CHSE Odisha Elective Salesmanship cheat sheet
CHSE Odisha Elective Salesmanship · Keep the key ideas within reach.
Nature, Scope and Importance of Salesmanship
Salesmanship is the personal, oral, two-way persuasion of a prospect to buy a product or service that satisfies a need; it is a subset of personal selling activity.
Scope spans goods (consumer, industrial) and services, plus non-profit and idea selling; it covers prospecting through after-sale service.
Distinguish selling from marketing: selling is one element of the promotion mix; marketing starts with customer needs before production.
Core importance to the seller: revenue generation, market feedback, brand building, and reducing inventory holding cost.
Core importance to the buyer: information, guidance in choosing among alternatives, and reduced search and risk cost.
Core importance to society: employment generation, faster distribution, and price stability through demand creation.
AIDAS (Attention, Interest, Desire, Action, Satisfaction) is the classic mental-states model describing what a sale must accomplish.
Features that make personal selling distinct: face-to-face flexibility, immediate feedback, relationship building, and highest cost per contact.
Personal Selling and the Selling Process
Seven-step selling process: prospecting and qualifying, pre-approach, approach, presentation, demonstration, handling objections, close, and follow-up (follow-up is often counted as the eighth step).
Prospecting sources: cold canvassing, referrals, telephone directories, trade directories, exhibitions, social media, and existing customer leads.
Qualifying criteria are commonly MAN (Money, Authority, Need); a lead failing any criterion is not a qualified prospect.
Pre-approach ends with a call objective: order, information, or appointment; the approach should never begin with 'May I help you?'.
Closing techniques: assumptive close, alternative-choice close, summary close, urgency close, and trial close used earlier to test readiness.
Follow-up after sale reduces cognitive dissonance, builds repeat business, and generates referrals; it is cheaper than new-customer acquisition.
Ratio measures: call-to-sale ratio and conversion rate = (sales closed / total calls) x 100; used to forecast and coach.
Selling is consultative when the salesperson diagnoses needs first; it is transactional when the offer is standard and price-led.
Sales Organisation and Sales Force Management
Organisation structures: line (simple, small firms), line-and-staff (staff specialists advise line salespeople), functional (specialists by activity), and horizontal/geographic-product-customer hybrids.
Span of control: the number of subordinates reporting to one manager; narrow spans give closer supervision but more management layers.
Recruitment sequence: job analysis -> job description (duties) and job specification (qualifications) -> sourcing -> selection.
Selection tools in order of predictive value: assessment centres and work samples > structured interviews > references > unstructured interviews.
Training methods: on-the-job (coaching, job rotation) and off-the-job (classroom, case study, role play, e-learning).
Compensation: straight salary (control, service roles), straight commission (motivation, weak loyalty), and salary-plus-incentive combination (most common).
Motivation theories applied: Maslow's hierarchy, Herzberg's two-factor (hygiene vs motivators), and Vroom's expectancy theory (motivation = expectancy x instrumentality x valence).
Sales force evaluation uses quantitative metrics (sales volume, quota attainment, call ratio, gross margin) and qualitative metrics (product knowledge, customer relations, reporting).
Buyer Behaviour and Consumer Decision Making
Five-stage consumer decision process: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour.
Buying roles in the buying centre: initiator, influencer, decider, buyer, user, and gatekeeper.
Buyer behaviour determinants: cultural, social (reference groups, family, roles), personal (age, occupation, income, lifestyle), and psychological (motivation, perception, learning, beliefs, attitudes).
Perception processes that distort messages: selective attention, selective distortion, and selective retention.
Industrial buying differs from consumer buying: derived demand, fewer but larger buyers, professional purchasing, longer cycles, and multiple influencers.
Industrial buy classes: straight rebuy (routine), modified rebuy (some change), and new task (highest risk, longest cycle).
Post-purchase dissonance rises with price, irreversibility, and number of rejected alternatives; reassurance and follow-up reduce it.
Dissonance-reducing buying behaviour occurs for high-involvement, low-differentiation purchases where price and convenience dominate.
Sales Presentation, Demonstration and Objection Handling
Presentation methods: canned (memorised, standard, good for novices), formula (structured with flexible wording, e.g. AIDA), and need-satisfaction (adaptive, question-led).
FAB (Feature-Advantage-Benefit) converts product attributes into buyer outcomes; benefits persuade, features only describe.
Demonstration rules: involve the prospect physically, demonstrate one benefit at a time, use trial closes, and never overclaim what the product cannot do.
Objection types: need-based, product-based, price, time, source, and hidden (unspoken) objections.
Handling techniques: direct denial, indirect denial ('yes, but...'), boomerang (turn objection into a reason to buy), compensation (offset a weakness with a strength), and third-party proof.
Price objections usually signal insufficient perceived value; respond by restating benefits and total cost of ownership, not by immediate discounting.
Trial close questions ('Would you prefer the standard or the deluxe?') test readiness without demanding a final decision.
Closing signals: questions about delivery, payment terms, or warranty indicate readiness; silence after a trial close often invites the prospect to commit.
Advertising, Sales Promotion and Personal Selling Integration
Promotion mix elements: advertising, sales promotion, personal selling, public relations, and direct/digital marketing.
Advertising is paid, non-personal, and mass; personal selling is unpaid by media, personal, and high cost per contact but higher conversion.
Advertising's role in the selling process is to create awareness and interest; personal selling converts interest into action and satisfaction.
Sales promotion is short-term incentive (discounts, coupons, contests, free samples, trade fairs) used to boost immediate response.
Push strategy directs promotion to channel members; pull strategy directs advertising to end consumers to create demand pressure on the channel.
Reach x Frequency = Gross Rating Points (GRP); used to compare media schedules.
Cost per thousand (CPM) = (advertising cost / audience size in thousands); used to compare media cost efficiency.
Integrated Marketing Communication (IMC) requires one consistent message across all media and channels to avoid conflicting claims.
Sales Forecasting, Sales Quotas and Sales Territories
Forecasting methods: qualitative (jury of executive opinion, Delphi, sales force composite, buyer intention survey) and quantitative (moving average, exponential smoothing, regression, time series).
Sales force composite builds a bottom-up forecast by summing salespeople's estimates; Delphi uses anonymous repeated expert rounds until consensus.
Moving average forecast = average of the last n periods; exponential smoothing: F(t+1) = alpha x A(t) + (1 - alpha) x F(t).
Forecast accuracy is measured by error = actual - forecast; use mean absolute deviation (MAD) or percentage error to compare methods.
Quota types: sales volume, gross margin, expense, activity/call, and combination quotas; they should be achievable, fair, and tied to territory potential.
Quota-setting bases: past sales, territory potential, market share, and executive judgement; past-sales-only quotas perpetuate weak-territory performance.
Territory design criteria: equal potential, equal workload, compactness, contiguity, and ease of travel; potential and workload rarely balance simultaneously.
Territory potential is estimated as number of buyers x average purchase quantity x purchase frequency.
Salesmanship and Distribution Channels / Retail Selling
Channel levels: zero-level (direct, producer to consumer), one-level (retailer), two-level (wholesaler, retailer), three-level (agent, wholesaler, retailer).
Channel functions: physical distribution, inventory holding, breaking bulk, financing, risk bearing, and market information.
Channel conflict is vertical (between levels) or horizontal (between firms at the same level); resolution tools include contracts, arbitration, and superordinate goals.
Retail selling differs from field selling: walk-in traffic, shorter interaction, high impulse-buying share, and visual merchandising doing part of the persuasion.
Retail sales approaches: greeting, needs discovery, product demonstration, cross-selling (related items) and up-selling (higher-value item).
Types of retailers by ownership and format: independent stores, chain stores, department stores, supermarkets, specialty stores, and e-tailers.
Middlemen are eliminated in disintermediation but their functions are not; functions shift to the producer or to new intermediaries.
Store layout and planogram decisions influence unplanned purchases; placing high-margin items in high-traffic zones raises basket value.
Ethics, Consumer Protection and Legal Aspects of Selling
Consumer rights under Indian consumer law: safety, information, choice, being heard, redressal, and consumer education.
Consumer Protection Act, 2019 covers goods and services, e-commerce, and establishes Central, State, and District Consumer Commissions; pecuniary limits and appeal routes are set by statute.
Three-tier redressal under the 2019 Act: District Commission, State Commission, and National Commission; complaints may be filed where the complainant resides or works.
Unfair trade practice includes false representation about quality, grade, standard, or price, and misleading advertisements.
The 2019 Act introduced product liability (manufacturer, product seller, service provider) and the Central Consumer Protection Authority (CCPA) with powers to recall and penalise misleading ads.
Ethical selling standards: truthfulness in claims, no bribery or kickbacks, confidentiality of customer data, and no high-pressure coercion.
Consumer duties: ask for a bill, check standard marks (ISI, Agmark, FSSAI), read labels, and complain promptly within limitation periods.
Misleading advertising and adulterated or spurious goods attract penalties and possible imprisonment under the 2019 Act; directors can be liable for company offences.
Emerging Trends: Digital and Relationship Selling
Digital selling channels: email, social selling (LinkedIn), video calls, CRM-driven outreach, and e-commerce marketplaces.
CRM systems record interactions and pipeline stages; key metrics are lead conversion rate, sales cycle length, and customer lifetime value.
Customer Lifetime Value (CLV) = average purchase value x purchase frequency x customer lifespan x gross margin; compare with customer acquisition cost (CAC).
Relationship selling builds long-term value through trust, mutual disclosure, and service after sale rather than one-off transactions.
Key account management assigns dedicated teams to high-value buyers; it is justified when a few accounts contribute a large share of revenue (Pareto 80/20).
Social selling is relationship-first: share expertise, engage, then convert; unsolicited bulk messaging damages trust and may breach platform rules.
Data ethics: consent, purpose limitation, and data minimisation under India's Digital Personal Data Protection Act, 2023; selling lists without consent is unlawful.
Omnichannel selling integrates online and offline touchpoints so the buyer sees consistent pricing, stock, and service across channels.
Nature, Scope and Importance of Salesmanship (supplementary)
Salesmanship is often defined as the ability to persuade people to buy goods or services for their own benefit, not merely to sell.
Personal selling is the oldest promotion tool; advertising and sales promotion developed later as mass complements.
The selling concept assumes consumers must be coaxed to buy; the marketing concept assumes products are designed around researched needs.
Selling cost per contact is highest among promotion tools because each contact reaches one buyer, unlike mass advertising.
Salesmanship creates utility through information and persuasion; it does not create form, place, or time utility, which distribution creates.
A salesperson acts as the firm's boundary spanner, carrying market intelligence back to production and product development.
Selling skills are transferable across goods, services, and ideas; the constraint is product knowledge, not the persuasion process itself.
Demand creation (primary) versus demand stimulation (selective) distinguishes pioneering salesmanship from competitive salesmanship.
Personal Selling and the Selling Process (supplementary)
AIDA assumes a monologue; the need-satisfaction approach assumes dialogue and is preferred for complex or high-value products.
The approach step has three goals: gain attention, secure interest, and earn the right to continue; a poor approach rarely recovers.
Pre-approach research covers the prospect's business, likely needs, buying authority, and competitor suppliers.
Objection handling is a normal part of the process, not a failure; unvoiced objections are more dangerous than voiced ones.
A trial close is used after each major benefit to gauge buying signals before attempting the final close.
Sales call planning follows the 80/20 rule: most sales come from a minority of qualified prospects, so qualification saves time.
After-sale service generates repeat purchase and referral business; keeping an existing customer is cheaper than acquiring a new one.
The selling process is iterative: an objection may send the salesperson back to presentation or demonstration before closing.
Sales Organisation and Sales Force Management (supplementary)
Geographic organisation is simplest and cheapest but weak when products are technically diverse or customers differ sharply.
Product organisation suits wide product lines; customer organisation suits diverse market segments; hybrid structures combine two bases.
Job description lists duties and reporting relations; job specification lists qualifications, skills, and experience required.
Sales force sizing by workload: total annual calls needed divided by calls one salesperson can make per year.
Straight salary gives maximum control and service focus; straight commission maximises short-term selling but weakens service and loyalty.
Quota-based incentives must be paired with territory fairness, or salespeople in weak territories are penalised unfairly.
Sales training should cover product knowledge, company policy, market and competitor knowledge, and selling technique.
Sales force automation (CRM) supports territory planning, call reporting, and pipeline tracking, but adoption fails without training.
Buyer Behaviour and Consumer Decision Making (supplementary)
Need recognition can be triggered internally (hunger) or externally (advertisement, peer reference).
Information sources: personal, commercial, public, and experiential; commercial sources inform, personal sources legitimise.
Evaluation uses attribute sets: the buyer ranks brands on salient attributes and applies decision rules such as conjunctive or lexicographic.
Purchase intention can be altered by attitudes of others and by unanticipated situational factors such as income loss.
Post-purchase outcomes are satisfaction (expectations met) or dissonance (doubt after commitment).
High-involvement purchases involve extended problem solving; low-involvement, low-differentiation purchases involve habitual buying.
Variety-seeking buying occurs at low involvement but high brand difference, where consumers switch for novelty.
Reference groups exert normative and comparative influence; opinion leaders accelerate diffusion of new products.
Sales Presentation, Demonstration and Objection Handling (supplementary)
The need-satisfaction presentation requires strong questioning skills; the salesperson listens more than talks in the discovery phase.
A canned presentation guarantees consistent claims but risks sounding mechanical and ignoring the specific prospect's needs.
A demonstration should be rehearsed, use working samples, and end with a trial close rather than a silent pause.
The boomerang technique converts an objection into a selling point, e.g. 'That is exactly why the price is higher.'
Direct denial should be used sparingly and only when the objection is factually wrong; it risks confrontation.
Third-party proof (testimonials, case studies, trial results) reduces perceived risk without argument.
Hidden objections surface through probing questions; ignoring them causes the close to fail without explanation.
Excessive objection handling can turn a presentation into an argument; acknowledge, answer briefly, and return to benefits.
Advertising, Sales Promotion and Personal Selling Integration (supplementary)
Advertising objectives follow the hierarchy: awareness, knowledge, liking, preference, conviction, and purchase.
Informative advertising suits new-product introduction; persuasive advertising suits competitive maturity; reminder advertising suits established brands.
Sales promotion tools for consumers: samples, coupons, price packs, premiums, contests, and demonstrations.
Trade promotion tools: buying allowances, free goods, dealer contests, and cooperative advertising.
Personal selling is most effective where the product is complex, expensive, and the market is concentrated.
Advertising is most effective where the market is large, dispersed, and the message is simple and repeatable.
Media selection criteria: reach, frequency, cost per thousand, selectivity, and message life.
Sales promotion can erode brand equity if used continuously; it trains buyers to wait for discounts.
Sales Forecasting, Sales Quotas and Sales Territories (supplementary)
Forecast horizon determines method: short-term uses moving averages and sales force composite; long-term uses regression and market-factor analysis.
Market potential is total possible sales of a product in a market; sales potential is the share a firm can realistically capture.
Sales quota is a target for a salesperson or unit; sales budget is a financial plan; the two are related but not identical.
Territory rotation and realignment are needed when potential shifts, new products launch, or salespeople leave.
Workload-based territory design calculates total calls required and divides by calls per salesperson per period.
Quota attainment ratio = actual sales / quota x 100; used with territory potential to judge effort versus opportunity.
Forecast accuracy improves when salespeople's estimates are adjusted for known bias (optimism or sandbagging).
Territory potential index compares a territory's share of company sales with its share of national market potential.
Salesmanship and Distribution Channels / Retail Selling (supplementary)
Direct distribution gives the producer control and margin but raises fixed cost and narrows reach.
Indirect distribution widens reach and lowers the producer's fixed cost but reduces control and margin per unit.
Wholesalers provide bulk breaking, storage, credit, and market coverage to retailers and producers.
Agents and brokers do not take title to goods; merchants (wholesalers, retailers) do take title and bear risk.
Channel intensity: intensive (convenience goods), selective (shopping goods), and exclusive (specialty goods) distribution.
Retail selling uses suggestive selling and add-on selling; the goal is to raise basket size, not just close one item.
Visual merchandising, signage, and product placement substitute for a salesperson when staffing is thin.
E-commerce has shortened channels but last-mile logistics and returns handling remain channel functions that must be performed.
Ethics, Consumer Protection and Legal Aspects of Selling (supplementary)
The Consumer Protection Act, 2019 replaced the 1986 Act and widened scope to e-commerce and unfair contracts.
A 'consumer' includes any person who buys goods or hires services for consideration, including online and offline buyers.
Complaints can be filed within two years of the cause of action; delay may be condoned on sufficient cause.
Product liability arises from manufacturing defects, design defects, deviation from specifications, or inadequate warnings.
The CCPA can order recall of unsafe goods, refund, and discontinuation of unfair practices; it can also penalise misleading endorsements.
Unfair contract terms, including one-sided clauses, can be challenged before the Consumer Commission.
Ethical selling prohibits misrepresentation, false urgency, and exploitation of illiterate or vulnerable buyers.
Standard marks (ISI, Agmark, FSSAI, Hallmark) signal conformity to quality standards and support consumer claims.
Emerging Trends: Digital and Relationship Selling (supplementary)
Digital funnel stages: awareness, interest, consideration, conversion, retention, and advocacy.
Inbound selling attracts prospects through content and search; outbound selling pushes through calls and email.
Marketing automation scores leads by engagement; sales follows up when a lead crosses a score threshold.
Customer acquisition cost (CAC) = total acquisition spend / number of new customers acquired; payback period = CAC / margin per customer.
Chatbots and AI assistants handle routine queries; complex or high-value deals still need human salespeople.
Relationship selling measures retention rate and share of wallet rather than single-transaction value.
Social proof (reviews, ratings, user counts) is a digital substitute for third-party references in the selling process.
Digital selling raises privacy and consent obligations; unsolicited calls are regulated by telecom authority rules.
Nature, Scope and Importance of Salesmanship (exam focus)
Common exam distinction: selling is a narrow activity, marketing is a whole-firm philosophy; salesmanship is the skill used in personal selling.
Salesmanship applies to services too; intangibility makes trust and proof more important than physical demonstration.
Non-profit selling (blood donation, social campaigns) uses the same persuasion steps with non-monetary 'price'.
Salesmanship creates employment and speeds up distribution; it also raises the cost of goods if inefficient.
The AIDAS model adds Satisfaction to AIDA to reflect post-purchase follow-up.
Salespeople are boundary spanners: they represent the firm to customers and the customer to the firm.
Pioneering selling introduces new products; competitive selling wins share in mature markets; missionary selling supports intermediaries.
Selling is a career path with progression from sales trainee to territory manager to regional and national sales manager.
Personal Selling and the Selling Process (exam focus)
Prospecting is continuous; a salesperson should always maintain a lead pipeline to replace lost accounts.
Qualification filters out leads lacking money, authority, or need before costly presentation time is spent.
The approach should be tailored to the prospect's known situation, not a generic opening.
Presentation should use benefits language; features describe the product, benefits describe the buyer's gain.
Demonstration is optional for intangible services; substitute case studies and testimonials.
Closing should follow a buying signal; premature closing creates resistance.
Follow-up includes delivery confirmation, usage guidance, and complaint resolution.
Call reports and CRM notes support coaching, forecasting, and continuity when a salesperson leaves.
Sales Organisation and Sales Force Management (exam focus)
Organisation design follows strategy: a firm entering many segments shifts from geographic to customer-based structure.
Line authority commands; staff authority advises; confusion between them causes friction in line-and-staff structures.
Recruitment sources: internal promotion (motivating, cheaper) and external hiring (fresh skills, wider pool).
Selection should use multiple tools; a single interview has low predictive validity.
Training needs analysis identifies gaps before designing a training programme.
Compensation must balance fixed security with variable motivation; pure commission suits only mature, high-margin products.
Motivation is affected by recognition, contest design, and fair territory assignment, not money alone.
Evaluation should combine outcome metrics with behaviour metrics to avoid rewarding aggressive short-term tactics.
Buyer Behaviour and Consumer Decision Making (exam focus)
The buying centre is a group, not a person; the salesperson must identify the decider and the gatekeeper.
Derived demand means industrial demand depends on consumer demand for final goods.
Straight rebuy purchases are usually handled by purchasing agents on approved supplier lists.
New task purchases involve extensive search, multiple influencers, and long negotiation cycles.
Perception is selective; buyers notice messages that match existing beliefs and ignore the rest.
Learning theory implies repeated positive reinforcement builds brand preference.
Attitudes are hard to change; it is easier to fit a product to an existing attitude than to reverse it.
Culture is the deepest influence; subculture and social class refine it further.
Sales Presentation, Demonstration and Objection Handling (exam focus)
Formula selling uses a structured sequence with flexible wording; it balances consistency with adaptation.
Need-satisfaction selling begins with questions and ends with a solution matched to stated needs.
Feature-advantage-benefit ordering should end on the benefit, because that is what the buyer remembers.
Demonstration should involve the prospect's senses and, where possible, the prospect's own hands.
Objections may be requests for more information rather than genuine resistance.
Compensation technique acknowledges the weakness and offsets it with a stronger benefit.
Price objections should be answered with value and total cost of ownership, not immediate discount.
A close should be attempted at least once; many sales are lost because the salesperson never asked.
Advertising, Sales Promotion and Personal Selling Integration (exam focus)
Advertising creates awareness and interest; personal selling converts interest into conviction and action.
Sales promotion provides a short-term reason to act now; it complements advertising and personal selling.
Public relations builds credibility that paid advertising cannot buy.
Push strategy relies on trade incentives and sales force effort; pull strategy relies on consumer advertising.
Message consistency across tools is the core requirement of integrated marketing communication.
Advertising effectiveness can be tested pre-launch (copy testing) and post-launch (recall, sales lift).
Sales promotion effectiveness is measured by redemption rate and incremental sales.
Media mix should match the target audience's media habits, not the advertiser's preferences.
Sales Forecasting, Sales Quotas and Sales Territories (exam focus)
Jury of executive opinion is fast but subjective; Delphi reduces dominance bias through anonymity.
Sales force composite uses field knowledge but tends to be conservative or inflated depending on incentive effects.
Regression forecasting relates sales to causal variables such as income, price, and advertising spend.
Time-series methods assume the future resembles the past; they fail at structural breaks.
Quotas should be set slightly above forecast to stretch effort, but not so high as to demotivate.
Activity quotas are used where sales cycles are long and volume quotas are unfair in the short term.
Territory design should balance potential and workload; perfect balance on both is rarely achievable.
Territory realignment causes disruption and should be planned with customer communication.
Salesmanship and Distribution Channels / Retail Selling (exam focus)
Channel choice depends on product type, buyer behaviour, cost, control desired, and market coverage needed.
Perishable goods favour short channels; durable, widely demanded goods favour longer channels.
Exclusive distribution supports premium pricing and dealer loyalty but limits coverage.
Intensive distribution maximises availability but makes dealer support and price control difficult.
Retail salespeople influence impulse purchases through placement, suggestion, and demonstration.
Cross-selling increases basket size by offering related products; up-selling offers a higher-value version.
Channel members perform functions that cannot be eliminated, only shifted, when a level is removed.
Franchising combines a proven format with local ownership and is common in retail expansion.
Ethics, Consumer Protection and Legal Aspects of Selling (exam focus)
Consumer rights include the right to be protected against hazardous goods and the right to information.
The right to be heard and the right to seek redressal are enforced through the three-tier commissions.
Unfair trade practices and restrictive trade practices are both actionable under consumer law.
Misleading advertisement is defined to include false descriptions and deliberately misleading representations.
Product sellers can be liable unless they can show they were unaware and exercised due care.
Endorsers can be penalised for misleading endorsements under CCPA guidelines.
Ethical selling requires informed consent, accurate claims, and protection of customer data.
Consumer awareness and education are recognised as a consumer right, not merely a government duty.
Emerging Trends: Digital and Relationship Selling (exam focus)
Digital selling shifts the salesperson's role from information provider to trusted advisor.
CRM data supports personalisation, which raises response rates and reduces wasted calls.
Social selling builds credibility through content and engagement before any sales pitch.
Relationship selling prioritises retention and share of wallet over one-time conversion.
Key account management uses cross-functional teams for strategically important buyers.
Customer lifetime value guides acquisition spending: CAC should stay well below CLV.
Data protection law requires consent and purpose limitation for using customer data in selling.
Omnichannel consistency in pricing, stock, and service is a competitive requirement, not a luxury.
Nature, Scope and Importance of Salesmanship (revision)
Salesmanship is personal persuasion; advertising is non-personal persuasion; both aim at the same buyer response.
The scope of salesmanship extends to industrial, consumer, and service markets with different buying centres.
Importance to the firm: revenue, market share, feedback, and brand representation at the point of contact.
Importance to the consumer: information, choice guidance, and reduced risk of a wrong purchase.
Importance to society: employment, distribution speed, and demand creation that supports production scale.
AIDAS extends AIDA with satisfaction, reflecting the importance of post-purchase follow-up.
Personal selling has the highest cost per contact but the highest conversion potential among promotion tools.
Selling is a subset of marketing; marketing precedes and follows the sale.
Personal Selling and the Selling Process (revision)
The selling process begins before contact (prospecting, pre-approach) and continues after the sale (follow-up).
Qualification protects selling time; unqualified leads waste presentation and travel cost.
The approach sets the tone; a benefit-led opening outperforms a product-led opening.
Presentation should match the buying motive: rational for industrial buyers, emotional for many consumer goods.
Demonstration converts abstract claims into observable proof.
Objection handling should acknowledge, answer, and return to benefits.
Closing requires a buying signal and a clear request for the order.
Follow-up turns a single sale into a relationship and a referral source.
Sales Organisation and Sales Force Management (revision)
Sales organisation defines authority, responsibility, and reporting relationships for selling activity.
Geographic, product, customer, and hybrid structures are the standard design options.
Job analysis produces job description and job specification, which drive recruitment and appraisal.
Selection validity is highest for work samples and assessment centres, lowest for unstructured interviews.
Training covers product, market, company, and selling skills.
Compensation plans trade off control (salary) against motivation (commission).
Motivation depends on fair quotas, recognition, and territory potential.
Evaluation uses both quantitative and qualitative measures to avoid distorted incentives.
Buyer Behaviour and Consumer Decision Making (revision)
Consumer decision stages may be skipped in routine purchases; extended problem solving uses all five.
Buying roles include initiator, influencer, decider, buyer, user, and gatekeeper.
Cultural, social, personal, and psychological factors shape buyer behaviour.
Selective attention, distortion, and retention filter marketing messages.
Industrial demand is derived, concentrated, and professionally managed.
Straight rebuy, modified rebuy, and new task differ in complexity and cycle length.
Post-purchase dissonance is reduced by reassurance, follow-up, and warranty support.
Involvement level and brand differentiation determine the type of buying behaviour.
Sales Presentation, Demonstration and Objection Handling (revision)
Canned, formula, and need-satisfaction are the three presentation methods.
FAB links product features to buyer benefits through advantages.
Demonstration should be rehearsed, relevant, and interactive.
Objections are classified as need, product, price, time, source, or hidden.
Handling techniques include direct denial, indirect denial, boomerang, compensation, and third-party proof.
Trial closes test readiness before the final close.
Buying signals include questions about delivery, payment, and warranty.
Overclaiming damages trust and may breach consumer law.
Advertising, Sales Promotion and Personal Selling Integration (revision)
The promotion mix combines advertising, sales promotion, personal selling, public relations, and direct marketing.
Advertising is paid, non-personal, and mass; personal selling is personal and one-to-one.
Sales promotion offers short-term incentives to consumers or trade.
Push strategy targets channel members; pull strategy targets end consumers.
GRP = reach x frequency; CPM = cost per thousand audience.
IMC requires consistent messaging across all tools and channels.
Advertising builds awareness; personal selling builds conviction and closes.
Continuous sales promotion can train buyers to wait for discounts.
Sales Forecasting, Sales Quotas and Sales Territories (revision)
Qualitative forecasts use judgement; quantitative forecasts use data and models.
Delphi uses anonymous expert rounds; sales force composite uses field estimates.
Moving average and exponential smoothing are short-term time-series methods.
Forecast error is measured by MAD or percentage error.
Quotas may be volume, margin, expense, activity, or combination based.
Quota bases include past sales, territory potential, market share, and judgement.
Territories should balance potential and workload while remaining compact and contiguous.
Territory potential = buyers x average purchase quantity x frequency.
Salesmanship and Distribution Channels / Retail Selling (revision)
Channel levels run from zero-level direct to multi-level indirect structures.
Channel functions include distribution, storage, bulk breaking, financing, risk bearing, and information.
Channel conflict may be vertical or horizontal and is managed by contracts and shared goals.
Retail selling relies on walk-in traffic, visual merchandising, and short interactions.
Cross-selling offers related items; up-selling offers a higher-value item.
Intensive, selective, and exclusive distribution match convenience, shopping, and specialty goods.
Disintermediation removes a level but not the functions it performed.
Franchising combines a proven format with local ownership.
Ethics, Consumer Protection and Legal Aspects of Selling (revision)
Consumer rights cover safety, information, choice, hearing, redressal, and education.
The Consumer Protection Act, 2019 covers goods, services, and e-commerce.
Redressal is three-tier: District, State, and National Commissions.
Unfair trade practices include false quality, grade, or price representations.
Product liability extends to manufacturers, sellers, and service providers.
The CCPA can recall goods and penalise misleading advertisements.
Ethical selling requires truthful claims, no bribery, and data confidentiality.
Consumers should demand bills and check standard marks before purchase.
Emerging Trends: Digital and Relationship Selling (revision)
Digital selling uses email, social media, video, and CRM-driven outreach.
CRM metrics include conversion rate, sales cycle length, and customer lifetime value.
CLV = average purchase value x frequency x lifespan x gross margin.
CAC should be substantially lower than CLV for sustainable acquisition.
Relationship selling builds trust and repeat business over transactions.
Key account management serves high-value buyers with dedicated teams.
Social selling engages before pitching and avoids unsolicited bulk messaging.
Data protection law requires consent and purpose limitation in digital selling.
Nature, Scope and Importance of Salesmanship (final)
Salesmanship is the persuasive, personal communication skill used in selling.
It applies to goods, services, ideas, and non-profit causes.
It differs from marketing, which is a whole-firm customer-oriented philosophy.
It generates revenue, market feedback, and brand representation.
It informs buyers and reduces their search and risk cost.
It creates employment and speeds distribution in the economy.
AIDAS describes the mental states a sale must move through.
Personal selling has the highest cost per contact and the highest conversion potential.
Personal Selling and the Selling Process (final)
The process runs from prospecting to follow-up, with qualification before presentation.
MAN (money, authority, need) is a standard qualification test.
Pre-approach ends with a defined call objective.
Presentation should lead with benefits, supported by features.
Demonstration provides observable proof of claims.
Objections are handled by acknowledging, answering, and returning to benefits.
Closing follows a buying signal and a clear request for the order.
Follow-up reduces dissonance and generates repeat and referral business.
Sales Organisation and Sales Force Management (final)
Organisation structures include line, line-and-staff, functional, and hybrid designs.
Span of control affects supervision quality and management layers.
Job description states duties; job specification states qualifications.
Selection validity is highest for work samples and assessment centres.
Training may be on-the-job (coaching, rotation) or off-the-job (classroom, role play).
Compensation options are salary, commission, and combination plans.
Motivation theories include Maslow, Herzberg, and Vroom's expectancy theory.
Evaluation uses quantitative and qualitative metrics together.
Buyer Behaviour and Consumer Decision Making (final)
The five stages are need recognition, search, evaluation, purchase, and post-purchase.
Buying centre roles include initiator, influencer, decider, buyer, user, and gatekeeper.
Determinants are cultural, social, personal, and psychological.
Perception filters are selective attention, distortion, and retention.
Industrial buying features derived demand, fewer larger buyers, and professional purchasing.
Buy classes are straight rebuy, modified rebuy, and new task.
Dissonance rises with price and irreversibility and falls with reassurance.
Involvement and differentiation determine the type of buying behaviour.
Sales Presentation, Demonstration and Objection Handling (final)
Presentation methods are canned, formula, and need-satisfaction.
FAB converts features into benefits via advantages.
Demonstration should be interactive and benefit-focused.
Objection types include need, product, price, time, source, and hidden.
Handling techniques include denial, boomerang, compensation, and third-party proof.
Trial closes test readiness before the final close.
Buying signals include delivery, payment, and warranty questions.
Overclaiming breaches trust and consumer law.
Advertising, Sales Promotion and Personal Selling Integration (final)
The promotion mix includes advertising, sales promotion, personal selling, public relations, and direct marketing.
Advertising is mass and non-personal; personal selling is individual and interactive.
Sales promotion offers short-term incentives to consumers or trade.
Push targets channel members; pull targets end consumers.
GRP = reach x frequency; CPM measures cost efficiency.
IMC requires consistent messaging across tools.
Advertising creates awareness; personal selling closes.
Continuous promotion can erode brand equity.
Sales Forecasting, Sales Quotas and Sales Territories (final)
Forecasting methods are qualitative or quantitative.
Delphi and sales force composite are judgement-based methods.
Moving average and exponential smoothing are short-term data methods.
Forecast error is measured by MAD or percentage error.
Quotas may be volume, margin, expense, activity, or combination based.
Quota bases include past sales, potential, market share, and judgement.
Territories should balance potential and workload and remain compact.
Territory potential = buyers x average purchase quantity x frequency.
Salesmanship and Distribution Channels / Retail Selling (final)
Channel levels range from direct (zero-level) to multi-level indirect.
Channel functions include distribution, storage, bulk breaking, financing, risk, and information.
Channel conflict may be vertical or horizontal.
Retail selling uses short interactions and visual merchandising.
Cross-selling and up-selling raise basket value.
Intensive, selective, and exclusive distribution match product types.
Disintermediation shifts functions rather than removing them.
Franchising combines a proven format with local ownership.
Ethics, Consumer Protection and Legal Aspects of Selling (final)
Consumer rights cover safety, information, choice, hearing, redressal, and education.
The Consumer Protection Act, 2019 covers goods, services, and e-commerce.
Redressal is three-tier: District, State, and National Commissions.
Unfair trade practices include false quality, grade, or price claims.
Product liability extends to manufacturers, sellers, and service providers.
The CCPA can recall goods and penalise misleading ads.
Ethical selling requires truthful claims and data confidentiality.
Consumers should demand bills and check standard marks.
Emerging Trends: Digital and Relationship Selling (final)
Digital selling uses email, social media, video, and CRM tools.
CRM metrics include conversion rate, cycle length, and lifetime value.
CLV = average purchase value x frequency x lifespan x gross margin.
CAC should be well below CLV.
Relationship selling prioritises retention over transactions.
Key account management serves high-value buyers with dedicated teams.
Social selling engages before pitching.
Data protection law requires consent and purpose limitation.