.

INDIVIDUAL INTEGRATED ASSIGNMENT (IIA)

Assignment
Topic Vimal oil company

Student Name K.Nironjan

Reg No. 0000032364

Stage 1-(March,2018) Examination

National Diploma in Sales Management (NDSM)

SRI LANKA INSTITUTE OF MARKRTING (SLIM)

(BORELLA)
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 Assignment Marking Scheme
June 2018

Program National Diploma in Sales Management (NDSM)

Student Registration No 0000032364

Mark
Criteria
s
Allocated Awarded
Aligning to the purpose of the assignment 20
Some of the answer addresses to the purpose of the question 1-5
This has addressed the purpose of the assignment 6-10
Has addressed the purpose of the assignment coherently 11-15
This has addressed the purpose of assignment comprehensively 16-20
Clarity of expression 20
An attempt to organize in a logical manner 1-5
Satisfactory showing of logical manner and organization 6-10
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Shows coherent structure with clearly expressed ideas 16-20
Using examples/evidences 20
Shows a little use of examples 1-5
Some use of examples. Some evaluation attempted 6-10
Some use of examples. Well evaluated 11-15
Shows appropriate examples are fully and reliably evaluated 16-20
Critical analysis of concepts, theories, conclusions 20
Demonstrates limited evidence of critical analysis 1-5
Demonstrates some critical analysis of relevant theory 6-10
Demonstrates application of theory through critical analysis 11-15
Demonstrates application of critical analysis well integrated 16-20
Following assignment guidelines 20
Limited follow-up of assignment guidelines 1-5
Some level of follow-up of assignment guidelines 6-10
Good display of adherence to assignment guidelines 11-15
Excellent adherence to assignment guidelines 16-20

Total 100
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Signature of the Examiner

Note:

Word Count will be based on the content weightage and the word count for this
assignment should be 3000 – 4000 words, excluding cover sheet, content page,
references, appendix & illustrations (please refer page no 17 of Student Handbook)

TASK 01 Content Weightage Word allocation for each task

Question A 15% 450 - 600

Question B 20% 600 - 800

Question C 20% 600 - 800

TASK 02

Question A 15% 450 - 600

Question B 15% 450 - 600

Question C 15% 450 - 600

TOTAL 100% 3000 – 4000 words

NOTE – Please note the given (below) Assignment Marking Scheme for Marks
Allocation
VIMAL OIL LIMITED

TABLE OF CONTENTS
INTRODUCTION ....................................................................................................................... 7
1. PROMOTIONAIL MIX .............................................................................................................. 8
1.1 ADVERTISING. ................................................................................................................... 8
1.2 SALES PROMOTIONS ........................................................................................................ 8
1.3 PUBLIC RELATIONS .......................................................................................................... 8
1.4 DIRECT MARKETING ........................................................................................................ 8
1.5 PERSONAL SELLING ......................................................................................................... 9
2. SELLING OBJECTIVE OF THE PERSONAL. ......................................................................... 9
3. IMPORTANCE OF PERSONNEL SELLING ........................................................................... 9
4. IMPACT OF PERSONAL SELLING / ADVANTAGES ........................................................ 10
4.1 DISCUSS STEP OF THE SELLING PROCESS FOR VOL................................................. 10
4.2 THE IMPORTANCE OF PROSPECTING ............................................................................ 11
4.3 IDENTIFY THE PRODUCT FEATURES, ADVANTAGES, AND BENEFIT(FAB). ........ 12
5 CHOOSE THE BEST SALES PRESENTATION STRATEGY. .......................................... 12
6.1 THE SALES PRESENTATION AND DEMONSTRATION ................................................ 12
6.2 NEGOTIATING SALES RESISTANCE OR BUYER OBJECTIONS ................................. 12
6.3 FOLLOWING UP AND SERVICING THE ACCOUNT ...................................................... 13
7.1 ALTERNATIVE CLOSE ........................................................................................................ 13
7.2ASSUMPTIVE CLOSE ........................................................................................................... 14
7.3CONCESSION CLOSE ........................................................................................................... 14
8 SALES APPROACH: ................................................................................................................ 14
8.1 AIDAS APPROACH .............................................................................................................. 15
8.2 NEED SATISFACTION APPROACH. .............................................................................. 16
8.3 CONSULTATIVE APPROACH ........................................................................................ 16
TASK2....................................................................................................................................... 18
1.DEVELOPING A CORPORATE STRATEGY ........................................................................ 18
1.1 MARKET PENETRATION .................................................................................................... 18
1.2 MARKET DEVELOPMENT .................................................................................................. 18
1.3. PRODUCT DEVELOPMENT ........................................................................................... 19
1.4. DIVERSIFICATION .............................................................................................................. 19
2. GEOGRAPHIC ORGANIZATIONAL STRUCTURE ........................................................ 19
2.1VIMAL OIL COMPANY GEOGRAPHIC ORGANIZATIONAL STRUCTURE IN
ADVANTAGE .............................................................................................................................. 20
3..DECIDING SALES TERRITORIES .................................................................................... 21
3.MARKET BUILD-UP METHOD ......................................................................................... 21
4.SALES FORCE AUTOMATION .......................................................................................... 22
BENEFITS .................................................................................................................................... 23
CONCLUSIVE .............................................................................................................................. 24
BIBLIOGRAPHY ......................................................................................................................... 25
INTRODUCTION

VIMAL OIL LIMITED

Richard Silva is the new sales manager of Vimal Oil Limited; He spent his first four
weeks simply observing the current operation of the sales force. He was trying to acquire
his knowledge by accompanying the sales force during sales visits and talking to
customers.

This includes all currently operated channels.

According to Richard's observation, on the product portfolio, the company has a variety
of oils (vegetables, sunflower, soy and corn) and related products to meet any customer
profile of the segment to overcome the competition. But the development of the canal
was lacking in FLIGHT and less availability and the geographical distribution chosen
was an obstacle to its development and expansion.

Since no new account has been opened in the past two months, this means that the sales
force has not expanded its market and is only serving existing customers in the general
trade and B to B channel sectors. There was also no initiative to expand vertical sales.

At present, the company holds 15% market share and 5% growth over the last 2 years
over the company's 7 years of maturity. With the budget forecast for the coming year, the
company expects a 5% growth in its market share. Currently VOL has an annual turnover
of Rupees 1.2

Billion and Richard's main responsibility is to develop it accordingly.

 TASK 1

(A) As Head of sales, understand that Personal selling is the most important tool in
promotional mix and distribution VOL company use this tool for extensive distribution.

Justify by elaborating the impact of personal selling to Oil Distribution Company and
consumers.

1. PROMOTIONAIL MIX

 1.1 Advertising. Advertising is any paid form of media communication. This includes
print ads in magazines, trade journals and newspapers, radio and TV announcements, ,
and billboards. Advertising is a nonperson promotional activity because the seller has no
direct contact with the potential customer during the communication process. (malik
2011)

 1.2 Sales Promotions. In-store demonstrations, displays, contests and price incentives
(30% off, buy-one-get-one-free) are sales promotion techniques (malik 2011)
 1.3 Public Relations. These activities promote a positive image, generate publicity and
foster goodwill with the intent of increasing sales. Generating favorable media coverage,
hosting special events and sponsoring charitable campaigns are examples of public
relations.

1.4 Direct Marketing. A form of advertising aimed directly at target customers (usually
in their homes or offices) that ask the receiver to take action, such as ordering a product,
clipping a coupon, phoning a toll-free number or visiting a store. Catalogs, coupon
mailers and letters are common forms of direct marketing

1.5 Personal Selling. Face-to-face communication between buyer and seller.Personal

selling in VOL oral conversations and by telecommunication or ferencing or face-to- As
you can see from the figure below, the figures acquired from) clearly show that the vast
majority of sales come from purchases in local shops. There is also significant amounts
of oil purchased from mass merchandisers & warehouses, while not stipulated we believe
that many of these sales are to hotels ,supermarket and others. This is due to the growing
trend of mixing oil with spirits which is coming increasingly under scrutiny, due to a
number of high profile incidents between salespersons face, and prospective customers.

(malik 2011)

2. SELLING OBJECTIVE OF THE PERSONAL.

2.1 Informative: -Can provide the information to the requested queries of the customer
regarding the product or service, here can explain the product features, attribute and
benefit to the customer.

2.2 Persuasive: -Can influence to the buyer to take the buying decision and convince the
competitive edges to the buyer.

2.3 Relational: -To deliver promptly, customer training, installation and lenient credit
terms, after sales services and warranties.

2.4 Image Building: -Create the company’s favorable image or goodwill among people.

3. IMPORTANCE OF PERSONNEL SELLING

a) Personal Selling is one of the important tool of the promotion mix(communication
mix)
b) It in VOL minimum wasted effort
c) It result in actual sale – it is a complete promotional technique of keeping customer
satisfied
d) It is a two way communication method It complements advertising
e) It educates the customer and the society

4. IMPACT OF PERSONAL SELLING / ADVANTAGES

a) Two-way communication
b) Personal attention
c) Detailed demonstration
d) Complimentary to other promotional tools – ATL/BTL/ Publicity
e) Immediate feedback
f) Personalize /individual service
g) Flexibility
h) Retailer/ Customer confidence
i) Improve company/ brand image

4.1 Discuss step of the selling process for vol

Step 1: Prospecting and Qualifying

There are seven interacting, overlapping steps in the professional personal selling cycle

(Also known as Wheel of Personal Selling)

Prospecting and Qualifying
a) Prospecting requires salespeople to first obtain leads.
b) Prospects are potential new customers.
c) Leads are the names and addresses and details of a person or organization that may
have a need for a product or service.
d) To become a prospect, a lead must be qualified in terms of four basic criteria that can
be remembered by the acronym N A M E, as follows:
 Need or want
 Authority to buy
 Money or ability to buy
 Eligibility to buy

4.2 The Importance of Prospecting

a) Prospecting, the initial stage, is necessary for several reasons:
a) Firms need to increase total sales.
b) Customers switch to other suppliers.
c) Customers’ businesses are taken over by another company.
d) Customers have only a one-time need for the product.
e) Relationships with some customers deteriorate, and they stop buying from VOL.
f) VOL buying contacts are promoted, demoted, transferred, or fired, or they retire or
resign.
g) Customers move out of VOL territory.
h) Customers go out of business.
i) Customers die.
Step 2 Pre-approach
Prepare the prospect for the initial sales call.
Use “seeding
1. Sell the sales call appointment by prenotification using the following tools
a) cold call
b) e-mail
c) fax
d) mail
e) telephone
 4.3 Identify the product features, advantages, and benefit(FAB).
a) Identify the features of the products being considered for this sale.
b) Enumerate the advantages of VOL products relative to Competitors ‘products.
a) Determine benefits to the prospect of each product feature and/or advantage (FAB
information to be used in sales demonstration and presentation

5 CHOOSE THE BEST SALES PRESENTATION STRATEGY.

a) Customer-oriented salespeople identify and solve customer problems by skillfully
observing, listening, and asking probing questions.
b) Most successful salespeople learn how to “flex” (adapt) their communication styles in
accordance with their prospects’ communication styles.

6.1 The Sales Presentation and Demonstration

a) Ask qualifying questions to uncover needs.
b) Present products and services that will satisfy needs.
c) Stimulate desire for offerings with the demonstration.
d) Highlight their features, advantages, and benefits:
 Features are the obvious characteristics of the product.
 Advantages are the performance traits of the product that
show how it can be used to help the customer better solve
a problem than present products can.
 Benefits are what the customer wants from the product.

6.2 Negotiating Sales Resistance or Buyer Objections

a) Objections are statements, questions, or actions by the prospect that indicate
resistance or an unwillingness to buy . . . at least at the moment..
b) The first person who reached the prospect would make the sale.
c) Serious negotiations seldom begin until the prospect's objections surface.
d) Step 6: Confirming and Closing the Sale

e) The more closing strategies the salesperson knows and can effectively apply, the
greater his or her chances for closing the sale.
f) Five widely used closing techniques include these:
1. clarification closes
2. psychologically oriented closes
3. straightforward closes
4. concession closes
5. lost sale closesi

6.3 Following Up and Servicing the Account

a) To maximize customer satisfaction after a sale, salespeople should consider the
following basic service strategies:
b) Express appreciation for the customer's business.
c) Make sure products are delivered and installed on time.
d) Assist customers with credit arrangements.
e) Help customers with warranty or service contract

7.SPECIFIC CLOSING TECHNIQUES FOR VOL

7.1 Alternative Close

Slight nod when offering the preferred choice. This can be accompanied by subtle
Technique

The alternative close works by offering more than one clearly defined alternative to the
customer.

The number of alternative should be very few - two or three is often quite adequate. If
VOL offer too many alternatives, the customer will then be faced with a more complex
problem of how they choose between the many alternatives offered.

Note that this technique works well in many different situations where VOL are seeking
agreement, and not just selling products.

An extra technique that can be effective is to add a verbal emphasis on the words.

Examples

Would VOL like one bottale or two?

Which of these three oil seems best for VOL?

Shall we meet next week or the week after?

How it works

The Alternative Close is a variant on the broader-based Assumptive Close and works
primarily through the assumption principle, where VOL act as if the customer has already
decided to buy, and question

7.2Assumptive Close
a) Technique
The Assumptive Close works by the Assumption principle, where acting confidently as if
something is true makes it difficult for the other person to deny this. For them to say
VOL are wrong would be to cast themselves as an antisocial naysayer.

Note: This is one of the most common closes used. Many other closes, such as the
Alternative Close are variants of the Assumptive Close. Left are which of a limited
number of options they should choose.

7.3Concession close
b) Technique
Offer a concession of something they want in return for them buying the product.
VOL can be explicit about wanting an order in return for the concession or VOL can give
the concession without asking - the other person will very likely still feel they owe VOL
something for it.

8 Sales approach:
The sales approach is the step by step proposal developed by a salesperson or accompany
to make the sales process effective. A well-developed sales approach is what sometimes
differentiates an incompetent salesman from an experienced salesman. With the passage
of time, increasing competition and customer demand, approaches have resorted to
customer relationship, partnership, collaboration, etc. to justify the sustainable stakes of
the sale. With this in mind, an attempt has been made to discuss different approaches to
illustrate the path of sales on theoretical roads, which also gives us a brief understanding
of the evolving transition of sales practices.
 1. AIDAS approach
2. Need satisfaction approach
3. Right set of circumstances approach
4. Buying formula approach
5. Behavioral equation approach
6. Consultative approach
7. Customer relationship-based approach
8. Problem-solving approach
9. Teem selling approach
(sales approach 2011)

8.1 AIDAS approach

AIDA is an acronym that stands for Attention, Interest, Desire and Action. The AIDA
model is widely used in marketing and advertising to describe the steps or stages that
occur from the time when a consumer first becomes aware of a product or brand through
to when the consumer trials a product or makes a purchase decision. Given that many
consumers become aware of brands via advertising or marketing communications, the
AIDA model helps to explain how an advertisement or marketing communications
message engages and involves consumers in brand choice

(powell 2017)

Attention - The consumer becomes aware of a category, product or brand

usually through advertising

Interest - The consumer becomes interested by learning about brand benefits & how the
brand fits with lifestyle

Desire - The consumer develops a favorable disposition towards the brand.

Action - The consumer forms a purchase intention, shops around, engages in trial or
makes a purchasein a purchase are

8.2 Need satisfaction approach.

Need satisfaction selling is a sales approach where the sales person probes into the
needs of the consumer, both stated or expresses needs and unstated or tacit needs and
then prepares his sales pitch or presentation in accordance to these needs in order to
satisfy the consumer..

a. Open: This is where the salesperson opens his or her presentation to the consumer to
start the selling process.
b. Probe: Here, the sales person asks various questions to the consumer and listens to
him carefully in order to understand his needs fully. Generally, in this stage, the
expressed or stated needs are found.
c. Support: Here, the sales person shows that the customer’s needs are genuine by
supporting him in his argument and approach. In this way, the sales person can
extract more information about the customer’s needs, generally the tacit or the
unstated needs.
d. Close: The sales person makes a value proposition to the customer which satisfies
his needs and closes the transaction.

8.3 Consultative approach

Consultative sales is a selling method in which the salesperson spends time with the
customer to understand the problem the customer is trying to solve and then
recommends a solution that will specifically address that problem. Helping the
prospects to identify and meet their needs and post purchase situations are the task of
consultative selling. Proper diagnosis of the needs of the prospects is the starting
point of the consultative selling .A sales person examines the needs and wants of the
prospects and understand the various dimensions of their problems to find suitable
solutions to their problems.

Under consultative selling, a sales person helps prospects to solve the following
problems.

a) Need problem
b) Choice problem
c) Customer feedback problems
d) Product use problems
e) I think this method is most suitable for the VOL. because vol has four kinds of
oils. There for we should attention needs and wants of the customer and help them
to solve their problems about oils.
TASK2
The national sales manager in VOL IS targeting on increasing them market share up to
15% to 20% by 1 year. now sales targeting 1.2 billon then after one year sales achieve
1.6 billon.this target the bellow mentioned corporate strategy could be recommended.
The corporate strategy refers to the overall choice and distribution of a corporation and
way in which is various business operation work together to achieve above goals. There
are different corporative strategies can be applied

1.DEVELOPING A CORPORATE STRATEGY

(matrix n.d.)

1.1 Market Penetration - focus on selling VOL existing products or services to VOL
existing markets to achieve growth in market share.

1.2 Market Development - VOL focus on developing new markets or market segments
for existing products or services.
1.3. Product Development - VOL focus on developing new products or services for
existing markets.

1.4. Diversification - VOL focus on the development of new products to sell into new
markets.

Market development is the second market growth strategy in the Ansoff matrix. This
strategy is used when the firm targets a new market with existing products .the Market
development strategy is most suitable for the VOL to increase the current market share by
5%. Already VOL distribute their oil products in central province only. we can start new
distribution channel in western province. we should identify what are the prospect
markets in western province. we can gather lot of hotels and restaurant ,supermarket, and
other grocery shops . vol company decided to most suitable to this strategy to
development by western province. Because western province are varse population area
in sri lanka and good territory for marketing sales. .

2. Geographic Organizational Structure

a) Organization means the systematic coordination of the functions essential to
achieving organization objectives. the objective of sales organization ,therefore, is the
performance of various activities necessary to promote sales. the functions of Vol
organization can be classified as follows

There are different sales organizational structures to be applied and I as the National
Sales Manager of VOL would present the following mentioned sales structure for VOL
sales force. This proposed territorial sales force structure has 60 number of sales force
and this can be presented here.
Geographic Organizational Structure

CEO

Western province Sales manager1 Central province sales manager1

1manager
Division sales manager 1 Division sales manager 1

Area manager 5 Area manager 3

Sales people 25 Sales people 15

The National Sales Manager is responsible for achieving the company's sales, with
NSM's primary goal being to achieve a market share of 15% with market growth of 5%.
He supervises two managers such as Area Sales Manager, Area Sales Manager and Key
Account Manager. The regional sales manager would be responsible for running the sales
team in the region. This total revenue is also monitored by the National Sales Manager.
Regional Sales Managers are responsible for monitoring and achieving the sales target in
each region through the contribution of distributors' sales representatives and agents.
Structure and those that can be identified. First, the benefits are illustrated here. This
distribution structure allows for adaptation to different market conditions, weather
conditions, competitive conditions, etc. This distribution structure covers intensive, cost-
effective market coverage so that the tool is available under the supervision of sales
personnel.

2.1vimal oil company Geographic Organizational Structure in advantage

The vol market operates on an local market scale. The market is an oligopoly which is
dominated by a small number large prospectors, this is demonstrated below in . It is
however clear that vol . These companies are increasingly obtaining new customers at
the expense of vol manufacturers such as other oils
Disadvantages:

a. Sales reps have a hard time developing product or market specialization (unless the
organization commits to specialized sales forces allocated by geography)
b. Territory sizing can be a challenge, resulting in uneven revenue/opportunity across
geographic

Having analyzed the above advantages and disadvantages, I would be suggesting this
sales structure to achieve the company sales targets as well as to achieve 15% market
share and 5% annual market growth.

3..Deciding Sales Territories

This task is providing a suitable method of deciding sales territories for this Vimal oil
Company. There are many methods to decide sales territories but I would like to
recommend “Market build-up method”. The detailed analysis and application of this
method is as follows.

3.Market build-up method

In this method, the territories are developed by combining small geographical or control
units together. The method calls for equalizing the workload of sales people which relates
to the number of calls a salesperson is expected to meet. The number of calls defines the
number of time a salesperson visits a customer in a year. This method

Following steps.
a) Determine optimal call frequencies
b) Determine the number of calls required for each control unit
c) Determine workload
d) Draw tentative territories
e) Construct final territories
f) Determine optimal call frequencies

a. Determine optimal call frequencies

The first step this Market Build-Up method is determining optimal calls frequencies. The
Sales Reps of vimal oil company, should be set at an optimal level in order to a sales rep
is able to realize the sales potential. Beside this, the nature of the current market, buying
methods of customers, average cost on one call, nature on competition of oil suppliers,
and the support of distributors influence call frequencies. Covering the sales territory for
vimal oil stands out on the premise of attaching the right importance to the right customer
groupings. It goes without saying that high-sales potential customers need maximum
attention from sales reps and vice-versa.

b. Determine the number of calls required for each control unit

The second step is determining the number of calls required for each control unit. The
number of calls for each control can be determined number of accounts in each unit
mollifying by call frequency. After this step, the workload would be determined.

c. Determine workload

This refers to the total number of call that a sales person makes in a year. The fourth step
is to draw tentative territories. According to this technique, the company VOL adds on
neighboring territorial control units which share common borders with it. This process
continues until the yearly number of calls needed in these units equates to the total
number of calls a Sale Rep of VOL is able to make.

d. Construct final territories

The final step is to construct final territories. Territories need reconstruction when
workloads of sales reps of company VOL are not equal. A strong competition in a
territory demands higher workload compared to that where it is week. This Market
buildup method is being proposed to decide the sales territories of Vimal Oil Company.
There are other types of methods to decide the sales territories but I wish to propose this
market build-up method to apply by vimal oil company.

4.Sales force automation

SFA is an integrated application of customizable customer relationship management
(CRM) tools that automate and streamline sales inventory, leads, forecasting,
performance and analysis.

Sales force automation, would increase sales person productivity, allow for better
management of marketing resources, and provide a competitive advantage. Allowing the
Marketing department to see what tactics are being best utilized by their sales force
allows for greater control in target marketing. Target marketing has proven to be more
effective for sales volume that blanket marketing campaigns. Having a better idea what
marketing tactics are being effective allows you to spend more of your resources on that
tactic. Better resource management regardless of area provides a competitive advantage
Benefits
a) Save Time
b) Improve Customer Service
c) Increase Revenue
d) Management
e) Manage Sales Teams
f) Improve company image
g) Improve employee motivation and satisfaction

(malik 2011)
Conclusive
I would like to take this opportunity to thank all the NDSM class colleagues and all SLIM
employees for the great help I have received. I also want to pursue my other PG in
marketing in this institution.

I would like to say that at the end of this assignment, I was able to improve my
knowledge of personal sales, business approaches and business strategy and SFA
systems. The VOL sales team can achieve the expected sales growth and increase the
current market share by 5%.

The sales manager of VOL can achieve the expected sales growth and increase the
market share with the right decision of the management
Bibliography
malik, pradip kumar. sales management. india: oxford univercity, 2011.

matrix, ansoft. askwillonline.com. n.d.

powell, benjemin. salespop.piplinersales.com. 10 23, 2017.

sales approach. n.d.

sales management. india: oxford univercity, 2011.

sales marketing for sales. "scribd." n.d.