Sales Management

Sales Management
Setting objectives


Organizing Organizing activities

Motivate, evaluate, & control



Recruit, select, train, develop, manage, & motivate

Sales Management
‡ Sales means transfer of goods & services for money ‡ Management of sales is concerned with the selling function ‡ The planning, direction and control of personal selling including recruitment, selecting, equipping, assigning, routing, supervising, paying & motivating, these tasks apply to personal sales force

Objective of Sales management ‡ Increase Sales Volume ‡ Profit Maximization ‡ Growth .

Function of Sales management ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Sales Planning Sales Forecasting Organizing Co-ordination Staffing Controlling Directing Budgeting Decision making .

Selling is a means of promotion i.e. . delivery of goods & collection of payment ‡ In Modern Marketing.What is Selling? ‡ Process of contacting potential customers. presenting & demonstrating the product or service. taking orders. It persuade a prospective buyer to buy goods & converts a prospect into a customer. persuasive communication.

by telephone.What is Personal Selling? Involves Two-Way. through video conferencing. . Personal Communication Between Salespeople and Individual Customers either:     face to face. or by other means.

‡ The term salesperson covers a wide spectrum of positions from: ± Order taker (department store salesperson) ± Order getter (someone engaged in creative selling) ± Missionary salesperson (building goodwill or educating buyers) .Nature of Personal Selling ‡ Most salespeople are well-educated. welltrained professionals who work to build and maintain long-term relationships with customers.

Characteristics of Personal Selling ‡ Flexibility ‡ Identify best prospects ‡ Adapt to situations ‡ Engage in communication ‡ Builds Relationships ‡ Long term approach ‡ Assure buyers that they will receive appropriate services ‡ Solves customer¶s problems .

Personal Selling Limitations ‡ Can not reach mass audience ‡ Expensive per contact ‡ Labour intensive ‡ Numerous calls needed to generate sale .

The Role of the Sales Force Represent the Company to Customers to Produce Company Profit Sales Force Serves as a Critical Link Between a Company and its Customers Since They: Represent Customers to the Company to Produce Customer Satisfaction .

Some Traits of Good Salespeople Attitude .

concerning the usefulness of a product . emotional objection. doubt. suspicion. ‡ Process to convert a suspect into prospect then into buyer ‡ An ability to remove ignorance.Salesmanship ‡ Art of selling goods & services to the buyer ‡ Personal linkage to customer ‡ Power or ability to influence People to buy or turn a prospect into a buyer.

Features of Salesmanship ‡ Ability to persuade ‡ Benefits both buyer & seller ‡ Commercial honesty ‡ Winning Society¶s confidence ‡ Education process ‡ Build a chain of satisfied customers .

Qualities of a Good Sales Manager Sound health Physical Hardworking Leadership Personal Magnetism Mental Honesty Forcefulness Tact Character Humanity Self Discipline Mental Sound Judgment Receptiveness Ability to reach Intellectual .

Duties & Responsibility of Sales manager ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Planning sales Advising management Selection & Appointment Co-ordination & Directing Training the Sales Force Compensating the Sales Personal Maintaining the sales office Controlling the sales activity Study market condition Allocation of sales Territory & sales Quota Managing Sales promotion & advertisement .

Theories of Selling ‡ AIDAS Action Desire Interest Attention Satisfaction ‡ a) b) c) d) Stimulus Response Theory Self Price Concession Announcement of Price changes Preferential treatment to important buyers ‡ a) b) Buying Formula Theory It seeks answer to ± why. It takes into account the internal factors and less importance to external factors . what«.

AMA .Personal Selling ³ It is oral presentation in a conversation with one or more prospective purchasers for the purpose of making SALES´ .

Functions of Personal Selling ‡ ‡ ‡ ‡ ‡ ‡ To make Sales Service to Customers Keeping Sales Record To Develop good relation with the client To develop goodwill of the company To achieve sales target .

Process/Steps in the Selling Process Step 1. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Prospecting and Qualifying Identifying and Screening For Qualified Potential Customers. Pre-approach Step 3. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product ³Story´ to the Buyer. and Showing the Product Benefits. Approach Step 4. Step 2. Presentation/ Demonstration .

Step 6.Process/Steps in the Selling Process Step 5. Step 7. Handling Objections Seeking Out. Follow-Up Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business. . and Overcoming Customer Objections to Buying. Closing Asking the Customer for the Order. Clarifying.

Alternative Steps Find ¶em Grab µem Show µem Answer µem Sell µem Keep µem .

Creative Selling Process Identify and Qualifying Prospects ‡ Prospecting: Identifying likely new customers ± Leads ‡ Qualifying: Evaluating a prospect¶s potential .

Characteristics of Good Prospect ‡ ‡ ‡ ‡ Need to buy Ability to buy Authority to buy Accessibility .

Methods of Prospecting ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Acquaintances references Cold Calling Center of influence method Personal Observation method Direct mail or telephone method Company¶s record Newspaper Retailers Other Methods .

Creative Selling Process Pre-Approaching the Prospect ‡ Learn about the industry ‡ Competitor¶s analysis ‡ Knowledge about prospect .

Sources of Information ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Newspapers Company¶s Record Customers Special Investigation Fellow Salesman Retailers Directories Other Sources .

Creative Selling Process Approaching the Prospect ‡ Contact ‡ Rapport ‡ ³Only one chance to make a first impression´ .

Methods to Approach ‡ ‡ ‡ ‡ ‡ ‡ ‡ Personal call without introduction Personal call with introduction Sending the business card Writing for an appointment Appointment over telephone Use of sales proposal letter Sending the Company Brochure .

Creative Selling Process Sales Presentation ‡ Persuasive communication ‡ Attention ‡ Interest ‡ Desire ‡ ³Tell the product¶s story´ ‡ Create Need .

Essential features of a Presentation ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Arousing Interest Promptness in presentation Clarity in presentation Showing proper quantity & quality Demonstration & dramatization Appealing to the senses Suggests Test Handling the Goods .

Creative Selling Process Handling Objections ± Questions ± Reservations ‡ ‡ ‡ ‡ Understand Concern Counterarguments Acknowledge concern Clues to process .

They are the feelings of disapproval & usually raised by the prospects Procedure for handling Objection ‡ ‡ ‡ ‡ Listen attentively Anticipating objection Admitting valid objection Preventing objection .Objection It is the expression of disapproval of the action taken by the salesman.

Some Common Objection
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Price Offer substitute Justify the price Offer discount Offer installment payment Price factor can be avoided Payment objection Service Objections Time to buy

Methods of Handling Objection
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Superior feature method ³Yes«but´ method Reverse English method Indirect denial method Comparison method Another angle method Testimonial method Question or why method

Creative Selling Process

Closing the Sale ‡ Closing signals ‡ Trial close ‡ Ask for the sale

It may be positive or negative as well Reason for Unsuccessful Closing ‡ ‡ ‡ ‡ ‡ Wrong Attitude Inadequate presentation Wrong interpretation Interruption A trial close .Closing Closing is the process of helping people makes a beneficial decision.

Methods of Closing a Sale ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Affirmative close Erecting barriers Narrowing the choice Offering inducements Assumption close Pros n Cons method Summarization of Sales points Implying that a sale is made .

Creative Selling Process Following Up ‡ Commitments met ± Shipment ± Performance ‡ Reinforce / Strengthen relationship ‡ Satisfied customers rebuy & recommend .

Objective of Personal Selling ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ To understand Selling Job Search for new customers Maintain regular contact with customers To obtain the desired market information To increase overall volume of sales To serve & retain market share To remove the doubts from the customer's mind To keep the selling expenses within limits To provide technical assistance to customer wherever necessary To convince the customers about the quality of product & increase the credibility of company ‡ To keep customers informed regarding changes in the product line & other related aspects ‡ To give feedback to the company about its product & service in the market .

Source of research information Disadvantages of Personal Selling ‡ ‡ ‡ ‡ ‡ Inconsistent Messages Sales force/Management Conflict High Cost Poor Reach to Market Potential ethical problems .Advantages of Personal Selling ‡ ‡ ‡ ‡ ‡ Allowing for 2-way communication Tailoring of the message Lack of distraction Involvement in the decision process.

Approach to be adopted by Retail Sales Man ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Attract the hesitant customer Welcome the customer Greet the customer Offer seat Opening Sentences Willingness to serve Right Attitude Avoid too many question Tell important selling points Welcome objection. questions. etc Deal with lookers properly .

Goal Setting It involves establishing specific measurable & time targeted objectives Goal Setting Process ‡ ‡ ‡ ‡ ‡ Reflection (definition of goal) Focus Plan (How to go about it) Enlist support along with time Revisit the goals after implementation .

Sales Forecasting ³It is an estimate in monetary terms (sales).´ The forecast may be for a specified item or for an entire line or for a market or for a specified geographical area. or physical units for a specified future period under a proposed marketing plan or program and under an assumed set of economic and other forces outside the unit for which the forecast is made. It includes consideration of outside uncontrollable forces as well as internal proposed change in marketing strategy .

Short Term       Formulation of suitable production policy Provision of raw materials Appropriate pricing policy Regular availability of labour Forecasting of short term financial requirements Setting of sales target B.Objectives of Sales Forecasting A. Long Term       Estimating cash inflows Determining dividend policy Man-power planning Planning of plant capacity Budgetary control over expenses Forecasting of long term financial requirement .

Imposes greater confidence in sales Personnel . They can be from different fields such as Sales. which is charged with the development of a sales forecast. panel or committee of certain high ranking executives. Advantages ‡ ‡ ‡ Easy & simple Based on experience hence elaborative statistics is not required Economical  Sales Force Composite Method It is aggregate of individual sales personnel's forecast.Techniques of Sales Forecasting 1. Production etc. It is then scrutinized & discussed at each successive executive level & if necessary modification are made. Utilization of specialized knowledge of sales personnel. Marketing Research. Finance. Judgemental Method:  Executive Opinion Method Establish a jury. Advantages ‡ ‡ ‡ Result are nearly accurate as result producer are responsible for it.

. Much economical due to no spending on surveys  Market Test Method Introduce the product in a part of targeted market & analyze the future sales. Total sales is then made after the compilation of data. they expect to buy in a given future period. Survey of Buyer¶s Interaction Actual users of the company¶s product are contacted and are asked to submit the estimated quantities to purchase the product. By analysis forecasting can be done Advantages ‡ ‡ ‡ ‡ Forecasting can be done easily & rapidly Opinions of experts makes it nearly accurate Suitable for launch of new product or where past sales record is not available. workshops etc may form the basis of sales. Opinions appeared in newspaper.  Expert Opinion Opinions are collected from the outsider specialists in the field. journals. seminars. Suitable for short run forecasting. Advantages ‡ ‡ ‡ ‡ Quite expensive Easy to estimate as actual buyer is involved It is one of the finest method for test marketing as well as product for limited territory.

2. to which the first is related instead of using regularly spaced time intervals. Steps involved: o Determine the factors that affect the sales o Measure the degree of relationships b/w sales & other variables o Forecast the dependent variables from the independent variables . Statistical Methods  Trend Method o Time Series Analysis o Exponential Smoothing o Continuity Extrapolation  Regression Techniques Here an attempt is made to estimate a statistical series of dependable variables through fitted relationship by using independent variables.

‡ Disadvantages of Statistical Method  Does not rely on personnel skills & experience  Involve complicated statistical method  Requires considerable technical skill & experience for it to be effective . the factors & their relationship with the sales  The degree of reliability is indicated  These methods force the forecaster to quantity assumption underlying his estimates & thus unable checking of result by the management  All major factors are taken into account which influence sales.‡ Advantage of Statistical Method  They help describe in measurable objective terms.

Procedure ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Situation Analysis Identification of problem & opportunity Development of sales forecast Formulation of Sales Objectives Determination of sales tasks Specification of resource requirement Finalization of projection Presentation & review Revision of sales Budget Approval of Budget .Sales Budget It is a detailed statement of estimates of sales volume in terms of quantities & revenue & also the estimated sales expense during a given period.

Models.Types of Sales Budget ‡ Selling Budget Compensation Travel n Entertainment Prospect Seminar Discount & Allowances ‡ Servicing Distributor & Customer traveling Technical Counseling ‡ Support Recruitment & Selection T&D Sales Meetings Customer Services Warehousing ‡ Advertising & Promotion Budget Media Catalogues Fairs n Exhibition Samples. Displays Selling aids Contest & Deals ‡ Fulfillment Packing & Shipping Billing Credit Warranty Returns ‡ Administration Office Expense Telephone & Postage .

Sales Territory A Sales Territory is a grouping of customers & prospects assigned to an individual Salesperson Why Sales Territory ‡ ‡ ‡ ‡ ‡ ‡ ‡ Providing proper market coverage Controlling selling expense Evaluating Sales Personnel Contributing to sales force morale Co-Ordination of personal selling & advertising efforts Planning & Control at lowest organizational level Meeting the competition more effectively .

Basis for establishing Sales Territory ‡ Geographic divisions ‡ Customer types ‡ Product lines .

Geographic Division Vice-President Marketing Regional Sales Manager Regional Sales Manager District Sales Manager District Sales Manager District Sales Manager District Sales Manager Sales Rep East Region Sales Rep West Region Sales Rep South Region Sales Rep North Region .

Customer Type Vice-President Sales New Accounts Manager Existing Accounts Manager New Account #1 New Account #2 Existing Account #1 Existing Account #2 .

Product Line Vice-President Sales Snack Foods Sales Manager Beverages Sales Manager Sales Rep Sales Rep Eastern Region West Region Sales rep Sales Rep Eastern Region West Region .

‡ A sales quota is a part of a company¶s total estimated sales assigned to a salesman / territory / branch / distributor /dealer or to some other selling unit. ‡ A marketing unit can be a salesperson or a sales territory.Sales Quota ‡ Quantitative objectives assigned to specific sales organization unit or marketing unit. as a goal to be attained in designated future period of time. such as Sales Distributor or Sales region. ‡ It provide standards for evaluating the performance of marketing units either in physical terms or in rupee terms. .

 To ensure systematic individual sales achievement to cope with the sales forecast  To maximize sales in physical & in monetary terms  To ensure a systematic & rational physical distribution of goods .Objective behind Sales Quota ‡ To provide quantitative performance standards ‡ To obtain tighter sales & expense control ‡ To motivate desired performance ‡ Sales Contests ‡ Others:  To obtain more effective budgetary control.

hence may be vague. .Advantage of Sales Quota ‡ ‡ ‡ ‡ Evaluation of Sales performance Controlling Selling Expenses Source of motivation Maximization of Sales & Profit Disadvantage of Sales Quota ‡ ‡ ‡ ‡ ‡ Low Quota Fixation Less Personnel contact with customers if target is achieved Wastages of Resources if under-utilized May incur loss Not based on statistical methods.

routing. is the learning. as these tasks apply to the personal force.Sales Organization ³S. motivating.O. training. directing & controlling of sales person including recruitment.´ -AMA Importance of Sales Organization ‡ ‡ ‡ ‡ ‡ Increase managerial efficiency & specialization Better co-ordination & control Advantage of large scale production-profitability Creates demand of goods Reconciliation of complaints . paying. selection. supervising. equipping. assigning.

Function of Sales Organization ‡ Planning Function  Sales Forecasting  Sales Budgeting  Selling Policy ‡ Administrative Function     Selecting Salesman Training Salesman Controlling Salesman Remuneration of Salesman ‡ Executive Function  Sales Promotion  Selling Routine .

Credit & Collection Deptt. Advertising Deptt. Market Research Deptt. Public Relation Deptt. Personal Deptt. .Various deptt of Sales Organization ‡ ‡ ‡ ‡ ‡ ‡ ‡ Sales Deptt. Sales Promotion Deptt.

Directing the Sales Force ‡ ‡ ‡ ‡ Recruiting and selecting Motivating Training & develop Compensating .

Re-Employment o External Recruitment ± Advertisement. Transfer. Colleges & Education Institutions.Recruitment of Sales Person Process ‡ Job Analysis ‡ Determination of the characteristics & qualities to be processed by the salesperson ‡ Tapping the various sources of recruitment ‡ Carefully selection of the candidates ‡ Appointment Letter o Internal Recruitment ± Promotion. Recommendation. Competing Firms. Employment Exchange. Whole seller & Retailers .

Scott) ‡ It is a force that directs our Behaviour Importance of Motivation ‡ ‡ ‡ Improve Performance Relax Tension Make Sales force happy Motivation Satisfaction Effort Performance Reward .Motivation of Sales Person ‡ It is the process of Stimulating people to perform in order to accomplish desired goals (William G.

Factors Motivating Sales Person ‡ ‡ ‡ ‡ ‡ ‡ ‡ Work Culture Adequate & fair earnings Appreciation. Recognition & respect Spirit of Competition Opportunity for growth Killer¶s Instinct Future Security .

Journals etc Honours & Awards .Bulletins. Magazines.Sales Manager¶s tool for Motivation ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Remuneration Plan Promotion Personal Contact & Counseling Correspondence Training Participation Positive Feedback Job Clarity Sales Contest Publications.

Importance of Training ‡ ‡ ‡ ‡ ‡ ‡ ‡ Improve Sales performance Influence prospects in a better way Provides experts knowledge Reduces Wastages Reduces control & supervision Develops high morale Low turnover of Sales Force .Training the Sales Force Sales Training is the international & sound application of ordinary human sense to the problem of helping the sales personnel to make the most of its talents.

Content of Training ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ About Company About Product/Services Target on after sales Services Business Ethics Selling Skills Reporting Systems Sales Policy Customers Market & Competition Channel of Distribution .

for paying the services rendered by the sales force.Compensating the Sales Force ‡ It refers to the monetary & Non-Monetary expenses incurred by the sales organization. ‡ It is. the total [payment including monetary (Salary & Wages) & Non-Monetary (Welfare Expense) Importance of Compensation ‡ ‡ ‡ ‡ ‡ Attract efficient & desirable Sales People Keep sales force satisfied Retain Sales Force Maintain good relation b/w employer & employee Correlating Sales Costs & Sales Results . thus.

Compensation Methods Straight salary or wage Salary plus commission Straight commission QuotaQuota-bonus plan Commission with draw .

Characteristics of Sound Compensation ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Simplicity Fairness Incentives Flexibility Control Guaranteed Income Economical to administer Help to attain objective Competitiveness .

objectives & methods employed by the top management Management Cycle or steps of evl ‡ ‡ ‡ ‡ Establishing performance Standards Recording actual performance Evaluating actual against standards Taking appropriate action n .Performance Evaluation It is done to assess the weakness & strength of the sales personnel & also the company¶s policies.

Evaluation and Control ‡ Required reports ‡ Measurement against plan or sales standards ‡ Expense control ‡ Productivity ‡ New account development .

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