A Introduction to Sales Management

8/3/2019 A Introduction to Sales Management

1/36


2/36

AMERICAN MARKETING ASSOCIATIONSDEFINATION :

SALES MANAGEMENT IS PLANNING,DIRECTING, & CONTROLLING OFPERSONAL SELLING, INCLUDINGRECRUITING, SELECTING, TRAINING,DIRECTING, COMPENSATING, MOTIVATING,EVALUATING, CONTROLLING THE SALESFORCE.


3/36

SALES PLANNING. ORGANISING SALES FORCE. MANAGING THE SALES FORCE. COORDINATION WITHIN & OUTSIDE THE COMPANY. MEMBER OF DECISION MAKING TEAM.

FOR BRANCH / TERRITORY / AREA / REGIONALSALES MANAGERS.


4/36

(A) SALES VOLUME (IN UNITS &

VALUE)

(B) SALES GROWTH

(C) CONTRIBUTION TO PROFITS

(D) CUSTOMER SATISFACTION /

DELIGHT.


5/36


6/36

A Market Potential is an estimate of themaximum possible sales opportunities

present in a particular market segment andopen to all sellers of a good or service duringa stated future period.


7/36

Market Identification Who Buys?

Market Motivation Why ? Analysis of Market Potential- Identify factors

associated with Product Demand


8/36

Finding out that :

Who buys the product?

Who uses it?

Who are the prospective buyers and/or users?


9/36

Some companies find answers to thesequestions in their internal records, but most

companies, especially those that use longmarketing channels, must use field researchto obtain meaningful answers.


10/36

To analyze the market potential thecompany has to detect the reason whycustomers buy the product and the reasonswhy potential customers might buy it.

Market motivation answers the questions: Why to people buy?

Why dont people buy?


11/36

Information from motivation studies helpsnot only in estimating a products market

potential but assists in deciding

How best to present the product in sales

talks?The relative effectiveness of different selling

appeals?The relative appropriateness of various

promotional methods?


12/36

Market potential cannot be analyzed directly,so analysis makes use of a market factors(amarket factor is a market feature orcharacteristic related to the productsdemand)

Example : No petrol bike, Electric shavers


13/36

Using market factors for analyzing marketpotential is a two-step process:

Select the market factors associated with theproduct's demand.

Eliminate those market segments that do notcontain prospective buyers of the product.


14/36


15/36

A Sales Potential is an estimate of amaximum possible sales opportunitiespresent in a particular market segment opento a specified company selling a good orservice during a stated future period.


16/36


17/36

A Sales Forecast is an estimate of sales, inmoney ($/Rs.) or physical units, in a futureperiod under a particular marketing programand an assumed set of economic and otherfactors outside the unit for which theforecast is made.

A SF may be for a single product or for an

entire product line. It may be for amanufacturers entire marketing area, or forany subdivision of it.


18/36

Sales Potential are quantitative estimates ofthe maximum possible sales opportunitiespresent in particular market segments opento a specified company selling a good orservice during a stated future period. Theyare derived from Market Potential.

A firms sales potential and its sales forecast

are not usually identical-in most instances,the sales potential is larger than the salesforecast.


19/36


20/36

A Sales Forecasting method is a procedure

for estimating how much of a given product(or product line) can be sold if a givenmarketing program is implemented.

No sales forecasting method is foolproof-each is subject to some error.


21/36

Jury of Executive OpinionThe Delphi Technique

Poll of Sales Force Opinion Projection of Past Sales Survey of Customers Buying Plan Regression Analysis


22/36


23/36

Sociologists use the term dyad to describea situation in which two people interact.

Example:

The salesperson and the prospect, interactingwith each other.

The interaction of a seller using advertising with aparticular prospect in the reading, listening, orviewing audience.


24/36


25/36

Is selling a science with easily taught basic

concepts or an art learned throughexperience?


26/36

The theory is popularly known as AIDAStheory, after the initials of the five words

Attention

Interest

Desire

Action

Satisfaction

During the successful selling interview,according to this theory, the prospects

mind passes through five successivemental states.


27/36

Securing Attention

The first few minutes of the interview are crucial.The salesperson has to have a reason, or an

excuse, for conduction the interview. (Venue

Marketing) Generally it is advantageous if the opening

remarks are about the prospect (people like totalk and hear about themselves) or if they are

favorable comments about the prospectsbusiness


28/36

Gaining Interest Some salespeople develop a contagious

enthusiasm for the product or a sample. When theproduct is bulky or technical, sales portfolios,flipcharts, or other visual aids serve the samepurpose.

Kindling desireThe next is to kindle the prospects desire to the

ready-to-buy point.

Obstacles must be faced and ways found to getaround them. Objections need answering to theprospects satisfaction.


29/36

Inducing actions If sales presentation has been perfect, the

prospect is ready to act i.e. to buy. Buying is not automatic and as a rule must be

induced.

Some salesperson never ask definite yes or

no.

Building satisfaction After the customer has given the order, the

salesperson should reassure the customer thatthe decision was correct.


30/36

Everything was right for the sale is whatthe theory says off.

This theory, sometimes called the situation-response holds that the particularcircumstances prevailing in a given selling

situation cause the prospect to respond in apredictable way.


31/36

The buyers needs or problems receive majorattention, and the salespersons role is tohelp the buyer find solutions.

This theory purports to answer the question: What thinking process goes on in the prospects

mind that causes the decision to buy or not tobuy?

Need-Solution-Purchase-satisfaction


32/36

This is based on using a stimulus-responsemodel and incorporating findings frombehavioral research.

Four essential elements of the learningprocess included in the stimulus-responsemodel are

Drive Cue

Response

Reinforcement


33/36

Drives Drives are strong internal stimuli that impel the

buyers response.

Cue Cue are weak stimuli that determine when the

buyer will respond.

Response Response in what buyer does

Reinforcement A reinforcement is any event that strengthens

that buyers tendency to make a particularresponse.


34/36


35/36


36/36

A Introduction to Sales Management

Documents

Transcript of A Introduction to Sales Management