Page 24 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes 3. When a product has to match specific consumer needs.
4. When product requires demonstration, e.g., industrial products.
5. When product requires after sales service.
6. When product has no brand loyalty or poor brand loyalty.

Marketing Situation

1. When a company is selling to a small number of buyers who are buying a product of high
value.
2. When a company sells in small local markets or government or institutional
markets.
3. When desired middlemen or agents are not available.
4. When an indirect channel of distribution is used for selling to merchant
middleman.
Company Situation

Personal selling is more effective and economical when:
1. The company is not in a position to identify and make use of any communication media.
2. A company does not have a large advertising budget.

Consumer Behaviour Situation

Personal selling is more effective when:
1. Goods purchased are of high value and less frequently purchased.

2. Consumer needs instant answers to his questions.
3. Persuasion and follow up is required in the case of competition.

2.3 Strategies used by Salesman

With the increasing importance of personal selling in recent times the strategies of sales person
have changed considerably - from being a fast talker to a consultant.

!
Caution Most forms of personal selling require the sales staff be extensively trained on
product knowledge, industry information and selling skills. For companies that require
their salespeople attend formal training programs, the cost of training can be quite high
and include such expenses as travel, hotel, meals, and training equipment while also
paying the trainees' salaries while they attend.

Communication Strategies

It is the lowest level of personal selling. Sales representatives communicate about the product or
service offered. Strategy is walking more and talking more. This has little use as communication
can be done by press, radio, television, etc.

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