SALESMANSHIP XII MAIN CONTENT
Page 1: Salesmanship Class - XII Study Material
Page 2: Unit I: Sales Organization
Introduction to Sales Organization
Organizations serve as tools to translate managerial philosophies into action.
Changes in philosophy lead to revisions in organizational goals, adapting to the environment.
Sales plans and strategies need an effective organizational structure to achieve firm objectives.
Decisions on sales tasks are essential for grouping salespeople for efficiency.
Importance of Sales Organization
Aims to get products into the hands of ultimate consumers.
Facilitates planning and organizing functions to transition products from factory to consumer.
Focuses on efficient distribution channels to motivate wholesalers and retailers.
Prevents large-scale production issues; mass production is linked with sales organization efficiency.
Stimulates demand and reaches potential customers.
Reduces risk to other departments by having an effective sales organization.
Provides job opportunities.
Offers means to fulfill consumer needs.
Efficient organizations lead to coordination among sales personnel as they scale.
Divides authority to enhance supervision and avoid repetitive tasks.
Aids executive development and promotion opportunities.
Ensures proper sales force supervision.
Enables policy formulation and implementation.
Page 3: Functions and Factors Affecting Sales Structure
Factors Affecting Sales Structure
Product and Service-related Factors:
Nature of products determines sales structure.
Large consumer base requires a complex sales organization.
Complex products necessitate a larger organization to manage service staff.
Organization-related Factors:
Smaller firms have simpler sales organization due to limited offerings.
Larger firms with multiple channels require complex structures.
Marketing Mix-related Factors:
Product diversity and geographical marketing impact sales structure complexity.
Methods of distribution can complicate sales organization, especially for intensive approaches.
External Factors:
Historical distribution practices and competition influence organizational structure.
Profit Goals and Policies:
Financial goals affect the sales structure and operations.
Page 4: Assessment I
Key Assessment Points
Main task of a sales organization: transfer of ownership of goods to consumers.
Purpose: to engage the end-user, not just distributors.
Organizational structure aims for efficient product distribution.
Economic distribution and risk management are priorities of a sales organization.
Job provision and promotion opportunities reinforce the need for structured sales operations.
Page 5: Assessment II
Key Assessment Points
Sales Structure depends on products/services provided.
A small firm serves limited consumer needs, resulting in a simple structure.
High competition may affect how sales quotas are established.
Customs and traditions are factors that define organizational structure.
Aiming for profit directly influences sales organization effectiveness.
Page 6: Classification of Sales Organization
Overview
Sales organization varies from firm-to-firm and depends on size and complexity.
Authority Structure in Sales Organizations
Line Type:
Hierarchical with authority centralized at the top.
Fast policy formulation and clear authority but may stifle specialization.
Line & Staff Type:
Involves specialists to support sales activities.
Offers advantages like specialized attention but may lead to slow decision-making.
Page 7: Advantages and Disadvantages of Line Type Organization
Advantages
Quick policy formulation and implementation.
Clear authority structure.
Fosters strong executive development opportunities.
Disadvantages
Limits specialization and can lead to overload on top persons.
Risk of developing 'yes men'.
Potential for stalling business if top person is lost.
Page 8: Committee Type Sales Organization
Characteristics
Responsibilities divided among committee members for sales planning.
Advantages
Comprehensive involvement of departments.
Improved coordination across units.
Disadvantages
Time-consuming due to consensus requirements.
Internal politics may hinder efficiency.
Page 9: Territorial Sales Organization
Overview
Utilizes regions as a basis for organization structure.
Advantages
Enhanced control over personnel.
Cost efficiency due to reduced travel and better customer service.
Disadvantages
Increased overall expenses due to complexity.
Conflicts may arise over resource allocation.
Page 10: Trade Type Sales Organization
Characteristics
Based on customer types (e.g., retailers, wholesalers).
Advantages
Focused attention on customer needs.
Improved market planning respective to customer behavior.
Disadvantages
Potential duplication of efforts.
Coordination issues across different customer segments.
Page 11: Product Type Sales Organization
Characteristics
Focuses on product lines for specialized selling.
Advantages
Detailed attention to varying product lines.
Easier evaluation of employee performance by product.
Disadvantages
Conflicts over inter-product coordination.
Increased operational costs.
Page 12: Functional Type Sales Organization
Overview
Structured around functions rather than product or territory.
Advantages
Specialization leads to operational effectiveness.
Easier supervision.
Disadvantages
Risk of department silos and conflict.
Accountability issues when performance fails.
Page 13: Hybrid Organization
Overview
Mixing product, functional, and geographic bases for organization.
Assessment III
Acknowledges sales organization as a component branch.
Recognizes hierarchical authority as a fundamental structure.
Page 14: Questions for Review
Define what a Sales Organisation is.
Identify types of sales organizations.
Discuss factors affecting sales organizations.
Page 15: Unit II - Inside Selling / Store Based Selling
Learning Outcome
Understanding retail sales processes and the environment surrounding inside store selling.
Teaching Methods
Engaging lectures supplemented with visits to retail formats.
Page 16: Salesman as a Facilitator
Key Responsibilities
Understanding different roles of a salesman in various selling formats.
Objective
Enable students to discern effective sales strategies applied in retail environments.
Page 17: Introduction to Retailing
Overview
Retail encompasses selling goods to consumers for personal use.
Modern retail includes various formats, adapting to consumer preferences.
Characteristics of Indian Retail
Predominantly unorganized, with a growing presence of organized retail.
Page 18: Global Comparison of Retail
Statistics
India has a low penetration of organized retail compared to countries like the USA and Taiwan.
Page 19: Definition of Retailing
Retail involves the final stage of distribution, providing the link between manufacturers and consumers.
Page 20: Retail Formats in India
Store Based vs Non-Store Retailing
Key Formats
Convenience Store
Supermarkets
Hypermarkets
Department Stores
Page 21: Convenience Stores
Characteristics
Typically located near residential areas, catering for quick purchases.
Page 22: Supermarkets
Characteristics
Medium-sized, enabling easy access in residential areas.
Page 23: Hypermarkets
Characteristics
Large retail establishments offering a variety of products, often in bulk.
Page 24: Specialty Stores
Characteristics
Focus on specific product lines with an emphasis on customer service and layout.
Page 25: Department Stores
Characteristics
Offer a range of categories and brands, aiming to provide a comprehensive shopping experience.
Page 26: Factory Outlets
Characteristics
Sell surplus stock directly to the consumer at discounted prices.
Page 27: Discount Stores
Characteristics
Price-driven retail format focusing on sales volume and customer access.
Page 28: Knowledge Assessment
Test Questions
When a product is bought from a store, it is called ________.
Hypermarket is generally characterized as a ________.
Page 29: Functions of a Salesman
Responsibilities
Customer engagement, education, restocking, transaction processing, inventory management.
Page 30: Sales Career Opportunities in Retail
Career Pathway
Begins as sales personnel, progressing to management roles with experience.
Page 31: Knowledge Assessment 2
True or False Assessment
Engaging customers is a primary duty of salespersons.
Sales roles have no impact on business growth.
Page 32: Knowledge Assessment 3
Short Questions
Define retailing and its processes.
Discuss various types of rewards affecting sales performance.
Page 33: Summary of Key Points
Retailing is crucial for connecting manufacturers and consumers.
Motivated sales personnel significantly enhance sales performance.
Page 34: Approaches to Personal Selling
Strategies
Addressing customer needs through tailored approaches.
Page 35: Unit III: Field Selling
Definition
Field selling involves direct interaction with customers to sell products or services.
Page 36: Motivation in Sales
Importance
Motivation is key to performance and achieving sales targets.
Page 37: Compensation Rewards
Overview
Compensation rewards are financial incentives given to motivate sales personnel.
Page 38: Non-Compensation Rewards
Overview
Rewards not tied to financial compensation but crucial for motivation and job satisfaction.
Page 39: Purpose of Sales Territories
Overview
Territories help manage customer relations and improve market coverage.
Page 40: Controlling Sales Force
Overview
Sales territories facilitate better performance evaluation.
Page 41: Setting Up Territories
Steps
Define control units, analyze customer accounts, develop workload analysis.
Page 42: Territory Shapes
Types
Wedge, Circle, Hopscotch, Cloverleaf to optimize travel routes for sales personnel.
Page 43: Sales Quotas
Definition
Quotas set specific performance expectations to gauge success in sales activities.
Page 44: Criteria for Setting Quotas
Factors
Past sales data, buyer power, and company policies influence quotas.
Page 45: Types of Quotas
Overview
Sales volume, budget, activity, and combination quotas guide performance.
Page 46: Field Selling Practices
Overview
Focuses on personal sales interactions to enhance customer relationships.
Page 47: Activities in Field Selling
Key Activities
Generating new business, maintaining existing relationships, territory management.
Page 48: Motivational Factors
Overview
Understanding motivational strategies enhances sales performance and satisfaction.
Page 49: Field Activities
Importance of Mobility
Effective field selling requires mobility and territory management.
Page 50: Technology Integration
Overview
Utilizing technology aids in gathering client information to aid sales efforts.
Page 51: Motivation & Compensation
Components
Understanding motivation theories informs effective compensation strategies.
Page 52: Compensation Rewards
Overview
Financial and non-financial rewards both contribute to effective sales performance.
Page 53: Non-Compensation Rewards
Overview
Recognizing achievements and offering career development opportunities through non-financial rewards.
Page 54: Motivational Dimensions
Factors
Intensity, Persistence, and Direction are key for successful sales performance.
Page 55: Characteristics of Motivated Salespeople
Traits
Dedication and goal-oriented.
Excellent knowledge of products.
Page 56: Importance in Business
Overview
A motivated sales team is crucial for achieving profitability.
Page 57: Compensation Systems
Overview
Creating fair and effective compensation systems boosts performance.
Page 58: Performance Bonuses
Overview
Used to motivate sales teams towards achieving specific short-term goals.
Page 59: Mixed Compensation Plans
Overview
Combination plans offer a balance of fixed and variable pay.
Page 60: Advantages and Disadvantages of Mixed Plans
Considerations
Flexibility vs. complexity in managing compensation structures.
Page 61: Assessment for Knowledge
Questions
Identify the role of incentives in sales performance.
Discuss the impacts of motivation in retail settings.
Page 62: Non-Compensation Rewards
Review
Promotion opportunities, sense of accomplishment, personal growth, and recognition.
Page 63: Assessment Questions for Review
Define motivation and its role in sales effectiveness.
Page 64: Non-Financial Rewards
Overview
Recognizing employee achievements through opportunities for growth and appreciation.
Page 65: Key Motivational Strategies
Close of Each Section
Attend to both financial and non-financial motivational factors to enhance sales performance.