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Sales Management

Sales Management

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Published by: mailonvikas on May 16, 2012
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IIMM/DH/02/2006/8154, Sales Management
Q1. (a) In modern times, due to competitive market, importance of effective sales approaches hasincreased many a times. Explain the current sales approaches adopted by various organizations. Answer:-
A
sale
is the pinnacle activity involved insellingproducts or services in return for money or other compensation. It is an act of completion of a commercial activity.A sale is completed by the seller or the provider of the goods or services to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and duesettlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price he is happy to part with ownership of or any claim upon the item. The purchaser, though a party to thesale, does not execute the sale, only the seller does that. To be precise the sale completes prior to the paymentand gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale is still valid and gives rise to anobligation to pay.Anything that comes off as stereotypical sales sucks. Jeffrey Gitomer makes a great point when he says that people love to buy, but hate to be sold.There is one method that is not mentioned, and it's probably because there is a delicate balance betweenexecuting it successfully or simply blowing it up. I'm referring to those who know the industry, work flows, processes, etc. so well that if you come off too strong with your knowledge, experience, etc. - it can bethreatening to the prospect, especially one that might be hesitant to sell you up the chain, as they are fearful youwill expose their weaknesses.Professional sales people, especially those in niche industries like Medical, Science, Law, etc. can all easily fallvictim to this, without ever knowing it, and with no ill intentions.
Current Sales Approaches
Today many companies are concerned with developing long term customer relationships. They are demandingmore from their sales people and sales managers. Some of the modern sales approaches include:
1.
Business partnering
is "the development of successful, long term, strategic relationships betweencustomers and suppliers, based on achieving best practice and sustainable competitive advantage"(Lendrum,1997).The mission of Business partnering and the key-aspects of the discipline has been developed recently in thetourism field. The mission of Business partnering (for tourism) consists in "creating, organizing, developingand enforcing operative (short-term), tactical (medium-term) and strategic (long-term) partnerships" (Droli,2007).
ExamplesJoint selling
is an example of operative partnering activity. Account intelligence sharingresellingor "valuechain integration" (Child, Faulkner, 1998) are examples of tactical partnering initiatives. Joint product developmentis a typical strategic partnering activity. Partnering agreements are commonly used in the differentkind of partnerships.
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IIMM/DH/02/2006/8154, Sales Management
One example is the Strategic Partnering Arrangement in the aviation sector which was put together by the UK Ministry of Defence andAgustaWestland. Both Partners share an agreed common objective to improvehelicopter services and support to the Front Line. The MOD also wishes to provide the best value for money tothe taxpayer while AgustaWestland seeks to provide the best returns to its shareholders via a stable, long-termincome stream.
Benefits
Reduction of general costs. Business partnering can be cheaper and more flexible than amerger or acquisition,and can be employed when a merger or acquisition is not feasible.Business partnering increases the "competitive advantage" (Porter, 1985). The direct benefits of Business partnering consists in a greater competitive advantage through the co-operation (the co-opetitive advantage)and even better opportunitiers of revenues, occupation and investment in the sector of application.Business partnering creates a no more traditionally-based solidarity or "organic", but a rationale form of "mechanic solidarity" (Durkheim, 1893). Partnering takes a new approach to achieving business objectives. Itreplaces the traditional customer-supplier model with a collaborative approach to achieving a shared objective;this may be to build a hospital, improve an existing service contract or launch an entirely new programme of work. Essentially, the Partners work together to achieve an agreed common aim whilst each participant maystill retain different reasons for achieving that common aim.
2.Value added selling
is one of severalsales techniquesthat relies on building on the inherent value of a product or service. By its nature the value add technique is a more flexible and customized selling approachthat requires input from a defined range of average customers. These customers will help the sales andmarketing leaders to outline value positions that are likely to benefit the largest number of customers.The value add may not be initially apparent in the sales over view and is often tied to up-selling or verticalselling within a specific market segment. The utility of the product or service, ease of integration in to thecustomers business operations, or time saving benefits are just a few areas that may be exploited when focusingon value add.One of the more recent examples of value added selling ishybrid cars. These are cars that rely on a mix of gasoline power and electric power. The inherent value of the product is still the same. Basically it moves a person from point A to point B. The value add can be seen in several different ways. The first is the obviousfuel savings. But there is also added value in less time spent at the gas station, and the cars pollute the air lessthan a normal combustion engine. The value add in this instance is determined by the customer, and not thecompany selling the car.
3.
Relationship Selling Personal selling based on developing long-term associations with buyers(customer). These relationships will grow and prosper as the sales person provides more services, identifies andsatisfies new needs and develops more and stronger contacts with customers.
4.
Team Selling – Sales effort using multiple personnel, especially for large customers with complexneeds, sales people must work with other company personnel to provide a co-ordinate approach. This method issuitable for large, complex purchasing requirements of companies that buy multiple product lines andcustomized products and services.
5.
Consultative selling – Sales people who act as problem solvers for their customers. In their role asconsultants or problem solvers, salespeople must adapt their products or services to the specific needs of customers.
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IIMM/DH/02/2006/8154, Sales Management
Q1. (b) In organizing sales the approaches to the prospect may differ from person to person,customer to customer and situation to situation. Describe various types of approaches used. Answer:-
Sales are the ultimate goal of an organization to earn reasonable profit against satisfying customer andcosumer need; which should be converted into wants by matching the Social, Culutral, Psychological andBehavorial Factors to generate demand of prodcut.Personal selling is widely used tool to sale the product and there are some Traditional and Modern Salesapproaches used by Sales TeamTraditional & Modern Sales approaches include total 3+5=8 approaches. First i would discuss the traditionalonesCanned Sales Presentation it is prepared structured sales script memorized by Sales Man to present the product, It is widely used by telemarketers for different products as it's easy way to describe features and benefits of products, it is also used for door to door selling.Stimulus-Response Theory it is that potential customer will buy the product only if hear certain statementswhich should be presented in correct manner Selling Formula A sales approach used to lead the potential customer through different stages of buying process in persuasive manners, Its formula AIDR (attentition, interest, desire, resolve) was published in 1902which was revised by AIDA (attentition, interest, desire, action), if prospect is correctly taken through these 4different stages it will surely be a successful sales.
The sale can be made through
Direct sales, involving person to person contact
Pro formasales
Agency-based
o
Sales agents (real estate, manufacturing)
o
Sales outsourcingthrough direct branded representation
o
Transaction sales
o
Consultative salesComplex sale s Approach -
Complexsales
, also known as
Enterprise sales
, can refer to a method of trading sometimes used by organizations when procuring large contracts for goods and/or serviceswhere the customer takes control of the selling process by issuing aRequest for Proposal(RFP) andrequiring a proposalresponse from previously identified or interested suppliers. Complex salesinvolve long sales cycles with multiple decision makers. Multiple stakeholders and stakeholder groups contribute to every complex sale.Any product or service may become a complex sale. In some instances a complex sale occurs whenthe market is mature and the stakes high enough to warrant attention from a variety of stakeholders inthe buying organization. In other instances a complex sales process is needed when the buyer hasnever had experience with the vendor, technology being sold, or if the solution is business critical or 
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