MCOM 2nd Year Transferability Analysis Study Material Notes

IMPORTANCE OF PERSONAL SELLING

The importance of personal selling varies from industrial products to consumer durables and to consumer products. For industrial products, computo sat products to Dec etc., personal selling is essential to provide technical information of the product the However, personal selling plays vilot role in international marketing even to consumer goods as the firm and its products are new to the foreign markete iti Avon and Am way used personal selling in European and Asian Countries in American international group employed 5,000 sales people in Shanghai (China) to sell his life insurance policies. The companies appoint the motives as sales in personal for their personal selling as they are better aware of country’s culture th and build the relationship.

Personal selling have following importance to the different group :

1. For the Traders and Manufacturers. Now-a-days marketing of goods & and service is very difficult because in the market many competitors are available » or present and everyone wants to prove himself. This objective may achieved by of using the advertising and personal selling. Advertising and personal selling 1 helpful in increasing the sale of goods. But it is not sure that they always work same because sometimes, advertising personal selling and publicity do not brought the wanted issue as there is no direct contact or face-to-face communication along the customer or receiver. Face-to-face communication between the customer and sales person make secure sales for the marketing organisation and satisfaction for the customers or buyers. Personal selling is. important factor of promotional mix of any organisation. And it is able to make satisfied the consumers. Personal selling be composed of single and personal communication in opposition to the mass are impersonal communication through advertising. This characteristic give the advantage of being more flexible in operation to a personal selling. Salesperson must consider the needs, inotives and behaviour of single or particular consumer his sales presentation must be based on those informations. Those informations may be observed from the customer’s reaction to a specific sales approach and then more required adjustment on the spot. Minimum of wasteful efforts are included in persona selling. Personal selling is very helpful in choosing a right market place an concentrate only on the future customers.

Sales promotion is becoming easy through personal selling. Personal sellin is important for manufacturers and traders because it is useful to establis face-to-face contact with the customers and sell their product or servic Manufacturer may know that what things are required by customers and sell may concentrate on required products. Sales are increased by this activit Because a good salesman having a quality to establish personal support wi customers, this condition helps a business to gain permanent or regul customers which is the main objective of every business firm.

2. Importance for the Consumers and Society. Customer get the f information about the product through personal selling. Because personal selli is a momentous method of explaining the qualities and uses of a product. F explanation of product persuades a person to purchase a product or service. A

customer purchases the product after taking proper information about that because the explanation of product helps the customer to purchase want satisfying products. So, the personal selling is very important from the point of the buyers.

A good salesman guides and educates the peoples about the features and ilifur of product the proper utilisation of product is possible through sufficient knowledge of use of products. Face-to-face contact helps manufacturers to take appropriate action for satisfying the customer. If a customer is not satisfied with the existing product he may tell his queries to the salesperson and these information communicated to the manufacturers. The another advantage of this type of selling is that it can handle the cause of injury of the purchaser. A good personal seller is always helpful for the customers because it helps consumers to come to a destination at correct decision while purchasing the particular product. Personal seller acts as a guide of purchaser because he provides the accurate information about the use of product and fresh appearance of products in the place of purchase and sale or market. The customer become Jenables to know the various uses of a product and to fulfill their needs, wants and purchasing capacity. After taking the information customer can decide the best one to purchase. The customers can spend their money in purchasing different products..

It is clear that personal selling is not only act to assure firmly people to purchase particular goods. But it is an act of support them in the satisfaction of their wants. Salespersons are also useful for society. Society helps the salespersons to increase the production and it also helpful to increase the chances for employment. Salesperson provides information about product to a customer. In this way salesperson educates the people about new product and improve the standard of living of the society. Sales persons are helpful in making equilibrium between the supply and demand this condition decreases the fluctuations in price.

In this modern era every business persons know the importance of personal selling in the progress of business. These businesses spend huge amount to select a proper personal seller and for the training and maintenance of competent sales staff. The significance of personal selling is testimonied not only by its worldwide use and variety of forms but also by the obvious fact that without personal selling the whole marketing mechanism would break down.

WORLD TRADE ORGANISATION (WTO)

The World Trade Organisation (WTO) was established on 1 January 1995 as successor to the General Agreement on Tariffs and Trade (GATT) which was established in 1947. The member governments of GATT had concluded the Uruguay Round Negotiations on 15 December 1993 and the ministers had given meir political support to the results by signing the final Act at a meeting held Marrakesh, Moroco in April, 1994. The Uruguay Round, concluded at the end of 1993, reduced tariff and non-tariff barriers to trade in merchandise goods,

wzed trade in major areas such as agriculture, textiles and clothing and a multilateral rule to new areas, notably services and intellectual cy. The establishment of the WTO is the embodiment of the Uruguay sults. The WTO is headed by a director general (currently Mr. Renato

Ruggiero, former Italian trade minister) who is assisted by four deputies frein different member states. The director general is appointed by the Genere Council for a four year term alter consultations among member countries,

The World Trade Organisation provides the principal contractual obligation to determining the manner in which the member governments shall frame anor implement domestic trade legislation and regulations. It is the platform of which the trade relations among countries evolve through collective debate ag negotiations and adjudication. At present the membership of the WTO is 12 on and it is located in Geneva, Switzerland.

OBJECTIVES AND FUNCTIONS OF WTO

The essential functions of the WTO are: 

(i) To resolve trade disputes among members. 

(ii) To administer and implement the multilateral and plurilateral trade agreements which together make up the WTO. 

(iii) To act as a forum for multilateral trade negotiations. 

(iv) To co-operate with other international institutions involved in globaar

policy making. 

(v) To oversee national trade policies.

DIFFERENCE BETWEEN AND SUPERIORITY

OF THE WTO OVER THE GATT

1. Multilateral Trading System. A number of simple and fundamentas principles run throughout all of the instruments which, together make up thth multilateral trading system.

2. Predictable and Growing Access to Markets. The multilatery1 trading system, an attempt by governments to provide investors, employer employees and consumer with a business environment encourages tace investment and job creation as well as choice and low prices in the marke place. Such an environment needs to be stable and predictable, particularly businesses are to invest and thrive.

Many WTO agreements seek to ensure that conditions of investment an trade are more predictable by making it very difficult for member government to change the rules of the game at whim. In almost every oliey area whid impinges on trading conditions, the scope of members to sue capriciou discriminatory and protectionist policies is constrained by W. coramitment

3. Promoting Fair Competition. The WTO is a system of ales dedicata to open, fair and undistorted competition. Its rules on non-discrimination 2 designed to secure fair conditions of trade and so too are those on dumping subsidies, the previous GATT rules begin extended and clarified in agreements.

4. Trade without Discrimination. The famous ‘Most Favoured Nate (MFN) clause members are bound to grant to the products of other memet treatment no less favourable than that accorded to the products of any country. Thus, no country is to give special trading advantages to another discriminate against it; all or on an equal basis and all share the benefits of moves towards lower barriers.

5. Encouraging Development and Economie Reform. Over quarters of WTO members are developing countries and countries in the process of economic reform from non-market systems, who are prepared to take on most of the obligations required for developed countries. They have been given transition periods to adjust to the more unfamiliar and perhaps, difficult WTO provisions particularly for the poorest, ‘least developed countries.

6. Increased Fairness in Farm Trade. The WTO agreement on agriculture is designed to provide increased fairness in farm trade. Agreement on intellectual property will improve conditions of competitions where ideas and inventions are involved and the GAITS will do the same thing for trade in services. The plurilateral agreement on government procurement will extend competition rules to purchases by thousands of government entitles in many countries.

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