Session 1 Course: Sales and Distribution Management

A NOTE ON RELEVANCE OF MARKETING MANAGEMENT & SALES MANAGEMENT: AN INTERRELATIONSHIP MARKETING: AN ACTIVITY ANALYSIS SR.NOS. 1 STEPS STEP-1 BRIEF DETAILS IDENTIFICATION OF RELEVANT NEEDS AND WANTS BASED ON S.W.O.T. ANALYSIS. THESE CAN ALSO BE REFERRED TO AS THE PLANNED, GENERIC ACTIVITY AREAS OF ANY ORGANISATION. IDENTIFICATION OF THE RELEVANT TARGET SEGMENTS WITHIN THE GENERIC SPHERES OF NEEDS AND WANTSCLUSTERS. (USE SEGMENTATION TARGETTING POSITIONING). QUALITATIVE EXPLORATION (THROUGH EXPLORATORY RESEARCH, EXPERIENCE, GUT FEELING, OBSERVATIONS, SIMILAR CASE STUDIES ETC.) OF THE PRODUCT SERVICE TYPES, WHICH MAY BE NEEDED BY THE TARGETTED END-USER SEGMENTS. INTERNALLY WITHIN THE ORGANISATION, DISCUSS WITH DESIGN, RESEARCH AND DEVELOPMENT, AND DEVELOPMENT OF SAMPLES, PROTOTYPES ETC. CARRY OUT A MORE DETAILED QUANTITATIVE MARKET STUDY FOR FIXATION OF MOST PROBABLE DEAMND AND POTENTIAL. [AIDED RESEARCH] FIXATION OF MARKETING STRATEGY.

2.

STEP-2

3.

STEP-3

4.

STEP-4

STEP-5

STEP-6

SR.NOS. 7

STEPS STEP-7

BRIEF DETAILS CLEAR DEFINITION OF MARKETING MIX PARAMETERS (6 PS)

STEP-8

ORGANISE TEST MARKETING IN PRE SELECTED AREAS: ASSESS SPECIFIC MARKET REACTIONS. BUILD-UP A SALES ORGANISATION: REGIONWISE, POSITION-WISE AND NUMBER-WISE (PRODUCT AND SERVICE ASPECTS HAVE TO BE TAKEN INTO CONSIDERATION: FIX TARGETS, QUOTA ETC.).* FULL-SCALE COMMERCIALISATION THROUGH MOTIVATION, CONTROL AND GUIDANCE OF ALL PEOPLE. FOCUS WILL PRIMARILY BE ON SALES PERSONNEL FOR SHORT TERM REVENUE GENERATION. PLANNED, TIME BASED INTERNAL MANAGEMENT AUDIT: ACTIVITY ANALYSIS, PROBLEM DEFINITION AND SOLUTION. BUILD-UP MARKETING INFORMATION SYSTEM: M.I.S.: FOLLOW-UP FEEDBACK REPLANNING.

STEP-9

10.

STEP-10

11

STEP-11

12.

STEP-12

NOTE FROM THE ABOVE SCHEMATIC DIAGRAM, ANY READER CAN SPOT THE BROAD FUNCTIONAL AREAS OF SALES MANAGEMENT. [DEBATE] * HERE, THE 8 POINT CORPORATE PLANNING MODULE OF MICHIGAN SURVEY RESEARCH CENTRE, USA WILL BE RELEVANT.

An introduction to Sales Management. The management of any organization starts with a clear definition of its generic goals, which are usually long term and qualitative in nature. This exercise is normally organised by the top management by utilising and assessing firms Strengths, Weaknesses, Opportunities and Threats (SWOT), which is explained below: A firms strengths and weaknesses (S, W), need to be assessed in terms of its resource limitations. These cover technology, capacity constraints, financial parameters, human resource availability and their competence, marketing and distribution strengths and, finally, the credibility and the goodwill of the organization, at a certain point of time. Needs and wants of targetted buyer-user segments, distributors and dealers have to be quantified and qualified. Simultaneously, competitive aspects also must be assessed from time to time. This would take care of the opportunities and threats in the environment Based on the findings , specific business objectives are set. These are usually short term and are quantifiable in nature. This leads to specific marketing objectives, followed by specific sales objectives.

Management, marketing management and sales management are all inter-linked with each other with the ultimate focus on short-term revenue generation, survival and growth of a firm, industry and even at the national international level. Planned revenue generation from targetted customers, prospects, dealers distributors will only be possible provided buyer-users needs and wants are regularly satisfied. Laws of the land and conformity with these are essential to ensure a firms survival and growth in a competitive, formal and legal environment. Similar to Different strokes for different people, different types of products-services must have different kinds of marketing and selling strategies.
Products and services can be broadly sub-divided as consumer products and services, industrial products and services, and services per se/. Perishables, non-durables and durables need individual and/or family level focus. Some concentration may be called for, for bulk purchases as in the cases of defence, railways, airlines etc. Standard, fabricated industrial products and services and capital plant and equipment need totally different, mostly institutional focus. Services are intangible in so far as their physical dimensions are concerned However, like other products and services, both physiological and symbolic characteristic are very relevant. Their marketing and selling operations will need completely different marketing and selling strategies. To take specific objectives forward, there is a need to understand the need for internal, cohesive interdepartmental planning so as to optimise short term sales revenue. There are several general misconceptions regarding selling and sales management, as a whole. These are the regional, often experience-based Myths, which must be delearnt. In India, in the 50-60s, sales personnel at the managerial level were often educated abroad. At the operations level, proper dress code, gift of the gab and charming attitude were considered as the prime

inputs to be a successful sales person, who need not be properly educated, trained on the job and experienced. These are, however, basic inputs for any career development and growth. While many of these traits, if not all, are relevant, in todays highly competitive world, relevant education, experience and personality traits are very significant for team work, cohesion and overall synergy. Management Objectives Management is all about arriving at compatible, achievable decisions, organising implementation, building an organisation so as to reach specific objectives within a pre-defined set of long term goals (usually qualitative long term mission and vision), setting in motion the tools for internal motivation, control and guidance and finally ensuring satisfaction of customers to enable long term customer relationship. To quote Dr. Peter Drucker, an internationally famous Management Guru, the major purpose of any business is to identify a set of customers and maintain them. As per Peter Drucker, any proactive organisation has to assess internally its own strengths, as well as probable weaknesses in terms of factors like financial capability, technological and technical competence, human resource i.e. skills, available marketing and distribution channels etc. Internal assessment and its own goal definition is the major key, which have to be considered first for setting long term qualitative mission and vision of any organisation. For example, the objectives of XYZ Consultants between 2001-2006 were to 1. Be number one in the field of offering short term, tailor made, in house managerial reorientation programmes for knowledge upgradation (managerial) in India, and 2. Reestablish themselves as a team of experts in the field of Industrial Marketing Research, while physically based in a region, but operating on an all India basis. Such goals demarcate any businesss boundaries which forms the basis for subsequent managerial steps. These help in deciding on future Business goals. Igor Ansoffs product market mix The concept advocated by Igor Ansoff in his product-market mix qualitative model focussed on: Related product, service lines, which are available at a point of time Market development via, say, optimisation of available human expertise. Go in for concentric or non concentric diversification (totally unrelated areas). Or a mix of the above. This qualitative model emphasises all possible avenues, starting from short term sales optimization for quick revenue generation. Depending on the culture of the organization and management focus, the sales management team may even include new, relevant product developments within existing resource constraints. Human resoruce optimisation and diversification, both concentric and non-concentric, have primarily called for, for longer term, usually new market developments, which should be handled by the marketing management personnel. In short, achievement of a firms clearly defined

objectives is the major focus area through the basic route of customer satisfaction and simultaneous adherence to administrative rules and regulations, as prevalent at a point of time. The above mentioned route should be considered by the management of any organisation to delineate where not to move in without adequate background preparation. Chosen areas for development must then be concentrated upon fully, without sidelong casual forays in non-relevant business spheres.

ITC, an international firm, which is very well-known in the tobacco-related business field, decided to move in, in the area of edible oils, after years of comprehensive data generation via exhaustive studies and analysis, internal recommendations and then arriving at an Action Plan. This was in the middle 80s in India. Hence, even non concentric diversification is possible if adequate market needs exist and to be exploited by well-planned business moves. Usually, any firms top management should go through a very detailed process to arrive at setting the companys goals, which can later be modified or extended for 5 to10 years, or even more. Concept of marketing and sales management: Marketing management, as a very important part of Management, is expected to ensure customer satisfaction and, simultaneously, also achieve a professional firms pre-defined objectives. In addition to these two aspects, adherence to Laws of the land has to be organised. As a whole, this entire process can be termed as integrated marketing management, which is expected to be flexible as per changing needs and wants of targetted buyer and user segments, and competitive offers. Sales management, as a part of marketing management, is primarily expected to achieve clearly defined, usually short term business expectations of any professional organisation. These are expected to be achieved by using presently available products and services, which are to be sold profitably to targetspecific buyers and users. Here, except some changes, which are possible to be incorporated in the 6 Ps (Product, price, place, promotion, process and people), usually in the short run, thrust is mainly on existing, available product-service mix. Both marketing and selling are applicable to all types of products and services. Even for concept testing, to start with at the generic level, these concepts are equally applicable both within the organisation as well as outside the organisation. Within any organisation, the buyers from the Materials management department, for example, are expected to service internal customers like the actual users ie the production personnel. Hence, even internal customers, within possible limits, have to be serviced and looked after by the internal suppliers ie the buyers. Sales Management As the dawn of industrialisation progressed with more and more innovations, mainly technological in nature, leading to increased production, more and more suppliers started offering options and viable alternatives to buyers and users, who could by then afford to be more choosy and exercise their rights to go in for those suppliers and their merchandise, which satisfied their needs more. Concept of bartering

was aimed at trading ones products and services by those other products and services, which were not manufactured by the former producers. Over a period of time, this gave way to production orientation in markets, where demand exceeded supplies. In these cases, sales people were more used to the concept of rationing, since buyers and users needed much more than available supplies. The next step in the evolution was the concept of sales management, where manufacturers emphasized the concept of selling exclusively presently available products and services. As competition increased, leading to oligopoly from the stage of monopoly, innovative selling techniques had to be resorted to. This was the beginning of the concept of marketing management, where problem solving and need satisfaction of buyers and users started gaining momentum. Thus, effective marketing management came into focus. However, even then and quite often now in the new millennium in India, sales departments sell what their firms produce, preferably in bulk, so as to ensure both production continuity and capacity optimisation. While it will never be possible, at least commercially to come out with a specific product or service that will satisfy every individual need or even one that fulfils temporary buyer level whims and fancies, basic, much needed concepts like segmentation, targetting, positioning, amongst several others, are quite relevant to ensure popularity of a product. These were introduced, out of sheer necessity, by far sighted commercial people, spurred on by academicians and researchers, who understood that customers had to be found and then maintained over a long term period to ensure short term survival, growth and prosperity. Loosely, people state that anything, which is worth something to targetted end user segments, can be sold either directly to the buyers and users, or via indirect distribution channel members, or both. In the early 40s, for example, anything worth producing was manufactured, usually in bulk quantities. These could be sold outright since, in most cases, demand was more than supply, be it salt, tents for army personnel or any type of armaments needed to fuel the war machines. Also, mostly, monopolistic situations existed, where rationing officers, rather than hard hitting, smooth talking problem solving salesmen, were in vogue. This section will primarily emphasise the short term revenue generating sales management operations, which will be based on existing products and services for existing customers, new prospects and dealers. Simultaneously, relevant aspects of new product development through capacity optimisation and human resource optimisation leading onto new business development, will also be dealt with in detail.

Basic function of Sales Management

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Selling & Marketing, Administrative responsibilities and interface with other functions, Recruiting and hiring sales people, Leadership and Motivation of the sales force, Sales training, Sales compensation, Organising the sales force, Sales Planning, Sales Control, Evaluation of sales performance, Causes of poor sales performance, Time & territory management, Ethical implications of sales management.

Sales Management as a part of Marketing Management Sales Management is an integral part of marketing management, which again is the overall revenuegenerating function of any effective business management. To promote any product or service or both, various tools of promotion are needed. Depending on the stage of mental as well as physical awareness of any existing buyer, or even a prospective one, the selling Tools will vary. For example, only after first level awareness about any product or service is created in the mind of a prospective buyer, based on relevant information, this awareness stage can be converted to that of interest. Subsequently, with additional timely information through the right media, mental processing in the mind of the buyer cum user may start leading to comparative evaluation of the product being presently used as against competitive products or substitutes. Only if the output from this internal evaluation is positive, based on technical, commercial, managerial or any other type of information, the concerned person or the organization may consider awarding a trial order on the supplier, who needs to follow up the sales with adequate after sales service. This is the stage

of decision making for the user, based on their needs and satisfaction. Finally, over a period of time, a long term customer relationship may result into adoption of the product, service or both. At every stage, therefore, the role of marketing or selling tools i.e. advertising, publicity, sales promotion and especially personal selling will be relevant for conviction, persuasion and finally positive decision making in favour of the more proactive, effective and innovative supplier organisation. Sales management personnel benefit from the outcome of an in-depth market-related study, which can be initiated by their marketing department. The aim is to find out the Position of any firm, at a point of time, in a particular market place. The Selling Process The Salesperson, however, focuses primarily on the following selling process Prospecting and lead generation, whereby new prospects and their needs, wants are researched into. Handling objections is the intermediary stage, where a number of queries of both customers, prospects and dealers are handled by the sales personnel. This is the stage, where both awareness and interest are activated amongst prospective buyers, users by providing relevant information. Sales presentation, usually a combination of verbal and non verbal communication, tries to convert the interest of prospects to comparative evaluation amongst different offers, which are being considered by prospective buyers, users and dealers from the view points of the product-service related issues and any other managerial consideration.

From this internal analysis, the optimal offer from a proactive vendor is chosen. This may lead onto small trial orders for the purpose of actual usage-based analysis and consequent additional benefits, if any. Sales closing involves firm decision making in favour of a particular vendor, who has satisfied all enquiries from a prospect(s) Follow up and feedback are concerned with all types of problem solving leading onto building long term customer relationship.

Any buyer, user or dealer will expect a proactive sales organisation to produce, distribute the right product and service mix as per their requirements, which should ensure: Compatible product and service quality in right amounts, properly packaged at the right time. Acceptable prices and terms for commercial transaction. Acceptable channels of distribution Needed tools for promotion.

Selling firm has to organise acceptable: 1. 2. 3. Product mix (width, depth and consistency) Pricing and credit terms Place i.e. methods of distribution via: a) Direct selling to, say, corporates, b) Indirect via wholesalers, distributors, retailers, agents etc. c) Mix of the above. 4. Promotools to create awareness to interest to (evaluation to trial) to decision to adoption via: a) Advertising and publicity: More relevant for consumer perishables, non durable and durable products. b) Sales promotion: c) Personal selling: Same as above and for standard industrial products also. More relevant for fabricated and capital plant and equipment, as well as service marketing.

Short term revenue generation: Buyers, users and even distribution channel persons have to be regularly serviced so as to ensure short term revenue generation. In sales, the emphasis is definitely on short term and existing products, services, as well as on present buyers and users. Product differentiation through packaging, package sizes, tastes, smell and any other differentiating basis needs to be incorporated so that buyers and users can associate a particular brand, a model and even the manufacturing marketing company by its Unique Selling Proposition (U.S.P.). An example Know your market M/s PYL, a German conglomerate in the business of bulk material handling had been operating in India from 1979. During the period 2000-2001, 2002-2003 and 2005, they had conducted three different all India studies vis--vis other six major competitors in India. This particular Customer Satisfaction Survey (CSS) was organized twice by an international research organization. In 2005, an internal study was conducted directly by utilizing management graduate trainees. Primary objectives of PYLs management were to assess, mostly qualitatively, the following: Firm-level Standing at a point of time, of PYL vis--vis six other major competitors in India. For this, seven major indicators had been identified (presented later)

From the customers point of view, the relative Strengths, weaknesses of each manufacturer aimed at five separate end-user industries, namely Steel, Mining, Power, Cement, and OEM. The relative areas of Dis-satisfaction, while compared to competitive offers and PYLs product-service mix for each important, existing bulk buyer-user. During 2005, CCG, an industrial marketing research group made a presentation to the Managing Director and the senior management of M/s. PYL. For six large organizations in India, they had carried out 18 separate customer satisfaction surveys, on an all India basis. M/s. CCG received this order by middle of January, 2006. Their Unique Selling Proposition (USP) was: A unique, research-based methodology for identifying each customers decision making unit members (DMUs), as well as their specific expectations on 35 different criteria. These were termed as OCS ie Optimum Criteria Set for each firm Against each OCS, at the buying firm-level, assess qualitatively from each member of the DMU, on each criterion, what they are presently getting from PYL and six other vendors Based on all the above generated data, process these into information for quantifying the relative Dis-satisfaction gaps All the above were used as a basis for Firm-level positioning. Also, specific action plans emerged, mainly on seven major issues, which are presented below: Reliable delivery Product quality Pricing, commercial terms Brand image Sales force Communication After sales service & delivery schedule A follow up two day long knowledge upgradation session was also suggested only by CCGs professionals. From the above example, it is clear that any buying organization, or even an individual at the family level will like to know specifically what he/she, or the firm, will benefit from specific, tailor-made offers by the concerned vendor, whose size, image and credibility alone may not be enough to get regular orders from known customers. Prospects will only be converted to customers, who have to be aware interested convinced about a particular vendors combined ability (Managerial, technical, commercial, service base a combination) to Deliver the goods. A prospective buyer-user, at any level, will like to know, very clearly, how, if at all, he/she will benefit by buying and using a vendors product-service mix. Smaller and relatively unknown selling organizations have to plan and present their USPs very forcefully to make its presence felt, over a period of time as in this particular real-life example.

Marketing research is critical to identify the short-term needs, as well as long-term wants of customers, prospects and dealers. These market-related information have to be considered while designing a product-service mix and then offering it to relevant targetted buyers. Integration and overall management level marketing orientation are now mandatory for survival and growth in the increasingly competitive situations. Any management, for any type of sales operations, needs to concentrate on short term generation. Specific aims can be: i) ii) iii) iv) v) vi) revenue

Fix achievable sales value, volume, numbers (In a time period) Desired market share Possible market growth rate Expected gross contribution (Sales revenue direct variable expenses including selling, distribution costs). Improve brand image Level of possible customer satisfaction index (C.S.I.)

Long term revenue generation Sales Management primarily focusses on quick generation of revenue. For this, any proactive organization mainly concentrates on its existing products and services targetted at existing customers, important prospects, distributors and dealers. Focus is also on combating presently known competitors. However, depending on the effectiveness of any manufacturing and/or marketing organization, longer term focus can be organized through new product developments, based on capacity optimization. Once again, still more longer focus can be considered by strategizing methods for human resource optimization. Focus of Sales Management: Considerable time, money and other resources need to be invested before any product, service or both can take shape and then be manufactured in bulk quantities, prior to their availability to customers, prospects and dealers. To recover this expenditure, return on investment (ROI) is necessary through actual sales. ROI is calculated as follows: Return on investment (ROI) is = Sales Average capital employed X Profit before tax (PBT) = Profit before tax Sales Average capital employed

Capital turnover ratio

Sales turnover ratio

To make the above basic profit optimisation concept realistic and achievable, the sales department has to sell quickly and profitably already manufactured and packaged products, which may have to be backed by, if called for, before, during and after sales service. In other words, revenue generation can be done only by the sales department to ensure a satisfactory capital turn over ratio i.e. optimum profit generation keeping in mind customers expectations as well as statutory Laws of the land.

Sales Service: In todays competitive world, where a number of equally efficient manufacturers and marketers may be operating in the same market, timely availability of service may even become a major differentiating denominator for choice of supplier and particular brands by a set of discerning buyers, users and dealers, who have to choose from available alternatives. In view of this, different components of before, during and after sales service are also critical. These have been explained below:

Quantifiable components of ASS (After sales service) Response rate: After a product or service has been launched, the response of the buyers-users can be assessed before launch, during the process of launching and after the product has been utilized by distribution channel members and/or the final users. The speed of response and its level of acceptance will be an indicator as to whether a productservice will be accepted, rejected or even partly accepted in a market-base. Delivery schedule : Planned vs. actual Actual deliveries need to be re-checked with pre-planned delivery schedule. This is a very important measure to achieve customer satisfaction. Erection, installation, commissioning, start up: This is primarily relevant for fabricated industrial products and services, as well as for capital plant and equipment. In many organizations in India, specially in very large set-ups, often, there are separate departments within the buying organizations to organize these activities. Spare part availability: Timely availability of spare parts is an important indicator of customer satisfaction for many industrial products and services. Training of operators: For fabricated industrial products and services, as well as for very expensive capital plant and equipment, operator level training is very important. Its major objective is to ensure that, at the production level, the users operators are fully trained to use newly-supplied, usually heavy and expensive industrial products and services. Visit frequency: Sales and service engineers, as well as other types of sales personnel need to meet and communicate at planned intervals, with both distribution channel members as well as ultimate buyers and users. Purpose is to develop a close rapport with the customers and distributors,

whose problems, if any, need to be solved quickly. This approach helps build-up long term customer loyalty and customer retention. Qualitative components :Quality of relationship: with sales, service personnel Quality of relationship between vendors team and DMUs (decision making unit) members ie: Initiators, who start the search process for right suppliers, right types of materials Influencers, who have a major say in purchase decision making (finance, marketing etc.) Buyers are usually from materials management Deciders are senior management personnel Actual users are factory based technical personnel. Gate keepers:

This is a traditional term used in the marketing management parlance. In many management cultures, it has been observed that there are rigid, usually old employees, who may be risk averse. In other words, they are very comfortable with existing vendors and established procedures, which have been developed over a period of time. Any risk taking alternative may be, at least initially, frowned upon. Depending on the presence of this type of personnel, whose working styles need to be assessed clearly, the concerned sales personnel will have to tailor their sales presentations in line with the thinking and expectations of these old gate keepers. Even, Gate-keepers may be involved ie rigid mentality of many old timers with preset views. All the above-mentioned members constitute the Decision Making Unit (DMU) To sum-up: Use the Corporate Planning Module advocated by Michigan Survey Research Centre in 1967

Concept:

1967 model: Corporate Health parameters (Refer: Michigan Survey Research Centre for General Electric, USA)
At present S1 Optimum possible S2 Gap(S3-S2) Objectives S3

Sr.Nos. Parameters 1 Sales: Volume, value, number

2.

Market share (M.S.)

M.S.1 G1

M.S.2 G2

Gap

M.S.3 G3

3.

Rate of market growth (G)

Gap

4 5.

Profit before tax (PBT) Employee satisfaction (E.S.) / Morale/ Market standing (Goodwill) Relation with the Power at a point of time Customer Satisfaction Index

PBT1 E.S.1

PBT2 E.S.2

Gap Gap

PBT3 E.S.3

6.

M.S.G.1

M.S.G.2

Gap

M.S.G.3

7.

P1 C.S.I.1

P2 C.S.I.2

Gap

P3 C.S.I.3

Add

Gap

Case study
ABN (P) Ltd : Loose tea versus packed tea from a very well known tea marketer. Preface : Path of least resistance is a natural human phenomenon. Given the choice, and relative freedom, any sales executive (or for that matter any person) will prefer to service known customers / segments, where the vendor firm, its products / services are known and the sales person is known intimately and may be even at a personal level, where he can call All the shots and can even pressurise the decision makers to take, for example, more than their usual monthly supplies by Calling in old debts. However, for new products, new prospects and dealers, on the other hand, specially when competitive firms are already operating, the job of a sales person becomes much more difficult since he/she has to :Organise considerable energy investment to identify, in each prospective firm, dealer or both the specific decision making unit members (DMUs), who have to be contacted may be quite a few times before positive response can be expected via the AIDA route (awareness, interest, evaluation, trial, decision, adoption). There are major possibilities of regular rejection, humiliation resulting in frustration. In many cases, especially for new product / service launch, or even relaunch. This case is all about relaunch of a fast moving consumer good. It is a very well-known, nicely flavoured 100% Darjeeling tea, whose brand name is RR, packed and promoted earlier in beautifully designed and printed tin cans, specially made for them by Metal Box Ltd with an eye also to the export market. A number of permutations and combinations may be relevant for this low level of market acceptance * * The manufacturing and/or marketing firm may not be too well known, vis vis existing suppliers [firms image]. The product (or service) may not be acceptable due to variety of intrinsic factors like (in this case):- Tea flavour or liquor or both - Type of packaging and its disposability - Price and dealer level terms - Distribution efficiency - Indifferent promotion via :* Advertising, * Publicity * Sales promotion * Personal selling and quality of sales personnel * Mix of the above. - And, most important of all, Quality and frequency of service, which may be a major differentiator amongst vendor firms. Low level of motivation of sales personnel, many of whom are traditional and refuse to change. The sales team may be too high handed and even obnoxious as per the dealers expectations (FMCG products need, usually, extensive and wide spread dealer/retail network, and they have to be Suitably managed, by marketers sales team).

* *

Dr.PKG, in the role of a researcher, had found many Evidence regarding propensity of many so called sales professionals (many of whom have liberal education with MBAs from good management institutes) to sit in air conditioned offices, give long lectures in impeccable English language, plan and ponder in innumerable never ending internal meetings, with hardly any time to spare for those, who really count (for this case) ie 1,718 dealers and retailers in twenty eight separate Zones of Kolkata city. All these big medium, small and very small resellers stocked some types of loose and/or packed tea from many large or medium tea production firms. They, in turn, needed to service literally millions of tea buyers, all over the metropolis, on a daily basis. This case, therefore, deals with a fast-moving consumer item, which needs fast-paced, effective intensive distribution, backed by well-planned promotional inputs. Quality should be in tune with targetted buyer-user level expectations. For ABN (P) Ltd ,the newly appointed group product manager, a young man of 35 years with a MBA from a good management institute from Delhi (his parents were in Delhi) and related experience of nearly ten years in other FMCG manufacturing companies, was located at Kolkata in middle of 1997 at this quite well known firms head office. They owned a number of tea gardens in North of West Bengal. This new appointees name was Sanjeev Malhotra (SM). He was assisted by a few other sales professionals, all of them with MBA(s) from a variety of management institutes, ranging from IIM, Bangalore to IISW&BM, affiliated to University of Kolkata. SM reported to a Vice President (marketing) Mr AKN, an old timer in this firm and not a MBA himself. The newest appointee, as an adviser, was MKN, who was earlier the managing director in a very well known IMFL marketing firm (Indian made foreign liquor) and a very well known marketer, who had risen from the ranks once again a non MBA. The sales set up was as follows:

ABN(Pvt) Ltd MKN, Adviser (60+ age) AKN, VP(Marketing) [58 years, B.A] * SM, Group product manager (MBA, 35 years)

Product managers

BM (32 years of age from IIM, Bangalore)

SKC (33 years age, from IISW&BM)

Ms SK (30 years of age and MBA from IISW&BM)

Retail sales officers (all non MBAs, highly experienced around 40-45 years of age) (3 persons : In charge of different parts of Kolkata) 5 sales persons * He will soon retire.

SM will be groomed, after few years, to be elevated to this position. Above set up was only to look after sales of packed tea of different brand names. This case study is concerned only with a particular brand name RR, which had failed to click in the Kolkata market in early 80(s). This same tea was being relaunched in the same market, this time in 500 gm paper carton/composites, suitably printed, prior to commercial launch. Other sizes could also be considered, if market needs were properly identified. MKNs magic formula (marketing wizard) Similar meetings had been held with a market researcher from a management consultancy company (XYZ Pvt Ltd). Her name was Ms PP, a 28 year old Honours Graduate with three years of field research experience. She had six field investigators under her supervision. These brief meetings (three, one after another) were to identify why earlier this brand had failed in spite of the fact that product quality was indeed very high, especially targetted at those, who valued flavour over liquor and for whom price sensitivity was lower. An important possible causative factor for commercial failure, as suggested by the retail sales officers, who were expected to be nearest to the market, was usage of expensive tin containers, which were non disposable. Also, other brands, except those for export purposes, from firms like Tata Tea, Goodricke and several other tea marketing firms mainly used paper/composites at slightly lower prices. Back up advertising support was, however, much lesser from this traditional organisation as also was lack of free sampling. Both dealer level, and may be even consumer awareness, were lower as expressed by the highly practical adviser, who stressed that:

It was necessary to assess first how many dealers and retailers of any type of tea (loose, packed, both) were physically present in 28 separate Zones of Kolkata (as per physical layout chalked out in a map). Relevant information on these centres had to be recorded. Out of these, how many stored their packed tea, specially RR or any other brand from their firm. Also, what other tea brands from other companies were stocked. Views and opinions of these channel members were to be solicited regarding :Their firms (ABN) total support system, as a whole, for the presently available market image of tea brand, especially RR, which had failed commercially All tea brands Any other complaints ?

At a point of time, market credibility of ABN also needed to be assessed. Interestingly, all old timers, except SM (a relative new comer) were fidgety regarding this intensive, firstever attempt at detailed market investigation, which was bound to come out with plenty of data (subjective and otherwise), some of which may not be too palatable to the firms office based sales personnel. Mr MKN also insisted that, based on the market data to be generated, he would like the consultancy firm and others to work out: Zonewise: Concentration of ABC dealers and retailers and how much of packed tea each of this sub segments stored at a point of time and how much these channel members sold, say, every two weeks (only packed tea) brandwise [available in standard reports by a leading research firm]? As stated earlier, record views and opinions of these channel members, specially regarding the RR brand (as compared to Similar other brands). Actual sales of their brands (especially RR, which had been physically relaunched few months back in this city) every two weeks, during the last three months to assess impact, if any, due to seasonality or any other factors. Comparison with sales of other similar (price range wise) brands from other tea marketing organisations.

Presently, this firm (following their age old concept of bulk selling to agency houses) sold in bulk to three wholesellers in this city. A major job of each retail sales officer was to coordinate supplies to each of these big wholesellers and ensure that they had enough stocks, at any point of time, so that they could move packed tea to other local dealers and retailers in each of these pre defined 28 geographical zones. Few zones, due to price and taste factors, may not be ABNs Cup of tea, at that point of time. Mr MKN rightly felt that, for each similar tea brand, for this case study on RR, it will be interesting to compare, zonewise:Physical comparison of stock movement of RR/all similar brands (say every two weeks) by each of their wholesellers, as compared to total movement of all similar packed tea brands.

Based on data (to be generated), for each zone, separate analysis can be done for :-

A class of retailers (bulk) B class of retailers (medium) C class of retailers (small). From the above, MKN and SM will decide whether to organise supplies directly to each zone on their own (like the soft drink manufacturers : Pepsi, Coca Cola etc) by using their own vehicles / or those taken on long term contract. Entire distribution system, if called for, can undergo a massive, much needed change, which will harp on all their sales people to be On their toes rather than be couped up in air conditioned offices and be involved with continuous internal, mostly non productive meetings. The entire structure may have to be revamped. Need for MIS :However, logical Steps have to be worked out, based on reliable, valid, consistent and substantial market information namely:Goals and objectives for Kolkata city need to be clearly worked out first. Specific zonewise targets, based on total demand now (for all similar brands). Constraints of the firm / RR brand may have to be targeted at specific user classes. Hence, specific zones may have to be selected for distribution. Cost benefit analysis ie : Direct supplies to few zones For others, via wholesellers.

Simultaneously, concepts (like the following) have to be taken into consideration :Cost of a sales call (bunch of calls for each pre specified zone for specific time periods) to organise :Direct supplies Or Supplies via wholesellers as at present Opportunity costs : For example, only if wholesalers are used, what are the ? * Costs (to the company and to the distributors) * Benefits to the local dealers, retailers, and also in quantitative (sales) terms to the marketing firm (and consequent sales value, gross profits). [Suggest: cost benefit analysis is needed prior to decision making]. Study findings (From this six week old intensive assignment : End 1997 early 1998) 1,718 dealers and retailers in all were identified and interviewed in Kolkata. Zonewise details had been recorded (A-B-C analysis could be organised). Less than 50% of these reselling units stocked this companys any packed tea brand ! (an indicator of the relative current wholeseller level inefficiency and also lackadaisical approach of full time sales personnel). Direct sales teams efforts could now be quantified in terms of actual, much needed distribution coverage. For RR brand, only 5% of the stores had stored this brand. Based on the earlier launch, some residual memory had been triggered in few cases during this 1997 end early 1998 study.

Quite a few shop owners stated that :Awful back-up service by this companys direct field sales personnel, especially for restocking purposes. They (sales people) hardly took any interest ! Even old due cheques (for the company) were not collected ! In few cases, Ms PP was requested to collect these old cheques, on behalf of the company!! Merchandising was a relatively foreign concept to this particular company, which was still steeped in the monopolistic mode, even during 1997-98.

In subsequent meetings (after the survey), it also came to light that :Most of the sales persons time and energy were spent (by the existing sales personnel)on the existing wholesellers and pressurising them to stock as much as possible (pressure technique). Very occasionally, other dealers and retailers were visited (less than 10% in year) since they were expected to be serviced by the wholesalers !! No records or data were kept on actual time (and energy) utilised on real time sales contacts, waiting and travelling time and definitely not on related administrative time, which accounted for highest time spending. Very poor data on competition. Theoretical planning (and forecasting) was resorted to, based mainly on past historical data. Hardly any information were obtained and then maintained on :Changing tastes and preferences of ultimate tea buyers and users. What were their preferences and basis for brand choice ? How to influence their preferences ? Finally, what all to do to improve sales efficiency and effectiveness ?

Dilemma for SM : MKN wanted to re establish RR brand in Kolkata city within 1998-1999. Specific quantitative target too had been given to SM, a dynamic new comer, along with allowable budget for any type of sales promotion (how about the Vice President and his role?) Quality and cost wise, RR brand belonged to a top category.

Where was the firm going wrong?

Questions Based on the case study ABN (P) Ltd, groupwise, students need to solve the issues mentioned below: 1. Why is relaunching necessary? Has it any connection with the Product Life Cycle (PLC) concept? If so, for which phase of PLC curve is this selling strategy relevant? Debate and discuss. 2. In this particular case, identify systematically the following: What are the Symptoms (use SWOT concept) in this case? Using Brainstorming Sessions, identify all possible causative factors ie problems, which have contributed, cumulatively, to the above-mentioned Symptoms? Pinpoint the key causative factors (for example these can be): Poor distribution system (what should be the right one?) Poor promotion (AIDA concept) [what should be done? How?] Lack of market knowledge including those of competition In general, a lackadaisical attitude and casual Management approach Anything else?

(using CBA technique, what will be your Description and prescription for this Sales Management problem? Be completely specific and kindly do not be vague). 3. How will you implement decisions taken by your group? (use Activity Analysis)

Using all the above as a backdrop, conceptually, organise the following: What specific activities need to be taken by the Sales Management Team (SMT) for effective relaunching of RR brand? Using a matrix approach, activitywise, approximate time and cost estimate in greater Kolkata city for: All the 1,718 dealers Or, decide FIRST on your STP approach ie sales strategy [what may be the cost centres?] Finally, IF you had a free hand, what type of organisation structure you think will be effective? Present your logic.

4.

Using activity analysis, groupwise, in a matrix format, approximate your selling and distribution expenses (S&D). Obviously, your own Sales Management approach will be basis for all resource planning.

the

[Use given case study]. Assume data logically

Selling & Distribution (S&D) expenses: A format for budgeting

Sr Nos Activities (List these) Selling expenses (Cost centres) Distribution Inventory Anything else? Total expenses (Rs./time period)

Session-2 Process of selling

Process of selling is a combination of scientific guidelines, tempered by artistic, imaginative handling for creative solutions. Logic, common sense dictate that the selling traits of a bazar type of sales person (retail sales person) will be quite different from a far more sophisticated technical sales person and even more so from that of a Consultant. The types of sales jobs, types of people (DMUs) to be interacted with and regularly to be contacted will influence selection, recruitment, training of the compatible sales, service types, whose intrinsic personality traits (education, experience, life styles, smartness levels) too need to be job specific. Internal training needs to be focussed not only on product, service and their commercial aspects but also on soft skills, as advocated by: Professor Meherbeins PICTURE Principle: presentation, communication skills Quality of communication, negotiation, persuasion and then conviction skills

Ability to be empathetic, and at the same time, learn to say no politely but often firmly [take a stand].

A salesperson has to be a combination of several traits. A positive frame of mind, patience, perseverance and listening ability are all called for to be a good salesperson, besides having complete product and market knowledge. Not everybody can be in sales or service industry, where customer level rejections are frequent and highly frustrating. Product and sales person Depending on the product and service type to be organised, background (education and experience) and personality types of sales people need to be different. For example: Consumer perishables: Low technical knowledge is acceptable. Public relations, planning and coordination abilities are important. Prompt, timely distribution may be critical. Capital plant, equipment selling: It will need integrated project marketing oriented officers, who are technically sound. He/she will have to be a team person. An example A Rs 5 crore worth polymerization reactor (needed for Plastics and Chemical production at IPCL,Vadodara, a Rs 5,000 crore annual turnover firm in 2001) had to be purchased by a team from IPCL. It comprised of a senior director, project manager, finance manager and a high profile purchase person. This will be IPCLs D.M.U., besides a top grade technocrat.

Internally, the interaction first was within and across team members to formulate uniform purchase policy. Total problem solving attitude of the top buyer (a part of the project team) went a long way for interacting with the sales-service teams from different vendor firms, across the globe. These interactions between buyer team (from IPCL) and vendors selling teams around the globe were comprehensive. All relevant aspects of technology, production, finance, detailed service aspects were covered in depth, prior to purchase decision making. Over a 18 month cycle, the buying team visited several vendor firms all over the world. After several meetings and physical on-the-job demonstrations, IPCLs buying team decided on a medium-sized firm in Japan, who could provide relevant technology and the right reactor. Long term business relationship: After the decision has been taken and order placed on one vendor, quality and speed of after sales service helped further in cementing a long term business relationship, the stage of adoption. The total purchase decision making process and the successful vendors relative emphasis on different aspects of the product, service as well as the organization level image and credibility, singly or cumulatively, stressed on: For this case * The type of product, service to be purchased and used [very expensive capital plant] * Its value and level of significance to the purchasing team (Very high) * Effort in purchasing (Very high) * Its technical and technological complexity (Very complex) * Type and frequency of service needed before, during and after purchase negotiation (Very important) * Purchase frequency * Life of the product ie the usage rate (Very high :Iife) * Finally, the variety and ways in which the product and service will give satisfaction to the buyers and users. [Primarily usage oriented].

Consumer level purchasing process: An example

An example: Ms. Piyali got married on 11.12.2000 A.D. at Kolkata to her childhood sweetheart Mr. Cecil Philips. A couple of months before the wedding, Piyali was on a wild shopping trip(s) to buy her wedding dresses. The marriage was to be solemnized first at a Catholic Church, and, on the same evening, according to Hindu Rites. Piyali was the initiator of purchases, influencer, decision maker and user for two sets of totally different dress sets, costing very heavily to her father, the buyer, several thousands of rupees!!

Piyali was Playing four separate Roles in the decision making-unit (DMU), while Dr.PKG was the buyer alone, who was told where to pay, what amounts by cash, credit card, cheques usually a combination. His Weak voice was muffled by several dozens of dazzling dress alternatives, glorifying in various hues colours shades designs. Obviously, prices depended on sources of supplies and latters brand image, market standing, goodwill and fetching power via store-level retailing and merchandising abilities. Besides money transaction, a very rational factor, Piyalis decisions were considerably influenced by her Perceptions of quality, beauty. She and her opinions were considerably influenced by her two close excollege friends, who formed the travelling peer group. Several other non-rational issues must have influenced Piyalis buying process and later-level purchase decisions. These are based on emotion and self perceptions. Besides, both social level considerations played an important part as well as economic consideration. Importance of purchasing: Marriage-specific dress purchases (occasion-specific) will necessitate exclusive and selective retail centres, which may even advertise to be marriage specialists. Mix of rational and not so rational issues were, therefore, involved prior to taking purchase decision in favour of a particular vendor and a particular sari / marriage dress type. The smart sales-person and the selling organization needs to study the prospective customers psyche and her buying influences. Accordingly, the sales pitch has to be designed, specially at the retail (point of purchase) level. Even in-store advertising and merchandising will play important influencing roles. Degree of rationality emotion, its mix, therefore, will be product-market specific, buyer-specific, situation-specific and partly will be influenced by known competition, besides economic consideration. After sales service: Its importance in purchasing decisions: A long term adoption of any product-service or even any selling organization will be possible only if the project team has been able to organize quality after sales service, whose eight components are as follows: Relevance varies on product-service class wise. These are: Quantifiable issues: Effective response rate * Before negotiation * During negotiation * After sales follow up. Delivery schedule as per buyers requirements, Timely supply of spare parts, Effective erection, installation, commissioning, start up, specially for project marketing, Availability of operator training, (Usage point) Frequency of visits of sales and service personnel,

Qualitative aspects: Problem solving attitude of top management of the vendor firm. Quality of relationship between vendor teams members and DMU of the prospective firm.

Job and environment specificity need to be kept in mind for both the present and the foreseeable future. Product-service mix: Its relevance to process of selling Diagram- 1 PRODUCT SERVICE MIX VERSUS SELLING PROCESS TYPES OF PRODUCTS/SERVICES Consumer: - Perishable - Non-durable- Durable - Standard - Fabricated - Capital plant & equipment. EMPHASIS ON STEPS OF THE SELLING PROCESS First step: Second step: Industrial: Prospecting and lead generation Handling objections

Third step:

Sales presentation

Services:

Industrial : (for example) knowledge personnel Fourth step: Closing sales (teachers, consultants) Fifth step: Follow up Consumer : Banking, Feedback Beauty saloons. Replan Retailing, (aim: long term customer relationship Entertainment. and satisfaction)

Product-service types will be the starting base as how to influence both prospects and existing customers. This will decide the relative importance of the selling process steps. Aim is to create a positive impression in the DMUs minds, who have to feel that buying from a particular source and specific model is safe for them and their problems will be solved, both in the short and on long term basis. Also, vendor selection will not invite any criticism from other DMU members within the firm. Its relative emphasis will also be product-service specific. Presentation and communication: purpose is to make a positive impact Voice modulation, starting from the first physical entry stage. Body language, starting from: * Basic dress code, * Eye contacts, * Physical stature and required gestures,

* Firmness of handshake (as an example), * Body (and mental) flexibility. Tonal voice quality during interaction time. Ability to listen and then to react with firm, knowledgable answers (if one does not know what to reply, it is always better to say so and state that, after cross checking, necessary information will be forwarded). Do not resort to bluffing. It does not pay off Above all, a sales persons personality and self confidence makes all the difference (besides product and commercial knowledge) for getting a decision and then to build up a long term business relationship.

Planned aggressiveness is sometimes necessary to shake up old beliefs and perceptions of oftenconservative buyers, users and dealers, who are often used to a particular product-service offer from known vendors. Professor A.Meherbeins PICTURE principle is important where the audio-visual presentation aspects may make all the difference between a successful, or otherwise, sales presentation.
COMMUNICATION AND ITS CONSPICUOUS ABSENCE

Conceptual framework: Communication takes place whenever and wherever more than one person is involved. Effective communication is based on a number of factors: 1. Clarity and contents in communication: Often enough, communication, which may be through verbal means, written mode, gestures and postures, body language and eye contacts, all these are meant to convey clearly defined Specific information bits (SIBs), which should be pre-decided before the communication process starts. More often than not, during long and intermittent communication, the communicator fails to convey clearly what is meant for the eyes, ears and understanding of those, who are receiving the communication. This, therefore, should be clearly thought out in advance. Contents: Similar to communication clarity as already mentioned earlier, the SIBs ie specific information bits, which are meant to be conveyed, are to be thought out in advance. Then only, point by point, each issue needs to be conveyed. This aspect, which appears very simple in nature, is, however, often distracted by lack of previous thought process as well as inclusion of irrelevant contents. 2. Perceptions: In real-life situations, more so for non-rational issues, perception of both communicators and receivers play a key role.

A few real-life examples are enclosed later as examples. In short, there is a very common saying, which is as follows: one tends to perceive what he/she wants to see, wants to understand, wants to communicate and even wants to feel. The above-mentioned perceptual filters are strictly individual in nature. These are based on not only individual personality factors but also considerably influenced by respective families, peer groups, regional and sub-cultures and overall socio-cultural-political-legal and even economic infrastructure of the relevant society. 3. Influence of verbal and non-verbal media: Professor A.Meherbein, based on his life long research in the generic field of communication, emphasised that: Verbal communication, based on the PICTURE principle, accounts for 45% of the total impact, if any, on the recipients. The PICTURE principle is defined as follows: P: I: C: T: U: R: E: Pitch Inflection Clarity Tuning/modulations Understanding (by the recipients of communication) Rate or speed of communication flow (and response from the receivers) Enunciation or pronunciation.

Non-verbal communication stresses that 55% of the impact, due to any form of communication, is based on sub-issues like the following: * * * Gestures and postures Other forms of body language Type and frequency of eye contacts

In general, the overall impact due to a mix of all the above needs to be target specific and hence planned and customized. For example, when a sales person is trying to communicate with semi literate rural prospects, the pitch of voice, extent of usage of local dialects and local person specific body language need to be imbibed. Even usage of local dress code, usage of local typical words will reflect the local sub-culture within which the sales persons have to operate IF the aim is to convert prospects to regular customers. On the other hand, while dealing with corporate-level, educated and sophisticated urban executives, the full dress code, use of English, sophistication in mannerisms will all be necessary to convey the impression that the concerned manufacturing and marketing organizations, represented by its sales people, are fully trustworthy and confident enough to to deliver the goods to the intended, prospective buyers and users.

How to create a positive impact? All senders of communication think that their ideas will be accepted because they (senders) ASSUME that the receivers will be receptive!! This, unfortunately, is more often than not, not as expected. Process of communication: Relevant elements are as follows: (10 point programme) The sender The sender has an idea The sender encodes the idea into a message The message travels through the channel Noise in the transmission process The receiver gets the message The receiver decodes the message The receiver provides the feedback The frame of reference of the sender and the receiver The context of the receiver.

This section will primarily deal with: - Personal and/or intra-personal communication. This may also involve inter personal communication. - Organizational communication - Some aspects of social communication - Few specific aspects of communication meant to transform, for example, prospects to full time customers. A-I-D-A will be relevant. - Few aspects of corporate and even group level communication may also be involved, depending on the specificity of the relevant situations. Communication, like any product-service marketing, will be target specific. However, in addition to all the above conceptual aspects, the communication strategists need to keep in mind why and for whom the communication mix is being designed, prior to planned implementation. These are: - Basic courtesy like using the word please needs to be used. Rudeness, therefore, should never be permitted. - Clarity- Conciseness: To the point communication. - Be concrete: [Specificity] Use concrete words. - Correctness: Please use correct grammar and ensure proper message composition. Appropriate words and adapting the right level of communication are basic necessities.

- Consideration: Please give due importance to the receiver. Messages should be planned for accordingly. - Completeness: A business communication message is not complete unless it adheres to all the other Cs. Completeness does not only mean providing all necessary information but also it should include something extra to ensure how the matter has been put across to the receiver of the message. The substance and the style of the message, therefore, must go hand in hand. Example: In real-life situations, where more than one person and/or organization is involved, all the above, in various degrees, come into play. Instead of making a positive impact on the receiver of the messages, it may even happen that these fall flat!! In many cases, even negative impressions can be created. In a variety of both class-room and real-life situations, Dr.PKG has experimented with small examples, one of which is given below: A class room was divided into several groups. From each group, Dr.PKG verbally whispered few lines like the following: Good morning (SIB-1) I am the Director from Core Management Consultants (SIB-2). I have come here to help you to understand few aspects of presentation and communication skills (SIB-3). Only with your full and undivided cooperation, in mutual interest, my objective can be achieved. (SIB-4). This instructor requested the concerned members from different groups to talk/whisper separately these 4 SIBs only to other members of each concerned group. (there were 6 groups in all). Findings: From each of the 6 groups, the last concerned member reported what he/she heard from his/her perspective. Within each group, the clarity and communication with each group was considerably different from each other!! Across the six groups, the last group member(s), from each group, came out with totally different statements, which were based on individual perceptions!! For example: The first line statement was jingle bell, jingle bell, jingle all the way. These were before the Christmas holidays.

The last disorted statement was: eveready battery, eveready battery, eveready battery all the way!! The above was experimented upon in a 25 member strong sales team from the very well-known Eveready company. Example-2: Dr. PKG had recently requested the bearer in a restaurant for giving to him, for breakfast, two boiled eggs besides a few pieces of toasts with butter. The young, smartly dressed hotel boy gave him two pieces of toasts without butter!! Also, only one boiled egg was given without the internal yellow yolk!! When the 65 year old dr.PKG asked why the above have been done and that too for the last two weeks in regular succession, the prompt reply was as follows: Sir, I have been serving you for the last 14 days. I took the liberty of giving you only one boiled egg (without the yellow yolk) and toasts without butter, since, more like a son to you, I thought these will be healthier at your age!! The above is a typical example of association and individual perceptions. In many sales-related situations, there is a distinct probability that customers may even be taken for granted, similar to husbands and wives taking each other for granted!! Basis for setting both sales targets as well as personal targets An effective sales persons typical business schedule: This compares relevance and usage of the selling process. Stepwise process of setting targets: Step-1: Annual Business Plan (ABP) Step-2: Annual Marketing Plan (AMP) Step-3: Annual Sales Plan (ASP) Step-4: Break up

Maintenance Selling

Developmental Selling

Step-5: Separately for each of the above. Step-6: Fix regional targets, preferably through M.B.O. approach

Step-7: (Depending on organization) break-up as follows:

Product-service line basis

Location specific targets

Step-8: Fix individual targets time specific. Step-9: Fix individual sales expenditure, as a part of overall, branch specific expenditure. Step-10:Carryout / organize back-up services (With proper time allotment)

Plan for actual field level work

Plan for travelling and waiting

Coordination with development team for: -Market research -Needed practical activities -Sales level coordination for new product development/ launching

Back up administrative services like: -Sales forecasting -Sales budgetting -Prepare short and specific reports including sales call report etc.

This effective sales person has found out about his number and types of customers, prospects and dealers in a given territory for his presently available products and services. Through marketing research, prior experience-based knowledge or otherwise, strengths and weaknesses of competitors are also known. Product has been positioned. Relevant product knowledge has been disseminated. Key buyers have been classified as A,B,C categories ie big, medium and small. Their needs & wants also have been found out. It is also appreciated that, unlike in marketing, the same available product/service mix has to be physically sold to parties with differing needs. For example, in addition to normal Coca Cola, dietary cokes in different package sizes can be made available. To service, separately, different needs, the basic product specifications are usually not altered. At the most, different channels of distribution, prices, package sizes etc can be earmarked for different buying segments. Hence, the sales pitch (stages of objection handling, presentation and sales closing, as well as later follow up) will have to be different to highlight to each buying segment that they are really getting what they need. Often, for cold drinks, for example, relaunching is organized for the same product in different types, sizes, shapes of packages. Conversely, for expensive fabricated and capital plant and equipment, tailored product and service offering is a must, as also a different type of prospecting / lead generation, handling objections, sales presentation, sales closing and follow up are called for. So also needed is a different type of sales personality, as well as his/her background.

The sales work load say, has been quantified in terms of which customers, prospects and dealers need (individually or segment wise) how many sales calls should be made, say, per week or month so that constant sales pressure can be maintained. In addition, for new prospects, outlets etc, conversion will necessitate a different type of developmental personality. However, in real life, the same sales persons usually service both existing customers (maintenance selling) as well as new prospects (developmental selling), although the types of sales jobs are quite different. In many firms, however, a type of sales personality (smart, sophisticated, fluency in English communication, engineers or MBA type) is employed to service corporate clients. For smaller firms and individuals, a second type of persuasive salesmen/women are deployed, who speak in colloquial language (s). For the sub segment (dealers), another third different type of sales person needs to be employed. This allocation too (buyer type versus type of sales persons) needs to be organized by an effective sales executive, who also needs to: Fix sales call norms (business and individual sales targets) in consultation with the concerned sales person, may be separately for different target segments. It is assumed that demand and potential have been estimated in advance. Organize, say, monthly (broken down into weekly and sometimes daily) visit plans, in prescribed formats. Ensure optimum time utilization for customer/prospect/dealer contacts and try to minimize waiting time and travelling time, latter in proportion to territorys shape, size and obviously business potential. All the above will depend on the firms, say, monthly sales targets, which can be further broken down into: Target for each sales person versus allotted territory, Product linewise sales targets, Selling and distribution budgets (S & D).

Based on the above, monthly, quarterly or half yearly computation can be done to pinpoint: Which product lines are more profitable and hence to be stressed more? Which sales persons are effective and with what product service types?

Effectiveness (of the sales executive) is to ensure optimum time utilization in selling and servicing customers, prospects and dealers. Minimum time and energy should be invested for: Daily, weekly, monthly report preparation (output reports must be short, factual and to the point). Quarterly, half yearly competition report. Periodic forecasting Any other administrative work including suggestions for new product developments.

Example: For a multi national corporation manufacturing and marketing highly complex and very expensive fabricated industrial items, which are very expensive, their German Management had centralized all their sales & service personnel at their Kolkata Head Office. Factory was near Kolkata city.

During an interim study, it was computed that actual customer contact time was around 40%, while the other sales functions accounted for the balance 60% ! While for tailor made items, the sales engineers were to be partly involved in fixing product specifications (although design and fabrication department were really the functional centres), local centralization at head office, it was felt by the outside Consultant, these activities were not called for. Apart from poor sales response rate, travelling expenses of both sales & service personnel were much higher, since customers and prospects were scattered all over India. The Consultant suggested decentralization at the regional levels. Concept of office cum residence was mooted so that Sales & Service personnel could be physically located, at a fairly low expenditure, near those geographical centres, where demand and potential of customers and prospects were concentrated. All marketing research, overall planning, budgetting and forecasting could be centralized at Kolkata head office ie. the staff level of functions. To ensure in depth communication, half yearly or yearly all India conferences could be organized at head office. Local offices could be given pre defined powers to negotiate on price and financial aspects.(Within limits). How to go about?
Sales pitch Finally, have relevant communication details been recorded and internally communicated (within the vendor firm) to all concerned for taking timely actions? Which aspects of the 6 Ps (product, price, place, promotion, process and people) need to be stressed and to whom? Continuous checks and cross checks need to be planned for and organized. Buyer and seller types: matching Need to organize needed selling process (as per differing needs):Large number of computations and permutations can be done in so far as matching selling processes vis vis product service types, target segments profiles etc are concerned. For example: Corporate buyers should be met with a specific type of selling process, as well as a specific type of sales personality. In this segment, differing personality types (buyers and users) will need different types of selling process(es) ie emphasis will be dependent on both the product service type and type of buyers, users. Similarly, for smaller firms (even for individual buyers and users), the process of selling needs to be different. For dealers, process will also be different. Maintenance selling for existing products, service and known customers Prospecting and lead generation will have a lesser relevance since customers are already known. Only new prospects, new sales outlets have to be found out to enlarge business contacts.

For the objection handling stage, complete knowledge about presently available products and services is essential. Basic aim is to find out newer and better ways of customer satisfaction to ensure their long term retention vis vis competitive offers. Sales presentation will obviously be mostly concerned with known decision making unit (DMU) members, whose needs and wants may be at least partly, if not fully, known. Hence, besides personal familiarity, to build on strength, the sales people need to figure out and then present verbally, or over the phone or via any other medium, how to offer better services and not necessarily harp only on price reduction and better financial terms. For example, from buyer and users points of views, how to ensure work simplification, increase in productivity may be better selling tools, rather than only basic price reduction. Buyer specific expectations have to be assessed and complied with. This alone will pave the way for long term business relation. Sales closing may be relatively faster for those suppliers, who have satisfied the buying team earlier. Follow up, feedback and replanning should be more on finding out how to satisfy the known customers, dealers more. Since the vendor is already in, the supplying firm has a better chance to stay in provided the buyers are well looked after. Professional sales persons have a major role to play, since long term customer relationship building needs to be the central focus via the front line contact personnel (sales and service people). Developmental selling Developmental selling is focussed on converting new major prospects, distributors and dealers to the level of customers, who buy and use a particular firms products and services, if possible and needed, on a regular basis. Development of new retailing centres will also be covered in this specific area of new market expansion techniques. In many proactive organizations, coordination between sales and new product developmental cell is expected to come out with new or modified products, as well as services targetted at both existing customers and new important prospects.

Example: In 1978-79, there was a major propensity of large oil manufacturing and marketing firms to pack, store and distribute their lubricants in one litre, or even smaller high-density polyethylene pouches. At that point of time, it was a major change from the earlier practice of using only five litre jerrycans, which were manufactured in bulk by the then number-1 container manufacturer in India ie. Metal Box India Ltd. (MBIL). However, their top management refused to accede to the winds of change for coming out with much cheaper, smaller HDPE (smaller) plastic containers, which were much lighter, easier to handle and cheaper to transport. Due to this unfortunate reluctance and mental rigidity, MBIL invited competition from much smaller plastic jerrycan manufacturers, who could produce these cans at much lower prices and, therefore, more preferred by the major oil giants. Ultimate buyers too benefited.

Another example: At one point of time, during end 70s, MBILs No-1 factory at Hide Road, Kolkata, had stopped manufacturing tin-based, cylindrical battery jackets for large firms like Eveready, a division of the then Union Carbide (I) Ltd. At a later stage, to ensure capacity utilization, MBILs Business Development Manager (BDM) studied, internally, capacity utilization of available and relatively unutilized machinery like the one for tin battery jackets. In consultation with internal technical experts, it was surmised that similar cylindrical jackets with minor modifications could be made in this very expensive practically unutilized machine line. Based on quick internal brainstorming sessions, which were followed by Dip stick studies, it came to light that Zarda packages needed much better tin-containers, which were pilferproof by design. After a relatively long period of internal product design and planning, MBILs product development wing, in consultation with their BDM, developed very attractive, pilferproof, cylindrical tin containers for packing, storing and transporting expensive brands of Zarda. This is a typical example of developmental selling, which ensured much higher existing capacity optimization, as well as open up new market avenues. However, this type of activity is bound to be of a fairly long duration, which has to be handled by a back-up, product cum sales development team.
Developmental selling, therefore, needs sales personnel, who are educated and trained to be patient, persevere and have an open mind, starting with understanding prospective users needs and wants. Focus, for this type of exercise, can be on both existing customers for new need satisfaction, as well as for identifying new prospects with new needs, which can be satisfied, profitably, by a firm like MBIL. PLC: For new prospects, the entire process will be completely different. Similarly for launch of new products and services, the Product Life Concept (PLC) will be relevant, from the stage of launching (introduction) to growth, (sometimes rapid) to maturity and often to decline. The effective sales person needs to realize that for both launch of a new product/service as well as for developmental selling, where prospects are expected to be converted to customers, the relative impact of personal selling will be based on the above mentioned PLC curve. The stages are as follows: Introduction During the introduction stage ie where prospecting and lead generation have identified possible new buyers/segments, awareness about the vendor company, the present product/service mix as well as their existing sales persons may be quite low, if not nil. Hence, during this stage, alongwith the new product launch, a concept testing exercise needs to be organized to assess the initial response of prospective buyers.

Hence, in this phase, the sales persons need to be much-more cautious, patient and believe in perseverance. Initial rejection of the product/service may be quite high, leading to possible frustration, boredom and even acute annoyance. Unless a specific developmental type of sales personality is put on the job here, there is a high possibility that the hard hitting sales type may even resign from the company in large numbers. Along with low volume of production, systematic and planned market entry should be designed and implemented by an effective sales management team, whose performance should be judged more on the long term rather than with short term given targets. Regular monitoring and feedback of the concerned markets reaction to this new product/service launch needs to be considered between the sales and the product development team of the vendor company. Often enough, during this phase, expenses on new product development, test marketing, as well as related promotional / personal selling expenses may even exceed initial sales revenue!! This aspect needs to be kept in mind by both the vendor companys management, as well as the direct sales management team. Growth: Depending on target segments requirements, after the initial product introduction, once awareness may have been converted to interest to comparative internal evaluation, leading onto product trial, sudden growth in sales (product value and volume) is quite possible. During this phase, revenue generation needs to be emphasized. Hence, both production and sales management functions need to be coordinated by a manager, who has to be accountable for optimum profitability during this stage. Depending on the product / service type, product quality, prices, type of direct, indirect distribution, or a mix need to be pre fixed. For example, for a consumer item, the sales management team (SMT) will have to coordinate intensively alongwith distribution agencies to ensure regular availability of acceptable product/service at pre defined prices and credit terms. Companies like Coca Cola, Pepsi etc bank on indirect distribution, sometimes through their own transportation fleet. On the other hand, for an industrial item and/or service, role of direct distribution and personal selling becomes much more important, since direct buyer contacts, both for prospect and existing customer, becomes a vital issue. In brief, the sales management team (SMT) will have to be given specific achievable and quantifiable business targets within pre determined sales & distribution expenses. In this phase, the emphasis will be on profit optimization, which may not be always possible in a later stage when other new product introduction, newer competitors, or a combination will be quite available. Hence, besides the other promotools, the role of personal selling will be primarily on hard hitting sales approach to push more of the product/service to existing customers, dealers. Simultaneously, stress will be on faster conversion of prospects to buyers. Hence, speed is of essence, rather than a long term developmental approach. Hence, any sales management needs to educate their sales personnel accordingly, who need to be suitably trained on and off the job.

Stage of maturity: Due to technological innovation, changing needs and wants of customers and prospects, as well as for dealers, entry of other new competitors with more effective product/service mix eg the individual sales volume, value and growth rate of a particular marketing company may either be stagnant, or at least the growth rate may start falling. The sales management team has a number of roles to play during this phase, based on pre-determined sales objectives. These are as follows:(a) (b) Maintain regular contacts and relationship with known customers and dealers and ensure that they take the maximum quantity from this vendor company. Fast conversion of prospects to customers: same principle is applicable for indirect distribution channel members, as well as new offers for adding onto list of dealers, wholesalers etc.

Simultaneous with the above, the team will have to gather all relevant information on competitive products as well as for substitutes. These information need to be conveyed to their internal business / product development team, who will be motivated to come out with similar/better product offerings to combat competition. (new product, service development: Cell 2, Igor Ansoffs model) In this phase, therefore, the team will again have a dual role of maintenance selling, as well as needed coordination to promote internal new product / service development, which alone can stem the fall in rate of business growth, leading onto rejuvenation. Once again, training is a must to help in development of a suitable positive mentality of the sales team. In many large and progressive firms, the sales team is expected to only adhere to the following, ie: (i) (ii) (iii) (iv) (v) Service existing customers and try to increase their product offtake. Try to convert new prospects as fast as possible to customers. Try to increase rates of consumption. Open up new outlets to penetrate new user segments. Maintain only those products and services, which contribute over and above known direct variable expenses. Concept is to maintain a cost effective product / service mix (width, depth, consistency). However, complementary items (say sugar with tea, coffee) may have to be maintained to ensure regular sales of the total system.

All developmental aspects, which are long term in nature, should be given to a specific business developmental team, whose targets are also long term. For example, in Union Carbide India Ltd in middle 60s, for their Chemicals & Plastics Division, the above mentioned concept functioned very well, although initial sales & distribution expenses were comparatively more. A similar concept is followed by other enlightened organizations in India and abroad (eg ITC in India). It is quite clear that the type of sales personality needed for obtaining short term sales and long term business development, needs to be quite different. However, in real life, this aspect is hardly appreciated by not so effective Managements, which are usually bent more on short term sales value, volume and profit optimization. In this process, many long term business developmental possibilities are ignored. This short term myopic approach inevitably results in decline of the firms sales and business profitability, over a period of time.

Stage of decline Needs change over time, due to macro and micro environmental factors as well as new technologies. Future wants of buyers, users, over a time period, later become the future needs. Buyers tastes, preferences and expectations too change over time. Competitors or substitute suppliers may have a field day if they comply better with customers requirements. If a particular vendor refuses to appreciate changing need patterns, their sales turnover and profits are bound to fall, giving way to more cost effective product service offers. Numerous examples can be cited. For the time being, two typical examples only will be offered.

Example: In North America, long back, horse driven carriages were used to transport passengers from one place to another. Over time, with advanced technological innovations, railways, automobiles, ships and later aircraft came in to offer faster transportation, more convenient, comfortable and at affordable prices. Any amount of hard selling only helped to draw in particular types and classes of customers with specific need types. Sales value and volume fell. However, short term selling processes need to be tempered, or even totally revamped in line with targeted buyers needs. This transportation agency ultimately closed down, due to its myopic thought process so prevalent in many organizations in India also. Another example: One of the largest packaging manufacturers in India (international firm) used to sell very large number of five litre tin containers to Oil firms for latters lubricant packaging and selling. In late 70s, different sizes of HDPE (high density polyethylene) containers became very popular. Surprisingly, this one time market leader took its time to switch over from large volume production to a new orientation to batch type, tailored production runs. By the time the switch over took place, other jerrycan manufacturers of plastic containers had firmly established themselves and taken out lions market share. This MNC (multi national corporation), for this and similar other production oriented moves, lost market credibility, market share. Ultimately their myopic thinking influenced customers in the negative direction. This one time market leader was forced to down its shutters eventually in India in middle 80s. The above exhibits are meant to bring to light that any amount of hard selling approach alone is insufficient to stop buyers changing needs and expectations. Effective sales management has to coordinate with marketing department to ensure both short term gains, as well as long term business prospects.

CASE STUDY

CONSUMER PESISHABLE AND NON DURABLE ITEMS XYZs new General Sales Manager Mr Vikram Tandon (VT), a highly experienced sales person with more than a decades experience of selling consumer non durable items in two other companies (Both multi nationals), had joined M/s XYZ (P) Ltd about two years back. Mr Tandon is a perturbed professional. Besides his new organisational climate, which is quite traditional and conservative, the companys annual sales turnover, and even profitability had been low by prevailing standards. For example, he knew that the market leader M/s Hindustan Lever Ltds (HLL) annual turnover in 1991-92 had been :Sr Nos 1. Product lines Soaps (Lifebouy and other product lines/ items) Detergents (Surf and other product lines) Misc. Total = Annual turnover (Rs crores) 700

2. 3.

700 600 2,000

Against the above, their own turnover had been only Rs.73 crores, out of which edible oils (Vansapati) had accounted for Rs 50 crores ! In other words, Soaps and Detergents had contributed to only Rs 23 crores !! That too in a market, where large Indian companies (Godrej, Tatas etc) were officially joining hands with P & G, Lever, Henkel of Germany to name a few. There was a rumour in the air that another large East based Indian company, whose annual turnover is Rs.120 crores now (soaps, detergents and toiletries) are actively looking for joining hands with compatible foreign collaborators, who have a strong Technical and financial base, besides having well known brand names. In short, mergers, acquisitions, foreign collaboration etc. are all being used as strategic options by concerned top managements of several Indian companies to reach laid-down objectives of factors like :i) ii) iii) iv) etc. Market shares, Annual sales turnover, Market and brand leadership, Profitability

Obviously, to estimate and work out the above, Mr.Tandon knew, as a seasoned professional, that the following information and data base are critical :-

SWOT base : Internal data (strength and weakness assessment) :Mr. Tandon has to make himself fully aware about aspects like :Production capacity and constraints, if any, Level of technology available and its impact on achievable product quality, packaging quality etc. Financial Strengths, Human Strengths and weaknesses.

Above all, depending on the organizational Culture, the top managements Thinking pattern, level of professionalism and long-term goals will have to be qualitatively judged so asto work-out both short-term objectives and strategies to achieve these aims. Often enough, in slow and calculated stages, needed organizational changes (Mr.Tandon knew that few basic thinking patterns MUST change) have to be brought in to ensure that :Sales personnel become more trained and efficient, Rest of the organization gives full support to the sales people, who interact with the outside world and bring in much-needed revenues.

External data (Opportunity and threats assessment) :In addition to routine servicing of both institutional buyers, as well as distribution channel members (wholesalers, dealers-cum-retailers), Mr. Tandon intuitively felt that full and timely knowledge about at least major competitors and their Moves will be needed. In short, a marketing information system (M.I.S.) needs to be developed starting from relevant data collection gathered, to start with, from sales persons visit reports. This, however, will only be the first, halting step of a professional marketer. To sum-up, the major contributor to the companys offers (Rs.50 crores) is still not posing a major marketing problem, although competitors are in full swing. In any case, the top management (For their own reasons) directly controls the concerned* field staff, who operate only in the Eastern region and partly in U.P. (vansapati product line). Mr. Tandon had been recently asking himself specific market-related questions concerned with the survival and growth of :i) ii) Soaps and Detergents, Plans for future related growth in areas like toiletries etc. This area, Mr.Tandon felt, should also be thought of to combat firms like :o o o o o Shaw Wallace, H.L.L., Wipro, Godref P & G combine, Henkel (from Germany) etc.

As in 1996 : This type of Channel Management is still prevalent in many Indian Managements.

Mr. Tandon worried (for soaps and detergents only : non-durable consumer items) Conceptually, Mr. Tandon felt that the steps should be as follows :1. Based on SWOT analysis, decide on : Goals and then specific short-term objectives, Work out a broad sales strategy, provided information are available so asto enable him organize the following :(a) Decide on which markets he wants to serve (both geographically, as well as from the end-users points-of-view), (b) Which target segments should be aimed at ? (c) How to carry-out product positioning ? For example, should he plan for : Mass marketing or Concentrated marketing or Niche marketing.

(for example, stress specific advantages to defined end-users). 2. Based on defined sales objectives, organize :2.1 Area-wise, product-wise targets (annual, half yearly, quarterly and even monthly), 2.2 Area-wise, product-wise individual targets for defined periods, 2.3 To enable reach targets, work-out : Daily call norms, Reporting and its frequency (reporting formats)

2.4 Simultaneous with 2,3, check whether areas demand and potential are matched by number of adequately trained sales personnel. (note: should he use the work-load method here ?) Note: Work-load method : Areas of equal work-load (demand and potential, as well as competition) need to be designed, prior to allocation. 3. At head office, Mr.Tandon knew very well that basic staff functions like the following have to be organized :3.1 Plan for needed promotional inputs via :-

 Advertising, Publicity and Sales promotion. (including merchandising) 3.2 Both specific promotional budgets and their allocation over different productlines and territories for defined time-periods, need to be worked out for which a rationale basis and a grand programme must first be thought of. 3.3 Staffing :Planned selection, recruitment and training will have to be organized to ensure that: Available sales personnel are regularly trained, A second line of defence is built to take care of resignations, retirements and other causes.

3.4 In addition, there should be a central team, who will report to Mr.Tandon and organize regularly : Periodic market surveys (directly or via neutral agencies like the Core Group / any other recognized agency). Organize intelligence collection to combat pre-emptive strikes/new launches by well-known competitors.

Simultaneously, every year, based on scientific methods of forecasting (least square, moving averages, trend analysis, market surveys, assessment of published data, competitive studies etc.) this team, under Mr.Tandon, has to prepare :Annual business plans, (for each area and each product line) Budgets.

Finally, Mr.Tandon was very well aware that while changes are needed, overnight changes can not be done. Hence, questions bothering him were :Should he first organize a detailed, professional marketing research ? Or Should he first assess the companys capabilities and managements willingness for changes or Should he first organize for detailed job descriptions for his existing sales personnel so that: Clear-cut authority and responsibility patterns are worked out for : ASM (S), TSM Supervisers, Sales officers and Pyramid method of decision-making (?) Work out an attractive incentive package for his sales staff,

Prepare detailed dealer training and motivational programmes, since dealers are the key stones to selling and distribution of consumer perishable and non-durable items (also for durable items).

Mr. Tandon knew that all the above are important. However, it is not physically possible to do everything at the same time.

The disturbing questions bothering him are :Where should Mr.V.Tandon start ? What specifically (you think) he should do ? How ? When ? Through whom ? At what cost and time ?

For discussions : Groups jobs : 1. 2. (separate groups)

Deliberate separately, using Case method of analysis, Verbally present your Groups Case, using transparencies, use :o o o Logic, Common sense, New concepts learnt in the programme (hopefully !)

Keys :

ASM TSM

: :

Area Sales Managers Territory Sales Managers.

ANNEXURE-I Background :M/s. XYZ Ltd. is a consumer non-durable products manufacturing company. It has three product lines:a) b) c) Edible oils, Detergents, Laundry Soaps.

The companys annual turnover in 1992-93 was Rs.73 crores, of which Rs.50 crores was generated from edible oils (vanaspati). XYZ faced negative growth rates in the year 1989-90, 1990-91 and 1991-92. The growth rates partially improved in 1992-93 and they were currently expecting the sales to be 20% in excess of their annual target in 1993-94. In the past, the management of XYZ was traditional and conservative. With the passage of time and with increasing competition in the market, the managements outlook is becoming more professional and modern. However, they were still reactive and not proactive. Product line :(a) Edible oils :Prasad vanaspati in tins are being sold. Vanaspati in 1 kilogram and one and half kilogram pouches are also being sold. Prasad is a premium brand. Detergents :There are two types of detergents being manufactured by XYZ Ltd. :(i) (ii) Detergent (synthetic), Detergents (solid).

(b)

In the category of detergents (synthetic), the brand names are Gnat (sold in 2 kg, 1 kg, 500 gms, 400 gms pouches and to be relaunched and sold in 1 kg and 500 gms pouches). Shot (recently relaunched and sold in 1 kg and 500 gms. pouches). Moreover, Gnat Thunder is to be relaunched very soon as a premium product. Spark (cake) is a detergent (solid) and sold in packs of 125 gms. and 250 gms. c) Soaps (laundry) :Here the brand is Nirmal, sold in Bars of 200 and 250 gms. Cakes of 150 gms. and cubes of 2 gms. In addition to the product lines, XYZ Ltd. is planning to enter into toiletries in the future. For this, they may also consider foreign collaboration.

Prices :The retailers rates for XYZs products and the maximum retail prices (to end-users) are given below:TABLE-1 Unit : Rs./pack Sr.Nos . 1. 2. 3. 4. 5. 6. Products/brands M I G SHOT NIRMAL (BAR) NIRMAL (CAKE) NIRMAL (CUBE) PRASAD Retailers rates (Rs.) 14.30 12.60 4.40 2.90 2.15 43.90 Maximum retail price (Rs.) 16.00 14.00 5.00 3.20 4.00 44.00

As on 1992-93 period Distribution channels :The channels of distributions of XYZ Ltd. are :a) b) Manufacturer Manufacturer Wholesaler Retailer Consumer.

Institutional buyers (Direct)

Concentration is given to the first type channel. The percentage of products distributed by the dealers and to institutional buyers, is as follows :Products Vanaspati (Tin & Pouch) Detergents Soaps (Laundry) Dealers 85% Institutional buyers 15%

100% 90%

10%

XYZ also sells its products through its own sales force. It undertakes market research by their own sales personnel to assess the demand/potential of their products from dealers. (Question: Can it be done by their own sales personnel ?)

The basis of territory coverage vis--vis demand and potential are :a) b) Availability of manpower, Man-days depending on the potential of the market.

There are no regular incentive plans for sales personnel for fulfilling their targets. At infrequent intervals, monetary incentives are given although no clear rationale was available. Promotional inputs :The promotional inputs of XYZ are through :a) b) Advertising and publicity, Sales promotion.

The budget for the promotional inputs of XYZ are (for 1993-94) :i) Advertising (Newspapers, bill boards, magazines etc.) and publicity Sales promotion (customers, dealers and wholesalers) Rs. 1 crore (approx.)

ii)

Rs. 1 crore

Available competitive information :-

XYZs products vis--vis the competitive products are given below :TABLE 2 SR.NOS. 1. 2. 3. 4. 5. XYZS PRODUCTS PRASAD GNAT MIG SHOT NIRMAL (LAUNDRY SOAP) COMPETITIVE PRODUCTS Dalda of HLL and Gagan of Amrit Vanaspati. Surf of HLL DET of Swastik House Sunlight of HLL Nirma, Wheel of HLL O.K. of Tata Sunlight of HLL and 501 of Tata.

HLL is spending Rs. 100 crores on advertising of their products. P&G spends Rs. 75 crores while Nirma hs a budget of Rs. 50 crores !

Self evaluation of relevant products by XYZs Management TABLE 3 XYSS PRODUCTS XYZS (SELF WEIGHTAGES) COMPETITORS POSITIONS

(5 1 SCALE) (5 1 SCALE) VANASPATI GNAT MIG SHOT 5 4 5 4 4 Dalda HLL 5 Surf HLL 4 Sunlight 2 Nirma 5 O.K. of Tata NIRMAL 5 5 501 Tata

Basis : Unknown (highly subjective evaluation) Keys :

5 4 3 2 1 = = = = = Excellent, Very good, Good, So-so, Not acceptable.

Markets for XYZs products :The market coverage of XYZs products are :Regions Eastern India and North-Eastern India States U.P., Bihar, Orissa, West Bengal, Assam, Meghalaya, Manipur and Tripura.

Sales personnel of M/s. XYZ (P) Ltd. :Sales personnel / coverage of a particular area/state.

West Bengal

South Bengal (i) South Bengal (ii) North Bengal Greater Kolkata and Kolkata Metro

Kolkata Head Quarters

II III

Siliguri Head Quarter. Kolkata Head Quarter

No. of sales personnel :1. South Bengal (i) & (ii) 1 1 3 1 1 2 1 1 1 5 6 Area Sales Manager, Territory Sales Manager, Sales Officers. Territory Sales Manager (TSM) Sales Officer, Sales representatives. Area Sales Manager, Territory Sales Manager, Supervisor, Sales Officers, Sales representatives

2.

North Bengal

3.

Greater Kolkata & Kolkata Metro

Types of jobs :It appeared to the case researcher that no clear job descriptions were available, which delineated the authority and responsibilities of :a) b) c) d) e) Area Sales Manager (ASM), Territory Sales Manager (TSM), Sales Supervisors, Sales Officers, Sales representatives.

The lack of clear job description, it was felt, led to confusion, treading on each others toes and considerable over-lapping this leading onto sub-optimization of available human resource. Present area coverage by XYZs sales personnel :(Kolkata and Greater Kolkata) 1. Baitakkhana :o o o o o 2. Baitakkhana, Rajabazar Betro Chatterjee Street, M.S.Market, Surya Sen Street,

Bhowanipur :-

o o o o 3.

Jadu Babur Bazar : Main market, Kalighat, Lansdowne, D.C.Road.

Kidderpore :o o o o Orphenganj, Kali Babu, Garden Reach, Babu Bazar.

4.

Kankurgachi :o o o o o o o Kankurgachi, Phoot Bagan, Bagmari, Ultadanga, Sastitala & Narkeldanga, Bengal Chemical, C.I.T. Market and Gora Mandir.

5.

Monoharpukur :o o o o Lake Market, Chetla Market, Gariahat Market, Lake Gardens.

6.

Baghajatin :o o o o o o Phool Bagan, Tollygunge to New Alipore, Park Circus and Beck Bagan, Ananda Palit, Beniapukur, Baghatain & Bijoygarn.

Present norms of sales calls (only available data) 1. 2. A sales officer covers 3 7 towns. Basis for coverage was not clear. In greater Kolkata, on a daily average, a sales officer / salesman called on 35 retailers !! Sometimes, the daily call norm fluctuated between 32-35 per person !! (could good work be done for this large number of calls ?) However, to this case writer, it was not clear whether all the sales personnel at all levels, followed the above same call norm. Basis for setting it was not clear. Neither was it clear asto who handled the muchneeded administrative responsibilities and when ? Logical basis, if any, for defining norms, was not available.

Finally, no information was available on :Frequency of reporting by sales personnel, Reporting formats, Plans for recruitment, selection and training, Actions taken (if at all) on field reports by field personnel, Systematic calls for M.I.S. and marketing research (At H.O.), Basis for Annual Business Plans (ABPs) and budgeting.

ANNEXURE II Macro level usages (soaps and detergents) From desk research, it had been found that soaps and detergents were classified and further sub-classified, application and end-user wise. It has been found in common, that generally the market for soaps and detergents have been segmented / classified in following application and end-user wise :A) A.1 Soaps (classified) : bar/cream/chips/granulated/liquid/perfume/ toilet/cake/synthetic/flaked/vegetable or other oil based. Hand cleaners, Body cleaners, Face cleaner, Disinfectant, Laundry Soaps.

A.2

Soaps (applications)

A.3

Soaps have been further sub-divided in following end-user wise categories : Infants and babies, Teenagers, Grown-up men and women.

A.4

The above age groups have been divided generally into following categories : Soft, Ultra-soft, Normal, Sensitive, Hyper sensitive, Ultra sensitive.

B)

Similarly :1.1 Detergents (classified) Detergents (applications) : Powder Liquid, Fabric softener Water wash (further sub-divided) Cold Hot Humid. Dishwashing, Floor cleaner, Tile cleaner, Laundry, Softner,

1.2

Kitchen, Glass, Toilet cleaner, Metal cleaner, cars Oven cleaners, etc.

End case questions

For improving sales value, market share, growth and gross profitability of soaps and detergents for M/s.XYZ Ltd., all readers are requested to study each of the following questions and give their specific feedback and concept-backed answers: 1. Mr. V.Tandon, General Sales Manager needs to start somewhere. In your perspective, what should be do, how, when, through whom and at what cost and time? In short, what should be his plan for implementation? 2. Debate and discuss whether marketing research is at all necessary? If your answer is yes, why is it so? Please be specific. 3. If at all research is needed, what data base (specific information bits: SIBs) should be generated and why? What do you think will be the sources of information of what data? Specify. After the data have been generated, after needed processing, how should Mr. V.Tandon, General Sales Manager, use these for his sales-related problem solving? Work out a detailed sales plan, showing clearly the process of selling. Please be specific.

Sessions: 3,4
Introduction: Sales organisation is a critical managerial responsibility for all professional executives in the sales profession. Depending on the type of sales job, the relative importance of the following seven variables will vary ie: Variable-1: Variable-2: Assignment of sales personnel, which is sales job specific. Second variable is the relevant sales personnel profile vis--vis the type of selling. Time and territory management Sales training and need for developing relevant manpower. Effective time management of all field sales personnel in so far as the following are concerned: Administrative aspects like sales planning, forecasting, budgetting, report writing and ensuring timely feedback of all market related information Travelling time, Waiting time, Most important of all, time for interactions with customers, prospects and dealers.

Variable-3: Variable-4: Variable-5:

Variable-6:

Optimisation of selling efforts in a branch level operation. This calls for cohesive internal functioning as suggested by the concept of Super ordinate Goal. A major deterrent is the working together of different personality types with different sets of aims, which often lead to internal conflicts. Conflict management, therefore, leads onto usage of different techniques of problem solving so asto reach pre-decided targets.

Variable-7:

Designing an attractive compensation package. This will depend on the type of product or service, level of competition at a point of time, the organisations own culture and need, if any, for direct incentives to induce achievement of sales and gross profitability within pre decided selling and distribution parameters. This can be: Direct salary Commission structure related to sales, gross profits A combination of the above.

In addition to all the above, pre-planned back up support has also to be organised, as follows: Regular back up promotional and distribution support

Depending on the product-service types, separate team for development may have to be stationed either at head office or regional centres for servicing long term business prospects, develop new markets, go in for new product developments or optimise available human resources.

Objective is to free the full time sales people to service regular buyers, users and dealers and concentrate on short term gains for speedy revenue generation. This is based on the concept advocated by Igor Ansoff in his product-market mix module. Few relevant concepts related to effective sales management: Prof A Chandlers well known dictum structure should follow strategy aims at: Organizational structuring for senior, middle and operational levels, based on defined strategic approaches, Management levels and job responsibilities as per the pyramid structures presented below:-

Operational levels: Any sales person, while starting his/her career, has following types of functional connotation Start-up of career
Minimum emphasis Human Resource Management (HRM) Administrative functions

Low emphasis Maximum emphasis

Functional aspects (operational)

Pyramidal structure After considerable experience, this pyramidal structure is reversed, as follows, as a former trainee grows and goes up the ladder:

HRM

Maximum emphasis on man management aspects

Adminis-trative

Medium emphasis

Opera-tional

Minimum emphasis

Explanation With increasing experience, a sales person is expected to shoulder more responsibilities. Technically, with increase in types of work, as well as overall workload, both work allocation, handling and delegation should come into play. PROBLEM is often it does not! While starting ones career, the sales trainee has mainly to contend with his or her own sales work. A miniscular part of his time, energy and concentration will be given for administrative work and very little for other human resource involvement. Conversely, over time, more and more time should be invested for HRM, followed by administrative work and much lesser on actual functional aspects like down to earth field level sales organization, control and still lesser on direct selling, except to handle major assignments, where his/her unique specialization may be called for. Interestingly, in real life, an efficient sales person, who may have Come up the rank and enjoyed actual field level sales, will like to sell personally and directly, even when he/she may have been elevated upwards at the hierarchical level(s). Deep down, based on psychological considerations, Going back to mothers womb is a natural human phenomenon. To enlighten any sales executive about his / her job authority and responsibilities, on and off the job training needs to be planned for and regularly implemented for new knowledge internalization and greater appreciation of a sales persons elevated status. Dr P Druckers pioneering research work in this and other fields, which culminated in publishing internationally famous books like The Effective Executive, proved that top management personnel even at the Chair Persons, Managing Directors levels were comfortable with the specific jobs, which they were performing earlier, before their promotion. For example, a highly successful Vice President (marketing) after being promoted to, say the Director level, was observed to be more comfortable with his earlier proved competence areas eg as a top grade marketer. This caused multiple problems like: Present Vice President (marketing) tended to be side tracked, sometimes quite unceremoniously. This created avoidable tensions.

New Director will not be doing his new job and the jobs defined responsibilities, which will inevitably suffer. Finally, the final customers will be confused whom to deal with and who has the real decision making authority.

Sales organization, therefore, is a very crucial management issue, within and outside the selling firm, even with its indirect distribution-channel members. An example: In late 80s, in Mumbai city, a leading manufacturer of lighting systems (like Putty: a part of lighting system) used to sell to its customers both directly, as well as via local dealers. Just to give one instance, when a large prospective party floated an enquiry for Rs.10 lakhs for Putty, the chief purchase manager received four quotations, namely from: An offer directly from the manufacturer (quotation one) Dealer one from one part of the city gave quotation two for the same parts / products / packages. Dealer two (another part of the same city) gave quotation three. Dealer three (third part of Mumbai) gave the fourth quotation!

Due to lack of territory allocation (and segmental delegation), any dealer from any part of the city, as well as the manufacturer (in direct competition with its own dealers) could chip in and compete offering different prices and even financial terms, another ill conceived open area, thereby confusing the final prospective buyer, user totally ! The same confused principle was practised in a well known organization dealing with tele communication devices (Pagers).

Key: HRM: Human Resource Management The dealer(s) offered competitive prices, cutting into their own commission structures. This poor strategic move by the manufacturer, a part of which was dysfunctional organization structuring, resulted into high personnel turnover [this example has been used in a later case of Kerala Leather Works]. Lack of internal control mechanism influenced this fiasco and ultimate breakdown of the sales structure. In this instance, as practised even in late 2001 by many marketing firms, this order for Putty, was not awarded to this highly disorganized putty manufacturer, since the prospective buyer lost confidence in the management of the manufacturer. Second example For a large scale pager marketer, the same principle held good. All sales personnel were expected to sell to all prospects all over the city! The same concept was applicable for all of its six dealers. Territory demarcation, sales person and dealer wise, was actively discouraged even in late 2001! The concept was that in a Free for all market economy, everybody will be Forced to give his or her best just to survive. The natural result was high level of turnover of sales personnel, who were highly demotivated under tremendous sales pressure. Modern sales management concepts were literally non existent and

even actively discouraged by senior sales managers, who only believed in high pressure selling, whether a need existed or not. Influence of an organisation and its culture on selling strategy Research had been carried out on organizational influence (and its present size, culture of top management) on degree of centralization of authority (DOC) for purchase decision making. For example, Dr Yoram Wind, in his unpublished Ph D dissertation in 1966 from Stanford University had statistically validated a buying firms existing organizational philosophy and influence on prevailing top management for a supplier, and even a model, choice. Later researchers too had strengthened this hypothesis further. No scientific studies had yet been carried out on the relative importance, and the impact, of a selling firms managerial culture on formulation of a selling strategy and other very important tactical issues like, to mention a few: Recruitment, selection, training of sales personnel, Motivation of sales people, Their compensation patterns, Methods of planning, organizing, controlling, directing and staffing, Very importantly, ensure the long term retention of these highly productive people, a major asset.

Example: Dr.PKG, during his doctoral research between 1973-77 in India, had observed a specific person, lets name him as Mr X, whose professional work ethics changed dramatically over a period of 4 years in three separate firms like: In a large Indian firm, Polychem Industries, a centralized organization, Mr X as a purchase officer behaved as a junior team member strictly controlled by central guidelines of the firms management. In Metal Box India Ltd, a mixed decentralized firm, at a slightly higher position (senior purchase officer in one factory) he had to take on additional responsibilities, backed by limited authority, to discharge his allotted job. He had much more Say in purchase decision making. Finally, in Union Carbide India Ltd, a decentralized American firm, Mr X, now as a purchase manager, had a lot of Freedom to carry out his function, for which he was fully accountable. Here, he had become a very involved and dedicated professional, who went all out for his company. He had become very profit conscious now unlike in two previous jobs, where he was treated as a glorified clerk only. An organizations style of operation is considerably influenced by its top managements thinking patterns, overall work culture, firm size versus complexity in decision making. Types of people, concerned with fixation of policies and work related guidelines, are considerably influenced by their pre conceived notions, beliefs and attitudes. Top managements backgrounds also count in so far as level of education, experience (as a whole and also specialized) personality traits are concerned (risk taking or risk averse attitude; gregarious or

introverted; rigid or flexible mentality etc). Both rational and non rational issues are taken into consideration for, to cite few examples: Few firms even now shy away from appointing female sales and service personnel for outdoor jobs. As a Consultant, this author had come across firms, which insist on specific, so called decent dress codes even for their managerial level employees, not to mention for ladies!! Strict time management, especially for, say, attending office at 9 AM is maintained, a good office practice by administration. Actual time utilization from 9 AM to 5 PM is not monitored so vehemently! Even now, few firms sales teams are guided by central directives, which consider front line sales personnel as whipping boys and mere order takers even for developmental jobs. Low motivation results into high personnel turnover. Few firms management only believe in extremely high pressure selling, preceded by daily abuses, shouting and instilling the fear of God amongst front level operational personnel, who leave the company at the first available opportunity. Quite a few firms, very unfortunately, are swayed by personal consideration during selection of new employees. For example, halo effect is frequently taken into account to choose people with similar mentality and backgrounds as those of the selectors!

Checklist: Dos and donts

Broad guidelines for any

sales organization Any organization, which is manufacturing, marketing, selling or even trading any product, service or both needs to ask itself few basic questions, which are both conceptual as well as industry specific. Conceptually, the firms management needs to ask themselves on conceptual issues like the following: What business are we currently in? What business do we want to be in? What are our own Strengths and weaknesses? After assessing our own product service categorization, first define : Who are our current customers both direct as well as indirect? What are our existing? Marketing strategy Marketing mix Marketing organization. Are we providing, in our organization, an optimal mix of Hygiene and non hygiene factors? For example, aspects like the following should be internally investigated : * * Organizational culture ie degree of authority centralization Is the organization performance oriented or otherwise? What is Otherwise? In other words, what are the factors leading onto, say, promotion, increments and job enrichment? Are adequate motivation and incentives (monetory, otherwise) built in, in the existing system ?

Before other specific issues are highlighted (please see below), the basic organization related issue is whether its management is providing a stable, safe and proactive work environment to its employees, where they can work in a Happy frame of mind. Otherwise, any stressed out sales person will start looking for a change before he/she can settle down and carry out the allotted responsibilities. Specific issues: Step one Which buyer-user parties to approach and how? (Segmentation to targetting) List all available data and prepare a master list of names and addresses, telephone numbers in a prescribed format.[continuous, weekly updating may be needed] Step two Number of weekly calls will depend on both: * * Objectives to be achieved & Available resources

Start with known customers, who may have used firms services/products plus plan (weekly). Maintenance selling & own confidence building (build on strength) should be focussed on known customers, dealers etc. Step three Use referrals from existing customers and basic segmenting variables like: * Size & type of prospective prospect firm may be a big issue ie purchasing power and attitude. * Location of decision making unit (DMU) members. * Past history, if any, with sellers product/services (or even from a competitor) * Is the firm progressive? (ie ISO 9000/14000 etc will mean, for example, that management training is a must, besides many other formalities) Above needs to be organized regularly for carrying out prospecting & lead generation. Plan is to use questionnaire as an instrument to collect relevant data on prospects. Step four How has the sales call been organized? Complete product/service knowledge about: * The selling firm (your company) * Product/service and their Uniqueness (if any) * Back up (organizational) details & quote success stories Plus: Learn how to sell effectively? [sell yourself first] Aim: Be prepared with all relevant information.

The concept is how to handle objections? (list a format of probable objections) Prove firms credibility via its past history. Step five To decide on: *Whether to fix an appointment and then go? Question is: will it work for all cold calls? Identify and then meet/talk with the concerned and relevant individuals for information ie DMU in the prospects firms. Plan sales presentation. Issue is at which level of awareness is the firm (and their DMUs) now in from buyers perspectives? Then to plan the sales presentation. Step six Series of presentations may be needed depending on extent of technical, technological complexity of the product to be sold. First assess subjectively whether firm/dealer/individual is: * * * Then: Serious Not serious May be serious. plan your formal/informal presentations.

These are qualitative estimations. Target mainly the serious and may be serious categories. (you cant win them all !!) First level awareness is needed. Will advance mailers help in awareness generation? How about phone calls, e-mails, fax etc. in advance? Basic question Why will anyone be interested in your offering ie what additional cost benefits are being offered versus those from competition? How can your product-service package make a Difference in the user firms?

Step seven Now the time is ripe to close sales Have all relevant information been communicated on :P1 P2 P3 P4 Firms product/service package Its benefits to the buyer and user.(D.M.U.) All data on prices and commercial aspects. How the Product/service will be made available? How to ensure that prospect becomes a customer via? * Advertising * Publicity * Sales promotion & * Personal selling. * Suitable combination.

Sales people have to learn to say no for impossible demands. Be soft on people, but hard on decided options. Politely, but firmly, learn to Put your foot down and also ask for orders ie firm commitments, if possible in writing, with clear commercial Transaction terms. What about advance payment? How have information been communicated to prospects? A buyer user has first to be convinced about a suppliers ability to service adequately, prior to any purchase decision making. Step eight Do you record relevant market data? * * Regularly (how regularly?) In a format/any other way for use in your future decision making (how?) Follow up Build relation Feedback Replan [customer relationship management]. How often (once a week), do you all meet for internal brainstorming? (say, every Saturday second half)

Step nine Behind the curtain activities: Do you compare your? * * Weekly plan versus actual sales Weekly budget versus actual expenses.

Do you record/communicate about competitive aspects and data obtained? Do you believe in new learning leading onto your own increased productivity?

Also: Do you believe and actually work on developing/increasing knowledge related to your product/service package? [if not, will you like to start now ?]: Plan internal training programmes. Staff level activities: Need for regular planning: On the job guidance and counseling Practical training Sometimes even, if needed, hand holding exercises are needed for problem solving for all types of sales jobs.

Step ten How about weekly brainstorming sessions, say, for one hour? (a follow-up plan for needed short term modifications) One open minded chairperson is to facilitate. Modus operandi suggested is: i) All to sit together with an open mind [no criticism is allowed at all]. ii) Each person (5 minutes say 12 persons) to:* Highlight his/her goals * (personal/organizational) * State his/her objectives * State problems/constraints * State how you identified? - Alternatives - Used cost benefit approach and then came to a decision. Arrive at a plan for implementation (PFI) How did you go about for problem solving? * Need not be repeated every week must be situation specific.

- How have you contributed in: * Organization building through effective internal communication? * Motivation control guidance? * Identifying problems and suggesting practical solutions. Finally: Have you ever assessed your own sales call effectiveness Indicator (SCEI)? This is a measure of effectiveness.

Experiential learning can be shared to improve team building and group involvement. The above framework is only meant to provide basic guidelines. However, this is not either totally exhaustive or fully conclusive. Basic objective of this conceptual framework is to provide to the practitioners, as well as students of sales management a broad checklist of the needed issues, which need to be handled by operational sales personnel at all times. This process is similar, for example, to a list of activities, which have to be performed by any medical practitioner to identify and formulate problems (through a diagnostic procedure) prior to problem solving and offering specific suggestions, recommendations and a time based action plan.

Sessions-5,6 Optimum sales force utilization: Sales force management is the major key to ensure effective sales, distribution and thereby achieve higher planned sales turnover and gross profitability. Net profits can only be based on production and marketing cost optimization and administrative overhead sharing, product line-wise, or division wise. In this section, we will highlight how to get an optimum mileage from a given sales force, which may need to be modified and trained depending on micro and macro level variables. For this deliberation, we will assume that :Products are established and competition is intense or at least oligopolistic in nature, Market demand and potential have been estimated (if not guestimated depending on feedback from field sales force, macro level sources etc) and quantified. Will the available data be reliable, consistent, valid and substantial ? Should market needs be assessed periodically, both quantitatively and qualitatively, by neutral, unbiased specialized research agencies ? Can this be organized internally also, or more preferably, a mix of both the systems? These are basic issues, which need to be addressed. To the extent possible :* * * * * User segments are known, as also their geographical concentration (segmentation), Products and services are known, Competitive thrusts are reasonably known, Distribution channels are known, Promotional mix is known: Advertising & publicity : For consumer items, these will be more relevant for better reach. For all product/service categories.

Sales promotion/ : demonstrations/ direct mailing

Direct selling (personal):-

Trade channels Industrial products and services

Personal selling is more applicable for dealer management and/or directly for industrial products and services. In-firm coordination, planning also ensure a large percentage of senior sales officers, managers time, energy and attention. Both sales planning and target setting have been firmed up. (specific quotas are already fixed during the sales planning exercise).

Given the above known variables, a number of other factors need to be taken into account to ensure planned sales and market share realization via effective sales force organization, which has to be cost effective. Variable one: Assignment of sales personnel. Assignment of sales personnel to customers/territories can be job (Or even function) specific. For consultative selling (specialized selling organization: knowledge based) High specialized expertise and knowledge base, besides indepth experience demands that an user class or specific accounts, spread over large geographical terrains, be assigned to a pre specified group of relevant Consultants. For example, an industrial marketing research specialist may not be too comfortable with solving problems for firms, which deal mainly with consumer products and services. For technical selling, for similar types of assignments, technical personnel may be desirable, especially for items with high degree of technical components and knowledge requirement. Here, allocation of personnel may even be customer and/or prospect specific. However, for products with common or similar low technology inputs like nuts and bolts, pumps and motors, transformers etc., even geographical coverage can be thought of. For example, in Asansol area, for all relevant customers and prospects, for any standard industrial item and/or consumer durables, the entire area is looked after by a type of sales persons, who look after sales of all common product lines. This is an example from a large Indian organization. Commercial and direct selling both need low level of technical expertise. Hence, depending on areas size and market needs, geographical assignment of sales people can be thought of. For multi product marketing companies, however, a mix of the above may be called for. From the same firm, a division marketing tea and another division marketing torches and batteries may necessitate different sales teams for the same locations, since customers and their needs are totally different, as also the distribution and promotional basis for awareness and interest generation. An example: Before the 90s, Indian Oil Corporation Ltd. marketed directly their Servo brand of lubricants to bulk buyers. When Castrol reentered the Indian market, their major thrust was in penetrating in the bazar retail segment like any consumer product category. This jolted IOCLs Management to look into the bazar type of end user segment also. As proactive marketers, their Management re-organized their sales force management on two basic principles, namely: Reach the ultimate buyer, using the most cost effective channel of distribution and promotion. Entire organization should be marketing oriented and cost conscious, which is much easier said than done.

Variable two: Type of selling & relevant sales person profile [maintenance or developmental] In maintenance selling field, sales people have primarily to build long term relationship with customers, prospects and dealers retailers for existing and known product/service categories. Regular planned follow up, on the spot problem solving, coaching of junior field staff and, in general, keep the known market happy. Competition is usually expected to be heavy. Also, upto a point, new product launches, market feedback etc will form a part of their job.
Sr Nos 1 2 3 4. Types of sales jobs Organizational culture vs. Sales job type Geographical Party specific Target specific (market orientation benefits) Mix

Consultative Technical Commercial Direct

This type of job (maintenance selling) needs long term relation builders with emphasis on short-term pre defined gains, especially monetary in nature. On the other hand, developmental sales people are a different breed of sales type altogether. Besides specialized knowledge, experience and expertise, patience and perseverance, planned methodical efforts are the major hall marks of this category, who are more of change agents rather than direct sales personnel only. Sales traits, personality traits, performance evaluation measures and even types and number of prospects assigned to each category, should be totally different for maintenance and developmental sales functions. In many organizations, however, this important conceptual aspect is hardly taken into consideration. In typical sales oriented organizations, both existing customers, dealers, as well as new prospects are serviced by the same sales person. Latters natural inclination is to Build on strength and trod the path of least resistance by concentrating mainly on cash cows ie presently known customers and dealers, who give orders now. Focus is on the present, rather than on long term. An example: Most of consultative and few types of technical selling need long term developmental marketers, in built capacity to bear frustration and regular rejections needs to be high, since initial successes are usually very low. This authors personal experience as a Consultant has shown that getting an order may take even one full year!! The organization, therefore, needs to look after them well in terms of both monetary and non monetary benefits. Also, the targets to be achieved should be more on long term basis, rather than, say, monthly performance level, which will be applicable for commercial and direct sales personnel. Incentive standards need to be designed accordingly. Job specific sales personalities: Every type of job needs a different type of sales person. Traits of sales people need to be studied thoroughly before assigning them specific customer/prospect types.

Aggressive problem solvers, who are more of change agents, need to be assigned to take on long term challenge of market development. On the other hand, traditional and conservative sales persons can be used more for routine type of selling operations, which consist of: Prospecting and lead generation : Low emphasis Handling objections: Regular job Sales presentation: Must be planned well and timely. Closing sales: Very important function: get the order with clear commercial terms. Follow up Planned M.I.S. for data generation allocation interpretation and analysis, Feedback report writing, presentations get feedback and coordinate with other Recycle. In-house functions.

Unfortunately, in a given territory, there is always a mix of very tough die hard prospective buyers and users, who refuse to change their set buying behaviour quickly and the rest, who are regular buyers users and dealers. The same sales person(s) is assigned to service them without properly understanding the territorial mix. Result is that the sales person goes in for that buyer class, who are regulars and give present business. The segment to be developed is often overlooked or even sidetracked, since they do not contribute to regular and known business, especially in the short run. Sales mangers must understand first the type of territory, mix of customers prospects and virgin parties and then, depending on the mix, choose and assign the relevant sales type of personnel.

Cost benefit aspects: Product market mix

Existing customers New prospects

Existing products or services

Present sales Cell I Cell II (to be developed: conversion) Virgin market development. Very risky developmental territory Cell IV (may reap long term benefits)

New products or services

New product, service initiation (some resistance is bound to exist for change over) Cell III

: Salespersons major attention areas (mainly Cell I)

If in a region, if Cell-IV market (and its potential) appears to be substantial, relevant business developers should be assigned either exclusively (for large business prospects) or in combination with the other three cells. In the latter case, specific time and efforts should be allocated and utilised (as per plan) and not leave this segment to chance or an act of faith alone.

Variable three: time & territory management For a given product-mix and sales team, which may not be changeable or even modified too quickly within a short period, few Dos and donts need to be kept in mind: Dos and donts: Assess a given markets demand and potential, as also number and geographical spread of :Major customers / prospects Medium level of parties Small parties Virgin (yet to be tapped) prospects Dealers (sub division may be needed A category B category C category V category D. category

Internally, work out the past and present sales pattern (categorywise) over a time period to existing buyers and users. For developmental parties, business prospects need to be estimated qualitatively. Simultaneously, sales effort needed to be invested has also to be assessed, qualitatively to start with, Assignment of available manpower to the above buyer user classes then has to be worked out, keeping in mind:* * * Need to reach short term business aims areawise. This is a must. Future developmental planning. Total cost (and time) budget to reach the above, separately for the above.

For a pre defined period, assess actual results versus plans and total time and cost investment. (use of cost benefit analytical technique), If needed, redesign selling strategy.

Variable four: Sales training and development Sales training and need for developing relevant manpower, who need to be selected first ie right sales types for the right prospect and customer class. Recruitment, selection and periodic training of required sales personnel should be treated as an ongoing business activity of any sales manager for any type of product or service. Recruitment and selection should be planned well in advance, keeping in mind issues like: * * * * * * * Retirement, Resignations, Retrenchment of low performing sales people, Transfers, Death, Future growth possibilities, Combination of the above.

Now-a-days, VRS (voluntary retirement schemes) have become popular to get rid of Excess fat and also help in developing more concentrated and effective sales impact. A particular job type needs specific sales type, depending on the local known buyer user class needs, as well as the level of product technology and complexity. Besides basic education, experience and personality traits, regular theoretical and even on the job orientation, as well as field coaching by seniors are essential inputs to develop:Product knowledge and commercial acumen. Knowledge about market to be serviced. Competition. Learn process of selling ie from prospecting to order closing to feedback and follow-up and especially timely collection of all dues. Finally, build up self generated motivation and the killer instinct to achieve laid down targets. Both empathy and achievement orientation need to be developed, though apparently, these traits may seem to be contradictory.

An example: In a multi product, multi unit all India level organization (Rs.3,000 crores annual turnover in 1998) in one region (east), few middle level sales engineers (about 25 in number) have been assigned on two broad basis: Local areas demand and potential for two product classes, namely :* Standard industrial items like: Motors Product line I Transformers Consumer durables like lighting system (produce line II).

Both direct (institutional) and dealer based selling are resorted to. Company is very well known and competes with other established giants like: * ABB * Philips* * Siemens * BHEL * Surya* etc. (* : for lighting system). Interestingly, as per their Eastern region senior personnel manager (Kolkata is the regional head office), a local engineer in charge at Bokaro is not achieving his laid down monthly target, whereas the Man in Asansol has crossed his monthly target regularly and consistently. Similarly, in North Bengal, one engineer is doing very well for products like Motors and Transformers, whereas the other one, assigned to the lighting system market, is not doing too well. He comes back to his Kolkata home on every weekend (his family stays in Kolkata: an over nights journey). Reportedly, he may even be thinking about resigning from the job, for which his company has

invested lot of time, energy and money for making him fighting fit. He has been with this firm for nearly 17 years! Through in depth training, motivation can be generated. After all, loosing trained manpower is an expensive proposition, a major opportunity cost. Selection, training and developmental aspects, have been detailed later, separately for sales personnel. Sales staffing: recruitment, selection, training and development All people can not be sales or marketing oriented. While few basic traits like patience and perseverance, inherent achievement motivation ie. the killer instinct, ability to pursue a prospect untill a decision, either way, is achieved etc. may be in-born, job specific, product specific and sometimes situation specific basis for selection needs to be planned for. This should lead to recruitment of the right types of sales personnel, as needed. For example, a very shy, introvert type of person, who may even be not too good in communication skills, may not be the right type of front line sales personnel, say, for commercial and specially direct selling functions. It is, therefore, imperative that, prior to selection and recruitment, concerned recruiters must be very clear themselves about what specific traits they are looking for and at what costs. Working on the principle that everyone can not do everything, the detailed process of selection and recruitment ensures elimination of the non-desirable types of persons, who may not be the right types for a particular type of sales job. In other words, the process of selection and recruitment, often handled by outside specialist Placement Consultants, is a very tedious, boring and even frustrating method for identifying those human beings, who will finally become assets to the recruiting company. It should also be kept in mind that all desirable traits in any sales person may not be possible. Even if these are available, these will be too costly for the pre-defined job types. Often, a compromise has to be made between recruiters expectations and available sales personnel, who may or may not have experience in a particular field, or even relevant education.

The next phase is training and development of these sales personnel. Both through class-room lectures for understanding and appreciating basic theoretical framework, on the job training should also be considered for internalising relevant knowledge on product-service, customers, prospects, dealers, competition as well as all aspects of laws of the land. Most importantly, an in-depth appreciation of the existing markets economic conditions ie purchasing power and inclinations need to be assessed in depth, preferably segment wise. This should be assessed during the training period itself.

In addition, present methods of sales strategy, a sales mix (6 Ps), available sales and service specific sales persons, all need to be understood in totality.

Before full scale operationalisation, the trained sales personnel should also be put on the job to assess their performance, aptitude and problems, including personal problems, if any. Right at the start, these should be addressed to and solved by the senior sales trainers and developers.

In conclusion, therefore, the right types and number of specific recruited sales persons, given the right types of training and self-development as well as firm-level growth, need to be considered by any progressive firm as basic investment and not only as a current expenditure. After all, the fully trained sales persons are the only set of human beings, who ensure regular revenue generation. In a flexible and understanding working environment, they need to be motivated to develop strong firm level loyalty. Otherwise, regular replacements due to resignations or otherwise will involve the sales managers expensive time, energy and concentration, which are actually non-productive, if done regularly and unnecessarily to fill up gaps left by resignations, replacements, retirements, promotions or even work expansion. Long term Maintenance of trained sales personnel, keeping them happy and satisfied, will ensure development of a process, which starts from first level recruitment and selection. This should be considered as an important objective of any proactive marketing and selling organisation. After all, cost of regular selection, recruitment, followed by training will be far more while compared to expenses for maintaining and developing firm level loyalty amongst existing sales professionals. Benefits from new recruits, during their settling period, will be much lesser. Hence, any professional marketing organisation needs to develop a total atmosphere for existing trained professionals and try to keep them as satisfied as possible. Selection and recruitment. Specific stages will follow, one after another, starting with clear understanding of the employers recruitment policies, like, to mention a few only:

Designations and expected responsibilities to be handled and at which levels Type of selling jobs and expected: Education levels Experience and in which types of industries Desired personality traits (Conceptualiser, planner, doer or all in one).

Personality profiles: job-specific traits needed Should these traits be for maintenance or developmental selling, or both? Age range Compensation package, incentives, plans for career progression in the firm.

Many innovative firms even consider to recruit extra-ordinary professionals and then build the job profiles around each of them. This usually happens for brand new trainees, but is also workable for senior level personnel.

An example: In many public sector undertakings (P.S.U.), even at the levels of C.M.D. (Chairman-cum-Managing Director) outside experts are brought in to ensure the corporations growth, and sometimes even survival in often stiflingly rigid work environments. An oft-repeated major problem is the problem of compatibility with existing senior wholetimers, who may even prefer the Halo effect principle to select and recruit new, even very senior professionals. A smart move by the employers may even be to prepare a generic job description to stimulate the search process efficiently. Theoretically at least, if all in an organization were clear about their job responsibilities, authority, organizational hierarchy, whom to report to etc., a reasonably smooth working arrangement could be structured and even implemented. Goals Effective decision making in these two areas (Recruitment, hiring) can result in significant saving of time, cost and energy. On the other hand, ineffective recruiting and hiring performance by a sales manager usually results in turnover and loss in sales and profits. These costs are not only reflected in severance pay and the hiring, training, relocation costs, selection agency costs, and countless others for the salespersons replacement, but also in the sales volume that was missed by the ineffective salesperson(s). These costs, in most cases, are irretrievable and reduce profits substantially. This chapter will investigate the recruiting and hiring functions as those related to the sales manager.

The recruiting process Sales recruiting is the process of finding applicants for sales positions. The objectives of recruiting include finding the right person for the defined jobs at the lowest possible cost with the least amount of effort. It rarely happens. Good salespeople are normally employed already and it is not an easy task for the sales manager to locate candidates, who will perform effectively. Equal employment opportunities for all people: Theoretically, all equally experienced and educated professionals should be given equal employment opportunities irrespective of gender, caste, creed, religious affiliations or even colour of the skin. In real life, however, very unfortunately, in many organisations in India even now, applicants from specific social-cultural and religious strata are preferred over and above so called minorities and backward classes. Even in Institutes of Management, for example, sometimes on the pretext of poor presentation and communication skills, applicants from socially backward classes do not get equal opportunities for selection and recruitment. Sometimes, therefore, the government have to step in to ensure applicability of equal selection and recruitment opportunities. On the other hand, in many organisations in India, female employees, for example are preferred to be office assistants, researchers, analysts and, in general, office-factory based blue colour and even white colour employees. Only in recent times, female executives, very slowly, are being considered for front line assignments as well as executive level positions based on performance, intelligence, dedication and firm-level loyalty. However, there is a long way to go to ensure equal employment opportunities for female and male executives.

On paper, therefore, both selection, recruitment and career level progression for all applicants enjoy equal level of opportunities. But, in reality, actual enforcement will need stricter government level rules and regulations. Basic techniques of interviewing applicants for sales positions At first, the sources of applicants will be mentioned in very brief from: Sources of applicants: These can be broadly, as follows: * * * * * * From internal referrals, which is the least expensive medium. Also, from the selling point of view, candidates who are expected to perform effectively will be mentioned From advertisements in newspapers and trade magazines Pirating from competitive firms is a well established method for filling up gaps in sales hierarchy From employment agencies and personnel and search consultants. From Universities and Colleges Walk-ins. It is an excellent source of talent identification, because the process is cheap. Also, the sales manager can be selective about who all will be interviewed. This method is popular for technical, commercial and even direct selling jobs.

The above are just few of the methods for building up a bank of possible applicants from whom selection will be organised. The application form Depending on the job, as well as the organisation, the application form is expected to be designed to elicit useful and meaningful information. Purpose is to aid the screening process. Basic information are sought on age, education, experience and few available data on personality profile. In addition, other relevant information sought are sex, marital status and even arrest record! Besides, relevant information need to be provided on aspects like name, address, telephone numbers and other location data. For many job types like those for technical, consultants etc., personal references are also sought to serve as points of reference. In totality, the application form is essentially a guide for the interviewers to aid the latter to organise preliminary interviews. At this stage, elimination is the norm rather than first level selection. This also serves as the first level screening medium to shortlist only those prospective candidates, who can be contacted during the start-up interviews. The preliminary interview: This can be termed as the last step in the recruiting process and, therefore, is very important. Here, the first face-to-face relationship is organised between the interviewers and the interviewees. From this step, acceptable candidates for in-depth interviews and other testings will be further shortlisted. Depending on the type of job, the duration of the interview will be organised. Many firms use a patterned interview guide to ask same or similar questions. Purpose of this step is to check on aspects like personal

appearance, verbal ability and other desirable traits as expected by the firm. Obviously, from this recruiting process, elimination is organised prior to organising in-depth hiring interviews. The hiring process for salespersons This is a three stage hiring process as advocated by Gordon R.Storholm in his book on Sales Management (Refer: page 113 page 118). The hiring function is one of the most critical areas associated with sales force effectiveness. The benefits of hiring the right persons and the consequences of hiring the wrong person for the job are of sufficient magnitude to warrant a very carefully thought out employment programme. Every sales manager attempts to hire the right person for the job in hand. The basic aim is to ensure a long term, mutually productive relationship between the salespersons and the firm. The wrong persons in place, besides actual costs in revenue, opportunity costs of hiring the wrong persons are very high. Gordon R. Storholm has suggested a three stage process for minimising selection of the wrong personnel. These are as follows: * The initial stage of the hiring process is based on the sales managers observations and refers only to very basic job requirements, such as the ability to understand a job, a positive attitude and other discernible traits The second stage of the hiring process is concerned with deeper attributes of concern to the sales manager. For example, absence of much-needed traits like verbal communication ability, a degree of aggressiveness and any other factors, which are considered vital to the sales job, will warrant elimination from the hiring process. These secondary traits normally become apparent to the sales manager during the advanced stages of an in-depth interview. It is, however, possible that the managers evaluation of both the primary and secondary traits can be made in one interview, although most sales managers prefer to conduct two stage interviews. The third stage of the hiring process is normally concerned with the evaluation of the extent or intensity of characteristics. This stage typically requires the aid of measuring instruments such as testing and/or a battery of several interviews.

In seeking potentially competent and effective salespeople, the sales manager attempts to find traits in candidates that will help him or her predict whether or not the person will perform effectively and remain on the job for a reasonable amount of time. As a starting point, most sales managers look for certain general personal traits. Absence of one or more of these traits should normally eliminate a candidate from further consideration, but the presence of these traits simply indicates that the candidate has passed the initial step in a fairly rigorous hiring process. Although these basic traits may vary in weight, the ones most commonly looked for by sales managers are the following: 1. 2. An understanding of what the job is, its functions, its requirements, and what must be done to perform\successfully. An indication that the candidate should be interested in the type of selling job that is available; whether the job would be too routine or too complex, whether or not the candidate could attain fulfilment, could grow in the job, or whether he or she would loose interest in it. A basic or even superficial indication that the candidate has the aptitude and basic ability to perform the functions of the job. A productive attitude. The candidate should be a positive thinker, avoid excuses and rationalizations, and have a mental and emotional orientation that will fit into the present sales

3. 4.

5. 6. 7.

programme. This trait is subjective but can be described as the managers perception. However, it is Too good to be true. The candidate should have experience either on similar jobs or may possess sufficient sophistication required for the job through past interpersonal contacts. Enthusiasm connotes an open-minded, inquisitive, sincerely exuberant orientation that indicates a willingness to stand up in the face of adversity. It is normally an asset in any sales job. The applicant should have sufficient verbal communication ability to express himself or herself in accordance with job requirements.

Although all the preceding traits may not be required or even practically available for every sales job, most sales managers are adamant about the candidates possessing the majority of them. Sales managers reason that if the potential salesperson does not display these basic characteristics during an employment interview, he or she will probably not convey these to potential customers. To sum up, the typical selling process, broadly, for most selling jobs, is composed of the following seven steps, which are relevant for recruiting and hiring.

Table-1
Sr. Nos. 1 2 3 4 5 6 7 Recruiting and hiring process Recruiting and preliminary interview with sales manager In-depth interview with sales manager Administration of battery of tests (If needed). Additional interviews with two or more different local sales managers or administrators Interview with local sales managers boss Final interview with local sales manager Reference check and subsequent hire.

In table-2, job specific important secondary traits have been presented below:

Table-2
Important secondary traits Sr.Nos. Characteristics 1 Consultative

1.1 Verbal and written expression 1.2 Dress 1.3 Attention to details 1.4 Educational background 1.5 Thinker, planner, analyst
2 Industrial-Commercial 2.1 Aggressiveness 2.2 Dress 2.3 Verbal communication 2.4 Physical condition. 3 Technical 3.1 Technical aptitude 3.2 Verbal communication 3.3 Attention to details. 4 Direct 4.1 Aggressiveness 4.2 Physical condition. 4.3 Positive frame of mind (Never say Die). Multiple interviewing There are a number of reasons for conducting multiple interviews. This can be four or five separate interviews prior to the final selection decision and is obviously job specific and product-market specific. A basic aim is to minimise the impact of using subjective selection methods only for the hiring process. It is well appreciated that a sales managers instincts, skill, experience and judgement are vitally necessary for successful day to day operations of the sales programme. A one person interview programme may even be disastrous. This is because of the following possible reasons:

Halo effect: Here, an interviewer allows a single trait or characteristics to influence the evaluation of other traits or characteristics. Appearance and verbal ability, for example, often colour the judgement of sales managers to the detriment of other factors being over looked.

Premature judgement Very unfortunately, many sales managers tend to make decisions to hire before the interviewing process has been terminated. Right from the first time, considerable energy is spent by the concerned managers to justify their wrong decisions!! This selection procedure is quite prevalent when the first level rapport between the sales manager and the candidate is extremely close.

Ineffective interviewing: Due to absence of formal training programmes to teach sales managers how to conduct employment interviews, many poor hiring decisions result, specially when the sales manager is inexperienced or has never been trained to interview correctly. Usage of additional interviewers may minimise the impact due to these particular problems:

Risk factor: If the wrong candidate is hired, the sales manager must accept the responsibility. Often, a sales manager might tend to look for negatives in a candidate to ensure risk minimisation for hiring the wrong persons specially for high quality hiring decisions.

Interviewer bias: Conscious or unconscious biases, which result from their own backgrounds and experience of the interviewers, may play havoc. This particular impact can be minimised when the applicant is interviewed by more than one sales manager and thereby the bias or stereotypes are practically minimised.

Loss of control: Strong personality factor of the interviewees may cause the interviewers to loose control of the interview situation. Here also, the multiple interview process is to solicit all needed information, both positive and negative in nature, regarding the interviewees.

Pressure decisions: Lack of available candidates, specially to fill up urgent gaps in required jobs, may often put pressure on interviewers to make compromises and speed up the hiring process based only on available candidates. Here also, to the extent it is possible, pressure should be avoided for speedy Filling up the available gaps.

Leadership styles: On an ordinal scale of 10-1, autocratic pattern of selection and recruitment can be termed as Type-1. It means low concern for followers as individuals. In few types of situations, as in the Defence Services,

autocratic patterns may even be preferred due to certain types of value systems. Due to psychological and emotional characteristics, the followers may even like to be led. A typical example is that of General Patton, who preferred to lead his soldiers from the front in many fighting scenario. He was respected as a brave leader great Tank warrior. On the other side, in participative management style (Type-10), there is high concern for followers as individuals. In many government organisations in India, type-1 style of authority domination is implemented. This has a direct impact on the selection and recruitment process. On the other hand, specially for consultative and technical job types, participative style of management may be preferred so as to build up a flexible, professional work environment, where selected trainees are actively encouraged to be creative and offer their well thought out views and opinions. Depending on the product-market type, stage of economy, specific organisational styles, there may be a range of leadership patterns, which range from the extreme autocratic to the participative management style. Few sales employment tests: Psychological tests: (Ref.: Book on Sales Management: Decisions, Strategies and Cases by Richard R. Still, Edward W.Cundiff, Norman A.P.Govoni, Page 329) In recent years, more and more companies have tended either to abandon or to rely less upon psychological tests as an aid in making selection decisions. One reason is the difficulty in validating psychological tests and in securing the empirical data to prove that results are predictive of or high significance related to successful job performance. Further, test results are being used in ways that may result in illegal discrimination. When used, psychological tests are one of the last steps in the selection system, because of their relatively high cost. The task of validating tests is complicated because different sets of behaviour or attributes can lead to successful job performance. Because of this, separate validity studies should be performed, for instance, for different ethnic groups. The different cultural experience and exposure of each group affects the relationship of test scores of job performance criteria. Validation of tests: (Ref: Book on Sales Management: Decisions, Strategies and Cases by Richard R. Still, Edward W.Cundiff, Norman A.P.Govoni, Page 329) Because of the need to prove that a test is related to job performance criteria and because of the possibility that different validity exists for different groups, it is important to understand test validation. Normally, three types of psychological tests are used in selection systems for sales personnel. These are as follows: * Tests of ability This includes tests of mental ability (Intelligence tests) and tests for checking special abilities ie aptitude tests.

Tests of habitual characteristics This includes attitude, personality and interest tests.

Interest tests For this, there is a basic assumption that a relationship exists between interest and motivation. Hence, if two persons have equal ability, there will be greater interest in a particular job and should be successful in that job. A second implicit assumption is that interests are constant at all age levels!! Unfortunately, there is hardly any proof that interest tests help in predicting success in selling.

Achievement test: These seek to determine how much an individual knows about a subject. For specific job skills, different knowledge types and levels are required.

It should be noted clearly that usage of tests should never be used in ways, which may even tend to discriminate amongst different ethnic groups. It is therefore better to design acceptable job specifications and then qualified experts services will be needed for designing and selecting tests, which are reliable and valid. Finally, it should be realised by effective sales executives that any type of psychological test is but one step in the process of selection .

Physical examinations: For any type of sales job, specially relevant for direct sales types, good health is important for the success of any sales person. As a rule of thumb, physical examination is usually conducted after all relevant tests have already been carried out on selected candidates. Medical examinations are compulsory for those job types, where physical activities play an important role as for direct sales personnel, front line soldiers, medical representatives and the like. Post selection functions: Normally, specially for high profile jobs like those for Technical and Consultant personnel, reference checks are organised prior to final selection. The major purpose is to ensure reliability, validity and consistency of information provided by the concerned applicants during their applications and subsequent battery of tests.

All in all, selection of the right candidates may be a tortuous, boring and even repetitive process. But, selection of the right person will mean probable progress of any organisation, as compared to those applicants, whose backgrounds may not fully adhere to clearly spelled out desired job descriptions.

Budgetting for selection: Very few organisations, even if these are professionally managed, believe in a pre- -planned budgetting for recruitment and selection of its sales personnel at different levels. Technically, the Chief of Human Resource is expected to study the probable manpower requirements for all functions, say, over a year long duration. In the case of sales management, aspects like probable resignations, transfers, retirements, unfortunate deaths and even promotion to higher levels all need to be considered based on a combination of both subjective and objective need assessment. Thereafter, level-wise, function-wise and even location-wise probable manpower needs to be quantified. In many proactive organisations, specially those dealing with direct selling functions, an estimate needs to be made, based on hunch, guess and previous experience, regarding sudden dropouts of front line sales people, who may be looking around, on a regular basis, for better emoluments. Based on the above homework, the types of internal and/or even external specialists need to be involved to work out manpower needs. This will help in preparing both a budget as well as a theoretical plan for organising series of formal and informal interactions, at pre-specified time periods. Sales training and development: Sales skill training: According to Gordon R. Storholm, in his book on Sales Management, he has highlighted 8 different areas in the field of sales skill training. These are as follows: Sales skills Product knowledge Process of prospecting and lead generation Time and territory management Development of compatible work habits Thorough knowledge of companys policies and procedures Competitive products and services Administrative responsibilities.

Depending on the product-market mix, the overall competitive scenario and a specific firms management philosophy, different training programmes are designed and organised. In figure-1 below, major areas of sales training have been briefly highlighted.

Figure-1 Major areas of sales training

Sales skills training

Teaches basic sales skills like handling objections and persuasive techniques. Teaches features and benefits and selling points of old and new products and services. Teaches basic techniques of locating sales prospects and setting appointments. Teaches the basic concepts of setting time priorities and optimum time utilization. Teaches proper approach to development of effective work habits. Teaches need for company policies and specific procedures necessary to running an orderly sales organization. Teaches features and benefits of competitive products and services necessary to develop effective professional skills. Teaches the proper methods of completing basic documents and office procedures necessary to efficient operation of sales apparatus.

Product knowledge training

Prospecting and lead generation training Time and territory management training Work habits training

Company policy training

Competitive product training

Administrative training

It has been assessed by this author-cum-researcher-cum-trainer that Different strokes for different people have to be organised, which are participant specific. Broadly, for any sales training, for any level, it can be broken-up into three specific parts, ie: A company specific training, which will cover: * * * Product knowledge training Administrative training Organisation specific training on desired work habits, as well as training on company policy

The second step of generic training will focus on: * * * Steps in the selling process Time and territory management for optimum time utilisation Set of training modules can also be developed and on how to tackle competition.

The third informal method of training will have to focussed on:

* * *

On-the-job hand-holding and guidance Coaching On-the-spot handling of sales related problems and their quick solutions.

Efficacy of training: Right at the start, specific symptoms of the existing sales scenario, say that of M/s ACC Ltd., have to be noted in so far as the following major Health indicators are concerned, ie: Sales value, volume, Market share (%) Percentage growth rate (%) Profit before tax (PBT) Employee morale/ Rapport with present government Market standing Customer satisfaction index (CSI)

After completion of the entire training programme, say over a one year period, the then Health Indicators, vis--vis prevailing competitive-level, need to be assessed. If the differences between the two sets of the indicators are substantialy positive, then only this type of expensive and time consuming Training package will be worthwhile and effective. Otherwise, concerned management may have to start thinking all over again for redesigning the selling strategy, followed by selling mix and, finally, the selling organisation. Better training programmes have to be considered and implemented.

Plight of a salesperson: facing new prospects, even customers and known dealers: The purpose of any salesperson, and his/her involvement with prospective buyers-users, even known customers and dealers, is to ensure: Via the method of maintenance selling, go-on ensuring, on a long term basis, the loyalty of existing and known customers and relevant, intermediate distribution channel members. This involvement, primarily on customer-level satisfaction, will ensure at least the survival of any selling organisation, if not its growth Developmental selling will be aimed at converting new prospects, even competitors customers to the status of ones own firm via all types of negotiation, bargaining, persuasion and conviction, all needing across-the-table meetings. This will involve a lot of energy, concentration and planned focus via A.I.D.A. concept. The concept is acceptable. Its implementation is often very long, painful and frustrating set of experiences, often due to poor sales management.

To achieve the above, any salesperson has to go through a mix of formal, as well as informal techniques, most of which will demand the basic necessity of across-the-table interactions, on a fairly long and planned basis. While prospecting and lead generation can often be organised through telephones, emails, faxes and/or a suitable combination, there is hardly any alternative to personal interactions for handling objections of all types, organising effective and quality sales presentations and, finally, close the sales. Later, regular and planned follow-up, feedback and interactions will be necessary to cement the first level buyer-seller level understanding to a firmer, long-term process of mutual trust, faith and

confidence building. All these are the basic hallmarks of any business or even personal relationship development. In view of all the above, therefore, facing an unknown prospect, specially at the initial level, is often a frightful task, which may even cause considerable plight, even flight from the expecting decision making unit members from the buying-using families or more complex organisations. A major role of any sales development programme, therefore, is to recruit and select those sales trainees, who have a combination of basic required education, experience and, more specifically, desirable personality traits like self-confidence, aggressive mentality, clarity in communication, a mix of Killer approach and empathy. All people can not be sales people, who are a breed by themselves. Via training, few essential attributes like planning, forecasting, timely attendance, adherence to norms and dress codes etc., besides basic discipline, can be developed. However, the typical Sales personality does need few basic in-born abilities like patience and perseverance mentality, and Never say die approach. Selling is often a very punishing, rigorous, boring and, to start with, initially non-rewarding experience. Depending on the product-market type, selection and recruitment of the right sales types need be organised. Later level training and development must take into account the job-specific known plights and equip the salespersons, specially the new trainees, with what all they can expect in the market place. Here, experienced and senior sales officers can contribute in a big way by sharing their own experiences especially Success stories with new sales trainees. Major administrative related aspects (Sales training): Paper work is a major, often disliked, necessary Evil, which has to be rigorously adhered to by all sales persons at all levels. The important pre and post sales related documents are as follows: Call reports: This can be daily, weekly, fortnightly and even monthly summary call reports, which specify issues like: * * * * * * Specific product level discussions Names, addresses of companies contacted during the period Names, designations of all concerned decision making unit members, who had been contacted, mostly time and again, Relevant competitive information Specific action plan, mostly in the short term Most important will be actual results, if any, which may have been achieved during the sales call stage.

Design of a short and specific call report, which is not very time consuming and complex, is very necessary to keep track of all sales-market related data, which should be dynamic and regularly updated. Data should be fed into a computer system for necessary sorting, analysis and, finally, resulting into reliable, valid, substantial and consistent information, which can be used by the firms management for decision making.

Weekly sales plan: This is an advance weekly plan, which is expected to indicate, which prospects, customers and dealers will be called on during the next week. Additional information on market includes products to be discussed and collection of other specific data. Usage of this planning system helps in forecasting the Activity plan by each sales person, mostly in the short term period. This can be used by the management for further modifications, total changing and/or last minute adjustments, which are often necessary to be in regular touch with the targetted market segments.

Monthly forecasts: At the branch level, in many proactive organisations, a monthly forecast is prepared by each and every sales person regarding how much is expected to be sold during the coming month. This plan normally includes sales value expected and from which parties as well as some indicators of the probability that which targetted customers are expected to buy what products and services.

Order forms: This document, which is often prepared in consultation with Finance and Logistics department, normally includes data on: * * * Shipping information ie delivery schedules Terms of sales All related information on storing, packaging, transportation and, sometimes, even modes of transportation * All related data on VAT (Value added tax), Octroi, Local and Central sales tax, customs and all Excise formalities need to be clearly specified as per prevailing Laws of the land. In some types of order forms, even time of despatch from the factory of the vendor is specified alongwith actual number/weights of materials, which have been despatched Any other data pertaining to the customers order.

* *

Number of other sales related documents like credit term fixation and their preparation and timely submission have to be understood and delivered to clients. For example: Bills, challans, proforma invoices Submission of different types of government-level documents for: * * * * Sales tax Octroi Excise, customs Transportation documents,

Client-level receipts at their end.

Most of these documents are needed for final bill preparation, submission to clients finance department for payments as per contracts.

Expense form: At the branch sales level, before the start of the financial year, alongwith an yearly sales forecast, yearly estimated expenditure for sales and distribution are all prepared. Depending on the product-market systems, prevailing economy scenario and available infrastructural facilities, say for transportation, selling and distribution (S&D) expenses need to be worked out and projected in advance. This expenditure will obviously be product-market specific.

Expense forms are written accounts of all expenses incurred by each and every sales person. Account codes and other detailed information must be adhered to in order to comply with expenses, prevailing rules and regulations. Mistakes on these forms can even result in the forms being returned to the salesperson(s). Development of sales trainees: Organizational perspective Process: 1. Centralised training L&T in Mumbai ICICI Prudential from Mumbai I.O.C.L. etc. Regional training centres

2. 3. 4.

Local, field level training Outside firms, Consultants Mix of the above.

Purpose of any development: Recruitment, selection, training and development are all simultaneous activities to ensure: Selection of the right people and, hopefully, well-defined job responsibilities. Than only, training and development, prior to deployment, should be considered Happy on the job. It should be an important motto of all H.R. personnel, whose responsibility mix should also include development of employee morale/ Happy employees are a major source of any companys survival as well as growth. In a recent survey on what employees want throw up the following interesting findings, in order of importance, to ensure job satisfaction: * * * * * Opportunity to do an interesting job Balance between private life and working life Prospects of advancements Job security Salary should be actual income relative to the cost of living

However, according to Jing Zhou, Associate Professor of Management at Rice University:

---You need a certain amount of dissatisfaction to get the best out of your workers---. According to her, creative solutions only emerge if only a problem is perceived. A happy worker can take a lot of irritation in his stride. Actually, the Irritation Factor may even serve as a challenge to the employees for satisfactory problem solving. In addition to both the above, simultaneously, the trainers and developers have also to imbibe the basic fact to all employees that firm-level productivity, efficiency and effectiveness are the basic pre-requisites for any organisation-level survival and growth. With these ends in view, the following structural arrangements have been discussed foimparting planned training and development inputs to both new sales trainees, as well as for existing sales personnel at different levels. Centralised sales training, development: Most large organisations like Indian Oil Corporation Ltd., L&T, ICICI Prudential, to name only a few, have centralised sales training departments, which act as the nerve centre for all sales training activities undertaken by the company. Training policies and procedures for the entire sales organisation emanate from this department. Among its many functions, the central sales training department coordinates fieldlevel programmes and also acts as a liaison between home office and the field. The sales training departmental head, depending on the organisational styles, can either report to the national sales manager or the vice president of sales. Very broadly, the job descriptions of any sales training manager should include detailed clarifications on the following, ie: I. II. III. Generic functions Reporting relationship Duties and responsibilities, which need to be clearly defined. These can be as follows: * * To assist sales management in identifying training needs To identify management problems to determine which are created in whole or in part in the sales sector and which of these can be remedied by sales-training efforts * To develop (or obtain) programmes to meet the needs of above * To organize, coordinate, and schedule the training * To determine who shall conduct the training, and to provide such personnel with what guidance is necessary To evaluate the training and report results to operating management To determine need for follow-up to ensure continuing results, and to plan, organise, conduct, and administer such training To coordinate with other personnel-development activities To develop such long-range sales-management training programmes as may be necessary to aid operating managers in developing and maintaining an effective work force To coordinate and utilize the training facilities within the organization and to procure services of outside consulting services where available, necessary, and appropriate To maintain an adequate system of records and progress reports To submit an annual budget for approval. The budget is to contain an explanation of the need for each training programme and the operating problem(s) it seeks to avoid or eliminate.

* * * * * * *

IV.

Relationships Since this is a staff-level function, clarity in on-going developments need to be defined very clearly with all staff departments as well as the field organisation

V. VI.

Desired education, experience and knowledge-level needed for this position. Primary objectives of the manager, sales trainees. These are as follows: 1. 2. 3. 4. 5. The adequacy with which the total sales and sales management training development is administered The degree to which the sales and sales-management expenses are controlled, kept under budget, and utilized. The quality and timeliness of decisions and actions regarding all responsibilities of the position, including the quality and timeliness of his or her recommendations. The quality of his or her leadership in developing and executing sales training and sales management programmes. The extent to which he or she achieves and exceeds results, are measured against objectives.

Purpose of the above is to ensure a close working relationship between the sales management team and the staff-level sales training managers. Besides a formal understanding, a strong informal relationship must be developed to ensure design and implementation of effective training inputs, which will be level specific and most definitely customised. Field of local sales training: Most training at this level is conducted to upgrade sales skills and product knowledge. Much of the material covered at formal sessions is developed by the home office training staff, and the format is sent to branch locations. Training in the field tends to become less formalized as it moves from the regional level to the branch level. A typical regional training meeting includes rented facilities and training personnel from the home office, in short, a fairly big production, whereas branch training is normally conducted during regular sales meetings or on a one-to-one basis. The typical branch sales training meeting is normally conducted by the sales manager and, in many cases, by senior salespeople. Meetings of this type are designed, for the most part, to share techniques and information through interactions of the sales force. Budgets for sales training are normally part of the branch administrative budget. Facilities are rented sparingly, and most sessions are held at the branch office. Equipment such as videotape machines and screens is normally rented as needed. Although most branch sales training budgets are modest, programmes can be highly effective if the sales manager expresses a strong commitment to training. Most home office training departments enthusiastically support traditional and innovative local sales training programmes and are usually more than willing to provide whatever help is required to make the local programme a success. On the other hand, if local sales management expresses a perfunctory or indifferent approach, the benefits of sales training at the local level will probably be minimal.

Outside firms or Consultants: Many sales organizations use outside firms to help provide sales training, but it should be emphasized here that, no matter how extensively these resources are used, ultimate responsibility for sales training always rests with the first-line sales supervisor. There are several reasons why outside help is used, the most common being the limited resources of the firm. These resources normally take the form of limited training personnel or limited funds. Small companies, for example, often find it difficult to justify the use of a full-time sales trainer. Because of the few formalised sales training programmes scheduled and because of the relatively few new salespeople who are hired, most small firms find it financially unrealistic to organise and staff a training facility. Some larger firms find that certain consultants provide expertise in narrow subject areas. In other cases, urgent training needs might not be able to be met because of time demands on the firms sales training department. Situations such as these dictate the use of outside sales training organizations as a viable alternative. Private Consultancy firms are often appointed for clarity, in-depth specific areas of expertise, which may not be available with all big or even medium selling organisations. For example, this author-cum-trainer had been deeply involved for designing and then conducting mainly short-duration, fully customised training programmes to comply with knowledge upgradation requirements of the targetted participants. The major sales training techniques: Four broad systems have been developed: Participative non-participative Training on and off the job Role of Handling, direction and overall guidance.

The above-mentioned techniques, sometimes a suitable combination thereof, are used to impart relevant knowledge both to new trainees, as well as existing professional sales personnel. Appropriate techniques to be used depend upon the following parameters: Purpose of the training Number of sales people to be trained Relative levels of education and experience of the sales people in the subject area

Participative Most local training is participative in nature and requires sales people to take part into this process. Participative techniques are utilised for the training theory and can be thought of as simulation, usage of direct experience-based learning is a good way to ensure faster internalisation of relevant knowledge. Most commonly used participative techniques are:

Role playing: which is used by sales trainers to help trainees simulate various sales situations. These are similar to play acting as in dramas, where players are expected to Get into the spirit of the role and then enact it as relevant in a particular scenario Coaching and counselling is the most widely used participative technique. It is also the most important because it consists of interaction between the sales manager and the salesperson before and after actual sales situations. For example, how the sales call will be organised, followed by post call analysis and discussions. It is critical that sales managers have a strong expertise in coaching and counselling salespeople. Also, coaching is an area of sales training that can not be delegated downwards. Programmed learning techniques: Its main purpose is to provide the trainee with information in printed form. Most programmed learning texts consist of a short amount of material, for example, the equivalent of three or four written pages known as a Frame with a series of questions to be answered at the end of each frame. If errors are made, the student goes back to the beginning of the frame. One advantage of this type of learning is that the reader is not forced to read material he or she already knows. This type of learning technique is particularly effective for salespeople. As a group, they are relatively impatient, and an instructional mode of this type allows them to speed up the learning process, thus assimilating a great amount of information than would normally be the case.

Group techniques: The essence of group training is that small groups of approximately seven people or less work together on certain problems and develop high-quality solutions. The advantages of these techniques are that * * Exchange among fellow trainees provides each individual with a valuable learning experience When each individual is required to participate, the results are normally well thought out.

The most common group technique is brainstorming. In this technique, members of the group are encouraged to volunteer information on a random basis with a group leader documenting all contributions. When a time limit has been reached, the group analyzes each contribution untill a consensus has been reached. As a rule, the longer a group practices this technique, the higher becomes the quality of emergent solutions, thus reinforcing in the participants minds the value of peer learning experiences. Non participative Non-participative techniques are normally used to teach theory as in class-room situations. The commonly used methods are as follows: Lecture method: This sales training technique is used to provide trainees with information. Most theory is taught via this method. As in the college class-room situations, its effectiveness is limited by the attention span of the trainees. Even the most stimulating sales trainers find that the amount of learning that the trainee can absorb is often a function of conditions beyond the control of the lecturer.

Audio-visuals: No sales training session is complete without one or more inspirational films featuring some, say, sports celebrity, usually drawing an analogy between sales and football, exhorting the audience to fight for that last yard. Surprisingly, films of this type are still popular and still draw favourable comments from viewers. Salespeople as a group, although having higher intelligence than most occupational groups, also tend toward a less sophisticated approach to professional success. Reading and study assignments: Most sales training programmes require a certain amount of homework to be completed by the trainees. New salespeople in particular are normally assigned a great deal of study material to be learned either before or during their initial sales training. The value of home study material is limited by the students ability to absorb what he or she has read. For this reason, many firms develop programmed learning materials to be used in place of traditional study material. Many trainers feel that the use of this participative technique increases the effectiveness of the home study programames.

Other forms of knowledge improvement

Training and development are continuous activities. Once the right sales trainees have been recruited and selected, during the initial stages, the trainees have to be imparted few basic inputs on the company, the firms Strengths and relative weaknesses vis--vis competition, information on the market scenario including available data on targetted classes of customers, new prospects and even indirect distribution channel members. As mentioned earlier, appropriate Laws of the land, required administrative formats, basis for performance evaluation, dress codes and other expected norms of behaviour etc. are internalised, quite often, in proactive organisations. From time to time, depending on the levels of performance by different classes of sales persons, both on and off the job training programmes are designed and imparted to keep the concerned sales persons fully uptodate about required knowledge levels, which vary from time to time. The major way of knowledge upgradation is the active, often on-the-job involvement and direction by experienced, senior sales professionals, who should be encouraged to share their valuable experience, specially success stories, with the relative non-performers in the organisation. Depending on the sales person types, their performance levels as well as existing knowledge levels, sales training programmes need to be customised and tailored to specific requirements. Evaluating sales training: [Ref.: Book on Sales Management by Gordon R.Storholm, page:174-175) In business and government alone, there are many jobs where the performance of the jobholder is difficult to measure. In these cases, a judgement of the persons performance is made by his or her supervisor or possibly by a consensus of various individuals with whom he or she comes into contact on a regular basis. If the jobholder has a good working relationship and good personal rapport with those who judge his or her performance, they will probably give a good performance evaluation, and vice-versa. In either case, very few people feel .comfortable in entrusting their future to political factors. In such situations, the jobholder normally seeks criteria that can be used to point out specific accomplishments to those who evaluate his or her performance.

To a great extent, professional sales trainers fall into these circumstances. The trainer can do an excellent job in conducting programmes, but unless there are criteria that can be used to show his or her accomplishments, evaluation of the trainers performance must be based upon a consensus of sales managers and the trainers supervisors. Surprisingly, many sales trainers and sales training managers depend to a great extent upon such a consensus when it is time for their performance to be evaluated. On the other hand, many professionals in the sales training field prefer to set up standards of performance by which to be judged, thus reducing the impact of politics on their career development. Most firms, that evaluate sales training personnel, use some or all of the following criteria: Sales trainee tests: These tests are given to trainees before and after sales training to measure how much of the training material was retained. This factor has been judged to be a partial measure of the effectiveness of the trainer. Questionnaires: Trainees fill out prepared forms dealing with the organization, preparation and general effectiveness of the training programme. The participants in effect rate their trainers in a manner similar to Professors evaluations given at many colleges and universities. Trainer evaluation forms: These forms are completed by the participants and have reference to teaching attributes of trainers such as personality, enthusiasm, voice characteristics and other evaluation criteria. Programme appraisal: Participants complete forms that refer to the training course. Aspects of the programme such as subjects taught, length of course, training techniques and other programmatical elements are rated for effectiveness. Observations by supervisors: In some organisations, the Training Director observes training sessions and rates the trainers performance based on pre-determined criteria. The primary disadvantage of this method is that several visits are required for each trainer and the process becomes very time consuming for the Training Director. These and other criteria are used to evaluate trainers. In local field situations, formal evaluation of training effectiveness is seldom required by the branch managers immediate supervisor. Instead, the branch manager must develop his or her own criteria that will point out the relative effectiveness of branch sales training. Most managers find that the performance of individual salespeople is the most valid measure of training success. In the final analysis, the sales managers success will be greatly influenced by how well the sales training function has been performed. Therefore, it is incumbent upon him or her to maintain on-going sales training with tight follow-up procedures.

Performance and development: Actual performance of all sales trainees, over a period of time, should be the most objective performance measure for sales professionals at any levels. There is an old proverb Proof of the pudding is in eating. Actual results, adherence to laid-down performance standards, specific success stories concerned with combating competition etc. will be the basic hallmarks of any sales management team (SMT), which will review, say after one year of recruitment-selection-training-deployment, to what extent the new recruits have actually performed in the market place. For existing sales professionals also, at different levels, compliance with specific targets will be the major factor for their salary increase and much sought-after promotions. More specifically, to judge any sales training programme, the performance evaluation by senior sales and marketing professionals can be as follows: Periodic review of actual performance: * Short term: After a set of training programmes, over, say, 3-6 month long period, each sales persons job compatibility with the market-level scenario must be understood and recorded for evaluation of both sales training programmes, as well as performance of each sales person. Specifically, after every training programme of any duration, a Feedback format is circulated to assess each trainers professional competence on aspects like: -Clarity of contents -Relevance to real-life sales performance -Methodology design for knowledge upgradation -Clarity in communication -The overall personality profile of the sales trainers. -Other issues can also be considered. Based on the above evaluation, future sales training programmes will be held or otherwise modified. If needed, present sales trainers can be replaced by more effective knowledge disseminators. *Mid-term: In many organisations, both internal, as well as external trainers design and conduct Packaged training programmes, which include a combination of theoretical classes, on-the-job guidance and counselling, on-the-spot hand-holding and problem solving. This type of comprehensive training programme may even be evaluated after one year of the start-up of the planned training programmes. * Long term: Training and development are synonymous activities, which need to be planned and imparted from time to time. Besides knowledge upgradation, aspects like improving personality profiles of sales persons, increasing their self-respect and self-confidence via planned aggressive and effective presentations, clearly defined planning and implementation schedules need to be inculcated amongst new, as well as experienced sales professionals.

Facing the market, as well as competition can not be achieved in a day. For this, all sales trainers have to invest considerable time and energy for overall development of all sales professionals, who alone are the only revenue earners of any sales/marketing oriented organisation. In the final analysis, therefore, actual performance and output will be considered to be the most important criterion for judging the efficiency and effectiveness of any sales training programme.

Correlation between sales growth and personal career progression: Purpose of any sales training programme within and/or outside the class rooms is to equip all sales trainees, as well as sales executives with clearly defined knowledge regarding the product market scenario, competition, the organisation and what all are expected from each sales person. Alongwith the quality and quantity of needed information, the management have also to consider the career progression of concerned sales men and women. The latters motivation, at the personal level, therefore, needs to be balanced by actual contribution of all sales persons to the firms coffers. Knowledge by itself is not enough. It has to be successfully implemented and utilised regularly, over specific time periods, to ensure: -Survival and growth of the organisation, as a whole -Customer-level satisfaction -Improve and maintain loyalty of satisfied sales personnel, who are encouraged to give their best while working within a healthy, compatible work environment, where they can achieve their objectives. Influence of Working environment Professor Herzberg has clearly advocated a combination of Hygiene and non-hygiene factors, which are both necessary, in right proportions, to ensure employee-level satisfaction and their retention in the long term. Therefore, development of a suitable work environment is also a major necessity to improve and maintain the morale/ of all sales professionals, who are challenged to give their best while working in a healthy work environment.

Variable five: Effective time management of all field sales personnel. Level of sales personnel versus the product type will influence the allocation of a sales persons effective time and its availability and actual implementation. For example, very broadly, three major centres are relevant for a sales managers time management: Actual field selling time. This should be the focus area for front line sales personnel. Administrative responsibilities, which vary depending on the sales persons level, authority and responsibilities. This should also include aspects like:* Sales forecasting, * Planning and control, * Budgeting, * Training and motivation of people working with him, * Inter phase with other departments within the firm, * Public relations, * Formal reporting system: Within company and outside planned communication, both written and verbal. Aim is to build up a marketing information system, over a period of time, based on customer interactions.

The sales person is the major revenue earner in a firm. He or she earns this by satisfying customers, prospects and dealers. Hence, to the extent possible, maximum time and energy should be rationally allocated to interact with buyers and users, as well as dealers. In many firms (example: pharmaceutical firms in India), depending on their management levels, all sales personnel should be given specific monthly norms for field level operations, even for senior sales personnel. The selling time consists of: i) ii) iii) Actual interactions with the buying population. Travelling time, Waiting time, especially for developmental cold calls, many of which may not be productive, at least to start with.

Within the sales office, records should be kept, person wise on all the above. In a recent study by the author, based on sales and service engineers reports only for capital plant and equipment, it was calculated that less than 40 percent of their total, usual monthly time (25 working days in a month at 8 hours per day) of 200 working hours is invested in organizing actual customer contacts!! Out of this, only a fraction of the time was allocated to:Developmental prospects And Obtaining competitive data. The sales manager must plan, control and motivate to ensure optimum contacts with the buying population.

Variable six: optimization of selling efforts in a branch level operation. The sales manager needs to organize adequate back up support. Aim is to free the field sales personnel as much as possible to enable optimum actual sales contacts with buyers users and dealers, only from whom revenue can be generated. Starting from phone calls, fixing appointments, obtaining timely information from customers, prospects and dealers to sales people to minimising administrative duties (short and to the point call reports; minimum number of weekly, monthly and quarterly reports; timely feedback on all ageing statements on accounts receivables etc.) all should be organized by the branch level assistants and Recorders, who should also look after xeroxing, receiving and sending out e-mails, fax messages. Their outstation travelling arrangements need to be organized by office staff for optimum time management. A regular internal irritant and often debilitating payment delaying activity of branch level accountants frustrates sales people, whose expense vouchers, strictly as per laid down in company policies, need to be regularly paid say on every Saturday afternoon. Often enough, id - ego of the administrative back up staff frustrates and even hampers planned work plans of field level sales personnel, who must be kept as free as possible to do what they are meant to do ie sell, develop, obtain information, collect money and go back to the selling cycle, so that customers are kept satisfied. Theoretically, all the above are correct and understood, but, in more cases than not, not implemented. A major internal problem is lack of team spirit, motivation and ultimately leadership.

The personal in depth experience of Dr.PKG, over a decade of sales experience in India, has proved, quite conclusively, that, often enough, convincing the internal staff and colleagues for, say, organizing timely deliveries becomes a much tougher task than convincing a customer to give orders and pay in time!! The branch sales manager, therefore, has to be a rare combination of thinker, planner, doer and, most important of all, an internal team leader and motivator, who rewards good deeds, but punishes all concerned for all those, who are callous, negligent and loner and selfish workers or even self motivated for personal gains only. Dr.PKG has even seen branch sales managers stand up before senior head office level personnel, who may have come in with often justified complaints against erring sales persons for not submitting, in time, for example, timely monthly reports!! The purpose is not to justify wrongful deeds, which hamper companys plans and programmes. However, A cow, which gives milk regularly its tantrums may have to be tolerated at occasional intervals. Here, leadership is all about providing employee protection and ensure profitability for the firm. Plus, a feeling of team spirit becomes very important for hard working sales personnel. The sales managers, therefore, need to build up team spirit, where a lone, even excellent executive does not stand any chance in a highly competitive scenario. May be a weekly afternoon meeting needs to be organised, where all concerned must be present to plan for future performances. Plans can be analyzed and actions taken on what all needs to be done. In many firms, head office level staff specialists are invited to participate, give their views and even receive very valuable market information for their own knowledge enrichment. All in all, in lieu of dry, often incomplete written reports, the entire sales and service team can be motivated to work in unison rather than at loggerheads, which, unfortunately, is prevalent in many Indian organizations, where functional and departmental priorities are given more importance by departmental heads, as against laid down organizational priorities. Id, jealousy, onemanship all come into play to strike discordant notes the unfortunate Political factors to be controlled. The sales managers, especially at the branch operating levels, have a major role to play to organize, motivate, staff, train and control his/her respective staff. Over riding objective should be to ensure customer satisfaction and thereby gain and somultaneously maintain market leadership and keep their internal sales staff motivated. Variable seven: compensation package. Monetary compensation, direct incentives (both formal and informal), combination needs to be designed to ensure adequate safety, protection and even challenge to job specific executives. In most consultative and technical selling, long lead times are needed to convert a prospect to a customer. Hence, both hygiene and non hygiene factors need to be built in to encourage often frustrated technical specialists, whose hit rate (success) is usually very low, at least to start with. In commercial and direct selling jobs, in many instances, field sales persons refuse steady fixed monthly salaries, since they are ambitious enough to earn much more on commissions often to be reimbursed on a daily basis ! This is good for a selling firm, which need not be saddled with crippling monthly over heads.

An example: Eureka Forbes is a shining example of a direct selling company, which markets consumer durables on a door to door basis. Their working day may start at 6 AM and often, with a few hours in between break, continue till 10 PM without any holidays. It is a back breaking, very tough physical job, which needs real go getters to reach their monthly quota(s). Besides a low monthly salary, these hard hitting, superbly trained sales persons earn very healthy commissions on all collections. Persuasive ability and perseverance of these usually healthy young people are the major hall-marks of this type of sales person, whose academic qualifications are not usually too high. Neither are these qualifications needed. Actually too high academic qualifications, for many direct selling functions, may even be a deterrent for building long term loyalty amongst sales personnel. In many firms, in yearly conventions, in open forums attended by a firms top management, dealers and important customers, top sales persons of the year are given monetary incentives, special bonuses, free holiday trips for their families besides heady praises and certificates, in front of an usually large gathering. All these are short term Ego boosters. A problem for this type of firm, however, is a very heavy turnover rate of its trained salespersons, who may leave their jobs quite fast on receipt of even marginally better job offers. Hence, a second line of defence has to be kept ready continuously in trained condition. Here, training expenses are usually very heavy. Back up support: There are quite a few other factors, which need to be taken into account. For example, regular back up promotional support will be needed. In few firms and product types, separate developmental teams may have to be stationed, either at head office or regional centres for servicing long term business prospects. Close coordination with local sales people is, however, a must to minimise lack of coordination and build up team spirit. Objective is to free the full time sales people to service regular buyers, users and dealers and concentrate on short term gains and achieve business aims. As and when the developmental efforts are productive, they need to hand over these new customers to regular sales team for direct and regular servicing. Once again, overall coordination by, say, the general manager (sales and marketing) is necessary to optimize these planned new developmental efforts, which will also need from time to time, local level supervision and follow up. Lack of supervision may even lead onto dysfunctional activities again due to inter departmental jealousies and rivalry, which often gets out of control. All in all, quality (education, experience, level of killer instinct), motivation and basic ingrained dedication of salespersons need to be assessed first and then properly trained and nurtured. Like bad advertisement campaigns, dishonest and low spirited, negatively oriented persons can never be effective go getters in the tough sales management field. A very sensitive issue is the process of sales planning, budgeting and monthly / quarterly / half yearly / yearly branch-level target fixation.

Summary
Sales organization is aimed at structuring the total selling set up, starting with the management process of goal setting, fix achievable annual business plan to annual marketing plan to annual sales plan (ASP). This should take into account: Firms existing strengths and weaknesses Present competitive inroads Overall threats and opportunities Existing reach in terms of: (37) Customers, prospects, dealers Present products and services.

Firms present: Present Sales value and volume Profit before tax Market share Market growth Market standing (goodwill) Selling strategy Sales process Selling organization

As compared to the above, firms objectives should also be worked out, at a point of time.

The above comparison will help the management to redesign a number of issues like: Using Igor Ansoffs product market mix concept, go in for: Sales optimization Capacity optimization (new product development) Human resource optimization Concentric and/or non concentric diversification Mix of some of the above strategic moves.

Another move can be needed sales structure reorganization ie Categorise the type of sales job, the selling process and the relative impact needed for each of the following five phases, namely: Prospecting and lead generation Handling objections Sales presentation

Closing sales Follow up and feedback.

The type of sales personnel needed (personality, relevant education and experience) Types of motivation, control and guidance, which have to be planned for and implemented.

Hence, selection of the right sales type will be an important factor, which will depend on needed selling characteristics, all of which will have to be market specific for the target markets to be serviced. Then, building on strength principle, through MCG (motivation, control, guidance), inherent sales traits have to be continuously fine tuned and sharpened so asto ensure an optimal match between the vendors sales representatives and buyer users needs. An Indian example: Need for reorganization of the sales set up. A very well known steel producing unit in Jamshedpur (more than six decades old as on 1999, November) went through drastic reorganization in November, 1999. From a number of layers of sales staff, only three layers ie a much more flat structure was put into practice. From the branch management system, concept of account management, with specific accountability was put to practice. Simultaneously, using ABC analysis, out of a total of 3,000 existing buyers, 200 A parties accounted for 80 percent of yearly sales turnover. Logically, much more emphasis was now given to these major customers. Finally, from the production point of view, to cater to markets needs, 80 percent was tailor made and only balance 20 percent was of standardised specifications. Untill 1999 end, the production pattern was far more continuous (80%) and only 20% was customized. Similar management principle was followed few years later by the giant Steel Authority of India Ltd, a monolithic giant PSU. All sales persons need to internalize: Give the customer what he wants, so that his problems are fully solved, thereby ensuring long term relationship, in mutual benefit. This alone will prove the way to reinforce a firm amongst its targetted end-users, very firmly. Sales force organization needs science, art and the delicate human touch and guidance of all concerned sales managers, who themselves must be thorough field operators themselves, and respected performers. Latter trait is important to enable experienced management train, guide, motivate and control their sales personnel to enable them reach their pre defined, short term objectives.

Key:

PSU:

Public Sector Undertaking

Four caselets Internal organization culture: Its influence on sales productivity Management decision: rationality and sales managers Id: [overall internal working environment] I know everything is an oft repeated statement from many senior sales managers, few of whom, being sophisticated, may not verbalize it but, most definitely, mean it in real life practices. Many top sales people even scoff at new innovations. This author, during his total of three decade long industry experience, followed by full time teaching and research assignments in a number of management institutes, and finally now as a management consultant in India, had interacted quite intimately with hundreds of top, middle level sales professionals and still larger number of operational personnel in a large variety of industries, ranging from pharmaceuticals to industrial/consumer products, services, fertilizer to plastic raw materials, chemicals to steel, office (39) stationery to fisheries, yeast to capital plant and equipment. Even academic institutions evolve around top persons own value systems. Different management styles evolve on separate organizational cultures, which can be: Highly centralized : Low risk takers not too willing to take any uncalled for chances: authority only in hands of top few. Mixed centralized : Mixed basis for any decision making: head office directives, partly influenced by local managers own decision making parameters. Highly decentralized: Cost and price conscious, alongwith acceptable quality level needed. Lot of authority is vested in managers.

Internally, any sales manager, technically speaking, should have an open mind, which needs to combine logic with innate human emotions. firm on options, but soft on people is another way of working out, and then strictly implementing the needed plan of action. Reaching objectives, both internal and external, should, technically, override any other arguments and thought processes. Very unfortunately, personal idiosyncrasies, peer group, usually departmental pressures and the fear of the unknown (resistance to any type of uncontrollable changes) combine to influence several internal sales management decisions, which are often clouded by non rational consideration. Three illustrations have been presented to highlight the qualitative correlations amongst the prevailing firms culture, the individual sales managers psyche, and the final sales related decisions. All these are an integral aspect of effective sales organization.

Caselet one: highly centralized Indian firm This is a very large, Indian family owned organization with multi product, multi unit operations, all over the country, with New Delhi based head office. Family control, from the top, was the final word in all matters. The assistant divisional sales manager (ADSM) Mr. PKG (29 years of age chemical engineer; a relatively new entrant here from a previous, highly professional American organization) was feeling very cramped in carrying out his selling responsibilities. His local boss, Mr MMM, an old timer in this firm (B Sc, pass course, 40 years of age and highly conscious of his status as the local divisional sales manager) sat inside the same room and literally over shadowed PKGs every move, every day from sharp 9 AM onwards! Head office management, conversely, had asked PKG verbally to Keep an eye on MMM and report (by phone) any wayward non rational activities by MMM!! Feeling of mutual mistrust developed and ensured that the two senior managers hated each others guts. Top managements own will and dictum, which arrived every morning by telex from Delhi, was carried out to the letter, partywise for Rationing of all PVC raw materials (which was in short supply at that time)!! PKG also had to handle dealer level sales of fertilizers, which was not in short supply. Due to this internal environmental feeling of mutual hate, disrespect and in fighting under two separate top management camps (one camp was under a very senior, top level director, whose son had married the daughter of the Chairman! The other, younger director had a lot of political clout with Delhis administrative circles), PKG was torn between two loyalties and was totally confused regarding how to service his customers and present dealers all over Western region. His confusion was further aggravated since PKG had spent more than five, very fruitful years in XYZ, an internationally well known, very large highly professional firm with central head office at Mumbai. Latter firms management believed in job clarity and clearly defined responsibilities with adequate, needed back up authority to enable him execute his job. In this new firm, PKG could hardly breathe easily and became very irritated and tension ridden. His normally sweet manners underwent a sea change. He became snappy with his new wife, his junior colleagues and sometimes his mental ill health carried onto customers, prospects and dealers! He and his family suffered. Customers suffered business suffered. Did anyone gain anything? PKG resigned after what he claimed to be: ---Twenty one months of agony in this firm practically robbed me of my self respect, strained relationship with my loving wife, my mental peace and definitely my selling abilities, where I started suspecting my own capacity to be even an average sales officer!! I even thought of switching over to design or production management, since my selling talent, I thought, may even be non existent. Finally, I decided to get out of this terrible, inhuman working environment and regain my sanity and win back my lovely wife!!--- Internal work environment counts very much to develop and bolster employee morale, retain and develop all employees, for whom the work place literally becomes a home away from home. A direct contrast: In many Japanese factories, in/around Tokyo and other important business centres, reportedly, many new mothers came in with their two month old newborns or even younger, who were placed in an adjoining crche supervised by trained nurses. All expenses were to the managements account.

The mothers changed into working overall kept in individual cupboards. After breakfast, they worked from 8.00 AM upto 12.00 Oclock with two hourly break for feeding their babies. From 12.00 2.00 PM, every employee, in shifts, went to their allotted space for having bath, lunch and be with their respective children. At 5 PM, factory buses dropped them to nearest bus or rail stations. A total employee-level work environment was created to ensure productivity and loyalty.

Caselet two: Academic environment in a management institute: A well known management institute, in one part of India operated under one Dr S, a highly (mostly self acclaimed) visible doctor of management philosophy (65 years of age) from Harvard Business School, USA. Under his tutelage, the institutes name, fame prospered. Students, after their MBAs from this institute, mostly received good jobs. Only one major problem persisted, namely very fast turnover of their 20 odd full time Faculty. Even their so called CEOs (chief executive officers) changed at an alarmingly fast pace of three top people in three years of time!! Dr S was nonchalant and went on recruiting new Faculty and CEO(s) equally fast, by offering better and better facilities. Those, who enjoyed sycophancy, became close to Dr S, who sent his Loyal ones to different seminars and conferences, all over the world!! Other freedom loving self respecting Faculty suffered! A Ph D in management, with 30 years of experience all over the country (Dr M) was being considered as a senior, full time professor and may be even as a future CEO, after the tenure of the present incumbent, who had put in his papers and was leaving by end of the current month. Dr M had proved his managerial, teaching and research based knowledge in several organizations and even well known, separate management institutes. Dr S was not only the founder dean, but also the only guiding light in this respected institute. Very unfortunately, in all academic matters, he took the leading role for even syllabi fixation, deciding on teaching modes sometimes without taking the concerned Faculty into confidence! In the process, there was hardly any team work, rapport and individual involvement of the 20 odd full time Faculty, most of whom, reportedly, were on the look out for alternative employment. Without satisfied Faculty (or good sales people for a selling organization), how can a management institute function? To add fuel to fire, Dr S, in his typical high handed way, challenged Dr M regarding latters dissertation output in the highly specialized marketing management area!! Dr S was himself from organization behaviour discipline, which he taught very successfully (Theoretical sections) to the students. Unfortunately, in his own institute, he did not practise what he preached, which he taught sometimes even in many foreign universities. His behaviour was bad, bordering on uncouth, indecent language, which prompted many Faculty literally to stay away from his path. There was zero level internal morale/. In short, internal team spirit was totally lacking in this highly repressive, dictatorial environment. Even the top board of governing (BOG) members did nothing to stall the internal organizational situation. Dr M obviously stayed away from this high place of learning. In contrast, at IIM, Ahmedabad, a leading, top grade B school in India, Professor Mathai, a graduate (of a top UK Institute) in English, with a brilliant ingrained flair for marketing, was the leader in all senses of the word from 1966-1974, two full term as a director. He was loved and respected by all students, faculty, staff, BOG members. He was a representative in the boards of more than 20 large and medium companies!! This institution builder, on his own, decided to call it a

day in 1974, when he announced his decision to resign as a Director at IIMA. When the bewildered BOG members rushed in to question his decision, reportedly, Professor Mathai had stated: ---As an institution builder, for eight years, I have, hopefully, made my contribution. IIMA is now settled, well respected and known to all concerned ie: Government of India Local Government Many leading management institutes in India and abroad Past, present and future, prospective student population Very respected 70 odd full time, extremely brilliant faculty team A fantastic learning environment Tremendous job, research and consultancy opportunities from Indian and foreign institutes and organizations including World Bank. Very well laid out future growth possibilities. Now, you BOG members, you should choose a younger, more rational, stable Director, who can steer steadily in this more settled, and non-turbulent (unlike as in 1966) environment. I feel that I will only be a dead weight, who can channelise his own faculties more for further institution building like the one he went ahead with in later years in Rajasthan as the Jwaja experiment. An enlightened leader can make all the difference, in spite of the leaders own personal Id related problems, which were kept under strict control in this specific case. Effective leadership, in any sphere, can make all the difference between low and high productivity, efficiency and effectiveness. Good sales managers have to be good sales organizers.

Caselet three: highly decentralized working environment In XYZ, earlier mentioned, a highly professional American firm, even youngsters like PKG, during mid 60s, were encouraged to feel at home, from day one. Right from onset, during series of internal, and on the job assignments in the first six months (out of which three months were spent in their two manufacturing plants for total product knowledge), every TSR (technical sales representative) was clearly told that customer satisfaction, retention and further business development would have more than 80% weightage in their own career progression. Balance would be on maintaining company level norms, discipline, adherence to needed payment collection, report writing and overall politeness to peer group personnel. Even satisfied customers opinions were solicited during every TSRs, initially monthly appraisal! Internal work environment was fantastic, informal and everyone was encouraged to call everyone else, even seniors, by their first names! Clearly defined job descriptions were provided. Only drawback was mediocre compensation package, although job stability was reasonably good. All sales personnel felt like giving their best and do something positive for their own company ie loyalty, usually, developed fast. PKG left after five years only because of much higher salary at much higher designation level in another organization. Also, one of his close colleagues, a South Indian, earlier at the same level, was promoted above PKGs level due to rather unclear reasons. Whom to select, train and position in the management hierarchy? Food for thought by any sensible, thinking, proactive top management should be to identify, select and train relevant, needed professionals, who should be in the right slots, backed by adequate authority to discharge clearly defined job based responsibilities. Besides halo effect, few major Id centric consideration of many managements for selection of new people are as follows: Choose only those people, who will toe our present dictum! Mediocre level of people (and not necessarily too high fliers) are consciously selected so that they are not competent enough to outclass existing seniors, few of whom may (then) be moved out to make room for the more innovative types!! Why invite competition, especially internally, unnecessarily? Choose people, who will stay. Is there a possibility that they have no other place to go? Hence, mediocrity, and sometimes even people with much lower education, as well as personality levels (docile, humble and prone to accept orders without questions) may be preferred more than the real go getters!!

A saying: Mediocre people go in for those with similar backgrounds and not opt for thinking professionals, who can become change agents and make a major difference to present way of operational activities. In other words, logically, effectiveness should be encouraged over and above efficiency alone. This author, over three decades of experience, had observed this type of Mediocrity factor being practised in many sales, as well as other departments in those organizations, where final objectives are not clearly spelled out, leading onto ill defined selling strategy and confused day to day tactical issues. Dysfunctional organizational structures, built on past tradition, individual (often family member level) idiosyncrasies and sometimes down right jealousies, result into development of so called internal standards, which are not only confusing, but ensure that only loyalists prosper and actual achievers may be purposely side tracked!! This very unfortunate trend is in practice, even in many academic institutions. How to rebuild? Strong, bold and enlightened leadership is the first starting point. Reliances late Dhirubhai Ambani, General Electrics earlier, 20 year long CEO Dr Jack Welch are prime examples of those movers and shakers, who have made discernible differences in their respective set up(s), by inviting, encouraging and nurturing new visionaries, new knowledge workers, new equally top class creative thinkers to implant their totally new ways of doing the same things in much more effective manner. World class people make world class organizations. Simultaneously, top management have also to keep in mind the following down to earth aspects:

The nitty gritty principle: a consumer non durable example: Caselet four Firms management have formulated their selling strategy based on market research based data. Segmentation to selection of the relevant targets (Based on SWOT analysis) have been done and then finally the decision on positioning has to be put into place. Key criteria like, say, taste and smell [For a new packaged spice in different sizes and types of packages from a well known but regional manufacturer M/s D (Pvt) Ltd, Kolkata], out of several other purchase deciding features, have to be highlighted to prospective users via: Local, reasonably sophisticated dealers, retailers through: attractive [push principle]: Commission structure to ensure bulk take off Gift/coupon schemes Lucky draws Initially, free samples to important, preferably large prospects Shop level quality retail selling and merchandising etc.

Pull strategy: Cooperative, joint advertising in home improvement related journals will be necessary to create first level awareness, which may lead onto interest amongst innovative housewives (the initiators), who may then start the internal mental process of evaluation with existing brands. Very expensive TV showings will have to be cost effective. [Reach vs. cost/viewer] From satisfactory internal (mental) evaluation step to trial, a push is needed to be given to the discerning, hygiene conscious urban, sophisticated, educated housewives (in the middle and upper income strata). M/s Ds management decided to organize: Local level demonstrations, say one or two in many large cooperatives and housing complexes all over the city. [word of mouth, if positive, will be beneficial] Centralized cooking classes were being thought of to invite leaders from different peer groups of ladies (refer: Veblenian sociological model) to come and attend these free training sessions to learn about new cooking recipes, schemes. Obviously, this new expensive spice brand will have to be utilized with adequate fanfare. Give samples to large hotels, restaurants and encourage them to use this brand.

Developmental selling To launch any new product or service to a large yet untapped prospective base, to start with in a test market like Kolkata metropolis, the creative SMT (sales management team) have to use all known scientific base (theories, concepts) like: Key: Market research S.T.P. (based on SWOT; cost benefit analysis) Push and pull principle Veblenian sociological model Stage of the PLC curve etc. STP : Segmentation to targetting to positioning

Sales organization: Its role in new market development Creative awareness creating routes will have to be Hatched by Ds management. This is based on internal brainstorming sessions by motivated sales persons. Problem solving approach will be actively used to arrive at the optimal mix of tactical routes for implementation of their sales plans. PLC curve will be highly relevant. For example, around the trial stage of housewives mental evaluation process, local availability will be very much needed. A pre purchase push by the effective and suitably trained dealers salespersons (properly motivated) will go a long way to help the sitting on the fence prospective buyers and users to try out the new expensive spice brand. Hence, dealers salespersons have to be properly trained and motivated and kept motivated. Companys own full time sales persons will have to be in constant touch, on a daily basis, with dealers sales personnel, who can make or break the success of any consumer brand, especially in a highly competitive scenario. Equally important will be the visibility factor for shop level merchandising. Different strategies for different selling scenario have to be planned for, organized, implemented in a systematic and scientific manner. Internal control, staffing, direction (motivation, training) will all be needed to assess actual versus planned standards. If needed, sometimes mid term course correction (changes in non basic tactical routes) have to be quickly merged with main stream push and pull strategies. The SMT have to be on their toes all the time. There is no room for any complacency at any time. Personal selling capabilities will be needed more for high value, infrequently bought items, as also for the downright opposite ie direct selling. Integrated sales management system, however, will be applicable for all selling situations. Degree, intensity of the promotools, for example, will be dependent on the specific sales situation. Key: SMT : Sales management team