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Sales Related Marketing Policies - 121468708
Sales Related Marketing Policies - 121468708
Agenda
Product Policies - What To Sell ?
Policy on Discounts
1. Trade Discounts
2. Quantity Discounts
Pricing Policies
Geographical Pricing Policies
1. Free on Board (F.O.B) pricing – customer pays the freight
2. Delivered pricing – seller pays the freight
3. Freight absorption – compromise between delivered and F.O.B
pricing.
FORMULATING
PERSONAL-SELLING STRATEGY
AGENDA
Competitive Settings
--Pure, Monopolistic, Oligopolistic, No Direct Competition
Not a real world situation and hence no company concerns itself with a
particular personal selling strategy for Pure Competition
Monopolistic
Many competing producers sell products that are differentiated from one
another (ie. the products are substitutes, but are not exactly alike)
Strategies of one player has deep impact on the strategies of other players
Quantitative
Vary with competitive setting
Short Term
Adjusted from operating period to operating period
Since short term, they impact more upon the size of the sales force
than upon the nature of the sales job
Determining the kind of Sales Personnel
Each company deals with unique set of marketing factors:
Strengths & Weakness of products
Motivations and buying practices of its customers and prospects
Pricing Strategy
Competitive Setting
Different selling jobs require different levels of selling and non selling
activities, training, technical and other knowledge
Market Specialists
Product is non technical
When different kinds of customers have unique buying problems and
require special sales approaches or need special service
Combination of both
Technical Selling
Usually salespersons are creative and ingenious and posses high degree of
resourcefulness
2. Decide on the length of time per sales call and desired call frequencies on
each class
3. Calculate the total work load involved in covering the entire market
A salesperson may represent more or less than one sales personnel unit
depending upon his/her skills and expertise
Dividing the above amount into forecasted sales volume and allowing for
sales force turnover results in an estimated number of salespeople needed
Sales Potential Method
N = S/P (1 + T)
Based on the proposition: Net profits will increase when additional sales
personnel are added if the incremental sales revenue exceed the incremental
costs incurred
Calculate the net profit contribution resulting from the addition of each
salesperson
Incremental Model
Not suited where personal selling is not the primary means of making
sales (where advertising and other promotions play an important
role)
• Compensation Pattern
• Conclusion
Effective Sales Executive
The job of the sales executive is more action oriented and
– Organization
– Communications
– Control
Performance is satisfactory when,
quantities budgeted
Profit contribution of the sales department is in line with plan
marketing management
Turnover of sales personnel is maintained at a level regarded
– Control
– Administration
– Communications
• Performance is satisfactory when,
quantities budgeted
– District’s total expenses are no higher than the amounts
budgeted
– Profit contribution of the district office and warehouse and
- Operating
- Sales Force Management
- Handling relationships with personnel in other
company departments and with trade
- Communicating and coordinating with other
marketing executives
- Reporting to some superior executive
- Planning
- Setting personal-selling goals
- Developing sales program designed to achieve these
goals
- Formulating sales strategies and personal-selling
strategies
- Putting together plans for their implementation
The sales force must be kept updated about all the latest
promotional activities
Relations with Pricing Management
Sales executives have much clearer ideas of the prices the