rather than sitting together and
sipping on their cup of tea and wasting companies time and money. They spend their time planning strategies and
brush their skills to make maximum sales so that they can win the contest.

#2 More Sales:

The main advantage is increased sales. A motivational speech can work for one or two hours of a day, and a sales
manager can’t go behind every salesperson to give a motivational speech every time they lose morale.

The idea of the price of sales contest whether it is additional money, holiday trip or a new car will keep them
motivated all the time, and they will think about the strategies to bring more and more sales.
#3 New Customers:

Usually, salesperson put efforts to achieve their target from the customers that they have established a business
relationship with. They don’t try to approach potential customers and try to convert them as long as their target is
being achieved.

But when there is a sales contest, they do everything possible that they can do to win the contest. They even
approach customers who have shown the slightest interest in the product and try to persuade them to buy your
product.

#4 Deserving candidates get paid:

A sales team is made of all type of salespersons. Some salespersons are active and make maximum efforts to bring
sales and bring new customers, and other salespersons never get out of their comfort zone and take the benefit of
other’s efforts and never try to convert potential customers into regular customers.

But both employees get paid equally. By organizing a sales contest, you can give the reward to the employee who
deserves it.

Disadvantages of a Sales contest

As everything has advantages and disadvantages. Sales contests are also not free of disadvantages. In this section,
you will learn about the disadvantages of sales contests.

#1 Additional expense:

The price of sales contest is an additional expense on the organization. Usually, salespersons are given monthly
salaries or sales commission for the sales they make. But the price, whether it is bonus money or a family holiday
trip is an additional expense that the organization has to pay from their accounts.

#2 Discourage soft salespersons:

Not all salespersons are the same. Some salespersons perform better under competition or stress. However, there is
another type of salesperson who performs better under distressed conditions. Sales contest can scare off employees
who don’t work well under pressure.

If there are recurring sales contests in your organization, then you might lose salespersons who don’t want to work
for incentives. They might not be good at handling the pressure.

They can have other skills such as maintaining a good relationship with customers, providing satisfying services,
and having good skills to sell products, etc.

If you lose salesperson frequently, then it will impact the image of your organization as well as you will have to
spend more on recruitment and training process (which can be quite expensive).
#3 The negative impact of customers:

When there is competition, the salesperson can tend to go little aggressive with their selling approach to customers.
They might force customers to buy products they don’t want.

In this way, you might bring sales once, but you will leave a negative impression on the minds of your customers,
and there are chances that you might lose them for forever. Therefore, you must provide guidelines to your
salesperson before they enter into sales contest.

#4 More Cancellations:

A salesperson might fulfill the conditions of making sales by forcing people to buy products. The salesperson paid
less attention to customers or made false promising to complete the sale. In such a scenario, customers feel
betrayed, and they might cancel on the orders that they made in a rush.

How to create a sales contest?

Creating a sales contest is not an easy task. It requires a lot of planning and preparations to create an effective sales
contest. In this section, you will learn about the step by step procedure to create a sales contest.

Step 1. Define the motive of the sales contest:

Companies organized them for various reasons such as to boost sales, to boost profit, to increase the sales of a
particular product, or to stimulate sales team. Your motive should be clearly defined and explained to employees
and prepare the strategy for the sales contest accordingly.

Step 2. Define The incentives of Sales contest:

Your sales employees are most interested in the incentives that you to offer as a winning price of a sales contest.
You should not randomly pick a sales incentive and announce it as the price for the contest winner.

Create a survey and learn about the wishes of your employees what they truly want or you can decide the price of
sales contest based on the season.

For example, most employees like to take vacations with their family during the festive break, or they need extra
money to be able to celebrate the festive season with their family.

Get the opinion of your employees through a survey and decide the price for the contest accordingly.

Step 3. Set the rules for the sales contest:

Set rules for the sales contest beforehand to avoid confusion at a later stage. For example, define the timeline of the
contest clearly, define the goal of the contest, etc. also mention do’s and don’ts for employees so that they know
what they can do and what they can’t to achieve their goal.
Step 4. Discuss your sales contest plan with relevant management:

Don’t just create a sales contest idea overnight and introduce it the next morning. Plan it, plan it well, and get it in
written form and discuss it with relevant management, ask their opinion, make modifications, and get their
approval before sharing it with your sales staff.

Step 5. Make the early announcement:

Plan sales contest a few months before you decide to introduce it. Make your staff aware of it. Conduct meeting
introduces the rules, dos, and does n’ts.

Answers the doubts and queries of your sales staff and don’t leave any room for confusion. in addition to this,
remind them about the contest more than once.

Send emails and put a notice about the contest in the staff room. In this way, your employees will be aware of the
contest, and there will not be any room left for the confusion at a later stage.

Step 6. Review it for the last time:

At last, review your contest plan again and work on the loopholes if you find any before you launch the contest.
Make sure that your sales contest is m=for the benefit of your organization as well as your employees.

Organizing display:-
Slat Walls
Slat walls are one of the most popular merchandising displays used by retailers around the world. These display
fixtures consist of panels and horizontal grooves (slats) that are configured to accept a variety of merchandising
accessories. Slat walls can be mounted onto walls or combined with a base as a freestanding fixture. They are used
in conjunction with attachments such as arms, hooks and shelves that can easily be slotted into the slats without the
use of tools.

One of the biggest benefits of this type of display is versatility. Between the assortment of finishes, sizes, shapes
and types of attachments, you can create a retail display unique to your business and it’s needs. Slat walls are also
a great bang for your buck with basic slat wall panels available at relatively low prices, making it an affordable
way for creating memorable, customisable looks.

Another reason slat walls are worth getting right is that they are extremely durable. They have an impressive life
expectancy, can carry heavier merchandise and are difficult to damage. Slat walls are also very space efficient and
have a high storage capacity. Once you have assembled your panels, all you have to do is hook on your
attachments and start merchandising!

There is no single method of using slat walls but rather a variety of ways to carry merchandise such as clothing,
hardware, toys and accessories.

Grid Walls
Another merchandising display that has become an increasingly popular choice for retailers is the Grid Wall. This
type of merchandising display is made from a lattice of wire panels that can easily accommodate a variety of
different hook and shelf options that attach to the grid.

Benefits of Grid Walls are similar to those of slat walls. They too are versatile, affordable and customizable.
However, Grid walls are much lighter and easier to maintain, requiring minimal dusting and general cleaning.

With today’s high rent prices, retailers often seek effective and affordable solutions to utilize wall and floor space
that also offers flexibility and so the Grid Wall is perfect for traders looking to conserve space.

Apparel stores especially can benefit from the use of Grid wall fixtures as hooks and hangers are easy to remove
and relocate, allowing the retailer a quick merchandising update with minimal effort. With bins, baskets, and
shelving also easily attachable, impulse merchandising displays containing loose goods such as Confectionery,
Books and Magazines may also stand to benefit from this type of display.

Pegboards

A Pegboard display is a fixture consisting of a slab of perforated hardboard. The most common types of Pegboards
are made of wood or fiber-board and contain rows of evenly spaced holes which are used for attaching hooks, bins,
shelving and other storage accessories. Pegboards are also often paired with other types of mainstream
merchandising displays such as gondolas for an interesting display of articles.

Benefits of this type of display include being highly flexible and allowing aesthetically pleasing merchandising
designs.
This type of display is most commonly used to carry smaller merchandise such as categories found in snake queues
of exit retail for example. Categories include confectionery, stationery, jewellery and cellular accessories to name
but a few.

Table Displays
As per its name, Table Displays are merchandising displays that have a flat, table shape to them but can be tiered
or just have one level. Although the term table could indicate being made of wood, Table Displays can be made of
a variety of other materials as well.

Table displays are commonly placed near the entrance of a store to display craft items or other small items and the
benefit of this type of display is that it is an excellent tool for attracting and enticing a buyer to purchase items they
had not planned to buy. Table displays can also be used as decoration for seasonal holidays and are highly visible,
invoking a call to action.

Other examples of Table displays include showcasing clothing, home décor or as a promotional platform for
gifting.

Point of Purchase Displays

Point of Purchase displays, or POP displays are some of the most important displays in any retail store and yet can
be one of the most underutilized tools in retail. This type of fixture is most commonly the marketing material of the
merchandise or brand being promoted, and most vendors will provide these to stores for free use to boost sales of
their product. These merchandising displays can be as simple as a sign or as elaborate as a full free-standing
display where the vendors’ products are boldly displayed.
POP displays are found in high-traffic areas such as next to the cash register or the doors so that it is easily
accessible to the customer and increases the possibility of an impulse purchase. The material will highlight the
product and draw the customers’ attention to it, which is extremely important in a retail store crammed with similar
merchandise.
Stores use Point of Purchase displays to place fast-moving merchandise such as candy, cheap items and popular
goods. Many stores also use the point of purchase display for sale items or items close to the expiry date.

Showroom and exhibition:-

Showroom:-
A showroom, also referred to as a gallery, is a large space used to display products, entertainment or visual arts.
A showroom is a large space used to display products for sale, such
as automobiles, furniture, appliances, carpets or apparel. It is a retail store of a company in which products are on
sale in a space created by their brand or company. A showroom can also be a space for wholesale buyers to view
fashion merchandise for sale in their retail stores.
Among the various forms of showroom, one has been increasing significantly. The guide shop model is a strategy
that many brands found to be present in both online and physical stores. A guide shop is a kind of showroom
where the client can try and feel the products and purchase them to have it delivered on his/her home. [1] Fashion
stores are adopting the showrooms such guide shops for immersive brand experience and the vantage of no
inventory in the stores. Also, their clients feel more confident before buying the product, decreasing the return
rates.

1. Design A Showroom To attract Customers

Eye-grabbing signboards, intriguing structures and an attractive display of products are the top methodologies used
to attract customers in a showroom. The basic philosophy of a showroom interior design is to attract the person to
the focus and invite them. 

2. Keep it Simple
Cluttering a design never works anywhere. But when you design a showroom, you’ve to be extra mindful about a
clean design. Human mind has trouble focusing on multiple things at a time. Hence, you need to give a clear map
and focus to the human mind while designing a showroom. 

The usual stacking of excessive amount of products, guided by the philosophy of showing them the amount of
variety you’ve got, could really backfire. Rather, keep it simple with just a select few of your best pieces in
display. 

3. Keep Your Aesthetic in sync with your Brand

From the colour of the interior surfaces to the lighting, curtains, furniture and the wall paint – everything must be
in sync with your brand value. You need to bring a consistency in the theme, that blends with your overall brand. 

Even the scent of the showroom has to be picked quite thoughtfully. Aroma of chocolate in a furniture showroom
would just not work. Decide each element keeping your product in mind. 

Make sure your branding is subtly but strongly represented. Use of your company logo as a centre piece in a lavish
space could be a great idea. 

Also Read: 7 Showroom Interior Design Tips You Must Know

4. Design A Showroom To Promote The Product
While designing a showroom, keep the product in mind. There’s no point in designing an excellent showroom, the
interiors of which steal all the focus from the product itself. Showroom interiors need to be planned to highlight the
product. Plan where and how you can promote various aspects of your products and use the art of interior
designing to make it happen. 

5. Customize Your Showroom Design

The basics of the showroom interior design are clear to you. Aren’t they? Focus on the product, create a consistent
design with clear focus, and ensure your branding is consistent. 

But depending on the type of product & intended use of the product, your showroom interiors will need a lot of
modifications. 

Exhibition:-
Exhibition is the only promotional tool that brings buyers, sellers and the competitors in a commercial setting.
Since customers have to spend time and money in attending an exhibition, customers who attend an exhibition are
interested in the product.

Objectives of exhibitions:
An exhibition is an important part of the promotional mix of industrial markets. Exhibition is an important source
of information in industrial buying process, and is second only to personal selling, and is way ahead of direct mail
and print advertising in terms of providing information to the industrial buyer. The number of exhibitions,
exhibitors and visitors is growing.

i. An opportunity to reach an audience with a distinct interest in the market and the products on display:
Though organizers of exhibitions insist on creating hype so that numbers of visitors to the exhibition increases, it is
always better to have customers who are genuinely interested in the product even if they are small in number. The
cost per customer is very high in exhibitions. It is very important that personnel in the stall handle only genuine
customers and their contact time should not be wasted on casual visitors.

ii. Creates awareness and develops relationship with new prospects:

There is face-to-face contact with customers and the marketer has an opportunity to apprise the customers of the
company’s products. The marketer should qualify his visitors in terms of their interest in the product so that they
can be pursued after the exhibition.

iii. Provides product demonstrations:

The customer has an opportunity to see the product in operation. He can determine if it will be useful to him. He
can also seek clarifications about the product’s features and benefits.

iv. Determines and stimulates needs of customers:

Product demonstration is a very effective method of stimulating needs. When a customer sees the benefits of a
product, the needs that he might have been suppressing or those that he was not aware of, can become manifest.
Many visitors who may have walked in with only casual interest become genuinely interested in the product. Since
customers come in direct contact with marketers, it is possible to judge the intensity of customers’ needs.

v. Gathers competitive intelligence:

Competitors’ products are also displayed in the exhibition and it is easy to study the features and benefits of their
products. It is also possible to meet employees of the competitors and learn more about their marketing plans.
vi. Introduce a new product:
Exhibition is very good place to get customers’ feedback about a new product. Customers can use the product or
see it in operation and provide immediate feedback to the company. The company can also find out how the new
product compares with competitors’ products.

vii. Recruit dealers or distributors:

Distributors interested in handling the product inevitably attend the exhibition. Manufacturers can establish contact
with them at the exhibition. This is especially important for new manufacturers who do not have much idea of the
market and hence are not aware of the distribution arrangement of the market. Even for established manufacturers,
exhibitions are a good place to recruit new distributors.

viii. Improve company image:

The company comes in direct contact with customers and distributors. Company has an opportunity to impress its
customers and distributors with its preparation and arrangement of the event and demeanour of its employees. A
shoddy and mismanaged stall will leave the customers and distributors guessing about the competence of the
company.

ix. Deal with service and other customer problems:

The customers get an opportunity to apprise the company of their service requirements and specific problems that
they may be having with the product. Since senior executives of the company are present at the exhibition, this is a
good opportunity for them to get first hand feel of customers’ woes and worries.

x. Make a sale:
An exhibition is always a good place to book orders from customers, though this may not be a major objective of
the company. They pay more attention to educating their customers and getting their feedback.

In no other medium—advertising, publicity, sales promotion or product demonstrations—do sales staff, key
management personnel, present customers and prospects join together in a live event. An exhibition offers the
company the opportunity to impress customers with its operations and products.

The characteristics of a good exhibitor:

i. Exhibits a wider range of products, particularly large items that cannot be demonstrated on sales call.

ii. Staff is well informed and always in attendance at stand

iii. Informative literature is available for visitors

iv. Seating arrangement or office is provided at the stand.

Planning for an exhibition:

Clear objectives should be set when planning for an exhibition. Objectives may include introducing new products,
showcasing the company’s range of products, recruiting distributors, making sales, etc. It is important that
objectives are clear to the executives who are planning to participate in the exhibition and to the executives who
will be manning the stall.

The design of the stall and the choice and conduct of employees will reflect the objectives that the company has
set. For example, if the main objective for participating in the exhibition is to introduce a new product, there
should be considerable space in the stall for product demonstration to take place. Design and operations people
should be manning the stall who can explain the new product’s features and benefits and who can handle queries
and problems of customers.
i. Selection criteria for evaluating visitors should be determined:
Many types of visitors attend the exhibition. Some of them want to see a product in operation, some of them have
problems with the company’s products that they are using and want to meet executives of the company to apprise
them of the problem, some of them are interested in handling the company’s products as distributors, some of them
are on the lookout for latest technologies and machines which would be useful to them, whereas some stroll in to
see what all this noise and crowd is about. It is important to qualify the visitors in terms of the purpose of their
visit. When the purpose of the majority of visitors is aligned with the purpose of the exhibitors, it is a successful
exhibition.

ii. Design strategies:

The managers of the exhibition should have a plan as to who will receive the visitor, who will classify them
according to the purpose of their visit, who will register them and obtain information, who will

direct them, where would the products be placed, where would product demonstration take place and who would
carry it out, who would handle customers’ queries, who would maintain the list of leads that have to be followed,
and finally how would the visitor exit the stall.

The managers should have a mock run of the plan to find loopholes in it. A disorganized stall would leave visitors
frustrated as they would not get the right information. The company would not gain from such an exhibition as it
will not be able to collect the information that it wants and visitors would have left the stall with a bad impression
of the company.

iii. Promotional strategies:

The company should decide as to how it will attract the right type of visitors to the stall. Pre-show promotions to
attract visitors to the stand include direct mail, telephoning, a personal sales call before the event and
advertisements in trade or technical press.

Follow-up:
Exhibition visitors, who are of interest to the company, should be tracked even after the show is over. The database
of these visitors should be developed when the exhibition is on.

People will visit a booth for many reasons. Some will walk in just to have a look. Some others might be interested
in placing orders. Some will require information while others will be interested in establishing business relations
with the company. It is important that the company establishes a procedure to categorize the visitors without
antagonizing them. A preliminary talk with a visitor while being polite will also reveal their intention.

They can then be directed to suitable personnel. It is important that the company maintains a data of the visitors
and categorizes the data according to the purpose of the visit. Back home, this data should be fed to concerned
departments. The data about prospective customers can be supplied to the sales department while those of
prospective business partners can be supplied to the purchase department. Following up on this data is as important
as participating in the exhibition itself.

Evaluating an exhibition:

Quantitative measures should be collected for:

i. Number of visitors to the stand

ii. Number of key influencers and decisions makers who visited the stand

iii. Number of leads and enquiries generated

iv. The cost per lead and enquiry

v. Number and value of orders

vi. Cost per order

vii. Number of new distributors opened or likely to be opened

viii. Worth of competitive intelligence gathered

ix. Interest generated in new products

x. Cultivation of new relationships

Sales manager- Qualities:-

What Makes a Good Sales Manager?

To be a great sales manager, you need to possess a set of good sales manager qualities and skills such as:

1. Communication:

Just like any other profession, communicating with the team is extremely vital. Effective communication helps to
bridge the gap between a sales manager and his clients and also with his team members. Without this, you cannot
convince your clients or can instruct your team.

2. Managing the performance:

As a great sales manager, your seniors expect the best foot in front of each member of their team. It implies, that
you not only have to manage your performance but also the performance of each member of your team.

You, therefore, have to track the progress of your team to ensure that you successfully achieve your personal as
well as team goals.

3. Team Leader:

A sense of working in a team can generate a remarkable difference in your success and failure. A sales manager
must have the potential to successfully achieve its sales target and at the same time should wisely manage the
team.

It is vital to ensure that you share information, successes, and tips to maintain a progressive work approach within
your team.
4. Pleasing personality:

It does not imply that you have to be handsome like a movie actor, but yes your personality must be pleasing in
appearance. A sales manager is supposed to carry meetings with the clients, and it is the front face of the company
to the client.

Hence, he must have good appeal and must be able to serve others for all essential requirements.

5. Decision Making:

Fair decision making skills are another vital trait required in the sales manager. Whether you are working alone, or
in a team, you must take a fair decision under all state of affairs.

If individuals around you sense unfairness then it could be harmful to your personality and may make you lose all
the respect that you may have earned over time.

Consistently performing well is not possible, but you can maintain a decent work track to gain appreciations from
others.

6. Resilience:

At times, things may not go fine and may end you with difficulties. Things may go wrong on unreasonable grounds
and may make you face complex disappointments.

But you have to be strong and don’t allow such things to let you go down. You must be able to combat each
problem and may carry on driving your objectives.

7. Motivation:

It is one such trait that is most difficult to learn and perform. Self-motivation is something quite simpler, but
motivating others and that too on different grounds can increase your complexities to great heights.

Some sales managers end up giving great speeches, and hence, lose on their team. You don’t have to give such
speeches, as simple smiles, friendly gestures, and appreciations can also boost motivation in employees regularly.

8. Delegation:

As a sales expert, whether you will succeed or fail, that depends on your skills. The result is the reward of your
efforts. So to be on a safer side, act wisely, and don’t get prepared to do everything on your own.

If you wish to achieve really good results then you must learn to delegate effectively.

9. Passion:
It is also one of the top qualities for every profession, and even for a sales manager. Without passion, you can’t
achieve success in what you do, and hence, you have to be passionate about being a sales professional and loving
what you are doing.

Without passion, it is not only difficult to head your team, but it is also impossible to set an inspiration to others.

10. Positive attitude:

It depends on the salesperson whether he can give smiles to other team members or not. A sales manager must
have a positive approach towards work and must be able to develop a positive tone for the sales team and the entire
company.

Good Sales Manager Qualities and Attributes:

The following mentioned are few qualities of responsibility and attributes of a good sales manager.

1. Integrity:

Besides passion, the other vital quality required by a sales manager is integrity. The salesperson should possess
core and only then it is possible for him to achieve success for the short-term as well as long-term.

2. Loyalty:

A good sales manager is one who does not fake to his team nor the company. There is no need of making false
promises, and even there is no need to show false achievement figures to the team.

Since a sales manager is the middle-man between the team and the organization, he must act intelligent and
ensure that not only the company but even the sales team is aware of all actual happenings within the organization,
especially within the sales department.

3. Availability:

Just like other challenging professions, the job as a sales manager demands complete flexibility and availability.
There may be quite such instances when there is a need to work beyond time limitation, or when the manager has
to attend important meetings across places.

In such cases, a good sales professional is one who is always available to work for the company.

4. Listening:

It is one of the most neglected, but the most vital quality required in a sales manager. Not only speaking or training
the team is important, but it is also essential that the sales head listens to all issues of his team.

Maybe there are team members who have some important information to share. So, for all such and more other
reasons, the salesperson must possess effective listening skills.
5. Continuous learning:

No one can gain until he is open to learning. It is extremely essential to keep your skills updated and to work as per
the current and future requirements of the company.

A regular learning process is a way to go and only it can help a sales professional gain edge over others.

6. Innovative:

It is essential for a sales team manager to always lookout for ways that can help them to get the best out of their
team members. They must be able to procure gains collectively as well as individually.

If there is any trouble met within the sales process then it is the responsibility of the manager to think of a wise
solution for it, even if he has not faced such a situation previously.

Looking ahead and solving all kinds of team conflicts is the sole responsibility of the sales manager and he must be
potential enough to perform it without further boosting the issue.

7. Confident:

If a company is facing any troubles then each employee looks for a problem-solving answer from the manager. A
great sales head must be able to make fair judgments for all kinds of issues.

The sales manager needs to stay calm, relaxed, and confident, even under stressed or troubling conditions. A
manager who panics cannot lead a team and cannot gain success in the long-run.

8. Able to coach:

A successful manager must be able to coach his team under different circumstances. He must be well aware of the
strengths and weaknesses of his team members, and give them positive advises based on that.

Even the manager may possess some weakness, but that must not get highlighted in front of the team members.
Efficient and good sales managers are advisors and mentors to their teams and must have the potential to develop
their team member’s abilities and talents.

9. Leads by example:

Trust and respect are simple words to speak but are harder to inculcate. Great leaders are those who practice what
they preach. So to be a great manager, you have to render full support to your employees to become successful.

Don’t consider your team members as competitors, and hence, try hard to ensure that not only you but even your
team can gain fruitful returns. If required, then you should be willing to sacrifice the efforts and time.
10. Strategic:

To be a great sales manager, you need to be consistent in your performance. This does not imply that you always
have to achieve more than 100% of targets. But, yes you must indeed be capable enough to find new ideas that can
bring more success to your company.

Try to expand your quota and alter your team into conventionally unheard realms. The sales manager must
regularly make attempts to bolster the tools and technology with a well-executed sales management process.

Successful Sales Manager Skills and Traits:

1. Business Acumen:

It is defined as the acute business thinking needed to accomplish sales objectives. The business environment
requires sales managers and representatives to persuasive business skills.

If you wish to be successful as the sales manager then you should conveniently understand complex business
troubles, and help your subordinates with the same.

Sales managers must teach their people on making intelligent decisions, work effectively, plan better, and execute
operations that can deliver lucrative returns.

2. Hiring:

Most of the time, sales managers are not hiring regularly, and hence, the task of hiring the right sales candidate
may become difficult.

But as sales head, it is essential that you possess precise hiring skills, and can hire candidature that can serve your
business requirements. Wrong hiring may cost your team and the company a lot.

3. Performance Management:

There are countless ways of managing the performance, and to be a successful sales manager you must know how
to manage the performance of you and your team. You can even develop an action plan for managing performance.

4. Professional Attitude:

It is essential to gain knowledge about the personal life of each team member, but success is achievable only when
you know the right way to make practical decisions. Successful sales managers possess a balanced quotient of
emotional and practical acumen.

5. Responsible:

A successful sales manager understands his responsibility for the team and ensures to take every action that can
bring the team with lots of gains.
Sales manager Functions:-
1) MANAGERIAL / EXECUTIVE DUTIES OR FUNCTIONS
The main function of the sales manager is the management of sales operations including sales programmes and
sales personnel. The management of sales programmes includes establishment and developing short-term and
long-term sales policies and sales objectives, in consultation with other heads of related departments. He develops
detailed sales programmes for his department designed to improve competitive positions, to minimize re-
distribution costs and to achieve pre-determined sales goals in terms of amount and quantity. For this purpose he
should review and approve and if necessary, improve sales strategies, sales policies, sales objectives and pricing
policies of the respective products.
The management of sales personnel function includes recruitment, selection, training, direction, supervision
motivation and control of sales personnel in the best interest of the organization. In smaller organizations, the top
executive of the sales department sales manager himself, performs this function. However, in large organizations,
services of staff specialists are made useful. He fixes sales territory and sales quota for every salesman, watches his
performance and takes necessary timely action to correct hi performance.
 
2) ADMINSTRATIVE FUNCTION
 The administrative head of sales department is Sales Manager who is having full control over the staff of the
department and administering the sales office. He establishes an effective plan of sales organization and also
controls the activities of the entire sales staff working under his control. He is the leader of the sales personnel at
all levels and guides, directs and provides them proper incentive so as to perform their duties effectively. 
 Administration of sales office is one of the important functions of the sales manager. It involves considerable
amount of paper work and record-keeping, depending on the nature of activities assigned to sales department.
 
3) MISCELLANEOUS FUNCTIONS
1) Maintenance of cordial and effective relationship with the heads of other departments within the company.
2) To ensure that long-term customer relationship is maintained so as to achieve the goals of the enterprise.
3) To conduct selling personally so as to increase the sales volume. For this purpose he plans, develops and
implements the field sales strategy, supervisor the sales personnel and coordinates and controls the sales efforts of
sales personnel.
4) To study the market conditions, problems of competition and the substitutes coming into the market. He is
required to inform the top management of these facts along with his suggestions.
5) To maintain discipline in the sales organization.
6) To organize activities relating to sales promotion, such as, contests, seminars, conferences and provide
incentives to the sales staff and the customers.
7) To plan and organize distribution channel in consultation with top management
8) To analyze the market thoroughly from time to time.
9) To undertake advertising campaign keeping in view the cost and sales requirements.
10) To plan sales targets in consultation with other departments, such as production department.
11) To prepare sales budget of a given period.
Thus the sales manager performs a number of functions depending on the nature of products and the size of the
enterprise.
 
RESPONSIBILITIES OF SALES MANAGER
The responsibilities of a manager can be grouped under five heads :
1) Responsibility to himself.
2) Responsibility towards organization
3) Responsibility towards customers
4) Responsibility towards his staff and
5) Miscellaneous
They may be elaborated as under:
1) Responsibility to self
The foremost responsibility of the sales manager is to make him competent for the work assigned to him by the
enterprise. In this connection he must evaluate himself from time to time and take make necessary improvements
accordingly. The following are the responsibilities towards himself:
1) To increase managerial abilities
2) To increase and develop selling abilities
3) To keep himself in contact with regional changes and developments
4) To have knowledge of latest marketing techniques
5) To have detailed knowledge of the products
6) To make continuous and sincere efforts for removing his weaknesses.
7) To develop the spirit of cooperation posses progressive outlook and have good temperament.
 
2) Responsibility towards Organization
Since Sales Manager is a vita; part of the entire organization, he has a number of responsibilities towards the
organization. They may be summarized as under:
1. To maintain and also increase the goodwill of the enterprise among his customers
2. To prepare the records and reports etc of his department regularly and present the same before the top
management accordingly.
3. To take steps of reducing sales cost.
4. To keep a constant watch on the activities of the competitors and keep the top management aware of them along
with his suggestions.
5. To make sincere efforts at achieving sales targets.
6. To coordinate and cooperate with the other departments
7. To feel proud of the organization
8. To keep the organization in touch with the changes that are taking place in his region, department etc
9. To seek and also provide assistance and cooperation to the enterprise as and when required. To maintain true
and complete accounts of his department.
 
3) Responsibility towards Customers
1. To remain in constant touch with the customers through sales promotion and advertisement
2. To explain to the customers the advantages that they can have by keeping themselves in touch with the
company.
3. To provide information to the customers about the miscellaneous uses of the products.
4. To keep himself in touch particularly with those salesmen who command influence on customers.
5. To take interest and listen to the complaints of the customers and make sincere efforts for solving the same
satisfactorily.
 
4) Responsibility Towards Salesmen
 1. To explain the techniques of presenting the products in such a way before the customers which is less time
consuming, cheeper and more effective.
2. To recruit, select, train, supervise, control, renumerate, motivate and promote the sales force so that it may
perform the duties more efficiently and effectively.
3. To explain the methods of dealing with the customer’s complaints effectively.
4. To provide the detailed knowledge about the products.
5. To arrange and plan salesmen’s tours, allocate sales territories, fix sales quotas of each salesman and check the
compliance from time to time.
6. To listen and remove the grievances complaints and problems of the sales force and take necessary timely steps
for solving the same. He must see that no clash of interest takes place.
 
5) Miscellaneous
1) Responsibility as to maintenance of public relations
2. Responsibility as to office management
3. Responsibility as to sales planning, sales targets sales policies sales forecasting sales research etc
4. Responsibility as to reducing sales costs in view of sales volume.
5. Responsibility s to collect and analyze statistics in connection with marketing research, product research and
consumer research etc.
 

Types of Salesmen

Some salesmen work for manufacturers, some for wholesalers and others for retailers, some sell tangible
products while others sell intangibles products. Certain selling jobs can be best performed by men, others by
women. Sales jobs differ in their complexity. Several jobs require a salesman to be moving about from the
headquarters. Some jobs require salesmen who have attained a certain degree of maturity require considerable
preparation and education. Some salesmen sell staples; others sell specialties.

There are different kinds of men for different kinds of sales jobs which include:

 Manufacturer’s salesmen and the

 Wholesaler's Salesman
1. Those who sell to wholesalers, distributors. and dealers
2. Those who sell to ultimate consumers.
1. The Manufacturer's Salesman. The manufacturer's salesmen who sell to the distributors can be
grouped into three major types:
1. The Pioneer who gets distribution for a new product.
2. The Dealer Servicing Salesman: calls on established trade at regular intervals and his
chief task is to assure his employer of never-ending flow of reorders for the firm's
merchandise.
3. Merchandising: This salesman gathers information and gives advice but is seldom
compensated on the basis of the orders he turns in.
2. The Wholesaler's Salesman. The wholesaler's sales sometimes called jobber or distributor, often
pushes specific items following either orders from his superior or his own, dictates as to what he
wants to push. His mind is often made up for him by manufacturers and their representatives who seek
him out and teach him how to sell their specialties and make him want to concentrate on their line.
Other types of salesmen are:

3. The Retail Salesman. There are two types of retail store salesmen: the in-the-store man and the
outside salesman who visits home or office and tries to sell an item.
4. Speciality Salesman. These are of three kinds : (a)selling consumer goods, (b) selling factory
office goods, (c)and the work of the sales engineer. The third type of specialty sales man, the so-called
"sales engineer", is almost always a man with technical background.
5. The Missionary Salesman. He is a person who specializes in selling non-tangible goods like
insurance or the service of advertising agency and who sells ideas.
6. The Route Salesman, also sometimes known as ‘travel salesman’, calls on retailers, covering a
definite territory. In some instances he is also a speciality salesman.
7. . Export Salesman. He is a salesman who sells to distributors located in foreign countries.

Psychology of customers:-
Customer psychology, or what others also term as “consumer psychology”, has been defined as the study of why
people buy things. From the point of view of a business that sells products or services, it is a tool that you can use
in order to get what you want from your customers. It basically entails looking into, and understanding, the
behavior of consumers. How do they go about selecting, acquiring, using, and disposing products and services that
satisfy their needs?
 Customer psychology also takes into account external factors, delving deep on the matter as to how the customer
is influenced by his environment. What role does mass media play in his buying decisions? How big of an impact
does culture have on how he chooses the products he buys or the services he avails of?

But why is it really necessary for businesses to get customer psychology down? Yes, we have all established that
doing so will help ensure the success, profitability and growth of the business, but how?

 Marketers and business people are especially interested to know how customers purchase, use, and
dispose of products. This is so that they will get a better idea on how to best position these products and services.
The majority of marketing decisions are influenced by the behavior of customers, particularly when they are
buying something. Marketing campaigns, programs and strategies are largely hinged on what the marketers learn
about the consumers.

 Product developers can also take their cues from the information gathered through understanding
customer psychology. For example, they will know how they can further develop products that will encourage or
entice consumption. This takes into account the reality that the decision strategies employed by customers differ
depending on the product offerings.
 Consumer behavior also has greater impact on society as a whole. Their decisions, choices, and reasoning
behind these decisions could have a relevance on larger issues, such as the economy, environment, and national
health.

What is the Importance of Consumer Psychology?

Understanding psychological factors affecting consumer behavior is a key challenge for marketers and business
owners. Research on consumer behavior is concerned with understanding how purchase decisions are made, who
buys certain products, and how products or services are consumed or experienced. Research has shown that
psychology’s role in consumer culture may be difficult to predict, even for experts in the field. However, new
research methods such as ethnography and consumer neuroscience are shedding fresh light on how consumers
make decisions, especially in assessing the intention-action gap, i.e. the difference between what consumers say
and what they actually do.

Social Marketing, Customized Marketing, brand-name shopping, and the consumer’s perception of the price of the
commodity (directly expressed as the consumer’s sensitivity to price), are all main factors for understanding
consumer attitudes and help explain the reaction of market demand to price changes.

Furthermore, developing a good relationship with the target audience is essential for brand management. Tangible
elements of brand management, include the product or service itself, its look, price, and packaging, etc. The
intangible elements are experiences that consumers share with the brand, and also the relationships they have with
the brand’s products or services. This market research can help brand managers design the most effective and
positive brand and advertising strategy.

Customer psychology, or what others also term as “consumer psychology”, has been defined as the study of why
people buy things. From the point of view of a business that sells products or services, it is a tool that you can use
in order to get what you want from your customers. It basically entails looking into, and understanding, the
behavior of consumers. How do they go about selecting, acquiring, using, and disposing products and services that
satisfy their needs?

Customer psychology also takes into account external factors, delving deep on the matter as to how the customer
is influenced by his environment. What role does mass media play in his buying decisions? How big of an impact
does culture have on how he chooses the products he buys or the services he avails of?
 But why is it really necessary for businesses to get customer psychology down? Yes, we have all established that
doing so will help ensure the success, profitability and growth of the business, but how?

 Marketers and business people are especially interested to know how customers purchase, use, and
dispose of products. This is so that they will get a better idea on how to best position these products and services.
The majority of marketing decisions are influenced by the behavior of customers, particularly when they are
buying something. Marketing campaigns, programs and strategies are largely hinged on what the marketers learn
about the consumers.

 Product developers can also take their cues from the information gathered through understanding
customer psychology. For example, they will know how they can further develop products that will encourage or
entice consumption. This takes into account the reality that the decision strategies employed by customers differ
depending on the product offerings.
 Consumer behavior also has greater impact on society as a whole. Their decisions, choices, and reasoning
behind these decisions could have a relevance on larger issues, such as the economy, environment, and national
health.

Customer psychology is, admittedly, a very broad subject, considering how multi-faceted the customer is. We will
attempt to take a closer look at how we can understand our customers and get to know them better.

THE BEHAVIORISM PERSPECTIVE

According to the concept of consumer behaviorism, customers’ actions are driven by external stimuli or outside
influences. They make their decisions because they were made to do it. There is a cause and effect mechanism at
work, and all the behaviors are results of conditioning. With the right conditioning, using the right external stimuli,
businesses can influence and even train their customers to react in a certain manner; in this context, to buy their
products. The most common examples of external stimuli including brand and brand loyalty, packaging and
aesthetics. Meanwhile, when we talk about conditioning consumers, the first thing that comes to mind is aggressive
advertising, often marked with repetitive exposure of these advertisements. Recency, or keeping things current, is
another tack that marketers use to grab their customers’ attention and condition them so as to influence their
behavior.

Take, for example, a brand of detergent. It is relatively new in the market, and it is entering a market that has long
been dominated by several other brands. However, the manufacturer and marketer have become aware that their
target audience has a close affinity to certain celebrities, resulting from constant exposure to the works of these
personalities. Therefore, they integrated those specific celebrities in their advertising campaigns, which will then
strike a chord in the consciousness of the consumers. As a result, the consumers are more likely to be convinced to
buy that detergent brand.

This perspective holds that culture, mental processing, genetic background and personality traits are
independent of the customer’s ability or decision to buy something. In the example above, the consumers have
been conditioned by almost constant exposure to these celebrities. They have become repetitive that they are now
classified as naturally-occurring stimuli. Therefore, once the stimuli (the celebrities) have been paired with the
conditioned response (to buy a product they endorse), the consumers will be inclined to buy them. This is
conditioning at its best, especially when, after a period of time, it will come to a point where the consumers will
continue purchasing the product, even if the celebrity is no longer associated with it.
 Understanding Customer Behavior

Marketers and psychologists alike get their information on consumer behavior from one method: research. They
employ various research techniques and strategies in order to get the information they are seeking about the
consumers. But how, exactly, do they go about it?

Research, research, research.

This is probably the most logical step in gathering relevant information. First, the research would focus on the
target audience. Consumer psychologists often start by learning who the target audience is for a particular product
or service. They will identify who the typical or representative customer or shopper is and, from there, learn about
his age, gender and socioeconomic status.

This also includes the conduct of research on the product types. After getting to know the typical customer, they
will look into the types of products that may appeal to that customer segment. This also includes figuring out
which marketing messages have higher chances of appealing to the consumer’s sensibilities, or just grab his or her
attention.

There are many research techniques or methods employed by consumer psychologists, such as:

 Focus groups. In this approach, psychologists gather a group of people and present them with the products
or services being sold, or planned to be sold. The group will then provide their opinions and thoughts regarding the
products. It is important to note that the group will be allowed to interact and discuss in a non-threatening and
comfortable environment.

 Direct observation. In this technique, the researchers go out into the “field”, personally participating in
situations so they can see or observe firsthand the setting that they are researching on. They will play the role of a
direct observer, without necessarily participating actively or becoming a part of the process in any way.
 Phone surveys. Questions are relayed to customers over the phone, with the phone conversations often
recorded for future reference.
 Surveys via questionnaires. One of the most common methods for market research is floating a
questionnaire. They could be in physical hard copies (pen and paper) or distributed through direct mail and e-mail.
This is actually one of the most preferred methods, since the ones conducting the survey can ask as many questions
as they want about the consumer, enough so that the answers will enable them to build up their profile. In contrast
to the focus groups method, this technique is ideal if you are trying to collect data that is quantifiable.