MS62 SALES MANAGEMENT

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MS-62 SALES MANAGEMENT

• SESSION-1
• BLOCK-I SALES MANAGEMENT FUNCTIONS
• UNIT-1 INTRODUCTION TO SALES MANAGEMENT
• UNIT-2 PERSONAL SELLING
• UNIT-3 SALES PROCESS

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UNIT-1 INTRODUCTION TO SALES MANAGEMENT

• SALES MANAGEMENT
• It has been defined as the management of a firms
  personal selling function while distribution is
  the management of the indirect selling effort
  i.e.selling through extra corporate organizations
  which form the distribution network of the firm.
  The sales management task thus includes analysis,
  planning, organizing, directing and controlling
  of the companys sales effort.

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DISTRIBUTION MANAGEMENT

• Distribution (or place) is one of the four
  elements of marketing mix. An organization or set
  of organizations (go-betweens) involved in the
  process of making a product or service available
  for use or consumption by a consumer or business
  user.
• Distribution Management comprises management of
  channel institutions as well as physical
  distribution functions.

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EXCHANGE PROCESS

• It is the sale and delivery of goods/services
  from the manufacturer to the consumer can be
  consummated directly i.e. by the firm itself
  through its own sales force or indirectly through
  a network of middleman such as wholesalers and
  retailers.

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Essential tasks need to be performed in order to
consummate successful exchange

• Contact- finding and communicating with
  prospective buyer
• Prospecting- Bringing together the marketers
  offering and the prospective buyer
• Negotiation- Reaching an agreement on price and
  other terms of the offer so that ownership and
  possession can be transferred.
• Promotion- Of the marketers offerings, and his
  satisfaction generating potential
• Physical distribution- Actual transfer of
  possession
• Collection- Of relevant consumers information and
  revenue in exchange of goods or services

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Interdependence of Sales and Distribution

• All organizations use their own sales force or
  distribution network to reach out to their
  customers.Activities of the sales organization
  would have to be coordinated with channel
  operations if sales goals have to be effectively
  realized.
• The decision of the organization to allocate
  certain responsibility in the exchange process to
  its channel members would define the scope of
  responsibility of its own sales force and thereby
  would determine the type of personnel and
  training required.

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Interdependence of Sales and Distribution

• Even though, an organization may decide to deal
  directly with its wholesaler, semi wholesaler,
  retailer or consumer,it is required to decide
  upon the type of help it will provide to the
  first and subsequent level of intermediaries.
• The choice before an organization to have direct
  distribution, indirect distribution or a
  combination of the two is of strategic importance
  and depends upon factors such as the degree of
  control, flexibility, costs and financial
  requirements etc.The scope of distribution would
  define that of the other.

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Interdependence of Sales and Distribution

• To implement overall marketing strategy, the
  manufacturers need the cooperation of
  distribution outlets in terms of adequate stock
  maintenance, in-store displays, local
  advertising, point of purchase promotion.Within
  the corporation, the sales organization is the
  initiator as well as the implementer of these
  dealer support operations.This would mean that
  the sales management has the responsibility of
  structuring organizational relationship within
  their own department and with interacting
  organizational entities.

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Key decision areas in Sales Management relevant
to strategy formulation

• Deciding upon type and quality of sales personnel
  required
• Determination of the size of the sales force
• Organization and design of the sales department
• Territory design
• Recruitment training procedures
• Task allocation

• Compensation of sales force
• Performance appraisal
• Feedback mechanism
• Managing channel relationship
• Coordination with other Marketing department

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Strategic Formulation Process

• Step1-Assessment of the competitive situation and
  the corporate goals to determine the output that
  sales management is expected to give.
• Step2-Define sales management objectives in terms
  of delivering these outputs both quantitative and
  qualitative.
• Step3-Design sales strategy by deciding upon
  type of sales effort required, type of sales
  personnel required, size of the sales force,
  territory design, channel support coordination

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Framework for joint decision making in sales and
distribution management
Distribution channels
Achievement of sales Goals through
Companys sales force
Distribution channels
Personal Prospecting through
Companys sales force
Distribution channels
Personal Non-personal Promotion through
Companys sales force
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Framework for joint decision making in sales and
distribution management
Distribution channels
Maintaining Inventory through
Corporate organization
Distribution channels
Accounts Receivables through
Corporate sales organization
Distribution channels
Information feedback through
Companys own sales force
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BLOCK-1 SALES MANAGEMENTBASIC FUNCTIONS

• UNIT-2 PERSONAL SELLING
• UNIT-3 SALES PROCESS

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Examples of Personal Selling

• 12 million people are engaged in personal selling
  in the United States
• Represents about 10 of the work force

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Relative Importance of Advertising and Personal
Selling

• Pre-transaction
• Create recognition and info understanding

• Post-transaction
• Reminder and reassurance

• Transaction
• Persuasion

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Characteristics of Personal Selling
Pro
Con

• Flexibility
• Adapt to situations
• Engage in dialog

• Can not reach mass audience
• Expensive per contact
• Numerous calls needed to generate sale
• Labor intensive

• Builds Relationships
• Long term
• Assure buyers receive appropriate services
• Solves customers problems

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Types of Salespersons
ORDER TAKERS Inside Order Takers (via mail,
telephone, internet) Outside Field Sales

• ORDER
• GETTERS
• Current
• customers
• New
• customers

SUPPORT PERSONNEL Missionary Salespersons Trade
Salespersons Technical Salespersons
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Personal Selling

• Salespeople have many names

• Agents
• Sales consultants
• Sales Representatives
• Account Executives
• Sales Engineers
• District Managers
• Marketing representatives
• Account Development Representatives

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Personal Selling Tasks

• Order getting
• Seeking out customers
• Creative selling
• Pioneering
• Account management

• Order taking
• Routine
• writing up orders
• checking invoices
• assuring prompt order processing
• Suggestive selling

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Personal Selling Tasks

• Missionary
• Detailer
• Goodwill
• Closers

Cross-functional Account service rep
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You are part of the total product
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The Personal Selling Process
Pre approach QUALIFYING PROSPECTS
PROSPECTING IDENTIFYING POTENTIAL CUSTOMERS
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Creative Selling Process

• Prospecting Identifying likely new customers
• Leads
• Developing lists of Potential Customers

Pre-approach (Qualifying)

• Finding and analyzing information about prospects
• Evaluating a prospects potential

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Approaching The Prospect
HOW DO WE MAKE THE INITIAL CONTACT BUILD RAPPORT
There is only one time to make a first impression
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Creative Selling Process

• Making The Sales Presentation
• Using Persuasive communication
• Hold Attention
• Stimulate Interest
• Desire
• Tell the products story

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Creative Selling Process

• Handling Objections
• Questions
• Reservations
• Understand Concern
• Counterarguments
• Acknowledge concern
• Clues to process

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Overcoming Objections
IF HE HADNT TOLD ME WHAT HIS OBJECTION WAS, I
NEVER WOULD HAVE BEEN ABLE TO HELP!
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Creative Selling Process

• Closing the Sale
• Closing signals
• Trial close
• Asking the prospect to buy

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Creative Selling Process

• Following Up
• Commitments met
• Shipment
• Performance
• Reinforce L-R relationship
• Satisfied customers rebuy recommend

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Managing the Sales Force

• Designing Sales Force Strategy and Structure
• Sales Force Structure
• Territorial sales force structure
• Product sales force structure
• Customer sales force structure
• Complex sales force structure

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Managing the Sales Force

• Sales Force Strategy and Structure
• Sales Force Size
• Many companies use the workload approach to
  set sales force size
• Other Issues
• Outside and inside sales forces
• Team selling

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Managing the Sales Force

• Recruiting and Selecting Salespeople
• Careful recruiting can
• Increase overall sales force performance
• Reduce turnover
• Reduce recruiting and training costs
• Traits of Successful Salespeople
• Intrinsic motivation
• Disciplined work style
• The ability to close a sale
• Ability to build relationships with customers

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Managing the Sales Force

• Training Salespeople
• Training period can be anywhere from a few weeks
  to a year or more
• Training is expensive, but yields strong returns
• Many companies are adding Web-based sales
  training programs

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Managing the Sales Force

• Training Salespeople
• Training programs have many goals
• Identify with the company and its products
• Know about customers and competitors
• The basics of the selling process

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Managing the Sales Force

• Compensating Salespeople
• Compensation elements salary, bonuses,
  commissions, expenses, and fringe benefits
• Basic compensation plans
• Straight salary
• Straight commission
• Salary plus bonus
• Salary plus commission
• Compensation plans should direct the sales force
  toward activities that are consistent with
  overall marketing objectives.

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Managing the Sales Force

• Supervising Salespeople
• Supervision is used to direct and motivate
  salespeople
• Companies will vary in how closely they supervise
  their salespeople will vary depending on the
  skill level and maturity of the sales force, and
  type of selling
• Tools used
• Annual call plans and time-and-duty analysis can
  help provide direction
• Sales force automation systems assist in creating
  more efficient sales force operations
• The Internet is the fastest-growing sales
  technology tool

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Managing the Sales Force

• Evaluating Salespeople
• Several tools can be used
• Sales reports
• Call reports
• Expense reports

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After-sales Service Ratings

• Job quality do it right the first time
• Prompt warranty work

Service Quality 7.87
Speed .37
Reputation 3.38
Cost 4.39
10
0 1 2 3 4 5 6 7 8
Low
High
(SCALE Degree of Importance)
(JMR/Vol. 78)
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A Key to Success

• Stay Close to Your Customer
• and
• LISTEN!

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THEORIES OF SELLING

• AIDAS Theory
• ATTENTION
• INTEREST
• DESIRE
• ACTION
• SATISFACTION

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RIGHT SET OF CIRCUMSTANCES THEORY

• The advocates of this theory define that all the
  circumstances, which led to the sales were
  appropriate for the sales to have taken place. In
  other words, if the sales person is successful in
  securing the prospects attention, maintaining
  his interest and inducing his desire to buy the
  product, the sales will result. Moreover, if the
  sales person is highly skilled, he will take
  control of the presentation, which would lead to
  sales.

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Buying Formula Theory

• This theory emphasize on the buyer. This theory
  emphasizes on the needs or problems of the
  buyer.The sales person assist the buyer in
  finding an appropriate solution to the
  problem.This solution may be in terms of a
  product or service.This theory is based on the
  analysis of the sequence of events that goes in
  the buyers mind during the sales
  presentation.The theory is based on the
  presumption that the sales person will take care
  of the external factors.

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