Page 14 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes Global Presence
Nature's Essence is also present globally in markets such as South Africa, Mauritius,
Reunion Island and the Caribbean, where its products are primarily sold through direct
selling in trade fairs, seminars and workshops, apart from a significant retail presence in
the GCC countries. It is also sold under a private label in the US and Australia. In India too,
the products are sold through television for a private label.
The company plans to raise 100 crore in two years through an IPO to fund its retail
expansion plan, said Mr Nanda. Nature's Essence is looking to set up its own exclusive
boutiques that will not only sell products but also educate and train beauticians. It is also
looking to enter the organic foods market soon. Immediate plans include introducing a
premium product in the colour cosmetics category.

Nature's Essence has a production unit in Haridwar and is setting up another unit in
Uttaranchal. It is eyeing revenues of 100 crore in two years.

Source: thehindubusinessline.com

1.4 Diversities of Personal Selling Situations

The situation in which a salesperson approaches a prospective customer to make a sale is termed
as a Selling Situation. All selling situations are not the same. There are two types of selling
situations:
1. Service Selling

2. Developmental Selling

1.4.1 Service Selling

Salespersons in a bank often make sales calls to customers who may already be aware of the
company’s products. This type of selling is less complex as the customers already know the
brand.

Example: A salesperson making a call from ICICI Bank is likely to face less difficulty, as
it does not require convincing the customer about the company and about the value for money
that the product offers.
So, service selling aims to obtain orders from existing customers whose habits and patterns of
thought are already conducive to the products.

Example: Consider a scenario: Ram Mehta is a senior sales team leader at the XYZ
branch of ABC Bank. He has been assigned the target of sourcing 20 savings account of the bank.
His team comprises of four salespersons.

He divides his team into two groups. The first group is assigned the northern part of the city.
They decide to approach customers who already have a savings account with the bank or had
transactions with the bank in the past. During their conversation with customers, they are
delighted when most of the customers reveal that they like banking with ABC Bank. This
opportunity can be encashed by offering a savings account with a host of benefits for their
spouses or kids who don’t have a savings account. These salespersons realize that they don’t
need to convince this group about the quality of services offered at ABC Bank. Thus, the sales
process is smooth and successful in most cases.

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