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Stage 1-(March,2018) Examination

National Diploma in Sales Management (NDSM)

SRI LANKA INSTITUTE OF MARKRTING (SLIM)

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Assignment Marking Scheme June 2018 Program National Diploma in Sales Management (NDSM) Student Registration No Mark Criteria s Allocated Awarded Aligning to the purpose of the assignment 20 Some of the answer addresses to the purpose of the question 1-5 This has addressed the purpose of the assignment 6-10 Has addressed the purpose of the assignment coherently 11-15 This has addressed the purpose of assignment comprehensively 16-20 Clarity of expression 20 An attempt to organize in a logical manner 1-5 Satisfactory showing of logical manner and organization 6-10 Shows higher level of Carefully and logically organized 11-15 Shows coherent structure with clearly expressed ideas 16-20 Using examples/evidences 20 Shows a little use of examples 1-5 Some use of examples. conclusions 20 Demonstrates limited evidence of critical analysis 1-5 Demonstrates some critical analysis of relevant theory 6-10 Demonstrates application of theory through critical analysis 11-15 Demonstrates application of critical analysis well integrated 16-20 Following assignment guidelines 20 Limited follow-up of assignment guidelines 1-5 Some level of follow-up of assignment guidelines 6-10 Good display of adherence to assignment guidelines 11-15 Excellent adherence to assignment guidelines 16-20 Total 100 Special Remarks Signature of the Examiner . Well evaluated 11-15 Shows appropriate examples are fully and reliably evaluated 16-20 Critical analysis of concepts. theories. Some evaluation attempted 6-10 Some use of examples.

.................................................................. 9 4.....3 Public Relations ............3 Consultative approach ................. 7  1........ 15 8........................... 8 3...................................................................5 Identify the product features....................... 8 4........ 13 7.......................2Assumptive Close ........... 20 .......................................................................................3 Gather and analyze all relevant information about the prospect. 10 4.............................................................................. 12 6............. .......................... 8 2........................... 8 1. ................1 Discuss step of the selling process for vol ....................................... and benefit(FAB).......5 Personal Selling .................... 19 1....................................... ....... 16 8.......................................2 Need satisfaction approach................................................DEVELOPING A CORPORATE STRATEGY ............................................................ ........................1 Advertising.................3Concession close .........................................................3 Negotiating Sales Resistance or Buyer Objections ...........2 Sales Promotions ..........................................................1 AIDAS approach ..............4 Direct Marketing.................................................................................................. 13 7. 14 7.................. 7 1...1 Alternative Close ......... advantages.......... 12 5 CHOOSE THE BEST SALES PRESENTATION STRATEGY................... 12 Following Up and Servicing the Account .......................... SELLING OBJECTIVE OF THE PERSONAL........................... IMPACT OF PERSONAL SELLING / ADVANTAGES ................... 14 8 Sales approach: ................................................... 9 4............ VIMAL OIL LIMITED Table of Contents INTRODUCTION ............... 6 1......................................... 17 TASK2 .............................. ............................................................. IMPORTANCE OF PERSONNEL SELLING ............................................................ 7  1................... PROMOTIONAIL MIX .......... 7  1............................................... 11 4.................... 12 6.........................................................................2 The Importance of Prospecting ..2 The Sales Presentation and Demonstration ........................................................................................................ 15 8.................................................

............................... 20 1...... 20 1..........................................................................................................2 Market Development ........................... 26 .......1............... 20 1.................................................. 25 Bibliography ............. 23 3.............................................. 24 Conclusive ..........................4.......................................................Sales force automation ............................................................Deciding Sales Territories .... 21 2.....................................................................Market build-up method .................... 20 2..................................................................................... Product Development ............................. Diversification .......................................1 Market Penetration ........................................................... Geographic Organizational Structure .......................................3.......... 23 4...................... 24 Benefits........................................................

. There was also no initiative to expand vertical sales. the company has a variety of oils (vegetables. the company expects a 5% growth in its market share. He was trying to acquire his knowledge by accompanying the sales force during sales visits and talking to customers. this means that the sales force has not expanded its market and is only serving existing customers in the general trade and B to B channel sectors. At present. the company holds 15% market share and 5% growth over the last 2 years over the company's 7 years of maturity. Currently VOL has an annual turnover of Rupees 1. sunflower. He spent his first four weeks simply observing the current operation of the sales force. soy and corn) and related products to meet any customer profile of the segment to overcome the competition. Since no new account has been opened in the past two months. This includes all currently operated channels.INTRODUCTION VIMAL OIL LIMITED Richard Silva is the new sales manager of Vimal Oil Limited. With the budget forecast for the coming year. According to Richard's observation. on the product portfolio.2 Billion and Richard's main responsibility is to develop it accordingly. But the development of the canal was lacking in FLIGHT and less availability and the geographical distribution chosen was an obstacle to its development and expansion.

(malik 2011) 1. trade journals and newspapers. Justify by elaborating the impact of personal selling to Oil Distribution Company and consumers. displays. Advertising is any paid form of media communication. 1. (malik 2011) . PROMOTIONAIL MIX 1. hosting special events and sponsoring charitable campaigns are examples of public relations.1 Advertising. Generating favorable media coverage. and billboards.3 Public Relations. radio and TV announcements.TASK 1 (A) As Head of sales. These activities promote a positive image. . understand that Personal selling is the most important tool in promotional mix and distribution VOL company use this tool for extensive distribution. Advertising is a nonperson promotional activity because the seller has no direct contact with the potential customer during the communication process. This includes print ads in magazines. generate publicity and foster goodwill with the intent of increasing sales. contests and price incentives (30% off.2 Sales Promotions. In-store demonstrations. buy-one-get-one-free) are sales promotion techniques (malik 2011) 1.

(malik 2011) 1. such as ordering a product. installation and lenient credit terms. this confirms the quality of the VOL products and help to differentiate among the competitive products 2. IMPORTANCE OF PERSONNEL SELLING to VOL a) Personal Selling is one of the important tool of the promotion mix(communication mix) b) It could increase the sales and the effort of VOL minimum wasted. Catalogs.2 Persuasive: -Can influence to the buyer to take the buying decision and convince the competitive edges to the buyer as showing examples of fried products using the VOL product and other products. therefore it provides a chance the explain the features of oil.4 Direct Marketing. between salespersons and prospective customers. phoning a toll-free number or visiting a store.1. 2. It refers to face-to-face communication between buyer and seller. attribute and benefit to the customer as could ude the oil for more than once fry. . 2. 2. customer training. after sales services and warranties. SELLING OBJECTIVE OF THE PERSONAL.1 Informative: -Can provide the information to the requested queries of the customer regarding the product or service. clipping a coupon.4 Image Building: -Create the company’s favorable image or goodwill among people. A form of advertising aimed directly at target customers (usually in their homes or offices) that ask the receiver to take action. Personal selling can be carried out VOL oral conversations and by telecommunication or Video conferencing or face-to-face.3 Relational: -To deliver promptly. coupon mailers and letters are common forms of direct marketing.5 Personal Selling. It helps to build a long term relationship with the customers and enhance the sales by repurchasing VOL products 3. (malik 2011) Objective of the personal selling Need (or problem) (malik 2011) 2.

1 Discuss step of the selling process for vol Step 1: Prospecting and Qualifying There are seven interacting. The diversified usage of the product with minimum wastage.c) It result in actual sale – it is a complete promotional technique of keeping customer satisfied d) It is a two way communication method where VOL can identify the direct feedback of the customers and provide solutions to the problem they face or explain how to overcome . 4.It is complements advertising e) It educates the customer and the society about the VOL products and the new features of the product. overlapping steps in the professional personal selling cycle (Also known as Wheel of Personal Selling) . IMPACT OF PERSONAL SELLING / ADVANTAGES a) Two-way communication b) Personal attention c) Detailed demonstration d) Complimentary to other promotional tools – ATL/BTL/ Publicity e) Immediate feedback f) Personalize /individual service g) Flexibility h) Retailer/ Customer confidence i) Improve company/ brand image j) Solve issues immediately k) Develop customer relationship l) Help to sell complex products m) Provide feedback immediate 4.

c) Leads are the names and addresses and details of a person or organization that may have a need for a product or service. transferred. the initial stage. or they retire or resign.Prospecting and Qualifying a) Prospecting requires salespeople to first obtain leads. f) VOL buying contacts are promoted. demoted. d) Customers have only a one-time need for the product. Step 2 Pre-approach Prepare the prospect for the initial sales call. g) Customers move out of VOL territory. c) Customers’ businesses are taken over by another company. or fired. and they stop buying from VOL. as follows:  Need or want  Authority to buy  Money or ability to buy  Eligibility to buy 4. b) Customers switch to other suppliers. Sell the sales call appointment by prenotification using the following tools a) cold call b) e-mail c) fax d) mail e) telephone . is necessary for several reasons: a) Firms need to increase total sales.2 The Importance of Prospecting Prospecting. h) Customers go out of business. i) Customers die. b) Prospects are potential new customers. a lead must be qualified in terms of four basic criteria that can be remembered by the acronym N A M E. Use “seeding 1. d) To become a prospect. e) Relationships with some customers deteriorate.

4 . Identify prospect’s problems and needs: Problems. 4. such as these:  increasing market share  lowering cost of production . such as these: a) products previously purchased b) production difficulties c) productivity inefficiencies Needs.4Gather information on prospects from websites a) Electronic Directories and Databases b) Published reports 4.1 Identify the prospect’s problems and needs.3 Gather and analyze all relevant information about the prospect. and interests 4.3Gather information on prospects from these places: a) trade associations b) chambers of commerce c) credit bureaus d) mailing list companies e) government and public libraries f) investment firms 4. hobbies. Gather information on prospects such as this: a) the prospect’s name and its pronunciation b) job title c) duties d) superior e) education f) work experience g) level of technical expertise h) purchasing authority i) personality j) prospect’s family k) after-work activities.

and asking probing questions. 6. advantages. c) Stimulate desire for offerings with the demonstration. d) Step 6: Confirming and Closing the Sale e) The more closing strategies the salesperson knows and can effectively apply. the greater his or her chances for closing the sale. 6.1 The Sales Presentation and Demonstration a) Ask qualifying questions to uncover needs.  Advantages are the performance traits of the product that show how it can be used to help the customer better solve a problem than present products can. . listening. b) Present products and services that will satisfy needs.5 Identify the product features. f) Five widely used closing techniques include these: . a) Identify the features of the products being considered for this sale. a) Determine benefits to the prospect of each product feature and/or advantage (FAB information to be used in sales demonstration and presentation 5 Choose the best sales presentation strategy. b) The first person who reached the prospect would make the sale. d) Highlight their features. advantages. 4. . and benefit(FAB). and benefits:  Features are the obvious characteristics of the product. b) Most successful salespeople learn how to “flex” (adapt) their communication styles in accordance with their prospects’ communication styles. c) Serious negotiations seldom begin until the prospect's objections surface. a) Customer-oriented salespeople identify and solve customer problems by skillfully observing. or actions by the prospect that indicate resistance or an unwillingness to buy . at least at the moment.2 Negotiating Sales Resistance or Buyer Objections a) Objections are statements.. questions.  Benefits are what the customer wants from the product. b) Enumerate the advantages of VOL products relative to Competitors ‘products.

concession closes 5. e) Help customers with warranty or service contract 7. and not just selling products. clarification closes 2.two or three is often quite adequate. If VOL offer too many alternatives. The number of alternative should be very few . Examples Would VOL like one bottle or two? Which of the three oil seems best for VOL? . This can be accompanied by subtle Technique The alternative close works by offering more than one clearly defined alternative to the customer. straightforward closes 4. psychologically oriented closes 3. An extra technique that can be effective is to add a verbal emphasis on the words. salespeople should consider the following basic service strategies: b) Express appreciation for the customer's business. d) Assist customers with credit arrangements.3 Following Up and Servicing the Account a) To maximize customer satisfaction after a sale. 1. lost sale closesi 6.SPECIFIC CLOSING TECHNIQUES FOR VOL 7. Note that this technique works well in many different situations where VOL are seeking agreement. c) Make sure products are delivered and installed on time.1 Alternative Close Slight nod when offering the preferred choice. the customer will then be faced with a more complex problem of how they choose between the many alternatives offered.

where acting confidently as if something is true makes it difficult for the other person to deny this. such as the Alternative Close are variants of the Assumptive Close. where VOL act as if the customer has already decided to buy. Examples If I reduce the price by 10%.2Assumptive Close Technique Act as if the other person has made the decision already. Left are which of a limited number of options they should choose. will VOL take the product today? . Many other closes. such as how many they want. when they want it delivered. 7. and so on. Examples When shall we deliver it to VOL? What will VOL friends say when they see it? Will 20 cases be enough? Where will VOL put it? How it works The Assumptive Close works by the Assumption principle.Shall we meet next week or the week after? How it works The Alternative Close is a variant on the broader-based Assumptive Close and works primarily through the assumption principle.the other person will very likely still feel they owe VOL something for it. Turn the focus of the conversation towards the next level of questions. For them to say VOL are wrong would be to cast themselves as an antisocial naysayer. and question 7. VOL can be explicit about wanting an order in return for the concession or VOL can give the concession without asking . what size they need.3Concession close Technique Offer a concession of something they want in return for them buying the product. Note: This is one of the most common closes used.

Desire and Action. approaches have resorted to customer relationship. How it works The Concession Close works by offering the other person something and either requesting or implicitly expecting something in return . an attempt has been made to discuss different approaches to illustrate the path of sales on theoretical roads. Interest. which also gives us a brief understanding of the evolving transition of sales practices. If VOL are ready now. Right set of circumstances approach 4. collaboration. 1. AIDAS approach 2. Problem-solving approach 9. I think VOL deserve a free case with this. 8 Sales approach: The sales approach is the step by step proposal developed by a salesperson or a company to make the sales process effective. Teem selling approach (sales approach 2011) 8.Well. Customer relationship-based approach 8. The AIDA model is widely used in marketing and advertising to describe the steps or stages that occur from the time when a consumer first becomes aware of a product or brand through to when the consumer trials a product or makes a purchase decision. Buying formula approach 5. (C ) Identify (3) three best sales approaches for Vimal Oil Limited and justify them with examples. to justify the sustainable stakes of the sale. With this in mind. Consultative approach 7. Behavioral equation approach 6. etc. partnership.1 AIDAS approach AIDA is an acronym that stands for Attention. Need satisfaction approach 3. A well-developed sales approach is what sometimes differentiates an incompetent salesman from an experienced salesman. increasing competition and customer demand. Listen. With the passage of time. Given that many . I'm going to throw in a free tank of fuel. I'll make sure it is delivered by the end of the day.usually the sell The Concession Close is also called the Trade-off Close.

The consumer develops a favorable disposition towards the brand.consumers become aware of brands via advertising or marketing communications. . 8.etc Interest .The consumer forms a purchase intention. This will be most suitable since the oil product is new to the market and highly competitive.The consumer becomes interested by learning about brand benefits & how the brand fits with lifestyle Desire . Need satisfaction selling is a sales approach where the sales person probes into then prepares his sales pitch or presentation in accordance to these needs in order to satisfy the consumer. shops around.2 Need satisfaction approach. Action . Vol can reach high number of customers to educate the product which enhance the brand of the product and satisfied customers repurchase and word of mouth further increase the sales.The consumer becomes aware of a category. engages in trial or makes a purchase in a purchase area. the AIDA model helps to explain how an advertisement or marketing communications message engages and involves consumers in brand choice (powell 2017) Attention .. product or brand usually through advertising sampling broaches.

the sales person asks various questions to the consumer and listens to him carefully in order to understand his needs fully. In this way. a. b.3 Consultative approach Consultative sales is a selling method in which the salesperson spends time with the customer to understand the problem the customer is trying to solve and then recommends a solution that will specifically address that problem. the expressed or stated needs are found. Helping the prospects to identify and meet their needs and post purchase situations are the task of consultative selling. Probe: Here. the sales person shows that the customer’s needs are genuine by supporting him in his argument and approach. generally the tacit or the unstated needs. 8. the sales person can extract more information about the customer’s needs. d. c. in this stage. Open: This is where the salesperson opens his or her presentation to the consumer to start the selling process. Close: The sales person makes a value proposition to the customer which satisfies his needs and closes the transaction.A sales person examines the needs and wants of the prospects and understand the various dimensions of their problems to find suitable solutions to their problems. This helps to VOL to attract the customers who cannot be reached in the previous approach. Proper diagnosis of the needs of the prospects is the starting point of the consultative selling . Support: Here. If they are already using a different brand identifying their actual need helps VOL to switch their purchase to the substitute product offered by the VOL Company . Generally.

a sales person helps prospects to solve the following problems. a) Need problem b) Choice problem c) Customer feedback problems d) Product use problems I would recommend this method is most suitable for the VOL because it has four kinds of oils.Under consultative selling. . Therefore it should attract the attention of the customers and identify the needs and wants of the customer and help them to solve their problems about oils.

2 billon then after one year sales achieve 1. There are different corporative strategies can be applied . The corporate strategy refers to the overall choice and distribution of a corporation and way in which is various business operation work together to achieve above goals.TASK2 The national sales manager in VOL IS targeting on increasing them market share up to 15% to 20% by 1 year. now sales targeting 1. This target the bellow mentioned corporate strategy could be recommended.6 billon.

d.2 Market Development .) 1.DEVELOPING A CORPORATE STRATEGY (matrix n. Market development is the second market growth strategy in the Ansoff matrix.VOL focus on the development of new products to sell into new markets. Product Development .1.1 Market Penetration .focus on selling VOL existing products or services to VOL existing markets to achieve growth in market share.VOL focus on developing new products or services for existing markets.VOL focus on developing new markets or market segments for existing products or services. 1. This strategy is used when the firm targets a new market with existing products .3. 1.4. Diversification . 1.The Market .

Already VOL distribute their oil products in western province only. the objective of sales organization . This proposed territorial sales force structure has 60 number of sales force and this can be presented here. We can gather lot of hotels and bakers. Geographic Organizational Structure a) Organization means the systematic coordination of the functions essential to achieving organization objectives.therefore. is the performance of various activities necessary to promote sales. we can start new distribution channel in central province. Geographic Organizational Structure CEO . The population of the central province is still an untapped market where it has the 6th population of the island and the demand for oil is high (Department of Census and Statistics 2017).. In order to central province is most suitable to introduce new distribution channel for our market development strategy. We should identify what are the prospect markets in central province. the functions of Vol organization can be classified as follows There are different sales organizational structures to be applied and I as the National Sales Manager of VOL would present the following mentioned sales structure for VOL sales force.development strategy is most suitable for the VOL to increase the current market share by 5%. 2.

weather conditions. The regional sales manager would be responsible for running the sales team in the region. with NSM's primary goal being to achieve a market share of 15% with market growth of 5%. cost- effective market coverage so that the tool is available under the supervision of sales personnel. Low duplication of effort with customers (unless buyers are organizations that cross territories) Disadvantages: a. This total revenue is also monitored by the National Sales Manager. He supervises two managers such as Area Sales Manager. Sales reps have a hard time developing product or market specialization (unless the organization commits to specialized sales forces allocated by geography) . First. Regional Sales Managers are responsible for monitoring and achieving the sales target in each region through the contribution of distributors' sales representatives and agents. Area Sales Manager and Key Account Manager. This distribution structure allows for adaptation to different market conditions.1Geographic Organizational Structure Advantages Disadvantages Advantages: a. 2. etc. Structure and those that can be identified. This distribution structure covers intensive. Proper territory management leads to low geographic duplication of effort c. the benefits are illustrated here. Low cost b.Western province Sales manager1 Central province sales manager1 1manager Division sales manager 1 Division sales manager 1 Area manager 3 Area manager 3 Sales people 15 Sales people 15 The National Sales Manager is responsible for achieving the company's sales. competitive conditions.

should be set at an optimal level in order to a sales rep is able to realize the sales potential. The Sales Reps of vimal oil company. 3. There are many methods to decide sales territories but I would like to recommend “Market build-up method”. Territory sizing can be a challenge. Beside this. Determine optimal call frequencies The first step this Market Build-Up method is determining optimal calls frequencies. The detailed analysis and application of this method is as follows. . Covering the sales territory for vimal oil stands out on the premise of attaching the right importance to the right customer groupings.Market build-up method In this method. buying methods of customers. This method Following steps. It goes without saying that high-sales potential customers need maximum attention from sales reps and vice-versa. The number of calls defines the number of time a salesperson visits a customer in a year.Deciding Sales Territories This task is providing a suitable method of deciding sales territories for this Vimal oil Company. The method calls for equalizing the workload of sales people which relates to the number of calls a salesperson is expected to meet. the territories are developed by combining small geographical or control units together. a) Determine optimal call frequencies b) Determine the number of calls required for each control unit c) Determine workload d) Draw tentative territories e) Construct final territories f) Determine optimal call frequencies a.b. resulting in uneven revenue/opportunity across geographic Having analyzed the above advantages and disadvantages.. and the support of distributors influence call frequencies. the nature of the current market. 3. average cost on one call. I would be suggesting this sales structure to achieve the company sales targets as well as to achieve 15% market share and 5% annual market growth. nature on competition of oil suppliers.

4.b. This process continues until the yearly number of calls needed in these units equates to the total number of calls a Sale Rep of VOL is able to make.Sales force automation SFA is an integrated application of customizable customer relationship management (CRM) tools that automate and streamline sales inventory. Determine the number of calls required for each control unit The second step is determining the number of calls required for each control unit. allow for better management of marketing resources. Target marketing has proven to be more effective for sales volume that blanket marketing campaigns. A strong competition in a territory demands higher workload compared to that where it is week. would increase sales person productivity. Having a better idea what marketing tactics are being effective allows you to spend more of your resources on that tactic. the company VOL adds on neighboring territorial control units which share common borders with it. After this step. c. The fourth step is to draw tentative territories. Allowing the Marketing department to see what tactics are being best utilized by their sales force allows for greater control in target marketing. Territories need reconstruction when workloads of sales reps of company VOL are not equal. Better resource management regardless of area provides a competitive advantage Benefits a) Save Time b) Improve Customer Service c) Increase Revenue . Sales force automation. There are other types of methods to decide the sales territories but I wish to propose this market build-up method to apply by vimal oil company. leads. forecasting. Construct final territories The final step is to construct final territories. d. The number of calls for each control can be determined number of accounts in each unit mollifying by call frequency. performance and analysis. This Market buildup method is being proposed to decide the sales territories of Vimal Oil Company. and provide a competitive advantage. the workload would be determined. Determine workload This refers to the total number of call that a sales person makes in a year. According to this technique.

d) Management e) Manage Sales Teams f) Improve company image g) Improve employee motivation and satisfaction (malik 2011) Conclusive I would like to take this opportunity to thank all the NDSM class colleagues and all SLIM employees for the great help I have received. I also want to pursue my other PG in marketing in this institution. business approaches and business strategy and SFA . I would like to say that at the end of this assignment. I was able to improve my knowledge of personal sales.

10 23.piplinersales. The sales manager of VOL can achieve the expected sales growth and increase the market share with the right decision of the management Bibliography malik. n. n. 2017. matrix. The VOL sales team can achieve the expected sales growth and increase the current market share by 5%. benjemin. powell.d. 2011. askwillonline.systems. sales management.d. pradip kumar. sales approach.com.com. . india: oxford univercity. salespop. ansoft.

sales marketing for sales. india: oxford univercity. .".sales management. "scribd. 2011.