PPTs - SMBD Chapter 1 To 6

Chapter 1
Introduction to Sales
Management
1
© Oxford University Press 2005, All rights reserved.
Evolution of personal selling
Partnership
Strategies
Business
Management
Consultative
Selling
Negotiation
Persuasion
2
Marketing concepts
1) Production concept
2) Product concept
3) Selling concept
4) Marketing concept
5) Societal concept
3
Nature and role of sales
management
 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
4
Types of personal selling
• Industrial selling
• Retail selling
• Services selling
5
Types of Selling
Inside Order Taker
Order
Takers Delivery Sales
People
Outside Order
Takers
Selling Order Missionary Sales
Function Creators People
New Business
Sales People
Front Line Organizational

Sales People Sales People
Order Getters Consumer

Sales People
Sales Technical Support

Support sales People
Sales
people Merchandisers
6
Sales management process
Formulation of a strategic sales programme
Implementation of the sales programme
Evaluation and control of sales force performance
7
Chapter 2
Selling Skills and Strategies
8
Selling situations
 Sales task and function
 Maintenance selling
 Developmental selling
9
Selling skills
Effective
Problem
communication
solving skills
skills
Selling Skills
Listening Skills
Negotiation
and bargaining
skills
Conflict management and

resolution skills
10
Communication process
Managing body language:

 Personal Appearance
 Posture
 Gestures
 Facial Expressions
 Eye Contact
 Space Distancing
11
Process of listening
Attention
Interpretation
Remembrance
Evaluations
Response Action
12
Levels of listening
Feedback
Paraphrasing
Clarifications
Emphatic listening
Active Listening
Barriers to Listening !
13
Conflict management skills
 Models of conflict
 Components of conflict
 The conflict resolution process:
- lumping
- avoidance
- coercion
- meditation
- conciliation
- arbitration
- adjudication
- negotiation
14
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
15
Problem solving skills
• Habit I: be proactive
• Habit 2: begin with an end in mind
• Habit 3: put first things first
• Habit 4: think win–win
• Habit 5: seek first to understand, then to
be understood
• Habit 6: synergize
• Habit 7: renewal
16
Problem solving process
Define the problem
Generate alternative solutions
Decide the solution
Implement the solution
Evaluate the solution

17
Chapter 33
Chapter
The Selling
The Selling Process
Process
18
Stages in the selling process
Pre-
Pre-sale approach Approach to
Prospecting before the
preparation the customer
interview
Handling
Follow up Closing the Customer Sales
action Sale Objections Presentation
19
Prospecting
Successful prospecting
50 potential prospects 50 potential prospects

15 Qualified prospects 25 Qualified prospects
6 Interviews 17 Interviews
1 sale 7 sales
No Yes
Successful prospecting
20
Process of prospecting
Identify and define prospects
Search for sources of potential

accounts
Qualify the prospects from the

suspects
21
Methods of prospecting
 Cold canvassing
 Endless chain customer referral
 Prospect pool
 Centers of influence
 Non competing sales force
 Observation
 Friends and acquaintances
 Lists and directories
 Direct mail
 Telemarketing
 Trade shows and demonstrations
22
Closing the sale
• Methods of closing the sale

• Follow-up action
• B2B selling
23
Chapter 6
Sales Organization
24
Sales organization
• an organization of individuals either working together

for the marketing of products and services manufactured
by an enterprise or for products that are procured by the
firm for the purpose of reselling
• a sales organization defines duties, roles, rights, and

responsibilities of sales people engaged in selling
activities meant for the effective execution of the sales
function
25
Sales organization
contd.
• a structural body through which the functions of

sales management are carried out
• sales organization always makes efforts to increase sales,

thereby achieving the principle of profit maximization,
which contributes to the overall growth of enterprise
26
Factors influencing structure
• product and service related factors
• organization related factors
• marketing mix related factors
• external factors:
- the speed of market change
- reduction in the number of vendors per
buyer
- closer to customer relationships
- changes in regulations and international
practices
27
Design by territory
VP Marketing
National Sales
Manager
Divisional Manager Divisional Manager Divisional Manager

(East) (North) (West)
Regional Sales Regional Sales Regional Sales

Manager Manager Manager
District Sales District Sales District Sales

Sales Staff Sales Staff Sales Staff

(City wise) (City wise) (City wise)
28
Design by product
President,
Marketing
Product Manager (A)

(Sales) (Training) (Promotion)
Product Manager (B)

(Sales) (Training) (Promotion)
29
Design by customer
President
(Marketing)
Vice President
(Marketing)
Sales Manager Sales Manager Sales Manager

Industrial Relations Wholesalers Retail Sales
Sales People Sales People Sales People
30
President
Functional Vice President Vice President Vice President

(Production) (Marketing) (HRD)
Geographic
Marketing Manager Combined Marketing Manager
International
India
Sales Org. Design
G.M G.M G.M
Consumer care International Sales International Sales
Customer
Divisional Manager Divisional Manager Divisional Manager
Soaps Paper Food Product
Eastern Sales Western Sales Northern Sales

Division Division Division
Europe Division America Division Gulf Division

31
Sales Organization
Key account sales
- focus on CRM
- customer profitability and value analysis
- the few accounts give incremental returns
- national accounts
Sales process automation

- EDI – Electronic Data Exchange
32
Number of sales people
Affordability method (based on sales budget)
Incremental method
Workload method
33

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Chapter 1

Front Line Organizational

Order Getters Consumer

Sales Technical Support

Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

 Sales task and function

Conflict management and

Managing body language:

Generate alternative solutions

Decide the solution

Implement the solution

Evaluate the solution

50 potential prospects 50 potential prospects

Identify and define prospects

Search for sources of potential

Qualify the prospects from the

• Methods of closing the sale

• an organization of individuals either working together

• a sales organization defines duties, roles, rights, and

• a structural body through which the functions of

• sales organization always makes efforts to increase sales,

• organization related factors

• marketing mix related factors

Divisional Manager Divisional Manager Divisional Manager

Regional Sales Regional Sales Regional Sales

District Sales District Sales District Sales

Sales Staff Sales Staff Sales Staff

Product Manager (A)

Manager Manager Manager

Manager Manager Manager

Sales Manager Sales Manager Sales Manager

Sales People Sales People Sales People

Functional Vice President Vice President Vice President

Eastern Sales Western Sales Northern Sales

Europe Division America Division Gulf Division

Sales process automation

Affordability method (based on sales budget)

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