You are on page 1of 35

Sales Management

Introduction to Sales Management

Sales - Definition
- A sale is the pinnacle activity
involved in selling products or
services in return for money or other
compensation. It is an act of
completion of a commercial activity.
- Sales is everything that you do to
close the sale and get a signed
agreement or contract.

Sales Management
According to American Marketing Association (AMA),
Sales Management means the planning, direction and
control of personal selling, including recruiting, selecting,
equipping, assigning, routing, supervising, paying and
motivating as these tasks apply to the personal sales
force.
Sales management is attainment of an organization's
sales goals in an effective & efficient manner through
planning, staffing, training, leading & controlling
organizational resources. Revenue, sales, and sources of
funds fuel organizations and the management of that
process is the most important function.

Marketing Definition
Marketing is the process associated with promotion for
sale goods or services. It is considered a "social and
managerial process by which individuals and groups
obtain what they need and want through creating and
exchanging products and values with others. It is an
integrated process through which companies create
value for customers and build strong customer
relationships in order to capture value from customers
in return.
Marketing is used to create the customer, to keep the
customer and to satisfy the customer. With the
customer as the focus of its activities, it can be
concluded that marketing management is one of the
major components of business management. The
evolution of marketing was caused due to mature
markets and overcapacities in the last decades.
Companies then shifted the focus from production more
to the customer in order to stay profitable.

Sales and Marketing


What's the Difference?
Sales

Marketing

Sales starts with seller & is


preoccupied all the time
with the needs of the
seller
Emphasizes on saleable
surplus available with the
company
Seeks to convert products
in to cash
Views business as goods
producing process
Sales views the customer
as the last link in the
business

Marketing starts with the


buyer and focuses
constantly on the needs of
the buyer
Emphasizes on
identification of market
opportunity
Seeks to convert customer
needs in to products
Views business as a
customer satisfying process
Marketing views the
customer as the very
purpose of business

The sales and marketing


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

Evolution of Sales
Management
Before Industrial revolution, small scale
manufacturers influenced the economy.
After, 1760 AD, large scale
manufacturers started dominating.
Need to expand the market
Separate functional departments like
manufacturing, finance and sales were
established.

Evolution of Sales
Management
Active involvement of distribution
channels (Wholesalers & retailers)
Complex marketing function
Marketing function was split in to
Sales fn. & support fn. (promotion,
research, logistics, etc.)
Sales department generates revenue

Nature of Sales
Management
i. Integration with Marketing
Management
ii. Relationship Selling
iii. Varying sales responsibilities

i.

Integration with Marketing


Management

Sales management is a part of marketing


management
Field sales team: In territories, contacting
existing and prospective customers
Headquarter team: Performs support and
service functions to assist sales people.
(Promotion, Market research, Logistics,
Customer service and coordination)

ii. Relationship Selling


Relationship is an
exchange Obtaining &
offering
Creation of customer
loyalty
Customers classified as
A/B/C as per sales &
profit potential
Lower costs and add
value
Satisfying current needs
and understanding
future needs

Objectives of Sales Function.

To achieve Sales Targets


To achieve Market share targets
To manage dealer network
To organize sales training
To handle customer complaints
To manage Sales promotion campaigns
To effectively cover market

Sales Management

Managing Sales Force


Offering Sales Training
Managing Channel partners
Managing Direct sales
Managing Sales Promotion
Managing Sales Territories
Managing Sales Targets

Importance of Sales
Management
1.
2.
3.
4.

Most exciting
Highly financially rewarding
Challenging careers
Fastest & surest route to top
management
5. Only function to generate revenue
6. Directly impacts the bottom line or
net profit

Roles of a Sales Manager


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

Skills of Sales Manager


1. People Skills Motivate, lead,
communicate and coordinate
effectively with team building
2. Managing Skills Administrative skills
like planning, organizing, controlling
and decision making
3. Technical skills Training, selling,
negotiating, problem-solving and CRM
skills

PERSONAL
SELLING

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

Everyone lives by selling something


Stevenson

R.L.

Personal selling and its fit in the promotional mix

Usually more appropriate in B2B than consumer


markets.

Advantageous in promoting and selling high cost,


complex items.

Operates more effectively when customers are on the


verge of making a final decision and committing
themselves.

Characteristics of personal selling

Impact - sales representatives have a much greater


chance of engaging initial attention and responding to
situations.

Precision - targeting and message precision.

Cultivation - sales force plays an important role in


creating and maintaining buyer seller relationships.

Cost - personal selling is very labour intensive so comes


at a cost.

Sales representatives - typical tasks

Forms of personal selling


Order takers - external and internal.
Order makers - finding prospective customers,
identifying customer specific problems and
needs, selling product and assisting with
installation and training, and maintaining
relationship.
Sales support - augment the efforts of
mainstream sales force.
Missionary sales representatives - focus on
particular segment of product to give enquiries
and sales an initial lift.
Sales engineers - focus on the technical or
application problems of the product.

The personal selling process

Stages and objectives of the personal


selling process

Sources of prospects

(1) Prospecting
Identify the potential customers
Making warm contacts rather than cold calling

Leads - prospective customers.

Prospects before a contact, find they with potential.

Qualified prospects after a contact, find they with


great potential.

(2) Preparation and planning

It is to look for:

Customers buying criteria and needs

Customer organisations purchasing structures

The application of the prodcut and the features and benefits required.

(3) Initial contacts

It is to build up mutual rapport, respect and trust between the buyer and seller
before the formal and serious business discussion.
Two approaches:

Initial phone call for a meeting appointment

Could calling/visiting for a lucky meeting arrangement

(4) -Sales presentation


It is to show how the product offering and the customers needs match.

Stimulus response.

Formula selling.

Need satisfaction.

(5) Handling typical objections


Typical objections:
Your: company, product, service, pricing;
You; you are not competitive enough
I cant afford it; I dont need it

Ask the objection back.

Agree and counter.

Boomerang.

Feel, felt, found.

Denial.

(6) Types of negotiations

Co-operative or win-win - trading concessions results in a better deal for


both parties.

Competitive negotiation - hard bargain focused on short term gain.

(7) Types of sales closure


It has reached the point where the customer agrees to purchase.

Alternative close.

Assumptive close.

Time pressure close.

(8) Follow-up and account management


The role of personal contact

The sales management process

Questions