SALES MANAGEMENT & PERSONAL SELLINGConcept, Nature, Role of Sales Management in Marketing, Salesmanship, Specific characteristics of a successful salesman, the evolving face of personal selling

WHAT IS SALES MANAGEMENT?

An earlier explanation/ definition of sales management was, directing the sales force personnel.

Later as the responsibilities taken up by the sales team grew and as the sales function evolved into a more holistic function a new definition has emerged :

Sales Management is management of all marketing activities including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.

CURRENT DAY DEFINITION OF SALES MANAGEMENT

The American Marketing Association has given a current day definition of sales Management as:

The planning, direction and control of personnel selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personnel sales force

OBJECTIVES OF SALES MANAGEMENT

From the Organizations Viewpoint there are three general objectives of sales management

a. Achieving the desired sales volumeb. Contribution to profits in the organizationc. Continuing growth

SALES MANAGEMENT PROCESS

Resources

HumanFinancial

Raw MatlsTechnologyInformation

Controlling

Evaluating the past to guide the

future

PlanningBuilding a profitable customer oriented

sales team

LeadingGuiding average people to perform at

above average levels

TrainingEducating

sales personnel to

satisfy customers

Staffing Hiring the

right people to sell and

lead

PerformanceObtain Goals

Product sales & profits

Customer satisfactio

nEfficiencyEffectiven

ess

NATURE & IMPORTANCE OF SALES MANAGEMENT

Nature & Characteristics of Sales Management

A. Its integration with marketing Management -B. Relationship SellingC. Varying Sales responsibilities

INTEGRATION OF SALES MANAGEMENT WITH MARKETING MANAGEMENT

Aligning the sales plan with the marketing plan

Marketing Research Customer Service Coordination Promotions (including advertising, Sales

Promotion, Publicity & PR)

RELATIONSHIP SELLING Buyers and salespersons have some type of a

business or working relationship Every relationship is an exchange Relationship Marketing aims at creation of

customer loyalty The spectrum of relationships includea. Transactional relationship (Selling)b. Value added relationship (Counseling)c. Collaborative relationship (Partnering)

VARYING SALES RESPONSIBILITIES

Response Selling Sales Support Technical Sales Support Demand Creator or business developer Solution vendor

SALESMANSHIP

Sales Management, Personal Selling and Salesmanship are all related. Sales management directs the personal selling effort which is turn is implemented largely through salesmanship

Salesmanship is one aspect of personal selling and never all of it.

It is one of the skills used in personal selling

SALESMANSHIP DEFINITION

Salesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction.

It is also defined as a seller initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favour of the sellers products or services

SPECIFIC CHARACTERISTICS OF A SUCCESSFUL SALESMAN

People Skills – Ability to motivate, lead, communicate and coordinate effectively

Managing Skills- Administrative skills like planning, organizing, controlling & decision making

Technical Skills – Training, Selling skills, negotiating skills, use of IT, problem solving abilities, Product knowledge

PERSONAL SELLING

It is a direct presentation of a product to a prospective customer by a representative of the organization selling it.

It takes place face to face or over the phone and it may be directed to a business, person or a final consumer

TYPES OF OBJECTIVES OF PERSONAL SELLINGSome of the Objectives of personal selling are: To shoulder the entire responsibility of the

promotion mix (when no other element of Promotion mix is used)

To maintain contact with existing customers, take orders etc (also known as servicing existing accounts)

To search and obtain new customers

OBJECTIVES ….CONTD…

To secure customers cooperation in stocking and promoting the product line

To inform and educate customers To assist customers in selection To provide technical assistance To assist with training the middlemen’s sales

personnel To collect market information

CHANGING FACE OF PERSONAL SELLING

Modern sales approach is based on the following parameters

1. Value Sharing: Salespeople study the changing needs and preferences of their customers.

2. Relation Building: A value-based relationship helps the salespeople to constantly mobilise resources and modify the end product by catering to the specifics of the buyer.

3. Role Playing: The salespeople, in personal selling, go far beyond realising sales. Sales people act as consultants to their prospective customers constantly advising them of new products, their updates and impart knowledge to them.

4. Changing Approach: Personal selling comes in a package containing the inputs of the experts from different areas such as maintenance, installation, trouble shooting, delivery staff, sales personnel, etc.

EFFICACY OF PERSONAL SELLING Personal Selling with Respect to Product Strategy Since salespeople are in direct liaison with prospective

customers, their input is valuable during product development. Personal Selling and Pricing Decisions Sales personnel undergo requisite interaction with prospective

customers to gauge their mood with respect to different price levels.

Personal Selling and Distribution The end result of any distribution effort is the ready availability

of the product to the customer, in the right quantity and at the right place.

Personal Selling and Product Promotion Sharing the same values that the customer does, a salesperson

provides motivation and generates interest and confidence in the customer for the product.

DIVERSITY OF PERSONAL SELLING SITUATIONS

Personal Selling situations -Service Selling Inside Order Taker , Delivery Salesperson ,Merchandising

Salesperson, Missionary, technical Sales personDevelopmental Selling

Creative sales person of tangibles, Creative salesperson of intangibles

Creative Selling Political, Indirect, Back door

Salesperson in multiple Sales

SERVICE SELLING Inside Order taker – here the salesperson waits on

customers (e.g Sales Counter person) Delivery Salesperson – Engaged in delivering the

product (Person who delivers Milk, Eggs) Merchandising/Route Sales Person – Works as an

order taker on field mainly with retailers Missionary _Works only to create goodwill and

disseminate information . Does not do any order taking

Technical Sales Person – Emphasizes technical Knowledge and educates customer

DEVELOPMENTAL SELLING

Creative sales person of tangibles – Sales person selling vacuum cleaners , encyclopedias

Creative sales person of intangibles- Sales person selling Insurance, advertising services, Educational programs

CREATIVE SELLING (BASICALLY DEVELOPMENTAL)

Political /Indirect/Back Door – Selling big ticket items by catering to the other interests of the customers (which have no connection with the product)

Salespersons engaged in multiple sales- Where the sales person is required to make presentation to various entities of an organization (Ad agency salespersons making presentations to selection committee, creative department, product department etc)

THEORIES OF SELLING

Is selling a science which can be taught and has several basic concepts?

OR Is it an art which can be learned through

experience? This has led to two contrasting approaches to

theories of selling The first approach relies on Experiential

learning The second approach draws from

fundamental concepts of behavioral sciences

THEORIES OF SELLING

Seller Oriented AIDAS theory Right set of circumstancesBuyer Oriented Buying Formula TheoryBehavioral Equation Theory

AIDAS THEORY

A – Secure Attention I – Gain Interest D – Kindle Desire A- Induce Action S – Build Satisfaction

RIGHT SET OF CIRCUMSTANCES THEORY Also known as situation response theory It holds that particular circumstances prevailing in

a selling situation will cause the prospect to respond in a predictable way

Set of circumstances include external and internal factors

(E.g Salesperson to Prospect – Let have coffee – Sales person and proposal to have coffee are external factors

- Prospects desire to have coffee or to go out with salesperson are internal factors)

RIGHT SET OF CIRCUMSTANCES THEORY

It stresses on importance of salesperson controlling situations

Does not handle the problem of influencing factors internal to the prospect

Fails to address the response side of the Situation-Response interaction

BUYING FORMULA THEORY OF SELLING

Here the buyer’s needs receive major attention

Need (Problem recognition) Solution Purchase

Need (Problem recognition) Solution Purchase Satisfaction

BEHAVIOURAL EQUATION THEORY J A Howard explains buying behaviour in terms of the purchase decision process. He uses

four essential elements of the learning process namely Drives – Strong internal stimuli that impel the buyers response

Innate –Physiological like hunger, thirst etc

Learned – Strive for status Cues – Weak stimuli that determine when the buyer will respond

Triggering – Activate the decision process (price, smell, aroma etc)

Non-Trigerring- Influence the decision process but do not activate (Package, information on the cover etc)

Response – is what the buyer does Reinforcement - any event that strengthens the buyer’s tendency to make a particular

response

B = P X D X K X V

B – Act of purchasing

P – Predisposition or inward response tendency

D- Present Drive level

K – Intensive potential ( value of the product to satisfy the need)

V – Intensity of all cues

Cont….

Steps in Personal Selling

Successful personal selling calls for an integrated approach devised from the

experience of the sales personnel. The approach comprises the steps as shown

in the figure here. Each of these steps are further described in brief.

Steps in Personal Selling

Cont….

Prospecting

Prospecting is the process of identifying prospective buyers of the product. A prospect is qualified if he has the authority, need, ability and eligibility to buy. There are different ways to identify prospects. Some of the most frequently used methods are described below:

Acquaintance References

Cold Calling

Centre of Influence Method

Personal Observation Method

Direct Mail or Telephone Method

Company’s Records

Newspapers

Retailers

Other Methods

Cont….

Pre-approach

Pre-approach is the second step in the selling process which emphasises that the salesman should know, after identifying the prospect in the prospecting stage, the prospect’s likes and dislikes, his needs, preferences, habits, nature, behaviour, economic and social status etc.

Significance of Pre-Approach

1. Salesman concentrates only on the prospects and not the suspects.

2. Salesman gain all the possible information about the prospect before approaching him. Hence any kind of loose talk or serious mistake can be avoided.

3. He is able to give a sales presentation more efficiently, effectively and with confidence.

4. It does not waste the prospect’s time and energy since the salesman is already aware of the needs and preferences of the prospect.

Cont….

The “Ferris Wheel” concept, which is aimed at supplying an ongoing list of prospects, is part of world sales record holder Joe Girard’s customer strategy

PP

P

P

P

PP

P

P

P

P

P

Referrals Relationship between customer and sales-person deteriorates

Friends and acquaintances

Business failure

Directories New buyer buys from another source

Trade publications and trade shows

Acquisitions and mergers

Telemarketing and advertising

Customer moves

Death of customer

Cold calling Customer has only a

productone-time need for

Networking Customer needs change because of new technology

Cont….

Usage of Prospecting Time

Sales force must plan its time in such a manner that maximum time is made

available for those prospects who are likely to give a large volume of business

to the company.

To avoid this wastage of time, grading of the prospects will be an important

step.

Cont….

Approaching

In this stage the prospect and the salesman come in contact with each other

face to face.

The salesman has an opportunity to understand and interact with the

prospect in a better way.

Salesman should put forward his best efforts to make the best use of this

opportunity in getting the attention of the prospect and to convince him to buy

the product.

Getting the attention of the prospect and persuading him to buy are the two

main objectives of a salesman.

Cont….

Approach Adopted by Travelling Salesmen

A salesman may directly approach the prospect without any introduction

whatsoever and then conduct an interview.

Sending an advance mailer explaining his product and its benefits vis-à-vis

other products available.

There is no better method of securing an appointment with a prospect than

through a reference given by the friend, relative or business associate of the

prospect.

Another effective way of securing an appointment and interview with the

prospect is for salesmen to give away gifts to the prospects before asking for

an appointment.

Sale letters have proved to be another kind of door opener.

Cont….

Successful Approach

The following points specify the importance of a successful approach:

i. A successful approach enhances the sale and it is thus important for the

running of a business.

ii. A failed approach will give an opportunity to the rival company. So a good

approach will go a long way in building good relations with the prospect while

a bad approach will not only result in losing business but will also make it

easy for a competitor to tap new customers.

iii. The approach helps in enlightening the prospect by providing him ample

information about the product, price, competitor’s product, benefits etc. that

he can derive from the product.

Cont….

Key guidelines for successful approach

Prior Appointment

Timing

Command

Relaxed Atmosphere

Open Mindedness

Courtesies

Effective Presentation

Follow up

Cont….

Methods of Approach

There are different methods of approaching a prospect and some of the most

important ones are given below.

Cashing in on Brand Name or the Company’s Reputation

Customer Benefit Approach

Innovative Product Opens the Door to the Salesman

The Premium Approach (Small Gifts or Novelties)

The Stock Approach

The Approach of ‘Making the Prospect Feel Important’

The Survey Approach

Interactive Approach

Cont….

Presentation

Quick presentation creates a good impression.

Attractively packaged, decorated and well- organised.

Should explain the product with its features and price advantage to the

customer in simple and easy terms.

Customer be shown the kind of quality that he is looking for.

Helps the salesman to prove the features of the product and emphasise its

genuineness.

Cont….

Demonstration

Demonstration is an exercise to prove the characteristics of the product.

It highlights various attributes of the product such as utility, performance,

service and quality.

It is only during the demonstration that the customer gets an opportunity to

verify the facts about the product.

Demonstration is imperative and essential for a prospect to make a buying

decision.

The Close

This is the last stage of any sales presentation.

The main aim of the close is to convince the prospect to sign the order form

or to place an order immediately rather than in the future.

It is also important that through proper planning, prospecting, presentation

and demonstration the salesman should try to capture the attention of the

prospect and not let the prospect change his mind.

Cont….

Relationship of Salesmanship with Sales Management and

personal Selling

Salesmanship & Personal Selling

1. The ability to quickly develop rapport with their prospective customers.

2. A desire to truly help their customers.

3. The habit of asking questions to gather information before making a pitch.

4. Sticking to a consistent, proven sales process.

5. A never ending desire to learn more about how to sell more effectively.

Cont….

Myths about selling

Myths of selling: There are various myths about selling process which needs to be

cleared for a sales person.

1. Buyers are liars

2. Anyone can be persuaded to buy

3. In buying decision, price is the primary reasons

4. A technique that works well for one person will work for everyone

5. Close the sales as soon as possible

6. The deal can be closed at any price

Cont….

Various Selling theories

“SELL” Model

This is a simple model describing the various actions associated with the word itself.

1. Show features: it is the very first stage; expected to show the features of the product, demonstrating how it works, and showing the results of using the product immediately.

2. Explain advantage: Immediately, after demonstrating the product, explain the advantage possibly related with the features, showing the advantages which ate derived from it.

3. Lead into benefits: Correlate the advantages with the benefits. This is simply highlighting the materialization of those benefits in conducting the set of activities due to having/using the product.

4. Let them talk: Then at the end, let them talk further about the product, its features and those future benefits. If the previous steps are done well, they will talk themselves for the sale.

Cont….

“SLAID” Model

This is another simple model describing the various actions associated with the

word itself, “Slaid” acronym for sales steps.

1. Show the product: Showing the product in full or showing specific function

is also possible in the beginning, just to trigger the anxiety or curiosity in their

mind. It is not a full product demonstration. Demonstration comes a bit latter

state in this methods.

2. Listen: A partial demonstration flash triggers a lot of questions, or

estimations or expectations, in case if the product is absolutely new concept.

3. Acknowledge: Your hearing will endorse that you have understood and are

ready to fulfill their needs. You may be given elaborative further deep

information about their objection.

Cont….

4. Identify: Identify the objections, and bring them on a squaring off situation

with contents offered by your product. If possible, set up a concession clause,

balancing the benefits of new product over the old objections, so that you can

handle the objection and will get the sale.

5. Deliver: Ask the participants to repeat the demonstration to build the

confidence about the product performance.

OBSTACLES TO SALES

Sales Objections Real Insincere