Genesis: SALES ORIENTATION STAGE OF MARKETING

Selling: It refers to an art of persuasion by means of preaching attributes

of the products / service so that need can be created among prospective
customers and purchase can be made by them.

Sales Management: Sales management originally referred exclusively to

the Direction of sales force personnel who undertake the responsibility of
selling.

According to AMA: “Sales management refers to the planning, direction,

and control of personal selling including recruiting, selecting, equipping,
assigning, routing, supervising, paying and motivating as these tasks
apply to the personnel sales force.”

Tosdal defines it as “a planned proposition of work of any commercial,

personal sales unit, which includes admission, selection, training to
handle the equipment, regulation, investigation, payment and incentive,
and this is applied to personal sales.
 Features of Sales Management

1.It is a planned proposition of work of personal selling.

2.It deals with the management of sales force personnel.

OBJECTIVES

• To generate profitable sales volume

• To contribute significantly in the maximization of profit by cost
reduction
• To ensure sustained growth and long term performance of the firm
• To develop corporate image
• To bring maximum satisfaction among customers & consumers
• To achieve marketing objectives of the firm
Nature and role of sales management

 The determination of sales force objective and goals

 Sales force organization, size, territory, and quota finalization
 Sales forecasting and budgeting
 Sales force selection, recruitment, and training
 Motivating and leading the sales force
 Designing compensation plan and control systems
 Designing career growth plans and building relationship
strategies with key customers
 Sales Management & Exchange Process

Elements of Exchange Process

1.Two or more social units (people or organization) must be involved with
wants to be satisfied
2.Each party must have something of value to contribute in the exchange
process
3.Parties must be involved voluntarily to achieve objectives
4.Parties must be able to communicate with each other

THUS
1.Sales personnel represent their firm in the exchange process
2.They contribute their firm’s offering in the exchange process
3.They get involved in the exchange process to convert firm’s offering into
cash
4.They communicate attributes of the offering along with terms and
conditions with the prospective buyers

HENCE
•Sales process is based on the philosophy of Exchange process
•Sales force personnel are the FRONT END of the firm
 PERSONAL SELLING & SALESMANSHIP

Sales Mgt., personal selling and Salesmanship are interrelated and

interdependent. Sales mgt. directs the personal selling efforts, which in
turn, is implemented largely through salesmanship.

Personal Selling
Personal selling is a broad term including many activities such as,
1.Job and responsibility of sales personnel
2.Identification of buyers’ problems which sales people need to meet
3.Ways and means to handle those problems for solutions by the
salesmanship.

Thus, personal selling along with other marketing functions such as

product development, pricing, promotion and distribution etc. facilitate
in the implementation of total marketing plan.
 SALESMANSHIP
According to Shapiro
It is an art of successfully persuading prospects or customers to buy
products or services from which they can drive suitable benefits, thereby
increasing total satisfaction.

AMA defines it as
“a process of persuading a person to buy goods and services. It is a
method of arriving at a common point of view with the prospects with
regard to the desirability of some articles, service or idea. The act of
salesmanship consists of
“one human mind influencing another human mind”

Thus
Salesmanship is seller initiated efforts that provides prospective buyers
with information and other benefits, motivating and persuading them to
decide in favour of seller’s product or service.
 ROLE / FUNCTIONS OF SALES MANAGERS
Objectives: Growth, profitability, corporate image and customer satisfaction

To achieve above objectives, role of sales managers are

1.Coordination with the firm
# Higher authorities in marketing & sales departments
# Other functional areas who have interface with sales
2.Coordination with Planning (Marketing)
# Other marketing programs like product development, ad, sales
promotion, MR, MIS etc.
# Distribution network
# Local promotion through distribution network
# Reconciling business goals
3. Management of Sales Force
# Recruitment, selection, training, development, supervision,
compensation, motivation and evaluation of sales force
4. Management of Distribution Network
# Appointment, motivation, retention, training & development, and
conflict-free partnering channel relationships
5. Business Intelligence
# About consumer profile, reseller profile, competitors’ actions and
reactions
6. Customer care, support and relationships
 DIVERSITY OF SELLING SITUATIONS

1.Service Selling
# Inside Order Taker: Assisting consumers in selection at
point-of-purchase
# Delivery Sales Persons: Making delivery of products
ordered
# Route or Merchandising sales Person: Act as order taker
from the field
# Missionary: Aims only to build goodwill or to educate
actual or potential user or buyer
# Technical sales Person: Impart technical knowledge

2.Developmental Selling: (Creating demand for product/service)

3. Unusual Creativity: Political, Indirect or Back-order

 Selling and buying styles

9 (1,9) People Oriented (9,9) Problem Solving Oriented

I am customer’s friend, I want
to understand him and
8 respond to his feelings and
interests so that he will like
Concern for the customers
I consult with the customer so as
to inform myself of all the needs
in his situation that my products
can satisfy. We work towards a

7 me. It is the personal bond that sound purchase decision on his

leads him to purchase from part, which yield him the benefits
6 me. he expects from it.
(5,5) Sales technique Oriented
I have tried an effective routine for
5 getting a customer to buy. It
motivates through a blended
4 personality and product emphasis
(1,1) Take it or Leave it (9,1) Push the product Oriented
3 I place the product before the I take challenge of the customer
customer and it sells itself as and hard sell him, polling on all
2 and when it comes. the pressure it takes to make
him buy
1 1 2 3 4 5 6 7 8 9
Concern for the company
 Personal Selling Process

AIDAS Framework & Personal Selling Process

Follow-up

Sales
Further Closing
Lowering Handling
And Objections
Act
Minimizing
of
Cognitive
Closing Sales
Dissonance
A Increasing Presentation &
Bringing
Sales Desire Demonstration
Satisfaction
(Action) And
Sales
Lowering Secure Approaching
Cognitive General
Dissonance Interest
& Arouse Bring
Desire Attention Prospecting
STEP-1: PROSPECTING

Exploration & Identification of Potential Customers i.e.,

1.People with unsatisfied needs
2.Money to spent
3.Willingness to spend it

Methods
Cold canvassing
 satisfied customer referral
Prospect pool
Company’s records
Reference groups (recommendations of eminent people)
Non competing sales force
Personal Observation
Friends and acquaintances
Lists and directories
Direct mail
Telemarketing
Trade shows and demonstrations
 Steps in Prospecting

Formulating Searching Determining Relating Firm’s

Prospect Potential Probable Offering to prospects’
Definition Account Requirements Requirements

# Needs # Combing out # Identification Matching of

# Money Un-potential # Estimation Prospect’s
# Willingness Prospects # Specification Requirements
# Authority # Sources of of Probable With Firm’s
# Availability Prospect Requirements Offering
to sales Information or vis-a-vis
person of Prospects
STEP-2: APPROACHING
Establishment of a contact with the selected Prospect

Key Tip for success of approaching is to collect some information about profile
of the prospects before approaching about
# Likes & dislikes # Habits
# Needs / wants # Nature & behavior
# Preference # Economic & Social status, etc.

Methods of Approaching
1.Cashing on Brand name / co’s reputation approach
2.Customer benefit approach
3.Innovative product introduction approach
4.The premium approach (giving small gifts / novelties to draw attention)
5.The Shock approach (highlighting special issues like rising crime, risks etc.
6.Making Prospects feel important approach (prompting ego)
7.Interactive approach

Objective
“To capture prospect’s attention, interest and convince them
that it will be rewarding to spend time with him”
 STEP-3: PRESENTATION & DEMONSTRATION

Objective: “To Secure General Interest and Arouse Desire”

Essentials for Good Presentation
# Display of the Product at most Prominent Place
# Attractively packed, decorated and well organized to create a good
impression
# Proper training to salesmen about the features of the product and
relative
advantages over competing products
# Use Multimedia materials for effective presentation if possible to display

Models, Pictures, cartoons, Statistics, etc,

# Describing best possible and effective uses of the Product
# Demonstrate the product if possible to create a positive impression as

1.To show the product features more clearly

2.Reinforcement of prospects’ buying decision
3.Providing an opportunity to compare with other products
4.Increases customer confidence about the product / offering
 STEP-4: HANDLING OBJECTIONS
Objective: To Stimulate Specific Interest and Desire by Lowering
Cognitive Dissonance

Making objections by prospects is the real beginning of the selling. So,

salespeople must develop a positive attitude and should be capable of
anticipating, evaluating and handling prospects’ objections.

Methods for Handling Objections

1.Direct denial method
2.Indirect denial method (yes but method)
3.Translation method
4.Compensation method (acceptance of validity of objection but describing
other advantages or benefits to compensate for objection)
5.The Question method (asking some questions by sales person for the
analysis and answer of the asked question)
6.The Pass-up method (by smiling salesman ignore the objection)
Guidelines for Handling Objections

Sales personnel should

1.Encourage prospects to raise objections without any interruption and

hesitation
2.Understand the question, analyze it thoroughly and then answer it
relevant to the sales situation
3.Use the language of the prospect so that easily understood by the
prospect
4.Be specific and should try to make his affirm why the prospect should
buy
5.Give the answer as early as possible
6.Never argue with the prospect while handling objections
7.Must be “COOL HEADED”
 STEP-5: CLOSING THE SALES

Objective: “To Convert Desire into Actual Purchase by the Prospect”

# The climax of the selling process in which the salesman asked / prompt
the prospect to buy the product
# At this point, the prospect agrees to buy the product

Effective Ways of Sales Closing

1.To take it for granted

2.Offer some incentive such as price deal, free home delivery, gift, etc.
3.Telling small business stories how others have been benefitted by the
purchase of the product s in the past
4.Fear of loss
5.Stressing minor but interesting details
6.Giving reference details of other satisfied customers
 STEP-6: FOLLOW UP

Objective: “To Bring maximum satisfaction and maintain long term

relationships”
1. Salesman should ensure that the delivery instructions given by the
prospect are properly followed
2. Installation, after-sales-service , warranty (if any) services should be
properly rendered
3. Salesman should visit customer often to listen to his problems
4. Built relationships with customers that will facilitate in the
identification of new prospects