Combined OCR

Catalog
SDM-UI-1 (1)................................................................................................................................................................................................................. 1
SDMunitl.................................................................................................................................................................................................................... 28
SDMunitlcont............................................................................................................................................................................................................. 48
SDM-UI-2(1)...............................................................................................................................................................................................................84
8alesanddistributionmanagementunit2.................................................................................................................................................................... 113
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unit3salestraining...................................................................................................................................................................................................... 148
unitiiiSDMcont........................................................................................................................................................................................................... 169
unit3Salestrainingcontppt......................................................................................................................................................................................... 195
SDMUI-10................................................................................................................................................................................................................. 215
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SDMUI-8................................................................................................................................................................................................................... 233
SDMUI-7................................................................................................................................................................................................................... 241
SDMUI-6................................................................................................................................................................................................................... 247
SDMUI-5................................................................................................................................................................................................................... 256
SDM-UI-4.................................................................................................................................................................................................................. 266
Introduction To Marketing Management
Meaning
• Market: it is a place where buyers and sellers sales
and buys from producers.
• Marketing: it is a process or system of business
activity designed to plan promote and distribute the
want satisfying goods and services to target market.
• Marketing Management: It can be defined as an art
and science of choosing target volume and getting
keeping and growing customer to create delivering
and communicating superior customer value.
r i
According to American Marketing Association (AMA), Marketing is the
activity, set of institutions and processes for creating, communicating,
delivering and exchanging offering that have value for customers,
clients, partners and society at large.
► <
According to Dr. Philip Kotler defines marketing as the science and art
of exploring, creating and delivering value of satisfying the needs of
target market at a profit. Marketing identifies unfulfilled needs and
desires. It defines, measure and quantifies market and profit potential.
Marketing Management
• What is marketing management?
•« Marketing management is the
process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and
services to create exchanges that
satisfy individual and organizational
goals »(Philip Kotler)
mat Is Marketing?
Simple definition:
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably.
Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering
satisfaction.
Marketing Defined
I Marketing is the activity, set of instructions, and processes for 1
1 creating, communicating, delivering, and exchanging offerings that 1
1 have value for customers, clients, partners, and society at large. 1
OLD view of NEW view of

marketing: marketing:
Making a sale— Satisfying
“telling and selling” customer needs
Needs, Wants, and Demands
Need: State of felt deprivation including physical, social, and individual needs.
Physical needs: Food, clothing, shelter, safety
Social needs: Belonging, affection
Individual needs: Learning, knowledge, self-expression
Want: Form that a human need takes, as shaped by culture and individual personality.
Wants + Buying Power = Demand

Needs & wants are fulfilled through a Marketing Offering:
Products:
• Persons, places, organizations, information, ideas.
Services:
• Activity or benefit offered for sale that is essentially intangible and does
not result in ownership.
Experiences:
• Consumers live the offering.
Nature, scope and importance
Marketing is consumer-oriented process.
Market starts and ends with customer
Marketing is the guiding element of business
Marketing is a system
Marketing is a goal-oriented process
Marketing is a process of exchange
Marketing is a continuous process.

Concepts ofmarketing
The production concepts
The product concepts
The selling concepts
The marketing concepts
The societal marketing concepts

Production Concept
• The philosophy that consumers will favour products that are
available and highly affordable and that management
should therefore focus on improving production and
distribution efficiency.
18
Product Concept
• The philosophy that consumers will favour products that offer
the most quality, performance, and innovative features.
19
Selling Concept
• The idea that consumers will not buy enough of the
organization's products unless the organization
undertakes a large - scale selling and promotion effort.
20
Marketing Concept
• The marketing management philosophy that holds that
achieving organizational goals depends on determining
the needs and wants of target markets and delivering the
desired satisfactions more effectively and efficiently than
competitors do.
21
Societal Marketing Concept
•The idea that the organization should determine the
needs, wants, and interests of target markets and
deliver the desired satisfactions more effectively and
efficiently than competitors in a way that maintains or
improves the consumer's and society's well - being.
22
Function ofmarketing
r----------------------------------------------------------------------------------------------------------------------------- ------------ 1
Selling
Buying
Transportation
> --------------------
Storage
> —-------------------------------------------------------------------------------------
Standardization and grading

——
Financing
Risk taking
Market information
L_________________________________________________________________________________________________ ______ J
The marketing mix is the combination of marketing activities that an
organization engages in so as to best meet the needs of its targeted
market. Traditionally the marketing mix consisted of just 4 Ps.
► <
Getting the mix of these elements right enables the organization to meet
its marketing objectives and to satisfy the requirements of customers.
J
Tke Marketing Mix
The set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the target
market.
• Product: Variety, features, brand name, quality, design,
packaging, and services.
• Price: List price, discounts, allowances, payment period,
and credit terms.
• Place: Distribution channels, coverage, logistics, locations,
transportation, assortments, and inventory.
• Promotion: Advertising, sales promotion, public relations,
and personal selling.
PRODUCT
Pt acc
product
£
U
E A product is an item that is built or produced to
satisfy the needs of a certain group of people.
The product can be intangible or tangible as it
can be in the form of services or goods.
A product has a certain life cycle that includes the

growth phase, the maturity phase, and the sales
decline phase. It is important for marketers to
reinvent their products to stimulate more
demand once it reaches the sales decline phase.
W W
Price is a very important component of the
marketing mix. It is also a very important
component of a marketing plan as it determines
firm's profit and survival. Adjusting the price of
the product has a big impact on the entire
marketing strategy as well as greatly affecting
^hâle^nêman^Hh^roduct^^^^^
◄
Pricing always help shape the perception of your
product in consumers eyes. Always remember
that a low price usually means an inferior good
in the consumers eyes as they compare your
good to a competitor.
place
Placement or distribution is a very important part of the product mix

definition. You have to position and distribute the product in a place that is
accessible to potential buyers.
There are many distribution strategies, including:
Intensive distribution
Exclusive distribution
Selective distribution
Franchising
promotion
Promotion is a very important component of marketing as it can boost

brand recognition and sales. Promotion is comprised of various
elements like:
P ro m o tio n
Sales Organization
Public Relations
Advertising
Sales Promotion
k
• Convenience \ Psychological i
1 • Value 1 1 ~ Cost-Plus
• Q ual ity 1 - 1 Loss leader, etc.
• Packa g 1 ng ^^2 - ' r
• Especia y relevant |lo • Employees

service mdustnes • • Management
• How are services • Cuture
consumed7 • Customer Service
r
The company's employees are important in marketing
because they are the ones who deliver the service. It is
important to hire and train the right people to deliver
superior service to the clients, whether they run a support
desk, customer service, copywriters, programmers...etc.
When a business finds people who genuinely believe in the

products or services that the particular business creates, it's
is highly likely that the employees will perform the best they
can.
►
Additionally, they'll be more open to honest feedback about

the business and input their own thoughts and passions
which can scale and grow the business.
process
Process could be your entire sales

funnel, a pay system, distribution
system and other systematic
procedures and steps to ensure a
working business that is running
effectively.
Physical evidence
In the service industries, there should be physical
evidence that the service was delivered. Additionally,
physical evidence pertains also to how a business
and it's products are perceived in the marketplace.
It is the physical evidence of a business' presence

and establishment. A concept of this is branding. For
example, when you think of "fast food", you think of
McDonalds.
^■1 1^^.
When you think of sports, the names Nike and

Adidas come to 2
Sales management
The only business function that

generates revenue.
sales management
Planning, direction and control of

personal selling including recruiting,
selecting, training, equipping, assigning,
supervising, compensating and
motivating as these tasks apply to the
personal sales force.
Sales management
• Management of the personal selling task.

• Is there anything like Impersonal selling7 or
'non-personal' selling?
• Selling is an exchange transaction. Exchange of
Product or service for money
• Money is the revenue or the earnings of an
enterprise often called 'turnover7 or 'top line7
• Sales therefore is the only revenue generating
function in an enterprise.
Objectives of sales management
• 3 general underlying objectives:

1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales - cost of sales = gross margin.
Gross margin - expenses =net profit.

Sales management: evolution
• Industrial Revolution - 1760

• Small home industries - Large scale
manufacturing -marketing - sales and
sales support
• Concept of hunters and farmers
• The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions
of all types.
The salesman
they make more noise and more mistakes,

create more cheer, correct more errors, adjust
more differences, spread more gossip, hear
more grievances, pacify more belligerence and
waste more time under pressure, all without
loosing their temper, than any other class of
professionals -including politicians.
The salesman
• ...they live in hotels, cabs and tents on trains,
buses, eat all kinds of food, drink all kinds of
liquids -good and bad- sleep before, during
and after business, with no sympathy from the
office.
• They draw and spend more money with less
effort, they come at the most inopportune
time, under the slightest pretext, ask more
personal questions.
• Yet they are a power in marketing...
Sales Management
"QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON"
Sales organization
• With various tasks required to be performed

the enterprise had to create a structure to
ensure that work is done.
• Principles of structure: authority,
responsibility, performance, support/co-
ordinate.
Sales organization
Concept of organization: Group of individuals

working jointly to achieve a defined goal and
bearing formal and informal relations with
one another. An organization is oriented
towards and a co-operative endeavor and a
structure of human relationships.
Purpose of organization
• Eliminate waste of effort
• Minimize friction
• Maximize co-operation
• Permit development of specialists
• Ensure that all activities get done
• Achieve co-ordination/balance
• Define authority
• Fix responsibility
Types of organization structures
• Line organization: line managers perform

sales and sales management activities.
• Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.They are not directly responsible for
achieving sales targets.
Organization structures
Functional organization: focus is on the

principle of specialization. Each specialist has
a functional responsibility and are permitted
to direct and control the salesperson threw
their immediate superior.
Organization structure
• Horizontal structure.
• Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.
Line Sales Organization structure
♦♦♦ Clear authority & Responsibility

♦♦♦ Quick response & Decision, Low Cost
♦♦♦ Weak on marketing inputs
♦♦♦ Sales manager controlled
Functional Sales Organization
Head -Marketing
♦♦♦ Administrative Simplicity

♦♦♦ Access to Specialists
♦♦♦ Multiple reporting
♦♦♦ HOD is Pressures to co-ordinate
Sales relation with marketing activities
• Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they need
it most.
• Sales & Marketing information: data is
needed for analysis of sales problems, for
determining sales potential. Raw data is
collected by sales people.
relationships
Sales and service: contributes to strategy
success.
Sales and distribution: minimizes stock out
situation; improves inventory control; helps
sales to focus on demand generation.
Sales & Production:
Sales and R&D
Sales (Finance
9
Sales Management Trends
What is Motivation??
• Drive to initiate an action.
• The intensity of effort in an action
• The persistence of effort over

Why motivation
• Frequent rejection
• Physical separation from company support
• Direct influence on quality of sales
presentation
• Indirect influence on performance
Sales force motivation
• "the desire to make an effort to fulfill a need is

motivation"
• Motivation includes three dimensions:
Direction, Intensity and persistence.
• Motivation may also be Intrinsic or extrinsic
• Maslow's hierarchy of needs:
Maslow's theory
/Self \
/ActualisationX
Esteem needs
Social needs
Safety needs
Physiological needs
Food, clothing, shelter, health
care
4
Frederick Herzberg theory
• "Two factor theory" of motivation

• Hygiene ,maintenance, or job context factors.
( dis satisfiers)
• Achievement, challenge, advancement,
growth in the job. (satisfiers )
SELLING
THE WORD SELL IS DERIVED FROM A Norwegian WORD SELJE
WHICH MEANS TO SERVE
TO SERVE YOUR PROSPECTS YOU MUST UNDERSTAND THEIR

NEEDS.
PEOPLE INVARIABLY BUY WHAT THEY WANT, EVEN ABOVE

WHAT THEY NEED
6
Selling may be classified into three broad
categories
1 )Transactional Selling
2) Relationship Selling
3) Value Added Selling
Skills of Sales Manager
1. People Skills - Motivate, lead, communicate

and coordinate effectively with team building
2. Managing Skills - Administrative skills like —
planning, organizing, controlling and decision
making
3. Technical skills - Training, selling,
negotiating, problem-solving and CRM skills
Sales Strategies and Tactics
Strategies include ways of achieving the Objectives, and tacticsfaction plans)
are the activities or the actions that should be carried out in order to
implement the strategy.
The sales strategies are mostly related to salesforce strategies.
Salesforce Strategies
>ldentify the countries and Intermediaries
>Sign sales agreements with channel members
>Review and improve salesforce training
>Ensure all market segments are covered
>Use internet selling and telemarketing,, in addition to company salesforce.
The sales process
• Process: a sequential series of decisions and

or actions.
BUYING PROCESS SELLING PROCESS
NEED PREPARE
SEARCH FOCUS
IDENTIFY DEFINE
ISOLATE PROPOSE/PRESENT
SELECT HANDLE OBJECTIONS
BUY CLOSE THE SALE
CONSUME FOLLOW UP
10
The sales process
1. Prospecting & Qualifying

2. Pre approach (pre call planning )
3. Approach
4. Presentation & Demonstration
5. Overcoming Objections
6. Trial close / Closing the sale
7. Follow-up and Service.
11
SELLING Process
• Focus on Prospects NEEDS and WANTS.

• Sell by design, not by chance.
Follow a proven 4 step formula:
NEED ANALYSIS
NEED AWARENESS
NEED SOLUTION
NEED SATISFACTION
12
Prospecting
• Process of identifying potential buyers.

• A prospect has a reasonable probability of
buying ,has sufficient need to justify a
profitable sale ,has financial resources to buy
and can be classified as 'eligible to buy'
MONEY? AUTHORITY? DESIRE?
13
Locating prospects
Lead generation - a three step process.
1. Defining the target market :what it wants;
what it buys; where and when it buys; what
it buys; how it buys;
2. Using communication tools to gather leads -
Advertising, Direct mail, Telemarketing,
Trade shows, buying data
3. Qualifying the Leads.
14
Selling first time to Prospects
(pre sale planning)
• Adequate knowledge of the product to be sold,

company being represented, the market competition
,category or segment of customers and selling
techniques.
• Product knowledge: Evolution-Features-Benefits-
Uniqueness-Price
• Company knowledge: History-Values-Achievements-
Management-Policies
15
Pre sale plan
• Competitors knowledge :structure-share-

strategy-systems.
• Customer knowledge :attitudes-preferences-
behavioural habits
• Selling techniques :
16
Pre approach planning
• Focus on understanding customer needs and characteristics
and preparing a proposal on how the product or service
offered can satisfy the need.
• Steps involved are:
Determining call objectives.
Development of customer profile.
Determine customer benefits.
Determine the flow and content of the presentation.
17
Understanding buyer's needs
• Situational questions: questions about prospect's current
situation, (who will decide? is it the first time ? Changing
source ?
• Problem identification question: Questions to uncover
problems, difficulties or needs ( problems on quality, delivery
?)
• Problem impact questions: questions to make the buyer
realise the impact of the problem and the need to solve it.(
what will be the impact on costs, on customer satisfaction ?)
18
Cont.
• Solution value questions questions to help

the buyer asses the value or usefulness of the
solution ( for x benefit how much would you
save ?
• Confirmation questions: (how would an error
free system help?)
19
Need awareness
• At this stage you need to THINK

• Prospect and Salesperson should both be
aware of the need.
20
Need solution
• Present your product

• Time to stop asking questions and start
providing solutions.
• People don't buy products, they buy what the
product does for them.
21
Questions are the answer
• Thinking vs. feeling questions.

• When you learn how the customer feels you
are more likely to find out what the person
thinks.(the seat belt case)
• Tying emotion to logic.
22
The questioning process
• Three basic types of questions enable us to

discover the needs of potential customers.
• 1st The Open end Questions.-allows the
prospect the freedom to go where ever they
like, the 'who, what where ,when, how and
why" questions
23
Questioning...
The closed door question: "would you tell me

more"; "what do you mean by...Answers to
these give you information to helping the
prospect and building trust.
24
Questioning...
• "yes or no" questions demand a direct

response, "doyou agree." "would my
proposal." "are we in agreement.."
• They allow you to check on your progress on
the sales process, "trial close"
25
Presentation methods
• Stimulus response method: also called a 'canned approach', a
memorised sales presentation .It assumes that if a right
stimuli is made it will get a favourable response.
• Formula method: the AIDA process.
• Need-satisfaction method: an interactive sales presentation.
The most challenging and creative method. The FAB way.
26
The presentation
• Attracting Attention
• Creating Interest
• Building Desire and conviction
• Initiate Action to buy.
27
• Team selling method: a multi person sales team deals with a
multi person buying centre (or buying committees)
Sales team consists of Account executive, technical support
engineer, logistics expert, IT or systems executive and Finance
executive.
Buying committee consists of materials exec.
manufacturing/operations exec, supply chain exec. Materials
manager and Finance exec.
28
• Consultative selling method: problem

solution method.
Requirements are:
Knowledge of the industry, clients company,
awareness of key members needs,
29
Objections
• Objections , opposition , resistance to the

presentation typically happens during the
presentation or while asking for the order.
• Objections should be welcomed.
• Objections indicate that the prospect is
involved and not indifferent.
• Objections reflect the prospect's view.
30
Objections
1. Psychological ( hidden ) - includes pre

determined ideas or beliefs, preference for
established brands, dislike of making
decisions , anxiety or resistance to spend
money, suspect about quality etc.
2. Logical or practical or real -delivery
schedule, high price , product availibility,
31
Handling objections
• Listen
• Understand
• Negotiate
32
Methods of handling objections
• Ask questions: listen, rephrase, reconfirm the

objection and explain.
• Turn objection into a benefit and trial close.
• Deny objections tactfully, (arrogance and
sarcasm to be strictly avoided)
• Testimonials, referals
• Compensation for valid objections.
33
Negotiation
• Plan - pre determine 'firm' and 'flexible'

factors; define limits.
• Ensure an atmosphere of trust, understanding

and respect.
• Define purpose and objective.
34
Negotiation styles
• Win - loose
• Win-Win
• Loose - Loose
35
Closing the sale
• Summarize
• Advantage and disadvantage comparison
• Opportunity benefit
• Emotional appeal
• Direct closure
A.A.F.T.O=Always Ask For The Order
36
Sales Management
Introduction to Sales Management

Sales Management
According "Sales
Management means the planning, direction and control of personal
selling, including recruiting, selecting, equipping, assigning, routing,
supervising, paying and motivating as these tasks apply to the
personal sales force".
Sales management is attainment of an organization's sales goals
in an effective & efficient manner through planning, staffing,
training, leading & controlling organizational resources
Sales management specifically contributes to achieving the

marketing objectives of a firm. Sales managers set their
personal selling objectives and formulate individual selling
policies and strategies.
Scope of Sales Management
> Managing Sales Force

> Offering Sales Training
> Managing Channel partners
> Managing Direct sales
> Managing Sales Promotion
> Managing Sales Territories
> Managing Sales Targets
Scope of Sales Management
> Sales Management should be motivating for potential salespeople.
> Need to develop and maintain a sufficient sales force.
> It performs managerial functions comprising planning the sales efforts

and organizing, directing, motivating, coordinating, and controlling the
sales force to achieve sales goals.
> It operates within the periphery of marketing management.

> Sales management is assigned the task of managing the personal
selling activities, which ultimately affects the marketing department.
> It formulates the personal selling policies and strategies.
> Sales management covers planning and organizing personal

selling activities.
> It further performs sales force recruiting, selecting, training,

assigning, routing, directing, motivating, remunerating, evaluating,
and controlling functions of personal selling.
Sales Management - Basic Objectives
There are three primary objectives of sales management
> Increasing sales volume

> contributing to company profits.
> Long term growth of an organization.
General objectives of sales management
> Revenue Generation
> Increase Sales Volume
> Sustained Profits
> Organization Growth
> Market Leadership
> Converting Prospects to Customers
> Motivate the Sales Force
> Compliment Marketing Activities

Functions of sales management
> Preparing the Sales Plan
> Recruiting the right people to execute the sales plan
> Training the people selected to build competency in achieving the

targets set and fulfilling its objectives.
> Defining the sales territories
> Specifying the sales quota to be completed for each territory
> Defining the remuneration and reward system for the sales force
> Providing welfare and healthcare facilities to the sales force

> Devising a sales force development program
> Analysing past performance with the current version

and making predictions on demand
> Coordinating with the marketing department and the

consumers
> Sales planning and sales policies
> Pricing policy and price-fixing
> Advertising and sales promotion

> Scientific salesperson ship, management and control of salesforce
> Marketing research
> Planning and control of sales operations and management of sales

costs
> Selection and management of channels of distribution
> Branding, packing and labelling
> After-sales service, if necessary
> Integration and coordination of all functions

Sales and Marketing
What's the Difference?
Sales Marketing
• Sales starts with seller & is • Marketing starts with the
preoccupied all the time with buyer and focuses constantly
the needs of the seller on the needs of the buyer
• Emphasizes on saleable • Emphasizes on identification
surplus available with the of market opportunity
company • Seeks to convert customer
• Seeks to convert products in needs in to products
to cash • Views business as - a
• Views business as -goods customer satisfying process
producing process • Marketing views the customer
• Sales views the customer as as the very purpose of
the last link in the business business
The sales and marketing relationship
Marketing and sales are very different, but have the

same goal.
Marketing improves the selling environment and plays
a very important role in sales.
The marketing department's goal is to increase the
number of interactions between potential customers
and company, which includes the sales team using
promotional techniques such as advertising, sales
promotion, publicity, and public relations, creating
new sales channels, or creating new products (new
product development), among other things.
Evolution of Sales Management
• Before Industrial revolution, small scale

manufacturers influenced the economy.
• After, 1760 AD, large scale manufacturers
started dominating.
• Need to expand the market
• Separate functional departments like
manufacturing, finance and sales were
established.
• Active involvement of distribution channels

(Wholesalers & retailers)
• Complex marketing function
• Marketing function was split in to Sales fn. &
support fn. (promotion, research, logistics,
etc.)
• Sales department generates revenue
Nature of Sales Management
i. Integration with Marketing Management

ii. Relationship Selling
iii. Varying sales responsibilities
i. Integration with Marketing
Management
Sales management is a part of marketing
management
•Field sales team: In territories, contacting
existing and prospective customers
•Headquarter team: Performs support and
service functions to assist sales people.
(Promotion, Market research, Logistics,
Customer service and coordination)
ii. Relationship Selling
A ’
• Relationship is an exchange
- Obtaining & offering
• Creation of customer
loyalty
• Customers classified as
A/B/C as per sales & profit
potential
• Lower costs and add value
• Satisfying current needs
and understanding future
needs
Objectives of Sales Function.
• To achieve Sales Targets
• To achieve Market share targets
• To manage dealer network
• To organize sales training
• To handle customer complaints
• To manage Sales promotion campaigns
• To effectively cover market
Importance of Sales Management
1. Most exciting
2. Highly financially rewarding
3. Challenging careers
4. Fastest & surest route to top management
5. Only function to generate revenue
6. Directly impacts the bottom line or net profit
Roles of a Sales Manager
1. Strategic role in the company with key inputs - long

term strategic plans, forecasting, sales force
management, evolving strategies, controlling budget.
2. Member of corporate team to ensure organizational
objectives - customer satisfaction, sales growth &
market share
3. Team leader to achieve sales goals & profits
4. Managing multiple sales channels - personal selling,
electronic and telemarketing
5. Latest CRM technologies
6. Continually understand changes in environment and
update strategies

2. Managing Skills - Administrative skills like -
making
3. Technical skills-Training, selling,
Personal Selling
Personal selling occurs where an individual salesperson sells a product,
service or solution to a client. Salespeople match the benefits of
their offering to the specific needs of a client. Today, personal
selling involves the development of longstanding client
relationships. In comparison to other marketing communications
tools such as advertising, personal selling tends to:
• Use fewer resources, pricing is often negotiated.
• Products tend to be fairly complex (e.g. financial services or new
cars).
• There is some contact between buyer and seller after the sale so
that an ongoing relationship is built.
• Client/prospects need specific information.
• The purchase tends to involve large sums of money.
'Everyone lives by selling something7 r.l. Stevenson

Personal selling and its fit in the promotional mix
• Usually more appropriate in B2B than consumer

markets.
• Advantageous in promoting and selling high cost,
complex items.
• Operates more effectively when customers are on the
verge of making a final decision and committing
themselves.
Characteristics of personal selling
• Impact - sales representatives have a much greater

chance of engaging initial attention and responding to
situations.
• Precision - targeting and message precision.
• Cultivation - sales force plays an important role in
creating and maintaining buyer - seller relationships.
• Cost - personal selling is very labour intensive so comes
at a cost.
Forms of personal selling
• Order takers - external and internal.
• Order makers - finding prospective customers, identifying

customer specific problems and needs, selling product and
assisting with installation and training, and maintaining
relationship.
• Sales support - augment the efforts of mainstream sales

force.
• Missionary sales representatives - focus on particular
segment of product to give enquiries and sales an initial lift.
• Sales engineers - focus on the technical or application
problems of the product.
The personal selling process
Sales presentation
1
Handling objections
1
Negotiation
1
Closing the sale
i
Follow-up and account management
Stages and objectives of the personal
selling process
STAGE OBJECTIVE COMMENTS
Search for and qualify Start of the selling process;

| 1. Prospecting prospects prospects produced through
advertising, referrals, and cold
canvassing
Gather information Information sources include

2. Preapproach and decide how to personal observation, other
prospect salespeople
Gain prospect’s First impression is critical; gain

attention, stimulate attention and interest through
3. Approach interest, and make reference to common
transition to the acquaintances, a referral, or
presentation product demonstration
Begin converting a Different presentation formats

prospect into a are possible; however.
customer toy creating involving the customer in the
a desire for the product or service through
product or service attention to particular needs is
critical; important to deal
professionally and ethically with
prospect skepticism.
indifference, or objections
Obtain a purchase Salesperson asks for the

commitment from purchase; different approaches
the prospect and include the trial close and
create a customer assumptive close
Ensure that the Resolve any problems faced

customer is satisfied by the customer to ensure
with the product or customer satisfaction and
service future sales possibilities
The sales management process
Sales plan Sales plan Evaluation and

formulation implementation control of the
Setting objectives Salesforce recruitment salesforce
Organizing the and selection Quantitative assess
salesforce Salesforce training ment
Developing account Salesforce motivation Behavioral evaluation
management policies and compensation
SALES PLANNING
• NEW BUSINESS
• VISION MISSION GOALS
• STRATEGY
• ACTION PLANS
Aspects of Sales function
Planning
Organizing
Training
Motivating
Controlling
Leading
Sales planning
• Forecasting a key planning tool
total sales -
industry sales
company sales
product line sales
product variant sales
Time period forecast
• Long Range
• Medium range
• Short term (range)
Planning process
• Sales plan
• Capacity plan
• Production plan
• Cash flow plan
• Procurement plan
„ Human resource plan
Qualities of Salespeople
1. They are ambitious.

2. They are courageous.
3. They are committed.
Analysis of Market and Sales Potential
Aggregate market factors
• Competitive factors
Environmental factors
Cont.
Bases for sales comparison
- Quotas
- Comparative sales forecast
- Forecast vs. actual
Sales forecast
Why forecast?
One of the keys to success in sales is knowing
where customers are located and being able
to predict how much they will buy.
Sales forecasting
• Identifying critical factors (assumptions)
• Selecting method of forecasting
• Collecting, analysing, interpreting data.
• Concluding predictions.
10
Geographic Area forecast
• Nation
• Region ( REGION OR ZONE )
• Territory ( BRANCH / DISTRICT )
• Customer
11
Forecasting Approaches
* Top - down / Break -down approach

An SBU level forecast broken down to region,
district, territory, salesperson and individual
customer sales quotas
• Bottom -up / Build - up approach
Individual customer to branch to zone to
company level forecast
12
Methods of sales forecast
• Qualitative methods:
Executive opinion
Delphi method - prediction by a panel
Sales force composite - 'grass roots' approach.
Test marketing -controlled or simulated
13
Sales forecast methods
Quantitative methods:
Moving averages
Exponential Method
Regression analysis
Econometric analysis
14
AIDAS theory of selling
• A-Securing attention.
• \-Gaining Interest.
• D-Kindling desire.
• ^-Inducing Action.
• S-Building Satisfaction.
The sales budget
□ To the sales department, the budget is a

blue print for making sales. It involves
money invested in distribution facilities,
promotion efforts, and sales personnel. It
is the foundation on which to plan sales
objectives and the means of achieving
them during the coming year.
Sales budget
□ A budget is a quantitative expression of plans.
Most well managed enterprises use a budget which
is a comprehensive and coordinated plan for the
operations and resources of the enterprise.
□ It is a formal and intricate process
□ Approaches are either incremental or zero based.
□ In a volatile economic climate organizations
estimate optimistic, realistic and pessimistic
scenarios.
Sales budget
Critical factors considered:
1. past trends
2. Sales force estimates
3. Trade prospects
4. Present scenario
5. Customers: existing and potential
6. Government policies
7. Industry environment
Market Cost Analysis: Number
of sales people
□ Decision on the size of the sales force is
very complicated because structure of
the customers vary in each territory, the
level of competition varies across
territories, the connectivity for travel
varies etc.
□ There are 3 generally accepted
approaches: affordability, incremental
and workload methods.
Sales territories
□ Definition : A sales territory consists of

existing and potential customers
assigned to a sales person. The territory
may or may not have geographic
boundaries.
Reasons for territories
□ Increase I improve customer coverage

□ Control selling expenses
□ Effective evaluation of salesman’s
performance.
□ improve customer relations
Territory design
□ Main procedural steps:
1. Selection of a basic geographical control
unit
2. Determination of sales potential present in
each unit
3. Combining the basic units into tentative
territories
4. Adjust for differences in coverage difficulty
and readjust the tentative territories ( build
up / break down method )
Territory design
□ Build up method:
Decide call frequency
Calculate total no of calls in the unit
Estimate workload capacity of salesman
Make tentative territories
Develop final territories
Territory design
□ Break down method:

Estimate company sales potential for
total market.
Forecast sales potential for each control
unit.
Estimate sales expected from each
salesman.
Make tentative territories.
Develop final territories.
Routing Scheduling and
control
□ Reasons / advantages:
□ Maintain lines of communication
□ Improve territory coverage
□ Minimize wasted time
□ Closer scrutiny of sales force movement
□ Journey plans for improving customer
satisfaction
10
I
Quotas
□ Quotas are quantitative goals assigned

to individual sales persons for a
specified period of time.
□ One of the most widely used tools in
sales management.
□ Should not be confused with sales
potential or sales forecast.
□ Quotas may be set equal to .above or
below the sales forecast.
11
I
Why Quotas ?
□ To help management motivate sales

people.
□ To direct sales people where to put there
efforts.
□ To provide standards of performance
evaluation
12
I
Types of Quotas
□ Sales volume Quotas : Rupee volume I

Unit volume
□ Profit based Quotas: contribution / gross
margin
□ Activity Quotas: calls per day; sales
meetings; product demos; ( efforts =
results.)
□ Expense Quotas
13
QUOTA SETTING
MECHANISM
□ S-specific
□ M-measurable
□ A-achievable
□ R-realistic
□ T-time bound
14
Differences Between Selling & Marketing
FUNCTIONS
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The sales and marketing relationship
Marketing and sales are very different, but have the

same goal.
Marketing improves the selling environment and plays
a very important role in sales.
The marketing department's goal is to increase the
number of interactions between potential customers
and company, which includes the sales team using
promotional techniques such as advertising, sales
promotion, publicity, and public relations, creating
new sales channels, or creating new products (new
product development), among other things.
k
14 SELLING CONCEPT VS MARKETING CONCEPT
V
SELLING CONCEPT MARKETING CONCEPT
» Inward focus on business. >Outward focus on

Define business by goods customer.
and services >Define business by
For everybody or the benefits for customer
average consumer. >To a specific group of
customer
Profitability through sales
.volume >Profitability through
customer satisfaction.
* Less favorable in a
/ competitive environment. >More favorable in a
competitive environment.
16
V HOW THE COMPANIES ACT
SELLING CONCEPT MARKETING CONCEPT
Focus on seller’s needs Focus on customer needs

Holds customer and business. Holds customer and business.
Manufactures the product first. Identifies the customer first.
Sales volume oriented Customer satisfaction with
profit oriented.
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17
V HOW THE COMPANIES PERFORM?
SELLING CONCEPT MARKETING
CONCEPT
Product supreme. • Customer supreme.
Profit through sales volume Profits through customer
satisfaction.
\ Planning is short term
\ / oriented Planning is long term
oriented.
\ / Aims at customer
\\ / satisfaction with companies Aims at customers as profit
\\ / profit. targets.
Sales ForceTraining
Role of Sales Training in
Sales Force Socialization
Sales training helps socialize the new hires,
providing them with a positive:
• Initiation to Task — The degree to which a sales

trainee feels competent and accepted as a working
partner
• Role Definition — An understanding of what

tasks are to be performed, what the priorities of the
tasks are, and how time should be allocated among
the tasks.
Sales Training as a Crucial Investment
• Most organizations see a link between

sales training and salesperson
productivity raining pays off)
• U.S. companies spend approximately

$8.7 billion annually on training
• The need for sales training is continual
• Sales managers play a crucial role in the

training process
Managing the Sales Training Process
Assess Sales Training Needs
Set Training Objectives
Evaluate Training Alternatives
Design Sales Training Program
Perform Sales Training
Conduct Follow-Up and Evaluation

Assess Training Needs
■
>•
ine desired skill set and levels of
|ppg ormaoce
• AsSesS*S^lesperson’s actual skill set and
performance
• A p between desired and actual
e training needs
Assess Training Needs: Methods
Sales Force Audit

Performance Testing
Observation
Salesforce Survey
Customer Survey
Job analysis
Typical Sales Training Needs
lw I
chniques:
e have an ongoing need to learn
Product Knowledge:
Salefep' must know their product benefits,
applicati competitive strengths, and
limitatior
*
1
/
I
1 •
tomer Knowledge:
If lespeople should know their customer
eds.ûving motives, buying procedures,
ana personalities.
ptitive Knowledge:
must know competitive offerings
strengths and weaknesses.
irime and Territory Management:

Salespeople should learn to maximum work
effiWaBicyr
MFA
Common Mistakes
Sales Training Addresses
• Ineffective listening and questioning

• Fajjure to build rapport and trust
Ml
• Po^jobjjj prospecting for new accounts
•Lack of preplanning of sales calls
B Reluctance to make cold calls

appointment)
Common Mistakes
f sales strategies for different
match call frequency with

tential
oo much time with old
Common Mistakes
Over-controlling the sales call

ilure to respond to customers’ needs
benefits
ng benefits before clarifying
storriers’ needs
effective handling of negative attitudes

ilure to effectively confirm the sale
Training Objectives
ase sales or profits
te positive attitudes and improve

ajesforce morale
ssist in sales force socialization
• Reduce role conflict and ambiguity

Training Objectives
^^^BClLce new products, markets, and

jEPmotional programs
WM salespeople for future
•Management positions
• Ensure awareness of ethical and legal

responsibilities
Training Objectives
Mjiegg|a administrative procedures

3EHire competence in the use of sales
Wd âles support tools
• l\4iMrqfce sales force turnover rate
•Prepare new salespeople for assignment
a sales territory
• Improve teamwork & cooperative efforts
ales Training Methods

/Conference Training
b Training (OJT)
ring
tation
Sales Training Methods

al Simulations
>n Training
ales Training Media
)m]5tTte|r-Based (e.g., CD-ROM)

sed
Design the Sales Training Program
• -fFinaligte the Training Program

^Schedule Training Sessions
^Make Necessary Travel Arrangements
• lOke Necessary Accommodation
Arrangements
Perform Sales Training
As thef raining is being conducted, the

sale^ manager’s primary responsibility
^feto monitor progress of the trainees
aiftfljfco-ensure adequate presentation of
the training topics.
Conduct Follow-Up and Evaluation
It is always difficult to measure the

. effectiveness of sales training.
^feleyd’rthdjess, a reasonable attempt must
be^made to assess whether current
training expenditures are worthwhile and
whether future modification is warranted.
Importance of Sales Training
• Sales training is a long-term
process facilitating the continual
growth and productivity of
salespeople.
• Sales training includes these:

- formal programs
- informal programs
• These are the long-term

objectives of sales training:
- find effective ways to plan, sell,
and serve customers
- increase profits
Long-Term Benefits of Sales Training
Keys to Sales Training Success
comprehensive
customized
relevant
performance oriented
motivational
modular
easy to test and measure
interactive
cost effective
embraced by top management
Developing and
Implementing Sales Training
hat is the problem? • Who will attend

hy is it happening? the training?
hat factors help or hinder • What are the
rformance? training
Is the training
objectives?
hat improvements do you solution practical?
pect from the trainees? • What topics will
What is the budget?
be taught?
hat improvements do you
How long will the
•pe for in the organization? • How will training
training take?
be presented?
How many people
• Who will present
will attend?
Sales Training Development Process
Conduct a Training Needs Assessment
Managers should review

these aspects of a
salesperson:
- background
- previous job experiences
- gaps between their
qualifications and the
required job activities
Determine Training Objectives
• The key is to focus on
performance objectives in
terms of achieving
successful results from
training.
• A primary objective of many
training programs is to teach
the sales force and
distribution channel
members how to be more
productive.
• A contemporary philosophy
is that professional
salespeople are advisers or
Salesperson as an
Advisor and Consultant
develops a long-term
relationship with clients
identifies the client's problems
and suggests solutions
depends on providing helpful
information and service to
secure business
follows through to ensure
customer satisfaction
works closely with
headquarters marketing
support staff
• wants to participate in training
tn onhanro collina anrl
Types of Sales Training Programs
Designed for newly

Designed for
hired salespeople, it
experienced
is comprehensive
salespeople, these
and usually lasts
programs are
three to six months.
shorter, but more
intensive in their
coverage of
specialized topics.
Determine Sales
Training Program Content
• company's policies
• What is the
• company benefits
product?
• office protocol • Why do people
• payment methods buy it?
• industry trends and
• expense accounts • Who participates
competitive tactics
in the buying
• communication
• competitors' product process?
channels
knowledge enables • How do I
salespeople to differentiate the
compare brands, product (its
highlight advantages advantages)?
Determine Sales
Training Program Content
^4.
Customer and Sales training \ 5.
arket knowled program content )— Selling skills

knowledge
• understand the
company's products (1) prospecting
thoroughly (2) planning the call
• penetrate customers' (3) approaching the
buying organization prospect
• knowledgeable about
• know the customers' using the latest sales (4) making the sales
markets force automation presentation
• relate to customers' (SFA) technology for
(5) meeting
requirements better customer
objections
relationship
• become team (6) closing the sale
management
Making Training Delivery Decisions
Making training delivery

decisions encompasses
the following:
- Who will conduct the
training?
- Will it be for individuals or a
group?
- What method of delivery
should be used?
- Where and when will the
training take place?
Determine Responsibility for Training
• Line executives
(sales managers, • Staff trainers are
senior sales either members
representatives, of personnel,
field supervisors, production, or
and division Outside training office
managers) often specialists can be management
train new as well retained to enhance areas, or they
as experienced knowledge about: are company
salespeople. • motivating employees hired
salespeople specifically to
• leading salespeople conduct sales
training
Select Group or Individual Training
Group instructional Individual instructional

methods methods
lectures on-the-job training
group discussion personal conference
conferencing/e-learning DVD/video/audio
simulation games e-learning
demonstrations computer-based training,
role-playing games
Choosing Instructional Methods:
Traditional Training Methods
1. lectures
2. literature
3. group discussions
4. role-playing
5. simulation games
6. demonstrations
7. on-the-job training
8. mentoring
9. personal conferences
10. audiotapes
11. DVDs
12. computer-based training
Emerging Training Methods
Location of Training
Centralized training Decentralized training

includes organized includes office
training schools, instruction, use of
periodic experienced
conventions, or salespeople, on-the-
seminars held in a job training,
central location such podcasts, blogs,
as the home office. webinars, and other
e-learning
approaches.
Preparing, Motivating,
and Coaching Trainees
preparing^
motivating,
reparing trainees and coaching Motivating trainees
for training trainees during training
Conducting
• A pre-training post-training
briefing tells To motivate,
inforceme
participants the trainers can
training's purpose follow these
and objectives, steps:
why they were Use coaching
use positive
selected to (developmental
reinforcement
attend, and the feedback) via
informal, give-and- use active
business need the
take discussions training formats
sales manager
between sales and variety
hopes to meet.
managers and encourage social
salespeople for the interaction
&
How to Train and Develop "A" Players
To see a video on how to hire and develop "A"

players, visit
- http://www.sellingpower.com/video/index.asp?date=l/3/2
007
Articles on Sales Force Training
To read various articles on sales training, go to
- http://www.speakersroundtable.com/sales-training.html
- http://www.advantagepoint.com/articles/sales/Default.htm
- http://www.businessballs.com/salestraining.htm
- http://www.eyesonsales.com
Read about the economic impact of a poorly

trained sales force at
- http://www.sogistics.com/salestraining/articles01.html
Evaluating Training Programs
■ measures
trainees' attitudes
and feelings
toward the
■ assesses how well

the trainees
learned basic
principles during
the training
program
Model of Training Effectiveness
1. Corporate objectives 2. Training component
Where are we going? right training
(vision) \ right delivery
What do we hope ) right people
to achieve? f right amounts
(goals) right time
- p Modifying factors
economy job descriptions regulations
rewards succession plan
4. Business performance 3. Change of attitudes,

profits objectives behavior, skills, knowledge,
manpower and performance
costs
quality
H.R. issues
Continuous Training Programs
Continuous
training
programs
Refresher training
helps salespeople do Retraining should be
their jobs better by used when a
keeping them salesperson's job
abreast of changes in requirements change
technology, Managerial training is because of new
products, markets, used to introduce new products or services,
and company approaches to revised sales
objectives. organization, planning, territories, or
motivation, upgraded sales force
compensation, automation (SFA) or
supervision, evaluation, customer relationship
and control over the management (CRM)
Sales Training Challenges
For Global Companies
Cultural similarity
CD
>
on
C
CD
+-»
X
little training cultural knowledge
LU
needed training
cultural adaptability cultural adaptability

training and
cultural knowledge
training
Ethical Situation: What Would You Do?
Discussion Question
Your company's national sales manager has mandated that each salesperson
must undergo training upon initially being hired and retraining every two
years after that. You are very skeptical about training being of much value for
seasoned salespeople who are performing well, and it's frustrating and costly
in terms of lost sales to pull them out of their territories for centralized
training. Therefore, you've decided to do all the training of your experienced
salespeople online via e-learning on your company's intranet, so your
salespeople can complete the programs on their own time after their normal
working hours. You've heard that it's best for the salespeople to interact with
and learn from each other in their training, so you've encouraged the
salespeople to contact each other to share perspectives.
Cont.
With the training budget money saved, you hold a party for
all the salespeople who complete the e-learning on time
and give special awards to those who score highest. In the
first e-learning training cohort, you heard through the
grapevine that the salespeople formed small teams to
complete different parts of the training then passed the
answers on to each other, so that none of the salespeople
honestly went through all parts of the training. This may be
happening in other e-learning training cohorts. If the
national sales manager finds out, you'll just pretend to be
surprised and disappointed by your salespeople's deception
when you've put such trust in them via the self
programmed e-learning training program.
SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT
Nature of Personal Selling and

Sales Management
Pervasiveness of Selling
Personal Selling in Marketing
Creating Customer Value through
Salespeople: Relationship and
Partnership Selling
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
THE MANY FORMS
OF PERSONAL SELLING
Order Taking
Order Getting

How outside order-getting salespeople spend
their time each week
How salespeople spend their time each week
--------------- Service calls

(6.1 hours)

THE MANY FORMS
OF PERSONAL SELLING
• Customer Sales Support Personnel

■ Missionary salespeople
■ Sales engineer
■ Team selling

THE PERSONAL SELLING
PROCESS: BUILDING
RELATIONSHIPS
• Prospecting
• Preapproach
• Approach

STAGE OBJECTIVE COMMENTS
| 1. Prospecting Search for and qualify Start of the selling process;

prospects prospects produced through
advertising, referrals, and cold
canvassing.
Gather information Information sources include

and decide how to personal observation, other
2. Preapproach
approach the customers, and own
prospect salespeople.
Stages Gain prospect’s First impression is critical; gain
and 3. Approach
attention, stimulate
interest, and make
attention and interest through
reference to common
transition to the acquaintances, a referral, or
objectives presentation product demonstration.
of the Begin converting a

prospect into a
Different presentation formats
are possible; however,
customer by creating involving the customer in the
personal 4. Presentation
a desire for the
product or service
product or service through
attention to particular needs is
critical; important to deal
selling professionally and ethically with
prospect skepticism,
indifference, or objections.
process
Obtain a purchase Salesperson asks for the
commitment from purchase; different approaches
5. Close
the prospect and include the trial close and
create a customer assumptive close.
Ensure that the Resolve any problems faced

customer is satisfied by the customer to ensure
6. Follow-up
with the product or customer satisfaction and
service future sales possibilities.

PROCESS: BUILDING
RELATIONSHIPS
Presentation
• Stimulus-Response Format
• Formula Selling Format

PROCESS: BUILDING
RELATIONSHIPS
• Presentation
• Need-Satisfaction Presentation
■ Adaptive selling
■ Consultative selling
• Handling Objections
• Close
• Follow-Up

THE SALES
MANAGEMENT PROCESS
Sales plan Sales plan Evaluation and

formulation implementation control of the
Setting objectives Salesforce recruitment salesforce
Organizing the and selection Quantitative assess
salesforce Salesforce training ment
Developing account Salesforce motivation Behavioral evaluation
management policies and compensation

THE SALES
MANAGEMENT PROCESS
Sales Plan Formulation

• Setting Objectives
• Organizing the Salesforce

Organizing
the
Sales
Force by
customer,
product,
and
geography General Sales
Manager
Geographical organization
Eastern Regional Western Regional

Sales Manager Sales Manager
1 1 ------------ 1
District District District
Sales Manager Sales Manager Sales Manager
1
Individual
salespeople
© 2uuo iviccrraw-mii companies, inc., ivicuraw-nnuirwin

Organizing the sales force by customer
General Sales
Manager Customer organization
r -------- 1t—
Sales Manager
Fann and construction Government and
Auto industry
equipment military
-- -------- 1---------
I
Individual
salespeople

Organizing the sales force by product

Organizing the sales force by geography
General Sales
Geographical organization
Manager
I
I
Eastern Regional Western Regional
i--------- —II--------------------- I
I
Individual
salespeople

THE SALES
MANAGEMENT PROCESS
Organizing the Salesforce (cont)

■ Major account management
■ Workload method
Developing Account Management
Policies

Account management policy grid
Competitive position of sales organization
High Low
1 3
Attractiveness: Accounts offer a good Attractiveness: Accounts may offer a good
opportunity because they have high potential opportunity if the sales organization can
and the sales organization has a strong position. overcome its weak position.
Account management policy: Accounts should Account management policy: Emphasize a
Account opportunity
receive high level of sales calls and service to heavy sales organization position or shift
retain and possibly build accounts. resources to other accounts if a stronger sales
organization position is impossible.
2 4
Attractiveness: Accounts are somewhat Attractiveness: Accounts offer little
attractive because the sales organization has opportunity, and the sales organization
a strong position, but future opportunity is position is weak.
Low limited. Account management policy: Consider
Account management policy: Accounts replacing personal calls with telephone sales
should receive moderate level of sales and or direct mail to service accounts. Consider
service to maintain current position of sales dropping account.
organization.

THE SALES
MANAGEMENT PROCESS
Sales Plan Implementation

• Salesforce Recruitment and Selection
■ Emotional intelligence

U.S. salesforce composition and change
Salesforce Salesforce composition Growth in sales positions

composition by sex by racial/ethnic group by racial/ethnic group since 1985
African- Hispanic
American
8%
White 124%
African-
Male Female American 230%
50% 50%
Hispanic 274%
White
80% Asian 310%
—i---------------------- 1---------------------- 1—
0% 100% 200% 300%

THE SALES
MANAGEMENT PROCESS
Sales Plan Implementation

• Salesforce Training
• Salesforce Motivation and Compensation

THE SALES
MANAGEMENT PROCESS
• Salesforce Evaluation and Control

• Quantitative Assessments
• Behavioral Evaluation
• Salesforce Automation and Customer
Relationship Management
• Salesforce Computerization
• Salesforce Communication

Steps in Selling Process
Step 1: Prospecting and Qualifying
Step 2: Preapproach
Step 3: Approach
Step4: Presentation and Demonstration
Step 5: Overcoming Objections
Step 6: Closing the Sale
Step 7: Fallow-up and Service

Step 1: Prospecting and Qualifying
• Prospecting means identifying potential customers.
• A prospect is an individual, a family, or an organization who needs the

product or the service a sales person is selling and also has the ability
to buy.
Qualifying
The prospect is qualified means to meet the necessary standards or

conditions to receive further attention called probable prospector.
Identify Probable prospector

The probable prospect has a need for the product/ service is being
sold
The probable prospect can afford to buy the product or service.
The prospects after qualifying they are placed in three groups
>Hot Prospects: These prospects have good requirements of the

companies products or services and are financially sound.
>Warm Prospects: This group of prospects have medium or average

requirements of the companies products or services and are
financially sound.
> Cool Prospects: These prospects have low requirements and their
financial capacity may or may not be good.
Step 2: Pre- Approach
The Preapproach step generally includes two tasks one is information
gathering in greater depth about the prospect and second one is sales
call on the prospect.
The sales person needs to collect much information as possible about
the prospect.
Prospect's business
purchasing practices
location of plants
Step 3: Approach
After collecting the prospect's name and other relevant information,
the next step is to make an appointment to see the prospect. This is
called Approach(meeting to the buyer for the first time)
Approach techniques
Întroductory Approach
>Customer benefit Approach
>Product Approach
>Question Approach
Step 4:Presentation and Demonstration
The objective of presentation and demonstration is to help in convincing the
customer that the salesman's product is the best one for satisfying his
needs.
Affective presentation can done through AIDA approach

> Attention
> Interest
> Desire
> Action
According to this approach, the product should be demonstrated in such a
manner that it gains the customer's attention, holds his interest builds up his
desire for the product, and ends up in purchase action.
Developing an effective Presentation
>Planning
>Use Technology
> Adapt Presentation
>Benefit Plan
> Don't overload
> Prospect's language
>Convincing
Demonstration- It is one of the important selling tool of sales person.

Sales presentation can be improved by Demonstration. Demonstration
prove the benefits of the product and reduce the risk of a wrong
purchase to the buyer.
Step 5: Overcoming Objections
Sales objections may typically take place during sales presentation or when the sales
person asks for the order from the prospect.
Psychological objections(Hidden objections)

predetermined ideas or beliefs
preference for established brands
Resistance to spend money
Logical objections (Real objections)

Deliver schedule
High Price
Product quality
Product availability
Methods of handling and overcoming logical objections
Ask questions
Turn an objection in to a benefit
Deny objections tactfully
Third party certification
Compensation
Step 6: Closing the Sales
Closing the sales means asking for the order.
• When should a Sales person close the sales?
• When the buyer is ready in mental buying process .Most of the time,
prospective buyers give indications about their readiness to buy.
The buying signals are

Examines the product
Asks another person's opinion
Asks questions
Becomes friendly
Step 7: Follow-up and Service
After closing, it is important for the salesman to follow up the order booked so
as to ensure that the order is properly executed.
Check customer order

Receiving the product
Any damage of the product in transits
Installation requirements if any
Training if needed
Consumer Buying Decision Process
Step 1: Problem/Need Recognition
Step 2: Information Search
Step 3: Evaluation of Alternatives
Step 4: Purchase Decision
Step 5: Post-Purchase Behaviour

Step 1: Problem Recognition
The Consumer buying process starts when the perspective consumer

recognizes a problem or need. Whatever may be the cause of the need,
the sales person must identify the buyers needs to know what
information about benefits should be given so as to satisfy the buyer's
needs.
Step 2: Information Search

>Low involvement Products
>High involvement Products

Step 3: Evaluation of Alternatives
Factors in the Evaluation Process
>The consumer is trying to satisfy a need, or solve a problem
>The consumer is looking for certain advantages or benefits from the
products or service that satisfies the need or solve his/her problem
>The consumer knows that each alternative product or brand has a set
of characteristics that try to satisfy his/her need.
>The importance and relevance of attributes vary from product to
product
Step 4: Purchase Decision
The consumer's purchase intentions can be changed by two factors.
> Attitude of others
Family members
Relatives
Friends
Colleagues
>Unanticipated situational factors
More urgent
Financial Problems
Health related problems
For high involvement products the purchase decision includes
>Which brand Purchased
>Timing of Purchase
>How much quantity required
>From which retailer or dealer to buy
>How to make the payment
Step5:Post Purchase Behavior
The post-purchase action of the consumer will depend upon the
satisfaction or dissatisfaction of the consumer with the product or
service.
It is a known fact that the buyer's satisfaction is high , if the product's
perceived performance is more than the buyer's expectations.
If the performance falls short of the expectations, the consumer is
dissatisfied.
Emerging Trends in Sales Management
Global Perspective
Customer relationship Management
Salesforce Diversity
Team Selling approach
Managing multi -Channels
Ethical and Social issues
E-Selling
Global Perspective
Sales people and Sales managers must manage their sales forces to
meet foreign competition in their country and to improve company's
personal selling efforts in other countries.
Sales managers selling goods and services in the global market place
face challenges such as differences in culture, different requirements
for buying, and different styles of negotiations and so on.
Customer relationship Management
Combining information technology with relationship marketing has resulted in

customer relationship management. The concept of relationship marketing
came about earlier by bringing quality, customer service and marketing
together.
Relationship marketing aims in building long term satisfying relations with

key customers distributors and suppliers in order to earn and retain their
long term preference and business.
Sales force Diversity
The demographic characteristics of sales force is changing and becoming
more varied.
For example, more and more women are taking up careers in sales
management and selling. Also the education level of sales people is going
up most of them holding a college degree or a post graduate degree.
Sales managers now have to handle a sales force of these varied

demographic, expectations of each and every individual is different and
sales manager needs to use different motivational tools against each one of
them.
Team Selling Approach
The practice of team selling is more widely followed by most companies in

recent years. Team selling approach is used when company wants to build a
long term mutually beneficial relationship with major customers, who have
high sales and profitable potential. It is used for selling a technically complex
product or a service to a potential customer. The composition of team may
vary depending upon the customer from top management, technical
specialist, customer service, etc...
Managing Multi-Channels
Multi-channel marketing system occurs when organization uses two or

more marketing channels to target one or more customer segments.
Major benefits of multi-channel marketing system are:
1 .Lower channel cost

2.Increased market coverage
3.Customized selling
Multi-channel may also lead to conflicts and control problems, as two

or more channels may compete for same customer. A successful
sales manager will have to effectively manage conflict between the
channels.
Ethical and Social issues
Sales managers have ethical and social responsibilities. Sales people face
ethical issues such as bribery, deception (or misleading) and high pressure
sales tactics. Today’s sales managers have no choice but to ensure ethical
standards from sales force otherwise they may be out of business or even
land up in legal problems.
E-Selling
E-Commerce
E-Purchasing
E-Marketing
E-Selling
E-Purchasing means purchasing goods and services from online suppliers.

E-Marketing a company's marketing efforts such as promotion and selling are done through the
internet.
E-Selling which is a part of e-marketing ,turns passive visitors to the company's website into active
customers.
For effective e-selling, a company should carefully select shopping -cart software and services and
using secure server system for support to customers before, during, and after they make a
purchase.
Sales Objectives, Strategies and Tactics
Sales Objectives
Objectives are the statements of intents and when they are quantified
to specific and measurable targets with respected time periods, they are
called goals.
The sales objectives and goals are derived from the company's
marketing objectives and goals, which 06 depend on the company's
objectives and goals.
Sales Strategies and Tactics
Strategies include ways of achieving the Objectives, and tacticsfaction plans)
are the activities or the actions that should be carried out in order to
implement the strategy.
The sales strategies are mostly related to salesforce strategies.
Salesforce Strategies
Îdentify the countries and Intermediaries
>Sign sales agreements with channel members
>Review and improve salesforce training
>Ensure all market segments are covered
>Use internet selling and telemarketing, in addition to company salesforce.
Sales Management Positions
There are three levels of Sales managers in the organizational

Hierarchy.
These are
A. Strategic or Top level Sales Managers
B. Tactical or Middle-level Sales Managers
C. Operational or First-line sales Managers
A. Top level (Strategic) Sales Managers
The people consist in this level generally
Vice-President (Sales)
General Manager (Sales)
National Sales Manager
These people are Responsible for

> Long-term marketing or Sales planning
>Setting long and short term sales objectives and goals
>Developing strategies for achieving the sales Objectives and goals
implementing the Strategies and action plans
>Controllingthe performance
B. Tactical or Middle level Sales Managers
These positions mostly carry the regional, zonal or divisional sales
activities.
The major responsibilities are
> Manage several branches
implement the strategies and action plans approved by the top
management.
C. Operational or First-line Sales Managers
These positions mostly carry branch, area district sales activities.
The major responsibilities are

>They are directly responsible to achieve sales goals and objectives
>Day-to-day supervision to sales people
/-Implement the procedures and rules decided by higher levels
TYPES OF SELLING
Types of Selling
Selling may be classified into three broad

categories
1) Transactional Selling
2) Relationship Selling
3) Value Added Selling
Transactional Selling
> In this selling mostly one-time-only exchange with an

objective of getting sales or orders from customers
whose profit potentials are low.
> The selling efforts are minimum, with low or competitive

prices and /or availability as main criteria for getting
sales.
> There is a little interest by either the buyer or the seller to

extend the relationship.
Examples: Stationary materials, Cleaning chemicals

Relationship selling
> Relationship selling refers to the sales technique that
focuses on the interaction between the buyer and the sales
person rather than the price or details of the product
> The objective of the seller in this type of selling is to become
the preferred supplier and to build strong and ever lasting
relationship over a long period of time.
> The foundation of relationship is based on trust and
commitment
> Both the buyer and seller accept the relationship is so
important that it deserves maximum efforts to continue with it.
Value added selling
> Value-added selling means when a seller provides a product or
services to customer that can be used in multiple ways. The
products are homogeneous with few differences (if any) from
that of a competitor.
> In this type of selling the focus is on correctly understanding

the present and future needs of the customer and meeting
those needs better than the competitors so as to obtain a
maximum share of customer’s business
> It is also applied in case of customers who seek lower

cost and better quality and are not interested in
partnership relationship.
Distinction between Transactional Selling and Relationship Selling
■s a
------------------------------------------------------------------------------------------------------------------------------------------
Basis of Distinction Transactional Selling Relationship Selling
1. Objective To get the sales or To become sole or

order preferred supplier
2. Focus To carry out To build trust
transaction
3. Number of Several customers Few customers
customers
4. Emphasis on Little emphasis on High emphasis on
customer service customer service
5. Time period Short time scale Long time scale

6. contact Discontinuous Continuous contact
contact with with customer
customer
7. Pricing Strategy Lowest or Mutually acceptable
competitive price to prices
get sales
8. Customers Limited commitment High commitment to
expectations to meet customers meet customers
expectation expectation
Roles of a Sales Manager
1. Strategic role in the company with key inputs - long
term strategic plans, forecasting, sales force
management, evolving strategies, controlling budget.
2. Member of corporate team to ensure organizational
objectives - customer satisfaction, sales growth &
market share
3. Team leader to achieve sales goals & profits
4. Managing multiple sales channels - personal selling,
electronic and telemarketing
5. Latest CRM technologies
6. Continually understand changes in environment and
update strategies

2. Managing Skills - Administrative skills like -
making
3. Technical skills - Training, selling,
Nature and Importance of Sales Management
A. Its integration with Marketing Management
B. Relationship Selling
C. Varying Sales responsibilities

A. Integration with Marketing Management
A sales management is a part of marketing management, Sales
planning should be integrated with marketing planning.
Company's marketing team typically consist of two basic groups

a. Field selling (personal selling) team
b. Head quarter marketing team
Field selling teams (field sales force ) are in their territories contacting
existing and prospective customers.
The head quarter marketing team performs support and service functions
to assist field sales people in their jobs.
The head quarter based service functions are:

>Promotion
>Marketing Research
>Market logistics
>Customer service
> Co-ordination
> Promotion
Advertising
Sales Promotion
Market logistics
Customer Service
Co-ordination
>Marketing Research
Collecting and interpreting information on customers

Competitors
Products
Markets
>Market logistics
Physical distribution of finished goods
Warehousing facilities
Inventory
Transportation
Order processing
>Customer Service
Pre and post sales service as well as delivery service to existing and
prospective customers.
>Co-ordination
Co-ordinate between customers and company's sales people.
B. Relationship Selling
Every relationship is an exchange, which is the process of obtaining a
desired product or service from someone by offering something in return.
Relationship selling is the tactical (or action oriented) arm of relationship

marketing. Relationship marketing is basically the creation of customer
loyalty. It means important or major customers need continuous
attention through collaborative relationships.
>Value added relationship- Is focused on the sales person
understanding the current and future needs of the customer correctly
and meeting those needs better than the competitors. After the
purchase is made ,the sales person contacts the customer to find out if
the customer is satisfied and has any future needs.
* The role of sales people is very important in the company's

relationship marketing programme.
C. Varying sales responsibilities / Sales positions
Selling includes a variety of sales jobs, which are different from one
another. No two sales positions are similar. The term sales representative
will be used frequently and the same meaning as salesman or sales
person.
Delivery Sales Person

Order Taker
Missionary sales people
Technical sales support people
Demand creator
Solution Vendor
Stage 1: Simple Trade Era (Pre-Industrial Revolution)
Stage 2: Production Era ( 1860's- 1920's)
Stage 3 : Sales Era ( 1920's- 1940's )
Stage 4 : Marketing Department Era (1940's-1960's)
Stage 5 : Marketing Organization Era (1960's- 1990's)
Stage 6 : Relationship Marketing Era (1990's -2010)
Stage 7 :Social/ Mobile Marketing (2010- Present)

Stagel:Simple Trade Era (Pre-Industrial Revolution)
The beginning era identified as Simple Trade Era, lasted from the
beginning of the marketing concept to the mid 19th century.
In this period whatever products available were harvested
with limited offerings. Exploration and trade in resources
was the focus of the economic activity with products as
center of attraction.
Stage 2: Production Era (1860's- 1920's)
In the next stage the simple trade era was replaced by the
production era, continued until the great depression. In this era
importance was given on engineering and production. The
primary objective was to only produce product and sell it to the
market in assumption that customers have to accept it as
alternatives were not available.
Stage 3 : Sales Era (1920's- 1940's )
The sales era lasted between 1920's and 1940's, emphasized on

different marketing related aspects rather than product. As
consumer markets were saturated and competitions were
increasing day by day so it was not easy to sell product without
providing adequate information about the brand. Here price
became one of the most important features to organizations to
get an edge over their rivals.
Stage 4 : Marketing Department Era (1940's-1960's)
During the post Second World War phase, World featured economic
boom resulted a urgent need of a separate department for marketing
called as Marketing Department Era. Here organizations experienced
that past sales orientation concept were not sufficient to motivate
consumers as they have more bargaining power in Market place.
Business consolidated market related activities like advertisement,
sales promotion, Public relation etc., in to a consolidated department
and concentrating on brand positioning.
Stage 5 : Marketing Organization Era (1960's- 1990's)
As the premise of the marketing concept became widely accepted so

the era of marketing organization emerged to take care of
customers’ need. Now customers are the focal point and all
employees became part of the marketing effort. In the classical
theory of marketing evolution this is the last stage followed by two
modified version of sub-stages.
Stage 6 : Relationship Marketing Era (1990's -2010)
This sub-stage within marketing concept identified as the relationship

marketing concept. The goal of the organization is to build-up a
long-term relationship with customers. The general focus has changed
to lifetime customer value and customer loyalty.
Stage 7 :Social/ Mobile Marketing (2010- Present)
The second sub-stage within the marketing concept is identified as

social/mobile marketing concept. It summed-up the knowledge and
theories of its predecessor era but focuses on real-time connections
and social exchanges based on build-up relationship driven by the
consumers. In this concept businesses are connected 24/7 to current,
future and potential consumers in real time.
Concept & Definition of Sales Management
Efforts put forth to attain a company’s sales objectives
through sales management’s involvement with following
activities:
(1) Formulation of sales strategy through development of
account management policies, sales force compensation
policies, sales revenue forecasts, and sales plan,
(2) Implementation of sales strategy through selecting
.training, motivating, and supporting the sales force, setting
sales revenue targets, and
(3) Sales force management through development and
implementation of sales performance, monitoring, and
evaluation methods, and analysis of associated behavioral
patterns and costs.
THE NATURE AND IMPORTANCE OF SALES
MANAGEMENT
While the role of sales management professionals is
multidisciplinary, their primary responsibilities are:-
(a) Setting goals and standards for a sales-force;
(b) Planning, budgeting, and organizing sales program

to achieve pre-defined goals;
(c> Implementing the program with proper segmentation

and
<d) Controlling the overall program and evaluating the

results.
Objectives of Sales Management
Sales management necessitates several objectives which are

executed by sales managers. There are three such main
objectives exist in the operational part of the organization
1.Sales Volume
2. Contribution to profits
3. Continuous Growth
Objectives of Sales Management
• The sales executives in this case are the ones who help implement
these objectives.
• However it is the top management who are responsible to make

skeleton of the organizational operation and has guided the lower
management with full proof strategy to achieve these objectives of
sales management.
• The top management should come out with the idea of new products
which are socially responsible and are marketed in a manner which
meets customer’s needs and expectations.
• Thus sales management involves a strong interaction between Sales,

marketing and top management and worked as an integrated unit
under the organization as a whole.
Emerging trends in Sales Management
♦Global Presence- Being a global, it is very necessary to face stiff challenges
from global companies. Due to differences in culture, language and taste and
preferences of customers it is not easy to adopt global condition. So sales force should
have well equipped with improved technology, strategy and operational to upgrade
themselves for international level.
♦Innovative technology- Revolution in technology helped companies to

communicate with world-wide customers in ease way. To promote products sales
management on behalf of organization should adopt new innovative technology. So it is
important for sales manager to aware off recent technologies using to get edge in
competitions.
♦Better Customer Relationship Management (CRM) Being a successful

organization in today’s competitive world it is necessary to build long-term relationship
with customers. It is less costly to retain an old customer rather than acquiring a new
one. So building up long term relationship will help the organization to know better
about needs and wants of the customers as referral process is very important for the
organization. It is not only building the brand image but also provide favorable
condition to operate.
♦Diversity among Sales-force- There is always exist diversity
between sales-force of an organization. Sales manager has to
accommodate himself with people of different background within his
sales-force.
♦Team Based Selling Approach- In recent years it is common

approach for the organization to sell the product as a team to build long
term relationship with potential customers. It is also very useful when
technically complex products are in the process to sell. Generally sales
team consists of top management, inbound and outbound salespersons,
technical specialists etc.
♦Multi-channel Operations- in today’s competitive world, multi

channel operation system is very useful to reach out for potential
customers in different ways. It is very handy for i) lowering channel cost,
ii) customized selling techniques with broad coverage.
♦Ethical and Social Issues- In recent years it is necessary to abide
social and ethical issues such as legal constraints, provide social values
to customers’ expectations and taking part in events related to corporate
social responsibilities. Sales manager has to understand the complex
nature of the society and take necessary steps to deal impartially with
various social groups.
♦Professionalism within Sales-force- Sales manager should have

professional attitude to process sales operation. As customers are well
informed and aware about the market condition thoroughly so it is
necessary to gather knowledge, skills and right attitude to motivate them.
Reliability, professionalism, integrity and thorough market knowledge is
very necessary for today’s competitive world.
Emerging Trends in Sales Management
Win
Opportunity
through new
selling methods
Creating Build
Solution through Relationship &
technological Customer
innovation Orientation
Situation Identify
Analysis Opportunity
Diversity
Channels of Distribution
Distribution Channels
• Distribution channel - set of independent
organizations involved in the process of making
a product or service available to the consumer
or business user
• Used to move the customer towards the
product or the product to the customer
Place = Distribution
• The 4Ps
— Product, Price, Place, Promotion
• The "P" of Price is to Revenue Management,

the "P" of Place is to Distribution
Distribution also describes
• Locations
— Franchising
— Ownership
- Management contracts
• The sales staff and system
- Group sales or volume accounts
- Reservations and transient sales
— National sales offices
— Representation firms, consortia
Distribution Channel Functions
• Information: consumer behavior "search stage"
• Promotion: messaging
• Negotiation: price and other terms
• Physical distribution: think e-tickets?
• Prospecting: finding, communicating, and
tracking prospective buyers
Digitalization and Connectivity
• Digitalization - converting text, data, sound,

and image into a stream of bits that can be
dispatched at high speeds from one
platform to another
• Connectivity - building networks connecting
people and companies; social and mobile
convergence
Direct versus Indirect Channels
• Direct Channels
- Employed sales staff
— National sales staff
- Voice/CRS/Mobile
• Indirect - Intermediaries
— Why use them?
- Why so many of them?
Designing the Channels of Distribution
• Reservation services
• Global distribution
• Representation firms systems (GDS)
• Consortia • Traditional off-line
• Incentive travel travel agents
organizations • Central reservation
• Corporate travel systems (CRS)
management • Internet channels
• Websites
Push vs. Pull strategies
• Pushing the product "down" through the

distribution channel to the customer
- Incentives to travel agents and intermediaries
• Pulling the customer "up" through the

distribution channel to the customer
— Traditional
Why Use Intermediaries?
Selling through wholesalers and retailers usually is

much more efficient and cost effective than
direct sales
Global Distribution National, State,
Systems and Local Tour Agencies
\ /
E-Commerce & E-Marketing
E-commerce involves buying and selling processes
supported by electronic means, primarily the
Internet
E-marketing is company efforts to communicate

about, promote, and sell products and other
services over the Intranet; also web or Internet
Marketing
Not easy to separate but different issues

E-Commerce Domains
• B2C (business to consumer)
- Branded websites
• B2B (business to business)
• C2B (consumer to business)
- User groups
• C2C (consumer to consumer)
— Blogs; review sites
Internet Intermediaries
• Price and convenience key drivers

• Dominance about inventory allocation
• Consistency of all 4Ps by channel
- How Product is described
- Pricing parity
- Channel profitability
- Communication needs to vary by segment (channel)
Major Issues/Challenges
• Costs have risen as has competition
• Global differences in systems
- Technology also flattening this
• System hard to change and complex to manage
• Diversity of travel "parts" makes all of the distribution
points part of the experience and if an intermediary
fails, so does the experience
Evaluation of Channels
Control and cost of each channel

Tracking of statistics to better negotiate
contracts in the future
Understand when and why to use a channel
Good channel management ensures
customer satisfaction AND revenue
optimization AND profit maximization
Goal in distribution
• Q: What is the definition of revenue
management?
• A: Selling the right product to the right
customer at the right time for the right
price!...by the right channel!
Traditional Ch
MANUFACTURER
WHOLESALER
1
l
RETAILER
I
4
CONSUMER
MANF
MANF
WHOLESALER
MANF RETAILER
Additional functions of intermediaries
Product information - safe, effective use

Convenience - place and time
Variety / assortment
Services
- Repackaging
- Reimbursement
- Repair
- Credit
Channel conflict
- Discriminatory pricing
- Limited distribution
Channel cooperation
- Buying groups
- Prime vendors
- Charge-back system
NO CHARGE-BACK
MANUFACTURER
WHOLESALER
l
RETAIL
Channel Management /
Distribution
Z___ X
A channel of distribution
comprises a set of institutions
which perform all of the
activities utilized to move a
product and its title from
production to consumption
channel members add value
Right PLACE
Right TIME
Place UTILITY
Location - having the product where customers can buy it
Time UTILITY
Having the product available when the customer
wants/needs it
Channel members add value to a
product by performing certain
channel activities expertly
Marketing
Packaging
Financing
Storage
Delivery
Merchandising
Personal selling
CHANNEL FUNCTIONS
• Information
• Promotion
• Contact
• Matching
• Negotiation
• physical distribution
• Financing
• Risk taking
CHANNEL FUNCTIONS (cont.)
Providing marketing information:
-Companies rely on market research to
determine their target markets’ needs and
wants
-Ex: small business producing handmade
greeting cards
Promoting products:
-Can be expensive
- Retailers often take a large portion of
promotion responsibilities
• Ex: local supermarkets/discount stores
CHANNEL FUNCTIONS (cont.)
• Contact
• Matching
• Negotiating with the customers:
- Different prices are paid by the wholesaler, retailer and
consumers based on negotiation
• Physical distribution
• Financing and risk taking:
- Moving products through a channel costs money
- When channel members work together to finance activities
and to assume financial risks, channels will be more effective
7
Today’s system of exchange
-►
Promotion
—►
Contact
-►
Negotiation
-►
Transporting and storing
Producers
Users
-►
Financing
Packaging
Money
Goods
►
▼
8
key channel tasks
• Marketing
• Packaging
• Financing
• Storage
• Delivery
• Merchandising
• Personal selling
key channel tasks (cont.)
• Providing marketing information
- Rely on market research to determine their target markets’
needs and wants
• Promoting products
- Costs and responsibilities can be shared
• Negotiating with customers
- Offering to deliver and install products
• Reducing discrepancies
- Selling large quantities of products to wholesalers and
retailers
• Financing and risk-taking
- Work together to finance activities to become more
effective
10
Tasks of Intermediaries -
Wholesalers
• Break down ‘bulk’
• Buys from producers and sell small quantities to
retailers
• Provides storage facilities
• Reduces contact cost between producer and
consumer
• Wholesaler takes some of the marketing
responsibility e.g sales force, promotions
11
Retailer
• Much stronger personal relationship with
the consumer
• Hold a variety of products
• Offer consumers credit
• Promote and merchandise products
• Price the final product
• Build retailer ‘brand’ in the high street
12
Internet
• Sell to a geographically disperse market
• Able to target and focus on specific segments
• Relatively low set-up costs
• Use of e-commerce technology (for payment,
shopping software, etc)
• Paradigm shift in commerce and consumption
13
Tasks of a Logistics Manager
plans the flow of materials in a
manufacturing organization (beginning
with raw materials and ending with
delivery of finished products to channel
intermediaries or end customers) and
coordinates the work of departments
involved in the process, such as
procurement, transportation,
manufacturing, finance, legal, and
marketing.
14
when a channel will be most
effective
The channel must be properly
managed
Recognize the importance of their task
and make informed decisions
Each member is assigned tasks it can
do best
15
Describe when a channel will be most
effective (cont.)
Channel members share a common
goal
Commitment to quality of the product
Satisfying the target market’s needs
and wants
All members cooperate to attain overall
channel goals
If the channel is not effective, conflict occurs

16
horizontal and vertical conflict
Horizontal Conflict: occurs between

channel members at the same level
Good, old-fashioned business competition
Ex: two retailers selling pet supplies

compete to sell to the same target market
17
horizontal and vertical conflict (cont.)
Vertical Conflict: occurs between

channel members at different levels
within the same channel
Producers and wholesalers, wholesalers

& retailers, or producers and retailers
18
CHANNEL MANAGEMENT
DECISIONS
Channel strategy is not

formulated in a vacuum
Channel strategy and product strategy
Channel strategy and price strategy
Channel strategy and promotion strategy

19
channel management decisions
Decisions about a product’s physical movement and transfer of
ownership from producer to consumer.
• FIRST - Setting channel objectives

- Determine what the company is trying to achieve
- Meet the needs and wants of their target market
- Give their product a competitive edge
• SECOND - Channel members:

- Selection
- Management
- Motivation
- Evaluation
Managing Channel Members
• Determining channel responsibilities

• Members must work together appropriately
and perform the tasks they are best suited for
• The company must sell not only through the

intermediaries but also to/with them
21
Managing Channel Members (cont.)
Partner relationship management (PRM) and

supply chain management (SCM) software are
used to
• Forge long-term partnerships with channel
members
• Recruit, train, organize, manage, motivate, and
evaluate channel members
22
3. Motivating Channel Members
• Develop a cooperative/collaborative and balanced

relationship with the partner
• Understand the partner’s customers - their needs, wants, and
demands
• Understand the partner’s business - operationally and
financially and what’s really important to them
• Look at the partner’s needs in terms of customer support,
technical support, and training
• Establish clear and agreed upon expectations and goals
• Develop recognition programs focusing on the partner’s
contributions
• Build internal support systems and dedicate resources to the
partner
23
Motivating Channel Members (cont.)
-Motivation can be positive or

negative
• Sanctions may be imposed on
middlemen not performing well
• Chargebacks - financial penalties
assessed for a variety of problems
• Incentives may be offered for reaching
performance goals
4. Evaluating Channel Members
Produces must evaluate intermediaries performance

against such standards as:
• Sales quota attainment
• Average inventory levels
• Customer delivery time
• Treatment of damaged and lost goods
• Cooperation in promotional and training programs.

25
Evaluating Channel Members (cont.)
Should constantly evaluate the

channel:
• What is working?
• What is not working?
• What can be improved?

26
Evaluating Channel Members (cont.)
Risks & Dangers of Distribution Decisions

• Transaction costs both apparent & hidden
• Risks include loss in transit, destruction,

negligence, non-payment and so on.
• So, careful choice & evaluation of each &

every channel partner is a necessity.
27
Distribution Decisions - Major
Considerations...
- Multiple channels
- Control vs. costs
- Intensity of distribution desired
- Involvement in e-commerce
Multiple Channels
• Some products meet the needs of both
industrial and consumer markets.
•J&J Snack Foods sells its pretzels, drinks
and cookies using multiple channels to:
- Supermarkets
- Movie Theaters
- Stadiums
- Schools
- Hospitals
Control vs. Costs
All manufacturers and producers must
weigh the control they want to keep over
the distribution of their products against
the costs and profitability.
- Direct sales force - company employees are
expensive with payroll, benefits, expenses;
may set sales quotas and easily monitor
performance
- Agents - work independently, running their
own businesses; less expensive = less
control; agents sell product lines that make
them more money 3(
Management's Desire for
Control of Distribution
• In general, the shorter the channel structure, the

higher the degree of control, and vice versa.
• The lower the intensity of distribution, the higher

the degree of control, and vice versa.
31
Distribution Intensity
= how widely a product will be distributed;
marketers want to achieve the ideal market
exposure; determining distribution patterns.
Achieve ideal market exposure (make
their product available without over
exposing and losing money)
To achieve market exposure, marketers
must determine distribution
intensity QO
Distribution Intensity
- Exclusive Distribution
- Selective Distribution
- Intensive Distribution
- Integrated Distribution
Intensity of Channel Structure
• Channel intensity: the number of intermediaries at
each level of the marketing channel.
Intensive Selective Exclusive
All Possible Relatively Few Just One

Intermediaries Intermediaries Intermediary
34
Intensive Distribution
• = the use of all suitable outlets to sell a product.
• The objective is complete market coverage and the

ultimate goal is to sell to as many customers as possible,
wherever they choose to shop.
• Ex. Motor oil is sold in quick-lube shops, farm stores,

auto parts retailers, supermarkets, drugstores, hardware
stores, warehouse clubs, and other mass
merchandisers.
35
Selective Distribution
• = a limited number of outlets in a given geographical area
are used to sell the product.
• Very important to select channel members that maintain

the image of the product & are good credit risks,
aggressive marketers & good inventory planners.
• Ex. Armani & Lucky Brand sell their clothing only through
top department stores that appeal to the affluent
customers who buy its merchandise. It does not sell in a
chain megastore or a variety store.
36
Exclusive Distribution
• = protected territories for distribution of a product in
a given geographic area; business maintains tight
control over a product
• Ex. Franchisor legally requires a franchisee to sell

only the franchisor’s products
Integrated Distribution
Manufacturer acts as wholesaler and retailer

for its own products.
• EX. Sherwin-Williams Paint, Merle Norman
• Ex. The Gap or Ann Taylor sells its clothing

in company-owned retail stores.
38
Dual distribution
A manufacturer may sell its products

through multiple outlets at the same time:
-Toll-free phone system

- Company website
- Multiple retailers
39
4. Involvement in E-commerce
• = means by which products are sold to

customers and industrial buyers through the
Internet.
• Consumers have also become accustomed to
buying products online.
• one-stop shopping and substantial savings for
industrial buyers.
• E-marketplaces provide smaller businesses with
the exposure that they could not get elsewhere
40
Channel Design Decisions
• Channel design/structure = form or shape

that a marketing channel takes to perform
the tasks necessary to make products
available to consumers.
• Includes ALL the parties involved

Channel Design Decisions (cont.)
• Analyzing consumer needs
• Setting Channel Objectives
• Identifying Major Alternatives

- Types of intermediaries
• Company sales force
• Manufacturer’s agency
• Industrial distributors
- Number of intermediaries
- Responsibilities of intermediaries
42
3 Dimensions of Channel Design
1 .Length of the channel
2.Intensity of various levels

(Exclusive, Selective, Intensive)
3.Types of intermediaries involved
43
Length of Channel
• Channel length = number of levels in a distribution
channel.
2 level 3 level 4 level 5 level
44
Channel Design (cont.)
• Efficient movement of finished product

from the end of the production line to
customers.
• Coordinate the execution of distribution
plans
• So as to provide good customer service at
acceptable cost.
45
Determinants of Channel Structure
1. The distribution tasks that need to be performed
2. The economics of performing distribution tasks
3. Management's desire for control of distribution
4. Transaction Efficiency (refers to the effort to reduce

the number of transactions between producers
&consumers).
46
REVIEW Channel Structure/Design
1. Setting distribution objectives
□ Meeting customer needs is the ultimate goal
2. Specifying distribution tasks

□ who does what along the supply chain (channel of distribution)
3. Considering alternative channel structures

□ Three dimensions:
• Length/lntensity/Types of intermediaries
4. Choosing optimal channel structures

□ each participant in the marketing channel focuses on performing
those activities at which it is most efficient. This results in much
greater efficiency and higher output.
47
Discuss the relationship between
the product being distributed
and the pattern of distribution it
uses
• Consumer Good
• Consumer Service
• Industrial Good
• Industrial Service
48
customer service facilitates order
processing
• Ensures timely delivery of products
• Effective communication is important
-Order processing
• Correct shipping information
• Correct products
• Handling complaints
• Reducing the probability of complaints
• Nice and friendly people
49
Identify actions that customer service
can take to facilitate order processing
• EX. In retail selling, bag the merchandise with

care. Products such as glassware may require
individual wrapping before bagging.Work quickly
to bag your customer's merchandise and
complete the payment process.
• EX. In business-to-business sales, complete the
paperwork quickly and leave a business card.
50
Call Customer Online
Center Order
1 Accounts
Receivable
Processes
Payment
51
Item Shipped
Use of Technology in Distribution
Some businesses have the capacity to

distribute most or all of their products
through the internet
e-commerce: Products are sold to customers
and industrial buyers through the Internet,
e-marketplace
Satellite tracking = a dispatcher has
current knowledge of a delivery truck’s
location and destination
Use of Technology in Distribution (cont.)
Tracking of package
Bar coding on package
Package scanned at transition points in
distribution chain
Customer uses internet to follow package along
distribution chain; e-mail may be used
Global distribution: in some countries the postal
service is not reliable; package tracking
facilitates global trade
53
Use of Technology in Distribution (cont.)
Problems
Cost of technology
Changing technology = updating equipment
Need for compatible systems within and

between businesses & countries
Ethical issues in Sales and Distribution Management
Common Sales Ethics lssues*Hiring and Firing* No

Gender discrimination*Fire old salespeople who are paid
high wages*Expense Accounts*Keep expense payments
in line with actual experiences*Entertainment*Should be
complementary part of salesperson’s relationship strategy
(entertainment even should be used as a tool for long
term business relationship)
55
Common Sales Ethics lssues*Unfair
Competition»Bribes vs. Gifts for buyers-follow your
company’s policy on gift giving-keep the gift value
low to avoid appearance of undue influence-never
give a gift prior to closing the deal-walk away from
the deal if the customer pushes for something
excessive*Misleading information
The inner guiding moral principles, values, and beliefs
that people use to analyze or interpret a situation to
decide what’s the right and appropriate way to
behave*Trustis necessary to maintain customer
loyaltyLong term relationships require higher ethical
standardS’Federal/Local legislation sentencing
guidelines designed to punish unethical firms
57
being honest in serving customers, clients,
employees, suppliers, distributors & other
stakeholders, (truthful, Offer products of value,
honor promises, etc.)Responsibility-to
balance justly the needs of the buyer with the
interests of the seller, (avoid of false,
misleading and deceptive promotion, etc.)
YOU'RE DONE!!!
59
Thank You
All The Best
60

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Catalog

OLD view of NEW view of

Physical needs: Food, clothing, shelter, safety

Social needs: Belonging, affection

Individual needs: Learning, knowledge, self-expression

Wants + Buying Power = Demand

Marketing is consumer-oriented process.

Market starts and ends with customer

Marketing is the guiding element of business

Marketing is a goal-oriented process

Marketing is a process of exchange

Marketing is a continuous process.

The production concepts

The product concepts

The selling concepts

The marketing concepts

The societal marketing concepts

Standardization and grading

A product has a certain life cycle that includes the

Placement or distribution is a very important part of the product mix

There are many distribution strategies, including:

Promotion is a very important component of marketing as it can boost

• Especia y relevant |lo • Employees

When a business finds people who genuinely believe in the

Additionally, they'll be more open to honest feedback about

Process could be your entire sales

It is the physical evidence of a business' presence

When you think of sports, the names Nike and

The only business function that

Planning, direction and control of

• Management of the personal selling task.

• 3 general underlying objectives:

Gross margin - expenses =net profit.

• Industrial Revolution - 1760

they make more noise and more mistakes,

"QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT

ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL

• With various tasks required to be performed

Concept of organization: Group of individuals

• Line organization: line managers perform

Functional organization: focus is on the

♦♦♦ Clear authority & Responsibility

♦♦♦ Administrative Simplicity

• Drive to initiate an action.

• The intensity of effort in an action

• The persistence of effort over

• "the desire to make an effort to fulfill a need is

• "Two factor theory" of motivation

THE WORD SELL IS DERIVED FROM A Norwegian WORD SELJE

WHICH MEANS TO SERVE

TO SERVE YOUR PROSPECTS YOU MUST UNDERSTAND THEIR

PEOPLE INVARIABLY BUY WHAT THEY WANT, EVEN ABOVE

1. People Skills - Motivate, lead, communicate

The sales strategies are mostly related to salesforce strategies.

• Process: a sequential series of decisions and

1. Prospecting & Qualifying

• Focus on Prospects NEEDS and WANTS.

• Process of identifying potential buyers.

• Adequate knowledge of the product to be sold,

• Competitors knowledge :structure-share-

• Solution value questions questions to help

• At this stage you need to THINK

• Present your product

• Thinking vs. feeling questions.

• Consultative selling method: problem

1. Psychological ( hidden ) - includes pre