Page 61 - DMGT205_SALES_MANAGEMENT
P. 61
Unit 4: Sales Strategy Formulation
Product Specialists: These are for highly technical products, e.g., marketing of banking services, Notes
service packages like agriculture financing, short and long term financial services.
Pure Competition: In this each seller is too small to effect the prevailing market price. This
competition exists in identical undifferentiated products. Sales effort is limited to maintaining
adequate supplies. All sellers products are identical so buyers are indifferent as to which sellers
they buy from.
Servicing Requirement Basis: A company splits its total market according to servicing requirement
of its present and prospective customers. Service means the maintaining and developing of
account.
Vertical Integration: It is the process of requiring management membership rights at various
levels of distribution channel. It is a costly affair for absolute channel control.
Work Load Basis: This approach considers both account potential and servicing plus extra work
load created by topographical locations and competitive forces.
4.12 Review Questions
1. What are the steps in formulating sales strategy?
2. Why is market analysis important for formulating the sales strategy?
3. What is the relevance of size of sales force and territory design in strategy formulation?
4. Describe, with example, the incremental method, the sales potential method and the work
load method of determining the size of sales force.
5. Explain the transaction cost analysis.
6. What are the advantages of workload method?
7. Discuss the sales potential method.
8. Explain the determination of the sales force needed.
9. Describe the Incremental Method.
Answers: Self Assessment
1. Sales 2. Corporate
3. Quality 4. Goals
5. Market 6. True
7. True 8. False
9. True 10. False
11. False
4.13 Further Readings
Books American Marketing Association, A Glossary of Marketing Terms, Chicago, 1960.
Autvin, William, H, Advertising, Mc Graw-Hill Book company, New York.
LOVELY PROFESSIONAL UNIVERSITY 55
