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Mathew Lawrence

Sales Management & Personal Selling

- Prepared by Mathew Lawrence

Presentation Flow
Sales Management

Introduction to Sales Management Sales Force- Managing the Sales Force Sales Manager- Duties and Responsibilities Formulation of sales strategy Introduction Different Sales Strategy Problems of Sales Management Methods of selling special emphasis on Personal Selling

Personal selling

Introduction Changing face of Personal Selling Steps in Personal Selling Difference between Advertising and Personal Selling Theories of Personal Selling Mathew Lawrence

Introducing the Concept Sales Management

Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations.

Birth of Sales Management: After the Industrial revolution and with the increase in volumes of
production, i.e production on mass scale not only for local consumption but also to cater to the demand at national and global levels sales management came into existence.

Sales mgt is responsible for the sale of products of a company and to add profit to the business

operation.

Sales force should be hardworking, result oriented, well educated and competent to handle changing situations. Definition : The process of planning, directing and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying and motivating the sales force- American Marketing Association

Thus sales management means, the task which includes analysis, planning, organizing, directing and controlling of the companys sales effort. Mathew Lawrence

Managing the Sales Force

The key to any successful sales management lies on the people working in sales. Companies spend considerable amount of money on training and development of sales force.

Sales force management of any company lies on three parameters they are Organisation: The key to sales force is the right level of aggregation against product lines and

geographical area. (separated product line)

Strength and Qualification: Sales force strength and qualification significantly affect the ability to

provide competitive service level and economies of sales force.

Compensation and Incentive system:

compensation and incentives have a significant impact on the moral of the sales force and help in retaining successful sales people.

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Example of a hierarchy in Sales Department

Sales Directo r (1)

Divisional Manager (2)
Zonal Manager (10) Regional Manager (25)

Territory Business Manager (50)

Territory Business Executive (50)

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Duties & Responsibilities of a Sales Manager

Sales Manager is the most important person in a sales department. All activities are

based on his functions and responsibilities.

Sales Manager is like the captain of a team who leads from front and sets up

examples for it is subordinates.

Following are some of the principal duties of a sales manager:

Organizing sales research, product research etc.
Getting the best output from the sales force under him. Setting, achieving and controlling the targets, territories, distribution etc. Advising the company on various media, sales promotion schemes etc. Monitoring the companies sales policies.

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Formulation of Sales Strategy

The function of sales manager includes the task of organizing, planning and implementing the sales efforts so as to achieve corporate goals related to market shares, sales volume and return on investments. Following are the key decision areas on which sales strategy is

Formulated:

Determining the size of sales force Determining the quality of sales force Determining the market share and volumes of business. Competitors presence. Recruitment and training procedures. Type of customer base.

Feedback mechanism to be adopted

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Different Sales Strategy

Relationship Strategy: The major key to success in selling is the
ability to establish working relationship with customers. The sales force that builds effective relationship with the customers and provide

valuable service are usually high performers and top achievers.

Example: Hospitality, Travel & tourism.

The Double-Win Strategy: In this strategy both customers and the

salesperson come out of the sale with a sense of satisfaction. Both feel satisfied
that, knowing that neither has taken advantage of the other and both have profited, personally and professionally. Example: Insurance

Instant Service: No matter how efficiently and effectively goods/services are produced, if
they cannot be delivered to the customer in the quickest manner, all efforts made earlier are in vain. Also the concept of supply chain had involved from this sales strategy. Example: Short shelf life products- Consumable products

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Different Sales Strategy (continued)

Hard Sell v/s Soft Sell Strategy:

Hard Sell

Soft Sell

Concern for self only

Canned Presentation Talking Pushing product Presenting features Advocating without acknowledging

Concern for customer

Questions and Discussion Listening Providing buying opportunities Presenting benefits Acknowledging needs

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Different Sales Strategy (continued)

Client centered selling strategy: This strategy focuses the entire selling process and efforts on the clients need and problems. It considers who the client is, what he or she does an where, when, why and how he/she does it. It demands the fullest knowledge of the client as an individual. Example: Designer garments, Rolls Royce

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Problems of Sales Management

Designing and Managing sales force: The greatest challenge for any sales manager is to maintain the attrition of his sale team. So the sales manager must maintain a vigilant check on the various activities of the sales force.

Sales force Authority: Delegation of authority has to be passed on to his subordinates. Following are some of the delegation Changing prices (negotiation) Credit Facility Quality and after sales assurance Settlements of Claims, etc.

Target-setting: Target setting is necessary for achieving organizational goals. Sales

targets are fixed on the basis of past experience, time period, brand positioning.

Sales Forecasting: Sales forecasting must change according to the environmental factors. It is also one of the factor influencing the target setting.

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Methods of selling

Telemarketing: Selling concepts on the phone- Telemarketing works through a well networked team of trained telemarketers calls to potential clients and establish direct contact with them. convincing the customer about the value of the product or appointment. Example: Housing loan, Insurance, selling, Credit cards etc.

outfit who make The key lies in service and fixing up

Sales on the Internet: A new dimension in the selling world. Many companies are now promoting there products through web network. The greatest advantage of sales on the internet is the market coverage it gets. Example: E-bay, flipkart.com.

Mail order Sales: In this method, customers do not visit the sellers business premise, nor do they make a personal examination of goods, before they are purchased . Orders are received through post and goods are dispatched usually through Value Payable Parcel. Example: Readers Digest, Magazines.

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Methods of selling (continued)

Retail Selling: Concentration of population in urban areas, increasing flow of manufactured goods and improved methods of organising business have led to the expansion of retail business. At present there

are different forms of retail formats giving rise to selling of goods. Example: departmental store, hypermarket, supermarket, co-operatives etc.

Wholesale Selling: A wholesaler performs different activities like

Assembling and buying Storing and warehousing Transportation Financing Risk Bearing Grading, packing etc.

Example: Cash and Carry.

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Methods of selling (continued)

Direct Selling: In this method, it only takes a minute to clinch a sale but choosing the

right minute to contact the customer involves a days work for a direct marketer.

I dont care how many degrees you have on the wall if you dont know how to sell you are probably going to starve.

Heavyweight boxer George Formans advice to his children

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What creates a satisfied customer

Competence of the Sales Person

21% 37%

A total customer solution

25%
17%
Competitive Price

Quality of the product and service

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What Is Personal Selling?

Personal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client.

Definition : A form of person to person communication in which a salesperson works with prospective buyer and attempts to influence purchase in the direction of his or her companys products or services

Some important aspects of Personal selling:

It provides human touch to business transaction. It promotes long term business relationship. It enhances customer confidence It helps in understanding the pulse of the customer.

It helps in customizing the product.

Helps in convincing the customer about the product.

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Changing face of Personal Selling

In todays competitive markets, a personal sellers role is not just confined to persuading prospective customers to buy products. In view of above, modern sales approach is based on the following parameters.

Value sharing: The sales people share the same value as

their customers and perceive the customers needs with the sole view to serve them better.

Relationship Building: A sales person should be able to maintain the relationship with customers, which culminates in building long term relations.

Role Playing: The sales people, in personal selling go far beyond realizing sales volume. They act as a consultant to their prospective customers constantly advising them of new products and updates.

Co-ordinated approach: with a view to providing total customer satisfaction, a co-ordinated approach of sales people with their colleagues is necessary. Example- maintenance, installation, trouble shooting etc.
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Steps in Personal selling

Successful personal selling calls for an integrated approach devised from the experience of the sales personal. The approach comprises steps they are as follows:

Prospectin g

Pre approach

Approach

Follow-up

Presentatio n/ Demonstrati on

Closing

Handling objectives

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Prospecting

Prospectin g

Prospecting is the process of identifying prospective buyers of the product. The prospects are those who have a need or will to buy and need or will to buy and power to pay. Prospects may be Individuals or institutions. There are different ways to identify the prospects. Some of the most Frequently used methods are described below.

Cold Calling Acquaintance of Reference Center of Influence

Personal Observation
Direct mail / Telephone Company records Newspaper Other Methods

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Pre-approach

Pre approach

Pre-approach is the second step in the selling process which emphasizes that the salesman should know the likes and dislikes, needs, preference, habits, nature, economic and social status of his prospect clients. There are certain significances of pre-approach they are as follows.

It is a method by which a salesperson concentrates only on the prospects. It helps a salesperson gain all the possible information about the prospect before approaching him.

Because of the ample knowledge of the prospects a salesperson is able to give presentation
more efficiently and effectively and with confidence.

With good presentation a salesperson is focused around the needs of the prospect

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Approaching

Approach

In this stage the prospect and the salesperson comes in contact with each other face to face. Here the salesman has the opportunity to understand and interact with the prospect in a better way. Hence getting the attention of the prospect and persuading him to buy are the two main objectives of a salesperson. Methods of approaching:

Cashing in the brand name approach

Customer benefit approach

Innovative product approach Premium approach The shock approach Survey approach

How do we make the Initial contact & build rapport There is only one time to make a first impression

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Approaching (continued)
Key Guidelines

Prior Appointments Timing Command on the subject matter Relaxed approach Open mindedness

Courtesies
Effective presentation Follow ups

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Presentation / Demonstration

Presentatio n/ Demonstrati on

A good presentation is as important as good product. Presentation can be in different forms likeattractive packaging and display, conspicuous placement of the product in window display etc. Presentation also includes the interior decoration of the shop and appearance. Requirements for a good presentation includes

Location of display of the product. Packaging of the product.

Explanation of the feature

Should be able to appeal the prospect.

Demonstrating the product: Demonstration is an exercise to prove the characteristic of the

product. It highlights various attributes of the product such as utility, performance, service etc.
Hence demonstration is imperative and essential for a prospect to make a buying decision.

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Handling Objection

Handling objectives

Objections, quires, doubts are signs of interest from prospects. It can taken as positive manner or on a negative manner. Objections do take place when there is a good presentation. Or else the salesperson may have failed to provide adequate information, or have not demonstrated how the product meets the needs of the prospect IF HE HADNT TOLD ME WHAT HIS OBJECTION WAS, I NEVER WOULD HAVE BEEN ABLE TO HELP!

Closing

This is the last stage of any sales presentation. The main aim of the close is to convince the prospect and overcome the objections to sign the sales order form. The sales person should be alert and use his good judgment to spot an opportunity when the prospect is in a good mood.

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Follow ups

Follow-up

Follow up is as important as other pervious stages. It is this stage where the sales person maintains the clients on a long term. Importance of follow-ups are

Building relationships Updates from clients. Cross selling Re - purchase

Getting reference
Helps in avoid other competitors Updating the market Develops loyal clients. Necessary for customer satisfaction

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Difference between Advertising and Personal Selling

On a broad prospective both advertising and personal selling are the means to communicate with the target customers for its products. But both has its own application and uses to communicate.

Advertising
Marketin g Mix

Personal Selling
Two way communication Direct contact with customer Can convince the customer Has limited reach

One way communication No direct contact with customer

Place

Produc t

Price

Promotio n

Cannot convince the customer Has a large reach

Advertisin g

Public Relatio ns

Persona l Selling

Sales Promotio n

Costly approach
Applies Pull strategy

Less costly approach

Applies Push strategy

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Theories in Personal Selling

AIDAS Theory: This theory is based on the premise that during a sale presentation, the prospect consciously goes through five different stages- Attention, Interest, Desire, Action and Satisfaction.

Attention

Interest

Desire

Action

Satisfaction

Attention: The sales person should attract the prospect to his presentation before he actually goes into the details of the product. Interest: Once the sales person has successfully gained prospects attention, he/she should maintain the interest of the prospect throughout the presentation. Desire: After gaining proper interest the sales person has to create a strong desire in the prospects mind to purchase his product. Action: At this stage a sales person should induce the prospects in to actually buying the product. Satisfaction: Once the prospect has placed an order, the sales person ensures that the prospect carries the impression of having taken the right decision. Example: TATA Nano Mathew Lawrence

Theories in Personal Selling (Continued)

Right set of Circumstances Theory: The advocates of this theory define that all the

circumstances, which led to the sales were appropriate for the sales to have taken place. In other words, if the sales person is successful in securing the prospects attention, maintaining his interest and inducing his desire to buy the product, the sales will result. Moreover, if the sales person is highly skilled, he will take control of the presentation, which would lead to sales

Buying Formula Theory: This theory emphasize on the buyer. This theory emphasizes on

the needs or problems of the buyer. The sales person assist the buyer in finding an appropriate solution to the problem. This solution may be in terms of a product or service.

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Mathew Lawrence