RAJEEV S. THATTE B. Pharm (UDCT), M.M.S. (JBIMS), SMEDP (IIM-A)

ENTERPRISE EXCELLENCE CONSULTANT

Managing Trustee, Health Foundation Trust

Editor, Mumbai Dinank, Marathi Fortnightly

SALES AND PROMOTION MANAGEMENT

Innovations

Relations

Support

Success

Value Additions

MARKETING Market Research

Product Development

Pricing

Advertising / Promotion

Sales team development & control

Positive Targeted Results

Profitability

Marketing supported by R&D, Productions, HRD, Finance, Legal Department

HISTORY OF “SALES”

AS A CONCEPT

Selling is Practiced for Thousands

of year

Individuals concentrated on their

abilities and “gathered” products or

services for “Sales:

Barter system was the first way to

exchange – sale goods or

services.

600 year B.C. money – currency

was developed and barter system

started diminishing

Between A.D. 400 to A.D. 1100

only Western Europe effectively

developed the concept of sale

with money – currency media.

People in the rest of the word

continued to make everything

within family or group of

families

Around A.D. 1200 towns started developing leading to specialized individuals with specific skills.

E.g. Cobblers made shoes, tailors sewed clothing, metal smiths created table ware and jewellary.

Some of these developed a mass scale

production (or making – or servicing) of

goods and hand over to merchants to sale.

Marchants travelled far and wide, and collected

good to “Sale”.

Industrial revaluation of 1700 AD and early

1800’s increased the importance of selling

machinery which replaced hands, started

producing articles in large quantity and better

quality.

In Spite of this people did not start

beliving brands or products and buy it.

This was the time sales entered as a

special technique to take products

personally to customers, likely users

and started explaining the usefulness.

In USA Sales concept developed more rapidly.

The traveling salesman started traveling with actual material to be

sold. It was rifles, rope, cooking utensils, fabrics, thread, combs,

axes, tools, ammunition, gun powder and dynamite.

The Salesman life at that time was

strenuous, lonely and hazardous.

Salesman walked themselves from

town to town, moved on horses, and

few lucky using bullock carts.

Modern Selling As nations expanded and economics grew,

Salesman’s role changed.

In 1900 the category of marchandizers

changed, became more complex and

sophisticated.

Salesman became very important link

between customer and company.

The 2000 came with great changes. New

products, new channels, new medias, new

characters of people, new economic classes

developed.

Studding this history of ‘sales’ may help us to

learn where we stand as on date.

It gives as a vision to understand “TODAY” and

have perfect vision to visualize next 50 years..

Upto 2060 !

Strategic Business Plan

Marketing Plan

Communication Promotional Plan

Strategies to move us from where we are to where we would like to be

Objective to realise these strategies

Objectives of each activity

Advertising Sales Promotion

PR and Publicity Direct Marketing

Programmes and Budget

Review and Evaluate

Detailed plans and budget allocation

Results measured and compared

Communication Planning

Personal Selling

Player Remarks

Sender He is originator of communication.

(Source) His communication objectives must be clear.

He must understand the field of experience and frame of

references of his receiver.

He has to consider the readiness of the receiver to receive the

communication. He could be a sales person, advertisement or

coupon.

Message It should be true to the contents of the communication emerging

from the sender. It must be so worded that the receiver is able to

decode it. The process of arranging the message, in words and

pictures is called encoding.

Message Once There is a choice, a channel or a channel mix that is most

effective must be chosen. The channel can be spoken word

(personal selling) or the mass media.

Communication Process in Essence

Communication Process in Essence

Player Remarks

Channels (advertising).

Receiver The communication must reach him. He must be prepared to

receive the message. He is the target of communication. On

the delivery of message, the receiver attempts to interpret

the message. It is called decoding.

Feedback It completes the cycle of communication. It establishes for

the sender that the message has been received and

understood the way he wanted it to be received and

understood. It is the part of the overall response that is

measured by the sender.

Factor Interpersonal Mass

Communication CommunicationSpeed with which a large Slow Fast

audience is reached

Cost of reaching a large audience High Low

Attention – arresting capability High Low

Content Clarity Low Moderate to low

Accuracy flow traffic Two – way One – way

Feedback High Low

Comparison Between Interpersonal and mass Communication

Promotional Source Encoding Media Receiver Decoding Feedback

Mix Element

Advertising P & G ad Audio and Video TV Housewives Consumers Purchase

for Ariel in colour Commercial learn about of Ariel

The product’s Sales rise

stain removing up

Personal Eros Words, body Personal visit Doctors Safe anti- Prescription

Selling Pharmaceuticals language, inflammatory flow

anti – inflammatory Personal properties of

Diclofenac appearance Diclofenac

Sales Shopper’s Stop Discount Offer Local Women, Consumers Consumers

Promotion at a sales Newspaper children, Men judge the avail of offer

festival Direct of middle and benefits

mailings upper class

Publicity Interview of the Words, TV show Viewer in Viewers Viewers

chairman of gestures, India understand favorable

Hindustan Lever appearance how lever brings image about

useful products for lever

the consumers

End Consumer Demands the

Product

Retailer Wholesaler Manufacturer

Pulls Pulls Pulls

Product Product Product

Promotion

Pull Strategy of Promotion

Manufacturer

Wholesaler Retailer End Consumer

Push Push Push

Promotion

Push Strategy of Promotion

Promotion Promotion

Sales

Development Introduction Growth Maturity Decline

Sales

Time

Promotional Objectives

Generate awareness

Improve

awareness Improve

awareness Maintain brand preferences

Phase–out the product profitability

Motivate innovators adoption

Promote trials adoption

Further brand preferences

Promote new applications

Penetrate the market

Consolidate distribution

Consolidate distribution

Promotional Activity

Public relations Primary advertising

Brand advertising

Brand advertising

Ads phased out

Introductory ads Sales promotion for consumers, dealers

Sales promotion

Less S.P. S. P. phased out

Personal selling of dealers

Personal selling of dealers

More S. P. for / of dealers

S. P. for dealers phased out

Promotional Activities

Medias Available Hand Bills

Posters at POP

Wall paintings

Banners on roads / Bus Stops / Railways

Shop Boards

Advertisements on Rail / Bus / Air Tickets.

Sponsoring projects (special, commercial)

News paper Advt-News paper Tie – ups

Radio / FM / SW (Advt-Programme sponsorship)

TV Media Advt. – TV Media Tie –ups

Network – websites

Media Articles

Road / Mall flooring pasted Advt.

Hoardings

Man power (Door to Door sampling & Advt.)

Man Power (standing besides Highways major Roads

with T-Shirts/Banners in Hand

Festival Dress (T-Shirts etc. ) Banners, Posters etc.

Payment modes

Commission (for doing promotion)

Barter

Rupee / cash payment

Shares issued for the limited company

for advt. released in media (Times Group)

Generating Profits by using promotional medias

SMS: costing Rs. 7 (Rs. 1

to Airtel + Rs. 2 to TV

channel + Rs. 2 to Company

giving Advt. in media + Rs. 2

to cost of producing

Programme )

Case study of FMCG Industry

Sales / Promotion Activities

Instant Mixes (Gitts, MTR )

Heat & Eat Ready Vegetable (MTR / Kitchens of

India)

Spices (MDH, Everest, Badshah, Shan)

Edible Oils (Sweekar, Saffola, Mustard Oil)

Hair Oils ( Coconut Oil, Herbal Hair Oils, Non

Greasy Hair Oils)

Study : Market Size, Market share of

Each Company or brand,

Distribution strategy,

Promotional media used,

Sales Network in India. Media

cost incurred. Get POP print

Advt (Xerox) in class next

time.