UNIT-1 Ques 1. What is sales management? Explain the function of sales manager. ‘Ans. Sales management is the process of planning, organizing, directing, and controlling a company's sales operations. It involves the formulation and implementation of sales strategies, policies, and procedures that enable a company to achieve its sales objectives. Sales management covers a wide range of activities, including market research, customer relationship management, sales forecasting, budgeting, pricing, distribution, and sales team management. The sales manager is responsible for overseeing the sales activities of a company and ensuring that the sales team achieves its goals. The key functions of a sales manager include: Planning: Sales managers are responsible for developing sales strategies and plans that align with the company's overall goals and objectives. This involves analyzing market trends, identifying customer needs and preferences, and setting sales targets. Organizing: Sales managers are responsible for organizing the sales team, assigning territories, and allocating resources to maximize sales performance. Directing: Sales managers are responsible for providing leadership and direction to the sales team. This involves setting sales targets, providing training and coaching, and motivating the team to achieve their goals. Controlling: Sales managers are responsible for monitoring sales performance and taking corrective action when necessary. This involves analyzing sales data, identifying trends and issues, and making adjustments to the sales strategy as needed. Evaluating: Sales managers are responsible for evaluating the performance of the sales team and individual sales representatives. This involves setting performance metrics, conducting performance reviews, and making decisions about promotions and other incentives. Overall, the role of a sales manager is to ensure that the sales team is performing at its best and achieving its goals, while also providing strategic guidance and support to the company’s sales operations. QUES 2. How important is it to motivate the sales force? Discuss various strategies used to motivate sale farce? Ans. Motivating the sales force i: ntial for the success of any sales organization. A motivated sales force is more productive, focused, andcommitted to achieving the company's goals. Motivation can come in various forms, including financial rewards, recognition, career advancement opportunities, and a positive work environment. Here are some strategies that companies use to motivate their sales force: Performance-based incentives: Companies often offer sales representatives bonuses, commissions, or other financial incentives based on their sales performance. These incentives can be a powerful motivator, as they provide tangible rewards for achieving sales targets. Recognition and rewards: Sales representatives also respond well to non- financial rewards, such as public recognition, awards, or a personal thank-you from senior leadership. These types of rewards can boost morale, increase engagement, and reinforce positive behaviors. Career advancement opportunities: Providing opportunities for career growth and development is another way to motivate sales representatives. This could include training and development programs, mentoring, or the opportunity to move into a leadership role. Positive work environment: Creating a positive work environment is crucial for motivating sales representatives. This could include offering flexible work arrangements, providing the necessary tools and resources to do their job, and fostering a supportive culture that recognizes and values their contributions. Team-building activities: Team-building activities, such as retreats, workshops, or social events, can help to build camaraderie among sales representatives and foster a sense of team spirit. Clear goals and expectations: Providing clear goals and expectations for sales representatives can help to motivate them to achieve their targets. Regular feedback and coaching can also help to keep them on track and focused on their goals. In conclusion, motivating the sales force is crucial for the success of any sales organization. Companies can use various strategies to motivate their sales representatives, including performance-based incentives, recognition and rewards, career advancement opportunities, creating a positive work environment, team-building activities, and setting clear goals and expectations. By implementing these strategies, companies can create a motivated, engaged, and productive sales force that is committed to achieving the company’s goals. Ques 3. What is sales forecasting? Discuss the qualitative techniques of sales forecasting?Ans, Sales forecasting is the process of estimating future sales based on historical sales data and other relevant factors. It is a critical aspect of sales management, as it allows companies to plan and allocate resources effectively, make informed business decisions, and manage their inventory levels. There are two main types of sales forecasting: qualitative and quantitative. Qualitative techniques of sales forecasting are methods that rely on subjective judgments and expert opinions to predict future sales. Here are some of the most common qualitative techniques of sales forecasting: Expert opinion: This technique involves gathering the opinions of sales managers, marketing executives, or other experts in the industry. Experts provide their subjective judgments on market trends, customer behaviour, and other relevant factors that can impact sales. Delphi method: This is a structured process that involves soliciting opinions from a group of experts through a series of questionnaires. The experts are anonymous, and their responses are aggregated and analysed to generate a consensus forecast. Sales force composite: This technique involves gathering input from the sales team, who are closest to the customers and have the most direct contact with them. The sales team provides their estimates of future sales based on their knowledge of the market and customer behaviour. Market research: This technique involves conducting surveys, focus groups, or other forms of market research to gather information about customer preferences, trends, and behaviour. The data collected is then used to make forecasts about future sales, Historical analogy: This technique involves using past sales data to predict future sales. The historical data is analysed to identify trends, seasonal patterns, and other factors that can impact sales. Overall, qualitative techniques of sales forecasting rely on subjective judgments and expert opinions to make predictions about future sales. While these methods can be useful, they are often less precise than quantitative techniques and may require frequent updates to reflect changes in the market or customer behaviour. Ques 4. Explain the various type of selling skills? Ans. Selling skills are the abilities and knowledge required to effectively persuade and influence customers to make a purchase. There are several types of selling skills that sales representatives need to master to be successful. Here are some of the most important types of selling skills:Communication skills: Communication skills are essential for sales representatives to effectively convey information about their products or services to customers. This includes verbal communication skills, such as active listening, asking questions, and responding to objections, as well as written communication skills, such as email and proposal writing. Relationship-building skills: Building and maintaining relationships with customers is crucial for sales success. Relationship-building skills include the ability to establish rapport, develop trust, and establish a long-term relationship with the customer. Presentation skills: Sales representatives need to be able to effectively present their products or services to potential customers. This includes the ability to create engaging and persuasive presentations, use visual aids effectively, and adapt the presentation to the customer's needs. Product knowledge: Sales representatives need to have a deep understanding of their products or services, including their features, benefits, and competitive advantages. This knowledge helps sales representatives to answer customer questions and objections and make persuasive arguments for their products or services. Closing skills: Closing skills are the ability to ask for the sale and secure the deal. Sales representatives need to know how to identify buying signals, ask for the sale, and handle objections that may arise during the closing process. Negotiation skills: Negotiation skills are essential for sales representatives to be able to effectively negotiate with customers to reach a mutually beneficial agreement. This includes the ability to identify the customer's needs and interests, develop creative solutions to meet those needs, and handle objections or conflicts that may arise during the negotiation process. Overall, mastering these selling skills is essential for sales representatives to succeed in a competitive marketplace. By developing strong communication, relationship-building, presentation, product knowledge, closing, and negotiation skills, sales representatives can build trust, establish rapport, and close more deals. Ques 5. Briefly explain any three structures of sales organisation? Ans. Sales organization structure refers to how a company organizes its sales team to achieve its sales objectives. There are several different sales organization structures that a company can use, depending on its goals, size, and market. Here are three common sales organization structures:Geographic structure: A geographic sales organization structure divides the sales team based on regions or territories. This structure is often used by companies with a wide geographic footprint or a large customer base. Sales representatives are assigned to specific regions or territories and are responsible for all sales activities within that area. This structure allows sales representatives to focus on the unique needs and characteristics of their assigned region or territory. Product-based structure: A product-based sales organization structure divides the sales team based on the products or services they sell. This structure is often used by companies that offer a wide range of products or services or have a diverse customer base. Sales representatives specialize in selling specific products or services and are responsible for all sales activities related to those products or services. This structure allows sales representatives to develop deep expertise in their products or services and provide more specialized support to customers. Customer-based structure: A customer-based sales organization structure divides the sales team based on the types of customers they serve. This structure is often used by companies with a diverse customer base or that operate in multiple industries. Sales representatives specialize in selling to specific types of customers, such as small businesses, large corporations, or government agencies. This structure allows sales representatives to develop deep expertise in the needs and characteristics of their assigned customer group and provide more specialized support to customers. Overall, the structure of a sales organization will depend on a company’s goals, market, and customer base. By selecting the appropriate sales organization structure, companies can align their sales team to their strategic objectives, maximize sales effectiveness, and provide superior customer service. UNIT -2 Ques1. What is sales territory? How sales territories are decided? Explain the importance of sales territory management. Ans, Sales territory refers to a geographic area assigned to a salesperson, team, or company, where they are responsible for selling the products or services of the company. A sales territory's main objective is to optimize a sales team's sales performance by ensuring that they are targeting the right customers and prospects with the right products or services in a specific geographic area. The process of deciding sales territories involves analyzing customer data, demographics, and psychographics to identify potential customers and areaswith the highest sales potential. Sales territories can be based on different criteria such as geography, industry, market segment, and product line. Factors such as the size of the territory, the number of potential customers, and the competitive landscape are also taken into consideration when deciding the sales territory. Effective sales territory management is critical for the success of any sales organization. It helps in maximizing sales productivity, reducing travel costs, and improving customer satisfaction. Some of the benefits of sales territory management include: Increased sales performance: Sales territory management ensures that sales reps are focused on the most profitable customers and prospects in their assigned territory, leading to increased sales productivity and revenue. Improved customer satisfaction: Sales reps who are familiar with their territory and customer needs are more likely to provide personalized and effective solutions, leading to higher customer satisfaction levels. Efficient resource allocation: With a well-defined sales territory, sales managers can allocate resources effectively, such as time, money, and personnel to maximize sales performance. Better sales forecasting: By analyzing sales data from a particular territory, sales managers can forecast future sales and adjust their strategy accordingly. Overall, effective sales territory management is crucial for the success of any sales organization. It helps in identifying potential customers, improving customer satisfaction, increasing sales productivity, and maximizing revenue. Ques2. Discuss in brief the methods of sales forecasting. Ans. Sales forecasting is the process of estimating future sales performance based on historical sales data, market trends, and other relevant factors. There are several methods of sales forecasting that can be used by businesses, including: Historical Sales Data Method: This method uses past sales data to predict future sales performance. It involves analyzing trends and patterns in sales data, considering factors such as seasonality, customer behaviour, and market trends. This method is often used for short-term forecasting. Market Research Method: This method involves conducting surveys, focus groups, and other market research techniques to gather data on customer behaviour, preferences, and trends. This data is then used to predict future sales performance. This method is often used for long-term forecasting. Expert Opinion Method: This method involves seeking input and opinions from sales managers, industry experts, and other knowledgeable individuals to predict future sales performance. This method is often used in situations where there is limited data available, or when market conditions are uncertain. Regression Analysis Method: This method uses statistical techniques to analyse the relationship between sales and other variables such as marketing spend,pricing, and economic indicators. The results are then used to predict future sales performance. Time Series Analysis Method: This method involves analysing trends and patterns in sales data over time to predict future sales performance. It uses statistical techniques such as moving averages, exponential smoothing, and trend analysis to forecast sales. Overall, the choice of sales forecasting method will depend on the nature of the business, the availability of data, and the time horizon of the forecast. A combination of different methods may also be used to provide a more accurate forecast. Ques3. What do you mean by sales quota? Explain the different types of quotas. Ans, A sales quota is a specific sales target or objective set for a salesperson, team, or company to achieve within a specified period of time. It is a key performance indicator (KPI) used to measure sales performance and can be used as a motivational tool to drive sales productivity. There are different types of sales quotas, including: Volume Quota: This type of quota sets a specific sales target in terms of units sold, revenue generated, or other volume-based metrics. For example, a salesperson may have a volume quota of selling 100 units per month. Profit Quota: This type of quota sets a specific sales target in terms of profit generated. For example, a salesperson may have a profit quota of generating $10,000 in profit per month. Activity Quota: This type of quota sets a specific target for sales activities, such as the number of sales calls made, the number of emails sent, or the number of demos conducted. For example, a salesperson may have an activity quota of making 50 sales calls per day. Combination Quota: This type of quota combines different types of quotas, such as volume and profit quotas, to provide a more comprehensive target for sales performance. Territory Quota: This type of quota sets a specific sales target for a particular sales territory or region. For example, a sales team may have a territory quota of generating $100,000 in revenue from a particular region. Sales quotas can be set based on various factors, such as the salesperson's experience, product line, customer segment, and market conditions. It is important to set realistic and achievable sales quotas that motivate the sales team while still being challenging enough to drive sales growth. Effective sales quota management involves monitoring sales performance, providing coaching and support to sales teams, and adjusting quotas as needed to reflect changing market conditions or business goals.Ques 4. Discuss the various factors affecting the allocation of sales territory. Ans, Sales territory allocation is the process of assigning specific geographic areas or customer segments to sales teams or individual salespeople. The allocation of sales territories can have a significant impact on sales productivity and revenue growth. Several factors need to be considered when allocating sales territories, including: Geographic Location: One of the most important factors in sales territory allocation is the geographic location of customers. The sales team should be assigned to a specific geographic area based on the location of their target customers. Customer Needs: Customer needs and preferences can vary by region or market segment. Therefore, sales territories should be allocated based on the specific needs and preferences of customers in that region or market segment. Sales Potential: Sales potential refers to the amount of revenue that can be generated in a particular geographic area or market segment. Sales territories should be allocated based on the potential for revenue growth in that area. Competitive Landscape: The competitive landscape in a particular geographic area or market segment can have a significant impact on sales performance. Sales territories should be allocated to sales teams based on their ability to compete effectively in that market. Salesperson Skills and Experience: The skills and experience of salespeople can vary significantly, and territories should be allocated based on the salesperson's strengths and weaknesses. Product Line: The allocation of sales territories should consider the specific product line that the sales team is responsible for selling. For example, if a salesperson is responsible for selling a particular product line, they should be assigned to a territory that has a high potential for sales of that product. Sales Cycle: The sales cycle for a particular product or service can vary based on the geographic location or market segment. Territories should be allocated based on the sales cycle and the amount of time required to close sales in that region or market segment. In conclusion, the allocation of sales territories should be based on a careful analysis of the above factors to ensure that sales teams are optimally positioned to achieve their sales targets and maximize revenue growth. Ques5. “Quotas” can act as a ‘motivator’ as well as ‘DE motivator’. Comment. Ans, Sales quotas can indeed act as a motivator or a de-motivator, depending on how they are designed and managed. On the one hand, quotas can be a powerful motivator for salespeople by providing a clear target to strive towards and creating a sense of urgency and accountability. When salespeople achieve their quotas, they feel a sense of accomplishment and recognition, which can increase their motivation and commitment to the job.On the other hand, quotas can also act as a de-motivator if they are set too high or are unrealistic. When salespeople consistently fail to meet their quotas, they may feel discouraged and demoralized, leading to decreased motivation and poor performance. Additionally, if quotas are perceived as unfair or arbitrary, they can create resentment and resistance among salespeople. Moreover, if quotas are not based on the salesperson's skills, experience, or market potential, it can create an uneven playing field that can be demotivating. Quotas that are too rigid can also hinder salespeople's creativity and ability to innovate, as they may focus solely on meeting the quota rather than exploring new ideas and opportunities. Therefore, it is essential to design quotas that are challenging but achievable, fair and transparent, and based on relevant factors such as market potential and salesperson's skills and experience. Moreover, regular feedback and coaching can help salespeople stay motivated and engaged, even when they face challenges in meeting their quotas. Effective sales quota management involves monitoring sales performance, providing support and training, and adjusting quotas as needed to reflect changing market conditions or business goals. UNIT 3 QI. What is Control Process and what are the elements and steps involved in Control Process? Ans; Controlling is the process of assessing and modifying performance to ensure that the company's objectives and plans for achieving them are met. Control is the final role of management. The controlling function will become obsolete if other management functions are properly carried out. If there are any problems in the planning or actual performance, control will be required. Controlling ensures that the proper actions are taken at the appropriate times. Control can be thought of as a process through which management ensures that the actual operations follow the plans. The company's managers check the progress and compare it to the intended system through managing. If the planned and real processes do not follow the same path, the necessary corrective action can be implemented. The control process is the careful collection of information about a system, process, person, or group of people which is required to make necessary decisions about each of the departments in the process. Managers in the company set up the control systems which consist of the four prior key steps which we will discuss in the later section.The performance of the management control function is important for the success of an organization. Management is required to execute a series of steps to ensure that the plans are carried out accordingly. The steps that are executed in the control process can be followed for almost any application, also for improving the product quality, reduction of wastage, and increasing sales. What is Controlling? The Controlling process assures the management that the performance rate does not deviate from its standards. The controlling Process consists of five steps: 1. Setting the standards. 2. Measuring the performance. 3. Comparing the performance to the set standards 4. Determining the reasons for any such deviations which is required to be paid heed to. 5. Take corrective action as required. Correction can be made in regards to changing the standards by setting them higher or lower or identifying new or additional standards in the department. Elements and Steps of Control Process: 1 Establishing Performance Measuring Standards and Methods Standards are, by definition, nothing more than performance criteria. They are the predetermined moments in a planning program where performance is measured so that managers may receive indications about how things are doing and so avoid having to monitor every stage of the plan's execution. This simply means setting up the target which needs to be achieved to meet the organizational goals. These standards set the criteria for checking performance. The control standards are required in this case. Standard elements are especially useful for control since they help develop properly defined, measurable objectives. 2. Measuring the PerformancePerformance against standards should be measured on a forward-looking basis so that deviations can be discovered and avoided before they happen. Appraising actual or predicted performance is relatively simple if criteria are properly drawn and methods for determining exactly what subordinates are doing are available. The actual performance of the employee is then measured against the set standards. With the increase in levels of management, the measurement of performance becomes quite difficult. 3. Determining if the Performance is up to par with the Standard In the control process, determining if performance meets the standard is a simple but crucial step. It entails comparing the measured results to previously established norms. Managers may assume that "all is under control" if performance meets the benchmark. Comparing the degree of difference between the actual performance and the set standard. 4 Developing and Implementing a Corrective Action Plan This phase becomes essential if performance falls short of expectations and the analysis reveals that corrective action is required. The remedial measure could include a change in one or more of the organization's functions. This is being initiated by the manager who corrects any sorts of defects in the actual performance. Q2. What is control process? what are the types, advantages, and features of Control Process? Ans: Controlling is the process of assessing and modifying performance to ensure that the company's objectives and plans for achieving them are met. Control is the final role of management. The controlling function will become obsolete if other management functions are properly carried out. If there are any problems in the planning or actual performance, control will be required.Controlling ensures that the proper actions are taken at the appropriate times. Control can be thought of as a process through which management ensures that the actual operations follow the plans. The company's managers check the progress and compare it to the intended system through managing. If the planned and real processes do not follow the same path, the necessary corrective action can be implemented. The control process is the careful collection of information about a system, process, person, or group of people which is required to make necessary decisions about each of the departments in the process. Managers in the company set up the control systems which consist of the four prior key steps which we will discuss in the later section. Types of Control: There are five different types of control: 1. Feedback Control: This process involves collecting the information on which the task is being finished, then assessing that information and improvising the same tasks in the future. 1. Concurrent control (also known as real-time control): It investigates and corrects any problems before any losses arising. An example is a control chart. This is the real-time control, which checks any problem and examines the same to act before any loss has been caused. 2. Predictive/ feedforward control: This type of control assists in the early detection of problems. As a result, proactive efforts can be done to avoid a situation like this in the future. Predictive control foresees the problem ahead of its occurrence. 3. Behavioural control: This is a direct assessment of managerial and decision-making rather than the consequences of those decisions. Behavioural control, for example, sets incentives for a wide range of criteria in a balanced scorecard.4. Financial and non-financial controls: Financial controls refer to how a firm manages its costs and spending to stay within budgetary limits. Non-financial controls refer to how a company manages its costs and expenses to stay within budgetary constraints. Features of Controlling: The features of controlling are discussed point-wise to give a clear insight into the concept. The features are as follows: + Controlling helps in achieving organizational goals. + The process facilitates the optimum use of resources. + Controlling judges, and the accuracy of the standard. + The process also sets discipline and order. + The controlling process motivates the employees and boosts the employee morale, eventually, they strive and work hard in the organization. + Controlling ensures future planning by revising the set standards. + This improves the overall performance of an organization. + Controlling minimizes the commission of errors. Advantages of Controlling: The organization inculcates the process of controlling due to its undying advantages. The advantages of control are as follows: + The Controlling Process saves time and energy. + This allows the managers to concentrate on important tasks, and allows better utilization of the managerial resource. + Assures timely and corrective action to be taken by the manager. Q3. What are Sale Expenses? How do you manage sale Expenses? What are the importance of selling expenses? Ans: Selling expenses are the costs associated with distributing, marketing, and selling a product or service. They are one of three kinds of expense thatmake up a company’s operating expenses. The others are administration and general expenses. Selling expenses can include: + Distribution costs such as logistics, shipping, and insurance costs + Marketing costs such as advertising, website maintenance and spending on social media + Selling costs such as wages, commissions, and out-of-pocket expenses Selling expenses are categorized as indirect expenses on a company’s income statement because they do not contribute directly to the making of a product or delivery of a service. Some components can change as sales volumes increase or decrease, while others remain stable. Hence, selling expenses are semi- variable costs (as opposed to fixed or variable costs). 10 Ways to Reduce Sales Costs: + Mine your existing customer base first. “This is absolutely essential,” says Jill Konrath, nationally recognized sales training expert and author of Selling to Big Companies (sellingtobigcompanies.com). She says business owners frequently put too much emphasis on acquiring new accounts. “Your strongest — and least costly — position is to go back to the customers you already have, and bring them ideas that will help them reduce costs, increase their sales, and be more effective by doing more business with you.” + Make sure your sales team is following up on leads, According to Go-toMarket Strategies (gtms-inc.com), a sales and marketing resource center, recent studies show that most leads or hot prospects go cold in the first 24 hours. The center polled its clients and found that 25% of sales leads had never been pursued, with many more than that only receiving a single call. While there are many options on how to track leads and sales processes, make sure you have something in place. + Calculate how much to spend on acquiring customers. According to Jack Schmid and Steve Trollinger in Chief Marketer, setting a budget for sales and customer acquisition starts with determining the current actual cost to acquire a customer and calculating the average customer lifetime value. (Lifetime value equals frequency of purchase times duration of loyalty times gross profit.) Knowing the average cost to acquire a customer is crucial to setting an acquisition budget that ensures profitability and a strong ROI on sales expenditures.Many . Invest in sales tools, not more travel. Rather than sending salespeople out to prospect from ground zero, invest in tools like Inside View, a Trigger Event notification service, to reduce overall expenses and avoid inefficient use of salespeople. To reduce cost of sale and improve ROI, encourage salespeople to spend more time researching prospects and customers. + Stop creating brochures. “All marketing today should truly be about education, never about your product or service,” Konrath says. “You can save money by not spending it on ridiculous brochures that get tossed away.” Instead, business owners should focus on providing educational content. + Do your homework before setting sales and marketing budgets. companies fail to gather data needed to accurately set sales and marketing budgets, often relying on a single cost dimension or worse, guesswork. These broad-based budgets involve more than merely cost of sales or a percentage of company revenue. Go-to-Market Strategies recommends using a three-prong approach to setting sales budgets that incorporates industry standards, marketing planning (based on the company’s historical data including past and forecasted ROT as well as industry norms), and customer lifetime value. + Make virtual meetings the first step in the sales process. Customers don’t have time to see salespeople because time is their most precious commodity these days. “It’s taking sellers eight to 12 contacts to set up meetings with purchasing decision makers in many cases,” Konrath warns. She advises shifting a portion of the sales budget from travel to virtual meetings. “What I’m seeing right now is a lot of decision makers preferring to have a 10 or 15 minute conversation or pre-meeting first to see if it’s worthwhile to talk in more depth. Virtual meetings and webinars are extraordinarily effective today.” + Make sure your sales team isn’t arbitrarily writing off prospects. According to its Voice of the Customer research, Indianapolis-based marketing firm MillerPierce (millerpierce.com) reports that 30% of non-purchasers — leads that went from hot to cold — will be ready to buy in six to nine months. Protect your lead generation investment by continually communicating with these leads. It’s less expensive than chasing new leads and will ensure your company will be top-ofmind when they’re ready to buy. + Become your industry’s expert. Provide prospects and customers with information about how to make decisions on product and service purchases like yours, how to get the best value out of using your productand service, and how to solve business issues that your product or service addresses. Be the company that teaches how to run business better by providing white papers, webinars, podcasts, interviews, and articles. + Update sales training to 21" century practices. One of the biggest obstacles companies face is that salespeople and small business owners still read the old masters who sold in the 1970s, when the marketplace and sales climate were entirely different. “They’re actually getting bad advice that boomerangs against them and makes it harder to them to get sales,” says Konrath. Budgeting for training to make sure your sales team’s skills are up-to-date is a worthwhile investment. The following are the importance of Selling Expens Correetly assess its tax burden: Tracking selling expenses is important for tax compliance and for ensuring the business is correctly calculating deductions to reduce its tax burden. Control spending: While the general and administrative bucket is often where companies start cost reduction measures, the items in the selling expense bucket are some of the biggest opportunities to better control costs. For instance, travel expenses are a selling expense that represents a cost containment opportunity. Accenture research shows that travel expenses comprise 10% to 12% of a business’ annual budget and represent about 1% of its revenue. Start to develop KPIs: Accurate selling costs help the business work toward ition Cost (CAC). That is calculated by dividing the total cost of getting customers by the total number of customers acquired for a given time period. getting key sales metrics such as the Customer Acqui Q4. What is evaluation sales performance? How do you monitor and evaluate sales performance? Ans: Sales evaluation involves an analysis of the performance of your sales personnel. It can also analyse your pricing's or marketing's impact on sales. Using a sales analysis, your sales team members learn about their strengths and weaknesses so they know which areas to improve. If you conduct proper salesevaluations regularly, you may improve the efficiency of your sales efforts and drive up your profits. The following are the ways to monitor and evaluate sales performance: 1. Sales Productivity Metrics How much time do your reps spend selling? Sales productivity is key for leadership to understand because time spent selling helps measure sales performance in terms of efficiency Average-performing sales reps spend only about 35 percent of their time in direct selling, and 65 percent dealing with non-selling activities. These time sinks include non-sales calls and internal conversations/meetings, or even networking. All of these activities seem harmless on the surface, but like all things, they add up. 2. Lead Response Time Time is valuable when you're looking at how long it takes reps to follow up on leads. The longer your lead response time, the lower your performance is. Here's a breakdown on how time impacts the success of lead conversion: + Inside Sales notes that reps experience a “21x uplift in qualifications” if they reach out within five minutes compared to 30 minutes. + Hubspot says those who perform outreach within five minutes are “100 times more likely to qualify the prospect.” If you contact with the lead within receiving it, you might be seven times more likely to qualify the lead than if you were to wait another hour. Don’t wait a full 24 hours or else you might be 60 times less likely to qualify the lead. 3. Opportunity Win Rate Win rate is the measurement of how many opportunities convert into closed- won deals. If the win rate is low or in decline, it begs the next question of “why?” Was it lost to a competitor? Did the prospect opt for an internal solution? Or did they decide not to pursue any solution at all?It’s not enough to know a deal was lost. You want to be able to track where it fell out of the funnel. If it fell out of the funnel early, then it could be a symptom of poor rapport building or lack of effectiveness with demo presentations. Or, it could mean you need to improve lead qualifications to ensure the right opportunities are entering the pipeline. 4, Average Deal Size What is the average sales price or profitability from your closed deals? If you're spotting deals coming in below average, it may be a sign of reps opting for smaller, easier wins, or that they are even discounting normal or average deals just to make the sale. Deals entering the pipeline above average may indicate a need to revaluate the opportunity. Meaning, it's important to ensure reps are spending their time focused on profitable deals that are most likely to close. Q5. Why is ethics important in sales? What are the ethical issues in Sales management? Ans: Selling ethically means serving your best-fit prospects, which will help you close better deals and do so faster. In the long run, an ethical approach strengthens your marketing because you can turn your best customers into your marketing engine. When you sell in an ethical manner, you position yourself as a trustworthy, reliable brand. As a result, this will lift up all of your marketing efforts, from specific campaigns to your reputation in the industry. You also need to consider laws of selling in your industry and codes of conduct you need to abide by. If you're in industries such as real estate, financial services and telecommunications, make sure you know their legal side. The following are the ethical issues in Sales Management: 1. Selling a Product as Opposed to Selling a Solution Products aren’t just products; they’re also solutions. Concentrate on the solution rather than the sale. Your products are someone else’s solution, and it’s up to you to figure out who that someone is.Assume you heavily advertise and push your products on people who don’t need them or don’t have the problem your product solves. In that case, you risk tarnishing your reputation among dissatisfied consumers and customers. Maintain a customer-focused attitude and avoid rushing to make a sale. 2. Telling the Truth, but Not the Entire Fact Half-truths remain half-lies. And false promises can come back to haunt you. Do not manipulate your market with half-truths to make a sale. Consumers today are astute. If your product isn’t a good fit for a market, it’s not a good fit. Avoid changing your messaging and copy to better meet the needs of your target audience without improving your product. If you want to be ethical, your product must always match your message. This should take precedence over sales. 3. Deceiving One’s Organization People employed in sales and marketing typically work in the field without constant supervision. Because no supervisor can see or hear everything, salespeople and marketers may get away with unethical behavior even inside. The question is whether the salesperson or marketer is stealing time and effort from the company. Some assert that a salesperson’s pay is a straight commission (paid by the sale), which means they are not stealing from the company. Some argue that the company still loses potential sales even in that case. 4, Commitment Issues Whether your customer is experiencing a delivery delay, a quality issue, or a product change, anticipating the problem and communicating to your customers can help them find an alternative solution and maintain their trust. As a successful salesperson, you must maintain a solution-oriented mindset throughout the sales process. Irrespective of what caused the problem, honesty, transparency, and integrity should remain your highest priorities. 5, Accountability If a problem arises and you are to blame, accept responsibility as soon as possible and truthfully. While it is tempting to avoid responsibility to save face, accepting responsibility for your actions and offering a solution to the problem is a more ethical approach.If a customer-facing issue arises and you fail to accept responsibility, having your customer learn the truth from a third party may harm your relationship and jeopardize future sales. Q6. What is Sales Process? Ans: 1, Prospecting The first step in the sales process is prospecting. In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford what you offer. Evaluating whether the customers need your product or service and can afford it is known as qualifying. Keep in mind that, in modern sales, it's not enough to find one prospect at a company: There are an average of 6.8 customer stakeholders involved in a typical purchase, so you'll want to practice multi-threading, or connecting with multiple decision-makers on the purchasing side. Account maps are an effective way of identifying these buyers. 2. Preparation The next step is preparing for initial contact with a potential customer, researching the market and collecting all relevant information regarding your product or service. Develop your sales presentation and tailor it to your potential client’s particular needs. Preparation is key to setting you up for success. The better you understand your prospect and their needs, the better you can address their objections and set yourself apart from the competition. 3. Approach Next, make first contact with your client. This is called the approach. Sometimes this is a face-to-face meeting, sometimes it’s over the phone. There are three common approach methods. «Premium approach: Presenting your potential client with a gift at the beginning of your interaction + Question approach: Asking a question to get the prospect interested+Product approach: Giving the prospect a sample or a free trial to review and evaluate your service 4. Presentation In the presentation phase, you actively demonstrate how your product or service meets the needs of your potential customer. The word presentation implies using PowerPoint and giving a salesy spiel, but it doesn’t always have to be that way—you should actively listen to your customer’s needs and then act and respond accordingly. 5, Handling objections Perhaps the most underrated step of the sales process is handling objections. This is where you listen to your prospect’s concerns and address them. It’s also where many unsuccessful salespeople drop out of the process—44% of salespeople abandoning pursuit after one rejection, 22% after two rejections, 14% after three, and 12% after four, even though 80% of sales require at least five follow-ups to convert. Successfully handling objections and alleviating concerns separates good salespeople from bad and great from good. 6. Closing In the closing stage, you get the decision from the client to move forward. Depending on your business, you might try one of these three closing techniques. + Alternative choice close: Assuming the sale and offering the prospect a choice, where both options close the sale—for example, “Will you be paying the whole fee up front or in installments?” or “Will that be cash or charge?” Extra inducement close: Offering something extra to get the prospect to close, such as a free month of service or a discount + Standing room only close: Creating urgency by expressing that time is of the essence—for example, “The price will be going up after this month” or “We only have six spots left” 7. Follow-upOnce you have closed the sale, your job is not done. The follow-up stage keeps you in contact with customers you have closed, not only for potential repeat business but for referrals as well. And since retaining current customers is six to seven times less costly than acquiring new ones, maintaining relationships is key. UNIT-4 Question 1. Explain various type of channels of distribution? Answer. Channels of distribution, also known as distribution channels, are the various routes through which products move from the manufacturer or supplier to the end consumer. These channels can be classified into several types based on the number of intermediaries involved in the process, the level of control the manufacturer has over the distribution, and the types of intermediaries used. Here are some of the most common types of channels of distribution: Direct distribution: In this type of channel, the manufacturer sells products directly to the end consumer without the involvement of any intermediaries. This method is commonly used in industries such as online retail, where the manufacturer can sell products directly to the consumer through their website or online store. Indirect distribution: In this type of channel, the manufacturer uses intermediaries such as wholesalers, retailers, and distributors to get the products to the end consumer. This method is commonly used in industries such as food. and beverage, where products are sold through a network of distributors and retailers. Dual distribution: In this type of channel, the manufacturer sells products both directly to the end consumer and through intermediaries. This method is commonly used in industries such as consumer electronics, where products can be sold through both company-owned stores and third-party retailers. Intensive distribution: In this type of channel, the manufacturer uses as many intermediaries as possible to distribute the product to as many outlets as possible. This method is commonly used in industries such as fast-moving consumer goods, where products need to be widely available to the end consumer. Selective distribution: In this type of channel, the manufacturer only uses a limited number of intermediaries to distribute the product. This method iscommonly used in industries such as luxury goods, where the manufacturer wants to maintain a certain level of exclusivity. Exclusive distribution: In this type of channel, the manufacturer only uses one intermediary to distribute the product. This method is commonly used in industries such as high-end fashion, where the manufacturer wants to maintain complete control over the distribution of their products. Overall, the choice of channel of distribution depends on various factors such as the nature of the product, the target market, the level of control the manufacturer wants to maintain, and the resources available to the manufacturer. Question 2, What are the factor affecting effective management of distribution channel? Answer. Effective management of distribution channels is crucial for the success of any business. However, managing distribution channels can be challenging due to various factors that can affect their effectiveness. Here are some of the factors that can impact the management of distribution channels: Channel complexity: The more complex the distribution channel is, the more difficult it is to manage. A complex channel may involve multiple intermediaries, different locations, and various types of products. Channel conflicts: Channel conflicts can arise when there is a clash of interests between different members of the distribution channel. This can happen when intermediaries compete with each other or when they feel that they are not getting a fair share of the profits. Communication: Effective communication is essential for managing distribution channels. Miscommunication or a lack of communication can lead to delays, misunderstanding, and other problems. Logistics: Logistics is a critical component of distribution channel management. It involves managing the movement of products from the manufacturer to the end consumer. Problems with logistics can lead to delays, increased costs, and other issues. Technology: Technology can play a crucial role in managing distribution channels. The use of technology can help streamline processes, improve communication, and reduce costs. However, not all members of the distribution channel may have the same level of technology, which can lead to issues.Competition: Competition can also impact the management of distribution channels. When there is intense competition in the market, intermediaries may try to undercut each other, leading to conflicts and other issues. Regulations: Regulations can also affect the management of distribution channels. Different countries and regions may have different regulations regarding the distribution of products, which can impact the choice of distribution channels and the way they are managed. Overall, effective management of distribution channels requires careful planning, coordination, and communication among all members of the distribution channel. It also requires an understanding of the factors that can impact the effectiveness of the channel and the ability to adapt to changes in the market and the environment. Question 3. What is the channel design decision? And How the channel decision made in organization? Answer. Channel design decisions refer to the process of selecting the most appropriate distribution channel to reach the target market. This involves identifying the types of intermediaries to be used, the number of intermediaries in the channel, and the level of control the manufacturer wants to have over the distribution of their products. The following are the steps involved in making channel decisions in an organization: Define the target market: The first step in making channel decisions is to identify the target market for the product. This involves identifying the characteristics of the target market, such as age, gender, income level, geographic location, and buying behavior. Identify the channel options: Once the target market has been identified, the next step is to identify the different channel options that are available. This involves considering factors such as the types of intermediaries available, the level of control the manufacturer wants to have, and the cost of using different channels. Evaluate the channel options: The next step is to evaluate the different channel options based on various factors such as the cost, the reach, the level of control, and the level of competition in the market.Select the most appropriate channel: After evaluating the different channel options, the manufacturer can then select the most appropriate channel to reach the target market. This involves considering factors such as the cost, the level of control, and the effectiveness of the channel in reaching the target market. Implement the channel: Once the channel has been selected, the manufacturer can then implement the channel by working with the intermediaries, setting up the necessary logistics and processes, and monitoring the performance of the channel Overall, the process of making channel decisions requires careful analysis of the target market and the available options, as well as a clear understanding of the goals and objectives of the organization. It also requires flexibility and the ability to adapt to changes in the market and the environment. Question 4. Write a detailed note on International Sales Management? Answer. International sales management is the process of managing sales activities in multiple countries or regions for a company. It involves developing strategies, coordinating resources, and overseeing operations to generate revenue and achieve growth in foreign markets. Effective international sales management requires a deep understanding of local markets, cultures, and business practices, as well as a strong grasp of global economic trends and trade regulations. The key components of international sales management include market analysi sales planning, product positioning, distribution management, and customer relationship management. Market analysis involves researching and analyzing the needs, preferences, and behaviors of target customers in each market. Sales planning involves setting objectives, allocating resources, and developing sales strategies to meet sales targets. Product positioning involves adapting products and services to meet the unique needs and preferences of customers in different markets. Distribution management involves managing the logistics and supply chain to ensure timely delivery of products and services to customers in different regions. Customer relationship management involves building and maintaining relationships with customers, identifying their needs, and providing high-quality customer service. Effective international sales management also requires a keen understanding of global economic trends and trade regulations. For example, managers must be aware of currency fluctuations, trade agreements, and import/export regulations that could impact their business.In addition, effective international sales management also involves managing a diverse team of sales professionals from different cultural backgrounds. Managers must be able to effectively communicate, collaborate, and motivate their teams to achieve sales targets and meet customer needs. Overall, successful international sales management requires a combination of strategic planning, market knowledge, cultural awareness, and strong leadership skills. By implementing effective sales strategies and building strong relationships with customers and partners around the world, companies can achieve sustained growth and success in international markets. Question 5. What is meant by logistics and supply chain management? How is logistics planning linked to the channel management? Answer. Logistics and Supply Chain Management are two interconnected concepts that are vital to the success of businesses involved in the movement and delivery of goods or servi Logistics management refers to the process of planning, implementing, and controlling the movement of goods, information, and other resources from the point of origin to the point of consumption. Logistics management encompa: activities such as transportation, warehousing, inventory management, packaging, and distribution. Supply Chain Management (SCM), on the other hand, is the coordination and management of all activities involved in sourcing, procurement, conversion, and logistics management. This includes the planning and execution of activities across the entire supply chain, from the initial acquisition of raw materials to the final delivery of finished products to customers. In simpler terms, logistics management is primarily focused on the movement and transportation of goods from one place to another, while supply chain management is concerned with managing the entire network of companies and resources involved in the production and delivery of goods and services. Logistics planning is closely linked to channel management because effective logistics planning is essential for ensuring that products or services are delivered to customers through the appropriate channels in a timely and cost-effective manner. Logistics planning involves the coordination of transportation, warehousing, and inventory management to ensure that products are available when and where they are needed. For example, if a company sells products through both online and offline channels, logistics planning would involve coordinating the transportation andstorage of products to ensure that they are available at both the company's warehouses and retail locations. This would also involve managing inventory levels to ensure that the right products are available at the right locations at the right time. In conclusion, logistics planning and channel management are closely linked because effective logistics planning is crucial for ensuring that products or services are delivered to customers through the appropriate channels in a timely and cost-effective manner. By effectively managing their logistics and channels, businesses can improve their overall efficiency, reduce costs, and provide better service to their customers. Effective logistics and supply chain management can provide several benefits to businesses, including improved efficiency, cost savings, increased customer satisfaction, and a competitive advantage. Companies that can manage their logistics and supply chain effectively can respond quickly to changes in demand and supply, minimize disruptions, and optimize their operations to improve their overall performance.