Introduction to Sales ManagementBenefits of being in the sales profession:Independence: It is a lot like having your own businessExtreme self management skills are neededYou get to solve other peoples problemsVariable incomeIt teaches how to get into another persons shoesThe creativity and flexibility many sales people gain makes them very eligible for executive suites

Introduction to Sales ManagementSales management is defined as the planning, direction & control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying & motivating, as these tasks apply to the personal sales force

Basically they are responsible for organising the entire sales effort, both inside and outside the company

They have to work in close coordination with their department as well as other departments; also interact with outside world, including building & maintaining a distribution network

Introduction to Sales ManagementParticularly they have to coordinate with the marketing department, in following ways:Provide information from the field and help in implementation of the marketing programThey are an integral part of any new marketing campaign, or new product; at times they help set the break up between advertising, distribution, price, etc.Aggressive pushing of the distribution network is done by them to ensure that the company meets its objectives through the channel

Introduction to Sales ManagementSalesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, hence enhancing their total satisfaction

Personal Selling is a wider concept, which also involves coordinating with the other departments for implementation of marketing program

Introduction to Sales ManagementDiversity of personal selling roles:

Group A - Service selling: It aims to obtain sales from existing customersInside order takerDelivery salespersonRoute or merchandising salespersonMissionary salespersonTechnical salesperson

Introduction to Sales ManagementGroup B - Developmental selling seeks to convert prospects into customers. It can involve selling tangibles or intangibles

Group C - Developmental selling with unusual creativity:Political, indirect or backdoor salesperson, who provides services to clients not related to the product/service in questionSalesperson engaged in multiple sales in an organisation

Introduction to Sales ManagementIt is important to understand how a relationship builds between a buyer and a seller or what is the buyer-seller DYADFranklin Evans, after researching the insurance industry, concluded that:Customers who knew the buyer and/or the company were more likely to buyBuyers would buy often from salespeople who were more like them in factors like age, height, income, religion, education, as well as in beliefs and values

Introduction to Sales ManagementHenry Tosi studied sellers to wholesale/retail drug manufacturers, he added that if the salesperson performed in congruence with the prospects perception of ideal performance, the dyad would move on successfully

The buyers initial prejudice w.r.t. selling also plays a huge role

Introduction to Sales ManagementSales Theories:AIDAS Theory: The prospect goes through the stages of Attention, Interest, Desire, Action & SatisfactionIn the attention stage, look for great conversation openers and lower the buyers guard; generally salespeople talk favourably about the prospects businessTo gain interest, the salesperson will then start the presentation; during which he has to show a contagious enthusiasm for the product, and also take hints.

Introduction to Sales ManagementKindling desire: Keep the buyer focused towards the sale and remove objections, preferably before they are even raised. Should never allow the discussion to go off trackInducing action: Once all objections are cleared, then we have to close the sale in a subtle way. Sense the right time to close & ask for the order straightaway; without fear of yes or noBuilding satisfaction: Should make the customer feel good about his decision and also help in clearing post-sales issues

Introduction to Sales Management2) Right set of Circumstances theory: Salesperson must know how to manipulate circumstances in a manner that the desirable action results

3) Buyer Formula Theory of Selling:

Need/problem Product/Service and/or Trade Name Purchase Satisfaction AdequacyAdequacyPleasant feelingsPleasant feelings

Introduction to Sales ManagementAs per the buying formula, the stress should be on establishing a buying habit for your product/service

4) Behavioural equation theory: It defines buying behaviour in terms of the purchasing decision process, which involves a learning process. Four essential elements of this process are:Drives are strong stimuli that influence the buyers responseCues are weak stimuli from the product/salesperson/company that determine when the buyer will respond. They can be triggering or non-triggering.

Introduction to Sales ManagementResponse is the action taken by the buyerReinforcement is any event that strengthens the buyers tendency to make a responseB = P x D x K x VB = response or internal response tendencyP = Predisposition or force of habitD = Present drive levelK = Incentive potential; value of the product for the buyerV= Intensity of all cues; triggering, product or informational

Introduction to Sales ManagementSalesperson can influence the predisposition and also the drive level, besides providing the triggering cues. The difficulty mainly comes when either the product or the salesperson-client relationship is new. In these cases, buyer dissonance is very high.

Sales responsibilitiesBesides selling a product, salesperson has other key responsibilities:Prospecting: Searching for customers who have not purchased from the company. Sources of prospects include:Existing customersTrade DirectoriesEnquiries that come as a natural consequence or through numbers given in advertisements.The pressCold canvassing

Sales responsibilities2) Customer records & information feedback: Maintaining proper records and updating them on a regular basis can never be underestimated in terms of importance. Records that are important: Name of company, potential as client, current products used, key people and contact numbers, current attitude towards companys product, what kind of buying habits and processes, when u met last, past sales, and future follow upDealing with complaints: Realising that whoever is responsible for delayed service, the customer relationship has been built by you.

Sales ResponsibilitiesProviding consulting to the customerImplementing marketing strategies: Salespeople cannot work in a manner that goes against the overall marketing strategy of the company.

Sales responsibilitiesPreparation for selling and sales negotiations:Product knowledge & benefits: Customise them as per the buyerCompetitors product knowledge and benefits: Can be gained from reading their brochures, making cold calls as customers, talking to buyers (esp. those loyal to competing brand), et al. Salespeople must organise this information and keep it in a separate file for ready reference.

Sales responsibilitiesSales presentation planning: It has several advantages:Salesperson is less likely to miss out important points.Visual aids can be used to reinforce specific points that may appeal to that customer.Make sure you are ready for possible objections before hand.

Setting objectives: Has to be done with respect to the sales cycle of the prospective customer and on which stage he is currently.Understanding buyer behavior: Over time it reduces unpredictability and ensures that you can plan better and move faster into the account.

Sales responsibilitiesSales negotiations: They are inevitable in the selling process. Balance of power is an important part of this negotiation process and it is determined by:Number of options with each partyQuantity and quality of information available with each partyNeed recognition and satisfactionPressure on the parties

Sales ResponsibilitiesNegotiation objectives, when clearly defined, make the job easier: Two types of objectives may be considered:

Must have objectives which are the minimum requirements of the bargainerWould like objectives which are the maximum you can reasonably expect to get

Sales responsibilitiesS would likeB must haveS must haveB would likePrice

Sales ManagementOpeningNeed & problem identificationPresentation & demonstrationNegotiationDealing with objectionsClosingFollow upPersonal selling process

Sales Management

Opening:

Be professional and business-like in appearance and mannerisms. Its useful to have a positive approach.Avoid clumsinessIf you are known to the buyer, then you may have a casual approach, else come straight to the point.Buyers may tend to divert from the topic, but it is important that the salesperson keeps control

Sales ManagementNeed & problem identification:

Prefer open ended rather than close ended questions Open ended like: What are you looking for in terms of a new house? OR What do you think about this kind of layout and location?Close ended like: How many rooms in your current house? Or Where are you staying currently?Close ended may not encourage a buyer to talk, and this way you cannot identify his need.The end result of this stage should be that you have a fairly clear idea of the buyers primary requirements and his budget. And he should also be comfortable.

Sales management

Presentation & demonstration:Sell POPs and PODs of the product by linking them to the buyers needsDo try and pause between presentation and confirm the prospect is with you; and encourage him to keep asking questions.Buyer resistance can be reduced by:Reference sellingDemonstrationsGuarantees followed by penalty clauses Trial orders

Sales managementDealing with objections: There can be many ways 1) Listen and dont interrupt: It maintains buyer respect and chances are high that the buyer will also hear you out well.2) Agree & counter: Agree with the prospect and then make your point, Yes, but techniqueStraight denial: Sometimes a buyer has an extremely wrong perception that needs to be corrected immediately, but it must be done in a polite manner.Question the objection: If the exact nature of the objection is not apparent, this technique can be used.Forestall the objection: Even before the buyer raises it, you anticipate it, and clarify it at an appropriate time. But in doing so, you may raise questions the buyer was not considering.

Sales ManagementTurn the objection into a trial close: If this is clear, will you buy?Hidden objections: Ask the prospect for objections since they may not raise it otherwise.

Negotiation: Start high but be realGive and take philosophyBuyers negotiating technique: Some popular ones are:Shotgun approach: Unless you reduce prices, we are looking elsewhere for a supplier depends on balance of powerSell cheap, the future looks bright look at credibilityNoahs Ark: You will have to do better with the price call his bluff

Sales ManagementClosing the sale: Timing is of crucial importance. There are a number of techniques:

Ask for the orderSummarise and ask for the orderConcession closeAlternative close: ask which alternatives he would likeObjection closeAction agreement: Look for a positive development in the next meeting.

Follow up

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