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MBM 411: Marketing of Services

DHA 1: Explain the salient features of services and how service marketing differentiates from goods
marketing.

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when business rules or structures change.

Salient Features:

The salient features of behavioural geography are as under:

1. The behavioural geographers argued that environmental cognition (perception)

upon which people act may well differ markedly from the true nature of the real

environment of the real world.

Space (environment) thus can be said to have a dual character:

(i) As an objective environment—the world of actuality—which may be gauged by

some direct means (senses); and

(ii) As a behavioural environment—the world of the mind— which can be studied

only by indirect means.

2. Secondly, behavioural geographers give more weight to an individual rather than to

groups, or organizations or society.

In brief, an individual rather than a group of people or social group is more important

in man-nature relationship.

3. Behavioural approach in geography postulated a mutually interacting relationship

between man and his environment, whereby man shaped the environment and was

subsequently shaped by it (Gold, 1980:4).

4. The fourth important feature of behavioural geography is its multidisciplinary

outlook. A behavioural geographer takes the help of ideas, paradigms, and theories

produced by psychologists, philosophers, historians, sociologists, anthropologists,

ethnologists and planners. However, the lack of theories of its own is coming in the

way of rapid development of behavioural geography.

DHA 2: What do you mean by SERVQUAL? Explain its various dimensions for measuring service
quality.
DHA 3: Explain why 4Ps marketing mix framework becomes inadequate in marketing services.
DHA 4: What are the main objectives of CRM? What is the role of CRM in delivering a customer
relationship strategy?

DHA 5: What are the marketing implications of intangibility, inseparability, perishability and
heterogeneity for education services? Discuss with the help of suitable examples.

MBM 414: SALES FORCE MANAGEMENT

DHA 1: "Fundamental to understanding salesmanship is recognition that it involves buyer-seller

Interactions". Discuss with reference to the buyer-seller dyad.
Ans: SALESMANSHIP AND PERSONAL SELLING BUYER SELLER DYADS AND PERSONAL SELLING SITUATIONS

Personal selling is a broader concept then salesmanship. Personal selling, along with other
marketinge l e m e n t s s u c h a s p r i c i n g a n d a d v e r ti s i n g , i s a m e a n s f o r i m p l e m e n ti
n g m a r k e ti n g p r o g r a m s . Salesmanship is one aspect of the personnel selling. It is the art of
successfully persuading customersto buy products or services from which they can derive suitable
benefits thereby increasing their total satisfaction.

CHAPTER 2SALESMANSHIP AND PERSONAL SELLINGBUYER SELLER DYADS AND PERSONAL SELLING SITUATIONS
Personal selling is a broader concept then salesmanship. Personal selling, along with other
marketinge l e m e n t s s u c h a s p r i c i n g a n d a d v e r ti s i n g , i s a m e a n s f o r i m p l e m e n ti
n g m a r k e ti n g p r o g r a m s . Salesmanship is one aspect of the personnel selling. It is the art of
successfully persuading customersto buy products or services from which they can derive suitable
benefits thereby increasing their totalsatisfaction.

Buyer-seller Dyads
Fundamental to understanding salesmanship is recognition that it involves buyer-seller
interactions.Sociologists use the term “dyad to describe a situation in which two people interact. !he
salespersonand the customer interacting with each other constitute one e"ample of buyer-seller dyad.
#nother isthe interacti on of a seller using adverti sing with a parti cular prospect in the
reading, listening or viewing audience. In both advertising and personal selling, the seller seeks to
motivate the
prospect buyer to behave favorably towards the seller. $hether or not the buyer reacts as the seller de
siresdepends upon the nature of the interacti on. !he opportunity for interacti on is less
in the adverti singcase than in personal selling. %owever, advertising and personal selling often
supplement or supporteach other and the buyer reacts to their combined impact.

PERSONAL SELLING SITUATIONS

0 o n s i d e r a b l e d i v e r s i t y e " i s t s a m o n g p e r s o n a l s e l l i n g s i t u a ti o n s a n d i t i s h e l
p f u l t o d i s ti n g u i s h between service and developmental selling. Service selling aims to obtain sal
es from e"istingcustomers whose habits and patterns of thought are already conducive to such sales.
1evelopmentalselling aims to convert prospects into customers. In other words it seeks
to create customers out
of people who do not currently view salesperson company favorably and who likely are resistant toch
anging present sources of supply. 1iff erent sales positi ons re2uire diff erent amount
and kinds ofservice and developmental selling. 3cmurry and #rnold classify positi ons
on a spectrum rangingfrom the very simple to the highly comple". !hey categori4e
sales positi ons into three mutually e"clusive groups each containing subgroups totaling to nine
subgroups in all5
Gr!u# A $Ser%&e Sell"'(
.Inside order taker- waits on customers6 for e"ample, the
s a l e s c l e r k b e h i n d t h e n e c k w e a r counter in a men*s store.

1elivery salesperson- 3ainly engages in delivering the

p r o d u c t 6 f o r e " a m p l e , p e r s o n s delivering milk, bread or fuel
oil.7 . 8 o u t e o r 3 e r c h a n d i s i n g s a l e s p e r s o n - 9 p e r a t e s a s a n
o r d e r t a k e r b u t w o r k s i n t h e fi e l d - t h e soap or spice salesperson calling on
retailers is typical.: . 3 i s s i o n a r y - a i m s o n l y t o b u i l d g o o d w i l l o r t o e d u c a t e
t h e a c t u a l o r p o t e n ti a l u s e r a n d i s n o t e"pected to take an order6 for
e"ample, the disti llers missionary and the pharmaceuti cals company*s “detail person.; . !
echnical salesperson- emphasi4es
t e c h n i c a l k n o w l e d g e 6 f o r e " a m p l e , t h e e n g i n e e r i n g sales
person, who is primarily a consultant to “client companies

Gr!u# C $Bas&ally De%el!#)e"tal Sell"'* +ut Re,ur"' U"usual Creat%ty(

> . “ P o l i ti c a l ,  “ i n d i r e c t ,  o r “ b a c k - d o o r  s a l e s p e r s o n -
s e l l b i g ti c k e t i t e m s , p a r ti c u l a r l y commoditi es or items with no
truly competi ti ve features. Sales are consummated through rendering highly personali4ed
services to key decision makers in customers organi4ations6 fore"ample, the salesperson who lands
large orders for flour from baking companies by cateringto key buyers interests in fishing, golfing
,blondes or the like.? . S a l e s p e r s o n e n g a g e d i n m u l ti p l e s a l e s - i n v o l v e s s a l e
o f b i g ti c k e t i t e m s w h e r e t h e s a l e s p e r s o n m u s t m a k e p r e s e n t a ti o n s t o s e v e r
a l i n d i v i d u a l s i n t h e c u s t o m e r s o r g a n i 4 a ti o n , u s u a l l y a committ ee, only one of
which can say “yes, but all of whom can say “no*6 for e"ample the account e"ecutive of
an advertising agency who makes presentations to the “agency selectioncommittees of advertisers-
even after the account is obtained, the salesperson has to work to retail it.

CHARACTERISTICS OF EFFECTIVE SALES PEOPLE

the ability to effectively understand and use one*s own emotions and the emotions of people with
whom one interacts. It has four aspects5

Creat 顎€%顎€ty -
聽 t h e t r a i t o f h a v i n g t h e i m a g i n a ti o n a n d i n v e n ti v e n e s s a n d u s i n g i t t o
c o m e u p w i t h n e w solutions and ideas.
E)!t!"al "tell'e"&e -
the ability to effectively understand and use one*s own emotions and the emotions of people with
whom one interacts. It has four aspects5
Creat%ty -
t h e t r a i t o f h a v i n g t h e i m a g i n a ti o n a n d i n v e n ti v e n e s s a n d u s i n g i t t o c o m e
u p w i t h n e w solutions and ideas.
le:+lty-
adapti ng diff erent sales approaches to diff erent selling situati ons. !
he sales person mustalways be sensitive to what*s happening and fle"ible enough to make those
adaptations duringthe sales presentation.
M!t%at!"-
this is what creates an inner and compelling drive in a person to act. Successful sales peopleare self-
starters who do not need the fear inspired by a glaring manager to get them going inthe morning or to
keep them working hard all day.
De#e"da+lty a"d trust;!rt."ess-
0ustomers develop long-term relationship with sales people who aredependable and trustworthy.
Such sales people are not interested in what the customers will buy this time but also in getting orders
in the years to come.
Pers!"al "te'rty a"d .'. et.&al sta"dards -
 o o d e t h i c s i s g o o d b u s i n e s s a n d w i t h ti m e customers are able to find
out who can be trusted and who cannot

聽
Cust!)er a"d #r!du&t <"!;led'e-
&ff ecti ve sales people need to know how businesses make purchase decisions and how
individuals evaluate product alternatives. In addition, they need to knowhow their product works
and how the product features are related to the product benefi ts customers are seeking.
G!!d &!))u"顎€&at 顎€!" s<顎€lls-
#n effective sales person needs to be a good communicator, but talking is note n o u g h . ! h e s a l e s
p e r s o n m u s t a l s o l i s t e n t o w h a t t h e c u s t o m e r s a y s , a s k 2 u e s ti o n s
t h a t uncover problems and needs and pay attention to the 聽 responses.
Res 顎€l 顎€e"&e -
!hey understand that selling has cycles and they do not allow themselves to be overwhelmedwhen
sales are not going well.
Pers 顎€ste"&e -
!hey don*t take re)ection personally6 they understand when clients opt for another product
oranother company. !hey handle ob)ections professionally and understand that selling is a gameof
numbers where chances of success are 聽 e2ual to the
聽
number of attempts one
聽
makes.
聽 A+顎€l 顎€ty t! /!ll!; 顎€"stru&t 顎€!"s-
顎價 eat salespeople are able to take instructions of their 3anager who has beenemployed to make
them successful. !hey know success will re2uire the 聽 manager*s hands.
Pr!/ess 顎€!"al 顎€s) -
!he appearance and behaviour of successful sales people inspires confi dence and trust. !
hey*re keen on the following5

DHA 2: What are the advantages and disadvantages of creating sales organizations based on
products; geographical and customers of the organization.

Sales Organisation: 4 Forms of

Sales Organisation – Explained!
Article shared by

The following are the basis of forms of sales organization:

1. On The Basis Of Geographic Areas:

In the case of a large sized firm, sales organisation may be made on the basis of

geographical area. In this case duplication of selling agents is eliminated. A single

trader or salesman sells the products of a producer in a particular area or locality.

Producers selling the production at a national or international level prepare their sales

organisation on this basis.

ADVERTISEMENTS:

This is shown in the following diagram:

2. On The Basis Of Products:

In such a form of sales organisation departments for the sale of different types of

products are established. This is used in a firm which produces or sells different types

of goods. Salesmen are given training for the sale of a particular product and they are

specialists in that.

ADVERTISEMENTS:

This is shown in the following diagram:

3. On The Basis Of Customers:

A company produces goods of specific nature such as special tastes, interest or

fashions of the customers. Sales organisation should be made on the basis of

customers. Personal and intimate relations between the salesmen and customers help

in the utmost satisfaction of the individual customers and in increasing sales.

Salesmen should know the behaviour and personal likes and dislikes of each of their

customers in order to serve them efficiently.

ADVERTISEMENTS:

This is shown in the following diagram:

4. On The Basis Of Sales Activities:

For a large-sized enterprise that has succeeded in developing extensive sales both

within and outside the country, the organisation chart given below portrays

organisational arrangements of the marketing department.

Sales managers, both for home and export sales, are entrusted with command or line

authority by the general sales manager and they are accountable to the general sales

manager for achieving predetermined goals of sales.

ADVERTISEMENTS:

In their marketing work, sales managers are assisted by a number of area sales

managers and overseas agents. To give necessary advice and service for facilitating

the actual selling work, four staff positions are created in the organisation, namely, the

advertising manager, the sales promotion manager, the merchandising manager and

the market research and development manager.

These managers have staff authority along with functional authority vested in them

and they are not directly responsible for actual selling. They confine their activities to

giving advice and service to the managers with line authority.

The role of the advertising manager and sales promotion manager is that of demand

creation, expansion of sales etc. The merchandising manager makes the products

ready for sales by overseeing the work of designing, packaging labelling and

branding.

He also makes for warehousing and transporting arrangements for the dispersal of

products throughout market areas. The market research and development manager

gathers relevant market information, classifies market data and presents facts for the

guidance of marketing efforts.

But the lower volume of sales in the case of smaller concerns does not warrant the

creation of so many managerial positions. In such cases, the general sales manager

may perform the functions of other managers himself and the entire marketing work

may be carried on with the help of one or two area managers, one advertising manager

and an additional manager for sales promotion and marketing research.

For staffing the sales organisation, the selection and training of personnel are usually

made by the personnel manager. The sales manager engages the available men and

makes appropriate placement of personnel.

Small enterprises which do not set up a separate personnel department authorise the

marketing manager to make his own arrangement for selecting, training and

developing the sales force.

Scope of Sales Organisation:

Sales organisation establishes a link between the producers and consumers. Selling

departments are the ears of the business concern. They convey the complaints and

suggestions of the customers to the producers for the further improvement in the

goods and also for providing efficient service to customers.

They also convey the viewpoint of producers to their customers. This helps in

establishing closer link between the two viz., producers and customers.

Sales organisation in a business or industrial concern performs the following

functions:

(i) Study of distribution trends.

(ii) Research of markets.

Sales Organisation: 4 Forms of
Sales Organisation – Explained!
Article shared by
The following are the basis of forms of sales organization:

1. On The Basis Of Geographic Areas:

In the case of a large sized firm, sales organisation may be made on the basis of

geographical area. In this case duplication of selling agents is eliminated. A single

trader or salesman sells the products of a producer in a particular area or locality.

Producers selling the production at a national or international level prepare their sales

organisation on this basis.

ADVERTISEMENTS:

This is shown in the following diagram:

2. On The Basis Of Products:

In such a form of sales organisation departments for the sale of different types of

products are established. This is used in a firm which produces or sells different types

of goods. Salesmen are given training for the sale of a particular product and they are

specialists in that.

ADVERTISEMENTS:

This is shown in the following diagram:

3. On The Basis Of Customers:

A company produces goods of specific nature such as special tastes, interest or

fashions of the customers. Sales organisation should be made on the basis of

customers. Personal and intimate relations between the salesmen and customers help

in the utmost satisfaction of the individual customers and in increasing sales.

Salesmen should know the behaviour and personal likes and dislikes of each of their

customers in order to serve them efficiently.

ADVERTISEMENTS:

This is shown in the following diagram:

4. On The Basis Of Sales Activities:

For a large-sized enterprise that has succeeded in developing extensive sales both

within and outside the country, the organisation chart given below portrays

organisational arrangements of the marketing department.

Sales managers, both for home and export sales, are entrusted with command or line

authority by the general sales manager and they are accountable to the general sales

manager for achieving predetermined goals of sales.

ADVERTISEMENTS:

In their marketing work, sales managers are assisted by a number of area sales

managers and overseas agents. To give necessary advice and service for facilitating
the actual selling work, four staff positions are created in the organisation, namely, the

advertising manager, the sales promotion manager, the merchandising manager and

the market research and development manager.

These managers have staff authority along with functional authority vested in them

and they are not directly responsible for actual selling. They confine their activities to

giving advice and service to the managers with line authority.

The role of the advertising manager and sales promotion manager is that of demand

creation, expansion of sales etc. The merchandising manager makes the products

ready for sales by overseeing the work of designing, packaging labelling and

branding.

He also makes for warehousing and transporting arrangements for the dispersal of

products throughout market areas. The market research and development manager

gathers relevant market information, classifies market data and presents facts for the

guidance of marketing efforts.

But the lower volume of sales in the case of smaller concerns does not warrant the

creation of so many managerial positions. In such cases, the general sales manager
may perform the functions of other managers himself and the entire marketing work

may be carried on with the help of one or two area managers, one advertising manager

and an additional manager for sales promotion and marketing research.

For staffing the sales organisation, the selection and training of personnel are usually

made by the personnel manager. The sales manager engages the available men and

makes appropriate placement of personnel.

Small enterprises which do not set up a separate personnel department authorise the

marketing manager to make his own arrangement for selecting, training and

developing the sales force.

Scope of Sales Organisation:

Sales organisation establishes a link between the producers and consumers. Selling

departments are the ears of the business concern. They convey the complaints and

suggestions of the customers to the producers for the further improvement in the

goods and also for providing efficient service to customers.

They also convey the viewpoint of producers to their customers. This helps in

establishing closer link between the two viz., producers and customers.
Sales organisation in a business or industrial concern performs the following

functions:

(i) Study of distribution trends.

(ii) Research of markets.

(iii) Development of policies.

(iv) Investigation of sales methods.

(v) Analysis of operations.

(vi) Creation plans and programmes.

(vii) Sales promotion and advertisement.

(viii) Recruitment, selection, training and remuneration of sales force.

(ix) Sales control.

(iii) Development of policies.

(iv) Investigation of sales methods.

(v) Analysis of operations.

(vi) Creation plans and programmes.

(vii) Sales promotion and advertisement.

(viii) Recruitment, selection, training and remuneration of sales force.

(ix) Sales control.

DHA 3: In an effort to have an effective sales force, the sales executives normally tap different
sources for sales force recruiting. Discuss the various methods used.

Sales effectiveness refers to the ability of a company’s sales professionals to “win” at each stage of the
customer’s buying process, and ultimately earn the business on the right terms and in the right
timeframe.
Sales effectiveness has historically been used to describe a category of technologies
and consulting services aimed at helping companies improve their sales results.
Sales outsourcing is a way for companies to attract increased, high volumes of
sales for their products or services by using a third party. The company typically uses
outsourcing companies to improve sales volumes without links to the sales teams that
carry out those campaigns. The company that undertakes the outsourcing normally
will be paid based on the results that they are able to generate and therefore creates a
mutually beneficial situation for both Client and outsource.

DHA 4: Successful selling involves in maximizing sales output through intermediaries. How would
you use training for achieving this? What all kind of training would be required?

DHA 5: What is marketing cost analysis. Explain the various marketing cost analysis techniques.