Marketing & Salesmanship Class X PDF

MARKETING AND SALES CLASS X Students Handbook Study Material 1 PREFACE 2 CURRICULUM Curriculum for Class X:- Marketing Unit I: Sales with other functions- Introduction to Marketing Mix Product Price Place Promotion Unit II: Mark...

MARKETING AND SALES CLASS X Students Handbook Study Material 1 PREFACE 2 CURRICULUM Curriculum for Class X:- Marketing Unit I: Sales with other functions- Introduction to Marketing Mix Product Price Place Promotion Unit II: Marketing Process: Customer group- Consumer needs/ wants Choosing right consumer groups- attractiveness Targeting the consumer group Unit III: Sales Process (I) Sales process overview Prospects & characteristics a good prospect Qualifying Placing presentation Objections Handling objections Closing sales Unit IV: Careers in selling Unit V: Skills in selling Hard skills Soft skills 3  Unit I – Sales with other functions –Introduction of Marketing Mix LOCATION: DURATION: SESSION 1: PRODUCT Learning Outcome Knowledge Performance Teaching And Evaluation Evaluation Training Method 1.What are the types/ Able to 1. Able to Interactive lecture Classroom or tools of Marketing Mix understand the understand the Company‟s four tools of significance of Power point premises 2. To understand marketing mix marketing mix. presentation on the product as the first tool and their role to four tools of of marketing mix. satisfy the needs 2. Able to analyse Marketing Mix of a prospective the types and customer. features of the product SESSION 2: PRICE Explain what is the The learner Able to analyse Interactive lecture meaning of price in would be able to the different types context of one of the understand of pricing Power point tools of marketing. the price policy techniques presentation and its strategies. SESSION 3: PLACE Understand the Able to Able to identify Interactive lecture meaning of place in understand the the correct context of one of the channels of channel of Power point tools of marketing mix distribution and distribution for a presentation role of product/ service. intermediaries in physical distribution. SESSION 4: PROMOTION Able to understand the Able to Able to Interactive lecture meaning of promotion understand the distinguish and in context of one of the need of understand the Power point tools of marketing. communicating significance of the presentation with the different types prospective tools used in customers through promoting sales. different tools used in promoting sales. 4  Unit I: Introduction to Marketing Mix CLASS X : MARKETING AND SALES UNIT -1 MARKETING MIX Introduction to Marketing Mix Every business organization has to determine its Marketing Mix for the satisfaction of needs of the customers. Marketing mix represents a combination of the marketing methods, devices and tools – product, price, promotion and place. These elements are inter-related because decision in one will usually affect actions in the others. The 4P‟s were formalized and developed over the years by experts to ensure the creation and execution of a successful marketing strategy. Through the use of this tool, the attempt is to satisfy both the customer and the seller. When properly understood and utilized, this mix has proven to a key factor in a product‟s success 5 According to William J. Stanton, “Marketing mix is the term used to describe the combination of the four inputs which constitute the core of a company‟s marketing system, the product, the price structure, the promotional activities and the distribution system.” A successful marketing strategy must have a marketing mix as well as a target market for whom the marketing mix is prepared. The marketing mix will be changing (naturally) according to changing marketingconditions and also with changing environmental factors (technical, social, economic and political) affecting each market.If the needs of the customers change, the marketing mix will also be changed. Types of Marketing Mix Marketing mix is mainly of two types. 1). Product marketing mix – Comprised of Product, Price, Place and Promotions. This marketing mix is mainly used in case of Tangible goods. 2). Service marketing mix – The service marketing mix comprises of Product, Price, Place and Promotions and has three further variables included which arePeople, Physical evidence and Process. (Diagram 1) But here in this unit we are going to discuss only the Product Marketing Mix comprising of the 4Ps. Significance / Importance of Marketing Mix Marketing mix represents a blending of all the four elements namely product, price, promotion and place /physical distribution. Determination of an effective marketing mix is an important decision for any manager of an organization. If a proper marketing mix is determined, the following benefits will accrue to the organization. Marketing mix helps in pursuing consumer-oriented marketing as it serves as a direct link between the organization and its customers thus focusing on the satisfaction of the customers. It helps in increasing the sales and earning higher profits. Marketing mix gives consideration to the various elements of marketing system. There is a balanced relation between these elements. For instance, the price of a product depends upon is 6 features and branding, packaging etc. The different media required in promoting the product will depend upon the product and its features. The channels of distribution will also depend upon the nature, utility etc of the product. Marketing mix facilitates meeting the requirement of different types of customers. Product design, pricing, promotion and distribution will depend upon the needs and purchasing power of the customers. Marketing mix signifies that its four elements are closely inter-related. Decisions or changes in one element usually affect decisions or changes in the other. 7  1. Assessment A. Fill in the blanks : i. Marketing mix is of -------------- types. ii. ---------------------------- is mainly used in case of tangible goods. iii. ---------------------, -----------------------, ----------------------- are the three further variables included in Service marketing mix. iv. The elements of marketing mix are ------------------ to one another as decision in one will affect the action in the other. B. Short questions : i. Briefly explain what is marketing mix? ii. What is the importance of marketing mix? C. Multiple choice questions: i. A business's marketing mix would NOT include: a) Product b) Profit c) Place d) Promotion e) Price ii. Which of the following descriptions provides the best definition of the marketing mix? a) The way products are arranged in a retail store to maximize sales b) The way a business combines the main marketing elements to sell products that meet the needs and wants of customers c) The way a business distributes its products through retailers and wholesalers d) The way products are priced and packaged iii. What do the 4 P's achieve when they work together? Elements of Marketing Mix or the 4 P’s a) Target customers b) Profit margins c) Creating Marketing plan d) None of the above (Diagram 1) Answers: A. i) Two ii) Marketing mix iii) People, process, physical evidence iv) Inter-related C. i) b ii) b iii) a 8  (Diagram 2) It was the marketer E. Jerome McCarthy who proposed a four Ps classification in 1960, which has since been used by marketers throughout the world. A good and easy way to understand the 4Ps is by the questions that you need to ask to define your marketing mix. Some questions that will help you understand and define each of the four elements as given in the above diagram 2 are as under: Product/Service The product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges. It is key to understand those problems that the product is attempting to solve. The benefits offered by the product and all its features need to be understood and the unique selling proposition of the product need to be studied. In addition, the potential buyers of the product need to be identified and understood. Some of the questions which will help us to understand more about the product are: What does the customer want from the product / service? What needs does it satisfy? What features does it have to meet these needs? How and where will the customer use it? What does it look like? How will customers experience it? What size(s), color(s), and so on, should it be? What is it to be called? How is it branded? How is it differentiated versus your competitors? What is the most it can cost to provide, and still be sold sufficiently profitably? 9 Place/Distribution Place includes the distribution channels, the extent of market coverage, managing inventories, transportation and logistics. Availability of the product to the customers at the right time, right place and in the right quantity are some crucial decisions in placement of a product.Place or placement has to do with how the product will be provided to or reach the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product. How a product is accessed by the end user also needs to compliment the rest of the product strategy. Distribution is of two types: Direct distribution Your business sells its products directly to customers through channels such as retail stores, markets, the internet, direct mail orders, door to door sales and catalogues. Indirect distribution Your business sells its product through some form of middleman who sells the product on behalf of the business. This may be through retailers (such as department stores), wholesalers, agents (such as a real-estate agent) or a distributor. Some questions which will help us in understanding the place element are: Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? What do your competitors do, and how can you learn from that and/or differentiate? Price Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling. If there is a positive customer value, than a product may be successfully priced higher than its objective monetary value. Conversely, if a product has little value in the eyes of the consumer, then it may need to be underpriced to sell. Price may also be affected by distribution plans, value chain costs and markups and how competitors price a rival product. Some relevant questions about the pricing strategy are given below. What is the value of the product or service to the buyer? 10  Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? What discounts should be offered to trade customers, or to other specificsegments of your market? How will your price compare with your competitors? Pricingstrategy is an important part of the marketing mix. There are a number of popular pricing techniques to choose from: 1. Cost-plus pricing. A common way to make pricing decisions is to calculate how much it costs to do a particular job or activity, and then add on a given percentage as a return for the job or activity. This is sometimes known as mark-up. For example, a business may decide that to do a small repair job on a car, including use of premises ,infrastructure, labor but excluding parts, etc, it will charge Rs 100. The business works on the basis of making a return of 25% on all the work that it does. It therefore charges the customer Rs 125. 2. Hour-based pricing. Many small businesses are able to work out what their costs are on the basis of every hour of work they do, e.g. for gardening, sign writing, photography, etc. The business owner is then able to charge a standard rate per hour. 3. Penetration pricing. When a firm brings out a new product into a new or existing market, it may feel that it needs to make quick sales in order to establish itself and to make it possible to produce larger quantities. It may therefore start off by offering the product at a low price. When it sees that product has penetrated well in the market and market penetration has been achieved, then he goes for price rise. 4. Skimming. When you bring out a new product, you may be able to start off by charging quite a high price. Some customers may want to be the first to buy your product because of the prestige of being seen with it, or because they want to be associated with your product before anyone else. Example mobile phones. Another example would be an exclusive and unique dress could be sold initially at a particilar price to wealthier customers. The next season, the price could be lowered making it accessible to a less wealthy group of customers. Later on, the dress could be mass produced and made available at low prices to the mass market. A premium price is an exclusive price charged for up market products. The marketing mix for a bank account might include: the product/service itself - the account and what the customer can do with it - e.g. overdraft facilities, direct debit payment etc the place - either online/ over the telephone or in a physical location 11 the promotion - for example attractive offers to students who open the account when first going to university such as an interest free loan, or money to buy books the price - the rate of interest paid on positive balances and charged on negative balances. Promotion The marketing communication strategies and techniques of an organization fall under the promotion. These may include advertising, sales promotions, public relations, direct mail, personal selling and internet promotion. All these have been discussed briefly. Whatever the channel used, it is necessary for it to be suitable for the product, the price and the end user it is being marketed to. It is important to differentiate between marketing and promotion. Promotion is just the communication aspect of the entire marketing function. 1. Advertising:Is any non personal paid form of communication using any form of mass media. For example on TV, Radio, Billboard, Newspaper 2. Sales Promotion:Commonly used to obtain an increase in short term sales. Could involve money off coupons or special offers, loyalty cards, coupons, price promotions e.g. point of sales, packaging promotions or web coupons. 3. Public Relations:This involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but also involves being able to handle successfully negative attention. 4. Direct Mail:Is the sending of publicity material to a named person from an organization. The aim of direct marketing is to create one to one relationships with the organizations target market. Direct marketing can come in the form of post, e-mail, telephone calls and mail order. The company usually contacts a named person at the address. 5. Personal Selling:Selling a product service one to one. This can either be done face- to- face (door to door) or over the phone. 6. Internet Marketing:The use of the web for the promotion of products or services. This could be the firm advertising via the use of banner ads, flash videos, or Google keywords. It is becoming very popular among firms as a tool for promotion. Some pertinent questions which come to the mind for understanding the promotion element are as follows. Where and when can you get across your marketing messages to your target market? Will you reach your audience by advertising online, in the press, or on TV, or radio, or on billboards? By using direct marketing mails hot? Through PR? and On the Internet? 12  When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? How do your competitors do their promotions? And how does that influence your choice of promotional activity? By using variations of these four components you have the ability to reach to multiple consumers with in your target market. Various elements of Marketing mix are interrelated and interdependent. For example: A feature of any product will depend on the price, but the price the customers can pay also determines the product features. The choice of the channels is determined by the nature of the product and its price. Similarly, any promotional activity adds to the cost of the product; the nature of product and its price also influence the kind of promotion to be done. Another easy and simple way to remember and learn the key points in the elements of the Marketing mix can be done with the help of diagram 3given below (Diagram 3) 13  2. Assessment A. Comment briefly on the following 4 P’s: i. Price ii. Product iii. Place iv. Promotion B. Give examples of each of the seven elements of the marketing mix. C. What promotional strategies are used by organization to promote their products? D. Explain in brief any two pricing techniques? E. Multiple choice question: i. The use of a name, symbol, or design to identify a product is known as a) USP b) Advertisement c) Promotion d) Branding 14  ii. Which of these promotional methods involve face to face communication with the customers a) Public relation b) Sponsorship c) Online advertising d) Personal selling iii. Which of these methods is NOT an example of direct marketing a) Direct mailing b) Sales promotion c) E-mail promotion d) Tele marketing iv. A publisher wants to reach new customers overseas. Which would be the most cost-effective form of promotion. a) Sales promotion b) Radio advertisement c) Online advertisement d) Newspaper advertisement v. Which of the 4 P's of the marketing mix concerns how much a customer pays for the goods or service being offered? a) Place b) Price c) Product d)Promotion vi. Which of the following is a short distribution channel a) Direct to the customer b) Wholesaler – retailer- consumer c) Producer – retailer- consumer d) Producer- wholesaler- retailer-consumer vii. Sales promotion can involve all of the following EXCEPT: a) Loyalty program b) TV commercials c) Samples d) Coupons 15 We can understand the concept of marketing mix with the help of the example of McDonalds Marketing Mix of McDonalds The marketing mix of McDonalds consists of the various elements in the marketing mix which form the core of a company‟s marketing system and hence helps to achieve marketing objectives. The marketing mix of McDonalds discusses the 4p‟s of the leading burger chain across India offering the tastiest burgers and french fries. Product :- McDonald‟s places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is. However, customers‟ requirements change over time. In order to meet these changes, McDonald‟s has introduced new products and phased out old ones, and will continue to do so. Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalise sales from the existing one (trade off). McDonald‟s knows that items on its menu will vary in popularity. Their ability to generate profits will vary at different points in their cycle. In India McDonalds has a diversified product range focusing more on the vegetarian products as most consumers in India are primarily vegetarian. The happy meal for the children is a great seller among others 16 Price: - The customer‟s perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item, it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity. In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). The BCV products mainly include the McVeggie and McChicken burgers that cost Rs 60-70 and the BA products include McAloo tikki and Chicken McGrill burgers which cost Rs30-40. This has been done to satisfy consumers which different price perceptions. Promotion :- The promotions aspect of the marketing mix covers all types of marketing communications One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item. At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos. Place :- Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer. McDonald‟s outlets are very evenly spread throughout the cities making them very accessible. Drive in and drive through options make McDonald‟s products further convenient to the consumers. 17  The service marketing mix can further be understood after discussing the other three variables/elements viz; people, process and physical evidence People :-The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees. Process :-The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food. Physical evidence :- McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints. A. Prepare a marketing mix assignment on any product Coca cola Nestlé’s Maggie or any other tangible product using 3. Assessment the four main elements of marketing mix. B. Analyze each of the 4 P’s mentioned in the above marketing mix. C. Prepare a case study on creating the right Marketing mix. Answers of Assessment 2: E: i) d ii) d iii) b iv) c v) b vi) a vii) a 18 UNIT: II Market (Segmentation, Targeting and Positioning) – Unit X Location: Session 1 Market Segmentation Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or Online 1. Describe the 1. Describe the 1.Identify a Interactive websites concept of importance of segment for a Lecture: Segmentation segmentation in particular marketing. product Introduction to Market 2.Explain how 2. Find out the Segmentation segmentation is requirements of done. an effective Activity: segment Make a PowerPoint presentation on market segmentation Interactive 1. Explain the Lecture: 2. Identify the various bases on 1. Classify the bases of market which a market various bases of Basis of segmentation can be segmentation. Segmentation segmented 2. Understand that different 2. Differentiate Activity: basis of between the different bases Pick up a product of segmentation are of segmentation your choice and be used for identify the segment different product for that product categories. 19 Location: Session 2 Targeting the Market Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or online 1.Explain the 1. Describe the 1.Understand Interactive websites concept of importance of how to target the Lecture: market targeting Targeting the market for a market particular Introduction to product Market Targeting 2. Analysing Activity: 2.Explain the how a market process of Make a presentation can be evaluated evaluating the on the concept of for the purposes market targeting the market of targeting 2.State the Interactive 1. Explain the 1. Classify the various Lecture: various strategies various Strategies of of Targeting the strategies of Targeting Target Marketing market targeting available to the Strategies marketer 2. Understand Activity: that different types of 2. Differentiate Choose a product or targeting between the service of your strategies can be different bases choice and identify used for different of segmentation which strategy of types of products targeting would you choose for that product or service 20 Location: Session 3 Positioning the Product Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or online 1.Describe the 1. Explain the 1.Understand Interactive websites concept of importance of how to position Lecture: Positioning Positioning the a product in a product market Introduction to Positioning 2. Analyse how a product can be Activity: associated with a Make a presentation Positioning on the importance strategy of positioning the product in the market 1. Comprehend 2.State the 1. Classify the the difference in Interactive various various the various Lecture: bases/strategies strategies of strategies of of Positioning Positoning Positioning the Positioning the product product Strategies available to the marketer 2. Understand 2. Differentiate Activity: that different between the types of Give a list of different Positioning products to the bases/strategies strategies can be students and ask of Positioning used for different them to position types of products them on particular attributes and then present in class as to why they chose a particular attribute of positioning of a particular product 21  UNIT II MARKET SEGMENTATION, TARGETING AND POSITIONING Learning Objectives (a) Understand the importance of Segmentation (b) Identify the various bases of Segmentation (c) Appreciate the significance of Targeting the Market (d) Know about the strategies of Targeting the Market (e) Learn the role and importance of Positioning (f) Comprehend the various strategies of Positioning Introduction Whenever a producer decides to produce a product that product may not be suitable for consumption of everyone. So for that matter he asks his marketing manager to identify the target audience for his product (the people who would need and buy his product) so that all the marketing strategies/plans could be designed keeping in view the needs of those specific people. That is why, when one goes to a market to buy a product, one might find different types of products for different types of people. For example, we have normal Coca-cola for general public and Diet Coca-cola for health conscious and diabetic people. Now the question arises, how is it done? This is done through the techniques of Segmentation, Targeting and then Positioning. First of all, one should understand that the whole market consists of different types of people with different tastes, preferences and behaviours. This means that the whole market is heterogeneous and catering to everybody‟s taste with one‟s product is practically impossible. So the whole market needs to be broken into smaller units or segments which consist of people with similar tastes and behaviour. By doing so the marketer will also be able to focus better on his particular target audience. This process is known as Market Segmentation. Market segmentation cannot be done in isolation. It has to be followed by „targeting the market‟ and „positioning the product‟. Marketing targeting aims at evaluating and comparing the various segments to see their attractiveness and deciding as to which segment the marketer should focus. After the decision about target market has been made, next step consists of positioning of the product in order to place the product so that it occupies a distinct place in the market as well as in the minds of the consumers. The sequential relationship between segmentation (S), targeting (T), and positioning (P), popularly called STP, is shown in Figure 22 Figure : Sequential Relationship between STP __________________________________________________________________________________ ___ Market segmentation Targeting the market Positioning the product in the segment ______________________________________________________________________________ Session 1: Market Segmentation Concept of Market Segmentation Market segmentation can be defined as the process of dividing the total heterogeneous market into relatively distinct homogeneous sub-groups of consumers with similar needs or characteristics. In other words, Market segmentation involves dividing a market into smaller segments that might require different products. Therefore, we can also say that a market segment is that portion of a larger market in which the individuals, groups, or organizations share one or more characteristics that cause them to have relatively similar product needs. Figure- showing the segmentation How to segment a Market? Or on what bases can a market be segmented: 23 Primarily, there are two broad categories of markets for which the segmentation has to be done: i) Consumer markets ii) Business markets Consumer markets are the markets where the consumers buy products for their own consumption. Whereas, in business markets, business, industrial houses or business persons buy goods and services for use in their organizations or production units for producing goods and services. Since these markets are quite different from each other, the bases for segmenting them are also different. Here, we will discuss the various bases for segmenting consumer markets only. Bases for segmenting consumer markets Marketers generally use the following four bases for segmenting their markets, as shown in the figure below. Figure: Bases of Market Segmentation Bases of Segmentation Geographic Demographic Psychographic Behavioural Geographic Regions Climate States Geographic Segmentation 24 Geographical segmentation means segmenting the market on the basis of geography. Geographic segmentation focuses on dividing the whole market into different geographic units, such as regions, states, urban, rural, climate, etc. People residing in different geographical locations might be having different needs and hence requiring different products. For example, people living in rainy areas would be requiring raincoats, umbrellas, boots while people living in deserts would not be requiring them. Therefore, the marketer has to see whether the product produced by him will cater to which market segment. The marketers marketing raincoats will have to segment their market on the basis of geography (i.e. weather). Similarly, food habits also change with geographical locations. The food habits of South Indians are different from those residing in North or West India. The marketer has to keep this in mind. In case of multinational companies, the companies segment the market by continent/country/region in the first instance, and then go for segmentation on other bases. Figure: Geographic Segmentation Demographic Segmentation Demographic Education Age Gender Income Occupation Religion level Demographic segmentation is done on the basis of the demography of a country. The demography means the composition of human population of a country. Therefore, Demographic segmentation may be based on factors like age group, income level, gender, education status, religion, occupation and so on. The tastes and needs of people of different age-groups are different. Children need toys, books, chocolates etc., while the needs of elders will be quite different. Hence, the marketer has to see that 25 the product they have produced is for all age-groups or for a particular age-group. If the product is for a particular age-group, they will have to identify that segment and target that segment only. Figure Demographic Segmentation Similarly, the marketer can also segment his market on the basis of gender (male/female), income- group (high income group, middle income group, low income group), education (literate, illiterate), occupation (skilled workers, non-skilled workers) etc. Of all these, income-group is the most commonly used basis by the marketers. For example, in Railways, AC I class, AC II tier, AC III tier, and ordinary class are the segments based on income group. Figure showing Age Segmentation 26 FIGURE- Showing Gender Segmentation Psychographic Segmentation Psychographic Personality Social-Class Life-style Psychographic segmentation is the segmentation done on the basis of social class, lifestyle, and personality characteristics of a person. Psychographic segmentation involves assessing people on the basis of their thinking, liking, disliking, behaviour and feelings. People belonging to the same demographic segment might possess different psychographic traits. For example, two brothers of the same family might be having different lifestyles, or liking or disliking. That makes it an important basis of segmentation. Although, these traits are often difficult to measure, marketers often use this type of segmentation. Some people follow healthy lifestyle. They will need the products that they think will improve their health. Some are adventurous, some are introverts. „Wills Lifestyle‟ and „lifestyle‟ departmental store are using this type of psychographic segmentation. Raymond suitings also uses psychographic segmentation. Figure: Psychographic Segmentation Behavioural Segmentation Behavioural segmentation Use on Benefits Loyalty-status User-status occasions sought 27 In this type of segmentation, the marketers divide the buyers on the basis of their behaviour patterns. Such segmentation is based on use of product based on occasions (Diwali, Holi, Mother‟s day, Father‟s day, Rose day, Promise day and so on); benefits sought (Fair and lovely to become fairer, head and shoulder‟s for dandruff free hair); user status (regular users, non-users or potential users) and loyalty status (hard core loyals or switchers) towards the product. Figure: Benefit Segmentation Understanding Segmentation A major reason of a company‟s success is the ability to segment its market effectively. Use of a particular basis of segmentation would largely be dictated by the type of product for which segmentation is being done. For example, segmenting a market on the basis of age of a person is not relevant for a product like sugar. In fact, gender classification also would not matter. However, lifestyle and usage pattern can provide a better base. Some people are health conscious and would like to consume less sugar. Similarly, segmentation can also be done on the basis of diabetics (non-users of sugar) and non-diabetics. How is segmentation done? Marketers do not necessarily limit their segmentation to one basis alone, but use multiple segmentation bases. Generally, multi-base segmentation is used depending on the nature of product and various other factors. Suppose an organization has decided to focus on manufacturing shoes for children. In developing the segment for this product, the marketer will have to decide the age-group of the children. He decides to target the children in the age group of 1-10 years (Age Segmentation). Then he has to decide whether he would be focusing on girls or boys (Gender Segmentation). His segment would be, „Shoes for girls in the age-group of 1-10 years‟. Accordingly, he will frame the marketing strategies. Table 5.12 Possible bases of Segmentation of some products Table 5.12: Some Products and Bases of Segmentation Product Possible basis of segmentation Magazines Literacy status, Gender, Occupation, Social-class Shoes Gender, Income, Benefit 28  Shampoo Benefit, Age Toothpaste Benefit Clothes Gender, Income, Age, Social-class, Personality Requirements for Effective Segmentation A marketer should select a segment that fulfills the following requirements: 1. The segment should be measurable: It means that the segment selected should be capable of being measured. It means the data should be available. For example, number of females in a country can be measured but number of people who love partying cannot be known. 2. The segment should be accessible: Accessibility means that the segment should be wthn the reach and could be approached conveniently. 3. The segment should be substantial or large: The segment that is selected should be large enough so that the production could be done for that segment. 4. The segment should be feasible: The segment should be capable of beingpractically served and be cost effective as well. 5. The segment should be different: Every segment so selected should be different. Any kind of overlapping in segments can lead to confusion and chaos. Session-1 Assessment A. Fill in the blanks: i. The two broad categories of markets are ----------- and __________. ii. Segmenting on the basis of gender is the example of ------------- segmentation. iii. Personality is the part of ----------- segmentation. B. Multiple Choice i. Which one of them is not an example of segmentation based on „Occasion‟: a. Diwali b. Father‟s day c. Id d. All of the above ii. Select the best basis of segmentation for „toys‟ from the following: a. Infants b. Children c. Both of the above d. None of the above iii. Which of the following is not a requirement for effective segmentation? a. Accessible 29  b. Economical c. Measureable d. Large enough C. True or False a. Breaking down of the heterogeneous market into homogeneous units is called Targeting. b. Segmentation helps the marketer to cater to the specific needs of the customer. c. Producing products for customers residing in North India is an example of Behavioural segmentation Checklist for Assessment Activity Use the following checklist to check whether your students could meet all the requirements for assessment. Part A i. What do you mean by Segmentation. Explain the requirements for effective segmentation. ii. Explain the Psychographic segmentation in detail. iii. List the possible basis for segmenting face crème. iv. What are the various bases of segmentation? Discuss two of them with examples. Part B Class Activity Ask the students to pick up a consumer product of their choice and try to segment it. Then explain it in the class with the help of a PowerPoint presentation. Part C Performance Standards The performance standards may include but not limited to: Performance standards Yes No The Ability to comprehend the concept of segmentation and be able to actually segment the market for the various products. 30  Session 2: Market Targeting Market targeting is the process of evaluating each identified market segment‟s attractiveness and selecting which segments to enter. Evaluating the segment: There are many factors which tell us whether the segment is attractive or not; they are size of the segment, growth prospects in the segment, accessibility of the segment, nature of the product being produced and resources of the company. If the segment or the segments fulfill the criteria above, they should be selected otherwise not. Nature of the product and resources of the company would largely determine the number of segments to enter. Selecting the segment: After evaluating the segments, the marketer has to decide as to which segments to enter. He might find many segments lucrative but the selection criteria will depend on the above mentioned factors. Once he has selected the segments, he has to decide the strategies to target these segments. The decision related to these strategies will again depend on the nature of product, resources of the organization and the strategy that the top management wants to adopt. Some of the companies may think an individual customer as a complete segment (Individual marketing) and some may consider the whole market as one segment (Mass Marketing). In between lie the Differentiated Marketing and Concentrated Marketing. Let us discuss these strategies and try to understand them. Strategies of Market Targeting Differentiated Concentrated Undifferentiated Indivdual marketing marketing ( marketing (Mass- maketing ( Micro- (Segment-based Single-segment marketing) marketing) marketing) marketing) 31 I. Undifferentiated Strategy: As the name indicates, the marketer under this strategy makes a single marketing plan for the product to be used by all the customers in the market. He considers the whole market as one segment and sells his product to everyone without differentiating. The marketers of products like steel, cement, sugar, salt etc. follow this type of strategy to target the market. Here, the nature of product is such that he will have to follow mass-marketing or undifferentiated marketing.The strength of this strategy lies in its being cost-effective. II. Differentiation Strategy (Segmented marketing): In this strategy, the firm decides to segment the total market into different segments and then designs separate products for different segments that the company wants to cater to. It means the company has something to offer to every segment it decides to enter. This type of strategy is generally followed by garment and shoe manufacturers (children, teenagers and adults) and also airlines (economy class and business class). But differentiated marketing also means more cost to the company as the company has to make a separate product for each segment. III. Concentrated Marketing (Single-segment marketing): In this strategy, the marketer selects only one single segment out of the various segments available. The reason being that the segment is untouched has less competition. For example, equipment for disabled, western wear for Indian ladies. This strategy is followed when the resources are limited. The company that serves a single segment assumes a strong position in the market because of greater understanding of the consumer needs of the segment it serves. IV. Individual Marketing/Customised Marketing: Individual marketing refers to producing products suited to the specific needs of specific individuals. It is done to satisfy the needs and preferences of individual customers. This type of marketing is also known as „one-to-one‟ marketing or „customized marketing‟. Individual marketing can range from a task such as a barber giving a particular haircut to his customer to an architect planning a villa for his client. Unlike mass production, individual marketing aims at building relationships with customers. Individual marketing is becoming more and more important and acceptable these days. For example, Nerolac paints allows you to create your own shade for your home. Strategy of Target Marketing Market Served Marketing Strategy Required Undifferentiated/Mass Total Market One mass strategy Differentiated/Segmented Selected segments Different strategies Concentrated/Single-segment Single Segment Single strategy Individual/Customised One individual Single unique strategy Session-2 Targeting Assessment A. Fill in the blanks: a. Undifferentiated strategy of target marketing is also known as ------------. b. Individual Marketing is done to satisfy the needs of -------------. c. Segmentation helps to identify the segments, while Targeting helps to ----------- segments. 32 B. Multiple Choice i. Which one of the following tells us about which segment to enter: a. Market segmentation b. Target Marketing c. Only „a‟ d. „a‟ and „b‟ both ii. Which one of the following tells us about which segment to enter: e. Market segmentation f. Target Marketing g. Only „a‟ h. „a‟ and „b‟ both iii. Undifferentiated target marketing strategy is also known as e. Single Segment Strategy f. Mass Marketing g. Individual Marketing h. Customisation C. True or False d. Collecting information about customers is called Customisation. (F) e. Individual marketing means producing products suited to the specific needs of specific individuals. (T) f. Incase of differentiated marketing strategy, selected segments of a market are selected. (T) D. Checklist for Assessment Activity Use the following checklist to check whether your students could meet all the requirements for assessment. Part A a. What is Market Targeting? How is it different from Market Segmentation, explain with the help of an Example. b. Explain the factors that the marketers should take into consideration for evaluating the segments. c. List out the various strategies available to a marketer for targeting the customer. Discuss any two of them. d. What do you understand by Niche Marketing? When should a marketer adopt this strategy. Part B 33 Class Activity Divide the class into groups and ask them to assume that they are the marketing team of an organization and then ask them to choose a product of their choice and decide which targeting strategywould they use to market their product in the form of a presentation to be presented in the class. Part C Performance Standards The performance standards may include but not limited to: Performance standards Yes No Understanding the concept and strategies of market targeting and be able to understand when to use a particular startegy. Session 3: Positioning the Product ‘Positioning the Product’ means pitching the product or creating a place for one’s product in the market in relation to competitor’s product. For attaining a place, the firm has to highlight certain features of its product which make it unique or different from competitor‟s product. Positioning helps to create a distinct position of the product in the market. For example Pepsodent has positioned itself as „Germi-check‟, and Close-Up has positioned itself as toothpaste that gives „Freshness.‟ Positioning is what you make the consumer think about you and how they perceive your product in relation to other products. A brand‟s position establishes over the years through various promotional tools like advertising, publicity, and also word-of-mouth. Positioning can be done by using both tangible (Fridge with door cooling technology; washing powder that does not produce LINT) as well as non-tangible features (Dermi-cool powder as „Thanda-thanda, cool-cool‟). A company can very effectively use its Unique Selling Proposition (USP) for positioning. Even product differentiation can form a very effective basis for positioning. Positioning Strategies/Bases Positioning of a product can be done using certain bases/strategies that are explained below: On the basis of product characteristics or customer benefits: In this strategy, the marketer tries to position his product on the basis of the benefits the customer derives from the product. For example, Corform Mattresses have been positioned on the basis of the comfort it provides to its user. Whirlpool has positioned its refrigerators on the basis of „quick ice making‟ and „Fair and Lovely‟ says that it can make one fairer. „Olay‟ says it can give you wrinkle-free skin. These products are actually highlighting their product benefits and trying to position themselves on the basis of these benefits. Sometimes, a firm can use two or three benefits as well. If the company does so then it has to be very careful as it can result in confused image of the product. Positioning on the basis of price: Some products attempt to offer more in terms of price. Many marketers try to position themselves on the basis of „economy‟ provided by them to the customers. Ginger chain of hotels has positioned itself as „ The stores like Reliance Fresh and Big Bazaar have positioned themselves as „economical stores‟. Similarly, many marketers try to position their product on the basis of price. 34 Positioning on the basis of quality: Quality and price are related to each other. High price is generally associated with higher quality. All big brands keep their prices exceptionally high to indicate their exceptionally good quality. A company can give the indication that it is charging high prices because it is delivering a quality product For example, the handbags of Da Milano Hidesign are of very good quality and very expensive. Positioning on the basis of user: Another basis is to associate a product with a user.Varousbollywood stars have been associated with Lux which gives the impression that Lux is the soap of stars. Similarly, Salman Khan endorsing the Thums-Up advertisement saying „aajkuchtoofaanikartehain‟. The fan following of Salman would find adventure in drinking Thums-Up because of celebrity association. Positioning on the basis of symbols or illustrations: Many marketers use various symbols or illustrations to create a distinctive image of themselves and position themselves accordingly.„RathVanaspati‟ has used „Rath‟ as its symbol. „Zoos Zoos‟ of Vodafone is another example. One can find many examples of this type of strategy in Indian advertising and this is especially helpful in case your target audience is illiterate. Positioning on the basis of different product class: This type of strategy is also used by the marketers to portray that the product they are offering are different from the existing product category and use it as their basis of positioning.They create their own product class. For example, Peanut butter is not a category of butter but is different from it. Sprite pitched itself against Coca-cola and Pepsi as an „Uncola‟; something which is not cola. Figure: Positioning Strategy Table 5.13 shows various brands of refrigerators and their positioning attributes. Table 5.13: Products and Positioning Attributes Product (refrigerator) Positioning Attribute Whirlpool Ice-magic (makes ice quickly) LG Door cooling technology Samsung Convertible fridge Kelvinator The coolest one 35  Session-3 Positioning Assessment C. Fill in the blanks: iv. Pitching the product or creating a place for one‟s product in the market is called ----------- -. v. For securing a position, a product has to highlight its -------------. vi. Incase mascots an figures are used to position a product, it is called positioning on the basis of -----------. D. Multiple Choice i. Positioning helps : e. To create a distinct image in the market f. To identify the segments g. To enter the segment h. All the above ii. Which of the following is not the basis of Positioning: e. On the basis of User f. On the basis of User Class g. On the basis of Quality h. On the basis of Income iii. Positioning is done: a. Before the segmentation and targeting b. After the segmentation and targeting c. Simultaneously with the segmentation and targeting d. None of the above C. True or False a. Positioning means creating a unique place for the product in the market. (T) b. For Positioning a product both tangible and non-tangible attributes are used. (T) c. When a product is positioned on the basis of some benefit that it gives, it is called Positioning on the basis of Quality. (F) Checklist for Assessment Activity Use the following checklist to check whether your students could meet all the requirements for assessment. Part A i. With the help of appropriate examples, explain the term Positioning. 36  ii. How can a product be positioned? iii. Explain any two bases of Positioning with the help of suitable examples. iv. Give three differences between Segmentation and Positioning. Part B Class Activity a. Ask the students to select a product and identify the segments for that product and also try to position by highlighting the benefit offered by the product. Part C Performance Standards The performance standards may include but not limited to: Performance standards Yes No Able to understand the concepts of Segmentation, Targeting and Positioning and also be able to apply these concepts. 1. Performance Standards The performance standards may include but not limited to: Performance standards Yes No 37 Unit-III: Sales Process – class X Location: Session 1 Prospecting Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or visiting 1. Describe the 1. Analyse the 1. Identify the Interactive kiosks Process of importance of sequential Lecture: Selling and the Process of arrangement of steps involved in Selling the steps Introduction the Process of involved in the toProcess of Selling Selling 2.Understand selling process how Selling is Activity: 2. Find out the done. importance of Prepare a each step in the presentation on whole process of Process of selling selling and present it in the class Interactive 2. Explain the 1. Comprehend 1. Classify the Lecture: first step in the the importance various Steps of process of of Prospecting in Process of Prospecting selling the process of Selling. Selling Activity: 2. Analyse the 2.Analyse how role of Role-playing in the Prospecting is Prospecting in class, wherein, done the process of some students act as Selling prospective customers and some are asked to do Prospecting 38 Location: Session 2 Planning the Approach (Pre-Approach) Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or visit 1. Explain the 1. Analyse the 1. Find out the Interactive kiosks concept of importance of process involved Lecture: Planning an Planning an in the making of Approach (Pre- Approach (Pre- a presentation Planning an Approach) Approach in the Approach process of Selling Activity: 2.Understand 2. Analyse Pre-approach Students to be asked making of a and preparation to plan an Aproach presentation is of presentation (Presentation) made 2. Describe the 1. Comprehend Interactive 1. Classify the process of the importance Lecture: various ways of planning a of Prospecting in making a presentation the process of Process of Planning presentation Selling an Approach 2. Analyse the 2. Analyse how Activity: role of Pre- Prospecting is approach in the Role-playing in the done process of class, wherein, Selling some students act as prospective customers and some are asked to do Prospecting 39 Location: Session 3 Handling Objections Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or a Kiosk 1. Define the 1. Analyse the 1. Analyse the Interactive concept of importance of difficulties in Lecture: Handling Handling Handling of Objections in Objections in the Objections Handling the process of process of Objections Selling Selling 2.Understand the 2. Apply presence of Activity: intricacies involved in mind in Visit to a mall and Handling Handling let the students have Objections Objections a word with the salesperson and first hand experience of handling objections 2.Explain the 1. Classify the Interactive 1. Comprehend various methods various ways of Lecture: the importance of Handling handling of Handling Objections objections Method of Handling Objections in the Objections process of 2. Analyse the Selling Activity: importance of 2. Analyse how asking questions Role-playing in the Objections are in Handling class, wherein, handled keeping Objections some students are in view the asked to raise customers objections and some are asked to handle them 40 Location: Session 4 Closing the Sale Classroom, Learning Knowledge Performance Teaching and retail store Outcomes Evaluation Training Method or Mall or Evaluation local vendor or a Kiosk 1. Explain the 1. Comprehend the 1. Analyse the Interactive meaning of importance of difficulties in Lecture: „Closing the „Closing the Sale‟ in „Closing a Sale‟ Sale‟ in the the Process of Selling „Closing a Sale‟ process of 2. Apply 2.Understand the presence of Activity: Selling intricacies/difficulties mind in „Closing Visit to a mall and involved in „Closing a Sale‟ let the students have the Sale‟ a word with the salesperson and first hand experience of „Closing a Sale‟ Interactive 2.Explain the Lecture: various ways of 1. Learn the „Closing the importance of 1. Classify the „Closing a Sale‟ Sale‟ „Closing the Sale‟ in various ways of bringing repeat sales „Closing a Sale‟ Activity: 2. Analysehow a Sale 2. Understand Role-playing in the is closed keeping in the importance class, wherein, a view the customers of satisfying situation is given customers in and the students are „Closing a Sale‟ asked „Close a Sale‟ 41  UNIT-III SALES PROCESS LEARNING OBJECTIVES After reading this unit the learner would be able to: (a) Describe the Sales Process. (b) Appreciate the importance of Process of Selling. (c) Understand how Prospecting is done. (d) Know how an Approach is planned. (e) Learn the ways to Handle Objections. (f) Identify the various methods to Close the Sale. 42 Introduction Every product produced has to be sold. There are a wide range of products being sold in the market. Right from a biscuit to a ship or an aeroplane, everything has to be sold by whichever way. Of all the tools available to a seller, Personal selling is an important tool to sell the products to the consumers.That means for selling the product, the company has to hire sales people who do the job of selling the product. As the value of the product increases, so does the rank of the salesperson. For example, one can find peddlars/ vendors (Pheriwalas) selling their products on a cart or a cycle or sitting on a pavement; a shoe is sold by a simple salesman at a retail outlet; while a CT scan machine is sold to a big hospital by the marketing head of an organization along with a team.Here, the period of completion of sale may range from six months to one year.But for completing a sale, a salesperson has to go through a complete selling process. Sales Process Overview The sales processincludes the five steps to conclude a sale. These are - Prospecting Qualifying Placing Presentation Objections and handling objections Closing Sale This process is not a rule of thumb but a better way of handling a sale based on the experiences of various salespersons. It is a recommended process. The salespersons can use them in their own way. Each step in the process overlaps the other or may go simultaneously and their sequence can be changed as per the demand of the sales situation by the salesperson.For cheaper products, the process may shorten and for valuable products the whole process may be followed step by step. In the following sections we will discuss and understand the various steps in the selling process in detail. Session-1 Prospecting- In order to sell a product, a sales person has to find new customers on a continuous basis. Hence, the first step in the selling process deals with finding prospects who will buy their product. Through 43 prospecting, the salesperson tries to find out the people who need the product and can afford to buy it, that is, they try to create a database of prospective customers also known as Prospects. Who is a Prospect? As already explained, Prospects are the „potential customers‟ ( persons who might become your customers). They are the ones who need the product and might buy it. A prospect can be an individual or an institution. For example, atta is required by an individual household also and a bakery and a hotel also. Hence, they are all the prospects for an atta manufacturer/producer. Characteristics of a good prospect- A prospect can be considered a good prospect only if he possesses certain characteristics. These are: Legally Paying capable capabillity Decision- Needy making Qualities of a power prospect 1. He should feel the need of that product. This can be pre-existing or can be created as well. 2. In some cases, the prospect needs a licence or legal capacity to buy the product, for example, a medical prescription is required to buy the medicine, licence to buy a gun, and only a major can buy alcohol. 3. He should also have the capability to pay for the product. 4. He should also have the ultimate decision-making power to buy the product. Figure-know your customer In this step of prospecting, the salesperson tries to obtain the database of prospective customers through various sources both internal and external to the organization. Such sources can be- References given by customers. References from sales managers Networking Obtaining the database from outside agencies that deal in providing such data. Qualifying or Selecting the Prospects 44 After collecting the database on prospective customers from various sources mentioned above, the sales person has to find out which of these prospective customers would buy the product so that he can divert his energies only to those and filter the non-productive customers.This he can do by assessing whether- The customer needs the product? The customer can afford the product? The customer listens to the salesperson with interest. All those prospects that qualify in these questions are the selected prospective customers. These are the customers for whom he will plan a sale.For this, the salesperson will gather all the information about the customers related to their needs, their demographics, their income level and so on. This will help the salespersons to build their presentations according to the specific needs of the customers and also be able to provide solutions to their specific requirements in the form of their products. This means that the salesperson will have to conduct a detailed customer research.The salesperson can obtain the data for an existing customer from past sales records and other sales data available with the company related to that customer. For a new customer, data can be obtained from internet or from data-collecting agencies. He can also conduct an „On the spot‟ research when the customer comes to buy a product.„On the spot‟ research means asking a lot of questions to the customer when he comes to buy a product. This is done to understand a customer‟s psychology and behaviour.The main purpose of this research is to gather as much information as possible so as to make the presentation effective. Converting prospects into actual customers is not an easy task and is time consuming as well. It can be well understood with the help of the figure given below- If you see the above figure, a salesperson collects the data of 100 personswho may be the possible customers (known as Leads), researches show that out of these 100 leads, only 40 will be the prospects, i.e. they are the ones who would actually be requiring the product. The salesperson should focus on these 40 prospects. Out of these only 5 will end up buying the product. Exercise:Assignment 1. Try to contact a few (3-4) sales representatives of different products (e.g. medical representative, representative of a publisher, insurance representative etc.) and ask them how they undertake prospecting? Also find out how many prospects that qualify actually become the customers? Identify if there exists any difference in the prospecting based on the different types of products or services. 45 Assessment E. Fill in the blanks: vii. Selecting the prospects by the salesperson is also called ------------. viii. A person who might become your future customer is called a -------------. ix. References obtained by the customers is an ----------- source. F. Multiple Choice iii. Which one of them is not a quality of a prospect: i. Capability to pay j. Needs the product k. Can influence the decision-maker l. Legally buy the product ii. A qualifying prospect means: i. The prospect who is selected for approach j. The prospect who is not selected for approach k. The prospect who is not relevant for approach l. The prospect who is not sure of buying iii. A sales person can collect data about consumers from i. External sources only j. Internal sources only k. Both external and internal sources l. None of the above C. True or False g. Collecting information about customers is called Customisation. (F) h. Ultimate decision-making power is a quality of a good prospect. (T) i. All the selected prospects become your customers. (F) Checklist for Assessment Activity Use the following checklist to check whether your students could meet all the requirements for assessment. Part A v. What do you mean by Prospecting? vi. List out the various qualities of a Prospect. vii. What do you understand y the term qualifying? On what basis are the prospects assessed? viii. Discuss the various sources of information used by the salesperson to collect data regarding the prospects. 46 Part B Class Activity a. Class discussion on Prospecting in the case of toothpaste vs. Prospecting in the case of pharmaceuticals. Part C Performance Standards The performance standards may include but not limited to: Performance standards Yes No Able to understand the concept of prospecting, qualities of prospects and qualifying prospects. Session-2 Planning the Presentation (Pre-Approach)- The next step is to plan the presentation. Based on the information collected during the customer research, the sales person tries to plan his presentation before meeting the customer. It means planning as to how to make a call. It is a mental exercise. Planning of presentation involves: Deciding how to approach the buyer? Deciding what questions to be asked? Deciding how to present features, benefits and advantages of the product that he thinks will satisfy the customer? Deciding how to demonstrate the product (incase the product needs demonstration)? The plan of presentation should be flexible enough to accommodate the situational changes. It is important to note that the salesperson looks impressive and presentable when he first meets the customer as it leaves a lasting effect on the customer. Therefore, when the salesperson meets the 47 customer, he should be well-dressed and should meet the customer with a smile and a warm handshake. These welcome gestures are very important to carry the presentation forward. To understand the needs of the customer, the salesperson needs to ask various questions so as to arrive at a conclusion as to which type of product would be best suited for the customer keeping in view his specific requirements. For example, A salesperson who wants to sell a washing machineto a customer can frame the following type of questions (incase he wants to sell a washing machine) to make the presentation effective: Do you wash your clothes by hand or with the help of a washing machine? Are you already having a washing machine? Which machine are you having? Automatic or semi-automatic? Who uses the washing machine? Why do you want to change the machine (Problem Identification)? Did you have problem using the machine, like hiked electricity bills, repairing problem, cleanliness of clothes etc. Would you like to purchase a fully-automatic machine? In case you intend to buy, would you like to go in for easy installment scheme the company is offering? It is important to note that the questions can be changed or modified by the sales person during the course of the meeting as per the requirements of situation and the enquiries put forth by the customer. Placing the Presentation (Approach): Figure- A salesperson giving presentation The next step relates to the preparation and placement of the presentation by the salesperson to discuss about the product features and its benefits. The purpose is to convince the customer to buy the 48 product. In case required, he should also demonstrate the product to make the more presentation more effective. If yes, then he has also to prepare for the demonstration of the product as well. How to make a presentation more effective: It should be simple. It should be convincing. It should be in the language the customer can easily understand. It should be made from customer‟s perspective. It should give a solution to the problem being faced by the customer. It should be eye-catching and involving. Demonstration: Figure- A salesperson demonstrating the working of a vaccuum cleaner It is a part of the presentation. It is done to make the presentation more effective and to convince the customers as it involves showing proofs and examples of how a product can benefit the customer. It can be in the form of visuals such as, charts and graphs, pictures, samples, powerpoint presentations, testimonials and so on. In case of electronics, actual demonstration of the product is considered very effective and is often used by the salespersons as shown in the figure below. Exercise: Assignment 1. Go to a mall and say that you want to buy a microwave oven. Observe the conversation of the salesperson and also ask for the demonstration of the product. See how the demonstration is done. Then write a report on this of 100-200 words. Assessment G. Fill in the blanks: i. Planning the presentation is also called ------------. ii. A presentation can be made more effective with the help of -------------. iii. Demonstration helps in making ----------- effective. 49  H. Multiple Choice i.Which one of the following is not a form of demonstration: a. A hand-shake b. Slides c. Figures d. Testimonials ii. A presentation is also called: a. Pre-Approach b. Approach c. Post-Approach d. Non-Approach iii. A presentation in order to be effective should be: a. Convincing b. Simple c. Easy d. All of the above C. True or False a. To understand the customer, the salesperson should ask questions. b. Demonstration is not a part of Presentation. c. The Presentation should not be changed according to the situation. Checklist for Assessment Activity Use the following checklist to check whether your students could meet all the requirements for assessment. Part A 1. Why does a salesperson need a presentation? 2. Define Demonstration. List out any three examples of Demonstration. 3. How can you make a Presentation effective? 4. As a salesperson, how would you plan a Presentation? Part B Class Activity (Group Activity) a. Imagine yourself as a salesperson and make a Presentation on a product of your choice and present it in the class. Put some element of demonstration to make it effective. 50 Part C Performance Standards The performance standards may include but not limited to: Performance standards Yes No Able to interpret the various aspects of Presentation and Demonstration and their importance in salesmanship. Session-3 Objections and Handling Objections: During the Presentation, the customer might show some curiosity or raise certain objections in the form of questions. The salesperson should immediately give attention to these objections and try to sort them out. Raising of objections or doubts is a positive sign indicating that the customer is showing interest in the presentation/product. How to handle the objections: The salesman should handle the objections very carefully and should do the following: He should listen to the customer very carefully and patiently. Respect the views of the customers and try to make his point clear. Give clarifications for the doubts raised and respond specifically to the objections. The salesperson should make sure that the customer is fully satisfied as far as his objections are concerned. Types of objections: 1. Objections related to high price: 51 While buying a product if a customer says that “the product does not fall in my budget” or “it is very expensive” ; it indicates that the customer thinks that the cost of the product is too much and he cannot spend so much on buying that product.  Handling the objection: The salesperson can try to convince the buyer by telling the customer the importance of the product and how valuable would it be for him. If still the customer is not convinced, then he can offer some other alternative which is of lesser value and suits his pocket. Sir, I am sorry, it’s a little I think it is too expensive. But it is expensive. I worth buying because cannot buy it. of its additional features. I assure you you will not repent buying it. Customer Salesperson 2. Objections related to the Product or Service: In this case, the customer is of the view that the product will not be able to solve his (customer‟s) problem. He doubts the capability of the product or service in solving his problem. Even if the salesperson tries to convince him about the capability of the product, the customer is not ready to believehis words. Handling the objection: Here the salesperson has to assure the customer about the quality, features and performance of the product and will also have to convince him by showing positive reviews of the existing customers or by giving him other proofs. 3. Objections related to Procrastinating (by giving lame excuses): When the customer is not in a mood to buy a product, he might raise objections by giving lame excuses for not buying the product or for pos