Sales Strategies of Avon- Report

Added on -2020-02-14

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Sales Planning and Operations
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1LO 1.1 How personal selling supports promotion mix................................................................1LO 1.2 Buyer behavior and decision making process in different situations..............................3LO 1.3 Role of sales team in marketing strategy.........................................................................4TASK 2............................................................................................................................................5TASK 3............................................................................................................................................5LO 3.1 How sales strategies are developed in line with corporate objectives............................5LO 3.2 Importance of recruitment and selection procedures......................................................7LO 3.3 Role of motivation, remuneration and training in sales management.............................8LO 3.4 How sales management organizes sales activity and sales output..................................9LO 3.5 Use of database in effective sales management............................................................10TASK 4..........................................................................................................................................11LO 4.1 Sales plan for Makeup – Avon Color............................................................................11LO 4.2 Investigating opportunities to sell internationally.........................................................13LO 4.3 Investigating opportunities for using exhibitions or trade fairs....................................15COCNLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
TABLE OF FIGURESFigure 1: Components of Promotion Mix........................................................................................2Figure 2: BCG Matrix- Avon..........................................................................................................6LIST OF TABESTable 1: Sales Plan.........................................................................................................................12Table 2: PESTLE Analysis............................................................................................................14
INTRODUCTIONSelling is an integral part of working of a business organization. For an enterprise to besuccessful, a lot of attention has to be paid towards selling aspect. It is important also from viewpoint that it is one of the areas where firm gets an opportunity to interact with customers andbuild relations with them (Calvin, 2004). Today a lot of changes and developments havehappened in sales scenarios, mainly due to rise of internet based platforms like e-commerce. Thishas forced companies to develop new ways to sell their products and/or services. The present report consists of a sales plan that Avon, a leading cosmetics company.Through discussions have been made in the report explaining concept of personal selling, how itfits within company’s overall marketing strategy. Different selling stages also have beenexplained in the report. A sales presentation for Avon has been made in the essay that essentiallyaims at enabling company’s management to improve its sales performance and thus improve itsstanding in the market. Additionally an analysis has been made in the report that explains waysto develop sales strategies in accordance with the corporate objectives of Avon. TASK 1LO 1.1 How personal selling supports promotion mixPromotion can be defined as a process of interacting and communicating with targetcustomers. Firms can reach out to the customers and inform them about products and/or servicesoffered. There are five main components of promotion: advertising, personal selling, directmarketing, sales promotion, and public relations (Jobber and Lancaster, 2003). Personal sellingis a tool of promotion mix. For any company to use elements of promotion effectively in itsmarketing strategy, then it has to pay a lot of attention to personal selling. It is a tool where acompany representative or sales person reaches out to and interact with the customers andprovides them information about products and/or services of the firm. Companies use it as amethod to build and maintain relations with customers as well as to understand their opinions. 1
Figure 1: Components of Promotion MixThere are various types of personal selling techniques. It includes likes of personal andimpersonal communication, push-pull strategies, etc. The main objective of using personalselling is two-fold. One of them is to build relations with target customers; while the other one isto increase sales and improve efficiency of marketing strategy used by the firm (Schwartz, 2006).Various studies and practical examples have proved that personal selling has a major role insuccessful use of promotion mix and marketing tactics of an organization. Promotion mix worksat a larger level, while personal selling develops one-on-one relations with customers. Thismeans personal selling is a bridge between company and customers. Therefore impact that it hason promotional mix is significant (Oliva and Watson, 2011). A good promotion mix includes different elements of personal selling. For instance,Avon, promotion mix uses both push and pull strategies to sell its cosmetic products tocustomers. To ‘push’ the product, company provided incentives and bonuses to its existing salesagents to hire more people and train them to sell the products. Similarly to attract the customers,technique of door-to-door selling was used, where they had to visit the client and give ademonstration of product(s) to them. This developed a positive image of company in the marketthat eventually enabled it to build a large customer base and become one of the leading firms incosmetics industry (Grimson and Pyke, 2007). 2AdvertisingAdvertisingPersonal SellingPersonal SellingDirect MarketingDirect MarketingSales PromotionSales PromotionPublic RelationsPublic Relations
LO 1.2 Buyer behavior and decision making process in different situationsUnderstanding buyer behavior and decision making process of a customer is an integralpart of personal selling. A sales person must understand how people make decisions and thevarious factors that affect their behavior while buying goods from them (Feng, D’Amours andBeauregard, 2008). Essentially there are two different situations in which buyer behavior anddecision making process of the customers differ – repeat buy and new buy. People or thecustomers would behave differently in different situations. Thus for sales people and marketingmanager at Avon it is important that they understand these circumstances as well as behavior anddecision making process used by the customers. Various factors influence buyer behavior. Theycan be categorized as personal, social, psychological, cultural, environmental, etc. (Thomé andet. al, 2012). For management at Avon it is important that they evaluate all these factors tounderstand the way customers behave while making a purchase decision.Cultural factors includes elements such as perception, learned values, needs and desires,etc. They are related to surrounding environment of the customers such as their family, friends.On other hand, personal factors are directly associated with the concerned individual. Personalityfactors like traits, educational qualifications, character, age, gender, etc. affect the way peoplebehave while buying Avon’s products (Affonso, Marcotte and Grabot, 2008). For instance, sinceit is a cosmetics company, men would never make a purchase decision, simply because they haveno knowledge about such products; but women will decide by thoroughly searching for desiredproduct. Similarly, numerous factors influence customer’s decision making process. Here aspectssuch as motivation, perception, knowledge, beliefs, and attitudes are critical. If an individual ismotivated, i.e. either there is an urgent requirement of a particular product or if she likes a good,then their purchase decision would be skewed, as they will want to purchase the product(s)anyhow (Katz and Green, 2009). Therefore it can be said that motivation levels have asubstantial impact on decision making process of the customers. The following points explainsthe two situations and factors affecting buyer behavior and decision making process. New Buy: Here a customer buys product(s) from company for the first time. In thissituation their behavior can be classified as very curious in nature. This means theywould ask a lot of questions and will have numerous doubts (Thomé and et. al, 2012).Further they will also not be very clear about which product of Avon can satisfy their3

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