Topics :-Topics :-Sales org and evolution – Sales Sales org and evolution – Sales MgmtMgmt

MillMill

Duties and Res of S. Mgr. – Sale Duties and Res of S. Mgr. – Sale &D. Mgmt&D. Mgmt

GuptaGupta

Nature and importance of sales Nature and importance of sales mgmt- mgmt- S&Dist Mgmt S&Dist Mgmt

Havaldar&Cavale Havaldar&Cavale

Selling function – Selling function – Selling and Selling and Sales mgmtSales mgmt

David jobber & David jobber & LancasterLancaster

Selling processSelling process Panda SahadevPanda Sahadev

Evolution of SalesSales – Is it a high esteemed Job ?

Sales Person - Cheater (Roman)

- Patron deity-Mercury (Cunning & barter)

First sales people in the US were – Yankee peddlers

First sales people in the India were – Pheriwallahs

Pack peddlers

Wagon peddlers

Baniyas

Big retailers

Wholesaler

Sales mgmtSales mgmt

Amarpreet Singh.

Father of Modern Sales Mgmt

John Henry Patterson

Sales demonstrations

Sales primer (Excellent sales techniques are written and given to others)

Canned sales approach

Assigned exclusive territories and sales quotas

Sales meetings

Strategy :- Transform sales force into an effective workforce for generating sales and profits

Nature and Imp of Sales MgmtIts integration with Mktng Mgmt :-

Mktng Team –

1) Field selling Team

2) Head Quarter Mktng Team

- Promotion : Adtsng, sales promotion, public relations & D Mktng

- Mktng Research :collecting and interpreting information

- Mktng logistics : Physical distribution of finished goods

- Customer service : Pre-Post Sales

- Co-ordination :

Nature and Imp of Sales MgmtRelationship selling :-

Relationship, buyer – Sale people

1) To service ‘A’ class customers

2) Collaborative attempt – Cost, value

3) Relationship marketing

Varying Sales responsibilities / sales positions :-

No two sales positions are similar

Sales is good for some reasons

Exciting, financial rewarding, challenging

Bottom line is good , if top line is good

Best paid

Fastest surest route to top mgmt

Only dept which generates revenue

Sales people are the work horse

Evolution of personal selling strategies

Persuasion

Negotiation

Consultative selling

Business Management

Partnership strategies

•Peddlers

•Competition

•Clients x accounts

•Empathy

•Various Disciplines

•Business administration

•Purchasing power Rtlr

•Information system

Sales org and its evolution

Small scale enterprises – Selling no problem – to produce qty

• Orders obtained with min effort and was in hand

• Core activity manufacturing, selling and other mktng problem part-time

Industrial revolution – find and sell to new markets – extensive production (mass production)

• Adjacent market could not absorb increased qty being mfrd.

• The other activities supporting prodn was capital intensive

• Authority was delegated to others – Corporate

• Depts setup in succession Mfrng, financial, and later sales dept

• Sales dept solved market expansion

Sales org and its evolution

Industrial revolution – find and sell new markets – extensive production (mass production)

• Mfrs shifted mktng() to middlemen

• Wholesaler – retailer – consumers

• Middlemen (distribution channel)–complicated market expansion

• Sales Dept concentrated more on marketing activities

• Mktng function became complex – Mktng dept

• Sales Dept – for making sales – inward flow of income

• Sales Mgmt

Sales Mgmt Positions

Sales trainee/ Sales person / Sales Representative

Branch/ area / District Sales Manager

Regional / Zonal/ Divisional Sales Manager

V.P Sales / V.P Marketing

CEO / President

National Sales Mgr

Strategic Sales Managers

Tactical Sales managers

Operational Sales managers

Job and roles of sales mgmt• Sales mgmt – direction of sales force personnel

• Sales mgmt – broader significance – Mktng Mgmt

SALES MGMT

• POLDC of personal selling (recuriting, selecting, equipping, assigning, routing, supervising, paying and motivating personal sales force – Sales force mgmt)

• Sales mgmt plays imp role in marketing, B2B markets

• Organising and Managing sales force

Duties & respons. of Sales Mngr.

• Organising sales research, product research etc

• Getting the best output form the sales force under him

• Setting and controlling the targets, territories, sales expenses, distribution expenses etc.

• Advising the company on various media, sales promotion schemes etc.

• Monitoring the company’s sales policies

Types of Personal Selling

• Industrial – (B2B)

Selling to resellers

Wholesaler or retailer – end-users

Selling to business users

Output of producer – production process

Institutional selling

Products – daily operation eg.: Xerox, J&J

• Retail

Wholesaler, dealer or retailer

• Services

Retail – hotel, transport

Industrial – insurance, banking, real estate

Selling = salesmanship = make a sale

Diverse nature of buying situation means that there are

many types of selling job – according to task

The Selling Function

Order takers -

Respond to already committed customers

Selling in contemporary organisation (selling function based on task)

Inside order takers -

Customer has full freedom to choose products without the presence of a salesperson(Eg- Retail Store)

The Selling Function

Order takers - Inside order takers -

The sales asst task is purely transactional – receiving payment and passing over the goods

Telemarketing sales team who support field sales by taking customers orders.

Delivery Salespeople -Primary job is delivering the product. (milk, newspaper)

little attempt to persuade increase in order(Eg-I wont increase my milk consumption)

Winning and losing orders will be dependent on reliability of delivery and personality of the S.P

The Selling Function

Order takers

Outside order takers -The sales people visit customers, in response to requests

They do not deliver and are replaced by more cost efficient telemarketing teams (Eg- Pepsi and Coca Cola Company)

Task is not to close the sale but to persuade the customer to specify the seller’s products (M.R)

Order creators Missionary sales people -

Order getters (eg- Working in Org in sales deptThose in selling jobs where major objective is to persuade customers to make a direct purchase. Front line sales people

The Selling Function

Order getters

New business sales people :

Task is to win new business by identifying and selling to prospects (people or organisation) who have not previously bought from the salesperson’s company

Organisational sales people :

Salespeople have the job of maintaining close long-term relationship with organisational customers (i.e industrial buyers and institutional buyers)

The selling job involves team selling supported by product and financial specialists

The Selling Function

Order getters

Consumer sales people :

Selling physical products and services to individuals.

Much selling tends to be ‘one-off’ and sales people are generally rewarded thru commission

Technical support sales people :

Provide technical support to front line salespeople

Product is highly technical and negotiations are complex

The product and financial specialist can provide the detailed tech information required by customers

The Selling Function

Order getters

Merchandisers (Eg-In fashion industry)

People provide sales support in retail and wholesale selling situations.

Orders may be negotiated nationally at head office

But sales to individual outlets are supported by merchandisers

Merchandisers give advice on display, implement sales promotions, check stock levels and maintain contact with store managers

The Selling Process

The school of sales mgmt :

Idea of sales as an art as a scientific technique

Selling process is steps in selling process

all selling doesn’t necessarily pass thru the sequential steps

The significance in the selling process will vary with

the kind of product or service,

the stage of product in the life cycle,

the nature and speed of innovation etc

The Selling Process

Duties of sales person at various selling situation

InterfaceInterface dutyduty

CustomerCustomer Product and service information – Product and service information – ‘Knowledge ‘Knowledge dispensing function’dispensing function’

Service – after sale (service agreements)Service – after sale (service agreements)

Doctor-M.RDoctor-M.R Missionary – information interchange with Doc.Missionary – information interchange with Doc.

Organisation – Organisation – Sales PeopleSales People

Market intelligence from Customer Market intelligence from Customer

– – preference patternpreference pattern

- brand switching behaviour- brand switching behaviour

- demand patterns- demand patterns

Demand forecastingDemand forecasting

Territorial redesignTerritorial redesign

Competitor’s informationCompetitor’s information

The Selling Process

Selling in various situation :

SituationSituation ActivityActivity

Retail sellingRetail selling Demonstration effort is less significantDemonstration effort is less significant

B2B sellingB2B selling Demonstrate product and its functionDemonstrate product and its function

High tech High tech consumer consumer productsproducts

Demo and consumer education play an Demo and consumer education play an imp roleimp role

Solution and Solution and service sellingservice selling

Customer demands a long relationshipCustomer demands a long relationship

Impulse product Impulse product categorycategory

The relationship and satisfaction The relationship and satisfaction extents loyaltyextents loyalty

Cash based Cash based buyingbuying

Sale closure leads to paymentSale closure leads to payment

Installment Installment buyingbuying

Sales closure takes timeSales closure takes time

The Selling Process

Overview

Identifies and locates the prospectsIdentifies and locates the prospects

Approaches and makes sales presentation, handle objection Approaches and makes sales presentation, handle objection and close saleand close sale

Follow up existing customersFollow up existing customers

Helps identify customer need, arouse interest and motivate Helps identify customer need, arouse interest and motivate

Sales process is 90% on customer handling and 10% Sales process is 90% on customer handling and 10% presentationpresentation

An orderly process where salesperson responds to the An orderly process where salesperson responds to the decision making process decision making process and close saleand close sale

Sales realization for salesperson, satisfaction for customer Sales realization for salesperson, satisfaction for customer and +ve word of mouth for the firmand +ve word of mouth for the firm

Stages in the Selling Process

Pre-Sale preparation Prospecting

Pre-approach before the interview

Approach to the

customers

Sales presentation

Handling customer objections

Closing the sales

Follow up action

Each of the step can be called sales proposition

Stages in the Selling ProcessPre-sale preparation

Sales person’s knowledge universe

Product Knowledge

•Feature

•Benefits

•Styles

•Origin

•Price

Company Knowledge

•History

•Finances

•Management

•Size

•Policies and procedures

Competitors knowledge

•Industry structure

•Market share

•Market behaviour

•Other policies

Quality, SKUs

USP

Extra value proposition

Value

Product literature

training

Whose product ?

Selling policy

After sales service

Field office location

Sales, profit - tragets

credit-COD, CWO, CBD, Allowances, Discount – Cash, trade, qty

Customers, intermediaries, media, trade shows

E

M

P

A

T

H

Y

Bargaining power

Comp mark mix & strategies

Stages in the Selling ProcessProspecting

3 sets of customers at prospecting ;- lead customer , Prospect customers and qualified customers

Lead customer

•Desire and need to purchase

Process of identifying potential buyers who have

- a need for the product & services offered

- The ability to pay for it

- the adequate authority to buy it

Prospect customer

•The buying units

•Have current demand for the product

•Look for benefits thru acquisition of product

Qualified customer

•Have need for the product

•Ability to buy them

• Need persuasion about the product delivering the desired level of satisfaction

•Other policies

AWARE, INTEREST

AWARE, INTEREST, DESIRE

X

SUSPECTS

A,I,D,A

M A D principle in selling

Stages in the Selling Process

Prospecting

Methods of prospecting

Cold canvassing - Time consuming

Endless chain customer referral - Prestige associated

Prospect pool

Orphaned

Non-competing sales force

Centre of influence

Trade shows/ demonstration

Direct mail

Telemarketing

Observation- ’bird dogs’

Networking

Stages in the Selling ProcessPre-approach before selling

Professional/Personal characteristic & need

•General Need – benefit match

•Hierarchy of need

•Complex need pattern

Sales Strategy

Call objective

Development of customer profile

Determination of customer benefits

Determination of sales presentation

Demographic, psychographic, behavioural characteristic

Feature Advantage Benefit analysis

Sales call, permission for demo, formal meeting

Innovator ?

Laggard ?

Stages in the Selling ProcessApproach to the customer

To get customer’s attention and generate interest in him for the sales presentation

Sales person to fix an appointment with the customers at desired place and time

Various approaches :-

•Benefit approach

•referral approach – refree

•introductory approach – introducing himself and the company

•product approach – product demo to customer for generating interest & attention

Find who is the decision maker so that presentation made to decision maker

Mistakes : Disregarding the concept of first impression

Forgetting the goal of obtaining the order

Selling the company’s image than the products

Lack of responses to needs and objections of customers

Talking and arguing instead of listening

Failing to ask for the order

Stages in the Selling ProcessSales presentation

Two way communication between the salesperson and the prospect

Support by sales aid like brochure information literature, visual aids like charts, slides, and movie clips.

Three categories of sales presentation

Canned presentation

Prepared by company little scope for modification for prospects

Organised presentation

can be modified by according to company policy and systems

Tailored presentation

Specific to the customer with detailed evaluation of the business

AIDA ( Aware, Interest, Desire,

Types of presentation : ORAL presentation and WRITTEN proposals

Written proposals – Selling High value industrial products & Govt

Oral presentation – solution and software selling

Less expensive B2B selling

Stages in the Selling Process

Handling customer objections

No objection – Order taker not order getters

Complaints - Major complaints are a disadvantage in the product

Additional benefits overtake minor complaints

METODS OF HANDLING CUSTOMER OBJECTION

- Superior feature method - additional advantage/ benefit

- yes but method - tactful handling

- reverse English method - Objection into bas of buying

- indirect denial method - affirmative answers

- pass out method - Neutral opinion

- Comparison method

Stages in the Selling Process

Closing the sale :

Tactful handling of objection leads to closing

Closing the sale is the goal of any selling process for a salesperson

METODS OF CLOSING THE SALE

- Assumptive close

- Negative close

- Caution method

- direct order method

- choice narrowing method

- ownership suggestion method

Who dare to ask WILL YOU BUY ? & win a sale ?

Stages in the Selling Process

Follow up action :

Objective of follow-up :

follow-up normally begin by thanking the customer after the sale

Helps to evaluate the competitive sales moves

Generate additional lead from satisfied customers

Maintaining goodwill and to check if the promises are made

Identify the strength and weakness in the product

After sales service

Stages in the Selling Process – B2B

Sales proposition

System Selling – 4 distinct structure

Power Structure

Group Structure

Role structure

Status Structure

Negotiation selling :-• Characteristics of the product

• Special features

• Packaging

• Inventory

• Delivery

• Price

• Technical support

• Safety factors