Pradeep,Asst Professor 1

SALES MANAGEMENT:
ITS NATURE, REWARDS, AND
RESPONSIBILITIES

2
 WHAT IS SALES MANAGEMENT?
Sales management is the attainment of sales force goals in an
effective and efficient manner through:

• Planning
• Staffing
• Training
• Leading
• Controlling organizational resources
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INTRODUCTION TO SALES MANAGEMENT
• “Sales management is the attainment of sales force goals in an
effective and efficient manner through planning, training,
leading, and controlling organizational resources”

• Sales management is planning, direction and control of personal

selling. This essentially includes recruiting, selecting, equipping,
assigning, supervising, compensating and motivating the sales
force

• Objectives of Sales Management

 Generate sales and earn revenue
 Providing Profitability
 Improving Market Share
 Improving Corporate Image 4
FIGURE: THE SALES MANAGEMENT PROCESS

Sales Management Functions

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 PLANNING

The conscious, systemic process of making

decisions about goals and activities that an
individual, group, work unit, or organization
will pursue in the future and the use of
resources needed to attain them.
 STAFFING

Activities undertaken to attract,

develop, and maintain effective sales
personnel within an organization.

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 SALES TRAINING

The effort put forth by an employer to provide

the salesperson job-related culture, skills,
knowledge, and attitudes that result in
improved performance in the selling
environment.
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 LEADING

The ability to influence other people toward the attainment of objectives.

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 CONTROLLING

Monitoring sales personnel’s activities, determining

whether the organization is on target toward its goals,
and making corrections as necessary.

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 SALES PERFORMANCE

Sales Management is the attainment of

sales goals in an ethical, efficient, and
effective manner.

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Sales management necessitates several objectives
which are executed by sales managers. There are three
such main objectives exist in the operational part of
the organization:-

1.Sales Volume
2.Contribution to profits
3.Continuous Growth
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DUTIES AND RESPONSIBILITIES OF SALES MANAGER

DETERMINING SALES FORCE OBJECTIVES AND GOALS

FINALIZING SALES FORCE ORGANIZATION, SIZE, TERRITORY, AND QUOTA

FORECASTING AND BUDGETING SALES

SELECTING, RECRUITING AND TRAINING THE SALES FORCE

MOTIVATING AND LEADING THE SALES FORCE

DESIGNING COMPENSATION PLAN AND CONTROL SYSTEMS

DESIGNING CAREER GROWTH PLANS AND BUILDING RELATIONSHIP STRATEGIES WITH KEY
CUSTOMERS
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QUALITIES OF SALES MANAGER
PASSION
CREATIVE
POSITIVE ATTITUDE
LEADERSHIP BY EXAMPLE
MOTIVATION.
CONTINUOUS LEARNING
LOYALTY.
LISTENING AND COMMUNICATION
AGGRESSIVE
PATIENCE
BE TRANSPARENT
AN INNOVATOR AND CREATOR OF NEW IDEAS AND PROMOTION
ASSERTIVENESS: THE ABILITY TO BE FIRM, LEAD THE SALES PROCESS, AND GET ONE’S POINT
ACROSS CONFIDENTLY.
WILLINGNESS TO TAKE RISK: WILLING TO INNOVATE AND TAKE A CHANCE.
SOCIABLE: OUTGOING, FRIENDLY, TALKATIVE, AND INTERESTED IN OTHERS. 14
EMPATHY
EVALUATION OF SALES MANAGEMENT

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A. The beginning era identified as Simple Trade Era,
lasted from the beginning of the marketing concept
to the mid 19th century.

B. In this period whatever products available were

harvested with limited offerings.

C. Exploration and trade in resources was the focus of

the economic activity with products as center of
attraction. 16
• In the next stage the simple trade era was replaced by
the production era, continued until the great
depression.

• In this era importance was given on engineering and

production.

• The primary objective was to only produce product and

sell it to the market in assumption that customers have to
accept it as alternatives were not available.
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1. The sales era lasted between 1920’s and 1940’s,
emphasized on different marketing related aspects
rather than product only.

2. As consumer markets were saturated and competitions

were increasing day by day so it was not easy to sell
product without providing adequate information about
the brand.

3. Here price became one of the most important features to

organizations to get an edge over their rivals.
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 This sub-stage within marketing concept identified as the
relationship marketing concept. The goal of the organization
is to build-up a long-term relationship with customers. The
general focus has changed to lifetime customer value and
customer loyalty. Customer relationship management and data-
mining become the buzzwords in recent marketing scenario.

The second sub-stage within the marketing concept is identified as

social/mobile marketing concept. It summed-up the knowledge
and theories of its predecessor era but focuses on real-time
connections and social exchanges based on build-up relationship
driven by the consumers. In this concept businesses are connected
24/7 to current, future and potential consumers in real time. 19
1. During the post Second World War phase, World
featured economic boom resulted a urgent need of a
separate department for marketing called as Marketing
Department Era.

2. Here organizations experienced that past sales

orientation concept were not sufficient to motivate
consumers as they have more bargaining power in
market place.

3. Business consolidated market related activities like

advertisement, sales promotion, public relation etc into a
consolidated department and concentrating on brand
positioning.
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Major Differences between Selling and Marketing

21 21
 Selling Marketing
• importance on product • importance on consumer needs and
wants
• Views BUSINESS AS A GOODS • Views BUSINESS AS A CONSUMER
PRODUCING PROCESS SATISFYING PROCESS

• Mgt. is PROFIT ORIENTED

• Mgt. is SALES-VOLUME ORIENTED
• PLANNING IS LONG TERM ORIENTED in
• PLANNING IS SHORT TERM terms of tomorrow's market and future
ORIENTED In terms of today ‘s growth
product and mkt
• Company first determines customers
• Company manufactures the product need and wants and then decide on how
first and then decides to sell it to deliver a product to satisfy these
wants
• Cost determines price
• Consumers determine price , price
determines cost 22
 SALES AND MARKETING

 Marketing
 Sales

• Sales starts with seller & is preoccupied all • Marketing starts with the buyer and
the time with the needs of the seller focuses constantly on the needs of the
buyer

• Emphasizes on saleable surplus available

with the company • Emphasizes on identification of market
opportunity

• Seeks to convert products in to cash

• Views business as – goods producing process
• Sales views the customer as the last link in
the business
• Seeks to convert customer needs in to
products
• Views business as – a customer
satisfying process
• Marketing views the customer as the
very purpose of business

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While the role of sales management professionals is multidisciplinary, their
primary responsibilities are:-

1. Setting goals and standards for a sales-force;

2. Planning, budgeting, and organizing sales program to achieve pre-

defined goals;

3. Implementing the program with proper segmentation

and

4. Controlling the overall program and evaluating the results.

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IMPORTANCE TO SALES MANAGEMENT
 Managing the sales force
- compensation, motivation, sales coaching/supervision evaluation/appraisal,
training/development

 Building the sales organization.

 Managing the marketing channels.

 Ensuring growth and developing new accounts.
 Sales communication and reporting.
 Sales coordination and sales controlling including sales expense control.
 Creating and maintaining right image for the company and its products in the
market.
 Co-ordination with marketing management in the areas like, product mix, pricing,
distribution, advertising and sales promotion.
 Building relationship strategies with key customers 25
Setting personal selling objectives

 Formulating sales policies.

 Structuring the sales force.

 Deciding the size of the sales force.

 Designing / Demarcating / developing sales territories.

 Developing the sales forecasts and sales budgets.

 Fixing sales targets for individual sales territories/salesman.

 Creating the sales force
– selection, recruitment, induction/ orientation.
26 26
1. Strategic role in the company with key inputs – long term strategic plans,
forecasting, sales force management, evolving strategies, controlling budget.

2. Member of corporate team to ensure organizational objectives – customer

satisfaction, sales growth & market share.

3. Team leader to achieve sales goals & profits

4. Managing multiple sales channels – personal selling, electronic and

telemarketing

5. Latest CRM technologies

6. Continually understand changes in environment and update strategies 27

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 Sales management involves the execution of the following tasks:
 Setting personal selling objectives
 Formulating sales policies.
 Structuring the sales force.
 Deciding the size of the sales force.
 Designing / Demarcating / developing sales
territories.
 Developing the sales forecasts and sales budgets.
 Fixing sales targets for individual sales territories
/salesman.
 Creating the sales force
– selection, recruitment, induction/ orientation.
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Managing the sales force
- compensation, motivation, sales coaching/supervision
evaluation/appraisal, training/development
 Building the sales organization.
Managing the marketing channels.
Ensuring growth and developing new accounts.
Sales communication and reporting.
Sales coordination and sales controlling including sales
expense control.
Creating and maintaining right image for the company and
its products in the market.
Co-ordination with marketing management in the areas
like, product mix, pricing, distribution, advertising and
sales promotion. 29
Building relationship strategies with key customers
Roles of Sales Manager: Duties and Responsibilities
The sales manager is the most important person in a sales organisation. All
activities are based on his functions and responsibilities. The following are some of
the principal duties of a sales manager:

1. Organising sales research, product research, etc.

2. Getting the best output from the sales force under him.

3. Setting and controlling the targets, territories, sales experiences,

distribution expenses, etc.

4. Advising the company on various media, sales promotion schemes, etc.

5. Monitoring the company’s sales policies.

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 Territory Sales Manager’s Job Responsibilities

To yourself To your company To your customers

Increase basic selling skills. Be proud of your association Work closely with decision-
with your company. takers and influencers in each
Develop management abilities. account.
Maintain the company
Keep pace with changes, standing and standards with Point out the advantages of an
trends and developments in all customers. association with your
your territory. company.
Inform the headquarters and
Study the latest products, your supervisors, through Keep accounts current and
promotion policies and established channels, about up-to-date on all company
procedures. changes and developments in advertising and promotional
your territory. activities.
Be alert to new sales and
merchandising ideas. Be prompt in handling Suggest ideas, methods,
records, reports, techniques and tips that can
correspondence, etc. stimulate sales.
Grow, so that you can Cut selling costs by Inform the customers about the
assume greater economical routing, good use trends in their areas.
of time, planning and greater
responsibilities as awareness of opportunity. Handle complaints effectively and
opportunities permit. to the complete satisfaction of the
complainants.
Check demand and movement
Maintain the appearance of products in the territory. Suggest the best technique for
and goodwill expected of a selling your products to the
Report activities of the customers.
territory sales manager. competitors.
Organize presentations to inform
Analyze your weak and Strive to reach the best goals. and save time.
strong points and then think Make the customers aware of the
about them. Ask for help, when you need it.
changes in the company’s
policies or procedures.
Cooperate with other
departments of the company. Stimulate and maintain
enthusiasm for your products.
Build and maintain goodwill.
Cont…
.
SKILLS OF SALES MANAGER
1. People/Human Skills – ability to work with other people effectively
& also Motivate, lead, communicate and coordinate effectively with
team building

2. Managing Skills – Administrative skills like – planning, organizing,

controlling and decision making

3. Technical skills –
Must have knowledge, analytics ability,competet use of all scientific
tools & equipments & also Training, selling, negotiating, problem-
solving and CRM skills

4. Conceptual & decision skills:

It involves managers thinking & planning abilities.
EMERGING TRENDS IN SALES MANAGEMENT

1. Global perspective
2. Revolution in technology
3. Customer Relationship Management (CRM)
4. Sales force diversity
5. Team selling approach
6. Managing multi channels
7. Ethical & social issues
8. E-selling
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 Customer
&
Orientation
Win Profile
Opportunity Global &
through new Ethical Issues
selling methods

Creating Build
Emerging
Solution through Relationship &
technological Trends in Sales
Customer
innovation Management
Orientation

Situation Identify
Analysis Opportunity

Diversity
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•Global Presence- Being a global, it is very necessary to face stiff challenges from global
companies. Due to differences in culture, language and taste and preferences of customers it is not
easy to adopt global condition. So sales force should have well equipped with improved
technology, strategy and operational to upgrade themselves for international level.

•Innovative technology- Revolution in technology helped companies to communicate with

world-wide customers in ease way. To promote products sales management on behalf of
organization should adopt new innovative technology. So it is important for sales manager to
aware off recent technologies using to get edge in competitions.

•Better Customer Relationship Management (CRM) - Being a successful organization in

today’s competitive world it is necessary to build long-term relationship with customers. It is less
costly to retain an old customer rather than acquiring a new one. So building up long term
relationship will help the organization to know better about needs and wants of the customers as
referral process is very important for the organization. It is not only building the brand image but
also provide favorable condition to operate. 36
•Diversity among Sales-force- There is always exist diversity between sales-force
of an organization. Sales manager has to accommodate himself with people of
different background within his sales-force.

•Team Based Selling Approach- In recent years it is common approach for the
organization to sell the product as a team to build long-term relationship with
potential customers. It is also very useful when technically complex products are
in the process to sell. Generally sales team consists of top management, inbound
and outbound salespersons, technical specialists etc.

•Multi-channel Operations- in today’s competitive world, multi-channel

operation system is very useful to reach out for potential customers in different
ways. It is very handy for i) lowering channel cost, ii) customized selling
37
techniques with broad coverage.
•Ethical and Social Issues- In recent years it is necessary to abide social
and ethical issues such as legal constraints, provide social values to
customers’ expectations and taking part in events related to corporate social
responsibilities. Sales manager has to understand the complex nature of the
society and take necessary steps to deal impartially with various social
groups.

•Professionalism within Sales-force- Sales manager should have

professional attitude to process sales operation. As customers are well
informed and aware about the market condition thoroughly so it is
necessary to gather knowledge, skills and right attitude to motivate them.
Reliability, professionalism, integrity and thorough market knowledge is 38
very necessary for today’s competitive world.
 Personal Selling involves selling through a person-to-
person communications process.

 The emphasis placed on personal selling varies from firm to firm depending on
a variety of factors, including the nature of the product or service being
marketed, size of the organization, and type of the industry.

 Personal selling often plays a dominant role in industrial firms, while in other
firms its role is minimized.

 In an IMC program, personal selling is a partner with, not a substitute for, the
other promotional mix elements.
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 DEFINITIONS OF PERSONAL SELLING

According to Philip Kotler:-

“As face to face interaction with one or
more prospective purchasers for the
purposes of making the sales.”
PersonalSellingcanbedefinedastheprocessofpersontopersoncommun
icationbetweenasalespersonandaprospectivecustomerinwhichthef
ormerlearnsaboutthelatter’sneedsandseekstosatisfythoseneedsbyoff
eringtheprospectivecustomertheopportunitytobuysomethingofvalue,su
chasgoodsoraservice.
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41
No matter what we sell, what matter is how we
sell 42
IF one understands the minds of customer and they
also have thought process similar to customer, then
they are likely to become good SALESMEN

Get into the psychology of the

customer

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OBJECTIVES OF PERSONAL SELLING

1.Creation of Demand
2.Handling Objectives
3.Exploring Hidden Words
4.Educating Customers
5.Building Relationships
6.Providing Feedback 44
WHAT IS PERSONAL SELLING?
Personal selling involves oral conversations, either
by telephone or face-to-face, between salespersons
and prospective customers.
Contribution of personal selling
•Salespeople generate revenue
•Salespeople provide market research and customer feedback
•Salespeople provide solutions to problems
•Salespeople provide expertise and serve as information resources
•Salespeople serve as advocates for the customer when dealing with
the selling organization
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 Advantages:
1. Allowing for two-way interaction
2. Tailoring of the message
3. Lack of distraction
4. Involvement in the decision-process
5. Source of research information

 Disadvantages:
1. Inconsistent messages
2. Sales force/management conflict
3. High cost
4. Poor reach
5. Potential ethical problems
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Advantages Disadvantages

High customer attention High cost

Message is customised Labor intensive
Interactivity Expensive
Persuasive impact Can only reach a limited number of
Potential for development of customers
relationship
Adaptable
Opportunity to close the sale

47
1. Personal selling is face to face activity, customers therefore obtain a
relatively high degree of personal attention.

2. The sales message can be customized

3. The two way nature of sales

4. Good way of getting across large amounts of information about

product.

5. Demonstrate the product

48
6. Frequent meetings help in building long term relationships
1.Cost of employing sales force

2.In addition to basic pay incentives are to be

provided

3.Sales person can only call on one customer at a

time.
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PROSPECTING PREAPPROACH APPROACH
&
QUALIFYING

HANDLING PRESENTATION &

CLOSING
OBJECTIVES DEMONSTRATION

FOLLOW UP

50
Steps In Personal Selling

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Functions of Personal Selling
Personal selling is an oral presentation in face to face conversation with one or
more prospective customers for the purpose of making sales. The main functions of
personal selling are as follows:

1. Provide service to customers (Introduce the product, explain the right use,
Convince them etc.)

2. To sell the product

3. Maintain the sales record

4. Executive Function

5. Develop goodwill

6. Achieve sales target

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Changing Face of Personal Selling
Modern sales approach is based on the following
parameters
1. Value Sharing.
2. Relation Building.
3. Role Playing.
4. Changing Approach.

53
Benefits of personal selling
1. Availability of expertise

2. Early access to relevant market information

3. Availability to be flexible regarding processes, timing

4. Faster, shorter contracts

5. Economies of information sharing

6. Knowledge of other uses or applications

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Steps in Personal Selling
Successful personal selling calls for an integrated approach
devised from the experience of the sales personnel. The
approach comprises the steps as shown in the figure here. Each
of these steps are further described in brief.
Steps in Personal Selling

55
Prospecting
Prospecting is the process of identifying prospective buyers of the
product. A prospect is qualified if he has the authority, need, ability
and eligibility to buy. There are different ways to identify prospects.
Some of the most frequently used methods are described below:
 Acquaintance References
 Cold Calling
 Centre of Influence Method
 Personal Observation Method
 Direct Mail or Telephone Method
 Company’s Records
 Newspapers
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 Retailers
Pre-approach
It emphasizes that the salesman should know, after identifying the
prospect in the prospecting stage, the prospect’s likes and dislikes,
his needs, preferences, habits, nature, behavior, economic and social
status etc.
Significance of Pre-Approach
1. Salesman concentrates only on the prospects and not the
suspects.
2. S/He is able to give a sales presentation more efficiently,
effectively and with confidence.
3. It does not waste the prospect’s time and energy since the
salesman is already aware of the needs and preferences of the
57
prospect.
Approaching

 In this stage the prospect and the salesman come in contact with
each other face to face.

 The salesman has an opportunity to understand and interact with

the prospect in a better way.

 Salesman should put forward his best efforts to make the best use
of this opportunity in getting the attention of the prospect and to
convince him to buy the product.

 Getting the attention of the prospect and persuading him to buy

Cont….

are the two main objectives of a salesman. 58

Key guidelines for successful approach

 Prior Appointment

 Timing

 Command

 Relaxed Atmosphere

 Open Mindedness

 Courtesies

 Effective Presentation

 Follow up Cont….

59
Presentation
 Quick presentation creates a good impression.

 Attractively packaged, decorated and well-organised.

 Should explain the product with its features and price

advantage to the customer in simple and easy terms.

 Customer be shown the kind of quality that he is looking for.

 Helps the salesman to prove the features of the product and

Cont….

emphasise its genuineness. 60

Demonstration
 Demonstration is an exercise to prove the characteristics of the
product.

 It highlights various attributes of the product such as utility,

performance, service and quality.

 It is only during the demonstration that the customer gets an

opportunity to verify the facts about the product.

 Demonstration is imperative and essential for a prospect to make

Cont….

61
a buying decision.
The Close

 This is the last stage of any sales presentation.

 The main aim of the close is to convince the prospect to sign

the order form or to place an order immediately rather than in
the future.

 It is also important that through proper planning, prospecting,

presentation and demonstration the salesman should try to
capture the attention of the prospect and not let the prospect
62
change his mind.
 purpose of sales organizations
to permit the development of specialist

to assure that all necessary activities are performed

to achieve coordination or balance

to define authority

to economize on executive time

63
It refers to the formal in coordination task of
assign territories & establishing flows of
communication & responsibilities of sales
group & individual to serve customer effectively.

It helps in-

1. Enhancing productivity
2. Reducing conflict
3. Improve an individual quality of work 64
IT is a team of individuals working together to
achieve the set sales objectives.
 A well designed organisational structure does the following:
1. Defines jobs - roles, responsibilities and duties of the
personnel
2. Clarifies authority and power at each level.
3. Promotes specialization
4. Avoids duplication of work
5. Facilitates coordination and communication
6. Facilitates adaptation – by being flexible to the changing
environmental needs.
7. Facilitates growth
65
 The factors considered while designing a sales organisation structure
are -
 Nature of the product and services factors: For example the sales
organization structure in case of FMCG products like soaps,
shampoos, toothpaste (the customer base is large and the frequency
of purchases is also high) is very different from selling technical
products like machine tools or computers.

 Organizational related factors: Size, volume, product range,

geographical expanse of business etc influence the sales structure.

 Marketing mix related factors: The type of distribution channel,

pricing policy, marketing communication influence the sales
structure.
 External factors: Nature of competition for instance. 66
Major principles based on which the sales organisation is designed:

Span of control:
It refers to the number of subordinates a manager can effectively manage. A
narrow span of control permits a more effective and close supervision but
results in more number of layers which means higher cost, communication time,
larger gap between the top management and customers. A wider span has
fewer levels of supervision. The process of communication takes shorter time.

Centralisation and Decentralisation:

Centralisation of authority refers to the relative concentration of authority for

decision making especially at top level.

In a highly centralised sales organisation most of the decisions are made at the
corporate level and very few at the field
67
 LINE ORGANIZATION

General Manager

Sales Manager

Assistant sales Assistant sales Assistant sales Assistant sales

Manager Manager Manager Manager
Division 1 Division 2 Division 3 Office

Sales People Sales People Sales People Office Staff

68
 Line Organisation

o Line organisation is the simple and oldest

type of organisation followed in an
organisation. Under line organisation, each
department is generally a complete self-
contained unit.

o A separate person will look after the

activities of the department and he has full
control over the department. 69
Line Organisation

o The same level executives do not give or receive orders

amongst themselves. But they receive orders from their
immediate boss and give orders to their subordinates.
Hence, all the heads are responsible to the general
manager, the general manager, in turn, is responsible to
the shareholders who are the owners.

o This type of organisation is followed in the army on the

same pattern. So, it is called military organisation. Under
type of organisation, the line of authority flows from the top
to bottom vertically. So We
it is called line organisation.
Learn – A Continuous Learning Forum
7070
LINE ORGANIZATION
1. Oldest & simplest structure

2. Widely used in smaller firms or firms with small numbers of selling

personnel, limited geographical area or narrow product line

3. Chain of command run from top to down

4. All executives exercise line authority & each sales person is

responsible to next in the hierarchy

5. No cross communication between persons at same level

6. Greatest use in companies where all sales persons report directly

to the chief sales executives 71
 Suitability
o This type of organisation is suitable to small size business units.

o Where the activities are of routine nature or machine based.

o If the business activities are service mined.

o Where the number of persons working is small

o The business operation is simple in nature.

o A business unit which has straight methods of operations.

72
 LINE ORGANIZATION

 In a pure line organization-

Decision are made faster

Overhead cost are lower
Sales people need to follow the command.

73
Advantages of line organisation Disadvantages of line organisation

1. Simplicity 1. Lack of specification

2. Division of authority and responsibility 2. Over loading

3. Unity of control 3. Lack of initiative

4. Speedy action 4. Scope for favoritism
5. Discipline 5. Dictatorial
6. Economical 6. Limited communication
7. Co-ordination 7. United administration
8. Direct communication 8. Subjective approach
9. Flexibility 9. Instability
10. Lack of co-ordination
74
We Learn – A Continuous Learning Forum
LINE ORGANIZATION
 Advantages:
 Problems of discipline & control are small
 Authority & responsibility are clear
 Saves time in making policy changes
 Development of close relationship between superior &
subordinate
 Administrative expenses are low

 Disadvantages
 Too much dependence on department head
 Insufficient time for policy making & planning
 Inappropriate for rapidly growing firms
 Offers little opportunity to subordinates to acquire management
skills 75
Advantages:
 problems of discipline & control are small
 authority & responsibility are clear
 saves time in making policy changes
 development of close relationship between superior &
subordinate
 administrative expenses are low

Disadvantages
 too much dependence on department head
 insufficient time for policy making & planning
 inappropriate for rapidly growing firms
 offers little opportunity to subordinates to acquire
management skills
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 LINE AND STAFF ORGANIZATION

Head-Marketing

Marketing Research Promotional Customer Service

Sales Manager
Manager Manager Manager

Area Sales Area Sales Area Sales

Manager-1 Manager-1 Manager-1

Salespeople Salespeople Salespeople

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 LINE & STAFF SALES ORGANIZATION

President

Vp marketing

Advertising Gm sales Manager market research

Manager

Director Sales personel Assistant Assistant Sales

Training Director Gm sales To Promotion
Gm sales Manager

District sales manager

Branch sales manager

Sales personnel
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79
 Functions of staff officers

o The staff officers assist the line officers in the planning of

business activity.

o The board of directors frames the policies of the business

on the basis of recommendations given by the staff
officers.

o The managers can get the advice from the staff

officers regarding the selection. ‘training’ placement
and remuneration fixation the personnel
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 Functions of line & staff officers
o The staff officers give regarding the method of improving the
product, the technique of reducing the cost of production,
increasing the profits of the concern.

o The staff officers prescribe the procedures to be followed by

the line officers in the execution of policies and programs.

o Staff officers of a department help the manager in the

preparation of budget of the department.

o the staff officers may be called to solve the administrative

problems encountered by the line officers in general. 81
We Learn – A Continuous Learning Forum
Characteristics:
Specialist staff managers are available for senior marketing / sales
managers.

Staff managers’ role is to assist / advise line managers. Used in

medium and large size organizations

Advantages: Better marketing decisions, superior sales

performance

Disadvantages: High cost and coordination, slower decision

making, conflict may arise if staff managers’ role is not clear 82
 LINE & STAFF SALES ORGANIZATIONS

Found in large & medium-sized firms employing number of sales

persons, selling diversified product lines over wide geographic
areas

provide top sales executives with group of specialists to assist

staff helps in conserving the time & frees executives for other
works

staff specialists increases overall effectiveness of department

staff do not have authority to issue orders or directives

83
Advantages of line and staff
organisation
Facilitates to work faster and better
Specialization is attained
Enables to utilize experience and advice
Officers can take sound advice
New technology or procedure can be
introduced without any dislocation
Promotes efficient functioning of line officers
Very good opportunity is made available to
young person to get training
Disadvantages of line and staff
organisation
If powers are not defined then get confusion
Line officers may reject advice without any
reason for their action
Staff officers are not responsible if favorable
results are not obtained.
Difference between line and staff officers will
defeat the very purpose of specialization
Line officers blame staff officers for
unfavorable results and want to get rewards
for favorable results
84
85
 FUNCTIONAL SALES ORGANISATIONS

Director
of
Sales
Administration

Installation Manager Manager Manager of Manager

Manager of
and of of Dealer and of
Sales Distribution
Service Sales Sales Sales
Supervision Networks
Manager Training Promotion Personnel

Salesperson Salesperson Salesperson Salesperson Salesperson Salesperson

86
 Functional organisation

• Under functional organisation, various specialists are

for various functions performed in an organisation.

• These specialists will attend to the work which is

common to different functions of various departments.
Workers, under functional organisation, receive
instructions from various specialists.

87
 Characteristics of functional organisation

o The work is divided according to specified

functions.

o Authority is given to a specialist to give orders

and instructions in relation to specific function.

o Functional authority has right and power to give

command throughout the line with reference to
his specified area.
88
 Functional organisation
o THE NEED FOR FUNCTIONAL ORGANISATION ARISES OUT OF:

1. THE COMPLEXITY OF MODERN AND LARGE-SCALE

ORGANISATION

2. A DESIRE TO USE THE SPECIALIZATION IN FULL AND;

3. TO AVOID THE WORK-LOAD OF LINE MANAGERS with

complex problems and decision-making
89
We Learn – A Continuous Learning Forum
FUNCTIONAL SALES ORGANIZATION

 each individual in an organization should have few distinctive duties as

possible
 principle of specialization is utilized to its fullest extent
 sales people receive instructions from several executive but at different
aspects of their work

 Advantages
 improved performance

 Disadvantages
 not feasible for small & medium sized firms
 suitable for large firms with stable operations & with opportunity for
considerable division of labour
90
 Advantages and Disadvantages of Functional
Organisation
Advantages of functional organisation Disadvantages of functional organisation
o Benefit of specialization o Complex relationship
o Application of expert knowledge o Discipline
o Reducing the work load o Over specialization
o Efficiency o Ineffective co-ordination
o Adequate supervision o Speed of action
o Relief to line executive o Centralization
o Co-operation o Lack of responsibility
o Economy o Increasing the overhead
o Flexibility expenses
o Mass production o Poor administration
o Suitability of functional 91
We Learn – Aorganisation
Continuous Learning Forum
 MERIT & DEMERIT
 MERITS:
 Specialization at different levels.
 Flexibility of increasing and decreasing of departments as per needs.
 Quick decision making.
 Easy co-ordination between sub functions
 Economical

 DEMERITS:
 (1) Products do not get due attention.
 (2) Delay because of sub division of departments.
 (3) Problem of co-ordination due to increased responsibility of general manager.
 (4) Conflicts between departments.
 (5) Effectiveness of organization is badly affected due to malfunctioning of departments.
92
GEOGRAPHIC SPECIALIZATION

Head-Marketing

Marketing Research General Sales Customer Service

Manager Manager Manager
Promotion
Manager

Branch Sales Branch Sales Branch Sales Branch Sales

Manager-1 Manager-2 Manager-3 Manager-4

Salespeople Salespeople Salespeople Salespeople

93
Characteristics:
salespeople, assigned geographic areas, are responsible for all selling
activities to all customers within assigned areas. Branch sales
managers adjust marketing plan to local needs

Advantages: Better market coverage and customer service, more

control over sales force, quick response to local conditions &
competition

Disadvantages: Limited specialization of marketing tasks. Hence, it is

combined with product / market sales organization
94
PRODUCT SPECIALIZATION

Head-Marketing

Marketing Research General Promotion Sales Training

Manager Sales Manager Manager Manager

Area Sales Managers – Area Sales Managers –

Product Group ‘A’ Product Group ‘B’

Salespeople – Salespeople –
Product Gr. ‘A’ Product Gr. ‘B’

Fig. ‘x’ Sales Organisation with product specialised salesforce

95
ADVANTAGE:
EACH PRODUCT GETS SPECIALIZED ATTENTION FROM THE SALES FORCE

DISADVANTAGE:
SOMETIMES, MORE SALESPEOPLE CONTACT THE SAME CUSTOMER, RESULTING IN
CUSTOMER DISSATISFACTION AND HIGHER COST

96
AIDAS

“Right set of circumstances”

“Buying Formula”

“Behavioral Equation” 97
98
 Most campaigns rely on a mix of visual stimuli
Typography , Color, Layout , Size , Celebrity , model etc.

 Text is then employed to further grab attention, enticing the reader to

continue reading in search of more information. That is why the first
paragraph of a sales letter, direct mail piece or ad needs to be the
strongest.

· Have you ever...? · Are you noticing...? · Can you see...?

 Presenting a shocking fact or statistic that identifies a problem 99

 Raise customer interest by focusing on and demonstrating advantages and benefits .

 Keep them engaged.

 Establish a need, create a bond .

 Being able to establish a need in the mind of a consumer is the cornerstone of an

effective ad campaign.

 A demonstration or illustration can help the recipients to further identify with the
problem and want to actively seek possible solutions

 Hinting at something special to keep their interest in what you have to say.
100
 Convince customers that they want and desire the product or service and
that it will satisfy their needs.

 This is often accomplished through the problem-solution technique.

 Desire is like a fire, and can be stoked by many methods, such as: (Scarcity
principle), how other people approve of the item etc.

 There are certain barriers here - certain reservations in the mind of

customers. We have to overcome them. We have to convince by giving
evidence, testimonials, endorsements, and facts and figures 101
 You've attracted their attention, built their interest and fanned their desire.

 Lead customers towards taking action and/or purchasing.

 A call to action should be in every single ad, regardless of format. Whether it is

a special offer, a free gift or time-limited discount.

 Whether it's going to your website, picking up the phone or sending an order,
the last section of advertisement needs to contain a powerful call to action.

102
 Before the films are to be released, they start with airing their promos on television.
Later they use the outdoor and the press to create more AWARENESS AND
ATTENTION. The producers bank on the star cast, music, locations and the crew of
the film to catch the eyes of the public.

 To create INTEREST among the consumers, they then release the music and also
introduce the theme of the film. The purchase of the music cassettes and CDs is an
indication of the interest generated by their efforts.

 Later at the DESIRE stage, along with continuous promos on television, press and
hoardings, they have promotions through contests and movie tickets as prizes. They
also have interactive programs like the star cast of the film visiting different music
shops and creating desire among the audience.

 After all these promos and activities, if the film is successful in creating interest and
desire among the people, there is immediate ACTION which is seen through
103
purchases of tickets at movie halls.
Prospect goes through Five Stages I.e Attention, Interest,
Desire, Action and Satisfaction
Sales Presentation must be structured in a manner that
that leads the prospect in the right sequence

Securing Attention:
Receptive State of mind
Sales Person to have a reason to conduct the interview
 Conversation openers
Remarks about the Prospect 104
 Gaining Interest:
 Intensify the prospect's attention
 Searching the most effective selling appeal
 Questions to clarify attitudes and feelings towards the
product

 Kindling Desire:
 Kindle the prospect's desire to Ready-to-buy point
 Conversation running along the main line towards the
sale
 Taking care of External interruptions and Objection
handling 105
Inducing Actions:
Closing the sales buy judging the prospects reaction
Straightforwardly asking for the order vis-à-vis
dropping the hints

Building Satisfactions:
Reassuring that the decision was right
Customer to have an impression that salesperson
merely helped in deciding
106
 Everything was right for the sale
 Situation Response Theory
 Particular circumstance in a selling situation cause the prospect
to respond in a particular way
 Salesperson needs to present PROPER STIMULI or APPEALS so
that desired response is resulted
 Seller oriented Theory
 External Factors vis-à-vis Internal Factors
 Focus on the external factors at the expense of Internal Factors

107
Emphasizes the Buyer’s side of the Buyer Seller Dyad

Buyer’s needs or problems receive the major

attention and the salesperson’s role is to find solution

Buying formula is a schematic representation of a

group of responses arranged in a psychological
sequence

Emphasizes the Prospect’s responses 108

Simplest Model:
Need (Problem) – Solution – Purchase
Outcome of a purchase affects the chance that a
continuing relationship will develop between buyer
and seller

Need (Problem) – Solution – Purchase- Satisfaction

109
Need is always satisfied by a solution in terms of
product or services accompanied by respective Trade
or Brand Name.

Need (Problem) – Solution – Product or Service/

Trade or Brand Name - Purchase- Satisfaction
To ensure purchase, the product or service & the Trade
Name must be considered adequate and the buyer
must experience feeling of anticipated satisfaction
110
 Buying Behavior in terms of the purchasing process viewed as phases
of learning process

 Four Essential Elements:

 Drives:Strong Internal Stimuli that impel the buyer’s action
 Innate Drives
 Learned Drives

 Cues:Stimuli that will determine when buyer will respond

 Triggering Cues
 Non Triggering Cues
111
 WHAT IS A SALES TERRITORY?

A sales territory is composed of

a group of customers or a
geographic area assigned to a
salesperson.