Assignment Code: BCOS-186/TMA/2021-22

Course Code: BCOS-186

Assignment Name: Personal Selling and Salesmanship

Year: 2021-2022

Verification Status: Verified by Professor

Maximum Marks: 100

Note: Attempt all the questions.

Section – A

Q-1 Define personal selling and discuss its advantages and disadvantages. (10)

Ans) Personal selling is also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product. It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale.

Advantages

Better Image: If customers have misinterpreted the company’s messages and it resulted in the form of jeopardizing the company’s image. The sales staff could clarify the company’s message and represent a better image of the company. If the sales staff are offering a well-detailed message, then it would improve the company’s sales and revenue.

Reward: If you’re hiring salesmen for personalized selling, then it would reward in many ways like in terms of the company’s better image, salesmen, and customers. They would help you to achieve sales targets, and the company would be able to maintain market share and profitability. The satisfaction of customers is higher in personal selling.

Customer Confidence: If the sales personals have good presentation and communication skills, then they win customers’ confidence by clarifying all types of misunderstandings, objections, questions, and doubts. Their presentation offers would increase their faith in the company.

Flexibility: If the company provides sufficient training to the sales personals, then they can adjust and mold their marketing message differently for various customers. When the problem, objective, and nature of the customer change, so does their marketing message.

Disadvantages

High Turnover: When we talk about the job of sales personals, then the turnover rate is very high in personal selling. When salesmen quit their job, then they leave the company in the middle of nowhere. However, the company ends up having no representative to answer the questions of customers. It takes a lot of time for the company to hire and train new people.

Training Cost: When it comes to the training of the sales staff, then it is very costly. Some of the training expenses are; calls and mobile phone charges, health care, salaries of trainees, trainers of salesmen, training equipment, meals, stay in the hotels, and travel expenses. Along with these costs, it also comprises many fixed and variable costs.

High Cost-per-Action: Cost-per-action means the promotional cost that the company spends to evaluate the performance of its employees. It comprises of followings costs; telecommunication, office supplies, travel expenses, spending on entertainment, product guide literature, supportive material, bonuses, commission, salaries, and other compensations.

Negative Image of Salesmen: One of the biggest flaws of personal selling is a negative perception of the sales personals. Some of the salesmen follow the aggressive tone, and the others have the low, and it annoys customers. However, their negative attitude would cost the company in the form of low sales and a negative reputation of the company.

Q-2 What do you understand by buying motives? What are the various types of buying motives? (10)

Ans) Buying motives of a buyer refers to the influences or motivations forces which determine his buying. In other words, a buying motive is the inner feelings, urge, instinct, drive, desire, stimulus, thoughts, or emotion that makes a buyer buy a certain product or service to satisfy his needs.

Types of Buying Motives

Physical, Psychological and Sociological Buying Motives: The psychological buying motives are related to the satisfaction of basic human needs for subsistence such as satisfaction of the needs for food, shelter and clothes, and security. The psychological buying motives relates to the need for prestige or self-preservation, etc. the sociological buying motives are related to the motives that exist at present and is expected in all the social situations.

Acquired and Inherent Buying Motives: The acquired buying motives are learned motives and are influenced by the environment factors. Such motives are related to socio­economic conditions and the level of education, such as economy, information, work efficiency, profit facility, quality, beauty, fashion, social presage, acceptance, etc. The inherent buying motives are present in a person from his birth. It belongs to basic human instincts whereas the acquired buying motives are concerned with the environment. They are influenced by hunger, thirsts, sleep, leisure, security, playing entertainment, etc.

Primary and Selective Buying Motives: The primary buying motives increase the general demands for products and not the specific demands for a specified product/brand. The demands for radios, TVs, cars, motorcycles, etc. fall under this category of primary motives. The selective buying motives influence for the purchase of specific brands, for instance, the demands for Bajaj’s Chetak Scooter, Onida TV, Philips Radios, etc.

Conscious and Dormant Buying Motives: The conscious buying motives are such motives, which are identified by the buyer without any help from marketing functions, like advertising, personal selling or promotional tools. The conscious buying motives influence the satisfaction of presently existing needs of a customer. The dormant buying motives are silent motives and do not influence the buyers until their attention is invited by the marketing functions. Thus, dormant buying motives are related with satisfaction of those needs which are created by the marketing functions.

Rational and Emotional Buying Motives: Alfred Gross has classified the buying motives as emotional and rational. Emotional buying motives influence a person to purchase certain goods or services not because of its rationality, but because of his emotion.

Product and Patronage Buying Motives: Product buying motives motivates a person towards purchasing a special products. This motive is a generated by the physical and psychological features of the product, such as design, colour, size, package, quality, price etc.

Patronage motive influences a person to purchase the products of a specific seller, dealer or a producer. If a customer is satisfied with the product of a specific seller/producer, he prefers to buy the products of that seller/producer because of certain advantages, such as home delivery of goods purchased, a reasonable price, location of the seller/shop, assortment of goods, goodwill demonstration of the product and decoration of the shop, and the good behaviour of the seller.

Q-3 Explain with examples the application of Ethics in selling. (10)

Ans) The examples of application of Ethics in selling are:

TOMS

Since 2006, TOMS’ footwear business has donated more than 60 million(!) pairs of shoes to children in need all over the world. As if that weren’t enough, TOMS’ eyewear division has given more than 400,000 pairs of glasses to visually impaired people who lack access to ophthalmological care. The company has further diversified its operations to include clean water initiatives through its coffee business, and its line of bags has helped support projects to expand access to birthing kits to expectant mothers in developing nations as well as training for birth attendants. To date, TOMS has helped more than 25,000 women safely deliver their babies.

Everlane

Clothing manufacturing is among the most controversial industries in the world. During the past 20 years or so, much greater attention has been paid to how and where our clothes are made, particularly in light of tragedies such as the blaze that tore through a garment manufacturing facility in Bangladesh in 2012, killing 117 people – a factory that supplied clothing to American retailers including Walmart and Sears. In light of greater awareness about the use of sweatshops, demand for ethically made clothing has soared in recent years, a trend that has given rise to dozens of companies that want to change how we make and view clothing, including Everlane.

Founded in 2010 by Michael Preysman, Everlane is boldly committed to ethical manufacturing. All of Everlane’s garments are made in factories that meet the most stringent quality standards – not only in terms of the clothes themselves, but also in how workers are treated. Everlane only partners with manufacturers that demonstrate a strong commitment to their workers’ welfare, a fact the company prides itself upon in its marketing material. Everlane isn’t content to merely tell you that its clothes are manufactured and sold ethically; the company also provides customers with a detailed cost breakdown for each and every one of its stylish, minimalist garments. This includes details on the cost of materials, labour, transportation and logistics, excise taxes and duties, and even hardware such as zippers and buttons.

Typically, the production costs of most commercially produced clothing are a closely guarded secret. This isn’t merely because a breakdown of such costs would reveal a brand’s potential profit margin on a specific item, but also because they highlight the desperately poor pay and conditions many people working in garment manufacturing endure. By boldly revealing precisely how much each of its garments costs to make, Everlane can offer its customers the kind of transparency consumers want while enjoying the considerable karma this kind of radical transparency offers.

Q-4 Discuss in brief the steps of sales process. (10)

Ans) The steps of sales process are:

Prospecting: The first of the seven steps in the sales process is prospecting. In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford what you offer. Evaluating whether the customers need your product or service and can afford it is known as qualifying.

Preparation: The second stage has you in preparation for initial contact with a potential customer, researching the market and collecting all relevant information regarding your product or service. At this point, you develop your sales presentation and tailor it to your potential client’s particular needs.

Approach: In the approach stage, you make first contact with your client. Sometimes this is a face-to-face meeting, sometimes it’s over the phone. There are three common approach methods.

1. Premium approach: Presenting your potential client with a gift at the beginning of your interaction

2. Question approach: Asking a question to get the prospect interested

3. Product approach: Giving the prospect a sample or a free trial to review and evaluate your service

Presentation: In the presentation phase, you actively demonstrate how your product or service meets the needs of your potential customer. The word presentation implies using PowerPoint and giving a salesy spiel, but it doesn’t always have to be that way—you should actively listen to your customer’s needs and then act and react accordingly.

Handling objections: Perhaps the most underrated of the seven steps of a sales process is handling objections. This is where you listen to your prospect’s concerns and address them. It’s also where many unsuccessful salespeople drop out of the process—44% of salespeople abandoning pursuit after one rejection, 22% after two rejections, 14% after three, and 12% after four, even though 80% of sales require at least five follow-ups to convert. Successfully handling objections and alleviating concerns separates good salespeople from bad and great from good.

Closing: In the closing stage, you get the decision from the client to move forward. Depending on your business, you might try one of these three closing techniques.

1. Alternative choice close: Assuming the sale and offering the prospect a choice, where both options close the sale—for example, “Will you be paying the whole fee up front or in instalments?” or “Will that be cash or charge?”

2. Extra inducement close: Offering something extra to get the prospect to close, such as a free month of service or a discount

3. Standing room only close: Creating urgency by expressing that time is of the essence—for example, “The price will be going up after this month” or “We only have six spots left”

Follow-up: Once you have closed the sale, your job is not done. The follow-up stage keeps you in contact with customers you have closed, not only for potential repeat business but for referrals as well. And since retaining current customers is six to seven times less costly than acquiring new ones, maintaining relationships is key.

Q-5 What are the relevant theories of sales force motivation? Discuss them. (10)

Ans) The relevant theories of sales force motivation are:

Maslow Hierarchy of Needs Theory: It is probably safe to say that the most well-known theory of motivation is Maslow’s need hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order. In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in his need hierarchy as:

1. Physiological needs

2. Safety needs

3. Social needs

4. Esteem needs

5. Self-actualisation needs

Herzberg’s Motivation- Hygiene Theory: According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying reason, he says, is that removal of dissatisfying characteristics from a job does not necessarily make the job satisfying. He believes in the existence of a dual continuum. The opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite of ‘dissatisfaction’ is ‘no dissatisfaction.’

However, Herzberg’s model is labelled with the following criticism also:

1. People generally tend to take credit themselves when things go well. They blame failure on the external environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a person may dislike part of his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Vroom’s Expectancy Theory: One of the most widely accepted explanations of motivation is offered by Victor Vroom in his Expectancy Theory” It is a cognitive process theory of motivation. The theory is founded on the basic notions that people will be motivated to exert a high level of effort when they believe there are relationships between the effort they put forth, the performance they achieve, and the outcomes/ rewards they receive.

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence

2. Expectancy

3. Instrumentality

Self-Determination Theory: Self-determination theory suggests that people are motivated to grow and change by three innate and universal psychological needs. According to self-determination theory, people need to feel the following in order to achieve psychological growth:

1. Autonomy

2. Competence

3. Connection or relatedness

Section – B

Q.6 Discuss in brief the communication skills of a salesperson. (6)

Ans) The communication skills of a salesperson:

Verbal Communication Skills: A successful conversation that results in a sale will always be a two-way process, so it’s impossible to plan completely what you’re going to say. Flexible planning can be the key to well-executed vocal communication and the key to closing sales.

Listening Skills: Actively listening to the other person shows them respect, and it gives them confidence in you and what you’re selling. This can be especially important if you’re using video conferencing equipment where there may be other distractions around you.

Non-Verbal Communication Skills: It’s important to remember that while the way that we communicate may have changed – thanks to teleconferencing programs and apps, and advanced cloud communications systems – the importance of non-vocal communication remains.

Confidence: One of the main signifiers it reveals is our self-confidence, and in sales, confidence can be a key factor in clinching deals. When we have confidence in ourselves, we exude confidence in the product or service we’re trying to sell. Once again, the benefits that confidence brings applies to both face-to-face communication, and conversations managed via online tools or a small business phone system.

Communication Technology Skills: There are advanced communication tools available for businesses of all sizes, and to suit all budgets. While they all differ in content and execution, the thing which unites these technological aids is that they make effective communication faster, easier, and more reliable.

Q.7 Explain the tools and techniques used for sales presentation and demonstration. (6)

Ans) The tools and techniques used for sales presentation and demonstration are:

Visme: Visme is a cloud-based presentation tool that allows you to create highly visual presentations to engage viewers and communicate your ideas. It features an intuitive, drag-and-drop design method for creating presentations. The business version also prioritizes brand consistency and company-wide image storage. When you or your employees create a presentation, it will feature colours, logos and images that are on brand for your organization. This promotes consistency across presentations among your employees. Visme also offers a built-in analytics system, so you can see who has viewed your presentation and who finished it.

Haiku Deck: Haiku Deck is a platform that prioritizes simplicity. Business owners can create elegant, basic presentations with high-quality images. The spartan approach allows for connecting with audiences instead of losing them in information overload due to text-heavy slides. What separates Haiku Deck from traditional presentation tools is its library of images and array of fonts. It makes it easy to craft simple, powerful presentations that are accessible on any device.

Pitcherific: Pitcherific is not only a presentation solution, but also a platform for building and practicing your presentation. It’s a template-based program that guides you through the presentation creation process. Instead of drafting a few slides, Pitcherific prompts you to write out the areas of each part of your speech. The outline for an elevator pitch, for example, includes a hook, problem, solution and closing. There are various templates for different kinds of pitches and presentations, so you’ll have guidance on many kinds of speeches and presentations.

Canva: Canva is an online platform that provides templates for a wide range of business-related publications, like resumes, newsletters, business cards, media kits, brochures and infographics. You can also use it to construct presentations.

Q.8 What do you mean by sales manual? State its benefits. (6)

Ans) A sales manual is a how-to guide that teaches your team how to close prospects. Your sales manual should be a living document. It should be updated on an ongoing basis to reflect current policies and practices. This document should be written in a similar style as an instruction book.

Benefits of Sales Manual

1. Keeps employees on the same page. A sales manual can help keep new and seasoned employees stay on the same page. It ensures your messaging is consistent across all of your employees, eliminating confusion when multiple people are dealing with prospects.

2. Aligns your sales team with company priorities. A good sales manual helps members of your sales team see how their efforts benefit the rest of the company. By creating a repeatable process that all of your sales staff can follow, you’ll improve your onboarding and strengthen company culture.

3. Improves sales and marketing alignment. The manual can also educate your sales reps on your marketing goals and initiatives. This understanding helps promote better sales and marketing alignment.

4. Equips your sales team with the tools they need. A proper manual gives your sales reps the tools they need to close deals and turn prospects into buyers. Your reps will understand how to overcome rejections and speak to your company’s value proposition. Over the long run, this will help you increase your sales and thus your bottom line.

Q.9 Describe the changing role of sales people. (6)

Ans) The changing role of sales people is given below:

The salesperson’s role has evolved from being a player in a numbers or relationship game to being a business consultant, providing maximum value to customers.

Added value today: Offering added value now means understanding the customer’s business, their industry and the competition. It means discovering how the salesperson can play a strategic role in the customer’s business. Today, successful salespeople are experts in their customers’ businesses and function as consultants, promoting the business objectives of customers and providing innovative ideas and solutions. They are also strategists, providing opportunities for customers while demonstrating value.

Consultant skills required: The four skills salespeople need to be effective consultants:

1. The ability to recognize buying behavior.

2. The ability to create a competitive offering.

3. The ability to establish a partnership.

4. The ability to understand business priorities.

Strategist skills required: The four skills required to be an effective strategic seller:

1. The ability to manage opportunities.

2. The ability to manage decisions.

3. The ability to manage competition.

4. The ability to manage messages.

Q.10 What are the various types of salesperson? (6)

Ans) The various types of salesperson are:

The Caretaker Salesperson: The caretaker is one of the most common types of salesperson that you can hire. Also known as transactional salespeople, these are employees that are often passive and are content to find a comfort zone that they rarely ever leave. They are often known as order-takers because rather than hunting for a potential sale, they wait for the sale to come to them.

The Professional Salesperson: The professional has strong analytical skills and is able to reason his way through problems. The professional develops good customer/client relationships by building a rapport and connecting with customers and clients by understanding their wants and needs.

The Closer Salesperson: Closers are the type of salesman that you often see parodied in used car commercials on TV. They are distinguished by qualities such as persistence, brashness, and a healthy dose of self-confidence. They are often referred to as “born salespeople,” because their mindset is to always be closing a deal, even if the prospective buyer is reluctant to buy.

The Consultant Salesperson: Consultants bring the qualities of a closer with the personal connection often found in professionals. They are well-rounded salespeople who know how to close a deal and build relationships at the same time.

Section – C

Q.11 Write short notes on: (5+5)

a. Motivation

Ans) Motivation is the process that initiates, guides, and maintains goal-oriented behaviours. It is what causes you to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge. Motivation involves the biological, emotional, social, and cognitive forces that activate behavior. In everyday usage, the term "motivation" is frequently used to describe why a person does something. It is the driving force behind human actions. Motivation doesn't just refer to the factors that activate behaviours; it also involves the factors that direct and maintain these goal-directed actions. As a result, we often have to infer the reasons why people do the things that they do based on observable behaviours.

Features

1. Motivation is always internal to the person: According to Berelson and Steiner, “A motive is an inner state that energizes, activates or moves and that directs or channels behaviour towards goals.”

2. Motivation of a person is in totality and not in parts: Human behaviour is caused by the various needs. A worker works in a factory because he needs money. Similarly, a thirsty man feels the need of water to conquer his thirst. The feeling of needs is a continuous process and the satisfaction of one need leads to the creation of a new one.

3. Performance is the result of ability and motivation: If an employee is highly qualified but his performance is very poor, it can be due to the absence of motivation.

b. Trial close

Ans) A trial close is a tactic sales professionals use to determine whether customers are ready to close a deal. To perform a trial close, a sales professional may ask a buyer open-ended questions that suggest the idea of closing. From the buyer's response to their open-ended questions, sales professionals can gain a better understanding of a buyer's specific needs and ascertain their readiness for making a purchasing decision. From here, sales professionals may pivot and approach future closing activities with a strategy that better accommodates the buyer's needs and anticipates potential objections.

Trial closes differ from traditional closing techniques commonly used in the sales profession. Typical closing techniques ask customers to make a decision regarding their purchase, whereas trial closes ask customers to share their opinion. While trial closes may be a part of the closing process, the purpose of using trial closes is to test the buyer, identify their level of interest in a product or service and gauge the likelihood that they'll make a purchase. Therefore, trial closes are a helpful, low-risk tool that sales professionals can employ to strengthen their sales process and increase their chances of closing deals.

Q.12 Distinguish between: (5+5)

a. Buyer and consumer

Ans) The differences between Buyer and consumer are:

b. Publicity and advertisement

Ans) The differences between Publicity and advertisement are:

1. Advertising is to advertise a product or service of a company, for commercial purposes. Publicity is to publicize a product, service or company to provide information.

2. Advertising is what a company says about its own product, but Publicity is what others says about a product.

3. There is a huge investment to be made for advertising a single product however publicity does not require such kind of investment.

4. The key persons behind advertising are the company and its representatives. Conversely, Publicity is done by a third party which is not related to any company.

5. Advertising is under the control of the company which is just opposite in the case of publicity.

6. Advertising repeatedly occurs to grab the attention of the customers while Publicity is done only one-time act.

7. Advertising always speaks the goodness about a product, to persuade the target audience to buy it. In contrast to publicity, it is unbiased, and so it will speak the reality, no matter whether it is goodness or illness.