Page 27 - DMGT205_SALES_MANAGEMENT

Unit 2: Personal Selling

Creative Sales Person of Intangible Products Notes

Sales of insurance, advertising services, consultancy services, educational programmes, requires
creativity of the sales person. It is more difficult to sell as the benefit's can't be seen tangibly.

Changing Role of a Salesman

To facilitate the various roles of sales persons, they can be categorised as:
1. Consultative sales

2. Technical sales
3. Commercial sales
4. Direct sales.



Caselet Suzuki may use Idle MUL Line for Scooters

uzuki is considering using Maruti Udyog's Gurgaon facility for its proposed
two-wheeler venture in India by converting one of the idle car lines into a
Stwo-wheeler line. MUL may then lease out the facility or sell it to Suzuki Motor.
MUL has a total of three car manufacturing lines at its Gurgaon facility. However, a recent
reorganisation resulted in one of the lines becoming idle. According to sources, Suzuki
has already started the trial run for the production of scooters on this idle line.
However, when contacted, the Maruti spokesperson denied any such move by its Japanese
parent, though he added, "there is now no difference between Suzuki and MUL as far as
major strategic decisions are concerned." According to industry observers, though, Suzuki
has the option to invest in a brand new facility to manufacture two-wheelers, it makes
commercial sense for the Japanese major to leverage its majority holding in MUL.
"It would save Suzuki a lot of money and time if it piggybacks its two-wheelers venture on
Maruti's extensive infrastructure," says a senior officer of a domestic two-wheeler company.
The two-wheelers which are to be sold under Suzuki brand would be launched in the
domestic market only after March 2004 as specified in its separation agreement with the
TVS group. Suzuki has been permitted to re-enter the two-and three-wheeler market.
Questions

1. Do you think it will be possible to sell Suzuki two-wheelers when there is stiff
competition from other established brands?
2. Justify the action of the leading car unit to go for diversification.

Consultative Sales

This occurs at higher levels of organisation e.g., computer consultancy, etc., high capital is
involves. The salesman adopts a low key, low pressure approach. He has strong knowledge of
the product. Patience to discuss the product with several people in the organisation is required
along with creative effort in slack times without appearing to exert pressure on the prospect.

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