Saeed Ur Rehman

CHAPTER 1 CHAPTER

Introduction to Personal Selling & Sales Management

Learning Objectives
Describe the nature of personal selling and changes about business shift to customer orientation

Outline the role of sales force in each of marketing mix variable

Define the critical role, tasks and activities of field sales managers. Asses sales management training and development activities

Personal Selling
Person-to-person communication (prospect)
Personal selling is a process of Developing relationships

Discovering needs
Matching products with needs Communicating benefits

Viewed as a process that adds value

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Personal Selling

What do we sell ?

1-5

Broad Concept of Product

Includes:
Information

What is the main product the following companies offer?

Services
Ideas Hard goods

P&G Gillette Mobilink

Discussion Questions
What do you mean by sales? How do you define it?

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Definition of Sales
Profitable exchange of products, ideas and services (against money)in which both the seller and the buyer have mutual confidence, satisfaction and long lasting relationship

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The Nature of Personal Selling

Critical aspect of a firms promotional strategy.
Major factor to generate sales volume if Brings human element into marketing transactions. Develops customer confidence. Allows buyer to act immediately. Simplifies the handling of customers problems
The role and nature of the business function Sales Managers MUST SUPERVISE

The Nature of Personal Selling

Human Element is critical
Salespeople , customer face to face dealing. Long-lasting partnership is created Salespeople sell more than a product. Familiarity/friendship develops between salesperson and customer. Salesperson becomes company for customer.
Personal Contact puts more influence on buyer compare to advertising message

The Nature of Personal Selling

The Customers Confidence Salespeople play important role to gain or enhance customer confidence. Being more professional Offering relevant products Delivery timing, fulfill commitments

Salespeople sell more than a product.

Developing long term relationship, based on trust is essential to sales & marketing success

The Nature of Personal Selling

Customer Can Act Immediately Customer can work for a desired action . In- store promotion for product

Becomes difficult for customer to delay

Opportunity for salesperson to get the required decision on the spot.

Developing long term relationship, based on trust is essential to sales & marketing success

The Nature of Personal Selling

Customers Are Treated As Individual
All preceding of personal selling are important . Most valuable is personal contact (rep/customer) Customized sales presentation Easy to handle buyers problems complaints Helps to identify each customers needs or problem and to respond individually.

Value added or extra benefit that salesperson can provide

The value addition is the difference sales success & failure in todays competitive markets

Change in Selling
The Modern view of personal selling
Salespersons are more than persuaders & negotiators. Must act as a problem solver. Meet the needs & conditions of individual customers. Must build & maintain relationship with customer. So, modern personal selling is creative & flexible. Companies have changed their hiring, training and supervision methods to adapt the new market conditions

Change in Selling
The Modern view of personal selling
General recognition that personal selling is more than just making a sales. Sales reps & sales managers are involved in other important aspects of total marketing process. Distribution, credit, promotion of the product and pricing. With change in the role of personal selling, sales management has become more important to company success. Sales managers have become the critical link between a firms marketing strategy and what takes place in the buyers office

Change in Selling
Marketing Concept
Modern marketing concept is based on three major propositions - Customer orientation - Coordination of all customer related activities - Profit direction

Change in Selling
Marketing Concept
1. Customer orientation Focal point of modern marketing. Shift from an internal company prospective to the customers view point. Successful marketing requires complete understanding of customers, their needs, attitudes and buying behavior.

Change in Selling
Marketing Concept
2. Coordination Between all customer serving functions is second fundamental point. (Big order, production schedule, delivery arrangements)

3. Profits
Are the goals of business unit. Selling products without reasonable profit ?

Satisfying customer need s is the means to achieve sales and profit.

Sales reps and managers must control cost and generate sales volum for acceptable level of profitability.

Change in Selling
Modern Sales Approaches
1. Partnering Salespeople sharing the value with their customers Clearly understand and anticipate customers need and as partner - have moved from pure selling to mutually supporting role 2. Relationship selling Dont sell product only. Develop association, relations This relationship further strengthens as sales rep provides more services, identifies and satisfies needs, develops stronger contacts with customer

Change in Selling
Modern Sales Approaches
3. Team Selling - For large customers with complex need, salespeople MUST work with other colleagues to provide coordinated approach. Conventional independent sales approaches do not meet large, complex purchasing requirements 4. Value Added Selling - Salespeople are expected to exceed their customers expectation. Must go beyond selling products and provide value added services for demanding customers,(Installation, employee training) 5. Consultative Selling - Act as consultants, problem solver and MUST adapt their product or services to specific needs of customer

The Role of Personal Selling in The Marketing Mix

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Personal Selling in The Marketing Mix

Marketing Mix
Strategies that a company utilizes to implement its marketing plan and pursue its marketing objectives

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The Marketing Mix

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The Role of Personal Selling

Product Strategy Sales people are helpful Specify desirable products features & benefit Provide guidance during product development phase. Participate in product testing and test marketing because of their familiarity with market place.

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The Role of Personal Selling

Pricing Strategy Sales people and sales managers can assist pricing in number of ways Competitive pricing strategies Gauge market reaction to alternative price reaction Can advise/suggest senior management in pricing decision as per market conditions

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Method

- Pricing Strategy

Cost plus method

- Markup of profit is added to the products cost

Demand oriented
- Profit markup is based on what the traffic will bear

Competition oriented
- Profit is based on competitors price
Parity products Priced at or below competitors
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The Role of Personal Selling

Promotional Strategy Presentation of informative and persuasive messages to the target market to stimulate Sales Personal selling is vital ingredient of this effort working in conjunction with advertising, sales promotion & public relation. Nothing happens until somebody sells something

The Role of Personal Selling

Distribution Strategy
Channel of distribution - Route a product takes from producer to ultimate user
Direct Distribution - Form of ownership transfer in which the ultimate buyer acquires title directly from the manufacturer of the product Indirect Distribution - Form ownership transfer involving the use of intermediaries who buy and resell the merchandise.

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Distribution Channel
Distributor

Wholesaler

Retailer

Consumer

Distribution Channel

Wholesaler

Retailer

Consumer

Dimensions of Sales Management

The preceding discussions pointed out the sales force provides an organization with its most vital link to the marketplace - Connects the company with the customers it serve

- Derives its ability to survive and grow

- In a well- conceived and executed sales. management plan.

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Dimensions of Sales Management

The preceding discussions pointed out the sales force provides an organization with its most vital link to the marketplace - Long run benefits for company & customer - Informs the company about buyers needs

- Assures the buyers that the company is willing to satisfy them

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Tasks of Sales Managers

Sales management can be defined as the management of a firms personal selling function. Sales managements tasks are analysis, planning, organization, implementation/direction & control of the companys sales activity

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Tasks of Sales Managers

Analysis Review of internal sales record, sales reports, investigation of market trends and relevant environmental factors Planning Setting objectives for the firms sales efforts and mapping out strategies and tactics to achieve these objectives Organization Setting up structures and procedures for smooth and effective execution of sales plan

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Tasks of Sales Managers

Implementation/Direction Staffing and supervision of the day-to-day implementation of sales strategies, policies and plans Control Performance comparison of actual and planned sales results, observation/reasons if any and evaluation of the need for plan revision

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Sales Managers Boundary Spanning Role

Internal Organizational Environment Production Human Resource Top Management Advertising Sales force

Finance & Accounting

Research & Development

Sales Manager

Other internal Information sources

Trade groups Regulatory Agencies Competitors External Environment Customers Other external sources

Suppliers

Field Sales Manager

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Field Sales Managers Activities

Analyze the conditions of selling situation
Review individual sales records and performance of salespersons.
Asses specific market trends and condition Note relevant environment factors and trends

Plan for the immediate situation & long run

Establish specific sales objectives and develop strategies and procedures to attain these objectives.

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Field Sales Managers Activities

Organize the sales team to achieve objectives
Break the selling task and supporting activities into operation parts (jobs) Create specific job descriptions for these tasks and activities Recruit and select personnel for these jobs

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Field Sales Managers Activities

Oversee the operations of sales teams to improve its performance
Issue the necessary directions and guidelines Provide the conditions of motivation (incentives) for performers Train and coach sales team members for better sales performance. Assure the attainment of acceptable level of sales conduct and ethical behavior

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Field Sales Managers Activities

Evaluate sales performance
Create/set/establish/administer performance standards and measurement
Collect and analyze performance information against standards

Take indicated remedial actions

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Qualities - Field Sales Management

Sales Reps
Territory Management Sharp analytical skill to reviewing the potential of their customer and territories Identify prospects and their needs Field sales reps do not manage themselves . They can not call pattern well Rout planning andbe managed by system, no matter how sophisticated or automated Effective sales presentation The ability to organize varied responsibilities and activities in a systematic, efficient & effective manner Achieve objectives, sales quotas
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Qualities - Field Sales Management

Field Sales Managers
Management of a field sales team is both an art and science, requiring a delicate balance between subjective creativity and objective detachment Product & technical knowledge & capacity to conceptualize Decisiveness in handling the conflicts, problems and demands brought before them Patience and dedication to listening Field sales managers MUST demonstrate, by their actions as well as their statements, a high level of ethical behavior
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Qualities - Field Sales Management

Traits for first level Sales Managers
Motivation Enthusiasm to all major task Human relation skills

Higher than average energy

Ambition Strong personal desire to achieve and advance Persuasiveness interest in persuasive involvement Behavior flexibility Intellectual ability Personal impact - Charisma
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Selling to Managing
Most sales managers Former salespeople
Must make the transition from selling to managing An old myth top performer Proved wrong, time and again

Salesperson Doer Sales Manager ?

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Critical difference - Selling & Managing

Activity Primary responsibility Working relationship Role Part of management Diversity of responsibility Alone Player No Make call, sell & service Sales Rep Develop accounts Sales Manager Develop people Through others Coach Yes must sell the company plan to reps Develop people, recruit select, train, motivate, compensate, run branch office, manage key accounts, correspond, interact with other departments

Sales Management Training & Development

Survey of human resource specialist identified increased training for first level managers & supervisors as one of industrys most pressing need.
Keeps them competitive Management training helps to retain good people Most important Training Needs (First level managers) Communication Skills

Team Building
Performance Management Skills

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Sales Management Training & Development

Survey of sales training by Princeton Research & Consulting Center emphasizes Great Need for sales management training. Most important Area of Training How to motivate sales people Effective time management How to coach & train salespeople How to listen for understanding How to make transition to sales manager

How to be an effective sales manager

How to make an effective presentation How to manage negotiation process
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Sales Management Training & Development

There is also growing need for sales management training in other industries like Banking that trying to develop a sales culture Started recognizing the need for ongoing sales management training for branch managers Banks are attempting to develop coaching and other skills Upper management also needs training to gain understanding of the role of selling and sales management in banking. The most important reason for sales management training is to enhance career development as training is the key to help a sales person make difficult transition

THANKS