Block I : Basics of Sales Management

C1 Sales Management Strategy

Chapte
1 r
Sales Management Strategy

Copyright © 2005, Dr. S L

Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Introduction
Sales management is defined as “the planning, direction and control of personal
selling, including recruiting, selecting, equipping, assigning, routing, supervising,
paying and motivating as these tasks apply to the personal sales force”.

Sales force is responsible for the sale of products of a company and to add profit
to the business operations and fulfil social obligations. Sales force should be
hardworking, result oriented, well educated and competent to handle changing
situations.

Copyright © 2005, Dr. S L

Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Managing the Sales Force

Consequently, for many Indian firms, a fresh approach to sales force
management holds the key to translating efficiency gains in manufacturing to
success in the market. Successful sales force management means:

 The right organisation and aggregation against product lines and

geographies.

 The right strength and qualification.

 The right compensation and incentive system.

Copyright © 2005, Dr. S L

Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Steps in Designing and Managing a Sales Force

1. Objective Setting
2. Training for Sales Policies
3. Designing Sales Force: Structure and Size
4. Deciding Sales Force Compensation
5. Recruiting and Selecting Sales Force
6. Guiding and Motivating Sales Force
7. Performance Rating of Sales Force
Organising and Managing a Sales Force
Sales forces are regularly assigned particular sales territories. Various factors
are taken into account when deciding the sales force for a particular territory.
These include the physical size of the force for a particular territory,
transportation links within a territory, purchasing power of consumers and their
educational and living standards.
Copyright © 2005, Dr. S L
Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Sales Manager’s Duties and Responsibilities

The following are some of the principal duties of a sales manager:
1. Organising sales research, product research, etc.
2. Getting the best output from the sales force under him.
3. Setting and controlling the targets, territories, sales experiences, distribution
expenses, etc.
4. Advising the company on various media, sales promotion schemes, etc.
5. Monitoring the company’s sales policies.

Cont….
Copyright © 2005, Dr. S L
Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy
To yourself
Increase basic selling skills.
Develop management abilities.
Keep pace with changes,
trends and developments in
your territory.
Study the latest products,
promotion policies and
procedures.
Be alert to new sal es and
merchandising ideas.
Grow, so that you can assume
greater responsibilities as
opportunities permit.
Maintain the appearance and
goodwill expected of a territory
sales manager.
Analyse your weak and strong
points and then think about
them.
1– 6 Sales and Distribution Management:
To your company
Be proud o f your association
with your company.
Maintain the company standing
and standards with all
customers.
Inform the headquarters and
your supervisors, through
established channels, about
changes and developments in
your territory.
Be prompt in handling record s,
reports, correspondence, etc.
Cut selling costs by economical
routing, good use of time,
planning and greater
awareness of opportunity.
Check demand and movement
of products in the territory.
Report activities of the
competitors.
Strive to reach the bes t goals.
Ask for help, when you need it.
Cooperate with other
departments of the company.
To your customers Territory Sales
Work closely with decision - Manager’s Job
takers and influencers in each
account. Responsibilities
Point out the advantages of an
association with your company.
Keep accounts current and up -
to-date on all company
advertising and promotional
activities.
Suggest ideas, methods,
techniques and tips that can
stimulate sales.
Inform the customers about the
trends in their areas.
Handle complaints effectively
and to the complete
satisfaction of the
complai nants.
Suggest the best technique for
selling your products to the
customers.
Organise presentations to
inform and save time.
Make the customers aware of
the changes in the company’s
policies or procedures.
Stimulate and maintain
enthusiasm for your produc ts.
Build and maintain goodwill. Copyright © 2005, Dr. S L
Gupta
Excel Books
Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Sales Management — Formulation of Sales Strategy

 Determining the size of the sales force
 Decision regarding type and quality of sales force required
 Designing the sales organisation
 Territory designing
 Recruitment and training procedures
 Task allocation
 Compensation of sales force
 Performance appraisal and control system
 Feedback mechanism to be adopted
 Managing channel relationships
 Coordination with marketing departments
Copyright © 2005, Dr. S L
Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Different Sales Strategies

Relationship Strategy
In this strategy, a major key to success in selling is the ability to establish
working relationships with customers in which mutual support, trust and goals
are nurtured over time.
A Selling Partner
P - Prepares strategically for a long-term, high-quality relationship that
solves customer’s problems.
A - Asks questions to get on the customer’s agenda.
R - Restates customer needs with confirmation questions.
T - Teams with support people to provide the customer with solutions.
N - Negotiates double-win solutions with joint decision making.
E - Exceeds customer expectations whenever possible.
R - Re-examines the ongoing quality of the relationship frequently. Cont….
Copyright © 2005, Dr. S L
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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

The Double-Win Strategy

Double-Win Strategy

Win-Lose People Win-Win People

See a problem Help others solve their problem

Fix the blame Fix what caused the problem

Let life happen to them Make life a joyous happening for others
and themselves

Live in the past Learn from the past, live in the present
and set goals for the future
Make promises they never keep Make commitments to themselves and
to others and keep both of them

Cont….
Copyright © 2005, Dr. S L
Gupta

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Dr. S L Gupta
 Block I : Basics of Sales Management
C1 Sales Management Strategy

Simplified Model for Ensuring Customer Delight

After sales service

Unique selling SUPPLY CHAIN

propositioning/brand MANAGEMENT
equity

Exceeding customer
expectations
CUSTOMER
DELlGHT On time delivery

Competitive price
PROCESS
Reliability of product MANAGEMENT
or service

Novelty/uniqueness
of product/service

leading to customer loyalty

and lasting relationship

Cont….
Copyright © 2005, Dr. S L
Gupta

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 Block I : Basics of Sales Management
C1 Sales Management Strategy

Hard Sell Versus Soft Sell Strategy

Strategies for Identifying Customers

Hard Sell Soft Sell

► Concern for self ► Concern for customer

► Canned presentation ► Questions for discussion
► Talking ► Listening
► Pushing product ► Providing buying opportunities
► Presenting features ► Presenting benefits
► Advocating without ► Acknowledging needs
acknowledging
Cont….
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Gupta

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 Block I : Basics of Sales Management
C1 Sales Management Strategy

Integrated Sales Strategies

Sales and distribution management constitutes one of the most important areas
for customer satisfaction. Sales management has been defined as the
management of a firm’s personal selling function while distribution is an indirect
function. Therefore, integration is required between sales and distribution
functions.

Client-centred Selling Strategy

Client-centred selling strategy focuses the entire selling process and efforts on
the client’s needs, problems and successes.

Client-centred selling is focused on the needs, interests, concerns and problems

of the client rather than that of the company’s or salespersons.
Cont….
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 Block I : Basics of Sales Management
C1 Sales Management Strategy

Comparison Between Product-centred Selling and

Client-centred Selling

Product-centred Selling Client-centred Selling

1. Seller puts in efforts for research and
development of product.
2. Product centred selling emphasises knowledge 2.
of product.
3. Selling strategies and tactics tend to be most
influenced by past performances of products
and competition and present situations.
4. Representative seeks to be accepted as a
reliable, credible source of information and
service.
1. Seller puts in efforts on research and
development of relationship with clients.
Client centred selling emphasises knowledge
of client.
3. Strategies and tactics tend to be directed more
to considerations of future growth and
developments in the client’s world.
4. Representative strives to raise client’s
expectations of personal excellence.

Copyright © 2005, Dr. S L

Gupta

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 Block I : Basics of Sales Management
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Methods of Selling
 Telemarketing: Selling Concepts on the Phone

 Sales on the Internet

 Mail Order Sales

 Sales Through Large Scale Fixed Shop Retailers

 Sales Through Wholesalers and Retailers

 Direct Selling

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Gupta

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 Block I : Basics of Sales Management
C1 Sales Management Strategy

Sales Manager as Coordinator

The sales manager performs the function of a coordinator also. He ensures that
the other departments in the company are well informed of sales activities so that
they can produce what is required, when it is required and whether the same can
be produced with the existing facilities or it requires changes etc.

The sales manager also carries out coordinating work with the distribution
network.

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Gupta

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 Block I : Basics of Sales Management
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Sales Management and Control

Sales manager should act as per the objectives set by the organisation. He
should analyse:

 present condition of the firm

 the plans for future

 ways to achieve those plans.

Sales manager’s job is to exercise control over his staff so that on the one hand
they may look for advice and on the other hand, they may give their best efforts
and bring results.

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Gupta

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 Block I : Basics of Sales Management
C1 Sales Management Strategy

Generating Profits
It is the responsibility of the sales department that the products of the company
are sold at the best available prices in the given circumstances. While on the one
hand the salesperson has to produce volume sales as per targets, on the other
hand he has to sell the product at a price which may generate profit for the
company. After all it is positive financial results that add position and power to
the sales manager and bring credit to the sales department.

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Gupta

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