Sales Management

Previous Session…..
Overcapacity – Hypercompetion – Business Failure….. Selling Concept and Marketing Concept…. Conceptualizing Business….. Distinction between Consumer Marketing and Trade Marketing. Distribution to the Outlet and Distribution in the outlet….. Core & Value Added Services….

Trading Environment & Channel Management

Today’s Session
Trading Environment Consumer Environment Emerging Channels Role of Intermediaries Strategic Channel Decisions Channel Conflicts & their Management

Understanding Environment
Organisational Environment: All elements existing outside the organization’s boundaries that have the potential to affect the organization. Internal Environment: The environment within the organization’s boundaries. Task Environment: Includes those sectors that have a direct working relationship with the organization among them customers and competitors.

External Environment
World as we know is undergoing tremendous and far-reaching change. Therefore we need to examine components of external and internal environments. Changing Components: In addition to customers and competition, we have Technology & Economic conditions…….

Dimensions of External Environment
International Dimension: Represents events originating in foreign countries as well as opportunities. Technological Dimension: Scientific and technological advancements in the industry and society at large. Socio-cultural Dimension: Demographic characteristics, Norms, Customs and values of the population within which the company operates.


Overview of The Marketing Environment
The factors and forces that affect marketing management’s ability to develop and maintain successful transactions with target customers. Microenvironment The company The suppliers Marketing intermediaries The customers The competitors Publics Macroenvironment Demographic environment Economic environment Natural forces Technological forces Political forces Cultural forces

Key Message of Environment
Constantly changing Need for Managers to adapt to the changing environment. In trade marketing we need to lean the changing trade environment and customer environment.

If the only constant is change
Where are we coming from ? Premise 1: Whatever got you where you are today is no longer sufficient to keep you there. Premise 2: In the complex sale a good tactical plan is only as good as the strategy that led upto it. Premise 3: You can succeed in sales today only if you know what you are doing and why.

Environment Uncertainty
If External environment creates change and uncertainty for the organisation, what are the strategies: Two Basic Strategies: Adapt the organisation to the changes in the environment. Influence the environment to make it more compatible with organization’s needs.

In the context of Trade Marketing
Changes Affect Two Key Areas Trading Environment Consumer Environment

Changes in the Trading Environment
Concentration in the trade with cross borders As barriers are reduced, products will expand into other markets Internationalism will accelerate National products spill into other country’s markets Companies will concentrate their purchasing where it is most advantageous International brands will grow in importance. The trade will develop international strategies for categories. Manufacturers will become much closer to their customers.


Changes in Consumer Environment
Reduced rate of growth in population An ageing population due to improvements in health services More households with fewer people per household Consumer are more critical Steady increase in disposable income Increased people mobility

General Industry Trends impact trading and consumer environment
Trade Concentration
A reduction in the number of outlets and the emergence of large strategic accounts.

Retailers are now opening operations in many different countries. Major buying groups have emerged on an international basis with complex networks significantly impacting on manufacturer marketing plans.

Consumer loyalty has been established by new and varied retailing formats targeted at different consumer needs.

Emerging Outlets Types
Hypermarkets and Superstores Convenience Outlets Discounters Supermarkets Petrol Stations Leisure Outlets Hotels, Restaurants, Cafes, Bars, Clubs, Discos Vending…………..

Impact of Technology
Better informed trade Better management of the administrative details of the business. Total Inventory control Enhanced consumer activity allows trade to target customers specifically.

Marketing channels are behind every product
Institutions specializing in manufacturing, wholesaling, retailing join forces to reach the end consumer. These institutions deliver everything Books to Mutual Funds Medical equipments to telephony Office Suppliers to Toiletries Milk to Newspapers The list can go on and on……..

Marketing channels change with changes in environment
Personal Computers: IBM sold its first PC in the early 1980s through its employee sales force – direct to the end user. Questions on merit the high cost of direct distribution Channel quickly changed to VARs (Value-added retailers) Dell (founded in 1984) changed the rules of the game – first through telephone ordering and now over the Internet. By 1999, Dell surpassed Compaq in the US with over 30 % MS. Books: Publishers, Book Wholesalers, Book Retailers Today it is necessary to operate on-line bookstores / / These developments threaten traditional book shops but provide new opportunities for shippers like UPS and Fedex


What do marketing channels do ? Demand Side Factors: Searching – End-users are uncertain about where to find the products and sellers are uncertain about how to reach the target end users. in-home service. the task is to identify roles individuals play.being the first point of contact. The goal is the use or consumption of the product or service being sold It is critical that all channel members focus their attention on the end consumer – “Happy Customers” Definitions “Channel of distribution is a path traced in the direct or indirect transfer of the title to a product as it moves from a producer to ultimate consumers or industrial users” EW Cundiff & RS Still “The course taken in the transfer of the title to a commodity constitutes its channel of distribution. 10000 travelers insurance agents. an agricultural producer. But no two situations can be exactly alike. Basic Definition “A marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption. The operative word therefore is “May” In any sales opportunity. to the last owner. wholesalers and retailers through which a commodity product or service is marketed” American Marketing Association Channel viewed as a key strategic asset $ 70 billion merger in 1998 – Citicorp and Travelers Group – “Citigroup” Citicorp World’s biggest bank World-wide distribution network of branch banks Travelers Focused on insurance. Channel decisions are strategic What does the example show: Marketing channel decisions play a role of strategic importance. There cannot be a universal pattern. It is the route taken by the title to a product in its passage from its owner. from the Internet and other technology–based methods to branch office locations in one hundred countries around the world to fully individualized. If intermediaries are not there how would sellers reach customers with an unknown brand name. Intermediaries facilitate on both ends of the channel. Intermediaries facilitate ……. “Financial products “manufactured” in various parts of our company will be distributed through a broad range of methods. They are trusted by the end-consumers…. or a manufacturer. Beckman and Others “A channel of distribution or marketing channel is a structure of intracompany organisation.. 10300 Brokers 80000 financial services insurance agents.” It is not just one firm doing its best in the market – many entities are involved – each entity dependent on the other. Example: Laserjet printer manufacturers have to go to office supply retailers 4 . units and intra-company agents and dealers..Where do you look for influence It depends on how much impact the channel can have on your end consumer. mutual funds and investment banking. as the case may be.” Marketing channels and structures have changed over time. It is impractical to generalize about decision-making as you swim the channel. Purpose of the process: Satisfy the end users in the market. It is a process and not an event. You may decide on any of the Distributors / Wholesalers / Retailers / Value-added Retailers combination. the ultimate consumer or the business user”.

3 Ret.1 Ret. Four Manufacturers reaching ten retailers directly.2 Ret. Valuating. Accumulation: Similar stocks from a number of sources.4 Ret. Electronic Data Interchange (EDI): Standardizing the management of business documents.1 Ret. They draw all their supplies from one Shop: Grocery Hardware Milk Vegetables Medicine Telephony Number of contacts involve cost. Assorting: Assortment of products for resale in association with each other.7 Ret.5 Ret. Marketing channels impact number of contacts Reduction in Number of contacts: Imagine a small village of 20 families…… Their number of transactions.3 Ret. Shippers would typically increase frequency but decrease in size per shipment.6 Ret. Number of Contacts Manufacturer Manufacturer Manufacturer Manufacturer Ret. Four manufacturers reaching ten retailers through one wholesalers Four manufacturers reaching ten retailers through two wholesalers 40 Contact lines 14 Contact lines W/S 1 Ret. Continuous Replenishment: Neither understocked / Nor overstocked.6 W/S 2 Ret. Paying for goods and services.9 Ret.10 28 Contact lines 5 .4 Ret. Lorry-loads to case lots etc.8 Ret.10 Why marketing channels are there ? Manufacturer Manufacturer Manufacturer Manufacturer Number of Contacts Reduction in Number of contacts: Contact costs may vary by the structure you choose with or without intermediaries.What do marketing channels do ? Demand Side Factors: Sorting Out: breaking down heterogeneous supplies For example a fruit-seller sorting out oranges by size and grade.5 Ret.9 Ret. And in this example the next-door neighbour store is the most cost-effective.7 Ret. Allocation: Breaking the bulk.8 Ret. Wholesalers accumulate for retailers and retailers accumulate for end-consumers.2 Ret. What do marketing channels do on the Supply Side Supply Side Factors: Routinization of Transactions: Ordering.

6 . 4. Issues of Availability How much available ? Role of Intermediaries For efficiency of the process Arrangement of routes of transactions Searching the customer Sorting the customer base Who are marketing intermediaries Middlemen: Just about anybody acting as an intermediary between the producer and customer Agents or Broker: Intermediaries with legal authority to market goods and services Agents generally work in continuity Brokers may be engaged for a particular deal Sometimes agents and brokers tend to work for buyer rather than seller – should you allow it ? Real Estate brokers have to satisfy both. To build channel member’s loyalty To stimulate channel member to put greater selling efforts To develop managerial efficiency in channel organisation To have an efficient and effective distribution system. Wholesaler Organisations that buy from producers and sell to retailers. Sometimes wholesalers act as distributors. Stock-Carrying Points. 2. Brokers / Commission Merchants / Selling Agents / Commercial auction companies. Sometime the same type of intermediary acts as a distributor Legal restrictions in the past – MRTP. Because it starts from raw materials and suppliers’ suppliers and so on…. control and adaptability. 5. personal selling. 3. Agent Wholesalers Tied up with main wholesaler-distributor of the Company. A better term for distribution would be demand chain and therefore a “sense-and-respond”. financing. Role of Channels Major Focus of channel of distribution is DELIVERY. Marketing Intermediaries Retailer: Last link to the consumer Sell directly to the final consumer Either purchase from wholesaler or from the direct channel Distributor: General term used for various intermediaries Perform several functions – inventory management. But even Supply Chain is a “make-and-sell view”. Dealer: Another general term that can apply to just about any intermediary. Even this view is challenged with the impact of technology. To ensure availability of products at the point of sale. Objectives of Channels of Distribution 1. Take ownership and associated risks. Bulk Buyers Put in effort and investment and expect a return on their investment. Wholesaler as a marketing intermediary Establishments that sell to retailers or other merchants but do not sell insignificant amounts.Value Network view Kotler: Establish channels for different target markets and aim for efficiency. Manufacturers sales branches and offices – Stockists. Merchant Wholesalers Independently owned and separate from suppliers. Companies are increasingly taking a value network view – Supply Chan Management..

Adds value through time. Physical Possession / Ownership Promotion Negotiation Financing Risking Ordering Payment W/S Ret. The following elements are examined: Market Factors: Customer Preference (Where do they buy ?) Organizational Customers (Institutional Buyers) Geography (Where is he located ?) Competitive Pressures (Replacing your product with theirs) Product Factors: Life Cycle Complexity Value Size & Weight etc. Types of Channels 1. Limited Function Wholesalers: Cash and carry Drop Shippers Truck Wholesalers – Mobile for convenience of the retailer. add value and then sell it Some do their own labels. Merchants: Assume ownership and may speculate.Distributor…. Facilitating Agents (C&F) Transportation and storage Covering the risk (insurance) Financial services / Invoicing etc.Consumer Three Level: Producer…Distributor…Wholesaler…Retailer…Consumer. Provides information Marks prices and pay for gods Concludes transaction with the final consumer Direct coverage relates to reaching the retailers and create a tradepartnership with them to promote your business. Ownership change through the process Producer Channel Selection Criteria Since the controls change. it is a complicated process. Consumer Outsourcing: Services – After Sales Finance by Cars and Real Estate 7 .Retailer……Consumer (White goods) Two Level: Producer…. Role of a retailer The final connection with the customer / consumer End-user contact. Direct-marketing channel (or Zero Level) Indirect Marketing Channel: One Level: Producer…. 2.Different roles of a wholesaler Full Function Service Wholesalers: Distributor Jobber They perform all the functions in a given territory for the interest of the principal. Personal Factors: Financial stability – future requirements Succession Managerial capabilities.Retailer…. Other marketing intermediaries Value-added resellers (VARs) Intermediaries who buy the basic product. space which also forms part of the price that the end-user is paying for.. Collect products and assort as per consumer preferences.

Customer today is looking for ‘quality’ and ‘speed’ Critical for manufacturers to have their manufacturing policy marry with the channel selection Growth of Multichannel Marketing Systems A shift from single-market and single-channel Proliferation of customer segments and channel possibilities Multi-channel helps in Increased market coverage Lower cost More customized selling Companies also add channels where existing channels cannot reach – e. Flexible Responsiveness of production to consumer demands Build capabilities to reduce or increase production Customization Focused Lowest possible per unit cost Fail-safe quality and leading edge technology A producer. Changing channel dynamics Growth of Vertical Marketing Systems: 2. Causes: Scarce resources – Support need of channel partners. Brand Managers trying to push their respective brands through relationships with trade marketing and shipping departments. People dislike each other.g. Each of the strategies may be differently suitable for varying products.Manufacturing Strategies Maufacturing strategies are to be integrated with distribution channels 1. banking and insurance counters. Multichannel gives rise to “Conflict”. distributor and retailer acting as a unified system. Idea is to seek distributors who can seek strong support from their retailers. Jurisdictional Ambiguities – Territories and boundaries. Career-centered people lobby politically against each other and try to hurt each other’s achievements. On the other hand the dealer may prefer high margins for short-run profitability Unclear roles and rights: IBM selling to institutional buyers. Franchising Purpose being to have greater controls Disallow channel partners to use their own standards Major forms of VMS: Corporate VMS – Successive stages of production and distribution under single ownership – Toyota wanting stakes in key suppliers Administered VMS – Control on successive stages of production and distribution but using power of one of the parties. Differences in perception: Optimistic vs. Communication Breakdown – Poor communication leads to misunderstanding and mistrust.g. retail malls and watch show-rooms. What is a conflict ? Conflict refers to antagonistic interaction in which one party attempts to thwart the intentions or goals of another. Power and Status Differences – Low prestige individuals. Personality Clashes – Do not see eye-to-eye. selling by phone (impact of technology) Companies may also add a channel whose features fit with the customer requirements e. Causes of Channel Conflict Inherent vices of Buyer and Seller Goal Incompatibility: Manufacturer may want lower pricing and higher market-share. Conflicts can occur anywhere A product development team having strong-willed people may make little progress. Pessimistic view of the economy and social developments 8 . large customers. bulk off-take discounts. Salespeople promise delivery dates that production cannot match.

Time pressures lead to compromises.Often it happens when there is an outside threat (develop a common goal. 3. Offer the off-line partners higher commission to cushion impact on their sales. Conflict between the national account manager and field sales force. . Prepare specialized stores well in advance…. 5. Khari Boali and Naya Baans thrive by exploiting company dealers. Styles to Handle Conflict You can be either assertive or cooperative. If you do not do it. Types of Conflict & Competition Multi Channel Conflict: When clothing manufacturers open their own stores. 9 . 1. The Avoiding Style: Neither assertive nor cooperative. 3. Look at the size of Amazon. Goals Incompatibility – Differences in goals…. Offer different brands or products on the internet. – National account customers located in salesperson’s territory. especially when a new channel emerges and eats into traditional channels Situation: Levis selling through specialized stores decides to add their range through other departmental stores Information sharing at a very early stage…. Take orders on the website but have them delivered through retailers. When Goodyear decided to sell its tyres through Wal-Mart Brick and mortar companies adding on-line e-commerce channel. This can be resorted to when the issue is trivial.Causes of Channel Conflict at IBM 1. 2.. Convince them that the initiative is to gain market share from competition Convince them that it is in their overall interest. Dell & Direct Line. However effective team members vary their style of handling conflict to fit a specific situation. pricing and advertising. The Competing Style: Assertiveness to get one’s own way. 2. someone else will do it – online business may run to competitors.Come to an agreement on the fundamental goal . Types of Conflict & Competition Vertical Channel Conflict: Conflict of General Motors with dealers on policies of service. 4. Conflict of Coca Cola with its bottlers who may wish to bottle other products. 2. The Compromising Style: Moderate amount of both assertiveness and cooperativeness. this can be used when quick and decisive action is vital. When goals on both sides are equally important. Managing Channel Conflict Certain channel conflict can be constructive but too much conflict can be dysfunctional. E*Trade. Challenge for Sales Managers Intermediaries + Online. Conflict between field sales force and telemarketers – Telemarketers engaged in expanding the market through smaller customers. One Pizza-Hut franchisee complaining about the other on “ingredient quality and therefore overall image. The Accommodating Style: When maintaining harmony is important. Conflict between field sales force and the dealers – Dealers adding value with additional customized requirements which salespersons could not do. 3. Three Possible Strategies: 1. Horizontal Channel Conflict: Aggressive pricing of one dealer and its impact on adjoining territories – Wholesale markets in Sadar Bazaar. The Collaborating Style: Bargaining and Negotiation to reach a win-win situation.

What is the next step: 1. Where all your efforts with regard to cooptation and dialogue fail. How do you resolve this ? Cooptation: This can be achieved at business chamber level and industry association levels. You increase the incentive. The war-fare in the market place. it tends to share some and keep information to be used as a level to achieve cooperation. Expertise: If A has expert knowledge. Identification: Given equal returns. Motivational Tools 1. 2. Motivational Tools 3. Then B can conform to A’s wishes. Arbitration: Neutral Third party Concept of Ombudsman Two nominated arbitrators and one neutral industry expert. granting of exclusive territories and various promotional allowances. ASCI etc. Coercion: Coercion amounts to negative sanctions or punishment including reductions in margins. the competitor increases and the game goes on. withdrawal of reward and slowing down of shipments.. 4. Ability to acquire information by a powerful partner can be used and your pound of flesh extracted by sharing such information. Managing Channel Conflict There can be channel conflicts among competitors. In terms of dispatch of requisite models Accessories Zero mileage How do you resolve this ? Exchange Programme is one of the ways…. There can be a series of meeting and common ground established. Diplomacy: Where each side can send one representative to meet and discuss issues across the table. Managing Channel Conflict Sometimes. Reward: If A possesses some resource which B wishes to obtain. The Maruti executive may be deputed at Competent Motors for three months to appreciate the customer issues from the perspective of the Competent Motor executive. 2. On practices in the market. FICCI. Bribing customers on displays can be endless.Managing Channel Conflict There can be a conflict between Maruti Sales Executive and Competent Motors Sales Executive. CII. players decide to identify one party for dealership and leave the other by minimising effort and supplies. the conflict can become chronic. Specific rewards to channel members could include wider margins. vital Key Learnings Trading Environment Consumer Environment Emerging Channels Role of Intermediaries Strategic Channel Decisions Channel Conflicts & their Management 10 .

We shall move on to Sales Territories. Adapting Products Logistics Brand Marketing Trade Channels and Strategic Customers Managing the Sales Effort Managing Sales effort involves analysis: Analysis Planning Develop Sales Plans Implementing Carry Out the Plans Controlling Measure Results Corrective Action To the needs of 11 .In the previous session…. Factors affecting Territory Design.. Meaning of Trade Marketing A more professional approach to Sales & Distribution. Specific Techniques for Territory Planning.. Criteria for Territory Planning. SWOT Analysis for Designing Territories.. Trade Marketing is…. Benefits of Territory Planning Why establish Sales Territories ? Matching Sales effort with sales opportunities Lend direction to the planning and control of sales operation. Sales Management Trading Environment Consumer Environment Emerging Channels Role of Intermediaries Strategic Channel Decisions Channel Conflicts & their Management Territory Management In this session….

and organizational communication Making SWOT Productive for Territory Management Examine Issues from the Customers’ Perspective Customer focus is critical.T.O. 5. and really helps to identify key issues Avoid “talking to ourselves” What are our customer perceptions and what is important to them? External (Opportunities and Threats) Market (customers and competition).T. 2. Who are our competitors? What is their strategy? Should we compete? If so. market share. customer perceptions. economic conditions.O. in what markets? How? Opportunities Weaknesses Minimize/ Avoid Threats Minimize/ Avoid Convert 12 . product quality. Matrix: Identifying Actions to Take Strengths Opportunities Weaknesses Minimize/ Avoid Convert Threats Minimize/ Avoid The S.Competitor Questions 1.W. political/legal Matching Strengths with Opportunities Basis of the Working Plan: Identify strengths compatible with opportunities Part of the Working Plan: Convert Weaknesses to Strengths Convert Threats to Opportunities The S. human resources. technology. social trends. 4. production facilities and capacity. 3.SWOT Analysis for Designing Territory Utilizes internal and external information Internal (Strengths and Weaknesses) Financial performance & resources.W. product availability. Matrix: Identifying Actions to Take Strengths Match Convert Convert Designing a Territory.

8. 6. Geographic Location Industry Product Use Method of Buying Channels of Distribution Sales Potential Work-load Method Arbitrarily Rational Basis Factors of sales volume of a terittory 1. Who are our actual and potential customers? Why do they buy our product? Why do non-customers not buy our products? Where do our customers buy our products? How do they buy it? When do they buy it? What do they do with our product? How do you determine a unit Territorial Planning States. 7. 9. Geographical Units are preferred because you can access statistical data from credible agencies. 2. Easier to monitor and modify if required A More Holistic Approach However a more holistic approach can be more productive – it requires an effort and in-depth planning Sales Potential Buying practices Sales Personnel skills Frequency of Calls Work-load and a combination of factors can be considered. Developing Territories Territories can be formed according to: 1. Factors effecting size of the territory Size Market Potential Number of customers’ accounts Firm’s experience Market share in the territory 1. 2. 4.Towns.Customer Questions 1. Areas. 3. 5. 2. 3. 5. 6. Understanding Territory -What is a Territory Represents a group of customers Accountability units across hierarchy Idea is to have a code / a name / a number to identify the group of customers together Essentially defining a territory based on Geography Channel of distribution Industry Sales potential Product Use Work Load of personnel Buying practices Arbitrarily / Rationally Central theme of defining territory remains better coverage and more productive coverage. Number of customers and prospects in an area Call frequency on existing customers Number of calls that the sales person makes in a day 13 . Tehsils etc. 2. 3. 4. 4. Villages. 5. 7.Designing a territory . 3.

Circle. Monitoring Classification of Markets – Strategic.Markets contributing remaining 20% volume Development Markets(DM)New Geographies 14 . you are looking at productivity Sales potential of each control unit Focus to maximize return on effort and investments Combining Territories / Double-Hatter arrangements Territory Management Retail Census Trade Coverage – “Fish where the fish is” Classification of Outlets – Types.. Village / Tehsils / Cities / Trading areas etc. Distribution Guidelines A structured framework for infrastructure and visibility planning process.e. coverage numbers and in market visibility Distribution Guidelines Classification of Markets Strategic markets (SM) -Markets contributing 80% of our volume in a given Cluster/circle Important Markets(IM) . Important and Development Categorization of Markets – MS v SOV Population Data base approach Coverage Norms & Frequency Norms Span of Control A specific tool to plan execution for both coverage and visibility Gives direction by establishing strategic customers and key accounts Enables merchandising to stimulate sell-out Focus on resource allocation. “Strategic”.Basic control Unit for Territory Objectives and Criteria for Territory Planning It affects sales force morale and performance Need to work optimum number of territories Equalization of territory potential and geographic alignment / realignment Route Planning of sales force – Straight-Line or Hub and Spoke. Essentially. Clearly define objective of distribution i. Triangle and so on….

10L Daily Daily Daily Thrice/wk Thrice Once Import.10 to 0.10L Y Y Y Y Y Y Y Y Y Y SCP STK 2W Y Y Y Y Y 3W Van Y Y Y Y Y Y Y 15 . Direct Coverage Norms Strategic Markets Town 80 % Important Markets 65 % Devlpment Markets 50 % Classification : Categorisation: 2.Basis Population Category I Population above 10 Lacs Category II Population 5 to 10 Lacs Category III Population 1 to 5 Lacs Category IV Population 0.50 L Pop Less than 0. you can provide Coverage Norms and Frequency Norms Village 60 % 45 % 40 % Frequency of Visit .50 Lac Category VI Population less than 0.50 to 1 L 0.50 to 1 Lac Category V Population 0.Norms Strategic Markets Pop Above 10 Lacs Pop 5 – 10 L Pop 1 to 5 L Pop 0. Markets Alternat Alternat Alternat Thrice Thrice Once Resource Allocation – to meet norms Dlr Pop Above 10 Lacs 5 – 10 L 1 to 5 L 0. Strategic / Important / Development Population Database Based on these definitions.50 to 1 L Pop 0. Markets Daily Daily Daily Twice/wk Twice Once Devlpm.Clarity of Task Strategic Markets Important Markets 80 % of Business Be the Preferred Supplier 20 % of Business Grow Business to shift it to “Strategic Market” status New Business Switches from Competition Territory Planning – Pop-strata Regroup Markets .10 Lac Development Markets Two definitions of Markets 1.10 to 0.50 L Less than 0.10 to 0.

Key Decisions in Sales Management & Costs Competencies of Sales People Optimal size of sales force – workload / costs Territory Management Recruitment & Training Resource Allocation Performance Appraisal / Measurables Feedback – ‘Speed of response’ Managing Channel relationships Internal Customers 16 . Understanding of Sales Territories. Markets 140 Benefits of Territory Coverage 1. 4. 3. Analysis of distribution costs.Resource Allocation Strategic Markets Outlets/ Salesman 70 Imp. Productivity checks.. Benefits of Territory Planning Minimizing Sales Costs In this session…. Managing sales is managing costs. Better Planning Proper coverage of potential markets Efficient call patterns Better customer service Choosing appropriate salesmen for specific accounts Some systems which are based on purely relationship may follow planning selectively – LIC. 2. Factors affecting Territory Design. How costs determine distribution models. Distinguish selling and distribution costs. 5. Criteria for Territory Planning.. Specific Techniques for Territory Planning. Markets 100-120 Devlpmnt. Mutual Funds and stocks Salesmen/S 6 upervisor 9 12 Sales Management In the last session…. SWOT Analysis for Designing Territories. 6. Key responsibility of sales managers involve costs.

P&G’s Golden Eye 1.e. 4. 9. What processes and organisational structure will sustain performance. Except Vicks Action 500 or certain detergent sachets. 3. Use of wholesale as a channel in territories that are not directly covered. Following the HLL Model Distribution-led demand creation. others realized: Traditional Distribution system operates on the lines of a command economy i. Push stocks whichever way to reach consumers. Reduced manpower. Use of wholesale as a channel in territories that are not directly covered. 7. Reduced manpower. 5. 2. Every income and geographical segment. 9. 8. Determine supply target – Number of retailers 2. Old Economy paradigm – ‘Reach & Availability’. Except Vicks Action 500 or certain detergent sachets. 2. P&G would not have much of distribution presence in rural areas. 5. Given the value proposition. But what it meant for other FMCGs (essentially MNCs) ? A Hit on the bottomline ! Outcome of following HLL Model: While HLL survived on size and variety of products / brands. Company focuses on Class A & B towns. Basket of products at every price-point. 3. 3. 2. P&G touts ECR (Efficient Consumer Response Model) ECR – Maximize consumer satisfaction by optimising the supply chain. 8. 6. 7. Automation. What is happening here ? You fish where the fish is ? Maximization……Optimality What is happening here ? You fish where the fish is ? Maximization……Optimality An outcome of Sales analysis 17 . 6. 4. This carried on for some time. Company focuses on Class A & B towns. P&G touts ECR (Efficient Consumer Response Model) ECR – Maximize consumer satisfaction by optimising the supply chain. 1. Revamp: No more support from deep-pockets of MNCs for thin-margin operations. Automation. Pressure to shore up bottomlines rather than working on topline alone. Other companies followed the leader. P&G would not have much of distribution presence in rural areas. Reduces number of price points and pack sizes. Gets out of smaller population clusters. who are the end consumers and therefore what are the distribution objectives ? What channel structure will achieve these distribution objectives ? Optimal use of network – Lowest cost. Remove excess flab – birth of ‘Power Brands’ P&G’s Golden Eye 1. 4. 7500 distributors. Reduces number of price points and pack sizes. Gets out of smaller population clusters.Responsibility of Sales Manager & Costs Cost – a strategic question in any Distribution System Key Task: How do you reach your end consumers ? Profit Centre Heads Execution Process to achieve targets and profits Customer relationships for long-term growth Strategic Questions: 1. 1 Million retail points.

It has to be an in-depth study – summaries do not reveal. A B C D 100 120 90 50 110 123 80 40 120 100 100 50 100 120 110 50 90 103 W/S Ret. Type of customers providing satisfactory results Imperative Allocate resources – sales effort. Study of sales volume performance by towns and by villages Sales volumes by dealers and stock-carrying points. Sales / MS Avg Sales / MS Sales Analysis – Oct. Period By Channels Brand Sales LY Sales SPLY O/D Oct.No Name of Retailer / Customer Brand A Qty Brand B Qty Brand C Qty Brand D Qty Value (Rs./Dec.) Total Quarterly Sales Analysis – Oct.20 + 12 + 10 +6 80 112 110 106 18 . Avg. Basic Sales Report Format S./Dec. Nov. Sales / MS Nov. Sales performance by sales personnel Sales performance by product lines Objective Strong and weak territories.Sales Analysis Why do sales analysis A detailed study of sales volumes performance to detect strengths and weaknesses. High volume and low volume products. 100 200 50 350 110 90 60 40 90 40 90 40 90 40 260 270 280 290 280 430 400 410 420 410 120 113 120 110 50 50 Counter Total Sales Analysis by Regions Region North West East South Total Target 25 50 120 80 275 Actual 28 55 118 75 276 Variance % of Target +/+ 12 112 + 10 -2 -6 + 110 98 93 100 Sales Analysis by Sales Person ASM Ravi Avinash Ankur Abhijit Region Average Target 75 25 85 40 225 Actual 79 20 95 44 238 Variance % of Target +/+5 105 . Sales / MS Dec. Period Region / Circle / Branch / All India Brand Sales/MS LY Sales/MS SPLY O/D Oct. Dec.

stocking. What are the service level requirements that channel intermediaries require from an organisation – credits. 19 . Contemporary terminology: “Supply Chain Management” It involves ongoing review of Strategy. mix of direct coverage and reach. Workmen. Distributors. Understandably distribution objectives are directly related to end consumer requirements. Wholesales or a combination. Telexes.. A Company needs to review logistics and spend considerable time in planning and coordinating of this activity. Pollution Control. Temperature controls. Anderson Consulting Group Distribution Objective Channel Design Intermediate Management Policies & Procedures Network Design Materials Management Channel Management IT Strategy How many and what kind of outlets do I need ? Am I catering to a given target audience and their buyer behaviour Do my distribution objectives match the overall marketing objectives. Water. Storage spaces. 2. Structure. Which channel intermediaries can perform these functions – C&F. Supervisory. frequency of coverage etc. trolleys etc. 1. •Controlling 3. Manpower – Managerial. Processes in line with the distribution objectives. Humidity controls. stocking systems. Transport equipments – trucks. Energy. •Consistently •Supply Management Chain •Setting lower inventories with changing demand.Analysis – Setting Distribution Objectives Distribution Objectives are normally spelt out by the number of outlets to be covered. infrastructure. Computers etc. •Lower inventories •Lower trade spends. Communications – Telephones. Process 3. •Demand Forecasting based on trend •Monitoring objectives in line with demand potential. of trade spends •Right trade 4. What are the service levels that an organisation will require – number of outlets covered. lead times. Structure Warehouse & Transport Facilities & Equipment 2. receipt of goods etc. Logistic Needs Logistics is related to all the activities related to distribution of goods. 3. Developing physical network strategy 1. spends & distribution expenses. What will be required to move goods ? Land – for smooth conduct of operations. inventory levels. Achieving objectives at the lowest cost Distribution Processes •Inventory An optimal channel design 1. Setting / Achieving Controlling Distribution Objectives Distribution Costs •Setting alternatives. How many facilities – manufacturing units / depots / CFAs are needed Which customer regions and which product lines should be served from each facility How much inventory should be maintained in each facility 2. What activities and functions need to be performed – redistribution. collections etc.

Marketing 8.” Achieve this at an optimal cost.” Activities: 1. Freight 2. Administrative costs To control costs of effort – 80:20 rule and “fish where the fish is” Help in guiding marketing policy / strategy both for long-term and short-term Allocation of Distribution Costs Distribution Costs are substantial…. includes the movement of raw materials from the sources of supply to the beginning of the production line. Should it be apportioned on the basis of share ? Should it be equally split ? Sharing with other FMCG products: What should be the basis – Negotiation. Inventory Control 6. Selling & Distribution Costs Selling & Distribution costs broadly represent marketing cost. Distribution Costs are common and difficult to apportion. Warehousing 3. Selection of site for various activities 7. Selling Costs Secure orders Retain Customers Distribution Costs Transportation Insurance. Operating Expenses. Win:Win to be worked out Allocation of Distribution Costs Distribution Costs are substantial….. In turn fix-up optimum sales level. Selling Costs seek to create and stimulate demand…. Distribution Costs are common and difficult to apportion. Protective Packing 5. Challenge: “Demand-side customization and Supply-side Commoditization. Forecasting The task of distribution The task of distribution is concerned with the exchange process and gears itself to matching the demand and supply within a given periphery.Definitions of Physical Distribution “The term Physical Distribution Management is employed in manufacturing and commerce to describe the broad range of activities concerned with the efficient movement of finished products from the end of production line to the consumer and in some cases. Material Handling 4. Win:Win to be worked out 20 . Should it be apportioned on the basis of share ? Should it be equally split ? Sharing with other FMCG products: What should be the basis – Negotiation. Distribution costs are towards reaching the customer Why to analyse Distribution Costs To determine costs of sales of different products – review profitability by products or by brands.

Inventory Costs Three types of Inventory 1. Consumer satisfaction. 2. 2. return-trips have to be determined – certain locations will require two-way transport costs. One of the key responsibilities of Sales Managers is to control inventory costs. Execution and control. Fuel consumptions. postage. Product or product lines 2. 3. Option of a negotiated yearly contract rate Operate on market prices on transaction to transaction basis. Operating Cost Repairs and Maintenace Depreciation Taxes Insurance License Fee Administrative costs What influences freight rates Nature of commodity Demand and supply Competitive conditions in the transport industry State regulations Organisations have to make a choice: 1. Financial Efficiency – operating profit to gross earnings Service Level Efficiency – number of direct service vs total service Marketing Efficiency – market share and rate of growth Personnel Efficiency – People performance Organisational Efficiency – Adherence to schedule Output of logistic system Inputs 1. repair shops etc. Channels of distribution 4. Planning. 2. Salesmen 5. Like personal travel. Management Actions. Inventory / Order processing/ Transportation / Packaging etc. Outputs 1. 50 Lacs Per day Cost Rs 14000/- Control System for Efficiency Logistics efficiencies are critical as huge costs can be saved. Carrying Costs – Space Cost + Storage Cost + Insurance + Theft / Pilferages + Wastages and Loss etc. 3. Process 1.g. Geographical territories Freight Rate Fixation There are two types of transport costs 1. Physical resources – land. 3. Turnover 100 Crores Monthly TO 8 Crores Cost of 7 days stocks 2 Crores Interest @ 12 % Rs.Analysis of Distribution Costs The basis of analysis of distribution costs: Desires of Management – What is the priority ? What is the overall strategy ? If profit is to be maximised – direct sales effort to most profitable products. Ordering Costs – Cost of stationery. Various ways of analysis: 1. Therefore efficiency at every level to be improved These are are interdependent and inter-related…. Operating Efficiency – e. 4. 2. Standing Costs 2.. telegrams etc in placing an order. facilities etc. Competitive advantage 21 . Cost of Materials – Purchase Price + Transport + Insurance + Taxes. 24 Lacs Opportunity Cost @ 25 % Rs. Individual customers or groups of customers 3. Operating Costs Standing Cost Cost of Vehicle Capital cost of garage. Human Resources Financial Resources Information Resources 2.

of consignments planned/year Productivity Aspects Vehicle Utilisation Ratio = Vehicle Kilometers actually run/day Vehicle Kilometers planned per day No. of accidents / year No. The Negative Customer: Lacks Creativity Does not like taking risks Cannot see any advantage in a new idea. The Customer is the crucial person in Trade Marketing. The Positive Customer: Constructive & Open Reasonable and concerned about the outcome. The more effectively you work with the customer the greater will be your success. Personal selling is all about dealing with a customer.Productivity Aspects Right Delivery Ratio = No. of prompt deliveries/year Total No. 22 . of deliveries/year Route Potential Ratio = Breakage Ratio = Accidents Ratio = Operating Expenses Ratio Net Profit Ratio = = Service Ratio = Promptness Ratio = Summary Distribution costs need to be examined in each area of distribution: Transportation Warehousing Sales Management Personal Selling Inventory Material Handling Information Technology Distribution is a source of cost – admittedly a necessary cost but a cost nevertheless. of Deliveries on time Total No. of deliveries/year Tons carried per route Tons capacity per route No. of consignments booked/year No. of trips operated / year No. Personal Selling Knowing the customer Difficult to generalise but…. of consignments damaged in traisit Total number of consignments Total Operating Expenses Total Earnings Net Profit Total Earnings No.

Communicate the message to the other party (Transmit) The other party listens to the message (Receive) The other party interprets the message (Decode) How do you prepare yourself…. Build on ideas of your peers. Personal Selling Personal Selling is all about Oral Presentation for the purpose of making a sale. i. Incubate the Idea Get Illuminated Apply The Idea Sales person should be creative It is an inter-personal process involving individual identities. Educational System: “Chapterisation” or “The right answer”.Knowing the customer Know-Everything Customer: Think they know everything about everything Opinionated Bad Listeners Think they know more about your brands than you do. The Process of Communication Clarify the message that you want to give.e. 23 . Therefore we need to customize our presentation to the specific type of customer. Exhibitions………. messages by speech. there cannot be a standard solution. writing or sign.thoughts. Public Relations. A part of the communication mix – Advertising. Provides a process for productive information about our products and merchandising. Sales Promotion. Dismissive attitude: “I can’t climb this hill” – Evaluating too quickly. Decide on the best method of saying it (Encode). Rules: Big advantage is often linked to challenging the rules. Specialisation: “It is not my area”. Direct Mail. “It is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefit thereby increasing their total satisfaction. feelings. The need is to communicate effectively Effective Communication Increases our understanding of the customer’s needs and wants. Therefore. Barriers to Creative Thinking: Routine: Comfort in routine… or “It is time for lunch”. Increases the customer’s understanding of our product. It is two-way communication – slower but more accurate. Write down as many ideas as you can. Suspend judgment. delight. Personal Selling involves communication Communication is a way of exchanging – conveying ideas.

Ways to improve communication
Give an overview at the beginning. Simple Language. Logical structure – Perspective of the customer. Encourage eye contact – establishes rapport. Encourage feedback – Show concern for feedback. Seek clarification – Understand the feedback. Check commitment and agreement – to proceed further. Summarise often. Do not talk too fast.

Difference between Salesmanship & Personal Selling
Salesmanship Seller-initiated Providing information Motivates for favourable decisions Two-way communication Right Product to the Right Customer Stimulate interest Developing brand preference

Personal Selling

Personal Selling
Personal Selling is about Inter-personal skills: It involves personal confrontation – Therefore interactive Impulsive…….. “Chemistry-match”. Opportunity to cultivate relationship. Buyer has to respond – ‘reciprocity’.

Personal Selling
Advantages Disadvantages

Can close sales High costs Feedback Chance of Negative rubCustomized presentation offs on imagery Lifetime value

Situations conducive to personal selling
Product High unit value / Introductory stage / Precision engineering products / No brand value – Bus vendors. Marketing Small number of buyers – Institutional Trading – Sadar bazar transactions Consumer Behaviour High value decisions (Cars) / Answers to querries Last 30-seconds prompt.

Strategies of sales person
Communication alone achieves little – only product information; So what ? “Walk the talk” Persuasive – Understanding needs and finding solutions Negotiation – Adjustments to commercial needs Client Profit-planning – Working with the client to produce a specific product Business Management – Multi-level contact where the frontline becomes an advisor.


Changing Roles of a Salesman
Delivery Sales Person Behind the counter Direct-selling to retailer Missionary – Medical Representative Creative – Relate value that the product can add to customer’s needs New Business Selling – “Solutions”

Changing Role of a Salesman
Consultative / Technical Capital goods where high-end knowledge is imperative. Commercial Non-technical like office stationary, equipment where price negotiation is the key to success Direct Sales Customer / consumer Door-to-Door

Personal Selling Process
What is a process: It is a naturally occurring or designed sequence of operations or events to produce an outcome Machine-like operation / Coordinated effort A sales process has to be People-dependent but not individual dependent Process brings about a disciplined approach to execution. Process does not mean ‘auto’ mode ‘Eye-to-detail’ and grass-root level awareness is critical Standards not a standard to carry out a selling process Gains of best-practice sharing and experience

Some Negative Stereotypes of a Sales Person
Talks too much Lies or Manipulates Doesn’t know about the product Doesn’t care about me (customer speak) Creates pressure Wastes time

What does the customer expect
Trusted Advisor Trust can be achieved through consistency Competence + Concern = Trust Therefore Industry knowledge – Be generally aware. Consultative partner – On personal matters Theme of Partnership Your and your trade partner want the same “Exact right solution. No guessing to know what the customer wants Skillful questioning to uncover customer needs

Prospecting, Identifying & Qualifying
This is the planning part of the process – “I will take seven days to sharpen my saw to cut a tree in one day” Prospecting is all about eliminating non-buyers Identification involves establishing sources of information: Tele-marketing / Referrals / Influencers / Cold-calling / Directories / Mailing Lists / Trade shows Qualifying the prospects M Money – Ability to Pay A Authority – Ability to take a decision N Need – Needs the product or service


Pre Approach and Call Planning
Don’t eat your cake before it is baked… Research the prospective customer Needs / Likes and Dislikes / Others involved in the decision-making process. Rani Mukherjee invited to all dinners hosted for Mrs and President Musharaff Call Planning – “Appointment” leads to obligation Sequencing the presentation – Customer’s priorities.

Pre Approach and Call Planning
Sales Person should get information like: Financial Position of the prospect – “Ability to pay” Special Needs and problems – “Am I providing solutions” Who is the decision-maker – men behind decisions What is going to motivate the buyer – Look at personal characteristics but remain “Ethical”

Call Planning
Call planning is a specific planning sequence 1. Define objective 2. Devise a selling strategy 3. Settle past disputes and collect payment

Mid-course correction
Slow down and check your process If successive calls are unproductive If you are not sure of the answer – revert back and do not cook an answer If it looks you are loosing the deal / customer If competitors are beating you on price Exit ‘early’ and ‘cheaply’

Presentation Approach and Demonstration
Categories of Presentations: Automated – Techno-savvy is more competent is the general perception. Semi-Automated – Combination of ‘click’ and ‘brick’ Memorised – A prescribed standard Organised – A structured approach - Attention to Interest to desire to action (AIDA) Unstructured – Explore with the customer – may require authority to take spot decisions. “Go for the visual impact – 50 % retention versus 10 % of spoken word”

Presentation Approach and Demonstration
Buying signals Watch for the buying signals Is he examining the product ? Does he have questions about features / use /price etc. Mid-course changes for the desired outcome Buying Motives Fear of being left out – ‘Competitor naming’ Recognition for a wise decision Family/friends - societal approval Sense of pride


The product in question can satisfy the need 3.Objective of a Presentation Approach It is the approach that makes or breaks a Presentation Four Basic approaches: 1. Avoid dishonest responses. Demonstration Convince the Buyer 1. The need for the product exists 2. customer are giving you the opportunity to resolve whatever it is they do not understand or agree with. How do you respond to objections Different type of objections Hidden Objections: Customers asking unrelated or unimportant questions may have hidden objections. Stalling Objections: Are used when people want to postpone buying because they have hidden objections they require more information they are indecisive Ensure that you listen carefully and fully understand the objection. Decision-making requires thinking and no one wants to think – ‘comfort in routine’ Answer lies in knowing hidden needs and addressing them. Product Approach 3. Objections for price. Ensure you know the products. Avoid unnecessarily contradicting / arguing with the customer. The prospect can afford to purchase the product Handling of Objections To avoid is the easiest things for the customers – they look for real and imaginary problems to postpone the discussion. They may not wish to reveal their real objections for fear of offending you or because they think it is none of your business. 27 . quality. Seek answers through the use of questions. Introductory Approach 2. Referral Approach 5. Consumer Benefit Approach 4. service and a mix of all these can be addressed by bench-marking with competition Institutional Selling – especially engineering goods ‘Empower the decision-maker’ / ‘Make him the hero’ Objections are opportunities By expressing their concern. Objections should be welcomed.

Ways of dealing with objections The Principle: Agree with the importance of the objection with the customer and seek first to understand and then be understood. Increasing profit. Improve brand / Co. Be positive.The sequence of Objection Management To overcome: Anticipate them.Time / Effort /Money already invested Generally buyer may wish to postpone – may require more time to think – check brief ? Ask for the order – materialize the transaction Techniques Action – facilitating of bank finance Gift or benefit – Last minute additional discount to make it happen. Consider objections as opportunities. Mutuality Mutually Agreed Strategies Develop regular And strong personal Relationships at all levels Tailored Support Develop Cooperation And Trust Understanding A target customer Understanding customer’s Strategies & Motivations Mutual Success Road to achieve Mutuality: Channel-tailored support is the bridge from Mutual strategy to mutual success. Attracting new customers. Conditional close – Defect to be removed before execution of the order. The Technique: Rephrase as a question. For US as Marketers Increased sales Increases inventory turnover. 28 . Increased profit. Improve store image. Requires flexibility to take account of special requirements. image. Mutuality For Customers Increasing sales Increasing inventory turnover. Ask questions Deny directly Compensate Appeal to third party Closing the sale At the end of it……. Understand the objection. Attracts new customers..

“The right Fit”…. education and experience determines a ‘good fit’.Key Learnings Locating a potential buyer – Prospecting / Identifying / Qualifying Call Planning – Objective of the call / Selling Strategy / Appointment Presentation – Automated / Semi-automated / Unstructured Handling Objections – Advantages vis-à-vis Competiton Closing the Sale – Financial Assistance / Gift Close / Benefit close / Conditionalities Sales Management Practical Skills for Selling Last Session Locating a potential buyer – Prospecting / Identifying / Qualifying Call Planning – Objective of the call / Selling Strategy / Appointment Presentation – Automated / Semi-automated / Unstructured Handling Objections – Advantages vis-à-vis Competiton Closing the Sale – Financial Assistance / Gift Close / Benefit close / Conditionalities Mutuality in business. Common Mistakes companies make Person’s background. It is an important role and not everyone can represent the company. ? Fit is not about what we know. If that be so nurses can become medical representative and accountants may try selling financial products. Fit is about our talents not our knowledge 29 . This Session Practical Skills for Selling Who can take up a selling career Sales strenghts What do we mean by Selling Sills How can sales people contribute to achieving organisational goals. Two ways of selling Direct to the consumer Through intermediaries Different set of skills may be required for each way of selling. Fit is about what we are.

” Challenges of a selling job Highly stressful Issues of self-esteem Rejection Falling down and getting up again There are two schools of thought Selling skills come naturally Ordinary people can be groomed to be good sales persons. training or experience.” From Strengths to Fit “Excellence is a bridge that spans from understanding to application” Now read this statement: “At work I get to do what I do best everyday” Answer: If Yes… What is the intensity of your Yes How emphatic are you Equation is simple: Doing more of what you are best at can dramatically improve your performance. Acquisitions or a new business line altogether. Such changes can have dramatic effect on sales missions.. you will succeed anyway…. Drive their individual performance by focusing on meaningful goals and rewards 5. Build relationships 2. “If you are good and have the habit of succeeding. Selling pharmaceuticals is different from selling real estate. “Direct-selling versus Intermediate-selling. Find the right structure in which to perform Understanding talents in these areas is the key to build sales strengths. Have an impact on others 3. Sales Strengths Sales strengths do not spring from education. 30 . the best bet is find another company.When Companies change Mergers. Different sales positions Sales positions are different from one another as one sport is from another. What people tend to do when not suitable for a job: Hard-work Perseverance It may lead to increasing levels of frustration leading to disappointment and not success. “It is easier to tailor a suit to fit your body than to tailor your body to fit a suit. The best sales people Adapt the job to suit their strengths They do not attempt to change their strenghts to fit the job. Best performers use recurring patterns to: 1. Discover and solve customer needs 4.” Questions to ask: Are you in the right selling role ? Do you have the aptitude to sell the particular product line ? If the answer is NO.

Hearing is a physical process. Gestures – Movements to indicate. It involves sensing. “A dead-wood expression?” Eye contact – a window to the soul Space distancing – How close you are in your relationship….Essential skills for successful selling No prescribed characteristics – look at likes and dislikes of buyers: The Good Honest Looses a sale graciously Admits mistakes Problem-solving Friendly / Professional Dependable / Adaptable Knows my business Selling Skills Management answer: Communication skills Listening skills Conflict management and resolution skills Negotiation skills Problem-solving skills The Bad No follow-up No appointments Starts with ‘cricket’ Decries competition Poor listener Lousy presentations Poor product knowledge The Ugly Calls me dear or sweetheart (I am a female) Gets personal Lies Wines and dines Does not credit me Acts pushy Plays one company against another Communication Skills Exchange of ideas and information between two parties – relationship management tool. Listening Skills The receiving end of communication Causes more problems than the sending end. stand and walk – an individual’s personality is revealed by his / her body movements. A frown or raising of eyebrows. 31 . There is a difference between listening and hearing. Interpreting evaluating Remembering Responding Listening Skills Listening is the communication skill we use the most. Watch-out for external noise-levels Communication Skills Managing Body Language: Personal appearance Posture – the way you sit. Noding of the head… Facial expressions – A smile. Personal and Non-personal communication Personal communication is effective as it allows interactive changes Dress code Body movements Voice intonations Expressions of emotions like laughter and surprise. Listening is a mental process.Shake hands / Hugs etc.

5. 2. The Competing Style: Assertiveness to get one’s own way. However effective team members vary their style of handling conflict to fit a specific situation. Conciliator may not play an important role. Adjudication – Legal process Negotiation – Dialogue…. Personality Clashes – People do not see eye to eye. Then work to pay attention. 5. Styles to Handle Conflict Team members are either assertive or cooperative. Goal Differences – People pursuing conflicting goals. Methods of Conflict Resolution Authors Nader & Todd: Lumping – Failure of one party to pursue Avoidance – Relationship is called off Coercion – Imposition of one party on the other Mediation – Third party intervention – Mediator has adequate authority. 3. Time pressures lead to compromises. Jurisdictional Ambiguities – job boundaries and responsibilities are unclear 3. The Compromising Style: Moderate amount of both assertiveness and cooperativeness. The Ten Commandments of Listening Stop talking Put talker at ease Show talker you want to listen (body language) Remove distractions Empathize with talker( get into speaker’s shoes) Be patient Hold your temper Go easy on argument and criticism The Ten Commandments of Listening Ask questions Take Notes. 1. This can be resorted to when the issue is trivial. 2.” What are the causes of Conflict ? 1. Work to remember – concentrate. Conciliation – Bring two parties together. 32 . this can be used when quick and decisive action is vital.To improve your listening You must first want to improve. Give the speaker your undivided attention Physical distractions are easier to eliminate than mental distractions. 4. Decide on specific follow-up actions and specific follow up dates Conflict Resolution What is a conflict ? “Antagonistic interaction in which one party attempts to thwart the intentions or goals of another. The Avoiding Style: Neither assertive nor cooperative. The Collaborating Style: Bargaining and Negotiation to reach a win-win situation. Power and Status Differences – Hierarchy and status 6. Scarce resources – Desire to achieve lead to seeking resources. Communication Breakdown . When goals on both sides are equally important. Arbitration – Parties consent and abide by arbitrator. The Accommodating Style: When maintaining harmony is important.. Keeping an open mind results in a win -win situation Work on the accuracy of your filtering – think Involve yourself mentally in what the speaker is saying.misunderstandings 4.

33 . Building Customer Engagement Questions: How many customers are satisfied with you and your company ? How many of those customers are engaged ? How do great people develop engaged customers ? 1. Renewal – Physical Exercises + Reading … Building Customer Engagement Selling Technique Only one selling technique works and that is Customer Relationship. 7. Kotler : “The successful salesperson cares first for the customer.priority Think win-win – there is always a possibility Seek first to understand.Negotiation Skills When someone else has what you want Readiness to bargain Negotiate for business to pay. 3. 2. Accuracy Solution Procedures No checking Does not break the problem. 3. Sales Management Be proactive – choice option Begin with an end in mind – Outcome forecast Put first things first . 5. 6. 2. then to be understood Synergize – Make the whole greater than the sum. CRM and therefore Customer Engagement. Retailer: “Leave your stocks and get cash when sold” Salesman: “Part payment as advance” B School Entrepreneur: Survival money + profit sharing Profit-sharing with Consultants / ESOPs Inventing options for mutual gains BATNA – Best alternative to a negotiated agreement. Selling is all about customer engagement. Problem Solving Skills Characteristics Attitude Actions Ineffective Giving up early Fence sitter Effective Belief in solution Re-evaluates. Looks for creative solutions Checks and rechecks Breaks the problems into small bits and starts at a point. second for the products”. Does not know where to start Stephen Covey’s seven Habits 1. 4.

they became less valuable as a predictor of growth. Higher margins 3. Therefore: Customer loyalty represents strength in customer relationship. Customer satisfaction is simply the entry point for achieving a deeper foundation. But customer satisfaction is no guarantee for business. all of that and most importantly: “How they feel about their interactions with sales people or company people”. Developing a passion for your products. By providing best service 2. Engaged customers are most valuable Expectations from Sales People: Not just generating sales But generating loyal engaged customers Because Engaged customers assure sustained profitable growth. Success in Sales Customer dissatisfaction is a surefire way of loosing business. 34 . Fast-selling products 4. Engaged customers help you sell to other accounts. As customer satisfaction level reached 80 %. Caring relationships … Question: Is that going to be enough ? Customer Satisfaction Gallup’s research demonstrates: “Customer satisfaction is merely the foundation for a continuing relationship”. In the 1990s Companies attained 80 % level of customer satisfaction.Customer satisfaction Companies work towards customer satisfaction : 1. Interactions should lead to Customer becoming more confident Gaining a greater sense of you and your company’s integrity Developing pride in doing business with you. Yes. Customer Satisfaction Company’s most important asset is its customer base. Satisfaction therefore is an unreliable standard for gauging relationship. Because: You and your competitors will have close ratings. Customer Satisfaction & Growth In the 1970s: Quality and Customer Satisfaction were the buzz words. US Car manufacturers were getting killed by the likes of Toyota and Honda Intense interest in TQM. What leads to customer engagement ? Is it products + marketing + services + follow-up….

What builds loyal customers Gallup’s research on factors that cause customers to stop buying your products: Dissatisfaction with product performance Customers severe when basic expectations – promise that brand communicates – are not met. 2. Customers who felt strongly positive about sales representatives were as much as twelve times more likely to continue. 2. Confidence 2. What builds loyal customers Loyalty Components: 1. Four dimensions that comprise customer engagement 1. 8. What builds loyal customers Loyal and engaged customers have an attachment that extends beyond “a good deal”: Attachment Customer engagement is not a function of economics. Passion These are therefore building blocks of customer engagement. 7. Integrity 3. If a problem arises. Customer Response: 1. 4. Indicators of emotional connection 1. 6. ______ is the perfect company for people like me. While Each rupee spent on branding adds to brand equity Each interaction by people adds to customer engagement. Products high on quality ratings found favour on repurchase. How do great sales people create customer engagement How tough it can be: Gallup’s research has shown that “fully engaged” customers has ranged around 6 to 8 percent to as high as 35 to 40 percent. Likelihood to repurchase 2. 5. 3. ______ always treats me fairly. ______ is a name I can always trust. Customer Engagement While Brands / Image / Reputation builds a Customer Base People build customer engagement. Pride 4. ______ always delivers on what it promises. I can’t imagin a world without ______. Likelihood to recommend to others. I feel proud to be a ______ customer. It is personal and emotional People play a very important role. 35 . I can always count on ______ to reach a fair and satisfactory resolution. Therefore Customer engagement like brands leads to sustainable growth and enhanced profits. ______ treats me with respect. – compare this with 80 % Customer Satisfaction discussed earlier. Freedom from defects is a minimum requirement and no assurance for repurchase.

Trust has to be there all the time or there is no turst. The same is true of respect. There is no saying “The friend is always right”. It is not simply a matter of liking the salesperson. 36 . confidence. Dimensions of Customer Engagement 2. “Look what a smart choice I made”. I won’t sell it untill I see it work. Integrity When customers feel that the company treats them fairly. TQM & reengineering have squeezed defects and costs. I check with our systems engineers and have them demonstrate that functionality to me. What kind of car do you drive ? / What wine do you drink ? Your answers to these questions will reflect the way you feel. Customer engagement relates to the company and its products and services and not only to the salesperson. Software Salesperson: “I never say that our software can do something unless I am positive that it can. Customers are fair in their expectations. fair treatment Everytime we are having an interaction with a customer. How does the company treat me A Taj restaurant where you are a regular starts calling you by name What is he actually saying. How an organisation and its people react to the problems can be more effective developer of customer engagement than problem-free delivery. Technology has increased productivity and capacity. It is indeed inspirational …like brands… “I drive a Lexus”. 1. If I am unsure. Customers are different from friends and salespeople should not try to be too friendly. Dimensions of Customer Engagement Pride Customers feel good about the product or service and also feel that using the product reflects well on them.Notice the word “Always” Building customer engagement is not a “sometims” thing. Building Blocks Given that People are our most important asset as companies seek to differentiate themselves. Now customer engagement is going to be the leading edge. “I stayed at Taj Westend at Banglore when I last went there”…… 3. we are either building engagement or eroding it.” Building Trust with another person: Highly individualistic process No simple formula but the first step in customer engagement. Dimensions of Customer Engagement Confidence: Customers feel that the brand or company is trustworthy and that it keeps its promises. Customer engagement is different from friendship. Customers engagement is different from friendship. Therefore customers seek fair treatment They want salespeople to take their side and that sales people work for them instead against them.

diligent.m. Key Learnings Sales is about people who are trustworthy. Customer engagement is tied with your own engagement and degree of your fit. People. Relent on Conflict of interest. Using own talents at building relationships. consultative and inspiring. Last Session – Customer Engagement Sales Management Personal Selling Objective – MIS & Forecasting Sales is about people who are trustworthy. you are competing with the customer. When you bring new ways to do business. Customer Engagement leads to sustainable growth. Passion: A strong relationship that exists between a company and a client when the latter views the former as irreplaceable. Communication. Using own talents at building relationships. They are “incharge” of the operations. Research and feedback etc. When you innovate on your customer’s behalf instead of waiting for his request. Thinking about customers problems is key to customer engagement. Channel. diligent. consultative and inspiring. Management of Information is a control mechanism to monitor profitability of the operation. Customer Engagement leads to sustainable growth. Thinking about customers problems is key to customer engagement. Delivery at a time when it would mean for your warehouse to be open late till 10 p.Dimensions of Customer Engagement 4. – If you do not do this. Customer satisfaction + Emotional Bond = Customer Engagement. This Session – Information & Decision Making Facilitating information flows critical for success MIS Forecasting Sales Management – Many Activities Sales Managers have multifarious responsibilities…Territory. Customer engagement is tied with your own engagement and degree of your fit. 37 . Customer satisfaction + Emotional Bond = Customer Engagement.

In today’s context IT and software applications expedite the process of information. Brand Managers. Developing Information Systems Focus On: 1. internal and external partners.g. Similarly sales information systems help organisation to run the sales set-up. marketing intelligence activities and marketing research. Decision Support System Can pass data back and forth from various sections across hierarchies. Sals Managers. 7. Automation and Linkages to the remotest corners. equipment and procedures to gather. collated and presented all in one stroke. Sales Information It is like the circulatory system in the human body.MS .Marketing Information Systems (MIS) Kotler on MIS: “MIS consists of people. 38 . Periodicity of Information – Daily/Weekly/Monthly…. 5. sort. Assessment of needs – developes information from internal company databases. Information comes into a centralized data… Senior Manager uses the system for data aggregation and territorial reports….. evaluate and distribute needed. Circulatory system provides blood to the brain to operate the entire body system. sales promotion etc. reward systems. analyze. Developed MIS Coca Cola Company knows: We put 3. Information that you want and are not getting. e. 2. sucking up about 8 pounds of dust each year and using 6 bags to do so. 3. Information is captured. Standard data analysis …. A sales person makes a transaction…. Regular decisions Information required to make decisions Information already available Information sought from time to time. 6. Variances etc. It also helps in analysis at various levels. This becomes the basis for decisions on forecast.2 cubes of ice in a glass See 69 of its commercials every year Prefer cans to pop out of vending machines at temperatures of 35 degrees Kimberley Clark which makes Kleenex knows: Average person blows his nose 256 times a year. 4. timely and accurate information to marketing decision makers” Information users are Marketing Managers. Hoover knows We spend 35 minutes each week vacuuming.

Has entrusted P&G with management of inventory. Nightly orders to suppliers Shares sales data with P&G Expects P&G to replenish stocks in a timely manner. inventory levels. prices. improvements. They can retrieve latest price lists. receivables. sales.Internal Data Opportunities for analysis and action: Internal reports on orders. laptops can record each order. accuracy and efficiency of the delivery systems Using computer technology Salespeople use their laptops to dial into Company’s world-wide data network. methods. double-check the order for errors and send it electronically to the place of supply for instant supplies. When deals are struck during the day. status reports on previous orders. payables and so on…. Customer Database: Not only demographics and psychographics and addresses but also Purchase recency Purchase frequency Competitive sales Payment patterns…. data warehouse and data mining Data bases to organize information: By customers By products By territories…..” 39 . critical and unbiased review and appraisal of the basic objectives and policies of the selling function and of the organization. costs. Effectiveness of the Operation Seeking information Sales Analysis Cost Analysis A sales Audit A Sales Audit “A systematic. Data base. Analysis helps spot opportunities for action Order to payment cycles – speed of response Wal-Mart Knows the sale of each product by store and total each evening.. procedures and personnel employed to implement those policies and achieve those objectives. Internet and extranets today improve the speed. Companies warehouse data and statisticians are employed to “mine” the data to get fresh insights.

e. Indepth sales analysis and not summary sales data. Cost Analysis is a source of information Cost analysis determine the relative profitability of particular aspects of sales operations. a firm may have the objective of raising its market share from 15 to 20 % without reducing per unit profit. 40 . well designed.Objectives of Sales Audit Each selling input should have clearly stated objectives. Procedure to establish responsibility by individuals. Sales Audit of Procedures & Personnel Procedure: Steps in implementation to be logical. People evaluation process check Sales Analysis is a source of information Sales analysis is a detailed study of sales volume performance to detect strengths and weaknesses. Audit of internal capabilities Does the organization has sufficient resources in terms of staff. infrastructure and their required capabilities. What are the planning and control systems in place and compatible to the enormity of the task.g. Which channel is more profitable Which territory is more profitable More informed decision-making. Policy of no internal promotions but an internal guy can increase market share. Sales Audit of Policy Both explicit and implicit policies are appraised for their consistency in achieving the selling objectives. – Need to revise policy. Inputs should be related to desired output – e.g.

20 members on a quarterly basis to know service standards.Marketing Intelligence – critical information Developments in the end market on day-to-day basis is critical on an ongoing basis. Proactive approaches in the end market. Other Sources: Magazines / Newspapers Trade Publications / News Clippings. Mystery-shopper check on services: In a car show-room: How long before a sales associate greeted you ? Was he eager to do business ? Knowledge on product ? Market Information more important now Rise of global marketing New emphasis on trade channels Trends towards non-price competition – “Blue Ocean strategy”. Competitors Company Managers / Web-sites / Financial sites Stock-holders meetings / Govt. Speed of response. Agencies / Legal sites How to improve quality of Marketing Intelligence Compare with internal data bank Train people to smell and respond Sales force are important information gatherers. Common Suppliers with discretion. They need information to make decisions. 41 . Trade Shows.g. There has to be a structure to provide this information on time and regularly. Collation to track trends and forecast competitive action. Customers / Panels by towns e. Sales Managers Multifarious activities and control responsibilities Components of an Information System Internal records Computer based decision support system Marketing Intelligence Sales Audits Market Research Sales managers have to make this information “Basis” of their decision making. … Sales Managers are pulled in different directions all the time. Motivate distributors and other network associates to use their strengths and influences and look for information to pass on. Hiring of Specialists or Agencies Mystery shoppers in hotels. Competitors’ Intermediaries.

Bottomline 1. Affordability – Those who can pay for it. many people thought that Coke’s sales are maxed out. 1. 4. 3. 3.A critical decision Consequences of an ‘Error’ Excess inventory of raw materials Idle Cash Idle Manpower Idle Machines New Machines can be bought on the basis of forecasts... Goezueta reframed the view: Coca Cola amounted for less than 2 ounces of the 64 ounces of fluid that each of the world’s 4.4 billion people drank on an average everyday. Thinking Big…. Govt Regulations – Do the laws permit. Existing Market . “Driving Market or Market-Driven” How do you measure demand Two set of customers: Available Market Interest – Those who have interest. 2.“Customers who may be interested in your product” Interest + Income + Access + Freedom to buy = Potential Customer or Potential Market. Accurate sales forecasts have a direct bearing on: Productivity 2. Forecasting….Companies work on “Plans” Plans involve forecasting Sales forecasts are critical because these are used by 1. 42 . COCA COLA When Roberto Goizueta became CEO of Coca Cola. Finance: To raise funds / cash flows 2. 1. Production: To establish capacity and output levels. Tea. The enemy is Coffee. HRD: Hire men needed to accomplish plans.“Your Customers” Potential Market . And Coca Cola ushered in a huge period of growth. Access – Is it possible to reach them. Purchasing: To acquire raw materials and right amount of supplies. 2.. Water…. Visioning…. Milk. 4.

Occupational / Skilled labour – 3 crores Prospect Pool – 6 crores x 3 books x Rs. Discretionary income spent on food. 2. 5. 3. Interest – Reposition in the mind of the consumer. 5. 6. Income – Target your market or price change. Customer Base or Consumer Base How to estimate Books 1. 2. 2. 5. Freedom to buy – Work on qualifications with Government or redesign to meet safety norms. Population with personal discretionary income. Total Population – 100 Lacs People who buy Books – 10 Lacs. %age of amount spent on beverages %age of amount spent on alcoholic beverages. 4. Space Level: World / India / Region / Branch / Area / Customers Time Level: Yearly / Quarterly / Monthly…. 4. Access – New distribution thrust or price change. %age of amount spent on beer %age of amount spent on “Light Beer” 43 . Total Population of the Country – 100 Crores Less Groups that would not buy books (Illiteate or Children…) – 70 Crores. Chain Ratio Method (“Light Beer”) 1. Suspect Pool – 30 Crores. 4. Average Book Buyer buys – 3 Books Average price per Book – Rs. 200/-. Number of customers likely to buy or made to buy (through promotions). Types of Demand Measurement Product Levels: All Sales Industry Sales Company Sales Product line sales Individual Product Variants. Total Market Potential – 10 Lacsx3 booksx200 = Rs. 200 = Rs. Total Market Potential Maximum sales that can be achieved. Identification process as to who are likely to buy. 4. 3600 crores. 3. 3. 6000 Lacs Arriving at the Customer Base for Books 1. 3.Options for Marketers 1. 2. Low Income Group (who do not read books) – 9 Crores. 6.

Forecast vs actuals. – ASM – BM – HO Issues of Optimistic / Pessimistic Cushions up their sleeves – lower quotas. Obtain a directory of manufacturing establishments. Advantages – Better insights into trends / Commitment leading to confidence / Grass root estimates is detailed by size and variants.96 % of India sales (weight assigned .28 % of India population (weight assigned . 44 .96)=.2(2. Survey of Buyers Intention Research firms are engaged in surveys. 5.28) = 2.04 % of country drug sales might be expected to take place in Patna. Suppose Patna has 2 % of disposable income (weight assigned . Suppose Patna has 2. of lathes per rupee value turnover.3) 3.3(1.04 Thus 2. 3. Frontline may not be aware of larger economic dimensions (GDP/Petrol Prices / Interest rates etc. Suppose Patna has 1.0)+. No.Market Build-up (Preferred by industrial goods) Requires a list of customers… Suppose you are selling lathe machines Aim is to list all potential buyers. 4.2) . 1. 2. Government Department of Industry Look at relative growth rates: Industry will grow at 10 % Airtel will grow at 12 % Tata will grow at 8% Hutch will grow at 12 % Reliance will grow at 8% Look at research reports of audit.5) 2.8 % of India’s population – a single factor would mean Patna to contribute 2.00 Sales Force Estimates Sales Rep.40 Good Possibility 0. of lathes per ten employees No. Therefore you assign a weight to each factor 1. But Single factor is not enough… Sales are also influenced by per capita income Multiple-factor index Method (Consumer Goods) Industry Shares & Market Shares Identifying competitors and estimating their sales: Sources: Industry Trade Association. Multiple-factor index Method (Consumer Goods) Here market potential is directly related to population size.20 Fair Possibility 0.00 Slight Possibility 0. Drug Example: If Patna has 2.60 High Possibility 0. Who are they – Workshops engaged in machining work.) You may need to link KRAs – eg. For Example – Automobiles: Question: Do you intend to buy an automobile in the next six months ? Purchase Probability Scale: No chance 0.5(2.80 Certain 1. 6.28 % of Drug Sales.

A good sales person can be terrific performer but not necessarily a good manager. Past Sales Analysis Trend analysis Sales versus consumer expenditure Quarterly fluctuations / Seasonality Projection Extrapolation or exponential smoothening Avg. They look at the individual and then fit him into the position most suitable for him. More and more companies prefer to have coffee-table chats instead of interviews – they do not seek to fill a position. This is how an old joke goes: “Have you heard about Bill ? He couldn’t sell anything at all. Sales people have to deliver every day This requires unique capabilities – most of us would want to produce results on our own terms. It is about finding where do the individual’s strengths lie.Expert Opinion (Delphi Technique) Dealers / Suppliers Marketing Consultants Trade Associations Govt Agencies Economic forecasting agencies They can be subject to strengths and weaknesses: Therefore Group of experts / Exchange of vies / Brain storming assumptions. They made him a manager !” 45 . Past sales vs more recent sales LY SPLY Last three months Oct Nov Dec 100 90 100 110 120 90 100 90 80 90 Key Learnings Developing MIS and Decision Support Systems. Sales Analysis / Cost Analysis / Sales Audit Marketing Intelligence Forecasting – Types of demand and methods of measurement Multiple factor Index and Trend Analysis. We need space and time to ourselves. Sales Management Selection & Recruitment Recruitment & Selection It is about selecting the ‘right-fit’.” “Did they fire him ?” “No.

He fumbled at diplomacy. He took time to play golf – with customers. He was ready to listen and respond. Before long Low morale and people left Sales numbers became off target “What worked for Anshul as a Sales Representative worked against him as Sales Manager. They had all necessary social graces for a refined life in Washington. Terrific Sales People are promoted Anshul. General Grant was an exception General Grant was fighting battles and winning them. But they did not have generals “who could command” and “who loved to fight”. General Grant could pick superb battle commanders for the battle field. more money and more factories. Moral of the story: “A great general can make a poor president” Success – Myths & Relity Myths: Some people are successful others are not. In Anshul’s mind he was not a workaholic. a terrific sales person became a sales manager and his trouble began. If you are successful in one role. He wanted people to work round the clock seven days a week – After all that’s what Anshul did. As a result of subsequent victories. The more refined military leaders found Grant vulgar. General Grant became a war time hero.Contexualizing through history Do you have the right stuff to be a great sales person During the War in the US. they were getting kicked off. Anshul startd entertaining his sales rep’s customers. tact and finesse. He was suited for military engagements. Lincoln’s generals were good peace-time leaders. He went for vacations and dinners – with customers. He thought he works for his sales people rathern than the otherway round.” 46 . Great sales people do become sales managers but turn into appalling managers. He had a strong desire to grow the nation.” Success Stories Shyam was a successful Representative and a Sales Manager He had a natural interest in developing people. but did not have the expertise to do accomplish his goal. you will be successful anywhere. Anshul did not count all these as work. But Lincoln recognized Grant’s willingness to fight and elevated Grant above his other military chiefs. Reality People who are successful in one job are average performers in others. Successful people have some habits to flourish. But he picked the most incompetent cabinet. the North had more men. “The same strengths that built relationships with customers helped him build a team. the Republican party nominated him to encash his popularity and General Grant became the President. He complemented his best performers. During war. General Grant as President Many scholars view Grant’s administration as one of the worst in American history. General Grant was not popular – questionable drinking habits and checkered past…. After Lincoln was assasinated.

I get a kick out of helping others succeed. You have fire inside you – it dwindles but rekindles quickly. What are your reasons Reasons for poor sales managers More control and autonomy I deserve a promotion. I like others to reach their objectives. Activator “When can we start ?” Impatient for action. Themes of Strength Finder Arranger Best configuration possible – very methodical Will often ask others “How can you keep so many things in your head?” Competitive Rooted in comparison. “It has to be done”. How you relate to or impact different set of people. Can you sit on the sidelines and watch others play or will you grab the ball. Futuristic “Wouldn’t it be great if……” You love to peer over the horizon. Empathy Sensing emotions of others. My company wants me to take the job. Restorative Loves to solve problems. Adaptability Responds willingly to demands. Themes of Strength Finder Ideation / Intellection Fascinated by ideas. Only action can make things happen. Focus “Where I am headed ?” You need a clear destination. 47 . Learner Love to learn. Don’t resent sudden work. Dliberative Careful. Achievement once it happens. Responsibility Ownership for anything you commit. Themes of Strength Finder Achiever Everyday starts at zero . I like working with talented perople. “Do you put in practice ?” Maximizer Excellence.No Magic bullets People achieve through configuration of talents. Reasons for best sales managers I enjoy developing others I enjoy building a team. Has to outperform others. Analytical “Prove it. More time in office. not average is your masure. it becomes history.tangible results to feel good. I have been sales rep for ten years. Likes contests because they make you a winner. I am tired of daily pressure. Vigilant and a private person Walking with care Themes of Strength Finder Discipline Your world needs to be predictable You want to feel in control Structure / time-lines / routines keep you going and in control. Exercising the muscles of your brain.” Objective and dispassionate. Show me why what you are claiming is true.

Where will this person be found ? Employment agencies / Advertisements / Educational Institutions / Employee referals / Internal transfers 4... Strategic “What if this happened” What if…. 7. Winning Others Over Enjoying the challenge of meeting new people. Therefore choice of candidate becomes critical – ‘Down-to earth’ vs ‘Upwardly Mobile’.Themes of Strength Finder Self Assurance You have faith in your strengths. Which person is to be recruited out of the selected applications ? Education / Experience / Family background / Present financial situation / Health / Leisure interests / Ambitions & Future Plans.Select …. You are drawn towards them – you want to know their names In your world. You try that they start liking you. 3. Issues of ‘head-hunting’ at every level ‘Market Anchor’ used to retain good people. 6. Strike. Number of recruits required Recruitment sources Recruitment Needs / Recruitment Costs Size of sales organisation Rate of turnover Forecasted sales volume Government Policies Personnel Policies of competing organisation Organisational personnel policies – ‘Life-time employment’ or ‘Hire for value’ 48 . What sort of person would do this job successfully ? Intellectual Abilities / Motivation / Specific Attainment / People Skills 3. 4. 5. 2. 8. Recruitment What is Recruitment: “Recruitment involves seeking and attracting a pool of people which qualify for job vacancies. Important to determine: What job needs to be done What kind of a person will do it best Selecting Everyone wants to have Corporate Tendulkars Selection is an accurate estimate of success or failure Process – Any one or a combination depending on need Prlims / Application (with details and even statement of objects in some cases) Interview / GD / Tests Negotiation of compensation / Internal Fitment Reference checks – How ? Physical medical checks Recruitment Policy To make the process smooth and credibility with the prospective employees. Similar to confidence. you have only friends. there are no strangers.” Fitment – Good person but not suitable for the sales job that needs to be performed. Sequence of Recruitment Process 1. What kind of job is to be filled ? Main Role / Accountabilities Job Description: Name of the Job / Who is the boss / Responsibilities / Accountabilities 2. Determinants of policy Size / Internal or Outsourced / Costs Sequencing Guidelines or a checklist Sources – Agencies / Direct / Internal Transfer / DoubleHatter / Campus recruitment / Ongoing Dialogue with a set of prospects Job Profile giving principle accountabilties Job specifications – What sort of person we require Technical Competencies / Soft Skills Factors Involved in Recruitment Policy 1. 9.

Testing 6. Rating and employment offer Basis of Selection Selecting People Technical Competencies Managerial Competencies (Subject Knowledge) (Soft Skills) Territory Interpersonal Channels Distribution Field Force Reflecting on Self Leadership Paradigm Multifaceted Interviewing Techniques Structured vs Unstructured – No hard and fast rule Value judgment – Inherently ‘Qualitative’ and subjective Typical Questions: Tell us something about yourself ? Introduction (To break ice) Education – Ability to retain knowledge Employment – Achievements – What difference have you made (Quantitative validation of the qualitative judgment) Other interests – Awareness check (Open to learn ?) Patterned / structured provide aids to the interviewer thereby making it relatively scientific – Rating scale. Preliminary Interview A sorting out process for both parties 2. Reference Check 5.. Physical Examination 7.Selection A set of successive ‘screens’ 1. 3. Formal Application A history sheet of personal information / education / employment and so on…. Interview – formal or informal 8. Rating scales are only indicative Interviewing Techniques Psychological Tests Aptitude – Ability to adapt and learn the job or skill Personality – Check of value system – Intellectual honesty (Do you cross the red light ?) Achievement Test – Indepth knowledge versus surfacial knowledge Attitude is everything – 1 % knowledge & 99 % attitude Attitude to life / Determination to succeed / Desire to make a difference Not a parking place Placement & Future Orientation including Introduction Shorter Honeymoon periods Probation a mere procedure Assigned responsibilities – Written document of key responsibilities and KRAs Easier to recruit than retain – ‘Turnover issues’ Roadmaps giving milestones of achievement and progress Challenges linked to reward Cannot be ambiguous – Never a false ‘promise’ Key Learnings – Recruitment & Selection Recruitment The right fit for the right job / Seeking and attracting talent for job vacancies / ‘Market Anchor’ / Recruitment Policy / Sequence of Activities Selection At best it is an accurate estimate. Interview Structured / Unstructured 4. Set of successive screening Basis of selection Interview techniques Placement 49 .

dependability. qualities of leadership etc.Recruitment Sales Management Training & Evaluation What is Recruitment: “Recruitment involves seeking and attracting a pool of people which qualify for job vacancies. the oral test alone can bring out or disclose his overall intellectual and personal qualities like alertness. While the written examination will testify the candidates’ academic knowledge. ability to take decisions.The Supreme Court about Examination: The Supreme Court on Interviews: In our opinion.” Fitment – Good person but not suitable for the sales job that needs to be performed. Therefore choice of candidate becomes critical – ‘Down-to earth’ vs ‘Upwardly Mobile’. resourcefulness. capacity for discussion. Issues of ‘head-hunting’ at every level ‘Market Anchor’ used to retain good people. “The very concept of examination justifies a minimum as bench mark for passing. the interview is the best mode of assessing the suitability of a candidate for a particular position. Important to determine: What job needs to be done What kind of a person will do it best Selecting Everyone wants to have Corporate Tendulkars It is an accurate estimate of success or failure Process – Any one or a combination depending on need Prlims / Application (with details and even statement of objects in some cases Interview / GD / Tests Negotiation of compensation / Internal Fitment Reference checks – How ? Physical medical checks Basis of Selection Selecting People Basis of Training Identifying Gaps Technical Competencies Managerial Competencies (Subject Knowledge) (Soft Skills) Territory Interpersonal Channels Distribution Field Force Reflecting on Self Leadership Paradigm Multifaceted 50 . further requirements are necessary for assessment of suitability of the candidate” In the last session…. In addition..

Training and need assessment 4. 6. Typically Training can involve the changing of skills. It is a learning experience for the sales force. Attainments – education / experience. It seeks a relatively permanent change in an individual that will improve his or her ability to perform on the job. 2. In a changing world. Deposition – maturity and sense of responsibility Personal status / hobbies / interests How to go about training Aim (Why) Content (What) Method (How) Execution Who. Helps in personal growth and prevents human obsolescence It is a process of providing the sales force with specific skills required for their performance. It is a sequence of programmed behaviour and the application of this knowledge to the work environment. attitudes. it is imperative for an organisation to readapt the products and services produced It is critical that organisations maintain a viable and knowledgeable work force. knowledge. new skills and new knowledge acquisition is imperative – ‘Degrees need to be renewed through MDPs & Executive MBAs Learning is a life-time engagement – ‘Learning organisation’ Job Description Title of the job – SR / SM Duties and responsibilities Reporting relationships Specific requirements – travel for 15 / 20 days Location of the job – place of work Degree of autonomy – limits of authority.ROI What is Training 1. or social behaviour. Aptitude & Qqalities – Communication skills and motivation level. Evaluation of a training programme 51 .Job Description & Personnel Specification Sales Training & Evaluation The term ‘training’ relates to acquiring skills and knowledge Knowledge is the foundation and skills methodologies to perform In a fast changing world. Personnel Specification Physical requirements – can withstand travelling. What is training process 3. Specific aims of management.When & Where Evaluation Gap identification through competence mapping Training Background: After acquisition. Organisational need-connect Effectiveness – Lecture / OTJ / Accountability through daily evaluation Process of assignment of responsibility / venue / design / delivery Mechanism to assess . Design and conduct training 5. it is necessary to raise the skill levels and increase the versatility and adaptability of employees.

Training need assessment Organisational level analysis Structure. Mission…. Principles of Learning 1. Listing the standards of work performance related to the job. Determining Training Needs – Methods Survey By Bureau of National Affairs. Determine the kind of input required to address specific needs. Objective of training Survey approach: A study of customers to know Where is the gap ? Behaviour – values and ethics Knowledge – content / product / general awareness Relationship – interpersonal sensitivity Communication skills….Culture. 2. 2. 3. Washington DC 4. Task analysis… Individual level analysis Performance gaps Objective of training Authors: William Berliner and William McLarney 1. 5. 4. Comparing the actual performance against standards. Training and Learning Learning as a result of experience – direct experience by doing or indirectly through observation. Interviews Other Percentage 49 24 19 16 10 6 15 LEARNING MUST BE TRANSFERABLE ON THE JOB. It is difficult to measure learning per se but we can measure the changes in attitudes and behaviour that occur as a result of learning. Determine the part of the job that creates the deviation of standard. responsibilities or tasks of the job under consideration the basis of the job description guide. Method Observation & Analysis of job performance Mgmnt & Staff Conferences Analysis of Job requirements Consideration of changes Surveys / Reports etc. 52 . 3. Task level analysis Job requirements. Listing the duties. Learning is enhanced when the learner is motivated Learning requires feedback Reinforcement increases likelihood that learned behaviour will be repeated Practice increases a learner’s performance Break the job in parts and practice each part independently..

I would get much more accomplished. Reporting procedures and standards of reporting Knowledge of products. 2. Types of Training Skill development training Induction training OTJ Training On the job Training Ongoing and continuous process. “Let’s meet next week to begin your performance review for the past three months” Effective: Certainly. And I will supply you with copies of major activities/accomplishments for the period. Types & Methodologies Types Cross-Functional – job enrichment and appreciation. We have just completed the last one. their features and benefits Knowledge of manufacturing units Handing over stationery and kit etc. Literacy training – Mastery of basic skills Methodology depending on Training programme objectives Time available Participants level of understanding Financial resources and equipment required Size of the group – Group versus trainer. Improvements through mentorship Job related skill development – review of calls made Responsible behaviour versus irresponsible behaviour Inter-personal skill development 1..Transational Analysis Sales Person’s Career Cycle Preparation: New and learning environment Development: Productive Maturity: Leveling of productivity Decline: Serious concern for re-orientation Adult / Child / Old States….(CHILD) 2. (ADULT) Ineffective: Why now. 1. 3. Steps to a call: Planning and preparation Approach Stock check Brand talk Objection handling Close Detail work 53 . Types of Training Induction training OTJ Training 1. Induction (Joining time) Company Profile Position in hierarchy and job responsibilities Introduction to the administrative staff and accounts staff. Team training – high technology products / SAP Creative training – Mindset changes. 4. If you would leave me alone.Organisation’s Internal Environment . 2.

quality of accompanying staff. 2.How you wear it. 4. Step 3 – Stock-check at the point of sale Step 4 – Brand talk 1. 4. Step 5 – Objection handling Step 6 – Closing the call Queries and objections are natural and need to be answered. Seek opportunity to close the sale Ask for the order after summarizing your sales talk. 7.. Product feature reinforcement – “Milkmaid” Convince him about your competitive advantage Convince yourself about the product – ‘features’ and ‘benefits’. If all you sold during your last visit is still lying unsold – what will you do ? If half of it has been sold ? And so on …. 3. 1. Contingency plan 1. 6. 54 .Step 1 – Planning and preparation Step 2 – Approach 1. Peronality – Grooming / Dress code . Manufacturing dates / MRPs / Price Lists Sales Kit / Samples / Weekly off of the market you are going. Interest.. 2. 5. The alternate sale – shall I send you ten units or five ? Conditional – I will do this to send you so much of stock. Greeting (How you say it ?) Sikh – Sat-Sri-Akal North – Namaste / Jai Siyaram Muslim – Salam / Adab-arz-e Bengal – Namaskar South – Namaskara Marathi – Ram Ram Gujrathi – Jai Sri Krishn Kem Choo 3. check the condition of the vehicle. Straight denial – Sometimes necessary. 4. Know the shelf of your stocks – create one if not there.) Hidden objection – the customer may not come out with the objection clearly – seek and probe. Desire and Action rather than tricking for sale achievement. 8. loading of stocks. Prepare day’s target in line with month’s target Decide on route / market as per your route plan. Use Attention. Listen and do not interrupt Agree and counter Repeat the objection in the shape of a question (Do you mean to say…. 3. Say something good about the product – not something which will lead to productive call. 4. POP materials. 5. 3. What is his need – avoid underselling or overselling Design your sales talk in keeping with the stock levels. 2. “Loose-tie” versus “straight-jacketed” What does the customer expect What is the custom / precedent / practice Method – Communication style (How close you are ) Can you call by name – genuine acquaintance Repeat your name to be remembered. 5. 3. 2. 1. Check previous visit’s report and check if all complaints are addressed Check available stock If going with a van.

if any. gaming. background and experience and sales related marketing policies. programmed learning. What ? When ? Where ? Method of training involves how to impart training to sales persons. Data bank analysis Comparison with similar outlet-type Corrective action.AIM Aim in terms of initial and continuous sales training need is identified after analysing job specifications. It mainly comprises product data. 3.Step 7 – Detail Work Follow the ACMEE Aim (Why) Content (What) Method (How) Execution Who. Specific aims of management. Step II . Organisational need-connect Effectiveness – Lecture / OTJ / Accountability through daily evaluation Process of assignment of responsibility / venue / design / delivery Mechanism to assess .Content Content of training is derived from the specific aims of management. markets and company information Step III .When & Where Evaluation Gap identification through competence mapping 1. conference. 6.ROI Step I . Transaction listing. case discussion. Important methods are lecture. 55 . role playing.Method Step IV – Execution of training Execution of training is basically the answers to the three questions. 5. sales technique. 2. Merchandising and displays Execution of delivery. demonstration. 4.

Step V – Evaluation of Training Evaluate for lasting impact ensuring that the effort placed in the training programme would pay off long after sessions ended. “The Elephant’s Child” Just-so Stories Key Concerns of Sales Managers Sales Management Meeting & Contests Goal Setting – Audacious ? Achievement rare & Partisan Behaviour Quality Manpower being pouched. especially by Insurnace / Banking – before they join and get trained…. Evaluation Performance-linked packages by trainers If jobs are at stake why not consultancies Deliverables can be determined prior to the commencement of training MS / Change Pre & Post Training Qualitative improvements can also be measured Key Points Training imperative due to jobs becoming sophisticated Training seeks change through learning Effective training programme to be consistent with learning principles Study Organisation’s training needs Formal training methods: OTJ / Off-the-job Management Development: Coaching/ Understudy assignments/Job rotation/Committee assignments Key Learning of the session “I keep six honest serving-men (they taught all I know). Their names are WHAT and WHY and WHEN and HOW and WHERE and WHO. Business goals & strategic framework unknown to frontline Do not know ! No one has ever told us ! Focused on ‘selling in’ Metamorphosing warfare with marketing battles – Not understood More informed teams were found dynamic and their products moving faster off the shelf 56 . R.Kipling.

What brings people to sales ? Needs for personal growth Recognition Fast-track promotions Financial rewards Higher responsibilities Needs fulfilled = Job Satisfaction How do you stimulate these needs Sales Meetings Sales Contests Job Satisfaction Vs Job Performance Does job performance lead to job satisfaction OR Does job satisfaction lead to job performance Well. No simple answers here…. Concern for people vs Concern for work Leadership styles.Expectations from people What will make sales personnel strive beyond a fair day’s work: Stretch Passion Self-starter Self-directed They will meet expectations only if they have job satisfaction. Give Opinions – Candid feedback to others Seek information – task-relevant facts Summarize – Pulls ideas together into a perspective Energize – Stimulates when interest drops. Roles Leaders Play: 1. Job Satisfaction Job Performance Motivation & Performance What is motivation ? From above: Unhappy with current performance leads to motivation From self: Can decreased job satisfaction stimulate job performance. 57 . Task Specialist Role: A role in which an individual devotes personal time and energy to helping the team accomplish its task. there is a positive relationship – Direction can be anyway.. Leadership Roles In successful team meetings the requirements for task performance and social satisfaction are met. Behaviours of a Task Specialist: Initiation – proposes new solutions.

Vertical Teams: A formal team composed of a manager and his subordinates through chain of command.” 1. Harmonize – Reconcile group conflicts. People in team share a performance goal – design a new software. Special Purpose teams: A project of special importance and creativity.Leadership Roles 2. Effectiveness measured indirectly – financial preformance Discusses. – Teams can be large consisting of about 15 people or even All India teams. Compromise – May shift own opinion to maintain team harmony. sometimes permanent created to deal with tasks that recur regularly – CECs. Problem-solving team Meet: People from the same department meet to find ways of improving performance. Jokes when the team is tense. 2. 3. Formal Teams: Created by the organisation as part of the formal organisation structure. Horizontal Teams: A team consisting of same hierarchical level but from different areas of expertise. – People standing in a queue or in an elevator do not interact and therefore do not qualify for a team-like interaction. Self-Directed teams Meet: People multi-skilled who rotate jobs to produce an entire product or service often supervised by an elected member. Leaders are responsible for creating teams What is a team ? “A unit of two or more people who interact and coordinate their work to accomplish a specific goal. build a car or students doing an assignment in groups Socioemotional Behaviours: Encourage – Are warm and receptive to others’ ideas. Follow – Go along and agree to others ideas. Committee: A long lasting. 2. decides. Reduce tension – Bring in humour. Praise others for their ideas. Teams Share or rotate leadership roles Individual and mutual accountability (to each other) Specific team vision or purpose Meetings encourage openended discussion and problem-solving. Difference between groups and teams Groups Has a designated strong leader Individual Accountability Identical purpose for group and organization Runs efficient meetings Types of Teams 1. Two or more people are required. 3. 58 . Types of Teams Greater autonomy to employees The idea of a team meeting is to increase the participation of low-level workers in decision making. decides. People in team have long interaction. delegates work to individuals. Effectiveness measured directly by assessing collective work Discusses. Socioemotional Role: Support team members’ social needs. The ultimate objective is to improve performance. shares work.

1. Stages of Team Meetings Forming: Characterized by orientation and acquaintance Possibilities of finding friendship – uncertainty Trying to know ground rules – “expectations” (Will I fit in. norms and values (Leadership) Performing: Focus on problem solving and team’s accomplishment Cooperation Facilitating task accomplishment (Leader) Adjourning: Members prepare for ending the meeting Especially in the case of committees and task forces who have limited roles to perform. Socioemotional Behaviours: Encourage – Are warm and receptive to others’ ideas. The Accommodating Style: When maintaining harmony is important. Task Specialist Role: A role in which an individual devotes personal time and energy to helping the team accomplish its task. What is acceptable) Storming: Individual personalities emerge People become assertive Conflict and disagreement Leadership – encourage participation and surface differences Stages of Team Meetings Norming: Conflicts developed during the storming stage are resolved. Scarce resources – Desire to achieve lead to seeking resources. Goal Differences – People pursuing conflicting goals. Praise others for their ideas. The Avoiding Style: Neither assertive nor cooperative. Socioemotional Role: Support team members’ social needs.Member Roles In successful teams the requirements for task performance and social satisfaction are met. Communication Breakdown . The Collaborating Style: Bargaining and Negotiation to reach a win-win situation.” What are the causes of Conflict ? 1. Compromise – May shift own opinion to maintain team harmony. The Compromising Style: Moderate amount of both assertiveness and cooperativeness. The Competing Style: Assertiveness to get one’s own way. this can be used when quick and decisive action is vital. However effective team members vary their style of handling conflict to fit a specific situation. Managing Conflict What is a conflict ? “Antagonistic interaction in which one party attempts to thwart the intentions or goals of another. This can be resorted to when the issue is trivial. Reduce tension – Bring in humour. Time pressures lead to compromises. Power and Status Differences – Hierarchy and status 6. 3. Jurisdictional Ambiguities – job boundaries and responsibilities are unclear 3.misunderstandings 4. Follow – Go along and agree to others ideas. 5. Harmonize – Reconcile group conflicts. Member Roles 2. Styles to Handle Conflict Team members are either assertive or cooperative. 59 . Jokes when the team is tense. Roles Members Play: 1. Give Opinions – Candid feedback to others Seek information – task-relevant facts Summarize – Pulls ideas together into a perspective Energize – Stimulates when interest drops. Emotional for some – Members may regret end of the meeting. Establishment of order and cohesion Clarifying team roles. When goals on both sides are equally important. Behaviours of a Task Specialist: Initiation – proposes new solutions. 4. Personality Clashes – People do not see eye to eye. 2. 2. 5. especially if there are unresolved issues.

a sales meeting can send strong signals and mesages Communication prior to the Meeting is the key Why are we meeting ? – typical reactions…. Defining the specific meeting aims Deciding the meeting content Determining methods of conducting the meeting Deciding how to execute the meeting. communication or lack of communication is the fundamental issue. 4. the other group loose on power and resources. Purpose of Meeting . travel and subsequent brief-meets. In effect. “It is a necessary evil…a ritual to be performed” “Boss has to save his job” “It is an eye-wash” “They are wasting my time !” In most cases. Coordination Costs: Groups need time getting ready to do work and loose on productive time in preparation. Sales People are out in the field Without day-to-day supervision No fixed hours Own interests Sales Meetings are occasions to stimulate people and raise their standards. 2.Interaction Open environment Stimulate questioning Challenge the Leader Leadership task to provide the right environment Performance is a result of pushing for results within the organisation One employee demanding from the other No fiefdoms – Managers are possessive of information More aware person is a more educated – Economic Times reading……… 1. It is all about leadership and balancing of concern for task and concern for people. ‘success stories’ and ‘failures’ Take the example of a typical MBA class – “case studies” and the fear of failure in the class. There cannot be an “excuse for holding a meeting” Also important would be: Minutes of the meetings Action Plans Sales Meeting is a platform for communication Brings about clarity and cohesion of action plans A tool for periodic review Team building exercise An effective tool to make information available to a large number of people Examples of ‘excellence’.” “How can I contribute” ? Some frequently observed comments: “It is a bloody circus”.drive performance What drives performance . Free Riders: A person who benefits from realignment due to contiguous location. 5. 2. Deciding how to evaluate the meeting.Potential Costs of Meetings Power Realignment: If suggestions of one group prevails. 60 . 3. not again…. How do you go about it ? 1. Field Sales Meetings are about getting together Are for communication and motivational purposes. “Oh no.

.Noble intentions are also there……… Noble intentions are common…… Boss’s concern for work professional approach. Realistic 3. Consider a Pricing Decisions – Content should seek forecasting with the new price. Theory of ‘Reciprocity’ ‘Work-shops’ and Outside Speakers to address monotony but check ‘relevance’ Types of Meetings Objective-Linked and Typical Meetings National Sales Conference – Annual Regional Sales Meetings – Quarterly Review Branch Sales Meetings – Monthly Review Local Sales Meetings – HQ Meetings “Concept of Invitees”……….An outline e. Method – Time-frame for each topic – “No free-wheel discussion Execution – Venue / Menu / Speakers / Trivia like seating arrangement Evaluation – Criteria / What shall be the outcome / Have we achieved the desired outcome / Feedback and improvement.. Contents – Priorities and schedule of time for each topic Presentations by field staff and HO staff – it is no performance appraisal. Over-reaction can be dangerous and send wrong signals.g..g. But does the boss know how to call for a meeting ? Communicate. Content – An outline of agenda / Sets expectations. new product launch / competitive reaction / sales promotion initiative / advertising campaign / New reporting systems etc. In sale of goods . Communicate and Communicate…. What gives rise to meetings ? . Competition bench-marking stimulated by marketing intelligence Perfect reasons as far as we have our aims 1.Content List of things: . Sequencing – Brief by MD to add seriousness and setting-up the stage…. This requires research: Why is competition launching What is their strategy How are they going to launch – “Noise levels” React or Watch and react…. “What-If” scenarios. On-line / Real Time Meetings Telephonic Dinner at home Traveling together and the list goes on A-C-M-E-E approach Aims – Objectives e. “Competition launching a new product” Informational Reduces Anxiety Counter Moves for a competitive launch – when and how.AIMS Uncovering of new insights Bosses tend to read… and get ideas. Make terms of reference clear……. An employee essentially wants to learn and grow with the organisation. Attainable Questions to Ask: What will be the outcome ? Will the outcome be profitable ? Priorities of time ? Justification What is the agenda ? . 61 . Both have common goals… Issue is knowing that they have common goals. Right 2. Sales promotion to cushion the effect of price-hike etc. competitive reaction.‘conditions of sale’ In contracts – ‘The use of words Whereas’ and definitions ‘DKDK’ phenomena Grand Plan for the Meeting Doing small things well Clarity on specific purpose to be achieved prior to the meeting.

Let’s get on with this………. Time frame to be examined – wider content versus focused points. Boss: “My job is over. jamboree event….Method Methodology depending on the aim. Pre & Pot Meeting . Interactive – “Brain-storming” – how long ? Planning – Pre-meet formats to be circulated. away from ground reality. Mix of methods Success dependent on Execution Speakers – who will initiate Day .g.boss had nothing to do” Individual Interactions Conferencing with each sales person Inter-personal touch for commitment What are expectations Resources & Help critical for success How much independence How well they are doing – “Feedback” Basis for future rewards – incentives (Shortterm) Annual appraisal (Progress to promotion) Contests A special campaign to achieve ‘focus’ sessions Meeting site Room arrangement based on active participation or Listening. now it is for them to do it” Subordinate: “It was the usual aimless.How do I conduct a meeting ? . Short meeting for a briefing – what else can be done.Evaluation Often neglected. “Operation Volume” Shift ‘comfort-zones’ of routine work To achieve ‘stretch’ – Do more rather than less . Noting Depending on number of people: Round Table / Oval Shape / British Square / Inverted “U-shape” or Work-shop…. Let’s achieve a million cases today and so on CONTESTS 62 . To the limit and beyond To bring about a team-spirit and add excitement to the mundane job The idea is to provide impetus “Shahbash Jawan”……….

Issues with Contests Number of Prizes Can you make everyone win ? Do Consolation prizes have adverse impact Element of Bias Duration of Contest Interest levels go down with longer durations Too short a duration will lead to temporary gains and then proportionate decline Series of promotions – pre-planned as a part of the yearly calender but not cast in stone Short-term and Long-term gains … People Management Sales Management “Our strength is the quality of our people” “Our people are our most important resource” Increasing recognition of the value of human resources. 5. New Customers – New Geographies Push slow-moving items from the portfolio or achieve a more profitable mix Seasonal slump Productivity of sales personnel – Own or Trade Partner’s Improve top-of-mind salience during a TV Campaign To involve trade-partners in the marketing process of the brand Trade partners can fall in love with your brand only if you show the passion Objections to Contests No preferential treatment to ‘sales function’ High calibre people consider it undesirable because they are self motivated Short-term and customer focused and not consumer focused leading to over-stocking Generates disappointment in large number of losers versus small number of winners Narcotic effect – “I will sell when the contest is announced” – scheme-brands The answer lies in a balanced view. 6. There are no black and white answers. 4. 2. Value lies in the “strategic-fit” Appraisals 63 . Kinds of Prizes Cash Prizes – Incentives (Monthly & Cumulative) Substantial amounts are effective Merchandise – Items of interest to the audience Evidence of achievement to be shared with family Travel – Conferences / 5 star stays / Holiday resorts Travel – “Come fly with me contest” Special Honour – Letters of appreciation. Stimulating for progressive & mobile employees 3.Objectives of Contests 1. 7. Salesman of the year award etc.

recording the assessment and providing feedback to the employee. Sports Broadcaster: . It is about rewarding merit and reprimanding mediocre performance. Apprise concerned sales persons concerning the acceptable elements of his performance. • Partner in business improvement • Learning • • Continuous learning. rules. lateral career movement.Goals Changing Social Contract New Contract Employee Old Contract • • • Attract an effective sales force Number Planning Job Analysis Recruitment & Selection Maintain an effective force Compensation / Benefits Employee relations Terminations Develop an Effective force Training Development Appriasals Employability. 64 . Use of feedback that can reinforce good performance – training & development. It is indeed critical to assess each relevant performance dimension.Communication . Feedback: It is a conversation about how much meaning you and I can create.Knowledge dimension (facts.People Management . players) . And also describe performance areas that need improvement. Accurate assessment based on rating scale. incentive compensation. personal responsibility. Assessing performance accurately We must acknowledge that most jobs and especially sales jobs are multidimensional.Colourful way of expression that interests the audience. MATCH MODEL Employee Contribution •Ability •Education •Creativity •Commitment •Expertise Company Inducements •Pay and benefits •Meaningful work •Advancement •Training •Challenge Performance Appraisal Raise: It is a transaction about how much money you or I can get. • Creative development opportunities • Challenging assignments • Information and resources Job Security A cog in the machine Knowing Employer Traditional compensation package • Standard training programs • Routine jobs • Limited information • Attracting an effective sales force Performance Appraisal The process of observing and evaluating a sales person’s performance. figures.

Deposition – maturity and sense of responsibility Personal status / hobbies / interests Basis of Selection Selecting People Basis of Training Identifying Gaps About the Exercise Do a self-appraisal The forms shall be given to you.Multi-dimensional form “360-degree feedback” A process that uses multiple raters. Fill the entire form. Behaviourally anchored rating scale (BARS) A rating technique that relates an employee’s performance to specific job-related incidents. Fails consistently to complete work on time. including selfrating. Homogeneity: A type of rating error that occurs when a rater gives all employees a similar rating regardless of their individual performance. Has no plan or schedule of work and no concept of realistic due dates. to appraise employee performance and guide development. Increase awareness of strengths and weaknesses. Job Description & Personnel Specification 9 6 4 3 Job Description Title of the job – SR / SM Duties and responsibilities Reporting relationships Specific requirements – travel for 15 / 20 days Location of the job – place of work Degree of autonomy – limits of authority. Attainments – education / experience. Guide employee development Rating Sales people Halo error: A type of error that occurs when a sales person receives the same rating on all dimensions regardless of his or her performance on individual ones. lack of interest and no planning at all. KRAs Be specific and quantitative as far as possible. Behaviourally Anchored Rating Scale – Work schedules Comprehensive plans. Aptitude & Qualities – Communication skills and motivation level. Usually satisfy time constraints with minor problems but time and cost overruns coming up infrequently. Communicates & and observes target dates. Performance Achievement Quantitative and use indicators. Technical Competencies Managerial Competencies (Subject Knowledge) (Soft Skills) Territory Interpersonal Channels Distribution Field Force Reflecting on Self Leadership Paradigm Multifaceted 65 . 1 Personnel Specification Physical requirements – can withstand traveling. Has a sound plan but neglects to keep track of target dates – frequently surprises.

This has been a very good year for me…. It is a negotiation that is taking place. Justify rating: Listing strengths and weaknesses Listing areas of improvement Development Plan Based on narration of areas of improvement. About the Exercise Both Appraiser and the Appraisee have agendas… Both have an overall rating in their mind. It has dynamics of behviour….About the Exercise Based on the narration of KRAs & Performance Achievement. rate on management skills and technical skills. Objectives of Next Year Which will become KRAs & Performance achievement for next year. There is a possibility of a change in the overall rating depending on how the process goes.. “I believe it should be very short interview. 66 . Oh you have done a terrible job this year …… About the Exercise Oh….” No…No… Let’s examine… this is a very important exercise for both of us…. About the Exercise Towards the end: Appraisee / Appraiser Interview to appreciate dynamics. It is a personal interview between the two people who have worked together. About the Exercise Appraiser and Appraisee have to prepare to the interview.

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