Biyani's Think Tank
Concept based notes
Sales Promotion
B.Com. Part-II






Ms. Nandita Sarsar
Lecturer
Deptt. of Commerce (Mgmt)
Biyani Girls College, Jaipur


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Preface

am glad to present this book, especially designed to serve the needs of the students.
The book has been written keeping in mind the general weakness in understanding the
fundamental concepts of the topics. The book is self-explanatory and adopts the
“Teach Yourself” style. It is based on question-answer pattern. The language of book
is quite easy and understandable based on scientific approach.
I any further improvement in the contents of the book by making corrections, omission
and inclusion in keen to be achieved based on suggestions from the readers for which the

author shall be obliged.
I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay Biyani,
Director (Acad.), Biyani’s Group of Colleges, who are the backbones and main concept
provider and also have been constant source of motivation throughout this endeavour. I
also extend my thanks to M/s. Hastilipi, Omprakash Agarwal/Sunil Kumar Jain, Jaipur,
who played an active role in coordinating the various stages of this endeavour and
spearheaded the publishing work.
I also want to thank Ms. Shivani Singh and Ms. Swati Singh for her support and guidance
during my writing work.
I look forward to receiving valuable suggestions from professors of various educational
institutions, other faculty members and students for improvement of the quality of the
book. The reader may feel free to send in their comments and suggestions to the under
mentioned address.
Author
I
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SECTION -A

Q.1 Define sales promotion? What is the nature, role & importance of sales
promotion?
OR
What is sales promotion? Discuss the nature, role & importance of sales
promotion.
Ans.: Sales promotion is a key factor & strategy for marketers within the promotional
mix. Sales promotion refers to many kinds of incentives & techniques directed
towards consumers & traders with the intention to produce immediate or short
term effects. Sales promotion helps in stimulating trial or purchase by final
customers or others in the channel. A marketer can increase the value of its
product by offering an extra incentive to purchase a product or brand. A few

definitions are quoted below:-

1. American Marketing Association - Sales promotions is media & non media
marketing pressure applied for a predetermined, limited period of time in order to
stimulate trial & impulse purchases, increase consumer demand or improve
product quality.
2. Council of Sales Promotion Agencies – sales promotion is a marketing discipline
that utilizes a variety of incentives techniques to structure sales related programs
targeted to consumers/trade/ and or sales level, that generate a specific measurable
action or response for a product/service.
3. Institute of sales promotion, U.K. – “Sales promotion comprises that range of
techniques used to attain sales/marketing objectives a cost effective manner
adding value to a product or service either to intermediate or end users, normally
but not exclusively within a definite time period”.
Sales promotions have 3 distinct characteristics –
(a) Communication – They gain attention & usually provide information that may
lead the consumer to the product.
(b) Incentive – They give certain concession, inducement or contribution that
gives value to the consumer.
(c) Invitation – They invite a distinct invitation to engage in the tre.

Nature of sales promotion:-

1. Irregular / non recurring activity- Sales promotion is an irregular & non recurring
activity to increase the sales & this technique is used for specific situations only
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such as decline in demand, fall in profit, acute competition in the market or during
the introduction of new product in the market.
2. Target- The target for producer’s sales promotion may be middleman, end users,

household or business users or the producer’s own sales force. Middleman sales
promotion at their sales people or prospects further down the channel of
distribution.
3. Motivation & extra incentive- Sales promotion involves some type of incentives
that offer a reason to buy. This incentive is usually the key element in a
promotional program & is an effort by which consumers, traders and sales force
are motivated towards maximum sales.
4. Acceleration tool- sales promotion is designed to speed up the selling process &
maximize sales volume.
5. Immediate impact- Sales promotion can be implemented quickly & gets sales
results sooner than advertising sales promotions offers an incentive to buy now.
6. Objective- The objective of sales promotion is to establish a link & coordination
between the activities like advertising, personal selling, publicity etc. sales
promotion bridges a gap between advertising and personal selling.
7. Non media activity- Sales promotion is referred to as a non media activity as sales
promotion is differentiated from advertising & publicity & also includes them as
part of the overall promotions mix.
8. Strategic role- Because of the immediate nature of the impact, sales promotion
have been thought of as merely this view is changing and the strategic role of
sales promotion and their integral role in the promotional mix are being
recognized.
9. Planned activity- The fact that sales promotion can be effective throughout the life
of a brand shows their strategic role. Sales promotion activities should be planned
well to stimulate sale.
10. Versatile- Sales promotion is extremely versatile. The different forms of sales
promotion are capable of being used with various groups & designed to achieve
different effects. Sales promotion can be useful throughout the product life cycle.
11. Means of marketing communication- It is an important means of communication
by which views & ideas of consumers about the products & services are
exchanged with the producers regularly.

12. An element of promotion mix- Sales promotion is one of the important elements
of promotion mix, other than advertising, personal selling and publicity.
13. Universal activity- It is a universal activity adopted by all the economies of the
world in their sales efforts.
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Role of sales promotion:-
1. To popularize goods and services of the producer among the potential consumers
& to motivate them towards larger purchases.
2. To motivate the existing customers for maximum purchase.
3. To maintain the sales up to normal level even during seasonal vacations & during
the declining stage of PLC.
4. To increase goodwill of the firm.
5. To educate customers/dealers & salesmen about the techniques of sales
promotion.
6. To simplify the efforts of sales force & motivate them for larger purchase.
7. To stimulate maximum sales on special occasions such as Diwali, religious
festivals & other such occasions.
8. To search for a new market & to introduce new products in to the market.
9. To counteract competition.
10. To facilitate coordination & proper link between advertising and personal selling.
11. To promote larger sales in certain specified segments of market.
12. To present a counter promotional program against the competitors.
13. To develop patronage habits among customers.
14. To prove the product better in quality & users.

Importance of sales promotion:-

Sales promotion is an important component of the marketing program . It can be a
specific tool of the promotion. Quality sales promotion provides advantages to the

various groups described below:-
1. Importance to consumers
2. Importance to producers.
3. Importance to middlemen.
4. Importance to society & nation.

1. Importance to consumers:-

(i) Availability of new products- It is easy to sell new products
with the help of sales promotional tools. Hence the
producers are encouraged to bring new products.

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(ii) Various rebates & free discounts- Sales promotions offers
various incentives like rebates & free discounts, free
samples which helps to stimulates sales & purchase.

(iii) Thrill in life- The various incentives contents samples,
demonstrations, fair and exhibitions create thrill and joy in
consumer’s life and the relish these beneficial offers.

(iv) Low price- Sales promotion increases sales volume and
reduce the unit cost of production & thus the prices reduce
& it benefits consumers.

(v) Increase knowledge- Sales promotion increases the
knowledge of the consumers with regard to the uses,
operation & maintenance of the product.


(vi) Provide higher standard of living.

(vii) Buying confidence- Sales promotion tools provide the
consumers an opportunity to understand the product. This
creates a buying confidence among consumers. They may
take better buying decisions which ultimately increases their
satisfaction level.

(viii) Minimize exploitation-
The promotional plan creates a
better knowledge about the products, their uses & quality.
As a result, the seller can’t exploit the consumers.
2. Importance to producers:-
(i) Increase in sales- Sales promotion attract consumers &
stimulate them to make larger purchaser.
(ii) Improve effectiveness of Media Activities- the sales
promotions plans make the advertisement & other media
activities more effective to achieve the sales largest these
give pulling power to ads.
(iii) Help personal selling- sales promotions supports personal
selling process the salespersons can use demonstrations ,
distributions to free samples , contest methods to push the
sales. Sales promotion aimed at company’s own sales force
might motivate salesmen to get new costumers, selling a
product.
(iv) Able to capture new market.
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(v) Increase regular sales & seasonal products.
(vi) It helps in increasing goodwill of the firm.

(vii) The various promotional incentives offered to the dealers
help to achieve cooperation from them to sale the products
& to maintain maximum stock with them.
(viii) It is an effective step to face the competition.
(ix) It helps in increasing the demand of new products.
(x) It helps in maintaining existing customers.
(xi) It creates a trusting attitude among customers. Free sample
& functional demonstrations creates a faith in the use of
merchandise which results in longer sales.
Importance to middlemen / dealers:-

(i) Facilitates longer sale.
(ii) By operating various sales promotional plans, manufacturers
provide various type of helps such as rebates, trade
discounts, gifts, rewards to dealers & resellers.
(iii) A direct relationship between the dealers & the customers
are established through the sales promotion techniques
which will continue for a long term.
(iv) As the cost of each deal is reduced the profits of dealers are
also increased.

Q.2 What are the functions performed by a sales promotion department?
Ans. The success of modern business largely depends on the functions of sales
promotion department. Sales promotion department becomes more important as
there exist a buyers’ market in place of a seller’s market.
The functions & responsibilities of sales promotions department have been
described by Alfered Ghoss & Haughten in 3 ways:

To establish coordination with other departments.
1. Assisting functions towards dealers.

2. To motivate the customers.

Usually the sales promotions department undertakes the following functions:-
1. Planning for sales promotion company-
The primary function of the sales
promotions department is to make long term & short term planning for
undertaking promotional programs. This is done by evaluating the various factors
such as market condition , level of competition , demand & supply situation ,
advertising , personal selling , etc.
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2. Assistance to top executives- The sales promotions department provides various
information to top executives & give assistance in related matters for decision
making.
3. Coordination & liaison with other departments- The sales promotion
department regularly coordinates with other departments such as advertising, sales
force management, packaging, publicity etc. The value promotion is coordinated
in view of the travelling schedule of salesmen, sales presentation etc. Sales
promotion department is also associated with production, finance, traning
departments of the organization & established coordination with these
departments from time to time.
4. Sales promotion research-
In order to make sales promotion program more
effective , the S.P. department undertakes surveys & evaluates the information
gathered to know about the changing values, traditions, culture , consumers
behavior & public opinions.
5. Execution of sales promotion program -The sales promotion department also
execute programs design for consumers, dealers & the various advertising &
promotional agencies, PR officers, distributers & exchange ideas with them. It
organizes sales exhibitions, trade fairs, contests etc, from time to time.

6. Provides training to the sales lesson -
The sales promotion department trains the
salesmen about the company , its products , promotional incentives being gives to
buyers. The department also gives introduction about company’s policies & plans.
Customers-salesmen relationship.
7. Evaluation of sales promotion - sales promotion department evaluates the
planned promotional program & with the help of these promotional plans, data are
collected & it is analyzed to find out the effectiveness of the program. Consumes
survey, consumer panels gives a clear picture of the various sales promotional
tools.
8. Assisting dealers / middlemen to make advertising more effective-
dealers also
deal with advertising of the various products. The sales promotion department
helps in producing training to the salesmen , to promote dealer interests etc. The
sales promotion department also decides on with best advertising messages,
copies & media for their products.
9. Coordination between advertising & personal selling.

Q.3 what is distinction with advertising & personal selling?
OR
Discuss the points which make sales promotion distance with that of
Advertising & personal selling.
Ans. Sales promotion can be differentiated from advertising in the following ways:-
1. New media activity:-
Sales promotions a non-media or below the line
activity & advertising is the media related activity.
2. Limited time period:-Advertising is for long term effect & is for longer
periods, whereas sales promotion is for a limited time period only.
3. Easy evaluation:-The impact of sales promotion can be easily measured
in comparison to advertising.

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4. Faces on immediate purchase:- Advertising is designed to have
awareness , interest & preference building effects over a long run. Sales
promotion simulates quick & immediate purchase or sales promotion
offers a reason to buy now.
5. Creating action:-Advertisement builds long term brand awareness &
sales promotion is used for creating action.

Distinction of sales promotion & personal selling.
1. Role:- Sales promotion helps to increase the effectiveness of personal
selling & personal selling creates desire for a product thereby effecting
sales .
2. Motivation:
-Sales promotion provides physical motivation to customers
personal selling provides physical and emotional motivation to customers
3. Personal presence:-Personal presence of salesmen is not necessary in
sales promotion whereas in personal selling salesmen is required for
selling.
4. Media:-Sales promotion can be presented through any media like vocal,
written or audio visual personal selling it can be presented through vocal
media only.
5. Compumentary function:
- Sales promotion is complimentary to personal
selling whereas personal selling does not complement to the sales
promotion program.
6. Continuity:- Sales promotion is not used as a securing activity whereas
personal selling is a routure activity which regularly operates.
7. Orientation:- Sales promotion is oriented largely towards the firms or its
product , personal selling in customer oriented.

8. Object:-The objective of sales promotion is to feel a gap between
advertising & personal selling & the objective of personal selling is to
solve the problems of customers & to get more sales

Q.4 What are the roles of sales promotion in an company or shortages?
Ans. There are three types of world economy:- developed, developing & under
developed (Shortage economy) . In an economy of shortages, the availability of
goods & resources are shorter or lesser than their demands.

Limitations of a shortage economy-

1. Under developed in economic aspects.
2. Natural resources remain untapped.
3. Restricted development of industrial activities.
4. Lower standard of living of people .
5. Shorter supply of product & resources.
6. Slow growth of capital formation.
7. Limited opportunity for employment.
Economists say that development of economy is possible only when there is increased
sale. Therefore sales promotion is considered to be tool for stimulating the sales.
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Also, in a shortage economy, seller’s market is dominant whereby seller takes the
advantage of the situation & creates situations of unfair trade practice. Thus, sales
promotion can stop this situation of unfair trade practice & thus the economy will grow
through the production of new items copy setting products of new industries & industrial
units & this way the wheel of economy development might move faster & can create a
surplus situation in an economy of shortage.

Q.5 What are the commonly used tools & techniques of dealer?

Promotions?
OR
What are the different sales promotional tools useful for traders?
Ans. These promotional tools are targeted to marketing intermediaries such as
wholesalers, retailers, distributers or agents who stock the manufactures products
for sale sales promotion directed at the trade helps push a product into the
distribution channel until it reaches customers.

Here are the most common types of trade promotion tools:-
1) Point of purchase displays:-
A manufacturer designed display distributed
to retailers who use it to draw the customers attention to product
promotions is called as pop displays. Pop includes passion racks, display
cartoons, banners, signs, price cards, mechanical product, dispenses etc.
2) Incentives:
- Incentives to members of trade include awards in the form of
travel, cash bonus, gifts etc. another form of trade incentive is referred to
as push money. Push money is carried out through a program in which
retail sales people are offered a monetary reward for featuring a marketers
brand with shoppers.
3) Trade allowance:- Trade allowance is probably a discount or deal offered
to retailers or whole sales, to eucauage then to stock display the
manufacturers product Types of allowances offered-
(i) Advertising allowance:-
In this method, actual expenses or
certain percentage to purchases made, are not met by the
producer. Instead an allowance is paid to the dealer toward
advertising expenses.
(ii) Promotional allowance:- Certain items which helps in
advertising and publicity are distributed to retailers free of cost.

Such novelties include pens, calendars, paper weights, bill books,
bags, diaries, memo pads etc.
(iii)Display allowance:
- The producers who don’t provide display
material to dealers, provide them with display allowances.
(iv) Buying allowance/Price off allowance:- The price of allowance
is given on purchase made during a specified period of time
directly from the producer. This encourage larger purchase from
the producer.
(v) Brand deal allowance:- Such allowances are given to those
middlemen who deal exclusively with a single brand.
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(vi) Buy back allowance:- It is a sum of money given to the reseller
for each unit brought after an initial deal is over.
4) Sales training program:- Another form of dealer promotional tool is
sales training program. Salesmen at the retail level need to be trained
about the features of the product, benefits, advantages of different
models/brands etc. cosmetics, appliances, computers, electronic products
are examples for which consumer rely on trained sales staff.
5) Trade shows:- Trade shows are certain activities designed where
manufacturer can display their products to current as well as prospective
buyers. They are attended by retailers to distributers and involve
demonstrating products, identifying prospectus and gathering customers.
Trade shows are particularly valuable when a new product is introducing
in to the market many companies use trade shows to entertain key
customers and to develop and maintain relationship with them.
6) Cooperative advertising:
- In this method the dealer and the producer
both jointly share the expenses of advertising. Either the producer may

bear a fix amount of the advertising expenses or certain percentage to the
purchase made by the dealer in a year.
7) Free merchandise:
- Free merchandise is sometimes offered to resellers
who purchase stated quantities of the same or different products.
8) Sales contests:- Sales contests are organized for dealers also on the basis
of highest sales achieved by dealers during a specific time period. Prizes,
certificates are issued to such dealers and such contest hence motivates the
dealer for longer purchases.
9) Retailer kits:- Materials that support retailers selling efforts are retailer
kits. The kits contain supporting information such as detailed product
specification, ad slicks- print ads that are ready to be sent to the local print
media.
10) Advertising and display aids:
- Some of the aid are –
(i) Local news paper advertising:- Advertisements in local news
paper specifying name, contact no. and address of dealers, helps
the people to know about the dealers in town.
(ii) Direct mail advertising:- In this the producer sends various
advertising and publicity material to dealer by mail. This
includes reply cards, calendars, diaries, folders, house
magazines, order book, hand bills etc.
(iii)Outdoor advertising:
- Producers provide banners, sign boards,
posters, bill boards, holdings to dealers at their own cost.
(iv) Organizing fashion shows:- Some companies organize fashion
shows in big cities to promote their products. This is also an
encouragement to dealers.
11) Sales assistance:-
(i) Building up sales plan:- Producers extend help and express

knowledge to wholesalers and retailers in building up sales plan,
formulating strategies and sales programs. This help the dealers
to increase their selling skills.
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(ii) Sales meetings:- Producers organize sales meeting for
distributers to provide knowledge about new products, sales
policies and sales plan.
(iii)Buy back guarantee:- Producers sometimes gives buy back
guarantee to dealers for the goods that have not been sold by
them. Thus goods are sold to dealers on sell or return condition.
(iv) Special trade terms:- Middlemen/Dealers are encouraged by
special trade terms which may be related to price, payment,
credit, allowance, financial assistance balance of stock etc.
(v) Special services:
- Producers also offer special services to
dealers which include packaging, categorization of products,
dealer listing.
(vi) Credit facilities:- Producers provide short term credit facility to
dealers to motivate them to have maximum stock of the goods.
12) Management assistance:- It includes –
(i) Providing knowledge about management techniques.
(ii) Advice towards policy matters.
(iii)Guidance in setting up internal organization.
(iv) Sales management process.

Q.6 What are the different tools of sales promotion for consumer promotion?
Ans. This sales promotion is aimed at final consumer or users. Consumer sales
promotion used by retailers are aimed at attracting customers to specific
locations. The consumer promotion tools are-

1) Sample-
Samples are offer of a trial amount of a product generally 84%
consumer package goods marketers use sampling as part of their
promotion strategy. by offering free samples , a company gains entry into
that market , soaps , detergents , toothpastes, shampoos, conditioners are
examples of few products that are normally popularized through free
samples. Free samples are distributed for several reasons: To stimulate tral
of a product to increase sales volume in the early stages of PLC, to obtain
desirable distribution. The samples can be distributed through in store
sampling (food products and cosmetics), door to door sampling, mail
sampling, (through postal service), news paper sampling, mobile
sampling, on package sampling, professional sampling(drugs).
2) Premiums:
- Premiums are goods offered either free or at low cost or an
incentive to buy the product. Premiums are offered as bonus, prize, gifts or
other free offers. Premium can be used to boost sales to attract
competitor’s customers, introduces different products.
E.g.
:- A quafresh toothpaste- At the launching of Aquafresh toothpaste
offered two tubes at the price of one.
Colgate offered 125gm. tube for the price of 100 gm.
Santro- book year santro today & take home a worldspace Hitachi digital
radio receiver worth Rs. 4990/- free.
Pepe- Buy products worth Rs. 4000/- & get a bag worth Rs. 888/- free.
Adidas- Buy product worth Rs. 2800/- and get a Adidas bag free.
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3) Contests:- Contests of various kinds constitute widely used sales
promotion tools. There are consumer contest which are open for all,
consumer contest are given wide publicity to attract the participation of

the widely scattered consumer base. consumer contest take a variety of
forms- Quiz contests, beauty contest, car rallies, scooter rallies, suggesting
a logo etc. Contests can be divided in to 2 broad categories- Skill
competition & sweepstakes. One form of sweepstakes is a game &
scratch off cards with instant winners & prizes are an important
promotional tool. E.g. :
(i) Nescafe shake contest – Nescafe shake contest offered Rs. 5 lacks
as total prize money with Rs. 1 lack for the first prize. The total
number of prizes ran to 21000. The contest had a specific
objective to make consumers aware of Nescafe as a cool summer
drunk in addition to this traditional image of a hot beverage.
(ii) Cadbury’s family contest- Cadbury announced fabulous prizes-
round the world, economy class are ticket for two adults & two
children plus Rs. 1 lack in prize money. The participant has to
submit a minimum no. of cadbury’s wrappers & coin a jingle to
participate in the contest. The campaign helped to increase the
sales.
(iii)Lakme – Create your own shade contest – Lakme lever held the to
elle 18, Create your own shade contest for the target audience of
elle 18 range of colors cosmetics & fragnances. The participants
were required to create own shades. The winner created a sparkling
blue shade & later Lakme launched the new shade in the market.
(iv) Pepsi contest for children – Pepsi ran a contest among children to
promote its potato chips brand ruffles. Nearly 500 children from a
school were collected 30 of them were picked to speak for a
minute the winners were given ruffles. Pepsi had covered 250
schools and 125000 students across the country spending Rs. 2
lacks only.
4) Demonstration:-
Companies resort to product demonstration for sales

promotion especially when they are coming up. With a product new to the
market. In India products like beverages, washing powders, electronic
product have utilized product demonstration as a tool of sales promotion.
it may be-
(i) Demonstration at retail store.
(ii) School demonstration.
(iii)Door to door demonstration.
(iv) Demonstrations to key people.
5) Coupons:-
Coupons are certificates which offer reductions to consumers
for specified items. Coupons distributed through newspaper, magazine
advertisement or by direct mail. Coupons enchoose the customer to exploit
the bargain and they also serve as an inducement to the trade for stocking
the items.
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Types of coupons-
(i) Instant redemption coupon- Consumers can immediately redeem
the coupon.
(ii) Bonus back coupon- Coupons can be placed inside packages so
that customer can’t redeem them quickly.
(iii)Scanner delivered coupon- Firm can issue coupons at the cash
register. These are triggered by an item being scanned.
(iv) Cross ruffling- It is the placement of a coupon for one product on
another product. E.g. a coupon for an onion sauce placed on a
package of potato chips is a cross scuffling coupon.
(v) Free standing inserts coupons can be delivered to consumers
through news paper.
(vi) In store couponing- Coupons are distributed in a retail
environment.

6) Trade fairs and exhibitions They form one of the oldest practices of sales
promotion. Trade fair & exhibition provide companies with the
opportunity for introducing and displaying their products. This brings the
company’s product and the consumers direct contact with each other.
Trade fairs have become a handy and effective tool of sales promotion.
Orders and enquiries worth billions get generated at international trade
fairs.
7) Discounts and price of E.g. 20% off on levis
10% on Tanishq
8) Free gifts/Gift cards- Companies also give gifts to consumers, dealers and
key people. These gifts include pens, diaries, table, decoration. Gifts
normally carry the company’s name and logo. The gifts are intended to
create goodwill towards the company.
9) Exchange schemes/Money back offers- This is the latest sales promotion
tool in consumer disables market. E.g. Akai exchange scheme- Bring in
your old color TV with remote.
Videocon money back offer.
Philips- 5 in 1 offer Philips TV, 2 in 1, Mixer, grinder, rice cooker at an
attractive price.
Sponsoring the games and teams- Many companies like reliance, Pepsi,
Pentaloons, Maruti sponsor different games and sports in the country and
abroad.

Q.7 What are the tools of sales promotion used for business and industrial goals?
Ans. Sales promotion is targeted for business and industrial goods also Industrial
products differ with that of consumer goods. The tools which are used are-
1) Trade shows:-
The industrial products are displayed and demonstrated to the
members of trade and industry. The representatives explain about the products.
The trade shows can be useful for smaller firms which can’t much in advertising

and also salesman can make for more contacts. Trade shows are important rules
for reaching potential wholesalers & distributers for a company’s brand.
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2) Business gifts:- These gifts are given as a part of building and maintaining a close
working relationship with suppliers business gifts may include small items of
jewellary, watch, electronic items, expensive trips.
3) Trial offers:- Trial offers are particularly well suited to the business and
industrial market. Trial offers provide a way for buyers to lower the risks of
making a commitment to one brand over another. Trial offer is a good way to
attract new customers who need a reason to try something new.
4) Frequency program:- high degree of travel associated with many business
professionals make frequency programs and an ideal form of sales promotion for
the business and industrial markets. This can be used in airline, hotel and other
industries.
5) Coupons:
- Coupons are used in business to business sector. Coupons must reach
the hands of a purchasing against or someone who has the authority to make
decision.
6) Contest and sweepstakes:- As like in consumer promotional methods.
Customer methods. Business buyers are also interested in winning prizes as are
customers in other situations.
7) Sampling: Sampling is an excellent method to encourage a business to buy a
product. E.g. producing a sample in the area of process materials has the
advantage of giving the engineers an opportunity to analyze the materials to see if
it meets their standards. Through analysis they may find that the material is
actually superior to the product they currently use.
8) Bonus picks:-
offering a prospective a bonus pack may attract new users as price
is a negotiated item in our B2B sector price of discount can be offered by vendors

seeking to obtain a new business contract.
9) Other tools:- They may include demonstrations, free training, warranties, credit
faculties maintenance services, films, publicities and audio visual aids.

Q.8 Discuss the promotional tools aimed at internal organization?
Ans. Promotional of internal organization concern with the steps to be taken for a
sound promotional programs. The elements of internal promotion are as follows-
1) Approval of promotional philosophy:-
The success of a promotional program
depends on the attitude of the top management. There for a promotional program
requires the approval of the top management. The manager has to make a cost
profit analyses so that top management appraise him about the profitability of
program.
2) Product department for marketing:
- Quality of a product is responsible for the
success of sales promotion program. As the customers are quality conscious and
he always makes a comparison with that of competitors product before taking the
final decision of purchase. Therefore the product manager should continuously
work on improving the features of the product.
3) Coordination with advertising department:-It is the advertising department that
make the ground for the sales by giving product knowledge among the distributers
as well as potential customers. When the frequency of the advertisement is
reduced then the sales promotion’s frequency start increasing. Therefore a
coordination has to be made with the advertising department.
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4) Coordination with sales department:- Sales promotion program can be
successful if a proper exhibition is established with the sales department. Its
includes arranging and organizing sales meetings and conferences, organizing
contest, sales exhibition, traveling to sales personal etc.


Q.8 Discuss in details the export- sales promotion.
Ans. Export sales promotion is the special selling efforts, motivations and aids which
are designed to serve the foreign customers and dealers to stimulate and maintain
sales in the foreign market. Export sales promotion for a foreign market follows
push and pull strategies. In push strategy the sales wrap recentlves and distributers
are stimulated for large sales and in pull strategy the buyers of goods and
customers are stimulated directly by the various customers promotional
techniques.

Objectives of
export sales promotion:-
1) To stimulate larger sale in foreign market.
2) To enter in to the foreign market with a new product.
3) To attract the customers at retail level and develop the foreign market.
4) To compensate the loss of one market by earning from the other.
5) To undertake market research.
6) To establish coordination between personal selling and advertising.
7) To test the product in over sales market.
8) To expand a PLC.
9) To establish an image in the mind of target market.

Types of export sales promotion:-

The various methods used for export sales promotion are –
1) Classification on the basis of functions to be performed & target to be reached.
(i) Introducing a new product-New product can be promoted in the foreign
market with promotional tools such as free samples, refunds, fairs &
exhibitions etc.
(ii) Increasing the use of product-Tools like price off deals, distribution of

premiums, contests are used in business market.
(iii)Direct enticement of customers at retail level-Export promotional
plans can be operated with the help of retailers tools like trading
stamps , retailer coupons , point of purchase , free training etc. are
used.
2) Classification on the basis of target audience.
(i) Customers oriented tools-Free gifts , samples , premiums , offers ,
contests, refund offers , fairs & exhibitions , stage shows , pop displays ,
coupons & trading stamps patronage rewards & special sales techniques
are used in the overseas market.
(ii) Distributions oriented tools-Sales contests dealers sales training , pop
displays , money & merchandise , allowances , advertising aids &
cooperative advertising , managerial assistant in accounting & inventory ,
formation of sales strategies are the tools for distributor promotion
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analysis of international market information , foreign trading materials etc.
can also be need.
(iii)Foreign market centered sales men techniques-The important sales
promotional tools for foreign salesmen are-Sales meeting , sales men,
contests costumers product models, samples & visual aids , sales literature
& sales training manuals, briefs of foreign trade low is foreign marketing
& sales portfolios foreign market research information.
3) Factors affecting export sales promotions-domestic marketing is different from
international market. there are differences in consumer behavior , consumer tastes
and preferences, consumption habits , business traditions, cultural values etc.
Certain factors which effect the sales promotions in foreign market are-
(i) Govt. interference-In some countries, the govt. may impose
restridions on the use of certain kinds of sales promotion
techniques used by organizations.

(ii) National opinion- The opinions may differ from country to
country. And in European countries, door to door selling of
cosmetic is considered as interference with personal affairs.
(iii)Problem of translation- languages used in sales promotion might
pose problems in the sales promotion program.
(iv) Statuary condition- Statuary conditions in many foreign countries
inculcate certain changes or modification in the promotional
techniques.
(v) Marketing environment – Consumer needs preferences, interests,
livings, conditions buying & consumption habits shopping habits ,
necessitates suitable improvements in the sales promotions
techniques.
(vi) Political views- Political conditions outlook of political leaders
exercise control over the promotional techniques upto certain limit
in foreign markets.
(vii) Structure & behavior of wholesaler & retail traders- Certain
sales promotions tools are executed by the cooperation of
wholesalers & retail traders & there for the structure & behavior
of wholesales & retailers have to be kept in mind as the
functioning & practices of these traders may be different in foreign
markets.
(viii) Consumption patterns-Consumption pattern in different
countries may differ therefore sales promotions techniques should
be used keeping in view the foreign market.
(ix) Cultural values & traditions- Sales promotions techniques
should be culturally accepted by the people in the foreign market.
As the culture of different countries differ.

Q.9 What are the needs for evaluation of sales promotion program? Discuss the
methods of evaluations of sales promotion program.

OR
Discuss the needs for evaluations of sales promotion program.
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OR
Why the need arises for evaluations of sales promotion program? Explain.
Ans Though almost all companies resort to sales promotion techniques , only some of
them follow it in a planned way. The conditions for the success of sales
promotion program are as follows:-
1. Identify the requirement – The firm needs to find out. It is to bring in
substantiate extra sales immediately. It is to offered accumulated stocks ? It is to
regain loosing consumer interest in the product etc.
2. Identifying the right promotion program-The firm has to select the program
suitable for current need & situation the choice of the firm should be deducted
according to the resources available with the firm.
3. Enlisting the involvement of salesmen-
Often sales promotion program are
conceded & planned at the head office . But for the campaigns to succeed, it is
essential that the salesmen be briefed on the contest & contest of the program.
They have to be informed of their roles in the conduct of the program.
4. Enlisting the support of the dealers:- It is also essential to enlist then support of
the dealers in any large scale sales promotion venture. Since the major part of the
activity is around the dealer shop, the pop material and the product under
campaign will get the required prominence. Only if the leader so dealers.
5. Enlisting the advertisement agency’s support:
- The adevertising agencies
support is also essential for the successful working of a sales promotion
campaign. carrying out a sales promotion campaign is as challenging as
conditioning an advertising campaign. So companies while commetting heavy
finds for sales promotion make it a point ensure that that they benefit from the

experience and experlise of their agency.
6. Timing of the campaign:- The sales need of the company is the prime factor that
desides the timing. But the firm has to eansider factors like seasonality of
purchase of product.
Need for evolution:
- The need for evaluating the sales promotion programs are-

1. Identifying growth and development opportunity.
2. Taking correction steps in case of any draw back.
3. To measure the effectiveness and achievements of objectives.
4. Facilities for future planning.
5. To encourage for research & innovations.
6. To motivate the employees into have contributor.
7. to know the maturity limit of sales promotion program.
8. To study new & modern tools of promotion.
9. To get allocated maximum budget for sales promotion.
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Methods of evalution:-
1. Sales data method- This method is a widely a accepted practice. In this method ,
sales volume or market share prior to any sales promotion techniques are
measured . Eg. If market share of a product before the introduction of sales
promotion is 4% , during the period 10% & immediately after the program 6% ,
Thus giving an increase of 8%. Showes that new customers are created by the
sales promotion program.
2. Consumer panel data- This technique help to identify that how the customers
have been motivated by the sales promotion technique for longer purchase . How
much quality have the customers purchased & What were the charges of their
buying behavior after the sales promotion program. This technique help to
identify the various classes of customers on new or old customers / women / men

/ industrial / general customers etc.
3. Consumer surveys-
This method collects various kinds of information about the
customers so as to analysis the effectiveness of sales promotion. The analysis of
suchinformation help to know following things-
1) The numbers of customers who have remembered the techniques used.
2) The views opinion about these techniques.
3) How these technique have been helpful in influencing the buyer’s
behavior & brand chore of customer?
4) Do the customer require any innovation to be differed in the product?
5) Do these techniques improve the image of the firm?
6) Do they feel like using these techniques through the year?
4. Experiment methods-
The effectiveness of sales promotion technique may be
measured by experimenting them in selected markets. However there can be
certain difficulties. They are as follows-
1) The consumer always looks for deals customers are interested only in the
purchase in the items Which offer certain additional incentive with that of
the product.
2) The promotional tools at times can be very costly as, if the organization
does not get expected results. Then the price of product may be increased.
3) The cooperation from middlemen might not be smooth.
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SECTION - B

Q.1 What do you mean by recruitment of sales men ? What are the sources
through which salesmen are recruited : Discuss the merest & demerits of each.
In context of selection procedure
Discuss this statement –“The fortune of a consumer depends on sales which

intern depends on salesmen.”
Ans. Recruitment is the process of identifying key people in the organization & a process
to discover the source of manpower to meet the requirements of staffing schedule
& to employ effective measure for attracting the manpower in adequate numbers to
facilitate effective selection requirement is the first part of building a top notch
sales free.
Some of the definition of requirement are-
1. Edwin & Flippo –
“Recruitment is the process of searching of prospector
employees & stimulating them to apply for jobs in the organization.”
2. Victor P. Bull- “Recruitment is the search for the best equitable candidate for a
sales position . ”
3. Byars & Rue- “Recruitment involves seeking & attracting a pool of people from
which qualified candidates for job vacancy can be chosen .”
4. Spiro & Stantion-
“Recruitment includes identifying source of recruits that are
consistent with the type of person desired selecting the source to be used &
contacting the recruits.”

Process of Recruitment:-
The Process of Recruitment Involves:-
1) Establishing responsibility for Recruitment- The management must give
responsibility as to who will make the recruitment & the selection decision. this
responsibility might be given to the top sales manager , the HR department or the
sales manager.
2) Determining sales force needs-
The no. of new sales people depends on factors
such as sales growth targets, distributions strategies, sales force turn over. The
sales force turn over can be because of poor performance, retirement, resignation
for another job etc.

3) Considering company nature- A specific definition of the organization’s culture
is necessary for planning cycle validity. The process of aligning a company’s
recruiting strategies to its case culture should help attract and retain higher
programming sales people as complained to those companies whose recruitment
process are reactive.
4) Determination of the number of sales personnel required –
The number of
salesmen is determined by keeping in view the following facts like- Present sales
activities of the firm, future prospectus for expression of sales, estimated sales by
each salesman, no. of present salesman to be promoted for higher posts, expected
no. of persons to leave the firm in the future, the usual turnover rate of the
salesman.
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The formula used for calculating the no. of requirement of salesman is-
N= S/P (1+T)
Where
N= Number
S= Sales forecast
P= Present average sales
T= Turnover rate of sales personnel.

5) Developing a profile of the type salesman needed- The profile and nature of
salesmen is determined on the basis of the job requirements. Salesmen may be of
different nature and the nature of salesmen be determined on the basis of job
requirements. Two functions are mainly involved in determining the nature and
suitability of the salesmen-
(i) Job analysis –
It refers to the process of studying the operations, duties
and organizational aspects of jobs in order to derive specification, for

analyzing the job being carried out by salesmen, following two activities
involved-
a) Job description- In this process first of all analysis of sales
activities are made and then job description is prepared. The
following points are usually covered like-
 Title of job.
 Organizational relationship.
 Types of products & services sold.
 Types of customers called on.
 Duties and responsibilities related to the job.
 Job demands.
 Hiring specifications.
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b) Man specifications- It gives light on the employee needs. It
contains information on physical, features, health, voice, mental
qualities like education, mental balance, etc. social & moral
qualities like obedience , encouragement , friendship , sincerity ,
capacity to bear the heights & responsibilities , work experience
etc.
(ii) Review of the present salesmen- The existing salesmen are received to
as certain how many of them have been successful in their functions. As
a result of review, some changes may be interfused for them also.
6) Evaluating introduced recruitment
- The company should continuously evaluate
the effectiveness of recruitment process. It will enable the management to
determine which sources produced the best results.
Source o recruitment – The source of recruitment can be categorized into-
1. Internal sources-
a) Company sales personal.

b) Company executives.
c) Internal transfers.
2. External sources-
a) Unsolicited applications - All companies receive unsolicited walk in &
write in applications directly for sales job . The most logical policy is to
create volunteer applications the same as solicited applications.
b) Employment agencies.
c) Educational institutes.
d) Sales people making calls on the company.
e) Sales executives club.
f) Employees of customers.
g) Older persons.
h) Other industries .
i) The internet.

SELETION PROCESS—

Selection is a process to determine whether an application meets the qualifications for the
specific job &to select the applicant who is most likely to perform well in job.

A proper selection of sales persons makes the base for success of a sales organization as
it increase per capita sales & the moral of the sales organization. A sound selection
process also increases the goodwill of the firm because the salesmen represent the
company. If he makes a poor impression , the company is likely to have a poor reputation
among its customers.

SELETION PROCESS—
The selection process consists of following steps-
1. Pre-interview screening- Pre-interview screening is done for the purpose
of climinatino unqualified candidates , this pre interview can be handled

by a clerk or secretary. This pre interview screening is required as when
there are large no. of applications , it is desirable to rest out the
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prospective applications who have given information about the nature of
job , salary , responsibility etc.
2. Formal application form- Formal application serves as a record
regarding the information collected during the selection process. A formal
application is filled up after preliminary interviewer who records the
responses of applicant.
3. Selection Tests-The selection tests are important part of the selection
process. Different types of selection tests are as follows-
a) Mental ability test- Mental test measure the overall intellectual
capacity of a person &enable the person to know whether he has
mental ability to deal with every new problem. The learning
capacity, Inductive reasoning, ability to take decision can be tested.
b) Aptitude tests-
These tests are used to measure. The ability of an
application to learn new jobs or skills. these tests help to find out
whether a candidate will be appropriate for the job of salesmen or
not They focus attention on a particulars type of talent such as
learning & reasoning.
c) Achievement tests + Proficiency tests- These tests measure the
skill of knowledge which is acquired as a result of training
program & on the job experience . These lists can be helpful when
an experienced person is to be promoted to higher job or when a
person is to be transferred from one job to another.
d) Personality tests
-These tests aim in measuring those
characteristics of an individual , which are non intellectual in

nature. They assess his motivation interests, his ability to adjust
himself to the stress & his capacity for inter personal relations &
self image.
e) Interest tests-
These tests aim at finding out types of work in
which an applicant is interested. They are inventories of the likes
& dislikes of people in some occupation, hobbies etc.
f) Temperament tests- These tests help to evaluate the various
factors of temperament such as likes, dislikes, flexibility , habits
etc.
g) Attitude tests- These tests measure the attitude of applicants
towards business conditions, employment, salaries , promotions ,
labor , social & political charges govt. policies etc.
h) Situational tests-
These tests measure the applicants capability to
work in the real situation , under this cost, the capacity of the
salesmen to work in different sales areas & with different
customers is tested.
4. Interview- Interview is the most widely used selection step & helps in
judging an individual as to ability in oral communication, personal
appearance, attitude toward sales & company etc It is a meeting between
two persons sothal they can know about each other.
a) Patterned or structured interview- Here the interviewer uses a
prepared outline of questions designed to get specific answer from
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the interviewer. The interviewer may record the answer as they are
given.
b) Non directive or free interview- It is an unstructured interview.
In this type of interview, the applicant is encourage to speak about

his experiences freely. The interviewer might ask few questions &
speaks only enough to keep the interviewer speaking. Experts feel
that this technique is best for getting into individual’s personality
in depth.
c) Stress interview- In stress interview, the interviewer assumes an
unfriendly behavior towards the applicant . He asks such questions
which can be quiet embarrassing for him & asks questions rapidly,
criticizes the answer & interrupts him frequently.
d) Rating sales-
One draw back of a personal interview is the
tendency to lack objectivity a defect that can be reduced through
rating seales. sating are channeled into a limited choice of
response . experiences indicate that these results in more
comparable ratings of the same individual by different
interviewers.
5. Reference check-
This check is made by personally contacting school,
institutes, present or previous employer on the basis of certificates,
degrees, references provided by the appointments. The purpose of
reference checks to find out his character, conduct, behavior & morality.
6. Physical examinations- Most of the companies go for physical
examination & following examinations can be carried like-
Examination of physical fitness, heights , weights , stomach , waist etc.
Test of blood pressure , blood & urine tests , Neuro-psychiatric lists,
Medical treatment history etc.
7. Determining terms of service-
Terms of service are determined after the
selection process Terms of service include the matters related to salary,
commission, allowances, housing facility etc.
8. Appointment- The appointment letter contains the terms & conditions of

appointment with regard to pay , allowances , conditions of service
probationary period , the last date of joining duty etc. , duty signed by the
appointing authority.
9. Induction / orientation- Induction gives the following information to the
salesmen –about history of firm, policies & rules of firm. information
about sales department , products & services , social welfare schemes,
policies towards promotions & transfers , disciplinary measure, rights ,
duties & responsibility of a salesperson.

Q.2 Define sales training, state various methods of providing training to the
salesmen.
OR
Explain the various aspects of sales training.
OR
How will you plan and build a sales training program?
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Ans. Sales training has been recognize as one of the vital factors in the success of the
sales person. The essence of training in the belief that performance of people
can be improved through the training.
Training of the sales men is a process of selling skills development so as to
increase the ability, knowledge and experience of the salesmen to perform well
on the job.
OR
“Sales training is an organized activity involving fact finding, planning,
coaching, placing and purposive attempt to develop selling skills and to add
these skills to selected nature ability, causally acquired knowledge and
experience.”

Aim of sales training/advantages:-


1) Increasing sales.
2) Getting new accounts.
3) Factor turn round of stocks.
4) Selling a complete product line instead of just fast selling items.
5) Better merchandising and sales promotion.
6) Better product knowledge.
7) Improving sales presentation and sharpening sales skills.
8) Improving clinching skill in particular.
9) Customer education on products, their use and benefits.
10) Improving customer and dealer relations.

Successful training program consist 4 phases:-

1) Training assessment- In this phase a messenger must discuss the following
points:-
a. Training objective-The major objective of training is to improve the
productivity of salesmen. Training programs also lower live employee
turnover rates, leads to better morale, more effective communication &
better self management.
b. Who should be trained- It is the newly recruited salesmen Who needs
training, but the existing sales force also needs training as things keep on
changing. New products are introduced , buyers performance charges , so
it becomes important to train dealers , distributers & sales manager.
c. Training needs- Assessment of training needs provides the starting point
for getting training goals & designing the program. Setting the objectives
also helps to trainer & the trainee focus on the purpose of training as well
as provides the standard for measuring training effectiveness.
d. How much training is needed- the amount of training required depends
on the training objectives . for a new promotional program, only one day

training might be sufficient.
2) Training program design-
In this phase , the following questions need to be
answered-
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