Crux of the personal selling exercise

Communication, therefore, is the crux of the personal selling exercise. It is the process by which a verbal or non verbal effort is made by a source to send massage through a channel to establish commonness with the receiver. This is process is composed of five stages namely source, encoding massage channel, decoding and receiver. In all marketing communications, the source is naturally the seller- the company whereas the receiver is the prospective target consumer. Before the source transmits any massage, it is encoded. Encoding involves translation of the source’s ideas into a systematic set of symbols, language or some form of expression in order to express the purpose of transmission; in our cases arousing positive buying response is the purpose. The encoded message then passes through the massage channel which may be composed of personal and non personal media engaged in transmitting either verbally or non verbally or both ways the intended message. The personal medium of communication in business parlance is the salesman who verbally communicates the message, whereas non personal medium includes advertising and sales promotion and all other vehicles such as brand and package.

However, before a receiver can respond to the massage, it is decoded by him in terms of relevance. Decoding involves reversal of the encoding process. In personal selling, where inter personal communication is involved, encoding and decoding are done by the company and consumer through their major skills and sensory capacities. In more complex communication situation such as in advertising, the source is often separated from the encoder as are the decoder and receiver. 

Product-mixes in different sectors

As allocation and reallocation of national resources is important but yet difficult task, so is the task of formulation and reshuffling of product-mixes in different sectors of the economy. The latter task touches upon decisions relating to the kind of product basket an industry or a specific economic activity should offer to the country. For example, an automobile industry has the option of manufacturing commercial and non commercial vehicles; a banking industry has the option to lend money to large scale and small scale borrowers or to institutional and no institutional borrower etc. undoubtedly, much will depend on the national priorities laid down, whether by mandate or consensus still there may be enough internal autonomy within enterprises in especially in free and mixed economies to formulate their own product mixes.

 However, in the euphoria of development activity and because of the large investments, entrepreneurs may be prone to manufacture what cost compulsions and short term profit prospects suggest. This may, at time, lead to unbalanced product mixes wherein different product items compete with each other and adversely affect the overall profit position. To overcome such problems of unbalanced product mix marketing contribute very significantly through its product planning and development function. This function involves all those activities which start with the conceivement of a product idea through its development till the stage of manufacturing. Its contribution is not only in planning a product according to the consumer needs and preferences but also in striking a balance between market necessities and production feasibility Also, by a continuous surveillance of product behavior, it can discern those product items which have become obsolete in terms of market acceptance and profit contribution. This may also help to assess the relevance of manufacturing technology employed in the firm, industry and the country. Thus, this function of marketing contributes to the production of those utilities that have greater chances of maximizing consumer satisfaction and return on investment. When its contribution is measured in aggregates, it may become evident that it performs a catalytic action by coordinating market necessities, production feasibility profit opportunities and national economic priorities and constraints. 

Motivation means stimulus

Motivation means stimulus to achieve goals set out for them by the management. Compensation as a reward for services rendered by sales force to a company serves as a financial incentive. It motivates them to give out their best to the company; Compensation undoubtedly provides a strong stimulus to salesman to vibrate, i.e. To work harder, because largely all physiological needs of salesman are served by the money which they get out of the financial rewards. It is precisely to motivate salesmen that composition and methods of compensation are varied to suit their specific needs. Both managerial experiences and studies have shown that these financial rewards go a long way in motivation salesman to give out their best to the company. It is particularly relevant to developing countries where even physiological needs are not fully satisfied in a number of cases.

  

However, money alone does not ensure consistent motivation to salesmen beyond the point where physiological needs are satisfied, both managerial experience and studies have also corroborated this phenomenon. A salesman who is not earning enough money to meet his and his family’s basic requirements of food, clothing and shelter is not likely to be much concerned about other needs in the hierarchy so long as these remain unsatisfied. But once these physiological and security needs are satisfied, the belongingness, esteem and status, and self-actualization needs become pre-potent and emerge more or less in a sequential order. Money, thus, ceases to be much relevant and loses much of its motivational force. A recent study, according to this study, the importance of certain needs or derives changes as one advances from a bare subsistence level, where survival weight most heavily, to needs of higher and higher orders. The diminishing importance of money in the executive’s advancing years is to be expected, not only because money becomes merely a ‘score card’ to those who have already enjoyed substantial success in their careers but also because the senior executive is usually better paid and finds the utility of additional money minimal.

Sale force management

Sale force management, but in no way less significant than other, Is the control of sales force operations. In the context of the sale management, control means appraisal of salesmen’s performance both periodically and on a continuing basis in order to determine the compliance of policies and achievement of plan target in respect of their job. It is also referred to as supervision, but supervision is no control. Supervision refers to the direct working relationship between the sales man and his superiors involving personal inter action. Control, on the other hand, has a broader connotation and refers to both supervision and appraisal of past performance.

The objective of sales force control are determine the performance levels of salesman

• Enforce the compliance of policy directives and achievement of target performance level and
• Identify the areas where corrective action is required.

 Control is also intended to develop a base on which to consider salesmen for various kinds of rewards and penalties. Since achievement of sales and profit targets largely hinges on the performance of the sales force, it is necessary that their operations are adequately controlled. Also because salesmen are an independent lot operation in the market separated from the sales team at the headquarters, it is imperative for management to see that their independence in no way compromises the company’s plans and policies. For this purpose effective control over their operations is essential.

  

The process of sales force control mainly involves four steps, namely, establishing standards or measures of performance, monitoring and recording actual performance, measuring and evaluating actual performance against the established standards, and triggering corrective or any other indicated action.

The normal price will be predetermined price

On the list of essential functions associated with managing sales will be aiding managerial command. Administration command is the procedure for analyzing overall performance in addition to, in case needed, utilize accurate actions to ensure that overall performance be held based on plan. Therefore, it is significant in order to plan in addition to price command. Normal pricing is often a process that allows your managing to control fees in addition to company operations. The idea aims at reducing squanders in addition to growing efficiency inside overall performance by means of starting requirements or even making price options. Price sales was formulated to satisfy the data requirements in relation to price. your personal reports can supply a historical information. Your ascertainment associated with price within the basic associated with historical data had been regarded practical at first.

The term Normal signifies a new table indicate or even yardstick. The normal price will be predetermined price that ascertains upfront what just about every product or service ought to price under offered situations. Within the phrases associated with Backer in addition to Jacobsen “Standard price is the total your companies perceives something or even your operations of a process pertaining to a period of time ought to price, relying on particular believed conditions associated with efficiency, financial conditions along with other personalities. ” Your a style of utilizing normal fees for the requirements associated with price command is recognized as normal pricing. Within the phrases associated with Brown leafy in addition to Howard, normal pricing may be establish because “ a technique associated with price sales that compares the typical price of each product in addition to services while using actual price to determine the efficiency of the operations to ensure that virtually any remedial actions may be considered instantly. ”