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Chapter 1
Introduction to SalesManagement
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Factory FactorySelling and
promotingProfits though
sales volume
Selling concept
Market concept
Market Customer
needs
Coordinated
marketing
Starting
point Focus Means Ends
Profits through
customer satisfaction
Difference between sales and marketing
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British
Pheriwallahs
Greeters &
DrummersBaniyas
YankeePeddlers
Evolution of Sales Management
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Role of Sales ManagementRole of Sales Management
To generate sales and earn revenueTo generate sales and earn revenue
Maintaining good customer relationshipMaintaining good customer relationship
Managing the profitability of a firmManaging the profitability of a firmManaging customer complaintsManaging customer complaints
Building brand value in the eyes of theBuilding brand value in the eyes of the
customers.customers.
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Duties and Responsibilities of a
Sales Manager The determination of sales force objective and
goals
Sales force organization, size, territory, and quota
finalization
Sales forecasting and budgeting
Sales force selection, recruitment, and training
Motivating and leading the sales force
Designing compensation plan and control systems
Designing career growth plans and building
relationship strategies with key customers
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Types of selling
Order taker sales people
Order creators
Order getters
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Persuasion
Consultative
Selling
Partnership
StrategiesBusiness
Management
Negotiation
Evolution of personal selling
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Types of personal selling
Industrial selling Retail selling
Services selling
Selling to resellers
Selling to business user
Institutional selling
Selling to government
Tangible
Inseparable
Heterogenous
Perishable
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Formulation of a strategic sales programme
Implementation of the sales programme
Evaluation and control of sales force performance
Sales management process
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Formulation of a strategic sales programme
The External environment
Potential Customer
CompetitionLegal and political environment
Technological environment
Social and cultural environment
The Internal environment
Objective and Missions
Human resourcesFinancial resources
Capacity utilization
R & D activities
Marketing Strategy
Product and product lines
Pricing policy
Distribution strategy
Promotion Policy
Advertising and sales promotion
Sales management functions
Account mngt
Policy
Sales force
organization
Sales planning,
Forecasting and
Quota setting
Sales force
Territory design
And route
Planning
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Implementation of the sales programme
Sales persons view of
Job requirement,
Role perception
Determinants of the
Sales peoples
performance
Supervision
Performance
Sales volume
Quota allocation
Selling expenses
Profitability of
CustomerLevel of customer
Service
Sales reports
Ethical practices
Selection and
Recruitment of
Sales personnel
Sales training
Motivating the
Sales force
Compensation
System
Reward system
Aptitude
Skills
Motivation Level
Sales management Outcomes
EnvironmentalVariables
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Evaluation and control of sales force
performance
Companies conductCompanies conduct
Sales analysisSales analysis
Cost analysisCost analysis
Behavioral analysisBehavioral analysis
To monitor sales programmes.To monitor sales programmes.
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Chapter 2Chapter 2
Selling Skills andSelling Skills and
StrategiesStrategies
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Types of buyerTypes of buyer
Innovators (2 %)Innovators (2 %)
Early Adopters (13 %)Early Adopters (13 %)
Early Majority (34%)Early Majority (34%)Late Majority (34%)Late Majority (34%)
Laggards (16%)Laggards (16%)
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Selling and buying stylesSelling and buying styles
99
88
77
66
55
44
33
22
11 22 33 44 55 66 77 88 99
Concernfor
thec u
stomers
(1,9) People OrientedI am customers friend,
I want to understand him and
respond to his feelings and
interests so that he will like me. It
is the personal bond that leads him
to purchase from me.(5,5) Sales technique Oriented
I have tried an effective routine for
getting a customer to buy. It
motivates through a blended
personality and product emphasis
(1,1) Take it or Leave it
I place the product before the
customer and it sells itself as and
when it comes.
(9,1) Push the product Oriented
I take challenge of the customer
and hard sell him, polling on all
the pressure it takes to make him
buy
(9,9) Problem Solving Oriented
I consult with the customer so as to
inform myself of all the needs in his
situation that my products can satisfy.
We work towards a sound purchase
decision on his part, which yield him
the benefits he expects from it.
Concern for sales
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Selling skillsSelling skills
Selling Skills
Listening Skills
Conflict management and
resolution skills
Negotiation
and bargaining
skills
Problem
solving skills
Effective
communication
skills
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Trust BuildingTrust BuildingTruth of wordsTruth of words
Competency (ability/ Knowledge)Competency (ability/ Knowledge)
Intent or empathy (placing the customerIntent or empathy (placing the customer
interest etc.)interest etc.)
LikeabilityLikeability
______________________________________________________________________
What customers are sayingWhat customers are saying
Analyze their spoken wordsAnalyze their spoken words
Attentive to their non verbal expressionAttentive to their non verbal expression
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Communication processCommunication process
Noise
Channel
Feedback
Intended
Message
Sent Message
Encoding
Perceived
Message
Received
Message
Decoding
Sender Receiver
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CommunicationCommunicationprocessprocesscontd.
Managing body language:Managing body language:
Personal AppearancePersonal Appearance
PosturePosture GesturesGestures
Facial ExpressionsFacial Expressions
Eye ContactEye Contact
Space DistancingSpace Distancing
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Personal AppearancePersonal Appearance
First ImpactFirst Impact
Individual personalityIndividual personality
Dress, hairstyle and overall appearanceDress, hairstyle and overall appearance
PosturePosturePosture = WealthPosture = Wealth
Position of hands, legs and other partsPosition of hands, legs and other parts
Good salesperson postureGood salesperson posture
Discourage, tired and worn out postureDiscourage, tired and worn out posture
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Facial ExpressionFacial ExpressionSmile, Frown, Raising Eyebrows,Smile, Frown, Raising Eyebrows,
Tightening JawsTightening Jaws
Biting the lips, raising eyebrow at regularBiting the lips, raising eyebrow at regular
intervalsintervals
Blinking the eyesBlinking the eyes
Eye ContactEye Contact
Eye is the extension of brain andEye is the extension of brain andwindow to the soulwindow to the soul
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Space DistancingSpace DistancingFormal Presentation must have 4-12 feetFormal Presentation must have 4-12 feet
Face to Face ConversationFace to Face Conversation
______________________________________________________________________
LanguageLanguageCourteous and cheerfulCourteous and cheerful
No strong arguments and opinionsNo strong arguments and opinions
Avoid JargonsAvoid Jargons
Dont LieDont Lie
Dont mix friendshipDont mix friendship
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Listening SkillsListening Skills
Good Listeners welcomesGood Listeners welcomes
New IdeasNew Ideas
Stays InformedStays Informed
Up to dateUp to date
Out of DangerOut of Danger
Sales person spends more time inSales person spends more time in
receiving communication than inreceiving communication than in
transmitting it .transmitting it .
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3 Types of Listening3 Types of Listening
Content Listening: To understand and retainContent Listening: To understand and retainthe speakers message. Exthe speakers message. Ex
Critical Listening : To understand andCritical Listening : To understand andevaluate the meaning of speakers messageevaluate the meaning of speakers message
at several level.at several level.
Empathetic Listening : To understand theEmpathetic Listening : To understand the
speakers feelings, needs and demands.speakers feelings, needs and demands.
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Process of listening
Attendance
Interpretation
Evaluations
Remembrance
Response Action
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Levels of listening
Feedback
Paraphrasing
Emphatic listening
Clarifications
Active Listening
Barriers to Listening !
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ParaphrasingParaphrasing
Salesperson tries to paraphrase theSalesperson tries to paraphrase thequestion by mirroring the questionersquestion by mirroring the questionerspointpoint
For example:For example:
The Sales person may say, So what youThe Sales person may say, So what youare saying is you think that I am just givingare saying is you think that I am just givingthe company line, whereas what you arethe company line, whereas what you are
need is more help in financing and on theneed is more help in financing and on thespot service. Immediate response will bespot service. Immediate response will beYesYes
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Clarification of the issuesClarification of the issues
Sales person involves working little harderSales person involves working little harder
with the customers words to identify hiswith the customers words to identify his
real concernreal concern
For Example:For Example:
So what I hear you saying that you haveSo what I hear you saying that you have
got two main problem..got two main problem..
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Empathetic listeningEmpathetic listening
Salesperson tries to show that heSalesperson tries to show that heunderstand the feelings of the customer.understand the feelings of the customer.
For Example:For Example:
you know we have been there too. Dontyou know we have been there too. Dontforget we have worked in a bad way inforget we have worked in a bad way in
1995,1995,
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Active ListeningActive Listening
Salesperson identifies the emotionsSalesperson identifies the emotionsunderlying the customers words.underlying the customers words.
Ex.: It sound like you feel really alone outEx.: It sound like you feel really alone out
there, without much support. You arethere, without much support. You arefrustrated because you are putting in allfrustrated because you are putting in all
this hard work and all I feel is that we canthis hard work and all I feel is that we can
be with you for achieving your goal. Is thatbe with you for achieving your goal. Is thatit?it?
Answer will be: YesAnswer will be: Yes
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Conflict management skillsConflict management skills
Components of conflictComponents of conflictInterest, Emotions and ValueInterest, Emotions and Value
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The Conflict ProcessThe Conflict Process
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2005 Prentice Hall Inc. All 2005 Prentice Hall Inc. All
rights reserved.rights reserved. 14143434
Stage I: Potential Opposition orStage I: Potential Opposition or
IncompatibilityIncompatibilityCommunicationCommunication
Semantic difficulties, misunderstandings, and noiseSemantic difficulties, misunderstandings, and noise
StructureStructure
Size and specialization of jobsSize and specialization of jobs
Jurisdictional clarity/ambiguityJurisdictional clarity/ambiguity
Member/goal incompatibilityMember/goal incompatibility
Leadership styles (close or participative)Leadership styles (close or participative)
Reward systems (win-lose)Reward systems (win-lose)
Dependence/interdependence of groupsDependence/interdependence of groupsPersonal VariablesPersonal Variables
Differing individual value systemsDiffering individual value systems
Personality typesPersonality types
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Stage II: Cognition andStage II: Cognition and
PersonalizationPersonalization
Positive FeelingsPositive FeelingsNegative EmotionsNegative Emotions
Conflict DefinitionConflict Definition
Perceived ConflictAwareness by one ormore parties of theexistence of conditionsthat create opportunities
for conflict to arise.
Felt ConflictEmotional involvement ina conflict creating anxiety,tenseness, frustration, orhostility.
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Stage III: IntentionsStage III: Intentions
Cooperativeness:
Attempting to satisfy the other partys concerns.
Assertiveness: Attempting to satisfy ones own concerns.
Cooperativeness:
Attempting to satisfy the other partys concerns.
Assertiveness:
Attempting to satisfy ones own concerns.
Intentions
Decisions to act in a given way.
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Dimensions of Conflict-HandlingDimensions of Conflict-Handling
IntentionsIntentions
Source: K. Thomas, Conflict and Negotiation Processes in Organizations, in M.D. Dunnette
and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3
(Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.
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Stage III: Intentions (contd)Stage III: Intentions (contd)
Accommodating
The willingness of one party in a conflict to placethe opponents interests above his or her own.
Compromising
A situation in which each party to aconflict is willing to give up something.
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Stage III: Intentions (contd)Stage III: Intentions (contd)
Competing
A desire to satisfy ones interests, regardlessof the impact on the other party to theconflict.
Collaborating
A situation in which the parties to a conflicteach desire to satisfy fully the concerns of allparties.
Avoiding
The desire to withdraw from or suppress aconflict.
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Stage IV: BehaviorStage IV: Behavior
Conflict ManagementThe use of resolution and stimulationtechniques to achieve the desired level ofconflict.
St V O tSt V O t
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Stage V: OutcomesStage V: OutcomesFunctional Outcomes from ConflictFunctional Outcomes from Conflict
Increased group performanceIncreased group performance Improved quality of decisionsImproved quality of decisions
Stimulation of creativity and innovationStimulation of creativity and innovation
Encouragement of interest and curiosityEncouragement of interest and curiosity
Provision of a medium for problem-solvingProvision of a medium for problem-solving
Creation of an environment for self-evaluation andCreation of an environment for self-evaluation and
changechange
Creating Functional ConflictCreating Functional Conflict
Reward dissent and punish conflict avoiders.Reward dissent and punish conflict avoiders.
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Stage V: OutcomesStage V: Outcomes
Dysfunctional Outcomes from ConflictDysfunctional Outcomes from Conflict
Development of discontentDevelopment of discontent
Reduced group effectivenessReduced group effectiveness
Retarded communicationRetarded communication
Reduced group cohesivenessReduced group cohesiveness
Infighting among group members overcomesInfighting among group members overcomes
group goalsgroup goals
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Procedures for handling ConflictProcedures for handling Conflict
- lumping- lumping- avoidance- avoidance
- coercion- coercion
- meditation- meditation- conciliation- conciliation
- arbitration- arbitration
- adjudication- adjudication- negotiation- negotiation