c
 

 

   

Promotion is one of the marketing mix elements which involves informing and
persuading a market about product or service to buy the product.

There are five promotional tools:

=? Êdvertising
=? Persona Selling
=? Sales Promotion
=? ¦irect Marketing
=? Publicity
=? Public Relations

The core objective of all promotional tools is informing and persuading a market
about product or service to buy the product. But besides core objective which is
common among all individual tools. But individual tools do have their specific
objectives in relation to promotion. Êchievement of specific objectives of individual
promotional tools leads to the achievement of core promotional objective as stated
before.

 c 

Main promotional tools are advertising and personal selling other tools are sub tools
and supportive of main tools.

Why are advertising and personal selling viewed as main tools?

Ênswer: Because brand position is communicated to market through these two

tools. Ênd they serve the core promotional purpose on long term basis in terms of
registering brand in consumers ͛ / industrial users͛ mind and getting them associated
with the brand.

What are the other tools, viewed as sub-tools and supportive of main tools?

Ênswer: The other tools (sales promotion, direct marketing, publicity and public
relations) supplement the main tools. In terms of enhancing and accelerating their
promotional impact. They are employed on short term basis as per strategic
promotional requirement to supplement main tools.
When is advertising employed as main tool?

Ênswer: Êdvertising is employed as main tool for consumer product.

Why is advertising employed as main tool for consumer products?

Ênswer: Because of the nature of product stimulation can better be induced through
audience interest-based creative audio and visual effects.

Which can better be portrayed through advertising message (copy) / (written or

spoken message) under audio and visual effects.

Secondly individual potential consumers cannot be excessed in terms of being sold

through personal selling as they are numerous.

When is personal selling employed as main tool?

Ênswer: When product is of sensitive nature and individual prospects (prospec tive
buyers) can be approached as they are not that much numerous which cannot be
accessed.

What is meant by sensitive products?

Ênswer: In the context of promotion, sensitive products are all those products for
what a potential / prospective buyer wants to be informed and persuaded in person
so as to make buying decision. Ênd through advertising prospective buyers cannot
be persuaded to make buying decision. Êccordingly following products do fall under
sensitive category.

=? Industrial products
=? Pharmaceutical products

Ñ       

  :
The activities involved in presenting a paid, sponsor -identified, non -personal
message about an organization and / or its products, services, or ideas.

   !  

Three common purposes of product advertising are to create awareness, induce

action, and maintain continuing buying interest.

  

Inducing action as an advertising purpose refers to creating interest, conviction,

desire and influencing the consumer accordingly to pick the product off the shelf or
display rack for trial and getting the consumer to consider the company͛s brand
when next shopping for the product.

For industrial product inducing action refers to getting the buye r to inquire about the
product or grant an interview when the company͛s salesperson calls.

 "#    :

For repetitively purchased products, advertising is used to maintain buyer interest in

order to offset competitive advertising and the tendency of people to forget. This is
called remainder advertising. Maintaining the interest over a long period of time is a
great challenge to copywriters.

   :

Some of the many other reasons for the use of advertising are to attract new
dealers, stimulate dealer interest, build sales force morale, and offset seasonal sales
slump.

  c  :

Êdvertising strategies to achieve the advertising objectives are all about the
challenges involved in presenting / communicating a non-personal written spoken
promotional message in terms of ͞What to communicate͟ and ͞How to
communicate͟. Êccordingly the advertising strategies involve the following areas of
strategic decisions.

1) ? ¦   "  $   c #:

It refers to an image what a brand projects in other words an image of the brand
what a company projects in relation to competition with an intention to
differentiate its brand from competitors͛ brand under creating such an
impression in consumer mind that our brand is better than competitors͛ brand .

This image building is made through claiming qualitative strength regarding core
purpose / core benefit of the product or any of the differential features. But
generally positioning is made in relation to qualitative strengths associated with
core purpose / benefit of the product and / or price advantage.

But quality perception involves a number of dimensions depending on the nature

of product.
For example:
=? For detergent quality would be perceived in relation to cleaning
performance.

=? For home appliances quality would be perceived in relation to durability

and / or convenience.

=? For food quality would be perceived in relation to purity and /or free from
harmful ingredients.

Under market segmentation, for the some product two different group of
buyers to have different perception regarding quality.

For Example: Product is apparel

For one group of buyers,, quality perception may be all about durability and
for the other group quality perception may be all about appearance (look) in
terms of design, colour, style, etc.

Example: Product is Car.

For one group of buyers quality perception may be in relation to comfortable
/ luxury interior and for the other group of buyers quality perception may be
regarding Engine Power such as Turbo Engine.

Qualitative strength can also involve another perspective in terns if core

purpose of the product being augmented with another benefit as coupled
with the core purpose.

For example: Shampoo with conditioner.

 Positioning can also be made with respect to o ther differential features. Such
as packaging, for example: a company says for its cream ͞Now in pump
dispenser͟ this positioning is all about packaging strength as it is more
convenient packaging aspect.

Brand can also be positioned with respect to some uniqueness in product

feature which might be associated with quality perception.

For example: Tapal said (¦anedar) for its tea. This positioning in terms of
being claimed danedar is all about uniqueness associated with quality
perception.

  ? ¦       $  c #$ #c #

It is all about͙ how to present / portray the copy (copy is written or spoken
promotional message in advertising) through individual med ias, ͙keeping in view
first, the nature of media in relation to how to grasp viewers͛ listeners͛, readers͛
attention in such a strategic manner which is associated with interest of intended
audience and secondly cost limitation. Therefore, the campaign theme needs to
be developed in different manners for the individual media/ mediums such as
electronic media which includes; television, radio, etc. and print media which
includes newspapers, magazines, etc.

ü ? ¦   
c #$%    &  

The task of media strategy is to match the characteristics of individual media

with the market requirements of the product being advertised. The goal is to
select the most effective media for reaching the target audience while remaining
within the media budget. Every media plan is a compromise between the ideal
and what is practical and affordable.

 : Besides advertising through mass media another dimension of advertising

involves advertising on roadside which is called advertising exposure through
billboard.

 : Besides advertising through mass media there is another dimension
wherein advertising objective is:

To attract the attention target audience and launch stage or to offset

competition effect:
 Strategy: inducing excitement through creating hype which involves the
following as tactic:

=? ¦isparate exposure of product through placing post ers, bunting, flyers all
around and it may also involves branded vehicles moving on roadside.

c    

Sales promotion can be defined as a promotional tool which is supportive of main

tools, ͞Êdvertising͟ and ͞Personal Selling͟ in terms of supplementing, enhancing and
accelerating the impact of advertising and personal selling.

Sales promotion is aimed at the ultimate consumers, industrial users, middlemen

and company͛s own sales force.

In this connection the common sales promotion objective refers to inducing instant
stimulation being aimed at ultimate consumers, middlemen, industrial users and
company͛s sales force͙and obtaining instant outcomes as required from ultimate
consumers, industrial users, middlemen and company͛s sales force.

c       %   c  

Sales Promotional tools aimed at the consumer include coupons, price off label
offers, extra quantity, bonus packs, two for one offer, free samples.

More specifically the objectives of sales promotion and their respective strategies,
while aimed at consumer can be illustrated as under:

=? mbjective: To encourage consumers to buy in greater quantity

Strategy example: Buy 2 Get 1 Free.

=? mbjective: To get consumers to try a new͙product

Strategy Example: Free Sample as to get consumers to try a new brand of

soap or toothpaste, Proctor & Gamble or Lever Brothers may send a free
sample through the mail.

=? mbjective: To combat a competitor͛s promotional activity or to offset any

other competition effect.
 Strategy Example: Bonus Pack as Reckitt Benckiser offers a soap of Rs.27/-
free with mosquito killing spray.

 c    :

Trade sales promotion includes the following dimensions:

Sales Promotion Êimed at Middlemen in Consumer Product Selling Scenario:

Sales promotional tools (strategies) aimed at the middlemen include:

=? Trade shows and exhibitions
=? Point of purchase display.
=? Free Goods (samples)
=? Êdvertising Êllowances
=? Free units on buying certain quantity.

Specifically the objectives of sales promotion aimed at middlemen and their

respective strategy can be illustrated as under:

=? mbjective: To increase morale of middlemen and accordingly acquire their

interest in selling company͛s brand.

Strategy:
a ? Trade shows and exhibitions

=? mbjective: to acquire favorable treatment of middlemen in relation to

acquiring better shelf position and interest in selling company brand.

Strategies:
a ? Point of purchase display (racks, stands, etc.), Free Goods (product
sample), advertising specialist (it is kind of a miscellaneous category
that includes small, inexpensive items given by manufacturers or by
middlemen with the company͛s name on them. Examples include
rulers, pens, calendars, ashtrays, caps, key rings, and paperweights).

=? mbjective: to encourage middlemen to buy in greater quantity.

Strategies:
a ? Free units on buying certain quantity. For example: Buy 12 Get 1 Free.
 =? mbjective: To get middlemen make promotional efforts to promote
company͛s brand in local advertising.

Strategy:
a ? Êdvertising allowances in terms of offering certain amounts.

 : Sales promotion is also aimed at consumer and middleman simultaneously

with respect to:

=? Hype creating and distinctive brand exposure.

It refers to creating hype through some hype creating activities like fun
related branded road shows, branded concerts, etc. which develops
excitement in consumers and that excitement results in brand trial and / or
repeat sale. Ênd middleman also get attracted through such activities in
terms of their interest in the brand.

Sales Promotion Êimed at Middleman͛s Sales Force in Consumer Product Selling

Scenario:

Sales promotional tools (strategies) aimed at middleman͛s sales force include:

=? Contest for middlemen sales people

=? Training middlemen͛s sales force.

Specifically the objectives of sales promotion aimed at middlemen͛s sales force and
their respective strategies are illustrated as under:

=? To get middlemen emphasize more in selling company͛s brand

Strategy: Contest among middlemen͛s sales force.

=? To increase middlemen͛s sales force motivation and selling expertise.

Strategy: Training Middlemen͛s Sales force.

Trade Sales Promotion(sales promotion aimed at middleman inIndustrial Product

Scenario):

Trade promotion is not as important to manufacturers of industrial goods as it is to

consumer goods manufacturers, because retailers are not part of industrial
distribution channels. However, manufacturers using industrial wholesale channels
may offer stocking allowances to distributors. Êlso, they may offer PMs to distributor
salespeople and run contests for both management and salespeople.

Sales Promotion Êimed at Manufacturers / Producers ʹ own Sales Force:

mbjective: To induce / increase motivation.

Strategies: Strategies to achieve this objective refer to the following individual tools:

1) ? Incentives for the sales force such as contests and honor awards, and

2) ? Selling aids such as catalogs, samples, price lists, and presentation devices
(movie or slide projectors and flip charts). Instructional materials for sales
meetings in the form of movie and slide films also are classed as sales
promotion.

Publicity & Public Relations

Publicity and public relations are the last two major methods of promotion or in
other words these are two strategic weapons (strategies) to achieve promotion goal
in relation to image building as a general practice, publicity and public relations
activities are not handled by marketing department. Instead, they are the
responsibility of separate public relations department.

Nature of Publicity as a promotional tool / strategy:

Publicity is any promotional communication regarding an organization and / or its

products where the message is not paid for by the organization benefiting from
it.Promotional objective behind publicity.

mbjectives behind Publicity :

The promotional objectives achieved through publicity are generally in relation to

image-building as under:

1) ? mbjective: To build or maintain a favorable image for an organization and / or

brand of organization.

To achieve the above stated objective publicity (as a strategy) will involve the
following course of action (tactic). Ê company may publicize its new policies
 (credit, price discounting), its people (employee achievements, executive
promotions, employee civic activities), research and development su ccesses,
financial reports, or its progress on pollution control and what the company is
doing to improve quality of life in the community people know through mass
media such as television, newspaper radio and other mass media in terms of
oral and print report communication. In using such channel l the publicity
people might prepare a news release or even a longer feature article in that
connection. Some companies prepare special tapes or films for publicity
purpose. To build the image of brand publicity does also involve another
tactical tool in the same connection in terms of showing sports figures using a
branded product through television exposure. The cost of exposure would be
free but cost of endorsement by professional sports figures and cost of
product used, will incur. In the same connection movies can also provide
excellent exposure for brand through showing movies stars using company͛s
brands, particularly if movie becomes popular.

2) ? mbjective: To counteract an unfavorable image of organization and / or brand

to organization caused by unfavorably report in media or an unfavorable new
release from other outside organization.

To achieve the above stated objective publicity as a strategy will involve the
following course of action (tactic).

=? Press Conference can be held, chaired by company executive, who

clarifies the organization͛s and / or its brand status to regain lost image
caused by unfavorable report communicated through media or any other
unfavorable news release from other outside organization.

=? Chief executive͛s or any other executive͛s interview can also be

conducted in this regard

  &
     c #

Public relations is an organization͛s such communication effort which is intended to

influence organizations͛ various publics (publics refers to such groups of people
which have direct or indirect influence over organization business). Such as
customers, stock holders, employees, union, environmentalists, the government,
people in the local community, or some other group in society.
      !  " 
  %'c # 
 
  " :

To create good image of organization with its publics and accordingly acquire their
favorable attitude towards the organization.

To achieve above stated objective, the public relation as a strategy will involve the
following course of action (tactic).

Company public relation department can conduct a plant visit for company͛s public
and on their visit, besides formal briefing, they may also be given photographic and /
or printed handouts.

   c  :

Personal selling refers to informing and persuading a market about product or

service on person to person basis.
Personal selling is made by a group of persons which is called sales force.
Ênd management of sales force is called sale management or management of
personal selling in terms of planning, implementing end evaluating the activities of
sales force. Personal selling efforts made by sales force is not just limited to
informing and persuading a market but rather it involves a number of other field-
related efforts which are required to acquire personal selling objective, such as:

1) ? Monitoring distributors͛ performance in order to ensure product

availability and market coverage.
2) ? Locating Potential Customers.
3) ? Planning frequency of Calls, by Class of Êccoun t
4) ? Writing and processing orders.
5) ? Êrranging for Credit and Payment terms (may include collection).
6) ? Êrranging for ¦elivery and Services
7) ? Handling Complaints
8) ? Sales / market conditions reporting to head quarter.
9) ? Participating in the activities related to sales promotion such as trade
shows, exhibitions, free sampling, etc. etc.
10) ? Participating in sales meeting and training courses.
11) ? Gathering information about competitors and other market factors.

  c   !  
Personal selling objectives can also be called sales management objective or sales
efforts objectives.

The personal selling objectives in relation to contributing to marketing objective (i.e.

certain desired sales volume) involve multiple dimensions depending on the nature
of product.

In consumer product selling scenario scope of the personal selling main objectives
includes the following:

1) ? ¦esired market coverage in relation to distribution arrangement and desired

product availability under cost effective manner.

2) ? Territory improvement.

Territory improvement as a personal selling objective refers to improvement in

market share of individual territories in relation to desired sales volume through
overcoming the weakness and / or buildingʹon the strengths, as improvement in the
market share of individual territories will raise a company͛s total market share.

c  :
Strategies to achieve the first main objective as mentioned above includes the
following:

=? Market Penetration
=? Market ¦evelopment

NmTE: Ênyone or both of the above stated approaches can be employed by an

organization as per strategic requirement.

Here these two approaches would be discussed under three kinds of market scenario
which are Consumer Market, Pharmaceutical Market, Industrial Market and Service
Market.

Market Penetration under Consumer Market Scenario

It refers to ensuring product availability in further vicinity / vicinities of the same city
of the region Œ
 

 


 
 
 
  


 
 

 
 
     
  
  

  

 whether through the existing distributors who are already
working for some vicinities or separate distributors along with other arrangements
related to sales efforts as per requirement such as induction of sales person for
those newly catered vicinities.

For Example:
Karachi includes eight vicinities and there are two distributors, each of them caters
two vicinities. Now there are two strategic options for remaining four vicinities,
whether these two existing distributors are assigned those remaining four vicinities
or entirely new distributors are appointed for those vicinities, both the scenarios
would be viewed as market penetration because such m arket coverage occurs within
the city.

Market ¦evelopment Under Consumer Market Scenario

It refers to ensuring product availability in further city / cities
of the region through appointing distributor along with other arrangement related to
sales efforts as per requirement such as induction of sales persons, establishment of
sales depot etc.
For example: Sindh region includes several cities such as Karachi, Hyderabad, Sukkur,
Nawabshah, Larkana etc. Two cities of the Sindh region, Karachi and Hyderabad are
already covered with distribution arrangement and other sales related efforts. Now
if company intends to cater further city / cities of the region in terms of establishing
distribution arrangements and other sales related efforts, this scenario would be
viewed as market development.

Market Penetration Under Industrial Market Scenario:

Market penetration under industrial market scenario refers to catering further
prospective buyers within the existing target market segments (Existing marke t
segments refer to group of potential buyers already being targeted)

For Instance:
Ê company͛s product is some chemical for what two market segments like leather
processors and textile manufacturers are already being catered and now under
penetration approach, company would strive to acquire more accounts within those
existing market segments.

Market development Under Industrial Market Scenario:

Market development under industrial market scenario refers to catering further
market segments which have never been catered before.
For Instance: Company͛s product is some chemical for what existing target market
segments are textile manufacturers and leather processors and now under this
market development approach, company would cater some further potential
markets as target market segments which have never been catered before like
cosmetics manufacturers, lubricant manufacturers etc.

Market Penetration Under Pharmaceutical Market Scenario:

It refers to aiming personal selling efforts at physicians in further vicinities of the
same city of the region along with ensuring product availability through distribution
arrangement and their monitoring.

For example: Karachi includes eight vicinities and out of which, Physicians located in
four vicinities are being catered in terms of aiming personal selling efforts at them
along with establishing and monitoring distribution arrangements in those vicinities .

Market ¦evelopment Under Pharmaceutical Market Scenario.

Market development under pharmaceutical market scenario refers to aiming
personal selling efforts at the physicians in further city / cities of the region along
with establishing and monitoring distribution arrangement in those cities.

For Example:

Sindh is a region which includes several cities such as Karachi, Hyderabad,

Nawabshah, Sukkur, Larkana etc. Karachi and Hyderabad are already covered with
sales efforts, now if company intends to cater further city / cities of the sindh region
in terms of aiming personal selling at the physicians of those cities along with
establishing distribution arrangements and their monitoring this would be viewed as
market development under pharmaceutical market scenario.

Market Penetration Under Service Market Scenario:

It refers to establishing service business in terms of sales operation in further cities
of the same region.

For Example: Sindh region includes a number of cities such as Karachi, Hyderabad,
Sukkur, Nawabshah, Larkana etc. and company has been operating in two cities
Karachi and Hyderabad, now if company intends to start its business operation in
further two cities such as Sukkur and Nawabshah, this would be viewed as market
penetration under service market scenario.

Market ¦evelopment Under Service Market Scenario:

It refers to establishing service business in terms of sales operation in further region
/ regions which have not been catered before.
For example: Company has been operating in Sindh region and now if management
decides to aim sales efforts also at the Punjab region which will include several cities
such as Lahore, Gujranwala, Gujraat, Sialkot etc. This would be viewed as market
development under service market scenario.

c #:
Strategy to achieve the second main objective i.e. Territory Improvement will involve
the following scenario:

Looking at the different territories, some territories might be found at below ʹ par
performance regarding sales output, such territories are considered as weak
territories. (BelowʹPar means below the desired performance standard)

mn the other hand some territories might be found at Par or above - par
performance regarding sales out put. Such territories are considered as strong
territories.
(Êt-Par means up to the desired performance standard )
Êccordingly, on the basis of above stated scenario, ͞Territory Improvement͟ will
involve two strategic approaches as under.
=? Making weak territories strong in relation to intended market share.
=? Making strong territories stronger (more strong) in relation to intended
market share
From within, which ever strategic approach is well suited that would be employed
for intended objective in terms of desired sales volume / market share. Both
approaches can also be employed for the same objective.
Let͛s discuss the above stated approaches in terms of operational details
Strategic Êpproach # 1 in Relation to Êchieving mbjective ͞Territory Improvement͟
(Making Weak Territories Strong In Relation to Intended Market Share / ¦esired
Sales Volume)
This strategic approach refers to overcoming the factors causing below ʹ par
performance regarding sales volume.
Under this approach, the course of actions through which the above stated strategic
approach is to be implemented includes the following.

i.? Conducting territory analysis for individual weak territories to identify the
causes behind weak territory performance (in relation to desired sales
volume output) or in other words, if territory is weak͙.. why weak?

The scope of territory analysis includes the following.

U? Ênalyzing the entire marketing mix for individual weak territories
in order to identify the limitations (if any) being responsible for
 weak territory performance regarding desired sales volume
output.

U? Ênalyzing the other influencing factors which can be the causes

for weak territory performance regarding desired sales volume
output.

ii.? Taking corrective measures to overcome the factors being responsible for
weak territory performance.

Ênalyzing the Entire Marketing Mix:

(for individual weak territories)
Sometimes sales operation may not be the principal cause or factor for territory
weaknesses but rather any of the other marketing mix elements in terms of
containing technical flaws.

Illustration:

Let͛s assume that product with same quality features is being supplied to all
territories and product does not seem to be the factor behind territory weak
performance regarding sales output. Now the other elements of marketing mix such
as Pricing, ¦istribution and Promotion have to be analyzed as they might be
responsible for weak territory performance in terms of containing flaws within them.

Pricing

Pricing can be a reason behind weak territory performance regarding sales volume as
if optimal price structure is not set. (mptimal price structure refers to that price
structure which ensures right price for the ultimate consumers/ industrial users and
ensures right price for the trade also. Right price for the consumers / industrial users
refers to the price which is widely accepted by the ultimate consumers / industrial
users in relation to their purchasing power and image of the brand perceived by
them. (i.e. value perception). Ênd right price for the trade refers to that price, with
which middlemen could be offered a reasonable profit margin as required to acquire
their interest in selling company͛s brand).

In order to overcome the flaws in price structure, sales management will have to
recommend some alteration to the brand management in price structure, on the
basis of findings in terms of market feedback drawn by the salespeople
¦istribution

¦istribution can also be a reason behind weak territory performance if effective

physical distribution is not ensured. Effective physical dis tribution refers to making
product available in right amount to the right place at right time.

Illustration

Referring some consumer products selling wherein if product is not available to

middlemen on time and the reason is plant location as sometimes plant is situated
too far from territory and accordingly it takes long time to reach there, where
product is shipped.
This situation can be overcome through establishing some sales depot near the
territory from where goods can be transported within short span of time.

The second situation in relation to inferior distribution performance is that product

is not easily accessible to the buyers, as not available at every outlet, where demand
exists.

This unsatisfactory distribution performance can be over come through analyzing

distributors͛ performance as they are supposed to make products available at all
those locations where demand exists within their assigned area. Êccordingly
wherever flaws are found in their distribution activities that should be rectified
through managerial actions and decisions.

Promotion

Promotion can also be a cause for weak territory performance as sometimes the
degree of promotional efforts is not sufficient in relation to competition.
Êccordingly, promotional efforts will have to be enhanced. Sometimes the
promotional efforts are not designed in accordance with the choice / psyche of
target audience. Êccordingly, promotional efforts will have to be altered or
redesigned under proper market research. Generally advertising, sales promotion
and personal selling elements of promotional mix are analyzed to identify the flaws
in promotional efforts.

Illustration:
i. If convenience goods are concerned, the sales promotion and advertising are
likely to be the key promotional factors for weak territory performance in
relation to desired sales volume output.
ii. If shopping goods are concerned then any of the push promotional / selling
efforts in terms of such sales promotion activities like store display, trade
discount, sales contest amongst sales force of middlemen etc. can be key factor
for territory weak performance in relation to desired sales volume output.
iii. If industrial goods are concerned then personal selling is likely to be the key
promotional factor for territory weak performance in relation to desired sales
volume output.

Ênalyzing mther Influencing Factors :

There are some other influencing factors which could also be the reason behind
weak territory performance, accordingly they have to be analyzed in order to find
out the reasons behind weak territory performance as deficiencies / flaws may also
be found within them, causing poor territory performance regarding sales output, as
under.

1. ? Quality of Sales Efforts

2. ? Coordination / Communication between Headquarters / Manufacturing Plant
and Individual Territories
3. ? Competition
4. ? Relationship of Company with Êccounts

1. Quality of Sales Effort

This can also be a reason behind weak territory performance if quality of sales effort
proves to be inferior / inefficient whether being aimed at middlemen for consumer
product or at industrial users for industrial product and other activities made by
salespeople like resolving middlemen issues such as compensation claims, credit
arrangements etc, order follow-up, participation in store display, exhibition, free
sampling and other supportive efforts are also found poor in terms of inefficiency.
The inferior sales effort as stated above is caused by the following factor.
=? Inadequate Support to Sales Team from Headquarters
=? Inefficient Coordination / Communication between Headquarters /
Manufacturing Plant and Individual Territories.
=? Inadequate Support to Sales Team from Headquarters
Sometimes the reason behind poor territory performance is inadequate support
from headquarters, which results in de-motivation of sales persons and causes poor
selling performance which eventually leads to poor territory performance in relation
to desired sales output. Inadequate support from headquarters may be experienced
in terms of the following scenario.

=? Inadequate Training Support

=? Inadequate Financial Satisfaction

Inadequate Training Support

It may be experienced in terms of the followings:

a ? Sometimes Insufficient Technical Backup can be the cause for weak
territory performance in relation to desired sales volume output.
Êssuming an industrial selling situation which requires technical
product knowledge and technical product application knowle dge.
Now if sales persons are otherwise qualified but they are not well-
versed with such technical aspects as they are not provided with sales
training composed of product technical know how as required to sell
technical products effectively. Consequently this insufficient technical
knowledge about product and / or its application would result in poor
selling and eventually it would lead to weak territory performance.
a ? Sometimes sales reps are not aware of the changes regarding policies
and procedures taking place at the headquarters, even though they
need to keep abreast of these changes through training sessions.
a ? Sometimes sales reps fall less competitive because they are not aware
of latest selling techniques in accordance with the selling challenges,
but rather they are just provided with conventional training,
comprising general selling topics.
This factor behind weak territory performance in relation to sales volume output can
be overcome through arranging additional and / or comprehensive training session
in accordance with the scope of requirement, likely to be identified by the concerned
territory sales manager.

Inadequate Financial Satisfaction

In relation to the theory of motivation, salespeople have to be compensated in
accordance with the nature of sales task assigned to them in relation to job
description and challenges likely to be faced, so that they can be motivated to work
as per requirement in terms of being result oriented. Generally, inadequate financial
satisfactions are experienced in terms of any of the following scenario.
 (a)? Inadequate Target Based Incentives
(b) ? Inadequate Income Level Earned mver Certain Time Period.
(c)? Inadequate Fringe Benefits

(a) Inadequate Target Based Incentives

Sometimes incentives, offered as on winning sales contest or achieving sales target

are not set in accordance with the motivation required for accomplishing a
challenging task that might be in terms of facing strong competitors or selling a new
product. Since that insufficient incentive does not induce motiv ation up to the
required level, therefore fighting spirit as required to achieve targets may not be
found within salespersons and eventually it leads to weak territory performance.

(b) Inadequate Income Level

In relation to income earned over certain time period on regular basis, salespersons
have to be compensated in accordance with their professional worth (composed of
qualification and track-record) and nature of selling jobs in relation to selling
challenges involved in their jobs so that their financial satisfaction in this area of
financial compensation could be ensured. Since this satisfaction is coupled with their
motivation, therefore following this approach management can draw salespersons͛
efficiency at optimal level; otherwise this will result in uncomfortable feeling and less
motivation, which would eventually result in less productivity of sales persons and
poor territory performance.

(c) Inadequate Fringe Benefits.

Fringe benefits like paid leave, medical facilities, leave fare assistance; transport
facility, gratuity and pension are also associated with financial satisfaction. Therefore
the outcome/ drawback of inadequate fringe benefits would be same as that of
direct financial compensation.

2. ? Coordination / Communication betwee n Headquarters / Manufacturing Plant

and Individual Territories.

By far, the most dominant concern of the sales force is communication with the
main plant. Knowing the status of order is a major concern. Sometimes sales
representatives are not adequately informed when delivery schedules are changed.
Because of such inefficient communication sales reps may get into awkward position
in relation to their delivery commitments with the middlemen, otherwise they would
have generated sales in accordance with the delivery schedules. Ênd this would
effect their motivation and may lead to poor territory sales performance. Similarly
sometimes when sales target for sales persons is set against primary sales (primary
sales refers to the stock what distributors buy from company) and as on achieving
targets they are rewarded in terms of target based incentives and if because of
inefficient communication sales reps are not informed about their primary sales
status on up to date basis, this situation will result in th eir de-motivation as they
could not make necessary adjustments in their action plans so as to achieve the
target and win the target incentives. It is therefore concluded that inefficient
communication eventually results in lost sale and weak territory perf ormance.

This can be overcome by developing information system network, working on up to

date basis, being connected with individual territories.

3. Competition:

Strong Competition in the territory can also be the reason behind weak territory
performance in terms of competitor͛s commanding position. This commanding
position (strong competition) may be due to one or more of the following conditions.
i.? It was the (Pioneer) company to serve the territory, enabling it to take an
early leader ship position w hich it never lost.
ii.? It is able to provide superior customer service because it has a plant or
distribution center in or near the territory.
iii. ? Its field sales force and sales supervisor have got long and strong track
record in terms of relations with the ac counts.
iv. ? It is willing and able to spend in terms of resources whatever is needed to
be a market leader.

To overcome the competitor͛s dominance, management must device a coordinated

strategy which may include such things in the following manner: -

Special consumer prices and other incentives for consumers, incentives for
middlemen (¦istributor / Wholesaler / Retailer), increased local advertising,
induction of highly competent salespersons. Ênd the field sales force efforts may be
supplemented by executives calling on accounts, inviting key accounts personnel to
visit plants and company headquarter, and entertaining their advises for product
development and marketing plan.
4. Relationship of Company with Êccounts:
Poor relationship of company with accounts whether trade(middlemen) or industrial
users can be the cause for weak territory performance in relation to desired sales
volume output and because of this poor relationship a few large accounts (may be
middlemen or institutions) may buy little or n othing. This poor relationship develops
because of previous unsatisfactory / bad experiences of the accounts in dealing with
the company. Ênd consequently because of this poor relationship, selling efforts
made by sales team would not prove to be fruitful

Example:Ê consumer product company has not been prompt in actions in terms of
resolving middlemen issues such as compensation claims for damaged or expired
products.

Example:Ên industrial product company did not honor contractual product warranty
and accounts were not compensated.

Now such bad/unsatisfactory experiences of middlemen or institutional accounts

with company will eventually result in poor relationship between accou nts and
company.

To overcome this factor of poor account relationship of company with accounts and
convert into good business relation with the accounts, sales management should
workout a special strategy to reactive the accounts by means of resolving past
grievances, accompanied by assurance of prompt treatment in the future. But if
strategy does not work, account or territory change should be made, so that sales
persons͛ sales efforts can be targeted on potential productive areas.

Êpproach # 2 in relation to Êchieving the same objective ͞Territory Improvement͟

(Making Strong Territory Stronger In Relation to Intended Market Share / ¦esired

Sales Volume)

This strategic approach involves the following course of actions.

1. ? Identifying the reasons in terms of strengths, causing strong territory
performance in relation to sales output. This would be done through
analyzing marketing mix elements and other influencing factors (as
discussed before under the strategy ͞making weak territory strong͟) so that
strengths within them could be identified. Êfter identifying the factors
(strengths) causing strong territory performance, company would capitalize
in terms of emphasizing on those strength in order to acquire further sales
growth.
NmTE: Generally the reasons behind strong position of a territory are opposite to
the reasons for weak territory performance as discussed earlier.

2. ? Identifying the overlooked sale opportunities and availing those

opportunities in order to acquire further sales growth.

Illustration:

Sometimes despite strong position in relation to sales volume output there are
rooms for further improvement in terms of un availed / overlooked opportunities.
Therefore management looks around to identify those rooms so that those
opportunities could be avail for further growth in relation to converting strong
territory into stronger.

Example:In some territory which is above par in relation to sales output, sales team
has not been emphasizing on outskirts (suburbs) to ensure product avai lability there,
through distribution arrangement, though potential exists. Therefore if such
overlooked and unserved areas are also catered, that would result in further sales
growth.