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This ppt would be useful for those who wants to understand the basics of sales management and personal selling.
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Tata Motors global Sales up 3 pc in August
Rural India boosts FMCG firms Sales
United Spirits Clocks Sales Volume of 100 Million Cases to Become the
World’s 2nd Largest Spirits Company
Audi reports best ever July Sales in US…making seventh straight
record setting month for 2011Xbox 360 tops US Sales in August despite PS3 price cut.
AT & T goes door to door for Sales
Infosys may beat Q4 guidance, FY12 Sales may grow 18-20%.
Educomp expects FY12 Sales at Rs 1760 crore.
Samsung eyes 30% growth in Sales during festive season
Mathew Lawrence
- Prepared by Mathew Lawrence
Sales Management & Personal Selling
Sales Management
Introduction to Sales Management
Sales Force- Managing the Sales Force
Sales Manager- Duties and Responsibilities
Formulation of sales strategy – Introduction
Different Sales Strategy
Problems of Sales Management
Methods of selling – special emphasis on Personal Selling
Personal selling
Introduction
Changing face of Personal Selling
Steps in Personal Selling
Difference between Advertising and Personal Selling
Theories of Personal Selling
Presentation Flow
Mathew Lawrence
Introducing the Concept Sales Management
Sales management is a business discipline which is focused on the
practical application of sales techniques and the management of a
firm's sales operations.
Birth of Sales Management: After the Industrial revolution and with the increase in volumes of
production, i.e production on mass scale not only for local consumption but also to cater to the demand
at national and global levels sales management came into existence.
Sales mgt is responsible for the sale of products of a company and to add profit to the business
operation.
Sales force should be hardworking, result oriented, well educated and competent to handle changing
situations.
Definition : “The process of planning, directing and controlling of personal selling, including recruiting,
selecting, equipping, assigning, supervising, paying and motivating the sales force”- American
Marketing Association
Thus sales management means, the task which includes analysis, planning, organizing, directing and
controlling of the company’s sales effort.
Mathew Lawrence
Managing the Sales Force
The key to any successful sales management lies on the people working in sales.
Companies spend considerable amount of money on training and development of sales
force.
Sales force management of any company lies on three parameters they are-
Organisation: The key to sales force is the right level of aggregation against product lines and
geographical area. (separated product line)
Strength and Qualification: Sales force strength and qualification significantly affect the ability to
provide competitive service level and economies of sales force.
Compensation and Incentive system:
compensation and incentives have a significant
impact on the moral of the sales force and help in
retaining successful sales people.
Mathew Lawrence
Sales Director (1)Divisiona
l Manager
(2)Zonal Manager (10)
Regional Manager (25)
Territory Business Manager (50)
Territory Business Executive (50)
Example of a hierarchy in Sales Department
Mathew Lawrence
Duties & Responsibilities of a Sales Manager
Sales Manager is the most important person in a sales department. All activities are
based on his functions and responsibilities.
Sales Manager is like the captain of a team who leads from front and sets up
examples for it is subordinates.
Following are some of the principal duties of a sales manager:
Organizing sales research, product research etc.
Getting the best output from the sales force under him.
Setting, achieving and controlling the targets, territories, distribution etc.
Advising the company on various media, sales promotion schemes etc.
Monitoring the companies sales policies.
Mathew Lawrence
Formulation of Sales Strategy
The function of sales manager includes the task of organizing, planning and implementing the
sales efforts so as to achieve corporate goals related to market shares, sales volume and
return on investments. Following are the key decision areas on which sales strategy is
Formulated:
Determining the size of sales force
Determining the quality of sales force
Determining the market share and volumes of business.
Competitors presence.
Recruitment and training procedures.
Type of customer base.
Feedback mechanism to be adopted
Mathew Lawrence
Different Sales Strategy
Relationship Strategy: The major key to success in selling is the
ability to establish working relationship with customers. The sales
force that builds effective relationship with the customers and provide
valuable service are usually high performers and top achievers.
Example: Hospitality, Travel & tourism.
• The Double-Win Strategy: In this strategy both customers and the salesperson
come out of the sale with a sense of satisfaction. Both feel satisfied that, knowing that
neither has taken advantage of the other and both have profited, personally and
professionally.
Example: Insurance
Instant Service: No matter how efficiently and effectively goods/services are produced, if they cannot
be delivered to the customer in the quickest manner, all efforts made earlier are in vain. Also the concept
of supply chain had involved from this sales strategy.
Example: Short shelf life products- Consumable products
Mathew Lawrence
Different Sales Strategy (continued)
Hard Sell v/s Soft Sell Strategy:
Hard Sell Soft Sell
Concern for self only
Concern for customer
Canned Presentation
Questions and Discussion
Talking Listening
Pushing product Providing buying opportunities
Presenting features Presenting benefits
Advocating without acknowledging
Acknowledging needs
Mathew Lawrence
Different Sales Strategy (continued)
Client centered selling strategy: This strategy focuses the entire selling process and
efforts on the client’s need and problems. It considers who the client is, what he or she
does an where, when, why and how he/she does it. It demands the fullest knowledge of the
client as an individual.
Example: Designer garments, Rolls Royce
Mathew Lawrence
Problems of Sales Management
Designing and Managing sales force: The greatest challenge
for any sales manager is to maintain the attrition of his sale team.
So the sales manager must maintain a vigilant check on the
various activities of the sales force.
Sales force Authority: Delegation of authority has to be passed on to his subordinates.
Following are some of the delegation-
Changing prices (negotiation)
Credit Facility
Quality and after sales assurance
Settlements of Claims, etc.
Target-setting: Target setting is necessary for achieving organizational goals. Sales targets
are fixed on the basis of past experience, time period, brand positioning.
Sales Forecasting: Sales forecasting must change according to the environmental factors.
It is also one of the factor influencing the target setting.
Mathew Lawrence
Methods of selling
Telemarketing: Selling concepts on the phone- Telemarketing outfit
works through a well networked team of trained telemarketers who make calls
to potential clients and establish direct contact with them. The key lies in convincing
the customer about the value of the product or service and fixing up appointment.
Example: Housing loan, Insurance, selling, Credit cards etc.
• Sales on the Internet: A new dimension in the selling world. Many
companies are now promoting there products through web network. The
greatest advantage of sales on the internet is the market coverage it gets.
Example: E-bay, flipkart.com.
Mail order Sales: In this method, customers do not visit the seller’s business premise, nor do they make
a personal examination of goods, before they are purchased . Orders are received through post and goods
are dispatched usually through Value Payable Parcel.
Example: Readers Digest, Magazines.
Mathew Lawrence
Methods of selling (continued)
Retail Selling: Concentration of population in urban areas, increasing flow of
manufactured goods and improved methods of organising business have led to
the expansion of retail business. At present there are different forms of retail
formats giving rise to selling of goods.
Example: departmental store, hypermarket, supermarket, co-operatives etc.
Wholesale Selling: A wholesaler performs different activities like-
Assembling and buying
Storing and warehousing
Transportation
Financing
Risk Bearing
Grading, packing etc.
Example: Cash and Carry.
Mathew Lawrence
Methods of selling (continued)
Direct Selling: In this method, it only takes a minute to clinch a sale but choosing the
right minute to contact the customer involves a day’s work for a direct marketer.
“I don’t care how many degrees you have on the wall if you don’t know how to sell you are probably
going to starve.”
Heavyweight boxer George Forman’s advice to his children
Mathew Lawrence
21%
25%
17%
37%
What creates a satisfied customer
A total customer solution
Quality of the prod-uct and service
Competitive Price
Competence of the Sales Person
Mathew Lawrence
What Is Personal Selling?
Personal selling occurs where an individual salesperson sells a product, service or solution
to a client. Salespeople match the benefits of their offering to the specific needs of a client.
Definition : A form of person to person communication in which a salesperson works with
prospective buyer and attempts to influence purchase in the direction of his or her
company’s products or services
Some important aspects of Personal selling:
It provides human touch to business transaction.
It promotes long term business relationship.
It enhances customer confidence
It helps in understanding the pulse of the customer.
It helps in customizing the product.
Helps in convincing the customer about the product.
Mathew Lawrence
In today’s competitive markets, a personal seller’s role is not just confined to persuading
prospective customers to buy products. In view of above, modern sales approach is based on the
following parameters.
Value sharing: The sales people share the same value as
their customers and perceive the customer’s needs with the
sole view to serve them better.
Relationship Building: A sales person should be able to
maintain the relationship with customers, which culminates in
building long term relations.
Role Playing: The sales people, in personal selling go far beyond realizing sales volume. They
act as a consultant to their prospective customers constantly advising them of new products
and updates.
Co-ordinated approach: with a view to providing total customer satisfaction, a co-ordinated
approach of sales people with their colleagues is necessary. Example- maintenance,
installation, trouble shooting etc.
Changing face of Personal Selling
Mathew Lawrence
Steps in Personal selling
Successful personal selling calls for an integrated approach devised from the experience of the
sales personal. The approach comprises steps they are as follows:
Prospecting
Pre approach
Approach
Presentation /
Demonstration
Handling objective
s Closing
Follow-up
Mathew Lawrence
Prospecting
Prospecting is the process of identifying prospective buyers of the product. The prospects are those
who have a need or will to buy and need or will to buy and power to pay. Prospects may be
Individuals or institutions. There are different ways to identify the prospects. Some of the most
Frequently used methods are described below.
• Cold Calling
• Acquaintance of Reference
• Center of Influence
• Personal Observation
• Direct mail / Telephone
• Company records
• Newspaper
• Other Methods
Prospecting
Mathew Lawrence
Pre-approach
Pre-approach is the second step in the selling process which emphasizes that the salesman should
know the likes and dislikes, needs, preference, habits, nature, economic and social status of his
prospect clients. There are certain significances of pre-approach they are as follows.
• It is a method by which a salesperson concentrates only on the prospects.
• It helps a salesperson gain all the possible information about the prospect before approaching
him.
• Because of the ample knowledge of the prospects a salesperson is able to give presentation
more efficiently and effectively and with confidence.
• With good presentation a salesperson is focused around the needs of the prospect
Pre approach
Mathew Lawrence
Approaching
In this stage the prospect and the salesperson comes in contact with each other face to face. Here
the salesman has the opportunity to understand and interact with the prospect in a better way.
Hence getting the attention of the prospect and persuading him to buy are the two main objectives
of a salesperson.
Methods of approaching:
• Cashing in the brand name approach
• Customer benefit approach
• Innovative product approach
• Premium approach
• The shock approach
• Survey approach
Approach
How do we make theInitial contact & build
rapport
There is only one time to make a first
impression
Mathew Lawrence
Approaching (continued)
Key Guidelines
Prior Appointments
Timing
Command on the subject matter
Relaxed approach
Open mindedness
Courtesies
Effective presentation
Follow ups
Mathew Lawrence
Presentation / Demonstration
A good presentation is as important as good product. Presentation can be in different forms like-
attractive packaging and display, conspicuous placement of the product in window display etc.
Presentation also includes the interior decoration of the shop and appearance. Requirements for
a good presentation includes –
Location of display of the product.
Packaging of the product.
Explanation of the feature
Should be able to appeal the prospect.
Demonstrating the product: Demonstration is an exercise to prove the characteristic of the
product. It highlights various attributes of the product such as utility, performance, service etc.
Hence demonstration is imperative and essential for a prospect to make a buying decision.
Presentation /
Demonstration
Mathew Lawrence
Handling objective
s Handling Objection
Objections, quires, doubts are signs of interest from prospects. It can taken as positive manner
or on a negative manner. Objections do take place when there is a good presentation. Or else
the salesperson may have failed to provide adequate information, or have not demonstrated how
the product meets the needs of the prospect
Closing
This is the last stage of any sales presentation.
The main aim of the close is to convince the prospect
and overcome the objections to sign the sales order form.
The sales person should be alert and use his good judgment
to spot an opportunity when the prospect is in a good mood.
IF HE HADN’T TOLDME WHAT HIS OBJECTION
WAS, I NEVER WOULDHAVE BEEN
ABLE TO HELP!
Mathew Lawrence
Follow ups
Follow up is as important as other pervious stages. It is this stage where the sales person
maintains the clients on a long term. Importance of follow-ups are –
Building relationships
Updates from clients.
Cross selling
Re - purchase
Getting reference
Helps in avoid other competitors
Updating the market
Develops loyal clients.
Necessary for customer satisfaction
Follow-up
Mathew Lawrence
Difference between Advertising and Personal Selling
On a broad prospective both advertising and personal selling are the means to communicate
with the target customers for its products. But both has its own application and uses to
communicate.
Marketing Mix
Product
PricePromoti
onPlace
Advertising
Public Relatio
ns
Personal
Selling
Sales Promoti
on
Advertising Personal Selling
One way communication
Two way communication
No direct contact with customer
Direct contact with customer
Cannot convince the customer
Can convince the customer
Has a large reach
Has limited reach
Costly approach Less costly approach
Applies Pull strategy
Applies Push strategyMathew Lawrence
Theories in Personal Selling
AIDAS Theory: This theory is based on the premise that during a sale presentation, the prospect
consciously goes through five different stages- Attention, Interest, Desire, Action and Satisfaction.
Attention: The sales person should attract the prospect to his presentation before he
actually goes into the details of the product.
Interest: Once the sales person has successfully gained prospect’s attention, he/she should maintain the
interest of the prospect throughout the presentation.
Desire: After gaining proper interest the sales person has to create a strong desire in the prospect’s mind to
purchase his product.
Action: At this stage a sales person should induce the prospects in to actually buying the product.
Satisfaction: Once the prospect has placed an order, the sales person ensures that the prospect carries the
impression of having taken the right decision.
Example: TATA Nano
Attention Interest Desire Action Satisfaction
Mathew Lawrence
Theories in Personal Selling (Continued)
Right set of Circumstances Theory: The advocates of this theory define that all the
circumstances, which led to the sales were appropriate for the sales to have taken place. In
other words, if the sales person is successful in securing the prospect’s attention,
maintaining his interest and inducing his desire to buy the product, the sales will result.
Moreover, if the sales person is highly skilled, he will take control of the presentation, which
would lead to sales
Buying Formula Theory: This theory emphasize on the buyer. This theory emphasizes on
the needs or problems of the buyer. The sales person assist the buyer in finding an
appropriate solution to the problem. This solution may be in terms of a product or service.
Mathew Lawrence
Mathew Lawrence
Assignment- 1
Case Study Analysis
Identify a company who launched its product with the application of AIDAS theory and explain each
stage?
Mathew Lawrence
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