INTRODUCTION TO SALES AND

DISTRIBUTION MANAGEMENT
Agenda

Intro: Creating Needs and Wants

Understanding of Salesmanship

Duties of successful salesman

The 7-Step Sales process

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Agenda

Intro: Creating Needs and Wants

Understanding of Salesmanship

Duties of successful salesman

The 7-Step Sales process

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Sales: Introduction

 Sales refers to the exchange of goods/ commodities against money or service.

It is the only revenue generating function in an organization. It has formed an
important part in business throughout history. Even prior to the introduction of
money, people used to exchange goods in order to fulfill the needs, which is
known as the barter system.
 Example of Barter System A has 100 kg of rice and B has 50 kg of wheat. Here,
A needs wheat and B needs rice. They agree to exchange 50 kg of rice and 25
kg of wheat upon mutual understanding. Conditions of Sales
 There are two parties involved in the transaction, the seller and the buyer.
 The seller is the provider of goods or services and the buyer is the purchaser in
exchange of money. The seller of goods has to transfer the title of ownership of
the item to the buyer upon an agreed price. A person who sells goods or
services on behalf of the seller is known as the salesman/woman.

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Distribution: Introduction

 Distribution is the process of making a product or service available for use or

consumption to the end consumer or business.
 Distribution could be of the following two types:
1.Direct Distribution It can be defined as expanding or moving from one place to
another without changing direction or stopping. For example, Bata has no
distribution channel; it sells its products directly to the end consumers.
2. Indirect Distribution It can be defined as means that are not directly caused by
or resulting from something. For example, LG sells its product from the factory
to the dealers, and it reaches the consumers through dealers.

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Creating Needs & Wants

 Needs and wants are created in a number of ways

 Marketing and Advertising can stimulate needs
 Customers can determine the own needs in response to a problem they are
expecting
 Sales professionals can stimulate the need through suggestions and effective
selling

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The Key Principle

The key principle in selling is that

unless a customer has a need,
there is no opportunity to sell

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 Basic Buying Reasons

All finally boils to two main reasons why customer buy

1. Their need or want is to fix a problem that they perceive they have.

2. They wish to make something that is already effective – MUCH better.

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 Traditional Selling Approach

 Survive the customers disinterest and rejection

 Focus on their own needs (rather than the customer‟s
need) for the sale
 Do „deals‟ with the customer because price is the only
way to do the business
 Explain product features and characteristics
 Compete with the customer – beat them into a sale
 Sell through clever tricks and techniques

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 The Problem Solving Approach

 Adopting a success orientation and acting positively.

 Working as a problem solver.
 Understanding customers wants and needs.
 Relating product benefits rather than features.
 Using sound sales tactics in order to close the sale.
 Working on a sale that frequently takes a number of calls.

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Relationship Approach

 Focus on the total business relationship with the

customer
 Develop and satisfy customer needs
 Operate Strategically; developing plans for selling to
multiple buyers in different ways
 Work Creatively.
 Sell as a part of the sales team.
 Take a long term approach.
 Act as a consultative seller.

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Agenda

Intro: Creating Needs and Wants

Understanding of Salesmanship

Duties of successful salesman

The 7-Step Sales process

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The CEO Speak :

“ Best way to sell something:

DON’T SELL ANYTHING.

Earn the awareness, respect and trust of those who might buy.”

-Rand Fishkin
CEO and Founder, SEOmoz

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 The Art of Salesmanship
 Here, we are about to discover ways on how to
be an effective SALESMAN. This will help us
master our skills, ability and knowledge of how
to close a sale.
 This includes basic knowledge of being a sales
person, key points to remember when doing a
sale and customer related skills for more
effective salesman-client relation.

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What is Salesmanship?

 It is also an art of persuading one to spent money

 Art of persuading someone to buy good or products that will give him a lasting
satisfaction

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What is Salesmanship?

 sales·man·ship
noun \-ˌship\: the skill of persuading people to buy things or to accept or
agree to something
 Full Definition of SALESMANSHIP
1: the skill or art of selling
2: ability or effectiveness in selling or in presenting
persuasively <political salesmanship>

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Salesmanship
 Art of helping your prospects or customer
achieve their goal.
 Art of solving CUSTOMER‟s Problem
Art of converting human wants into needs by
persuading and not compulsion
An art of influencing others

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How can one be an efficient Salesman?

S Support the client‟s need.

A Adjust to their need.
L Love their objection.
E Excite them with your answer.
S Serve them your solution (PRODUCT/Service)
M Make a Strong Rapport/Relationship
A Aim for the best solution/answer to their needs
N NEVER! See them as “MONEY”

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What makes one successful?

 They sell the product people want.

 They convince people they want
 80% of Sales success is psychological.
 Top salespeople are OPTIMISTS.
 They have a positive mental attitude.

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Agenda

Intro: Creating Needs and Wants

Understanding of Salesmanship

Duties of successful salesman

The 7-Step Sales process

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Effective Sales Executive: What does he do?

What does he do?

i. Operating Function
ii. Planning Function

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Effective Sales Executive: What does he do?

 Selling Accounts
 Sales Force Management
 Coordinating with other functions
 Dealer Handling
 Communicating / Coordinating with Marketing
 Sets Personal Selling Goals
 Sales Organization
 Selling Strategies
 Staffing, Developing Skills
 Providing Leadership
 Developing Sales Programs
 Customer / Dealer Relationships 22
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The Effective Sales Executive

Who is an effective sales executive?

Defines exact function & duties of person vis-à-vis

company goals
Able to select & train capable subordinates & delegates
authority – empowerment – least supervision
Time utilization
 Time for thinking & planning
 Time for office / field
Act as skilled leaders, motivate people

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Interrelationships

Top Management

 Integrate personal goals with organization

 Don’t aim to be indispensable; delegate authority
 Good problem solvers & decision makers
 Keep management involved
 Listens & keeps record of important conversations
 Follows given code of conduct

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Product Management

Regular involvement for new products, product quality,

services rendered

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Pricing Management

Since sales has the pulse of the market policies are co-operative
decisions.

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Distribution Management

Marketing channels determine the pattern of sales force

operations – the no. of outlets.

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Promotion Management

 SEs implement promotional plans.

 Personal selling is an important promotional tool,
expenses have to be controlled.
 Provide important information to advertising
department regarding consumers, motives,
behaviours

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Agenda

Intro: Creating Needs and Wants

Understanding of Salesmanship

Duties of successful salesman

The 7-Step Sales process

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The 7-Step Sales process

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1 – Prospecting and Evaluating

 Every sale starts with a lead. Leads are found through prospecting, also known
as lead generation. There are various ways for your company to prospect such
as through marketing methods, networking at live events or trade shows as well
as on social media, purchased lists, cold calling and referrals. The prospecting
process helps identify potential buyers who have expressed interest in your
product or service or who might be interested based on their demographics,
industry or other characteristics.

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2-Initial Contact & Qualifying

 Regardless of how you acquire leads, your sales reps will need to make initial
contact with them. This may be via a phone call, email or through social media.
During this first interaction the goal is for your team member to gather key
information to determine if leads are a good match for your product or
service. Qualifying questions are typically related to budget, authority, need
and timeline. When the lead is a qualified prospect, your rep may proceed with
a needs assessment. Depending on your product or service, this may be
conducted during a separate interaction, by phone or in person, and scheduled
at the close of the qualifying call.

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3 - Needs Assessment

 At this stage, reps need to have a series of standard questions prepared to ask
prospects. This will prevent them from forgetting to enquire about any important
details while guiding the conversation. Plus, this makes them look more
professional to potential customers. These questions should be open-ended to
encourage the prospect to talk. Reps need to be sure to listen more than they
speak at this point in the sales process. Although they may be tempted, they
should not start discussing product at this point. The goal is to
thoroughly understand the prospect’s situation, challenges and
motivations to potentially make a change by purchasing your product or
service. This information makes it easier for your team members to tailor their
sales pitch or demo to each specific prospect. Plus it allows them to anticipate
any objections by understanding what might prevent the potential customer from
moving forward with your solution.

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3-Needs Assessment

Examples of questions that might be included in this stage are:

 What did you like or dislike about your previous provider?
 What business problem are you hoping we‟ll be able to solve?
 Describe your current situation.
 Tell me how this situation will look when you‟ve addressed your current
business problem.
When all questions have been discussed, it is important that your reps verify their
understanding of what the prospect told them. The best way for them to do this
is by recapping what they heard and requesting confirmation. This ensures that
the rep is on the same page as the prospect before proceeding to the next step.
If needed, additional questions may be asked to clear up any areas the rep
misinterpreted.

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4 - Sales Pitch or Product Demo

 At this point in the sales process it‟s time to clearly communicate the value of
your solution in terms of the prospects needs, challenges and desired end state.
This is effectively accomplished by connecting the potential customer‟s needs
and wants with the corresponding features and benefits of your product offering.
This is why it is critical that reps gain a clear understanding of what is discussed
during the needs assessment stage. Plus, additional information to have a good
grasp of during this stage is based on any further details about the prospect‟s
company and industry. This will provide additional context and facilitate an even
better quality pitch or demo. Be sure that your reps make note of any specific
benefits in which the prospect is most enthusiastic about. At the end of this
stage a proposal, if appropriate to your product or service, is typically scheduled
for a mutually agreed upon date.

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5 - Proposal and Handling Objections

 Not all products and services require a separate proposal. If yours does, it
should be customized for the prospect based on all that your sales rep has
learned about their needs, challenges and motivations so far. They‟ll want to
focus on the aspects that are of greatest value to the potential customer and
highlight how it will help them reach their desired outcome. Once the proposal
has been presented (or if there isn‟t one, this would occur after the sales pitch or
demonstration), the prospect often expresses questions or concerns. These are
also known as objections. There are usually a limited number of recurring
objections for any given offering. Keep a record of these and what responses
are best to address these. Sharing this information across your sales team will
ensure that your reps won‟t be caught off guard by an objection and will always
be prepared with the most effective responses to remove any roadblocks to
closing the sale.

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6 - Closing

 This is where prospects commit to purchase or to stop the process. It is just one
step in what may be a very long sales cycle. While this may seem like the most
important step, it is only successful when all the previous steps have been
completed properly and in order. There are hundreds of different closing
techniques, tips and tricks, but the most important thing to remember is that it is
not a standalone event. When the sale is made, prospects agree on your terms
and price or negotiate for mutually beneficial ones. All objections have been
addressed and all details are finalized for delivery, fulfillment or related actions.
This may also involve introductions to others in your company who will be
handling these next steps.

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7 - Following Up, Repeat Business
& Referrals

 Happy customers make excellent candidates for your other services. By

nurturing an ongoing relationship with them, they‟re often receptive to
purchasing additional products or services and repeat business. Plus, they are
terrific source of referrals! A great way to continue these relationships is
through marketing communications such as updates about new offerings,
industry news, an e-newsletter or some sort of interactive rewards
program. This way, your customers will always think of your company first when
they have a related requirement or a friend who has one.

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Thank you
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