SALES

INTRODUCTION TO SALES MANAGEMENT

Meaning: It is the attainment of sales force goals in an

effective and efficient manner through planning, staffing,
training, leading and controlling organizational resources.
 Selling Vs. Marketing
SELLING
Emphasis on Product
Manufacture produce first, then sell
Management is sales volume
oriented
Planning for short term
Stresses on needs of seller
Views business as goods producing
process
Different departments work as highly
separate watertight compartments.
Cost determine price
Customers are viewed as last link in
MARKETING
On consumer needs and wants
Determines consumer needs/wants
then produce product.
Profit oriented.
Long term, future growth
Stresses needs/wants of buyer
Views business as consumer
satisfying process.
All departments of a business
operate in an integrated manner.
Consumers-price-cost
Customers are viewed as the very
Personal selling
Meaning: It is a personal communication of information to
persuade a prospective customer to buy a product or a
service or an idea that satisfies an individual’s need.
The Evolution of Personal selling Strategies
 Persuasion: In 19th century, the peddlers carried goods and would
persuade people buy their goods.

 Negotiation: As competition grew, the customers had many choices.

Here products were modified to differentiate from competitors.
Hence negotiation was more important than persuasion.

 Consultative selling: The 1970s made the selling job similar to that of
a consultant. The sellers were required to identify new needs and
new uses for the existing product.
 Business Management: In early 1990s the emphasis was on
territories and accounts as profit centres. A sales person was
expected to know the technical, financial and production
aspects of the product. Hence sales people were trained in
Business Management.
 Partnership strategies: The increasing competition, rising costs
and recession forced companies to reduce costs of producing
and marketing goods. Reduce inventory by sharing information
systems between sellers and buyers.
Types Of Personal Selling
The factors which helps in determining the types of personal
selling are customer’s choice behavior, the importance the
customer gives to the purchase and the risks involved in
buying a product.
1. Industrial Selling: B2B selling- seller seeks buyer
2. Retail selling: Customer approaches seller
3. Services Selling: intangible, inseparable, customized,
cannot be stored.
Emerging Trends in Sales Management
 Technology
 Relationship selling
 Diversity
 New selling methods
 Global and Ethical issues
 Customer orientation
Duties and Responsibilities of Sales Manager
 Determining sales force objectives and goals.
 Finalizing sales force organization, size, territory and quota.
 Forecasting and budgeting sales.
 Selecting, recruiting and training sales force.
 Motivating and leading the sales force.
 Designing compensation plan and control systems.
 Designing relationship strategies with key customers.
 Advising the company on various media, sales promotion
schemes etc.
Selling skills
 Communication skills
 Listening skills
 Conflict management and resolution skills
 Problem solving skills
 Negotiation skills
STEPS IN PERSONAL SELLING

 Prospecting
 Pre Approach
 Approach
 Presentation & Demonstration
 Handling objections
 Closing
 Follow up
1.PROSPECTING
 Process of identifying prospective buyers.
 Prospects-who have a need, will to buy and power to pay.
 Prospectus is qualified if he has the authority, need, ability
and eligibility to buy.

Ways of identifying prospects:

 References

 Cold calling

 Centre of influence

 Personal observation

 Direct mail

 Company’s records

 News papers

 Retailers

 Trade fairs, exhibitions etc

2.Pre Approach

 Prospects’ likes-dislikes, needs, preferences, habits, nature,

behavior, economic and social status etc. are known in this
stage.

Significance of Pre Approach

 Differentiate prospects and suspects.

 All possible information about prospects are collected.

 Sales presentation could be made more effective and efficient.

 Aware of needs and preferences of prospects.

3. The Approach
 Salesman and prospect meet face to face for the first
time.
 Getting prospect’s attention and persuading him to buy
are the 2 main objectives.

Keys to successful Approach:

 Take prior appointment
 Confidence, professionalism and complete knowledge about
the product.
 Salesman should make his prospect feel relaxed.
 Respect the views of the prospect and be open to criticism.
 Don’t apologize for taking the prospects time.
 Effective presentation and demonstration of the product.
 An Efficient Follow up.
4.Presentation & Demonstration
Presentation
 A presentation should be as good as the good product.

 Attractive package and display, the conspicuous placement of

the product in the display window, interior decoration of the

shop and appearance of the article.
 Works on AIDA principle

The 3 categories of sales presentation are:

1. Canned Presentations: are prepared by the company with no
scope of modification for each prospect.
2. Organized Presentations: Sales people have enough scope to
change the presentation but according to company policies
and rules.
3. Tailored Presentations: is developed from the detailed
evaluation of a prospective customer’s business and
specifically designed for his organization.
Demonstration

 Show product features clearly

 Chances of buying is more as the product

works in front of the buyer.

 Increases the confidence of the customer.
 Any doubts or confusions can be cleared.
 Demonstration speaks louder than talks.
5.Tackling the Objections
 Objections induce interaction.
 It is an opportunity for the salesman to prove his point.
 Objections related to prices, product, design, color, size, usage
method, installation, delivery schedule, transportation, financial
conditions, service etc.

Why would the prospect object?

 Not convinced
 To test salesman’s knowledge about the product.
 Lack of Authority.
 Not able to understand the product.
 Feels pressurized by the salesman.
 Trying to postpone buying.
 Does not want to buy the product.
6. The Close

 Last and most crucial stage in a sales

presentation after tackling the objections
successfully.
 Main aim is to get the order then and there

instead of some future date.

 Summarize the needs and benefits in case of

a failure.
 Not to let the prospect to change his mind.
7.Follow up.

 Generate additional leads, if sale is made.

 In case of failure, salesman can come back with

another product.

 Helps in maintaining goodwill and taking corrective

action.

 After sales service.