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 Sales management
o
m
.c
a
m
a
n
Theyonly business function that
d
generates revenue.
u
t
S
1
sales management

 Planning, direction and control

m of personal
o selecting,
selling including recruiting,
.c
training, equipping, assigning, supervising,
a
compensating and motivating as these
m
tasks apply to athe personal sales force.
n
y
d
u
t
S
2
 Sales management

 Management of the personal selling task.

m
o selling’ or ‘non-
 Is there anything like ‘impersonal
personal’ selling? .c
a
 Selling is an exchange transaction. Exchange of
Product or service for
m
amoney
n or the earnings of an
 Money is the revenue
enterprise often
y
d called ‘turnover’ or ‘top line’
u is the only revenue generating
 Sales therefore
t
functionSin an enterprise.
3
Objectives of sales
management
 3 general underlying objectives:
m
1. SALES VOLUME o
.c
2. PROFITS a
3. GROWTH m
a
Sales – cost ofnsales = gross margin.
y
d
u
Grosstmargin – expenses =net profit.
S
4
Sales management: evolution

 Industrial Revolution – 1760

m
 Small home industries – o
Large scale
manufacturing –marketing.c – sales and
sales support a
 Concept of hunters
m
a and farmers
 The modernn day sales manager is both
y
an administrator in-charge of personal
d
sellinguactivity and a member of the
groupt that makes marketing decisions of
S
all types.
5
The salesman

 …..they make more noise m

and more
o correct
mistakes, create more cheer,
more errors, adjust more.c differences,
a
spread more gossip, hear more
m
grievances, pacify
a more belligerence and
waste more n time under pressure, all
y
without dloosing their temper, than any
other u
t class of professionals –including
S
politicians.
6
The salesman

 …they live in hotels, cabs and tents on

trains, buses, eat all kinds
m
o of food, drink
.c and bad- sleep
all kinds of liquids –good
a business, with
before, during and after
no sympathy from mthe office.
a
 They draw and n spend more money with
less effort,ythey come at the most
d time, under the slightest
inopportune
u
pretext,
t ask more personal questions.
S
 Yet they are a power in society…
7
The salesman

 With all their faults, they keep

m the wheels
of commerce turning, andothe currents of
.c More cannot
human emotions running.
a
be said any man. Be careful whom you
m
call a salesman,
a lest you flatter him.
n in Ziglar on Selling
-Donald Benenson
y
d
u
t
S
8
 Sales Management

m
“QUALITIES THAT LEAD TO EFFECTIVE SALES
o MANAGEMENT
. c
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
a
SALES PERSON” m
a
n
y
d
u
t
S
Sales organization

 With various tasks requiredmto be

performed the enterpriseohad to create a
.cwork is done.
structure to ensure that
(the Sears story)
a
m
a
 Principles of structure: authority,
nperformance, support/co-
responsibility,
y
d
ordinate.
u
t
S
10
Sales organization

 Concept of organization: Group

m of
oto achieve a
individuals working jointly
.c formal and
defined goal and bearing
a
informal relations with one another. An
m
organization isaoriented towards and a
co-operativenendeavor and a structure of
y
human relationships.
d
u
t
S
11
Purpose of organization

 Eliminate waste of effort m

 Minimize friction o
.c
 Maximize co-operation
a
m of specialists
 Permit development
a
 Ensure that n
all activities get done
y
 Achieved co-ordination/balance
 Define
u
t authority
S
 Fix responsibility
12
Types of organization
structures
 Line organization: line managers
m
perform sales and sales omanagement
activities. .c
a
 Line and staff organization:
m Staff
managers have aadvisory or support
ne.g.Market research
responsibility.
y
manager, d Training manager.They are not
u
directly
t responsible for achieving sales
S
targets.
13
Organization structures

 Functional organization: m
focus is on
o
the principle of specialization. Each
.c responsibility
specialist has a functional
a
and are permitted to direct and control
m
the salespersona thru their immediate
superior. n
y
d
u
t
S
14
Organization structure

 Horizontal structure. m
 Specialised structure: o
.c
Geographical; a
Product; m
a
Market or n
customer;
y
Combination
d of specialised structures.
u
t
S
15
 Line Sales Organization structure

Head –Marketing

Sales Manager m
o
.c
Area Sales
a
Area Sales Area Sales
Mgr
Area Sales Mgr m Mgr Mgr
a
n
Sales Force y
Sales Force Sales Force Sales Force
d
u
tClear authority & Responsibility

S Quick response & Decision, Low Cost
 Weak on marketing inputs
 Sales manager controlled 16
 Functional Sales Organization

Head -Marketing

Marketing
Sales
m
Services o
Promotion Brand Market Research

.c
Area Sales
Managers
a
m
a
Sales Force n
y
d
u  Administrative Simplicity
t  Access to Specialists
S  Multiple reporting
 HOD is Pressures to co-ordinate
17
 Operations team
Research & Design team
Production
Customer Research
QA
Product / Service design
Engineering Systems

m
o
.c
Planning Team
Strategy
Financea
m
HR
a COO
n
y
Customer Support u
d
team
Customer Satisfaction
teams
Service t Sales & Marketing
S
Training Pricing & Promotion
Information Channels
Logistics
18
Sales relation with marketing
activities
 Sales &Advertising: both stimulate
demand. They need to be m blended.
Salespersons can improve o advertising
. c
effectiveness. Advertising needs to
a
support sales where
m and when they
need it most. a
n
 Sales & Marketing
y information: data is
needed d for analysis of sales problems,
u
for determining
t sales potential. Raw data
is S
collected by sales people.
19
relationships

 Sales and service: contributes to

strategy success.
m
o
.c minimizes stock
 Sales and distribution:
a inventory control;
out situation; improves
helps sales to a m on demand
focus
generation. n
y
 Sales & Production:
d
 Salesu and R&D
t
 Sales
S &Finance
20
 SALES PLANNING
a managerial function
 EXISTING BUSINESS m
LONG RANGE PLAN o PROJECTIONS
3 TO 5 YEAR

ANNUAL OPERATING PLAN . c

REVISED YEAR TO YEAR
a
SEGMENTWISE PLAN mPAST TREND
a
GEOGRAPHICAL PLAN n PREVIOUS YEAR SALES
y
CUSTOMERWISE PLAN d CURRENT YEAR ACHIEVEMENT
u
PLAN BY VALUE t NEXT YEAR PLANS
S
PLAN BY VOLUME ASSUMPTIONS
21
PLANNING FOCUS AREAS:

• PROFITABILITY IMPROVEMENT

 A REGION OR TERRITORY CEASES TO

CONTRIBUTE m
o
. c
 DISCONTINUATION OF SALES TO AN ACCOUNT
a
m
DE-EMPHASISING PRODUCTS

a
 ACCEPTING y
n
A PRIVATE BRAND ORDER
d
 u BETWEEN BUDGET AND ACTUAL
VARIANCE
t
SALES
S
22
SALES PLANNING
 NEW BUSINESS m
o
.c
 VISION MISSION
a GOALS
m
a
 STRATEGYn
y
d
u
 *ACTION PLANS
t
S
23
Key Deliverables of the Sales
function
 Planning m
 Organizing o
.c
 Training a
 Motivating m
a
 Controlling n
y
 Leadingd
u
t
S
24
Sales planning

 Forecasting a key planningm

tool
PRODUCT LEVEL – o
.c
total sales - a
industry sales m
a
company sales n
y
product line
d sales
product
u
t variant sales
S
25
 Time period forecast

m
 Long Range o
 Medium range .c
a
 Short term (range) m
a
n
y
d
u
t
S
26
Planning process

 Sales plan
m
o
 Capacity plan .c
a
m
 Production plan a
n
y
 Cash flowdplan
u
t
S
 Procurement plan Human resource plan

27
Sales forecast

 Why forecast? m
o in sales is
One of the keys to success
. c
knowing where customers
a are located
and being able tompredict how much they
will buy. a
n
y
d
u
t
S
28
 Sales forecasting;
Industry estimates
• Objective definition m
o
• .c
Identifying critical factors (assumptions)
a
m
• Selecting method ofaforecasting
n
y
• Collecting, analysing,
d interpreting data.
u
t
• S predictions.
Concluding
29
Geographic Area forecast

 Nation m
o )
 Region ( REGION OR ZONE
.c
 Territory ( BRANCHa/ DISTRICT )
 Customer m
a
n
y
d
u
t
S
30
Forecasting Approaches

 Top - down / Break –down

mapproach
An SBU level forecast broken o down to
. c
region, district, territory,
a salesperson and
individual customerm sales quotas
 Bottom –up / a Build – up approach
n
y
Individual customer to branch to zone to
d
company
u level forecast
t
S
31
Methods of sales forecast

 Qualitative methods: m
Executive opinion o
.c
Delphi method – prediction
a by a panel
m – ‘grass roots’
Sales force composite
a
approach. n
y –controlled or simulated
Test marketing
d
u
t
S
32
Sales forecast methods

 Quantitative methods: m
Moving averages o
.c
Exponential smoothing
a
manalysis
Regression
a
n
Econometric analysis
y
d
u
t
S
33
Selling situations

 Customer’s intention and expectation are

m
specific. (insurance, mobile service)
o
 Customer is contacted over .cphone
 a
Customer is an organizational buyer
Customer seeking
m or solution
service
 a
 Customer in an retail store
Cold calling
y
 d situation
 u
Pharmaceutical selling
t
 S
Creative selling ( ad.campaign)

34
The sales budget

 To the sales department, the

mbudget is a
o It involves
blue print for making sales.
.c
money invested in distribution facilities,
a
promotion efforts, and sales personnel. It
m
is the foundation
a on which to plan sales
n the means of achieving
objectives and
y
them during
d the coming year.
u
t
S
35
Sales budget
 A budget is a quantitative expression of plans.
Most well managed enterprises use a budget which
is a comprehensive and coordinated
m plan for the
o
operations and resources.c of the enterprise.
a process
 It is a formal and intricate
 Approaches are eitherm incremental or zero based.
a
 In a volatile economic
n climate organizations
y
estimate optimistic, realistic and pessimistic
scenarios. d
u
t
S
36
Sales budget
Critical factors considered:
1. past trends m
2. Sales force estimatesco
.
3. Trade prospects a
4. Present scenario m
a
5. Customers:nexisting and potential
y
d
6. Government policies
u
t
7. Industry environment
S
37
Number of sales people

 Decision on the size of them

sales force is
very complicated because o structure of
c territory, the
the customers vary in.each
a
level of competition varies across
m
territories, the a
connectivity for travel
varies etc. n
y
 There are d 3 generally accepted
u
approaches: affordability, incremental
t
S workload methods.
and
38
Sales territories

 Definition : A sales territorym

consists of
o
existing and potential customers
.c
assigned to a sales person. The territory
a
may or may not have geographic
m
boundaries. a
n
y
d
u
t
S
39
Reasons for territories

 Increase / improve customer

mcoverage
 Control selling expenseso
.c
 Effective evaluationaof salesman’s
performance. m
a
 improve customer
n relations
y
d
u
t
S
40
Territory design
 Main procedural steps:
1. Selection of a basic geographical control
m
unit o
2. Determination of sales .c potential present in
each unit a
m
3. Combining the a basic units into tentative
territories n
y
4. Adjust d for differences in coverage difficulty
and u readjust the tentative territories ( build
up t/ break down method )
S
41
Territory design

 Build up method: m
Decide call frequency o
.c in the unit
Calculate total no of calls
a
Estimate workload capacity of salesman
m
Make tentativeaterritories
nterritories
Develop final
y
d
u
t
S
42
Territory design

 Break down method: m

Estimate company saleso potential for
total market. .c
a
Forecast sales potential for each control
m
unit. a
n expected from each
Estimate sales
y
salesman.
d
Make u
t tentative territories.
S
Develop final territories.
43
Routing Scheduling and
control
 Reasons / advantages: m
o
 Maintain lines of communication
.c
 Improve territory coverage
a
 Minimize wastedm
time
a
n of sales force movement
 Closer scrutiny
y
 Journeyd plans for improving customer
u
satisfaction
t
S
44
Quotas

 Quotas are quantitative goals assigned

to individual sales persons
m
o for a
.c
specified period of time.
a used tools in
 One of the most widely
sales management. m
a
 Should not ben confused with sales
ysales forecast.
potentialdor
 Quotasu may be set equal to ,above or
belowt the sales forecast.
S
45
Why Quotas ?

 To help management motivate

m sales
people. o
. c
 To direct sales people where to put there
a
efforts. m
a
 To provide standards of performance
n
evaluationy
d
u
t
S
46
Types of Quotas

 Sales volume Quotas : Rupee

m volume /
Unit volume o
. c
 Profit based Quotas: contribution / gross
a
margin m
acalls per day; sales
 Activity Quotas:
n
meetings;y product demos; ( efforts =
results.)d
u
t
 Expense Quotas
S
47
QUOTA SETTING
MECHANISM
 S-specific m
 M-measurable o
.c
 A-achievable a
 R-realistic m
a
 T-time boundn
y
d
u
t
S
48
What is Motivation?? m
o
. c
 Drive to initiate an
aaction.
m
a
 The intensity
n of effort in an action
y
d
u
 Thetpersistence of effort over
S
49
Why motivation

 Frequent rejection m
o
 Physical separation.cfrom company
a
support m
a
 Direct influence
n on quality of sales
y
presentation
d
u
t influence on performance
 Indirect
S
50
Sales force motivation

 “the desire to make an effort

mto fulfill a
need is motivation” o
. c
 Motivation includes three dimensions:
a
Direction, Intensity
m and persistence.
 Motivation may aalso be Intrinsic or
n
extrinsic y
d
 Maslow’s
u hierarchy of needs:
t
S
51
Maslow’s theory
Self
Actualisation
m
o
.c
Esteem needs
a
mneeds
Social
a
nSafety needs
y
d
u Physiological needs
t Food, clothing, shelter, health
S care

52
MASLOW’S HIERARCHY OF NEEDS
Intense job challenge, full potential, full
expression, creative expansion.

m
Achievement, respect, recognition,
responsi-
o
.c
bility, prestige, independence, attention,
importance, appreciation.
a
m
Belonging, acceptance, love, affection,
afamily
n and group acceptance, friendships.
y
d Security, stability, dependency, protection,
u need for structure, order, law, tenure,
t pension,
S insurance.

Hunger, thirst, reproduction, shelter,

clothing, 53

air, rest.
Frederick Herzberg theory

 “Two factor theory” of motivation

m
o job context
 Hygiene ,maintenance, or
. c
factors.( dis satisfiers
a )
 Achievement, challenge,
m advancement,
a (satisfiers )
growth in thenjob.
y
d
u
t
S
54
 SELLING

m WORD SELJE
THE WORD SELL IS DERIVED FROM A Norwegian
o
WHICH MEANS TO SERVE
.c
a
m MUST UNDERSTAND THEIR
TO SERVE YOUR PROSPECTS YOU
NEEDS.
a
n
y
WHAT THEY NEEDu
d
PEOPLE INVARIABLY BUY WHAT THEY WANT, EVEN ABOVE

t
S
55
 The sales process

 Process: a sequential series

mof decisions
and or actions. o
BUYING PROCESS .cSELLING PROCESS
a
NEED
m PREPARE
SEARCH
IDENTIFY
a FOCUS
DEFINE
ISOLATE n PROPOSE/PRESENT
SELECT y HANDLE OBJECTIONS
BUY d CLOSE THE SALE
CONSUME u FOLLOW UP
t
S
56
The sales process

1. Prospecting & Qualifyingm

2. Pre approach (pre call o
planning )
.c
3. Approach a
4. Presentation &mDemonstration
a
5. Overcoming n Objections
y
6. Trial close
d / Closing the sale
u
Follow
7. t –up and Service.
S
57
SELLING PROCESS
the Ziglar method
 Focus on Prospects NEEDS
mand
WANTS. o
. c
 Sell by design, not by chance.
a
Follow a proven 4 mstep formula:
a
NEED ANALYSIS n
y
NEED AWARENESS
d
u
NEEDtSOLUTION
NEEDS SATISFACTION
58
Prospecting

 Process of identifying potential

m buyers.
o probability
 A prospect has a reasonable
. c
of buying ,has sufficient
a need to justify a
profitable sale ,has
m financial resources to
buy and can be aclassified as ‘eligible to
buy’ n
y
MONEY? dAUTHORITY? DESIRE?
u
t
S
59
Locating prospects

Lead generation – a three step process.

m
o :what it
1. Defining the target market
c
wants; what it buys;.where and when it
ahow it buys;
buys; what it buys;
m
2. Using communication tools to gather
a
n
leads –Advertising, Direct mail,
y
Telemarketing, Trade shows, buying
d
datau
t
3. Qualifying the Leads.
S
60
 Selling first time to Prospects
(pre sale planning)

m
 Adequate knowledge of the productoto be sold, compan
.c
being represented, the market competition ,category or
a techniques.
segment of customers and selling
m
 Product knowledge: Evolution-Features-Benefits-
a
Uniqueness-Price n
 Company knowledge: yHistory-Values-Achievements-
d
Management-Policies
u
t
S
61
Pre sale plan

 Competitors knowledge :structure-share-

m
strategy-systems. o
. c
 Customer knowledge :attitudes-
a
preferences- behavioural
m habits
a :
 Selling techniques
n
y
d
u
t
S
62
Pre approach planning

 Focus on understanding customer needs and

characteristics and preparing am proposal on
how the product or servicec
o
offered can satisfy
the need. .
a
 Steps involved are:
m
a
Determining call objectives.
Development of n customer profile.
y
Determine customer benefits.
d
uthe flow and content of the
Determine
t
presentation.
S
63
Understanding buyer’s needs

 Situational questions: questions about

prospect’s current situation. (who mwill decide? is
it the first time ? Changingc
o
source ?
 Problem identification
.
question: Questions to
a
uncover problems, difficulties or needs (
problems on quality,
m
a delivery ?)
 Problem impact n questions: questions to make
y the impact of the problem and
the buyer realise
the need d to solve it.( what will be the impact on
costst,u on customer satisfaction ?)
S
64
 Solution value questionsm
:questions to
help the buyer asses theovalue or
.c ( for x benefit
usefulness of the solution
a
how much would you save ?
m
 Confirmation a questions: (how would
nsystem help?)
an error free
y
d
u
t
S
65
Need awareness

 At this stage you need to THINK

m
o should both
 Prospect and Salesperson
. c
be aware of the need.
a (remove blind
spots) m
a
n
y
d
u
t
S
66
Need solution

 Present your product m

o
 Time to stop asking questions and start
. c
providing solutions.a
 People don’t buym products, they buy
a does for them.
what the product
n
y
d
u
t
S
67
Questions are the answer

 Thinking vs. feeling questions.

m
 When you learn how theo
customer feels
. c
you are more likely a
to find out what the
person thinks.( the
m seat belt case)
 Tying emotion ato logic.
n
y
d
u
t
S
68
The questioning process

 Three basic types of questions

m enable us
to discover the needs of o
our potential
customers. .c
a
 1 The Open Door
st
m Questions.-allows the
a
prospect the freedom to go where ever
n“who, what where ,when,
they like. the
y
how and dwhy” questions
u
t
S
69
Questioning …

 The closed door question:

m“would you
tell me more”; “what dooyou mean
by…Answers to these .cgive you
a
information to helping the prospect
m
and building trust.
a
n
y
d
u
t
S
70
Questioning…

 “yes or no” questions demand

m a
o agree..”
direct response. “do you
.c “are we in
“would my proposal..”
agreement..”
a
m
a to check on your
 They allow you
progress y nthe sales process. “trial
on
close” d
u
t
S
71
Presentation methods

 Stimulus response method: also called a

‘canned approach’, a memorised
m
o sales
c if a right stimuli is
presentation .It assumes .that
a response.
made it will get a favourable
 Formula method: the m AIDA process.
 Need-satisfaction
a method: an interactive
n
y
sales presentation. The most challenging and
d
creative method. The FAB way.
u
t Advantages, Benefits.
Features,
S
72
The presentation

 Attracting Attention m
 Creating Interest o
.c
 Building Desire andaconviction
 Initiate Action to m
buy.
a
n
y
d
u
t
S
73
Presentation methods

 Team selling method: a multi person sales

team deals with a multi person
m
o buying centre
(or buying committees) .c
a
Sales team consists of Account executive,
m
technical support engineer, logistics expert, IT
a and Finance executive.
or systems executive
n
y consists of materials exec.
Buying committee
d
manufacturing/operations exec. supply chain
u
exec.tMaterials manager and Finance exec.
S
74
Presentation methods

 Consultative selling method:

m problem-
solution method. o
. c
Requirements are: a
Knowledge of the industry,
m clients
a
company, awareness of key members
n
needs, y
d
u
t
S
75
Objections

 Objections , opposition , resistance

m to
the presentation typicallyohappens during
.c asking for the
the presentation or while
order.
a
m
a be welcomed.
 Objections should
n
 Objectionsyindicate that the prospect is
involveddand not indifferent.
u
t
 Objections reflect the prospect’s view.
S
76
Objections

1. Psychological ( hidden ) m – includes

pre-determined ideas or obeliefs,
.c
preference for established brands,
a
dislike of making decisions , anxiety or
m
resistance toa spend money , suspect
about quality n etc.
y
2. Logicaldor practical or real –delivery
u
schedule, high price , product
t
S
availibility,
77
Handling objections

 Listen m
o
.c
 Understand a
m
a
 Negotiate n
y
d
u
t
S
78
Methods of handling
objections
 Ask questions: listen, rephrase,
m
reconfirm the objection ando explain.
. c
 Turn objection into a benefit and trial
a
close. m
 Deny objectionsa tactfully. (arrogance and
n
sarcasm toybe strictly avoided)
d
 Testimonials,
u referals
t
 Compensation for valid objections.
S
79
Negotiation

 Plan – pre determine ‘firm’m

and ‘flexible’
factors; define limits. o
.c
a
 Ensure an atmosphere
m of trust ,
understandingaand respect.
n
y
d
 Defineupurpose and objective.
t
S
80
Negotiation styles

 Win – loose m
o
.c
 Win – Win a
m
a
n
 Loose - Loose
y
d
u
t
S
81
Closing the sale

 Summarize m
o
 Advantage and disadvantage
comparison .c
a
 Opportunity benefit
m
a
 Emotional appeal
n
y
 Direct closure
d
u
A.A.F.T.O=Always Ask For The Order
t
S
82
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