4. •The set of marketing activities
undertaken to boost sales of the product
or service
•Process of persuading a potential
customer to buy the product.
5. • Sales promotion tools are used
by organizations, including
a. Manufacturers
b. Distributors
c. Retailers
d. Not-for- profit institutions
• Targeted towards final buyers
7. The main aim of any business is to earn maximum profit
and this is possible only through maximum sales The
maximum sales can be achieved by using various
techniques of sales promotion.
Sales promotion includes those marketing activities, other
than personal selling advertising and publicity, that
stimulate consumer purchasing and dealer effectiveness
such as window display. shows and expositions,
demonstrations etc.
8. 1. To introduce new products.
2. To attract new customers.
3. To maintain old customers.
4. To improve public image of the firm.
5. To popularize a brand name of the product.
6. To assist salesmen and the dealers.
7. To induce customers to purchase more items.
10. Manypharmaceutical firms sendtheir medical representatives tothe
physicians for detailing and distribution offreesamples of their
manufacturedgoods.
Thetechnique is a veryuseful way ofintroducing new products. However, it is a
veryexpensive method and is usedonly by big organizations.
11. Trading stamps are issued to customers through the retailers in
proportion to the amount of purchase. The customer on collecting the
stamps on his purchases.
Once he has collected stunt of an adequate amount, he obtains a free
product in exchange ofestamps. This technique induces customers to
buy products from the retailers who offer such stamps.
12. Coupon is a certificate that entitles itsholder tospecified saving on the
purchase ofa specified product.
A firmma distributethe coupons throughmail,newspapers,magazines or
retailersTheholdersofcoupons can buytheproduct at a discount from the
retailers.
The firmreimbursesthe retailersforthe valueofcoupons collected byhim
from hiscustomers. The retailersgenerallydonotlike this scheme because it
createsfinancial andaccounting problemsfor them
13. In this technique the firm offers a certain quantity of the product free of cost on the
purchase of a specified quantity of the product. The premium offer can be of three
types:
i) With pack premium : The free product is given along with product purchased by the
customer. For example, one stainless steel teaspoon is inserted as free gift inside the
240 ml bottles of cough syrup
(ii) A re-usable container : The product is packed in a container that has utility for the
customer after it is consumed. For example, an Ayurvedic Baidyanath chyawanprash is
available in attractive container which can be re-used in the kitchen.
iii) Free-in-the mail premium : A free gift is given to the customer on producing a
proof of purchase i.e. cash memo or wrapper of the product.
14.
15. The contest may be held for the customers,
salesmen and dealers. They are required to
write a slogan or complete sentence about
the utility of the product. Attractive prizes
are given for the best entries
16.
17. Fairs and exhibitions are organized to display and popularize products of
the firm. For example, in various medical and pharmaceutical conferences,
seminars, a scientific congress, the pharmaceutical firms and their allied
industries participate in the exhibitions organized by their organizing
committee. On such occasions also distributes free literature to introduce
itself and its products.
18.
19.
20. Sales are the life blood of business. The ultimate objective of all
production is sales. Without sales it is difficult for a business to survive
because sales are the major source of revenue for a business.
In olden salesmanship was considered a very important method
for getting orders by fair or foul means for factory produced items,
without having any consideration for the satisfaction of the customers.
But nowadays is concept has changed.
Salesmanship is the art of convincing and persuading the
would-be customers to buy goods or services which will give them
satisfaction. A great emphasis is laid on winning the confidence of
buyers. It will give the satisfaction to the customers. It will win a
permanent goodwill for the seller.
21. Personal selling or salesmanship is the oldest
and most effective technique of selling. It helps in
understanding the needs, motives and behavior of
the people.
It is also useful in knowing the habits, tastes
and attitudes of customers. Such information is
useful to manufacturers in designing better
products and also improving the existing ones.
22. Advantages
1. It helps in locating prospective buyers.
2. It helps in the creation of a demand for new products,
3. It provides feedback about the need. attitudes and behavior
of consumers.
4. It helps to remove the objections and doubts of the
consumers.
5. It helps in demonstrating the product in a very effective way.
6. It can develop durable relationship with consumers.
7. The salesman acts as a consultant to the consumers.
8. Salesmanship gets immediate buying action,
23. 1. Pre-sale preparation
2. Prospecting
3. Approaching
4. Presentation
5. Dealing with objections
6. Closing the sale
7. Follow up
24. 1. Pre-sale preparation
The selection, training and motivation, sales person is
the first step in personal selling. The salesman must b a
thorough knowledge of the products, customers,
competitors" produce and techniques of selling.
25.
26.
27. 2.Prospecting
The salesman must locate the potential buyers
and identify their needs. They should examine the
records of past and present customers to find out the
nature and attitudes of potential buyers.
28. 3. Approaching
The salesman should introduce himself, the product and the
manufacturer to the potential buyer. He should be polite an
courteous while approaching the customers. A salesman at the
counter should pleasantly greet the customer and make him feel
at home. In case he is busy with some other customer, he should
assure the customer that he would attend to him presently.
29. 4. Presentation
The object of presentation is to convince the customer that he
needs this type of product or service and this particular product
or service will in fact fulfill his needs. The salesman should
describe the salient features and uses of the product in brief and
not its technical details such as description about drug
formulation, its chemical composition, its pharmacological
actions and side effects etc.
The selling points and advice should be given without any
hesitation. However, arguments should be avoided at all costs.
To win an argument is to lose the customer and to lose the
argument is to lose the sale, The success of a salesperson
depends upon the degree to which he/she is able to match
his/her presentation with the attitude of the consumer.
30.
31. 5. Dealing with objections
Certain objections may be raised by the
customer after presentation which should be
welcomed. objections which are mostly regarding
the price, quality and design are helpful in
discovering the doubts of the customer.
The salesman should Those not lose
patience if a customer asks for many questions
and takes time in reaching a decision. The main
aim of the salesman should be to remove
customer's objections in one way or the other, so
that the customer satisfied with the product.
32.
33. 6. Closing the sale
Once the customer has made up his mind 10 buy the
product, the salesman should close the sale in a cordial
manner The customer should be made to feel that he has
made the right choice. It is difficult to close the sale if the
customer has not yet come to a decision. However, under no
circumstances, the customer should be pressurized to get in
for a particular item. The salesman should thank the
customer at the times of delivery of goods and all social
courtesy should be extended to him. He should assure the
customer of still better service in future.
34.
35. Further 'follow up' is not practicable in case of
retail pharmacy as customers do not visit the pharmacy
as frequently as they do in other shops. But
representatives of suppliers generally follow up for stock
"Sold in' to be 'Sold out by effective salesmanship
36.
37. A person who is engaged in selling goods to the customers
is known as a "salesman“. It is generally said that salesman are
born and not made. However, it is not true these days, because any
person who wants to adopt a sales profession gets intensive
coaching and training. The success of a firm mainly depends on the
performance of their sales force. Therefore, it is essential to
engage well qualified trained, energetic and young persons as the
company's sales force.
Qualities of a Salesman
1. Personal qualities
2. Mental qualities
3. Social qualities
4. Vocational skills
38. A good salesman must have an attractive personality.
He should have a clear voice and his tone of speaking should be
natural so as to impress the persons dealing with him.
He must possess good health and sound physique. A salesman's job
involves a great physical strain because of its touring nature. So only a
person with a good health can work effectively.
He should also be well dressed because it adds to his charm. A
pleasing and charming personality always creates a good impression
on buyers.
39. 1. A good salesman should possess a sound memory,
presence of mind, imagination, foresightedness, sound
judgment and initiative.
2. He should be intelligent enough to understand the nature
and requirements of potential buyers
3. He must have the imagination to look at things from the
view–point of the customer. A salesman can win regular and
permanent customers only through good mental qualities.
40. 1. A good salesman must have a liking for people and the ability to mix
with them.
2. He must not be shy and of reserved nature. He should be sincere,
dependable, cooperative and honest.
4. A salesman has to deal with different types of customers. There fore
he should have patience to listen to his customers and remove their
objections.
5. He should always be polite and courteous while dealing with his
customers. He must help the customers in selecting the right type of
goods. Courtesy costs nothing but wins favor and permanent customers.
41. 1 A good salesman must have specialized knowledge of
selling techniques
2. Salesmanship is a highly skilled vocation. It requires
certain training and aptitude to have a thorough knowledge
of the product, customers and competitive products
already available in the market. Such knowledge is
essential to handle objections of the customers and also
for convincing them to buy the products. A person cannot
be a good salesman unless he has the required ambition
and enthusiasm to become a successful salesman.
42. Advertising is an art, used to familiarise
public with the product by informing of its
description, uses its superiority over other
brands, sources of its availability and price etc.
Advertising is not merely propaganda but is a
paid form of communication. The advertiser
has to pay for the Space or time used to
communicate the message to his customers.
43. 1.To create a demand for a new product by explaining its utility
2.To increase its sales by attracting new customers.
3.To maintain the existing demand by fighting competition .
4. To assist the salesmen in their selling efforts.
5. To warn the public against imitation of the products of the
firm.
6. To enhance goodwill of the firm.
44. 1. It helps in the introduction of new products in the market.
2. It promotes the sale of goods and services by persuading the people to
buy them.
3. It enables a firm to face competition in the market for its survival.
4. It helps in creating a demand and hence a regular production.
5. It enables a firm to improve its reputation by highlighting its
achievements to the public.
6. It provides information and also educates the consumers to buy better
quality goods at lower prices.
45. 7. It leads to improvement in the standard by living of common masses by
stimulating their desires for better things.
8. It generates employment for artists and other persons in the line.
9. It provides revenue to newspapers, magazines, Doordarshan and radio.
10. It leads to increase in production, which in turn reduces the overhead
expenses. Hence it helps in bringing down the selling price of the goods.
II. It helps in maintaining uniformity and stability of prices.
12. It enables the manufacturer to expand his market.
46. 1. It multiplies the needs of the people by inducing them to buy things
which they do not really need or cannot afford to buy.
2. It does not necessarily increase the demand and sale of the product.
It simply shifts demand from one seller to another.
3. It involves a huge wasteful expenditure because the majority of
advertisements either escape the attention of the people or are ignored
by them
4. It increases the cost of production.
5. Many a time, the facts are misrepresented in the advertisement.
47. 1. Heading : The heading or caption is used to attract the attention of the
people. It may be a word, a phrase or even a question about product or
service being advertised. It should not be very long.
2. Theme : Theme gives the basic idea about the product highlights its
distinctive advantage. It conveys an image of the product being advertised.
For example, D-cold tablet contains the theme of effective against cough
and symptoms of cold. Moov ointment contain the theme of effective
against backache.
3. Picture : Generally an advertising copy contain a photo of the product
being advertised. Photo of a product is often combined with photo of the
model/star possessing or using the product. It enables the customers to
recognize or identify the product.
48. 4. Arguments: Nowadays, arguments in favour of the advertised
products are given in the advertisement. The purpose of giving
the argument is to convince the customers about the utility of the
product. For example, the advertising copy for Anacin Tablets
contains argument it is microfined'. (Aspirin, caffeine)
5. Closing part : The closing part of an advertising copy is very
often repeats in brief the contents of the advertisement. In some
cases
the name and address of the drug store where the product is
available as given in this part.
49. The means used to transmit the message from the advertiser to the
public is known as the advertising media. The following are some of
media through which advertising is done:
1. Press advertisement: For example newspapers and magazines.
2 Literature advertisement: For example letters, circulars, .catalogues
and leaflets.
3. External advertisement : For example posters on walls and electric
display.
4. Miscellaneous advertisement: For example T.V., radio, win display,
cinema slides, video-cassettes etc.
50. Regarding advertising of pharmaceutical products. WHO
resolved as below-
“The advertisement of pharmaceutical products should be
truthful. There should not be any wrong statement regarding
its contents and their percentage. It should provide full
details regarding the action and uses proprietary name as
well as the generic name, dosage form, mode of
administration, side effects, treatment of toxic effects,
precautions and contra-indications. The above statements
should be truthful, scientifically correct and proved."
51. The purpose of advertising in the ethical pharmaceutical
market is the same as that for any other product but there are many
restrictions on
A customer (patient) cannot use a medicine without proper
prescription of a physician. The majority of pharmaceutical products
are ethical products and their direct advertisement is prohibited
according to the Drugs and Magic Remedies (Objectionable
Advertisement) Act. However, general/home remedies products,
such as paint balm, inhalers. iodex, antiseptic creams and other
products which do not require a prescription for their purchase can
be advertised by any of the direct methods of advertisement.
Advertisement and Pharmaceutical
Industry
52. 1. Direct mailing
2. Newspapers, professional magazines and journals
3. Television, radio and other audio visual media
4. Personal contact or detailing
5. Outdoor advertisement
6. Miscellaneous methods
53. In this method a mailing list of Registered
Medical Practitioners, chemists and druggists is
prepared. Letters, leaflets, folders and catalogues are
sent to them regularly through mail to inform them of
the details of the products manufactured by the firm.
Mail advertising has a personal appeal because
it is addressed to a particular person. It also
maintains secrecy in advertising. The main drawback of
this technique of advertising is that it has a limited
coverage.
54. Television is the latest and fast growing medium of advertising. It
is a very effective medium because it appeals to both the eye and
the ear.
The product can he demonstrated and explained on the television.
However, it is a very costly method of advertising.
Radio advertising is becoming more popular these days and the
advertisements are generally transmitted through commercial
services of All India Radio.
Radio advertisements carry an effective appeal as they reach out
to all sections of society. People can listen to them even when
they are busy with other activities. The big pharmaceutical
companies generally sponsor entertaining programmes on TV. and
radio to popularize themselves and their products.
55. It is a process of sales promotion and advertisement by personal contacts. The
pharmaceutical manufacturers engage persons (sales representative and
medical representatives) for making personal contacts with seller or prescribers
and influence them in favour of their products.
This method of advertisement is very costly. However, it is preferred by the
pharmaceutical manufacturing companies for the following reasons:-
1. It provides an opportunity to inform the physicians and retailers about new products of
the firm.
2. It also helps to refresh the memory of physicians regarding the old products of the firm.
3. It helps to clear any doubts a physician may have regarding a particular product of the
company.
4. It helps to have a feedback from physicians regarding the products of the firm.
5. It provides the company with an opportunity to demonstrate and explain in detail its
products
56. This type of advertisement is becoming very popular nowadays. Outdoor
advertisement means the exhibition of an advertisement at street corners,
railway stations, bus stands, on moving vehicles, etc. Outdoor advertising is
carried out in a number of ways to attract the attention of the passers-by.
1. Sky-writing : It is the modern method of advertising. Balloons printed with
message and illustrative pictures are flown in the sky. In advance countries,
aeroplanes are also used to display the illuminated banners containing the
message in open sky during late evening.
2. Posters or hoardings : Posters are pasted or otherwise exposed to view on
walls, road sides, stations etc. The message may be printed on paper or written
on metal street corners, bus terminus, railway station. The message should be
brief so that it can be read within a few minutes.
3. Sandwich men : They carry posters containing the message to be advertised
and move in the different localities of the city. They are dressed in fancy attire
and carry on their persons the posters. They shout slogans or beat drums to
attract the attention of the public.
57. 4. Transit advertising : The advertisement is done by travelling displays
and car cards. Travelling displays are those advertisements, which are
displayed outside the moving vehicles, The message printed on them are
generally read by passengers while boarding the vehicles or while getting
down from them. Car cards are posters, which are displayed inside railway
carriage, buses, taxis, trams and other vehicles,
5. Electric signs and neon signs : These signs are generally installed on
rooftop or at busy street corners or crossings in order to draw the
attention of the public. These are visible only in the night. The lights of
various colours and shades are used to attract the attention of passers-by.
This method is very costly.
58. Many pharmaceutical firms offer gift items
to the physicians and retailers to pass on to
selective customers. These items may be diaries,
ball pens, pen holders, desk trays, key chains.
paper weights and calendars. These articles are of
daily use and there fore they continuously remind
their users of the firm and its products. Generally
the name and address of the advertiser is printed
or inscribed on those items.
59. The text or body of an advertisement is known as an
advertising copy. It contains headline, message, advertiser's
name and address, photographs etc. The advertising copy
should be carefully drafted so as lo include the following
essential features
1. It should be made attractive by using pictures, headlines, attractive
boarders etc. so as to make people read, see or listen to it.
2. It must contain solid arguments and proof to convince the
consumers about the superior quality of the product. For example,
Anacin tablet relieves pain faster as it is microfined.
3. It should educate the people about the use of the product and its
benefits. For example, in the advertisement of baby milk powder, the
instructions for preparing milk are required to be given.
60. 4. It should give useful suggestions to the public. For
example, the advertisement of Vicks 500 tablet suggests its
use for cold and Cough.
5. It should create a permanent impression on the minds of
people. Repeated use of a brand name or trade mark is very
helpful.6.It should create the need for the product in the
minds of people It should appeal to the various instincts of
the people.
7. It should induce people to buy the advertised product.
61.
62. This is one of the medium of advertisement and sales
promotion. The goods are exhibited in artistically laid-out windows in front
of the shops or at important busy centers like railway stations, bus stops. Big
business firms set up large showrooms to display their products. The retail
chemists exhibit their products in the show windows of their shops
The main aim of window display is to attract customers and
thus to promote sales. It creates a good impression about the retail pharmacy.
63. 1.It should reflect the character of pharmacy. For this purpose the insignia of
pharmacy (green cross should be fixed.
2. It should display seasonal items.
3. The window display should be well-lit during night.
4 It should show the price of the item.
5. The items displayed in the window should be changed frequently to give
freshness and newness to the display.
6 .It should include certain moving objects if it is compatible with the display.
7. There should be decorative background of the display which can made by using
coloured wallpapers, thermocol, flowers of good quality, satin cloth etc.
64. The colour plays an important role in window display. It helps in
arresting the attention of passers by and creates a pleasing impression.
The colours have attention value in the following order:
Red > Orange > Yellow > Green > Blue
Dark and light shades of the same colour can attract the
attention of large number of people. It is better to use a deep colour in
contrast with 0r in harmony with other colours.
65. Table 6:1 indicates both contrasting and harmonising colour
combinations with primary colours which make for impressive window
display.
66. Brilliant lighting in window display attracts people. The
reflectors concealed at the top and front of the merchandise should
be used. Colored lighting of the entire window is not effective for
drug stores. only the non ethical products should be displayed in
show windows.
Advantages of Window Display
1. It is a good method of advertisement.
2. It makes a drug store more decorative and attractive.
3. It attracts the customers or passers-by.
4. Window display acts as a silent salesman for promoting sales.
5. It creates good impression on the customer when he enters the
drug store.
67. Marketing means the performance of business activities that
direct the flow of goods and services from producer to
consumer. It consist of activities which involve transfer in
ownership and relates to their physical distribution. The modern
concept of marketing is consumer oriented. Production under
the modern setup is carried out in anticipation of consumer
demand. But the success of an industrial unit, depends on the
fact whether the producer is able to grasp the prevailing
condition of the product market and thus forecast its demand.
Nowadays it is not possible to run a business successfully
simply by guessing the demand of the product in the market.
There have to be systematic and scientific attempts to find out
the capacity of the market to absorb a particular type of product.
Such attempts to forecast the future of the market in regard to a
product or service are collectively called “Market Research”
68. Market research is defined as
systematic objective and exhaustive research
and study of the facts relevant to problem in
the field of marketing. Market research is
different from marketing research.
Marketing research deals with all the points
concerning various functions of the market.
Market research, however, deals with the facts
and problems relating to transfer and sale of
particular products and services from producer
to consumer
69. Marketing research involves the collection and analysis of data or
information bearing on the different aspects of the marketing
effort of a firm.
There are two sources from which the required information of
market trends can be had:
1. Internal sources 2. External sources.
1. Internal sources : The internal sources, such as, statistics of
sales turn over, advertising expenditure, transport cost etc. can be
analyzed to get the desired information regarding the market
trend.
2. External sources : There are two external sources from which
the required information can be collected:
(a) Primary sources (b) Secondary sources.
70. The survey techniques are used to
collect information from the primary
sources.
The primary sources of market
information are:
(1) Salesmen(2) Dealers(3)Consumers
71. (1) Salesmen : If a firm employs salesmen to conduct and promote the sale
of its products, they can be asked to provide an assessment of the
consumers and dealers with respect to the firm's product. They will provide
first hand knowledge of the market conditions and distribution system
without any additional expense. However, the salesmen are not trained for
market research and therefore their reports may not be unbiased and
accurate.
2) Dealers: The dealers may be contacted to provide information regarding
the percentage of the sales of the firm's product to the total sale of that
kind of product of other firms over a certain period. They can also provide
useful feedback about the consumer's reaction to the firm's product.
However this source may not always provide reliable information because
the retailers do not have well- organised system of record-keeping or
interest in the affairs of the firm.
3) Consumers: The opinion and attitudes of the consumers is the right
source for getting accurate information regarding the quality, price,
packaging, availability of the firm's product. It needs a field survey. Such
research is also called “consumer research”.
72. There are certain agencies which gather the information
after doing the proper survey of the market and present
the data in a printed form. The main sources of secondary
data for market research are:
(i) Trade press
(ii) Trade association
(iii) Published surveys
(iv) Government and international publication
73. 1) Trade press : This includes trade journals, economic and
financial periodicals, annual reports published by some
business houses and banking companies etc. The data given in
them provides useful information regarding latest trend of the
market in specific trade.
2) Trade associations : Many trade associations conduct
independent market research and collect useful data pertaining
to different trades and markets. A researcher may benefit by
going through this source of information
74. 3) Published surveys: There are many independent research
organization which publish data contained in reports of the
market survey for specific product from time to time. These
reports can be consulted in libraries or procured direct from
the source.
4) Government and international publications: The published
periodical reports, journals and bulletins issued by Planning
Commission and various ministries generally contain a lot of
useful information for the researcher. Similarly international
publications issued by UN agencies and IMF and the world
Bank etc, can prove useful particularly in research in
international marketing.
75. In order to get information relating to the
marketing effort of the firm from the primary
sources stated above, independent surveys are also
conducted by business firms. A survey may be
described as an enquiry to collect information from
a number of respondents. It is difficult to, conduct a
survey covering all the concerned persons in a field.
So a sample survey is made covering a certain
number of informants bi picking some out of the
total lot at random.
76. 1. Determination of size and characteristics of the market for the
product
2. Sales forecasting
3. A study of business trends
4. Studies of competitive products
5. Short range forecasting
6. Long range forecasting
7. Market share analysis
8. New product development
9. Pricing studies
10. Measurements of market potential
77. 1. Personal interview method.
2. Telephone interview method.
3. Postal survey method.
4. Panel method.
78. It is quite costly but at
the same it is the most
accurate method of
survey. It is a direct
form of investigation in
which skilled
interviewers collect
information from
selected individuals.
A personal interview
can be conducted in
different ways.
Questions are asked
and answers are noted.
A formal questionnaire
is usually used for the
interview. Generally,
informants are
reviewed in their
homes.
79. In this method, contact is
established with the informants
on telephone and informants
are asked a set of questions
relevant to the study.
The method is useful because:
The interviewers give their
frank opinions. It saves time
and money spent in travelling,
in A large number of persons
can be contacted in a day .
However, the method has the
following disadvantages: The
method can be used only for
telephone subscribers
i) Technical faults in telephone
lines.
A long discussion cannot be
done on telephone
80. In this method, the respondents are
approached through the medium of postal
service. Letters are sent to a group of
individuals selected at random along with a
questionnaire to be completed and returned.
Two or three follow-up letters may be sent
after waiting for sometime. Often a reply-
paid envelope is also sent with the
questionnaire to get a quick response.
81. In this method, a consumer panel is
selected for getting information on the
product and also different aspects of the
firm’s marketing strategy. A consumer
panel may be a group of persons families.
The panel may be interviewed periodically
regarding facts relevant to the survey and
necessary conclusions there can be drawn
from the observations made by the panel.
82. 1. It supplies information regarding the consumer's
response to a particular product introduced by the
organization in the market.
2. It helps to introduce new products in the market after a
proper Survey of the market.
3. It helps the manufacturer to find out other similar
products available in the market.
4. It gives an idea about future trends regarding the
particular product.
5. It helps in finalizing various plans to boost sales.
6. It helps in the discovery of potential market.
83. 7. It gives an indication about the latest government
policies concerning a particular business.
8. It helps in earning higher profits after adjusting the
price structure of the product.
9. It indicates whether the product is in constant demand
throughout the year so as to adjust its production
accordingly.
10. It reveals defects and thus makes a corrective action
possible on the part of the manufacturer.
11. It helps to discover reasons for resistance on the part
of the consumers.