SDM session 2

Shelendra K. Tyagi

12/2/2020 1
When you become a manager…….

◼ Of a sales team, you have been trained to get results through

other people rather than , as a sales person, getting them for
yourself and by your own efforts

◼ the sales team you manage want to help you to achieve your
planned sales objectives

◼ By helping you to achieve your planned objective, the

individual , very personal and often private motivational needs
of your sales people will be met

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The Place of a Sales Manager

◼ He is the direct link between the company, management, the

sales force and the customer

◼ For the sales force he is the management

◼ His management knowledge , skills and competence largely

determine the productive efficiency of the sales force, the
quality and quantity of the selling results produced

◼ He controls the selling costs, whether sales targets are met,

and above all the character and morale of the sales force

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Linkages between Sales & Distribution Management
◼ A marketing channel is a set of interdependent organizations involved in the
process of making a product or service available for use or consumption

◼ Either Sales Management or distribution management can not exist,

operate or perform without each other

◼ To achieve the twin objective of sales revenue & growth, the sales
management plans the strategy and action plans (tactics) and distribution
management has the role to execute these plans

◼ The distribution channels are your interface with your customer

◼ A well defined channel strategy is needed to achieve your segmentation

objectives

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Distribution Channels

Needs Wants Exchange

Why do we need intermediaries

Temporal discrepancy
Spatial Discrepancy
Need to break the bulk

Need for assortment

Role of Intermediaries:
◼ Intermediaries facilitate searches on both ends of channel

◼ Independent intermediaries in a marketing channel perform the valuable function of

sorting goods.

▪ Sorting Out
▪ Accumulation
▪ Allocation (Breaking Bulk)
▪ Assorting

◼ Intermediaries can be viewed as creating utility for the end user.

◼ Routinization of Transactions

◼ Reduction in number of contacts

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Role of Distribution Management for some of the
Sales Management Actions/Tasks
◼ Sales Management Tasks
❑ Strategy for effective coverage of
markets and outlets
❑ Strategy for handling customer
complaint
❑ Planning for local advertising and
sales promotion
12/2/2020
◼ Distribution Management Role
❑ Follow Call Plan
❑ Make customer call productive
❑ Use multi-channel approach
❑ Prompt action at the customer
interface level
❑ If the problem persists, involve
senior sales & service people
❑ Co-ordination with distribution
channels
❑ Responsibility of execution with
distribution channels
❑ Expenses are shared between the
company and intermediaries
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 Flows in a Channel

Physical Possession

Information
Promotion

Negotiation

Financing

Risking

Ordering

Payment
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 Channel Flows

Manufacturer Money

Goods Bank

Money
Distributor
Goods

Money
Retailer.3
Retailer.1 Retailer.2

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 Case Study-DELL Computers

Suppliers Shipping 2 days

DELL 3 days
WAREHOUSE
Assembly
Customer Customs
2 days
3 days
Local Shipping
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Buying decision process

◼ Five basic steps in the buying decision:

1.Need arousal
2.Collection of information
3.Information evaluation
4.Purchase decision
5.Post purchase:
◼ Satisfaction

◼ Dissonance

12
 Personal, Psychological, Cultural and Social Forces that
Influence Consumers’ Buying Behavior

Cultural Influences Personal Influences Psychological Influences Social Influences

Age & Lifecycle stage Motivation
Culture Occupation
Perception Reference Groups
Subculture Economic Situation
Learning Family
Lifestyle
Social Class Personality & Self concept Beliefs & Attitudes Roles & Status

Consumer buying decision process

13
OBB - Personal & Organizational Needs

Personal Goals Organizational Goals

◼ Want a feeling of Power ◼ Control Cost in product use

situation
◼ Seek Personal Pleasure
◼ Few breakdown of products
◼ Desire Job Security
◼ Dependable delivery for repeat
◼ Want to be well liked purchases

◼ Want respect ◼ Adequate supply of product

◼ Cost within budget limit

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Buying Situations

The Three Classes of

15
Business Buying Process
◼ Problem Recognition
◼ Can occur from internal or external stimuli

◼ General Need Description

◼ In this stage company describes the general characteristics and quantity of the needed item.

◼ Product Specification

◼ The stage of the business buying process in which the buying organization decides on and specifies the best
technical product characteristics for needed item

◼ Supplier Search

◼ Proposal Solicitation
◼ The stage of the business buying process in which the buyer invites qualified suppliers to submit the proposals.

◼ Supplier Selection
◼ The stage in which the buyer reviews proposals and select a supplier or suppliers

◼ Order-Routine Specification

◼ The stage in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications,
quantity needed, expected time of delivery, return policies, warranties and payment terms.

◼ Performance Review

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Summary of Major Selling Issues

◼ As a salesperson, be knowledgeable.

◼ Understand the characteristics of the target market and how these

characteristics relate to the buyer’s behavior.

◼ The individual goes through various steps in the three buying situations
of routine decision making, limited decision making, and extensive
decision making.

◼ Uncover who is involved in the buying decision and the main factors
that influence the decision.

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Summary of Major Selling Issues, cont…
◼ Psychological factors include the buyer’s motives,
perceptions, learning, attitudes, beliefs, and personality.

◼ Not all prospects will buy your products due to the many
factors influencing their buying decision.

◼ You will need to uncover buyer’s needs, solve buyer’s

problems, and provide the knowledge that allows them to
develop personal attitudes toward the product.

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Sales Management
Five years ago John Salley graduated with a computer science degree
from MIT. One year later, he earned his MBA from Texas A&M
university with a perfect “A” average. John was on every campus
recruiter’s list as an outstanding applicant. He had the brains,
personality, looks, and motivation of a winner. IBM convinced him to
take a sales job.

John was at the top of his class in the IBM sales-training program.
However, his first two years in sales resulted in an average
performance. He could not understand why, because his knowledge of
the products was outstanding. John could discuss in great depth the
most technical aspects of his products. He was not used to being
average. John loved sales but felt things had to change.

If you were in John’s position, what would you do?

Sales Management
◼ Psychology of Selling
◼ Your self-concept is made up of three parts: self-image (how you see yourself), self-
ideal (how you would like to be), and self-esteem (how much you like yourself).

◼ The law of cause and effect is the principle mental law of selling. This law states that
all events occur because something caused them to occur. If something happens,
there is a reason. Sales success is an effect. If you want that effect to happen, you
must create the causes

Self Image

Self Ideal

Self Esteem
Psychology of Selling
◼ Customers aren't interested in buying products or services. They're looking for ways to solve
problems or improve performance

◼ You have to know clearly and precisely what solutions or improvements your product or service
offers

◼ You have to know who your customers are, why they buy, and where they are located. Look at
your past customers

◼ Fear is a constant presence in selling. Salespeople must overcome the fear of rejection.

◼ Remember, customers also have a fear: the fear of failure.

Buyer-Seller Dyads
◼ Sociologists use the term “dyad” to describe a situation in which two people interact.

◼ The salesperson and the prospect, interacting with each other, constitute one
example of a “buyer-seller dyad”.

◼ Buying is risky. If you want to convince customers to buy, you must convince them
that the risk is low

◼ People buy for both practical (rational) and psychological (emotional) reasons

◼ The hot button is the most highly emotional reason for purchasing

◼ People do things for one reason: to be better off after the action
Personal Selling
◼ The key objective of personal selling is to retain existing customers and convert
prospects into clients.

◼ Retail selling,
◼ Business-to-Business selling
◼ Trade selling.

◼ In Retail selling, the salesperson communicates directly with individual customers.

◼ In Business-to-Business selling, the salesperson sells products to industrial buyers.

◼ In Trade selling, the salesperson sells products to marketing intermediaries such as

retailers and wholesalers.
The Personal Selling Process

◼ Selling Process

Follow-up
Closing The Sale
Objection Handling
Presentation/Demonstration
Need Assessment
Approach
Preapproach
Prospecting
The Personal Selling Process

◼ Prospecting and Qualifying

❑ Identifying customers that may have a need for

the product or service being sold
❑ Only a small number of prospects become
customers
❑ Prospecting requires effort, time, and commitment
The Personal Selling Process
◼ Preapproach:

❑ Learn as much about the prospective customer as

possible, prior to approaching them to ask for a
meeting

❑ Use all resources to learn before meeting

❑ Setting call objectives is important to being

productive and not wasting the customer’s time
The Personal Selling Process

◼ Approach:

❑ Meeting and greeting the customer for the first

time

❑ Involves salesperson’s appearance, opening

lines, and the follow-up remarks

❑ Listening to the customer is crucial

The Personal Selling Process
◼ Need Assessment
◼ Is stage in which the sales person must discover, clarify and understand the buyer’s
needs.

◼ L.O.C.A.T.E.

◼ Listen: Prospect may drop leading remarks like, “I wish I had a television like this
one”
◼ Observe: Look at prospects; study their surroundings.
◼ Combine: A skillful salesperson may talk to others, listen to a prospect, probe with
questions, make careful observations, and empathize – all in an effort to uncover the
prospect’s needs.
◼ Ask Questions: Questions often bring out needs that prospect would not reveal or
does not know.
◼ Talk to others: Ask others about a prospect’s needs.
◼ Empathize: Look at the situation from the customer’s point of view.
The Personal Selling Process
◼ Presentation and demonstration:

❑ What happens during the sales call

❑ Purpose is to uncover needs and then attempt to satisfy

them

❑ Questioning and listening skills are important

❑ Technology can help or get in the way

❑ Customers value empathy, honesty, punctuality, reliability,

thoroughness, and follow through
SELL Sequence

◼ SELL Sequence
 S - Show Feature - physical characteristic
 E - Explain advantage - performance characteristic
 L - Lead into benefit - result of advantage
 L - Let customer talk - ask opinion question

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The Personal Selling Process
◼ Handling objections:

❑ The salesperson seeks out, clarifies, and overcomes

customer objections to buying the product or service

❑ Customers object for different reasons: no need, lack of

information, product limitation, or as a negotiating tactic

❑ Handling objections is important, but preventing them is

more effective; need to look at qualifying skills and use of
features, advantages, and benefits
The Personal Selling Process
◼ Closing the sale:

❑ Asking the customer to buy (order) the product

❑ The only step that produces revenue; most important

❑ Fear of rejection makes this step the most difficult

❑ Keep it simple, honest, and direct; different types of closing

techniques make assumptions that can be dangerous if used
improperly
The Personal Selling Process
◼ Follow-up:

❑ What takes place after the sale

❑ To ensure customer satisfaction

❑ To keep the door open for repeat business

❑ Ask for referrals

Personal Selling and Customer Relationship Management

◼ The principals just described are transaction-oriented

◼ Companies want to encourage repeat purchasing because it is

more efficient than trying to replace lost customers

◼ It takes different skills to build relationships with customers

◼ Mutually profitable relationships are built on creating value,

offering packaged solutions to problems, and improving products
and processes
 Selling process from Relationship perspective:
◼ The Selling Process
Initiating the Relationship
•Gathering & Studying Precall Information
•Approaching & Initiating Contact
•Assessing the situation and discovering needs
Enhancing the Relationship
Developing the Relationship
Follow-up to assess customer satisfaction
•Select Presentation
Take Action to assure customer satisfaction
•Explain Features
Encourage critical encounters
•Confirm Benefits
Expand Collaborative involvement
•Handle Objections
Add Value and Enhance Mutual Opportunities
•Earn & Gain Commitment
Selling skills

◼ Communication,
◼ Listening,
◼ Conflict resolution/Objection handling,
◼ Negotiation,
◼ Persuasion
Matching selling & Relationship Strategies

Relationship Strategy
Transaction Solutions Partnership Collaborative

Stimulus Need Consultative Consultative

Response Satisfaction Customized

Mental States Problem Solving

Estimating Market Potential:

 Sales Management

Evaluation of Sales
Sales Planning Sales Operation
Performance
Market Potential Vs Sales Potential

 Market Potential is the total expected sales of a given product or service for the entire
industry in a specific market over a stated period of time.

 Sales Potential refers to the maximum share (or percentage) of market potential that
an individual firm can reasonably expect to achieve.

 Market potential is the total-industry concept, while sales potential refers to an

individual firm.

 In case of monopoly, market potential and sales potential are equal.

Estimating Market & Sales Potentials:
 Market Factor Derivation

 A market factor is an item or element in a market that

 Causes the demand for a product or service or
 Is related to the demand for it.

 The validity of this method is high

 It is fairly simple, requires little statistical analysis, and is relatively inexpensive to use.
Estimating Market & Sales Potentials:
 Surveys of Buyers Intentions
consists of,
 Contacting potential customers and questioning them about whether or not
they would purchase the product or service at the price asked.

 Primary advantage of this method –

 it is based on information obtained directly from the people who will ultimately
purchase or not purchase the product or service .

 It is costly and time consuming.

Estimating Market & Sales Potentials:

 Test Markets

 Test markets take considerable time and money, they are probably most accurate
methods of estimating the sales potential
 For the reason that a test market requires the buyers to spend money, and this is
the acid test of most marketing situations
 Test market eliminates the guessing.
 It results directly in a sales potential for products under consideration.
 Many products that require extensive investment in fixed assets before they are
introduced to the market can not be evaluated by this method.
Sales Forecast:
 A sales forecast is an estimate of sales (in Rs or units) that an individual firm expects to achieve
during a specified forthcoming time period, in a stated market, and under a proposed marketing
plan.

 A forecast may be made for an entire product line or for individual items within the line.

 Sales may be forecast for a company’s total market or individual market segments.

 Sales forecast provides the basis for preparing detailed sales budgets. It also influences sales
quotas and compensation of sales people.

 At first glance, company’s sales potential and sales forecast may appear to be the same. But
usually that is not the case.

 The sales forecast typically is less than the sales potential for many reasons e.g.

 Production facility may be limited

 Lack of financial resources

 This is the essential step in sales planning

Sales Forecast:
 Factors influencing the Sales Forecast:

 Marketing Plans

 Conditions within the Industry

 Market Conditions

 General Business Conditions

Sales Forecasting Methods:
 Sales Forecasting:
Executive Opinion

Executive and Managers

Sales Force Composite

Customers Buyer’s Intentions

Moving average method

Historical Data Exponential smoothing

Regression analysis

“Must-do” approach
Company operations Capacity-based approach
Test markets
Guiding Principles for Forecasting:

Understand math
and statistics

Use minimum/ Minimize number of

Maximum technique market factors

Forecasting Principles

Recognize situation Fit the method to

limits the product/market

Use more than

one method
Sales Budgets and Quotas:
“Sales people underestimate how much they spend and overestimate how much they
sell”
Andy Cohen, Sales & Marketing Management, October 1996

 Budgetary process and its offspring, the budget, are the

very core of the planning-control structure of most
organizations.
 Sales Forecast provides the basis for developing company
operating plans.
 A budget, simply a tool, a financial plan, that an
administrator uses to plan for profits by anticipating
revenues and expenditures.
 Budget is both a plan of action and a standard of
performance.
 Budgeting serves several purposes including planning,
coordination, and evaluation.
Determining The Sales Budget:
 There are two methods –
 Budgeting by Percentage of Sales Method
 Budgeting by the Objective and Task Method

 Sales Executives are responsible for three basic budgets:

 The Sales Budget

 The Selling-Expense Budget
 The Administrative Budget
Sales Budget:
 Flow of Information from sales budget to other budgets

Sales Budget

Sales department
Administrative
expense budget Production deptt budget
expense budget
(Advt, admin, selling cost)

Cash budget Profit and loss

budget
Revenues Revenues
Expenses Expenses
Purpose of Sales Quotas:

Indicate strong/weak
Spots in selling structure

To control selling Furnish Sales Force

expenses goals/incentives

Sales Quotas
are used to…

Improve Compensation Control sales force

plan effectiveness activities

Evaluate sales force

productivity
Characteristics of a Good Quota Plan:

 Realistic Attainability

 Objective Accuracy

 Ease of understanding and administering

 Flexibility

 Fairness
Sales Territory

 It is a group of present and potential customers

assigned to an individual or group sales man
(men), branch, dealer, distributor or a marketing
organisation at a given period of time. A good
sales territory should have enough customers
who have the ability and willingness to buy the
category and interest to buy the brand sold by
the firm’s sales man. Territories are defined by
geographical boundary in many organisations.
 Select the Basic Geographic Control
Factors Influencing Units
the modifications of
the territory
 Mergers Decide on the Criteria for Allocation
 Market
consolidation
 Split in
division
 Sales force Decide on the Starting Point
Turnover
 Customer
Relocations
 Product life Modify Territory
Combine Control Units adjacent to Boundaries to
Cycle change starting point
 Product Line balance
change workload and
potential
Compare Territories on Allocation
Criteria and conduct Work Load
Analysis

Assign Sales Force to New

Territories

(Territory Design Process)

 Opportunity
H Account Offers good Opportunity.
i It has high Potential
g and sales organization
h has a differential Advantage in serving it
Strategy
Commit high levels of Sales
resources to take advantage
of the opportunity
Opportunity
L Account offers stable opportunity since
O sales organization has differential
W advantages in serving them
Strategy
Allocate moderate level of resources to
maintain current advantage
Strong
The Horizontal Dimension represents Competitive Strength and the Vertical Dimension
represents Account Potential
Opportunity
Account may represent a good
Opportunity. Sales organization
needs to overcome its
competitive disadvantages and
strengthen its position to capitalise
on the opportunity
Strategy
Either direct a high level of sales
resources to improve position
and to take advantage of the
opportunity or shift resources
to other account
Opportunity
Account offers little opportunity.
Its potential is small and
the sales organization is at a
competitive disadvantage in serving it
Strategy
Devote minimal level of resources to the
account or consider abandoning the
account altogether.
Weak
Sales Force Deployment:

 Effective allocation of the sales forces becomes a critical factor in

controlling cost of sales and increasing revenue

 Effective sales force deployment is achieved through an ongoing

process

 The four-stage sales force deployment procedure is as follows:

 Audit

 Assessment

 Prescription (Alignment)

 Monitoring (Fine Tuning)

Sales Force Deployment:
 Audit is a comprehensive review of the sale organization’s:
 Goals and objectives
 Current and future strategy
 Constraints
 Resources
 Data availability

 Assessment evaluates the market potential and workload requirements and reviews
current deployment of field sales resources

 Alignment

 Depending on a company’s objectives, the criteria for aligning sales territories may
differ.
 When adequate account coverage is the critical success factor, sales management
may want to balance the workload of all sales representative
 In other cases, particularly when equitable compensation opportunities are necessary
for attracting and motivating sales representatives, sales management may want to
design territories based on market potential.
Territory Alignment:

 Sales territories that are well aligned minimize travel time and costs;
less time on the road means more face time with customers. That
can improve customer insights and deal conversion rates and help
maximize profits.

 Particularly in the midst of a challenging economy, balanced

territories contribute to acquiring, growing, and retaining long term
and profitable relationships with customers.

 When realignment is necessary, understanding each individual

enables sales managers to better deal with change management,
establish equitable assignments and compensation plans, and
mitigate stress among salespeople
Vacant Territory Management:

 Most Sales Managers can benefit from adopting the following

practices

 Satisfying part of the service needs of accounts by telephone.

 Assigning smaller accounts to telephone selling.

 Doing prospecting, market data gathering, and call scheduling by telephone.

 Carefully scheduling visits to distant accounts, replacing some with telephone

calls.
Margin Management:
 Pricing Waterfall

Pocket Margin
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Sales Force Recruitment & Selection:
Eagles don’t flock. You have to find them one at a time.
Ross Perot
Assessment Center

 An assessment center is a process in which individuals

participate in a series of exercises, most of which approximate
what they would be called upon to do in the future job.

 Assessors usually selected from higher management levels in the

firm, are trained to observe the participants and evaluate their
performance as fairly and impartially as possible

 An assessment center is a comprehensive standardized

procedure in which multiple assessment techniques such as
situational exercises and job simulation (business games,
discussions, reports & presentations) are used to evaluate
individual employee for variety of manpower decisions.
Assessment center:

Allows candidate
to demonstrate
It is a behavior/skills/ Pooling of
standardized knowledge judgment through
procedure of a statistical
evaluation integration process

Evaluation of
Used for a
candidate’s
variety of HR Assessment Centre
behavior/skill/
decisions
knowledge

Designed to measure Series of

dimensions/competencies exercises
required to deliver effective (situational & job
performance in a given job Specially developed simulations )
assessment simulations
of future job situations
Assessment Center:
 Assessment centers consist of many
multiples
 Multiple competencies to be evaluated
for in a candidate.
 Multiple observers to eliminate the
subjectivity & increase objectivity
involved in the process.
 Multiple participants :18 – 21
 Multiple exercises :
Exercises like role plays, case
analysis, presentations, group
discussions etc
 Multiple simulations: These could be
creative, crisis type simulations.
 Multiple observations: Each
observation is observed at least twice.
 Assessment procedures that do not require
the participant to demonstrate overt
behavioral responses are not behavioral
simulations
 Panel interviews or a series of sequential
interviews as the sole technique.
 Reliance on a single technique (regardless
of whether it is a simulation) as the sole
basis for evaluation. However, a single
comprehensive assessment technique that
includes distinct job-related segments (e.g.,
large, complex simulations or virtual
assessment centers with several definable
components and with multiple opportunities
for observations in different situations) can
be called as an assessment center exercise.
 Single-assessor evaluation
 Using only a test battery composed of a
number of paper-and-pencil measures,
regardless of whether the judgments are
made by a statistical or judgmental pooling
of scores.
 The use of several simulations with more
than one assessor but with no pooling of
data.
 Essential Elements of an AC
 Assessment centers must meet the following given criteria:
1. Job Analysis – To understand job challenges and the competencies required for
successful execution of the job.

2. Predefine competencies - Modeling the competencies, which will be tested during

the process.

3. Behavioral classification - Behaviors displayed by participants must be classified

into meaningful and relevant categories such as dimensions, attributes,
characteristics, aptitudes, qualities, skills, abilities, competencies, and knowledge.

4. Assessment techniques – These include a number of exercises to test the

assessees of their potentials. Each competency is tested through at least 2
exercises for gathering adequate evidence for the presence of particular
competence
5. Simulations – The exercises should simulate the job responsibilities as closely as
possible to eliminate potential errors in selection.

6. Observations – Accurate and unbiased observation is the most critical aspect of an

AC.
 Essential Elements of an AC
7. Observers – Multiple observers are used to eliminate subjectivity and biases from
the process. They are given thorough training in the process prior to participating in
the AC.

8. Recording Behavior – A systematic procedure of recording must be used by the

assessors for future reference. The recording could be in the form of hand written
note, behavioral checklist, audio-video recording etc.

9. Reports – Each observer must make a detailed report of his observation before
going for the discussion of integration of scores.

10. Data Integration – The pooling of information from different assessors is done
through statistical techniques.
Assessment centers Usage: What for
1. Selection – ACs help organizations in getting the right people in.

2. Career development – The identification of the competencies possessed by the

individual helps organization decide his career plans.

3. Potential appraisal – ACs help organizations identify if the person can handle the
challenges offered in the next higher position

4. Identification of high potential managers – This creates a pool of managerial

talents & multifunctional managers that would be available across the business
group etc.

5. Succession planning – Identifying the right individual for critical positions such as
CEO, CFO etc is very important for the success of the organization. ACs reduces
the risk of such wrong identification.
Assessment centers Usage: What for

6. Allocations of challenging assignments – ACs provide the organization with the

strengths and weaknesses of every participant. This helps the organization in
deciding the candidates who would have the necessary abilities to undertake the
proposed challenging assignments.

7. Management development – ACs provide ample opportunity to its participants to

reflect on one’s capabilities and to improve by observing others perform in the AC.

8. Identification of training needs – Assessment centers provide candidates and

organization with concrete data on the improvement areas, which can be utilized,
for training.

9. Identification of a global pool of talented managers - Adjusting oneself in the global

scenario is a critical requirement of some positions in the organization. ACs help
organizations to identify such managers.
Sales Training:

 Sales Training

 Training is not a panacea, but it can lead to significant

improvements in performance if it is properly designed, implemented
and reinforced.

Training Assessment Program Design Reinforcement Evaluation

Phases of developing and conducting sales force training

 Establish Program Objective

 Identify who should be trained Training assessment
 Identify training needs and specific goals
 How much training is needed
 Who should do the training
 When should the training take place
 Where should training be done Program design
 Content of Training
 Teaching methods used in training programs
 Determine how training will be reinforced Reinforcement
 What outcomes will be evaluated
 What measures will be used Evaluation (Reactions, Learnings,
Behaviour and Results)
Objectives of Sales Training Programs

Increased Sales
productivity

Improved self-
Lowered turnover
management

Sales training
program objectives

Improved
Improved morale
customer relations

Improved
communication
Coaching/Counseling Wheel

 Coaching comes from interpretation of facts

 Managers coach from their experiences or from what they “know to

be so” based on logic

 Counseling comes from the emotional side

 Counseling is very personal and emphatic

 Powerful tool when looking for understanding and consensus

 A tool to use when you want to elicit responses from employee and
arrive at a mutual arrangement.
Coaching/Counseling Wheel

 In a coaching and counseling situation, you need to make use of all

the available communication tools

 There are four dimension to coaching and counseling

 Positive coaching
 Negative coaching
 Positive counseling
 Negative counseling
Coaching/Counseling Wheel

 The coaching/counseling wheel helps you to plan beforehand not

only what to say, but how to best deliver the message so the
employee will hear it and understand it.

 By using the four quadrants of the wheel, you will be proactive

regarding the content and tone of the message.
Coaching/Counseling Wheel

Positive Positive
Counseling Coaching
+ +

Negative Negative
Counseling Coaching
- -
Coaching/Counseling Wheel

 Positive Coaching – “Mr. I have confidence in you that you can do this. I have seen
you do this before so go out there, call Mr. Customer, and get that order today.

 Negative Coaching – “Mr. You have delayed long enough, If you do not call Mr
Customer today, further action have to be taken by me, which may include you losing
this account, Now go make that call.”

 Positive Counseling – “Mr. I am concerned about your call ratios. You must be as
well. You have always been a top performer. What’s up.”

 Negative Counseling – “Mr. I am very frustrated. This situation is very bad to

understand. I do not know if there even is a solution. What is the problem”

 Further Reading - ProActive sales management: how to lead,

motivate, and stay ahead of the game By William Miller
Motivating a Sales Team

Poor motivated people can nullify the

soundest organizations
Four Difficulties Facing a Sales
Manager
 Difficulties  Management
 In most companies Implications
employing a sales force ,  Maintaining
sales personnel may be Communications
geographically spread  Motivating each person
rather than working each in a mainly unsupervised
day from an office job
 maintaining control of a
team so spread

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Four Difficulties Facing a Sales
Manager
 Difficulties
 Selling is a highly
developed social skill; it
is marching the English
language to war of
commerce
 Management
Implications
 In this unnatural social
relationship between
seller and customer, how
to keep this selling skill
sharp and at peak
standard

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Four Difficulties Facing a Sales
Manager
 Difficulties  Management
 Customers frequent Implications
refusal of a seller’s  Such refusals lead to
proposition; this is erosion of the sales
particularly common in person’s selling skills and
specialty selling or where morale
there are few , if any .
Differences between one
seller’s offering and
another’s

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Four Difficulties Facing a Sales
Manager
 Difficulties
 sales personnel are
working in unsupervised
selling situations for over
90% of their working lives
 Management
Implications
 sales managers priorities
when accompanying
individuals should be
leadership to combat
morale problems and
training to improve selling
techniques

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Maslow’s Hierarchy of Needs

Self
Actualization
desire for self fulfillment

Esteem Need
Self Respect, success

Love needs
Belongingness, Affection

Safety Need, security, ordered life

Physiological Need

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 •Work Itself

Dissatisfiers •Recognition
•Achievement
( Hygiene factors)
•Advancement
•Responsibility

•Company Policy and Administrations

•Supervision

•Interpersonal Relations
Satisfiers
•Working Condition ( motivating factors)

•Personal Life

•Security
•Status
12/2/2020 •Salary 7
Motivation

Motivation & Performance

Effort Aptitude Skill

Amount
Persistence Motivation Performance
Direction Task
Understanding/ Chance
Characteristics

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Importance of Pay

 How important is pay

 Establishing salary levels
 Conditions in which payment by result works
 Usefulness of annual bonus as motivators
 Importance of publishing company salary scales

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How important is pay

 Pay is below subsistence level( basic need

satisfiers)
 Pay preoccupies a person to the exclusion of
all else when it is below his habitual living
standards
 when pay is seen or thought to be unfair

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Establishing Salary Levels

 To attract sales personnel of the right caliber

 To encourage sales personnel to achieve their job objectives
 To reward sales personnel in accordance with the value of their
contribution
 To prevent loss of morale through dissatisfaction with levels of
pay
 To encourage sales personnel to stay with the company if it is
in their own and the company's best interest
 To achieve these aims at minimum cost

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Process of Motivation

 Determination of Objective
 ( on what reasons the salesman are to be motivated.
When the objectives are determined it will be easier to
determine the levels, resources and methods of
motivation
 Studying the needs of the sales man
 ( sentiments/needs to select the motivators that are to
be used for motivation. It is important to study the
individual differences between the persons , their mental
conditions, expectations, positions and post held by
each

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Process of Motivation

 Determination of Motivational Tools

 alternate tools by keeping in mind the place of working,
duration and working timings, the society they belong
and their individual needs
 give attention to the financial condition of the company.
 The tools should be the best alternatives available in the
industry

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Process of Motivation

 Communication
 A motivational plan to be successful, it is necessary to
be communicated to the concerned persons about the
benefits that are to be derived to them from the plans

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Process of Motivation

 Integration of Interests
 The interest of the sales man and the institution ,
both should be integrated in the motivational
program so that both may get maximum benefits
from such plans

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Process of Motivation

 Selection and Application of Suitable

Motivator
 Appropriate motivators may be selected very
carefully by keeping in view of the results
achieved from the previous motivational plans, as
well as of the expectations of the concerned
persons. The time of executing the program may
also be decided while selecting the motivator

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Process of Motivation

 Creations of Auxiliary Environment

 Working conditions and the physical environment
both will play important roles in motivating
salesman. In this respect auxiliary environment
may be created within the organization by
providing various ways and means for individual
development through training

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Process of Motivation

 Developing Team Spirit

 It is an important step of a sound motivational process.
It is essential to realize the importance of institution
and group rather than giving importance to the
individual. Individual efforts should be directed
towards achieving institutional objectives which will be
possible by developing team spirit among salesman
so that they may function as members of a team

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Process of Motivation

 Feedback of Follow Up
 The results achieved from the motivational
program are compared with the motivational
plans already formulated and approved by the
organization in order to identify deviations if any
from the original plan. In case of any deviation,
necessary steps are taken forthwith to correct
the deviation /drawbacks

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Method of Motivation

 Financial Motivation
 Non financial Motivations

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Individual Methods of Motivation

 Personal Contact with salesman

 Correspondence with salesman
 Promotion
 Responsibility
 Opportunities of advancement
 Feelings of accomplishment
 Recognition and Rewards

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Group Methods of Motivation

 Sales Conference and Conventions

 Sales Contests
 Periodicals for salesman
 Sales Literature for salesman
 Participation
 Relations with Sales Supervisors
 Motion Pictures for salespeople

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 Motivating a Sales Team –
Sales Meeting

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Deliver an
Inspirational Opening
 Relate an example of teamwork.
 Use a quotation.
 Tell a personal story.
 Read a testimonial.
Hear Reports on Achievements

 Congratulate award winners.

 Note areas of growth.
 Have impromptu reports on success.
Address the Sales Challenge

 Identify the need or opportunity.

Conduct a Creative
Thinking Session
 Ask: In what ways can we…?
 Assess the situation. Get the facts.
 Generate possible solutions with green light, non-
judgmental thinking.
 Select the best solution.
Set SMART Goals

 Conduct SMART goal training

 Specific
 Measurable
 Achievable
 Realistic
 Time-phased
Set SMART Goals (Cont’d)

 Set team goals

 Set individual goals
Identify Skills Needed to Achieve
Goals
 Relationship selling.
 Telephone skills.
 Prospecting.
 Asking questions.
 Using evidence.
 Handling objections.
Get Commitment

 Team commitments.
 Individual commitments.
Close

 Have an inspirational close.