11.

34 Business Studies for Class XI

2. Development of Relationship: Personal selling helps in developing personal and

friendly relationships between the salesperson and prospective customers. Such ahealthy
relationship has an important place in sales.
For "Importance of Personal Selling to Businessmen, Customers and Society', refer Power Booster
Section.

Qualities of a Good Salesman Qualities of a Good Salesman

Personal selling or salesmanship is a highly skilled / Physical Qualities
job. It is an art and requires constant practice to make
it effective. The essential qualities of a good salesman are Psychological Qualities
described below: Technical Qualities
1. Physical Qualities: Agood salesman should possess Communication Skills
healthy physique and attractive personality. Good Honest
appearance and posture, sound health, pleasing Courteous
voice, etc. are required to create a favourable Persistent
impression on the customers.
As salesmen have to do a lot of travelling, a physicaly fit / Capacity to inspire Trust
salesman will do better than others. Self Confident

2. Psychological /Mental Qualities: Agood salesman Enthusiastic

should be sweet natured, must possess good
behaviour and needs to be mentally healthy. High degree of intelligence, keen observaion,
sharp memory and good judgement are necessary for effective selling.
3. Technical Qualities: Agood salesperson should have full technical krnowledge about the
product and must be able to explain its features and benefits.
4. Good Communication skills: Success of a sales person depends on his communication
skills. He should possess a controlled voice and a good command over the language. He
should be clear of what he wants to communicate. Moreover, an effective salesman is not
only a good speaker but also a good listener.
5. Honesty: Agood salesman must be honest. He should not try to win customers through
false and misleading representations.
6. Courtesy: Asalesman must be polite, sympathetic and courteous to his customers. Courtesy
costs nothing but wins areputation. Polite language helps in winning buyer's confidence.
7. Persistent: A salesman must have the ability to convince the prospective customers with
persistent efforts. He should not get tired with his customers soon. His persistent efforts
may win a regular and willing customer for his firm.
8. Capacity to inspire Trust: A salesman must have the capacity to inspire trust in hs
customers.

9. Self-confidence: Agood salesman should have self-confidence and firm determination to

secure orders from the customers. He should haveastate of mind that takes each objection
or obstacle as a challenge.
 Management
11.35

Enthusiastic:4good
I salesman must work with
enthusiasm and zeal. He should accept the
ofmakinga positive sale to the customer and work enthusiastically
challenge to achieve
thesellingobjectives,
AdtertisingVs Personal| Selling
Basis Advertising Personal Selling
Impersonal communication. Personal form of communication.
L.
Kndof
Communication
2Uhiormiy
of t transmits uniform messages to all Message is not uniform and has to be
customers. adjusted as per customer.
message
SFexibility
It is inflexible as message can't be|It is highly flexible as message can be
adjusted. adjusted.
It reaches large number of people. It reaches limited people because of time
4 Reach and cost consideration.
Cost per person reached is very low. Cost per person reached is quite high.
5Cost Itneeds lot of time to cover the entire market.
It covers market in short time.
&Time
Direct feedback is not possible. It provides direct and immediate feedback.
7.Feedback
Advertisingis more useful in creating Personal selling plays important role at the
awareness stage of decision making.
&Role and building interest of the cConsumers
in the firms products. buyers or to
the ultimate It is more useful for industrial retailers,
customersIt is more useful for intermediaries such as dealers and
9Type of consumers, who are large in numbers. | who are less in numbers.
makes use of salesstaff.
important medias are T.V., radio, Personal selling
10.Mediurm The
newspapers, magazines,etc.

11.18 SALES PROMOTION

Concept of Sales Promotion which are offered to encourage the buyers to make
short-term incentives,
Sales Promotion refers to
inmediatepurchase ofaprouct or service. cash discounts, sales contests, free gift offers, and and
promotion activities include offering promotional effortssuch as advertising
S other
free sample distribution. It supplements
personal selling.
Sales used for:
promotion tools are
freesamples,contests, etc. dealer discounts, dealer
"
Cust o mers in the form of discounts, cooperative advertising,
"
Traders or Middlemen in the form of
hcentives, contests, etc. special offers,etc.provideshort-termincentives
Sales Person in the form of bonus, contests,
that are used
to
activities
Sales
Promotions include only those
Oboost the sales of a firm. Booster Section.
refer Power
and Limitations of Sales Promotion",
 11.36 Businoss Studios lor Class Xl

Sales Promotion Techniques

Some of the commonly used sales promotion techniques are:
1. Rebate: Rebate refers to offering the product at aprice less than the original price to clear
off the excess inventory. For example, offer of a soft drink company to sell its pet bottle of
600ml. ata price of 30 instead of original price of 35.
2. Discount: It refers to offering products at less tharn the list price.
Companies offer discounts to induce consumers to buy more. For
example,discount of 50% off at Slhoppers Stop.
50%
refunded to
3. Refunds: In this method, a part of the product price is
refunded on returning
the customer on showing proof of purchase. For example,?3 will be
commonly used by food product
the empty wrapper of Uncle Chips. This technique is
comparies to boost their sales.
along with the purchase
4. ProductCombinations: It refers to giving one product as a gift toothbrush free with
with Mobile,
of main product. For example, 1 GBmemory card free
Toothpaste, etc. Buy
main product
5. Quantity Gift:It refers to offering some extra quantity of the Buy 3 Get get 1
as a gift tothe customers. For example, 25% extra
1Free in case of Lux soap.
Pepsodent or
FREE!
method,customer is offered schemes like scratch
6. Instant Draws and Assigned Gift: In this and
For example, 'Burst a Cracker'
a card to win instant gifts on the purchase of a product.
instantly win a Mobile free with the purchase of TV.
on purchase of aproduct and the
7. Lucky Draw:In this method, customer is given a coupon
entitled for the gift. For example,
lucky winners are decided by draw of lots. The winner is
petrol pump.
Lucky draw coupon on purchase of petrol worth ? 500 from given
discount voucher is given to consumer
8. Usable Benefit:It refers to anmethod, in which coupon or
discount. For example, Purchase goods
on purchase of aproduct to avail any special benefit or
worth 3,000 and get a holiday package free.
is sold on instalment basis Samsung GALAXY
9. Full Finance @0%:In this method, product
Buy LG TV at 0% interest DOWN PAYMENI
at zero percent rate of interest. For example,
and make payment in 24 easy instalments.
However, one should be
sometimes is
0 %INTEREST
PROCESSING FEE

careful about the file charges in such schemes, which

nothing but interest recovered in advance.
10. Sampling:It involves offer of free sample of a product to potential
method is common
FREE
Customers at the time of launch of a new brand. This SAMPLE
example, free
for daily use productslike detergent, toothpaste, etc. For
sample of 25 gm. toothpaste by Colgate.
 Managoment
11.37

Contests: Under this method, consumers participate in competitive events organised by a

given prizes. Such contest involves
and winners are application of skills or luek. For
11. examyple,
firm contestto write a good slogan for a company to win afree holiday package.

AdvertisingVs
Sales Promotion
Advertlsing Sales Promotlon
Basis to attract customers towards a It aims to convince customers to actually
1,
Objecthve particular brand. purchase the product.
natur. It is non-recurring.
It ls recurring In
2.
Regularity It is useful In creating demand and goodwill.It is useful in increasing immediate sales.
3,Usefulness perspective. It has short-term perspectlve.
It has long-term
Magazines,et. Rebates, Free Samples,contests, etc.
4,Time
TV, Newspaper,
5.Media
44.19 PUBLIC RELATION
communicate effectively to
business needs to
MEDUA
NEWS

The Suppliers and dealers as they play

a crucial PUBLIC
ustomerS,
sales and profit ofthe;firm, In addition to RELATIONS

roleini
increasing members of the Public' whose voice
SOCIETY

other
them,there
are
important as they may be interested AUDIENCEE

oropinion is equally
and its product and have an impact on
the
PUBUICITY

inthe company achieve its objectives.

business ability to groups need to be satisfied Publlc Relation Is a
continuous activity
activist
Similarly, consumer restriction on the sales of the andmanaging
and Is meant for creatingthe public.
impose refrain successtul relations with
because they can urging customers to
by
firm's products directlythrough the imposition of laws. Thus,
company's relation with the public
from buying them or and
important to manage publicopinion
it becomes very protect a company's inmage or its
on a regular basis. programmes to promote and
to a variety of
Public Relations refer
products in the eyes of the pubilic.
art and social
Public Relations is theorganizational
Relation
Definitions of Public Relations"
Association counseling
"The Publlc predicting thelr consequences, serve both the
In the Words of trends, which will
SClence of analyzing planned
programme of action
leaders and implementinginterest. Public
strategic
Relations asareputation.
organization and the public Relations", its
Chartered Institute of Public helping itto manage
organization by
wtne Words of
"The
that adds value to an promote and protect a
management1tfunction programmes to stakeholderslike
variety of various
involves a relations with news,speeches
The concept of Public Relations meanstostrengthen through
It Itis done
investors etc.concerts, seminars,
image or its products. etc.
tompany' s
Customers, shareholders, employees,
suppliers,
events like
sports events,
Corporate leaders, organising
 11.38
public relations.
Important Points
about Public Relation
separate
department to manage
agency. Their
main task is to They may also
* Most
organisationshave a
utilisetheservicesof any
outside
goodwvill
publicrelations They monitorthe. attitudee of
about the business. dis emigeneralnate
the
informationand build positive publicity. when there is negative
publicand generate
Department is especially useful
to act:smartly to publicity
protect about
they
Public Relations products. Atthat time, avoided.
or its is
have
Company's
the company ensure that negative publicity programmes which will add to
images and to
management to adopt
certain
not take place at all. their
top does
They also adviseensure that negativepublicity
public imageandcovera wide range of tactics. media sources in
Relations independent
Public
involves providing informnation to
# It usually coverage. services l events and promoting
ofgaining favorableofpromotingspecificproducts,
amix tact.
# Italsoinvolves amìx organisation, which is an ongoing
an
the overall brand of
Good Public Relation helpsin: of objectives.
" business and achievement
(i) Smooth functioning of
favorably on its products. For example, upkeen
that affects
(i1) Buildingcorporate image sports activities creates a positive image of the company and
ofparks or sponsoring
its products.
established product and help in launching products.
(i) Building interest in the
Role of Public Relations departnent
Relations can be discussed with respect to the functions which the
The role ofPublic
performs five functions:
performs. The public relations department organisation needs to be presented in a positive
the
1. Press Relations: Information about
manner in the press.
a story and getting the
Generating news requires skill in developing and researching
media to accept press releases is a difficult task. about
facts and correct picture
" Public Relations Department helps to provide true
media. Otherwise, news can ge
the company as it maintains direct contact with the
distorted if obtained from some other source.
2. Product Publicity: When a new product is launched, it requires special promo events like
efforts. The company can launch the product by arranging and cultural
the
department manages i
news conferences, seminars and exhibitions. The public relations
sponsoring of such events.
Communication: The i promotedthrough
3. Corporate image ofthe orgarisation needs to bee
communicating with the public and the employees.
AaketlngManagement 11.39

is usually done with the help of newsletter, annual reports, brochures, articles
. Thisaudio-visual
and materials. Companies rely on these materials to reach and influence
their target markets.
" Speeches bytthe company's executives at a meeting of tradeeassociations and interviews
with TV channels also help in promoting public relations.
Lobbying: An organisation interacts with different government officials and different
4 ministers with respect to policies relating to business and the economy.
.Moreover, government also seeks to maintain ahealthy relationship with associations of
commerce and industry and solicits the opinion of major stakeholders while formulatin8
various industrial or taxation policies.
. In such situations, Public Relations Departmernt has to be really proactive in promoting
or defeating regulations that affect the organisation.
.Counselling: The public relations department advises the management on general issues
which help inpromoting public relations and building goodwill. For exanple, contributing
money and time to certain causes like environment, wildlife, children's rights, education,
pfc. Such cause-related activities help in promoting public relations.
oddition, maintaining good public relations also helps in achieving the following marketing
objectioes:
(a) Building Awareness: The public relations department can place stories and dramatise the
product in the media. This willarouse excitement among the general public even before
the product reaches the market. This usually creates afavourable impression on the target
Customer.
(b) Building Credibility: News about aproduct in the media (whether print or electronic media)
always lends credibility in the minds of people. It helps in increasing the sales of the
product.
(c) Stimulates Sales Force:It becomes easier for the sales force to deal and convince the retailers
if they have already heard about the product in the news. Retailers and dealers also find
it easier to sell the product to the ultimate consumer.
(a) Lowers Promotion Costs: Maintaining good public relations is economical as compared to
advertising and direct mail. However, it requires alot of communication and interpersconal
skills to convince the media to give news about the organisation and its product.
11.40 Business Studies lor Class XI

QUICK REVISION
Marketing Management refers to planning, organising, directing and controling activties, which
facilitate exchange of goods and services.
Related Concepts in Marketing Management
1. Market refers to a set of actual and potential buyers of a product or service.
2. Marketing consists of all those activities, which satisfy needs and wants of customers better than
the competitors.
3. Marketer refers to any person or organisation that provides goods or services to satisfy needs of
the customers.
" Process of Marketing Management: Marketing management process involves following activities:
1. Selection of Target Market
2. Create demand for the Product
3. Create Superior Values
Marketing Management Philosophies: The main marketing management philosophies are:
1. Production Concept: Emphasise on availability and affordability of the product.
2. Product Concept: Emphasise on superior product quality, performance and features.
3. Seling Concept: Emphasise on aggressive promotional efforts to sellthe product.
4. Marketing Concept: Emphasise on finding needs of customers and satisfying them better than
competitors.
5. Societal Marketing Concept: Emphasise on welfare of the customer along with his satisfaction.
" Functions of Marketing: The various marketing functions are:
1. Gathering and Analysing Market Information 2. MarketingPlanning
3. Product Designing and Development 4. Standardisation and Grading
5. Packaging and Labelling 6. Branding
7. Customer Support Services 8. Pricing of Products
9. Promotion 10. Physical Distribution
11. Transportation 12. Storage or Warehousing
Marketing Mix refers to set of marketing tools that a firm uses to pursue its marketing objectives in
atarget market.
Elements of Marketing Mix: Four elements of marketing mix are:
1. Product 2. Price
3. Place 4. Promotion

" Product means anything of value, which is offered to the market to satisty awant or need.
Branding refers to the process of giving a name, sign or symbol to a product is called branding.
Important terms related to branding are:
1. Brand: FRefers to name, sign, design or some combination of them, which is used to identity aproduc.
2. Brand Narme: Reters to that part of brand, which can be spoken.
3. Brand Mark: Reters to that part of brand, which can be recognised in the form of sign, symbol or
design.
4. Trade Mark: Refers to that part of brand which is given legal protection.
MarketingManagement 11.41

Advantages of Branding to Marketers

" Helps in Product Differentiation
3. Differential Pricing 2. Holps in Advertising and Display Programmes
4. Ease in Introductlon of New Product
Advantages of Branding to Customers
.
1. Helps in Product ldentification 2. Ensures Quality
3. Status Symbol
eracteristics of Good Brand Name: Agood brand name should have folowingcharacteristics:
1. Simple and easily pronounceable 2. Suggestive
3. Distinctive 4. Adaptable
5. Versatile 6. Legal Protection
7. Staying Power
Packaging refers to the act of designing and producing the container or wrapper of a product.
levels of Packaging: Three different levels of packaging are:
1, Primary Package: lt refers to immediate packaging of the product.
2. Secondary Packaging: lt provides additional layer of protection.
3. Tansportation Packaging: It provides protection and ease in transportation and storage.
Importance of Packaging: Packaging is important because of following reasons:
1. Rising Standards of Health and Sanitation 2. Self-Service Outlets
3. Innovational Opportunity 4. Product Differentiation
Functions of Packaging
1. Product ldetification 2. Product Protection
3. Faciltating Use of the Product 4. Product Promotion

Labelling is the process of attaching or putting labels on the product.

"Functions Performed by Labels
1. Describe the product and specify its contents
2. ldentify the product or brand
3. To help in grading of theproducts
4. Helps in Promotion of Products
5. Provide information required by Law
" Price refers to amount of money, which a customer has to pay to buy a product.
" Factors Affecting Price Determination: Factors considered while fixing price of a product are:
1. Product Cost 2. Utility and demand of the product
3. Extent of Competition in the Market 4. Government and Legal Regulations
5. Pricing Objectives 6. Marketing Methods Used
Piace or Physical Distribution includes all those activities that are needed to make the goods and
Services available at the right place,so that people can purchase the same.
portant decisions relating to Place: Two important decisions relating to Place are:
T. Decisions regarding Channels of Distrib ution
2. Decisions regarding Physical Movement of Goods
Channels of Distribution are set of firms andindividuals that take title or assist in transferring title to
particular goods or services as it moves from the producers to the consumers.
1142 Buslness Studies for Class Xl
Types of Channels: Two most common channols aro:
1. Drachan Manutacturor sells the product clroctly to aoneumors without uaing any Intorrnodne
2. hiret Chnnels: Manulacturor solla the product through Intormodlarlos. Indiroct channela
be of tollowing tons: (a) One Level Channol; (b) Two Lovol Channol; (c) Throo Lovol Channol
Factors DeterminingCholce of Channola: Varlous factors whlah dotormilne cholco of channola axe.
1. Product Related Factors 2. Company Charactorlstlcs
3 Competitive Factors 4, Markot Factors
5. Evironmental Factors
Physical Movement of Goods: The process of physlaal movamont of goods Involves four manaGerial.
decisions or components:
1. Order Processing 2. Transportation
S. Warehousing 4. Inventory Control
Promotion refers to all such activities which intend to inform customers about the products of the
company and persuade them to buy these products.
Elements of Promotion Mix
1. Advertising 2. Personal Selling
3. Sales Promotion 4. PublicRelation
" Advertising refers to an impersonal form of communication, which is paid for by the marketers to
promote some goods or service.
" Features of Advertising
1. Paid Form 2. Impersonality
3. ldentified Sponsor
" Merits of Advertising
1. Mass Reach 2. Enhancing customer satisfaction andconfidence
3. Expressiveness 4. Economy
Role of Advertising
1. Creates Demand 2. Economies of Scale
3. Educates Consumers 4. Generates Employment
5. Improves Standard of Living 6. Sustains the Media
Objections to Advertising:Advertising is often criticised due to fllowing reasons:
1. Adds to Cost 2. Undermines Social Values
3. Confuses the Buyers 4. Encourages Sale of Inferior Products
5. Some Advertisements are in Bad Taste
Personal Selling involves oral presentation of message in the form of conversation with one or more
prospective customers for the purpose of making sales.
Qualities of a Good Salesman
1. Physical Qualities 2. Psychological /Mental Qualities
3. Technical Qualities 4. Good Communication Skills
5. Honesty 6. Courtesy
7. Persistent 8. Capacity to inspire Trust
9. Self-confidence 10. Enthusiastic
 11.43
gManagement

make
refersto short-term incentives,
Promotion
which are offered to encourage the buyersto
purchaseof
service.
a product or
Sales.
immediate
Sales.PromotionTechniques
2. Discount
1.Rebate 4. Product Combinations
3.
Retunds 6. Instant Draws and Assigned Gift
5 Quantity
Git 8. Usable Benefit
7,Lucky
Draw 10. Sampling
0%
finance@
9 Full promote and protect a company'simage or
11.Contests
variety of programmes to
Itrefers
to a
Relation:
Public
Re
eyes
public.
ofthe functions whichthe department
inthe
products. be discussed with respect to the
is Public
Relations can
.Roleof 2. Product Publicity
pertoms.
1.PressFelations 4. Lobbying
3.CorporateCommunication

5. Counseling
QUESTIONS
NCERT
GUIDELINESTO
Questions andservices.
lype marketersof goods
Answer brandingto Marketers!
Short
Very advantagesof Brandingto
1Evolain
the Advantagesof
Hint:Discuss good brandname.
characteristicsofa Good BrandName!
2.Listthe Characteristicsof
Hint:DiscUss
marketing?
concept of
What isthesocietal MarketingConcept.
3.
Discuss 'Societal products. PowerBoosterSection.
Hint: convenienceProducts'givenin
characteristicsofConvenience
4. Listthe Featuresof consumerproducts.
Hint: Discuss packagingof
advantagesof Packaging. tool?Enlist.
5. Enlistthe mportance of promotional Section.
Hint:Discuss advertising asa Power Booster
limitations of Advertising'"given services?
a the
6. Whattare of goodsand
Limitations exchange of
Hint: DiscUss of want,
with
process
theyneedand
Questions play what
ShortAnswerType Whatfunctions doesit groupsobtain withothers.
marketing?
incividual ofvalue
services
1. What is which
processby productsand
Explain. Pefers to a
social changing arketing.