Beruflich Dokumente
Kultur Dokumente
SALES MANAGEMENT
Sessions 1 - 2
BOOKS AND REFERENCES:
TPSS
Session- 2
THE SELLING CONCEPT
THE MARKETING
CONCEPT
Profits
Customer Coordinated
Market through
needs marketing
customer
satisfaction
TPSS
NEW TRENDS AFFECTING
PERSONAL SELLING
1. Buyers are more aware and demanding
2. Customer expectations are rising
3. Revolutionary advances in telecommunications and
computer technology are happening all the time
4. Sales force for consumer product is shrinking
5. Women are flooding the sales profession
6. Domestic markets are undergoing micro-
segmentation
7. Foreign competition is intensifying
8. Markets are being international
A wise sales person will keep these trends in mind while going
about his work
SALES JUST DON’T
HAPPEN
1. 80% of all sales are made after
the fifth call
2. 48% of all sales persons call
once, and quit
3. 35% call twice, and quit
4. 10% keep on calling
These 10% make 80% of the
sales
SUCCESS CAN CAUSE
Philip Kotler- ManyFAILURE
times as corporations grow larger,
they begin to forget the very lessons which have made
them a success
1.Increase in the no. of levels in the hierarchy makes it
difficult to make ultimate consumer’s voice heard
2.When it does get heard, communication gets distorted
3.Only information that is liked by top management is fed
4.Salesman becomes overconfident because product is
popular and sells. They make fewer calls, travel less. They
think about their own convenience and not that of the
customer
5.Salesmen begin to take customer for granted. Develops a
‘take it or leave it’ attitude
6.Sales man and company twists customer’s arms tying up
slow moving product with fast moving ones
7.Sales man becomes insensitive and unobservant about
competition. End us as ‘tortoise and hare’
8.Salesman rely on improvising rather than on system
planning- again a sign of over-confidence
WHO IS A
PROFESSIONAL?
1. Must have the will to learn and keep on
learning throughout his professional career
2. Must serve a period of internship, to learn
the ropes and the details from someone
senior and more experienced
3. Must specialize because even in selling
there is need to have expertise in specific
product or services
4. Must take time to fraternize, to meet
others in the same profession
5. Must have the desire to contribute- to the
community, to the society . Selling is just
not a selfish job.
DISTINGUISHING FEATURES OF
MARKETING- BASED
COMPANIES
1. Use market share, rather than volume as measure of
marketing success
2. Analyse and use market segmentation principals
3. Research the process of monitoring customer needs,
usage, trends as well as competitive activity
4. Evolve a structure or process of coordinating all non-
marketing functions
5. Have a set of specific marketing goals and targets
6. Follow a corporate style and culture where marketing
plays a key role
7. Follow a market-based business concept that provide
unique value to the customer
8. Sales managers are termed as ‘relationship mangers’
Session- 3
THE SELLING FUNCTION
Do not directly
receive orders- talk
to specifiers rather
THE SELLING than buyers
Respond to FUNCTION
already Attempt to
committed persuade
customers customers to
place an order
Order- Order- Order-
takers creators getters
Front-line Sales
sales support
people people
Consu
mer
sales
Inside Delive Outsi Mission people Tech
order- ry de ary Merch support
takers sales order- sales New an- sales
Organis isers
people takers people busin people
a-tional
ess sales
sales people DG 5
Features,
packaging,
quality,
range
Price levels,
credit
terms,
discounts,
price
changes
Advertising,
publicity, sales
Inventory, channels of
promotion,
distribution, no. of
personal selling
intermediaries-
TIME OF ADOPTION OF
INNOVATORS
Time taken for diffusion process
%age first-time
adopters
Maturity
Growth Decline
adopters
Introduct
ion
Sales
Profit
DG-18
8-25
8-3
THE DEMAND CURVE
Price (Rs)
D
If demand determines
the upper threshold for
price, then costs
determine the lower one
Quantity’
1 2 3 4 000
DG
A SIMPLE BREAK-EVEN
Sales CHART Sales Revenue
Revenue
Cost
Sales managers must Profits Total Costs
understand different (a+b )
costing concepts
Fixed Costs
(a)
Output
Break-even DG
Area where
substantial
improvements and
cost savings can be
TO-DAYS PROFESSIONAL
• ‘Thinker’ in additionSALESMAN
to being a ‘doer’
• Begins with a plan- finds out whom to see, where and when and
estimates what he hopes to achieve
For industrial products in a highly competitive environment:
• 30% time is spent on planning
• 70% in implementing
If he does not do this:
• 100% of field work will yield only 30% productivity
• Offer something new always
– Newness in a selling situation lies in the eyes of the salesperson
(feature/ benefit)
– No two prospects are ever the same
• Strike empathy
– Define the customer profile- background, level of education,
temperament, interests etc, weaknesses, needs & wants
– Helps gain trust so that the customer will buy his products
• Target for the heart
– When all brands are about the same, differentiate the product from
those of competitors in ways external to the product
Select territories and customers
•Which areas to cover and within the area who are the potential
customers, how often and in what manner (market mapping)
•Planning the work – working the plan
Classify customers:
•The A-customers will perhaps be the busiest and most difficult to
meet and they have to be met the most and for the longest
period
Identify the influencers, deciders, purchasers and users:
MAN (Money Authority & Need)
•Who can initiate the decision
•Who can influence it
•Who can decide
•Who will be the formal purchaser
•Who will be the user
Most times industrial selling and in large corporations these roles
are performed by different persons
THE NATURE AND ROLE OF
SALES MANAGEMENT
The basic function and role of selling is to generate sales
and earn revenue for an organization. Today’s approach
includes:
•Maintaining good customer relations
•Managing profitability of a firm
•Managing customer complaints
•Building brand value in the eyes of the customer
Best marketing programs can fail if sales staff is
ineffective or improperly managed.
For customers sales staff represents the face of the
company and impressions determine future business
relations.
Functions of a sales manager are classified into:
1.Personnel selling – Individual or team to establish and
build a profitable relationship over time through multiple
transactions
2.Sales management – Planning, organizing, directing and
controlling all sales activities
ORGANIZATION FOR
MARKETING
Referred to as:
•Directional
•Managerial
•Functional structure
•Lines of authority & responsibility
Market Research
Sales Office
Administratio
n
Publicity
SALES ORIENTED COMPANY DG
ORGANISATIONAL IMPLICATIONS
OF ADOPTING THE MARKETING
CONCEPT
Managing Director
Publici
ty Sales Office
Administratio
Market Research n
PublicityMARKET-ORIENTED COMPANY DG
EXAMPLE OF A SALES
ORGANIZATION STRUCTURE
NATIONAL SALES
MANAGER
REGIONAL SALES
MANAGERS
DISTRICT SALES
MANAGER
DUTIES AND
RESPONSIBILITIES OF A
SALES MANAGER
Determining sales force objectives and goals
•
• Finalizing sales force organization, size, territory, and quota
• Forecasting and budgeting sales
• Selecting, recruiting, and training of the sales force
• Motivating and leading the sales force
• Designing compensation plan and control systems
• Designing career growth plans and building relationship
strategies with key customers
SALES MANAGEMENT
MODEL
DESCRIBING THE PERSONNEL SELLING
FUNCTION
Marketing
•Engineering
•Production R &
D
•Design
•Market
Research
•Finance
•Purchasing
•Credit Control
•Advertising
•Sales
promotion
•Physical
Distribution
•Sales
•Customer
Geographical Structure Sales Director
Industry Sales
Banking Managers
Manufacturing Retailing
National Sales
Manager
Sales Training
Manager
Regional Sales
Managers
Sales Training
Manager
District Sales
Managers
Staff
Position
Salespeople Line
Position
AN ORGANIZATION STRUCTURE OF A 2-
WHEELER COMPANY
DIRECTOR MARKETING
GM GM GM GM GM
Marketin Sales Service Commerci (Spar
g al es)
Advertisin Credit Branch
g Network Control Manage
Developm Pricing r
Retailing
ent Area Mgr.
Sales
Mgmt. Goods
Market Movemen Comm.
Statistics
Research t Asst.
Branches Service
(12)
Rural Engg.
Marketin Depot
g Incharge
Spare Part
DISTRIBUTION – ITS ROLE &
IMPORTANCE
• Creating a dealer network
• Preparation of annual Dealer Network
Development (DNM) plan
• Appointment of dealer network
• Categorization of the dealers
• Initial support to new dealers
• Dealer productivity norms
• Termination of dealers
END OF PRESENTATION