Module I: Introduction

Differences between Selling and Marketing

2
Transaction-Focused vs. Relationship Focused
Transaction-Focused
• Short term thinking
• Making the sale has priority
over most other
considerations
• Interaction between buyer
and seller is competitive
• Salesperson is self-interest
oriented
Relationship-Focused
• Long term thinking
• Developing the relationship
takes priority over getting
the sale
• Interaction between buyer
and seller is collaborative.
• Salesperson is customer-
oriented
Problem Solving Selling

Continue
Generate Evaluate Selling
Define
Alternative Alternative until
Problem
Solutions Solutions Purchase
Decision
Consultative Selling

Business Consultant

The process of helping

customers reach their strategic
goals by using the products,
service, and expertise of the Strategic Orchestrator
selling organization.

Long-term Ally
 Traditional Sales Approach

• In vogue before the World War II.

• Output was limited and producers devoted their efforts to physical
distribution.
• One-sided communication.
• Few sellers dictated terms of purchase and consumers accepted
them.
 Modern Selling Approach

• Hinges on serving the customer with the best possible solutions.

• Focuses on individual transaction approach.
• Customerization, not customization is the benchmark.
• Advent of CIM(customer involvement management ) , EDI (Electronic data interchange ) and
CRM
 THE NATURE AND IMPORTANCE OF SALES MANAGEMENT

According to Robert N. McMurry in his famous article ‘The Mystique of

Super Salesmanship’ (Harvard Business Review, March-April 1961, p.114)
classified a salesperson’s position in the organization on following ways:-

•Position wherea Salesperson’s jobis predominantly to deliver a product;

•Positions where a salespersons is predominantly an internal order taker;

•Positions wherea salesperson is also predominantly an order taker

but works in the field;
THE NATURE AND IMPORTANCE OF SALES MANAGEMENT
• Positions where a salesperson is not expected or
permitted to take an order but is called only to build
goodwill or to educate an actual or potential user;

• Positions where the emphasis is placed on technical

knowledge;

• Positions which demand the creative sales of tangible

products;

• Positions requiring the creative sale of intangible

products;
Types of Personal Selling
Industrial selling (or B-2-B Selling)
• Four categories are:

1. Selling to resellers

2. Selling to business users

3. Institutional selling

4. Selling to governments
10
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

11
Types of Personal Selling

Order taker salespeople

• Inside order takers – retail sales assistants

• Delivery salespeople – deliver products to customers

• Outside order takers – respond to customer calls

Order creators
• Missionary salespeople – persuade customers to promote a seller’s brand

12
Types of Personal Selling

Order getters
• Set of people who persuade customers to make a direct purchase

 Organizational salespeople

 Consumer salespeople

 Technical support salespeople

 Merchandisers
13
Types of Personal Selling

14
 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
 Role of a Sales Manager
• Market analyst • Planner
• Decision maker • Forecaster
• Budget maker • Organizer
• Resource allocator • Communicator
• Recruiter • Selector
• Trainer • Motivator
• Leader • Advisor
• Problem solver • Coordinator
• Controller

16
 Skills of Sales Managers

• People skills.
• Managerial skills.
• Analytical skills.
• Conceptual skills.
• Technical skills.
 Emerging trends in Sales Management
•Diversity among Sales-force- There is always exist diversity between sales-force of an
organization. Sales manager has to accommodate himself with people of different background
within his sales-force.

•Team Based Selling Approach- In recent years it is common approach for the
organization to sell the product as a team to build long- term relationship with potential
customers. It is also very useful when technically complex products are in the process to sell.
Generally sales team consists of top management, inbound and outbound salespersons,
technical specialists etc.

•Multi-channel Operations- in today’s competitive world, multi- channel operation

system is very useful to reach out for potential customers in different ways. It is very handy
for i) lowering channel cost,
ii) customized selling techniques with broad coverage.
 Emerging trends in Sales Management

•Ethical and Social Issues- In recent years it is necessary to abide social and ethical
issues such as legal constraints, provide social values to customers’ expectations and
taking part in events related to corporate social responsibilities. Sales manager has to
understand the complex nature of the society and take necessary steps to deal impartially
with various social groups.

•Professionalism within Sales-force- Sales manager should have professional

attitude to process sales operation. As customers are well informed and aware about the
market condition thoroughly so it is necessary to gather knowledge, skills and right
attitude to motivate them. Reliability, professionalism, integrity and thorough market
knowledge is very necessary for today’s competitive world.
20