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An earlier explanation/ definition of sales management was, directing the sales force personnel. Later as the responsibilities taken up by the sales team grew and as the sales function evolved into a more holistic function a new definition has emerged : Sales Management is management of all marketing activities including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.

The American Marketing Association has given a current day definition of sales Management as: The planning, direction and control of personnel selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personnel sales force

a. b. c.

From the Organizations Viewpoint there are three general objectives of sales management Achieving the desired sales volume Contribution to profits in the organization Continuing growth

Planning
Building a profitable customer oriented sales team

Resources
Human Financial Raw Matls Technology Information

Controlling
Evaluating the past to guide the future

Performan ce Staffing
Hiring the right people to sell and lead Obtain Goals Product sales & profits Customer satisfaction Efficiency Effectiveness

Leading
Guiding average people to perform at above average levels

Training
Educating sales personnel to satisfy customers

Formulation of a Strategic Sales Management Programme Implementation of a Strategic Sales Management Programme Evaluation of a Strategic Sales Management Programme

` A. B. C.

Nature & Characteristics of Sales Management Its integration with marketing Management Relationship Selling Varying Sales responsibilities

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Aligning the sales plan with the marketing plan Marketing Research Customer Service Coordination Promotions (including advertising, Sales Promotion, Publicity & PR)

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` a. b. c.

Buyers and salespersons have some type of a business or working relationship Every relationship is an exchange Relationship Marketing aims at creation of customer loyalty The spectrum of relationships include Transactional relationship (Selling) Value added relationship (Counseling) Collaborative relationship (Partnering)

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Response Selling Sales Support Technical Sales Support Demand Creator or business developer Solution vendor

Sales Management, Personal Selling and Salesmanship are all related. Sales management directs the personal selling effort which in turn is implemented largely through salesmanship Salesmanship is one aspect of personal selling and never all of it. It is one of the skills used in personal selling

Salesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction. It is also defined as a seller initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favour of the sellers products or services

People Skills Ability to motivate, lead, communicate and coordinate effectively Managing Skills- Administrative skills like planning, organizing, controlling & decision making Technical Skills Training, Selling skills, negotiating skills, use of IT, problem solving abilities, Product knowledge

It is a direct presentation of a product to a prospective customer by a representative of the organization selling it. It takes place face to face or over the phone and it may be directed to a business, person or a final consumer

Some of the Objectives of personal selling are: ` To shoulder the entire responsibility of the promotion mix (when no other element of Promotion mix is used) ` To maintain contact with existing customers, take orders etc (also known as servicing existing accounts) ` To search and obtain new customers

` ` ` ` `

To secure customers cooperation in stocking and promoting the product line To inform and educate customers To assist customers in selection To provide technical assistance To assist with training the middlemens sales personnel To collect market information

Personal Selling situations Divided into 3 groups ` A - Service Selling

Inside Order Taker , Delivery Salesperson ,Merchandising Salesperson, Missionary, technical Sales person ` `

B - Developmental Selling
Creative sales person of tangibles, Creative salesperson of intangibles

C - Creative Selling
Political, Indirect, Back door Salesperson in multiple Sales

Inside Order taker here the salesperson waits for customers (e.g Sales Counter person) Delivery Salesperson Engaged in delivering the product (Person who delivers Milk, Eggs) Merchandising/Route Sales Person Works as an order taker on field mainly with retailers Missionary _Works only to create goodwill and disseminate information . Does not do any order taking (MR) Technical Sales Person Emphasizes technical Knowledge and educates customer

Creative sales person of tangibles Sales person selling vacuum cleaners , encyclopedias, automobiles. Creative sales person of intangibles- Sales person selling Insurance, advertising services, Educational programs

Political /Indirect/Back Door Salesperson Selling big ticket items by catering to the other interests of the customers (which have no connection with the product) Salespersons engaged in multiple sales- Where the sales person is required to make presentation to various entities of an organization (Ad agency salespersons making presentations to selection committee, creative department, product department etc)

Is selling a science which can be taught and has several basic concepts? OR ` Is it an art which can be learned through experience? ` This has led to two contrasting approaches to theories of selling ` The first approach relies on Experiential learning ` The second approach draws from fundamental concepts of behavioral sciences
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Developmental selling depends upon nature and kind of prospects and customers. Easiest sales are self-service sales: know their needs, know the products, capable of satisfying those needs, sell themselves and check out. Developmental selling & creativity are most difficult: sometimes you need to sell the product on factors other than merit and where continual effort is required to keep the account.

Seller Oriented ` AIDAS theory ` Right set of circumstances Buyer Oriented ` Buying Formula Theory ` Behavioral Equation Theory

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A Secure Attention I Gain Interest D Kindle Desire A- Induce Action S Build Satisfaction

Also known as situation response theory ` It holds that particular circumstances prevailing in a selling situation will cause the prospect to respond in a predictable way ` Set of circumstances include external and internal factors (prospect) ` (E.g Salesperson to Prospect Lets go out for a cup of coffee Sales person and proposal to have coffee are external factors - Prospects desire to have coffee or to go out with salesperson are internal factors)
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It stresses on importance of salesperson controlling situations Does not handle the problem of influencing factors internal to the prospect Fails to address the response side of the SituationResponse interaction

Here the buyers needs receive major attention

Solution Purchase

Need (Problem recognition)

Continuing relations ship adds the fourth element: Need (Problem recognition) Solution Purchase

Satisfaction

Adequacy

Adequacy

Need or Problem

Product/service and/or Trade name

Purchase

Satisfaction

Pleasant Feelings

Pleasant Feelings

J A Howard explains buying behavior in terms of the purchase decision process. He uses four essential elements of the learning process namely ` Drives Strong internal stimuli that impel the buyers response  Innate Physiological like hunger, thirst etc  Learned Strive for status ` Cues Weak stimuli that determine when the buyer will respond  Triggering Activate the decision process (price, aroma, etc.)  Non-Triggering- Influence the decision process but do not activate (Package, information on the cover etc)
Product cues Informational cues


Specific product & information cues such as specific price triggers.

Response is what the buyer does ` Reinforcement - any event that strengthens the buyers tendency to make a particular response B=P * D * K * V B Act of purchasing P Predisposition or inward response tendency D- Present Drive level K Intensive potential ( value of the product to satisfy the need) V Intensity of all cues
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Multiplicative in nature so if any element is 0, B will be 0.

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The planning work which is essential in eliminating calls on non buyers is called as prospecting Steps Formulating prospect definitions Searching out potential accounts Qualifying prospects and searching out Relating company products to each prospects requirement

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Sales Objections Real Insincere

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Indirect Close Direct Close

Personal selling refers to personal communication with a an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicators organization as being the source of the message.

Peddlers selling door to door . . . served as intermediaries

Selling function became more structured

1800s 1900s 2000s st century, selling continues to develop, As we begin Post-Industrial the 21 Industrial War and Modern becomingRevolution more professional and more relational Revolution Depression Era

Business organizations employed salespeople

Selling function became more professional

Evolution of Personal Selling

Production Partnering Time Period Objective Orientation
Before 1930 Making sales Short-term seller needs

Sales
19301960 Making sales

Marketing
19601990 After 1990

Satisfying Building Relationships needs

Short-term Short-term Long-term customer needs of seller needs both needs Persuader Problem solver Value creator

Role of Salesperson Activities of Salespeople

Provider

Taking orders; Aggressive Matching Creating Delivering persuasion products new goods and needs alternatives

a. b. c. d. e. f.

Identifying decision makers, decision processes, and qualified buyers Promoting to corporate, travel trade, and other groups Generating increased sales at the point of purchase Providing detailed and up-to-date information to the travel trade Maintaining a personal relationship with key clients Gathering information on competitors promotions

a. b. c.

Field sales Telephone sales Inside sales

1. 2. 3. 4. 5.

Stimulus response Mental states Formula Need satisfaction Problem solving

Salespeople help stimulate the economy Salespeople help with the distribution of innovation

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Salespeople generate revenue Salespeople provide market research and customer feedback Salespeople become future leaders in the organization

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Salespeople provide solutions to problems Salespeople provide expertise and serve as information resources Salespeople serve as advocates for the customer when dealing with the selling organization

Transaction-Focused
Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is selfinterest 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

Industrial selling
Reseller Business User Institutional selling Government as a buyer

Retail selling
customer approaches the seller

Services selling

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Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling

Salesperson Provides Stimuli

Buyer Responses Sought

Continue Process until Purchase Decision

Attention

Interest

Conviction

Desire

Action

Uncover and Confirm Buyer Needs

Present Offering to Satisfy Buyer Needs

Continue Selling until Purchase Decision

Define Problem

Generate Alternative Solutions

Evaluate Alternative Solutions

Continue Selling until Purchase Decision

The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization. E.g. Business Consultant

Selling Foundations

Initiating Customer Relationships

Selling Strategy

Developing Customer Relationships

Enhancing Customer Relationships

In order to be successful in todays global business environment, salespeople must have a solid relationship building foundation. They must: Be Trustworthy Behave Ethically Understand Buyer Behavior Possess Excellent Communication Skills

In order to be successful in todays global business environment, salespeople must also think and act strategically. The must develop strategies for: Each Sales Call Each Customer Their Sales Territories
Each strategy is related to the other

Initiating Customer Relationships

Developing Customer Relationships

Enhancing Customer Relationships

Sales Presentation Delivery Earning Value through Follow-up, Adding Customer Commitment Self-leadership, and Teamwork Prospecting Preapproach Presentation Planning Approaching the Customer

Sales job is very stressful by nature and attrition is highest in this field. Why? a mismatch between the ability and aptitude of a salesperson and the nature of sales job. Vertical growth is slow in many organizations which results in migration. A sales job has highest probability of social rejection (fewer prospects convert to customers). This demotivates the sales force. Therefore, people with right aptitude and mindset for building career in sales should be selected.

Involves 4 stages
1. x x x x 2. x x 3. x 4. Human resource planning process key decisions are made on examining a salespersons turnover Conducting the strategic position analysis Establishing the hiring objectives Deciding on the number of sales people Recruitment stage Identifying the best source of candidates, & Generating a pool of candidates for selection Various techniques are used to identify the right candidate Interviews, testing, reference checks, medical examination. Socialization x Orientation to organization and territories or units.

Turnover

Strategic Position Analysis

Job Qualification

Establish Hiring Objectives

Decide on the no. of salespeople to hire

Job Description

Planning

Identify best sources of recruitment Internal sources of recruitment External sources of recruitment

Recruitment

Generate database of candidates

Organizational Characteristics Company image & climate Styles of supervision, compensation, & motivation plan of the company

Evaluate candidates

Sales Persons desirable Characteristics

Selection

Select and induce candidates to accept position Socialize

Socialization

Determination of performance measures Identification of critical success factors Performance dimensions of the position Operationalization and establishment of performance The standards and the design of assessment tools

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The average percentage of the sales force that leaves a sales organization in a given period of time. Reasons for leaving are:
Better career prospects elsewhere To avoid poor working conditions and inferior supervision Perceived or real low compensation Promotions or reassignments to different territories Retirement

` ` `

So , a sales manager has to plan for the replacement as well as for the expansion and new market coverage Hiring when a territory becomes available is known as just-in-time hiring Hiring for a territory that will become available in near future is called stock piling

Gathering and organization of information concerning the tasks, duties and responsibilities of specific jobs. 2 techniques to do job analysis are:
Task inventory analysis: involves 3 steps

x Interview x Survey x Generation of KSA metrics

Critical incident technique

x x x x

Job analysts develops the dimensions Generates the incidents, Re-translates them to the work situations, and Assigns the effectiveness values

1.

Interview : goal is to generate specific descriptions of individual task

1. Develop a list of tasks that are part of the job 2. Interviews are conducted both with workers and their managers

2.

Survey: task inventories are administered with rating scales

1. Importance of each task is rated 2. Frequency of occurrence during the execution of the job, and 3. The level of training that is required.

3.

Generation of task by KSA (Knowledge, Skills and Ability) metrics:

1. KSA metrics is used to rate the extent to which a variety of KSAs are important for the successful completion of the job. 2. Done by experts such as supervisors, managers, job holders & HR consultants

Job analysis techniques generates:

Job Qualification refers to the worker characteristics needed to perform the job successfully Job description identifies, defines and describes a job in terms of duties, responsibilities, working conditions and the specifications.
x E.g. working conditions problems faced in selling, expected present sales, estimated future sales, risk involved in selling, etc