Sales Management

Introduction to Sales Management

And
Personal Selling
 Sales - Definition

- A sale is the pinnacle activity involved in

selling products or services in return for
money or other compensation. It is an
act of completion of a commercial
activity.
- Sales is everything that you do to close
the sale and get a signed agreement or
contract.
 Marketing Definition
Marketing is the process associated with promotion for sale goods
or services. It is considered a "social and managerial process by
which individuals and groups obtain what they need and want
through creating and exchanging products and values with others.
It is an integrated process through which companies create value
for customers and build strong customer relationships in order to
capture value from customers in return.
Marketing is used to create the customer, to keep the customer and
to satisfy the customer. With the customer as the focus of its
activities, it can be concluded that marketing management is one
of the major components of business management. The evolution
of marketing was caused due to mature markets and overcapacities
in the last decades. Companies then shifted the focus from
production more to the customer in order to stay profitable.
 Sales and Marketing
What's the Difference?
Sales
Sales starts with seller & is
preoccupied all the time with
the needs of the seller
Emphasizes on saleable
surplus available with the
company
Seeks to convert products in to
cash
Views business as goods
producing process
Sales views the customer as
the last link in the business
Marketing
Marketing starts with the
buyer and focuses constantly
on the needs of the buyer
Emphasizes on identification
of market opportunity
Seeks to convert customer
needs in to products
Views business as a
customer satisfying process
Marketing views the customer
as the very purpose of
business
 The sales and marketing relationship

Marketing and sales are very different, but have the

same goal.
Marketing improves the selling environment and plays
a very important role in sales.
The marketing department's goal is to increase the
number of interactions between potential customers
and company, which includes the sales team using
promotional techniques such as advertising, sales
promotion, publicity, and public relations, creating new
sales channels, or creating new products (new product
development), among other things.
 Sales Management
Sales management is attainment of an
organization's sales goals in an effective &
efficient manner through planning, staffing,
training, leading & controlling organizational
resources. Revenue, sales, and sources of
funds fuel organizations and the management
of that process is the most important function.
 Objectives of Sales Function.
To achieve Sales Targets
To achieve Market share targets
To manage dealer network
To organize sales training
To handle customer complaints
To manage Sales promotion campaigns
To effectively cover market
 Sales Management
Managing Sales Force
Offering Sales Training
Managing Channel partners
Managing Direct sales
Managing Sales Promotion
Managing Sales Territories
Managing Sales Targets
PERSONAL
SELLING
 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. Today, personal
selling involves the development of longstanding client
relationships. In comparison to other marketing communications
tools such as advertising, personal selling tends to:
Use fewer resources, pricing is often negotiated.
Products tend to be fairly complex (e.g. financial services or new
cars).
There is some contact between buyer and seller after the sale so
that an ongoing relationship is built.
Client/prospects need specific information.
The purchase tends to involve large sums of money.

Everyone lives by selling something R.L. Stevenson

 Personal selling and its fit in the promotional mix

Usually more appropriate in B2B than consumer markets.

Advantageous in promoting and selling high cost,
complex items.
Operates more effectively when customers are on the
verge of making a final decision and committing
themselves.
 Characteristics of personal selling

Impact - sales representatives have a much greater

chance of engaging initial attention and responding to
situations.
Precision - targeting and message precision.
Cultivation - sales force plays an important role in
creating and maintaining buyer seller relationships.
Cost - personal selling is very labour intensive so comes
at a cost.
Sales representatives - typical tasks
 Forms of personal selling
Order takers - external and internal.
Order makers - finding prospective customers, identifying
customer specific problems and needs, selling product and
assisting with installation and training, and maintaining
relationship.
Sales support - augment the efforts of mainstream sales force.
Missionary sales representatives - focus on particular
segment of product to give enquiries and sales an initial lift.
Sales engineers - focus on the technical or application
problems of the product.
The personal selling process
Stages and objectives of the personal
selling process
Sources of prospects
 (1) Prospecting
Identify the potential customers
Making warm contacts rather than cold calling

Leads - prospective customers.

Prospects before a contact, find they with potential.

Qualified prospects after a contact, find they with

great potential.
 (2) Preparation and planning

It is to look for:

Customers buying criteria and needs

Customer organisations purchasing structures
The application of the prodcut and the features and benefits required.
 (3) Initial contacts

It is to build up mutual rapport, respect and trust between the buyer and seller
before the formal and serious business discussion.
Two approaches:
Initial phone call for a meeting appointment
Could calling/visiting for a lucky meeting arrangement
 (4) -Sales presentation
It is to show how the product offering and the customers needs match.

Stimulus response.

Formula selling.

Need satisfaction.
 (5) Handling typical objections
Typical objections:
Your: company, product, service, pricing;
You; you are not competitive enough
I cant afford it; I dont need it
Ask the objection back.
Agree and counter.
Boomerang.
Feel, felt, found.
Denial.
 (6) Types of negotiations

Co-operative or win-win - trading concessions results in a better deal for

both parties.

Competitive negotiation - hard bargain focused on short term gain.

 (7) Types of sales closure
It has reached the point where the customer agrees to purchase.

Alternative close.
Assumptive close.
Time pressure close.
(8) Follow-up and account management

The role of personal contact

The sales management process
Questions