CH-1 Sales Management

7/30/2019 CH-1 Sales Management

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Sales Management

Dr. Bhumija Chouhan


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IntroductionAccording to AMA - Sales management is the planning,directing and controlling of personal selling, includingassigning recruiting, selecting, equipping, routing,supervising, paying and motivating as these tasks apply

to the personal data force. According to B.R. Canfield Sales management is anactivity that involves the direction and control of salesman, sales planning, budgeting, policy making,coordination of market research, advertisement,budgeting, policy making, sales promotion and theintegration of all business activities that contribute to theincreased sales and profits.


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Cont.

According to William J. Stanton Sales managementplanning, implementing and evaluating sales forceactivities within the guidelines set by companys strategicmarketing planning.

According to Spiro, Stanton and Rich Salesmanagement is the management of the personal sellingeffort in an organisation.Sales management is the management of the salesforce and personal selling efforts to achieve desiredsales objectives.The planning, organizing, leading and controlling of personal contact program designed to achieve the salesand profit objectives of the firm.


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Sales Management TrendsFROM

TRANSACTION

INDIVIDUALS

SALES VOLUME

MANAGEMENT

LOCAL

TO

RELATIONSHIP

TEAMS

SALES PRODUCTIVITY

LEADERSHIP

GLOBAL


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Cont.

Functions:

Sales Force Staffing

Sales Planning (objectives, activities, budget, territories,quotes)Sales Program DesigningSales Performance Evaluation


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Cont.

Objectives:

Establishing the distribution set-up

Maximization of salesMaximization of profitsIncrease of market shareStrengthening public relation and corporate imageContinuing Growth


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Sales Management Model

Defining the strategicRole of the sales

function

Developingthe

sales force

Directingthe sales

force

DeterminingSales force

Effectiveness&

performance

DescribingPersonal sellingfunction


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Role of Sales Manager

Execution of CEOs Vision

Forecasting,budgetingand planningsalesoperation

Planning salespolicy(Short/Long term)

Adv. PolicyDistribution

MarketingMix

MarketingStrategies

Sales TeamManagement

Organizing

RecruitmentSelecting

Inducting

Training

Placing,compensating

Control &direction

Coordinationthroughobjectivesetting &evaluation of system


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Nature of Sales Management

The basic function and role of selling is to generate sales andearn revenue for an organization.In present time selling approach also highlights good customer relationship, managing the profitability of a firm, managingcustomer complaints and building brand value in the eyes of the

customers.Following can be the nature of sales management:

I. Strategic FunctionII. Consumer welfareIII. Development of human resourceIV. Customer orientedV. Specialized functionVI. Functional areaVII. Responsible


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Cont.

VIII. Sub-system of MarketingIX. Synonymous with Marketing ManagementX. Challenging profession

XI. Goals

Emerging Trends in sales Management: Global Perspective

Revolution in Technology Customer Relationship Management (CRM) Sales Force Diversity


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Team Selling Approach Managing Multi-Chanel Ethical and Social Issues

Sales Professionalism


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Selling Process

Personal selling is all about locating a potential buyer,making an effective sales pitch and getting the order.There are many different ways to go about making asale, since every salesperson has his unique manner of attaining the objectivesThe personal selling process is a logical sequence of fivesteps:


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Prospecting Preapproach Approach

PresentationPost SaleService


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Prospecting

Identifying:ProfilesLeads

Records

Qualifying:Capability

Willingness


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Preapproach

Information

HabitsPreferences


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Approach

Opening line Active ListeningMannerism


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Presentation

AIDA: Attention

InterestDesire Action


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Post sales service

Reduce DissonanceBuild Goodwill


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Theories of Personal Selling

Theories of selling have been developed on basis of experimental knowledge accumulated from years of dealing with the market and customers rather than ona systematic body of knowledge.Theories are as follows:

1. AIDAS Theory of Selling2. Right set of Circumstance

3. Buying Formula Theory4. Behavioral Equation Theory5. Buyer seller Dyad


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AIDAS THEORY

It is after the initials of five words used to express thestages through which the prospects mind passes duringbuying A- Attention I- Interest D- desire A- Action S Satisfaction.Securing Attention:It is the Goal is to put the prospect into a receptive stateof mind If the salesperson has prior appointment thenthis phase does not offer any problem


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The salesperson needs an ample supply of conversationopeners Favorable first Impressions comprise of proper attire, neatness, friendliness and a genuine smile.The salesperson must have sense of direction,knowledge, listening ability and sense of humor to carryout the task successfully.Gaining Interest:It is the second goal which intensify the prospectsattention so that it evolves into strong interest

Samples or flipcharts, product portfolios, visual aids,catalogues may be usedMain aim of this phase is to search out the selling appealthat is most likely to be effectiveSometimes the prospect drops a hint which may be used

in selecting the best appeal. Sales person may askprobing question to find that hint


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Kindling Desire:It is the third goal which kindles the prospects desire tomake ready the buyer to buy product.

The development of sales obstacles, prospects objections, external interruptions, digressive remarks cansidetrack the presentation.Obstacles must be faced and ways must be found out to

get around them. Objections must be answered to theprospects satisfaction .


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Inducing Actions:It means achieving the desired action. It consists of obtaining the customer agreement to buy after meetingcustomers objection.If the presentation has been perfect, the prospect isready to act- i.e. to buy Experienced sales person rarelytry for a close until they are fully positive that theprospect is fully convinced.It is up to the salesman to sense when the time is right.

Some salesman never ask for yes or no, they ask for theorder straightforwardly


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RIGHT SET OF CIRCUMSTANCES THEORY : Also called as Situation -Response Theory. According to which thesalesperson should give proper stimuli to secure the attention of theprospect and should mould the situation.

In this theory particular circumstances are prevailing in a givenselling situation then it can causes the prospect to respond in apredictable way.This theory is a seller oriented theory which stresses theimportance of the salesperson controlling the situation, it does not

handle the problem of influencing factors internal to the prospectand fails to assign appropriate weight to the response side of thesituation response interaction.


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BUYING FORMULA THEORY: The approach to this theory is based on findings frombehavioral sciences and is focused on the buyer side of the buyer seller dyad.

According to this theory, the buyers needs or problemsreceive major attention and the salespersons role is tohelp the buyer find solution.

According to the theory mental processes involved in apurchase are interested in long term relationship whichincludes

Need Solution Purchase Satisfaction/Dissatisfaction


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BEHAVIOURAL EQUATION THEORY:This theory explains buying Behavior in terms of purchasing Decision process viewed as phases of learning process.This theory Is based on four elements (i) Drive, (ii) Cue,(iii) Response, (iv) ReinforcementDrives -strong internal stimuli that impels buyersresponse. They are of 2 kinds *Innate Drives-psychological needs e.g.. hunger, pain *Learned Drives-striving for social status & approval, acquired wheninnate drives satisfied


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Cues - are weak stimuli that determine when the buyer will respond *Triggering cues- activate the decisionprocess for any purchase *Non triggering cues- influencethe decision process but dont activate it a. Productcues-external stimuli received from the product directlyeg. package, price b. Informational cues- external stimuliproviding information, can come from advertising etc.Response -What the buyer does

Reinforcement - is any event that strengthens thebuyers tendency to make a particular responseEquation according To Howard is- B=P*D*K*V Where,B=Response P= predisposition (force of habit)


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D=Present drive level (amount of motivation)K=Incentive potential (value of the product or potentialsatisfaction) V=Intensity of all the cues.

Buyer Seller Dyad:1.Dyad is a situation where two people interact.2. The rest of a dyad is salesperson and the prospectinteracting with each other constitute a buyer-seller dyad.3. A positive conversation between seller and buyer hasa greater impact as compared to honesty, follow-up,product knowledge, proper presentation etc.


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4. According to Henry Tosi behavioral factors of thesalesperson are most influencing factors in buyer-seller dyad relationship.Emerging Patterns of Personal Selling :Team SellingMIS (Market Information System)Direct MarketingDirect MailTele-marketingRelationship sellingSystem Selling


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Objectives of Personal Selling:I. To keep customers informed to changes in the

product line

II. To assist customers in selling the product lineIII. To do entire sales jobIV. To serve the existing customersV. To secure and maintain customers co-operation in

stocking and promoting the product lineVI. To handle the sales personnel of middlemen


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VII. To collect and report market information oninterested maters to company management

VIII. To provide advice and assistance to middlemenwhenever needed

IX. To provide technical advice and assistance tocustomers

X. To search out and obtain new customers.


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Short term objectives of Personal selling:I. To keep the personal selling expenses within

specified limits

II. To secure and retain a specified share of the marketIII. To obtain a specified sales volumeIV. To obtain sales volume in ways that contribute to

profit objectives by selling proper mix of products.

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CH-1 Sales Management

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