Module 1

Concept, Objectives and functions of Sales Management

So, What is Sales Management?

Sales management is the process of developing a sales force, coordinating sales
operations, and implementing sales techniques that allow a business to consistently
hit, and even surpass, its sales targets.

If your business brings in any revenue at all, a sales management strategy is an

absolute must. When it comes to boosting sales performance for any size of
operation, no matter the industry, the secret to success is always precise sales
management processes.

Besides helping your company reach its sales objectives, the sales management
process allows you to stay in tune with your industry as it grows, and can be the
difference between surviving and flourishing in an increasingly competitive
marketplace.

Objectives of Sales Management

Every business firm has certain objectives to achieve. These objectives may be
very explicit and definitive, or they may be implicit or general. From the company
viewpoint, the general objectives of sales management are:

1. Sales volume
2. Contribution to profits
3. Continued growth
4. Market Share
5. Corporate Image

While all these objectives are important to a business firm, the objectives, relating
to sales-volume, market share and profitability, are greatly affected by the
effectiveness and efficiency, with which the sales-function is managed.
Functions:
(i) Sales research and planning.

(ii) Demand creation.

(iii) Sales costs and budget.

(iv) Price fixations.

(v) Development of products.

(vi) Establishing sales territories.

(vii) Co-ordination of sales.

These functions differ from company to company according to their

size and the nature of their products.

Importance of Sales Management:

Sales management has gained importance to meet increasing
competition and the need for improved methods of distribution to
reduce cost and to increase profits. Sales management today is the
most important function in a commercial and business enterprise.

Evolution of Sales Management

Stage: One
This is the stage at which most companies begin their journey and it can be best described as
being chaotic or without rules. There is no structure in place and the sales team is simply
commanded to go make a sale. Needless to say, such a scenario can lead to all kinds of problems
and conflicts.

Thats when the person running the business decides to introduce some sense of a structure by
hiring a sales manager.

Stage: Two
In stage 2, we start to see a system in place or something thats close enough to an actual system.
The sales manager, at this stage, functions as though he/she were conducting a survey. He/she
tries to make the sales team feel valued and comfortable.
The sales team is provided with everything they need, which is fine as long as the sales team can
continue contributing to the brands growth.

However, all good things come to an end and the cracks start to appear. A common problem that
plagues stage 2 is self-interest. When all their needs are met easily, salespeople, especially the
ones higher on the success ladder, tend to develop an attitude of Im only supposed to sell. Thats
my job.

In other words, stage 2 becomes toxic. The manager is forced to deal with complaints of unfairness
and other issues such as low productivity.

This is when a stronger sales manager is called in; someone who wont hesitate to fire salespeople
who arent contributing and someone who can restore order. That brings us to stage 3.

Stage: Three
The stage 3 managers begin to standardize the system and show the door to non-performers. The
profits go up and prices are raised. The stage 3 manager functions as a CFO cum owner. This
person is invested in expanding the business and doing whats best for it.

However, this is the trickiest stage as many companies tend to fall into a false sense of comfort
assuming that there isnt much else to do. In other words, they dont strive for stage 4. That brings
us to the question of what stage 4 looks like.

Stage: Four
Stage 4 is when the hired manager is a proper businessman capable of transforming the team.
He/she can identify the non-performers and work towards motivating them. A stage 3 manager
only hires and fires; a stage 4 manager transforms. They can play with the cards that theyve been
dealt.

There are 3 key changes that the stage 4 manager does. He/she establishes a do or die culture
while celebrating the entire sales team, establishes a selling process, and provides the tools
needed for the team to do whats necessary.

Nature and Role of Sales Managers Job

Selecting targets Theres an adage that salespeople talk to whoever

will talk to them. In the new world of selling, your responsibility is
to make certain that they are talking to the decision makers who can
approve large opportunities that will come to fruition in the near
future. Working with sales leadership, you must establish a filter
that helps to define the most likely candidates for higher-
opportunity sales efforts.
Defining priorities Help your sales force prioritize what
opportunities they pursue and how much time and effort they spend
on each opportunity. Good sales managers keep key opportunities
that are real and relevant to the current circumstances in the
crosshairs of their salespeople.
Defining time guidelines Set and enforce guidelines for how sellers
spend their time. They no longer can just meander about a territory
or go on a sweep of their current account base with the intention of
checking in and finding out whats going on. Rather, they must
undertake a strategic and surgical approach to going after identified
targets in a prescribed way.
Monitoring compliance You are responsible for providing data that
allows you and other leaders in the organization to monitor what is
happening in the marketplace regarding customers, competitors
and surrounding regulations and technology shifts. Consistency in
the execution of a sales process gives data to the organization that
clarifies what works and what does not. Were not talking about
activity management and monitoring for its own sake. Your focus
should be working toward compliance in the sales process to protect
the integrity of the data captured so everyone has relevant data for
good decision making.
Navigating the terrain Your sales process lays out a map for action,
but a map is just a two-dimensional representation of a sequential
process. Good sales management also addresses the third
dimension assessing the terrain of what is going on in the
marketplace based on the data youre getting (including variant
data) from the sales process. There will be occasions when you will
need to send out a scouting team of select salespeople to find out
new information. Then its up to you to analyze what they bring
back and use that information to better navigate the terrain.
Securing resources There will be occasions when competing
priorities of other departments impede progress on landing a big
account. Its your responsibility to make certain that significant
sales opportunities are visible to leadership and to secure from less-
than-enthusiastic parties inside your organization the resources
needed for a successful sales process.
Knowing when (and when not) to expedite Its your job to expedite
what needs to be expeditedand to know when not to. If you try to
expedite every opportunity, soon no one will respond. Salespeople
are often viewed as that proverbial boy who cried wolf. For the
sake of the organization and for the sake of your reputation and that
of your salespeople, youll need to be the gatekeeper on when an
opportunity needs to be expedited, and when everyone should
simply follow the normal sales process.
The Personal Selling Process

The Personal Selling Process

The personal selling process is a consecutive series of activities conducted by the salesperson,
the lead to a prospect taking the desired action of buying a product or service and finish with a
follow-up contact to ensure purchase satisfaction.
Step One
Prospecting - the first step in the personal selling process
The process of looking for and checking leads is called prospecting or determining which firms or
individuals could become customers.
Up to 20% of a firm's customer base can be lost for reasons such as transfer, death, retirement,
takeovers, dissatisfaction with the company and competition. A steadily growing list of qualified
prospects is important for reaching the sales targets.
Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined
that the person or company can benefit from the service or product offered. A qualified prospect
has a need, can benefit from the product and has the authority to make the decision.
Step Two
The Pre-approach
This stage involves the collecting of as much relevant information as possible prior to the sales
presentation. The pre-approach investigation is carried out on new customers but also on regular
customers. Systematic collection of information requires a decision about applicability,
usefulness and how to organise the information for easy access and effective use.
Step Three
The Approach
The salesperson should always focus on the benefits for the customer. This is done by using the
product's features and advantages. This is known as the FAB technique (Features, Advantages
and Benefits).
* Features : Refers to the physical characteristics such as size, taste etc.
* Advantages : Refers to the performance provided by the physical characteristics eg it does not
stain.
* Benefits : Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost.
Step Four
The Sales Presentation
After the prospects interest has been grasped, the sales presentation is delivered. This involves
a "persuasive vocal and visual explanation of a business proposition". It should be done in a
relaxed atmosphere to encourage the prospect to share information in order to establish
requirements. Some small talk may be necessary to reduce tension but the purpose always
remains business.
Step Five
The Trial Close
The trial close is a part of the presentation and is an important step in the selling process. Known
as a temperature question - technique to establish the attitude of the prospect towards the
presentation and the product.
Step Six
Handling Objections
Objections are often indications of interest by the prospect and should not be viewed with
misgiving by salespeople. The prospect is in fact requesting additional information to help him to
justify a decision to buy. The prospect may not be fully convinced and the issues raised are thus
very important. It also assists the salesperson to establish exactly what is on the prospect's mind.
Step Seven
Closing the Sale
This is the last part of the presentation. Many salespeople fear the closing of a sale. Closing a
sale is only the confirmation of an understanding. Fear will disappear if the salesperson truly
believes that the prospect will enjoy benefits after the purchase of the product.
Step Eight
The Follow-up
The sale does not complete the selling process. Follow-up activities are very important and are
useful for the establishment of long-term business relationships. It is important to check if the
products have been received in good condition, to establish the customer is satisfied etc.

New Means of Selling