Sales And Retail Management

Module-1 -Season INTRODUCTION TO SALES MANAGEMENT Definition: Sales Management According to American Marketing Association sales management is planning, direction, and control of personal selling including recruiting, selecting, equipping, assigning, routing, paying, supervising as these apply to the personal salesforce. Evolution of Sales Management: Industrial revolution that took place in the 18th century gave rise to the expansion of market which required professional approach in selling. The history of salesmanship is as old as human civilization . The business and trade of buying and selling goods flourished over centuries and centred only on some specific cities of the world. Pheriwallahs:- The first sales people The first sales people in the US were yankee peddlers who carried clothing, spices and household articles from one part of the country to another part. In India they are called Pheriwallahs. These Pheriwallahs move from village to village and sell sarees, dress materials and spices mostly in the rural markets because rural housewives have lesser mobility than urban housewives. Pack Peddlers:- the shrewd, unprincipled tricksters: The pack paddlers in India traded with the tribal Indians and exchanged knives, beads and ornaments and handicrafts.They sold coloured sugar water as medicine and cheated people from smaller gains. In the beginning of the 19th century, these peddlers started using horse driven carts and wagons and started stocking heavier goods. Greeters and Drummers: intermediary to buyer Wholesalers and manufacturers hired greeters and drummers who would seek out and invite retailers to visit the display of the owner. The drummers would meet the passaengers form incoming train and ship with great fanfare to beat their competitiors. In the next phase, the drummers started visiting customer’s place of business. There were fewer than 1000 travelling sales people before 1860 in the US who were basically credit investigators and took orders for goods. John Henry patterson- selling Techniques:- IBM The techniques of modern sales management and selling techniques were refined by John Henry Patterson, widely known as the father of modern
Uttamkumar YV.Department of MBA, BIT, Bangalore.

Sales And Retail Management

sales management. He ran the National Cash Registry. He asked his best sales people to demonstrate their sales techniques to other salespeople. The best sales approach was printed in a sales primer and distributed to all the other sales people to follow. – Its the beginning of canned sales approach. Mr. Patterson assigned to his people exclusive territories and quotas in order to stretch their effort. He arranged meetings. He also sent regular sales information on techniques of selling. Thomas j. waterson was trained by Mr. patterson who later founded the IBM. Modern sales Management: Today the process of sales management has undergone numerous changes in terms of strategy, practice and technological adoption to achieve the desired goal. A sales person has become the information provider. The real sales activity is now in retaining customers rather than just closing the sale. This relationship approach has changed the scope of sales management and research has found that is costs five time more to register a new customer than to sell a product or service to an existing customer. The Domain of Sales Management: The domain of sales management has become multidisciplinary in which sales manager have to manage a diverse workforce and complex technologies. Sales manager have to perform duties such as recruiting, selecting, training , motivating, forecasting, controlling and administering people. They have to manage and satisfy multiple stakeholders such as customers, suppliers, sales representatives and top management with the objective of increasing sales and profitability. Importance of Sales Management: Sales Management is important for the following reasons: - The amount spent on selling product is very high. - Sales force is the primary contact point so much attention to be given for improving the ability of selling through training and motivation. - Personal selling is the most commonly used method of promotion. - In most industrial markets , personal selling comprises the majority of the promotional budget and is a significant part of overall budget. - Customer consider salesperson as the company selling the product . - With the advent of Internet technology and web based platforms for interaction with customers, personal selling has become a method of marketing communication which fosters personalized and interactive dialogue with customers.

Uttamkumar YV.Department of MBA, BIT, Bangalore.

Sales And Retail Management

Personal Selling: Personal selling involves prospecting, formulating prospect definition, searching out potential customers, qualifying, determining requirement , relating and converting them. Evolution of Personal selling strategies: - The personal selling strategies have evolved over period of last 150 years. with the beginning of peddlers in the 19th century adopting persuasion strategy to make sales. - As competiton grew and buyers had a choice to opt for a particular player, it became important for the salespeople to understand the need of the customers, which called for the modification of products, prices and other related services—Negotiation starategies became more important than mere persuasion - IN 1970s when salespeople called on the business and industrial buyers, they were told to treat the customers not just as account but as clients.Consultative selling required a seller to think like the buyer - In the late 1980s and early 1990s, a lot of emphasis was put on the mgt of territories and accounts as profit centres or as a business. He must understand the production and marketing systems of a buyer. The sales people were trained to practice business management strategies at this phase - The domestic and international competition, rising costs and recession forced attention on the need to reduce cost of producing and marketing goods. This was facilitated by a close working relationship between the sales people and customers. This called the partnership pahse in the evolution of personal selling. Types of personal selling: The approach is linked to customer choice, behaviour & risk involved 1. Industrial selling- selling to reseller 2. Selling to business users ;IBM sells Intel premium to campaq, HCL 3. Institutional selling : Xerox , Johnson and Johnson - providing support to buyer business 4. Retail selling 5. selling to Government 6. Services selling Types of Selling: - Order taker sales people ( meeting already committed customer)eg; inside order taker, Delivery sales people, outside order taker
Uttamkumar YV.Department of MBA, BIT, Bangalore.

Technology Customer Orientation Emerging Trends in Sales Manageme nt Global and ethical issues Relationshi p selling Diversity New selling Methods Uttamkumar YV. .Sales And Retail Management . Bangalore. BIT.Department of MBA. sales support salespeople Emerging Trends in Sales Management: The field of sales management is changing according to the changes in the area of personal selling.Order taker – Front line Salespeople .Order creator –Missionary sales people .

team selling. software companies have turned to crossfunctional selling for the sale of enterprise wide solutions A cross functional selling team comprises of people across all the functions such as sales. Relationship selling: This non personal form of intermediation is found in many sectors. This has changed the selling process from transactional selling to relationship selling. systems. Uttamkumar YV. It is observed that in the late 1980s and 1990s many organization started using non-traditional selling such as telemarketing. It calls for new method of sales techniques. marketing. web based e-selling technique. The basic objective of reorienting the selling strategies is to build relationship with customers. New selling Methods: The traditional selling process of individual salesperson calling on individual buyer is fast disappering in many industries. HCL technologies has full time employees at the client’s place for solving any problems relating to computer hardware. New technology has made it possible to automate the salesforce. Technology Organisations are adopting technology and integrating their business across departments. Ex:2 GE and other leading players have opened back office operations in India to attend customer complaints.Department of MBA. .Orgnaisations have integrated their requirements with vendors and vendors have adopted systems which are compatible to the enterprise-wide solutions of their customers. Structures. deliver more satisfaction to customers and retain customers for a longer period. finance. and also in terms of the performance of the selling function by an individual sales person. The long term association between buyers and sellers become the focus of business with the customers. Bangalore. Technology is having an impact in two ways: in terms of selling function as a whole.Sales And Retail Management Customer Orientation: The most important is the customer orientation in Indian organization. In the industrial sector. operations and human resource so that a holistic picture of customer’s problem can be snapped and solutions can be developed for them. BIT. EX:3 Jet Airways programe on Extra Miles for the frequently flying customers. and process are designed around customers to give them high value products and services. A company such as priceline. in the USA uses a web based sales model and practices reverse auctioning as a successful method of selling.

& skillful manipulator. Globalisation: The global legislations such as GATT and WTO and the emergence of legislation on environment make it binding for a salesforce to look at the the emergine issues in the business world and take corrective action for the business success. 6. catalyst. self fulfillment. 4. Bangalore. He should be an amalgamator. china and Malaysia demands special attention to be given structure. Ex: Modi Xerox as a company was found bribing people for selling its office equipements and photocopiers in the Indian Market. 9. . There are ample cases of bribery and cheating in the world of sales in Indian Market and organisation are being blamed and ridiculed for the misconduct of business. & planner. He should be a good communicator. & economic growth. Maintaing a certain level of ethical norm is a part of responsible commercial success. 8. approach and nature of sales force and selling techniques. and referee. He should be an innovator and creator of new ideas and promotion.Sales And Retail Management Ex: Maruthi has a sales automation process whereby all the dealer networks are linked to its production process at the Gurgaon plant and the production of different types of cars are linked to the demand patterns in the market place. umpire. a consolidator and orchestrator directing efforts of many towards the achievement of common goal. Qualities and Responsibilities of Sales Manager:Qualities:1. 5. He should be a team-mate. He should be a successful mentor who understands each individual’s needs. EX: Companies such as Archies and Hallmark use data derived from bar codes scanned at the check-out counters of retailers to supply information to their sales people. 3. The growth in consumption in the emerging markets such as India.Department of MBA. 2. 7. He should be an over achiever rising to the challenge of new forecast each year. Uttamkumar YV. He should be an opportunist and a worthy advisor. He should be capable of handling unanticipated difficulties and events. He should be a prognosticator. BIT.

A properly designed organization is a:1. flat at lower level orgn. Co-ordinates various departments in achieving objectives. point of orientation. Sales planning and budgeting. Determination of size and structure of the sales organization. rights. motivating and leading the sales force. Recruiting. Product and service related factors. which execute a combined sales plan and are designed to carry out mutually agreed goals with clear structure. roles and responsibilities for each person. Functions Influencing Structure:1. 5. 7. supported by Large sales staff. 3. FMCG products. and responsibilities. Analyzing sales volume cost and profit. 4. Estimating demand and forecasting of sales. 2. Uttamkumar YV. Defined with roles. 5. It is also a structural body through which the functions of sales management are carried out. 9. 3. Allocating of sales force and setting sales quotas. .Sales And Retail Management Responsibilities:1. Group and department. duties. morale. 6. Contributes to building morale. Measuring and evaluating sales force performance. organization related factors. Vehicle for reaching goals.Department of MBA. 2. Sales organization is organization of individual either working together for the marketing of products and services manufactured by an enterprise or for products that are produced by the firm for the purpose of re-selling. Bangalore. Monitoring marketing environment.organisation size large. selecting and training of sale’s people. Receiver of sincere. 4. hard-working employees. Elementary study of sales organizations:Sales organizations are structural entities. 2. BIT. 8. Compensating.

The line organization of encyclopedia India ltd is as shown below:Uttamkumar YV.the extent of control and authority of the top management decides the level of centralization.refers to the formal and co-ordinate task of assigning territories and establishing free flow of communication and responsibilities of sales groups and individuals to serve customer effectively.expansion – large size. Bangalore. . marketing mix related factors. The chief executive has all the authority over the sales function. 4. 3. Decentralization helps organisation to be competitive at the respective market level.large & complex. External factors:Intense competition.Department of MBA. Integration & co-ordination:The orgn across departments integrated to serve customer with effective co-ordination. E.smaller orgn.own outlet-simple orgn. International operation –large size Selective distribution. BIT. 3. Price – low price no of customers large High price  durables.chief executive does the decision making and decisions flow down the line for execution. 2. Organization principles:1. Organization Design:. Multiple channel/ varied market.No of sub and sales staff under the supervisor of an sales Manager is known as span of control. Span of control: . Centralization and de-centralization:.encyclopedia pritannica India ltd.Sales And Retail Management Organization highly specialized & niche market. Line Organization: . Limited financial resources – intermediaries for distribution If financial resource is sound. small market size.g. When new recruits have to be handled Narrow span of Control can be used or else wider span of control is preferred. organization adopt different kind of structures:1.:. Structure should respond to environment. Highly centralized organisation. The customer and tradition used in the past.Every decision will be made by the top management.sell directly to the customer.

Bangalore. The organization design is as given below:VP Mktg Ad Mgr Sales mgr Mgr mkt Research Uttamkumar YV. D Rector & head of education National sales manager Fin/legal Director Commercial Manager Accounts executive Dy sales mgr (east & west) Executive director & head of new media National Sales mgr Sales mgr (North & south) Sales mgr Asst prdt Mgr Prdt Executive Sales Executive In pure line organization the senior sales executive has direct control over their subordinates.right to give advice. line – direct control over their subordinates. 2. Organization Design by management function :Line & staff. It contradicts the principle of unity of command. Sales People . Staff.Sales And Retail Management M. BIT.Department of MBA.

Sales And Retail Management 3. BIT. . Organization design by territory: . Bangalore.several areas are combined together as a territory for assigning supervisor and then numbers of territories are combined for sales manager. Vice-president Marketing National Sales manager Divisional Mgr (east) Divisional Mgr (north) Divisional Mgr (west) Regional sales Mgr District sales Mgr Regional sales Mgr Regional sales Mgr District sales Mgr District sales Mgr Sales staff City wise Sales staff City wise Sales staff City wise Uttamkumar YV.Department of MBA.

Organization Design by Product: . Designed on the basis of the product.Sales And Retail Management Travel Times Ltd  Sales persons clock to customers  Quality of customer service (no of customers to be served is limited) 4.rotary compressor divisor RCD.D ROCD RCD AEd Engines Export D R& D A/C FIN HR RODC.ELGI equipments ltd. It has become multiproduct.automotiveVP equipment division. . The organization design is as shown below:M. At one level the company is divided as a product orgn. where each prdt division is then divided by function. Sales President mktg 5. Organization Design by Customer:Sales Mgr Industrial Customer Sales Mgr Wholesale Sales Mgr Retail sales Sales man Sales man Sales man Uttamkumar YV. multi-market company.reciprocating comp division AED. BIT. Bangalore. Established in 1960.Department of MBA.

or the customer.Department of MBA. Bangalore. Geography. BIT.combinations can be made on the basis of poduct. .  Helps in building successful customer relationship.Sales And Retail Management  Helps in buyee supplier interpractices. Organization having a diversified prdt range & serving extreme market use this structure. function. The organizational design is shown below:President VP Pdn VP Mktg VP HRD Mktg Mgr India Mktg Mgr Internationa olllllllllllllll lll GM Customer Care GM International Uttamkumar YV. Combined Organizational Design: . 6.

Incremental productivity g. Equalize Workload Method: . b.independent product business with the contractual agreement with the sales organization for a sale of its products. product mix. Classify the present & potential customer according to sales potential.Sales And Retail Management Sales Process Automation:1. this puts pressure to reduce the cost. d. sales goals. 2. 3. Automatic order placement through electronic data interchanges including (VOIP) voice over internet protocols. BIT. video conferencing. Telemarketing. Shared sales force. e. Telemarketing.divide the sales force among the number of division. Emerging organization design.There are mainly three methods of estimating the size. Bangalore. Team based selling ( sales force is grouped to solve customer’s problem) The organizational process:  Understand organizational goals.this give rise to:a. Total Customers. c. Equalize workload f.  Assign sales people.  Organize sales activities. Agency & distribution selling.Department of MBA.Customers. Sales potential. . online selling has allowed large corporate to automate much selling process. Information technology brought many changes.500 Uttamkumar YV.  Establish accountability for sales position. most of the products turning to be commodities. 4. how many sales people are needed.The following are the various steps involved in the equalize work load method:Step1.  Estimating the size of the sales force. transaction through electronic expert system. objectives. internet marketing. Estimating the size of the sales force.

45 Weeks per year (allowing vacation) 40hrs/ week* 45 weeks=1500 hrs/year.2 Incremental Productivity Method:. Step 5. BIT. Lost of goods sold remain constant at 70% of sales. Class A: 30 min/call* 150 calls/year=75 hr/yr.According to this method. Assumption: sales mgr specifies sales people ought to work 40hrs per week. Step1: estimate the increase in sales volume. Calculate the total work time available per sales person. Assumption: 1. Compute the total work necessary to cover the entire market. Divide the total work time available per sales person by sales tax. 1800hrs Step 6. cost of goods sold & gross margin from adding each sp. Each person receives 1000 per month for travel expenses. sales force should be enlarged until the profits added by the last sales person hired just equal the cost of employing that sales person. Currently there are 32 sales force.180 Class C (small) – 220 Step2. Selling task: 55%=990hrs Non-selling task: 20%=360hrs Traveling: 25%= 450hrs. Determine the total number of sales people required. . 3. All the sales people receive a straight salary of $25. Class A: 100*75=7500hrs Class B: 180*70= 12600hrs Class C: 220*40= 8800hrs 28900hrs Step 4. 2. Bangalore.000 4.Department of MBA. Class B: 20 min/call*210 calls/ year=70hrs Class C: 15 min/call*160 calls= 40 hrs. Step3. Total sales volume directly varies with the number of sales people. Sales people needed=28900hrs/990=29. and the sales mgr wants to determine whether or Not to add more sales people.Sales And Retail Management Class A (large) – 100 Class B (medium) . Estimate the length of time per sales call and desired call frequencies. Uttamkumar YV.

000/500. financial planning. Sales Forecasting Techniques: Generally.500 22.000 105.000 157.500 67.000 34 225.500 35 150. what the avg rep achieve in term of annual sales volume.000= -18. Sales Forecasting Meaning: A sales forecasting is an estimate of sales in dollars.000=500 36 22. Human resource planning and budgeting .(sal+comm.000*1. procurement.starting point for sales. or physical units in a future period under a particular marketing programme and an assumed set of economic factors outside the unit for which forecast is made. capital investment. BIT.000 36 75. +totalexp) =net profit contribution 33 $ 90. Calculate the net profit Gross margin.Assumption.000+3750+12.000+7.000 34 67.improves efficiency and effectiveness of the managers reserve allocation process.500-25.Sales And Retail Management Sales person no sales roles cost of goods GM 33 $ 300. .000 90. Bangalore.500 Step2. production. Purpose: -viewed as a central part of strategic planning . there are two approaches to sales forecasting a) Break Down approach b) Build up approach Uttamkumar YV.000-25.000= 38. marketing planning. N=s/p*(1+T) N= no of sales people needed S= annual sales forecast for the comp P= estimated sales productivity of the avg sales person.000+15.000 52. scheduling. T= estimated % of annual sales force turnover.000+12.000-25.250 35 45.000+11.250 Add 3 more 32+3=35 Sales Potential Method: .000 45. N=$10.500-25.500+12.000 $ 210.20=24. inventory management.Department of MBA.000.250+14000=19. cash flow projection.

Department of MBA. Bangalore. Judgemental method and Counting method. 3) Determine the share of this market that the company currently holds and likely to attain. . 4) Forecast sales for the product.Sales And Retail Management a) Break Down approach: 1) Start with a forecast of general economic conditions. 5) Use the sales forecast for operational planning and budgeting b) Build up approach Simply asks individual what they expect to sell in the coming period or surveys customers about what they expect to buy and then sum their responses for a total forecast Sales forecasting techniques can be classified in to two: 1) Non – quantitative techniques Judgemental Methods a) The jury of executive opinion b) The Delphi Method c) Sales force composite method Counting methods a) survey of buyers intention b)Test Marketing 2) Quantitative techniques Time series anaysis a) Decomposition method b) moving average method c) Exponential smoothing Causal or association method a)Correlation/Regression Analysis b)Econometric Models c) Input/output Models Non – quantitative techniques: Non quantitative techniques can be further classified into two. BIT. Uttamkumar YV. 2) Estimate the Industry’s total market potential for a product category.

mere extrapolation of last period sales will give the best estimate of next period sales. Viable technique when there is no historical data. a) The jury of executive opinion: A jury may consist of company president and several executives from different functional areas calculating rough average of their opinion yields the sales forecast. adjusted and compared with forecast from other sources. (Opinions. Advantages: Determined by product users. b) The Delphi Method: Developed by RAND Corporation. s3: Each expert is asked to submit another forecast again revise feed back from the coordinators. s2: Coordinators analyze the forecast and sends each member an average forecasts.Sales And Retail Management Judgmental Method: Use judgment.Relatively fast and inexpensive. Advantages: can be done easily and quickly Disadvantages: highly subjective. All the responses are then combined into one forecast. c) Sales force composite: it combines each sales person’s estimate of future sales in his or her territory into a total company sales forecast. s1: Expert panelist are asked to make their forecast anonymously and then send them to group coordinators. Uttamkumar YV. expectations can be re. Bangalore. it depends on the advice of a group of experts. . beliefs. Counting Method: a) Survey of buyers intention: .Department of MBA. This process continues until a near consensus is reached.evaluate and changed but without the dominant influence of any one participant). The total forecast is then analyzed.Customers are sampled and asked about their intention to buy various products over a specified period. BIT. not closely attended to market place.

BIT. (war. 4 basic factors or types of measurement taken into consideration:  Trend (T) :. Measures of market share (based material and repurchase rates) in these small markets can be scaled up for forecasting sales in the total market. Step1: Consider the set of actual data.upward or downward movement ( development in technology. capital formation)  Period (P) :. b) Test Marketing: It is a “full dress rehearsal” conducted in limited market area to obtain consumer reaction prior to expanding to and the regional or national market. To remove the seasonal fluctuation from the data to make them comparable to normal sales figures.  Erratic (E):. Bangalore. C. then cyclical element.Department of MBA.wave like movement. often irregular in occurrence. Uttamkumar YV. Quantitative Forecasting Techniques: There are two types of quantitative Techniques: Time series analysis Causal or Association method a) Time series analysis: Focus on historical data.are time specific event. Buyers’ intention can be inaccurate.Isolates the components of time series data . E) a-1 Decomposition Method: . multiply these historical sales figures by seasonal index.Sales And Retail Management Disadvantages: Expensive in market where buyers are numerous. Market affected by cyclical fluctuation.First seasonal pattern is removed. strike) Y (sales) = f (T. P. analyze past data to predict future sales. . finally forecastors considers the input of erratic movement.consistent pattern of sales movement (seasonal variation)  Cyclical (C):.

00 183.69 = 142 To transform the deseasonalised sales figure multiply by appropriate index.3%.85 = 129.Sales And Retail Management Historical Sales Year Quarter 1 2 3 4 2003 110 98 150 190 2004 113 83 142 193 2005 120 99 149 193 3 year average quarterly Seasonal Index 114. A simple line extension forecast for 4th quarter would add 52 units to 150 for a sales forecast of 202 units. -Sales increased from 98 to 150 between the 2nd and 3rd quarter of 2003.69 1. Bangalore. indicating a rising sales trend of 52 units per quarter.33/134. then estimated sales for 3rd quarter would be 142 times the seasonal index for the Since actual sales for 3rd period of 2003 were 150(1st table) our forecast missed only by 3.Department of MBA.36 Note: Sales are cited in units:  First quarter seasonal index 114.58 = 0. -But the following table shows that there was no significant increase in sales once the seasonal pattern of sales is removed: Deseasonalised quarter 1 2 3 4 sales Year 2003 129 142 138 142 2004 133 120 130 124 2005 141 144 137 142  Sales in units are compiled by dividing actual sales by the applicable seasonal index 110/0.09 1. If the sales data had not been deseasonalised the Uttamkumar YV.33 147.33 93. BIT. Seasonally admitted sales in 2nd quarter 2003 -142.33/134.58 = 0.69  3 years total sales of 1615/12 quarters = 134. 98/0. .58 Average sales per quarter.85 Second quarter 93.85 0.67 0.

Bangalore. Ft + 1 = α St + (1 – α) Ft Where: Ft + 1 = time period that is to be forecast α = Alpha or smoothing constant St = current period actual sales Ft = current period forecasted sales b)Causal or association Method: Uttamkumar YV. a-2 Moving Average method: F t+1 = St + St – 1 ………. .33% Instead of relying on just one period to predict sales. Actual (missing) is 3.moving average is sufficiently responsive to the most recent trends (Exponential smoothing overcomes this) . St – n + 1 N Where: Ft + 1 = forecast for the next period St = Sales in the current period St – 1 = Sales in the previous period n = number of period in the moving average a-3 Exponential smoothing: .3% (142-150)/150 = -5.3% [(155 – 150)/150] = 0. time series frequently use several periods of historical sales. BIT.Exponential smoothing modifies moving average method by systematically stressing recent sales trend while deemphasizing old sales data.3%.Sales And Retail Management forecast for the 3rd quarter would have been off 5.Department of MBA.

. or move together in some way. Bangalore. This technique tries to find correlations without implying cause and effect.Both correlation and regression analyses usually start with the graph of paired data values. Regression: attempts to predict how one variable such as sales is affected by change in another variable.5 Y=a+bX b=n∑XY-∑X∑Y/ 239 59.75 xy 43 104 219 284 650 X2 1 4 9 16 30 Uttamkumar YV. The correlation –regression is one type of causal method. such as advertising expenditures .Sales And Retail Management It attempts to find the factors that affect sales and to determine the nature of that relationship. 2. Simple Regression: Year x Sales (units)Y 1 43 2 52 3 73 4 71 Sum 10 Avg.Department of MBA. Correlation-regression analyses: Correlation: variables are studied simultaneously to see whether they are interrelated. or a scatter diagram. BIT.

meeting different types of customers). bargaining power.Sales And Retail Management Module-2 Selling skills and selling strategies  Selling skills are the most important requirement for the sales people as to meet Organization goal.  Buying styles of different buyer Consumers buying styles: Uttamkumar YV.  The selling skills can be acquired by sales person through proper training and exposures. the buyers ability to take risk. the competitive landscape in the industry. BIT. quantity of purchase. increase organization image and to retain existing customers. As the sales job is more stressful in nature. Bangalore. the salesperson should posses right kind of skill to cope up with it. .Department of MBA. (because most of the times he is away from his family. Selling skills helps sales people to establish and maintain long term relationship with customers. Selling & Buying Styles :  Buying styles vary depending on the buyers capability to pay.

BIT.Department of MBA.Sales And Retail Management Innovators -Adventurous and have high risk capital are the overnight buyers. Bangalore. 3.2. 9) (5. and what level of importance he Uttamkumar YV. . 0) concern for sales (9.looks for lowest 2Business bid. Government organ.5) Concern for customer (0. still others has centralized decision making/ decision making committee. Selling and buying style(Robert Blake and Mouton Model) (1. How much concern the sales person has for selling his product. 1) (9. -mostly buy on impulse and consider non functional reasons for making a choice laggards accept new products and innovations after observing the innovators using it. Rogues theory of diffusion Assumption: Innovators spread across the society in a pattern that is similar to normal distribution curve Innovators: -doesn’t give much important sales person Risk avertors Always take multiple variables into consideration before they make final decision Business Different Groups of business has different pattern of buying: 1. some organisation considers quality as the buying styles important criteria. 9) Blake and Mouton model distinguish various selling styles by analyzing a salesperson’s concern for the sale and the customer.

1) Takes it us leave if – I plane the product before the customer and it sells itself as and when it can. . and buying pattern is based on the basis of set parameters. the customer does not come with a specific parameters. the customer walks into the counter with an intention to buy a product. On the otherhand. (9. he a faces a situation where the customer either explains his status and intention of buying or addresses his needs to the salesperson. When a person makes a sales call to an individual customer for an insurance product or a mobile connection. (1. It motivates there a blended personality and products emphasis. and during the sales presentation the customer may unravel his problems. Uttamkumar YV. 9) Problem solving oriented – I consult with customer so as to inform myself of all the needs in his situation that my products can satisfy we work towards a secured decision on his part.In organizational buying the customer represents a group interest such as the purchase department of an organisation.In service and solutions selling.who only pushes his product without considering the buyer needs has more concern for sale. which yield him the benefits he experts from it (5. the salesperson looks for potential customer. BIT. Bangalore. (9. pilling on all the pressure if takes to make him buy. I want to understand him & respond to is feelings and interest so that he’ll like me. 9) People oriented – I am the customer friend. . .Sales And Retail Management gives to the customer are the two dimensions used for developing the matrix of selling styles. -In a retail selling situation. 1) Push the product oriented – I take changes of the customer and hard sell him. identify his interests. whereas in cold calling and door to door selling. SELLING SITUATION: A typical selling situation explains what kind of customers a salesperson is going to face and what kind of sales approach will help him in closing a sale in that situation.Department of MBA. (1. It’s the personal bind that leads him to purchase. a salesperson who always responds to customer’s needs and present his product as the optimum solution to the customer’s problem has higher concern for the customer. Typically a salesperson. 5) sales technique oriented – I’ve tried an effective routine for getting a customer to buy. and develop his criteria of choice.

visual aid-when the prospects drops hints make a note of it. Rogues theory of diffusion Assumption: Innovators spread across the society in a pattern that is similar to normal distribution curve Innovators: -doesn’t give much important sales person Theories of selling AIDAS Right set of circumstance .In creative selling.seller oriented Buying formula theory of selling – buyer oriented Behavior equation theory – buyers decision process AIDAS  Securing attention – have a good start. They are the real salespeople who try to do prospecting from the leads either available in the organisation or collected by them. and then take the prospect through the whole process of selling to realize a sale. these salespeople are posted at the client site and are responsible for solving the client’s problems.Sales And Retail Management -In the case of pharmaceutical selling the sales person makes a sales presentation to a doctor who is not the original customer but customer’s decision making largely depends on what the doctor prescribes..Department of MBA. Maintenance selling: Maintenance selling involves the art of servicing the existing accounts. counting inventory and taking replenishment orders and delivering the products. securing promotional cooperation. an advertising campaign presentation. Developmental Selling: Salespeople engaged in developmental selling are called business development sales executives as they try to contact the potential customers and build business for the firm. Bangalore. proper attire. . In the IT sector. eg. sales portfolio.  Gaining interest . show genuine smile.provide sample. BIT. the salesperson tries to sell an abstract thought to the customer. and ask question from that  Kindling desire – keep converging along the mainline towards sale Uttamkumar YV. .

AHoward) 1. follow up Right set of circumstances : (situation response theory ) “Every thing is right for the sales” Present proper stimuli “Lets go for coffee” .Department of MBA.better straight forward  Building satisfaction – thanking for order. Drive – internal stimulation that impact the buyer response 2. Cues – weak stimuli that determine when the buyer would respond Product cues : color.Sales And Retail Management  Inducing action – some use tricks to close .e) force of the habit D = “Incentive potential “ – the value of potential satisfaction to buyer V = intensity of all user Uttamkumar YV. Some ask straight forward d yes or no answer question. Trade name must be adequately considered. Bangalore. . P = predisposition or the reward response tendency (i. Need – solution – purchase Need – product –trade name – purchasing – satisfaction Behavioral equation theory (J. package Influence cues : external stimuli that prescribe about product 3. Response is what buyer does 4. go out -internal Buying formula theory of selling : Identify what goes in the mind of buyers – help buyers find solution For purchase. the aid of purchasing a brand. Reinforcement : is any event that strength buyer’s tendency to make a particulars response JA.sales present -external coffee. BIT.Howard incorporated these 4 elements B = P * D * K * V (The retain among the variable in multiplicative) B = internal response tendency.

egocentrism. Bangalore. The following five elements of mutual trust revolve around the communication. a salesperson should . 1. Predicability of action 3. BIT. The entire business of modern day sales rests on building a good relationship with customers. Likeability( It is an emotional issue and difficult to clearly define. self –defensiveness. superiority. The following are the skills required for a successful sales person: I)Communication skill: In order to be successful. The communication process may be disturbed by noise and other psychological barriers. and overall appearance)of the sales person. Truth of words communicated by the salesperson 2.possess good knowledge in vocabulary . Even before the salesperson speaks the first to intelligently express . hairstyle. to understand non-verbal cues of customer. (pre-occupation with certain messages. Intent or empathy 5. self focus. . but can be understood as a perception of commonality of both the parties)  communication process: The communication is established by exchange of ideas through a medium. competency(ability/knowledge/resource) 4.Department of MBA. The relationship becomes long term when it is built on mutual trust. the potential customer starts making perceptual inferences about the salesperson and visualizes the way he is going to talk and do the sales presentation. but the evidence shows that the skills can be acquired through scientific way of learning. Uttamkumar YV.Sales And Retail Management SELLING SKILLS: The prominent myth is that the successful sales persons are born. selective attention)  Managing Body Language: • Personal appearance: The first impact of customer or potential is created by the personal appearance(dress.

Oral communication are also accompanied by gestures as gestures enhance the impact and value of what has been said. or tightening of jaw muscles as a symbol of antagonism can add to meaning conveyed through verbal means. a frown as a symbol of discontent. nervous. Each salesperson maintains a personal space around himself.Sales And Retail Management • Posture: conveys wealth of meaning in one ways. • Gestures: Playing timed well can drive a point home faster than anything else in interpersonal communications. Space distancing differs from culture to cuture.Department of MBA.  occasionally there should be spells of silence on the salesperson’s part because these spells of silence will allow the salesperson to garner new points and ideas regarding customer reaction. and walks . . raising of eyebrows as an expression of disbelief.  The salesperson should always be courteous and cheerful and should show interest in what customer say. Bangalore. mobility and other parts of body-reveals personality about how one is vibrant.  The sales person should alert to the attitude of the customers and should not be surprised by the change in the customers attitude during the presentation. twisting a key chain robs effectiveness of a salespersons presentations. dynamic. • Eye contact: Eye contact with customer is important aspect of the body language. Playing with a ring. The way one stands. alive. This is known as social distance. BIT. A smile as a symbol of friendliness. Eye is believed to be an extension of the brain and a window to the soul. Stess should be laid on continuous eye contact between the sales person and the potential customer because it is an expression of sincerity of the seller and attentiveness of the customer. jittery. • Facial Expressions: The face is the most expressive part of the body. • Space distancing: A zone of 4-12 feet is maintained when it is a formal presentation. Uttamkumar YV.

the logical level of argument.Feedback. they mix up various things and present the matter in a different order form the way was presented to them. Research suggest that people are only 25% efficient in their ability to listen. There are 3 types of listening: 1.The objective of this listening is to understand and evaluate the meaning of the speaker’s message at several levels.Sales And Retail Management II. and demands so that it can be appreciated by the listeners irrespective of the fact whether he likes it or not. It is generally observed that salespeople spend more time in receiving communication and information than in transmitting it. Listening is the active search of meaning in the message received. Bangalore. An average person remembers only about half of what is being told to him after 10 minutes. The process of Listening: Attendanc e Levels of Listening: Feedback prepharasing clarification Emphathetic listening Active Listening Interpretatio n Remembranc e Evaluation s Response action 1. the strength of the evidence. needs.and forgets half of that within 48 hours. . and should try to judge the individual customer’s fundamentally the reaction of the customer to a sales call. content Listening –when someone listens to a sales representative(medical rep). and validity of the conclusions. The objective of content listening is to understand and retain the speaker’s message. BIT. Here the sales person should avoid the temptation to give advice. 3. 2.. When people are asked to replay what has been told to them. the divisional manger listens carefully and evaluates it. Empathetic listening: The objective is to understand the speakers feelings. LISTENING SKILLS: The salesperson has to be a very good listener and use his listening skills to lead towards sales realization. critical Listening: . he is engaged in content listening.There is a little scope for the agreement of the message.Department of MBA. Uttamkumar YV.—when the area sales manager presents sales plans.

‘so what you are saying is you think that I am just giving the company line. Bangalore. whereas what you really need is more help in financing and on the spot service. Components of Conflicts: Uttamkumar YV.  Salespeople should try to depersonalize the listening so that they can decrease the emotional impact of what is being said. Dysfunctional – hinders group performance c. BIT. and try to distinguish between facts and arguments by applying their own market knowledge. Active Listening: Salesperson identifies the emotions underlying the customer’s words. The vice president –sales is interested in getting better results from the same cost to show the board that resources are being used efficiently. process conflict-fight over how work gets done Models of conflict: Dollard and Miller model: apporoach-approach.Department of MBA. conflict situations and manifest conflicts. Conflicts can be classified as a.clarification of the issue: It involves working little harder with the customer’s words to identify his real concerns. and avoidance-avoidance( attractiveness of options of parties) Rummel’s model: differentiates between conflict structures. Conflict in sales organisation is more evident than in any other organisation. For ex. 3.  They should listen to the customer’s idea of the product and the price. (eg.a salesperson tries to paraphrase the question by mirroring the questioner’s point. functional-support the goals of the group and improves its performance b. Many listeners are also guilty of self-centeredness.CONFLICT MANAGEMENT SKILLS: Conflict exist in every organisation. 4.Sales And Retail Management 2. Barriers to Listening: There are various barriers to listening that include physical and mental barriers. III.)A sales manager wants his salespeople to cover the territory as thoroughly as they can whereas the salesperson is interested in realizing the desired sales through a few loyal customers. .Paraphrasing. The sales person may say. Relationship conflict-tussle based on interpersonal relationship e. Prejudgement is the most common barrier to listening. Emphathetic listening: 5. Task conflict-disputes over the content and goals of the work d. approach-avoidance.

Bangalore. . BIT.Sales And Retail Management Interests. and values The conflict Management Process Stag2: cognition and personalistaion Stage3: Intentions Stage4: Behaviour Stage5 outcome Stag1: potential opposition or incompatibility Perceived conflict Antecedent conditions Communication Personal variables structure Conflict handling intentions Competing Collaboration Compromising Avoiding accomadating Increased group performance Decreased Group performance Felt conflict Uttamkumar YV. emotions.Department of MBA.

s. NEGOTIATION SKILLS: Negotiation occurs when someone else has what you want.Department of MBA. Negotiation are very important in selling because majority of selling is done without a list price. Sellers reservation price(seller wants s more) S sellers surplus or Seller wants to move c up Overt conflict party’s behaviour others reaction final contract X Buyer’s reservation price(buyer wants b or less) b Buyers surplus Zone of Agreement Buyer want to move x down If two parties are negotiating price. For TATA & Maruthi Udyog price has been the only element of negotiation. which does not result in a winner and a loser. . Bangalore. situations and timing for negotiations:  when many variable factors bear not only on price but also on quality and service  when business risks involved cannot be accurately predicted  when a longer period of time is required to produce the items purchasd  when production is interrupted frequently because of numerous change orders.Sales And Retail Management IV.Successful negotiation is an attempt by two parties to achieve mutually acceptable solutions. the seller has a reservation price. BIT. That is. Bargaining is appropriate whenever the five definitional conditions are met and a zone of agreement exists. and you are prepared to bargain for it and the vice versa. Uttamkumar YV. each establishes the threshold value that it needs.

Simillarly. x which is below s represents a price that is worse than not reaching at an agreement at all. For any x<b. Bangalore. the buyer receives a surplus.look at the fuzzy or unclear problem situation and write a statement regarding the challenge to be addressed. The objective is to pick up the best solution for the customer and organizational problem so that the salesperson becomes an engine for growth of the enterprise rather than only a person in charge of transfer of ownership of products and services. 5. that is s<b. Uttamkumar YV. The seller desires as large a surplus as possible while maintaining a good relation with the buyer.Sales And Retail Management which is the minimum he will accept. V. BIT. It is the standard against which the proposed agreement should be measured. If the sellers reservation price is below the buyers price. then a zone of agreement exist and bargaining will determine where x will fall within the zone. he should rather act as a problem-solver and consultant to the customer.Any final contract value say. the seller receives a surplus. . the buyer has a reservation price b. Define the problem(did it arise at the level of the sales rep) 2. statement restatement technique.Department of MBA. which is the maximum he will pay. Recognising of BATNA early in the business negotiation process helps the sales manager to be successful and gain more than the BATNA. Explore the problem(identify all the available information) 3. 1. identify the present and desired state 4. BATNA is the standard of comparision that can protect a salesperson from accepting unfavourable terms and rejecting favourable terms. one also needs problem solving skills for effective selling. These roles are more significant for high-tech selling and business to business selling. Any x that is above b represents a price that is worse than no agreement. The purpose of negotiation is to produce better results than what one would have got without negotiating. PROBLEM SOLVING SKILLS: Besides the negotiation skills. The relational and consultative selling approach states that a salesperson should not be a mere order taker. For any x>s. This result is known as best alternative to a negotiated agreement(BATNA). use Dunkers Diagram-which helps to obtain solutions that satisfy the criteria set up by the stating the desired state and present state.

Prospect ( with the prospect. handles their objection and closes a sale. Pre-sale prepartion Prospecting Pre-approach before the interaction Handling objections Approach to the customer Sales presentation Follow action up Closing the sale The Selling process 1. The product Information checklist can be helpful in this regard.The process of prospecting: a b c Uttamkumar YV. plan.Sales And Retail Management 6. Bangalore. 1. the ability to pay for it. the sales person should identify the stage of decision making). competitor knowledge. BIT. Benefits. Evaluate the solution by measuring up its performance against the implementation plan and its ability to solve the orgl. price. and the adequate authority to buy it. procedures.Department of MBA. Lead customer (desire to buy but no purchasing power). Company knowledge. approaches them and makes sales presentation. but they need to be further persuaded) 3. Qualified prospect ( they are in need. history. 3. 2. The process vary from one situation to other situation. The sales person should have a screening skills. separate the prospects from suspects.Prospecting: It is the process of identifying potential customers who have a need for the product and service offered by the company. management. policies. finance. 3 sets of customers.Pre-sale preparation: The sales person has to prepare himself with the product knowledge. size. style. . “The selling process is defined as a process by which a salesperson identifies and locates the prospects. SELLING PROCESS: Selling follows a sequence or a process. 2.

4. Observation –For Key Telephone System ie. Prospect pool( collected from telephone directory . Cold canvassing – door to door sales call 2.10 Trade shows and demos. 4 steps involved in this process: 1. accesability indicator and sale person fit indicator. Bangalore. b)Collect data through surveys. Endless chain customer Referral( from cutomer to his friends and his relatives to their friends and relatives) 3. executives observes costruction site to find out the potential customer 6. BIT. authority to buy. Friends. mailing list ) 4. -propensity to bargain. Determination of sales presentation 5. Selling process explains. Pre approach before selling: The sales executive has to devise strategy to match the customer data with the product attributes. credit payment. . helps in developing selling strategy. Methods of Prospecting: 1. Different personality elements indicate different selling strategies ( Whether a customer is price sensitive. ) During the product introductory stage the customers demand more information whereas the product which is in the last stage require price concession. Directories 9.Department of MBA. ability. political and religion) 5. Centres of influence( Business. 8.7. c)ranks the prospects according to the need indicators.Use MAD (Money –Authority-Desire) principle to qualify prospect. queries and trade association. Determination of call objectives( sales call in the first instance or to get permission to make a demo) 2. and to decide about the differential advantage offered to the customers. estabilising call norms and objectives. Non-competing salesforce. . Telemarketing. EPABX. credit payment. magazines. Determination of customer benefit 4.Devlopment of customer profile 3. Approach to the customer: Uttamkumar YV.Sales And Retail Management Identify and define prospect Searches for sources of potential customer Qualify prospects from suspects a)Identify the attributes and features the prospect expect. find out the urgency for the need for the product. and dept involoved in buying.

. quality certificate. Responsiveness( The proposal should invite purchase responsiveness)4. Emphathy. Tangibility ( proposal should enhance salesperson message)2. customer accepts or objects and demand explanation or stays indifferent. Sales personal normally answers to objectives in the form of demo. BIT. sampling. A sales proposal should convey 5 proposals: 1. The following are the further classification. The objective of approaching the customer may be for getting attention. new sales people can follow this method) b)Organised presentation: Developed on the basis of information collected from field research.Department of MBA. the salesperson presents the product. Sales Presentation: During sales presentation. It helps in maintaining company marketing plan due to adherence of company guidline ( allows flexibility and it encourages participation) c) tailored presentation. the presentation can be classified as oral or written. doubts potential of the product. referral approach and Introductory approach).Sales And Retail Management It is better to fix appointment over phone. Assurance( should build trust) 3. Uttamkumar YV.Reliabilty 5. the sales executive probe insights by asking questions. There are various approaches used ( benefit approach. the salesperson features presentation with customer benefit. and sometimes gives no clear reaction.Handling Customer Objections: It is human to raise objection about the new product and services. Objections can take forms doubts. In a typical presentation. A sales person can follow the AIDAS approach to sales presentation( AIDAS discussed in the theories of selling part). minor objections and major objections. 6. Bangalore. and by providing additional information ( Additional information can be supported by reports of the products published in media. gaining prospect respect and mind and arousing interest for presentation. At this stage. 7. there is a little scope for modification. Parapharases the objections as a question. The salesperson has to keep in mind the level of interest and time available. Methods of sales presentation: Generally. –Emphasis buyer demands and designed to specific customer. a)canned presentation: ( prepared by company. removing any inhibition.

Sales And Retail Management

10 Excuses customer use on the sales people: 1 Denial – I don’t need 2. Blaming- It’s not my responsibility, my boss will not like it. 3. Minimising- new idea will not do much for us 4. I have choice, get along with majority 5. Reframing reality- we are limiting number of suppliers 6.Alibi- I don’t have money, I don’t have authority. 7. Justification- we do have need but currently busy with re-organisation 8.Derogation – I have heard this product give night burns 9. Helplessness( It’s out of my hands, I cant do anything now. 10. Yes…..but ( it’s a fantastic idea, it will not here, it looks inexpensive but we cannot afford it.

Method of Handling Objections: a)Superior feature method- accept objections, persuade them through providing additional advantage. b) Yes… but Method.- ancient method- sales person agrees at the beginning and slowly makes an effort to remove the objections c)Reverse English Method: Change the customer objection in to the basis of buying. d)Indirect denial Method: denies the objection cleverly and but indirectly by giving affirmative answers to the objection e)Pass-out method: sales person does not pay attention to the customer objection and expressed neutral opinion . when objections are baseless, they pass off without attending to it. f)Comparing method g)Direct denial – rejects the objections outrightly and then build up his presentation h) another angle method- advises customer to look from another angle, which is positive for the product i) Question or Why method: Ask question again and again without any break and try to get suitable answers form the customers themselves. 7.Closing the sale:
Uttamkumar YV.Department of MBA, BIT, Bangalore.

Sales And Retail Management

Many use questions “ will you buy” ? to close the sale. Methods : a)Assumptive close – assume the sale is made and proceeds to issue such as writing address. Handling a prospect a pen to sign. b)Caution Method: Make the customer cautions about the availability and period of availability and request the customer place order c)Special Induce Method: Remaind promotional scheme by telling the period of promotion (valid date) d) Direct to order method: consumers will come toward to place order e) ownership suggestion (emotional)- should impress upon the social standing by owning the product. 8. Follow up action: It begins by thanking the customer after a sale. In case of failure in sale, it helps in building up of customer interest and in generating repeat sales after a deal. After sales service is an important part of the selling process. It assures that the order will not be cancelled and it paves the way for building confidence and establishing relationship with customer for future revenues. Follow up is the way for evaluating the competitive sales move. It also helps in cross selling and upselling company products. It helps salesperson in maintaining goodwill and for taking corrective action.

MODULE -3 MANAGEMENT OF SALES TERRITORY AND SALES QUOTAS Introduction:- Sales Territory: -- is defined as a group of present and potential customers assigned to an individual sales person, a group of sales person, a branch, a dealers, a distributor or a marketing organization at a given period of time.
Uttamkumar YV.Department of MBA, BIT, Bangalore.

Sales And Retail Management

Definitions:\ David , Still &cundiff—grouping of customers & prospects assigned to an individual salesperson. Manard & Davis—basic unit of sales planning and control. A well planned territorial design for example, helps in matching the selling efforts with the sales opportunities in that market. Sales Territories are generally designed on the basis of Geographical areas but there are sometimes companies decide to build territories on the basis of the urgenc frequency requirements of customers—A sales territory helps in better sales planning and effective operational control. Advantages: —better market coverage, effective utilization of salesforce, efficient distribution of workload among people, convenient way to evaluate performance, no enchroachment, understanding customer<-> better serving. Companies help to get insight (for sales people) for their own territories. Disadvantages—Many organization do not plan territories and orgaise sales on the basis of geographic divisions.This include newly established enterprises, organisations where sales are achieved more through personal relationship rather than professional approach, and oraganiations selling highly sophisticated and technically complex products. Size of sales Territories: There are various factors influence the size of a sales territory. Density of the population, population spread within the territory, nature and demand of the product, mode of physical distribution, the selling process and transport and communication facilities. If the product is a consumer durable with a longer shelf life, the company may prefer to have a larger territory compared to smaller territories
Uttamkumar YV.Department of MBA, BIT, Bangalore.

. On the other hand. industrial and durable and nondurable. Salespeople at Marico Industries. buying patterns. for ex. Step 1—Select geographic unitThe most often used units are states. The trading area is a geographic region that consists of a city and the surrounding areas that serve as the dominant retail or wholesale center for the region Step 2:---Decide on the criteria for allocation Once the selection of the basic geographical control unit is complete. DESIGNING OF SALES TERRITORY: Designing a sales territory is one of the most difficult jobs for sales managers.Department of MBA. Another control unit used for establishing sales territories is the trading area. where bulk order booking is done by a salesperson. BIT. cities. and manual process where chart. namely consumer. When companies decide to go through intermediaries they prefer to have a larger territory. likes and dislikes. counties.Level of Customer Support required considered while designing the sales territory. Many companies have used state boundaries in establishing territory boundaries. Territorial design is done when the market grows to such a size that it is not possible for the same sales force to cater to the market. age. it is time consuming. Uttamkumar YV.Sales And Retail Management for the perishable commodities. A state may be an adequate control unit if used by a company with a small sales force. market share data and the competitive position of a firm in order to identify both the present and prospective customers on the basis of information such as sex. or in situations where a company also handles the retailers.Territories can be established on the basis of the nature of the product. the next task is to analyse the consumer a characteristics. Bangalore. use Geogrpahic Information systems software to design territories. The county is much smaller unit than the state and acts a better focal point for dividing territories. group. quality of sales person level of competition . maps and topographical data are taken into account. the size of the territory is kept small. industrial buying. Various factors like Size organization. requirements and standard of living. metropolitan areas and trading areas. zip code areas.

The sales manager keep on running total on the allocation criteria for each newly designed territory.radiates from densely populated to smaller rural area(both urban and rural) Clover Leaf –when accounts are distributed randomly Hopscotch – sales person starts at the fartherst point from the office and makes call on the way back to office Step 4:-. Hyundai follows this(urban Market) Wedge. . In such cases there is a need to allocate control units on the basis of traveling and call norms in order to reach customers.Sales And Retail Management Many Indian firms take into account 3 key factors while deciding on the size of the territory. Topographical data step 3: Decide on the Starting Point: After ascertaining the sales potential in control units. Bangalore.The customer base compreses of current customer. 1. the sales manager should form tentative sales territories as the starting point by selecting geographic location.Allocates criteria and workload Analysis -Compare territories (customer per square mile and support detail outlets per square mile) Many times. Uttamkumar YV. small and large territories in a particular geographic spread may have an equal potential on customer size. the sales managers then combine control unit to build up the market.Combine control units adjacent to sales territories Once the decision about the starting point is taken. Step 5:-. Market Potential 3.Department of MBA. Adjustment is made keeping in view the sales potential. There are 3 types of territory shapes that affects sales expenses and coverage and time: Circle. A common choice is the location point( often the residence of the salesperson) This is done to avoid the relocation cost of the salesperson and provides emotional support by keeping the salesperson closer at home with his family and relatives. BIT. 2.Salesperson located at centre. potential customers’size and geographic size interms of square kilometers or square miles to be covered by the salespeople.Maruthi.

A popular computer program ( call plan –Xerox) response function to each account is generated from each salepersons input. market growth rate and sales expenses involved in the market coverage. 1. Firms ability to produce --2 dimension—Overall opportunity—high flow --firms atrocity to capitalize High Low High opportunity/sales organization have different advantage Strategy:. Workload analysis consist of how much of selling effort is require to meet the sales objectives for a given region.commit high level of research to take advantage Stable opportunity Strategy:.Department of MBA. Account planning matrix is used here. Bangalore.Sales And Retail Management customer size. the last step is to assign the territories to the individual sales force. .There are two dimensions. Overall opportunity rate 2. Step 6: Assign Sales force to New Territories After determining the final form of sales territories and making necessary adjustment in tentative sales territories.Allocate model of research to retain current advantage Strong Good opportunity.Forms overcome company disadvantage Strategy:. BIT. Suitable salespeople are appointed for each territory and the exact responsibilities are assigned to Uttamkumar YV.Improve the position and tarde advertising of opportunity Little opportunity Strategy:-Either commit a minimum level or conduct abandoning account together Weak Account planning matrix uses computer simulation model for taking decision on call norms for the accounts.( Refer sales organisation chapter for workload analysis) Strategic planning matrix To determine account call rate.

use of Present accounts. -Where the territory is too small for a good salesperson . homes location of sales people. This is done keeping in view the characteristics of each territory. needs of the territory. BIT. workload & call norms Computer program also used for Territory mapping. One of the important factors in the territory designing is that the boundaries of the territories are never kept constant and evolve over a period of time. Use of information technology: A modern day sales organisation uses IT enabled service and computer programs for deciding on the sales territories. simulation. Revision of territory:Sales manager may need to revise territories at time to cope with challenges. geography boundary of control units and  Drawtentative territory boundaries. and the appointment of intermediaries. .Sales And Retail Management these people. depending on the nature and number of customers in these areas.Department of MBA.  Reason— -Revision is needed if a territory is over estimated. optimization of Route and call norm behavior --Sales Manager feeds basic data Market potential. Bangalore.overlapping territories -Environmental changes Effects of Revision—“built mut”—damage morale --Compensation adjustment --guarantee previous level income Uttamkumar YV.

The purpose of sales quota Providing goals and Incentives Uttamkumar YV. Bangalore.. BIT. profit or Gross margin. which contributes towards achieving the organisational goal regarding sales forecasts. expenses.  Importance:---divise in strategic planning --Standard to specify derived level of performance --guided by time element/controlling tool --lead organization towards management by exception (Mgt focuses on highly performance oriented people) --guiding the behavior of people. Quotas are established in terms of sales volume. divisions and individual.Department of MBA. activities or some combination of these. It is an expected performance objective –routinely assigned to the sales units. such as depts. .Sales And Retail Management \ SALES QUOTAS Meaning : Sales quotas are the targets that salespeople try to achieve within a specific period of time.

a> Dollar sales volume:-- --easily understood by salesperson --can guage their performance directly against a dollar figure -. PDT line and customer type.Department of MBA. some unit sales. of units—Use of dollar quota could perhaps even backfire and level overall performance Uttamkumar YV.set in terms of no. BIT. .Sales volume quota(sv):-Based on sv—most of this quota uses dollar sales.Easier to manage when the salesperson is responsible for many products b> Unit sales volume:-- --Useful when the salesperson is responsible for selling only few products -. Bangalore. sales of new products or sales of neglected products. --They are established on the basis of geographic area.Sales And Retail Management Evaluating performance Controlling the Salespersons activities Calling minimum no. of amounts per day Calling on new accounts Giving minimum no of demos Uncovering strengths of weaknesses in selling structure If sales fall in a particular territory the cause must be determined Improving the compensation plan’s Effectiveness Controlling the selling Expenses Types of quotas:-1.

2> Expense quota:. By spending so much time as less profitable products. .eg Salespeople may be allowed to spend 5% of their sales fore expenses. Methods of setting Sales Quota:-1> Quotas based on sales Forecasts and potentials:-Uttamkumar YV. new accounts established --no of deals training given 4> Combination quotas: -.Used when they want to control performance of both selling and non-selling authorities.designed to make sales people aware of the costs involved in this selling efforts. BIT. $100 might equal one point. Common type of activity quotas include --no of prosunts called on --no of demos made --no of displays set/service calls made.Sales And Retail Management c> Point Sales volume: -.g.Combine dollar or sales unit sales both into unit points. For e. the sales reps are limit the coy’s opportunity to earn higher profits from the high margin products.Financial Quotas:-1> Gross margin or net profit quotas Coys use these quotas to emphasis to the salesperson that the cry would prefer a large profit to selling a large volume. 2. 3> Activity Quotas:-In an effort to ensure that salespeople are conducting their daily activity by conscientiously many loys require that their salesperson must activity quotas. Bangalore.Department of MBA. $200 equal to 2 pts —Companys use this approach because they have problems trying to implement either a dollar or unit volume quota. --Used to control many different activities. It helps in maintaining balance.

 It is the planned process whereby the scientific principles of management is utilized for finding out and filling up the positions in the right territory with the right people. average them out for each geographic territory and then add an arbitrary % for next year quota. 2> Quotas based on past experience:-- collect sales data for previous year.Sales And Retail Management --Organization forecast the total sales for entire territories which is then divided into territories and then brought to the individual sales level.  The selection and recruitment of efficient people is always a competitive advantage for an organization. . Bangalore. including the sales person in quota setting 2. BIT. 3> Quotas based on Executive judgment:-4>Quotas established by sales people:---some companie allow the sales representatives to establish their own quotas because sales people are closest to the market and therefore thought to be the ones who know the most about its potential. It shoud be determined by the attainability of that quota and recognition and incentives creating understandable quota: 1. --The drawback is that sales people may either set exclusively high quota or ridiculosely set large quotas Administration of Sales Quota: Setting realistic quota: Salesperson should be motivated . maintaining control RECRUITMENT AND SELECTION OF THE SALES FORCE Recruitment. Uttamkumar YV.Department of MBA. keeping the salesforce updated 3.

Sales And Retail Management  Sales manager perform the sales force right functions. lead. . what degree of knowledge/skill) 2> Determine duties/responsibilities 3> Spend time making calls with several people. nature of customers. Marital status. Cost. select . House. Children. hiring objective. Physical data. HIRING PROCESS 3 STAGES: Manpower (HR) planning (examine labor turn over.Result of formal job analysis is job descriptions. Sex.Department of MBA. compensating. control and compensate the sales staff for achieving the desired goals of the organizations. deciding number of people required for particular time). Uttamkumar YV. positive equipment analysis. EEO. observe record the various tasks of the job as they are actually performed  Preparing job descriptions -.  Who does recruiting?  What interviewer can and can not ask. train . Motivate. Medical history. It’s used in recruiting.  Recruitment stage (identifying best source for generating pool of candidates). evaluating the sales force. military status. It should be in writing. Age. They execute entire Human Resource Management function Recruit .  Selection ( screening. Criminal record. Qualified applicants. selecting training. The Recruitment process o Conducting job analysis  Conducting job analysis:-1> Analysis the (nature of competitors. interview) RECRUITMENT:  Importance of recruiting Customer. Bangalore. BIT.

 Empathy—ability to feel as the other follow does.  Personality traits :-. average and poor sales people will suggest traits that can predicts success in sales career with the company. BIT. .  Levels of qualification :. Thus empathic feeling & provides feedback from the client which enables.Travels.Sales And Retail Management  Developing a set of job qualifications:---The duties and responsibilities set forth in the job descriptions should be converted into a set of qualifications that a recruit should have in order to perform the sales job satisfactory.Sales manager should keep in mind certain .Industrial psychologist suggest that a successful salesperson needs only 2 personality traits: empathy and ego drive.Department of MBA. Bangalore. sometime overnight -Little work experience characteristics -Supervision -High turnover  Model of success: . SELECTION OF SALES FORCES Uttamkumar YV.A comparison of characteristic of good.

In depth interview clubs exam (45% (43% (6% causes causes path) path) relative) 4. vocational interest. polygraph. Bangalore. Steps: 1.advantage is already trained New competing companies Educational institutions Advertisements Employment agencies FACTORS TO CONSIDER IN EVALUATING PROCESS Uttamkumar YV. Internal screening (Interview:. knowledge. Physical 6. recruiting program serves as an automatic screening system.Sales And Retail Management Involves choosing the candidates who best meet the qualification and have the greater aptitude for the job. .Department of MBA. attitude and lifestyle) ATTRACTING POOL OF CANDIDATES:If there are too few applicants. BIT. personality test. Reference 5. Application form 2. the property is highlighted that a person with inferior selling attitudes will be hired when a large number of applicants are processed. sales aptitude. Test ( Intelligence.Major concern for candidate) 3. SOURCESS OF SALES PEOPLE:Persons within the company Competition (sales force) .

policy of promotion from within. TESTS. Internal screening may start with application form. nature of the market. .Sales And Retail Management 1. participation in social organization.  Vocational interest / personality test. assistant sales manager. But no matter which tool is initially used.Sustained / unsustained interviews Uttamkumar YV. 2.  Polygraph test (measure blood pressure respiration. position applied for. an interview are some type of test. the number of sales people needed and the importance of the position to be filled APPLICATION FORM:Information about address.  Sales aptitude test (person’s innate and acquired social services). BIT.  Attitude and life style. Selection process vary from company to company depending in the size of the company. heart beat and skin response). it should be brief. work experience. Bangalore. Intelligence test ( measure the raw intelligence and trainability)  Knowledge test (the tests are designed to measure what applicant knows about product service). INITIAL SCREENING INTERVIEW:Lasts from 20 – 30 minutes and are conducted by assistant personnel manager.Department of MBA. physical condition. sales personal and sometimes computer. Nature of the population . INTERVIEW: . sales training providing by the company Selecting the sales force The selection process involves choosing the candidates to best meet the qualification and have the greatest aptitude for the job. educational background.

department and helping them to acquire skill and adjust to role behavior. addresses performance problems. long term oriented (growth & success of orgn) Challenges in sales training: . (immediate problems of the organization) Development stresses on the current as well as future job.Sales And Retail Management  In depth interview – to know the heights of the candidates. .Department of MBA. Sustained interviews use at the preliminary stage where as no sustained is used at the final stage.Will the training programme effective? .Will .  Reference characters  Employment offer  Induction / socialization – introduced with product. Bangalore. BIT. TRAINING THE SALESFORCE Need for training: Guidance to perform the job efficiently Exploit the talent of new recruits Adapt itself to changing market condition To reduce cost by serving customer efficiently To bring behavioral changes Win-win situation (org & individual benefit) To correct deficiencies Training and development: Training focuses on current job (short term oriented.Will it produce desired/intended results? Uttamkumar YV.

irrespective of his position in the orgn is capable of learning. some can be solved by compensations. BIT. a salesperson is expected to have the knowledge of the company. habits attitudes and knowledge are acquired and utilized in such a way that behavior is underfeed. product. Every one has an intellectual capacity and the ability to learn training programs. Learning is more effective when there is more level of reinforcement in the form of rewards and punishment for non-compliance Learning in itself is a human process by which with.Sales And Retail Management Not all problems require training. Conditioning theories: Assumption: there is a desired response to stimulus . In a typical training programme. Bangalore. 1. .When any action causes satisfaction it will be associated with a particular situation and the same action shall be repeated when a stimulus situation arises Eg: pavolos experiment with dog 2. Stimulus operant conditioning: Theories: Every human.Department of MBA. Theories & principles of sales training: Training is based on the process of learning a sequence of programmed behavior and the application of knowledge to the work environment. competitor. knowledge of the market. himself. Uttamkumar YV. A sales mgr weigh how much the current problem will cost vis-à-vis the cost of eliminating through the training programme.

. BIT.It provides strategic info on the resource commitment to support the programme. Business Climate/goals. Individual Level Analysis Assess the performance of sales staff & determine all those people who need training. culture. Task Analysis Focusses on all the function & jobs in the sales dept & determine which are of them which need attention. Bangalore.Sales And Retail Management THE TRAINING PROCESS: Training need Assessment Design & conduct of training Programme Evaluation of a training Programme (1) Training Need Assesment Phase: Orgl Level Analysis Sales mgr evaluates the orgn struc.Department of MBA. mission. Uttamkumar YV.

(g) Attitude survey (h) Interpersonal skill test (2) Designing & conduct phase: . a subset of skills training focuses on giving the employees those skills that are needed to keep pace with changing job requirements. Training needs are identified in the following manner: (a) Identification of the specific problems( product. .opinion of salesforce on topics related to commn. (c) Mgmt request: request by supervisors to fill the performance gap.On the job/ off the job . job related knowledge deficiency) (b) Anticipating impending & future problems: Problems likely to arise due to factors such as Market expansion. . job satisfactions. pdt diversification as entry into new territories. (f) Che…. Uttamkumar YV. Cost . . people. BIT.Department of MBA.for improving customer handling. Bangalore.Sales And Retail Management The programme can occur not only in key sales areas but also in soft areas such as team working behavior. presentation and interpersonal skills.Location: .Timing (how long). listening. (e) Questionnaire Survey.Inside orgn/outside orgn .Retraining. attitude toward working condition.Types of Training (a) Skills or retraining: .Trained Expert or co. organisation. interpersonal communications &conformity to sales group norm. (d) Interviewing or observing the personnel on the job.

Torrent Gujrat. (e) Literary training: Mean mastery over basic & functional skills. BIT. sales people are sometimes given corporate responsibilities. Eg. Hughe Telecom. Infosys & satyam train sales people by taking them outdoor and inculcating team skills through experimental learning.(reading. (c ) Team Training: An organization where a sale has to be done through a team. (b) Cross – functional Training: A method of job enrichment where employees are trained to perform activities and duties in functional areas other than their assigned job responsibilities. allow the sale staff to undergo training in periodic intervals to keep pace with the changing technology & tactics in performing the sales job in a highly competitive environment. writing & commn) TRAINING METHODS: The choice of training method is influenced by Uttamkumar YV.Department of MBA.Sales And Retail Management Eg. Bangalore. Eg. Cadila pharmaceuticals. The sales Trainee is given opportunity to generate ideas without fear of judgment. training programme need to be conducted around teams. Training & Interpersonal skills. a pharmaceutical firm.based on assumptions that creativity can be learned and fostered and that sales people can solve their problems in newer and more creative ways. . (d) Creativity Training: Popular approach in brainstorming.

pace of delivery.The sequence of the delivery should be streamlined to aid retention. Reinforce the message The presentation should be limited to the attention span of the participants 9usually 20 minutes).Department of MBA. Bangalore. which is examine in same depth. (2) Conferences: Highly structured device for conveying message on a large scale and often to an audience of 100 people. Used to motivate sale people & presented with some entertainment. Uttamkumar YV. Structure the Lecture. Speakers are specialists who make brief presentation. of people at the same time and cover specific topics rather than a range of subjects. But a change in style. (3) Seminar: It is a conference on a smaller scale with in corporate a greater degree of participation from the members. Centered on a single theme. . BIT. (1) Lecture Method: The trainee is knowledgeable (expert) & the lecture is delivered to a no. session for question & distribution handouts can help in extending attention span.Sales And Retail Management - Training Programme obj Team available Participant level of understanding Previous experience Equipment needed/ degree of interaction required/ participation required/ size of group/ facilities available.

criticize (15 minutes) .2nd team is seated around the first team & they are asked observes comment.The roles of two teams are then reversed both the teams came together in full group sessions share/exchange as the process which were observed (8) Workshops: . Bangalore.Method of designing training around identified work problem in order to find the solutions in the training programme Objectives: Obtain contribution from all individuals who are affected & to optimize the resources available to solve the problem. (9) Sensitivity Training: Uttamkumar YV. (5) Role Play: Innovative Method. .To expand the sale trainees experience by presenting them with a commonly encountered situation and asks them to pair themselves in the role of parties (customers) involved & then act in the way in which the circumstances might reach an appropriate conclusion through the play.1st team discuss a topic for 30 minutes . (7) Fish Bowl: .Sales And Retail Management (4) Discussion: Common method useful for the presentation of ideas and plan particularly when issues related to sale have to be clarified or expanded & the views of different sales groups are ascertained.To train 2 teams . BIT.The 1st team has no right to reply or even to comment as any criticism at this stage .Department of MBA. (6) Case study: Objectives.present the sale trainees with real life business situation & provide considerable background information from which they are either expected to analyze & compile the outcome of a series of events as to provide solution to specific problem.

.Increase the awareness of our own behavior and to understand how it is received & interpreted by other. (10) Transaction Analysis: Popular method for studying interpersonal relationshipsDeveloped by Eric Berne. open. both internal/external. To add to the realism of the in-tray exercise. . This technique relies on its effectiveness in creating a climate in which participants are willing to be frank. Trainee operates as the ego states of participants and try to find out the transaction of people by analyzing the various ego states and transaction among them.Department of MBA. such as interpretation from telephone calls. study group. (11) In Tray Exercise: This exercise provides the trainees with a day’s mail. group. other features of normal working. decide priorities and allocate time.Develops sensitivity to the behavior exhibited by other and enables the trainee to diagnose the causes of that behavior. group dynamics & group relationship) a type of laboratory training Objectives: . Bangalore. & honest with each other.Sales And Retail Management (T. BIT. Focus is on personal behavior & the discussion focuses on one’s private thoughts. Trainees are required to study all the documents. Uttamkumar YV. unexpected mission including customers are often built into the programme.

. BIT. Uttamkumar YV. Also.Sales And Retail Management Evaluation Phase: Effectiveness is measured either in monetary or non-monetary terms. Companies also conduct a test before & after the training programme.Department of MBA. by the collection of ratings by both the trainee & the trainee in every programme. Bangalore. Designing a sales Training Program: (1) Deciding as the Training objectives (2) Deciding on the content (3) Deciding on the method (4) Deciding on the arrangements made for the execution of training programme (5) Deciding on the procedure to evaluate training programme.

Bangalore.Industrial product. BIT.more effort requiredhigh performance Types of compensation plan: (1) Financial compensation plan: (a) Straight salary: Uttamkumar YV. (4) Nature of product. sales person has to put lot of effort.Sales And Retail Management MODULE 4 SALES FORCE MOTIVATION AND COMPENSATION .company emphasis as heavy advertising and hence (sales person plays the role of order giver). .Factors influencing design of compensation plan: (1) Financial ability of the firm.Department of pay the employees (current & future) as a continuous bans (2) Pull model.( put less effort) salary will be less (3) When the size of mkt is very he ll demand more salary.

(c ) Bonus & Incentives: .Weekly.paying during festival time.Linked directly with performance . .It’s a compensation mix-60% salary 30% commission 10% allowance.Used by companies emphasize on relational selling/ high % of time is developed to non-selling . margins.The objective of such plan is to help sales people when they are not able to achieve target during recession period (f) Allied methods: Uttamkumar YV. estimate commission. monthly & forthrightly.Department of MBA.Indian companies. (b)Straight commission plan: . .orgn.The salesperson can draw from this account within the permissible limit .Makes sales people free from financial worries. (c) Salary plus Incentive plan: .It does not assure an assured flow of income-loyalty to orgn & cost also goes up as the sales manager has to spend time & resource to calculate sum supplemental payment for avg. Bangalore. (d) Drawing Account & Commission plan: . .Used to keep talented people & to weed out poor performers. performance. audit the call report. . higher sale volume .Bonus. many companies also go for annual payment.It can be executed in 2 ways: Lateate paid irrespective of level of aim Progressive & aggressive.Sales And Retail Management . Opens account in the name of sales person & credits the commission . BIT.Limitation of above 2 methods independently led companies to go for this combination plan. .

Profit sharing plan (brings sense of ownership & cordial relationship). Steps in Designing Compensation Plan: Step 1: Determine ales force & compensation objectives. exploitation of territory potential) Step 2: Determine major compensation issues. profit sharing. BIT. gross margin . club membership. life insurance. also build a democratic & participative atmosphere in the company. driver. (3) Non.reimburse expenses of the field sales force e) Perks: include the provisions for a car. stock options. Financial perks(conveyance. Status perks(job title. personal growth perks(education. car. Uttamkumar YV. sending sales people for training. Bangalore. gardner. wage structure. .Department of MBA. (Sales space). (comparing payment structure of the Industry & major competitors. the sales people who excel are awarded fo their outstanding contribution. wage level. These programmes can be designed to encoprise the individual/ team performance (c ) Fringe Benefits: These are employment benefits. mkt penetration. PR) along with delivery function. PF. displays. . pension provision Infosys’s & Wipro give stock option d) Expense Accounts:. economic condition) Step 3: Implement long term / short term compensation plan: Short term – Issues of low cost drive for firm. (b)Recognition Program: In GE capital . gratuity.Remuneration plan for specific people who are to discharge certain function ( road shows.Sales And Retail Management .Financial compensation: (a) Promotion: Mgt has to plan the promotion programme in such a way that the higher position seem worth aspiring & achievable to sale people.

MOTIVATING SALES FORCE Module-4 MOTIVATION Motivation is the technique to expand internal energy to achieve a goal or a reward and a process that identifies the needs and goals of sales people that drives them towards the achievement. disability benefits. . BIT. Uttamkumar YV. Performance(P)=Ability * Motivation -Motivation takes place in the context of work culture. across the organization while deciding on motivating people. Bangalore. The management need good communication and listening skills so that he can discover and understand people need and internal drives.Sales And Retail Management Long term – promotion. (Majority of the B2B selling situation. retirement pla. reward policies and level of interpersonal communication. (2) Team based compensation. -A manager should posses adequate knowledge about the work environment. life insurance Step 4: Relate rewards to performance Step 5: Measurement of performance Method of evaluation should also be objective & transparent Step 6: Approve the compensation plan Trends in Compensation: (1) Level of customer satisfaction is an important tool for evaluating & rewarding sales people.Department of MBA. the selling is done through the team selling strategy & cross functional teams are designed for handling customers objection in a better way.

Process of motivation: Motive Behavior Tension Reduction Goal Motives:Largely subjective and represents the mental picture of the person by explaining the rationale of human behavior. tension. . influence of personal learning and experience .Department of MBA. BIT. the sales persons inherited capabilities. Behavior:Comprises a series of activities that a person does by being motivated to achieve individual and organizational goal. motives.Sales And Retail Management Nature of motivation: . .motivation is a complex phenomenon that combines the individual needs. Goals:The goals chosen by individuals depends on various individuals depends on factors like the cultural norms and values.Individuals sets feed back from the environment which either reinforces behavior from processing certain goals. Motives and motivational drives:Uttamkumar YV. comforts and expectations . has a system of orientation goal of individual is shaped by forces within the individual and its interaction with surroundings. Bangalore.

Department of MBA.describes the psychological processes involves in the form of motivation and its directions.based physiological needs and seek to reduce tensions. Bangalore. need hierarchy theory Abraham maslow. Secondary.Curiosity manipulation etc induces the person to increase the amount of stimulation. Process theories.primary. Self actualization need Esteem need Social need Security need Physiological need Uttamkumar YV. General.Sales And Retail Management Motives.propanded and look into the hierarchy structure of the different types of needs of an individual over a period of time. Theories of motivation: Content theories (explain the structure of the needs and motives and how individuals priorities the needs .motives of power and achievement and affiliation.are the drives for the behavioral action of the person 3 Motives. Content theories1. . BIT.

water.proponed this theory by grasping the motivating variables into two categories such as hygiene factors and motivators . with subordinates •security supervision Uttamkumar YV. with superiors • work •wc.Department of MBA. satisfaction satisfaction and performance and performance Extrinsic – content . It is the need that urges individuals to optimize their potential.hygiene Intrinsic – contexts – motivators – satisfaction •corporate policy and • achievement administration • recognition •rel. . personal growth and recognition that one can experience in a job. High state of motivation. which offers challenges and scope for achievement Herzbergs 2 factors Neutral state of motivation.motivators are the factors that involves the feelings of achievement. power. Self Actualization: desire to grow more and more that is become everything that one is capable of becoming. shelter).arise out of physical danger Social and affiliation need: describes the individuals desire for company and companionship of other peoples Esteem needs: sense of self work. Safety need: related to physical and physiological safety from external threat. BIT. salary • responsibility •rel. Bangalore. with personnel • advancement •personal life • growth •rel.hygiene factors are those factors that when absent in any motivational program increase dissatisfaction with job and when present help in preventing dissatisfaction but do not increase satisfaction or motivation . They are identified with bodies and are relatively independent of each other.Sales And Retail Management Physiological need: this is the basic needs and they have the greatest strengths among all the needs of the individuals (food. HerZ bergs two factory theory: . personal recognition and satisfaction of these needs produces self confidence prestige.

Work is inherently distasteful to many people. . • Self control is indispensable in activity organizational goal • The capacity in solving organizational problem is widely distributed in the population. McGregor Theory X and Theory Y Theory. job security and fringe benefits relatedness needs involved being understood and accepted by people above / below around at work .Sales And Retail Management Alderfer’s ERG Theory .X (Assumption) .people are initially interested in satisfying there existence need.the ERG theory argue that it is possible for than one set of need to be activated at the same time. which combines physiological and security factors (pay. not interested in assuming responsibility and want safety.People are motivated by money and threat of punishment .growth needs are those involved with the desire for esteem and self actualization .Most people have less capacity for creativity in solving Organizational problems Theory y• Work is as natural as play if the working conditions are favorable. BIT. • The Individual is seen as growth and capacity • Integrating individual goal with those of organizational(enlarging competency) Uttamkumar YV. . • People can be self directed and creative. physical condition.Most people prefer to be directed. Bangalore.he proposed a modified need hierarchy with three levels . .Department of MBA.

it may not be appropriate to behave consistently with these assumptions all the time.Department of MBA.Sales And Retail Management Conclusions:Theory x and y are attitudes or predisposition towards people. Bangalore.Best solution from any person may be implemented . Employees tend to make social comparison of inputs (education. although the best assumption for a manager to have may be theory y. time spent in job) for themselves and others in the organization. .The motivation of people is influenced by the extent to which they feel that they are treated fairly and equitably. 2 theory of William Ouchy:-Originated from Japanese practicer .Low performance(punishment) Process Theory-Equity Theory.How much one wants the reward (valance) .one’s estimate that performance will result in receiving reward (instrumentality) Uttamkumar YV.’s estimate of the probability that efforts it result in successful performance (expectancy) .Explain the relationship of employee motivation with the perception and feelings of the sales people . Expectancy Theory Propounded by Victor Vroom who stated that motivation is a product of three factors namely .Problem is discussed informally And solution is sought .The success of Japanese firm in Company To American firm attributed to long term employment. participative decision making .does repentance agreement of all the members in the organization . efforts.

BIT. method of communication Designing and motivational program 1) program objective 2) selection motivational tools :. high expectancy and high instrumentality Force = Valance * Expectancy SKinner’s Reinforcement Theory -Positive reinforcement or behavioral modification theory . Bangalore. leadership style . and attribution about why performance has been good or bad  Emotional conditions (territory potential and strength of competition)  Organizational policies procedures -Type and nature of scale of supervisors. They analyzed work situations (work course worker the way do act ) .The multiplicative contribution that produces the strongest motivation is high positive valance.reward .hen initiate changes to eliminate changes troublesome areas .Department of MBA.feed back . span of control. .if performance expected ways are found to help people Factors Influencing the Motivation of Sales person  personal characteristics Individual satisfaction with current job.organization and individuals should be integrated Uttamkumar YV.Sales And Retail Management .specific goals are then set with workers participation . the demographic variable (personality traits).individual Can be motivated by proper design of their work environment and by praise for their performance and that punishment for poor performance produces negative results.

Sales And Retail Management . Performance appraisal process Appraisal Criteria . Evaluation of Sales person .managers need to take results of the previous programs and results . . crucial part of the evaluation is the process of identification. national and international level. including the selection for promotion. supporting.timing. BIT. communicate regional. help them to solve the problem.pre-requisite effective sales force management .useful to test the effectiveness of the sales programme .performance is the process of evaluating the performance and qualification and qualification of the sales force in terms of the requirements of the job to ensure effective administration. providing guidance * group methods (conferences.those aspect or dimensions of job performance -selection of dimension in critical -assigning a relative score to reflect a sales persons performance Uttamkumar YV. coaching.identification of what is to be measured . place. duration. reward and other recognition in the organization. 3) The communication should be clear in and content so that the sales person can understand so at what level of commitment he likely to participate in the reward system of organization. * Individual/regular contact with sales people and application of the performance. Bangalore.Department of MBA. measurement and management of a sale force in organization .

Bangalore.Department of MBA. Absolute judgment : Sales manager is asked to make judgment about the sales persons performance based on the sales performance measured in sales volume. behavior) Deciding on the criteria For measuring performance Deciding on the conduct of the Performance appraisal Deciding on evaluation of individual and teams comparing of actual performance With stds Deciding on the frequency of the Performance appraisal The external variables And their influence Methods 1) relative and Absolute judgment: Relative : sales manager is asked to compare the sales persons performance with that other people. Uttamkumar YV.Sales And Retail Management The techniques are classified on the pairs of type of judgment required for evaluations and focus of the measure (trait. . BIT. 2)Trait based : -criteria related to the traits and the behavior of the sales fore. market share or revenue realization.

4) behavior based: . . Performance in rating form: Include table here** Uttamkumar YV. no of products sold in units or volume. Rating forms are statements in the form of an inventory or a list of adjectives about the sales job. Bangalore.the most common approach used in this method are called M. -rates sales people as a series of adjectives. Same of the outcome instruments that allow to asses the results achieved by sales fore are amt of sales.Sales And Retail Management . M. .B. 5)performance rating: These instruments include rating forms.Department of MBA.O is a goal directed approach to performance appraisal in which sales manager and together set goal for evaluation period. 6)fored choice scales: The score and weight are predefined and the sales manager is forced to give a score or weight act of the assigned weights. service performed.related to selling criteria and for this the sales manager records how frequently behaviors listed in a checklist of ratings have occurred.O. BIT. 3)outcome based : -measure the result of the selling process.the most commonly used traits for the purpose are reliability energy and loyalty. -it provides uniform and consistent information about sales people. forced choice scales and behavioral observations scales. the no of active accounts and relationship with customer. -presentation quality product knowledge closing ability.B.

and the level of communication and listening skills. Bangalore. Uttamkumar YV. -this includes events like the launch of a major price war by the competitor and the entry of new not give much importance to the behavioral issues that help sales people sort uot their performance evaluated problems and so it is used objective bared demonstration and follow up. -this helps in identifying certain behavior which are desirable and undesirable in the context of job. BIT. ascertaining customer needs. 10) Activity Reports: -explain the unusual events and incidents that occur in the field as reported by a sales manager and sales people including . 11) Combination methods -combination of outcome and behavior bared eating models . 9) silent call monitoring scores: Sales managers rating of the sales persons performance during actual calls to the customer the rating can come a wide range of the aspects like greeting.Sales And Retail Management 7) behavioral observation scale: Purely based on significant job incidents which describe behavior that can either enhance or reduce the level of performance -the evaluator focuses on special behavior which significantly influences performances.Department of MBA. 8)call reports: -periodic accounts and customer statements prepared by sales persons of how they are dividing this working time between various of the jobs. .

. customers appraisal and self appraisal) Are included. subordinates. Uttamkumar YV. Actual performance: Evaluate the salespersons actual performance against either industry std (or) stds set by the organization. Bangalore.Sales And Retail Management A combination plan of evaluation Name 1. BIT.Department of MBA.john 2. -either * -receiving effect.the most recent performance has effect or the current performance. Rating error: -occur when a sales manager inflate/deflate the sub’s performance rating. -central tendency error— Hallo effect error – associating certain people into some category as good or bad as the basis of some characteristics.sufrat total calls made total sales arg sale per content total cust satisfac index Conduct of performance appraisal Rater—immediate supervisor & Customer Under 360 appraisal (immediate supervisor.deepak 3.rakesh 4.

Sales And Retail Management -many sales people by to collect actual data over a set of territories and calculate the avg performance of all the territories and then to compare each salespersons with the average of the performance of all the sales. -----------------ALL THE BEST ------------ Uttamkumar YV. BIT. Bangalore. .Department of MBA.

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