SALES MANAGEMENT

Chapter 1

‘Job of Sales Management’

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M a r k e t in g m ix

P ro d u c ts

P r ic e s

P r o m o t io n

D is t r ib u t io n

A d v e r t is in g

P u b lic r e la t io n s

P e rs o n a l s e llin g

S a le s p r o m o t io n

Sales management Planning Budgeting Recruiting and selecting Training Motivating Compensating Designing territories Evaluating performance
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Figure 1-1: Positions of Personal Selling and Sales Management in the Marketing Mix

Planning
Describing the Personal Selling Function

SALES MANAGEMENT MODEL Implementing Control

Defining the Strategic Role of the Sales Function

Designing the Sales Organization

Developing the Salesforce

Directing the Salesforce

Determining Salesforce Effectiveness and Performance

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Nature of Personal Selling
 It is a major factor in generating sales

volume.
 It is a part of promotion which brings

human element into marketing transactions
 It increases customer confidence in the

supplier, and simplifies the handling of individual customer problems.
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Does personal selling increases customer confidence in the supplier?
1.

Since the customer is dealing directly, it builds the confidence in the product, company, personal and procedure. Forms a basis of trust and confidence with the customers. Basis for long-term relationship/retention

3.

5.

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Personal selling makes possible for the buyer to act promptly
1. Unlike other means of promotion, it can work for a desired action by the customer immediately. 2. Sales person can place an order, commit for a purchasing plan next quarter or decide on an in-store promotion for the product

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Personal Selling Simplifies the handling of individual customer problems.
n n

Customize sales presentation Handle buyers problems and complaints on a individual basis Every customer is different, have varying needs This is a value-added service provided to the customer.

n

n

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Changes in Selling
(Selling is flexible and creative – not simply persuasive)
1. Today, salespeople are more of problem-

solvers, able to meet customer’s needs and conditions of individual; they built and maintain good relationship with customers.

3. Adopt to new market conditions 5. Sales people are involved in other aspects

also like, distribution, credit, customer’s use of promotion, pricing etc.
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Marketing Concept
n Customer orientation – shift from internal

company’s perspective to customer perspective. Understand the customer’s needs, attitude and buying behavior.
n Coordination of all customer related activities –

coordinating between all the customer service functions of the business.
n Profit direction – control costs and maintain

budgeted revenue/sales.

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Modern Sales Approach
1.Partnering – sales people share the same value as customers, mutually agreed ideas, anticipate and understand customers needs 2. Relationship selling – maintaining longterm associations with customers; stronger contact with the customer 3. Team selling – for large customers, sales people work with other company personal to provide a coordinated approach.
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contd..
4. Value-added selling – exceed customers expectation when providing service, e.g. providing after-sales service, installation facilities etc. Salespeople should go beyond selling and provide value added service. 5. Consultative selling – salesperson must adopt their products or services to address specific needs of the customers. Act as consultants

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Personal Selling in Marketing Mix
 Firm’s marketing mix – product, price,

promotion and distribution – is used to deliver solutions to individual customers.
 Marketing mix is a strategy which a company

utilizes to implement its marketing plan and pursue its marketing objectives.

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The Role of Personal Selling in Product Strategy
a) Sales person help specify desirable product

features and benefits b) Provide guidance in the product development phase c) They participate in product testing and test marketing d) Their input is valuable when it comes to product mix decision as they are very much familiar with the marketplace, competitors, and the customers
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The Role of Personal Selling in Pricing Strategy
a) Sales people and managers can ascertain

competitive pricing strategies.

c) Gauge market reaction to alternative pricing levels

and can advise senior management in pricing decisions.

e) They can be granted some discretion in adjusting

prices to market conditions.

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Pricing Strategies
n

n n

Cost Plus method – markup for profit is added to the products cost. Sales managers are responsible for keeping selling cost under control so that markup does not put the item in price disadvantage Demand Oriented method – based on the demand of the product and expected price. Competition oriented method – markup is based on the price the competitors will charge

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The Role of Personal Selling in Distribution Strategy
a) Channel of distribution is the route from the

producer to the end user, directly (ultimate buyers acquires the product from the manufacturer) or indirectly (user of intermediaries for e.g wholesalers/ retailers) b) A product is meaningless if it is unavailable to he customer at the right time, this is where the salespeople can facilitate c) They establish link in between the middle man

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The Role of Personal Selling in Promotional Strategy
a)

Promotion is the presentation of informative and persuasive message to a firms target market in an attempt to stimulate sales. Personal selling is an important aspect of this, along with advertising, publicity, and sales promotion.

c)

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Tasks of a Sales Manager
Analysis: review of firm’s internal sales record and sales peoples report, and keeping check of market trends. Note relevant environmental factors and conditions. Planning: Setting objectives for the firm sales efforts and mapping out strategies and tactics for achieving these objectives. Transmit objectives, strategies, and procedures to sales staff.
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Organizing: setting up of structures and procedures for smooth efficient execution of sales programs. Create specific job descriptions for these tasks and activities. Recruit and select personal for these activities. Direction: staffing and supervision day-to-day implementation of sales, policies and programs. Oversee the operations of the sales team to improve its performance. Issue the necessary directions and guidelines.
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Control: performance comparison of actual and planned sales results, reasons for deviation. Collect and analyze information

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External factors effecting Sales Management
1. New government rulings 2. Competitor cuts prices 3. New products introduced in the market 4. New distribution options 5. Telemarketing and e-commerce
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Rewards of Sales Management
i.

Sales managers get to know and work with variety of people inside and outside the company

iii. It is personally rewarded, and recognized my

others (tangible)

v.

Financial rewards

vii. Training and Development
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Why is Training of Salespeople important?
a. Keep them competitive b. Career development c. Built various skills mentioned above d. Adopt to change in external environment /

new trends e. Presentation and negotiation skills f. Awareness of languages and cultural differences in international selling g. Exchange of ideas

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Challenges for Salespeople
a. Have to satisfy varying customers needs c. Need to be patient and polite to the

customers d. Have to meet their budgets
f.

Their jobs are effected my changing market conditions, competitors activities, and economic factors.
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A Sales Quota Manager’s Skill Set

    

Willingness to Train/Coach Willingness to Make Joint Sales Calls Problem-Solving Making Presentations Answering Objections

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Win-Win Relationships

Sales person

Customers

Secondary decision makers

Company support staff

Management personnel
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Win-Win Philosophy
Win-Win People  Help others solve problems  Fix what caused problems  Make life a happening  Learn from the past, live in the present, and set goals for the future  Make and keep commitments Win-Lose People  See problems in solutions  Fix the blame  Let life happen to them  Live in the past  Make promises they never keep

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COMMUNICATION
Percent of Message
55%

What you see or feel Facial expression Dress and grooming Posture Eye contact Touches Gestures

What you hear Tone of voice Vocal clarity Verbal expressiveness 38%

7%
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Basic Rules of Etiquette
 Avoid temptation to address new prospects by

first name  Avoid offensive comments or stories  Do not express personal views on politics or religion  At business luncheons do not discuss business before the meal is ordered unless client initiates subject

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Relationship Building Guidelines
 Be genuinely interested in other people  Be a good listener  Encourage others to talk about themselves  Talk about other people’s interest

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APPENDIX

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STRATEGIC ACTION COMPETENCY
Dimensions
Understanding the Industry: • Understands the history and general trends in the industry and their implications for the future • Stays informed of and anticipating the actions of competitors and strategic partners • Identifies attractive market segments and their buying needs Understanding the Organization: • Understands the vision, overall strategy, and goals of the organization • Appreciates the distinctive competencies of the organization with respect to market opportunities and limitations • Understands how to marshal organizational resources to meet the needs of the customers Taking Strategic Actions: • Assigns priorities and making decisions that are consistent with the firm's mission and strategic goals • Implements specific account selection, retention, and dominance strategies • Develops an appropriate portfolio of account relationships • Considers the long-term implications of actions in order to sustain and further develop the organization • Establishes tactical and operational goals that facilitate the firm's 32 strategy implementation

COACHING COMPETENCY
Dimensions
Providing Verbal Feedback: • Provides specific and continuous performance and selling skills feedback. • Builds a feeling of appreciation and recognition by taking the time to acknowledge a job well done, an effort beyond the call of duty or an important victory • Reinforces successes and nice tries to support desirable behaviors. Role Modeling: • Leads by example, rather than decree • Provides role models, either themselves or others, and sharing best practices • Models professional attitudes and behaviors Trust Building: • Maintains good rapport with the sales team and fostering open communications, collaboration, creativity, initiative, and appropriate risk taking • Adds value through communicating relevant selling experiences • Helps salespeople to "look good" through two-way communications 33

TEAM BUILDING COMPETENCY
Dimensions
Designing Teams: • Implements an organizational architecture that will support teams • Creates a reward system that is fair within the context of a team effort • Coordinates team goals with the overall goals of the organization • Coordinates team activities with the requirements of functional areas within the organization Creating A Supportive Environment: • Hires people that will be successful in a team environment • Trains programs that encourage teamwork • Integrates the individual members of the sales team together to form a functioning and supportive team Managing Team Dynamics: • Understands the strengths and weaknesses of team members and using their strengths to accomplish tasks as a team • Facilitates cooperative behavior and keeping the team moving towards its goals
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SELF-MANAGEMENT COMPETENCY
Dimensions
Fostering Integrity and Ethical Conduct: • Has clear personal standards that serve as a foundation for a sense of integrity and ethical conduct by the sales team • Projects self-assurance and doesn't just tell people what they want to hear • Willing to admit mistakes and accepts responsibility for own actions Managing and Balancing Personal Drive: • Seeks responsibility, works hard and is willing to take risks • Shows perseverance in the face of obstacles and bounces back from failure • Ambitious and motivated to achieve objectives, but doesn't put personal ambition ahead of the organization's goals • Understands that goals are achieved through the success and development of the salespeople Developing Self-Awareness and Management Skills: • Has clear personal and career goals and knows own values, feelings and areas of strengths and weaknesses • Analyzes and learns from work and life experiences • Willing to continually unlearn and relearn as changed situations call for new skills and perspectives
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GLOBAL PERSPECTIVE COMPETENCY
Dimensions
Cultural Knowledge and Sensitivity: • Stays informed of political, social, and economic trends and events around the world • Recognizes the impact of global events on the market and the organization • Sensitivity to cultural cues and ability to adapt quickly in novel situations • Travels regularly and has a basic business vocabulary in languages relevant to the position Adapting Global Selling Program: • Adopts an appropriate sales force architecture for global accounts • Appropriately adjusts sales force measurement, competency creation and motivation systems to the local culture • Appropriate adjusts own behavior when interacting and managing people from various national, ethnic and cultural backgrounds
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TECHNOLOGY COMPETENCY
Dimensions
Understanding of New Technology: • Awareness of the potential for technology to increase sales force efficiency and effectiveness • Experience in using new technology • Attitude towards adopting new technology Implementing Sales Force Automation: • Knows what is to be accomplish and the benefits that are possible • Adapts personal management style and procedures • Fosters sales force acceptance and use of selling technology

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