BRANDING AND PACKAGING

BRAND
Brand is the "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company. A brand is the most valuable fixed asset of a Corporation.

The Benefits of Branding

Memorability: A brand serves as a convenient container for a

reputation and good will. Loyalty: When people have a positive experience with a memorable brand, they're more likely to buy that product or service again than competing brands. The brand identity helps to create and to anchor such loyalty. Familiarity: Branding has a big effect on non-customers too. Psychologists have shown that familiarity induces liking. Consequently, people who have never done business with you but have encountered your company identity sufficient times may become willing to recommend you even when they have no personal knowledge of your products or services

 Premium image, premium price: Branding can lift

what you sell out of the realm of a commodity, so that instead of dealing with price-shoppers you have buyers eager to pay more for your goods than for those of competitors. Extensions:With a well-established brand, you can spread the respect you've earned to a related new product, service or location and more easily win acceptance of the newcomer.

 Greater company equity: Making your company into

a brand usually means that you can get more money for the company when you decide to sell it. Lower marketing expenses: Although you must invest money to create a brand, once it's created you can maintain it without having to tell the whole story about the brand every time you market it. For consumers, less risk: When someone feels under pressure to make a wise decision, he or she tends to choose the brand-name supplier over the no-name one.

TYPES OF BRAND

FAMILY BRAND
Family branding is a marketing strategy that involves selling several related products under one brand name. Family branding is also known as umbrella branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity. Example : Tata group of Companies

INDIVIDUAL BRAND
Individual branding, also called individual product branding or multi branding, is the marketing strategy of giving each product in a portfolio its own unique brand name. This contrasts with family branding, corporate branding, and umbrella branding in which the products in a product line are given a single overarching brand name. The advantage of individual branding is that each product has an image and identity that is unique. This facilitates the positioning of each product, by allowing a firm to position its brands differently.

INDIVIDUAL BRAND Examples of individual product branding include Procter & Gamble, which markets multiple brands such as Pampers, and Unilever, which markets individual brands such as Dove.

STRONG Vs WEAK BRAND

Strong brand
More awareness & loyalty. Can easily launch extensions. Provides defence against price

Weak brand
No awareness and less loyalty Cant launch extensions. Does not provide defence

competition. Will have more trade leverage in bargaining with distributors and customers. Brand name carries high credibility

against competition. Will have less trade leverage in bargaining with distributors and customers. Brand name does not carry high credibility.

Definition of Packaging
Packaging is defined in the regulations as "all products made of any materials of any nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer.
The main packaging materials included in the regulations are: paper/fibre board, plastic Glass, steel ,aluminium

FUNCTIONS OF PACKAGING
Protection
Appeal

Convenience
Perform

Identification

Advantages of packing
Protection: The basic benefit of packaging is the protection of

goods to be sold. It prevents damage during transport and storage from the elements, vibration and compression through a physical layer of protection. Information: Packaging can provide information to a consumer regarding the product contents. This information may be promotional, factual or mandated by consumer law. Containment: Products that contain multiple items use packaging to keep all items contained prior to purchase. Product containment also allows a product to be sold in larger quantities.

 Size and Quantity: Packaging can control the size and

quantity of a product. Portion control helps control inventory, create product consistency and can help regulate prices. Marketing: Packaging is the front line of marketing. Through design and marketing communications, packages can help sell a product and differentiate it from similar products. The packaging can also help promote product branding. Security: Product security can be provided through packaging. Packing can make items tamper-resistant, can help reduce theft and can help prevent harm from dangerous products.

PULL STRATEGY
A pull strategy involves motivating customers to seek

out your brand in an active process. Examples of pull tactics Advertising and mass media promotion Word of mouth referrals Customer relationship management Sales promotions and discounts

PUSH STRATEGY
A push promotional strategy involves taking the product

directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase. Examples of push tactics Trade show promotions to encourage retailer demand Direct selling to customers in showrooms or face to face Negotiation with retailers to stock your product Efficient supply chain allowing retailers an efficient supply Packaging design to encourage purchase Point of sale displays

PULL PUSH STRATEGY

ADVERTISEMENT & PUBLICITY

Advertising and publicity are two very different

communication tools, even though both employ the mass media as a vehicle for reaching large audiences.

Traditionally, most marketers placed heavy reliance on

advertising and only occasionally used publicity. On the other hand, public relations practitioners have primarily relied on publicity--or, as they sometimes prefer to call it, media relations--and only rarely used advertising. Advertising buys its way into the media.

 Publicity is presented by the media because it's

"newsworthy. For years the conventional wisdom was that the biggest advantages of publicity were the lack of direct cost and the apparent "third-party endorsement" effect. It's not necessary to buy media space/time, but publicity is not totally free. There are salary and production costs involved in having someone prepare news releases or perform other publicity work.

Used together, ads and publicity can create a powerful synergy.

PROBLEMS OF THE ADVERISEMENT

Knowing the audience type & size
Planning for the cost effective media Copy testing

o Basic theme, idea, headline, pretesting the effect

of repetition to stimulate a campaign Testing the advertisement effectiveness o Creation of brand awareness o Educating the customers about the product o Creating the corporate image

SALES PROMOTION
Sales Promotions are inducements or gimmicks

whose purpose is to encourage the purchase of a product/service immediately. Unlike advertising, where the objective is usually to influence long-term buying behaviour, sales promotions are concerned with the short-term. A problem with promotions is that they sometimes cause consumers to focus more on the promotion than the product. In fact, sometimes consumers are not at all loyal to the product but are attracted to the coupon, gift, or rebate.

OBJECTIVES OF SALES PROMOTION

To increase sales
To meet competition To encourage the present customers to buy more

To induce the dealers to stock more

To introduce a new product Temporary price reduction Coupons, gifts etc Distributing samples Displays

DIFFERENCE BETWEEN ADVERTISEMENT AND PUBLICITY

Advertising is paid form of ideas, goods and services while publicity is not paid by the sponsor.
Advertising comes from an identified sponsor

while publicity comes from a neutral and impartial source. Advertising is controllable by the organisation while publicity is not controllable because it comes from a neutral source.

 Advertising is less credible in comparison to

publicity while publicity is more credible because it comes from an impartial source. Advertising is what you or your organisation says and promotes about you or your organisation but publicity is what others say for you or your organisation.

 Advertising always carries a positive

message about your organisation because it is the content you pay for but publicity can be positive or negative because it comes from an impartial source. In advertising you have full chance to show your creativity but in publicity creativity is limited because it comes from non paid source.

 Advertising is targeted to the

particular audiences by the sponsor while in publicity it is not focused. Most of the times in advertising social responsibility is ignored while in publicity special focus is given on social responsibility.

PROMOTION BUDGET
Percentage Method: This approach is the most

common used in businesses. This method involves setting a budget by percentage of sales, sales goals or gross mark up. The percentage used can be derived from your companys past performance and/or industry standards. This approach is usually the best option for most organizations because the goal is tied directly to increasing revenue. This method bodes well for creating a comprehensive annual plan.

 Goal-and-Task Method : This approach is developed

by defining specific goals, determining the tasks needed to achieve these goals and then estimating the costs of performing these tasks. This method is common with long-term objectives like increasing market-share or increasing a brand name's top-ofmind awareness. Zero Method This method involves keeping the marketing investment as close to zero as possible.

 Whats-in-my-Wallet Method :This method involves

planning marketing promotions month-to-month by whats available rather than by whats the sales goal. This approach may hold back revenue opportunities because of the lack of planning. However, this method is common because some companies look at marketing as an expense rather than as an investment. Based-on-my-Competitor Method : This method is based on a strategy to invest less, the same or more than a competitor. A company using this method may be at a disadvantage because they are at the mercy of their competitions spending patterns rather than their own goals.

PERSONAL SELLING
Face-to-face selling in

which a seller attempts to persuade a buyer to make a purchase. Its an oral presentation in conversation with one or more prospective purchasers for the purpose of making sales..

FEATURES OF PERSONAL SELLING

High pressure selling
It is persuasive It is winning the buyers confidence It aims to provide service to the buyers Provides mutual benefits

It is an education process
It is a creative process

POINT OF PURCHASE PROMOTION

These are special displays, banners, stickers placed in

the retail store to support the sale of a brand. They are also called WINDOW DISPLAY. Objectives: a) To create awareness b) To create attraction c) To encourage customer d) Helps as an additional tool to the advertisement

PROMOTIONAL MIX
o Advertising - Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor.
o Personal selling - Personal presentation by the firms sales force for the purpose of making sales and building customer relationships. o Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service.

o Public relations - Building good relationships with the companys various publics by obtaining favourable publicity, building up a good "corporate image", and handling or heading off unfavourable rumours, stories, and events.
o Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

ASPECTS OF PROMOTIONAL MIX

SALES FORECASTING
Sales Forecasting is the process of estimating what your businesss sales are going to be in the future. Sales forecasting is an integral part of business management. Without a solid idea of what your future sales are going to be, you cant manage your inventory or your cash flow or plan for growth. The purpose of sales forecasting is to provide information that you can use to make intelligent business decisions.

IMPORTANCE OF SALES FORECASTING

Helps to assess the cash inflows & outflows
Helps to segment the new markets Provides the clues to change the market

strategy Provides the essential financial decision to sale in terms of sales revenue and sales expenses required.

OBJECTIVES OF SALES FORECASTING

There are mainly two types of objectives . They are

long term and short term. Short term: Formulation of suitable production policy Provision of raw material Appropriate pricing policy Regular availability of labour Forecasting the short term financial requirements Setting of sales targets

 Long term:
Estimating cash inflows Determining dividend policy

Main power planning

Planning of plant capacity Budgetary control over expenses

Forecasting long term financial requirement

METHODS OF SALES FORECASTING

TIME SERIES ANALYSIS METHOD: The time series analysis method predicts the future sales by analyzing the historical relationship between sales and time. Although the actual number of years included in a time series analysis will vary from company to company, as a general rule, managers should include as many years as possible to ensure that important sales trends do not get undetected.

SALES FORCE ESTIMATION METHOD: The Sales Force Method is a sales forecasting technique that predicts future sales by analyzing the opinions of sales people as a group. Salespeople continually interact with customers, and from this interaction they usually develop a knack for predicting future sales. As with the jury of executive opinion method, the resulting forecast normally is a blend of the informed views of the group.

 The sales force estimation method is considered very

valuable management tool and is commonly used in business and industry throughout the world. This method can be further improved by providing sales people with sufficient time to forecast and offering incentives for accurate forecasts. Companies can make their sales people better forecasters, by training them to better interpret their interactions with the customers.

Jury of Executive Opinion Method: In the Jury of executive opinion method of Sales Forecasting, appropriate managers within the organization assemble to discuss their opinions on what will happen to sales in the future. Since these discussion sessions usually resolve around hunches or experienced guesses, the resulting forecast is a blend of informed opinions. A similar, forecasting method, which has been developed recently is called the DELPHI Method. Delphi Method also gathers, evaluates, and summarizes expert opinions as the basis for a forecast, but the procedure is more formal than that for the jury of executive opinion method.

The Delphi Method has the following steps; STEP 1 Various Experts are asked to answer, independently and in writing, a series of questions about the future of sales or whatever other area is being forecasted. STEP 2 A summary of all the answers is then prepared. No expert knows, how any other expert answered the questions. STEP 3 Copies of summary are given to the individual experts with the request that they modify their original answers if they think it necessary.

 STEP 4 Another summary is made of these

modifications, and copies again are distributed to the experts. This time, however, expert opinions that deviate significantly from the norm must be justified in writing. STEP 5 A third summary is made of the opinions and justifications, and copies are once again distributed to the experts. Justification in writing for all answers is now required. STEP 6 The forecast is generated from all of the opinions and justifications that arise from step 5.

OTHER COMPLEX SALES FORECASTING METHOD

Statistical Correlation Method: Is there a link between a

firms advertising expenditure and sales? Is there a link between discounts to wholesales and orders? Correlation measures these sort of relationships. A firm may be examining 2 variables, and trying to study the relationship that may exist between the two. A simple example might be the amount spent on TV advertising for a product and sales of the product. Regression method explains the cause effect

relationship between two variables.

The method is more accurate than other methods.

Market test method: Test marketing involves testing consumers response to a product, before the full release of the product. Test marketing can involve release in a limited geographical area, or to a small section of the target market. For example many movies, before they are put on general release, are test marketed, (by being shown to invited audiences), and if the response of the test marketing process is negative then changes can and are made to the movies. The response of the test market groups are used to judge if the in-house research, and opinions are applicable within the target market, and whether adjustments need to be made to the product for sales forecasts to become achievable.

SURVEYS OF CONSUMERS INTENTIONS

This method of forecasting predicts the future by asking people directly what they intend to do in the future. There are a number of large market research firms that are continually gathering information of this sort. They may ask consumers questions like do you intend to switch to digital TV in the next month, 3 months, 6 months, year, or later , or in a years time do you expect to be better off, worse off, or in the same financial situation. The results of these surveys allow firms to predict sales patterns.

Other methods are Econometric model Life cycle model Input Output model.

Sales and operations planning

Sales and operations planning (S&OP) is an integrated business management process developed in the 1980s by Oliver Wight[1] through which the executive/leadership team continually achieves focus, alignment and synchronization among all functions of the organization. The S&OP planning includes an updated forecast that leads to a sales plan, production plan, inventory plan, customer lead time (backlog) plan, new product development plan, strategic initiative plan and resulting financial plan. Plan frequency and planning horizon depend on the specifics of the industry. Short product life cycles and high demand volatility require a tighter S&OP planning as steadily consumed products.

SALES PLANNING VS SALES FORECASTING

A sales plan and a sales forecast are essentially the same, however the big difference is one is a set plan for the whole year. It is mostly used with larger corporations to single out units. A sales forecast is set at the store/branch level and is there to help with the changing situations (ie weather, natural disasters, and the such) A plan is what you are going to do and a forecast is what you think is going to happen. There should be a link between the two, but you may not have the capacity to make all that you could sell.

RETAILING
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, doorto-door or by delivery.

Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public. Shops may be on residential streets, streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.

FUNCTIONS OF A RETAILER
Buying: A retailer buys a wide variety of goods from

different wholesalers after estimating customer demand. He selects the best merchandise from each wholesaler and brings all the goods under one roof. In this way, he performs the twin functions of buying and assembling of goods. Storage: A retailer maintains a ready stock of goods and displays them in his shop. Selling: The retailer sells goods in small quantities according to the demand and choice of consumers. He employs efficient methods of selling to increase his sales turnover.

 Grading and Packing: The retailer grades the goods which are not graded by manufacturers and wholesalers. He packs goods in small lots for the convenience of consumers.
Risk-bearing: A retailer always keeps stock of goods in anticipation of demand. He bears the risk of loss due to fire, theft, spoilage, price fluctuations, etc.

 Transportation: Retailers often carry goods

from wholesalers and manufacturers to their shops. Financing: Some retailers grant credit to customers and provide the facility of return or exchange of goods. In some cases, home delivery and after sale service are provided by retailers.

 Sales promotion: A retailer displays goods. He carries

out publicity through shop decoration, window display, etc. He maintains direct and personal contacts with consumers. He persuades consumers to buy goods through personal selling. Information: Retailers provide knowledge to consumers about new products and uses of old products. They advise and guide consumers in better choice of goods. They also provide market information to wholesalers and manufacturers.

INTERMEDIARY
An intermediary (or go-between) is a third party that offers intermediation services between two trading parties. The intermediary acts as a conduit for goods or services offered by a supplier to a consumer. Typically the intermediary offers some added value to the transaction that may not be possible by direct trading. Intermediary is a person or group who stores valuables in trade until they are needed, parties to the barter or others have space available to take delivery of them and store them, or until other conditions are met. In a larger sense, an intermediary can be a person or organization who or which facilitates a contract between two other parties.

TYPES OF INTERMEDIARIES
Agents: The agent as a marketing intermediary is an independent individual or company whose main function is to act as the primary selling arm of the producer and represent the producer to users. Agents take possession of products but do not actually own them. Agents usually make profits from commissions or fees paid for the services they provide to the producer and users.

 Wholesalers: Wholesalers are independently owned firms that take title to the merchandise they handle. In other words, the wholesalers own the products they sell. Wholesalers purchase product in bulk and store it until they can resell it. Wholesalers generally sell the products they have purchased to other intermediaries, usually retailers, for a profit.

 Distributors: Distributors are similar to wholesalers, but with one key difference. Wholesalers will carry a variety of competing products, for instance Pepsi and Coke products, whereas distributors only carry complementary product lines, either Pepsi or Coke products. Distributors usually maintain close relationships with their suppliers and customers. Distributors will take title to products and store them until they are sold.

 Retailers: A retailer takes title to, or

purchases, products from other market intermediaries. Retailers can be independently owned and operated, like small mom and pop stores, or they can be part of a large chain, like Walmart. The retailer will sell the products it has purchased directly to the end user for a profit.

WHY USE MARKET INTERMEDIARIES?

Because of their large part in distributing and promoting the product, market intermediaries have significant influence on sales and customer demand. With so much riding on marketing and distribution, market intermediary firms have just as much vested interest in the success of a product as the manufacturer. Therefore, they work hard to ensure the product and the company have a successful end result.

IMPORTANCE OF INTERMEDIARIES
Direct contact with buyers
Promotional schemes can be introduced with retailers. Helps to create time utility.

Acts as a barometer of the economy.

Producer is not required to maintain a large stock of

goods. Bulk purchase can lead to large scale production Important market related information is provided by the intermediaries to the producers

PHYSICAL DISTRIBUTION OF GOODS

Physical distribution management (PDM) is

concerned with ensuring the product is in the right place at the right time. Physical Distribution Management (PDM) involves controlling the movement of materials and goods from their source to their destination. It is a highly complex process, and one of the most important aspects of any business. PDM is the "other" side of marketing. While marketing creates demand, PDM's goal is to satisfy demand as quickly, capably, and cheaply as possible.

COSTS INVOLVED IN PHYSICAL DISTRIBUTION OF GOODS

Customer serviceWhat level of customer service should

be provided? TransportationHow will the products be shipped? WarehousingWhere will the goods be located? How many warehouses should be utilized? Order processingHow should the orders be handled? Inventory controlHow much inventory should be maintained at each location? Protective packaging and materials handlingHow can efficient methods be developed for handling goods in the factory, warehouse, and transport terminals?

DISTRIBUTION
There are two types of distribution. They are as follows

Direct (distribution of goods through personal selling, own retail shops) Indirect (distribution through intermediaries)

DIFFERENCE BETWEEN DIRECT AND INDIRECT MARKETING

Direct marketing - any form of marketing that generates results and is targeted to a specific individual / consumer. Direct marketing is when consumer gets to hear about the product or service from a person. Direct marketing like door to door campaigns or super market stands are much more useful . Direct marketing is less costly.
Indirect marketing - marketing that is meant and targeted towards a large group of people. Example: TV commercials, billboards, radio ads. In-direct marketing is when costumer hears or reads about it from a advertising poster, radio etc.

DISADVANTAGES OF DIRECT MARKETING

Sometimes, direct mailing offends the customers and many do

not endorse it as they say it inhibits their private lives. Direct marketing also carries many disadvantages. One of the main disadvantages of direct marketing is the demand from consumers to end unsolicited contact from companies. Consumers do not appreciate privacy intrusion or the sheer mass of communication, referred to as spam or junk mail, received on a daily basis. Other disadvantages include generating poor quality leads and failing to bring a high number of repeat customers. Much like direct marketing, many consumers resent telemarketing and take the necessary steps to block telemarketing attempts, such as opting out of calling lists

SCOPE OF MARKETING
Scope of marketing includes the following: I. Marketing research II. Branding & packaging III. Storage IV. Transportation V. Insurance VI. Advertisement VII. After sales service

VARIABLES AFFECTING THE DISTRIBUTION DECISION

Factors Pertaining to the Product: Price of the Product. The products of a lower price have a long chain of distributors. As against it, the products having higher price have a smaller chain. Very often, the producer himself has to sell the products to the consumers directly. (2) Perishability. The products which are of a perishable nature need lesser number of the intermediaries or agents for their sale. Under this very rule, most of the eatables (food items), and the bakery items are distributed only by the retail sellers.

 Size and Weight. The size and weight of the products

too affect the selection of the middlemen. Generally, heavy industrial goods are distributed by the producers themselves to the industrial consumers. Technical Nature. Some products are of the nature that prior to their selling, the consumer is required to be given proper instructions with regard to its consumption. In such a case less of the middlemen arc) required to be used.

Goods Made to Order. The products that are manufactured as per the orders of the customers could be sold directly and the standardized items could be sold off only by the middlemen.
After-Sales Service. The products regarding which the after-sales service is to be provided could be sold off either personally or through the authorized agents.

Factors Pertaining to the Consumer or Market: Number of Customers. If the number of customers is large, definitely the services of the middlemen will have to be sought for. As against it, the products whose customers are less in number are distributed by the manufacturer himself. Expansion of the Consumers. The span over which are the customers of any commodity spread over, also affects the selection of the channel of distribution. When the consumers are spread through a small or limited sphere, the product is distributed by the producer himself or his agent. As against it, the goods whose distributors are spread throughout the whole country, for such distributors, services of wholesaler and the retailer are sought.

 Size of the Order. When bulk supply orders are received from the

consumers, the producer himself takes up the responsibility for the supply of these goods. If the orders are received piece-meal or in smaller quantities, for it the services of the wholesaler could be sought. In this way, the size of the order also influences the selection of the channel of the distribution. Objective of Purchase. If the product is being purchased for the industrial use; its direct sale is proper or justified. As against it, if the products are being purchased for the general consumption, the products reach the consumers after passing innumerable hands. Need of the Credit Facilities. If, for the sale of any product, it becomes necessary to grant credit to any customer, it shall he helpful for the producer that for its distribution, the services of the wholesaler and retailer businessmen be sought. In this way, the need of the credit facilities too influences the selection of the channel of distribution.

Factors Pertaining to the Middlemen; Services Provided by Middlemen. The selection of the middlemen be made keeping in view their services. If some product is quite new and there is the need of its publicity and promotion of sales, then instead of adopting the agency system, the work must be entrusted to the representatives. Scope or Possibilities of Quantity of Sales. The same channel should be selected by means of which there is the possibility of more sales.

 Attitude of Agents towards the Producers'

Policies. The producers generally prefer to select such middlemen who go by their policies. Very often when the distribution and supply policies of the producers being disliked by the middlemen, the selection of middlemen becomes quite limited. Cost of Channel of Distribution. While selecting the channel of distribution, the cost of distribution and the services provided by the middlemen or agents too must be kept into consideration. The producers generally select the most economical channel.

Factors Pertaining to the Producer or Company: Level of Production. The manufacturers who are financially sound and are of a larger category, are able to appoint the sales representatives in a larger number and thug could distribute the commodities (products) in larger quantities. As against it, for the smaller manufacturers, it becomes necessary to procure the services of the wholesalers and the retail traders Financial Resources of the Company. From the financial point of view, the stronger company needs less middlemen. Managerial Competence and Experience. If some producer lacks in the necessary managerial experience or proficiency, he will depend more upon the middlemen. The new manufacturers in the beginning remain more dependent upon the middlemen.

Other Factors: Distribution Channel of Competitors. While determining the channel of distribution, the channels of distribution of the competitors too must be borne in mind. Social Viewpoint. What is the attitude of society towards the distribution, this fact too must be kept into consideration while selecting the middlemen. Freedom of Altering. While selecting the agents, this fact too must be kept into mind that in case of need, there must be the liberty of changing or replacing the agents (middlemen).

ROLE OF DISTRIBUTION CHANNELS

Searching out of buyers and sellers Matching goods to the requirement of the market Offering products in the form assortments Persuading & influencing the prospective buyers Implementing the price strategies Looking after all physical distribution functions Searching & probing new markets Offering presale & after sale services Providing new technology to customers Collection of feed back and new information Providing credit to retailers & consumers Bearing risk of stack & transport

COMPONENTS OF PHYSICAL DISTRIBUTION

The major job elements or decisions made in PDM are: Optimal location and arrangement of fixed storage facilities such as the warehouses, depots, or supply centres so as to provide the customer/s with the desired product/s. Typical questions to be answered are: How many depots/supply centres? Of what sizes? Where should they be located? How should different customers be supplied from the different depots/supply centres? Inventory Control Systems and policies in these depots/ supply centres Optimal management of the transport/ shipment of the product/s. Typical questions to be asked are:

EXPRESSION FOR THE DISTRIBUTION SYSTEM

TDC = TFC + TVC + SFC + SVC + IC + PC
TDC: Total distribution cost TFC: Fixed costs of transportation TVC: Variable costs of transportation SFC: Fixed costs of supply centres SVC: Variable costs of supply centres IC: Inventory related costs PC: Packaging costs

CHARACTERISTICS OF PURCHASERS
Upscale households: With few exceptions, inhome

shoppers are described as above average in socio economic status. These differences increase with in home shopping intensity and are especially pronounced among households utilizing several in home shopping modes. Racial patterns: It appears that black and white households differ little on total in-home shopping expenditures or frequency. However, shopping mode differences do exist. For example blacks do less mail order buying than do whites at similar income levels.

 Working wives: It might be expected that working women

restricted in shopping time flexibility would take advantage of in home shopping. However this relationship has not been supported so far. In fact, some research indicates that part time female workers and house wives are more likely to shop in home than are women employed full time. Geographic location: There is a limited evidence that geographical location in a trading area influences in home shopping with those in rural areas utilizing it more than their urban counterparts do. Its use seems to be higher where there is greater retail inaccessibility and inadequacy.

NON STORE BUYING

o Non-store retailing is the selling of goods and services outside
o o o o

the confines of a retail facility. It is a generic term describing retailing taking place outside of shops and stores The non-store distribution channel can be divided into direct selling and distance selling, the latter including all forms of electronic commerce. Distance selling includes mail order, catalogue sales, telephone solicitations and automated vending. Electronic commerce includes online shopping, internet trading platforms, travel portals, global distribution systems and teleshopping.. Non-store retailing, sometimes also labelled as home shopping, is consistently achieving double-digit growth, and slowly taking a bigger share of overall retailing.

SIGNIFICANCE OF NON STORE BUYING

An increased emphasis on consumers self identify with

individually expressed through goods and services which leads to a desire to consider more items than a store can display. A higher proportion of working women who have less time to shop. Increased leisure time pursuits of self development and creative expression, which allow less time to shop from store to store, Greater demand for specialty products and services that are difficult to get in most shopping centres.

 Rapid acceptance of new technology such as home

computers, and automated bank teller machines, which means that more consumers are becoming technologically competent for new merchandising approaches. Increased popularity of such recent non store innovations as pay by phone special interest mail order catalogs, and televised direct marketing resulting in consumers who are becoming psychologically prepared for new shopping forms

RECRUITMENT AND SELECTION OF SALESMEN

Sources of Recruitment of Salesmen The recruitment of salesmen is important not only in the formation of a new sales force, But also in the successful operation of an established organization. The sources of recruitment of salesmen can be classified under two heads: They are 1. Internal Sources of Recruitment 2. External Sources of Recruitment

INTERNAL SOURCES OF RECRUITMENT

It means recruiting the salesmen amongst the workers already working in the enterprise. In other words it means recruitment within the organization. The main internal sources of recruitment of a salesman are as follows: Present Employees Already Working in the Organization: Recruitment may be done from the inside staff working in different departments. This is perhaps the safest and most profitable method. A person recruited from the inside staff would generally posses some knowledge of the product s well as the principles and general policy of the enterprise in which he is working. He may even be familiar with the customers of the enterprise and thus a readymade salesman may be recruited from inside the staff itself.

 Recommendation of the Existing Salesman: Salesman may

also be recruited on the basis of recommendation of the existing salesman already working in the organization. The advantage of this method is that the salesman already working in the organization knows the requirements of the job in question and hence he would in a position to make a suitable recommendation. They may include ex-salesman, other workers, relatives, sons and daughters of the salesman etc. It increases the loyalty of the employees towards the enterprise. Promotions :As a matter of policy, firms employ sales personnel from within by promoting the employees from lower post to higher post. It is good step because the person who has put in service feels recognized and puts forth his best on his promotion. Thus it is also important internal source of recruitment.

 Transfers: Particularly in large-sized organizations, transfer of

employees from one department to another department is a normal feature. Hence employees of the firms other departments and non-selling section of the sales department may also be considered for careers in sales department. The personnel department has the history of each employee working in the enterprise and thereby the chance of potentially promoting one can be considered by transfers. Re-employment of Former Employees: It is another important internal source of recruitment. In case of those exworkers whose past record is clean and sound may be called back to their original work situations provide they are willing and both mentally as well as physically to take up the job with loyalty and sincerity.

MERITS OR ADVANTAGES OF INTERNAL SOURCE OF RECRUITMENT

The loyalty and cooperation of the staff are increased. The training period is minimized. The break-in period is reduced. He can easily be adjusted to the

new environment. Generally a person recruited from within the enterprise need not be paid very high remuneration. It has already been provided that where a much specialized knowledge of a highly technical product is necessary, inside staff has proved to be the best. Employees morale is increased and they also feel motivated. The efficiency and conduct of such persons can be easily evaluated. Sales manager usually prefers a man coming from within the organization.

DEMERITS OR DISADVANTAGES OF INTERNAL SOURCE OF RECRUITMENT

Jealously and dissatisfaction develop among the workers

who are not recruited. A kind of monopoly of the workers is established. They will tend to claim as their personnel right and privilege, to be considered and recruited for the job in question. It is said that the old workers usually lack enthusiasm. They usually oppose any change. Since the field of recruitment is limited it might not be easy to get the right them. But the same is not the case with a person recruited from within the organization. Salesmen recruited from competitors may also bring new customers with them. But the same is not the case with a person recruited from within the organization.

 It must be remembered that the inside employee is a

hot-house plant, nurtured within the working of the sales organization. If he is called upon to work on a job of different nature, it may not be a success, such as the work of a travelling salesman. This injects heavy doses of stagnation and inefficiency. Once a person gets his position easily, he becomes complacent and lethargic because he has achieved a height which he does not deserve.

EXTERNAL SOURCES OF RECRUITMENT

The main external sources of recruitment of salesman are as follows: Through advertisement in newspapers. Competitors staff members Schools and Colleges Employment Exchanges Voluntary Application Recommendations of Customers Relatives and Friends Employments Seekers

MERITS OR ADVANTAGES OF EXTERNAL SOURCES OF RECRUITMENT

More efficient, skilled and educated persons can be

recruited as suited to the job. Jealousy and dissatisfaction among the existing workers is avoided. New persons also brings new ideas, new techniques with himself. Recruitment from external sources is based on merits and hence such a person is expected to give better performance.

 It is easy for the sales manager to bring necessary

changes as per his choice. Control and supervision work becomes comparatively easy. He also brings new customers If found unusable, the services can be easily terminated.

DE-MERITS OR DISADVANTAGES OF EXTERNAL SOURCES OF RECRUITMENT

Loyalty and Cooperation among the workers is

reduced. Training becomes expensive and time consuming. Frustration develops if promotion is not given after due period, says 5 to 10 years. It takes a long time in understanding the working and the policies of the organization and getting himself in the new environment. The post also, remains vacant till the date of joining for the selected person. Thus the working of the enterprise suffers.

CONSIDERATIONS TO BE MADE FOR THE SELECTION OF SALESMAN

Since the work of a salesman is of varied nature, it is difficult to lay out the defining principles or points or consideration for the selection of a salesman. In general, the following principles or points should be kept in mind while selecting the salesman. He must have aptitude for salesmanship. This can be judged at the time of interview and the past record of the candidate. 2. He must be educated and possess sufficient knowledge of language. He should have knowledge preferably of three languages i.e. English, Hindi and local language of the field in which he is to be appointed.

 The age of the candidate to be selected should be

preferably between 22 years to 30 years. The candidate should be physically and mentally fit for the job of salesman. The candidate to be selected for the job should have good nature and temperament so that he can influence the customers. The candidate must have good habits. A drunkard, gambler and corrupt person are liable to ruin the business of the enterprise. He must have a strong character. He should have adequate knowledge of human psychology.

 Absence of pride.
As far as possible, the candidate should have adequate experience of salesmanship in a reputed

concern. In case the enterprise deals in technical products such as machinery, then the candidate should have adequate technical knowledge so that he could give a good demonstration of the product before the prospective customers.

PROCESS OF SELECTION OF SALESMEN

Advertisement :- Whenever there are vacancies, advertisement

is given in different newspapers inviting applications. The application may be either on plant paper or on printed forms issued by the seller. The qualifications and other requirements are clearly mentioned in the advertisement. Receipt of Application :- The applications are received until the stipulated time. Incomplete applications or which do not confirm to the job specifications are rejected or deleted or disapproved. Written Test and Interview :- Candidates whose applications are accepted are called for the written test and those who qualify the test are called for interview after some time. The candidates may be called directly for the interview without the written test. Preliminary interview may be conducted before the final interview

 Various Psychological Tests :- The candidates who

qualify the final interview are called for psychological tests like aptitude, personality and ability tests etc. These clearly depict the interest or inclination of the candidates for the job. Medical Examination :- Those who qualify the tests are sent for medical examination. The candidates passing the medical examination are selected for the salesman's job. Final Placement :- The selected candidates are issued the appointment letters and the usually given some joining time.

ROLE OF SALESMEN
Calling on Customers
Maintenance and Extension of Sales Territory Increasing Sales Line

Image Building
Developing Product Knowledge A Good Feedback to the Producers They are the Best Trainers Collection of Dues and Credit Information Participating in Sales Meetings

MOTIVATING SALESMEN
Be specific
Be focused Give public recognition

Make the salesperson the teacher/coach

Give feedback immediately Recognize something besides sales

Create symbols of recognition