SALES MANAGEMENT

Saba Kausar

 Marketing Concepts Sales as part of Marketing Sales Management

Concept Objectives

Sales Management Process Responsibilities of Sales Manager

Marketing Concepts
1. 2. 3. 4. 5. Production Concept Product Concept Sales Concept Marketing Concept Societal Concept

Marketing Concepts
1. 2. 3. 4. 5. Production Concept Product Concept products that are widely available & Consumer prefer Sales Concept inexpensive It concentrates on Marketing Conceptachieving high production efficiency Selling of high volume, low cost goods through intensive Societal Concept market) distribution (mass
Viable in developing markets / expand the market Cannot deliver quality products Impersonal behaviour with consumers

Marketing Concepts
1. 2. 3. 4. 5. Production Concept Product Concept Sales Concept Consumers favour products that offer most quality, performance & other innovative features Marketing Concept Focus Concept Societalon making superior products & improving existing ones
Technology Push Model Less focus on understanding & analysing needs of customers Many times innovative products are launched without educating customers

Marketing Concepts
1. 2. 3. 4. 5. Production Concept Product Concept Sales Concept Marketing Concept buy enough products unless persuaded to buy Customers will not through selling efforts Societal Concept
Organisation should aggressively sell & promote Consumers are inert & need to be pushed Applicable for unsought goods like life insurance Or firms with overcapacity

Marketing Concepts
1. 2. 3. 4. 5. Production Concept Product Concept Sales Concept Marketing Concept Societal to create, deliver & communicate better value Ability Concept
proposition, in comparison to competitors Customer oriented Creating superior customer value Focus on Not finding right customer for our product but right product for our customer 4 key elements Target Market, Customer Need, Integrated Marketing & Profitability

Marketing Concepts
1. 2. 3. 4. 5. Production Concept Product Concept Sales Concept Marketing Concept Societal Concept
Determine needs, wants of target market & deliver expected level of satisfaction more efficiently than competitor, at the same time preserve / enhance well being of consumer & society Marketers build social & ethical considerations in marketing practices Marketing / selling, not a business activity alone but takes into account social needs also Corporate Social Responsibility

Sales as part of Marketing

Selling Emphasis on product Company manufactures product first, then decides to sell it Management is sales-volume oriented Planning is short-term oriented Stress on needs of seller Business is seen as goods producing process Emphasis on existing technology & reducing costs Different departments work as highly separate entities Cost determines price Customer seen as last link in business Marketing Emphasis on customer needs & wants First determine customer needs & wants & then decide on how to deliver product Management is profit-oriented Planning is long-term focus on new products, future markets & growth Stress on need & wants of buyer Business seen as consumer satisfying process Emphasis on innovation in every area adopting superior technology All departments operate in integrated manner aim for consumer satisfaction Consumer determine price, price determine cost Customer seen as beginning of business

Sales as part of Marketing

Generally marketing & selling seen as synonyms, but there is major difference Both are separate yet complementary to each other Marketing concept & approach is much wider than selling Marketing dynamic & focus on customer Sales is one dimension of marketing promotion part of core marketing mix elements Marketing department position & differentiate the product pull customers to firm Sales department attempt to sell & push the product through channels & make them available Nowadays, marketing & sales performed by same department Sales person not only sell, but make life-long partnership with custmers & channel members Sales becoming more customer driven than product-driven

Sales Management
John Henry Patterson father of modern Sales Management Customer is the boss yesterday, today & tomorrow Customer is Profit everyone else is overhead Historically sales has been done since time immemorial After Industrial revolution, business activity became more complex, sales became important function Earlier, sales management concerned with direction of sales force personnel Presently broader significance marketing activities, advertising, sales promotion, market research, distribution, merchandising, relationship management

Objectives of Sales Management

Short-Term
To capture & retain market share Realise sales volume, that contributes to profitability Obtain new accounts Keep personnel expenses within specified limits Secure targeted percentage of business

Long-Term
To do entire selling job Service existing accounts Serve & maintain customer co-operation Assist dealer in selling the product line Provide technical advice where necessary Assist in training of dealer s / middlemen s sales personnel Provide advice & assistance to them

Sales Management Process

Sales Management Cycle

Analysis

Control

Organisation

Planning

Direction

Sales Management Process

Formulation Formulation of Strategic Sales Management Programme Organise & plan company s overall personal selling efforts & integrate them with other elements of marketing strategy Should also consider environmental issues affecting the business

Selecting appropriate sales personnel, training, leading & motivating them Designing & implementing policies & procedures that will direct the efforts of sales person in achieving corporate objectives Implementation

Evaluation Control

Developing methods & practices for monitoring sales force Evaluating individual & group sales force performance Taking corrective actions in formulation or implementation programmes to achieve desired goals

Responsibilities of Sales Manager

Identification of sales strategy Defining personal selling objective of firm Formulating sales policies Deciding on type of sales force Deciding on size of sales force Designing the sales territories for effective coverage of area Developing a sales organisation Fixing sales quotas & targets Creating the sales force recruitment, selection Managing sales force compensation, motivation, supervision, evaluation, training & development Sales budgeting & reporting Organising sales displays Coordinating internal & external activities & Control

Personal Selling
Communication Mix
Personal Selling Advertising Sales Promotion Public Relations Direct Mail Exhibitions

Personal Selling concerned with persuasive communication Personal selling brings human element into marketing transactions & increases the customer s confidence Art of successfully persuading prospective customer to buy product/ service from which they can derive benefits & hence increase their total satisfaction The oral presentation of a company s product or services to one or more prospective buyers for the purpose of making a sale

Salesmanship
Salesmanship is a seller initiated effort that provide prospective buyers with information & motivates them to make favourable decisions regarding seller s products / services Personal selling involves salesmanship Personal selling aims at bringing the right product to the right customer. It is used for creating product awareness, stimulating interest, developing brand preference, negotiating price

Advantages of Personal Selling

Personal selling is the most commonly used promotional tool Mostly used in complex & highly technical products computers, water purifiers, for industrial consumers Helps in ability to hold customer attention Immediate feedback & two-way communication Presentation is tailored to individual needs Ability to target customer precisely Ability to cultivate relationship Ability to get immediate action

Disadvantages of Personal Selling

High cost per contact Inability to reach all customers effectively Despite training, behaviour of sales personnel differ from person to person

Types of Personal Selling

1. Industrial Selling 2. Retail Selling 3. Service Selling

Types of Personal Selling

1. Industrial Selling 2. Retail Selling Business-to-Business selling (B2B) / manufacture sector selling 3. Service Selling I. Selling to Resellers reseller is a wholesaler / retailer / intermediary who buy
finished goods & resell them to end user Hero Cycles, Unilever, Asian Paints Salesperson aims to gain larger shelf space & high point-of-purchase display II. Selling to Business users output of one producer enters into production process of another producer to make final goods for consumption. Heavy machinery, electric cables Intel sells processors to Toshiba which in-turns make laptops III. Institutional Selling large / medium customers who use products in their daily operations Xerox photocopiers, Reynolds office stationary sell directly to institutions IV.Selling to Governments ultimate consumer is government organisation / govt. undertaking. Procedure in govt. buying is different from other institutions tenders, etc.

Types of Personal Selling

1. Industrial Selling 2. Retail Selling 3.  Retailing is all activities directly related to sale of goods / services to ultimate Service Selling
consumer for personal / non-business use  Difference between retail sales & industrial sales is actual location of sales  In retailing environment, customer approaches seller  In industrial, seller seeks a customer  Retailer sells directly to end customer  Retailer purchases from industrial seller in large quantities & sell them in small assortments according to demand  Shopper s Stop, Big Bazaar, Wal-Mart

Types of Personal Selling

1. Industrial Selling 2. Retail Selling 3. Service Selling
 Service are activities / benefits provided to customers  Service selling is challenging, since services are intangible & cannot be separated from its source, hence cannot be stored for future use  Some services are termed as retail service hotel room service, banking  Some are similar to industrial selling insurance, real estate

Personal Selling Process

Pre-sale preparation Pre-approach before interview Approach customer

Prospecting

Follow-up action

Closing the sales

Handling customer objections

Sales presentation

Qualities of Good Salesman

Physical quality: A salesman should have a good appearance and an impressive personality and sound health Mental quality: good salesman should have imagination, initiative, self-confidence, sharp memory, alertness etc. Should be able to understand the needs and preferences of customers. Integrity of character: should posses the qualities of honesty and integrity, to gain the confidence of the customers. The employer too should have faith in him. A salesman should be loyal both to the employer and customers Knowledge of the product and the company: Should have full knowledge of the product and the company he is representing. He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc. He should also have knowledge of products of rival companies. Good behaviour : A salesman should be co-operative and courteous so as to win the confidence of the customers. Should not feel irritated if the buyer puts up many questions even if the questions are irrelevant. It is also not necessary that the person he is trying to convince buys the product. Salesman has to remain courteous. Ability to persuade: good salesman should be good in conversation so that he can engage the person. He should be able to convince him and create the desire to posses the commodity.