Sales Management:

Chapter 01 intro to personal training:

Personal selling: Interpersonal influence process involving a promotional

presentation conducted on a One-to-One basis with the buyer. The process of:
Developing customer relationships, discovering customer needs, matching
appropriate products with these needs, and communicating benefits.”

Sales Management Trends

From To
Transactions Relationships

Individuals Teams

Sales Volume Sales Productivity

Management Leadership

Local Global

 PERSONAL SELLING’S UNIQUE ROLE:

1. High level of customer attention
2. Customize the message
3. Yields immediate feedback
4. Communicate more technical and complex information
5. Demonstrate a product’s functioning and characteristics
6. Develop long-term relationship

MODERN SELLING PHILOSOPHY:

 Based on trust and mutual agreement

 Customer-driven
 Act as if on customer’s payroll
 After-sales service is key
 Professionalism and integrity are essential

SELLING FOUNDATIONS:
In order to be successful in today’s global business environment, salespeople must
have a solid relationship building foundation. They must:
Be Trustworthy
Behave Ethically
Understand Buyer Behavior
Possess Excellent Communication Skills

SELLING PHILOSOPHY OF ‘GOOD’ SALESPEOPLE:

1. Selling is problem solving
2. Selling is a caring activity
3. A customer is a person to be served, not a prospect to be sold
4. Treat people as human beings, not $ signs
5. Be customer driven, not product driven
6. Long-term success depends on customers relations
7. Selling is a ‘win-win’ activity
8. Adherence to ethics, mutual trust, and honesty is essential

CHAPTER 02 INTRO TO SALES MANAGEMENT:

Marketing
mix

Products Prices Promotion Distribution

Advertising Public Personal Sales

relations selling promotion

Sales
Sales
management
management

Planning
Planning Motivating
Motivating
Budgeting
Budgeting Compensating
Compensating
Recruiting
Recruiting and
and selecting
selecting Designing
Designing territories
territories
Training
Training Evaluating
Evaluating performance
performance

SALES MANAGEMENT:
Sales Management is the attainment of sales goals in an ethical, efficient, and
effective manner.
THE SALES FORCE MANAGEMENT
Managing Sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them and providing the proper planning and
backup support so they can perform their jobs properly.

WHAT ARE THE SALES MANAGERS GOALS?

 Sales
 Revenues
  Profits
 Market Share
 Controlling internal costs

Sales Force Strategy

Role of
Role of Sale Defining Selling
Alternative
Sales Force Process
Sales channel

Defining the Recruit Train

Sales And ……
Organisation Sales force

Building Sales capabilities…

Develop sound Organize for efficient Develop skills for Motivate & support
selling strategy coverage effective selling sales force

Clear segmentation Right structure Define necessary skills Align measurement

and reward systems:
Explicit objectives, Right size Develop training,
goals and priorities recruiting and • Compensation
Territory / account coaching programs for: • Recognition
Winning selling
proposition Assignments for • Product knowledge Provide necessary
adequate coverage • Buying process organization support
Realistic time • Sales methodology (systems, etc.)
frame/expectations • Planning & execution
 Sales management model
Sales Strategy

What is the value proposition

and the role of the sales Is support adequate to
force in its delivery? maximize the selling effort?
Strategy
Mission

Efficiency Effectiveness
Sales
Is the sales force (and What critical selling skills are
Force Individual
channels) organized for optimal required for the sales role in
coverage of selected markets? Deploy- Sales Selling
the value proposition?
ment Support Skills

Does the sales force have

adequate coaching & Coaching Infor- Motivation Does the compensation plan
supervision? meet management’s objectives
& Super- Recruiting mation & Compen- and pay the sales force fairly?
vision & Training Resources sation

Does the recruiting and Are information systems

training match selling skill being fully utilized to support
requirements? Capability Building
the selling effort?

CHAPTER 03 SALES CHANNELS

 Personal selling occurs through several types of communication channels
 Each sales channels has unique aspects which make it relevant for particular
sales situations.

The five sales channels:

 OVER-THE-COUNTER SELLING: personal selling conducted in retail and
some wholesale locations in which customers come to the seller’ place of
business.
 FIELD SELLING: Involves calling on prospective customers in either their
business or home locations. Four types of field sales person:
 Professional Salespeople: Help prospective customers to define their needs
and then suggest the best means of meeting those needs, even if that requires
suggesting that the prospects use a competitive product
 National account managers: Highly skilled salespersons who call on key
customers’ headquarters sites, develop strategic plans for the accounts, make
formal presentations to top-level executives, and assist with all the product
decisions at that level
 Missionary Salespeople: They do not seek to obtain a direct order from their
customers. Primary goal is to persuade customers to place orders with
distributors or wholesalers
 Support Salespeople: Support the sales force in a number of ways Technical
support salespeople assist with technical aspects of sales presentations.
Merchandisers may set up product displays

TELE-MARKETING: Utilizes the phone for prospecting, selling, and/or

following up with customers. Inbound and outbound.

CHAPTER 04(a) PROSPECTING:

The process of identifying, qualifying, and prioritizing organizations and

individuals that have the need for and potential to purchase the PRODUCT.

QUALIFIED PROSPECTS:
 Can benefit from the sales offering
 Have the financial wherewithal to make the purchase
 Play an important role in the purchase decision process
 Are eligible to buy based on a fit within the selling strategy
 Are reasonably accessible and willing to consider the sales offering
 Can be added to the customer base at an acceptable level of profitability

Importance of effective prospecting:

The better the lead generation method, the higher the proportion of qualified
leads. The more accurate the qualifying process, the higher the proportion of
customers per qualified lead. Improving the lead generation method so that 10
leads generates two qualified customers means you will need only 50 leads to
generate one customer.

CHAPTER 05 SALES PROCESS:

AIDA Process

A ttention

I nterest

D esire

A ction
 Begin with an attention-getter that relates to the
A receiver’s needs.
Introduce the product, service, or idea and create
I interest by stating specific reader benefits.

Create desire to respond positively by presenting

D convincing evidence of the value of the product,
service, or idea.

A Encourage action by making it easy and restating

the main benefit of responding positively

The Sales Process

The AIDA Concept and the Personal Selling Process

CHAPTER 06 PRESENTATION AND OBJECTION HANDLING:

A sales presentation should make the prospect want the product being presented

PRESCRIPTION STAGE: The salesperson arouses a prospect’s interest by showing

understanding of the prospect’s problem and prescribing (presenting) a solution to
it.
SOLUTION STAGE:
 Assumes a knowledgeable role
 Begins to earn the right to be an advisor to the prospect
  Customizes the presentation of product features and benefits to the
prospect’s specific needs and wants

PARTENERING STAGE: Business partnering occurs as a result of sellers and

buyers pooling resources in a trusting atmosphere focused on continuous and
mutual gain.

COMPONENTS OF A SUCCESSFUL PRESENTATION:

 Create a drama
 Don’t exaggerate
 Keep promises

CHAPTER 07 TERITORY DEIGN AND COVERAGE:

WHAT IS A SALES TERITORY?

A sales territory is composed of a group of customers or a geographic area assigned
to a salesperson.
A sales territory is number of present and potential customers, located within a
geographical area and assigned to a salesperson, branch, or intermediary”
Sales territories (or markets) are made up of customers rather than geography

REASONS COMPANIES DEVELOP AND USE SALES TERRITORIES:

BENEFITS OF TIME AND TERRITORY MANAGEMENT:

 Territory should be more efficiently and effectively covered
 Optimum time should be spent with each class of prospects
 Most important customers should receive the bulk of the service
 Sales costs should be reduced due to better time allocation
 Optimum results will be yielded

STAGES IN TERRITORY DESIGN:

DESIGNING SALES TERRITORIES:

1. Select a control unit

 State
 Province
 City
 Station or a zip code
2. Determine location and potential of customers
 Identify both present and potential customers
 Determine the amount of potential business from each account

3. Determine basic territories through

• Determine optional call frequencies (per year)
• Determine the total number of calls needed in
each territory
• Determine workload capacity
• Draw tentative territorial boundaries
• Modify tentative territories as needed
4. Assign salespeople to territories
 Need to consider differences in sales abilities and skills
 Why and how often should territories be revised
 Effect of revision of territories
5. Set up territorial coverage plans for sales force
 Routing sales force
 Scheduling reps time
6. Evaluate effectiveness of the design
ACCOUNT ANALYSIS:
 Account analysis is used to estimate the sales potential for each customer and
prospect in a territory
 Sales potential estimate is used to decide how much effort should be spent on
each account

Total effort to cover a territory is calculated by considering:

 Number of accounts
 Number of calls to be made on each account
 Duration of each call
 Estimated amount of nonselling and travel time

CHAPTER 08 MARKETING CHANNELS AND SUPPLY CHAIN

MANAGEMENT:

MARKETING CHANNEL: A set of interdependent organizations that ease the

transfer of ownership as products move from producer to business user or
consumer.
SUPPLY CHAIN: The connected chain of all the business entities, both internal and
external to the company, that perform or support the logistics function.

Marketing channel fulfills 3 vital functions:

 Specialization and Division of Labor: Provides economies of scale Aids
producers who lack resources to market directly Builds good relationships
with customers
 Overcoming Discrepancies:
 Discrepancy of Quantity
 Discrepancy Of Assortment
 Providing Contact Efficiency

CHANNEL INTERMIDEARIES:

RETAILER: A channel intermediary that sells mainly to customers. Take title to

goods.

MERCHANT WHOLESALER: An institution that buys goods

from manufacturers, takes title to goods, stores them, and resells and ships them.
Take title to goods.

AGENTS AND BROKERS: Wholesaling intermediaries who facilitate the sale of

a product by representing channel member. Do not take title to goods.
 Channels for Consumer Products
Direct Retailer Wholesaler Agent/Broker
Channel Channel Channel Channel
Producer Producer Producer Producer

Agents or
Brokers

Wholesalers Wholesalers

Retailers Retailers Retailers

Consumers Consumers Consumers Consumers

Role of Supply Chain Management

Communicator
Communicator of of
customer
customer demand
demand from
from
Role point
point of
of sale
sale to
to supplier
supplier
Role of
of
Supply
Supply Chain
Chain
Management
Management
Physical
Physical flow
flow process
process
that
that engineers
engineers the
the
movement
movement of of goods
goods

DISTRIBUTION CHANNELS PERFORM IMPORTANT FUNCTIONS:

• Facilitating the exchange process

• Sorting to alleviate imbalances between outputs and consumer needs
• Standardizing transactions
• Holding inventories
• Assisting the search process
• Transporting materials and products

LOGISTICS:
The process of strategically managing the efficient flow and storage of raw
materials, in-process inventory, and finished goods from point of origin to point of
consumption.
SCM: A management system that coordinates and integrates all of the activities
performed by supply chain members into a seamless process, from the source to the
point of consumption.

Supply Chain Management

Activities
Determine
Determinechannel
channelstrategy
strategyand
and
level
level of distributionintensity
of distribution intensity

Manage
Managerelationships
relationships
in
inthe
thesupply
supplychain
chain

Manage
Managethe
thelogistical
logistical components
components
of the supply chain
of the supply chain

Balance
Balancethe
thecosts
costsof
ofthe
thesupply
supplychain
chain
with
withthe
theservice
servicelevel
leveldemanded
demandedby bycustomer
customer

CHAPTER 10: PUSH N PULL STRATEGY: