ms-62

An ISO 9001:2008 Certified Organization

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

© Copyright PCTI Group 2009 | | <document classification>

UNIT-1 INTRODUCTION TO

SALES MANAGEMENT

SALES MANAGEMENT:

It has been defined as the management of a firm’s

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 company’s sales effort.


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.


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.


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


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.



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.



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.


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


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


Framework for joint decision making

in sales and distribution management

Distribution channels Achievement of sales

Goals through Company’s sales force

Distribution channels


Personal & Prospecting

through

Personal & Non-personal Promotion through

Company’s sales force

Company’s sales force


Framework for joint decision making

in sales and distribution management

Distribution channels Maintaining

Inventory through Corporate organization


Corporate sales organization


Company’s own sales force

Accounts Receivables

through

Information feedback through

An ISO 9001:2008 Certified Organization

BLOCK-1 SALES

MANAGEMENT:BASIC FUNCTIONS

UNIT-2 PERSONAL SELLING

&

UNIT-3 SALES PROCESS


Examples of Personal Selling

Telemarketing

Inside selling

Retail selling

Field selling

• 12 million people are engaged in personal selling

in the United States

• Represents about 10% of the work force


Advertising

Personal

selling

Post-transaction:

• Reminder and

reassurance

Advertising Personal

selling

Transaction:

Persuasion

Pre-transaction:

Create recognition and info

understanding

Advertising

Personal

selling

Relative Importance of

Advertising and Personal Selling


Characteristics of Personal Selling

Flexibility

• Adapt to situations

• Engage in dialog

Builds Relationships • Long term

• Assure buyers receive appropriate services

• Solves customer’s problems

Can not reach mass

audience

Expensive per contact

Numerous calls

needed to generate

sale

Labor intensive

Con Pro


ORDER

GETTERS

Current

customers

New

customers

ORDER

TAKERS

Inside Order Takers

(via mail, telephone,

internet)

Outside Field Sales

SUPPORT

PERSONNEL

Missionary

Salespersons

Trade

Salespersons

Technical

Salespersons

Types of Salespersons


16-18

Personal Selling

• Salespeople have many names

– Agents

– Sales consultants

– Sales Representatives

– Account

Executives

– Sales Engineers

– District Managers

– Marketing representatives

– Account Development

Representatives


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


Personal Selling Tasks

• Missionary

– Detailer

– Goodwill

– “Closers”

Cross-functional

Account service rep


You are part of the total product


The Personal Selling Process

PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

APPROACHING THE PROSPECT

FOLLOWING UP

CLOSING THE SALE

HANDLING OBJECTIONS

MAKING THE SALES PRESENTATION

Pre approach: QUALIFYING PROSPECTS


Prospecting: Identifying likely new customers – Leads

– Developing lists of Potential Customers

Pre-approach (Qualifying)

Finding and analyzing

information about prospects

Evaluating a prospect’s

potential

Creative Selling Process


Approaching The Prospect

HOW DO WE MAKE THE

INITIAL CONTACT & BUILD

RAPPORT

There is only one

time to make a first

impression


Making The Sales Presentation

• Using Persuasive

communication

• Hold Attention

• Stimulate Interest

• Desire

• “Tell the product’s story”



Handling Objections

– Questions

– Reservations

• Understand Concern

• Counterarguments

• Acknowledge concern

• Clues to process



Overcoming Objections

IF HE HADN’T TOLD

ME WHAT HIS OBJECTION

WAS, I NEVER WOULD

HAVE BEEN

ABLE TO HELP!


Closing the Sale

• Closing signals

• Trial close

• Asking the prospect to buy



Following Up

• Commitments met

– Shipment

– Performance

• Reinforce L-R relationship

• Satisfied customers rebuy

& recommend




• 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

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



• 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



• 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



• 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



• 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.



• 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



• Evaluating Salespeople

– Several tools can be used

• Sales reports

• Call reports

• Expense reports


After-sales Service

Ratings

0 1 2 3 4 5 6 7 8

Speed

.37

Reputation

3.38

Cost

4.39

Service

Quality

7.87

10

(SCALE: Degree of Importance) (JMR/Vol. 78)

Low High

• Job quality: do it right the first time

• Prompt warranty work


A Key to Success

Stay Close to

Your

Customer

and

LISTEN!


THEORIES OF SELLING

AIDAS Theory:

ATTENTION

INTEREST

DESIRE

ACTION

SATISFACTION


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 prospect’s

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.


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 buyer’s mind during the sales

presentation.The theory is based on the

presumption that the sales person will take

care of the external factors.

Date post:	14-Dec-2015
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