Introduction to Sales Management

UNIT 1
• Introduction to Sales: Role of selling in
marketing, Personal selling, Salesmanship
and sales manager, Types of sales personnel,
Characteristics of a successful salesman,
Theories of selling, Sales management,
Process of effective selling.
 INTRODUCTION TO SALES

• Sales: Basic function of sales is to generate revenue for the

company. ...
• Marketing: Marketing revolve around creating desire among
customers to consume your product and there are many
ways.
• The role of selling within the marketing concept is to help a
customer make a purchase, as opposed to persuading the
customer to make a purchase.
• A sale is a transaction between two or more parties in
which the buyer receives goods—either tangible or
intangible—services, and/or assets in exchange for money
or in some cases, other assets paid to a seller.
Differences between Selling and Marketing
No. Selling
1 Emphasis on product
2 Company manufactures the product first and then
decides to sell it
3 Management is sales-volume oriented
4 Planning is short-term-oriented , in terms of
today’s products and markets
5 Stresses needs of a seller
6 Views business as a goods producing process
7 Emphasis on staying with existing technology and
reducing costs
8 Different departments work as highly separate
watertight compartments
9 Cost determines price
10 Selling views customer as the last link in business
Marketing
Emphasis on consumer needs and wants
Company first determines customers’ needs and wants
and then decides on how to deliver a product to satisfy
these wants
Management is profit-oriented
Planning is long-term oriented, in terms of new
products, tomorrow’s markets, and future growth
Stresses need and wants of buyers
Views business as consumer satisfying process
Emphasis on innovation in every sphere, on providing
better value to the customers by adopting a superior
technology
All departments of a business operate in an integrated
manner, the sole purpose being generation of
consumer satisfaction
Consumers determine price, price determines cost
Marketing views the customers as the very beginning
of a business
 Evolution of sales management
1. Pheriwalas
2. Pack peddlers
3. Greeters and drummers
4. Modern sales management
 Evolution of sales management
1. Evolution of Sales Management- Paul
Hermann described bronze age’s travelling
salesperson’s sample case. The sales people
used a wooden box, 26 inches long,
containing axe, sword blades, buttons etc.
even the British came to India for the purpose
of expanding their business and trade.
 Evolution of sales management
1. Yankee peddlers- carried cloth, spices, household articles
from one part of the country to another part.
Pheriwallas - the first sales people
Pack Peddlers – the shrewd, unprincipled tricksters
Greeters and Drummers( intermediary to buyer)-
wholesalers and manufacturers hired them who would
seek out and invite retailers to visit the display to visit the
display of the owner. The drummers would meet the
passengers from incoming trains and ship with great
fanfare to beat their competitors. Then, the drummers
started visiting the customer’s place of business. So there
were travelling salespeople who took orders for goods.
3. Modern sales management
 Evolution of sales management
• Father of Modern sales management- JOHN HENRY
PATTERSON. He ran National Cash Registry. He asked his
best sales people to demonstrate their sales techniques to
other sales people. The approach was printed and
distributed to be followed.
• Mr Patterson also assigned exclusive territories to his
people. He trained people. He arranged frequent sales
meetings that served the double purpose of training and
socialization. Thomas J Watson was trained by Patterson
who found IBM.
• Patterson was the pathfinder who showed the strategy and
skill required to transform a sales force into an effective
workforce for generating sales and profits.
 Evolution of sales management
• Thus a salesperson is no longer an order taker
or information provider, rather he is viewed as
a consultant to the customers.
• Due to non personal form of business and
increasing distances between the
manufacturers and customers, sales
organizations are now emphasizing more on
quality consulting skills to solve the customer
problems.
 Personal Selling Strategies
Top ten qualities of a seller:
1. Thoroughness and follow through
2. Knowledge of the sales person’s product line
3. Market knowledge and keeping the buyer posted
4. Applying his product and services to buyer’s needs
5. Knowledge of the buyer’s product line
6. Preparation for sales calls
7. Regularity of Sales calls
8. Diplomacy in dealing with operating departments
9. Technical education
 Evolution of personal selling
Partnership
strategies

Business
management

Consultative
selling

Negotiation

Persuasion
 Evolution of personal selling
• Persuasion- it was the primary skill used by the
salespeople.
• As competition grew and buyers had a choice to opt for
a particular player, it became important for the
salespeople to understand the needs of the customers,
which called for modification of products, prices and
services.
• At this stage negotiation strategies became more
important than mere persuasion. The customers were
now treated as clients. The sellers has to identify new
needs and new uses for the existing products.
 Evolution of personal selling
• Consultative selling- required a seller to think like the
buyers. A salesperson had to think in the buyer’s way
and his assortment offer by putting himself in the
buyer’s shoes.
A consultative salesperson must understand the
production and marketing system of a buyer. Thus a
thorough training in business administration was a
prerequisite for the sales job. The salespeople were
trained to practice business management strategies at
this stage. It was felt that a close working relationship
was necessary for generating profit and retaining
customers.
 Evolution of personal selling
• Partnership strategy- the domestic and international
competition, rising costs, cost reduction and marketing
goods, this was facilitated by a close working
relationship between the salespeople and the
customers.
• The increasing purchasing power of retailers, such as
Walmart, demanded the linking of the information
system of the seller and buyers. This increased
production planning and reduced inventory at the
retailers and wholesalers end, which narrowed the gap
between the two. This is called partnership strategy.
 Marketing concepts
• The marketing concept is the philosophy that
firms should analyze the needs of their
customers and then make decisions to satisfy
those needs, better than the competition.
Today most firms have adopted themarketing
concept, but this has not always been the
case.
 Marketing concepts
• Production Concept- The idea of production concept –
“Consumers will favor products that are available and
highly affordable”. is one of the oldest orientations
that guide sellers.
• Product concept- The product concept holds that the
consumers will favor products that offer the most in
quality, performance and innovative features.
Marketing strategies are focused on making continuous
product improvements. Example – floppy disk
• Selling concept- The aim is to sell what the company
makes rather than making what the market wants.
Such aggressive selling program carries very high risks.
 Marketing concepts
• Marketing Concept- The marketing concept
holds- “achieving organizational goals
depends on knowing the needs and wants of
target markets and delivering the desired
satisfactions better than competitors do”.
Here marketing management takes a
“customer first” approach.
 Societal marketing concept
• Society (Human Welfare)
Companies must make sure the products, services, actions, investments
innovations servers the society first.
• Consumers (Satisfaction)
Products and services should be satisfying the consumer’s needs.
• Company (Profits)
Building long-term customer relationship, being socially responsible, and
providing satisfactory products are important for profit-making and wealth
maximization.
• EXAMPLE- CocaCola release an ad that shows people of different ethnicity
and singing “America is Beautiful” in different languages.
 Sales orientation

PRODUCTION SALES CUSTOMERS

EMPHASIS ON
SELLERS NEEDS
 Nature and role of sales managment
Specific duties and responsibilities of a sales manager:
 The determination of sales force objective and goals
 Sales force organization, size, territory, and quota finalization
 Sales forecasting and budgeting
 Sales force selection, recruitment, and training
 Motivating and leading the sales force
 Designing compensation plan and control systems
 Designing career growth plans and building relationship strategies with key
customers
 Integration of technology with sales function
 Augment the sales force by augmenting the sales-closing process
• Personal Selling: Personal selling is finest form
of promotion done
• by sales force.
• Salesmanship: It is the art of successfully
persuading customer in
• selling situations for mutual benefits.
 Role of sales manager
1. A sales manager is responsible for meeting the sales targets of
the organization
2. A sales manager devises strategies and techniques necessary for
achieving the sales targets.
3. map potential customers and generate leads for the
organization.
4. A sales manager is also responsible for brand promotion.
5. Motivating team members is one of the most important duties of
a sales manager.
6. It is the sales manager’s duty to ensure his team is delivering
desired results.
7. A sales manager is responsible for not only selling but
also maintaining and improving relationships with the client.
 Personal selling
• Personal selling is where businesses use
people (the "sales force") to sell the product
after meeting face-to-face with the customer.
The sellers promote the product through their
attitude, appearance and specialist product
knowledge. They aim to inform and encourage
the customer to buy, or at least trial the
product.
 Steps in personal selling
1. Prospecting
2. Pre-approach
3. Approaching
4. Presentation and demonstration
5. Overcoming objections
6. Closing the sale
7. Follow-up and services
 Steps in personal selling
1. PROSPECTING- The first step in the process involves prospecting. With
this step in the process, sales representatives look for new customers
that they can potentially sell their products to. This can be done by-
 Acquaintance references- satisfied customer is good source of information
about names, phone no. who may be among his friends/relatives.
 Cold calling- call upon without any reference in anticipation of converting
the call into sale.
 Centre of influence method- salesmen obtain reference for prospects from
eminent people of society and influence prospects to buy.
 Personal observation method- identify prospects on several occasions .
 Company’s records: getting in touch with old and new customers
 Newspapers
 Steps in personal selling
2. Pre-approach- The pre-approach is the second step in
the personal selling process. During this stage, the sales
representative looks at any information that he may have
about the customer like his needs, preferences, habits,
nature, behavior, economic and social status etc.
SIGNIFICANCE OF PRE-APPROACH
a) Salesman concentrates only on the prospects saving
time and energy
b) Salesman get all information before approaching him
DIAGRAM
 Steps in personal selling
3. The Approach
• The next step in the personal selling process is called the ‘approach’.
The approach refers to the initial contact between the salesperson
and the prospective customer. During this stage the sales person
takes a few minutes for “small talk" and get to know the potential
customer.
• METHODS OF APPROACH
1. Cashing in on brand name or the company’s reputation.
2. Customer benefit approach; eg cutting down your electricity bill
3. Innovative product handling approach for first hand knowledge
4. Premium approach- give small gifts to prospects.
5. Shock approach- salesman highlights rising uncertainties like old
age, diseases etc
 Steps in personal selling
4. Presentation and demonstration- During this stage of
the process, the sales representative makes a
presentation. This can involve demonstrating the product
or service and showing the customer why they need it.
The sales rep should focus on the features and benefits of
the product or service during this part of the process.
Knowing sales presentation methods-
1. Stimulus response method
2. Formula method
3. Need-satisfaction method Team selling method
4. Consultative selling method.
Knowing sales presentation methods-
1. Stimulus response methods- this method assumes that if a salesman makes
right stimuli he can get favorable response from the prospect.
2. Formula method- also known as formulate method. Four stages (AIDA)
3. Need-satisfaction method – sales person understands the
need of the customer and then gives his demonstration.
This is done in 3 ways: (FAB approach)
a) features- eg- ‘ our ceiling fan has two ball bearings’
b) Advantages- eg ‘ because of bearings, our fan makes
hardly any noise’.
c) Benefits- ‘ our ceiling fans can be used in class-room
where noise level should be low’
4. Consultative selling method- buyers have problems and the
sales people seek help from design, production/operation etc
to solve the problems.
Many software companies like Wipro use consultative selling
approach to solve the customer problems.
 Steps in personal selling
5. Overcome Objections- Many customers have questions and
concerns at this point of the sales process. If the sales
representative can answer the questions and overcome any
objections successfully, the barriers for a successful sale will be
removed.
6. Closing- After the objections have been removed, the only thing
left to do is close the sale. This can involve writing up an invoice
and providing any final information to the customer. At this stage
of the process, you may need to negotiate the final sales price and
any payment terms.
7. The follow up- is the last stage in the personal sales process.
After the product or service has been delivered, the sales
representative follows up with the customer to find out if they are
pleased. If the customer is happy, the sales rep can also try to
obtain additional referrals from the customer.
 Types of personal selling
1. Industrial selling
2. Retail selling
3. Services selling
 Types of personal selling
• Industrial selling (or B-2-B Selling)
• Four categories are:
1. Selling to resellers- a reseller is a wholesaler or a retailer who buys FG
and resells them to the end user. Eg Hero cycles, T Series sell to resellers
2. Selling to business users- the output of one producer enters into the
production process of another producer to manufacture a final good for the
consumption of end user. Eg- IBM sells Pentium processors which are used
by Compac or HCL to make computers for final customers.
3. Institutional selling- these institutional customers use the products in
their daily operations. Companies like Xerox in photocopiers, J&J in surgical
equipments sell for institutional consumption.
4. selling to government- many companies such as Escort Rites, sell only
to government undertakings.
 Types of personal selling
• Retail selling
• Selling to the ultimate consumers for personal or non-
business use or consumption

• Services selling
• Basically activities or benefits provided to consumers
• Services are intangible in nature
• Cannot be standardized
TYPES OF SELLING
 Types of selling
• Order-takers
• Inside order-takers Here the customer has full freedom to choose products
without the presence of a salesperson. The sales assistant’s task is purely
transactional – receiving payment and passing over the goods. Another form
of inside order-taker is the telemarketing sales team who support field sales
by taking customers’ orders over the telephone. retail sales assistants eg Big
bazaar, Walmart

• Delivery salespeople The salesperson’s task is primarily concerned with

delivering the product. In the UK, milk, newspapers and magazines are
delivered to the door. There is little attempt to persuade the household to
increase the milk order or number of newspapers taken: changes in order
size are customer-driven. heir primary function is to respond to customer
requests rather than actively seek to persuade.

• Outside order-takers– their primary concern is to respond to customer calls

rather than seek new customers. They do not deliver anything at the
customer’s place. They make sales call and take orders from the customers.
Eg.Eureka Forbes.
 Types of selling
• Order creators
• Missionary salespeople – persuade
customers to promote a seller’s brand.
Medical representative, do not make direct
sales as the doctors do not buy the medicines
personally but prescribe the medicines to the
patients. So MR is a missionary salesperson.
 Types of selling
• Order getters The final category, called order-getters, consists of those
in selling jobs where a major objective is to persuade customers to make a
direct purchase. These are the front-line salespeople and in many ways this
type of selling represents the most challenging of the different types of
selling. Order-getting demands several skills on the part of the salesperson
including, for example, the ability to identify new prospects, persuading

• Consumer salespeople- comprise door to door sales

person who sell spices, eatables etc. For individual
consumption.
• Technical support salespeople- support the front line
salespeople when the product is technically complex.
They go as a part of a key account management team
• Merchandisers- provides sales support in retail and
wholesale selling situations.
The psychology in selling
 The psychology in selling
• The model assumes that if a salesperson applies a
stimulus(or sales presentation), the prospective buyer will
respond in a predictable manner. However, the prospect
may or may not buy, and the model does not tell us why
the prospects buys or does not buy the product, which the
salesperson is trying to sell.
• Salespeople should therefore understand psychological
aspects in buyer behavior. Psychological factors of buyer or
consumer behavior includes attitudes, perceptions,
motivations, and personality of buyers.
• Study of the consumer behavior helps the salesperson to
understand the psychological aspects in selling or why the
prospect is buying or not buying the product/ service.
Buying decision process
 Buying decision process
• Five basic steps in the buying decision
1. Need arousal
2. Collection of information
3. Information evaluation
4. Purchase decision
5. Post purchase- satisfaction; dissonance
 Selling approaches
• 1. Transactional
• 2. Problem solving or Consultative
• 3. Affiliative
• 4. Enterprise Selling
 Selling approaches
• TRANSACTIONAL-
1. It is designed to get the sales over with as
quickly as easily as possible.
2. The key to success is making as many calls as
possible; little thought is given to the life-time
value of customers.
3. Life insurance salespeople who have only one
product to sell-once a buyer has bought it there
is nothing else to sell so the salesperson moves
on.
4. The simple product also tend to be sold this way.
 Selling approaches
• Problem solving or Consultative
1. It involves identifying and solving a client’s
problems; for this reason, it is also called
needs-satisfaction selling or
problem/solution selling.
2. The process typically involves asking
prospective clients a number of questions in
order to determine their needs and then
presenting solutions to those needs.
 Selling approaches
Role of Selling in Marketing
• Affiliative Selling
1. It is based on the friendship between the salesperson
and the individual buyer.
2. Tupperware and Premier Jewellery parties rely heavily
on affiliative selling.
3. Friendship is also an important component of B2B
selling.
4. For example, if all products a buyer is considering are
the same, but post-sales service is critical, the buyer
will be inclined to purchase products sold by a friend
who can be counted upon.
 Selling approaches
Role of Selling in Marketing
• Enterprise Selling
1. It is a B2B concept that reflects, a strategic partnership
between the buying and selling organizations.
2. It is called enterprise selling because it is based on not
only person-to-person relationships but on company-to-
company relationships.
3. Moreover, the customer is not just one person but an
entire company. When engage in enterprise selling, a
salesperson will, at times, utilize affiliative selling,
transactional selling and consultative selling all within an
enterprise-level selling.
 Theories of personal selling
• The theories of selling emphasizes on “what to do” and
“how to do” rather than “why”. There are four theories
of selling such as:
• 1.“AIDAS” theory
• 2.“Right set of circumstances” theory
• 3.“Buying-formula” theory
• 4.“Behavioural equation” theory.
• “AIDAS” theory and “Right set of circumstances” theory
is seller oriented. “Buying-formula” theory is buyer
oriented and “Behavioural equation” theory
emphasizes the buyer’s decision process but also takes
the sales person’s influence process into account.
 Theories of selling (AIDA)
• The seller has to accomplish the presentation task in the
following sequence according to the theory:
• •Securing Attention: The main aim is to put the prospect
into a receptive state of mind so that the prospect pay
attention to the presentation. The sales person must
establish good rapport at once. Favourable first impressions
are to be assured in first step.
• •Gaining Interest: The second goal is to intensify the
prospect’s attention so that it evolves into strong interest.
Many techniques are used to gain interest such as showing
visual aids, flipcharts, technical aids etc.
 Theories of selling
• Kindling Desire: The third goal is to kindle the
prospect’s desire to the ready- to – buy point. The sales
person must keep the conversation running along the
main line toward the sale. The objections to be
handled carefully and the desire of the buyer to be
aroused.
• •Inducing Actions: The presentation may arouse strong
desire in the buyer’s mind to buy but the sales person
must induce the prospect to act – that the prospect to
buy as buying is not automatic. The sales person will
try to find out the right time to close the sale with the
positive action from the buyer’s agreement to buy.
 Theories of selling (AIDA)

• Building Satisfaction: After the customer has

given the order, the sales person should
reassure the customer that the decision was
correct. The sales person should left an
impression in the buyer’s mind that he mere
helped the buyer to decide to buy
 Theories of Selling (“Right Set
Circumstances” Theory of Selling)
• This theory sometimes called “Situation-
Response” theory and it emphasizes on creating
a right circumstance or situation by the sales
person so that he succeeds in securing the
attention and gaining the interest of the prospect,
and if the sales person presents the proper
stimuli or appeals, the desired response (that is
the sale) will result.
• This is a seller-oriented theory and stresses upon
the sales person controlling the situation.
Theories of Selling (“Buying Formula”
Theory of Selling)
• This is a buyer oriented theory and it emphasizes
on the buyer’s side of the buyer-seller dyad. The
buyer’s needs or problems receive major
attention, and the sales person’s role is to help
the buyer to find solutions.
• This theory treats the job of a sales person as
problem solving. The purchase must solve buyer’s
problem and when the purchase gives
satisfaction the buyer-seller relationship will
continue.
Theories of Selling (“Buying Formula”
Theory of Selling)
Theories of Selling (“Buying Formula”
Theory of Selling)
• To ensure purchase , the product or service
and the trade name (that the source of supply
) must be considered adequate, and the buyer
must experience a (pleasant) feeling of
anticipated satisfaction when thinking of the
product and/or service and/or the trade
name.
 Theories of Selling (“ Behavioural
Equation” Theory of Selling)
• J.A Howard explains buying behavior in terms of the
purchasing decision process , viewed as phases of the
learning process. Four essential elements of the learning
process included in the stimulus-response model are drive,
cue, response and reinforcement, described as follows:
• 1.Drives : are strong internal stimuli that impel the buyer’s
response, and are of two kinds:
• a)Innate drives: stem from the physiological needs, such as
hunger, thirst, pain, cold etc.
• b)Learned drives: such as striving for status or social
approval, are acquired when paired with satisfying of
innate drives, in marketing the learned drives are dominant
in economically advanced societies.
 Theories of Selling (“ Behavioral
Equation” Theory of Selling)
• 2. Cues: are weak stimuli that determine when
the buyer will respond.
• a)Triggering cues: activate the decision process
for any given purchase.
• b)Non-triggering cues: influence the decision
process but do not activate it, and may operate at
any time even though the buyer is not
contemplating a purchase.
• Triggering cues take a buyer to the buying point
and non-triggering cues help in selecting the
product and making a purchase decision.
 Theories of Selling (“ Behavioural
Equation” Theory of Selling)
• Non-triggering cues are two kinds:
• (i) Product cues: are external stimuli received
from the product directly, for example color of
the package, weight, or price.
• (ii) Informational cues: are external stimuli
that provide information of a symbolic nature
about the product. Such stimuli may come
from advertising, conversation with other
people (including sales personnel) and so on.
 Theories of Selling (“ Behavioural
Equation” Theory of Selling)
• C) Specific product information cues may also
function as triggering cues . This may happen
when price triggers the buyer’s decision.
• 3.Response : is what buyer does.
• 4. A Reinforcement is any event that
strengthens the buyer’s tendency to arrive at
a particular response.
 Theories of Selling (“ Behavioural
Equation” Theory of Selling)
• Howard incorporated these four elements into an
equation:
• B = P X D X K X V ; WHERE,
• P = Internal Response tendency of the buyer
• D = Drive level of the buyer or motivation to buy
• K = “ Incentive potential” , that is the value of the
product or its potential satisfaction to the buyer.
• V = Intensity of all cues : triggering, product or
informational
 Theories of Selling (“ Behavioural
Equation” Theory of Selling)
• The relation among the variables is multiplicative.
Thus, if any independent variable has a zero value, ‘B’
will also be zero and there is no response.
• No matter how much ‘P’ is there may be , if the
individual is unmotivated (D = 0), there is no response.
• When ‘K’ value is more, ‘P’ increases in value, means
when the satisfaction is more the reinforcement occurs
and the tendency to make response in future increases
and as a result the buyer will buy the product next time
the cue appears.
 Sales management
• MEANING -
• Sales management means management of all
marketing activities, including advertising,
sales promotion, marketing research, physical
distribution, pricing, and product
merchandising.
 Definition
• The American marketers association (AMA’s)
definitions runs like:
• The planning, direction, and control of the
personnel, selling activities of a business unit
including recruiting, selecting, training,
assigning, rating, supervising, paying,
motivating, as all these tasks apply to the
personnel sales-force.
 ELEMENTS OF SALES MANAGEMENT
• Planning- The plan must be based on extensive market
research, and the facts must be verified at every stage.
The plan should also be evaluated, after investigating
the total-market, for a particular type of product.
• Co-ordination: Co-ordination is all pervasive and
permeates every function of the management-process.
For example, ill planning, departmental-plans are
integrated into a master. Plan, ensuring adequate co-
ordination.
• Motivation - This is especially important in the case of
the sales-force. Only motivated sales-persons can
achieve company’s goals.
 Emerging trends in sales management
• Global perspective- Global competition is intensifying Domestic
companies who never thought about foreign competitors suddenly find
them in their sales forces to meet foreign competition in their country
and improving their company’s personal selling efforts in other
countries.
• Revolution in Technology- Digital revolution and the management of
informational have greatly increased the capabilities of consumers and
marketing organizations. Companies can collect more information about
markets, customer, prospects and competitors by using the internet.
• Customer Relationship management- Relationship marketing aims at
build long term, mutually satisfying relations with key parties’
customers, distributors and suppliers in order to retain their long term
preference and business.
• Salesforce diversity- The demographic characteristics of the sales force
are changing and are becoming more varied. Sales manager will have to
manage a sales force consisting of women, more educated and less
educated salesperson, as well as senior people.
• Team selling approach is used when a company wants to build a long
term mutually beneficial relationship with major customer, who have
high sales and profit potential.
Emerging trends in sales management
• Managing multi-channels- Multi-channel marketing system
occurs when an organization uses two or more marketing
channels to reach one or more customer segments. Major
benefits of a multichannel marketing system are:
• Lower channel cost (ex: selling by phone instead of visits by
salesperson to small sales potential customer)
• Increased market coverage.
• Customized selling-selling technically complex products and
services by the company’s technical salesforce.
• Ethical and Social Issues -Sales managers have social and
ethical responsibilities. Sales people face ethical issues such
as bribery, misleading, and high-pressure sales tactics.
 Formulation of strategic sales mgmt
programme
1. The sales manager should decide on how the personal
selling efforts can be dovetailed to the company’s
environment and integrated with other elements of
marketing strategy.
2. Find out the how potential customers can be best
approached, persuaded and served.
3. Organize the sales force to call and manage various types
of customers as effectively and efficiently as possible.
4. Level of performance each member of the sales force is
expected to attain during the planning period under
consideration. This involves decisions related to forecasts,
quota, and budget setting.
 Salesmanship: Definition,
Importance, Duties and Types!
• “The personal selling” and “salesmanship” are
often used interchangeably, but there is an
important difference.
• Personal selling is the broader concept.
• . Along with other key marketing elements, such
as pricing, advertising, product development and
research, marketing channels and physical
distribution, the personal selling is a means
through which marketing programmes are
implemented.
 Salesmanship
• Salesmanship is one of the skills used in personal
selling. Salesmanship is seller-initiated effort that
provides prospective buyers with information and
motivates or persuades them to make favorable
buying decisions concerning the seller’s products
or service.
• Salesmanship is the ability to persuade people to
want the things which they already need.
Salesmanship is the ability to convert human
needs into wants
 Definition:

• According to W.G Carter, “Salesmanship is in

attempt to induce people to buy goods.”
• According to Holtzclaw, “Salesmanship is the
power to persuade plenty of people to
pleasurably and permanently purchase your
product at a profit.”
 Importance of Salesmanship:

• 1. Important to Producers: He is the creator

of demand. Hence it leads to increased
production and increased business activity.
• 2. Important to Consumers: Salesman helps
the consumers in making the right decision
and proper selection of the products which
they want to buy. Salesmanship increases the
rate of turnover, and hence reduces unsold
stock.
 Duties of a Salesman

• 1. The principal duty is to make sales of products

or services.
• 2. He has to do the assigned duty (travelling).
• 3. He has to make collection of bills relating to
sale.
• 4. He has to make report-Sales made, Calls made,
Services rendered, customers lost, competition
and any other matters, relating to firm.
• 5. All complainants must be satisfied peacefully.
 Characteristics or the Qualities of a
Successful Salesman:
Reid gives the following characteristics of a good
salesman:
1. Establishing good relationship with a variety of people.
2. Learning quickly and adapting smoothly.
3. Planning ahead and efficiently managing his time and
efforts.
4. Working hard to achieve his goals, dedicating himself
to provide long-term service, rather than having a get-
rich-quick attitude.
5. Communicating clearly both in speech and in writing.
 Type of Salesmen:
1. Manufacturer’s Salesmen:
(a) Missionary Salesmen:
They are also known as Creative Salesmen or Pioneer
Salesmen. They are employed by manufacturers and do the
work, of missionary nature. They create demand for the
products. They usually develop goodwill. They call on
distributors- wholesalers, retailers, customers, in order to
educate, train and induce them to promote the products.
(b) Merchandising Salesmen:
They assist dealers by giving suggestions on display, store-
layout, service facility etc. They arrange wide publicity and
conduct demonstration for dealer salesmen, by even working
along with them. They are largely involved in drugs, medicines,
grocery etc. There is a wide scope for this category.
 Types of salesman
(c) Dealer-Servicing Salesman:
These salesmen call on retailers in their territory and visit them
often. They bring samples of new products, take orders and make
up window display.
(d) Sale Promotion Salesmen:
They are also known as Retail Salesman. They are specialized in
promotional work. They are representatives of medical firms or
publishers. They may not take spot orders but they try to
convince people like doctors about the new drug, research work,
testing, result etc. They create demand by calling on customers,
(e) Technical Salesmen:
They are trained technically. They provide technical assistance to
company’s customers on matter connected with the product, its
quality, its design, its installation etc. Generally these types of
salesmen deal with computers, equipment’s, machinery items,
chemical products etc.
 Types of salesmen
2. Wholesaler’s Salesmen:
Products reach the hands of customers through a number of channels,
the main channel being wholesalers. They are the nerve-centres of
distribution between manufacturers and retailers. These salesmen are
mainly concerned with retailers through whom the products are to be
marketed.
Their main concerns are:
1. To guide the wholesalers in giving credit transaction to retailers,
2. To collect bills from retailers and customers,
3. To collect information of the market trend,
4. To help retailers to improve sales and
5. To take orders from retailers.
 Types of salesmen
3. Retail Salesmen:
They are of two types: 1. Indoor salesmen and 2.
Outdoor Salesmen. Indoor salesmen work within
the store—counter sales over the counter. They do
not need training as they have to face only
customers and not the prospects.
• Outdoor salesmen may also be called travelling
salesmen. Their main job is to make regular
travels, visit customers, canvass orders etc. They
must possess all the qualities of ideal salesmen.
 Types of salesmen
• 4. Speciality Salesmen:
• They are to sell speciality products-expensive
durable goods, furniture, books, house
furnishings, washing machines, automobiles,
refrigerators etc. People purchase these
products only after a personal and careful
selection, because they do not buy them
frequently.
 Selling skills and Selling Strategies
• Selling Techniques- The techniques of modern sales
management and selling techniques were refined by John
Henry Patterson, widely known as the father of modern
sales management. He ran the National Cash Registry.

• Selling skills - These are the sum total of aptitudes and

skills such as communication skills, listening skills, conflict
resolution skills, problem solving skills and negotiation
skills.
Selling skills and Selling Strategies
• Innovators and laggard
• People who are adventurous and have high risk capital
are the overnight buyers. These buyers are the
innovators in the marketplace, who mostly buy on
impulse and consider non-functional reasons for
making a choice. This set of people is followed by
another group who accept new products and
innovations after observing the innovators using it.
Majority of such people take time to make a buying
decision. There is another set of people who but only
after everybody has started using the product. These
laggards start buying a product when another new
product is on the doorstep.
Selling skills and Selling Strategies
• Theory of diffusion- propounded by M.Rogers
There are people called innovators, who accept any
new product in the market as they are
adventurous and have high risk capital. Contrary
to that there are also customers who are vary
conservative and buy only when they see
everyone using the product. It is very easy to
convince the innovators for buying the product,
where as it are difficult to close a sale in the case
of laggards. This is called the theory of diffusion.
• In the theory of diffusion, the innovators do not
give much importance to the salesperson and
make new purchases out of a habit of
experimenting.
• When a new fashion emerges, the young, affluent
class people tend to adopt these fashions sooner,
whereas the middle class in India are rational,
delayed buyers. These people in the diffusion
theory are called laggards.
Selling and buying styles
 Selling and buying styles
• The salespeople in (1,1) believe in the physical display of product and
believe customers will buy themselves, possible in market without
much choices or product categories. FMCG goods bring customer to
retail counter (by pull method) and the store presence and brand
visibility make the brand sell itself.
• Sales people in (9,1) are more product oriented, try to push the
product without caring for customer demand and do hard selling.
• (1,9) salespeople treats himself as friend of customer. They are
involved in relation selling and try to build rapport with customer.
• (9,9 position) are problem solvers. They consult with customers,
understand his need and suggest a product that can solve his
problem. Mostly seen in software industry.
• (5,5) is professional who keeps balance between concern for the
customer and concern for the product.
•
 Selling Situations
• The sales Task and Function- The forms of selling include
maintenance vs developmental selling, contacts, technical
expertise, and important personal characteristics.
 Maintenance Selling- Involves the act of servicing the
existing accounts, securing promotional cooperation,
counting inventory and taking replenishment orders, and
delivering the products.
 Developmental selling- Salespeople engaged in
developmental selling are called business development
sales executives as they try to contact the potential
customers and build business for the firm – the real
salespeople.
 Selling skills
The essential skills for successful selling are
• Problem solving skills
• Communication Skills
• Selling Skills
• Negotiation Skills Listening Skills
• Conflict Management
 Selling skills
Problem-solving
Communication
skills
skills

Negotiation Listening skills

skills

Conflict management and

resolution skills
 Selling skills
• Listening skills- The sales manager has to be a very good listener and
use his listening skills to lead towards sales realization. Poor listening
skills may make a sales manager miss subtle issues in customer
interaction and- this may lead to non-resolution of customers
problems and thus a poor level of sales realization.

• Conflict Management Skills- Conflict exists in every organization.

Conflict in sales organization is more evident than in any other
organization. This is due to the fact that there is always conflict of
interest among people at different levels as the goals are different at
each level of the organization.

• Problem solving skills

The sales person needs problem solving skills for effective selling. The
rational and consultative selling approach suggests that a salesperson
should not be a mere order taker; he should rather act as a problem
solver and a consultant to the customer. These roles are more
significant for high-tech selling and business-to-business selling.
 Selling skills
• Negotiation Skills
Negotiation occurs when someone else has what you
want and you are prepared to bargain for it and
the vise versa. Wall-mart globally follows the
strategy to negotiated exchange with its suppliers
and these are set for a long-term period.
• Communication skill- Research has found out that
trust between a buyer and a seller largely depends
on five elements in the salesperson’s behavior.
1. Truth of words communicated by the salesperson
2. Predictability of action
3. Competency ( ability/knowledge/resource)
4. Commitment to solve the customer problem
5. Likeability
 Communication skills
• The ability and expertise to communicate is
necessary in selling function. The salespeople
should possess a good vocabulary and express
themselves intelligently to the customer.
The communication process
 Sales communication process
• Sales communication can be both 1)personal and
2)non-personal (includes newspaper, television, other
mass media)
• Begins with a source, which in this case is the
salesperson himself who provides the relevant product
information and service information. The source has
thoughts and ideas to communicate to the audience,
which have to be encoded in a presentable form by the
sender. Sales presentation, sales literature sent through
direct mail, phone calls, giving information over the
internet are examples of communication
 The communication process
Managing body language:
 Personal Appearance- dress, appearance
 Posture- the mobility of the body and the position of hands, legs, and other
parts of the body reveal personality.

 Gestures- playing with a ring, key chain etc.

 Facial Expressions
 Eye Contact
 Space Distancing – zone of 4-12 feet is maintained
when it is a formal presentation.
 Process of listening
Attendance

Interpretation

Remembrance

Evaluations

Response Action
 The process of listening
• In the first stage, the customer physically responds to the message and
takes note of it. This reception can be blocked by barrier. This is the
attention stage.

• The interpretation stage calls for assigning meaning to sounds according to

customer’s own values, beliefs, expectations, roles, needs and ideas about
himself, products and the world.

• Next stage is of remembrance, where the messages are stored for future
use by the seller as well as the consumer. The customer listens and draws a
mental line about the product.

• In the evaluation stage the customer applies his thinking skills to weigh the
buyers remarks and queries.

• The last stage is response action stage in which one responds after
evaluating the receiver’s message. In one-to-one communication, the
response is verbal feedback, in large groups- applause, silence, laughter.
Levels of listening
Feedback

Paraphrasing

Clarifications

Emphatic listening

Active Listening

Barriers to Listening!
 Levels of listening
• There are five levels of listening that the sales manager should
understand: feedback, paraphrasing, clarifications, empathy and
active listening. Feedback is fundamentally the reaction of the
customer to sales call.
• In paraphrasing, a salesperson tries to paraphrase the question by
mirroring the questioner’s point.
• The next level is the clarification of the issues.
• Empathetic listening salesperson shows he understands the feelings
of the customer.
• Active listening, last stage when customer identifies the emotions
underlying the customer’s words. The most powerful listening
response, as it is the most powerful listening response.
• barriers to listening
 Barriers to listening
• Include physical and mental barriers.
Pre-judgement
Self-centeredness of listener
Selective listening
 Conflict management skills
• Models of conflict
• Components of conflict
• The conflict resolution process:
⁻ lumping
⁻ avoidance
⁻ coercion
⁻ meditation
⁻ conciliation
⁻ arbitration
⁻ adjudication
⁻ negotiation
 Models of conflict
• Situations where a conflict seems to exist, but in reality is may not
be so. Eg, customer does not know to use the product and blames
sales person.
• The DOLLAR-MILLER model explain three kinds of conflicts-
1. Approach-approach conflict arises when both options are
resolving a situation, are equally attractive but mutually exclusive.
Only one can be executed despite both having potential for
execution
2. Approach-avoidance conflict- arises when a person wants an
outcome but must not have it for equally compelling reason, i.e
wants to have something but avoid it at the same time.
3. Avoidance-avoidance conflict- arises when one dislikes all the
options equally but has to decide on one out of them. A seller has
several products to sell but the customer switches between
product alternatives.
 Components of conflict
• Frustration and aggression are major reasons
of conflict. Salesperson gets frustrated by
making large number of calls
• inB2B selling, power, status, level of hierarchy
are the major sources of conflict
The conflict resolution process:

⁻ lumping
⁻ avoidance
⁻ coercion
⁻ meditation
⁻ conciliation
⁻ arbitration
⁻ adjudication
⁻ negotiation
 The conflict resolution process:

• Nader and Todd in the book ‘ The Disputing Process Law in Ten
Societies have identified eight procedures usually used to handle
conflict.
1. Lumping- refers to failure of one party in a conflict to pursue their
complaint. The issue is simply ignored and relationship with the
offending party continues.
2. Coercion- is imposition of the outcome by one party on the other.
Here level of threat and force is involved
3. Conciliation- bringing together both parties to settle dispute.
4. Mediation- involves third party who intervenes and helps parties
to reach an agreement.
5. Arbitration- both parties consent to the intervention of a third
party whose judgment they must agree to accept beforehand.
6. Adjudication- third party has the4 authority to intervene to make
a decision, and enforce it . Example Judiciary
 Negotiation skills
 Situation and timing for negotiations

 Formulation for a bargaining strategy

 The theory and strategy of principle negotiations

 separate the people from the problem

 focus on interests, not on positions
 invent options for mutual gains
 insist on objective criteria