January 1

Selling & Advertisement

2024
It is a summarized notes over selling and advertisement on the
basis of my reading and understanding as per the Revised syllabus B.com II Semester
of Lucknow University 2021, hope the reader enjoy the journey of Lucknow university
reading
Selling and Advertisement
 Syllabus
Unit 01: (Basics of Selling)

 Selling : concept nature and role in marketing

 Personal selling : evolving face of personal selling characteristics of successful sales
person
 Sales as a carrier option
 Sales training
 Consumer decision making process and what factors affect the consumer buying
behaviour
 Selling of consumer and industrial product

Unit 02: (Understanding the Selling Mechanism)

 Selling process
 Effective sales technique
 Role of relationship marketing in personal selling
 Tools of selling
 Motivating and remunerating sales person

Unit 03:

 Advertising: Concept role function scope types

 Advertising appeals: Meaning types and methods
 Advertising as persuasive communication
 Advertising design : characteristics and basic elements of advertising copy
 Advertisement : Planning creation and production
 Advertisement budget : types component and process of preparing
 Advertising agency : function and selection of agency

Unit 04:

 Advertising as a component of Integrated marketing communication AIDA and

DAGMAR model
 Advertising media : Characteristics, types merits and limitation of each media
 Media planning : selection of media category, media reach, frequency, impact cost
and other factors influencing media choice
 Problem in reaching rural and remote audiences
 Evaluating advertisement effectiveness : importance difficulties and method of
measuring advertising effectiveness
Unit 01
Basics of selling

Readers note
Before we start it is very important to understand the roots of this unit actually, this is a very
small part of a subject marketing management, which is again a subset of the subject
management in this unit we will understand various important concepts of selling so let’s
start the discussion.
# 1-A what is selling?
If you remember the basics of commerce you will find that all the subject of commerce is
directly or indirectly related to ‘Business’. Where the term business means buying and selling
of goods and services
From here only it is very clear what is selling however if we define the term it will be “ A
process of Persuading1 potential customers to buy goods or services or ideas so that certain
interest of buyer2 can be satisfied and the seller gets paid.3 In very simple terms it can be said
as “the transaction in which money is exchanged for goods and services”
Defining the term “Selling”
Various authors have given various definition of selling lets understood some of the basic
definition in order to build an institution of the concept:

 As Per Ferdinand F. Mauser: “ Selling is the process of inducting and assisting a

prospective customer to buy goods or services or act favourably on an idea that has
commercial significance for the seller”
Explanation:
So as per this definition selling is a process of providing knowledge and assisting
customer so that customer buy the goods or services or do any kind of work which is
sounds to be profitable for the owner of the business
 As per Frank H. Beach, Fredrick H. Russell and Richard H. Buskirk: “Selling is an act
of persuading another person to do something when you don’t have or cannot exert,
direct power to force the person to do it”
Explanation
As per, this definition of selling, it is an act to convince a person to do something
when the other person who is convincing has no direct power to force him for the
same.

1) Persuading – it means to convince the other party in any manner.

2) Interest of buyer- it means that the goods or services provided by the business satisfy the utility of the consumer
3) Paid – it means the profit earned by the company through such sales
# 1-B what are the features or nature of selling?
Before coming to the main point of discussion that is selling features, let’s first understand
the meaning of the words like (feature, nature or characteristics) we will be using all these
word simultaneously interchangeably, it is important to note that in real world all three word
are different from each other but when we are talking in the field of commerce they are
frequently used synonymously the basic difference is explained below

Features Qualities which make something

recognizable
Characteristics These are external qualities that make up
individual personality behaviour and
appearance
Nature These are the inherent (By Birth) quality
which separates two individual

So now assuming that all three words are same and the meaning we derive from them is
unique qualities which are present in something and which bifurcate two different things, lets
understand the key features of selling which are given as below:

 Interpersonal communication:
The term interpersonal communication means communication between two persons,
so let’s take an example to understand that how selling has a quality of interpersonal
communication.
Suppose a Youtuber say Carryminati is asking you to go and check out the brand new
collection of Arctic fox Bags then in such case there are two persons involved first
Carryminati (The selling person) and second is you (the customer), who is watching
the video.
 Dynamic and adaptive:
Now at first it is very important to understand, what is the meaning of Dynamic and
adaptive, so the term dynamic means something which keeps on changing and the
term adaptive means adaptation of different changes. So selling is dynamic in nature
because if you will focus only upon one style of selling sooner or later you will be out
of the market, hence it is very important to adapt changes of the market. So let’s take
an example to understand the same:
If you remember the last time you were watching IPL you faced a lot of advertisement
from some prominent or famous player!! So that nothing but a perfect example of
adaptivity as the company understands that during this season a lot of Indian wanted
to watch the faces of their favourite player.
 Problem solving:

Every time the customer faces certain problem now an effective sales person is one
who convert his product as the perfect solution to the problem faced by his customer.
Let’s try to built an intuition for such feature: Suppose a two random persons were
talking with each other and one of them was an salesman (Product- electronic
 vehicles), they were talking about the problems of economy and how inflation is
negatively affecting their budget (problem), now as the salesman determined the
problem of his customer he will start describing that how much an EV is effective to
your pocket…

 Product knowledge:
It is important for a sales man that he must be aware off what he is selling otherwise it
will be not only difficult but will be completely impossible for them to close the deal.
 Ethical behaviour :
Although selling means to sell a product to the next particular person but it does not
mean at all to sell such product at the cost of ethics. The term ethic here used means
maintaining integrity in all interactions, providing accurate information, and avoiding
deceptive practices.
However in the real world always crosses the boundary of ethical behaviour to sell his
product, the best example of crossing the ethical limit is of Byjus1 where the company
sold its product by the way of loan to its customer without explaining them the overall
terms and conditions.
 Continuous learning:
It is very important for a salesman to learn continuously about the new market trends
in order to determine the want of customer and in order to convince the customer to
make a purchase.
#1-Ba Principles of selling
Principles are some syentfic Rules which a salesman must keep in his mind while selling the
goods and services following are some rules which a salesman must keep in his mind

 Principle of objective- while selling the main objective of the business nust be kept in
mind by the salesman
 Principle of Profit- Profit must be justified
 Principle of continuity – Sales in business must be continuous
 Principle of trust – customer should have faith in the organizations product and
quality
 Principle of homogeneity – product must be homogenous, exception custom made
# 1-C what is the role of selling in marketing?
In order to understand what the role of selling in marketing is, it is important for you
to understand first what is marketing, hence if I speak in very simple words it is a
process by the side on an organisation to determine and satisfy the want of customer.
So from the above statement it is very clear that the concept of marketing is a broad
concept however selling is a narrow concept which is a part of marketing.
Now when we are talking about marketing the main focus is on understanding the
needs of customer and satisfying those needs.
However when we are talking about selling it means persuading potential customer to
purchase a product or services
So when we are talking about selling in marketing “it all mean that persuading the
potential customer to buy a product by effectively communicating him its value and
how such product satisfy the want of the customer”.
Now the main question which arises at this point of time is what will be the benefit
we will attain through use of this concept. Although they are many but lets try to
understand some of them

 One of the direct benefits is increase in revenue as because only selling might not help
a salesman to close the deal but effective & efficient use of selling and marketing will
defiantly lead him to close of deal.
 If an organisation is involved in selling only it is possible to make short term profit
but by the effective use of selling in advertising the organisation can increase its long
term profitability by retaining its customers.
 In this competitive world the organization can only expand its market base by
informing the customer how their goods and services effectively satisfy their needs.
 Consistently delivering value and providing exceptional customer experience built
trust, which further leads to positive word of mouth recommendation and strong brand
image.

1) Byjus : To understand the whole case study of Byjus in detail students may use the following reference link Byju’s Case
Study: from Success to Failure - knowledgehotspot.com or for video understanding they may use the following link DET
India FreeVisasforKids 16x9 (youtube.com)
# 2 (1) Personal Selling

 Meaning

It means a process which assists and persuades a prospective buyer to buy a product
in a face – to- face situation for making sales.

 Definition
Following are some of the important definition in context to selling
(A) As according to
Philip Kotler “Personal selling is personal presentation by the firms sales force
for the purpose of making sales and building customer relationship”
(B) As according to
G. Blake “Salesmanship consist of winning the buyer confidence for seller’s
goods thereby winning a regular and permanent customer”
 Features
Following are some important features of personal selling:
1) It is a face to face interaction as well as it is an interpersonal communication
2) It involves skill of convincing people and persuading them to buy a certain
product.
3) It involve winning buyers confidence
4) It is a science as well as art since it require application of specialized knowledge
and skills

Merits of Personal Selling Demerits of Personal Selling

1. Personal Interaction: Allows for direct interaction
between the salesperson and potential customer, 1. Costly: Requires significant investment in training,
fostering trust and rapport. salaries, travel expenses, and other resources.
2. Customization: Enables tailored presentations 2. Time-Consuming: Can be time-intensive, especially
and solutions to address specific customer needs for complex sales processes or when dealing with
and preferences. reluctant prospects.
3. Immediate Feedback: Provides immediate 3. Limited Reach: Limited by the availability and
feedback from customers, allowing salespeople to geographic reach of sales personnel, which may restrict
adjust their approach in real-time. market penetration.
4. Relationship Building: Facilitates relationship 4. Subjectivity: Effectiveness of sales efforts may vary
building and long-term customer loyalty through depending on the skills, motivation, and personality of
personalized interactions. individual salespeople.
5. Detailed Information: Allows for in-depth
product demonstrations, explanations, and 5. Influence of Bias: Salespeople may be influenced by
discussions, helping to overcome objections and personal biases or incentives, potentially leading to
clarify doubts. unethical practices or misrepresentation of products.
6. Flexibility: Offers flexibility in adjusting sales
strategies, pitches, and approaches based on 6. Inconsistent Performance: Sales results may fluctuate
individual customer preferences and buying due to factors like market conditions, competition, or
behavior. changes in consumer behavior.
 Merits of Personal Selling Demerits of Personal Selling
7. Closing Opportunities: Provides opportunities for 7. Resistance from Customers: Some customers may be
direct closing of sales through persuasive resistant to personal selling tactics, leading to rejection
communication and negotiation. or objections.
8. Relationship Maintenance: Enables ongoing 8. Difficulty in Measurement: It can be challenging to
relationship maintenance and post-sale support, accurately measure the ROI (Return on Investment) and
enhancing customer satisfaction and loyalty. effectiveness of personal selling efforts.

Types of personal selling

1. Transactional Selling:
 Focuses on making immediate sales and completing transactions.
 Typically used for low-cost, standardized products with short sales cycles.
 Emphasizes persuasion and closing techniques to quickly convert prospects
into customers.
2. Consultative Selling:
 Involves a more consultative approach where salespeople act as advisors or
consultants to customers.
 Focuses on understanding customer needs, diagnosing problems, and
providing tailored solutions.
 Requires active listening, asking probing questions, and offering expert advice
to build trust and credibility.
3. Solution Selling:
 Similar to consultative selling but with a greater emphasis on providing
comprehensive solutions to customer problems or challenges.
 Involves identifying customer pain points, presenting customized solutions,
and demonstrating the value proposition of the product or service in
addressing those issues.
4. Relationship Selling:
 Centers around building and nurturing long-term relationships with customers.
 Focuses on understanding customer preferences, maintaining regular contact,
and providing ongoing support and assistance.
 Emphasizes trust, loyalty, and mutual benefit to foster repeat business and
referrals.

5. Strategic Selling:
  Involves selling to key accounts or strategic clients that have significant long-
term value to the organization.
 Requires a deep understanding of the customer's business objectives, decision-
making processes, and competitive landscape.
 Involves developing customized sales strategies and building strong
relationships at multiple levels within the customer organization.
6. Team Selling:
 Involves collaboration among multiple salespeople or specialists from
different departments or functional areas.
 Used for complex sales situations or large accounts where expertise from
various disciplines is required.
 Requires effective coordination, communication, and role clarity among team
members to deliver a cohesive sales message.
7. Cross-selling and Up-selling:
 Cross-selling involves offering complementary products or services to
customers based on their existing purchases.
 Up-selling involves persuading customers to buy a more expensive or
premium version of the product or service they are considering.
 Both techniques aim to increase the value of the sale and maximize revenue
opportunities with existing customers.
8. Social Selling:
 Utilizes social media platforms and online networks to identify and engage
with prospects.
 Involves building relationships, sharing valuable content, and participating in
online conversations to generate leads and drive sales.
 Requires proficiency in digital communication tools, content creation, and
social media management.
# 2 (2) Salesman

 Meaning
A salesman is the person who is performing the selling activities for the organisation.
 Kinds of salesman
Following are some major categories of salesman.
1) Creative salesman - They create demand for a product
2) Service salesman – There are of specialization is in selling intangible product like
insurance.
3) Detail salesman – It is concerned with drug industry product.
4) Manufacturer salesman – They are those who are directly appointed by the
manufacturer in order to supplement selling activities of wholesaler and retailer
and to have first hand information about the market.
5) Wholesaler salesman – They are those who are appointed by the wholesaler for
the retailer
6) Retailer salesman – They are those appointed by the retailer it can be further
classified into two categories either an indoor sales man termed as counter
salesman or an outdoor salesman called as travelling salesman.
7) Staple salesman – those who are generally concerned with selling necessities like
food cloth stationary etc
8) Exporter salesman – this are those which help a company to work in a foreign
market and help them to search and supply product in a new market.
9) Speciality salesman - these are some of those salesman who are engaged in
selling specialised goods which are generally of high price such as Car
refrigerator etc.
 Qualities of a successful salesman

It is very difficult to say what are the core qualities of an successful salesman, as the
art of salesmanship differs from business to business and from situation to situation.
However here we are going to quote some of the common qualities of a successful
salesman:
1) Personality: A good personality is the key of an successful salesman where the
term personality includes many aspects such as physical appearance, way of
speaking, voice, posture, health, habits etc.
2) Mental Qualities: A mental quality here means qualities like imagination,
foresightedness, presence of mind, strong memory power and initiative.

1) Creation of demand means selling those commodity in market which has either no use or people are unaware about
its uses for example Organic food product: online streaming services: electronic vehicles’
2) Here it is important to consider a fact that although in India job of salesperson is considered as a low level job but
the data speaks up that 52% Indian earn on an average the same salary which a sales person earns data source-
(Rathore, 2023)
3) Some other facts which are important to remember Jordan Belfort aka famous with the name (The Wolf of Walls
treat) has also started his carrier as a sales person. Other than him Indian famous fraudsters Harshad Mehta and
Abdul karim Telgi are also on the same list of personality who started their carrier as a salesperson
 3) Sociability: A salesman should be social and must have the ability to mix up with
the people. He should not be shy and reserved, he should be able to have
interaction with all kind of people, in brief we can say that an introvert can is not
be considered as a good salesman.
4) Vocational education: although it is necessary for a salesman to have a basic
education but it is essential that a salesman to have a specialised education in
selling techniques
5) Communication ability: communication skill is the most powerful asset of a
salesman; he should be able to speak freely, clearly in a well pitched voice.
6) Patience: it is possible that sometime customer use certain phrase or try to bull out
the salesperson but the most important thing of a salesman job is patience, a
successful salesman must listen to the customer and clear their doubts.
7) Determination: A salesperson must not lose hope easily; he must poses a
determination to secure the customer.
8) Dependability: A salesman can win a permanent customer if he is honest sincere
and dependable, he should be able to win the confidence of the customer if he is to
succeed in his vocation.
# 3 Sales as a carrier option
Salesmanship is an art which and it require specialised knowledge or skills to sell a product
or services, the prime objective of salesmanship is creation or stimulation of demand for the
product or services.
As Per (Kumar, 2021) Sales function is multitasking process which require many qualities
such as appearance, intelligence, and pleasing manner, knowledge of product, understanding
about customer choice or preference and so on
Out of the total qualities as stated above some are in born in the person such as intelligence,
good personality, physique. But there are some qualities for which there is a need of training,
hence only in born qualities are not enough to make an individual a successful salesperson.
Here it is important to understand that in India majority of people see a sales carrier as a
default career choice, However if we look upon the data of leading countries say U.S there
are in total 1.56 million sales representative for wholesale and manufacturing sector
(Department, 2023) with an median salary of $61,600 per year in terms of INR it is around
49, 50,000 and it is said as the 4 most demanding jobs.
So let’s understand some of the major benefits of taking selling as a career:

 Earning potential: from the above data only it is very clear that the potential of the
salesmanship is very high, however it all depends upon the efforts of the individual.
In India the salary range somewhere around 1,20,000 to 6,50,000 annually
 Freedom: A job in sales provides freedom where he can generally structure his own
day and manage his own time, whether he is in the office or out of the road meeting
clients.
  Meet a wide variety of people: Sales career gives an opportunity to individual on
meeting with a wide range of people say one from the top class of society to the
lowest class of society, where an individual want to start his own business this
knowledge is a precious asset for him.
 Continuous learning: from the vast networks of people it provide continual learning,
a sales person can involve in researching in understanding the perception of people
towards the particular product and services, on the other hand they observe the
working of a company from the very lower level which help them in the future.
# 4 Sales Training
So in order to understand this concept we have just go back to the thing we learned earlier if
you remember the overall qualities of an effective sales person can be classified into two
categories it is briefly presented through the following diagram
By
Bir
th
Skil
ls

Sucess Full
Salesman

After
Birth
Skills

From the diagram only it is very clear that some skills are inherent in the individual and some
skills are needed to be developed or enhanced after the birth. So the concept of “Training
refers to an act of developing and enhancing skills of an employee required for a
particular kind of job”
In order to take the best from employee it is the responsibility of the employer to develop &
enhance employee skills by giving him adequate training concerning to his job. A salesman
comes into the contact of different kinds of people so the training programme must be
organized in such a manner that employee can understand the behaviour of different types of
people.
Importance of sales training
Following points in brief summarizes the importance of sales training:
  Increases interpersonal skills
 Trained salesman can win the customer easily
 It provides the salesman knowledge about the product and product competitor in the
market
 Help the management to understand the positive area of employee from which the
management can take out the maximum result
 Helps in reduction of dissatisfaction, complaints, absenteeism, and turnover among
sales force
Kinds of sales Training
Sales training programs are designed to equip sales professionals with the knowledge, skills,
and techniques necessary to effectively engage with customers, drive sales, and achieve
organizational objectives. These programs can vary in format, content, and delivery methods
based on the specific needs of the sales team and the organization. Here are some common
kinds of sales training:
1. Product Training:
 Focuses on educating sales professionals about the features, benefits, and
applications of the products or services they are selling.
 Covers technical specifications, usage scenarios, competitive differentiation,
and value propositions.
 Includes product demonstrations, case studies, and hands-on exercises to
enhance product knowledge and understanding.
2. Sales Process Training:
 Provides guidance on the step-by-step process of selling, from prospecting and
qualifying leads to closing deals and managing post-sale relationships.
 Covers techniques for effective prospecting, needs assessment, objection
handling, negotiation, and closing.
 Helps sales professionals understand the buyer's journey and tailor their
approach accordingly at each stage of the sales cycle.
3. Customer Relationship Management (CRM) Training:
 Focuses on training sales professionals to effectively utilize CRM software
tools to manage customer interactions, track leads, and forecast sales.
 Covers data entry, pipeline management, activity tracking, reporting, and
analysis.
 Helps sales teams leverage CRM systems to streamline workflows, improve
productivity, and enhance customer engagement.
4. Communication and Interpersonal Skills Training:
  Enhances sales professionals' communication skills, including active listening,
verbal and non-verbal communication, and empathy.
 Provides training on building rapport, establishing credibility, and fostering
trust with customers.
 Includes role-playing exercises, communication workshops, and feedback
sessions to practice and refine communication techniques.
5. Negotiation and Persuasion Training:
 Equips sales professionals with negotiation tactics, strategies, and techniques
to navigate objections, handle price negotiations, and close deals.
 Covers principles of persuasion, influencing factors, and effective negotiation
styles.
 Includes simulation exercises, case studies, and real-life scenarios to practice
negotiation skills and build confidence.
6. Time Management and Organizational Skills Training:
 Helps sales professionals prioritize tasks, manage their time effectively, and
stay organized to maximize productivity.
 Covers techniques for setting goals, planning activities, managing schedules,
and overcoming procrastination.
 Provides tools and strategies for efficient task management, delegation, and
follow-up.
7. Continuous Learning and Professional Development:
 Encourages ongoing learning and skill development through workshops,
seminars, webinars, online courses, and self-study resources.
 Focuses on staying updated with industry trends, market developments, and
emerging sales techniques.
 Promotes a culture of continuous improvement and self-motivated learning
among sales professionals.
Methods of Sales Training
Sales training programs are essential for equipping sales professionals with the knowledge,
skills, and techniques necessary to excel in their roles. Various methods can be employed to
deliver effective sales training programs. Here are some common methods:
1. Classroom Training:
 Traditional classroom training involves face-to-face instruction in a physical
classroom setting.
 Trainers deliver presentations, facilitate discussions, and conduct interactive
activities to impart knowledge and skills.
 This method allows for direct interaction between trainers and trainees,
promoting engagement and participation.
2. Online Training:
 Online training, or e-learning, involves delivering training content through
digital platforms and learning management systems (LMS).
 Trainees can access training modules, videos, quizzes, and interactive
simulations at their own pace and convenience.
 Online training offers flexibility, scalability, and accessibility, making it
suitable for geographically dispersed teams and remote learners.
3. On-the-Job Training (OJT):
 On-the-job training involves learning by doing, where trainees acquire skills
and knowledge through hands-on experience in real-world sales situations.
 Experienced sales professionals or mentors provide guidance, coaching, and
feedback to new hires or junior team members.
 OJT accelerates skill development, promotes practical application, and
facilitates the transfer of knowledge from seasoned professionals to novices.
4. Role-Playing Exercises:
 Role-playing exercises simulate sales scenarios and interactions between
salespeople and customers.
 Trainees take on different roles, such as salesperson and customer, and
practice applying sales techniques, handling objections, and closing deals.
 Role-playing enhances communication skills, builds confidence, and allows
trainees to refine their selling approach in a risk-free environment.
5. Case Studies and Simulations:
  Case studies and simulations present realistic sales situations and challenges
for trainees to analyze and solve.
 Trainees examine case studies of successful and unsuccessful sales scenarios,
identify key learning’s, and apply problem-solving techniques.
 Simulations provide virtual environments where trainees can experiment with
different strategies, make decisions, and observe the consequences of their
actions.
6. Workshops and Seminars:
 Workshops and seminars bring together sales professionals for intensive,
interactive learning experiences.
 Subject matter experts or industry leaders deliver presentations, facilitate
discussions, and conduct hands-on activities.
 Workshops and seminars focus on specific topics or skills, such as negotiation
techniques, presentation skills, or product knowledge.
7. Peer Learning and Coaching:
 Peer learning involves collaborative learning among sales team members
through knowledge sharing, group discussions, and peer-to-peer feedback.
 Coaching involves one-on-one guidance and support from experienced sales
managers or mentors to help individuals improve their performance.
 Peer learning and coaching foster a culture of continuous learning,
accountability, and mutual support within the sales team.
8. Feedback and Evaluation:
 Feedback and evaluation mechanisms, such as performance reviews,
assessments, and quizzes, provide ongoing feedback on trainee progress and
competence.
 Trainers and managers offer constructive feedback, identify areas for
improvement, and recognize achievements to motivate and reinforce learning.
By employing a combination of these methods, organizations can design comprehensive sales
training programs that effectively develop the skills, knowledge, and behaviors needed for
sales success. Each method offers unique advantages and can be tailored to suit the specific
needs and preferences of the sales team and organization.
# 5 Consumer decision making process and what factors affect the consumer buying
behaviour
The salesperson is ultimately going to face the consumer so it is very important for him to
understand how the consumer purchase a product or services and what are the motives behind
the purchase of such product and services, here we will discuss in detail both of them.
5(A). Consumer decision making process:
Consumer goes from five phases in deciding whether he has to buy a product or not these five
phases are represented in the following diagram

Problem Recognition At this stage consumer faces certain problem and he feels that some product is required to satisfy his want
Say a Middle class family faces problem during their travell

Information Search At this phase consumer faces consumer start his search for some products which satisfy their need
Say the family start understanding various types of cars i.e. a Seddan, MUV, SUV or hatchback

Evaluation of Alternative At this phase cnsumer start annalysing various alternative among his product need
Say if the family need is a Seddan alternatives can be Honda City; Verna: Ciaz etc

Purchase Decision At this phase the customer ultimately purchase the goods which satify their maximum need
Say the customer has purchased Honda City

Post Purchase behaviour It is said as the reaction stage which explain customer likes and dislikes and how customer will go in future
Say the customer is giving satisfactory or excellent rating

5(B) Factors influencing the consumer buying behaviour

As a salesperson, one must be aware that why a consumer buys a product or what are the
factors that affect the buying behaviour of the consumer, following diagram in brief explains
the factors that affect the consumer buying behaviour

Readers Note
It is to be noted that there is a difference between factor affecting consumer behaviour
in context of economics and marketing. Where in context of economics the focus in
purely concentrated upon demand supply and budget line, in context of marketing the
consumer behaviour is more diversified
Personal Income
Perception
Family Income
Learning
Income Expectation
Attitude
Consumer credit
Personality
Standard of Living

Economic Motivation

Personal Sociological

Age &stage of life Family

Occupation Reference Group
Lifestyle Opinion Leader
Personality & Self concept Social class and Caste

1) It is important to remember that the above mentioned diagrams are very important from exam
perspective because they are one of the most tricky part of chapter and multiple MCQ can be framed
from the above two diagrams only

#6 Selling of Consumer and Industrial goods

In order to understand the selling of industrial and consumer goods it is important to
understand first what is consumer goods and what is a industrial goods and what is the main
difference between both of them
If we are talking about the consumer goods it means a goods which satisfy the need or want
of a consumer on the other hand when such goods are used for further production they are
said to be the industrial goods
So the main difference between both of them lies in the usage, i.e. if such goods is used for
further production it will be treated as a industrial goods and if such goods is used for
consumption it will be treated as consumer goods.
 Not when the concept of both types of goods is clear it is the time to understand how selling
of consumer goods differ from selling of industrial goods, so with the help of points given
below such distinction is being explained:
1) Nature of the product
A) Consumer goods: These product are for individuals personal or household use they
are often sold in smaller quantities and are designed to satisfy the need and
preference of individual consumers.
B) Industrial goods: These products are usually demanded in bulk quantity and in
terms of quality they are more complex, specialised or customised to suit specific
business requirement.
2) Target Market:
A) Consumer goods: Target market here is the general public or specific demographic
groups, strategies of selling are focused upon creating mass appeal, brand
awareness and emotional connection with individual consumer.
B) Industrial goods: The target audience consist of businessman, manufacturer and
other enterprises, selling here is focused upon building relationship with
procurement professionals, engineers, and decision maker within the business.
3) Purchase decision making process
A) Consumer goods: purchase is generally driven by individual need, preference and
emotion. Decision making process is shorter and consumer rely on advertising
word of mouth or personal experience.
B) Industrial goods: involve a complex decision making process, it require input from
different stakeholder, process can be lengthy involving thorough research
evaluation of specification and negotiation.
4) Relationship building
A) Consumer goods: Here brand building is important and relationship between
consumer and the companies is often less personal.
B) Industrial goods: Here strong relationship is crucial, long term partnership trust
ongoing support are vital for success.
5) Sales channel
A) Consumer goods: Here goods are sold through various channels including retail
stores, E commerce platform and direct to consumer model, the focus here is on
creating a strong retail presence and effective online marketing.
B) Industrial goods: It involves a combination of direct sales, distributor relationship
and B2B transaction. Sales team may need technical expertise to understand the
intricacies of product and provide comprehensive solution to industrial client.
Summary of the unit
In this unit we were concentrated upon the following important points:
Selling is a part of marketing, and the concept of selling in brief means persuading an
potential customer to buy a particular goods or service.
At the next step we elaborated certain features of selling which were important to
understand the overall concept.
At the further step the interrelation between the marketing and selling is being
explained.
Afterwards the concept of personal selling was elaborated, which leaded towards the
discussion of salesman and qualities of successful salesman.
Salesmanship as a career option was explained with a motive that learner must
understand the potential of job.
Selling is directly related with the behaviour of consumer; hence the concept of
consumer behaviour was being explained.
At the last stage of the chapter we discussed how selling of consumer goods differs
from selling of industrial goods.
Practise questions
1. Selling is an act of _________
A. persuasion.
B. illusion.
C. forcing.
D. communication.
2. ________ influences the buyer to buy a product.
A. Price.
B. Packing.
C. Personal selling.
D. Grading.

3. ______are the major channel components who help in the transfer of goods from the hands of
producer to consumer.
A. Salesman.
B. Middleman
C. Manufacturer.
D. Creditor.
4. _______ is all psychological, social and physical behaviour of potential consumer.
A. Consumer behaviour.
B. Seller behaviour.
C. Manufacturer behaviour.
D. Household behaviour.
5. Economics explains that consumer behaviour in relation to ______ factors.
A. economic.
B. social.
C. psychological.
D. demographic.
6. A collection of individuals which influences individuals opinion are called as ____.
A. advertising agency.
B. reference groups.
C. manufacturers.
D. friends.
7. ____________________ are products bought by individuals and organizations for further
processing or for use in conducting a business.
A. Consumer products.
B. Services.
C. Industrial products.
D. Specialty products.
8. Selling emphasizes on_________ .
A. product.
B. consumers.
C. markets.
D. sellers.
9. _______ views customers as the last link in the business.
A. Selling.
B. Marketing.
C. Buying.
D. Assembling.
10. _____ Goods are meant for final consumption by consumers and not for sale.
A. Consumer goods.
B. Industrial goods.
C. Convenience goods.
D. Shopping goods.
11. ______ goods are those which are used for further production of goods.
A. Consumer goods.
B. Industrial goods.
C. Convenience goods.
D. Shopping goods.
12. Goods with unique characteristics are called as______.
A. Consumer goods.
B. Industrial goods.
C. Convenience goods.
D. Specialty goods.
13. ______ are purchased by the consumer only after careful comparison.
A. Consumer goods.
B. Industrial goods.
C. Convenience goods.
D. Shopping goods.
14. Personal selling is not:
A. Face to face communication with buyers
B. Interpersonal communication
C. Mass communication
D. None of these
15. Salesman generally concentrates on selling necessaries like food, clothes statinaory etc. are
A. Export salesman
B. Speciality salesman
C. Staple salesman
D. None of the above
16. Salesman specialised in selling intangible product like insurance, shares, travelling
agreements are known as:
A. Creative salesman
B. Service salesman
C. Speciality salesman
D. None of the above
17. A salesperson acting for company by performing …………. Activity for the company.
A. Prospecting
B. Communicating
C. Servicing
D. All of the above
18. What is selling in the context of marketing?
A) A one-time transaction
B) The process of transferring goods or services to a buyer in exchange for money
C) Promoting products through advertisements
D) Creating brand awareness
19. Which of the following best describes the nature of selling?
 A) Passive interaction between buyer and seller
B) One-way communication
C) Dynamic and interactive process
D) Strictly transactional
20. What is the primary goal of selling?
A) Maximize profits for the seller
B) Satisfy customer needs and wants
C) Increase market share
D) Achieve economies of scale
21. Which of the following is NOT a characteristic of personal selling?
A) Personal interaction
B) Customization
C) Mass communication
D) Two-way communication
22. In marketing, what is the role of selling?
A) Building brand awareness
B) Identifying customer needs and wants
C) Persuading customers to make a purchase
D) All of the above
23. What is the significance of selling in marketing?
A) It helps in market research
B) It facilitates exchange
C) It reduces competition
D) It eliminates the need for advertising

24. Which of the following is an example of personal selling?

A) TV commercial
B) Online banner ad
C) Sales presentation by a representative
D) Social media post
25. Which stage of the selling process involves identifying and qualifying potential customers?
A) Prospecting
B) Closing
 C) Presentation
D) Follow-up
26. Which of the following is NOT a step in the personal selling process?
A) Prospecting
B) Negotiation
C) Closing
D) Distribution
27. What is the purpose of prospecting in personal selling?
A) To identify potential customers
B) To negotiate with existing customers
C) To advertise products
D) To conduct market research
28. What is the importance of building relationships in personal selling?
A) It increases customer loyalty
B) It reduces the need for advertising
C) It eliminates the need for prospecting
D) It decreases sales revenue
29. Which of the following is a benefit of effective selling skills?
A) Decreased customer satisfaction
B) Increased customer complaints
C) Increased sales revenue
D) Decreased market share
30. What is the difference between marketing and selling?
A) Marketing focuses on customer needs, while selling focuses on company needs
B) Selling focuses on customer satisfaction, while marketing focuses on profit
C) Marketing involves one-way communication, while selling involves two-way
communication
D) Selling is a subset of marketing
31. Which of the following statements is true regarding the role of selling in marketing?
A) Selling is less important than advertising
B) Selling focuses solely on transactional activities
C) Selling is the only function of marketing
D) Selling is a crucial component of the marketing mix
32. Which of the following is an example of transactional selling?
A) A salesperson recommending additional products to a customer
B) A salesperson building a long-term relationship with a client
C) A salesperson focusing solely on closing a sale
D) A salesperson conducting market research
33. What is consultative selling?
A) Selling products without any consultation with the customer
B) Building long-term relationships with customers
C) Understanding customer needs and providing solutions
D) Using aggressive sales tactics to close deals
34. What role does trust play in personal selling?
A) It is irrelevant
B) It is essential for building long-term relationships
C) It only matters in online selling
D) It decreases sales effectiveness
35. Which of the following is NOT a benefit of personal selling?
A) Customization
B) Mass communication
C) Relationship building
D) Immediate feedback
36. What is the primary focus of personal selling?
A) Maximizing profits
B) Building relationships with customers
C) Minimizing costs
D) Increasing market share
37. Which of the following statements is true regarding salespeople?
A) They are not involved in the marketing process
B) They play a critical role in delivering value to customers
C) They are only responsible for closing deals
D) They are not required to understand customer needs
38. What is the purpose of the pre-approach stage in personal selling?
A) To qualify potential customers
 B) To develop a sales presentation
C) To research customer needs
D) To establish rapport with customers
39. What is a sales presentation?
A) The final negotiation with a customer
B) The process of identifying potential customers
C) A formal meeting where a salesperson presents a product or service to a customer
D) The follow-up after a sale is completed
40. Which of the following is NOT a common sales presentation technique?
A) Feature-benefit selling
B) Consultative selling
C) Hard selling
D) Problem-solving selling
41. Which of the following is NOT an essential skill for a successful salesperson?
A) Communication skills
B) Listening skills
C) Negotiation skills
D) Product knowledge
42. What is the purpose of objection handling in personal selling?
A) To avoid customer objections
B) To ignore customer objections
C) To address and overcome customer concerns
D) To escalate customer objections to a supervisor
43. Which of the following is NOT a closing technique?
A) Trial close B) Assumptive close C) Avoidance close D) Urgency close
44. Which of the following statements is true regarding follow-up in personal selling?
A) It is unnecessary
B) It helps in building long-term relationships with customers
C) It only involves asking for referrals
D) It is the final stage of the selling process
45. What is the primary purpose of follow-up in personal selling?
A) To ask for referrals
 B) To close the sale
C) To build rapport with customers
D) To ensure customer satisfaction and repeat business
46. Which of the following is NOT a factor influencing the effectiveness of a salesperson?
A) Product knowledge B) Communication skills C) Gender D) Attitude
47. Which of the following statements is true regarding the sales process?
A) It is linear and follows a strict sequence of steps
B) It is dynamic and may involve revisiting previous steps
C) It is entirely controlled by the salesperson
D) It does not involve customer interaction
48. Which of the following is NOT a characteristic of consultative selling?
A) Understanding customer needs
B) Building long-term relationships
C) Using aggressive sales tactics
D) Providing solutions to customer problems
49. Which stage of the selling process involves negotiating terms and conditions with the
customer?
A) Prospecting B) Closing C) Presentation D) Objection handling
50. Which of the following is NOT a benefit of personal selling over other promotional methods?
A) Customization
B) Mass communication
C) Immediate feedback
D) Relationship building
51. What is the purpose of the trial close in personal selling?
A) To finalize the sale
B) To overcome objections
C) To gauge the customer's readiness to buy
D) To negotiate terms and conditions
52. What is the primary focus of relationship selling?
A) Closing individual transactions
B) Maximizing short-term profits
C) Building long-term relationships with customers
D) Focusing solely on product features
53. Which of the following statements is true regarding sales management?
A) It is not necessary for small businesses
B) It involves planning, organizing, and controlling the personal selling process
C) It focuses solely on advertising
D) It is not concerned with customer satisfaction
54. Which of the following is NOT a component of the sales management process?
A) Recruiting and selecting salespeople
B) Training and development of salespeople
C) Pricing strategy
D) Setting sales targets and quotas
55. What is the primary goal of sales management?
A) Maximizing short-term profits
B) Building long-term relationships with customers
C) Achieving sales targets and objectives
D) Minimizing customer satisfaction
56. Which of the following is NOT a sales management function?
A) Forecasting sales
B) Motivating salespeople
C) Conducting market research
D) Evaluating sales performance
57. What is sales force automation?
A) The use of technology to streamline the personal selling process
B) Outsourcing personal selling activities to third-party agencies
C) Eliminating the need for personal selling
D) Conducting sales training programs
58. What is the purpose of sales territory management?
A) To limit the salesperson's travel expenses
B) To ensure equal distribution of sales opportunities among salespeople
C) To discourage salespeople from building relationships with customers
D) To minimize customer satisfaction
59. Which of the following is a benefit of effective sales management?
A) Decreased sales revenue
 B) Increased customer complaints
C) Improved sales performance
D) Decreased customer loyalty
60. What is the purpose of sales forecasting?
A) To predict future sales performance
B) To eliminate the need for personal selling
C) To discourage salespeople from building relationships with customers
D) To minimize customer satisfaction
61. Which of the following is NOT a factor influencing sales forecasting?
A) Market trends
B) Competition
C) Salesperson's attitude
D) Economic conditions
62. Which of the following is an example of a quantitative sales forecasting method?
A) Jury of executive opinion
B) Delphi method
C) Trend analysis
D) Sales force composite
63. Which of the following is a qualitative sales forecasting method?
A) Moving average method
B) Exponential smoothing
C) Market research
D) Time series analysis
64. What is the purpose of setting sales quotas?
A) To discourage salespeople from achieving targets
B) To minimize customer satisfaction
C) To motivate and guide salespeople
D) To eliminate the need for personal selling
65. Which of the following statements is true regarding sales quotas?
A) They are not necessary for sales management
B) They are always set arbitrarily
C) They should be realistic and achievable
 D) They should be set without considering market conditions
66. What is the purpose of sales incentives?
A) To discourage salespeople from achieving targets
B) To minimize customer satisfaction
C) To motivate and reward salespeople
D) To eliminate the need for personal selling
67. Which of the following is NOT a common sales incentive?
A) Cash bonuses
B) Travel incentives
C) Training programs
D) Recognition and awards
Unit 02 Understanding the Sales
Mechanism
1. IDENTIFYING AND QUALIFYING PROSPECTS
The identifying and qualifying stage of selling is a critical phase in the sales process
where sales professionals identify potential prospects and assess their suitability and
potential as customers. This stage involves systematically searching for leads,
evaluating their characteristics, and determining their level of interest, needs, and fit
with the product or service being offered. Here's a detailed explanation of the
identifying and qualifying stage:
1. Lead Generation:
 The process begins with lead generation, where sales professionals identify
and generate potential leads or prospects who may have an interest in the
product or service. Lead generation can occur through various channels such
as inbound inquiries, outbound outreach, referrals, networking events, social
media, advertising, and marketing campaigns.
2. Defining Ideal Customer Profile:
 Before identifying leads, sales professionals must have a clear understanding
of the ideal customer profile. This includes defining criteria such as
demographics, firmographics, psychographics, and behavioral characteristics
that align with the target market and are likely to benefit from the product or
service.
3. Research and Data Analysis:
 Sales professionals conduct research and data analysis to identify potential
leads and gather information about their businesses, industries, needs,
challenges, and buying behaviors. This may involve leveraging customer
relationship management (CRM) software, databases, prospecting tools,
market research reports, and competitor intelligence to access lead lists,
contact information, and company profiles.
4. Lead Prioritization:
 Not all leads are created equal, and it's essential to prioritize efforts on leads
with the highest potential for conversion. Sales professionals use lead scoring
techniques to prioritize leads based on factors such as engagement level,
buying intent, fit with the ideal customer profile, and likelihood to convert.
Prioritizing leads helps focus resources and efforts on the most promising
opportunities.
5. Engagement and Outreach:
 Once leads are identified and prioritized, sales professionals initiate
engagement and outreach efforts to connect with them. This may involve
personalized communication through channels such as phone calls, emails,
social media, networking events, or direct mail. The goal is to initiate a
dialogue, introduce the product or service, and establish rapport with the
prospect.
6. Qualification Criteria:
 Sales professionals establish clear qualification criteria to assess the suitability
and potential of leads. Qualification criteria typically include factors such as
fit with the ideal customer profile, level of interest, budget, authority, and
 purchasing timeline. These criteria serve as a guideline for evaluating leads
and determining their readiness for further engagement.
7. Needs Assessment:
 During the engagement process, sales professionals conduct a needs
assessment to understand the prospect's challenges, pain points, objectives,
and requirements. This involves asking probing questions, actively listening to
the prospect's responses, and uncovering underlying motivations for
considering the product or service.
8. Evaluation of Fit:
 Sales professionals evaluate the fit between the lead's characteristics and the
ideal customer profile established by the organization. This includes assessing
factors such as industry, company size, geographic location, budget, authority,
and purchasing timeline to determine alignment with the target market.
9. Assessment of Interest and Intent:
 Sales professionals gauge the level of interest and intent of the lead towards
the product or service. This involves analyzing indicators such as engagement
with marketing materials, responsiveness to outreach efforts, attendance at
sales meetings or demos, and expressed interest in further discussions or next
steps.
10. Identification of Decision-Makers:
 In business-to-business (B2B) sales scenarios, sales professionals identify key
decision-makers and stakeholders within the lead's organization who have the
authority to make purchasing decisions. This includes understanding the
hierarchy, roles, responsibilities, and decision-making processes of the target
company to determine the level of influence and involvement of various
stakeholders.
11. Budget and Financial Considerations:
 Sales professionals inquire about the lead's budgetary constraints, financial
capacity, and willingness to invest in the proposed solution. Understanding the
lead's budget helps determine whether they have the financial resources to
make a purchase and whether the proposed solution aligns with their
investment priorities.
12. Qualification Scoring and Prioritization:
 Based on the assessment of various qualification criteria, sales professionals
assign scores or ratings to leads to prioritize them for further engagement.
Leads that meet the qualification criteria and exhibit strong indicators of
interest, fit, authority, and budget are prioritized for immediate attention and
follow-up.
s
2. PREAPPROACH The pre-approach step includes all the information gathering
activities necessary to learn relevant facts about the prospect. It is an effort to get
details regarding the prospect, such as his ability, need and authority buy. it is a closer
look of prospects likes and dislikes, tastes, habits, financial status, social esteem,
material status, family background etc.
IMPORTANCE OF PRE-APPROACH
a) Pre-approach helps in saving valuable time, effort and energy of the salesperson in
the best interest of the organisation in which he works
b) Pre-approach makes the salesperson more confident and enthusiastic while meeting
the prospects and putting forth the sales proposition before them. The confidence and
enthusiasm is the cumulative result of the detailed background information about the
prospects collected during pre-approach.
c) Pre-approach enables the salesperson to know beforehand about the needs and
requirements of the prospects in the most detailed manner possible.
d) By pre-approach, the salesperson’s knowledge about the prospects is considerably
enhanced. As the salesman has prior information about the financial status, likes,
dislikes, tastes. he is likely to commit least number of mistakes at the subsequent
stages of sales presentation.
e) the salesperson can plan out the sales talk in advance and present the same on
systematic lines for assured success. Salesperson who has all possible socio-economic
information about the prospects is better placed in handling the prospects.
SOURCES OF INFORMATION IN PRE-APROACH
1. Fellow Salesmen: Friendly relationship with other salesperson helps to add to the
information regarding prospects. Other salespersons may disclose some useful clues
about prospects and their wants.
2. Customers: Customers, particularly satisfied customers are most dependable source
of information. The satisfied customers readily give the information in terms of the
likes and dislikes, income status, family composition and so on.
3. Market Survey Reports: Market surveys are conducted by companies whenever
they need data of a particular locality.
4. Dealers: Dealers especially retailers are the last link in the chain of distribution.
They usually have close contact with customers. They know their customers totally in
terms of temperament, buying behavior, profession, purchasing power, and so on.
5. Data Surfing: A salesperson could also get the data about prospect by surfing
through various social media platforms like Facebook, Instagram, twitter etc. Some
sources of prospecting like, bird-dogs, directories and spotters could also be used as
source of information in pre-approach. Other sources may be travel agents, garment
cleaners, jewelers, petrol pump stations, garages and so on. All these sources appear
quite petty but they are rich sources of information.
3. APPROACH
It means coming in to direct contact with the prospects. It involves meeting the
prospect for the first time by the salesperson. salesperson makes face-to-face contact
with the prospect to understand him better. Prospects often judge the quality of a
salesman by the way in which the salesperson comes prepared. With this stand, the
prospects form their opinion that the salesperson has really something to offer.
Success follows those salespersons who are in possession of courage, courtesy and
also the ability to win confidence. So it is important stage in selling process that the
salesperson approaches the prospect confidently and makes a good impact.
IMPORTANCE OF APPROACH
Approach is one of the important stages in the selling process. It is correct to say that
a sale is won or lost during the approach. In reality, approach influences the prospects
to keep their door either open or close for the salesperson or sale. During the first few
minutes of the approach, the prospect decides whether he will buy or not. Similarly,
the salesperson is also likely to know whether the prospect is really interested in the
product or not. The importance of the approach varies with the type of selling. For
example, while selling cheap and necessary articles, the importance of the approach is
comparatively less, whereas for selling costly and luxurious goods and services, the
importance of the approach is very high. The importance can be explained as follows:
1. Approach is most vital for the success or failure of the firm because it directly
contributes to increased sales or decline in sales.
2. It helps in throwing out competition.
3. The approach increases the prospect’s knowledge about the product or service and
helps to take better decision.
4. Modern people are too busy that they have little time to know in detail about the
products, new innovations, new features, latest developments. Through approach
prospects are able to get all such information from the salesperson.
METHODS OF APPROACH
1. Introductory Approach: The introduction approach is the simplest way to start a
sales call. Salesperson describes his name and his company’s name and hands over a
business card to the prospect in the introductory approach.
2. Referral Approach: Furnishing the name of a satisfied customer or a friend of the
prospect can be the beginning of a sales call by salespersons. The reference approach
is often effective with prospects who are sociable and expressive because they
emphasize on relationships. Successful salespersons always get permission from
references prior to using them.
3. Benefit Approach: It is be better to open sales call to fill the prospect’s attention on
a product benefit. The salesperson could start the conversation by telling about
specific benefit, something the prospect can actually realize of his advantage. This
benefit approach is better for those who like to get down to business rather quickly.
4. Product Approach: Product approach means really demonstrating the product
features as soon as the salesperson goes up to the prospect. It is nice to hand over the
product to the prospect for his use. This delivery shows deeper involvement. This
approach can be better for the prospects who express directly.
5. Compliment Approach: everyone like being complemented. Sincere and specific
complements by the salesperson influences prospects attention. But too much flattery
could be dangerous.
6. Question Approach: Starting the conversation with a question is helpful in getting
prospects attention. It helps in starting a two-way communication at the very initial
stage. The question must be related with the buying motives.
7. Socratic Approach: it is an extension of question approach. In this approach
customer is asked opinion keeping in view the salespersons product and his need. This
approach is helpful as it emphasizes on customer’s needs and it is the consumer who
takes lead of the meeting.
8. Fear Approach: Fear appeals a lot. Everyone has a fear of one kind or other. A
salesman selling insurance policy often start the conversation with some fearful talks
related with the old age, sickness, death, theft accidents etc. while starting the
conversation with the prospect.
9. Statement Approach: A salesman can open his talk with hard facts of achievements
or benefits of the product he is offering. This is generally done by putting some strong
facts in favor of product to the prospect.
4. PRESENTATION & DEMONSTRATION PRESENTATION
A good presentation is as important as a good product. The significance of a good
presentation of the product can be gauged from the fact that many a time an
attractively packed presentation is sufficient to sell the product.
ESSENTIALS OF A GOOD PRESENTATION
1. Quick presentation must create a good impression in the mind of the customer that
he feelsthat he is being dealt with care and understanding.
2. The salesman should explain the product with its features and price advantage to
the customer in simple and easy terms.
3. The presentation can also be given through models, slides, pictures and videos to
make the presentation interesting.
4. An intelligent salesman should never compare his product with rival products.
Under circumstances, he can stress on high points of his offering rather than pointing
out the negatives of the rivals.
5. It is very important that the customer be shown the kind of quality that he is
looking for. Too many varieties will only confuse the customer, while too little does
not help him make a choice. 6. Half the battle is won, if the salesman is able to make
the product appeal to the customer’s senses.
TYPES OF SALES PRESENTATION
1. Canned Presentation: It is a presentation where the presentation script is written
after thoroughly understanding the product and the requirements of the customer. It is
also tested before finally rolling it out. Every salesperson must memorize it and
follow the script of the presentation in the prescribed order. This is most often used in
non-technical products like pharmaceuticals, telephonic selling and door to door
selling of products.
2. Planned Presentation: The organization provides a basic format or procedure for
making the presentation and the individual sales person then writes the script which
includes description and illustrations.
3. Audio-Visual Presentations: The presentations are made with the help of audio
visual aids like charts, slides, video films, computer based presentations which depict
the actual use of the product. They are widely used by advertising firms, software
companies.
4. Problem Solving Presentation: This type of presentation includes two stages. The
first stag is to understand the needs of the individual prospect and the second includes
offering a solution. Commonly used in the insurance sector where based on the
requirements or needs of the prospect a specific policy is suggested.
5. Webinar: A webinar is an online seminar presentation on a specific product that
salesman wants to present. anyone with an Internet connection and a compatible
device can watch, no matter where they are. Webinar presentation is better because
they are easy to prepare, cheap and have a high conversion rate. Internet users like
them a lot too they get all the benefits of a live event
DEMONSTRATION
Demonstration is an exercise to prove the characteristics of the product. It highlights
various attributes of the product such as utility, performance, service and quality.
Demonstration happens mostly when the product is tangible. During a sales
presentation, the salesman describes the product to the prospect but it is only during
the demonstration that the customer gets an opportunity to verify the facts about the
product. Hence, demonstration is imperative and essential for a prospect to make a
buying decision.
Significance of Demonstration
1. Demonstration gives the salesman a chance to show specific features of the
product or service more clearly, For example, in case of a vegetable chopper,
demonstration is more effective than the description.
2. It creates a lasting impression in the minds of the prospective customers as they see
the functions of the product or handle them personally.
3. The salesman can provide proof for the claim through a series of tests, experiments
and operations. Thus, increasing the confidence of the prospective buyers.
4. By proper demonstration, the customer’s sense of curiosity about the product is
considerably satisfied.
5. It helps in focusing attention of customers on the satisfaction and utility that they
will be deriving out of the ownership of such products.
6. it also provides a chance to the prospects for making comparisons with the
competitor products.
ESSENTIAL OF A GOOD DEMONSTRATION
1. The demonstration should be easy and clear to understand.
2. The demonstration must be in a way that it displaces possible doubts from the
minds of the customers.
3. Demonstration must be in a manner that provide a chance to the customer to
compare the product with the product of competitors.
TYPES OF DEMONSTRATION
1. Demonstration in use: The most effective form of demonstration is to show the
product while in use. The salesman can allow the customers to personally examine
and use the product. For example, while selling readymade garments, footwear,
Jewellery, etc., the salesman may ask the customers to try the product.
2. Demonstration of Specific Features: special features and additional advantages can
be demonstrated. For example, un-breakability, leak-proof, waterproof, fire-resistant,
shock absorbent etc.
6. OBJECTION HANDLING
Prospects usually show resistance against buying products by pointing out real or
imaginary hurdles and by voicing objections. In other words, objections are the
feelings of disapproval or dissent raised by the prospects. It has been rightly pointed
out that without handling objections the salesman cannot sell anything to the
prospects. Therefore, the success of a salesman depends on how well he handles
objections efficiently and tactfully. Hence, raising of objections is normal and
common from the point of view of the salesman.
REASONS FOR OBJECTION
1. People normally display resistance to new and unfamiliar ideas and goods.
Therefore, many consumers raise objections in the normal course.
2. Certain prospects raise objections as they are not 100% sure about the product or
service offered, i.e, they are only partially satisfied and are waiting for more
explanation, classifications, additional features about the sales proposition.
3. Some prospects also raise objections to test the salesman’s knowledge and patience.
4. Under certain instances, the prospects raise objections either to postpone buying or
because the prospects lack the required purchasing power.
5. Prospects raise objections if the salesman is unable to identify their need or if they
come across the salesman pressurizing them or using unfair means to sell the product.
6. Some prospects find objections as a means to avoid salesman.
SOME COMMON OBJECTIONS AND HANDLING TECHNIQUES
There are certain common objections which are usually raised by the prospects. These
common objections and their handling techniques are as follows:
1. Price objections: It is the most common objection raised by the prospects in a
country like India. It is an economic excuse. Objections based on price may be of two
types, one the prospect may state that he feels that he cannot afford or that the price is
too high. Some prospects may object that the price of the product is not on par with
that of the neighboring shops in the market. The salesman can offer a substitute, offer
installment payment and justify the price by displaying the evidence.
2. Payment Objection: It may be genuine or sometimes used as an excuse. In genuine
cases, the salesman can offer credit through EMI’S.
3. Service Objections: The salesman while meeting objections related to service has to
emphasize the service facilities offered by the organizations are 24x7x365 call centers
to register complaints, prompt service by expert service personnel, immediate delivery
at doorstep, prompt attendance of service or repair calls within 24 hours etc. and
pleasant service experience.
4. Time to Buy Objection: Some prospects may postpone the time of purchase by
citing the reasons of arrival of new models, waiting for festive occasions or waiting
for prices to drop. he salesman tries to emphasize on the value of time and induce
them to purchase immediately, by stating that the prices would increase in the near
future or the model would arrive after a considerable time.
AFTER SALES SERVICE/ FOLLOW UP
• Post purchase follow up is important in building customer confidence and long-term
relationship with the company.
• The moment the salesman closes the sale; he should not think that relationship is
closed. Rather a close is just the beginning of such relationship.
• The salesperson contacts customer to learn if there are any problems and answers
any questions that the customer does.
• He also contacts customers regularly to ascertain that they are happy with their
purchase and offered services.
IMPORTANCE OF AFTER SALES SERVICE
1. Keeps the customers satisfied: This helps in keeping the customers satisfied. It
promotes proper communication of customer’s needs and wants to the product or
service provider. This helps the organizations identify what their customers want and
expect from them. Thus, they can offer their customers desired products that will
satisfy their needs.
2. Gaining customer loyalty: When customers make repeat purchases of products or
services from a company, it shows that loyalty towards the organization. This happens
when a product or a service delivers consistent value of the money spent by the
customers.
3. Reduces the cost of luring new customers: The cost of gaining new customers is far
higher than retaining the old ones. Good customer service from a company helps to
retain old satisfied customers, thus reducing the cost for attracting new ones.
4. Helps to beat competitors: Organizations that provide excellent after sales services
outperform competitors and become leaders in the industry. Even if such a company
offers services and products at little higher rates, customers prefer purchasing it from
them. As excellent after sales service is one of the most important factors determining
sales.
5. Helps in receiving feedback: Customer service representative directly chats to the
customers and listens to all the positives and negatives expressed by them. This helps
the company to receive invaluable feedback, which they would otherwise never
receive.
TYPES OF AFTER SALES SERVICE TECHNIQUES
1. Connect with the customers: Sales professionals need to remain in touch with the
customers even after the deal. They should not ignore their calls. They ought to call
them once in a while to exchange pleasantries.
2. Provide necessary Support: The sales personnel can help them install, maintain or
operate a particular product. For example, Sales professionals selling laptops must
ensure windows are configured in the system and customers are able to use the
Internet without any difficulty.
3. Replacement of the product: Any product found broken or in a damaged condition
must be replaced immediately by the sales professional. Their grievances should be
addressed and make them feel comfortable.
4. Frequent Feedback: Feedback of the products and services from the customers
should be taken periodically. It helps the organization to know the customers better
and incorporate the necessary changes for better customer satisfaction.
5. Annual Maintenance Cost: AMC is an agreement signed between the organization
and the customer where the organization promises to provide after sales services to
the second party for certain duration at nominal costs.
6. Exchange Policies: The exchange policies must be transparent and in favour of the
customer. The customer who comes for an exchange should be given the same
treatment as was given to him when he came for the first time.