Sales Management Previous Session .

Sales Management
Previous Session..
Overcapacity Hypercompetion Business Failure.. Selling Concept and Marketing Concept. Conceptualizing Business.. Distinction between Consumer Marketing and Trade Marketing. Distribution to the Outlet and Distribution in the outlet.. Core & Value Added Services.
Trading Environment & Channel Management
Todays Session
Trading Environment Consumer Environment Emerging Channels Role of Intermediaries Strategic Channel Decisions Channel Conflicts & their Management
Understanding Environment
Organisational Environment: All elements existing outside the organizations boundaries that have the potential to affect the organization. Internal Environment: The environment within the organizations boundaries. Task Environment: Includes those sectors that have a direct working relationship with the organization among them customers and competitors.
External Environment
World as we know is undergoing tremendous and far-reaching change. Therefore we need to examine components of external and internal environments. Changing Components: In addition to customers and competition, we have Technology & Economic conditions.
Dimensions of External Environment

International Dimension: Represents events originating in foreign countries as well as opportunities. Technological Dimension: Scientific and technological advancements in the industry and society at large. Socio-cultural Dimension: Demographic characteristics, Norms, Customs and values of the population within which the company operates.
Overview of The Marketing Environment

The factors and forces that affect marketing managements ability to develop and maintain successful transactions with target customers. Microenvironment The company The suppliers Marketing intermediaries The customers The competitors Publics Macroenvironment Demographic environment Economic environment Natural forces Technological forces Political forces Cultural forces
Key Message of Environment

Constantly changing Need for Managers to adapt to the changing environment. In trade marketing we need to lean the changing trade environment and customer environment.
If the only constant is change

Where are we coming from ? Premise 1: Whatever got you where you are today is no longer sufficient to keep you there. Premise 2: In the complex sale a good tactical plan is only as good as the strategy that led upto it. Premise 3: You can succeed in sales today only if you know what you are doing and why.
Environment Uncertainty
If External environment creates change and uncertainty for the organisation, what are the strategies: Two Basic Strategies: Adapt the organisation to the changes in the environment. Influence the environment to make it more compatible with organizations needs.
In the context of Trade Marketing

Changes Affect Two Key Areas Trading Environment Consumer Environment
Changes in the Trading Environment

Concentration in the trade with cross borders As barriers are reduced, products will expand into other markets Internationalism will accelerate National products spill into other countrys markets Companies will concentrate their purchasing where it is most advantageous International brands will grow in importance. The trade will develop international strategies for categories. Manufacturers will become much closer to their customers.
Changes in Consumer Environment

Reduced rate of growth in population An ageing population due to improvements in health services More households with fewer people per household Consumer are more critical Steady increase in disposable income Increased people mobility
General Industry Trends impact trading and consumer environment

Trade Concentration
A reduction in the number of outlets and the emergence of large strategic accounts.
Internationalism
Retailers are now opening operations in many different countries. Major buying groups have emerged on an international basis with complex networks significantly impacting on manufacturer marketing plans.
Specialisation
Consumer loyalty has been established by new and varied retailing formats targeted at different consumer needs.
Emerging Outlets Types

Hypermarkets and Superstores Convenience Outlets Discounters Supermarkets Petrol Stations Leisure Outlets Hotels, Restaurants, Cafes, Bars, Clubs, Discos Vending..
Impact of Technology
Better informed trade Better management of the administrative details of the business. Total Inventory control Enhanced consumer activity allows trade to target customers specifically.
Marketing channels are behind every product

Institutions specializing in manufacturing, wholesaling, retailing join forces to reach the end consumer. These institutions deliver everything Books to Mutual Funds Medical equipments to telephony Office Suppliers to Toiletries Milk to Newspapers The list can go on and on..
Marketing channels change with changes in environment

Personal Computers: IBM sold its first PC in the early 1980s through its employee sales force direct to the end user. Questions on merit the high cost of direct distribution Channel quickly changed to VARs (Value-added retailers) Dell (founded in 1984) changed the rules of the game first through telephone ordering and now over the Internet. By 1999, Dell surpassed Compaq in the US with over 30 % MS. Books: Publishers, Book Wholesalers, Book Retailers Today it is necessary to operate on-line bookstores Amazon.com / Books.com / BestBookBuys.com These developments threaten traditional book shops but provide new opportunities for shippers like UPS and Fedex
Where do you look for influence

It depends on how much impact the channel can have on your end consumer. You may decide on any of the Distributors / Wholesalers / Retailers / Value-added Retailers combination. But no two situations can be exactly alike. The operative word therefore is May In any sales opportunity, the task is to identify roles individuals play. There cannot be a universal pattern. It is impractical to generalize about decision-making as you swim the channel.
Basic Definition
A marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption. It is not just one firm doing its best in the market many entities are involved each entity dependent on the other. It is a process and not an event. Purpose of the process: Satisfy the end users in the market. The goal is the use or consumption of the product or service being sold It is critical that all channel members focus their attention on the end consumer Happy Customers
Definitions
Channel of distribution is a path traced in the direct or indirect transfer of the title to a product as it moves from a producer to ultimate consumers or industrial users EW Cundiff & RS Still The course taken in the transfer of the title to a commodity constitutes its channel of distribution. It is the route taken by the title to a product in its passage from its owner, an agricultural producer, or a manufacturer, as the case may be, to the last owner, the ultimate consumer or the business user. Beckman and Others A channel of distribution or marketing channel is a structure of intracompany organisation, units and intra-company agents and dealers, wholesalers and retailers through which a commodity product or service is marketed American Marketing Association
Channel viewed as a key strategic asset

$ 70 billion merger in 1998 Citicorp and Travelers Group Citigroup
Citicorp
Worlds biggest bank World-wide distribution network of branch banks
Travelers
Focused on insurance, mutual funds and investment banking. 10300 Brokers 80000 financial services insurance agents. 10000 travelers insurance agents.
Channel decisions are strategic

What does the example show: Marketing channel decisions play a role of strategic importance. Financial products manufactured in various parts of our company will be distributed through a broad range of methods, from the Internet and other technologybased methods to branch office locations in one hundred countries around the world to fully individualized, in-home service. Marketing channels and structures have changed over time.
What do marketing channels do ?

Demand Side Factors: Searching End-users are uncertain about where to find the products and sellers are uncertain about how to reach the target end users. Intermediaries facilitate .. If intermediaries are not there how would sellers reach customers with an unknown brand name. They are trusted by the end-consumers..being the first point of contact. Intermediaries facilitate on both ends of the channel. Example: Laserjet printer manufacturers have to go to office supply retailers
What do marketing channels do ?

Demand Side Factors: Sorting Out: breaking down heterogeneous supplies For example a fruit-seller sorting out oranges by size and grade. Accumulation: Similar stocks from a number of sources. Wholesalers accumulate for retailers and retailers accumulate for end-consumers. Allocation: Breaking the bulk. Lorry-loads to case lots etc. Assorting: Assortment of products for resale in association with each other.
What do marketing channels do on the Supply Side

Supply Side Factors: Routinization of Transactions: Ordering, Valuating, Paying for goods and services. Electronic Data Interchange (EDI): Standardizing the management of business documents. Continuous Replenishment: Neither understocked / Nor overstocked. Shippers would typically increase frequency but decrease in size per shipment.
Marketing channels impact number of contacts

Reduction in Number of contacts: Imagine a small village of 20 families Their number of transactions. They draw all their supplies from one Shop: Grocery Hardware Milk Vegetables Medicine Telephony Number of contacts involve cost. And in this example the next-door neighbour store is the most cost-effective.
Number of Contacts
Manufacturer Manufacturer Manufacturer Manufacturer
Ret.1
Ret.2
Ret.3
Ret.4
Ret.5
Ret.6
Ret.7 Ret.8 Ret.9 Ret.10
Why marketing channels are there ?

Manufacturer Manufacturer Manufacturer Manufacturer
Number of Contacts
Reduction in Number of contacts: Contact costs may vary by the structure you choose with or without intermediaries. Four Manufacturers reaching ten retailers directly. Four manufacturers reaching ten retailers through one wholesalers Four manufacturers reaching ten retailers through two wholesalers 40 Contact lines 14 Contact lines
W/S 1 Ret.1 Ret.2 Ret.3 Ret.4 Ret.5 Ret.6
W/S 2 Ret.7 Ret.8 Ret.9 Ret.10
28 Contact lines
Value Network view

Kotler: Establish channels for different target markets and aim for efficiency, control and adaptability. Companies are increasingly taking a value network view Supply Chan Management. But even Supply Chain is a make-and-sell view. Because it starts from raw materials and suppliers suppliers and so on.. A better term for distribution would be demand chain and therefore a sense-and-respond. Even this view is challenged with the impact of technology.
Objectives of Channels of Distribution

1.
To ensure availability of products at the point of sale. To build channel members loyalty To stimulate channel member to put greater selling efforts To develop managerial efficiency in channel organisation To have an efficient and effective distribution system.
2.
3.
4.
5.
Role of Channels
Major Focus of channel of distribution is DELIVERY. Issues of Availability How much available ? Role of Intermediaries For efficiency of the process Arrangement of routes of transactions Searching the customer Sorting the customer base
Who are marketing intermediaries

Middlemen: Just about anybody acting as an intermediary between the producer and customer Agents or Broker: Intermediaries with legal authority to market goods and services Agents generally work in continuity Brokers may be engaged for a particular deal Sometimes agents and brokers tend to work for buyer rather than seller should you allow it ? Real Estate brokers have to satisfy both. Wholesaler Organisations that buy from producers and sell to retailers. Bulk Buyers Put in effort and investment and expect a return on their investment.
Marketing Intermediaries
Retailer: Last link to the consumer Sell directly to the final consumer Either purchase from wholesaler or from the direct channel Distributor: General term used for various intermediaries Perform several functions inventory management, personal selling, financing. Sometimes wholesalers act as distributors. Dealer: Another general term that can apply to just about any intermediary. Sometime the same type of intermediary acts as a distributor Legal restrictions in the past MRTP.
Wholesaler as a marketing intermediary

Establishments that sell to retailers or other merchants but do not sell insignificant amounts. Merchant Wholesalers Independently owned and separate from suppliers. Take ownership and associated risks. Agent Wholesalers Tied up with main wholesaler-distributor of the Company. Brokers / Commission Merchants / Selling Agents / Commercial auction companies. Manufacturers sales branches and offices Stockists, Stock-Carrying Points.
Different roles of a wholesaler

Full Function Service Wholesalers: Distributor Jobber They perform all the functions in a given territory for the interest of the principal. Limited Function Wholesalers: Cash and carry Drop Shippers Truck Wholesalers Mobile for convenience of the retailer.
Role of a retailer
The final connection with the customer / consumer End-user contact. Adds value through time, space which also forms part of the price that the end-user is paying for. Collect products and assort as per consumer preferences. Provides information Marks prices and pay for gods Concludes transaction with the final consumer Direct coverage relates to reaching the retailers and create a tradepartnership with them to promote your business.
Other marketing intermediaries

Value-added resellers (VARs) Intermediaries who buy the basic product, add value and then sell it Some do their own labels. Merchants: Assume ownership and may speculate. Facilitating Agents (C&F) Transportation and storage Covering the risk (insurance) Financial services / Invoicing etc.
Types of Channels
1.
Direct-marketing channel (or Zero Level) Indirect Marketing Channel: One Level: Producer..RetailerConsumer (White goods) Two Level: Producer.Distributor.Retailer.Consumer Three Level: ProducerDistributorWholesalerRetailerConsumer.
2.
Ownership change through the process

Producer
Channel Selection Criteria

Since the controls change, it is a complicated process. The following elements are examined: Market Factors: Customer Preference (Where do they buy ?) Organizational Customers (Institutional Buyers) Geography (Where is he located ?) Competitive Pressures (Replacing your product with theirs) Product Factors: Life Cycle Complexity Value Size & Weight etc. Personal Factors: Financial stability future requirements Succession Managerial capabilities.
Physical Possession / Ownership Promotion Negotiation Financing Risking Ordering Payment
W/S Ret. Consumer
Outsourcing: Services After Sales Finance by Cars and Real Estate
Manufacturing Strategies
Maufacturing strategies are to be integrated with distribution channels
1.
Changing channel dynamics

Growth of Vertical Marketing Systems:
2.
Flexible Responsiveness of production to consumer demands Build capabilities to reduce or increase production Customization Focused Lowest possible per unit cost Fail-safe quality and leading edge technology
A producer, distributor and retailer acting as a unified system. Franchising Purpose being to have greater controls Disallow channel partners to use their own standards Major forms of VMS: Corporate VMS Successive stages of production and distribution under single ownership Toyota wanting stakes in key suppliers Administered VMS Control on successive stages of production and distribution but using power of one of the parties. Idea is to seek distributors who can seek strong support from their retailers.
Each of the strategies may be differently suitable for varying products. Customer today is looking for quality and speed Critical for manufacturers to have their manufacturing policy marry with the channel selection
Growth of Multichannel Marketing Systems

A shift from single-market and single-channel Proliferation of customer segments and channel possibilities Multi-channel helps in Increased market coverage Lower cost More customized selling Companies also add channels where existing channels cannot reach e.g. selling by phone (impact of technology) Companies may also add a channel whose features fit with the customer requirements e.g. retail malls and watch show-rooms, banking and insurance counters. Multichannel gives rise to Conflict.
Conflicts can occur anywhere

A product development team having strong-willed people may make little progress. Salespeople promise delivery dates that production cannot match. Brand Managers trying to push their respective brands through relationships with trade marketing and shipping departments. People dislike each other. Career-centered people lobby politically against each other and try to hurt each others achievements.
What is a conflict ?
Conflict refers to antagonistic interaction in which one party attempts to thwart the intentions or goals of another. Causes: Scarce resources Support need of channel partners. Jurisdictional Ambiguities Territories and boundaries. Communication Breakdown Poor communication leads to misunderstanding and mistrust. Personality Clashes Do not see eye-to-eye. Power and Status Differences Low prestige individuals.
Causes of Channel Conflict

Inherent vices of Buyer and Seller Goal Incompatibility: Manufacturer may want lower pricing and higher market-share. On the other hand the dealer may prefer high margins for short-run profitability Unclear roles and rights: IBM selling to institutional buyers, large customers, bulk off-take discounts. Differences in perception: Optimistic vs. Pessimistic view of the economy and social developments
Causes of Channel Conflict at IBM

1.
Types of Conflict & Competition

Vertical Channel Conflict: Conflict of General Motors with dealers on policies of service, pricing and advertising. Conflict of Coca Cola with its bottlers who may wish to bottle other products. Horizontal Channel Conflict: Aggressive pricing of one dealer and its impact on adjoining territories Wholesale markets in Sadar Bazaar, Khari Boali and Naya Baans thrive by exploiting company dealers. One Pizza-Hut franchisee complaining about the other on ingredient quality and therefore overall image.
Conflict between the national account manager and field sales force. National account customers located in salespersons territory. Conflict between field sales force and telemarketers Telemarketers engaged in expanding the market through smaller customers. Conflict between field sales force and the dealers Dealers adding value with additional customized requirements which salespersons could not do.
2.
3.
Types of Conflict & Competition

Multi Channel Conflict: When clothing manufacturers open their own stores. When Goodyear decided to sell its tyres through Wal-Mart Brick and mortar companies adding on-line e-commerce channel. If you do not do it, someone else will do it online business may run to competitors. Look at the size of Amazon, E*Trade, Dell & Direct Line.
Challenge for Sales Managers

Intermediaries + Online.
Three Possible Strategies:
1.
Offer different brands or products on the internet. Offer the off-line partners higher commission to cushion impact on their sales. Take orders on the website but have them delivered through retailers.
2.
3.
Styles to Handle Conflict

You can be either assertive or cooperative. However effective team members vary their style of handling conflict to fit a specific situation. 1. The Competing Style: Assertiveness to get ones own way; this can be used when quick and decisive action is vital. 2. The Avoiding Style: Neither assertive nor cooperative. This can be resorted to when the issue is trivial. 3. The Compromising Style: Moderate amount of both assertiveness and cooperativeness. When goals on both sides are equally important. Time pressures lead to compromises. 4. The Accommodating Style: When maintaining harmony is important. 5. The Collaborating Style: Bargaining and Negotiation to reach a win-win situation.
Managing Channel Conflict

Certain channel conflict can be constructive but too much conflict can be dysfunctional. Goals Incompatibility Differences in goals. - Come to an agreement on the fundamental goal - Often it happens when there is an outside threat (develop a common goal, especially when a new channel emerges and eats into traditional channels Situation: Levis selling through specialized stores decides to add their range through other departmental stores
Information sharing at a very early stage.. Prepare specialized stores well in advance. Convince them that the initiative is to gain market share from competition Convince them that it is in their overall interest.

There can be a conflict between Maruti Sales Executive and Competent Motors Sales Executive. In terms of dispatch of requisite models Accessories Zero mileage How do you resolve this ? Exchange Programme is one of the ways.. The Maruti executive may be deputed at Competent Motors for three months to appreciate the customer issues from the perspective of the Competent Motor executive.

There can be channel conflicts among competitors. On practices in the market. The war-fare in the market place. Bribing customers on displays can be endless. You increase the incentive, the competitor increases and the game goes on. How do you resolve this ? Cooptation: This can be achieved at business chamber level and industry association levels. CII, FICCI, ASCI etc.

Sometimes, the conflict can become chronic. Where all your efforts with regard to cooptation and dialogue fail. What is the next step: 1. Diplomacy: Where each side can send one representative to meet and discuss issues across the table. There can be a series of meeting and common ground established. 2. Arbitration: Neutral Third party Concept of Ombudsman Two nominated arbitrators and one neutral industry expert.
Motivational Tools
1. Reward: If A possesses some resource which B wishes to obtain. Then B can conform to As wishes. Specific rewards to channel members could include wider margins, granting of exclusive territories and various promotional allowances. 2. Coercion: Coercion amounts to negative sanctions or punishment including reductions in margins, withdrawal of reward and slowing down of shipments.
Motivational Tools
3. Expertise: If A has expert knowledge, it tends to share some and keep information to be used as a level to achieve cooperation. Ability to acquire information by a powerful partner can be used and your pound of flesh extracted by sharing such information. 4. Identification: Given equal returns, players decide to identify one party for dealership and leave the other by minimising effort and supplies. vital
Key Learnings
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In the previous session..
Sales Management
Territory Management
In this session..
We shall move on to Sales Territories. SWOT Analysis for Designing Territories. Factors affecting Territory Design. Criteria for Territory Planning. Specific Techniques for Territory Planning. Benefits of Territory Planning
Why establish Sales Territories ?
Matching Sales effort with sales opportunities Lend direction to the planning and control of sales operation.
Meaning of Trade Marketing

A more professional approach to Sales & Distribution. Trade Marketing is.. Adapting Products Logistics Brand Marketing Trade Channels and Strategic Customers
Managing the Sales Effort

Managing Sales effort involves analysis:
Analysis
Planning
Develop Sales Plans
Implementing
Carry Out the Plans
Controlling
Measure Results Corrective Action
To the needs of
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SWOT Analysis for Designing Territory

Utilizes internal and external information
Internal (Strengths and Weaknesses)
Financial performance & resources, human resources, production facilities and capacity, market share, customer perceptions, product quality, product availability, and organizational communication
Making SWOT Productive for Territory Management

Examine Issues from the Customers Perspective
Customer focus is critical, and really helps to identify key issues Avoid talking to ourselves What are our customer perceptions and what is important to them?
External (Opportunities and Threats)

Market (customers and competition), economic conditions, social trends, technology, political/legal
Matching Strengths with Opportunities

Basis of the Working Plan: Identify strengths compatible with opportunities Part of the Working Plan: Convert Weaknesses to Strengths Convert Threats to Opportunities
The S.W.O.T. Matrix: Identifying Actions to Take

Strengths Opportunities
Weaknesses
Minimize/ Avoid
Convert
Threats
Minimize/ Avoid
The S.W.O.T. Matrix: Identifying Actions to Take

Strengths Match
Convert Convert
Designing a Territory- Competitor Questions

1. 2. 3. 4. 5. Who are our competitors? What is their strategy? Should we compete? If so, in what markets? How?
Opportunities
Weaknesses
Minimize/ Avoid
Threats
Minimize/ Avoid
Convert
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Designing a territory - Customer Questions

1. 2. 3. 4. 5. 6. 7.
Understanding Territory -What is a Territory

Represents a group of customers Accountability units across hierarchy Idea is to have a code / a name / a number to identify the group of customers together Essentially defining a territory based on Geography Channel of distribution Industry Sales potential Product Use Work Load of personnel Buying practices Arbitrarily / Rationally Central theme of defining territory remains better coverage and more productive coverage.
Who are our actual and potential customers? Why do they buy our product? Why do non-customers not buy our products? Where do our customers buy our products? How do they buy it? When do they buy it? What do they do with our product?
How do you determine a unit

Territorial Planning States, Areas,Towns, Villages, Tehsils etc. Geographical Units are preferred because you can access statistical data from credible agencies. Easier to monitor and modify if required A More Holistic Approach However a more holistic approach can be more productive it requires an effort and in-depth planning Sales Potential Buying practices Sales Personnel skills Frequency of Calls Work-load and a combination of factors can be considered.
Developing Territories
Territories can be formed according to:
1. 2. 3. 4. 5. 6. 7. 8. 9.
Geographic Location Industry Product Use Method of Buying Channels of Distribution Sales Potential Work-load Method Arbitrarily Rational Basis
Factors of sales volume of a terittory

1. 2. 3. 4. 5.
Factors effecting size of the territory
Size Market Potential Number of customers accounts Firms experience Market share in the territory
1. 2. 3.
Number of customers and prospects in an area Call frequency on existing customers Number of calls that the sales person makes in a day
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Basic control Unit for Territory
Objectives and Criteria for Territory Planning

It affects sales force morale and performance Need to work optimum number of territories Equalization of territory potential and geographic alignment / realignment Route Planning of sales force Straight-Line or Hub and Spoke, Circle, Triangle and so on..
Village / Tehsils / Cities / Trading areas etc. Essentially, you are looking at productivity Sales potential of each control unit Focus to maximize return on effort and investments Combining Territories / Double-Hatter arrangements
Territory Management Retail Census

Trade Coverage Fish where the fish is Classification of Outlets Types, Strategic, Monitoring Classification of Markets Strategic, Important and Development Categorization of Markets MS v SOV Population Data base approach Coverage Norms & Frequency Norms Span of Control A specific tool to plan execution for both coverage and visibility Gives direction by establishing strategic customers and key accounts Enables merchandising to stimulate sell-out Focus on resource allocation.
Distribution Guidelines
A structured framework for infrastructure and visibility planning process. Clearly define objective of distribution i.e. coverage numbers and in market visibility
Distribution Guidelines
Classification of Markets Strategic markets (SM) -Markets contributing 80% of our volume in a given Cluster/circle Important Markets(IM) - Markets contributing remaining 20% volume Development Markets(DM)New Geographies
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Clarity of Task
Strategic Markets Important Markets 80 % of Business Be the Preferred Supplier 20 % of Business Grow Business to shift it to Strategic Market status New Business Switches from Competition
Territory Planning Pop-strata

Regroup Markets - Basis Population Category I Population above 10 Lacs Category II Population 5 to 10 Lacs Category III Population 1 to 5 Lacs Category IV Population 0.50 to 1 Lac Category V Population 0.10 to 0.50 Lac Category VI Population less than 0.10 Lac
Development Markets
Two definitions of Markets

1.
Direct Coverage Norms

Strategic Markets Town 80 % Important Markets 65 % Devlpment Markets 50 %
Classification : Categorisation:
2.
Strategic / Important / Development Population Database
Based on these definitions, you can provide Coverage Norms and Frequency Norms
Village
60 %
45 %
40 %
Frequency of Visit - Norms

Strategic Markets Pop Above 10 Lacs Pop 5 10 L Pop 1 to 5 L Pop 0.50 to 1 L Pop 0.10 to 0.50 L Pop Less than 0.10L Daily Daily Daily Thrice/wk Thrice Once Import. Markets Daily Daily Daily Twice/wk Twice Once Devlpm. Markets Alternat Alternat Alternat Thrice Thrice Once
Resource Allocation to meet norms

Dlr Pop Above 10 Lacs 5 10 L 1 to 5 L 0.50 to 1 L 0.10 to 0.50 L Less than 0.10L Y Y Y Y Y Y Y Y Y Y SCP STK 2W Y Y Y Y Y 3W Van Y Y Y Y Y Y Y
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Resource Allocation
Strategic Markets Outlets/ Salesman 70 Imp. Markets 100-120 Devlpmnt. Markets 140
Benefits of Territory Coverage

1. 2. 3. 4. 5. 6.
Better Planning Proper coverage of potential markets Efficient call patterns Better customer service Choosing appropriate salesmen for specific accounts Some systems which are based on purely relationship may follow planning selectively LIC, Mutual Funds and stocks
Salesmen/S 6 upervisor
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Sales Management
In the last session..

Understanding of Sales Territories. SWOT Analysis for Designing Territories. Factors affecting Territory Design. Criteria for Territory Planning. Specific Techniques for Territory Planning. Benefits of Territory Planning
Minimizing Sales Costs
In this session..
Managing sales is managing costs. Key responsibility of sales managers involve costs. How costs determine distribution models. Distinguish selling and distribution costs. Analysis of distribution costs. Productivity checks.
Key Decisions in Sales Management & Costs

Competencies of Sales People Optimal size of sales force workload / costs Territory Management Recruitment & Training Resource Allocation Performance Appraisal / Measurables Feedback Speed of response Managing Channel relationships Internal Customers
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Responsibility of Sales Manager & Costs
Cost a strategic question in any Distribution System

Key Task: How do you reach your end consumers ?
Profit Centre Heads Execution Process to achieve targets and profits Customer relationships for long-term growth
Strategic Questions:
1. 2. 3. 4.
Given the value proposition, who are the end consumers and therefore what are the distribution objectives ? What channel structure will achieve these distribution objectives ? Optimal use of network Lowest cost. What processes and organisational structure will sustain performance.
Following the HLL Model

Distribution-led demand creation. Old Economy paradigm Reach & Availability. 1 Million retail points. 7500 distributors. Basket of products at every price-point. Every income and geographical segment. Other companies followed the leader. But what it meant for other FMCGs (essentially MNCs) ? A Hit on the bottomline !
Outcome of following HLL Model:

While HLL survived on size and variety of products / brands, others realized: Traditional Distribution system operates on the lines of a command economy i.e. 1. Determine supply target Number of retailers 2. Push stocks whichever way to reach consumers. This carried on for some time. Revamp: No more support from deep-pockets of MNCs for thin-margin operations. Pressure to shore up bottomlines rather than working on topline alone. Remove excess flab birth of Power Brands
P&Gs Golden Eye

1. 2. 3. 4. 5. 6. 7. 8. 9.
P&Gs Golden Eye

1. 2. 3.
Company focuses on Class A & B towns. Gets out of smaller population clusters. Except Vicks Action 500 or certain detergent sachets, P&G would not have much of distribution presence in rural areas. Reduces number of price points and pack sizes. Reduced manpower. Automation. Use of wholesale as a channel in territories that are not directly covered. P&G touts ECR (Efficient Consumer Response Model) ECR Maximize consumer satisfaction by optimising the supply chain.
4. 5. 6. 7. 8. 9.
Company focuses on Class A & B towns. Gets out of smaller population clusters. Except Vicks Action 500 or certain detergent sachets, P&G would not have much of distribution presence in rural areas. Reduces number of price points and pack sizes. Reduced manpower. Automation. Use of wholesale as a channel in territories that are not directly covered. P&G touts ECR (Efficient Consumer Response Model) ECR Maximize consumer satisfaction by optimising the supply chain.
What is happening here ? You fish where the fish is ? MaximizationOptimality
What is happening here ? You fish where the fish is ? MaximizationOptimality
An outcome of Sales analysis
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Sales Analysis
Why do sales analysis A detailed study of sales volumes performance to detect strengths and weaknesses. It has to be an in-depth study summaries do not reveal. Study of sales volume performance by towns and by villages Sales volumes by dealers and stock-carrying points. Sales performance by sales personnel Sales performance by product lines Objective Strong and weak territories. High volume and low volume products. Type of customers providing satisfactory results Imperative Allocate resources sales effort.
Basic Sales Report Format

S.No Name of Retailer / Customer Brand A Qty Brand B Qty Brand C Qty Brand D Qty Value (Rs.)
Total
Quarterly Sales Analysis Oct./Dec. Period Region / Circle / Branch / All India
Brand Sales/MS LY Sales/MS SPLY O/D Oct. Sales / MS Nov. Sales / MS Dec. Sales / MS Avg Sales / MS
Sales Analysis Oct./Dec. Period By Channels

Brand Sales LY Sales SPLY O/D Oct. Nov. Dec. Avg.
A B C D
100 120 90 50
110 123 80 40
120 100 100 50
100 120 110 50
90
103
W/S Ret.
100 200 50 350
110 90 60 40
90 40
90 40
90 40
260 270 280 290 280 430 400 410 420 410
120 113 120 110 50 50
Counter
Total
Sales Analysis by Regions

Region North West East South Total Target 25 50 120 80 275 Actual 28 55 118 75 276 Variance % of Target +/+ 12 112 + 10 -2 -6 + 110 98 93 100
Sales Analysis by Sales Person

ASM Ravi Avinash Ankur Abhijit Region Average Target 75 25 85 40 225 Actual 79 20 95 44 238 Variance % of Target +/+5 105 - 20 + 12 + 10 +6 80 112 110 106
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Analysis Setting Distribution Objectives

Distribution Objectives are normally spelt out by the number of outlets to be covered. Understandably distribution objectives are directly related to end consumer requirements.
1.
Anderson Consulting Group

Distribution Objective Channel Design Intermediate Management Policies & Procedures Network Design Materials Management Channel Management IT
Strategy
How many and what kind of outlets do I need ? Am I catering to a given target audience and their buyer behaviour Do my distribution objectives match the overall marketing objectives.
Structure
Warehouse & Transport Facilities & Equipment
2.
Process
3.
Achieving objectives at the lowest cost

Distribution Processes
Inventory
An optimal channel design

1.
Setting / Achieving Controlling Distribution Objectives Distribution Costs

Setting
alternatives.
Consistently
Supply
Management Chain
Setting
lower inventories with changing demand.
What activities and functions need to be performed redistribution, stocking, collections etc.. Which channel intermediaries can perform these functions C&F, Distributors, Wholesales or a combination. What are the service level requirements that channel intermediaries require from an organisation credits, inventory levels, infrastructure, lead times, receipt of goods etc. What are the service levels that an organisation will require number of outlets covered, frequency of coverage etc.
2.
Demand
Forecasting based on trend

Monitoring
objectives in line with demand potential. mix of direct coverage and reach.
Lower
inventories Lower trade spends.

Controlling
3.
of trade spends
Right
trade
4.
spends & distribution expenses.
Developing physical network strategy

1.
Logistic Needs
Logistics is related to all the activities related to distribution of goods. What will be required to move goods ? Land for smooth conduct of operations. Water, Energy, Storage spaces, stocking systems. Transport equipments trucks, trolleys etc. Communications Telephones, Telexes, Computers etc. Manpower Managerial, Supervisory, Workmen. Pollution Control, Temperature controls, Humidity controls. A Company needs to review logistics and spend considerable time in planning and coordinating of this activity.
How many facilities manufacturing units / depots / CFAs are needed Which customer regions and which product lines should be served from each facility How much inventory should be maintained in each facility
2.
3.
Contemporary terminology: Supply Chain Management It involves ongoing review of Strategy, Structure, Processes in line with the distribution objectives.
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Definitions of Physical Distribution

The term Physical Distribution Management is employed in manufacturing and commerce to describe the broad range of activities concerned with the efficient movement of finished products from the end of production line to the consumer and in some cases, includes the movement of raw materials from the sources of supply to the beginning of the production line. Activities: 1. Freight 2. Warehousing 3. Material Handling 4. Protective Packing 5. Inventory Control 6. Selection of site for various activities 7. Marketing 8. Forecasting
The task of distribution
The task of distribution is concerned with the exchange process and gears itself to matching the demand and supply within a given periphery. Challenge: Demand-side customization and Supply-side Commoditization. Achieve this at an optimal cost.
Selling & Distribution Costs

Selling & Distribution costs broadly represent marketing cost. Selling Costs seek to create and stimulate demand.. Distribution costs are towards reaching the customer
Why to analyse Distribution Costs

To determine costs of sales of different products review profitability by products or by brands. In turn fix-up optimum sales level.
Selling Costs Secure orders Retain Customers
Distribution Costs Transportation Insurance, Operating Expenses. Administrative costs
To control costs of effort 80:20 rule and fish where the fish is Help in guiding marketing policy / strategy both for long-term and short-term
Allocation of Distribution Costs

Distribution Costs are substantial. Distribution Costs are common and difficult to apportion. Should it be apportioned on the basis of share ? Should it be equally split ? Sharing with other FMCG products: What should be the basis Negotiation. Win:Win to be worked out
Allocation of Distribution Costs

Distribution Costs are substantial. Distribution Costs are common and difficult to apportion. Should it be apportioned on the basis of share ? Should it be equally split ? Sharing with other FMCG products: What should be the basis Negotiation. Win:Win to be worked out
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Analysis of Distribution Costs

The basis of analysis of distribution costs: Desires of Management What is the priority ? What is the overall strategy ? If profit is to be maximised direct sales effort to most profitable products. Various ways of analysis: 1. Product or product lines 2. Individual customers or groups of customers 3. Channels of distribution 4. Salesmen 5. Geographical territories
Freight Rate Fixation

There are two types of transport costs 1. Standing Costs 2. Operating Costs Standing Cost Cost of Vehicle Capital cost of garage, repair shops etc. Operating Cost Repairs and Maintenace Depreciation Taxes Insurance License Fee Administrative costs
What influences freight rates

Nature of commodity Demand and supply Competitive conditions in the transport industry State regulations Organisations have to make a choice:
1. 2.
Inventory Costs
Three types of Inventory
1.
Ordering Costs Cost of stationery, postage, telegrams etc in placing an order. Cost of Materials Purchase Price + Transport + Insurance + Taxes. Carrying Costs Space Cost + Storage Cost + Insurance + Theft / Pilferages + Wastages and Loss etc.
2.
3.
Option of a negotiated yearly contract rate Operate on market prices on transaction to transaction basis. Like personal travel, return-trips have to be determined certain locations will require two-way transport costs.
One of the key responsibilities of Sales Managers is to control inventory costs. Turnover 100 Crores Monthly TO 8 Crores Cost of 7 days stocks 2 Crores Interest @ 12 % Rs. 24 Lacs Opportunity Cost @ 25 % Rs. 50 Lacs Per day Cost Rs 14000/-
Control System for Efficiency

Logistics efficiencies are critical as huge costs can be saved. Therefore efficiency at every level to be improved These are are interdependent and inter-related.. Operating Efficiency e.g. Fuel consumptions. Financial Efficiency operating profit to gross earnings Service Level Efficiency number of direct service vs total service Marketing Efficiency market share and rate of growth Personnel Efficiency People performance Organisational Efficiency Adherence to schedule
Output of logistic system

Inputs
1.
Process
1.
Outputs
1.
2.
3.
4.
Physical resources land, facilities etc. Human Resources Financial Resources Information Resources
2.
3.
Management Actions. Planning, Execution and control. Inventory / Order processing/ Transportation / Packaging etc.
2.
Consumer satisfaction. Competitive advantage
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Productivity Aspects
Right Delivery Ratio = No. of Deliveries on time Total No. of deliveries/year Tons carried per route Tons capacity per route No. of accidents / year No. of trips operated / year No. of consignments booked/year No. of consignments planned/year
Productivity Aspects
Vehicle Utilisation Ratio = Vehicle Kilometers actually run/day Vehicle Kilometers planned per day No. of consignments damaged in traisit Total number of consignments Total Operating Expenses Total Earnings Net Profit Total Earnings No. of prompt deliveries/year Total No. of deliveries/year
Route Potential Ratio
Breakage Ratio
Accidents Ratio
Operating Expenses Ratio Net Profit Ratio
Service Ratio
Promptness Ratio
Summary
Distribution costs need to be examined in each area of distribution: Transportation Warehousing
Sales Management
Personal Selling
Inventory Material Handling Information Technology Distribution is a source of cost admittedly a necessary cost but a cost nevertheless.
Personal Selling
Knowing the customer

Difficult to generalise but. The Positive Customer: Constructive & Open Reasonable and concerned about the outcome. The Negative Customer: Lacks Creativity Does not like taking risks Cannot see any advantage in a new idea.
Personal selling is all about dealing with a customer. The Customer is the crucial person in Trade Marketing. The more effectively you work with the customer the greater will be your success.
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Knowing the customer

Know-Everything Customer: Think they know everything about everything Opinionated Bad Listeners Think they know more about your brands than you do.
Personal Selling
Personal Selling is all about Oral Presentation for the purpose of making a sale. Therefore we need to customize our presentation to the specific type of customer. It is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefit thereby increasing their total satisfaction, i.e. delight. A part of the communication mix Advertising, Sales Promotion, Public Relations, Direct Mail, Exhibitions.
Personal Selling involves communication

Communication is a way of exchanging conveying ideas,thoughts, feelings, messages by speech, writing or sign. The Process of Communication Clarify the message that you want to give. Decide on the best method of saying it (Encode). Communicate the message to the other party (Transmit) The other party listens to the message (Receive) The other party interprets the message (Decode)
How do you prepare yourself.

Suspend judgment. Write down as many ideas as you can. Build on ideas of your peers.
Incubate the Idea
Get Illuminated
Apply The Idea
Sales person should be creative

It is an inter-personal process involving individual identities. Therefore, there cannot be a standard solution. Barriers to Creative Thinking: Routine: Comfort in routine or It is time for lunch. Educational System: Chapterisation or The right answer. Dismissive attitude: I cant climb this hill Evaluating too quickly. Rules: Big advantage is often linked to challenging the rules. Specialisation: It is not my area.
The need is to communicate effectively

Effective Communication Increases our understanding of the customers needs and wants. Increases the customers understanding of our product. Provides a process for productive information about our products and merchandising. It is two-way communication slower but more accurate.
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Ways to improve communication

Give an overview at the beginning. Simple Language. Logical structure Perspective of the customer. Encourage eye contact establishes rapport. Encourage feedback Show concern for feedback. Seek clarification Understand the feedback. Check commitment and agreement to proceed further. Summarise often. Do not talk too fast.
Difference between Salesmanship & Personal Selling

Salesmanship Seller-initiated Providing information Motivates for favourable decisions Two-way communication Right Product to the Right Customer Stimulate interest Developing brand preference
Personal Selling
Personal Selling
Personal Selling is about Inter-personal skills: It involves personal confrontation Therefore interactive Impulsive.. Chemistry-match. Opportunity to cultivate relationship. Buyer has to respond reciprocity.
Personal Selling
Advantages Disadvantages
Can close sales High costs Feedback Chance of Negative rubCustomized presentation offs on imagery Lifetime value
Situations conducive to personal selling

Product High unit value / Introductory stage / Precision engineering products / No brand value Bus vendors. Marketing Small number of buyers Institutional Trading Sadar bazar transactions Consumer Behaviour High value decisions (Cars) / Answers to querries Last 30-seconds prompt.
Strategies of sales person

Communication alone achieves little only product information; So what ? Walk the talk Persuasive Understanding needs and finding solutions Negotiation Adjustments to commercial needs Client Profit-planning Working with the client to produce a specific product Business Management Multi-level contact where the frontline becomes an advisor.
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Changing Roles of a Salesman

Delivery Sales Person Behind the counter Direct-selling to retailer Missionary Medical Representative Creative Relate value that the product can add to customers needs New Business Selling Solutions
Changing Role of a Salesman

Consultative / Technical Capital goods where high-end knowledge is imperative. Commercial Non-technical like office stationary, equipment where price negotiation is the key to success Direct Sales Customer / consumer Door-to-Door
Personal Selling Process

What is a process: It is a naturally occurring or designed sequence of operations or events to produce an outcome Machine-like operation / Coordinated effort A sales process has to be People-dependent but not individual dependent Process brings about a disciplined approach to execution. Process does not mean auto mode Eye-to-detail and grass-root level awareness is critical Standards not a standard to carry out a selling process Gains of best-practice sharing and experience
Some Negative Stereotypes of a Sales Person

Talks too much Lies or Manipulates Doesnt know about the product Doesnt care about me (customer speak) Creates pressure Wastes time
What does the customer expect

Trusted Advisor Trust can be achieved through consistency Competence + Concern = Trust Therefore Industry knowledge Be generally aware. Consultative partner On personal matters Theme of Partnership Your and your trade partner want the same Exact right solution. No guessing to know what the customer wants Skillful questioning to uncover customer needs
Prospecting, Identifying & Qualifying

This is the planning part of the process I will take seven days to sharpen my saw to cut a tree in one day Prospecting is all about eliminating non-buyers Identification involves establishing sources of information: Tele-marketing / Referrals / Influencers / Cold-calling / Directories / Mailing Lists / Trade shows Qualifying the prospects M Money Ability to Pay A Authority Ability to take a decision N Need Needs the product or service
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Pre Approach and Call Planning

Dont eat your cake before it is baked Research the prospective customer Needs / Likes and Dislikes / Others involved in the decision-making process. Rani Mukherjee invited to all dinners hosted for Mrs and President Musharaff Call Planning Appointment leads to obligation Sequencing the presentation Customers priorities.
Pre Approach and Call Planning

Sales Person should get information like: Financial Position of the prospect Ability to pay Special Needs and problems Am I providing solutions Who is the decision-maker men behind decisions What is going to motivate the buyer Look at personal characteristics but remain Ethical
Call Planning
Call planning is a specific planning sequence 1. Define objective 2. Devise a selling strategy 3. Settle past disputes and collect payment
Mid-course correction
Slow down and check your process If successive calls are unproductive If you are not sure of the answer revert back and do not cook an answer If it looks you are loosing the deal / customer If competitors are beating you on price Exit early and cheaply
Presentation Approach and Demonstration

Categories of Presentations: Automated Techno-savvy is more competent is the general perception. Semi-Automated Combination of click and brick Memorised A prescribed standard Organised A structured approach - Attention to Interest to desire to action (AIDA) Unstructured Explore with the customer may require authority to take spot decisions. Go for the visual impact 50 % retention versus 10 % of spoken word
Presentation Approach and Demonstration

Buying signals Watch for the buying signals Is he examining the product ? Does he have questions about features / use /price etc. Mid-course changes for the desired outcome Buying Motives Fear of being left out Competitor naming Recognition for a wise decision Family/friends - societal approval Sense of pride
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Objective of a Presentation
Approach
It is the approach that makes or breaks a Presentation Four Basic approaches: 1. Introductory Approach 2. Product Approach 3. Consumer Benefit Approach 4. Referral Approach 5. Demonstration
Convince the Buyer 1. The need for the product exists 2. The product in question can satisfy the need 3. The prospect can afford to purchase the product
Handling of Objections
To avoid is the easiest things for the customers they look for real and imaginary problems to postpone the discussion. Decision-making requires thinking and no one wants to think comfort in routine Answer lies in knowing hidden needs and addressing them. Objections for price, quality, service and a mix of all these can be addressed by bench-marking with competition Institutional Selling especially engineering goods Empower the decision-maker / Make him the hero
Objections are opportunities
By expressing their concern, customer are giving you the opportunity to resolve whatever it is they do not understand or agree with. Objections should be welcomed.
How do you respond to objections
Different type of objections

Hidden Objections: Customers asking unrelated or unimportant questions may have hidden objections. They may not wish to reveal their real objections for fear of offending you or because they think it is none of your business. Stalling Objections: Are used when people want to postpone buying because they have hidden objections they require more information they are indecisive
Ensure that you listen carefully and fully understand the objection. Avoid unnecessarily contradicting / arguing with the customer. Seek answers through the use of questions. Avoid dishonest responses. Ensure you know the products.
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The sequence of Objection Management

To overcome: Anticipate them. Consider objections as opportunities. Be positive. Understand the objection.
Ways of dealing with objections

The Principle: Agree with the importance of the objection with the customer and seek first to understand and then be understood. The Technique: Rephrase as a question. Ask questions Deny directly Compensate Appeal to third party
Closing the sale

At the end of it..Time / Effort /Money already invested Generally buyer may wish to postpone may require more time to think check brief ? Ask for the order materialize the transaction Techniques Action facilitating of bank finance Gift or benefit Last minute additional discount to make it happen. Conditional close Defect to be removed before execution of the order.
Mutuality
For Customers Increasing sales Increasing inventory turnover. Improve store image. Attracting new customers. Increasing profit. For US as Marketers Increased sales Increases inventory turnover. Improve brand / Co. image. Attracts new customers. Increased profit.
Mutuality
Mutually Agreed Strategies Develop regular And strong personal Relationships at all levels Tailored Support Develop Cooperation And Trust Understanding A target customer Understanding customers Strategies & Motivations
Mutual Success
Road to achieve Mutuality: Channel-tailored support is the bridge from Mutual strategy to mutual success. Requires flexibility to take account of special requirements.
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Key Learnings
Locating a potential buyer Prospecting / Identifying / Qualifying Call Planning Objective of the call / Selling Strategy / Appointment Presentation Automated / Semi-automated / Unstructured Handling Objections Advantages vis--vis Competiton Closing the Sale Financial Assistance / Gift Close / Benefit close / Conditionalities
Sales Management
Practical Skills for Selling
Last Session
Locating a potential buyer Prospecting / Identifying / Qualifying Call Planning Objective of the call / Selling Strategy / Appointment Presentation Automated / Semi-automated / Unstructured Handling Objections Advantages vis--vis Competiton Closing the Sale Financial Assistance / Gift Close / Benefit close / Conditionalities Mutuality in business.
This Session
Practical Skills for Selling Who can take up a selling career Sales strenghts
What do we mean by Selling Sills

How can sales people contribute to achieving organisational goals. It is an important role and not everyone can represent the company. Two ways of selling Direct to the consumer Through intermediaries Different set of skills may be required for each way of selling.
Common Mistakes companies make

Persons background, education and experience determines a good fit. If that be so nurses can become medical representative and accountants may try selling financial products. The right Fit. ? Fit is not about what we know. Fit is about what we are. Fit is about our talents not our knowledge
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When Companies change

Mergers, Acquisitions or a new business line altogether. Such changes can have dramatic effect on sales missions. Direct-selling versus Intermediate-selling. Questions to ask: Are you in the right selling role ? Do you have the aptitude to sell the particular product line ? If the answer is NO, the best bet is find another company.
Sales Strengths
Sales strengths do not spring from education, training or experience. Best performers use recurring patterns to: 1. Build relationships 2. Have an impact on others 3. Discover and solve customer needs 4. Drive their individual performance by focusing on meaningful goals and rewards 5. Find the right structure in which to perform Understanding talents in these areas is the key to build sales strengths.
The best sales people

Adapt the job to suit their strengths They do not attempt to change their strenghts to fit the job. It is easier to tailor a suit to fit your body than to tailor your body to fit a suit.
Challenges of a selling job

Highly stressful Issues of self-esteem Rejection Falling down and getting up again There are two schools of thought Selling skills come naturally Ordinary people can be groomed to be good sales persons. If you are good and have the habit of succeeding, you will succeed anyway..
From Strengths to Fit

Excellence is a bridge that spans from understanding to application Now read this statement: At work I get to do what I do best everyday Answer: If Yes What is the intensity of your Yes How emphatic are you Equation is simple: Doing more of what you are best at can dramatically improve your performance.
Different sales positions

Sales positions are different from one another as one sport is from another. Selling pharmaceuticals is different from selling real estate. What people tend to do when not suitable for a job: Hard-work Perseverance It may lead to increasing levels of frustration leading to disappointment and not success.
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Essential skills for successful selling

No prescribed characteristics look at likes and dislikes of buyers: The Good
Honest Looses a sale graciously Admits mistakes Problem-solving Friendly / Professional Dependable / Adaptable Knows my business
Selling Skills
Management answer: Communication skills Listening skills Conflict management and resolution skills Negotiation skills Problem-solving skills
The Bad
No follow-up No appointments Starts with cricket Decries competition Poor listener Lousy presentations Poor product knowledge
The Ugly
Calls me dear or sweetheart (I am a female) Gets personal Lies Wines and dines Does not credit me Acts pushy Plays one company against another
Communication Skills
Exchange of ideas and information between two parties relationship management tool. Personal and Non-personal communication Personal communication is effective as it allows interactive changes Dress code Body movements Voice intonations Expressions of emotions like laughter and surprise. Watch-out for external noise-levels
Communication Skills
Managing Body Language: Personal appearance Posture the way you sit, stand and walk an individuals personality is revealed by his / her body movements. Gestures Movements to indicate. Noding of the head Facial expressions A smile, A frown or raising of eyebrows. A dead-wood expression? Eye contact a window to the soul Space distancing How close you are in your relationship.Shake hands / Hugs etc.
Listening Skills
The receiving end of communication Causes more problems than the sending end. It involves sensing, Interpreting evaluating Remembering Responding
Listening Skills
Listening is the communication skill we use the most. There is a difference between listening and hearing. Hearing is a physical process, Listening is a mental process.
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To improve your listening

You must first want to improve. Then work to pay attention. Give the speaker your undivided attention Physical distractions are easier to eliminate than mental distractions. Keeping an open mind results in a win -win situation Work on the accuracy of your filtering think Involve yourself mentally in what the speaker is saying. Work to remember concentrate.
The Ten Commandments of Listening

Stop talking Put talker at ease Show talker you want to listen (body language) Remove distractions Empathize with talker( get into speakers shoes) Be patient Hold your temper Go easy on argument and criticism
The Ten Commandments of Listening

Ask questions Take Notes; Decide on specific follow-up actions and specific follow up dates
Conflict Resolution
What is a conflict ? Antagonistic interaction in which one party attempts to thwart the intentions or goals of another. What are the causes of Conflict ? 1. Scarce resources Desire to achieve lead to seeking resources. 2. Jurisdictional Ambiguities job boundaries and responsibilities are unclear 3. Communication Breakdown - misunderstandings 4. Personality Clashes People do not see eye to eye. 5. Power and Status Differences Hierarchy and status 6. Goal Differences People pursuing conflicting goals.

Team members are either assertive or cooperative. However effective team members vary their style of handling conflict to fit a specific situation. 1. The Competing Style: Assertiveness to get ones own way; this can be used when quick and decisive action is vital. 2. The Avoiding Style: Neither assertive nor cooperative. This can be resorted to when the issue is trivial. 3. The Compromising Style: Moderate amount of both assertiveness and cooperativeness. When goals on both sides are equally important. Time pressures lead to compromises. 4. The Accommodating Style: When maintaining harmony is important. 5. The Collaborating Style: Bargaining and Negotiation to reach a win-win situation.
Methods of Conflict Resolution

Authors Nader & Todd:
Lumping Failure of one party to pursue Avoidance Relationship is called off Coercion Imposition of one party on the other Mediation Third party intervention Mediator has adequate authority. Conciliation Bring two parties together. Conciliator may not play an important role. Arbitration Parties consent and abide by arbitrator. Adjudication Legal process Negotiation Dialogue..
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Negotiation Skills
When someone else has what you want Readiness to bargain Negotiate for business to pay. Retailer: Leave your stocks and get cash when sold Salesman: Part payment as advance B School Entrepreneur: Survival money + profit sharing Profit-sharing with Consultants / ESOPs Inventing options for mutual gains BATNA Best alternative to a negotiated agreement.
Problem Solving Skills

Characteristics
Attitude Actions
Ineffective
Giving up early Fence sitter
Effective
Belief in solution Re-evaluates, Looks for creative solutions Checks and rechecks Breaks the problems into small bits and starts at a point.
Accuracy Solution Procedures
No checking Does not break the problem. Does not know where to start
Stephen Coveys seven Habits

1. 2. 3. 4. 5. 6. 7.
Sales Management
Be proactive choice option Begin with an end in mind Outcome forecast Put first things first - priority Think win-win there is always a possibility Seek first to understand, then to be understood Synergize Make the whole greater than the sum. Renewal Physical Exercises + Reading
Building Customer Engagement
Selling Technique
Only one selling technique works and that is Customer Relationship, CRM and therefore Customer Engagement. Kotler : The successful salesperson cares first for the customer, second for the products. Selling is all about customer engagement.
Building Customer Engagement

Questions: How many customers are satisfied with you and your company ? How many of those customers are engaged ? How do great people develop engaged customers ?
1.
2. 3.
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Customer satisfaction
Companies work towards customer satisfaction : 1. By providing best service 2. Higher margins 3. Fast-selling products 4. Caring relationships Question: Is that going to be enough ?
Customer Satisfaction
Gallups research demonstrates: Customer satisfaction is merely the foundation for a continuing relationship. Satisfaction therefore is an unreliable standard for gauging relationship. Customer satisfaction is simply the entry point for achieving a deeper foundation.
Customer Satisfaction
Companys most important asset is its customer base. Engaged customers are most valuable Expectations from Sales People: Not just generating sales But generating loyal engaged customers Because Engaged customers assure sustained profitable growth. Engaged customers help you sell to other accounts.
What leads to customer engagement ?

Is it products + marketing + services + follow-up. Yes, all of that and most importantly: How they feel about their interactions with sales people or company people. Interactions should lead to Customer becoming more confident Gaining a greater sense of you and your companys integrity Developing pride in doing business with you. Developing a passion for your products.
Customer Satisfaction & Growth

In the 1970s: Quality and Customer Satisfaction were the buzz words. US Car manufacturers were getting killed by the likes of Toyota and Honda Intense interest in TQM. In the 1990s Companies attained 80 % level of customer satisfaction. As customer satisfaction level reached 80 %, they became less valuable as a predictor of growth.
Success in Sales
Customer dissatisfaction is a surefire way of loosing business. But customer satisfaction is no guarantee for business. Because: You and your competitors will have close ratings. Therefore: Customer loyalty represents strength in customer relationship.
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What builds loyal customers

Gallups research on factors that cause customers to stop buying your products: Dissatisfaction with product performance Customers severe when basic expectations promise that brand communicates are not met, Freedom from defects is a minimum requirement and no assurance for repurchase.

Loyalty Components: 1. Likelihood to repurchase 2. Likelihood to recommend to others. Customer Response: 1. Products high on quality ratings found favour on repurchase. 2. Customers who felt strongly positive about sales representatives were as much as twelve times more likely to continue.

Loyal and engaged customers have an attachment that extends beyond a good deal: Attachment Customer engagement is not a function of economics. It is personal and emotional People play a very important role.
Customer Engagement
While Brands / Image / Reputation builds a Customer Base People build customer engagement. While Each rupee spent on branding adds to brand equity Each interaction by people adds to customer engagement. Therefore Customer engagement like brands leads to sustainable growth and enhanced profits.
How do great sales people create customer engagement

How tough it can be: Gallups research has shown that fully engaged customers has ranged around 6 to 8 percent to as high as 35 to 40 percent. compare this with 80 % Customer Satisfaction discussed earlier. Four dimensions that comprise customer engagement 1. Confidence 2. Integrity 3. Pride 4. Passion These are therefore building blocks of customer engagement.
Indicators of emotional connection

1. 2. 3. 4.
5. 6. 7. 8.
______ is a name I can always trust. ______ always delivers on what it promises. ______ always treats me fairly. If a problem arises, I can always count on ______ to reach a fair and satisfactory resolution. I feel proud to be a ______ customer. ______ treats me with respect. ______ is the perfect company for people like me. I cant imagin a world without ______.
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Notice the word Always

Building customer engagement is not a sometims thing. Trust has to be there all the time or there is no turst. The same is true of respect, confidence, fair treatment Everytime we are having an interaction with a customer, we are either building engagement or eroding it.
Customers engagement is different from friendship.

It is not simply a matter of liking the salesperson. Customer engagement relates to the company and its products and services and not only to the salesperson. Customers are different from friends and salespeople should not try to be too friendly. There is no saying The friend is always right. Customer engagement is different from friendship.
Building Blocks
Given that People are our most important asset as companies seek to differentiate themselves. TQM & reengineering have squeezed defects and costs. Technology has increased productivity and capacity. Now customer engagement is going to be the leading edge.
Dimensions of Customer Engagement

Confidence: Customers feel that the brand or company is trustworthy and that it keeps its promises. Software Salesperson: I never say that our software can do something unless I am positive that it can. If I am unsure, I check with our systems engineers and have them demonstrate that functionality to me. I wont sell it untill I see it work. Building Trust with another person: Highly individualistic process No simple formula but the first step in customer engagement.
1.

2.

Pride Customers feel good about the product or service and also feel that using the product reflects well on them. What kind of car do you drive ? / What wine do you drink ? Your answers to these questions will reflect the way you feel. How does the company treat me A Taj restaurant where you are a regular starts calling you by name What is he actually saying, Look what a smart choice I made. It is indeed inspirational like brands I drive a Lexus, I stayed at Taj Westend at Banglore when I last went there
3.
Integrity When customers feel that the company treats them fairly. Customers are fair in their expectations. Therefore customers seek fair treatment They want salespeople to take their side and that sales people work for them instead against them. How an organisation and its people react to the problems can be more effective developer of customer engagement than problem-free delivery.
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4.
Key Learnings
Sales is about people who are trustworthy, diligent, consultative and inspiring. Customer satisfaction + Emotional Bond = Customer Engagement. Customer Engagement leads to sustainable growth. Customer engagement is tied with your own engagement and degree of your fit. Using own talents at building relationships. Thinking about customers problems is key to customer engagement.
Passion: A strong relationship that exists between a company and a client when the latter views the former as irreplaceable. When you bring new ways to do business. When you innovate on your customers behalf instead of waiting for his request. Relent on Conflict of interest. Delivery at a time when it would mean for your warehouse to be open late till 10 p.m. If you do not do this, you are competing with the customer.
Last Session Customer Engagement
Sales Management
Personal Selling Objective MIS & Forecasting
Sales is about people who are trustworthy, diligent, consultative and inspiring. Customer satisfaction + Emotional Bond = Customer Engagement. Customer Engagement leads to sustainable growth. Customer engagement is tied with your own engagement and degree of your fit. Using own talents at building relationships. Thinking about customers problems is key to customer engagement.
This Session Information & Decision Making

Facilitating information flows critical for success MIS Forecasting
Sales Management Many Activities

Sales Managers have multifarious responsibilitiesTerritory, Channel, People, Communication, Research and feedback etc. They are incharge of the operations. Management of Information is a control mechanism to monitor profitability of the operation.
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Marketing Information Systems (MIS)

Kotler on MIS: MIS consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers Information users are Marketing Managers, Sals Managers, Brand Managers, internal and external partners. Assessment of needs developes information from internal company databases, marketing intelligence activities and marketing research. It also helps in analysis at various levels.
Developed MIS
Coca Cola Company knows: We put 3.2 cubes of ice in a glass See 69 of its commercials every year Prefer cans to pop out of vending machines at temperatures of 35 degrees Kimberley Clark which makes Kleenex knows: Average person blows his nose 256 times a year. Hoover knows We spend 35 minutes each week vacuuming, sucking up about 8 pounds of dust each year and using 6 bags to do so.
Sales Information
It is like the circulatory system in the human body. Circulatory system provides blood to the brain to operate the entire body system. Similarly sales information systems help organisation to run the sales set-up.
In todays context
IT and software applications expedite the process of information. Automation and Linkages to the remotest corners. Information is captured, collated and presented all in one stroke.
Decision Support System

Can pass data back and forth from various sections across hierarchies. e.g. A sales person makes a transaction. Information comes into a centralized data Senior Manager uses the system for data aggregation and territorial reports. This becomes the basis for decisions on forecast, reward systems, sales promotion etc.
Developing Information Systems

Focus On:
1. 2. 3. 4. 5. 6. 7. Regular decisions Information required to make decisions Information already available Information sought from time to time. Information that you want and are not getting. Periodicity of Information Daily/Weekly/Monthly.. Standard data analysis .MS , Variances etc.
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Internal Data
Opportunities for analysis and action:
Internal reports on orders, sales, prices, costs, inventory levels, receivables, payables and so on. Analysis helps spot opportunities for action Order to payment cycles speed of response
Wal-Mart
Knows the sale of each product by store and total each evening. Nightly orders to suppliers Shares sales data with P&G Expects P&G to replenish stocks in a timely manner. Has entrusted P&G with management of inventory. Internet and extranets today improve the speed, accuracy and efficiency of the delivery systems
Using computer technology

Salespeople use their laptops to dial into Companys world-wide data network. They can retrieve latest price lists, improvements, status reports on previous orders. When deals are struck during the day, laptops can record each order, double-check the order for errors and send it electronically to the place of supply for instant supplies.
Data base, data warehouse and data mining

Data bases to organize information:
By customers By products By territories..
Customer Database:
Not only demographics and psychographics and addresses but also Purchase recency Purchase frequency Competitive sales Payment patterns.. Companies warehouse data and statisticians are employed to mine the data to get fresh insights.
Effectiveness of the Operation

Seeking information Sales Analysis Cost Analysis A sales Audit
A Sales Audit
A systematic, critical and unbiased review and appraisal of the basic objectives and policies of the selling function and of the organization, methods, procedures and personnel employed to implement those policies and achieve those objectives.
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Objectives of Sales Audit

Each selling input should have clearly stated objectives. Inputs should be related to desired output e.g. a firm may have the objective of raising its market share from 15 to 20 % without reducing per unit profit.
Sales Audit of Policy

Both explicit and implicit policies are appraised for their consistency in achieving the selling objectives. e.g. Policy of no internal promotions but an internal guy can increase market share. Need to revise policy.
Audit of internal capabilities

Does the organization has sufficient resources in terms of staff, infrastructure and their required capabilities. What are the planning and control systems in place and compatible to the enormity of the task.
Sales Audit of Procedures & Personnel

Procedure: Steps in implementation to be logical, well designed. Procedure to establish responsibility by individuals. People evaluation process check
Sales Analysis is a source of information

Sales analysis is a detailed study of sales volume performance to detect strengths and weaknesses. Indepth sales analysis and not summary sales data.
Cost Analysis is a source of information

Cost analysis determine the relative profitability of particular aspects of sales operations. Which channel is more profitable Which territory is more profitable More informed decision-making.
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Marketing Intelligence critical information

Developments in the end market on day-to-day basis is critical on an ongoing basis. Collation to track trends and forecast competitive action. Other Sources: Magazines / Newspapers Trade Publications / News Clippings. Trade Shows. Customers / Panels by towns e.g. 20 members on a quarterly basis to know service standards. Common Suppliers with discretion. Competitors Intermediaries. Competitors Company Managers / Web-sites / Financial sites Stock-holders meetings / Govt. Agencies / Legal sites
How to improve quality of Marketing Intelligence

Compare with internal data bank Train people to smell and respond Sales force are important information gatherers. Motivate distributors and other network associates to use their strengths and influences and look for information to pass on.
Hiring of Specialists or Agencies

Mystery shoppers in hotels. Mystery-shopper check on services: In a car show-room: How long before a sales associate greeted you ? Was he eager to do business ? Knowledge on product ?
Market Information more important now

Rise of global marketing New emphasis on trade channels Trends towards non-price competition Blue Ocean strategy. Speed of response. Proactive approaches in the end market.
Sales Managers Multifarious activities and control responsibilities
Components of an Information System

Internal records Computer based decision support system Marketing Intelligence Sales Audits Market Research Sales managers have to make this information Basis of their decision making.
Sales Managers are pulled in different directions all the time. They need information to make decisions. There has to be a structure to provide this information on time and regularly.
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Companies work on Plans

Plans involve forecasting Sales forecasts are critical because these are used by 1. Finance: To raise funds / cash flows 2. Production: To establish capacity and output levels. 3. Purchasing: To acquire raw materials and right amount of supplies. 4. HRD: Hire men needed to accomplish plans.
Forecasting..A critical decision
Consequences of an Error
Excess inventory of raw materials Idle Cash Idle Manpower Idle Machines New Machines can be bought on the basis of forecasts. Accurate sales forecasts have a direct bearing on: Productivity 2. Bottomline
1.
Visioning.. Thinking Big..

COCA COLA When Roberto Goizueta became CEO of Coca Cola, many people thought that Cokes sales are maxed out. Goezueta reframed the view: Coca Cola amounted for less than 2 ounces of the 64 ounces of fluid that each of the worlds 4.4 billion people drank on an average everyday. The enemy is Coffee, Milk, Tea, Water. And Coca Cola ushered in a huge period of growth. Driving Market or Market-Driven
How do you measure demand

Two set of customers:
Available Market
Interest Those who have interest. Affordability Those who can pay for it. Access Is it possible to reach them. Govt Regulations Do the laws permit.
1. 1. 2.
Existing Market - Your Customers Potential Market - Customers who may be interested in your product Interest + Income + Access + Freedom to buy = Potential Customer or Potential Market.
2. 3. 4.
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Options for Marketers

1.
Types of Demand Measurement

Product Levels: All Sales Industry Sales Company Sales Product line sales Individual Product Variants. Space Level: World / India / Region / Branch / Area / Customers Time Level: Yearly / Quarterly / Monthly.
2.
3.
4.
Interest Reposition in the mind of the consumer. Income Target your market or price change. Access New distribution thrust or price change. Freedom to buy Work on qualifications with Government or redesign to meet safety norms.
Total Market Potential

Maximum sales that can be achieved. Number of customers likely to buy or made to buy (through promotions). Identification process as to who are likely to buy. Customer Base or Consumer Base
How to estimate Books

1. 2. 3. 4. 5.
Total Population 100 Lacs People who buy Books 10 Lacs. Average Book Buyer buys 3 Books Average price per Book Rs. 200/-. Total Market Potential 10 Lacsx3 booksx200 = Rs. 6000 Lacs
Arriving at the Customer Base for Books

1. 2.
Chain Ratio Method (Light Beer)

1.
3. 4.
5. 6.
Total Population of the Country 100 Crores Less Groups that would not buy books (Illiteate or Children) 70 Crores. Suspect Pool 30 Crores. Low Income Group (who do not read books) 9 Crores. Occupational / Skilled labour 3 crores Prospect Pool 6 crores x 3 books x Rs. 200 = Rs. 3600 crores.
2. 3. 4.
5. 6.
Population with personal discretionary income. Discretionary income spent on food. %age of amount spent on beverages %age of amount spent on alcoholic beverages. %age of amount spent on beer %age of amount spent on Light Beer
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Market Build-up (Preferred by industrial goods)

Requires a list of customers Suppose you are selling lathe machines Aim is to list all potential buyers. Who are they Workshops engaged in machining work. Obtain a directory of manufacturing establishments. No. of lathes per ten employees No. of lathes per rupee value turnover.
Multiple-factor index Method (Consumer Goods)

Here market potential is directly related to population size. Drug Example: If Patna has 2.8 % of Indias population a single factor would mean Patna to contribute 2.28 % of Drug Sales. But Single factor is not enough Sales are also influenced by per capita income
Multiple-factor index Method (Consumer Goods)
Industry Shares & Market Shares

Identifying competitors and estimating their sales: Sources: Industry Trade Association, Government Department of Industry Look at relative growth rates: Industry will grow at 10 % Airtel will grow at 12 % Tata will grow at 8% Hutch will grow at 12 % Reliance will grow at 8% Look at research reports of audit.
Therefore you assign a weight to each factor 1. Suppose Patna has 2 % of disposable income (weight assigned .5) 2. Suppose Patna has 1.96 % of India sales (weight assigned .3) 3. Suppose Patna has 2.28 % of India population (weight assigned .2) .5(2.0)+.3(1.96)=.2(2.28) = 2.04 Thus 2.04 % of country drug sales might be expected to take place in Patna.
Survey of Buyers Intention

Research firms are engaged in surveys. For Example Automobiles: Question: Do you intend to buy an automobile in the next six months ? Purchase Probability Scale: No chance 0.00 Slight Possibility 0.20 Fair Possibility 0.40 Good Possibility 0.60 High Possibility 0.80 Certain 1.00
Sales Force Estimates

Sales Rep. ASM BM HO Issues of Optimistic / Pessimistic Cushions up their sleeves lower quotas. Frontline may not be aware of larger economic dimensions (GDP/Petrol Prices / Interest rates etc.) You may need to link KRAs eg. Forecast vs actuals. Advantages Better insights into trends / Commitment leading to confidence / Grass root estimates is detailed by size and variants.
1. 2. 3. 4. 5. 6.
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Expert Opinion (Delphi Technique)

Dealers / Suppliers Marketing Consultants Trade Associations Govt Agencies Economic forecasting agencies They can be subject to strengths and weaknesses: Therefore Group of experts / Exchange of vies / Brain storming assumptions.
Past Sales Analysis

Trend analysis Sales versus consumer expenditure Quarterly fluctuations / Seasonality Projection Extrapolation or exponential smoothening Avg. Past sales vs more recent sales LY SPLY Last three months Oct Nov Dec 100 90 100 110 120 90 100 90 80 90
Key Learnings
Developing MIS and Decision Support Systems. Sales Analysis / Cost Analysis / Sales Audit Marketing Intelligence Forecasting Types of demand and methods of measurement Multiple factor Index and Trend Analysis.
Sales Management
Selection & Recruitment
Recruitment & Selection

It is about selecting the right-fit. A good sales person can be terrific performer but not necessarily a good manager. It is about finding where do the individuals strengths lie. More and more companies prefer to have coffee-table chats instead of interviews they do not seek to fill a position. They look at the individual and then fit him into the position most suitable for him.
Sales people have to deliver every day

This requires unique capabilities most of us would want to produce results on our own terms. We need space and time to ourselves. This is how an old joke goes: Have you heard about Bill ? He couldnt sell anything at all. Did they fire him ? No. They made him a manager !
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Contexualizing through history

Do you have the right stuff to be a great sales person During the War in the US, the North had more men, more money and more factories. But they did not have generals who could command and who loved to fight. Lincolns generals were good peace-time leaders. They had all necessary social graces for a refined life in Washington. During war, they were getting kicked off.
General Grant was an exception

General Grant was fighting battles and winning them. General Grant was not popular questionable drinking habits and checkered past. The more refined military leaders found Grant vulgar. But Lincoln recognized Grants willingness to fight and elevated Grant above his other military chiefs. As a result of subsequent victories, General Grant became a war time hero. After Lincoln was assasinated, the Republican party nominated him to encash his popularity and General Grant became the President.
General Grant as President

Many scholars view Grants administration as one of the worst in American history. He had a strong desire to grow the nation, but did not have the expertise to do accomplish his goal. He was suited for military engagements. He fumbled at diplomacy, tact and finesse. General Grant could pick superb battle commanders for the battle field. But he picked the most incompetent cabinet. Moral of the story: A great general can make a poor president
Success Myths & Relity

Myths: Some people are successful others are not. If you are successful in one role, you will be successful anywhere. Successful people have some habits to flourish. Reality People who are successful in one job are average performers in others. Great sales people do become sales managers but turn into appalling managers.
Terrific Sales People are promoted

Anshul, a terrific sales person became a sales manager and his trouble began. He wanted people to work round the clock seven days a week After all thats what Anshul did. In Anshuls mind he was not a workaholic. He took time to play golf with customers. He went for vacations and dinners with customers. Anshul did not count all these as work. Anshul startd entertaining his sales reps customers. Before long Low morale and people left Sales numbers became off target What worked for Anshul as a Sales Representative worked against him as Sales Manager.
Success Stories
Shyam was a successful Representative and a Sales Manager He had a natural interest in developing people. He complemented his best performers. He thought he works for his sales people rathern than the otherway round. He was ready to listen and respond. The same strengths that built relationships with customers helped him build a team.
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No Magic bullets
People achieve through configuration of talents. How you relate to or impact different set of people. Can you sit on the sidelines and watch others play or will you grab the ball.
What are your reasons

Reasons for poor sales managers More control and autonomy I deserve a promotion. My company wants me to take the job. I have been sales rep for ten years. More time in office. I am tired of daily pressure. Reasons for best sales managers I enjoy developing others I enjoy building a team. I get a kick out of helping others succeed. I like others to reach their objectives. I like working with talented perople.
Themes of Strength Finder

Achiever Everyday starts at zero - tangible results to feel good. You have fire inside you it dwindles but rekindles quickly. Achievement once it happens, it becomes history. Activator When can we start ? Impatient for action. Only action can make things happen. Adaptability Responds willingly to demands. Dont resent sudden work. It has to be done. Analytical Prove it. Show me why what you are claiming is true. Objective and dispassionate.

Arranger Best configuration possible very methodical Will often ask others How can you keep so many things in your head? Competitive Rooted in comparison. Has to outperform others. Likes contests because they make you a winner. Dliberative Careful, Vigilant and a private person Walking with care

Discipline Your world needs to be predictable You want to feel in control Structure / time-lines / routines keep you going and in control. Empathy Sensing emotions of others. Focus Where I am headed ? You need a clear destination. Futuristic Wouldnt it be great if You love to peer over the horizon.

Ideation / Intellection Fascinated by ideas. Exercising the muscles of your brain. Learner Love to learn. Do you put in practice ? Maximizer Excellence, not average is your masure. Responsibility Ownership for anything you commit. Restorative Loves to solve problems.
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Self Assurance You have faith in your strengths. Similar to confidence. Strategic What if this happened What if..Select .. Strike. Winning Others Over Enjoying the challenge of meeting new people. You try that they start liking you. You are drawn towards them you want to know their names In your world, there are no strangers, you have only friends.
Recruitment
What is Recruitment: Recruitment involves seeking and attracting a pool of people which qualify for job vacancies. Fitment Good person but not suitable for the sales job that needs to be performed. Therefore choice of candidate becomes critical Down-to earth vs Upwardly Mobile. Issues of head-hunting at every level Market Anchor used to retain good people. Important to determine: What job needs to be done What kind of a person will do it best
Selecting
Everyone wants to have Corporate Tendulkars Selection is an accurate estimate of success or failure Process Any one or a combination depending on need Prlims / Application (with details and even statement of objects in some cases) Interview / GD / Tests Negotiation of compensation / Internal Fitment Reference checks How ? Physical medical checks
Recruitment
Policy To make the process smooth and credibility with the prospective employees. Determinants of policy Size / Internal or Outsourced / Costs Sequencing Guidelines or a checklist Sources Agencies / Direct / Internal Transfer / DoubleHatter / Campus recruitment / Ongoing Dialogue with a set of prospects Job Profile giving principle accountabilties Job specifications What sort of person we require Technical Competencies / Soft Skills
Factors Involved in Recruitment Policy

1. 2. 3. 4. 5. 6. 7. 8. 9.
Sequence of Recruitment Process

1. What kind of job is to be filled ? Main Role / Accountabilities Job Description: Name of the Job / Who is the boss / Responsibilities / Accountabilities 2. What sort of person would do this job successfully ? Intellectual Abilities / Motivation / Specific Attainment / People Skills 3. Where will this person be found ? Employment agencies / Advertisements / Educational Institutions / Employee referals / Internal transfers 4. Which person is to be recruited out of the selected applications ? Education / Experience / Family background / Present financial situation / Health / Leisure interests / Ambitions & Future Plans.
Number of recruits required Recruitment sources Recruitment Needs / Recruitment Costs Size of sales organisation Rate of turnover Forecasted sales volume Government Policies Personnel Policies of competing organisation Organisational personnel policies Life-time employment or Hire for value
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Selection
A set of successive screens 1. Preliminary Interview A sorting out process for both parties 2. Formal Application A history sheet of personal information / education / employment and so on.. 3. Interview Structured / Unstructured 4. Reference Check 5. Testing 6. Physical Examination 7. Interview formal or informal 8. Rating and employment offer
Basis of Selection
Selecting People
Technical Competencies Managerial Competencies (Subject Knowledge) (Soft Skills) Territory Interpersonal Channels Distribution Field Force Reflecting on Self Leadership Paradigm Multifaceted
Interviewing Techniques
Structured vs Unstructured No hard and fast rule Value judgment Inherently Qualitative and subjective Typical Questions: Tell us something about yourself ? Introduction (To break ice) Education Ability to retain knowledge Employment Achievements What difference have you made (Quantitative validation of the qualitative judgment) Other interests Awareness check (Open to learn ?) Patterned / structured provide aids to the interviewer thereby making it relatively scientific Rating scale. Rating scales are only indicative
Interviewing Techniques
Psychological Tests Aptitude Ability to adapt and learn the job or skill Personality Check of value system Intellectual honesty (Do you cross the red light ?) Achievement Test Indepth knowledge versus surfacial knowledge Attitude is everything 1 % knowledge & 99 % attitude Attitude to life / Determination to succeed / Desire to make a difference Not a parking place
Placement & Future

Orientation including Introduction Shorter Honeymoon periods Probation a mere procedure Assigned responsibilities Written document of key responsibilities and KRAs Easier to recruit than retain Turnover issues Roadmaps giving milestones of achievement and progress Challenges linked to reward Cannot be ambiguous Never a false promise
Key Learnings Recruitment & Selection

Recruitment The right fit for the right job / Seeking and attracting talent for job vacancies / Market Anchor / Recruitment Policy / Sequence of Activities Selection At best it is an accurate estimate. Set of successive screening Basis of selection Interview techniques Placement
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The Supreme Court about Examination:
The Supreme Court on Interviews:

In our opinion, the interview is the best mode of assessing the suitability of a candidate for a particular position. While the written examination will testify the candidates academic knowledge, the oral test alone can bring out or disclose his overall intellectual and personal qualities like alertness, resourcefulness, dependability, capacity for discussion, ability to take decisions, qualities of leadership etc.
The very concept of examination justifies a minimum as bench mark for passing. In addition, further requirements are necessary for assessment of suitability of the candidate
In the last session..Recruitment
Sales Management
Training & Evaluation
What is Recruitment: Recruitment involves seeking and attracting a pool of people which qualify for job vacancies. Fitment Good person but not suitable for the sales job that needs to be performed. Therefore choice of candidate becomes critical Down-to earth vs Upwardly Mobile. Issues of head-hunting at every level Market Anchor used to retain good people. Important to determine: What job needs to be done What kind of a person will do it best
Selecting
Everyone wants to have Corporate Tendulkars It is an accurate estimate of success or failure Process Any one or a combination depending on need Prlims / Application (with details and even statement of objects in some cases Interview / GD / Tests Negotiation of compensation / Internal Fitment Reference checks How ? Physical medical checks
Basis of Selection
Selecting People
Basis of Training
Identifying Gaps
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Job Description & Personnel Specification
Sales Training & Evaluation

The term training relates to acquiring skills and knowledge Knowledge is the foundation and skills methodologies to perform In a fast changing world, new skills and new knowledge acquisition is imperative Degrees need to be renewed through MDPs & Executive MBAs Learning is a life-time engagement Learning organisation
Job Description Title of the job SR / SM Duties and responsibilities Reporting relationships Specific requirements travel for 15 / 20 days Location of the job place of work Degree of autonomy limits of authority,
Personnel Specification Physical requirements can withstand travelling. Attainments education / experience. Aptitude & Qqalities Communication skills and motivation level. Deposition maturity and sense of responsibility Personal status / hobbies / interests
How to go about training

Aim (Why) Content (What) Method (How) Execution Who,When & Where Evaluation
Gap identification through competence mapping
Training
Background: After acquisition, it is necessary to raise the skill levels and increase the versatility and adaptability of employees. In a changing world, it is imperative for an organisation to readapt the products and services produced It is critical that organisations maintain a viable and knowledgeable work force.
Specific aims of management, Organisational need-connect Effectiveness Lecture / OTJ / Accountability through daily evaluation Process of assignment of responsibility / venue / design / delivery Mechanism to assess - ROI
What is Training
1. 2.
What is training process
3.
It is a learning experience for the sales force. It is a sequence of programmed behaviour and the application of this knowledge to the work environment. Helps in personal growth and prevents human obsolescence It is a process of providing the sales force with specific skills required for their performance. It seeks a relatively permanent change in an individual that will improve his or her ability to perform on the job. Typically Training can involve the changing of skills, knowledge, attitudes, or social behaviour.
Training and need assessment
4.
Design and conduct training
5.
6.
Evaluation of a training programme
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Training need assessment

Organisational level analysis
Structure,Culture, Mission.
Objective of training
Survey approach: A study of customers to know Where is the gap ? Behaviour values and ethics Knowledge content / product / general awareness Relationship interpersonal sensitivity Communication skills..
Task level analysis

Job requirements, Task analysis
Individual level analysis

Performance gaps
Objective of training Authors: William Berliner and William McLarney

1.
Training and Learning

Learning as a result of experience direct experience by doing or indirectly through observation. It is difficult to measure learning per se but we can measure the changes in attitudes and behaviour that occur as a result of learning.
2. 3. 4.
5.
Listing the duties, responsibilities or tasks of the job under consideration the basis of the job description guide. Listing the standards of work performance related to the job. Comparing the actual performance against standards. Determine the part of the job that creates the deviation of standard. Determine the kind of input required to address specific needs.
Principles of Learning
1. 2. 3.
Determining Training Needs Methods

Survey By Bureau of National Affairs, Washington DC
4.
Learning is enhanced when the learner is motivated Learning requires feedback Reinforcement increases likelihood that learned behaviour will be repeated Practice increases a learners performance Break the job in parts and practice each part independently.
Method
Observation & Analysis of job performance Mgmnt & Staff Conferences Analysis of Job requirements Consideration of changes Surveys / Reports etc. Interviews Other
Percentage
49 24 19 16 10 6 15
LEARNING MUST BE TRANSFERABLE ON THE JOB.
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Organisations Internal Environment - Transational Analysis
Sales Persons Career Cycle

Preparation: New and learning environment Development: Productive Maturity: Leveling of productivity Decline: Serious concern for re-orientation
Adult / Child / Old States..

1.
Lets meet next week to begin your performance review for the past three months Effective: Certainly. And I will supply you with copies of major activities/accomplishments for the period. (ADULT) Ineffective: Why now. We have just completed the last one. If you would leave me alone, I would get much more accomplished.(CHILD)
2. 3. 4.
Types & Methodologies

Types Cross-Functional job enrichment and appreciation. Team training high technology products / SAP Creative training Mindset changes. Literacy training Mastery of basic skills Methodology depending on Training programme objectives Time available Participants level of understanding Financial resources and equipment required Size of the group Group versus trainer.
Types of Training
Induction training OTJ Training
1. 2.
Induction (Joining time) Company Profile Position in hierarchy and job responsibilities Introduction to the administrative staff and accounts staff. Reporting procedures and standards of reporting Knowledge of products, their features and benefits Knowledge of manufacturing units Handing over stationery and kit etc.
Types of Training
Skill development training
Induction training OTJ Training On the job Training Ongoing and continuous process. Improvements through mentorship Job related skill development review of calls made Responsible behaviour versus irresponsible behaviour Inter-personal skill development
1. 2.
Steps to a call: Planning and preparation Approach Stock check Brand talk Objection handling Close Detail work
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Step 1 Planning and preparation
Step 2 Approach
1. 2. 3.
4. 5.
6. 7. 8.
Prepare days target in line with months target Decide on route / market as per your route plan. Check previous visits report and check if all complaints are addressed Check available stock If going with a van, check the condition of the vehicle, quality of accompanying staff, loading of stocks, POP materials. Manufacturing dates / MRPs / Price Lists Sales Kit / Samples / Weekly off of the market you are going. Contingency plan
1.
Peronality Grooming / Dress code - How you wear it. Loose-tie versus straight-jacketed What does the customer expect What is the custom / precedent / practice Method Communication style (How close you are ) Can you call by name genuine acquaintance Repeat your name to be remembered. Greeting (How you say it ?) Sikh Sat-Sri-Akal North Namaste / Jai Siyaram Muslim Salam / Adab-arz-e Bengal Namaskar South Namaskara Marathi Ram Ram Gujrathi Jai Sri Krishn Kem Choo
3.
Step 3 Stock-check at the point of sale
Step 4 Brand talk
1.
Know the shelf of your stocks create one if not there, What is his need avoid underselling or overselling Design your sales talk in keeping with the stock levels. If all you sold during your last visit is still lying unsold what will you do ? If half of it has been sold ? And so on ..
1.
2. 3. 4.
2. 3.
4.
5.
Say something good about the product not something which will lead to productive call. Product feature reinforcement Milkmaid Convince him about your competitive advantage Convince yourself about the product features and benefits. Use Attention, Interest, Desire and Action rather than tricking for sale achievement.
5.
Step 5 Objection handling
Step 6 Closing the call
Queries and objections are natural and need to be answered. Listen and do not interrupt Agree and counter Repeat the objection in the shape of a question (Do you mean to say..) Hidden objection the customer may not come out with the objection clearly seek and probe. Straight denial Sometimes necessary.
1. 2. 3.
4.
Seek opportunity to close the sale Ask for the order after summarizing your sales talk. The alternate sale shall I send you ten units or five ? Conditional I will do this to send you so much of stock.
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Step 7 Detail Work
Follow the ACMEE

Aim (Why) Content (What) Method (How) Execution Who,When & Where Evaluation
Gap identification through competence mapping
1. 2. 3. 4. 5. 6.
Merchandising and displays Execution of delivery. Transaction listing. Data bank analysis Comparison with similar outlet-type Corrective action, if any.
Specific aims of management, Organisational need-connect Effectiveness Lecture / OTJ / Accountability through daily evaluation Process of assignment of responsibility / venue / design / delivery Mechanism to assess - ROI
Step I - AIM
Aim in terms of initial and continuous sales training need is identified after analysing job specifications, background and experience and sales related marketing policies.
Step II - Content
Content of training is derived from the specific aims of management. It mainly comprises product data, sales technique, markets and company information
Step III - Method
Step IV Execution of training

Execution of training is basically the answers to the three questions. What ? When ? Where ?
Method of training involves how to impart training to sales persons. Important methods are lecture, conference, demonstration, role playing, case discussion, gaming, programmed learning.
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Step V Evaluation of Training

Evaluate for lasting impact ensuring that the effort placed in the training programme would pay off long after sessions ended.
Evaluation
Performance-linked packages by trainers If jobs are at stake why not consultancies Deliverables can be determined prior to the commencement of training MS / Change Pre & Post Training Qualitative improvements can also be measured
Key Points
Training imperative due to jobs becoming sophisticated Training seeks change through learning Effective training programme to be consistent with learning principles Study Organisations training needs Formal training methods: OTJ / Off-the-job Management Development: Coaching/ Understudy assignments/Job rotation/Committee assignments
Key Learning of the session

I keep six honest serving-men (they taught all I know); Their names are WHAT and WHY and WHEN and HOW and WHERE and WHO. R.Kipling, The Elephants Child Just-so Stories
Key Concerns of Sales Managers
Sales Management
Meeting & Contests
Goal Setting Audacious ? Achievement rare & Partisan Behaviour Quality Manpower being pouched, especially by Insurnace / Banking before they join and get trained. Business goals & strategic framework unknown to frontline Do not know ! No one has ever told us ! Focused on selling in Metamorphosing warfare with marketing battles Not understood More informed teams were found dynamic and their products moving faster off the shelf
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Expectations from people

What will make sales personnel strive beyond a fair days work: Stretch Passion Self-starter Self-directed They will meet expectations only if they have job satisfaction.
What brings people to sales ?

Needs for personal growth Recognition Fast-track promotions Financial rewards Higher responsibilities Needs fulfilled = Job Satisfaction
How do you stimulate these needs

Sales Meetings Sales Contests
Job Satisfaction Vs Job Performance

Does job performance lead to job satisfaction OR Does job satisfaction lead to job performance Well, there is a positive relationship Direction can be anyway.
Job Satisfaction Job Performance
Motivation & Performance

What is motivation ? From above: Unhappy with current performance leads to motivation From self: Can decreased job satisfaction stimulate job performance. No simple answers here.. Concern for people vs Concern for work Leadership styles.
Leadership Roles
In successful team meetings the requirements for task performance and social satisfaction are met. Roles Leaders Play: 1. Task Specialist Role: A role in which an individual devotes personal time and energy to helping the team accomplish its task. Behaviours of a Task Specialist: Initiation proposes new solutions. Give Opinions Candid feedback to others Seek information task-relevant facts Summarize Pulls ideas together into a perspective Energize Stimulates when interest drops.
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Leadership Roles
2. Socioemotional Role: Support team members social needs.
Leaders are responsible for creating teams

What is a team ? A unit of two or more people who interact and coordinate their work to accomplish a specific goal. 1. Two or more people are required. Teams can be large consisting of about 15 people or even All India teams. 2. People in team have long interaction. People standing in a queue or in an elevator do not interact and therefore do not qualify for a team-like interaction. 3. People in team share a performance goal design a new software, build a car or students doing an assignment in groups
Socioemotional Behaviours: Encourage Are warm and receptive to others ideas. Praise others for their ideas. Harmonize Reconcile group conflicts. Reduce tension Bring in humour. Jokes when the team is tense. Follow Go along and agree to others ideas. Compromise May shift own opinion to maintain team harmony.
Difference between groups and teams

Groups
Has a designated strong leader Individual Accountability Identical purpose for group and organization Runs efficient meetings
Types of Teams
1.
Teams
Share or rotate leadership roles Individual and mutual accountability (to each other) Specific team vision or purpose Meetings encourage openended discussion and problem-solving. Effectiveness measured directly by assessing collective work Discusses, decides, shares work.
2.
3.
Formal Teams: Created by the organisation as part of the formal organisation structure. Vertical Teams: A formal team composed of a manager and his subordinates through chain of command. Horizontal Teams: A team consisting of same hierarchical level but from different areas of expertise.
Effectiveness measured indirectly financial preformance Discusses, decides, delegates work to individuals.
Types of Teams
Greater autonomy to employees

The idea of a team meeting is to increase the participation of low-level workers in decision making. The ultimate objective is to improve performance. Problem-solving team Meet: People from the same department meet to find ways of improving performance. Self-Directed teams Meet: People multi-skilled who rotate jobs to produce an entire product or service often supervised by an elected member.
Committee: A long lasting, sometimes permanent created to deal with tasks that recur regularly CECs. Special Purpose teams: A project of special importance and creativity.
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Member Roles
In successful teams the requirements for task performance and social satisfaction are met. Roles Members Play: 1. Task Specialist Role: A role in which an individual devotes personal time and energy to helping the team accomplish its task. Behaviours of a Task Specialist: Initiation proposes new solutions. Give Opinions Candid feedback to others Seek information task-relevant facts Summarize Pulls ideas together into a perspective Energize Stimulates when interest drops.
Member Roles
2. Socioemotional Role: Support team members social needs. Socioemotional Behaviours: Encourage Are warm and receptive to others ideas. Praise others for their ideas. Harmonize Reconcile group conflicts. Reduce tension Bring in humour. Jokes when the team is tense. Follow Go along and agree to others ideas. Compromise May shift own opinion to maintain team harmony.
Stages of Team Meetings

Forming: Characterized by orientation and acquaintance Possibilities of finding friendship uncertainty Trying to know ground rules expectations (Will I fit in, What is acceptable) Storming: Individual personalities emerge People become assertive Conflict and disagreement Leadership encourage participation and surface differences
Stages of Team Meetings

Norming: Conflicts developed during the storming stage are resolved. Establishment of order and cohesion Clarifying team roles, norms and values (Leadership) Performing: Focus on problem solving and teams accomplishment Cooperation Facilitating task accomplishment (Leader) Adjourning: Members prepare for ending the meeting Especially in the case of committees and task forces who have limited roles to perform. Emotional for some Members may regret end of the meeting, especially if there are unresolved issues.
Managing Conflict
What is a conflict ? Antagonistic interaction in which one party attempts to thwart the intentions or goals of another. What are the causes of Conflict ? 1. Scarce resources Desire to achieve lead to seeking resources. 2. Jurisdictional Ambiguities job boundaries and responsibilities are unclear 3. Communication Breakdown - misunderstandings 4. Personality Clashes People do not see eye to eye. 5. Power and Status Differences Hierarchy and status 6. Goal Differences People pursuing conflicting goals.

Team members are either assertive or cooperative. However effective team members vary their style of handling conflict to fit a specific situation. 1. The Competing Style: Assertiveness to get ones own way; this can be used when quick and decisive action is vital. 2. The Avoiding Style: Neither assertive nor cooperative. This can be resorted to when the issue is trivial. 3. The Compromising Style: Moderate amount of both assertiveness and cooperativeness. When goals on both sides are equally important. Time pressures lead to compromises. 4. The Accommodating Style: When maintaining harmony is important. 5. The Collaborating Style: Bargaining and Negotiation to reach a win-win situation.
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Potential Costs of Meetings

Power Realignment: If suggestions of one group prevails, the other group loose on power and resources. Free Riders: A person who benefits from realignment due to contiguous location. Coordination Costs: Groups need time getting ready to do work and loose on productive time in preparation, travel and subsequent brief-meets.
Field Sales Meetings are about getting together

Are for communication and motivational purposes. Sales People are out in the field Without day-to-day supervision No fixed hours Own interests Sales Meetings are occasions to stimulate people and raise their standards. It is all about leadership and balancing of concern for task and concern for people.
How do you go about it ?

1. 2. 3. 4. 5.
Purpose of Meeting - drive performance

What drives performance - Interaction Open environment Stimulate questioning Challenge the Leader Leadership task to provide the right environment Performance is a result of pushing for results within the organisation One employee demanding from the other No fiefdoms Managers are possessive of information More aware person is a more educated Economic Times reading
1. 2.
Defining the specific meeting aims Deciding the meeting content Determining methods of conducting the meeting Deciding how to execute the meeting. Deciding how to evaluate the meeting. There cannot be an excuse for holding a meeting Also important would be: Minutes of the meetings Action Plans
Sales Meeting is a platform for communication

Brings about clarity and cohesion of action plans A tool for periodic review Team building exercise An effective tool to make information available to a large number of people Examples of excellence, success stories and failures Take the example of a typical MBA class case studies and the fear of failure in the class. In effect, a sales meeting can send strong signals and mesages
Communication prior to the Meeting is the key

Why are we meeting ? typical reactions. Oh no, not again. How can I contribute ? Some frequently observed comments: It is a bloody circus, It is a necessary evila ritual to be performed Boss has to save his job It is an eye-wash They are wasting my time ! In most cases, communication or lack of communication is the fundamental issue.
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Noble intentions are also there

Noble intentions are common Bosss concern for work professional approach. An employee essentially wants to learn and grow with the organisation. Both have common goals Issue is knowing that they have common goals. But does the boss know how to call for a meeting ? Communicate, Communicate and Communicate.. Make terms of reference clear.. In sale of goods - conditions of sale In contracts The use of words Whereas and definitions DKDK phenomena
Grand Plan for the Meeting

Doing small things well Clarity on specific purpose to be achieved prior to the meeting. Sequencing Brief by MD to add seriousness and setting-up the stage.. Contents Priorities and schedule of time for each topic Presentations by field staff and HO staff it is no performance appraisal. Theory of Reciprocity Work-shops and Outside Speakers to address monotony but check relevance
Types of Meetings
Objective-Linked and Typical Meetings National Sales Conference Annual Regional Sales Meetings Quarterly Review Branch Sales Meetings Monthly Review Local Sales Meetings HQ Meetings Concept of Invitees. On-line / Real Time Meetings Telephonic Dinner at home Traveling together and the list goes on
A-C-M-E-E approach
Aims Objectives e.g. new product launch / competitive reaction / sales promotion initiative / advertising campaign / New reporting systems etc. Content An outline of agenda / Sets expectations. Consider a Pricing Decisions Content should seek forecasting with the new price, competitive reaction, What-If scenarios, Sales promotion to cushion the effect of price-hike etc. Method Time-frame for each topic No free-wheel discussion Execution Venue / Menu / Speakers / Trivia like seating arrangement Evaluation Criteria / What shall be the outcome / Have we achieved the desired outcome / Feedback and improvement.
What gives rise to meetings ? - AIMS

Uncovering of new insights Bosses tend to read and get ideas. Competition bench-marking stimulated by marketing intelligence Perfect reasons as far as we have our aims 1. Right 2. Realistic 3. Attainable Questions to Ask: What will be the outcome ? Will the outcome be profitable ? Priorities of time ? Justification
What is the agenda ? - Content

List of things: - An outline e.g. Competition launching a new product Informational Reduces Anxiety Counter Moves for a competitive launch when and how. This requires research: Why is competition launching What is their strategy How are they going to launch Noise levels React or Watch and react. Over-reaction can be dangerous and send wrong signals.
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How do I conduct a meeting ? - Method

Methodology depending on the aim. Short meeting for a briefing what else can be done. Interactive Brain-storming how long ? Planning Pre-meet formats to be circulated. Time frame to be examined wider content versus focused points. Mix of methods
Success dependent on Execution

Speakers who will initiate Day - by sessions Meeting site Room arrangement based on active participation or Listening, Noting Depending on number of people: Round Table / Oval Shape / British Square / Inverted U-shape or Work-shop.
Pre & Pot Meeting - Evaluation

Often neglected. Boss: My job is over; now it is for them to do it Subordinate: It was the usual aimless, away from ground reality, jamboree event.boss had nothing to do
Individual Interactions
Conferencing with each sales person Inter-personal touch for commitment What are expectations Resources & Help critical for success How much independence How well they are doing Feedback Basis for future rewards incentives (Shortterm) Annual appraisal (Progress to promotion)
Contests
A special campaign to achieve focus e.g. Operation Volume Shift comfort-zones of routine work To achieve stretch Do more rather than less ; To the limit and beyond To bring about a team-spirit and add excitement to the mundane job The idea is to provide impetus Shahbash Jawan. Lets get on with this. Lets achieve a million cases today and so on
CONTESTS
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Objectives of Contests
1. 2.
Kinds of Prizes
Cash Prizes Incentives (Monthly & Cumulative) Substantial amounts are effective Merchandise Items of interest to the audience Evidence of achievement to be shared with family Travel Conferences / 5 star stays / Holiday resorts Travel Come fly with me contest Special Honour Letters of appreciation, Salesman of the year award etc. Stimulating for progressive & mobile employees
3. 4.
5. 6.
7.
New Customers New Geographies Push slow-moving items from the portfolio or achieve a more profitable mix Seasonal slump Productivity of sales personnel Own or Trade Partners Improve top-of-mind salience during a TV Campaign To involve trade-partners in the marketing process of the brand Trade partners can fall in love with your brand only if you show the passion
Objections to Contests
No preferential treatment to sales function High calibre people consider it undesirable because they are self motivated Short-term and customer focused and not consumer focused leading to over-stocking Generates disappointment in large number of losers versus small number of winners Narcotic effect I will sell when the contest is announced scheme-brands The answer lies in a balanced view. There are no black and white answers.
Issues with Contests

Number of Prizes Can you make everyone win ? Do Consolation prizes have adverse impact Element of Bias Duration of Contest Interest levels go down with longer durations Too short a duration will lead to temporary gains and then proportionate decline Series of promotions pre-planned as a part of the yearly calender but not cast in stone Short-term and Long-term gains
People Management
Sales Management
Our strength is the quality of our people Our people are our most important resource Increasing recognition of the value of human resources. Value lies in the strategic-fit
Appraisals
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People Management - Goals
Changing Social Contract

New Contract Employee Old Contract

Attract an effective sales force Number Planning Job Analysis Recruitment & Selection Maintain an effective force Compensation / Benefits Employee relations Terminations Develop an Effective force Training Development Appriasals
Employability, personal responsibility. Partner in business improvement Learning

Continuous learning, lateral career movement, incentive compensation. Creative development opportunities Challenging assignments Information and resources
Job Security A cog in the machine Knowing
Employer
Traditional compensation package Standard training programs Routine jobs Limited information
Attracting an effective sales force
Performance Appraisal
The process of observing and evaluating a sales persons performance, recording the assessment and providing feedback to the employee. Apprise concerned sales persons concerning the acceptable elements of his performance. And also describe performance areas that need improvement. It is about rewarding merit and reprimanding mediocre performance.
MATCH MODEL
Employee Contribution Ability Education Creativity Commitment Expertise
Company Inducements Pay and benefits Meaningful work Advancement Training Challenge
Performance Appraisal
Raise: It is a transaction about how much money you or I can get. Feedback: It is a conversation about how much meaning you and I can create. Accurate assessment based on rating scale. Use of feedback that can reinforce good performance training & development.
Assessing performance accurately

We must acknowledge that most jobs and especially sales jobs are multidimensional. Sports Broadcaster: - Knowledge dimension (facts, figures, rules, players) - Communication - Colourful way of expression that interests the audience. It is indeed critical to assess each relevant performance dimension.
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Multi-dimensional form
360-degree feedback A process that uses multiple raters, including selfrating, to appraise employee performance and guide development. Increase awareness of strengths and weaknesses. Guide employee development
Rating Sales people

Halo error: A type of error that occurs when a sales person receives the same rating on all dimensions regardless of his or her performance on individual ones. Homogeneity: A type of rating error that occurs when a rater gives all employees a similar rating regardless of their individual performance. Behaviourally anchored rating scale (BARS) A rating technique that relates an employees performance to specific job-related incidents.
Behaviourally Anchored Rating Scale Work schedules

Comprehensive plans, Communicates & and observes target dates. Usually satisfy time constraints with minor problems but time and cost overruns coming up infrequently. Has a sound plan but neglects to keep track of target dates frequently surprises. Has no plan or schedule of work and no concept of realistic due dates. Fails consistently to complete work on time, lack of interest and no planning at all.
Job Description & Personnel Specification
Job Description Title of the job SR / SM Duties and responsibilities Reporting relationships Specific requirements travel for 15 / 20 days Location of the job place of work Degree of autonomy limits of authority,
Personnel Specification Physical requirements can withstand traveling. Attainments education / experience. Aptitude & Qualities Communication skills and motivation level. Deposition maturity and sense of responsibility Personal status / hobbies / interests
Basis of Selection
Selecting People
Basis of Training
Identifying Gaps
About the Exercise

Do a self-appraisal The forms shall be given to you. Fill the entire form. KRAs Be specific and quantitative as far as possible. Performance Achievement Quantitative and use indicators.
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About the Exercise

Based on the narration of KRAs & Performance Achievement, rate on management skills and technical skills. Justify rating: Listing strengths and weaknesses Listing areas of improvement Development Plan Based on narration of areas of improvement. Objectives of Next Year Which will become KRAs & Performance achievement for next year.
About the Exercise

Towards the end: Appraisee / Appraiser Interview to appreciate dynamics.
About the Exercise

Appraiser and Appraisee have to prepare to the interview. It is a personal interview between the two people who have worked together. It has dynamics of behviour.. Oh you have done a terrible job this year
About the Exercise

Oh. This has been a very good year for me. I believe it should be very short interview. NoNo Lets examine this is a very important exercise for both of us.
About the Exercise

Both Appraiser and the Appraisee have agendas Both have an overall rating in their mind. It is a negotiation that is taking place. There is a possibility of a change in the overall rating depending on how the process goes.
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Sales Management Previous Session .

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Sales Management

Trading Environment & Channel Management

Dimensions of External Environment

Overview of The Marketing Environment

Key Message of Environment

If the only constant is change

In the context of Trade Marketing

Changes in the Trading Environment

Changes in Consumer Environment

General Industry Trends impact trading and consumer environment

Emerging Outlets Types

Marketing channels are behind every product

Marketing channels change with changes in environment

Where do you look for influence

Channel viewed as a key strategic asset

Channel decisions are strategic

What do marketing channels do ?

What do marketing channels do ?

What do marketing channels do on the Supply Side

Marketing channels impact number of contacts

Ret.7 Ret.8 Ret.9 Ret.10

Why marketing channels are there ?

W/S 1 Ret.1 Ret.2 Ret.3 Ret.4 Ret.5 Ret.6

W/S 2 Ret.7 Ret.8 Ret.9 Ret.10

Value Network view

Objectives of Channels of Distribution

Who are marketing intermediaries

Wholesaler as a marketing intermediary

Different roles of a wholesaler

Other marketing intermediaries

Ownership change through the process

Channel Selection Criteria

Physical Possession / Ownership Promotion Negotiation Financing Risking Ordering Payment

W/S Ret. Consumer

Outsourcing: Services After Sales Finance by Cars and Real Estate

Changing channel dynamics

Growth of Multichannel Marketing Systems

Conflicts can occur anywhere

Causes of Channel Conflict

Causes of Channel Conflict at IBM

Types of Conflict & Competition

Types of Conflict & Competition

Challenge for Sales Managers

Styles to Handle Conflict

Managing Channel Conflict

Managing Channel Conflict

Managing Channel Conflict

Managing Channel Conflict

In the previous session..

Why establish Sales Territories ?

Meaning of Trade Marketing

Managing the Sales Effort

SWOT Analysis for Designing Territory

Making SWOT Productive for Territory Management

External (Opportunities and Threats)

Matching Strengths with Opportunities

The S.W.O.T. Matrix: Identifying Actions to Take

The S.W.O.T. Matrix: Identifying Actions to Take

Designing a Territory- Competitor Questions

Designing a territory - Customer Questions

Understanding Territory -What is a Territory

How do you determine a unit