1. SALES MANAGEMENT
SESSION-1
BLOCK-I SALES MANAGEMENT FUNCTIONS
UNIT-1 INTRODUCTION TO SALES
MANAGEMENT
UNIT-2 PERSONAL SELLING
UNIT-3 SALES PROCESS

2. SALES MANAGEMENT:
It has been defined as the management of a
firm’s personal selling function while
distribution is the management of the
indirect selling effort i.e.,selling through
extra corporate organizations which form the
distribution network of the firm. The sales
management task thus includes analysis,
planning, organizing, directing and
controlling of the company’s sales effort.
UNIT-1 INTRODUCTION TO
SALES MANAGEMENT

3. BLOCK-1 SALES
MANAGEMENT:BASIC FUNCTIONS
UNIT-2 PERSONAL
SELLING &
UNIT-3 SALES PROCESS

4. Examples of Personal Selling
Retail selling
Field selling
Telemarketing
Inside selling

5. Relative Importance of
Advertising and Personal Selling
Pre-transaction:
Pre-transaction:
Create recognition and
Create recognition and
info understanding
info understanding
Personal
selling
Advertising
Post-transaction:
Post-transaction:
Reminder and
Reminder and
reassurance
reassurance
Transaction:
Transaction:
Persuasion
Persuasion
Personal
selling Advertising
Personal
selling
Advertising

6. Characteristics of Personal Selling
Pro
Con
Flexibility
Adapt to situations
Engage in dialog
Builds Relationships
 Long term
 Assure buyers
receive appropriate
services
 Solves customer’s
problems
Can not reach mass
audience
Expensive per contact
Numerous calls
needed to generate
sale
Labor intensive

7. Types of Salespersons
ORDER
GETTERS
Current
customers
New
customers
ORDER
TAKERS
Inside Order Takers
(via mail, telephone,
internet)
Outside Field Sales
SUPPORT
PERSONNEL
Missionary
Salespersons
Trade
Salespersons
Technical
Salespersons

8. Personal Selling
• Salespeople have many names
◦
◦
◦
◦
◦
◦
◦
◦
Agents
Sales consultants
Sales Representatives
Account
Executives
Sales Engineers
District Managers
Marketing
representatives
Account Development
Representatives
16-8

9. Personal Selling Tasks
Order getting
 Seeking
out
customers
 Creative selling
 Pioneering
 Account
management
Order taking
Routine
writing up orders
checking invoices
assuring prompt order
processing
Suggestive selling

10. Personal Selling Tasks
Missionary
◦ Detailer
◦ Goodwill
◦ “Closers”
Cross-functional
Account service rep

11. You are part of the total product

12. Diversity of Personal-selling Situations
Group A (service Selling)
1. Inside Order Taker –”waits on” customers; for example,the sales clerk
behind the neckwear counter in a men’s store.These jobs are known as
technical support staff, sales assistants, telemarketers, and telesales
professionals.
2. Delivery Salesperson – mainly engages in delivering the
product; for example, persons delivering milk, bread, or
fuel oil.
3. Route or Merchandising Salesperson – operates as an order taker but
works in the field – the soap or spice salesperson calling on retailers is
typical.
4. Missionary – aims only to build goodwill or to educate the actual or
potential user, and is not expected to take an order; for example, the
distiller’s “missionary” and the pharmaceutical company’s “detail” person.
5. Technical Salesperson – emphasizes technical knowledge;
for example the engineering salesperson, who is primarily a
consultant to “client” companies.

13. Group B (developmental Selling)
6. Creative Salesperson of Tangibles – for example, salespersons
selling vacuum cleaners, automobiles, and encyclopedia.
7. Creative Salesperson of Intangibles – for example. Salespersons
selling insurance, advertising services, and educational programs.

14. FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
APPROACHING THE PROSPECT
Pre approach: QUALIFYING
PROSPECTS
PROSPECTING: IDENTIFYING POTENTIAL
CUSTOMERS
The Personal Selling Process

15. Creative Selling Process
Prospecting: Identifying
Prospecting: Identifying
likely new customers
likely new customers
◦◦ Leads
Leads
◦◦ Developing lists of
Developing lists of
Potential Customers
Potential Customers
Pre-approach (Qualifying)
Finding and analyzing
information about prospects
Evaluating a prospect’s
potential

16. Approaching The Prospect
HOW DO WE MAKE THE
INITIAL CONTACT & BUILD
RAPPORT
There is only one
time to make a first
impression

17. Creative Selling Process
Making The Sales Presentation
Using Persuasive communication
 Hold Attention
 Stimulate Interest
 Desire
“Tell the product’s story”


18. Creative Selling Process
Handling Objections
◦ Questions
◦ Reservations
Understand
Concern
Counterarguments
Acknowledge concern
Clues to process

19. Overcoming Objections
IF HE HADN’T TOLD
ME WHAT HIS
OBJECTION
WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!

20. Creative Selling Process
Closing the Sale
Closing signals
Trial close
Asking the
prospect to buy

21. Creative Selling Process
Following Up
7
Commitments
met
◦ Shipment
◦ Performance
Reinforce
L-R
relationship
Satisfied customers
rebuy & recommend

23. Managing the Sales Force
Designing
Sales Force Strategy and
Structure
◦ Sales Force Structure
 Territorial sales force structure
GM Sales
Sales mgr
South
All products
Sales mgr
Central
All products
Sales Mgr
West
All products
 Product sales force structure
 Customer sales force structure
 Complex sales force structure

24. Managing the Sales
Force
Sales
Force Strategy and Structure
◦ Sales Force Size
 Many companies use the workload
approach to set sales force size
◦ Other Issues
 Outside and inside sales forces
 Team selling

25. 




Try this..
There are 150 large prospects (A type), 220 medium prospects (B), and 510 small prospects (C) to
be covered for sales
No. of calls in a year and duration of each call required for each A (52 calls 60 minutes each),
B(24,30), C (12, 15)
Each sales person works for 40 hrs per week, 48 weeks (selling time 45%, remaining in travel, office
work etc)
Find number of sales people required

Work load method
Classify customers as per potential
 A - large 150
 B - medium 220
 C - small 510

Decide time per sales call and frequency
 A 60 min x 52 calls pa = 52 hrs
 B 30 min x 24 calls pa = 12 hrs
 C 15 min x 12 calls = 3 hrs
Calculate work load to cover entire market
 A 150 x 52 = 7800 hrs
 B 220 x 12 = 2640
 C 510 x 3 = 1530
 Total 11970 hrs
Workload Method

26. Determine the total work time available with each sales person
 40 hrs per week x 48 weeks = 1920 hrs pa
Divide it by tasks
 Selling 45% 864 hrs
 Non selling 30% 576 hrs
 Traveling 25% 480 hrs total 1920 hrs
 11970 / 864 = 13.8 = 14 sales people needed
Workload Method

27. Managing the Sales
Force
Recruiting
and Selecting Salespeople
◦ Careful recruiting can:
 Increase overall sales force performance
 Reduce turnover
 Reduce recruiting and training costs
Traits
◦
◦
◦
◦
of Successful Salespeople
Intrinsic motivation
Disciplined work style
The ability to close a sale
Ability to build relationships with
customers

28. Managing the Sales
Force
Training
Salespeople
◦ Training period can be anywhere from a
few weeks to a year or more
◦ Training is expensive, but yields strong
returns
◦ Many companies are adding Web-based
sales training programs

29. Managing the Sales
Force
Training
Salespeople
◦ Training programs have many goals
 Identify with the company and its products
 Know about customers and competitors
 The basics of the selling process

30. Managing the Sales
Force
Compensating
Salespeople
◦ Compensation elements: salary, bonuses,
commissions, expenses, and fringe
benefits
◦ Basic compensation plans:




Straight salary
Straight commission
Salary plus bonus
Salary plus commission
◦ Compensation plans should direct the
sales force toward activities that are
consistent with overall marketing
objectives.

31. Managing the Sales
Force
 Supervising Salespeople
◦ Supervision is used to direct and motivate
salespeople
◦ Companies will vary in how closely they supervise
their salespeople; will vary depending on the skill
level and maturity of the sales force, and type of
selling
 Tools used:
◦ Annual call plans and time-and-duty analysis can
help provide direction
◦ Sales force automation systems assist in creating
more efficient sales force operations
◦ The Internet is the fastest-growing sales
technology tool

32. Managing the Sales
Force
Evaluating
Salespeople
◦ Several tools can be used
 Sales reports
 Call reports
 Expense reports

33. Job quality: do it right the first
time
Servi
c
 Prompt warranty work
e
Awar
d

After-sales Service Ratings
Speed
.37
Reputation
3.38
Service
Quality
7.87
Cost
4.39
10
0
Low
1
2
3
4
(SCALE: Degree of Importance)
5
6
7
8
High
(JMR/Vol. 78)

34. A Key to Success
Stay Close to
Your
Customer
and
LISTEN!

35. THEORIES OF SELLING
AIDAS Theory:
 ATTENTION
 INTEREST
 DESIRE
 ACTION
 SATISFACTION

36. The advocates of this theory define that
all the circumstances, which led to the
sales were appropriate for the sales to
have taken place. In other words, if the
sales person is successful in securing
the prospect’s attention, maintaining his
interest and inducing his desire to buy
the product, the sales will result.
Moreover, if the sales person is highly
skilled, he will take control of the
presentation, which would lead to sales.
RIGHT SET OF CIRCUMSTANCES
THEORY

37. Buying Formula Theory
This theory emphasize on the buyer. This theory
emphasizes on the needs or problems of the buyer. The
sales person assist the buyer in finding an appropriate
solution to the problem. This solution may be in terms of a
product or service. This theory is based on the analysis of
the sequence of events that goes in the buyer’s mind
during the sales presentation. The theory is based on the
presumption that the sales person will take care of the
external factors.
Need (or Problem) -------> Solution -------> Purchase

38. Conceptual Model of “Salesperson-Buyer” Dyadic
Relationships