Sales Management

Responsibility of Sales Executives

-Sales Volume
-Profit Contribution
-Continuing Business Growth

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Sales Management
As per American Marketing Association
(AMA)
Definition: Process of Planning, Direction
and control of personal selling, including
recruiting, selecting, equipping, assigning,
routing, supervising, paying & motivating
as these tasks apply to the personal
salesforce
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Sales Management
Personnel Related Sales Force Mgmt
Sales Managers Budgets, Quotas,
Territories, lesser extent on advertising,
channel decision, distribution policies,
promos, pricing

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Sales Management
Sales Cost Of Sales = Gross Margin
Gross Margin Expenses = Net Profit
Used as indicator by Board, Senior
Management etc

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Personal Selling & Salesmanship

Sales Management
Personal Selling
Salesmanship
Personal Selling Broader Concept like
Pricing, Advertising, M.R., Prdt Devmt

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Early Days Personal Selling

Has been a standard business activity
for thousands of years
Early 18th century,people sold goods
they manufactured or imported . . .
viewed selling as a secondary activity
In the 19th century, Goods sold to both
consumers and intermediaries
sometimes using questionable practices
and built negative stereotypes which
persist today
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Modern Salesperson
Todays salesperson is usually a highly-trained
professional
Sales professionals take a customer-oriented
approach employing truthful, non-manipulative
tactics in order to satisfy the long-term needs of
both the customer and the selling firm
Todays professional salespeople are problem
solvers who seek to develop long-term
relationships with customers
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coordinator

Sales Executive as a Coordinator

With Marketing
With H.R.
With Finance
With Production
With R & D
With Design
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Salesmanship
Art of successfully persuading
prospects/Customers to buy products/Services
beneficial to them
Seller initiated effort that provides prospective
buyers with information & other benefits motivating
or persuading them to decide in favour of the
sellers product / Service
Sales men as psychologist, counsellor, advisor,
personal friend
Advertising is Salesmanship in print
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 Factors affecting the importance of personal

selling in the promotional mix
Variable

ConditionsThatFavor
Advertising
Geographicallydispersed
Relativelyhighnumbers
Inexpensive
Simpletounderstand
Standardized
Nospecialhandling
requirements

Price

ConditionsThatFavor
PersonalSelling
Geographically
concentrated
Relativelylownumbers
Expensive
Technicallycomplex
Custommade
Specialhandling
requirements

Relativelyhigh

Channels

Relativelyshort

Relativelylong

Consumer

Product

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Relativelylow

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The Four Sales Channels

Personal selling occurs through several
types of communication channels
including these four:
Over-the-Counter
Field Selling
Telemarketing
Inside Selling

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Types of Selling
Corporate
Sales
Tech/ Non
Technical
Service/
Product

Channel Sales
Service/Product
Technical/Non
Tech
DSA
Dealers
Distributors

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Retail
OTC
Door to Door
Supermkt

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Cost of a Sales Call by Industry

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Trends in Personal Selling

Relationship selling:
selling regular contacts over an
extended period to establish a sustained
seller-buyer relationship
Consultative selling:
selling meeting customer
needs by listing to them, understanding -- and
caring about -- their problems, paying attention
to details, and following through after the sale
Cross-selling: offer multiple goods and
services to the same customer
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 Buyers prefer to do business with salespeople

who:
Orchestrate events and bring to bear whatever
resources are necessary
to satisfy the customer
Provide counseling to the customer based on in-depth
knowledge of the product, the market, and the
customers needs
Solve problems extremely proficiently to ensure
satisfactory customer service over extended time
periods
Demonstrate high ethical standards and communicate
honestly at all times
Willingly advocate the customers cause within the
selling organization
Create imaginative arrangements to meet buyers
needs
Arrive well-prepared for sales calls
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Joint Sales Calls

Team Selling:
Selling combination of salespeople
with specialists from other functional areas
to promote a product
More effective for technical
products/complex products

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Technology & Sales

Sales Force Automation (SFA):
applications of computer and other
technologies to make the sales function
more efficient and competitive
Benefits include improved effectiveness due to
improved access to information, lower costs, improved
product launches, and attentive customer service
Example: SIEBEL based software, Infosys etc

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Sales Tasks
Three basic sales tasks can be
identified:
Order Processing
Creative Selling
Missionary sales

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 Order Processing:
Processing selling, mostly at the wholesale and
retail levels, that involves identifying customer needs,
pointing them out to customers, and completing orders
Creative Selling:
Selling personal selling involving situations
in which a considerable degree of analytical decision
making on the buyers part results in the need for skillful
proposals of solutions for the customers needs
Missionary sales:
sales indirect type of selling in which
specialized salespeople promote the firms goodwill
among indirect customers, often by assisting customers
in product use

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BUYER SELLER DYAD

DYAD - Situation in which two people
interact
Salesmanship & advertising seek to
motivate buyer favourably towards seller
Salesman with similar characteristics to
buyer will succeed more
Industrial Selling Vs Consumer Selling in
terms of prospects
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The Sales Process

The AIDA Concept and the Personal Selling Process

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 Prospecting:
Prospecting personal-selling function of
identifying potential customers
Qualifying:
Qualifying determining that a prospect
has the needs, income, and purchase
authority necessary for being a potential
customer
Approach:
Approach salespersons initial contact
with a prospective customer

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 Pre-call Planning: use of information

collected during the prospecting and
qualifying stages of the sales process and
during previous contacts with the prospect to
tailor the approach and presentation to match
the customers needs
Pre call planning sheets
Brochures, samples, planner

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 Presentation:
Presentation describing a products major
features and relating them to a customers
problems or needs
Displays & Graphics
Support Tools Increase the Effectiveness of
Presentations
Flip charts, Laptop, Palmtop, sheets, brochures
Demonstration allows the customer to experience
a good or service

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 Handling Objections:
Objections expressions of
sales resistance by the prospect
Example: A customer giving Lack of
funds or budgets not so much
Objections are reasonable and
professional salespeople are prepared
to handle them appropriately

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 Closing:
Closing stages of personal selling
where the salesperson asks the
customer to make a purchase decision
Follow-up:
Follow-up post-sales activities that
often determine whether an individual
who has made a recent purchase will
become a repeat customer
Helps build mutually beneficial long-term
relationships
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SPANCO
SPANCO Process
Suspect
Prospect
Approach/Meeting
Negotiation
Closure
Order
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Cognitive Dissonance
Established Product Ongoing Salesclient relation
Established Product New Sales Personclient relation
New Product Ongoing Sales Personclient relation
New Product New Sales Person Client
relation
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Managing the Sales Effort

Sales management:
management Activities of
planning, organizing, staffing, motivating
compensating, and evaluating and
controlling a sales force to ensure its
effectiveness

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 How salespeople and sales managers spend their time

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 Recruitment and Selection

One of the sales managers greatest
challenges
Careful selection is important for two reasons:
Substantial costs involved
Mistakes are costly and detrimental to customer
relations and sales-force performance

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 Training
Principal methods used are on-the-job training,
individual instruction, in-house classes, and
external seminars
Popular training techniques include
instructional videotapes/DVDs, lectures, rollplaying exercises, slides, films, and interactive
computer programs

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 Organization
General organizational alignment may be
based on geography, products, types of
customers, or some combination of these
factors
National accounts organization:
organizational arrangement that assigns sales
teams to a firms largest accounts

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 Supervision
Span of control: the number of sales
representatives who report to the first level of sales
management
Optimal span of control is affected by such factors
as complexity work activities being performed,
ability of the individual sales manager, degree of
interdependence among individual salespersons,
and the extent of training each salesperson
receives

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 Motivation
Efforts to motivate salespeople usually take
the form of the briefings, information sharing,
and both psychological and financial
encouragement
Psychological encouragement includes
appeals to emotional needs, recognition, and
peer acceptance
Financial encouragement includes monetary
rewards and fringe benefits such as club
memberships and sales contest awards

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 Compensation
Commission: incentive compensation
directly related to the sales or profits
achieved by a salesperson
Salary: fixed compensation payments
made periodically to an employee

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 Evaluation and Control

Sales quotas: level of expected sales for
territory, product, customer, or salesperson
against which actual results are compared
Other measures such as customer
satisfaction, profit contribution, share of
product-category sales, and customer
retention
Another way to categorize a salespersons
strong points:
Task, or technical ability
Process, or sequence of work flow
Goal, or end results (output) of sales performance
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Ethical Issues in Sales

Promotional activities, including personal
sales, raise many ethical questions
Sales managers can foster a corporate culture
for an ethical sales environment:
Employees understand what is expected of
them
Open communication exists between
employees and managers
Management leads by example
Employees are proud of and loyal to their
organization
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