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Sales Management

Dr. Bhumija Chouhan

Introduction
According to AMA - Sales management is the planning, directing and controlling of personal selling, including assigning recruiting, selecting, equipping, routing, supervising, paying and motivating as these tasks apply to the personal data force. According to B.R. Canfield Sales management is an activity that involves the direction and control of salesman, sales planning, budgeting, policy making, coordination of market research, advertisement, budgeting, policy making, sales promotion and the integration of all business activities that contribute to the increased sales and profits.

Cont.
According to William J. Stanton Sales management planning, implementing and evaluating sales force activities within the guidelines set by companys strategic marketing planning. According to Spiro, Stanton and Rich Sales management is the management of the personal selling effort in an organisation. Sales management is the management of the sales force and personal selling efforts to achieve desired sales objectives. The planning, organizing, leading and controlling of personal contact program designed to achieve the sales and profit objectives of the firm.

Sales Management Trends


FROM TRANSACTION INDIVIDUALS SALES VOLUME TO RELATIONSHIP TEAMS SALES PRODUCTIVITY

MANAGEMENT
LOCAL

LEADERSHIP
GLOBAL

Cont.
Functions:
Sales Force Staffing Sales Planning (objectives, activities, budget, territories, quotes) Sales Program Designing Sales Performance Evaluation

Cont.
Objectives:
Establishing the distribution set-up Maximization of sales Maximization of profits Increase of market share Strengthening public relation and corporate image Continuing Growth

Sales Management Model


Describing Personal selling function

Defining the strategic Role of the sales function

Developing the sales force

Directing the sales force

Determining Sales force Effectiveness & performance

Role of Sales Manager

Execution of CEOs Vision

Planning sales policy (Short/Long term)

Sales Team Management Organizing

Control & direction

Forecasting, budgeting and planning sales operation

Adv. Policy

Recruitment Selecting Inducting Training Placing, compensating

Distribution
Marketing Mix Marketing Strategies

Coordination through objective setting & evaluation of system

Nature of Sales Management


The basic function and role of selling is to generate sales and earn revenue for an organization. In present time selling approach also highlights good customer relationship, managing the profitability of a firm, managing customer complaints and building brand value in the eyes of the customers. Following can be the nature of sales management: Strategic Function Consumer welfare Development of human resource Customer oriented Specialized function Functional area Responsible

I. II. III. IV. V. VI. VII.

Cont.
VIII. IX. X. XI. Sub-system of Marketing Synonymous with Marketing Management Challenging profession Goals

Emerging Trends in sales Management: Global Perspective Revolution in Technology Customer Relationship Management (CRM) Sales Force Diversity

Team Selling Approach Managing Multi-Chanel Ethical and Social Issues Sales Professionalism

Selling Process
Personal selling is all about locating a potential buyer, making an effective sales pitch and getting the order. There are many different ways to go about making a sale, since every salesperson has his unique manner of attaining the objectives The personal selling process is a logical sequence of five steps:

Prospecting

Preapproach

Approach

Post Sale Service

Presentation

Prospecting

Identifying: Profiles Leads Records Qualifying: Capability Willingness

Preapproach

Information Habits Preferences

Approach

Opening line Active Listening Mannerism

Presentation

AIDA: Attention Interest Desire Action

Post sales service

Reduce Dissonance Build Goodwill

Theories of Personal Selling


Theories of selling have been developed on basis of experimental knowledge accumulated from years of dealing with the market and customers rather than on a systematic body of knowledge. Theories are as follows: AIDAS Theory of Selling Right set of Circumstance Buying Formula Theory Behavioral Equation Theory Buyer seller Dyad

1. 2. 3. 4. 5.

AIDAS THEORY
It is after the initials of five words used to express the stages through which the prospects mind passes during buying A- Attention I- Interest D- desire A- Action S Satisfaction. Securing Attention: It is the Goal is to put the prospect into a receptive state of mind If the salesperson has prior appointment then this phase does not offer any problem

The salesperson needs an ample supply of conversation openers Favorable first Impressions comprise of proper attire, neatness, friendliness and a genuine smile. The salesperson must have sense of direction, knowledge, listening ability and sense of humor to carry out the task successfully. Gaining Interest: It is the second goal which intensify the prospects attention so that it evolves into strong interest Samples or flipcharts, product portfolios, visual aids, catalogues may be used Main aim of this phase is to search out the selling appeal that is most likely to be effective Sometimes the prospect drops a hint which may be used in selecting the best appeal. Sales person may ask probing question to find that hint

Kindling Desire: It is the third goal which kindles the prospects desire to make ready the buyer to buy product. The development of sales obstacles, prospects objections, external interruptions, digressive remarks can sidetrack the presentation. Obstacles must be faced and ways must be found out to get around them. Objections must be answered to the

prospects satisfaction.

Inducing Actions: It means achieving the desired action. It consists of obtaining the customer agreement to buy after meeting customers objection. If the presentation has been perfect, the prospect is ready to act- i.e. to buy Experienced sales person rarely try for a close until they are fully positive that the prospect is fully convinced. It is up to the salesman to sense when the time is right. Some salesman never ask for yes or no, they ask for the order straightforwardly

Building Satisfaction: It is the stage after the customer places the order, it is the responsibility of the salesman to reassure the customer that his decision was right. He should thank the customer and make certain that the order is filled as written and following up the promises made.

RIGHT SET OF CIRCUMSTANCES THEORY : Also called as Situation-Response Theory. According to which the salesperson should give proper stimuli to secure the attention of the prospect and should mould the situation. In this theory particular circumstances are prevailing in a given selling situation then it can causes the prospect to respond in a predictable way. This theory is a seller oriented theory which stresses the importance of the salesperson controlling the situation, it does not handle the problem of influencing factors internal to the prospect and fails to assign appropriate weight to the response side of the situation response interaction.

BUYING FORMULA THEORY: The approach to this theory is based on findings from behavioral sciences and is focused on the buyer side of the buyer seller dyad. According to this theory, the buyers needs or problems receive major attention and the salespersons role is to help the buyer find solution. According to the theory mental processes involved in a purchase are interested in long term relationship which includes
Need Solution Purchase Satisfaction/ Dissatisfaction

BEHAVIOURAL EQUATION THEORY: This theory explains buying Behavior in terms of purchasing Decision process viewed as phases of learning process. This theory Is based on four elements (i) Drive, (ii) Cue, (iii) Response, (iv) Reinforcement Drives -strong internal stimuli that impels buyers response. They are of 2 kinds *Innate Drivespsychological needs e.g.. hunger, pain *Learned Drivesstriving for social status & approval, acquired when innate drives satisfied

Cues - are weak stimuli that determine when the buyer will respond *Triggering cues- activate the decision process for any purchase *Non triggering cues- influence the decision process but dont activate it a. Product cues-external stimuli received from the product directly eg. package, price b. Informational cues- external stimuli providing information, can come from advertising etc. Response -What the buyer does Reinforcement - is any event that strengthens the buyers tendency to make a particular response Equation according To Howard is- B=P*D*K*V Where, B=Response P= predisposition (force of habit)

D=Present drive level (amount of motivation) K=Incentive potential (value of the product or potential satisfaction) V=Intensity of all the cues.

Buyer Seller Dyad:


1.Dyad is a situation where two people interact. 2. The rest of a dyad is salesperson and the prospect interacting with each other constitute a buyer-seller dyad. 3. A positive conversation between seller and buyer has a greater impact as compared to honesty, follow-up, product knowledge, proper presentation etc.

4. According to Henry Tosi behavioral factors of the salesperson are most influencing factors in buyer-seller dyad relationship. Emerging Patterns of Personal Selling : Team Selling MIS (Market Information System) Direct Marketing Direct Mail Tele-marketing Relationship selling System Selling

Objectives of Personal Selling:


I.
II. III. IV. V.

VI.

To keep customers informed to changes in the product line To assist customers in selling the product line To do entire sales job To serve the existing customers To secure and maintain customers co-operation in stocking and promoting the product line To handle the sales personnel of middlemen

VII.

To collect and report market information on interested maters to company management VIII. To provide advice and assistance to middlemen whenever needed IX. To provide technical advice and assistance to customers X. To search out and obtain new customers.

Short term objectives of Personal selling:


I.
II. III. IV.

To keep the personal selling expenses within specified limits To secure and retain a specified share of the market To obtain a specified sales volume To obtain sales volume in ways that contribute to profit objectives by selling proper mix of products.