sales mba 10
TRANSCRIPT
-
8/6/2019 Sales Mba 10
1/26
Sales &Distribution
Management,
For MBA Batch 7B.
Term 6 Semester 3Facilitator Prof: Sreekumar.B.Pillai.
-
8/6/2019 Sales Mba 10
2/26
Why sales management?
Sales function is a very primary discipline oftrade that prevailied since the beginning of
commercial activity.
Sales function has improved the standard of
living of communities. Sales function has opened up new markets and
created new products based on feedback given
by salesmen.
Sales function has created lot of entrepreneurswho had benefited from their sales expertise.
-
8/6/2019 Sales Mba 10
3/26
Sales management:
Sales force is the final interphasebetween the manufacturer and the
consumer.They are reponsible for the
exchange of goods for cash.
Sales force are the best source ofmarket feedback for forecasting and
planning.
Sales force are the best personnel to
Implement Customer relationship
management.
-
8/6/2019 Sales Mba 10
4/26
What is sales management?
A sale can be defined as a commercialtransaction which results in a transfer of
ownership in exchange for a Monetary
consideration.
All functions that include the analysis,Planning,organising, directing and
controlling of the sales activities of an
organisation constitutes sales
management.
-
8/6/2019 Sales Mba 10
5/26
Sales management and marketing.
Though Sales mangement is an integral
part of marketing management thedifference between the two must be
made clear.
-
8/6/2019 Sales Mba 10
6/26
Professional selling today:
Has to meet the Increasedsophistication of buyers .
Has to meet the intenseprofessionalisation of purchasing
management of both indivuduals andCompanies.
Sales force has to understand CRM andthat sale does not end at the POS.
Has to be trained in order to meet thechallenges of the market.
-
8/6/2019 Sales Mba 10
7/26
Theories of selling practice.
Traditional selling approach: also called thesalesmanship approach,a sales persons
behaviour is regarded as the key ingredient in
the sales process.
a)Canned sales presentation approach.These are fully structured presentations which are
memorised by the salesperson.Frequently used
in door to door selling,canned sales provide a
preset procedure of what is considered to be
the best way to sell the product.Here theprospect is considered to be passive.
-
8/6/2019 Sales Mba 10
8/26
Traditional approach ..contd: Stimulus response theory:
This theory states that prospects are
trigerred to buy upon hearing a certain set
of statements-provided that the
statements are presented in the correctmanner.If the salesman provides the
right stimulus then the prospect will
respond to the stimulus by purchasing
the product or service.
-
8/6/2019 Sales Mba 10
9/26
Traditional approach..contd.
Selling formula approach:Proposed by Arthur FredrickSheldon in 1902 as the AIDR (r for resolve) was lateradapted into sales management as AIDAS.
According to this principle selling is a net result of the
Following set of factors set in motion one after the other:
A for AttentionI for Interest.
D for Desire.
A for action and
S for satisfaction.
-
8/6/2019 Sales Mba 10
10/26
Modern Viewpoint of selling:
The Buyer seller Dyad:
The Dyad represents a situation where two
people interact.This theory explains that
external factors like the future expections
of both the seller and the prospect caninfluence the sales methodology.
The external and internal environments of
both seller and the prospect can
influence the sales approach that willhave to be implemented.
-
8/6/2019 Sales Mba 10
11/26
Modern approaches
Need satisfaction selling approach.
Based on notion that the customer is buying to
satisfy a particular need or set of needs. The
Stress is on probing the customer to understand
his needs ,and only after identifyng needs the
salesperson begins to offer his products forSatisfying these needs.
-
8/6/2019 Sales Mba 10
12/26
Modern theories:
Problem solving approach.
This is an extension of the need satisfaction
selling.It goes beyond identifying needs to
developing alternate solutions for satisfyingthese needs.
-
8/6/2019 Sales Mba 10
13/26
Modern selling theories.
Consultative selling.
Consultative selling is the process of helping
customers reach their strategic goals by
using the products,services and expertise ofthe sales organisation.this method focuses
achieving strategic goals of customers not
just meeting needs or solving problems.
-
8/6/2019 Sales Mba 10
14/26
Salesmanship:
Good salesmanship consists of the following:
Proper positioning, prospecting,and pre-call planning
.
Because of the above you will be in front of the right
people at the right time with the right kind of
message.
Good salesmanship is about getting trust,buildingtrust is based on proper approach and not
dominating the conversation.
Professional selling is based on asking enough of the
right questions and not presenting any solution till
you have discovered
a) What they will buy,
b) When they will buy,
c) How they will buy
d) Under what conditions they will buy.
-
8/6/2019 Sales Mba 10
15/26
Salesmanship..contd.
Properly presenting your solution based on theconditions,terms,and parameters under which
your prospect will buy is the essence of the
successful sale.
People expect claims to be made by salesmenon their products but they are more impressed
when someone else does it or they are able to
experience the claim themselves.
No sale is made unless you ask someone to buyyour product.
The real work begins after your first sale.
-
8/6/2019 Sales Mba 10
16/26
Key factors for effective selling
Positioning: The relative ranking orperception that prospects have of
you,your product, and /or your
organisation relative to your competition.
Prospecting:The proactive steps taken toidentify,isolate and get in front of
qualified prospects.
Pre-call Planning: The research ,data
gathering and preparation that you mustmake in order to be totally prepared for a
sales presentation.
-
8/6/2019 Sales Mba 10
17/26
Pull Vs PushPropecting:
Pull Prospecting: Attracting prospects through abroad based process that could include such
methods as authorships,networking and gaining
industry specific celebrity status.People want to do
business with you if you are a busy,highly sought
after person more than if you appear to bedesperate ,hungry,aggressive sales person seeking
your next dollar.
Push prospecting: Contacting prospects one at a
time ,individually,proactively,through such methods
as cold calling or phone solicitation.
-
8/6/2019 Sales Mba 10
18/26
Vital Questions:
Ideally a salesman should research the
following issues before getting in front of anyprospect:
Who will I be competing against?
What questions is the prospect likely to askme?
Is the person Im calling on a decision maker orinfluencer?
How can I develop Internal advocacy?What isthe biggest single problem I can help the
prospect solve? How far along is the prospect in the buying
process?
-
8/6/2019 Sales Mba 10
19/26
Aim to be trusted not liked!
If you build trust you are in a betterposition to sell value.If you seek to be
liked,you are only going to sell price.
Buyer trust means that the prospect has
the belief,confidence and full expectationthat you ,the salesperson are a person of
integrity and that you and your
organisation will deliver all that you
promise.
-
8/6/2019 Sales Mba 10
20/26
Dont overwhelm!
Good salespeople do not dominate the
conversation.They also dont come across as
aggressive.They do not offer unsolicited small
talk.If the prospect wants to talk let him/hertalk. If not ,simply tell the prospect why you
are there and what you would like to
accomplish on that call.
-
8/6/2019 Sales Mba 10
21/26
Knowledge sells:
It is better to position yourself as a
business advisor,strategic
partner,industry expert or product-
specific Guru than to position yourself asa salesperson.Unfortunately salespeople
are just not positioned nearly as well in
the marketplace as the others are.
-
8/6/2019 Sales Mba 10
22/26
Application based selling:
Presenting the product or service in thecontext of precisely how it can be
applied to solve your prospects biggest
problem,agitation,or difficulty or to
address a solution your prospect isseeking.this is in contrast with focusing
on features ,benefits,price or design.our
prospects are looking for
answers.Application based selling is theessence of professional selling.
-
8/6/2019 Sales Mba 10
23/26
Traditional sale strategies:
Market penetration: trying to gain more market share withexisting products.eg; special promotions
Product development/ account penetration: creating newproducts to get more business out of the companys existingcustomers/ selling more products to the same accounts.new
packing/packaging,new formats etc Market development: finding new markets eg; exports
Diversification: combining new products and new markets.Eg: Kingfisher going from alco; beverages to air travel.
-
8/6/2019 Sales Mba 10
24/26
Strategic sales Planning.
This is the process by which a companyattempts to match its sales operations with therealities of its internal and external environments.
Strategic planning is unique in that it assures thefirm that it will be prepared to meet challengesthat arise due to changes in the environment.
Modern Strategic sales planning comprises of :
1)Window Driven Planning.
2) Horizontal information exchange.
3) Vertical Information exchange.
-
8/6/2019 Sales Mba 10
25/26
Retailing and selling .Are they the same?
Retailing is the sum of all the marketing activity thatare undertaken by a component of the supply chainwhen it is involved in selling goods or services directlyto the consumers for their personal, family orhousehold use.
According to the ARA such a retailer should have more
than 50% of their sales revenue through direct sale tothe customer.
Though they have the same basic function retailersvary greatly in size, organisation ,nature ofproduct/service offering and sales strategies.
Study of the Planning,implementing,controlling anddirecting the processes that lead to the transfer ofgoods from the retailer to the consumer constitutesRetail management
-
8/6/2019 Sales Mba 10
26/26
Factors that have to be considered as challenges to modern
sales function:
Short life cycles. Short shelf life.
High Volatility(fluctuation of demand).
Low predictability of demand.
High Impulse purchase.
Time to market.
Time to serve
Time to react.