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Mathew Lawrence

- Prepared by Mathew Lawrence

Sales Management & Personal Selling

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

Presentation Flow

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 company’s sales effort.

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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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Sales Director (1)Divisiona

l Manager

(2)Zonal Manager (10)

Regional Manager (25)

Territory Business Manager (50)

Territory Business Executive (50)

Example of a hierarchy in Sales Department

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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

Concern for customer

Canned Presentation

Questions and Discussion

Talking Listening

Pushing product Providing buying opportunities

Presenting features Presenting benefits

Advocating without acknowledging

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 client’s 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 outfit

works through a well networked team of trained telemarketers who make calls

to potential clients and establish direct contact with them. The key lies in convincing

the customer about the value of the product or service and fixing up appointment.

Example: Housing loan, Insurance, selling, Credit cards etc.

• 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 seller’s 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 day’s work for a direct marketer.

“I don’t care how many degrees you have on the wall if you don’t know how to sell you are probably

going to starve.”

Heavyweight boxer George Forman’s advice to his children

Mathew Lawrence

21%

25%

17%

37%

What creates a satisfied customer

A total customer solution

Quality of the prod-uct and service

Competitive Price

Competence of the Sales Person

Mathew Lawrence

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

company’s 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.

Mathew Lawrence

In today’s competitive markets, a personal seller’s 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 customer’s 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.

Changing face of Personal Selling

Mathew Lawrence

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:

Prospecting

Pre approach

Approach

Presentation /

Demonstration

Handling objective

s Closing

Follow-up

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Prospecting

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

Prospecting

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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

Pre approach

Mathew Lawrence

Approaching

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

Approach

How do we make theInitial contact & build

rapport

There is only one time to make a first

impression

Mathew Lawrence

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

A good presentation is as important as good product. Presentation can be in different forms like-

attractive 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.

Presentation /

Demonstration

Mathew Lawrence

Handling objective

s Handling Objection

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

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.

IF HE HADN’T TOLDME WHAT HIS OBJECTION

WAS, I NEVER WOULDHAVE BEEN

ABLE TO HELP!

Mathew Lawrence

Follow ups

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

Follow-up

Mathew Lawrence

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.

Marketing Mix

Product

PricePromoti

onPlace

Advertising

Public Relatio

ns

Personal

Selling

Sales Promoti

on

Advertising Personal Selling

One way communication

Two way communication

No direct contact with customer

Direct contact with customer

Cannot convince the customer

Can convince the customer

Has a large reach

Has limited reach

Costly approach Less costly approach

Applies Pull strategy

Applies Push strategyMathew Lawrence

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: 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 prospect’s 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 prospect’s 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

Attention Interest Desire Action Satisfaction

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 prospect’s 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.

Mathew Lawrence

Mathew Lawrence

Assignment- 1

Case Study Analysis

Identify a company who launched its product with the application of AIDAS theory and explain each

stage?

Mathew Lawrence

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