HR policies are also defined as that body of principles and rules of conduct which govern the

enterprise in its relationship with employees.

Such a policy statement provides guidelines for a wide variety of employment relationships in
the organization. The purpose and significance of the HR policies hardly need any elaboration.
Every organization needs policies to ensure consistency in action and equity in its relation with
employees.

Policies serve the purpose of achieving organizational goals in an effective manner. HR policies
constitute the basis for sound HRM practices. Moreover, policies are the yardstick by which
accomplishment of programmes can be measured. Human Resources policies are generalised
guidelines on employee management, adopted by consensus in an organisation to regulate the
behaviour of employees and their managers or supervisors.

Human resource policies are not something that can be considered in isolation. It is an integral
part of the whole policy structure of the enterprise. There is an organic unity in policies. Such a
unity prevents unnecessary duplication and promotes unity of action. Weakness in any one of the
major policies tends to weaken the effectiveness of other policies. Similarly, a weakness in
human resource policies may weaken effectiveness of all other organizational policies.

WHAT IS TRAINING AND ITS OBJECTIVE.

Training is the process for providing the required skills to the employee for doing the job
effectively ,skillfully and qualitatively.

The well-known objectives of training are as follows:

1. To enlarge Knowledge

Training is provided especially for middle and lower level of employees. Training
provides all information relating to various aspects of the organization; hence,
they can develop required skill and ability to perform the assigned task
successfully. It increases the level of knowledge possessed by individuals.

1. To enlarge skillfulness

Training provides the opportunity for employees to impart new skills

systematically so that they can perform the task successfully. The ever-changing
environmental forces require new and innovative skills and ideas to perform the
task. Training helps employees to get acquainted with new skills and knowledge.

1. To modify the approach of Workers

Another objective of training is to bring about change in the attitude of the

workers towards co-workers, supervisors and the organization. Furthermore,
training helps to develop healthy attitudes in them so that the good working
relationship can be developed in the organization.

1. To develop executive Performance

Training imparts new skills, knowledge, and attitudes in employees so that they
can perform organizational activities better than before. By such training, they
can do the job more effectively and efficiently, thereby improving the overall
performance of the organization.

1. To Make Workers for proficient use of assets

When employees are trained, they get additional skills, knowledge, and
techniques of handling resources. This helps them to utilize machines, tools,
equipments and other organizational resources efficiently and effectively.

1. To decrease accidents

Employees can be provided with safety training measures to reduce sudden

accidents. When the workers are known with the technique of handling new and
sophisticated technologies, the chances of occurring accidents will be minimized.

1. To offer enhanced prospect for workers

Training is a learning process, which provides various opportunities to employees

to develop the existing level of skills, knowledge, attitudes and behavioral
relations. The improvement in job performance provides an opportunity for
growth and advancement. Due to such training, employees get an opportunity for
doing challenging work, work experience, and promotion.

1. To enlarge efficiency and earnings

Productivity measures an efficient relationship between input and output. The

training aims to increase organizational productivity by increasing output with the
limited input. Training increases the efficiency and effectiveness of employees
which reduce the absenteeism, labor turnover, operating cost and wastage. This
ultimately leads to high productivity thereby earning more profit.
 SL.N
Basis for Comparison HRM HRD
O
Human Resource Human Resource
Management refers to Development means a
the application of continuous development
Meaning principles of function that intends to
management to manage improve the performance
the people working in of people working in the
1 the organization. organization.
Subset of Human
What is it? Management function.
2 Resource Management.
3 Function Reactive Proactive
To develop the skills,
To improve the
knowledge and
Objective performance of the
competency of
employees.
4 employees.
5 Process Routine Ongoing
6 Dependency Independent It is a subsystem.
Development of the
Concerned with People only
7 entire organization.

WHAT IS JOB ANALYSIS

Job analysis is a recording of all the activities involved in a job and the skill and knowledge
requirements of the performer of the job.

Significant Uses of Job Analysis Information

1. Human Resource Planning:

Job analysis is an analytical process from which we develop tangible results in the form of job
description and job specification. These two outcomes i.e. job description and job specification
determines the duties and responsibilities a particular job possesses and the qualifications, skills,
knowledge, potentials required to perform the job respectively.

2. Job Evaluation:
Job evaluation is treated as the third tangible outcome of the conceptual job analysis. The
information provided by the job analysis serves the purpose of job evaluation i.e. to determine
the relative worth of job for fixing compensation.
3. Recruitment, Selection and Placement:

A comprehensive job analysis provides sufficient information in respect of jobs that will most
likely to be filled up in future. Job analysis ably provides all required information facilitating the
recruitment, selection and placement smoothly in an organisation.

4. Optimum use of Human Resources:

Every organisation wants optimum use of its human resources to increase the productivity.
Information from job analysis furnishes the facts regarding what employees have to do.

5. Training and Development:

Training and development is yet another field where information from job analysis is used. From
the requirements of the job the manager know the deficiencies in the jobholders. He then decides
to provide training to the incumbents.

6. Labour Management Relations:

The information gathered from job analysis are helpful in improving labour management
relations by understanding what is being expected from the jobholders, by the employees. This
can be achieved if employees are informed about the information from the job analysis.

7. Job Design:

The information generated from the job analysis is of immense help to the industrial engineers in
designing the job through the study of job element.

CRM
Customer retention is the collection of activities a business uses to increase
the number of repeat customers and to increase the profitability of each
existing customer.

 Build customer trust and long-term relationships. Fostering customer trust requires a strategic
focus on every aspect of the customer experience. To build lasting relationships, deliver
relevance and value at every stage of the customer journey.

 Educate your customers on the most effective use of your product or service, both before and

after purchase.
  Provide outstanding customer service with multiple service channels and fast, accurate

responses that solve customer issues.

 Develop a frequent communication calendar on all channels.

 Offer convenience with features like fast shipping, free returns, and/or mobile pickup orders, like

Starbucks’ Mobile Order & Pay.

To build trust, you must listen and empathize with your customers. Through listening to
customers you will collect customer feedback that will enhance how you deliver customized
experiences.

2. Create a robust customer loyalty program. Maybe your brand already has a loyalty program,
but you’d like it to deliver better ROI. Or, perhaps you’re just expanding your retention efforts for
the first time. Either way, an effective loyalty program should contain these three elements at a
minimum:

 Rewards that reinforce your core business goals: whether you want to encourage more visits,

more trials or more incremental purchases, make sure your program and rewards are structured

to achieve that result.

 Greater benefits for more valuable customers: create a tiered program where loyal customers

who spend more get more valuable rewards, from accelerated earning to exclusive promotions.

 Targeted offers and rewards that are highly relevant: use the capabilities of your MarTech stack

to personalize your offers and rewards to customers' interests and preferences.

3. Leverage your customer data. Many lists of customer retention strategies mention the
ubiquitous customer feedback survey—but to retain customers successfully, you need to
understand their preferences and motivations without always having to ask. Collecting and
mapping customer data like transaction histories, customer service interactions, and loyalty
program data will help you prevent churn and identify where the wants of your customer
intersect with your business objectives.
4. Re-engage customers using marketing automation. Today’s marketing automation
technologies can take on entire marketing processes to simplify workflows for marketing teams.
Re-engaging customers is just one of these processes. Instead of your marketing team needing
to track which customers have lapsed, a marketing automation solution that uses AI and
machine learning (ML) can automatically recognize when customers lapse and re-engage them
with personally relevant offers.

5. Measure customer lifetime value. Customer lifetime value (CLV) is an estimate of the net
profit attributed to your brand’s future interactions with a customer. Understanding CLV can
enable you to shift from a short-term business strategy focused on the next quarter’s profits to a
long-term one that values ongoing customer relationships.

The simplest way to calculate customer CLV is to subtract the amount you spent acquiring and
retaining a customer from the amount of revenue that a customer generates. You can also use
an online calculator, such as this one from WebFX, or this more complex option.

6. Personalize your offers and communications. Beyond simply putting the customer's name in
an email subject line, use the customer data you’ve collected to make your marketing offers and
messages more personally relevant to your customers. There are four types of offers:

 Mass Offer - This offer is available to everyone in a given program, regardless of other

demographic data. If our home goods store offered a 10% discount off the next purchase to all

members, that would be a mass offer.

 Segmented or Targeted Offer - With a segmented or targeted offer, the customer base is

segmented into groups based on a particular data point. Each person in that group is eligible for

the same offer and may have group-specific messaging. This gives a small level of

personalization but does not not truly take individual preferences into account when building the

offer. For example, they could offer a 10% discount to everyone who lives within 20 miles of their

stores in California.

 Personalized Offer - This offer is individualized for the consumer with unique actions and rewards

based on the consumer’s preferences and purchase history. For example, a home goods store
 could offer 15% off an interior design consultation with anyone who has spent more than $1,000

in the past six months and personalizes the designer based on the type of decor the consumer

purchases.

However, launching a succession of personalized campaigns that continue to be individualized

based on the most up-to-date data science models has been historically challenging due to
technology integration and scale limitations around the number of hours the team has to create
variations and their technology’s ability to support more variation.

 Dynamic Offer - This is a highly flexible and powerful offer, typically built using machine learning

and automation. It is constructed using a dynamic offer template and machine-learning-calculated

actions and rewards for each individual. Types of dynamic offers range from a simple, single-step

spend X and get Y construct to more robust constructs that ask consumers to complete multiple

steps to reap a large reward. Dynamic offer platforms automate the generation of these offers

and manage the fulfillment, measurement and optimization of these offers. Because of this, they

solve for the scale and continuous optimization challenges we’ve historically seen with

personalized-offer approaches.

For example, a dynamic offer platform generates an offer for a customer that asks them to
complete multiple purchases across different decor categories or brands and in return reap a
larger 25%- off discount than the original 15%. This allows marketers to drive incrementality in a
new and dynamic way.

The closer you get to dynamic offers, the greater relevance and value you will deliver, and the
more you will retain customers.

7. Surprise and delight with gamification. “Surprise and delight” has become something of an
overused buzzword—but that’s because it works, and nowhere is that more evident than
with gamification. Using game design to motivate customers is highly effective because it
leverages people’s competitive natures while at the same time lighting up the reward center of
the brain.
Gamification incorporates game mechanics to increase customer engagement, improve sales,
and strengthen brand loyalty. Allowing you to engage with customers in a modern way, a
gamified loyalty program provides benefits to both you and your buyers.

Early gamification tactics often tacked simple game mechanics, like badges or cartoonish
elements designed to feel like a video game, to existing loyalty programs. But those badges
didn't convey any status or provide any meaningful value; they didn't build a relationship with
customers. On the other hand, modern gamification leverages customer data insights and
creates experiences with multiple steps, all connected to driving value for the customer and
business outcomes for the brand.

What Does Customer Loyalty Mean?

What is the definition of customer loyalty? Customer loyalty is positively
related to customer satisfaction as happy customers consistently favor the
brands that meet their needs. Loyal customers are purchasing a firm’s
products or services exclusively, and they are not willing to switch their
preferences over a competitive firm.
Brand loyalty stems out of a firm’s consistent effort to deliver the same
product, every time, at the same rate of success. Organizations give special
attention to customer service, seeking to retain their existing current base by
increasing customer loyalty. Often, they offer loyalty programs and customer
rewards to the most loyal customers as an expression of appreciation for
doing repeat business with them.

Let’s look at an example.

Example
A typical example of customer loyalty is Starbucks. The company has
managed not only to retain its customers but also to expand its customer base
through exemplary loyalty programs. Capitalizing on the fact that it has
created a successful, recognizable brand worldwide, Starbucks seeks to
enhance the customer experience every time, every time, at the same rate of
success. On top of that, the company offers the My Starbucks Rewards
customer loyalty program.
Starbucks’ loyalty program features a mobile app that allows customers to pay
their coffee with built-in payments. In that way, customers can pay for their
coffee easily and swiftly while reducing the use of credit cards. In turn,
Starbucks compensates them with loyalty points and discounts.

In fact, customer loyalty is built from the company to the customer. The more
satisfied the customer, the more like to do repeat business with a firm. Then,
customer loyalty encourages customers to shop particular brands regularly, to
spend more money, to advertise the brand with a mouth-to-mouth advertising
and to have a positive shopping experience.

Customer Portfolio
Management
A company’s marketing strategies ‘should encompass an entire
portfolio of customers at different relationship levels. This process is
called ‘customer portfolio management.’

‘Customer portfolio analysis enables managers and researchers to

capture a customer’s value contribution to a firm’s portfolio of
relationships rather than analyzing a customer’s value to the firm in
isolation.’

Contents [show]
The details associated with customer portfolio
may include:
1. Company’s name
 2. Point of contacts and associates
3. Industry and domain
4. Products or services being used
5. Ticket size, average revenue, and billing information
6. Type of relationship
7. Potential upsells or cross-sells opportunities
8. Any other detail

How to do Customer Portfolio Analysis

Customer portfolio management is more than just collecting the
simple information of the buyer. A lot of criteria fit in while analyzing
the customer portfolio which are:

1. Type of Customer
Creating the right portfolio of customers involves selecting those
customers whose spending patterns, i.e. the revenues they bring in
and the probability of repeat purchase, fit in with the strategies of the
company.

2. By Value
Customers vary in their value to the company. Some are consistent big
buyers. Some are erratic big buyers. Some are consistent small buyers
whereas some others are erratic small buyers.

3. By Revenue
Customers have been usually ranked in terms of the revenue they
generated for the company in previous years, and companies have
been willing to spend lavishly on the big spenders to retain them. But
companies will have to classify this data in one important way.

See also  Types of Salespersons

4. Customer Profitability
Customers will have to be classified in terms of the probability of their
buying in future time periods. Therefore the value of a customer to a
company would be dependent upon the amount of his future
spending and his probability of doing so. The less the probability of
his spending, the larger would be the risk to the company.

Similarly, potential customers would be classified on the basis of their

potential spending and their probability of doing so. A company
would like to have customers with high revenue potential and low risk.

5. Business or Industry Type

The amount of effort and money that a company would be willing to
spend on a customer to acquire or retain him will have relation to his
revenue potential and his risk to the company. The higher the revenue
potential and lower the risk, the more valued is the customer and the
more eager would the company be to acquire or retain him.

6. By Risk-taking Ability
The process gets complicated by the fact that the big spenders are
riskier to the company as they are likely to be repeatedly enticed by
competitors.
 report this ad

They are also more expensive to acquire and retain since

they understand their own importance to the company and play hard
with the company. Small spenders can be pretty consistent as they
would not be fervently wooed by competitors and might be easier to
acquire and retain.

The existing portfolio of customers of the company would have a

particular combination of revenue and risk. The type of customers that
the company acquires should be dependent upon the type of portfolio
the company wants to build in terms of revenue and risk.

See also  11 Challenges in Personal Selling

If the company’s existing portfolio has low revenues and low risk, and
if it wants to increase revenues and is willing to tolerate a higher level
of risk, it can target big spenders with high risk. If the company’s
portfolio has high revenue and high risk but would like to reduce its
risk, it should seek customers with low risk even if their spending is
low.

The company’s portfolio is fraught with danger if it has a

preponderance of low revenues and high-risk customers. It can go for
big spenders with high risk and further aggravate the risk component
of the portfolio, or it can play safe by seeking low spenders with low
risk.

The company is in an enviable position if its portfolio has high revenue

and low-risk customers. The company can make a decision of further
increasing revenue and tolerating a higher amount of risk by going for
big spenders or it can be conservative and target small spenders.

Wrap Up
While it is always good to have as many customers as a company can
get, it is wise to seek customers who will help to create the type of
portfolio that the company desires in terms of revenue and risk.

But before it can target the right type of customer, it has to gather
sufficient information about him to classify his revenue potential and
risk. Acquiring and retaining customers would have to be a more
deliberate activity if the company has to have a portfolio with the
desired level of revenue and risk.
Economics of Customer Retention
There is a strong economic argument in favour of customer retention.
The argument goes as follows:

1.    Increasing purchases as tenure grows.

Over time customers come to know their suppliers. Providing the
relationship is satisfactory, trustOpens in new window grows whilst risk
and uncertainty are reduced. Therefore, customers commit more of their
spending to those suppliers with which they have a proven and
satisfactory relationship.
Also, because suppliers develop deeper customer intimacy over time,
they can enjoy better yields from their cross-selling efforts.

1.    Lower customer management costs over time.

The relationship start-up costs that are incurred when a customer is
acquired can be quite high. It may take several years for enough profit to
be earned from the relationship to recover those acquisition costs. For
example, it can take six years to recover the costs of winning a new
retail bank customer.

In the B2B context, in particular, ongoing relationship maintenance costs

such as selling and service costs can be low relative to the costs of
winning the account. Therefore, there is high probability that the account
will become more profitable on a period-by-period basis as tenure
lengthens.

These relationship maintenance costs may eventually be significantly

reduced or even eliminated as the parties become closer over time. In
the B2B (business-to-business) context, once automated processes are
in place, transaction costs are effectively eliminated, and portals largely
transfer account service costs to the customer.

In the B2C (business-to-consumer) context, especially in retailing, the

assertion that acquisition costs generally exceed retention costs is hard
to prove. This is in part because it is very difficult to isolate and measure
customer acquisition costs.

1.    Customer referrals.
Customers who willingly commit more of their purchases to a preferred
supplier are generally more satisfied than customers who do not. They
are therefore more likely to utter positive word-of-mouth (WOM) and
influence the beliefs, feelings and behaviors of others.

Research shows that customers who are frequent buyers are heavier
referrers. For example, online clothing customers who have bought once
refer three other people; after ten purchases they will have referred
seven.

In consumer electronics, the one-time customer refers four; the ten times
customer refers 13. These referred customers spend about 50-75
percent of the referrer’s spending over the first three years of their
relationship. However, it is also likely that newly acquired customers,
freshly enthused by their experience, would be powerful WOM
advocatesOpens in new window, perhaps more than longer-term
customers who are more habituated.
1.    Premium prices.
Customers who are satisfied in their relationship may reward their
suppliers by paying higher prices. This is because they get their sense of
value from more than price alone. Customers in an established
relationship are also likely to be less responsive to price appeals offered
by competitors.

There is strong empirical evidence linking customer satisfaction to

willingness-to-pay.

These conditions mean that retained customers are generally more

profitable than newly acquired customers. Drawing from their consulting
experience, Dawkins and Reichheld report that a 5 percent increases in
customer retention rate leads to an increase in the net present value of
customers by between 25 percent and 95 percent across a wide range
of industries including credit cards, insurance brokerage, auto services
and office building management. In short, customer retention drives up
customer lifetime value (CLV).

SALES AND DISTRIBUTION

AIDAS theory of selling
January 6, 2021 By Hitesh Bhasin Tagged With: Marketing

The AIDAS theory of selling is one of the widest known theories and is the
basis for training materials across numerous organizations. AIDAS stands for
Attention, Interest, Desire, Action, Satisfaction. The AIDAS theory simply
states that a prospect goes through five different stages before finally
responding satisfactorily to our product. thus he should be led comfortably
through all five stages.
Table of Contents
1) Attention

Gaining attention is a skill and and just like any skill, gaining attention can be
improved upon with practice. A common phrase applicable over here is “First
impression is last impression”. The initial attempt of the sales person must be
to put the customer completely at ease. Casual conversation is one of the
best openers after which the sales person can gain customer attention by
leading him onto the sale. to know more about gaining attention read my post
on how to gain customer attention.

2) Interest 

Once you have gained attention, it is very important to maintain interest.

Some sales people are very good in the opening but as the technicalities take
over, they become uncomfortable while explaining the product. Whereas
others who are strong in the product department might open bluntly but create
interest in the second stage. Maintaining interest is a crucial part of the sales
process and hence is included in the AIDAS theory. Read more on how to
maintain customer interest.

3) Desire 

Have you seen the commercials wherein you just have to get out of your
house and get the product? Perhaps a car, an ice cream or a house. The
same has to be done by the sales person in personal selling. He has to create
enough desire in the customers mind such that he immediately has to buy the
product. Imagine an aquaguard sales man or a tupperware sales person.
They highlight the product in such a manner that you might be thinking “Why
didnt i buy this product before”. Thus kindling that desire becomes an integral
part of the AIDAS selling theory. Read more on how to create desire for the
product

4)Action

Although there may be desire for the product, the customer might not act on it.
He might want to buy the product but he might NOT buy it. In such cases the
customer needs to be induced. There are various ways to induce the
customer such that he buys the product. It is important for the sales person to
understand whether to directly induce the customer or whether to push subtle
reminders that you are there for a sales call ;) . Both methods work, but you
need to know your customer.

5) Satisfaction 

What would you do after the customer has given the order? Will you stand up,
Point at him and shout “Fooled ya”. I dont think so. The customer has just
parted with his money. Just like you part your money and expect good
service, he expects the same too. So even after he has bought the product,
you need to reassure the customer that he has made the right decision. The
product is good for the customer and you only presented the product. It was
his decision and he is right about it. These small cues post the sales process
really give confidence to the customer and he then looks forward to your
product rather than thinking whether or not he has made the right decision.
Learn more about measuring customer satisfaction.

5 steps of the consumer decision making process

1. Problem recognition: Recognizes the need for a service or

product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable
alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they made

The consumer decision-making process can seem mysterious, but all

consumers go through basic steps when making a purchase to
determine what products and services will best fit their needs. 

Think about your own thought process when buying something—

especially when it’s something big, like a car. You consider what you
need, research, and compare your options before making the decision
to buy. Afterward, you often wonder if you made the right call. 
If you work in sales or marketing, make more of an impact by putting
yourself in the customer’s shoes and reviewing the steps in the
consumer decision-making process.

Steps in the consumer decision process

Generally speaking, the consumer decision-making process involves

five basic steps.

1. Problem recognition

The first step of the consumer decision-making process is recognizing

the need for a service or product. Need recognition, whether
prompted internally or externally, results in the same response: a want.
Once consumers recognize a want, they need to gather information to
understand how they can fulfill that want, which leads to step two.

But how can you influence consumers at this stage? Since internal
stimulus comes from within and includes basic impulses like hunger or
a change in lifestyle, focus your sales and marketing efforts on external
stimulus. 

Develop a comprehensive brand campaign to build brand awareness

and recognition––you want consumers to know you and trust you.
Most importantly, you want them to feel like they have a problem only
you can solve.

Example: Winter is coming. This particular customer has several light

jackets, but she’ll need a heavy-duty winter coat if she’s going to survive
the snow and lower temperatures.
2. Information search

Content Map With Funnel (B2C) Example (Click on image to modify online)

When researching their options, consumers again rely on internal and

external factors, as well as past interactions with a product or brand,
both positive and negative. In the information stage, they may browse
through options at a physical location or consult online resources,
such as Google or customer reviews.

Your job as a brand is to give the potential customer access to the

information they want, with the hopes that they decide to purchase
your product or service. Create a funnel and plan out the types of
content that people will need. Present yourself as a trustworthy source
of knowledge and information. 

Another important strategy is word of mouth—since consumers trust

each other more than they do businesses, make sure to include
consumer-generated content, like customer reviews or video
testimonials, on your website.

Example: The customer searches “women’s winter coats” on Google to

see what options are out there. When she sees someone with a cute
coat, she asks them where they bought it and what they think of that
brand.

3. Alternatives evaluation

At this point in the consumer decision-making process, prospective

buyers have developed criteria for what they want in a product. Now
they weigh their prospective choices against comparable alternatives.

Alternatives may present themselves in the form of lower prices,

additional product benefits, product availability, or something as
personal as color or style options. Your marketing material should be
geared towards convincing consumers that your product is superior to
other alternatives. Be ready to overcome objections—e.g., in sales
calls, know your competitors so you can answer questions and
compare benefits.

Example: The customer compares a few brands that she likes. She knows
that she wants a brightly colored coat that will complement the rest of
her wardrobe, and though she would rather spend less money, she also
wants to find a coat made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the purchase.
Once they have gathered all the facts, including feedback from
previous customers, consumers should arrive at a logical conclusion
on the product or service to purchase.

If you’ve done your job correctly, the consumer will recognize that
your product is the best option and decide to purchase it.

Example: The customer finds a pink winter coat that’s on sale for 20%
off. After confirming that the brand uses sustainable materials and
asking friends for their feedback, she orders the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves reflection

from both the consumer and the seller. As a seller, you should try to
gauge the following:

 Did the purchase meet the need the consumer identified?

 Is the customer happy with the purchase?
  How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues to have a

positive experience with your product. Post-purchase engagement
could include follow-up emails, discount coupons, and newsletters to
entice the customer to make an additional purchase. You want to gain
life-long customers, and in an age where anyone can leave an online
review, it’s more important than ever to keep customers happy.

A-C-M-E-E Model :-

Building a sales training program requires five major decisions. Some

sales training specialists refer to these

decisions as the A-C-M-E-E decisions – Aim, Content, Methods,

Execution, and Evaluation. The specific training

aims must be defined, content decided, training methods selected,

arrangements made for execution, and

procedures set up to evaluate the results.

The aims, contents and methods steps are the why, what, and how
decisions, while the execution step is the who,

where and when decisions. The evaluation step is the appraisal of

results, that is, the extent to which the ‘why-s’

were accomplished. Evaluation requires comparison with the program

aims.
What is personal selling?
Personal selling is one of the forms of promotion or marketing
communications used by organizations to communicate with the marketplace
and drive purchases of their products. Along with advertising, public relations,
and sales promotion – personal selling makes up the promotions mix or
marketing communications mix of a company.

Personal selling can be defined as: direct person-to-person communication

between sellers and potential customers, with the aim of persuading potential
customers to purchase products.

Personal selling often occurs face-to-face, however it can also take place through
telephone conversations, online video conferencing or online text
communication.

Personal selling is an effective way to promote and sell high priced and/or
complex products. This is because the person-to-person approach allows for
detailed explanation of products and any individual questions or concerns the
customer has can be immediately addressed.

Main Steps in the Personal Selling

Process
There are many steps involved in the process of personal selling: prospecting,
pre-approach, approach, sales presentation, handling objectives, and follow up.

Prospecting

The first step of the personal selling process is called ‘prospecting’. Prospecting
refers to locating potential customers. There are many sources from which
potential customers can be found: observation, social contacts, trade shows,
commercially-available databases, commercially-available mail list and cold
calling.
Pre-Approach

The nest step in the personal selling process is called the ‘pre-approach’. The pre-
approach involves preparation for the sales presentation. This preparation
involves research about the potential customers, such as market research.
Research is useful in planning the right sales presentation. During the pre-
approach the salesperson may also plan and practice their sales presentation.

The Approach

The next step in the personal selling process is called the ‘approach’. The
approach refers to the initial contact between the salesperson and the
prospective customer. During this stage the sales person takes a few minutes for
“small talk” and get to know the potential customer. The goal of the approach is
to determine the specific needs and wants of the individual customer, as well as
allowing the potential customer to relax and open up.

Sales Presentation

The next step in the personal selling process is called the ‘sales presentation’. The
sales presentation involves the salesperson presenting the product or service,
describing its qualities and possibly demonstrating features of the product.
Ideally the sales presentation will be individualized to match the needs and
desires of the potential customer.

Handling Objectives

In some cases, after receiving the sales presentation, the potential customer will
have some questions or concerns. In order to secure a sale, the salesperson must
address these questions or concerns; this step is referred to as ‘handling
objectives.’
Closing the sale

The next step in the personal selling process is referred to as ‘closing the sale’.
‘Closing the sale’ refers to finalizing the sale and persuading the potential
customer to make the purchase. During the ‘closing the sale’ step, prices and
payment options may be negotiated.

Follow up

The final step in the personal selling process is referred to as the ‘follow up.’ The
follow up involves the salesperson contacting the customer after the sale to
ensure that the customer is satisfied. If the customer has any existing issues with
the product, the salesperson will address them. A successful follow up stage of
personal selling can be very effective in ensuring repeat sales, evaluating the
effectiveness of the salesperson, and obtaining additional referrals from the
satisfied customer.