Introduction to Sales
Management
The exchange of goods or services for an amount of
money or its equivalent in kind
First generation (Exchange of goods)
Second generation (Store concept)
Third generation (Search of the customer started)
Fourth generation (First step to systematic selling)
Fifth generation (Need based selling)
Sixth generation (Started in 1960)
Seventh generation (Customer satisfaction came into
picture)
Helps organization to achieve its goals
Enhances knowledge about both internal as well as
external environment
Information exchange among the departments
Identification of potential prospects, qualify them and
develop a long-term relationship with such customers
Sales makes a vital contribution to society and the
economy, its negative image tends to overshadow the
good it does
The profession of selling is one of the most degraded,
condemned, and ridiculed professions in the society
Increase sales volume
Contribute to profit
Long-term growth of organization
Improving the contribution to profit
Attaining the long term growth in market
No tandem between sales and marketing functions in an
organization
A marketing person may perceive the sales job as
◦ One with no scope of creativity
◦ Sales people do not understand the behavior of customers rightly
A sales person may perceive the marketing job as
◦ Inferior because sales people make the marketing program
successful
◦ Being alienated from the actual market
A negligible communication between these two
organization
Shorter product life cycle
Longer, more complex sales cycle
Reduced customer loyalty
Intense competition among manufacturing companies
Rising customer expectation
Increasing buyer expertise
Electronic revolution in communication
Nowadays companies are hiring women too as a sales
personnel in selling products and services to both types
of individual as well as industrial customers
As a sales forecaster
As a strategic planner
As an observer of buyer behavior
A market analyst
A leader
A cost and profit analyst
A budget manager
A communicator
Sales Functions & Policies 10
Hiring (recruiting sales force)
Training (Providing necessary sales training)
Coaching ( observing the training needs of sales person)
Motivating (continuous support)
Setting targets and tracking results
Recognizing and rewarding performance
Providing leads and sales support
Organizing the sales efforts
Conducting sales meetings
Allocating scares resources
Sales Functions & Policies 11
As a persuader
A service provider
An information-gatherer and reporter
An advocate
A traveler
A coordinator and scheduler
A problem definer
A customer ego builder
Arranging display for wholesaler and retailer
Sales Functions & Policies 12
Identify potential customers from current data base
Identifying prospective accounts and deciding upon the
priority and frequency of making calls
Deciding upon the selling approach
Administering the sales order
Service provider
Information gathering and reporting
Skill up gradation
Administrative responsibilities
Sales Functions & Policies 13
Sales-related policies pertaining to the product
◦ Product line policy
◦ Product design policy
Sales-related policies pertaining to the distribution
Sales-related policies pertaining to the pricing
Sales Functions & Policies 14
Personal Selling
Personal selling is the process in which a salesperson
has a personal interaction with the customer for the
purpose of selling a product or service
It is a promotional tool in any company’s promotional
mix
Personal Selling 16
Sales development
◦ The salesperson needs to generate a perceived need for the
product in customer’s mind.
Sales maintenance
◦ Retaining the customer for the longtime with company
Personal Selling 17
Qualitative Objectives
◦ Effective time management
◦ Possessing sufficient knowledge
◦ Maintaining good customer relation
Quantitative Objectives
◦ Increase market share
◦ Number of sales call made
◦ Minimize sales expenses
Personal Selling 18
Market access strategies
◦ Company’s use of its own sales force
◦ Use of distributors
◦ Telemarketing independent sales agents
◦ The internet
◦ Developing hybrid marketing systems
◦ Establishing alliances
◦ Account relationship strategy
Personal Selling 19
AIDAS theory
Buying formula theory of selling
Behavioral equation theory
Right circumstances theory
Personal Selling 20
Stimulus-response approach
Need satisfaction approach
Problem-situation approach
Personal Selling 21
Personal Selling 22
Prospecting
The salesperson identifies qualified potential customers
Pre-approach
The salesperson learns as much as possible about a prospective
customer before making a sales call
Approach
The salesperson meets the customer for the first time
Presentation
The salesperson tells the “product story” to the buyer, highlighting
customer benefits
Personal Selling 23
Handling Objections
The salesperson seeks out, clarifies, and overcomes customer objections to buying
Closing
The salesperson asks the customer for an order
Follow-up
The salesperson follows up after the sale to ensure customer satisfaction and
repeat business
Personal Selling 24
Understanding customer types through different selling
styles
◦ Trade selling
◦ Missionary selling
◦ Technical selling
◦ New business selling
Personal Selling 25
Finding customers
Researching customers
Communicating effectively
Providing customer services
Creating customer satisfaction
Personal Selling 26
Information sharing
Handling customer alerts
Reporting sales force activities
Tracking the progress of leads
Accurate routing of leads
Internet based facilities
Customer profiling
Comparison of historical data
Competitive intelligence
Sales forecasting tools
Personal Selling 27
Hiring and Training
Sales Personnel
Helps in saving cost
Helps in saving salary and other expenses
Save the image of company by selecting right people
Need to make strategies to keep the sales person for a
long time
Hiring and Training Sales
Personnel 29
Mental Aptitude Dimension
◦ Mental alertness
◦ Business terms and memory recall aptitude
◦ Communication skills
◦ Numerically skills
◦ Mechanical interest
Hiring and Training Sales
Personnel 30
Personality dimension
◦ Honesty or character
◦ Sociability
◦ Cynicism
◦ High energy levels
◦ Dominance
◦ Competitiveness
◦ Emotional maturity
◦ Work habits
◦ Work motivation
Hiring and Training Sales
Personnel 31
Sourcing the Candidate
Screening the Candidate
Personality Test
Selection Test
Honesty Test
Background Check
Personal Interview Psychometric Test
Letters of Recommendations
Physical Examination
Making the Employment Offer
Hiring and Training Sales
Personnel 32
To increase the productivity of sales force
To decrease the wastage of sales force efforts
To improve the image of organization
To increase the customer relationship
Hiring and Training Sales
Personnel 33
Initial sales training
Follow-up or refresher training
Training by the manufacturer to the distributor’s sales
force
Training by the manufacture to customer
Hiring and Training Sales
Personnel 34
Designing Training Program
Determine the objectives of training program
Review sales activities of the organization
Determine who should be trained
Identify training needs
Determining how much training is required
Hiring and Training Sales
Personnel 35
Implementing the Centralized training
Training program
Third party training
Selecting the right Training zone
trainer
On-site training
Timing of training Training through postal
material
Satellite-delivered training
Place of training
Online training
Hiring and Training Sales
Personnel 36
Evaluating the Training
Program
Salesperson’s reaction
Knowledge acquisition
Behavioral change/ transfer of learning
Organizational outcomes
Hiring and Training Sales
Personnel 37