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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


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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.


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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.


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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.


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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


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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.


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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.




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.



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



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



Framework for joint decision making

in sales and distribution management

Distribution channelsAchievement of sales

Goals throughCompanys sales force

Distribution channels


Personal &Prospecting

through

Personal & Non-personalPromotion through

Companys sales force

Companys sales force



Framework for joint decision making

in sales and distribution management

Distribution channelsMaintaining

Inventory throughCorporate organization


Corporate sales organization


Companys own sales force

AccountsReceivables

through

Information feedbackthrough


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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


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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


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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


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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


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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


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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


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Personal Selling Tasks

Missionary

Detailer

Goodwill Closers

Cross-functional

Account service rep


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PCTI Limited - A Unique Name For Quality EducationYou are part of the total product


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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


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Prospecting:Identifying likely newcustomers

Leads Developing lists of

Potential CustomersPre-approach (Qualifying)

Finding and analyzinginformation about prospects

Evaluating a prospectspotential

Creative Selling Process


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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


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Making The Sales

Presentation

Using Persuasive

communication

Hold Attention

Stimulate Interest

Desire

Tell the products

story



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Handling Objections

Questions

Reservations

Understand Concern

Counterarguments

Acknowledge concern

Clues to process



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Overcoming Objections

IF HE HADNT TOLD

ME WHAT HIS OBJECTION

WAS, I NEVER WOULD

HAVE BEENABLE TO HELP!


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Closing the Sale

Closing signals

Trial close Asking the

prospect tobuy



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Following Up

Commitments met

Shipment

Performance

Reinforce L-R

relationship

Satisfied customers

rebuy & recommend



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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


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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


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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


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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


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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


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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.


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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


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Evaluating Salespeople

Several tools can be used Sales reports

Call reports

Expense reports


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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


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A Key to Success

Stay Close to

Your

Customerand

LISTEN!


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THEORIES OF SELLING

AIDAS Theory:

ATTENTION

INTEREST

DESIRE

ACTION

SATISFACTION

RIGHT SET OF CIRCUMSTANCES


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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


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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.

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