sales management by sir

7/28/2019 Sales Management by Sir

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What is sales ?

Asale is the highest activity involvedin selling products or services in return for money or

other compensation. It is an act of completion of acommercial activity

Selling : Selling is considered as persuading "art"
http://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Persuasionhttp://en.wikipedia.org/wiki/Persuasionhttp://en.wikipedia.org/wiki/Selling


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Management

Management comprises planning,organizing, staffing, leading or directing &

controlling an organization (a group of one or more peopleor entities) or effort for the purpose of accomplishing a goal
http://en.wikipedia.org/wiki/Staffinghttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Control_(management)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Control_(management)http://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Staffing


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Sales management1. S.M interfaces is the management of sales forces.

2. The planning ,direction and control of personalselling , include recruiting ,selecting ,assigning,routing ,supervising and motivating as thesetasks to the personal force.


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Objectives of sales management

1. Establishing the distribution set up.

2. Maximization of sales.3. Maximization of profits.

4. Increases of market shares.

5. Return on equity involved.


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Selling Concepts

Starting point focus Means Ends

Factory product selling& promotion profit throughsales volume


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Marketing concept Starting point focus Means Ends

Market customer needs marketing profit through

customer satisfation


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Sales force management process

Setting sales force objectives

Creating a sales force strategy

Recruiting the sales force

Training the sales force

Developing motivation and compensationPlans for the sales force

Evaluating the sales force


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What is salesmanship

Salesmanship is a personal action or effort on the part of anindividual which is intended to bring about the sale of the

goods for sale. More broadly speaking, salesmanship is theart of selling something to somebody, and everything whichcontributes to the consummation of this exchange isnecessarily a part of salesmanship.

[email protected]


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Salesmanship

Meaning:-

Is the art of selling goods to the buyer for a

consideration. It is the power or ability to influence,persuade ,remove ignorance and doubt of people topurchase .

Suspect prospect customer


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Features of salesmanship

1. Ability to persuade

2. Benefits both the buyer and seller

3. Stands for commercial honesty

4. Aims at winning buyers confidence

5. Salesman acts as Link between seller and

consumer6. Educative process

7. Creates satisfied customers


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Kinds of salesmanship

Creative salesmanship

Competitive salesmanship

Professional salesmanship


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Limitations of salesmanship

1. Pressure selling

2. Expensive

3. Recruiting right salesman

4. No requirement in monopoly market

5. Exits of salesman (salesman loyal consumer)

6. Absence of competition7. Poor quality of the product


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State of scarcity

Nature of product

High price product


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Sales manager He is the person who steer the wheels of the

organization towards definite destination.

It is he plans, organizes, directs, motivate,coordinate and controls the activities of the sellingdepartment for profit to the owner and satisfaction

to the consumers.


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Duties and Responsibility of Sales

Manager1. Planning sales

2. Advising management

3. Selection and appointment4. Coordinating and directing

5. Training the sales force

6. Allocation of sales territories & quotas

7. Compensation the sales personnel8. Maintaining the sales office

9. Controlling the sales activities

10. Studying market condition

11. Managing sales promotion and advertising


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Qualities of sales manager

1. Physical qualities

a. Good appearanceb. Sound health

c. Good posture

d. Pleasing voice


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2. Psychological or mental qualities

Quick action

Imagination Self confidence

Zeal

Initiative

Observation


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3. Character qualities1. Determination

2. Loyalties3. Courage

4. Self management

5. Sincerity


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4. Intellectual qualities

1. Mental capacity

2. Sound judgment3. Ability of Teach


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Personal selling

Personal selling is a direct, face to

face, seller to buyer conversationwhich can communicating relevantfacts about product to the prospect sothat he or she take buying decision


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Function of personal selling To make sales

Service to customer Keep sales records

Executive function

To develop goodwill of the company

To achieve sales targets.


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Advantages of personal selling

1. Two way interaction

2. Tailoring of the message as per

customer3. Lack of distraction

4. Involvement in the decision process

5. Source of research information


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Disadvantages of personal selling

Sales force management conflicts

High cost

Poor reach

Inconsistent message


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Selling process

Prospecting

Pre Approach

Approach

Presentation & Demonstration

Handling Objections

closing

Follow up


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prospecting Identifying prospective buyer of the product.

Prospect are those who have need, will and power

to buy


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Methods of prospecting

1. Cold calling

2. Personal observation3. Direct mail.

4. Companies record

5. Newspaper

6. Retailer

7. Customer reference


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Pre approach

knowing about prospect likes and dislikes, needs,preference, habits, nature, behavior economiccondition.

This kind of preparation is called pre approach


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Sources of information for pre- approach

Newspaper

Company records Customer

Special investigation

retailer

Directories

Other sources( salesman , club member etc)


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Approach

Meeting the prospect face to face

The pre approach is knowing things only in partand to know him fully an approach is necessary.


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Methods of approach

Introductory approach

Product approachCustomer benefit

Curiosity

Premium

Shock


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Methods of approach Survey

question approach


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Presentation and demonstration

Proper arrangement and decoration

of the product and also includeinterior of the shop , an eye catchingdisplay and the proper placing of the

products on the counter . -presentation


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Essentials of sales presentation

Clarity

Showing of proper quality and quantity

Dramatization

Appealing to the senses

Guarantee


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Demonstration

Showing with proof and

example how a product orservice benefits the buyer


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Types of demo

Demo in use

Demo of specific features


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Handling objectionsListening attentively

Anticipating objectionsAdmitting valid objection

Preventing objections


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Slide 20-31

Techniques for handling objections


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Closing and methods of closing

Affirmative close

Erecting barriers

Narrowing the choice Pros and cons method

Direct close

Offering inducements


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Follow up Thanks giving

In case of failure (repeat sales generation)

It assure order will not cancelled Establishing relationship.


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AIDAS.Attention

Interest

Desire

Action

Satisfaction


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Attention The most vital part of any email, leaf let, sales letter, brochure or any

other promotional activity.

Tell your customers IMMEDIATELY precisely'what's in it for them'.

Without answering this question, why should anyone read any further?

The headline MUST be compelling, attention grabbing and totallyirresistible to the target market, or the company will lose them!


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Interest

Once you have successfully attracted yourcustomers you must keep their interest.

Re-emphasizing and expanding on the headline,assuming that your headline includes the mainbenefit, can do this.

If they like the headline customers will want moreof the same, so immediately follow on from thebenefit in the headline.


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Desire You need to create desire

in a customer, becausethey will buy what they"want" not necessarily

what they need.

You can do this byintroducing bullet pointsor some more punchyinfo.

One of the best ways to dothis is to look at thefeatures of your product orservice. Firstly write themall down and then

alongside write "whichmeans that...".

What comes next is therest of the benefits to the

prospect: why they maywant what you are selling.


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Action

Strange though it may seem the call to action is mostdefinitely required. Just because you have put your address,phone number or e-mail address etc on the bottom of yourleaflet means nothing.

You must use words like 'Call Today', 'Call Now to avoiddisappointment!' 'E-mail us today', 'Fill in the reply slipbelow and post it free today', and so on.

Make it as easy as possible for customers to contact you,because most people are lazy and so the simpler the better.Tell your customers what they need to do to take action.


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Satisfaction Sales person should always thank the prospect and

even go to the extent of saying I appreciate yourchoice sir, and you have taken an excellent decision.

Sales person should also ensure that the delivery of theorder takes place within the time frame and all otherpromises are kept, regarding installation, freeservicing etc.


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Here's some Great Headline /

Word Combinations How to..... How Would..... How Much..... 100% Guaranteed.. How You Can..... Who Else Wants..... Profit From..... Discover How To.. Save Money..... Save Time..... The Truth About..... Little Known Secrets.. Yours FREE.. The Ultimate In .. Take Advantage Of..

Your Chance To..... Proven To..... Your Last Chance To..... Money Back Guarantee...... Best Kept Secrets.. 7 Reasons Why..... Discover The Magic Of...... Now You Can....... Incredible Offer ..... Here's How You...... Best Kept Secret...... What Better Way To...... Never Seen Before..... Cash In On...... Absolutely FREE.....


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Golden rule of AIDA

A golden rule is to always include your telephone number,

address,

email address,

website address

or order form

on all literature.


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Analyzing market potential1. Market identification:

1. who buys the product,2. who uses the it

3. Who are the prospective buyers and

users


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.2 Market motivation

1. Why do people buy

2. Why dont people buy

Resulting in

1. How best to present the product in sales talks

2. The relative effectiveness of promotion methods


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3. analysis of market potential:

1. select the market factors associated withproduct demand.

2. Eliminate those market segments that don'tcontain prospective buyer of the product


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Sales or demand forecasting The term forecasting is used to refer to a prediction for

the future period.

A sales forecast is an estimate of the amount or unitsales for a specified future period under proposedmarketing plan or program me.

The sales forecast is a prediction of expected sales for aspecified period. It is an estimate for sales in rupees orunits for specified future period. In other words, it isbasic tool for a anticipating the nature of future salesor sales or


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Methods of forecast

1: qualitative methodsExperts opinion

Surveys of buyer expectations

Sales force composite

Delphi technique

Historic method


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2: Quantitative methodsTime series methods

Test methods

Regression methods


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Sales budget Sales force budget is the amount of money

available or assigned for a definite period( oneyear). It is based on estimates of expenditureduring that period and on proposals for financingthe budget

The sales budget is based on the salesforecast and revenue expected

S l b d t


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Sales budget

Planning

Coordinating

Control


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Territory Management

A Sales Territory Comprises a group of customersor a Geographical area assigned to a sales unit.

It many or may not have a geographicalboundary.

It includes

Market potential

No of customers

Firms Experience Market Share

Capability of sales person and frequency of callsmade


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Sales territories

Is a particular group ofcustomer and geographic area

assigned to a salesperson.


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Why sales territories

Full coverage of marketTo build sales person responsibility

To evaluate performance

To improve customer relationsTo reduce sales expenses

d h f


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Factors determining the size of

sales territories.Nature of the product

Demand for the product

Transport facilities

Competition

Population

Advertising and promotion

Ability and experience of salesman


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ACTIVITIES IN TERRITORY

MANAGEMENT Trade relations

Potential business

Coverage Reports

Territory Size

Selling Technique

Customer Satisfaction

Selling Abilities


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Designing Territories Select a basic geographical Unit

Determining the Sales potential in control units

Combining the Control units into tentativeterritories

Adjusting for coverage Difficulty and relocatingtentative territories


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Sales quota Expected performance Sales quota is a sales goal assigned to a marketing unit

to be for managing the sales effort


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Sales QuotasA Sales Quota refers to an expected routine

assignment to sales units, such as territory,districts or branches etc.

Sales Quotas can be set for individuals

Used to Plan, Control and evaluate the sellingactivities of a company.

EVALUATE

Control

Appraising

Expences,profitability

Plan Sales Plans,Forecasts,Budgets


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Types Of Quotas

Sales Volume Quotas

Profit Quotas Expense Quotas

Activity Quotas

Quota Combinations


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Sales Volume QuotasSales Volume Quotas include Sales in Rupees or

Product Unit objectives for a Specific period of time,

Eg Bajaj calculates sales as number of vehicles sold.

It can be set in following areas Product Line

Product range

Sales Divisions

Sales Territories Sales Districts

Branch Offices

Sales Force (individuals)


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Profit Quotas Used in Multi product Companies Where

different products contribute to varying levels of

profits . Concentrate on the high profit products by the

sales person.


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EXPENSE QUOTA

Expense Quotas are related to Selling costs .

Set Quotas for expenses linked to different levelsof sales attained by their sales force

% of sales volume in a territory and sales personmany spend only this amount as an expenditure.


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Activity Quotas Set objectives for job related duties useful forattaining salesperson performance targets

Help in attaining long term objectives as

goodwill Eg

No of sales presentation made

No of service calls made No of dealers visited

No of calls made for recovery

No of new accounts opened


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Quota Combinations Commonly used are Sales and activity Quotas

sales management by sir

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