Sales management

Sales management is the management of the sales force and personal selling efforts to achieve desired sales objectives. € Sales management is the planning , directing, and control of personal selling, including recruiting, selecting, assigning, supervising, paying, and motivating as these tasks apply to the sales force. - American Marketing Association


The determination of sales force objective and goals Sales force organization, size, territory, and quota finalization Sales forecasting and budgeting Sales force selection, recruitment, and training Motivating and leading the sales force Designing compensation plan and control systems Designing career growth plans and building relationship strategies with key customers

Sales management functions

Key decision areas in Sales Management
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Deciding upon type and quality of sales personnel required Determination of the size of the sales force Organization and design of the sales department Territory design Recruitment & training procedures Task allocation Compensation of sales force Performance appraisal Feedback mechanism Managing channel relationship Coordination with other Marketing department

Major objectives of sales management
Increased sales volume € Contribution to profits € Continuing growth

Major Steps in Sales Force Management

€ ³Personal

presentation by the firm¶s sales force for the purpose of making sales and building customer relationship´. € It is a process of informing customers and persuading them to purchase the products through their personal communication, presentation & demonstration.

Characteristics of personal selling
It is an art. € It is a creative process € It necessarily involves physical presence of an individual representing the company called the salesman. € It is target oriented € It is one of the oldest professions in mktg. € It is a part of company¶s promotion/communication mix.

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Helps establishing a cordial relationship between organisation & its customer It is a creative art which creates new wants. It imparts knowledge & technical assistance to customers It is the most promising element of the whole communication mix of company because it aims at somehow selling the product by convincing the customers It helps converting µsuspects¶ into µprospects¶ and further prospects into final customers.

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It helps introducing new products Creates new wants by convincing people or persuading them To enable a customer to decide what he wants to buy and what he doesn¶t. Maintains constant relationship with customers. Helps improving the sales of middlemenretailers and wholesalers. Attains maximum sales and assists advertising and sales promotion efforts of the company.

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Creates wide range of employment opportunities Salesmen perform several non selling tasks also such as : > after sales service >meeting complaints > conducting mktg research > collecting payments > delivering goods & timely information

Major Steps in Effective Selling


1.Prospecting and qualifying
Prospecting is the process of identifying potential buyers who have a need for the products and services offered by the company, the ability to pay for it, and the adequate authority to buy it. Steps in prospecting: 1. Formulating prospect definitions 2. Searching out potential accounts 3. Qualifying prospects and determining probable requirements 4. Relating company products to each prospect¶s requirement.

2. Pre approach
€ The

salesperson learns as much as possible about a prospective customer before making a sales call € FAB analysis: Feature, Advantages And Benefits analysis

3. Approach

The salesperson meets the customer for the first time

4. Presentation and demonstration
Using Persuasive communication € Hold Attention € Stimulate Interest € Desire € ³Tell the product¶s story´

5. Handling customer objections
The salesperson seeks out, clarifies, and overcomes customer objections to buying objections as requests for information € Anticipate specific objections € Use the objection to close the sale
€ View

6. Closing
The salesperson asks the customer for an order
€ Look for

customer signals € Keep an open mind

7. Follow up
The salesperson follows up after the sale to ensure customer satisfaction and repeat business
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Ensure delivery schedules are met Goods or service perform as promised

Personal selling approaches
Stimulus response selling € Need satisfaction selling € Problem solving selling € Consultative selling

Stimulus response selling
Sales personal provides stimuli € Buyer response sought € Continuous process until purchase decision

Need satisfaction selling
Uncover and confirm buyer needs € Present offering to satisfy buyer needs € Continue selling until purchase desicion

Problem solving selling
Define the problem € Generate alternative solutions € Evaluate alternative solutions € Continue selling until purchase decision

Consultative selling

The process of helping customers reach their strategic goals by using the products, services and expertise of the selling organisation.

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