Ad Sales Mgt.

Class #4

Selling is a task of taking the consumer thru decision

process

Need

Awareness or Consideration
set (as the case may be)

Interest (information search)

Desire (evaluation)

Time utility Possession utility

Place utility
 Ad Sales Mgt. Class #5

P e o p l e - o r i e n t e d P r o b le m - s o lv i n g
o r ie n t e d

S e l l i n g
&
b u y i n g s t y l e s
S a le s - t e c h n iq u e - P u s h - t h e - p r o d u
o r ie n t e d o r ie n t e d

T a k e it o r le a v e it

Selling skills help the salesperson ad the sales manager to

effectively
utilize the selling time, to understand the customer better, and
generate higher returns to the organization.
 P r o b le m - s o lv i n g C o m m u n ic a t i o
s k il ls s k il ls

S e l l i n g
s k i l l s

N e g o t ia t io n L is t e n i n g
s k il ls s k il ls

C o n f li c t m a n a g e m e n t
a n d r e s o lu t i o n s k i lls

Ad Sales Mgt. Class #6

The Communication Process
Communication is the exchange of idea and information between
two parties. The communication process is defined as a set of
activities and systems integrated for an exchange of ideas,
concepts, information, and knowledge between a sender and a
receiver through alternative channels. In this process the receiver
decodes the message and sends feedback to the sender so that the
sender can know the effectiveness and response of his
communication inputs. Noise and disturbances are interspersed in
the communication process, which hinder the effectiveness of
reception.
Managing Body Language
Personal appearance
Posture
Gestures
Facial expressions
 Eye contact
Space distancing
Listening Skills
A good listener welcomes new ideas, and stays informed,
up-to-date, and out of danger in an organization. Good
listening also enhances the impact of what the salesperson
speaks to the customer, and increases the ability to
negotiate with customers.

The Process of Listening

Attendance

Interpretation

Remembrance

Evaluations

Response action

Levels of Listening

Feedback

Paraphrasing

Clarifications

Em pathetic listening

Active listening

Barriers to Listening
There are various barriers to listening that include physical and
mental barriers. Prejudgment is the most common barrier to
listening, as it is an automatic process. People cannot handle life
without having some assumptions about others and bout products
and services in the society.
Conflict Management Skills
Conflict is a form of relating or interacting where the sales manager finds
himself under some sort of perceived threat to his individual or collective
goals. These goals are Impersonal in nature. The process of identifying the
nature of the conflict and taking corrective action so that the conflict will not
emerge in a similar situation is termed as conflict management.
Model of Conflict
Component of Conflict
The Conflict Resolution Process
Methods of Conflict Resolution -
• Competing: Each party pursues its own interests, regardless of the
impact on the other party.
• Collaborating: Both parties in a conflict try to satisfy fully the concerns
of bother parties.
• Avoiding: One party withdraws from or suppresses the conflict.
• Accommodating: One party agrees to place the opponent’s interests
above its own.
• Compromising: Both the parties agree to give up something.
 Ad Sales Mgt. Class #6
Negotiation
Some of the major skills and qualities required by salespeople to be
effective in negotiations are: Planning, subject knowledge, listening,
patience, communication, intelligence, clear thinking, integrity and
trustworthiness.
Style of negotiation
• I win, you lose,
• Both of us win
• You win, I lose
• Both of us lose
How this is achieved?
• Trust and confidence
• Be polite and humble
• Identifying and agreeing to the problems rather than solutions
• Both side should then work together, pooling their resources,
ideas and sharing information to solve the problems stated
earlier.
Negotiation Skills
Traditionally, price has been the only element of negotiation, but
modern-day business has seen the emergence of new elements of
negotiation, such as time of contract completion, quality levels and
norms for supply of products, volume of goods, responsibility of
financing, level and quantity of risk involved and who is responsible
for what amount of risk, promotion and title, ownership of
intellectual property rights, and level of safely and other norms of
maintenance.
Bargaining
Bargaining is defined as a process where at least two parties are
involved, the parties have some or one conflict of interest between
them, they are at least temporarily joined together in a special kind
of voluntary relationship, and the activity in the relationship
concerns the division or exchange of one or more.
Four principles for conducting principled negotiations that
have a high probability of succeeding in a negotiation as
discussed below –
• Separate the people from the problem
• Focus on interests, not on positions
• Invent options for mutual gains
• Insist on objective criteria

Problem-solving Skills
Besides the negotiation skills described above, one also needs
problem-solving skills for effective selling. The relational and
consultative selling approach suggests that a salesperson should
not be a mere order taker;
he should rather act as a problem-solver and a consultant to the
customer. There roles are more significant for high-tech selling and
business-to-business selling.
 Define the problem

Generate alternative solutions

Decide the solution

Implement the solution

Evaluate the Solution

The problem-solving process

Ad Sales Mgt. Class #7

People generally buy for two reasons :
- Objective reasons
- Subjective reasons
You will need to satisfy both.
The objective reasons or rational reasons:
Car for daily commuting, personal tpt., go out on weekends ?
The subjective reasons or psychological reasons could be :
• Will this car suit my lifestyle?
• Will it make me look good in the eyes of my peers or superiors?
• By buying this car what statement am I making and is that the right
one
for me?
• Does this car fit with my role as a director, father, mother, husband, wife
etc.
Buying Decision Process
Sales people must understand that household and individual
consumers as well as business (or industrial) buyers pass through
certain stages or steps in buying a product. In consumer markets,
individual and household consumers make buying decisions based
on five mental stages of buying process .
Problem (or need) Recognition
Information Search (or Collection)
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour

Buying Situations or Types of Purchases:

For household and Individual Consumers
- Routine decision-making
- Limited decision-making
- Extensive decision-making

Buying Situations for Business Buyers:

- New purchase (or new task)
- Change in suppliers (or modified rebuy)
- Repeat purchase (or straight rebuy)
Ad Sales Mgt. Class #8
The Sales Process
Salespeople perform many activities, which can be broadly grouped
into selling activities, and non-selling activities. The selling activities
consist of the various steps of the selling process.
The non-selling activities include preparation of sales reports,
collecting payments, obtaining market information, traveling and
waiting to see customers.
 P r o s p e c t i n g a n d Q u a l if y i n g

P r e a p p r o a c h ( P r e c a l l P l a n n in g )

A p p r o a c h

P r e s e n t a t io n a n d D e m o n s t r a t io n

O v e r c o m i n g O b j e c t i o n s

T r ia l C l o s e / C l o s in g t h e S a le s

F o l lo w - u p a n d S e r v ic e

Qualifying
It is important that the lead, or the probable prospect is qualified (to
meet the
Necessary standards or conditions to receive further attention). The
necessary
conditions for the probable prospect or the lead to get qualified to the
prospect
or potential customer are :
• The probable prospect has a need for the product/service being sold.
• The probable prospect (could be an individual, a family, or an
organization) can afford (or has an ability) to buy the product /
service.
Discuss the concept of Cold/Warm /Hot prospect
Preapproach
• Information gathering
• Planning and sales call - Setting call objectives
• Planning the sales strategy – This type of modification to selling
objectives or plans is called adaptive selling. Salespeople often
deal with multicultural customers in domestic as well as
 International markets. Because salespeople can change their
sales presentations, sales messages, or behaviour for different
customers and differing sales situations, personal selling is
referred to as adaptive selling.

Approach
Presentation and Demonstration
- Understanding the buyer’s needs
- Knowing sales presentation methods
• Stimulus response method,
• Formula method,
• Need-satisfaction method,
• Team selling method, and
• Consultative selling method
Developing An Effective Presentation
Demonstration
Overcoming Objections
Methods for handing and overcoming objections
Some of the common methods of handing and overcoming the
sales objections are:
1. Ask question
2. Turn and objection into a benefit
3. Deny objections tactfully
4. Third-party certificate
5. Compensation

Trial Close/Closing the Sales

Trial close is one of the selling techniques. It check the attitude, or
asks the opinion, of the prospect. Trial close does not ask the
decision of the prospect to buy. It is used after the sales
presentation, after an objection is answered, or before closing the
sales.
Follow-up and Service

Sales Strategy-A Strategic Decision Area

Classification of Accounts
Relationship Strategy
• Transactional relationship
• Value-added relationship
• Collaborative relationship
Selling Methods
Channel Strategy-Multi channel

Ad Sales Mgt. Class #9

Sales Forecast & Sales Quota
 Basic Terms Used in Forecasting
• Market potential
• Market forecast
• Sales potential (or company sales potential)
• Sales forecast (or company sales forecast)
• Sales budget
• Sales quota
Sales Forecasting Methods:

Qualitative Methods:
• Executive opinion method
• Delphi method
• Sales composite method
• Survey of buyers’ intention method
• Test marketing method
Quantative Methods:
• Moving average method
• Exponential smoothing method
• Decomposition method -Tends/ cycle/season/e
• Ratio method –Time Series analysis
• Regression analysis

Purposes of the Sales Budget

• Planning
• Co-ordination
• Control

Method Used for Deciding Sales Expenditure

Budget
• Percentage of sales method
• Executive judgment method
• Objective and task method

Procedure for preparation of Sales budget- Format,

Worksheet , Guidelines and timetable

Ad Sales Mgt. Class #10

Sales Territories and time management
Salespeople have two fundamental
questions to answer in time and territory
management: What is the most efficient use of my
time? What is the most effective way to manage my
territory? Salespeople should identify their personal
and professional priorities and develop a time
management plan. They should also develop a
territory management plan and provide territory
feedback to management.
Salespeople who are good time and territory
managers can increase productivity, improve
customer relationships, and enhance their
confidence. Sales managers also benefit by
ensuring territory and customer coverage,
minimizing sales expenses, assessing the sales
performance of customers and products, and
aligning company policies with customer
expectations.
Sales managers have two
fundamental tasks to complete in time and
territory management. First, they must design the
most effective sales territories. The overall success
of a salesperson in my territory is based in part on
how well management designs the territory. The
second major task is measuring the sales
performance of the company’s product,
customers, and territories.
 Territories are the fundamental unit of
measure for evaluating various critical aspects
of the company’s business, such as the success
of various products, how well customers are
doing compared to other customers, or
historical purchasing patterns.

Defining Sales Territory

• Increase market or customer coverage- reasonable
workload
• Control selling expenses-more time on work rather than
travel
• Better evaluation of s.force performance-customers &
prospects
• Improve customer relation-partenering/ collaborating
with cust.
• Increase salesforce effectiveness- quota achievement
• Improve Co-ordination- imc elements, pop displays
• Benefit Salespeople and the company-topline &
bottomline

Why time and Territory Management is

Important ?
Reasons for
Reasons for Sales Managers
Salespeople
 1. Increase productivity. 1. Ensure territory and customer
coverage

2. Improve customer 2. Minimize sales expenses

relationships.

3. Enhance personal 3. Assess sales performance

confidence.
4. Align company policies with
customer
expectations.

Procedure for designing Sales Territories

• Select a Control Unit- States/Metros/Cities
• Find Location and Potential of Customers- ABC analysis
• Decide Basic Territories
- Build-up method –Industrial products-
call freq/
Breakdown method- Sale forecast breakdown into
terr.
Measure s.t. performance based on
DCR/Invoice/Expense
Collections/ Customer & channel feedback
Managing Territorial Coverage
Routing, Scheduling and Time Management
Scheduling
Time Management Tools
 Ad Sales Mgt. Class #11
Salesperson Performance

Role Perceptions
The role of a salesperson is the set of activities or
behaviors to be performed by any person occupying
that position.
Perceived role conflict
Perceived role ambiguity
Role inaccuracy
Sales Aptitude : Are good sales person born or
made
 Optimist
Resilient
Self motivated
Personality
Empathy

Sales Skill Levels

They include such learned abilities as interpersonal skills,
leadership, technical knowledge, and presentation skills.

Motivation
Motivation is how much the salesperson wants to expend
effort on each activity or task associated with the job. These
activities include calling on existing and potential new
accounts, developing and delivering sales presentations, and
filling out orders and reports.
How to motivate your salesforce
• Understand personal difference - What motivates
one rep may leave another cold. Get to know your
sales-people and their likes and dislikes.
• Encourage balance – Successful people need to
juggle work along with family and friends. Respect their
personal lives.
• Praise good work – Find salespeople doing something
worthwhile, like sharing leads, and notice it.
• Get out – Be supportive, visible, and available. Don’t
hide in your office.
• Don’t play favorites – Even a hint of favoritism can
undermine a sales team.
Organization and Environmental Variables
Marketing budget, mkt. Share, sales force supervision
Personal Variables
Personal and organizational variables (such as job
experience, the manager’s interaction style, and
performance feedback) affect the amount of role conflict
and ambiguity salespeople perceive. In addition, their
desire for job-related rewards (such as higher pay or
promotion) differ with demographic characteristics such
as age, education, family size, career stage, and
organizational climate.

Rewards
Satisfaction

Ad Sales Mgt. Class #12

Approaches to building up a sales
organization

Sales organizations helps in achieving target sales,

generating data explaining the behaviour of customers,
and projecting trends. valuating the performance of the
sales staff in similar and different territories across the
markets.
The traditional sales organizations can take any of the
forms that include
Geographic- A geographic sales organization is easy
to supervise and control and helps in effective
coordination portfolio can improve their efficiency by
designing the organization on the basis of the product.

Product- e.g. Dabur –10 categories Healthcare,

Personal Care prod- Hair & oral ,
Ayurveda specialities,
Foods- Juices, RTE products
Cosmetics- Samara herbal skincare prod.
Customer- Customer specialization improves
efficiency by identifying key customer segments and
avoiding the duplication of efforts.
Combinational design for effective sales
management.

For complex products needing more attention than

mere selling, such as service and training to the customer,
organizations can be designed on the basis of the
function.
The sales staff are divided as initial contact people and
sales service providers. There is a high demand for
serving customers at low cost. This has led the
organizations to look for alternative designs for building
efficient organizations and applying the emerging
information technology for selling. So we find the

Emergence of telemarketing for prospecting

and the dissemination of product and support service
information.

Team-based selling also helps in providing adequate

information to the customers rather than selling by
individual salesperson. Organizations are building sales
teams from various cross-functional areas for better
customer handling and relationship building.

Ad Sales Mgt. Class #13

Recruitment Planning for sales
organisation
 T h e D e c i s i o n P r o c e s s f o r
R e c r u i t i n g a n d S e l e c t i n g S a l e s p e o p

E s t a b li s h e d p o lic y c o n c e r n in g r e s p o n s ib il
f o r r e c r u i t m e n t a n d s e l e c t io n .
 W h o w il l p a r t ic i p a t e i n t h e p r o c e s s ?
 W h o h a s a u t h o r i t y t o m a k e h i r in g d e c i s

A n a l y z e t h e j o b a n d d e t e r m in e
s e le c t i o n c r i t e r ia
 C o n d u c t a j o b a n a ly s is .
 W r i t e a j o b d e s c r i p t io n .
 D e v e l o p a s t a t e m e n t o f j o b q u a li f ic a t i o n

F i n d a n d a t t r a c t a p o o l o f a p p l ic a n t s .
 I n t e r n a l s o u r c e s .
 E x t e r n a l s o u r c e s .

D e v e l o p a n d a p p ly s e le c t io n p r o c e d u r e s
e v a lu a t e a p p l ic a n t s .
 A p p l ic a t i o n b la n k s .
 I n t e r v i e w s
 R e f e r e n c e c h e c k s
 F o r m a l t e s t s .

Therefore, the recruitment process should begin with a

thorough analysis of the job, a job description, an a
statement of the
qualifications for a new hire.
Attrition is the biggest challenge for high growth
industry. Risk taking – Empower people young- global
leader. Customer connect but before that there has to be
ab employee connect
 Sunrise Sector – Retail, Real Estate, Telecom, Pharma
Hospitals, Financial Services, IT & ITES
Day Zero – Companies like Infosys & Cognizant hire 500
– 1000 people at campuses
The challenge for HR is How does a company become
an
aspirational brand in the job market.
- Professionalism – Environment enabling
them to realize their potential.
- Freedom to work & Innovation
Best method of Recruitment
WOM & Referrals (upto 30% employees is benchmark)
e.g. Marriot Hotels everyone is an associate and not an
employee
Consumer Orientation
Finance & Mfg. people are encouraged to got to
the market/consumer homes for better insight.
Leadership oriented program for young
manager and a strong bottom up feedback
mechanism.
e.g. Johnson & Johnson
Understanding Modern trade Implication for skin care
products
– Sending people WalMart, U.S.A
– Training at Australian Unit
e.g. Dr. Reddy’s Lab
Lady joined in oncology div. in 2003,
2008 National Sales head with 2000 salespeople
Ad Sales Mgt. Class #14
Process of Hiring Salespeople

Recruitment and Selection of Sales person

Aim of recruitment is to attract qualified candidates for
job Interviews.

Sources of Recruitment
Internal – Promoted, transferred or demoted, Rejoin
Advantage - Quick filling up of vacancy
- Group morale is enhanced
- Lower investment in training and
orientation
Disadvantage – no fresh inputs, thinking and does not
lead to creativity.
Sources of Internal Recruitments
- Promotion
- Interns/part time employee
- Employee referrals
Source of External Recruitment
- Industry with work experience
• Customer
• Supplier
• Competitor
 - Campuses of educational institutions -
Low cost recruitment, Specified time
period
- Employment Exchange – Database
made
available by Placement Consultant.
- Placement consultant- Performance
Guarantee
- Networking referrals –
Friend/Family/Social
Network
- Web consultants – Accessibility, Wide
choice
- Walk ins – Screening at Convenient
locations
- Response to ad – Classified & Display
ad.
Large no. of non desirable
candidates.

Selection
Selection is the process that determines whether or not the
applicant meets the qualification for the job and it selects
the candidate who is most suitable for a given job.
There is a need for clearly spelt company norms regarding
what
is acceptable & what is not.
Good Selection
 – Good impression on buyers/ customers/channels
Wrong Selection
– Friction within organization, loss of reputation,
spoil the jobs in hand.
Selection Procedures
• Application form – Screening candidate
- Situational Analysis
- Job knowledge
- Job requirement

• Interview Techniques
I.) Structured - Job related
- Valid predictor for job performance
- Point are awarded for correct answer
Stress Interview – To Annoy, embarrass, frustrate
candidate
II.) Unstructured - for personality profiling

• Reference Check – Previous experience and

education, find out aptitude towards job and
performance.

Appointment
Issuance of a letter which spells out probationary
period and rights after confirmation.
Initial Orientation
Formal orientation program organization related and job
related information given to the new recruits. Policies,
procedures, roles

Socialization
Process of Introduction to work environment, territory, chain
of command, sales structure, goals.

Ad Sales Mgt. Class #15

Objectives of Sales Training
Increase Productivity
Sales training attempts to teach the skills
possessed by more experienced members of the sales
force.
e.g. Cisco Systems, which credits much of its success
to having the best-trained sales force in the industry.

Improves Morale
One objective of sales training is to prepare trainees to
perform tasks so their productivity increases as quickly
as possible. Without training, the salesperson may not be
able to answer customers’ questions, leading to
frustration and lower morale.
Lower Turnover
Turnover can lead to customer problems, since many
customers prefer continuity with a particular
salesperson. When a salesperson suddenly quits, the
customer may transfer business to other suppliers rather
than wait for a new rep.
Improve Selling Skills
Improving basic selling skills can lead to improved
performance in the field. What is the most effective way of
covering the territory to reduce miles driven and time
spent?

How to Create a Powerful Sales Training Experience

First, link training to the challengers reps face right
now. Second, provide specific tools for them to use.
Incorporate
forms that enable them to organize information.
“Salespeople don’t want to read during a meeting.
They’re interested in skills, not Theory. They want practical
information they can use right now.”

Procedure of imparting Sales Training

Analyze Needs
An important first step is to travel with salespeople,
observing them and asking what they need to know
that will help them perform more effectively.
 Local sales managers are a useful source of
information because they are closest to the salespeople.
Other sources include company records on turnover data,
performance evaluations, and sales/cost analyses.
• Where in the organization is training needed?
• What should be the content of the training program?
• Who needs the training?
Determine Objectives – Short term/ long termcompare trg.
Obj with co goals
Develop & Implement the Program- Prev. prog., Trg.
Budget/ Manuals/Aids/ Timing
/Location/ Fix trainers
Evaluate and Review the Program- Develop monitoring
system

Topics in Sales Training

Market/Industry Orientation
They need to know their buying policies, patterns,
and preferences and the products or services these
customers produce. In some cases, salespeople need to
knowledgeable about their customers’ customers.

Company Orientation
Salespeople can expect customers to request price
adjustments, product modifications, faster delivery, and
different credit terms.
 Most corporations provide the sales force with manuals
that cover product line information and company
policies. A well-written sales manual can give a sales
rep a quick answer to a customer’s question.

Technology
ex.– IBM. Salesperson work a high-Speed network
connection, laptop or desktop computer, printer, and cell
phone. Salespeople use PCs to plan their call activities,
submit orders, send reports, check on inventory, receive
both customer and company messages, and present
product and service demonstrations. Sales rep can
access the company’s decision support system (DSS) to
learn what products have been selling in an area or for a
specific customer.
Internet technology in sales training.

Specialized Training Topics

Many companies, like Caterpillar Inc. (
www.caterpillar.com), spend substantial sums each year
on trade shows.
Most salespeople have the training and experience to
make in- depth presentations to specific customers, but
they are not necessarily skilled at working trade shows.
Specific training helps them to engage and qualify new
prospects and handle big crowds.

Sales Training Methods

 The most common methods of sales training are on-
the-job training (OJT), individual (one-on-one) instruction,
in-house classes, and external seminars.
The most prevalent forms of instruction are videotapes,
lectures, and one-on-one instructions.

On-the-job Training
The critiques cover effectiveness, selling skills,
communication of information in a persuasive manner,
and other criteria.
A key aspect of OJT is the coaching new salespeople
receive from trainers, who may be salespeople, sales
managers, or personnel specifically assigned to do
sales training.
OJT often involves job rotation – assigning new
salespeople to different departments where they learn about
such things as manufacturing, marketing, shipping, credits
and collections, and servicing procedures, after on-the-
job training, many sales trainees proceed to formal
classroom training.

Internet
Companies find the Internet very effective and very
efficient in delivering information (as in our Black &
Decker Example). Online training is growing at a very rapid
rate and companies are literally spending billions on
online training methods.
 IBM invests a great deal of time and resources in the
delivery of online training to its sales force of over 300,000
worldwide.

Classroom Training
First, each trainee receives standard briefings on such
subjects as product knowledge, company policies, customer
and market characteristics, and selling skills. Second,
formal training sessions often save substantial amounts of
executive time because executives can meet an entire group
at once. Third, classroom sessions permit the use of
audiovisual materials. Lectures, presentations, and case
discussions can also be programmed into a classroom
setting.

Role Playing
The sales trainee acts out a part, most often a
salesperson, in a simulated buying session.

Ad Sales Mgt. Class #16

Motivating the Sales People
Motivating salespeople is a key challenge for sales
managers in a modern-day sales organization.
Organizations lose quality manpower and also
marketing knowledge with them due to motivational
problems.

The principles of motivation include the security,

loyalty, social approval, advancement to one’s career,
leadership, and human behaviour.

Various factors influence the motivation level of

salespeople. These include personal characteristics,
environmental factors, and organizational
policies and procedures.

Motivational tools can be classified as financial and

non-financial tools.

Similarly, the methods of motivation can be grouped as

individual and group motivational methods. The
motivational programme should be communicated to
the employees through different media like company
website, newsletter, and bulletins.
Theories of Motivation are classified as Content,
Process, and Reinforcement theories.

Content theories explain the need structure of the

individuals, whereas the

Process theories explain the process and mechanism

of motivation. Expected output such as promotion, raise

Reinforcement theories guide the sales managers to

design stimuli for getting the desired result among
salespeople.

Overview of Compensation and

Incentives
A salary is a fixed sum of money paid at regular
intervals.
The amount of salary paid to a given salesperson is
usually a function of that salesperson’s experience,
competence, and time on the job, as well as the
sales manager’s judgments about the quality of the
individual’s performance.

Incentives are paid to encourage good performance.

A Commission is a payment based on short-term
results, usually a salesperson’s Rupees or unit sales
volume.

A Bonus is a payment made at management’s

discretion for achieving or surpassing some set level of
performance. Commissions are typically paid for each
sales; a bonus is typically not paid until the salesperson
surpasses some level of total sales or other aspect of
performance.

Sales contests seek to encourage extra effort aimed

at specific short-term objectives. Contest winners might
be given additional cash, merchandise, or travel
awards.

Additionally , the Package of benefits are designed to

satisfy the salesperson’s basic needs for security.
Benefits typically include medical and disability
insurance, life insurance, and a retirement plan among
others.

Nonfinancial incentives can play an important role in a

firm’s compensation system. Opportunities for
salesperson promotion and advancement, recognition
programs, and other forms of nonfinancial incentives
can be effective motivators. For recognition programs
to be effective, the salesperson’s peers and superiors
must be made aware of his or her outstanding
performance. This can be done through recognition at a
sales meeting, publicity in the local press, or
announcements in the company newsletter, among
other ways.
Because all salespeople cannot possibly be promoted
into sales management positions, some companies
have dual career paths to maintain the motivating
potential of promotion and advancement. One path
leads to positions in the sales management hierarchy,
while the other leads to greater responsibilities in sales
positions, such as a larger territory or key account
position.
Expense accounts can enhance a salesperson’s overall
compensation. Three common ways to handle
salesperson expenses are direct reimbursement,
limited reimbursement, and no reimbursement.
Ad Sales Mgt. Class #17
How to make effective Sales Presentation
The sales presentation is direct, face-to-face
communication with the customer that begins to
establish the link between the company’s
products/services and the solution to the customer’s
needs.
A great sales presentation
1. explains the value proposition
2. asserts the advantages and benefits of the
product
3. enhances the customer’s knowledge of the
company,
products, and service, and
4. creates a memorable experience for the
customer.
There are five approaches to starting the presentation:
 1. referral 2. customer benefit 3.
question
4. assessment, and 5. product demonstration.
The SPIN approach for identifying the customer’s needs
consists of four types of questions:
1. situation 2. problem

3 implication, and 4. need payoff.

Customer do not buy features, rather, they buy the
product benefits.
There are four keys to a great sales presentation. first,
the product demonstration is one of the most valuable
tools available. Second, every salesperson should have
a clear idea of the value proposition for the customer.
Third, realize that nonverbal communication is the
single most influential component of the
communication process. Finally, every sales
presentation offers challenges.

Presentation StrategyFocal Point of Presentation Talk/Listen

Ratio
Memorized Presentation(Highly struct) Product 90/10
Formula Presentation ( AIDA ) Product (Feedback Based)70/30
Need satisfaction (ask. Question) Customer 50/50
Need Identification- Need Analysis- Need Satisfaction
Problem solving Customer 40/60