Sales Management; A Concise Guide to Sales Management
Click here to load reader
-
Upload
anuranjansinha -
Category
Documents
-
view
2.501 -
download
3
description
Transcript of Sales Management; A Concise Guide to Sales Management
Sales Management:Chapter 01 intro to personal training:
Personal selling: Interpersonal influence process involving a promotional presentation conducted on a One-to-One basis with the buyer. The process of:Developing customer relationships, discovering customer needs, matching appropriate products with these needs, and communicating benefits.”
To
Sales Management Trends
From
Transactions Relationships
Local Global
Management Leadership
Individuals Teams
Sales Volume Sales Productivity
PERSONAL SELLING’S UNIQUE ROLE:1. High level of customer attention2. Customize the message3. Yields immediate feedback4. Communicate more technical and complex information5. Demonstrate a product’s functioning and characteristics6. Develop long-term relationship
MODERN SELLING PHILOSOPHY:
Based on trust and mutual agreement Customer-driven Act as if on customer’s payroll After-sales service is key Professionalism and integrity are essential
SELLING FOUNDATIONS:In order to be successful in today’s global business environment, salespeople must have a solid relationship building foundation. They must: Be TrustworthyBehave Ethically
Understand Buyer BehaviorPossess Excellent Communication Skills
SELLING PHILOSOPHY OF ‘GOOD’ SALESPEOPLE:1. Selling is problem solving2. Selling is a caring activity3. A customer is a person to be served, not a prospect to be sold4. Treat people as human beings, not $ signs5. Be customer driven, not product driven6. Long-term success depends on customers relations7. Selling is a ‘win-win’ activity8. Adherence to ethics, mutual trust, and honesty is essential
CHAPTER 02 INTRO TO SALES MANAGEMENT:
Salesmanagement
Salesmanagement
Planning MotivatingBudgeting CompensatingRecruiting and selecting Designing territoriesTraining Evaluating performance
Planning MotivatingBudgeting CompensatingRecruiting and selecting Designing territoriesTraining Evaluating performance
Products Prices
Advertising Publicrelations
Personalselling
Salespromotion
Promotion Distribution
Marketingmix
SALES MANAGEMENT: Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.THE SALES FORCE MANAGEMENTManaging Sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them and providing the proper planning and backup support so they can perform their jobs properly.
WHAT ARE THE SALES MANAGERS GOALS? Sales Revenues Profits
Market Share Controlling internal costs
Sales Force Strategy
Role of SaleSales Force
Defining SellingProcess
Defining the Sales
Organisation
Recruit TrainAnd ……
Sales force
Role of Alternative
Sales channel
Building Sales capabilities…
Motivate & support sales force
Develop skills for effective selling
Organize for efficientcoverage
Develop sound selling strategy
Clear segmentation
Explicit objectives, goals and priorities
Winning selling proposition
Realistic time frame/expectations
Right structure
Right size
Territory / account
Assignments for adequate coverage
Define necessary skills
Develop training, recruiting and coaching programs for:
• Product knowledge• Buying process• Sales methodology• Planning & execution
Align measurement and reward systems:
• Compensation• Recognition
Provide necessary organization support (systems, etc.)
Sales management model
StrategyMission
SalesSupport
SalesForce
Deploy-ment
IndividualSellingSkills
Coaching& Super-vision
Recruiting& Training
Infor-mation
Resources
Motivation& Compen-
sation
Sales Strategy
EffectivenessEfficiency
Capability Building
What is the value proposition and the role of the sales force in its delivery?
Is the sales force (and channels) organized for optimal coverage of selected markets?
What critical selling skills are required for the sales role in the value proposition?
Does the sales force have adequate coaching & supervision?
Does the compensation plan meet management’s objectives and pay the sales force fairly?
Are information systems being fully utilized to support the selling effort?
Does the recruiting and training match selling skill requirements?
Is support adequate to maximize the selling effort?
CHAPTER 03 SALES CHANNELS Personal selling occurs through several types of communication channels Each sales channels has unique aspects which make it relevant for particular
sales situations.
The five sales channels: OVER-THE-COUNTER SELLING: personal selling conducted in retail and
some wholesale locations in which customers come to the seller’ place of business.
FIELD SELLING: Involves calling on prospective customers in either their business or home locations. Four types of field sales person:
Professional Salespeople: Help prospective customers to define their needs and then suggest the best means of meeting those needs, even if that requires suggesting that the prospects use a competitive product
National account managers: Highly skilled salespersons who call on key customers’ headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level
Missionary Salespeople: They do not seek to obtain a direct order from their customers. Primary goal is to persuade customers to place orders with distributors or wholesalers
Support Salespeople: Support the sales force in a number of ways Technical support salespeople assist with technical aspects of sales presentations. Merchandisers may set up product displays
TELE-MARKETING: Utilizes the phone for prospecting, selling, and/or following up with customers. Inbound and outbound.
CHAPTER 04(a) PROSPECTING:
The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the PRODUCT.
QUALIFIED PROSPECTS: Can benefit from the sales offering Have the financial wherewithal to make the purchase Play an important role in the purchase decision process Are eligible to buy based on a fit within the selling strategy Are reasonably accessible and willing to consider the sales offering Can be added to the customer base at an acceptable level of profitability
Importance of effective prospecting: The better the lead generation method, the higher the proportion of qualified leads. The more accurate the qualifying process, the higher the proportion of customers per qualified lead. Improving the lead generation method so that 10 leads generates two qualified customers means you will need only 50 leads to generate one customer.
CHAPTER 05 SALES PROCESS:
AIDA Process
A
I
D
A
ttention
nterest
esire
ction
A
D
I
A
Begin with an attention-getter that relates to the receiver’s needs.
Introduce the product, service, or idea and create interest by stating specific reader benefits.
Create desire to respond positively by presenting convincing evidence of the value of the product, service, or idea.
Encourage action by making it easy and restating the main benefit of responding positively
The Sales Process
The AIDA Concept and the Personal Selling Process
CHAPTER 06 PRESENTATION AND OBJECTION HANDLING:
A sales presentation should make the prospect want the product being presented
PRESCRIPTION STAGE: The salesperson arouses a prospect’s interest by showing understanding of the prospect’s problem and prescribing (presenting) a solution to it.SOLUTION STAGE:
Assumes a knowledgeable role Begins to earn the right to be an advisor to the prospect
Customizes the presentation of product features and benefits to the prospect’s specific needs and wants
PARTENERING STAGE: Business partnering occurs as a result of sellers and buyers pooling resources in a trusting atmosphere focused on continuous and mutual gain.
COMPONENTS OF A SUCCESSFUL PRESENTATION: Create a drama Don’t exaggerate Keep promises
CHAPTER 07 TERITORY DEIGN AND COVERAGE:
WHAT IS A SALES TERITORY?A sales territory is composed of a group of customers or a geographic area assigned to a salesperson.A sales territory is number of present and potential customers, located within a geographical area and assigned to a salesperson, branch, or intermediary”Sales territories (or markets) are made up of customers rather than geography
REASONS COMPANIES DEVELOP AND USE SALES TERRITORIES:
BENEFITS OF TIME AND TERRITORY MANAGEMENT: Territory should be more efficiently and effectively covered Optimum time should be spent with each class of prospects Most important customers should receive the bulk of the service Sales costs should be reduced due to better time allocation Optimum results will be yielded
STAGES IN TERRITORY DESIGN:
DESIGNING SALES TERRITORIES:
1. Select a control unit State Province City Station or a zip code
2. Determine location and potential of customers Identify both present and potential customers Determine the amount of potential business from each account
3. Determine basic territories through • Determine optional call frequencies (per year)• Determine the total number of calls needed in
each territory• Determine workload capacity • Draw tentative territorial boundaries• Modify tentative territories as needed
4. Assign salespeople to territories Need to consider differences in sales abilities and skills Why and how often should territories be revised Effect of revision of territories
5. Set up territorial coverage plans for sales force Routing sales force Scheduling reps time
6. Evaluate effectiveness of the design
ACCOUNT ANALYSIS: Account analysis is used to estimate the sales potential for each customer and
prospect in a territory Sales potential estimate is used to decide how much effort should be spent on
each account
Total effort to cover a territory is calculated by considering:
Number of accounts Number of calls to be made on each account Duration of each call Estimated amount of nonselling and travel time
CHAPTER 08 MARKETING CHANNELS AND SUPPLY CHAIN MANAGEMENT:
MARKETING CHANNEL: A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.SUPPLY CHAIN: The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function.
Marketing channel fulfills 3 vital functions: Specialization and Division of Labor: Provides economies of scale Aids
producers who lack resources to market directly Builds good relationships with customers
Overcoming Discrepancies: Discrepancy of Quantity Discrepancy Of Assortment
Providing Contact Efficiency
CHANNEL INTERMIDEARIES:
RETAILER: A channel intermediary that sells mainly to customers. Take title to goods.
MERCHANT WHOLESALER: An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them. Take title to goods.
AGENTS AND BROKERS: Wholesaling intermediaries who facilitate the sale of a product by representing channel member. Do not take title to goods.
Channels for Consumer ProductsChannels for Consumer Products
Producer Producer Producer Producer
Consumers Consumers Consumers Consumers
Retailers Retailers Retailers
Wholesalers Wholesalers
Agents orBrokers
WholesalerWholesalerChannelChannel
RetailerRetailerChannelChannel
DirectDirectChannelChannel
Agent/BrokerAgent/BrokerChannelChannel
Physical flow process that engineers the
movement of goods
Physical flow process that engineers the
movement of goods
Communicator ofcustomer demand frompoint of sale to supplier
Communicator ofcustomer demand frompoint of sale to supplier
Role of Supply ChainManagement
Role of Role of Supply ChainSupply ChainManagementManagement
Role of Supply Chain ManagementRole of Supply Chain Management
DISTRIBUTION CHANNELS PERFORM IMPORTANT FUNCTIONS:
• Facilitating the exchange process• Sorting to alleviate imbalances between outputs and consumer needs• Standardizing transactions• Holding inventories• Assisting the search process• Transporting materials and products
LOGISTICS:The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
SCM: A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption.
Supply Chain Management Supply Chain Management ActivitiesActivities
Manage relationships in the supply chain
Manage relationships in the supply chain
Manage the logistical components of the supply chain
Manage the logistical components of the supply chain
Determine channel strategy and level of distribution intensity
Determine channel strategy and level of distribution intensity
Balance the costs of the supply chainwith the service level demanded by customer
Balance the costs of the supply chainwith the service level demanded by customer
CHAPTER 10: PUSH N PULL STRATEGY: