- 1. BEHAVIOURAL EQUATION THEORY
- J A HOWARD FORMULATED THE THEORY
- FOUR ESSENTIAL ELEMENTS OF THE LEARNING PROCESS INCLUDED IN
STIMULUS-RESPONSE MODEL ARE
- DRIVES: STRONG INTERNAL STIMULI THAT IMPELS THE BUYER TO
RESPOND. THERE ARE TWO KINDS
- INNATE DRIVE: STEMS FROM PHYSIOLOGICAL NEEDS
- LEARNED DRIVES: SUCH AS STRIVING FOR STATUS OR SOCIAL APPROVAL,
ARE ACQUIRED WHEN PAIRED WITH SATISFYING OF INNATE DRIVES
- 2.CUES: WEAK STIMULI THAT DETERMINE WHEN THE BUYER WILL
RESPOND
- TRIGGERING CUES: ACTIVATE THE DECISION PROCESS FOR ANY GIVEN
PURCHASE
- NON-TRIGGERING CUES INFLUENCE THE DECISION PROCESS BUT DO NOT
ACTIVATE IT. TWO KINDS
2. CONTD
- PRODUCT CUES: EXTERNAL STIMULI RECEIVED FROM THE PRODUCT
DIRECTLY. (PACKAGE, WEIGHT, PRICE)
- INFORMATIONAL CUES: EXTERNAL STIMULI THAT PROVIDE INFORMATION
ABOUT THE PRODUCT. MAY COME FROM ADVERTISING, PERSONAL SELLING
ETC.
- SPECIFIC PRODUCT AND INFORMATION CUES MAY ALSO ACT AS
TRIGGERING CUES
- 3.RESPONSE: WHAT BUYER DOES
- 4.REINFORCEMENT: ANY EVENT THAT STRENGTHENS THE BUYERS TENDENCY
TO MAKE PARTICULAR RESPONSE
- HOWARD INCORPORATES THESE FOUR ELEMENTS INTO AN EQUATION:
- B= RESPONSE (PURCHASING THE BRAND/PATRONISING THE
SUPPLIER)
- P= PREDISPOSITION (INWARD RESPONSE TENDENCY)
- D= PRESENT DRIVE LEVEL (AMOUNT OF MOTIVATION)
- K= INCENTIVE POTENTIAL (VALUE OF PRODUCT OR ITS POTENTIAL
SATISFACTION TO THE BUYER)
3. CONTD
- THE RELATION AMONG THE VARIABLE IS MULTIPLICATIVE. THUS, IF ANY
INDEPENDENT VARIABLE HAS ZERO VALUE, B WILL ALSO BE ZERO AND THERE
IS NO RESPONSE.
- BUYER-SELLERS DYAD AND REINFORCEMENT
- BY PROVIDING THE PRODUCT TO THE BUYER
- BY GIVING SOCIAL APPROVAL
- SALESPERSONS INFLUENCE PROCESS
- THE PROCESS IS EXPLAINABLE IN TERMS OF EQUATION
- SALESPERSON INFLUENCES P DIRECTLY
- SALES PERSON ALSO INFLUENCES D, WHICH ULTIMATELY AFFECTS K
- FINALLY THE SALES PERSON VARY THE INTENSITY OF HIS EFFORTS, SO
MAKING DIFERNCE IN V
- SALESPERSONS ROLE IN REDUCING BUYERS DISSONANCE:FOUR TYPES OF
CASES INVOLVING THE SALESPERSONS ROLE.
- AN ESTABLISHED PRODUCT: AN ONGOING SALESPERSONS-CLIENT
RELATIONSHIP
- AN ESTABLISHED PRODUCT: A NEW SALESPERSON-CLIENT
RELATIONSHIP
- A NEW PRODUCT: AN ONGOING SALESPERSON-CLIENT RELATIONSHIP
- A NEW PRODUCT: A NEW SALES PERSON-CLIENT RELATIONSHIP
- HOW TO REDUCE BUYERS DISSONANCE
- TO EMPHASIZE THE ADVANTAGES OF PRODUCTS PURCHASED
- BY PROVIDNG THE INFORMATION THAT PERMITS THE BUYER TO
RATIONALIZE THE DECISION
4. FORMULATION OF PERSONAL SELLING STRATEGIES
- NO SINGLE BUYER/SELLER IS SO LARGE THAT AFFECTS THE PRODUCT
TOTAL DEMAND/SUPPLY
- ALL SELLERS PRODUCTS ARE IDENTICAL
- NO ARTIFICIAL RESTRAINTS ON PRICE EXISTS
- ALL BUYERS ARE INFORMED ABOUT SELLERS PRICE
- PERSONAL SELLING STRATEGY
- UNREALISTIC ASSUMPTIONS, THEREFORE, NO PERSONNEL SELLING
STRATEGIES
- LARGE NUMBER OF SELLERS OF GENERIC PRODUCT BUT EACH PRODUCT IS
DIFFERENTIATED
- BUYERS ARE NOT FULLY INFORMED ABOUT THE OFFERING OF COMPETING
SELLERS
- PERSONAL SELLING STRATEGY
- SELLERS DIFFERENTIATE THEIR MARKET OFFERINGS THROUGH
INDIVIDUALIZING ONE OR SEVERAL COMPONENTS OF OVERALL MARKETING
STRATEGY.
5. OLIGOPOLISTIC COMPETITION
- CHANGING OF MARKETING STRATEGY OF ONE COMPETITOR HAS DIRECT
REPURCUSSIONS ON OTHER
- PERSONAL SELLING STRATEGIES
- PLAYS IMPORTANT ROLE IN BUILDING AND MAINTAINING DEALER
COMPETITION, IN SERVICING THE DISTRIBUTION NETWORK AND IN GATHERING
INFORMATION ON COMPETITORS ACTIVITIES.
- NO DIRECT BUT INDIRECT COMPETITION EXISTS.
- PERSONAL SELLING STRATEGIES
- SELLING STRATEGIES REQUIRED TO STIMULATE PRIMARY DEMAND
- REQUIREMENT OF DISTRIBUTION STRATEGY
- REQUIREMENT OF PRICING STRATEGY
- INTEGRATION OF PRODUCT, DISTRIBUTION, PRICING STRATEGIES IN
OVERALL MARKETING STRATEGIES
6. DETERMINING THE KIND OF SALES PERSONNEL
- 2. ANALYSIS OF SALES PERSONNEL ROLE IN SECURING THE ORDER:
CHOICE OF BASIC SELLING STYLE
- DEVELOPING AND MAINTAING LONG-TERM RELATIONSHIP WITH STABLE
CUSTOMERS
- LOW KEY SELLING, LITTLE OR NO PRESSURE, JOB IS DULL &
ROUTINE
- ADVETISING & OTHER PROMOTIONAL MEASURES ARE PREFERRRED THAN
PERSONAL SELLING
- SALES PERSON ROLE IS TO BUILDUP VOLUME BY PROVIDING PROMOTIONAL
ASSISTANCE
- LOW KEY AND DOES NOT REQUIRE HIGH-LEVEL TECHNICAL TRAINING OR
ABILITY
- SALESPERSON JOB IS TO PERSUADE INDIRECT CUSTOMERS TO BUY FROM
THE COMPANYS DIRECT CUSTOMERS
7. CONTD
- SALES PERSON DEALS WITH COMPANYS ESTABLISHED ACCOUNT &
PERFORM ADVISORY FUNCTION
- SALES PERSON SELLS DIRECTLY TO THE INDUSTRIAL USERS & OTHER
BUYERS
- SALES PERSON SPECIALIZE BY EITHER PRODUCT OR MARKET
- THE ABILITY TO IDENTIFY, ANALYZE & SOLVE CUSTOMERS PROBLEM
IS IMPORTANT
- SALES PERSONS ROLE IS TO CONVERT PROSPECTS INTO CUSTOMER
- SALES PERSON SHOULD UNUSUALLY CREATIVE, INGENIOUS AND POSSESS A
HIGH DEGREE OF RESOURCEFULNESS
8. DETERMINING THE SIZE OF SALES FORCE
- THE WORKLOAD METHOD: ALL SALES PERSONS SHOULD SHARE EQUAL
WORKLOAD
- CLASSIFY CUSTOMERS INTO SALES VOLUME POTENTIAL CATEGORY
- DECIDE ON LENGTH OF TIME PER SALES CALL AND DESIRED CALLS
FREQUENCIES ON EACH CLASS
- CALCULATE THE TOTAL WORKLOAD
- CALCULATE TOTAL WORKTIME AVAILABLE PER PERSON
- DIVIDE TOTAL WORKTIME AVAILABLE PER PERSON BY TASK
- CALCULATE THE TOTAL NO. OF SALES PERSON NEEDED
- LARGE FIRMS LIKE IBM & AT&T HAS USED THIS APPROACH
- BASIC FLAW DISREGARD PROFIT AS AN EXPLICIT CONSIDERATION
- - ALL SALES PERSON WILL UTILIZE THEIR TIME WITHEQUAL
EFFICIENCY
9. CONTD
- THE SALES POTENTIAL METHOD
- PERFORMANCE OF THE SET OF ACTIVITIES CONTAINED IN THE JOB
DESCRIPTION REPRESENTS ONE SALES PERSONNEL UNIT
- DOES NOT CONSIDER THE LEAD TIME
- ASSUMES SALES POTENTIAL ARE IDENTICAL IN ALL TERRITORIES
- ESTIMATE OF SALES PRODUCTIVITY OF ONE UNIT SALE& TURNOVER
IS CRUCIAL & RELIES ON ACCURACY
- N = S/P+T(S/P) OR N=S/P(1+T)
- N = NO. OF SALES PERSONNEL UNITS
- S = FORECASTED SALES VOLUME
- P =ESTIMATED SALES PRODUCTIVITY OF ONE SALES PERSONNEL
UNIT
- T = ALLOWANCE FOR RATE OF SALES TURNOVER
10. CONTD
- BEST APPROACH TO DETERMINE SALES FORCE SIZE
- BASED ON PROPOSITION: NET PROFITS WILL INCREASE WHEN ADDITIONAL
SALES PERSONNEL ARE ADDED IF THE INCREMENTAL SALES REVENUES EXCEEDS
THE INCREMENTAL COSTS INCURRED
- CONCEPTUALLY MOST CORRECT BUT MOST DIFFICULT TO APPLY
- IT IS DOUBTFUL THAT THE METHOD IS APPROPRIATE WHERE PERSONAL
SELLING IS NOT PRIMARY MEANS OF MAKING SALES
- IT FAILS TO ACCOUNT FOR POSSIBLE COMPETITIVE REACTIONS AND LONG
TERM INVESTMENT EFFECT OF PERSONAL SELLING
11. STEPS IN PERSONAL SELLING PROSPECTING PRESENTATION
&DEMONSTRATION HANDLINGOBJECTIONS APPROACH PRE-APPROACH CLOSE
12. PROSPECTING
- THE PLANNING WORK WHICH IS ESSENTIAL IN ELIMINATING
NON-BUYERS
- FORMULATING PROSPECTS DEFINITION
- SEARCHING OUT POTENTIAL ACCOUNTS
- QUALIFYING PROSPECTS & DETERMINING PROBABLE
REQUIREMENTS
- RELATING COMPANY PRODUCTS TO EACH PROSPECTS REQUIREMENT
13. CONTD
- CENTRE OF INFLUENCE METHOD
- PERSONAL OBSERVATION METHOD
- DIRECT MAIL/ TELEPHONE METHOD
14. APPROACH
- DIRECT CONTACT BETWEEN SALES PERSON & PROSPECT
- IMPORTANCE OF SUCCESSFUL APPROACH
- ENHANCES SALES & THUS IMPORTANT FOR RUNNING BUSINESS
- FAILED APPROACH GIVES OPPORTUNITY TO RIVALS
- KEY TO SUCCESSFUL APPROACH
- MEET PROSPECT WITH PRIOR APPOINTMENT
- PROFESSIONALISM, CONFIDENCE & COMPLETE INFORMATION
- MAKE PROSPECT FEEL RELAXED
- RESPECT THE VIEWS & CRITISM OF PROSPECTS
- EFFECTIVE PRESENTATION WITH THE USE OF SALES FIGURE
15. CONTD
- SALES PERSON CONFIRMS THAT PERSON HAS A NEED TO PURCHASE
- IDENTIFICATION OF DECISION PROCESS ELEMENT FACING THE CUSTOMER
(AUTHORITY)
- CASHING ON BRAND NAME OR COMPANYS REPUTATION
- CUSTOMER BENEFIT APPROACH
- INNOVATIVE PRODUCTS OPEN THE DOOR TO SALESMAN
- THE APPROACH OF MAKING PROSPECT FEEL IMPORTANT
16. PRESENTATION & DEMONSTRATION
- REQUIREMENTS OF GOOD PRESENTATION
- QUICK PRESENTATION OF PRODUCTS
- ATTRACTIVE, DECORATED & WELL ORGANIZED PACKAGES
- EXPLAINATION OF PRODUCT FEATURES IN SIMPLE & EASY
TERMS
- SHOW THE KIND OF QUALITY DEMANDED BY SALES PERSON
- PRODUCT APPEAL TO CUSTOMER SENSES
- ADVANTAGES OF DEMONSTRATION
- SHOWS PRODUCT FEATURES CLEARLY
- REINFORCEMENT OF BUYING DECISIONS
- GIVES CUSTOMER OPPORTUNITY TO COMPARE PRODUCTS
- INCREASES CONFIDENCE OF CUSTOMER
- SPEAKS LOUDER THAN SALESMAN
17. HANDLING OBJECTIONS
- OBJECTIONS ON AFTER SALE SERVICE
- OBJECTIONS ON TIMING TO BUY
- PROCEDURE FOR HANDLING OBJECTIONS
- GIVE OPPORTUNITY TO PROSPECT TO RAISE OBJECTION
- ADMIT VALID OBJECTIONS AND ACCEPT IN POSITIVE SPIRIT
- NEVER OFFEND PROSPECT BY OVERRULING OBJECTION
- CONVINCE PROSPECT TO VIEW PROBLEM FROM DIFFERENT ANGLE
- GIVE BETTER DEAL TO CUSTOMER TO COUNTER OBJECTION
18. THE SALES CLOSE
- CONVINCE THE CUSTOMER TO BUY APRODUCT
- REASONS FOR FAILURE TO CLOSE
- PROSPECT NOT FULLY CONVINCED
- PRESSURIZED BY SALESMAN TO BUY PRODUCT
- PROSPECTS WANT TO POSTPONE PURCHASE
- SALESMAN NOT RECOGNIZING HIS NEEDS/PREFERENCES
- PROPER PLANNING, PRESENTATION & DEMONSTRATION IS NOT
THERE
19. SALES ORGANIZATIONS
- PURPOSE OF SALES ORGANIZATIONS
- TO PERMIT THE DEVELOPMENT OF SPECIALIST
- TO ASSURE THAT ALL NECESSARY ACTIVITIES ARE PERFORMED
- TO ACHIVE COORDINATION OR BALANCE
- TO ECONOMIZE ON EXECUTIVE TIME
20. SETTING UP A SALES ORGANIZATION
- SET BOTH QUANTITATIVE AS WELL AS QUALITATIVE OBJECTIVES
- QUALITATIVE OBJECTIVES ARE INDISPENSABLE FOR LONG-RANGE
PLANNING, THUS, KEPT IN MIND IN SHORT RANGE PLANNING ALSO
- QUANTITATIVE OBJECTIVES ARE REQUIRED AS OPERATING
GUIDEPOSTS
- DELINEATING THE NECESSARY ACTIVITIES
- DETERMINING THE NECESSARY ACTIVITIES & THEIR VOLUME OF
PERFORMANCE IS BASED ON QUALITATIVE & QUANTITATIVE
OBJECTIVES
- ALSO HELPS IN DETERMINING WHICH ACTIVITIES TO BE PERFORMED IN
WHAT VOLUME
21. CONTD
- GROUPING ACTIVITIES INTO JOBS OR POSITIONS
- ACTIVITIES IDENTIFIED ARE ALLOCATED TO DIFFERENT POSITIONS
- ACTIVITIES ARE GROUPED SO THAT CLOSELY RELATED TASKS ARE
ASSIGNED TO SAME POSITIONS
- EACH POSITION MUST ALSO CONTAIN SOME VARIATIONS
- ASSIGNING PERSONNEL TO POSITIONS
- WHETHER TO RECRUIT SPECIAL INDIVIDUALS TO FILL THE POSITIONS OR
TO MODIFY THE POSITIONS TO FIT THE CAPABILITIES OF AVAILABLE
PERSONS
- PROVIDING FOR COORDINATION AND CONTROL
- SALES EXECUTIVES REQUIRE MEANS TO CONTROL THEIR SUBORDINATES
& TO COORDINATE THEIR EFFORTS
- THEY SHOULD NOT BE OVERBURDENED NOR SHOULD HAVE TOO MANY
SUBORDINATES
22. CONTD
- COORDINATION & CONTROL IS OBTAINED THROUGH BOTH FORMAL
& INFORMAL MEANS
- FORMAL INSTRUMENTS OF ORGANIZATIONAL CONTROL:
- JOB OBJECTIVES, DUTIES & RESPONSIBILITIES
- REDUCES CONFUSION ABOUT INDIVIDUALS ROLE
- DELINEATES FORMAL RELATIONSHIP
- EXTENSION OF ORGANIZATION CHART
- CONTAINS CHART FOR BOTH THE COMPANY & THE DEPARTMENT
23. BASIC TYPES OF SALES ORGANIZATION STRUCTURE
- FACTORS AFFECTING THE ORGANIZATIONAL STRUCTURE
- TYPES OF ORGANIZATION STRUCTURE
- THE MARKETING CHANNELSTHE COMPANY SIZE
- THE PRODUCT OR PRODUCT LINE
- THE PRACTICES OF COMPETITORS
- PERSONALITIES & ABILITIES OF PERSONNEL
- OLDEST & SIMPLEST STRUCTURE
- WIDELY USED IN SMALLER FIRMS OR FIRMS WITH SMALL NUMBERS OF
SELLING PERSONNELS, LIMITED GEOGRAPHICAL AREA OR NARROW PRODUCT
LINE
- CHAIN OF COMMAND RUN FROM TOP TO DOWN
- ALL EXECUTIVES EXERCISE LINE AUTHORITY & EACH SALES PERSON
IS RESPONSIBLE TO NEXT IN THE HIERARCHY
24. LINE SALES DEPARTMENT ORGANIZATION GM SM SALES PEOPLE
SALESPEOPLE SALES PEOPLE OFFICE STAFF ASSISTANT SM DIV-1 ASSISTANT
SM DIV-2 ASSISTANT SM DIV-3 ASSISTANTSM OFFICE 25. CONTD
- NO CROSS COMMUNICATION BETWEEN PERSONS AT SAME LEVEL
- GREATEST USE IN COMPANIES WHERE ALL SALES PERSONS REPORT
DIRECTLY TO THE CHIEF SALES EXECUTIVES
- PROBLEMS OF DISCIPLINE & CONTROL ARE SMALL
- AUTHORITY & RESPONSIBILTY ARE CLEAR
- SAVES TIME IN MAKING POLICY CHANGES
- DEVELOPMENT OF CLOSE RELATIONSHIP BETWEEN SUPERIOR &
SUBORDINATE
- ADMINISTRATIVE EXPENSES ARE LOW
- TOO MUCH DEPENDENCE ON DEPARTMENT HEAD
- INSUFFICIENT TIME FOR POLICY MAKING & PLANNING
- INAPPROPRIATE FOR RAPIDLY GROWING FIRMS
- OFFERS LITTLE OPPORTUNITY TO SUBORDINATES TO ACQUIRE MANAGEMENT
SKILLS
26. CONTD
- LINE & STAFF SALES ORGANIZATIONS
- FOUND IN LARGE & MEDIUM-SIZED FIRMS EMPLOYING NUMBER OF
SALES PERSONS, SELLING DIVERSIFIED PRODUCT LINES OVER WIDE
GEOGRAPHIC AREAS
- PROVIDE TOP SALES EXECUTIVES WITH GROUP OF SPECIALISTS TO
ASSIST
- STAFF HELPS IN CONSERVING THE TIME & FREES EXECUTIVES FOR
OTHER WORKS
- STAFF SPECIALISTS INCREASES OVERALL EFFECTIVENESS OF
DEPARTMENT
- STAFF DO NOT HAVE AUTHORITY TO ISSUE ORDERS OR DIRECTIVES
27. LINE & STAFF SALES DEPTT. ORGANIZATION PRESIDENT
ADVERTISING MANAGER VP MARKETING SALES PERSONEL DIRECTOR
DIRECTORTRAINING ASSISTANTGM SALES MANAGER MARKET RESEARCH
ASSISTANT TOGM SALES GM SALES SALESPROMOTIONMANAGER DISTRICT SALES
MANAGER BRANCH SALES MANAGER SALES PERSONNEL 28. CONTD
- PLANNING ACTIVITIES ARE DIVIDED AND APPORTIONED TO STAFF
MEMBERS
- EXECUTIVES CONCENTRATE ON COORDINATION & CONTROL
- INCREASE IN ADMINISTRATIVE EXPENSES
- DIFFICULT TO PREVENT SOME PERSONS FROM EVADING UNWANTED
RESPONSIBILITIES
29. CONTD
- FUNCTIONAL SALES ORGANIZATION
- EACH INDIVIDUAL IN AN ORGANIZATION SHOULD HAVE FEW DISTINCTIVE
DUTIES AS POSSIBLE
- PRINCIPLE OF SPECIALIZATION IS UTILIZED TO ITS FULLEST
EXTENT
- SALES PEOPLE RECEIVE INSTRUCTIONS FROM SEVERAL EXECUTIVE BUT AT
DIFFERENT ASPECTS OF THEIR WORK
- NOT FEASIBLE FOR SMALL & MEDIUM SIZED FIRMS
- SUITABLE FOR LARGE FIRMS WITH STABLE OPERATIONS & WITH
OPPORTUNITY FOR CONSIDERABLE DIVISION OF LABOUR
30. CONTD
- COMMITTEE SALES ORGANIZATION
- NEVER A SOLE BASIS FOR ORGANIZING A SALES DEPTT.
- METHOD OF ORGANIZING THE EXECUTIVE GROUPS FOR PLANNING &
POLICY FORMULATION
- THE AGENDA MUST BE PLANNED & CONTROLLED TO AVOID WASTING
TIME
- COLLECTIVE DECISION MAKING
- PROVIDE FOCAL POINT FOR DISCUSSION & FOR SUGGESTIONS
31. SALES TERRITORIES
- A SALES TERRITORY IS A GROUPING OF CUSTOMERS AND PROSPECTS
ASSIGNED TO AN INDIVIDUAL SALES PERSON
- REASON FOR ESTABLISHING OR REVISING SALES TERRITORIES
- TO PROVIDE PROPER MARKET COVERAGE
- TO CONTROL SELLING EXPENSES
- TO ASSIST IN EVALUATING SALES PERSONNEL
- TO CONTRIBUTE TO SALES FORCE MORALE
- TO AID IN THE CO-ORDINATION OF PERSONAL SELLING AND ADVERTISING
EFFORT
32. PROCEDURE FOR SETTING UP OR REVISING SALES TERRITORIES
- SELECTING A BASIC GEOGRAPHICAL CONTROL UNITS: THE MOST COMMONLY
USED CONTROL UNITS ARE
- COUNTIES: SMALLEST UNIT FOR WHICH GOVT. OFFICIALS REPORT
DATA
- ZIP CODE AREAS: GENERALLY REFLECTS ECONOMIC CHARACTERISTICS OF
AREA
- CITIES: USED WHEN SALES POTENTIAL IS LOCATED IN URBANIZED
AREAS
- METROPOLITAN STATISTICAL AREAS: GEOGRAPHICAL AREA WITH LARGE
POPULATION NUCLEUS TOGETHER WITH ADJACENT COMMUNITIES
- TRADING AREAS: THE GEOGRAPHICAL REGION SURROUNDING THE CITY
THAT SERVES AS DOMINANT RETAIL OR WHOLESALE CENTER OR BOTH FOR THE
REGION
- STATES: USED WHEN COMPANY WITH SMALL SALES FORCE COVERING THE
MARKET EXTENSIVELY RATHER INTENSIVELY OR WHEN COMPANY IS FIRST
USING THE NATIONAL DISTRIBUTION , WHICH ASSIGNS ITS SALES PERSON
TERRITORIES WITH 1 OR MORE STATES AS TEMPORARY EXPEDIENT AND AS
SOON AS FEASIBLE A CHANGE IS MADE TO A SMALL CONTROL UNIT
33. CONTD
- DETERMINING SALES POTENTIALS IN CONTROL UNIT
- SALES POTENTIAL REPRESENTS THE MAXIMUM POSSIBLE SALES
OPPORTUNITIES OPEN TO A SPECIFIC COMPANY SELLING A GOOD OR SERVICES
DURING A STATED FUTURE PERIOD TO A PARTICULAR MARKET SEGMENT
- 3. COMBINING CONTROL UNITS INTO TENTATIVE TERRITORIES
- DECIDES ON NUMBER OF TERRITORIES, ASSUMING THAT ALL SALES
PERSONNEL ARE OF AVERAGE ABILITY
- ANALYSIS OF PAST SALES EXPERIENCE HELPS IN DETERMINIG THE % OF
TOTAL SALES POTENTIAL THAT AN AVERAGE SALES PERSON SHOULD
REALIZE
- ESTIMATE THE SALES PRODUCTIVITY PER SALES PERSONNEL UNIT AND
DEVIDES IT INTO THE TOTAL ESTIMATED SALES POTENTIAL = NO. OF SALES
PERSONNEL UNITS- & TERRITORIES REQUIRED.
- THE NEXT STEP IS TO DECIDE THE TERRITORY SHAPE, WHICH AFFECTS
SELLING EXPENSES & EASE OF COVERAGE
34. CONTD
- 4. ADJUSTING FOR COVERAGE DIFFICULTY AND REDISTRICTING
TENTATIVE TERRITORIES REDISTRICTING TO ADJUST FOR COVERAGE
DIFFICULTY IS A SEVEN STEP PROCEDURE
- DETERMINE NO., LOCATION & SIZE OF CUSTOMERS & PROSPECTS
IN EACH TENTATIVE TERRITORY
- ESTIMATE TIME REQUIRED FOR EACH SALES CALL
- DETERMINE LENGTH OF TIME BETWEEN CALLS, THAT IS AMOUNT OF TIME
REQUIRED TO TRAVEL FROM ONE CUSTOMER TO ANOTHER
- CALCULATE THE NO. OF CALLS POSSIBLE WITHIN A GIVEN PERIOD
- ADJUST THE NO. OF CALLS POSSIBLE DURING A GIVEN PERIOD BY THE
DESIRED CALL FREQUENCIES FOR THE DIFFERENT CLASSES OF CUSTOMERS
& PROSPECTS
- CHECK OUT THE ADJUSTED TERRITORIES WITH SALES PERSONNEL WHO
WORK OR WHO HAVE WORKED IN EACH AREA, AND MAKE FURTHER ADJUSTMENT
AS REQUIRED
35. SALES QUOTAS
- QUOTAS ARE QUANTITATIVE OBJECTIVES ASSIGNED TO SALES
ORGANIZATIONAL UNITS.
- ALL QUOTAS HAVE TIME DIMENSION THEY QUANTIFY WHAT MANAGEMENT
EXPECTS WITHIN A GIVEN PERIOD
- QUOTAS ARE DEVISES FOR DIRECTING & CONTROLLING SALES
OPERATION
- ACCURATE DATA ARE IMPORTANT TO THE EFFECTIVENESS OF QUOTA
SYSTEM
- JUDGEMENT & ADMINISTRATIVE SKILLS ARE REQUIRED OF THOSE
WITH QUOTA SETTING RESPONSIBILITIES.
36. OBJECTIVES IN USING QUOTAS
- TO PROVIDE QUANTITATIVE PERFORMANCE STANDARD
- DETERMINE WHICH SALES PERSONNEL/SALES ORGANIZATION/DISTRIBUTIVE
OUTLET ARE DOING BELOW AVERAGE, AVERAGE OR ABOVE AVERAGE JOB
- COMPARISION OF QUOTA WITH SALES PERFORMANCE IDENTIFY WEEK &
STRONG POINTS
- TO OBTAIN TIGHTER SALES & EXPENSE CONTROL
- TO MOTIVATE DESIRED PERFORMANCE
- QUOTAS SHOULD BE ATTAINABLE GOALS, ACHIEVABLE WITH JUSTIFIABLE
PRIDE
- MOTIVATION DECLINES WITH EASILY ATTAINABLE QUOTAS
- TO USE IN CONNECTION WITH SALES CONTEST
- COMPANIES FREQUENTLY USE PERFORMANCE AGAINST QUOTA AS THE MAIN
BASIS OF MAKING AWARDS IN SALES CONTEST
- SALES CONTEST IS A POWERFUL INCENTIVE IF ALL PARTICIPANTS FEEL
THEY HAVE EQUAL CHANCE OF WINNING
37. TYPES OF QUOTAS
- OLDEST & MOST COMMON TYPE
- COMMUNICATES HOW MUCH FOR WHAT PERIOD
- SET FOR GEOGRAPHICAL AREAS, PRODUCT LINES OR MARKETING CHANNELS
OR COMBINATION
- THE SMALLER THE UNIT, THE MORE EFFECTIVE THE QUOTA FOR
CONTROLLING SALES OPERATION
- DOLLAR SALES VOLUME QUOTA
- COMPANIES SELLING BROAD PRODUCT LINES SET SALES VOLUME QUOTAS
IN DOLLARS RATHER THAN IN UNITS OF PRODUCT
- ADVANTAGE: RELATE EASILY TO OTHER PERFORMANCE DATA
- PRICES FLUCTUATE CONSIDERABLY
- NARROW PRODUCT LINES SOLD AT STABLE PRICES
- COMPANIES USE POINT SALES VOLUME QUOTA BECAUSE OF PROBLEM IN
USING $ OR UNIT VOLUME QUOTA
38. PROCEDURE FOR SETTING SALES VOLUME QUOTA
- SALES VOLUME QUOTAS DERIVED FROM TERRITORIAL SALES POTENTIALS
THIS APPROACH IS APPROPRIATE WHEN
- TERRITORIAL SALES POTENTIAL ARE DETERMINED IN CONJUNCTION WITH
TERRITORIAL DESIGN
- BOTTOM UP PLANNING AND FORECASTING PROCEDURES ARE USED IN
OBTAINING THE SALES ESTIMATE IN THE SALES FORECAST
- HOWEVER, IN BOTH THE CASES FURTHER ADJUSTMENT IS NEEDED
- SALES VOLUME QUOTA DERIVED FROM TOTAL MARKET ESTIMATE HERE,
MANAGEMENT HAS NEITHER STATISTICS NOR SALES FORCE ESTIMATES OF
TERRITORIAL SALES POTENTIAL. MANAGEMENT MAY EITHER
- BREAKDOWN THE TOTAL COMPANY SALES ESTIMATE, USING VARIOUS
INDEXES OF RELATIVE SALES OPPORTUNITIES IN EACH TERRITORY, AND THEN
MAKE ADJUSTMENTS TO ARRIVE AT TERRITORIAL SALES VOLUME QUOTAS
- CONVERT THE COMPANY SALES ESTIMATE INTO A COMPANY WIDE SALES
QUOTA AND THEN BREAK DOWN THE COMPANY VOLUME QUOTA, BY USING AN
INDEX OF RELATIVE SALES OPPORTUNITIES IN EACH TERRITORY
39. CONTD
- SALES VOLUME QUOTA BASED ON PAST SALES EXPERIENCE ALONE
- COMPANIES ASSUME NOT ONLY THAT PAST AND FUTURE SALES ARE
RELATED BUT THAT PAST SALES HAVE BEEN SATISFACTORY
- COMPANIES PERPETUATE PAST ERRORS
- AVERAGE SALES LAG BEHIND ACTUAL SALES DURING LONG PERIODS OF
RISING OR FALLING SALES
- SALES VOLUME QUOTAS BASED ON EXECUTIVE JUDGEMENT ALONE
- JUSTIFIED WHEN THERE IS LITTLE INFORMATION TO USE IN SETTING
QUOTAS
- QUTAS CAN BE OF NO HIGHER QUALITY THAN THE JUDGEMENT OF THOSE
SETTING THEM
- SALES VOLUME QUOTAS RELATED ONLY TO COMPENSATION PLAN
- BASED SOLELY UPON THE PROJECTED AMOUNTS OF COMPENSATION THAT
MANAGEMENT BELIEVES SALES PERSONNEL SHOULD RECEIVE
- POOR STANDARDS FOR APPRAISING SALES PERFORMANCE
40. BUDGET QUOTAS
- SET FOR VARIOUS UNITS IN SALES ORGANIZATION TO CONTROL
EXPENSES, GROSS MARGINS, OR NET PROFIT
- EXPENSE QUOTAS ARE USED MOST OFTEN IN COMBINATION WITH SALES
VOLUME QUOTA
- MANAGEMENT PROVIDE SALES PERSONNEL WITH FINANCIAL INCENTIVES TO
CONTROL THEIR OWN EXPENSES
- TO REDUCE ADMINISTRATIVE BURDEN AND MISUNDERSTANDINGS, EXPENSE
QUOTAS ARE GENERALLY EXPRESSED AS % OF SALES
- VARIATIONS IN COVERAGE DIFFICULTY & OTHER ENVIRONMENTAL
FACTORS, MAKE IT IMPRACTICAL TO SET IDENTICAL EXPENSE % FOR ALL THE
TERRITORIES
- DIFFERENT SALES PERSON SELLS DIFFERENT PRODUCT MIXES, SO SOME
INCUR HIGHER EXPENSES THAN OTHERS
- MAKES SALES PERSONNEL MORE COST CONSCIOUS
- AWARENESS TOWARDS EXPENSE CONTROL
41. CONTD
- GROSS MARGIN OR NET PROFIT QUOTAS
- APPROPRIATE WHEN THE PRODUCT LINE CONTAINS BOTH HIGH & LOW
MARGIN ITEMS
- SALES PERSONS DO NOT SET THE PRICE AND HAVE NO ROLE ON THE
MANUFACTURING COST.THUS, NOT RESPONSIBLE FOR GROSS MARGIN
- CERTAIN SELLING EXPENSES ARE BEYOND THE SALESPERSONS
INFLUENCE
- INCREASED CLERICAL & ADMINSTRATIVE COSTS
- DEFINE THE IMPORTANT ACTIVITIES SALES PERSON PERFORM; THEN SET
TARGET PERFORMANCE FREQUENCY
- APPROPRIATE WHEN SALES PERSONNEL PERFORM IMPORTANT NON-SELLING
ACTIVITIES
- CONTROL & RECOGNITION OF SALES PERSON PERFORMING NON
SELLING ACTIVITIES
- REWARD SALES PERSON ON QUANTITY OF WORK; IRRESPECTIVE OF
QUALITY
- PROBLEM IN INSPIRING THE SALES FORCE
42. COMBINATION & OTHER POINT SYSTEM QUOTA
- COMBINATION QUOTAS CONTROL PERFORMANCE OF BOTH SELLING &
NON-SELLING ACTIVITIES
- OVERCOME THE DIFFICULTY OF USING DIFFERENT MEASUREMENT UNITS TO
APPRAISE DIFFERENT ASPECTS OF PERFORMANCE
- BECAUSE PERFORMACES ARE COMPUTED AS %, KNOWN AS PONI SYSTEMS,
THE POINTS BEING % POINTS.
- SUMMARIZE OVERALL PERFORMANCE IN A SINGLE MEASURE
- SALES PERSONS MAY HAVE DIFFICULTY IN UDERSTANDING &
APPRAISING THEIR OWN ACHIEVEMENTS
- DESIGN IMPERFECTION MAY CAUSE SALES PERSONNEL TO PLACE TOO MUCH
EMPHASIS ON ONE COMPONENT ACTIVITY
- DESIGNED TO SECURE SOME DESIRED BALANCE OF SALES AMONG VARIOUS
PRODUCTS
43. ADMINISTERING THE QUOTA SYSTEM
- ACCURATE, FAIR & ATTAINABLE QUOTAS
- DEPENDS NOT ONLY ON THE QUALITY OF MANAGEMENTS JUDGEMENT BUT ON
THE CAPABILITIES & MOTIVATIONA OF THE SALES FORCE
- SECURING & MAINTAINING SALES PERSONNELS ACCEPTANCE OF
QUOTAS
- PARTICIPATION BY SALES PERSONNEL IN QUOTA SETTING
- KEEPING SALES PERSONNEL INFORMED
- NEED FOR CONTINUOUS MANAGERIAL CONTROL
- REASONS FOR NOT USING SALES QUOTAS
- IN CERTAIN INDUTRIAL GOODS, ITS DIFFICULT TO OBTAIN ACCURATE
SALES ESTIMATE
- SINCE QUOTA REQUIRES STATISTICAL TECHNIQUE, FEAR IS THAT SALES
PERSONNEL WILL NOT ACCEPT QUOTA PREPARED BY HARD TO EXPLAIN
TECHNIQUES
- PLACE TOO MUCH EMPHASIS UPON MAKING SALES LEGITIMATE CRITICISM
OF SALES VOLUME QUOTA
- IF PRODUCT IS IN SHORT SUPPLY, QUOTAS ARE NOT APPROPRIATE
44. AN ANALYTICAL FRAMEWORK FOR CHANNEL DESIGN &
IMPLEMENTATION
- THE CHANNEL MANAGEMENT PROCESS IS DEFINED AS A SET OF
ACTIVITIES ASSOCIATED WITH THE CREATION AND MAINTENANCE OF
DISTRIBUTION CHANNEL
- THE CHANNEL MANAGEMENT GIVES A CLEAR IDEA ABOUT
- THE NUMBER OF CHANNEL ENTITIES IN THE CHANNEL NETWORK
- THE WAY IN WHICH THEY ARE LINKED
- THE ROLES AND RESPONSIBILITIES OF THE ENTITIES IN THE
NETWORK
- THE REWARDS FOR PARTICIPATING IN THE ACTIVITIES
- THE NORMAL ACTIVITIES TO BE PERFORMED DURING THE NORMAL
FUNCTIONING OF THE CHANNEL
45. DESIGNING A CUSTOMER-ORIENTED CHANNEL
- THE CHANNEL DESIGN PROCESS
- LIST DOWN ALL SERVICE OUTPUTS THAT CHANNEL NEEDS TO OFFER
- THE SERVICE OUTPUT DELIVERED TEMPLATE FOR MARKETING CHANNEL
SELLING A CONSUMER DURABLE TO THE MIDDLE CLASS CONSUMERS:
- BULK BREAKING: UNITS ARE DELIVERED IN ONES
- SPATIAL CONVEVIENCE: THERE IS ATLEAST 1 OUTLET FOR ALOMOST
EVERY 3 KM RADIUS EXCLUDING THINLY POPULATED AREAS
- WAITING TIME: NOT MORE THAN 2 DAYS FOR ANY MODEL
- ASSORTMENT: OTHER CONSUMER ITEMS INCLUDING THAT OF OTHER
COMPETITORS ARE AVAILABLE AT ALL OUTLETS WHERE THE PRODUCTS ARE
OTHERWISE AVAILABLE
- INSTALLATION SUPPORT: AVAILABLE
- AFTER SALES SUPPORT: FREE FOR FIRST 2 YEARS: BUT AVAILABLE ON
PAYMENTS AFTERWARDS
- CONSUMER FINANCING: AVAILABLE
46. CONTD
- DEVELOP THE LEVELS AT WHICH EACH OF THE SERVICE OUTPUT HAVE TO
BE OFFERED THROUGH COLLECTION OF INFORMATION FROM THE CUSTOMER OR
BENCHMARKING WITH THE COMPETITOR
- CLASSIFICATION SCHEME FOR CHANNEL FLOW :
- PHYSICAL POSSESSION: TRANSPORTATION & STORAGE OF PRODUCT IN
ORDER TO PHYSICALLY DELIVER THE PRODUCT TO THE END USER
- OWNERSHIP: NORMALLY TAKING TITLE TO THE PRODUCT SO THAT IN CASE
THE PRODUCT IS DAMAGED OR LOST DUE TO ANY REASON, THE LOSS IS
ACCOUNTED FOR.
- PROMOTION:PROMOTING THE PRODUCT IN SEVERAL WAYS, ADVERTISING,
DISPLAYING ETC
- NEGOTIATING:COMING TO AN AGREEMENT ABOUT THE TERMS OF TRADE
WITH THE UPSTREAM AND DOWN STREAM ENTITIES IN THE CHANNEL INCLUDING
CUSTOMERS
- FINANCING:TAKING CARE OF FINANCIAL REQUIREMENTS (MAINLY WORKING
CAPITAL) OF THE CHANNEL MEMBERS
- RISK TAKING:UNDERWRITING THE RISKS ASSOCIATED WITH THE
POSSESSION OR OWNERSHIP OF THE CHANNELINCLUDING WARRANTIAS FOR
AFTER SALES SERVICE
- ORDERING: RECEIVING AND RECORDING THE ORDERS, CONSILIDATING IT
AND PASSING IT ON TO THE UPSTRAEM
- PAYMENTS: RECEIVING PAYMENTS, RECORDING IT, CONSOLIDATING IT
AND PASSING IT ON TO THE UPSTREAM
47. CONTD
- WORKBACK FROM EACH OF THE SERVICE OUTPUT LEVELS AND CONCEIVE
THE ACTIVITIES THAT HAVE TO BE PERFORMED TO FULFILL THESE SERVICE
OUTPUT OBJECTIVES
- CHANNEL ACTIVITIES & SERVICE OUTPUTS
- FLOW DIRECTINDIRECTOTHERCONTRIBUTION CONTRIBUTION
CONTRIBUTION
- PHYSICALSPATIAL CONVENIENCE,BULK
- POSSESSIONBREAKING, WAITING TIME
- OWNERSHIP SPATIAL CONVENIENCE
- PROMOTION SPATIAL CONVENIENCE IS A SERVICEOUTPUT INITSESLF
- NEGOTIATINGSPATIAL CONVENIENCE,BULK ASSORTMENT
- FINANCINGSPATIAL CONVENIENCE,BULK ASSORTMENT
- RISK TAKING WAITING TIME,BULK
- ORDERINGSPATIAL CONVENIENCE,BULK
- PAYMENTSSPATIAL CONVENIENCE,BULK
48. CONTD
- CALCULATE THE COST INCURRED FOR PERFORMING THESE
ACTIVITIES
- THE COST ASSOCIATED WITH ALL THE FLOWS ADD UP TO FORM THE COST
OF DISTRIBUTION
- WHILE DESIGNING THE IDEAL CHANNEL, IT IS IMPORTANT TO CONSIDER
THE REMUNERATION OF CHANNEL MEMBERS. THE REMUNERATION HAS TO BE
TUNE IN WITH
- A. THE COST OF PERFORMING THAT ACTIVITY
- THE CRITICALITY OF THE ACTIVITY
- DESIGN THE IDEAL CHANNEL STRUCTURE
- THE DESIGN EFFORT WOULD INVOLVE DECISION ABOUT:
- B. FLOWS OR ACTIVITIES THAT ARE ASSOCIATED WITH THE ACHIEVEMENT
OF THE SEVICE OUTPUT LEVEL
- TYPE OF ENTITY THAT WOULD BE ENTRUSTED WITH THE PERFORMANCE OF
EACH OF THESE FLOWS
- COMPARE THE IDEAL CHANNEL STRUCTURE WITH THE CHANNEL STRUCTURE
THAT IS EXISTING
- THENEED FOR LOOKING AT THE EXISTING DISTRIBUTION SYSTEM
EMANATES FROM TWO REASONS:
- THE EXISTING DISTRIBUTION SYSTEM WOULD GIVE IDEAS &
INSIGHTS ABOUT THE TASKS PERFORMED BY ENTITIES AND THE PROBLEMS IF
ANY RELATED TO THAT
- THE NEED TO UNDERSTAND THE EQUILIBRIUM THAT EXISTS IN THE
SYSTEM
- THE BEST CHANNEL DESIGN PRACTICE IS TO CONCEIVE THE IDEAL
DESIGN AND THEN COMPARE IT WITH THE EXISTING SYSTEM AND MAKE
MODIFICATIONS WHEREEVER POSSIBLE
49. CONTD
- ASSESS THE IDEAL CHANNEL DESIGN WITHIN TERMS OF THE CHANNEL
SELECTION CRITERIA LIKE EFFECTIVENESS, EFFICIENCY, EQUITY,
SCALABILITY & FLEXIBILITY
- ESTABLISH THE CHANNEL ESTABLISHEMENT/MODIFICATION PLAN
- THE MAIN PURPOSE OF THE CHANNEL TO BE SET UP
- THE PROFILE OF THE CUSTOMERS WHO ARE THE TARGET MARKET FOR THE
CHANNEL
- THE NEEDS & REQUIREMENT OF THE TARGET MARKET WITH REGARD TO
IDENTIFIED SERVICE OUTPUTS PROVIDED BY THE PROPOSED/EXISTING
CHANNEL
- ANALYSIS OF THE OPERATIONS OF THE EXISTING CHANNELS THAT DEAL
IN SIMILAR PRODUCT/SERVICE LINES
- DETAILED ACTIVITY CHART FOR ACHIEVING THE SERVICE OUTPUT
OBJECTVES
- DETAILS ABOUT THE VARIOUS CHANNEL CONSTITUENTS WHO WILL BE
PERFORMING THESE TASKS
- THE COST OF PERFORMING THE ACTIVITY
- THE DESIGNATED ROLE & RESPONSIBILITIES OF THE CHANNEL
CONSTITUENT
- THE PROPOSED REMUNERATION FOR PERFORMING THESE
RESPONSIBILITIES
- STANDARDS FOR MEASURING THE PERFORMANCE
- PROCEDURE FOR REPORTING AND INFORMATION SHARING
- CRITERIA FOR APPOINTING THE CHANNEL MEMBERS
50. MANAGING CONFLICT
- WHAT IS CHANNEL CONFLICT?
- A SITUATION WHERE ONE CHANNEL MEMBER PERCEIVES THE BEHAVIOUR OF
ANOTHER CHANNEL MEMBER TO BE IMPEDING THE ATTAINMENT OF ITS GOAL OR
ITS EFFECTIVE FUNCTIONING
- CHANNEL CONFLICT AS A PROCESS
- COGNITIVE/AFFECTIVE CONFLICT
51. ATTIDUNAL CAUSES OF CONFLICT
- CAUSES WHICH ARE ASSOCIATED WITH DISAGREEMENTS ABOUT
- CHANNEL ROLES: A SET OF PRESCRIPTIONS DEFINING THE BEHAVIOUR OF
A MEMBER SHOULD BE IN A PARTICULAR SITUATION. MAY ALSO BE DUE TO
LACK OF PROPER DEFINITION OF ROLES.
- EXPECTATIONS: BELIEFS ABOUT WHAT IS GOING TO HAPPEN IN
FUTURE
- PERCEPTIONS: WHILE EXPECTATIONS ARE ABOUT THE FUTURE STATE OF
AFFAIRS, PERCEPTIONS IS ABOUT THE PRESENT STATE OF AFFAIR.
INTERCHANNEL CONFLICT COULD ARISE DUE TO DIFFERING PERCEPTIONS OF
RELAITY ALSO
- CHANNEL COMMUNICATIONS: LACK OF COMMUNICATION COULD ALSO LEAD
TO INTERCHANNEL CONFLICT
52. STRUCTURAL CAUSES OF CONFLICT
- THREE MAIN CAUSES OF STRUCTURAL CONFLICT ARE:
- FIGHTS OVER SCARCE RESOURCES
53. COGNITIVE/AFFECTIVE CONFLICT
- IF CONFLICT IS LEFT UNATTENDED, IT COULD FESTER INTO A SPIRAL
OF DISRUPTIVE ACTIVITIES WHERE EACH MEMBER WILL TRY TO OUTSMART
EACH OTHER
- MEMBERS REALLY FEEL THE CONFLICT IN TERMS OF FRUSTRATION,
DISAPPOINTEMENTS, OR NEGATIVE FEELINGS TOWARDS THE
RELATIONSHIP
- LEVEL OF DISAGREEMENT CROSSES A PARTICULAR LEVEL AND AFFECTS
THE EMOTIONS OF THE INDIVIDUAL CONCERENED
- MOST OF THE CHANNEL PRINICIPALS TAKE NOTE OF THE CONFLICT AND
INITIATE SOME MEASURES FOR RESOLUTION
- IF NOT SATISFACTORILY RESOLVED, DETERIORATES INTO THE MANIFEST
CONFLICT STAGE
54. MANIFEST CONFLICT
- DISTRUCTIVE ACTIONS LIKE BOYCOTT OR TOTAL BREAKDOWN OF
COMMUNICATION
- IT IS UNADVISABLE TO ALLOW MATTERS TO DRIFT TO SUCH A
STATE
- WHEN THE CONFLICT REACH TO THIS STAGE, IT IS DIFFICULT TO
COMEBACK TO FORMER RELATIONSHIP STAGE
- AT THIS STAGE SOME RESOLUTION METHODS ARE THOUGHT ABOUT &
IMPLEMENTED
55. CONFLICT RESOLUTION MECHANISMS
- TWO BASIC METHODOLOGIES CAN BE IDENTIFIED FOR CONFLICT
MANAGEMENT IN THE FIRST OF THE CONFLICT:
- INSTITUTIONAL MECHANISMS THAT FOCUS ON STRUCTURAL CHANGES SUCH
AS JOINT MEMBERSHIP IN TRADE ORGANIZATIONS, EXECUTIVE
EXCHANGES,DISTRIBUTION COUNCILS ETC
- INTERPERSONAL & THIRD PARTY MECHANISM, SUCH AS ARBITRATION
& MEDIATION
56. Latent conflict Felt conflict Manifest conflict
-
- Joint membership of associations
Negotiation Conflict management methods at Different stages of
conflict 57. NEGOTIATION AS A MECHANISM FOR RESOLVING CONFLICT
- time tested and popular approach
- parties to the dispute set down mutual rules of engagement and
work within these rules to obtain the competitve advantage over
other party
-
- collaborative or problem solving
58. NEGOTIATION STRATEGIES HIGH CONCERN FOR THE OTHERS INTEREST
LOW CONCERN FOR OWN INTERESTHIGH ACCOMODATIVE AVOIDANCE
COLLABORATIVE COMPETITIVE COMPROMISE