Post on 14-Apr-2018
7/29/2019 personalselling-101002063809-phpapp01
1/43
PCTI Limited - A Unique Name For Quality Education
MS-62 SALES MANAGEMENT
SESSION-1
BLOCK-I SALES MANAGEMENT FUNCTIONSUNIT-1 INTRODUCTION TO SALES MANAGEMENT
UNIT-2 PERSONAL SELLING
UNIT-3 SALES PROCESS
7/29/2019 personalselling-101002063809-phpapp01
2/43
PCTI Limited - A Unique Name For Quality Education
UNIT-1 INTRODUCTION TO
SALES MANAGEMENT
SALES MANAGEMENT:
It has been defined as the managementof 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.
7/29/2019 personalselling-101002063809-phpapp01
3/43
PCTI Limited - A Unique Name For Quality Education
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.
7/29/2019 personalselling-101002063809-phpapp01
4/43
PCTI Limited - A Unique Name For Quality Education
EXCHANGE PROCESS
It is the sale and delivery of
goods/services from themanufacturer to the consumer
can be consummated directly i.e.
by the firm itself through its ownsales force or indirectly through a
network of middleman such as
wholesalers and retailers.
7/29/2019 personalselling-101002063809-phpapp01
5/43
PCTI Limited - A Unique Name For Quality Education
Essential tasks need to be performed
in order to consummate successful exchange
Contact-finding and communicating withprospective buyer
Prospecting-Bringing together the marketers
offering and the prospective buyer
Negotiation-Reaching an agreement on price andother 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
7/29/2019 personalselling-101002063809-phpapp01
6/43
PCTI Limited - A Unique Name For Quality Education
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 itschannel members would define the scope of
responsibility of its own sales force and thereby
would determine the type of personnel and
training required.
7/29/2019 personalselling-101002063809-phpapp01
7/43PCTI Limited - A Unique Name For Quality Education
Interdependence of Sales
and Distribution
Even though, an organization may decide to dealdirectly with its wholesaler, semi wholesaler,retailer or consumer,it is required to decideupon the type of help it will provide to the firstand subsequent level of intermediaries.
The choice before an organization to have directdistribution, indirect distribution or acombination of the two is of strategic importanceand depends upon factors such as the degree of
control, flexibility, costs and financialrequirements etc.The scope of distributionwould define that of the other.
7/29/2019 personalselling-101002063809-phpapp01
8/43PCTI Limited - A Unique Name For Quality Education
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 ofstructuring organizational relationship within
their own department and with interacting
organizational entities.
7/29/2019 personalselling-101002063809-phpapp01
9/43PCTI Limited - A Unique Name For Quality Education
Key decision areas in
Sales Management relevant to
strategy formulation
Deciding upon typeand quality of salespersonnel required
Determination of thesize of the sales force
Organization anddesign of the sales
department Territory design
Recruitment &training procedures
Task allocation
Compensation ofsales force
Performanceappraisal
Feedbackmechanism
Managing channel
relationship Coordination with
other Marketingdepartment
7/29/2019 personalselling-101002063809-phpapp01
10/43PCTI Limited - A Unique Name For Quality Education
Strategic Formulation Process
Step1-Assessment of the competitive
situation and the corporate goals todetermine the output that salesmanagement is expected to give.
Step2-Define sales management
objectives in terms of delivering theseoutputs both quantitative andqualitative.
Step3-Design sales strategy by deciding
upon: type of sales effort required, typeof sales personnel required, size of thesales force, territory design, channelsupport & coordination
7/29/2019 personalselling-101002063809-phpapp01
11/43PCTI Limited - A Unique Name For Quality Education
Framework for joint decision making
in sales and distribution management
Distribution channelsAchievement of sales
Goals throughCompanys sales force
Distribution channels
Distribution channels
Personal &Prospecting
through
Personal & Non-personalPromotion through
Companys sales force
Companys sales force
7/29/2019 personalselling-101002063809-phpapp01
12/43PCTI Limited - A Unique Name For Quality Education
Framework for joint decision making
in sales and distribution management
Distribution channelsMaintaining
Inventory throughCorporate organization
Distribution channels
Corporate sales organization
Distribution channels
Companys own sales force
AccountsReceivables
through
Information feedbackthrough
7/29/2019 personalselling-101002063809-phpapp01
13/43
PCTI Limited - A Unique Name For Quality Education
BLOCK-1 SALES
MANAGEMENT:BASIC FUNCTIONS
UNIT-2 PERSONAL
SELLING &
UNIT-3 SALES PROCESS
7/29/2019 personalselling-101002063809-phpapp01
14/43PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
15/43
PCTI Limited - A Unique Name For Quality Education
Advertising
Personal
selling
Post-transaction:
Reminder andreassurance
AdvertisingPersonal
selling
Transact ion:
Persuasion
Pre-transaction:
Create recognition and
info understanding
Advertising
Personal
selling
Relative Importance of Advertising
and Personal Selling
7/29/2019 personalselling-101002063809-phpapp01
16/43
PCTI Limited - A Unique Name For Quality Education
Characteristics of Personal Selling
Flexibility
Adapt to
situations Engage in dialog
Builds Relationships
Long term Assure buyers receive
appropriate services
Solves customersproblems
Can not reach mass
audience Expensive per contact
Numerous callsneeded to generate
sale
Labor intensive
ConPro
7/29/2019 personalselling-101002063809-phpapp01
17/43
PCTI Limited - A Unique Name For Quality Education
ORDER
GETTERS
Currentcustomers
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
7/29/2019 personalselling-101002063809-phpapp01
18/43
PCTI Limited - A Unique Name For Quality Education16-18
Personal Selling
Salespeople have many names
Agents
Sales consultants
Sales Representatives
Account
Executives
Sales Engineers
District Managers
Marketing
representatives
Account Development
Representatives
7/29/2019 personalselling-101002063809-phpapp01
19/43
PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
20/43
PCTI Limited - A Unique Name For Quality Education
Personal Selling Tasks
Missionary
Detailer
Goodwill Closers
Cross-functional
Account service rep
7/29/2019 personalselling-101002063809-phpapp01
21/43
PCTI Limited - A Unique Name For Quality EducationYou are part of the total product
7/29/2019 personalselling-101002063809-phpapp01
22/43
PCTI Limited - A Unique Name For Quality EducationThe Personal Selling ProcessPROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS
APPROACHING THE PROSPECT
FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
Pre approach:QUALIFYING PROSPECTS
7/29/2019 personalselling-101002063809-phpapp01
23/43
PCTI Limited - A Unique Name For Quality Education
Prospecting:Identifying likely newcustomers
Leads Developing lists of
Potential CustomersPre-approach (Qualifying)
Finding and analyzinginformation about prospects
Evaluating a prospectspotential
Creative Selling Process
7/29/2019 personalselling-101002063809-phpapp01
24/43
PCTI Limited - A Unique Name For Quality Education
Approaching The Prospect
HOW DO WE MAKE THE
INITIAL CONTACT & BUILD
RAPPORT
There is only one
time to make a first
impression
C i S i
7/29/2019 personalselling-101002063809-phpapp01
25/43
PCTI Limited - A Unique Name For Quality Education
Making The Sales
Presentation
Using Persuasive
communication
Hold Attention
Stimulate Interest
Desire
Tell the products
story
Creative Selling Process
7/29/2019 personalselling-101002063809-phpapp01
26/43
PCTI Limited - A Unique Name For Quality Education
Handling Objections
Questions
Reservations
Understand Concern
Counterarguments
Acknowledge concern
Clues to process
Creative Selling Process
7/29/2019 personalselling-101002063809-phpapp01
27/43
PCTI Limited - A Unique Name For Quality Education
Overcoming Objections
IF HE HADNT TOLD
ME WHAT HIS OBJECTION
WAS, I NEVER WOULD
HAVE BEENABLE TO HELP!
7/29/2019 personalselling-101002063809-phpapp01
28/43
PCTI Limited - A Unique Name For Quality Education
Closing the Sale
Closing signals
Trial close Asking the
prospect tobuy
Creative Selling Process
7/29/2019 personalselling-101002063809-phpapp01
29/43
PCTI Limited - A Unique Name For Quality Education
Following Up
Commitments met
Shipment
Performance
Reinforce L-R
relationship
Satisfied customers
rebuy & recommend
Creative Selling Process
7/29/2019 personalselling-101002063809-phpapp01
30/43
PCTI Limited - A Unique Name For Quality Education
7/29/2019 personalselling-101002063809-phpapp01
31/43
PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
32/43
PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
33/43
PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
34/43
PCTI Limited - A Unique Name For Quality Education
Managing the Sales Force
Training Salespeople
Training period can be anywherefrom a few weeks to a year or more
Training is expensive, but yields
strong returns Many companies are adding Web-
based sales training programs
7/29/2019 personalselling-101002063809-phpapp01
35/43
PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
36/43
PCTI Limited - A Unique Name For Quality Education
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 areconsistent with overall marketing
objectives.
7/29/2019 personalselling-101002063809-phpapp01
37/43
PCTI Limited - A Unique Name For Quality Education
Managing the Sales Force
Supervising Salespeople Supervision is used to direct and motivate
salespeople
Companies will vary in how closely they supervisetheir salespeople; will vary depending on the skilllevel and maturity of the sales force, and type ofselling
Tools used: Annual call plans and time-and-duty analysis can
help provide direction
Sales force automation systems assist in creatingmore efficient sales force operations
The Internet is the fastest-growing sales technologytool
7/29/2019 personalselling-101002063809-phpapp01
38/43
PCTI Limited - A Unique Name For Quality Education
Managing the Sales Force
Evaluating Salespeople
Several tools can be used Sales reports
Call reports
Expense reports
7/29/2019 personalselling-101002063809-phpapp01
39/43
PCTI Limited - A Unique Name For Quality Education
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
7/29/2019 personalselling-101002063809-phpapp01
40/43
PCTI Limited - A Unique Name For Quality Education
A Key to Success
Stay Close to
Your
Customerand
LISTEN!
7/29/2019 personalselling-101002063809-phpapp01
41/43
PCTI Limited - A Unique Name For Quality Education
THEORIES OF SELLING
AIDAS Theory:
ATTENTION
INTEREST
DESIRE
ACTION
SATISFACTION
RIGHT SET OF CIRCUMSTANCES
7/29/2019 personalselling-101002063809-phpapp01
42/43
PCTI Limited - A Unique Name For Quality Education
RIGHT SET OF CIRCUMSTANCES
THEORY
The advocates of this theory define thatall the circumstances, which led to thesales were appropriate for the sales to
have taken place. In other words, if thesales person is successful in securing theprospects attention, maintaining hisinterest and inducing his desire to buy
the product, the sales will result.Moreover, if the sales person is highlyskilled, he will take control of thepresentation, which would lead to sales.
Buying Formula Theory
7/29/2019 personalselling-101002063809-phpapp01
43/43
Buying Formula Theory
This theory emphasize on the buyer. Thistheory emphasizes on the needs orproblems of the buyer.The sales personassist the buyer in finding an appropriate
solution to the problem.This solutionmay be in terms of a product orservice.This theory is based on theanalysis of the sequence of events that
goes in the buyers mind during the salespresentation.The theory is based on thepresumption that the sales person willtake care of the external factors.