Sales

Management
 Sales -
Definition
- A sale is the 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 and Marketing
What's the Difference?

Sales
• 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
M arketin
•g 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
 Sales
Management
• 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.
 Sales Management
is …
• Managing Sales Force
• Offering Sales Training
• Managing Channel
partners
• Managing Sales Promotion
• Managing Sales Territories
• Managing Sales Targets
 Objectives

• 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
•
 MEANING OF SELLING PROCESS
 In primitive days, demand preceded the supply and therefore, there
was no need to do any effort to sell one's own products.

 But as there is progress in society, production is no longer carried on,

on a small scale but on a large scale.

 Even one product is produced not by one producer but by several

producers, such as cotton textiles , steel , shoes , paper etc.

 It results in overproduction and competition among the producers.

 The consumer is considered as the King of market.

 The producer follows different steps, one by one so as to persuade the

consumer to buy his product that will give him satisfaction.

 The steps taken by the salesman to perform his function of selling

successfully are included in selling process.
 STEPS IN SELLING PROCESS
• Prospecting
1
• Pre-Approach
2
• Approach
3
• Presentation and Demonstration
4
• Meeting or Handling Objections
5
• Closing the Sales
6
• Follow - Up
7
 1)
PROSPECTING
 Prospecting is the 1st and the foremost stage of
the selling process.
 Prospecting means identifying and locating
Potential buyers.
 It helps in planning the whole selling efforts so
that there is no or minimum of wasted calls.
 Regular and systematic prospecting is the
foundation of all selling.
 2) PRE-
APPROACH
 Pre-approach is the 2nd stage of the selling process.

 The salesman is to acquire enough about

information in order to approach each one in the such
prospects most
effective
manner.

 Pre-approach involves developing an understanding about those

prospective buyers who have been identified and on whom the
salesman proposes to call.

 This understanding may relate to buyers' needs , personality drafts

and behavior patterns which are critical to their buying decision.

 Pre - approach prepares effective background of making approach

and ascertains the best and the most effective method of
approaching the prospect.
 3)
APPROACH
 Approach is the 3rd stage of the selling process.

 When the salesman comes in actual contact with the

prospect or likely customer, the next stage, namely, the
'approach' is reached.

 The face-to-face contact with the prospect is termed as

approach.

 It involves for seeking an access to the prospect so

that the product/offer may be presented to him.
 4) PRESENTATION AND
DEMONSTRATION
 It is the 4th stage of the selling process.

 In this step, the salesman demonstrates to the customer

the need-satisfying characteristics of the products being
offered for sale.

 The objective of presentation and demonstration is to help

in convincing the customer that the salesman's product is
the best one for satisfying his needs.

 In this way, effective presentation and demonstration plays

a vital role in the selling process.
 5) MEETING OR HANDLING
OBJECTIONS
 It is the 5th step in the selling process.

 Under this step the salesman is required to handle and over

come objections arising during or as a result of
presentation and demonstration, it is just natural for the
customer to ask questions, raise objections and seek
explanation.

 It is the most difficult situation that a salesman is required to

face.

 The salesman's job is to effectively meet, handle

and answer them in a most convincing and systematic
manner.
 6) CLOSING THE
isALES
 It S the 6th stage of the selling process.

 After having answered and overcome objections, it is the

right time for the salesman to clinch the deal by closing the
demonstration.

 The object of closing the sale is to get the customer in the

mood of saying 'yes' so that the salesman can ask for the
order.

 It is a very important step of the selling process.

 The salesman is expected to perform the same in a

very
decent manner.
 7) FOLLOW -
UP
 It is the 7th and last stage of the selling process.

 After closing, it is important for the salesman to follow up

the order booked so as to ensure that the order is properly
executed.

 Follow-up is also necessary to gather information from the

customers regarding product use,problems, if any, and the
level of customer satisfaction.

 It builds up goodwill, ensures feedback and encourages

repeated purchases.
 Personal
Personal selling occursSelling
where an individual salesperson sells a
product, service or solution to a client.

Characteristics
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
 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.
 Forms of personal
• selling
Order takers
• 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.
•
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
 Personal selling process (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.
 Personal selling process (2)
Preparation
and planning
It is to look
for:

• Customer’s buying criteria and needs

• Customer organisation’s
purchasing structures
• The application of the prodcut and
the features and benefits required.
Personal selling process (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 meeting
arrangement
 Personal selling process (4)
-Sales
It is topresentation
show how the product offering and
the customer’s needs match.

Need
satisfaction.
 Personal selling process (5)
Handling typical
objections
Typical objections:
Your: company, product, service, pricing;
You; you are not competitive enough
I can’t afford it; I don’t need
• it Ask the objection back.
• Agree
• and counter.
• Boomerang.
• Feel,
 Personal selling process (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.
 Personal selling process (7) Types of
sales
closure
It has reached the point where the
customer agrees to purchase.
Personal selling process (8) Follow-up and account
management
The role of personal
contact
The sales management
process