Bus 221 PROFESSIONAL SELLING

ASSIGNMENT #1

NAME: Karanveer Singh Purba

STUDENT ID: 300138860

PHONE: 08699319354

E-MAIL: pkaranveer@gmail.com
SECTION: 02, Friday Morning
SUBMITTED TO: Dr. SHYAM VYAS.
DUE DATE: Sept 22, 2016
DATE SUBMITTED: Sept 22, 2016
Major competitors of this organization-

Herbal life and Forever Living etc.

Market size

It has a huge market share of 37% of the whole direct selling market

What is the ONE MAJOR bottleneck that restrains the companys growth?

(Is it Technology, is it Production, is it Finance, Is it Market/Consumer

Resistance)?

Mr. Singh describes that its not consumer resistance but a misconception which is sowed in

peoples mind. Consumers perceive Amway to be a chain system of distributors who try to push

sales, but actually it is a network of, by and for the consumers.

What is the role of sales, and its importance in achieving firms marketing

success? (verbatim)

Sales are the soul of Amway because its the bottom line. If there will be no sales, no customer

is coming in then at what will an owner direct his marketing efforts. He said Basically, at first

you need to define a purpose, chalk out a plan at second, develop a sales strategy at third and

finally a strategy for growth. Sales are the only way to bring in money so it holds prime

importance. At Amway no middle man are involved and there is direct selling and distributors

only.
What is the importance of / how important is sales training, market

research, understanding consumer behaviour and competition, target

marketing & segmentation for effective sales - with reference to the products /

services and markets in which his/her company operates? (please dwell on

what the decision maker has to say about these concepts referred above) How

does the decision-maker rate the overall effectivity of his companys sales

organization?

Giving a full-fledge training is very important, especially at Amway because training provides a

profound understanding of the companys product to a salesperson. He said in a mocking way

that without market research, we dont even bring a veggie in our house so, selling involves a

lengthy decision making process. Prior to selling a product a salesperson must know that is it the

product which a customer is looking for or does it suit his/her requirements. Dividing the

markets into segments gives a clear understanding of the target market.

We at Amway have a good orientation and have an in-depth understanding of what are

customers expect of us and what must we deliver. Said Mr. Singh

How many sales people do you have in your company? How many

territories is the market divided into? What reporting structure for sales

professionals in your organization? How much money (budget) does your

company spend in training sales professionals

under him.

The market of Amway is divided across 108 territories

No reporting, because distributors have separate identity so they need not report back.

But yes, we our distributors are always called upon to gain precious insights or suggestions from

them because the distributors are public face of Amway.

Company spends around 4 to 5 lacs per year in in-house training its employees at India. But,

globally external sales professional visits take place.

Does your company use in-house training or brings in external training

professionals to train sales professionals? How many distributors /

wholesalers and dealers / retailers does your company have in the market as

channel members through whom it distributes company products? Is there a

separate sales department or are both sales and marketing depts. clubbed

as one dept.? Does selling always involve making presentations (oral or

written) to decision-makers / customers? How important is relationship

selling and creating a continuing relationship with customers?

There are 15-16 lacs active distributors of Amway.

Both sales and marketing depts. are clubbed together.

Mr. Singh says Yes, selling always involves making presentations because we need to showcase

our products to customer and communicate to him the features of our products visually as well as

written.
Most important, if this fruitful result has been achieved then you can say that yes your immense

hard-work has paid off, but this wont mean that now you can sit and relax. In order to maintain

a continuing relation you must put in continuous efforts because tastes of consumers keep on

varying.

What target market and consumer segments is the company addressing

directing the marketing effort at? Are there really different segments in the

total market? Kindly elaborate. What kinds of presentations do salespeople in

his firm make to decision-makers?

It addresses every segment because it has a variety of products but particularly on women of age

group 30-55 years.

Presentations are timid, invasive and appealing. Most product of Amway are economical and

environment friendly.

Is any one of the four Ps more important from among - Product, Price,

Place or Promotion decisions?

All the 4Ps are equally important says Mr. Singh.

What is / are the mechanism(s) vide which the company furthers its

understanding of the market / consumer / channel members / competition?

(Be specific). Will the company do better this year than previous year or not?

Main reason why? Is it because of sales effort?

surprisingly during recession we grew by 20%. The company will certainly do better than the

previous year because it growth rate is quite high. We are trying to invite potential seller from all

over the world to generate a pool of talent. This company offers the freedom to give franchisees.

Discuss at least one decision the firm took to improve sales levels in the last 12

months.

Amway has recently planned to focus on growing sales level in India and giving more

employment opportunities, because of Indias huge population and the fact that 65% people are

below 35 and all are ambitious.

500 crores were recently given to start their own factory at Madhurai, Tamil Nadu.