Sales Management : Definition

The Planning ,direction and control of personal selling , including recruiting ,selecting ,equipping ,assigning , routing ,supervising ,paying and motivating as these tasks apply to the personal sales force . American Marketing Association

SM Activities
Develop a Sales Strategy Design the Sales Organization Develop the Salesforce Direct the Salesforce Determine Effectiveness & Performance

Sales Strategy 4 parts

Classification of accounts Relationship strategy
Transactional relationship Value added relationship Collaborative relationship

Selling methods : Channel strategy

Sales Strategy: Sales Force

Size of Sales Force Type and Quality of Sales force Territory Designing Task Allocation Recruitment and Training Procedures Coordination with other departments Performance Appraisal & Control system No. and type of Channels and their relationships

Develop Selling Strategy

Relationship Strategy Sales Channel Strategy Hard Sell vs Soft Sell Instant Service /Customer Delight

Hard Sell vs Soft Sell Strategy

Hard Sell Concern for Self Canned Presentation Talking Soft Sell Concern for Customer Questions for discussions Listening

Pushing Product Presenting features

Advocating without acknowledging

Providing buying opportunities Presenting benefits

Acknowledging needs

Sales Manager : Role

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Planning Sales Advising Management Selection and Appointment Coordinating and directing Training the Sales Force Allocation of Sales territories and sales quotas Compensating the sales personnel Maintaining the Sales Office Controlling the sales activities Studying market conditions Managing sales promotion and advertising

Roles of Sales Force

1.

Deliverer
Delivery of products Eg: selling milk,bread,soft drinks etc. Product is generic in nature Delivery in case of purchase through internet

2.

Order taker
Only persuasion delivery is done through dealers/distributors or courier

3.

Missionary
Build goodwill and create favorable attitude Medical representatives visiting doctors

4.

Technician
Technical consultant Companies making plants and equipments

5.

Demand Creator
Education and taking orders vacuum cleaners , insurance agents

Sales Management Process

Sales Plan formulation Sales Plan implementation Evaluation and control of the Sales force

Sales Management Process

Evaluation and control of Sales force

Sales Plan implementation

Sales Plan formulation

Setting objectives Organizing the Sales force Developing account management policies

Sales force recruitment and selection

Quantitative assessment
Behavioral evaluation

Sales force training

Sales force motivation and compensation

Sales Forecasting
It is an estimate of Sales during a specified future period which is tied to a proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces .

Sales Forecast
Is an estimate of sales, in dollars or physical units ,in a future period under a particular marketing program and an assumed set of economic and other factors outside the unit for which the forecast is made . A sales forecast may be for a single product or for an entire product line Such forecasts are short term , or operating ,sales forecasts rather than long range sales forecasts ,which are used for planning production capacity and for long run financial planning . Operating Sales forecast is a prediction of how much of a companys particular product (or product line) can be sold during a future period

Methods of Sales forecasting

Survey Method Expert Opinion Market studies Method Sales Force opinion Method Statistical Methods : Trend Method, Time Series Method , Regression Analysis etc .

Steps in Sales Forecasting

Defining the objectives to be achieved Defining various products into homogeneous groups Analysis of various factors for Sales Forecasting Selecting the method Collecting and analyzing the related information Drawing conclusions from the analysis Implementing the decisions taken Reviewing and Revising the sales forecasting from time to time

Sales Territories
A sales territory comprises a group of customers or a geographical area assigned to a sales unit . The territory may or may not have geographic boundaries It represents a group of customer accounts , an industry , a market or a specific geographic area .

Why sales territories ?

To obtain entire coverage of market To establish salespersons responsibility To evaluate performance To improve customer relations To reduce sales expenses To allow better matching of salesperson to customer To benefit sales people and the company

Factors / Considerations
Sales Driving Distance Lead Management Workload

Sales Quotas
Sales Quota refers to an expected routine assignment to sales units .to territories , region , branches , districts , individuals etc . Quotas provide performance targets Provide standards Provide control Quotas are motivational

Types of Sales Quotas

Sales Volume Quotas Sales in Rs , volume Expense Quotas selling costs / expense budget Activity Quotas no. of presentations made / no. of new a/c opened /no. of dealers visited etc . Quota combinations

Salesmanship

Salesmanship : Definition

The art and science of helping people identify their needs , create desire to fulfill these needs , find and match the product services with these needs and desire with the soul aim to obtain a maximum level of satisfaction

Salesmanship: As an art
Artistic quality of presentation , presenting finer aspects of the products Presentation is logically made to convince other person to become interested

The art of social disparity is used to inculcate a sense of desire to possess .

Salesmanship : As science
Research on consumer behavior Action and reaction Sequential happening of events (process of buying and selling)

Personal Selling

Personal Selling : Qualities

Personal Confrontations
Interactive relationship

Cultivation
Growth of relationship due to personal touch

Response
Customer feels obligated to respond

Features /Aspects of Personal Selling

Enhances customer confidence in the seller Promotes long term business relations through personal intimacy Provides human touch to business transactions Helps facilitate the seller to understand each customers needs and preferences more clearly Helps satisfy the customer by modifying the product as per customers choice and preference Powerful and effective tool for convincing the customer about the product Fosters better understanding of the product and an interactive opportunity to liaise with the sales personnel.

Process of Personal Selling

Prospecting & Pre- Approach Approach Presentation & Demonstration Meeting of objections Closing the Sale Follow up and Maintenance

Prospecting
Method of finding out the likely or potential customers
Need to Buy Ability to buy Authority to buy Accessibility

Prospecting
Acquaintance References Cold Calling Centre of Influence Method Personal Observation Method Direct Mail or Telephone Method Company Records Retailers Other Methods ( trade fairs , exhibitions ,newspapers etc.) Leads from Sales Manager

Pre approach
Getting more detailed information about the potential buyers . Needs , habits , preferences ,nature , behavior , economic status etc . Distinction between most likely prospects and general prospects Helps in planning more effective strategy for approaching the prospects Source of information : Customers , Retailers , Directories etc .

Approaching The Prospect

HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT

There is only one time to make a first impression

Approach
Meeting the prospect in person by the sales man .
Secures favorable attention from the prospect and creates interest Secure willingness

Approach adopted by Travelling Sales man Counter Sales men

Essentials of a Good Approach

Prior appointments Relaxed Atmosphere Timing of Approach Appearance & Open mindedness Command/Complete information Courtesies/Avoid Apologizing Win Buyers undivided attention Call Back /Follow up

Methods of Approach
Cashing in on Brand names or Companys reputation Customer Benefit Approach Innovative Product The Premium Approach The Approach of making the Prospect feel important The Survey Approach Interactive Approach

Presentation and Demonstration

Arousing Interest Promptness in presentation Clarity Showing proper quantity Demonstration and dramatization Appealing to the senses Suggesting tests Handling the goods

Sales Presentation method

Stimulus response method /canned approach
Memorised sales talk or prepared sales presentation The sales person talks without knowing the prospects need Eg : used by telemarking execs

Formula method / formulated approach

It is based on stimulus response thinking that all prospects are similar The salesperson uses a standard formula- AIDA It is used if time is short and prospects are similar Shortcomings are prospects needs are not uncovered and uses same standard formula for different prospects

Sales Presentation Method: Contd

Need satisfaction method (FAB)
Interactive sales presentation Find prospects needs , by asking questions and listening

Consultative selling method /Problem solving method

Sales people use cross functional expertise Firms adopt team selling approach It is used by software / consulting firms .

Overcoming Objections
The expression of disapproval of an action taken by the sales man .

Why ?
Natural aversion to new and unfamiliar ideas and goods Not convinced about the product or service Test the sales mans knowledge Mere excuses Too much pressure by the sales man No Need Recognition by sales man

Handling Objections
Listening attentively Admitting valid objections Anticipating objections Preventing objections : Never say I am telling you , it is so ; You do not know

Some common objections

Price objection
Offer substitute Justify the price Offer discount Offer installment payment Show proofs

Payment objection Service objection Time to buy objection

Close
Closing is the action on the part of the sales man to close the sales transaction. Features of successful closing :
Positive Attitude Effective presentation and Demonstration Hold the attention Allow questions Hit at the right time Let the prospect decide

Follow up and Maintenance

Frequently in touch Satisfied customers buy and recommend

Qualities of a successful Salesman

Personality of the Salesman Knowledge of the Products Knowledge of customer psychology

Personality of the Salesman

Personal qualities :
physical (health , posture , voice , appearance ) mental (alertness, imagination , self confidence , initiative , cheerful) Social ( ability and eagerness to meet people , effective speech , courtesy , good manners , tact) character etc.( honesty , courage, sincerity , loyalty , determination )

Knowledge of Products and Selling Points

Knowledge of the organization Knowledge of the Product Background Composition and construction Use and Performance Service and Guarantee Knowledge of market conditions Knowledge of government policies Knowledge of competition

Knowledge of customers
Gender Age Geographical area On the basis of characteristics shy, talkative , Suspicious, friendly , sarcastic , pompous , impatient , handicapped ,ill mannered , group shoppers On the basis of purpose ( industrial / consumption buyers)

Sales Organization

Classification
Function based Product Based Territory / Geography based Customer based

Function based

Chief Sales
Manager

Personnel Manager

Marketing Research Manager

Advertising Manager

Production Manager

Product Based
Marketing Manager

Sales Manager ( Product : Soaps )

Sales Manager( Products: Food )

Sales Manager ( Product : Cream)

Assistant Sales Manager: Product A

ASM : Product B

ASM : Product Y

Territory/ Geography Based

Chief Sales Manager

Sales Manager : North

Sales Manager : South

ASM : Product A

ASM : Product B

ASM : Product X

Sales force staffing

Planning
Establish responsibilities Decide the no. of sales people needed Outline the type of sales people needed (job analysis , job description , develop job qualifications )

Recruiting
Identify sources of sales recruits Evaluate the sources of recruits

Selecting
Develop tools and procedure for measuring applicants Select the sales people

Sales force staffing contd.

Hiring
Make the job offer Acceptance of the job

Socialization
Socialization Assimilation

Sales force job description

Title of the job Reporting relationship Types of products and services sold Types of customers called on Duties and responsibilities Job demands Technical requirements Location and geographical area to be covered

Why Recruitment ?
To replace the vacancy created To cope with the expansion programmes

Recruitment : Process
Job Analysis :
Determination of job traits : nature of duties and responsibilities Job description

Personal Analysis
probable chracteristics and qualities General qualities :personality , sound health , integrity , honesty etc . Particular qualities : educational qualification, past experiences etc . Technical knowledge : languages known , legal implications etc .

Recruitment : Process Contd

Sources of Recruitment : Internal / External Careful Selection of Candidates
Application Blank References Personal Interviews Psychological Tests Medical Examination Final Interview

Appointment Letter

Sales Training
Training is the process of learning that is specifically directed to the acquiring and developing of specific attitudes ,skills and knowledge for carrying out of specific objectives and tasks

Sales Training : Importance

To improve Sales Performance To influence Prospects in better way Provides expert knowledge Reduces Wastage Reduces Control and Supervision Develops High Morale Low Turnover of Sales Force

Managing the sales training process

Assess the sales training needs Design and execute the sales training programme Evaluating and reinforcement of sales training programme

Popular Sales training needs

Product knowledge Competitive knowledge Sales techniques /skills Company knowledge

Methods used for assessing the training needs

Sales managers observation Sales force survey Customer survey Performance testing Sales force audit

Methods used in sales training programmes

Classroom /conference training
Lectures Demonstrations Group discussions

Behavioural learning
Role playing Case studies Simulation games

Online training
EPSS Interactive mutimedia Distance learning

Methods contd
On the Job training
Mentoring Job rotaion

Absorption training /Self study

Audio cassettes Manuals CD ROMs

Limitations
Involves Expenditure Interference with the routine work Attrition

Remuneration of Sales men

A good compensation or remuneration plan motivates the sales force to perform selling activities n the most productive manner and achieve the objectives of the organization .

Essential features of a sound Remuneration Plan

Simplicity Flexibility Economical Promptness Fair and Equitable Adequacy Incentive Oriented Controlling Capacity Stability Low administration cost

Methods of Remuneration
Time spent on the job The volume /amount of sales made

Modes /Methods
Straight Salary method Straight Commission Method Salary and commission method Bonus /Profit Sharing/Other benefits Travelling/ Reimbursement