Module-1

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LEARNING OBJECTIVES
A career in sales management is exciting and unique and provides numerous opportunities. This chapter will do the following: Provide you with managers job. an overview of a sales q Introduce you to the various types of sales managers and the skills required of them. q Discuss what a new manager experiences when promoted from a sales job.
q

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WHAT IS SALES MANAGEMENT?

Sales management is the attainment of sales force goals in an effective and efficient manner through:

Planning Staffing Training Leading Controlling organizational resources

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Sales Management

Definition
Systematic process involving: (1) formulation of sales strategy through development of account management, policies, sales force compensation policies, sales revenue forecasts, and sales plan,
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Nature of Sales Management

It is integration with marketing management

Relationship Selling
Transactional RelationshipValue addedCollaborative / Partnering / Selling Relationship / Selling Relationship / Selling

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THE SALES MANAGEMENT PROCESS

Sales Management Functions

The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them

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THE SALES MANAGEMENT PROCESS

Sales Management Functions

Activities undertaken to attract, develop, and maintain effective sales personnel within an organization
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THE SALES MANAGEMENT PROCESS

Sales Management Functions

The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and
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THE SALES MANAGEMENT PROCESS

Sales Management Functions

The ability to influence other people toward the attainment of objectives 4/21/12

THE SALES MANAGEMENT PROCESS

Sales Management Functions

Monitoring sales personnels activities, determining whether the organization is on target toward its goals,
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THE SALES MANAGEMENT PROCESS

Sales Management Functions

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Importance of Personal Selling and only function / department in a company that Sales Management The
generates revenue / income
The

financial results of a firm depend on the performance of the sales department / management salespeople are among the best paid people in business is one of the fastest and surest routes to the top management

Many It

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Roles and Skills of a Modern Sales Manager

Some of the important roles of the modern sales manager are:

A member of the strategic management team member of the corporate team to achieve objectives team leader, working with salespeople multiple sales / marketing channels

A A

Managing Using

latest technologies (like CRM) to build superior buyer-seller relationships updating information on changes in marketing environment 4/21/12

Continually

Skills of a Successful Sales Manager

People

skills include abilities to motivate, lead, communicate, coordinate, teamoriented relationship, and mentoring skills consist of planning, organizing, controlling and decision making skills include training, selling, negotiating, problem-solving, and use of computers

Managing

Technical

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 Emerging Global

Trends in Sales Management in technology

perspective relationship management (CRM)

Revolution Customer Sales Team

force diversity selling approach multi-channels and social issues

Managing Ethical Sales

professionalism

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Personal Selling and the Process

Click to edit Master subtitle style

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definition
Personal

selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services.

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Essential elements of Personal Selling

Personal i)

selling consists of the following elements:

Face-to-Face interaction:

Personal ii)

selling involves a salesmen having faceto-face interaction with the prospective buyers. Persuasion: selling requires persuasion on the part of the seller to the prospective customers to buy the product. So a salesman must have the ability to convince the customers so that an interest may be created in the mind of the customers to use that product. Flexibility:
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Personal

iii)

iv) Promotion of sales: ultimate objective of personal selling is to promote sales by convincing more and more customers to use the product. Supply of Information: selling provides various information to the customers regarding availability of the product, special features, uses and utility of the products. So it is an educative process. Mutual Benefit: is a two-way process. Both seller and buyer derive benefit from it. customers feel satisfied with the goods, the seller enjoys the profits.
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The

v)

Personal

vi) It

While

Importance of Personal Selling

Personal

Selling is extremely important as it helps in increasing sales. But there are other features as well which make it important. It creates demand for products both new as well as existing ones. It creates new customers and, thus help in expanding the market for the product. It leads to product improvement. While selling personally the seller gets acquainted with the choice and demands of customers and makes suggestions accordingly to the manufacturer. 4/21/12

From manufacturers point of view

i)

ii)

iii)

 From i)

customers point of view

Personal selling provides an opportunity to the consumers to know about new products introduced in the market. Thus, it informs and educates the consumers about new products. It is because of personal selling that customers come to know about the use of new products in the market. The sellers demonstrate the product before the prospective buyers and explain the use and utility of the products. Personal selling also guides customers in selecting goods best suited to their requirements and tastes as it involves face-to-face communication. Personal selling gives an opportunity to the customers to put forward their complaints and difficulties in using the product and get the solution
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ii)

iii)

iv)

Steps in Personal selling

1. 2. 3. 4. 5. 6. 7.

Prospecting Planning the sales call- preapproach Approaching the prospect Making the sales presentation Dealing with prospect objections Closing the sale Follow up

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1.Prospecting

The process of searching for new customers Qualifications for a prospect Need or want Ability to buy Authority to buy Eligibility to buy

1. 2. 3. 4.

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Prospecting methods
Centers Internal Surveys

of influence database and research or mailing lists competitors, intermediaries

Observation Directories Trade

shows and exhibitions

Customers, Advertising

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2.The pre approach

Also called as pre call planning
1. 2.

Set specific objectives for the call Gather valuable information by preparing fact finding questions- who, what, where, how and why Prepare opening statements Prepare the sales message- FAB matching Anticipate objections and their responses Prepare closing statements 4/21/12

3. 4. 5.

6.

3.Approach
Introductory Mutual

approach

acquaintance/ reference approach benefit approach or praise approach

Customer

Compliment Free

gift/ sample approach approach ingredient approach approach

Question Product/ Dramatic

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ENTRANCE AND CARRIAGE

Believe

and project that you have a reason to be there and something important to offer the client confidence

Communicate

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SHAKING HANDS
May

sound trite but it IS very important eye contact grip extend

Make Firm Give

your name when you your hand

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FACIAL EXPRESSIONS
Facial

expressions convey inner feelings tend to trust a smiling face

People

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EYE CONTACT
Good

eye contact saysIm listening. eye contact can send the wrong message

Prolonged

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EFFECT OF APPEARANCE

Simplicity

Appropriateness

Visual

integrity

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EFFECT OF VOICE QUALITY

EVER HEARITS NOT JUST WHAT YOU SAY, BUT HOW YOU SAY IT?

-- Avoid rapid-fire speech -- Vary speed of your delivery -- Sound upbeat, energetic but not phony --Convey enthusiasm in your voice -- Try to sound relaxed
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MANNERS: WHAT TO AVOID

Avoid temptation to start on first name basis offensive comments or jokes religious or political discussions

Avoid Avoid

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4.Making the sales presentation-The actual call

An analysis of the Customers color a sales presentation strategy

Choosing

-Stimulus response, using leading questions -Formula- AIDAS -Problem solution, Consult and offer products as solutions -Need satisfaction, focus on buyers needs -Team selling -Depth selling- tailored mix of the above strategies
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5.Dealing with prospect objections

No need, no hurry, no benefit, no Money

Strategies 1. Indirect denial- initially agree, later confront in a friendly manner 2. Boomerang- convert objection into reason for buying 3. Counter balance- balance objection with important benefit 4. Denial- for invalid objections 5. Question-use questions and probe 6. Failure to hear- Ignore, as a last resort
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Rules of objection handling

Dont Dont Dont Dont Dont Dont

argue answer too quickly over answer be drawn into pointless wrangles guess an answer doubt your answer

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6.Closing the sale

How and when to close? Try trail close Types of closing 1. Choice close 2. Minor points close 3. Assumptive close 4. Stimulus-response close 5. Summary close 6. Standing- room-only close 7. Success story close

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Closing the sale

8. Closing on resistance 9. Contingent close 10.Turnover close 11. Ask for the order close 12. Pretend to leave close 13. Puppy dog close 14. No-risk close 15. Lost sale close

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The follow-up
Essential For

to reduce post purchase dissonance

future prospecting

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Handling complaints

Let customers disclose feelings Carefully listen to customer Complaint may be real or perceived Share your view of problems cause Decide on action to remedy

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THE SYSTEMS VIEW OF AN ORGANIZATION

EXTERNAL ENVIRONMENT

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Organization is a social system that is goal directed and has a deliberated structure.
Goal directed means an organization is designed to achieve some outcome. Social means being made up of two or more people. Deliberated structure means the tasks are divided, and the responsibility for their performance is assigned to organization members.
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MAJOR PARTS OF AN ORGANIZATIONAL SYSTEM

Organizational effectiveness is the degree to which the organization achieves a stated objective. Organizational efficiency refers to the amount of resources used to achieve an organizational goal.

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SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

CEO President Vice President of Marketing National Sales Leader Zone Sales Leader Regional Sales Leader District Sales Leader Assistant District Sales Leader Nonmanagerial Salespeople Sales Trainee Salesperson Key Account

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PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIES BY ORGANIZATIONAL LEVEL

Top Managers
P l a n n 3 5 % i n g S t a fT f i 1 0 % 5
ri na i g n n g % -

e a d 3 0 %

i n

g C

2 0 %

t r o

Middle Managers
P l a n n 2 8 % i n S g t a f T f ir n a gi n 1 0 % 1 0 % i n gL e a d 3 0 % i n g C 2 2 % o n t r o l l i

First-Line Managers
P l a n n 1 5 % i Sn t g a f f i n 2 0 % g T r a i n 2 5 % i n gL e a d 2 5 % i n gC 1 5 % o n t r o l

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A SALES PERSONNEL CAREER PATH

President Vice President of Marketing National Sales Mgr. Zone Sales Manager Regional Sales Manager District Sales Manager Key Account Salesperson Salesperso n Sales Trainee

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SALES MANAGEMENT SKILLS

1. CONCEPTUAL AND DECISION SKILLS
Refer to the cognitive ability to see the organization as a whole and the relationships among its parts.

2. PEOPLE SKILLS
Involve the ability to work with and through other people and to work effectively as a group member.

3. TECHNICAL SKILLS
The ability to perform a specialized task that involves a certain method or process.
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PROMOTION FROM SALESPERSON TO SALES Changes that occur when a person becomes a MANAGER new manager:
1.

Perspectives change Goals change Responsibilities change Satisfaction changes Job skill requirements change Relationships change
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2.

3.

4.

5.

6.

THE PROMOTION EXPERIENCE

Phase One Immobilization Phase Two Minimization or Denial of Change Phase Three Depression Phase Four Acceptance of Reality Phase Five Testing Phase Six Searching for Meanings Phase Seven Internalization

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PROBLEMS NEW MANAGERS EXPERIENCE

Lack of preparation for the job. Expected to step into the job and immediately function effectively. Often lacks an immediate peer group.
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MAKING A SUCCESSFUL TRANSITION TO

MANAGEMENT

Have a learning attitude a willingness to learn, change, adapt, and seek help when needed. Having realistic expectations. Leave the old job behind.

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THE BOTTOM LINE

Skilled sales managers are the key to a successful organization. Sales managers have five functions that, when combined, can allow them to achieve the goals desired by higher levels of management. The various types of sales managers can be broken down into the categories of vertical and horizontal. Most corporations hire a person who cannot only sell but who also shows the potential to one day become a sales manager.
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