chapter 1
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SALES MANAGEMENT & PERSONAL SELLINGChapter 1.
Concept, Nature, Role of Sales Management in Marketing, Salesmanship, Specific characteristics of a successful salesman, the evolving face of personal selling
WHAT IS SALES MANAGEMENT?
An earlier explanation/ definition of sales management was, directing the sales force personnel.
Later as the responsibilities taken up by the sales team grew and as the sales function evolved into a more holistic function a new definition has emerged :
Sales Management is management of all marketing activities including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.
CURRENT DAY DEFINITION OF SALES MANAGEMENT
The American Marketing Association has given a current day definition of sales Management as:
The planning, direction and control of personnel selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personnel sales force
OBJECTIVES OF SALES MANAGEMENT
From the Organizations Viewpoint there are three general objectives of sales management
a. Achieving the desired sales volumeb. Contribution to profits in the organizationc. Continuing growth
SALES MANAGEMENT PROCESS
Resources
HumanFinancial
Raw MatlsTechnologyInformation
Controlling
Evaluating the past to guide the
future
PlanningBuilding a profitable customer oriented
sales team
LeadingGuiding average people to perform at
above average levels
TrainingEducating
sales personnel to
satisfy customers
Staffing Hiring the
right people to sell and
lead
PerformanceObtain Goals
Product sales & profits
Customer satisfactio
nEfficiencyEffectiven
ess
NATURE & IMPORTANCE OF SALES MANAGEMENT
Nature & Characteristics of Sales Management
A. Its integration with marketing Management -
B. Relationship SellingC. Varying Sales responsibilities
INTEGRATION OF SALES MANAGEMENT WITH MARKETING MANAGEMENT
Aligning the sales plan with the marketing plan
Marketing Research Customer Service Coordination Promotions (including advertising, Sales
Promotion, Publicity & PR)
RELATIONSHIP SELLING Buyers and salespersons have some type of a
business or working relationship Every relationship is an exchange Relationship Marketing aims at creation of
customer loyalty The spectrum of relationships includea. Transactional relationship (Selling)b. Value added relationship (Counseling)c. Collaborative relationship (Partnering)
VARYING SALES RESPONSIBILITIES
Response Selling Sales Support Technical Sales Support Demand Creator or business developer Solution vendor
SALESMANSHIP
Sales Management, Personal Selling and Salesmanship are all related. Sales management directs the personal selling effort which is turn is implemented largely through salesmanship
Salesmanship is one aspect of personal selling and never all of it.
It is one of the skills used in personal selling
SALESMANSHIP DEFINITION
Salesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction.
It is also defined as a seller initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favour of the sellers products or services
SPECIFIC CHARACTERISTICS OF A SUCCESSFUL SALESMAN
People Skills – Ability to motivate, lead, communicate and coordinate effectively
Managing Skills- Administrative skills like planning, organizing, controlling & decision making
Technical Skills – Training, Selling skills, negotiating skills, use of IT, problem solving abilities, Product knowledge
PERSONAL SELLING
It is a direct presentation of a product to a prospective customer by a representative of the organization selling it.
It takes place face to face or over the phone and it may be directed to a business, person or a final consumer
TYPES OF OBJECTIVES OF PERSONAL SELLINGSome of the Objectives of personal selling are: To shoulder the entire responsibility of the
promotion mix (when no other element of Promotion mix is used)
To maintain contact with existing customers, take orders etc (also known as servicing existing accounts)
To search and obtain new customers
OBJECTIVES ….CONTD…
To secure customers cooperation in stocking and promoting the product line
To inform and educate customers To assist customers in selection To provide technical assistance To assist with training the middlemen’s sales
personnel To collect market information
DIVERSITY OF PERSONAL SELLING SITUATIONS
Personal Selling situations -Service Selling Inside Order Taker , Delivery Salesperson ,Merchandising Salesperson,
Missionary, technical Sales person
Developmental SellingCreative sales person of tangibles, Creative salesperson of intangibles
Creative Selling Political, Indirect, Back door
Salesperson in multiple Sales
SERVICE SELLING Inside Order taker – here the salesperson waits on
customers (e.g Sales Counter person) Delivery Salesperson – Engaged in delivering the
product (Person who delivers Milk, Eggs) Merchandising/Route Sales Person – Works as an
order taker on field mainly with retailers Missionary _Works only to create goodwill and
disseminate information . Does not do any order taking
Technical Sales Person – Emphasizes technical Knowledge and educates customer
DEVELOPMENTAL SELLING
Creative sales person of tangibles – Sales person selling vacuum cleaners , encyclopedias
Creative sales person of intangibles- Sales person selling Insurance, advertising services, Educational programs
CREATIVE SELLING (BASICALLY DEVELOPMENTAL)
Political /Indirect/Back Door – Selling big ticket items by catering to the other interests of the customers (which have no connection with the product)
Salespersons engaged in multiple sales- Where the sales person is required to make presentation to various entities of an organization (Ad agency salespersons making presentations to selection committee, creative department, product department etc)
THEORIES OF SELLING
Is selling a science which can be taught and has several basic concepts?
OR Is it an art which can be learned through
experience? This has led to two contrasting approaches to
theories of selling The first approach relies on Experiential
learning The second approach draws from
fundamental concepts of behavioral sciences
THEORIES OF SELLING
Seller Oriented AIDAS theory Right set of circumstancesBuyer Oriented Buying Formula TheoryBehavioral Equation Theory
AIDAS THEORY
A – Secure Attention I – Gain Interest D – Kindle Desire A- Induce Action S – Build Satisfaction
RIGHT SET OF CIRCUMSTANCES THEORY Also known as situation response theory It holds that particular circumstances prevailing in
a selling situation will cause the prospect to respond in a predictable way
Set of circumstances include external and internal factors
(E.g Salesperson to Prospect – Let have coffee – Sales person and proposal to have coffee are external factors
- Prospects desire to have coffee or to go out with salesperson are internal factors)
RIGHT SET OF CIRCUMSTANCES THEORY
It stresses on importance of salesperson controlling situations
Does not handle the problem of influencing factors internal to the prospect
Fails to address the response side of the Situation-Response interaction
BUYING FORMULA THEORY OF SELLING
Here the buyer’s needs receive major attention
Need (Problem recognition) Solution Purchase
Need (Problem recognition) Solution Purchase Satisfaction
BEHAVIOURAL EQUATION THEORY J A Howard explains buying behaviour in terms of the purchase decision
process. He uses four essential elements of the learning process namely Drives – Strong internal stimuli that impel the buyers response
Innate –Physiological like hunger, thirst etc
Learned – Strive for status Cues – Weak stimuli that determine when the buyer will respond
Triggering – Activate the decision process (price, smell, aroma etc)
Non-Trigerring- Influence the decision process but do not activate (Package, information on the cover etc)
Response – is what the buyer does Reinforcement - any event that strengthens the buyer’s tendency to make
a particular response
B = P X D X K X V
B – Act of purchasing
P – Predisposition or inward response tendency
D- Present Drive level
K – Intensive potential ( value of the product to satisfy the need)
V – Intensity of all cues
PROSPECTING
The planning work which is essential in eliminating calls on non buyers is called as prospecting
Steps Formulating prospect definitions Searching out potential accounts Qualifying prospects and searching out Relating company products to each prospects
requirement
OBSTACLES TO SALES
Sales Objections Real Insincere
CLOSING SALES
Indirect Close Direct Close
EXERCISE
As a seller of cosmetics, do a role play for selling a bag of the newly launched Revlon lipsticks to me (Roll Nos. 1-5, 6-10,11-15, 16 -20)
Consider that you are a company manufacturing Photocopiers. Carry out the prospecting exercise for a new range of office automation product like a facsimile (fax) machine (Roll Nos. 21 – 25, 26-30, 31-35, 36-40)
Write down at least two examples of various types of personal selling situations (41-60)
CASE STUDY
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