1.

Sales strategies (Case study/Application based) (Parameters while making sales strategies)

Sales strategies are plans and actions that businesses and sales teams undertake to achieve their
sales goals. Here are some key parameters to consider while making sales strategies:

1. Target Audience: Identify and understand the target audience, their needs, and purchasing
behaviour. This helps to tailor the sales strategy to meet the needs of the target audience.

2. Sales Goals: Define the sales goals, both short-term and long-term, and create a plan to achieve
them.

3. Competitive Analysis: Analyse the competition, their strengths, weaknesses, and positioning. This
helps to identify the unique selling points and competitive advantages that can be leveraged in the
sales strategy.

4. Sales Channels: Determine the sales channels that will be used to reach the target audience, such
as direct sales, online sales, or distribution channels.

5. Sales Process: Define the sales process and identify the key steps that need to be taken to close a
sale.

6. Sales Team: Determine the size and structure of the sales team, as well as the training and support
they will need to be successful.

7. Sales Metrics: Define the key performance indicators (KPIs) that will be used to measure the
success of the sales strategy, such as sales revenue, conversion rate, and customer satisfaction.

8. Marketing Support: Determine the marketing support that will be needed to support the sales
strategy, such as advertising, promotions, and content marketing.

9. Budget: Establish a budget for the sales strategy, including the cost of sales team salaries
marketing, and any other expenses associated with the strategy.

10. Continuous Improvement: Set up processes for continuous improvement, such as analysing sales
data and customer feedback, to optimize the sales strategy over time.

2. Sales Territory

A sales territory consists of existing and potential customers, assigned to a salesperson. Most
companies allot salespeople to geographical territories, consisting of current and prospective
customers. Importance of sales territory

• It ensures better market coverage

• Effective utilization of the sales force
• Efficient distribution of workload among salespeople
• It is convenient to evaluate the performance of salespeople
• To control over the direct and indirect costs of the sales function
• Optimum utilization of sales time by salespeople

Difference types of sales territory:-

• Geographic territories: These are territories defined by geographic boundaries such as states,
cities, or zip codes. Salespeople assigned to these territories are responsible for selling to all
customers within the assigned boundaries.
 • Industry territories: These territories are defined by the type of industry or vertical market
that the salesperson is responsible for selling to. For example, a salesperson might be
assigned to sell to customers in the healthcare industry, regardless of their geographic
location.
• Account territories: These territories are defined by the specific accounts or customers that
the salesperson is responsible for selling to. Salespeople assigned to account territories are
typically responsible for managing and growing existing customer relationships, as well as
identifying and pursuing new business opportunities within their assigned accounts.
• Hybrid territories: These are territories that combine two or more of the above types of
territories. For example, a salesperson might be assigned a geographic territory within a
specific industry.

The type of sales territory used will depend on the organization's sales strategy, product or service
offerings, and target markets.

3. Sales Promotions

“Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to
stimulate quicker and/or greater purchase of particular products or services by consumers or the
trade.”

Sales promotion, in other words, is a marketing activity that adds to the basic value of the product or
services for a limited period and directly stimulates purchasing by the target audience.

Benefits of Sales Promotion –

To Manufacturers

• Gives higher short-term sales.

• Induces trials for new products.

To Consumers

• Helps brand switchers who pay lower prices.

• Useful for price–sensitive customers.

To Traders

• Allows many retailers / wholesalers to do forward buying.

• Makes new brands / products less risky.

Some of the important Sales Promotion Objectives are –

1. Increase Sales Volume

2. Speed up the sales of slow moving products

3. To check the fluctuations in sales

4. Attract new customers

Types of sales promotions:-

Consumer Promotion - At the level of consumer, it is called consumer promotion, e.g., free gifts,
samples, price-offs.

Trade Promotion - At the level of dealers and distribution, it is called trade promotion, e.g., free
goods, display contests, dealer sales contests, push money, etc.

Sales Force Promotion - At the level of salespersons, it is called sales force promotion, e.g.,
salesmen’s contests, bonus and sales rallies.

Factors Influencing Sales Promotion

1. Target Market – Can be in any of the 6 stages of buying readiness. Awareness, Knowledge,
Liking, Creating Preference, Conviction, Purchase .

2. Nature of Product & Services- The most important Product Attributes which influence
promotional strategy are – Nature of Pre-Sale & Post-Sale Services, Unit Price, Degree of
Customisation

3. Stage of Product Life Cycle- Promotional Strategies are influenced by the life cycle of a
Product, Introduction of New Product – Informed about existence & benefits to buyers –
middlemen must be convinced to stock it, Both, Advertising & Personal Selling are critical in a
Product’s introductory stage.

4. Budget available for Promotion - The funds available for promotion are the ultimate
determinant of the promotional programme.

4. Sales Quota

Sales Quotas are the targets that the salespeople try to achieve within a specific period of time,
which contributes towards achieving organizational goals regarding sales forecasts. Individual sales
target figure assigned to each sales unit such as sales, person, dealer, distributor, region, or territory,
as a required minimum for a specified period (month, quarter, year). Sales quotas may be expressed
either in figures (monetary terms) or in number of goods or services sold (volume terms).

A Good Sales Quota Must be “SMART”

Types of sales quota

1. SALES VOLUME QUOTA –

• 3 Kinds of Sales Volume Quota – Monetary, Unit Sales and Point Sales volume quota.
• Organizations selling a broad product line set, use monetary sales volume quota.
• Unit Sales – Used in 2 situations namely – when prices of products are expected to
fluctuate during the quota period, and when companies with a narrow product line
sell at a price that fluctuates little during the quota period.
• Point Sales – Setting sales volume quota in terms of ‘points’. A multi-product firm
may fix a point volume point where sales of one unit will bring a certain point.
• If a salesperson is assigned a quota of 1000 points by the organization, he is
expected to get sales orders of 1000 points as a combination of any product mix of
the firm.
 2. SALES BUDGET QUOTA
• Are set in order to control expenses (expense quota), gross margins (Gross margin
quota) and net profits (profit quota).
• The cost to acquire customers should be less than the revenue generated from those
new customers.
• Expense quota ensures that salespeople limit their expenses
• Profit quota can be set on gross margin or on net profits.
• Gross Margin quota is determined by subtracting the cost of goods sold from Sales
Volume.
3. SALES ACTIVITY QUOTA
• Example – The retails salesperson has a job of providing information only. In this
case, the quota can be fixed on the activity a salesperson has to perform rather than
the final outcome.
• Mostly seen in insurance selling where salespeople must continuously do
prospecting, generate sales lead, and develop new business.
4. COMBINATION QUOTA
• The most common combination is the sales volume & activity quota
• It is used to control sales force performance on the basis of selling & non-selling
activities.
• This method often serves as a demotivator. So, SMs have to use this method with
continuous briefing like motivation sessions.

Problems in setting sales quota:-

• High level of individual difference in every organization

• Quota setting is a complex procedure and in many cases the salesperson is not able to understand
the reason & logic behind the goals and quota assigned to him by the sales manager

• Quota setting only helps in achieving sales and earning higher profits but many organizations do
not pursue these goals alone.

• Quotas are not accurate and are based on estimates, which are based on certain assumptions

Guidelines while preparing steps:-

• Set realistic sales quotas.

• Understand problems in setting quotas.

• Ensure salespeople understand quotas by allowing salespeople to participate in the process and
with continuous feedback to salespeople on their actual performance compared to their quotas.

• Have a few numbers of quotas.

• Change quotas in cases of major changes in market demand or company strategies.

• Select the type of quotas based on marketing environment, company objectives, and sales
situations.
5.Sales Organization Structure

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 salespeople
engaged in selling activities meant for the effective execution of the sales function.

Types of sales structure:-

1) Geographic Specialization- Characteristics: Salespeople are assigned geographic areas and

are responsible for all selling activities to all customers within the assigned areas. Branch
sales managers adjust marketing plan to local needs.
Advantages: Better market coverage and customer service, better control over salespeople,
quick response to local conditions and competition.
Disadvantages: Limited specialization of marketing tasks. Hence, it is often combined with
product / market sales organization.
2) Product Specialization- Used when the company has many products and / or brands
Two types of product specialization:
(x). Sales organization with product specialized sales force.
Characteristics: Salespeople in each product group sell only the products in that group.
Advantage: Each product gets specialized attention from the sales force.
Disadvantage: Sometimes, more salespeople from the same company contact the same
customer, resulting in customer dissatisfaction and higher selling cost.

(y). Sales organization with product managers as staff specialists.

Characteristics: Each product manager plans and implements marketing plan for a product
group.
Advantage: Corrects the problem of duplication calls on a customer by the company
salespeople.
Disadvantage: Lack of product specialization by the salespeople.

3) Market Specialization- Characteristics: Desirable when customers are classified by specific

types, user industry, or marketing channel. Salespeople carry out all activities for all
products only for specific customer groups. Use of market specialization is increasing.
Advantages: Meets needs of specific customer groups, implements customer-centered
philosophy of the company.
Disadvantages: Geographic duplication of territory coverage and higher costs.
4) Combination Sales Organization- Characteristics: Many firms use some combination of
specialization organizations, called hybrid or combination sales organization, with a view
to minimize disadvantages and maximize advantages of specialization organizations.
Short Note

6.Sales Funnel

A sales funnel is a marketing concept that represents the journey of a customer from the point of
first becoming aware of a product or service to the point of making a purchase, and beyond. The
sales funnel typically consists of several stages, which include:

Awareness: The first stage of the sales funnel is when potential customers become aware of your
product or service. This could happen through various marketing channels such as social media,
email marketing, online advertising, or word of mouth.

Interest: Once potential customers are aware of your product or service, they may develop an
interest in it. This could happen when they visit your website, read a blog post, or watch a video that
highlights the features and benefits of your product or service.

Evaluation: At this stage, potential customers are actively evaluating your product or service. They
may be comparing it to similar products or services in the market, and looking for more information
on how it can help them solve a problem or meet a need.

Negotiation: In some cases, potential customers may need to negotiate with you before making a
purchase. This could involve discussing pricing, payment terms, or other factors that could impact
their decision to buy.

Closing the Sale: This is the stage when the customer decides to make a purchase. It could involve
making a payment online, signing a contract, or scheduling a delivery.

Renewal: The sixth stage, which is not always included in the sales funnel, is renewal. At this stage,
the focus is on retaining the customer and encouraging them to renew their purchase or
subscription. This may involve providing ongoing support, upselling additional products or services,
or providing special offers or incentives to renew.

Overall, the sales funnel is a valuable tool for understanding the sales process and identifying areas
for improvement. By focusing on each stage of the funnel and optimizing the customer experience,
businesses can increase their conversion rates and drive revenue growth.

7. Women in sales department

• Women are increasingly becoming a vital part of sales departments across various industries.
• In the past, sales departments were largely male-dominated, but now women are making
significant strides and breaking barriers in this field.
• Women in sales bring a unique perspective to the table, with their innate ability to empathize
and build strong relationships with customers.
• They are often skilled communicators and have a natural talent for persuasion, making them a
valuable asset in closing deals.
• Women in sales are also known for their attention to detail, which helps them to identify and
address customer needs effectively.
• They are often adept at multitasking and juggling various responsibilities simultaneously,
making them highly efficient workers.
• Women in sales are not only successful at selling products or services, but they are also great
at building long-term relationships with clients, which can lead to repeat business.
• Sales departments that have a diverse team, including women, are more likely to be successful
in meeting their sales targets and driving growth for their organization
 8. Sales Ethics

“Ethics” A set of moral principles and values that governs the behavior of a person or a group with
respect to what is right and wrong.

Sales ethics refers to the principles and values that guide the conduct of salespeople when interacting
with customers.

Ethical sales practices involve treating customers with honesty, respect, and fairness, and avoiding
deceptive or manipulative tactics.

Salespeople should be transparent about the benefits and drawbacks of their products or services,
and avoid making false or exaggerated claims.

They should also avoid pressuring customers into making a purchase and respect their right to make
an informed decision.

Ethical sales practices involve building long-term relationships with customers, rather than focusing
solely on making a quick sale.

Salespeople should also maintain confidentiality and protect the privacy of their customers' personal
information.

In addition, ethical sales practices require adherence to all relevant laws and regulations, including
those related to consumer protection, privacy, and advertising.

Ultimately, ethical sales practices help to build trust with customers, promote customer loyalty, and
contribute to the long-term success of a business.

9. Skills required by salesperson

Being a successful salesperson requires a combination of various skills and attributes. Here are some
of the most important skills required to be a salesperson:

1. Effective Communication: Salespeople need to be able to communicate effectively with their clients
to build relationships and close deals. This requires strong verbal and written communication skills,
as well as active listening skills to understand the needs and concerns of the customer.

2. Assertiveness: Salespeople must be confident and assertive when presenting their product or
service to potential customers. They should be able to articulate the benefits and features of what
they are selling and overcome any objections or hesitations the customer may have clearly and
persuasively. He must be firm and polite at the same time.

3. Team Playing: Salespeople often work as part of a team, whether that's collaborating with
marketing or working alongside other salespeople. It's important for them to be able to work well
with others, share knowledge and resources, and contribute positively to the overall success of the
team.

4. Emotional Intelligence: Salespeople need to be able to read and understand the emotions and
motivations of their customers to build trust and rapport. They should be able to manage their own
emotions and respond appropriately to the emotions of others.

5. Product knowledge: Salespeople must have a deep understanding of the products or services they
are selling. They need to know the features and benefits, as well as the competition, to be able to
position their offering effectively
6. Adaptability: The sales environment is constantly changing, and salespeople need to be able to
adapt to new situations and challenges. They must be comfortable with uncertainty and able to
adjust their approach as needed.

10. Emerging Trend in sales

• Revolution in technology: Technology is transforming the sales management landscape by

providing new tools and platforms for managing customer data, automating sales processes, and
analyzing sales performance. Artificial intelligence, machine learning, and big data

analytics are some of the technologies that are helping sales teams to be more effective and
efficient.

• Customer relationship management (CRM) / Sales Force Automation (SFA): CRM and SFA
software solutions have become critical for sales teams to manage customer interactions,
automate sales processes, and analyze sales data. These tools help sales teams to be more
efficient and effective in their work.

• Sales force diversity: Sales teams are becoming more diverse, reflecting the diversity of the
markets they serve. This diversity brings a wealth of perspectives and skills to the sales team,
making them more effective in reaching and engaging customers from different backgrounds and
cultures.

• Team selling approach: Team selling involves a collaborative approach to sales, where

members of the sales team work together to close deals. This approach allows sales teams to
leverage each other's strengths and expertise, resulting in better sales outcomes.

• Managing Multi-channel Marketing Systems: Sales managers need to ensure that their teams
are equipped to manage multiple marketing channels, including online and offline channels, to
reach customers where they are.

• Ethical and Social Issues: Customers are increasingly aware of the ethical and social

implications of their purchasing decisions. Sales managers need to ensure that their sales teams
are knowledgeable about these issues and are equipped to communicate them

effectively to customers.

• Sales Professionalism: Sales managers need to prioritize building a culture of professionalism

within their sales teams. This includes developing a strong work ethic, setting high standards, and
fostering a culture of continuous learning and development.

• E-Selling: The rise of e-commerce has resulted in a growing demand for e-selling skills. Sales
managers need to ensure that their teams are equipped to sell effectively online, including
understanding e-commerce platforms, digital marketing, and online customer behavior

11. Consultative Sales

Consultative selling is a sales approach that prioritizes relationships and open dialogue to identify
and provide solutions to a customer’s needs. It is hyper focused on the customer, rather than the
product being sold. This technique helps sales professionals better understand the challenges
faced

by customers so they can position their solutions in a more compelling and effective way. The
consultative selling approach involves several key steps:
1. Needs assessment: The salesperson engages in a dialogue with the customer to understand
their specific needs and challenges. This may involve asking questions, listening carefully to the
customer's responses, and gathering information about their business and industry.

2. Solution development: Based on the customer's needs, the salesperson develops a

personalized solution that meets those needs. This may involve recommending specific products
or services, or even customizing solutions to meet the customer's unique requirements.

3. Presentation: The salesperson presents the solution to the customer, focusing on the benefits
and how it addresses their specific needs.

4. Objection handling: The customer may have objections or concerns about the solution. The

salesperson must address these concerns, using their knowledge and expertise to help the
customer understand how the solution meets their needs.

5. Closing the sale: Once the customer is satisfied that the solution meets their needs, the
salesperson closes the sale.