Ms 62

MS-62 SALES MANAGEMENT
An ISO 9001:2008 Certified Organization
SESSION-1
BLOCK-I SALES MANAGEMENT FUNCTIONS
UNIT-1 INTRODUCTION TO SALES MANAGEMENT
UNIT-2 PERSONAL SELLING
UNIT-3 SALES PROCESS
UNIT-1 INTRODUCTION TO
SALES MANAGEMENT
SALES MANAGEMENT:
It has been defined as the management of 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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Copyright PCTI Group 2009
DISTRIBUTION MANAGEMENT
Distribution (or place) is one of the

four elements of marketing mix. An
organization or set of organizations (gobetweens) 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.
EXCHANGE PROCESS
It is the sale and delivery of
goods/services from the manufacturer to
the consumer can be consummated
directly i.e. by the firm itself through its
own sales force or indirectly through a
network of middleman such as
wholesalers and retailers.
Essential tasks need to be performed

in order to consummate successful exchange
Contact- finding and communicating with prospective
buyer
Prospecting- Bringing together the marketers offering
and the prospective buyer
Negotiation- Reaching an agreement on price and other
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
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 its channel
members would define the scope of responsibility of its
own sales force and thereby would determine the type
of personnel and training required.
and Distribution
Even though, an organization may decide to deal
directly with its wholesaler, semi wholesaler,
retailer or consumer,it is required to decide upon
the type of help it will provide to the first and
subsequent level of intermediaries.
The choice before an organization to have direct
distribution, indirect distribution or a combination
of the two is of strategic importance and depends
upon factors such as the degree of control,
flexibility, costs and financial requirements etc.The
scope of distribution would 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 of
structuring organizational relationship within their
own department and with interacting
organizational entities.
Key decision areas in

Sales Management relevant to
strategy formulation
Deciding upon type
and quality of sales
personnel required
Determination of the
size of the sales force
Organization and
design of the sales
department
Territory design
Recruitment & training
procedures
Task allocation
Compensation of sales
force
Performance appraisal
Feedback mechanism
Managing channel
relationship
Coordination with other
Marketing department
Strategic Formulation Process

Step1-Assessment of the competitive situation
and the corporate goals to determine the
output that sales management is expected
to give.
Step2-Define sales management objectives in
terms of delivering these outputs both
quantitative and qualitative.
Step3-Design sales strategy by deciding
upon: type of sales effort required, type of
sales personnel required, size of the sales
force, territory design, channel support &
coordination
Framework for joint decision making

in sales and distribution management
Achievement of sales
Goals through
Personal &
Prospecting
through
Distribution channels
Companys sales force
Personal & Non-personal
Promotion through

Framework for joint decision making

in sales and distribution management
Maintaining
Inventory through
Accounts
Receivables
through
Corporate organization
Corporate sales organization
Information feedback
through
Companys own sales force

BLOCK-1 SALES
MANAGEMENT:BASIC FUNCTIONS
An ISO 9001:2008 Certified Organization
UNIT-2 PERSONAL SELLING

&
UNIT-3 SALES PROCESS
Examples of Personal Selling

Retail selling
Field selling
Telemarketing
Inside selling
12 million people are engaged in personal selling
in the United States
Represents about 10% of the work force
Relative Importance of
Advertising and Personal Selling
Pre-transaction:
Create recognition and info
understanding
Personal
selling
Post-transaction:
Reminder and
reassurance
Transaction:
Advertising Persuasion
Personal
selling
Advertising
Personal
selling Advertising
Characteristics of Personal Selling

Pro
Flexibility
Con
Adapt to situations
Engage in dialog
Builds Relationships
Long term
Assure buyers receive
appropriate services
Solves customers
problems
Can not reach mass

audience
Expensive per contact
Numerous calls
needed to generate
sale
Labor intensive
Types of Salespersons
ORDER
GETTERS
Current
customers
New
customers
ORDER
TAKERS
Inside Order Takers
(via mail, telephone,
internet)
Outside Field Sales
SUPPORT
PERSONNEL
Missionary
Salespersons
Trade
Salespersons
Technical
Salespersons
Personal Selling
Salespeople have many names
Agents
Sales consultants
Sales Representatives
Account
Executives
Sales Engineers
District Managers
Marketing representatives
Account Development
Representatives
16-18
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
Personal Selling Tasks

Missionary
Detailer
Goodwill
Closers
Cross-functional
Account service rep
You are part of the total product

FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
APPROACHING THE PROSPECT
Pre approach: QUALIFYING PROSPECTS

PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS
The Personal Selling Process

Creative Selling Process

Prospecting: Identifying likely
new customers
Leads
Developing lists of Potential
Customers
Pre-approach (Qualifying)
Finding and analyzing
information about prospects
Evaluating a prospects
potential
Approaching The Prospect

HOW DO WE MAKE THE
INITIAL CONTACT & BUILD
RAPPORT
There is only one

time to make a first
impression

Making The Sales Presentation
Using Persuasive
communication
Hold Attention
Stimulate Interest
Desire
Tell the products story

Handling Objections
Questions
Reservations
Understand Concern
Counterarguments
Acknowledge concern
Clues to process
Overcoming Objections
IF HE HADNT TOLD
ME WHAT HIS OBJECTION
WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!

Closing the Sale
Closing signals
Trial close
Asking the
prospect to buy

Following Up
Commitments met
Shipment
Performance
Reinforce L-R relationship

Satisfied customers rebuy
& recommend
Managing the Sales Force

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

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

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

Training Salespeople
Training period can be anywhere from a few
weeks to a year or more
Training is expensive, but yields strong
returns
Many companies are adding Web-based
sales training programs

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

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 are consistent with overall
marketing objectives.

Supervising Salespeople
Supervision is used to direct and motivate
salespeople
Companies will vary in how closely they supervise
their salespeople; will vary depending on the skill
level and maturity of the sales force, and type of
selling
Tools used:
Annual call plans and time-and-duty analysis can help
provide direction
Sales force automation systems assist in creating
more efficient sales force operations
The Internet is the fastest-growing sales technology
tool

Evaluating Salespeople
Several tools can be used
Sales reports
Call reports
Expense reports
Job quality: do it right the first time

Prompt warranty work
After-sales Service
Ratings
Speed
.37
Reputation
3.38
Service
Quality
7.87
Cost
4.39
10
0
Low
High
(SCALE: Degree of Importance)

(JMR/Vol. 78)
A Key to Success
Stay Close to
Your
Customer
and
LISTEN!
THEORIES OF SELLING
AIDAS Theory:
ATTENTION
INTEREST
DESIRE
ACTION
SATISFACTION
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 prospects
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.This theory is based on the
analysis of the sequence of events that goes
in the buyers mind during the sales
presentation.The theory is based on the
presumption that the sales person will take
care of the external factors.

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MS-62 SALES MANAGEMENT

An ISO 9001:2008 Certified Organization

Copyright PCTI Group 2009

Distribution (or place) is one of the

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Essential tasks need to be performed

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Key decision areas in

Copyright PCTI Group 2009

Strategic Formulation Process

Copyright PCTI Group 2009

Framework for joint decision making

Companys sales force

Companys sales force

Copyright PCTI Group 2009

Framework for joint decision making

Corporate sales organization

Companys own sales force

Copyright PCTI Group 2009

UNIT-2 PERSONAL SELLING

Examples of Personal Selling

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Characteristics of Personal Selling

Can not reach mass

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Personal Selling Tasks

Copyright PCTI Group 2009

Personal Selling Tasks

Copyright PCTI Group 2009

You are part of the total product

Copyright PCTI Group 2009

Pre approach: QUALIFYING PROSPECTS

The Personal Selling Process

Copyright PCTI Group 2009

Creative Selling Process

Copyright PCTI Group 2009

Approaching The Prospect

There is only one

Copyright PCTI Group 2009

Creative Selling Process

Copyright PCTI Group 2009

Creative Selling Process

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Creative Selling Process

Copyright PCTI Group 2009

Creative Selling Process

Reinforce L-R relationship

Copyright PCTI Group 2009

Copyright PCTI Group 2009

Managing the Sales Force

Territorial sales force structure

Copyright PCTI Group 2009

Managing the Sales Force

Copyright PCTI Group 2009

Managing the Sales Force