Noida Institute of Engineering and Technology, Greater

Noida

Unit-1
Introduction of Sales

Sales and Retail Management

Ms Namrata Singh
(AMBAMK0411)
Asst Prof.
MBA-4th Sem Dept of MBA

Faculty Name: Namrata singh AMBAMK041 UNIT 1

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 Syllabus
UNIT-I Introduction of Sales 08 Hours
Introduction to Sales: Role of selling in marketing, Personal selling, Salesmanship
and sales manager, Types of sales personnel, Characteristics of a successful
salesman, Theories of selling, Sales management, Process of effective selling.

UNIT -2 Building Sales Organization 08 Hours

Building Sales Organization: Types of sales organizations and their structure,
Functions and responsibilities of sales person, filling sales positions, Recruitment,
Selection, Training and Development, Development and Conducting Sales training
programme.

UNIT-3 Leading Sales Organization 08 Hours

Leading Sales Organization: Sales force motivation, Designing & Administering,
Sales force compensation plans, Designing incentives and contests, Sales
forecasting, Sales budget, Sales quota, Sales territory, Building sales reporting
mechanism and monitoring, Sales force productivity, Sales force appraisal.
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 Syllabus
UNIT-4 Introduction to retailing 08 Hours

Introduction, Meaning of Retailing, Economic Significance of Retailing, Product Retailing

vs. Service Retailing, evolution of retailing- global retailing scenario- Indian retail –
emerging trends in retailing in India.
Types of Retailers: Classification by Ownership – Independent Store, Chain stores,
Franchise Stores, leased Departments, Cooperatives; Classification by Strategy – General
Merchandise Retailers, Discount Stores, Specialty Stores, Off Price Retailers; Classification
by Product Line – Department stores, Supermarkets, Hypermarkets, Convenience Stores,
Services retailing.
UNIT-5 Retail Market Strategy 08 Hours

Retail Marketing Strategy: differentiation, growth strategy, strategic retail planning process.
Retail Location & site selection Strategy: Types of retail locations, Steps involved in
choosing a retail location, Methods of evaluating a trading area.
Retail store layout & visual merchandising: Store planning, Store Design and the retailing
mix, Space mix, effective space management, Store layout – circulation plan, Floor
Space
management. Markups and Markdowns, Shrinkage in merchandise management

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 Topic Objective /Topic Outcome

Unit 1: Introduction of Sales

Topic 1:
 Introduction to sales and selling
 Role of Selling in Marketing
 Types of selling

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 Introduction to Sales (CO1)

Definition:

The committee of American Marketing Association has defined it as-

“Selling is the personal or impersonal process of assisting and or persuading
a prospective customer to buy a commodity or a service or to act favourably
upon an idea that has commercial significance to the seller.”

Characteristics of Selling:
1. Basis of exchange
2. Centres around salesmanship
3. Means of promotion
4. Creative function
5. Social character
6. Ingredient of marketing programme
7. Perpetual function
8. Productive function

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 Role of selling in marketing (CO1)

1. Product Planning and Development

2. Marketing research
3. Creation of Demand
4. Establishing Contact with the
Buyers
5. Negotiations
6. Entering into a Contract

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 Types of selling (CO1)

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 Types of selling (CO1)

1. Order taker salespeople

• Inside order takers: Retail sales assistants. For eg. Walmart, Big Bazaar
• Delivery salespeople: Deliver products to customer’s addresses
• Outside order taker: Visit customers regularly and respond to the customer’s
call

2. Order Producers
• Promoters: convince the consumer to mention the seller’s products.

3. Order Maker
• New Trade vendors: Finding entirely new customers
• Supervisory sellers: industrialized buyers, purchasing for resale and corporate
buyers.
• Customer sales assistant
• High -tech sales representative
• Marketing

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 Daily Quiz

1. Define sales.

2. Salespeople who conduct business from their offices through telephones

and visiting to customers site is known as .

3. Who is a missionary salesman?

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 Topic Objective /Topic Outcome

Unit 1: Introduction of Sales

Topic 2:
 Introduction to personal selling
 Meaning of salesmanship
 Types of salesmen

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 Personal selling (CO1)

“A face to face persuasive between a seller and a

communication prospective buyer” (Daniel S.
Warner).
Personal selling is also known as face-to-face selling in which one person
who is the salesman tries to convince the customer in buying a product. It is
a promotional method by which the salesperson uses his or her skills and
abilities in an attempt to make a sale.

Features :
1. Human contact
2. Development of relationship
3. Two-way flow of information
4. Quick communication
5. Satisfaction
6. Persuasion

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 Objectives of Personal selling (CO1)

1. To enhance the sales volume of the different products of the company

2. To ensure the there is a proper mix of products in the total sales volume
3. To ensure that the market share of the company is increased
4. To ensure that the profits of the company have improved
5. To bring down or reduce the overall selling expenses of the company
6. To gain new accounts and ensure that there is growth of the business
7.It helps in the appointment of dealers and expansion of the distribution
channel.

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 Objectives of Personal selling (CO1)

8.To secure channel members co-operation in stocking as well as selling

the products of the company.
9. To achieve the desired proportion of cash and credit sales.
10. To provide pre-sale and after-sale services.
11. To train the dealers and customers.
12. To assist and support other promotional measures.
13. To help in collecting the amounts due from the market.
14. To help in gathering and reporting marketing intelligence.

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 Salesmanship (CO1)

Salesmanship is “the process whereby the seller ascertains and activates the
needs or wants of the buyer and satisfies the needs or wants to the mutual
continuous advantage of both the buyer and seller” (Pedeson & Wright).

FEATURES OF SALESMANSHIP
1. Pressure Salesmanship
2. Persuasion Aiming at Service
3. Winning of Buyer’s Confidence
4. Mutual Benefit
5. Educative Process
6. Creative

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 Personal selling (CO1)

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 Types of salesmen (CO1)

TYPES OF SALESMAN
1.Manufacturer’s Salesman
a) Missionary Salesmen
b) Promotional Salesmen
c) Merchandising Salesmen
d) Dealer Servicing
salesmen

2) Wholesalers

Salesman 3)Retailer’s

Salesmen

4) Specialty

Salesmen 5)Others
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 Daily Quiz

1. Define personal selling.

2. Give two types of salesmen.
3. Give an advantage and disadvantage of personal selling.

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 Topic Objective /Topic Outcome

Unit 1: Introduction of Sales

Topic 3:
 Qualities of a good salesman
 Introduction to sales
management
 Difference between personal
selling, Salesmanship and sales
management

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 QUALITIES OF GOOD SALESMAN (CO1)

PHYSICAL QUALITIES
1. SOUND HEALTH
2. GOOD APPEARANCE
3. CHEERFUL DISPOSITION
4. ALLURING POSTURE
5. IMPRESSIVE VOICE

MENTAL QUALITIES
6. CONFIDENCE
7. INITIATIVE
8. OBSERVATION
9. ALERTNESS
10. IMAGINATION
11. ENTHUSIAM
12. AGGRESSIVENESS
13. PATIENCE
ADAPTABILITY
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 QUALITIES OF GOOD SALESMAN (CO1)

SOCIAL QUALITIES
1. EXTROVERT
2. COURTEOUS
3. CO-OPERATIVE
4. WELL-MANNERED
5. TACTFULNESS
6. CONVERSATION
7. INTELLIGENCE
8. COMMUNICATION
9. SENSE OF HOMOUR

CHARACTER
QUALITIES
10. COURAGE
11. SINCERITY
12. DETERMINATION
13. MATURITY
14. LOYALTY
15. INDUSTRIOUS
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 QUALITIES OF GOOD SALESMAN (CO1)

TECHNICAL QUALITIES
1. PRODUCT KNOWLEDGE
2. PRODUCER’S KNOWLEDGE
3. CUSTOMER’S KNOWLEDGE
4. SELLING TECHNIQUES
5. MARKET KNOWLEDGE

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 Sales Management (CO1)

According to American Marketing Association, sales management is “the

planning, direction and control of professional selling including recruiting,
selecting, equipping, assigning, routing, supervising, paying and motivating to
the personal sales force.”

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 Sales Management (CO1)

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 Difference (CO1)
BASIS PERSONAL SELLING
Personal selling is an act
of engaging with
Meaning customers to persuade
them to buy the product.
It is most flexible as the
messages could be
Flexibility changed according to the
customer’s needs.
Only one or two
customers can be dealt in
Reach
one time.
Cost per person is high as
Cost per person limited persons can be
reached at a given time.
Coverage It takes a long time to
cover the market.
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SALESMANSHIP SALES MANAGEMENT
It is an act of being Sales management is an
employed as a act of planning,
salesperson. Salesmanship controlling, directing and
is an art and skill of coordinating the sales
initiating selling efforts. process.
It is comparatively less It is least flexible as the
flexible than personal rules and policies are
formed and followed
selling.
strictly.
It reaches to masses in the
Only a limited number of form of advertising and
persons can be contacted. other marketing
communications.
Cost is comparatively Cost per person is very
lower than personal less.
selling.
It takes comparatively less It takes medium time to
time to cover the market. cover the market.
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 Difference (CO1)

BASIS PERSONAL SELLING SALESMANSHIP SALES MANAGEMENT

Media It does not make use of Makes comparatively less Makes use of mass
mass media. use of mass media. media.
Direct feedback can be Indirect feedback can be Feedback is not possible
Feedback collected from collected. because customers are
customers. not involved.

Useful for More useful for industrial More useful for a Useful for all kinds of
and customized product. technical product. product.
Personal selling is a part Sales management has a
of sales management broader scope as it
and the scope of Salesmanship is included guides both personal
Scope personal selling is under personal selling. selling and salesmanship
narrower than sales efforts.
management.

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 Daily Quiz

1. Differentiate between personal selling and salesmanship.

2. Define salesmanship.
3. Enumerate the qualities of a good salesman.

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 Topic Objective /Topic Outcome

Unit 1: Introduction of Sales

Topic 4:
 Theories of selling
 Process of selling

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 Theories of selling (CO1)

A. AIDAS Theory of Selling:

1. Attention
2. Interest
3. Desire
4. Action
5. Satisfaction

B. “Right set of circumstances” Theory of Selling:

•It is also called the “situation-response” theory.
•The major emphasis of the theory is that a particular circumstance
prevailing in a given selling situation will cause the prospect to respond in a
predictable way.
•The set of circumstances can be both internal and external to the
prospect.
•It stresses that the salesman must control the situation in such a way as
to
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 Theories of selling (CO1)

C. “Buying Formula” Theory of

Selling:
The buyer’s needs or problems receive major attention, and the
salesperson’s role is to help the buyer to find solutions.

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 Theories of selling (CO1)

D. Behaviour Equation Theory of Selling:

•Based on stimulus response model.

Howard incorporated these four elements into a behavioural equation that is:
B=P×D×K×V
P = Response or internal response tendency, i.e. the act of purchasing a brand or
a particular supplier.
D = Present drive or motivation level
K = “Incentive potential” that is, the value of product or brand or its perceived
potential value to the buyer.
V = Intensity of all cues: triggering, product or informational.

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 Process of effective selling (CO1)

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 Daily Quiz

1. Give the process of selling.

2. Explain the AIDAS model.
3. Throw some light on the Behavioural theory of selling.

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 MCQs
1. Sales management achieves personal selling objectives through ……………
(1) Personal Selling Strategy
(2) Interpersonal selling strategy
(3) Selling strategy
(4) (4) None of the above
2. ………….is the fundamental guiding principle of sales management.
(5) Customer delight
(6) Customer orientation
(7) Client satisfaction
(8) None of the above
3. In an organization ………………..is also very useful when technically complex products are in the
process to sell.
(9) Individual selling approach
(10)Group selling approach
(11)Team based selling approach
(12)None of the above
4. Ask for order, review points of agreement, help in writing up the order, ask which model the
customer wants, note that customer will lose out if not ordered now; offer incentives to buy now –
lower price, larger quantity for same price are several techniques of _ _ _ _ __.
(13)Approach
(14)Pre-approach
(15)Follow-up
(16)Closing
(5) Relationship marketing Faculty Name: Namrata singh
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 MCQs
5. J.A Howard gave a formula for ‘’Behavioral Equation”
B=P*D*K*V
What P stands for?
(1)response or the internal response tendency, that is, the act of Purchasing a brand or
patronizing a supplier
(2) predisposition or the inward response tendency, that is, force of habit
(3) present drive level
(4) “incentive potential,” that is, the value of the product or its potential Satisfaction to
the buyer
6. Reduce buyer concerns that might have arisen after the sale, reveal problems,
assure buyer of salesperson's interest, ensure customer satisfaction and repeat
business is called
(5) Approach
(6) Follow- up
(7) Closing
(8) Pre-approach

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 MCQs
7. What is the next step after “negotiation” in personal selling process?
(1) The opening
(2) Need and problem identification
(3) Closing the sale
(4) Dealing with objectives
8. What are the key concepts of personal selling?
(5) Needs analysis
(6) Demonstration
(7) Sale presentation
(8) All of these
9. Asking referrals from the customers, reward proper scouting, identifying good leads from bad ones
is _ _ _ step of personal marketing.
(9) Approach
(10)Handling objections
(11)Pre-approach
(12)Prospecting and qualifying
10. Salespeople who conduct business from their offices through telephones and visiting to customers
site is known as
(13)Outside sales force
(14)Inside sales force
(15)Team selling
(16)None of these
.
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