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SALES & RETAIL MANAGEMENT
By Prof. Raghavendran.V
By Prof. Raghavendran.V
SADMAN
Sales management is defined as “ the effective planning, directing and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personal sales force.
By Prof. Raghavendran.V
MANAGING THE SALES FORCESales force is mainly responsible for the
sale of the products of a company and add to profit to the business operations and fulfill social obligations.
Sales force mgmt means: The right organization & aggression
against the product lines and geographies.
The right strength and qualification. The right compensation and incentive
system.
By Prof. Raghavendran.V
STEPS IN DESIGNING AND MANAGING A SALES FORCEo Objective trainingo Training the sale policies.o Designing sales force,
Structure & Sizeo Deciding sales force
Compensationo Recruitment & selecting sale forceo Guiding and motivating sale forceo Performance rating of the sales force.
By Prof. Raghavendran.V
SALES MANAGER DUTIES AND RESPONSIBILITIESSM is the most important person in a sale
organization. All activities are based on his functions and responsibilities and they are as follows.
Organizing sales research, product research.
Getting the best output from the sales force under him.
By Prof. Raghavendran.V
Setting & controlling the targets, territories, sales experiences, distribution expenses.
Advising the company on various media, sales promotions and schemes.
Monitoring the company’s sales policies.
By Prof. Raghavendran.V
MR. ALAN REID TERRITORY SALES MANAGER JOB RESPONSIBILITY
To yourself To your company To your customers
Increase basic selling skills
Be proud of your association with your company
Work closely with decision takers and influencers in each account
Develop management abilities
Maintain the company standing & standards with all customers
Point out the advantages of an association with your company.
Keep pace with changes, trends and developments in your territory
Inform HQ and supervisors, through establishment channels, about changes and development in your territory
Keep a/c’s current and up-to-date on all company advertising and promotional activities.
By Prof. Raghavendran.V
TERRITORY SALES MANAGER JOB RESPONSIBILITY To yourself To your company To your
customers
Study the latest products, promotion policies and procedures
Be prompt in handling records, reports and correspondences.
Suggest ideas, methods, techniques and tips that cam stimulate sales.
Be alert to new sales and merchandising ideas
Cut selling costs by economical routing, good use of time, planning and greater awareness of opportunity
Inform the customers about the trends in their areas.
Grow, so that you can assume greater responsibilities as opportunities permit
Check demand and movement of products in the territory
Handle complaints effectively and to the complete satisfaction of the complaints.
By Prof. Raghavendran.V
TERRITORY SALES MANAGER JOB RESPONSIBILITY
To yourself To your company To your customer
Maintain the appearance and goodwill expected of a territory sales manager.
Report activities of the competitors
Suggest the best technique for selling your products to the customers.
Analyze your weakness and strong points and then think about them
Strive to reach the best goals
Organize presentations to inform and save time.
Ask for the help, when you need it.
Make the customers aware of the changes in the company’s policies and procedures
Cooperate with other departments of the company
Stimulate and maintain enthusiasm for your products build & maintain goodwill.
By Prof. Raghavendran.V
PROBLEMS IN SALES FORCE MANAGEMENTDesigning and managing sales force
Sale force authorityTarget settingSales forecasting.
By Prof. Raghavendran.V
FORMULATION OF SALES STRATEGYThe following are key decision areas in
sales management which are particularly relevant to strategy formulation.
Determining the size of the sales force Decision regarding type and quality of
the sales force required Designing the sales organization Territory designing Recruitment and training procedures Task allocation
By Prof. Raghavendran.V
Compensation of sales force Performance appraisal and control
system Feedback mechanism to be adopted Managing channel relationships Coordination with marketing
departments
By Prof. Raghavendran.V
DIFFERENT SALES STRATEGIES Relationship strategy The double-win strategy Instant service Hard sell Vs Soft Sell Strategy Integrated Sale Strategy Client centered selling strategy
By Prof. Raghavendran.V
METHODS OF SELLING Telemarketing: selling concepts on the
phone Sales on the internet Mail order sales Sales through large scale fixed shop
retailers Sales through wholesalers and retailers Direct selling
By Prof. Raghavendran.V
ASSIGNMENT TIME Study concern from the following area
Two wheeler Three wheeler Four wheeler Furniture Petroleum products Mobile
Using internet tools & resources, make a 15 companies involved in selling FMCG through internet and bring out strategies used by them.
By Prof. Raghavendran.V
PRESENTATIONMake a presentation by
incorporating ingredients of sales concepts for a sick product of any company.
Presenting day on 26th Aug’
By Prof. Raghavendran.V
PERSONAL SELLING
By Prof. Raghavendran.V
By Prof. Raghavendran.V
PERSONAL SELLINGPersonal selling can be defined as follows:
Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"
By Prof. Raghavendran.V
PERSONAL SELLINGImportant aspects of personal selling are:• It enhances customer’s confidence in the
seller• It promotes long term business relations
through personal intimacy• It provides a human touch to business
transactions.• It helps facilitate the seller to understand
each customer’s needs and preferences more clearly
• It helps satisfy a customer by modifying the product as per customer’s choice and preference.
By Prof. Raghavendran.V
PERSONAL SELLING• Personal selling followed by personal
service helps build long term relations between the business and the customer
• It helps keep up with the competition in the market, based on product customization as per customer’s preferences.
• It is a powerful and effective tool for convincing the customer about the product
• Through PS the time lag between introducing a product through the media and actually selling it is reduced.
By Prof. Raghavendran.V
PERSONAL SELLING• It provides prospective customers with a
better understanding of the product and an interactive opportunity to liaise with the sales personnel.
Changing face of personal selling: Value sharing Relation building Role playing Changing approach
By Prof. Raghavendran.V
EFFICACY OF PS:PS with Respect to product strategy
PS and pricing decisionsPS and distributionPS and product promotion
By Prof. Raghavendran.V
STEPS IN PS:Prospect
ingPre
approach
Approach
Presentation & Demonstratio
n
Handling objectives Closing
Follow up
By Prof. Raghavendran.V
PROSPECTINGIt is process of identifying buyers of the
product.Different ways to identify prospects
Acquaintance references Cold calling Centre of influence method Personal observation method Direct mail/ telephone method Company’s records Newspapers Retailers Other methods
By Prof. Raghavendran.V
PRE-APPROACH, SIGNIFICANCE Salesman concentrates only on the
prospects and not suspects, thus saving time and energy.
Helps a salesman to gain all possible knowledge about the prospects before approaching. (loose talk can be avoided).
Sales presentation effectively, efficiently and confidently.
Focused, meaningful and to the point.
By Prof. Raghavendran.V
APPROACHINGSalesman has an opportunity to
understand and interact with the prospect in better way. Hence, the salesman should put forward his best efforts to make use of the opportunity.
Stages of approaches: Approach adopted Successful adopted Method of approach
By Prof. Raghavendran.V
APPROACH ADOPTEDSalesman are two types and they are:• Travelling salesman• Counter salesman
The approach adopted by the each of these salesmen is obviously different.
Approach adopted by travelling salesman:The different way to gain access and thus
interview the prospects.
By Prof. Raghavendran.V
APPROACH ADOPTED Direct approach Seeking an appointment with a prospect
could by sending an advance mailer explaining his product
Seeking an appointment through reference given by friend, relative or business prospective.
Give gifts and secure an appointment. Sales letter
By Prof. Raghavendran.V
SUCCESSFUL APPROACHIt is said approach will be successful if it
attains below said objectives.1. Successful approach enhances the sale
and it is thus important for the running of a business..
2. Failed approach will give an opportunity to the competitor.
3. Enlightening the prospect by providing him ample information about the product and services
By Prof. Raghavendran.V
SUCCESSFUL APPROACHGuidelines for successful approach are Prior appointment Timing Command Relaxed atmosphere Open mindedness Courtesies Effective presentation Follow up
By Prof. Raghavendran.V
METHOD OF APPROACH Cashing in on Brand Name or the
company’s reputation Customer Benefit approach Innovative product opens the door to
the salesman The premium approach The shock approach The approach of “making the prospect
feel important” The survey method Interactive approach
By Prof. Raghavendran.V
PRESENTATIONPrompt quick presentation creates an
impressionWell organized articlesExplain features of products and price
advantage ( an Intelligent Salesman will never compare rival products)
Show quality productDemonstrating product will +ve
impressionProduct appeal
By Prof. Raghavendran.V
DEMONSTRATION & CLOSEIt is an exercise to prove the
characteristics of the product. It is imperative and essential for a prospect to make a buying decision.
The main aim of the close is to convince the prospect to sign the order form, to place an order immediately rather than future.
By Prof. Raghavendran.V
THEORIES OF PSThe main theories of personal selling are
1. AIDAS Theory2. Right set of Circumstances
Theory3. Buying Formula theory
By Prof. Raghavendran.V
AIDAS:This theory is based on the premises that
during a sales presentation, the prospect consciously goes through five different stages:
Attention Interest Desire ActionSatisfacti
on
Stages of AIDAS Theory
By Prof. Raghavendran.V
AIDASAttention: The sales person should attract
the prospect to his presentation before actually goes into the details of the same.
SP should involves the prospect’s mind in the presentation, his total may go unnoticed or registered.
Interest: SP should ensure that the prospect remains glued to his presentation throughout its length
By Prof. Raghavendran.V
AIDASDesire: SP is responsible to create strong
desire in prospect’s mind to purchase the product. SP should consciously bring prospect into the stage of readiness to the buying the product.
Action: SP is successful in 3 stages, SP induces to buy the product. Here important task for SP to help his prospect in taking final decision.
Satisfaction: After placing an order or buying product, SP should appreciate the prospect for the decision.
By Prof. Raghavendran.V
RIGHT SET OF CIRCUMSTANCES THEORYThe theory opines that all circumstances,
which led to the sales were appropriate or “right” for the sales to have taken place.
In other words, if the SP is successful in securing the prospect’s attention, maintaining his interest and including his desire to buy the product.
( SP is highly skilled then higher sales and viceversa)
By Prof. Raghavendran.V
BUYING FORMULA THEORYThis theory emphasis is on the buyer,
problems of the buyer and SP assist buyer in finding appropriate solution to the problem.
This theory based on the analysis of the sequel of the events goes on in buyer’s mind during the presentation
The following graphical representation will
help you learn better.
By Prof. Raghavendran.V
BUYING FORMULA THEORY
Need Solution Purchase
(a) For one time purchase
Need Solution Purchase Satisfaction
(b) For continuous relational ship
By Prof. Raghavendran.V
ASSIGNMENT TIMEDifferentiate b/w advertising and publicity.
Highlight the role of public relations and personal selling in pharmaceuticals, medical equipments.
Explain out personal selling process, how would presentations differ in the following cases and Role Play: One each for all
Selling insurance products, office computers,
Beverages, electrical generators, foot wares,
Banking products, home appliances and tobacco products.
3rd Sept’ 2011 submission
By Prof. Raghavendran.V
SALES ORGANIZATION
By Prof. Raghavendran V
By Prof. Raghavendran.V
SALES ORGANIZATION
Organization means the systematic coordination of the functions essential to achieving organization objectives. The functions of sales organization can be classified as follows:
By Prof. Raghavendran.V
FUNCTIONS OF THE SALES ORGANIZATIONPlanning Function
Sales forecastingSales budgetingSelling policy
Administrative FunctionSelecting salesmanTraining salesmanControl of salesmanRemuneration of salesman
Executive functionSales promotionSelling routine- execution of customer’s order
By Prof. Raghavendran.V
ROLE OF SALES ADMINISTRATIONTotal customer satisfaction by
way of prompt and safe deliveryProper maintenance of stock
ensuring defect free delivery to customers
Effective coordination and communication between regional offices and dealers.
By Prof. Raghavendran.V
ROLE OF SALES ORGANIZATION1. Define line of authority2. Ensure all necessary activities
are assigned & performed3. Establish line of communication4. Provide for coordination and
balance5. Provide insights into avenues of
advancement6. Economics of executive time
By Prof. Raghavendran.V
DEVELOPING A SALES ORGANIZATIONDevelopment refers to formal,
coordinating process of communication, authority and responsibility for sales groups & individuals
The 5 major issues are1. Formal & informal Organizations2. Horizontal & vertical3. Centralized or decentralized4. The line and staff components of
organizations5. The size of the company
Ask student to draw diagram
By Prof. Raghavendran.V
FIELD SALES ORGANIZATIONi. Geographic sales specialization
organizationii. Product based sales specialization
organizationiii. Customer based specialization
organizationiv. Activity/ function based
organizationv. Hybrid organizationvi. Team based organization
By Prof. Raghavendran.V
GEOGRAPHICAL SALES ORGANIZATION
FMCG SALES
West division
Area manager- Mumbai
Area manager- Baroda
Central division
Area manager- Nagpur
East division
Area manager- Kolkata
By Prof. Raghavendran.V
PRODUCT BASED SALES ORGANIZATION
UB Breweries
Rum
Area East
Area South
Area north
Beer
Area West
Area central
Whisky
Area North east
Area South west
By Prof. Raghavendran.V
CUSTOMER BASED SALES ORGANIZATION
IBM
IBM- Daksh
Xerox
Pearson
IBM- India
Bank of America
Golden sachs
By Prof. Raghavendran.V
ACTIVITY/ FUNCTION BASED ORGANIZATIONProspecting
Presentation
service
Telemarketing/ cold calls
Face to face sales
Personal visits
By Prof. Raghavendran.V
HYBRID SALES ORGANIZATION
President
VP- production
VP- Marketing
Sales Manager-
north
Manager- consumer division
Manager- industrial division
Sales Manager-
south
VP- finance
Functional
Geographical
Customer
By Prof. Raghavendran.V
TEAM BASED SALES ORGANIZATION
customer
Technical support
Marketing Manufacturing
Sales
By Prof. Raghavendran.V
ASSIGNMENT TIME
Explain all field sales organizations with example each.
Brief out developing sales organizations with figures.
Highlight by points about functions of sales organization
By Prof. Raghavendran.V
END OF MODULE 1 IN SALES MANAGEMENT, END OF MODULE 8 IN INDUSTRIAL MARKETING
By Prof. Raghavendran.V