• Introduction to Sales management

• The Selling process

• Prospecting
• Handling objections
• Closing sales

• Theories of Selling
 What is Sales Management?

• One definition: “The management of the personal

selling part of a company’s marketing function.”
• Another definition: “The process of planning,
directing, and controlling of personal selling,
including recruiting, selecting, equipping, assigning,
supervising, paying, and motivating the personal
sales force.
 Nature of Sales Management

Head-Sales
& Marketing

G.M G.M– G.M– G.M– G.M –

Advertising Market Sales Products Customer
/Promotion Research Service

Its integration with marketing management

 Frontline Sales Responsibilities / Positions / Jobs
Sales Position Brief Description Examples
• Delivery salesperson • Delivery of products to business • Milk, newspapers to households
customers or households.
• Also takes orders. • Soft drinks, bread to retail stores.

• Order taker (Response selling)
• Inside order taker • Behind counter in a garment
shop
• Telemarketing salesperson takes • Pharma products’ orders from
orders over telephone nursing homes
• Outside order taker. Also • Food, clothing products’ orders
performs other tasks from retailers

• Sales support • Provide information, build • Medical reps. in pharma industry

• Missionary selling goodwill, introduce new products
• Technical selling • Technical information, assistance • Steel, Chemical industries

• Order-getter (Creative, Problem- • Getting orders from existing and • Automobiles, refrigerators,
solving, Consultative selling) new household consumers insurance policies
• Getting orders from business • Software and business solutions
customers, by solving their
business and technology problems
 Importance of Personal Selling and Sales
Management
• The only function / department in a company that
generates revenue / income
• The financial results of a firm depend on the
performance of the sales department / management
• Many salespeople are among the best paid people in
business
• It is one of the fastest and surest routes to the top
management
 Skills of a Successful Sales Manager

• People skills include abilities to motivate, lead,

communicate, coordinate, team-oriented
relationship, and mentoring
• Managing skills consist of planning, organizing,
controlling and decision making
• Technical skills include training, selling, negotiating,
problem-solving, and use of computers
 Types of Sales Managers / Levels of Sales
Management Positions
CEO /
President

V. P. Sales / Top-Level Sales Managers /

V. P. Marketing Leaders

National Sales Manager

Regional / Zonal / Divisional

Middle-Level Sales Managers
Sales Managers

District / Branch / Area Sales Managers First / Lower Level Sales Managers

Sales Trainee / Sales Person / Sales Representative

 To illustrate the relationship between sales objectives,
strategies and tactics, consider:
Sales Goals / Marketing Sales and Distribution Strategy Tactics /
Objectives Strategy Action plans

 Increase  Enter export  Identify the countries  Marketing / sales head to get
sales volume markets relevant information
by 15  Decide distribution channels  Negotiate and sign
percent agreements in 3-5 months
with intermediaries

 Penetrate  Review and improve  Add channels and members

existing salesforce training, motivation  Train salespeople in
domestic and compensation deficient areas
markets  Use effective and efficient  Train field salesmanagers in
channels effective supervision
 Link sales volume quotas to
the incentive scheme of the
compensation plan
• Achieving sales volume & sales value
• Contribution to profits
• Growth
Sales – Cost of sales = Gross Margin

Gross margin – Expenses = Net profit

• Determining sales force objectives and goals
• Finalizing sales force organization, size, territory and
quota
• Forecasting and budgeting sales
• Selecting, recruiting and training the sales force
• Motivating and leading the sales force
• Designing the compensation plan and control
systems
• Designing career growth plans
• Building relationship strategies with key customers
 Buying Process of Consumers and Business Buyers
Five – stage model for household
customers
1. Problem / need recognition
2. Information search / collection
3. Evaluate alternatives
4. Purchase decision
5. Post – purchase behaviour
Eight – stage model for business
buyers
1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
6. Evaluation and selection of
suppliers
7. Selection of purchase order routine
8. Performance feedback and post-
purchase evaluation
• Selling software to banks / financial institution
• Selling photo-copiers to large company offices
• Selling Financial products (Bonds/Mutual
funds/Life insurance)
• Selling industrial product such as switchgear or a
motor to a manufacturing company
• Selling House-keeping products to offices
• Selling Staffing solutions to BPOs
• Selling current account/loan to prospective
customer
 Pre sale
Prospecting Pre-approach Approach
preparation

Follow-up Handling Sales

Closing the sale
action objections presentation
Company Knowledge Product Knowledge

Sales
executive
Knowledge

Competitors knowledge
• Does the prospect have money to buy
• Does the prospect have the authority to buy
• Does the prospect have the need to buy
• Cold calling
• Direct mail
• Centre of influence
• Networking
• Non-competing sales force
• Telemarketing
• Customer referral
• Observation
• Prospect pool
• Customers
• Leads
• Referrals
• Orphan customers
• Collecting customer data
• Develop a sales strategy
• Matching the product benefit to the need of the
consumer
• Who are the Key decision makers
• What kind of business volume is likely
• Taking the appointment
• Probing
• Listening
• Avoid Overcomplicating jargon
• Two – way communication
• Create interest
• Keeping time available in mind
• Focus on product benefits
• Listening
• Proofs of performance and brand promise
• Listen
• Superior feature method
• Yes…but method
• Feel, felt, found method
• Another angle method
• Comparison method
• Narrative method
• Testimonial method
• Assumptive close
• Caution close
• Direct order method
• Choice narrowing method
• Ownership suggestion method
• The “Doorknob” close method
• Generate new leads / referral leads
• Cross selling & upselling
• Understand competitive activity
• Maintaining goodwill
• After-sales service
• Evaluation of the sales personnel
 Pre sale
Prospecting Pre-approach Approach
preparation

Follow-up Handling Sales

Closing the sale
action objections presentation

Char kadam bus char kadam

Chal do ne sath mere…
• AIDAS Theory of selling
• “Buying formula” theory of selling
• “Right set of circumstances ” theory of selling
• “Behavioral Equation”theory
• Securing Attention
• Gaining Interest
• Kindling Desire
• Inducing Action
• Building Satisfaction
Need (Or Problem)  Solution  Purchase

Need (Or Problem)  Solution  Purchase  Satisfaction

Need (Or Problem)  Product Purchase  Satisfaction

Service /
Trade name
B=PXDXKXV

B = Response i.e. Act of purchasing the brand

P = Predisposition i.e force of habit
D = Personal drive level (amount of motivation)
K = incentive potential (potential satisfaction)
V = intensity of all cues
• Pioneers of Anytime-Anywhere banking
• Cash withdrawal of 50k everyday
• Minimum balance of 5,000
• Autosweep facility : Amount which is in excess of
10,000 gets converted into FDs of 5k each
• Access the account from anywhere across the
country.
 Follow-up

Closing
Handling
objections

Account
Handling Opening
objections

Presentation Product presentation / benefits

Customer
contact BDE calls for appointment

Prospecting Through branch referrals / FOS activity