GROUP I – UNIT ONE.SEMESTER V, MBA (Pharm Tech.)SPPSPTM, SVKM’s NMIMS.2014 – 2015

SAARTHAK ATHAVLE …… A001SHRAMIKA KANCHAN ….. A009DHWANI MEHTA ….. A010VIRAL WAGHANI ….. A031 ISHANGI RANA ….. A060

UNIT ONE: IntroductionOld conceptsCustomer saleDoctors listType of saleCollectionSales Hierarchy Case Study (1.2 – GE Countrywide)

Sales Management

Originally, the term ‘sales management’ referred to the direction of sales force personnel.

But now, on a broader scale, the ‘sales management’ means management of various activities, including advertising, sales promotion, marketing research, physical distribution, pricing, and product merchandising

The American marketers association (AMA’s) definition, takes into consideration a number of these viewpoints.

Its definitions runs like: “ Sales Management involves the

planning, direction, and control of the personnel, selling activities of a business unit including recruiting, selecting, training, assigning, rating, supervising, paying, motivating, as all these tasks apply to the personnel sales-force. “

Sales Management is a socio-scientific process, involving’ group-effort’ in the pursuit of common goals or objectives.

So, sales-management has to work in a broader and newer environment, in co-existence with the traditional lines.

The present emphasis is now on total development of human resources along with marketing.

Just like personal selling process, pharmaceutical selling too follows the following 8 systematic steps.

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Elements of sales Management:• Planning• Coordinating• Controlling• MotivatingResulting in the following outcomes:• achieving sufficient sales-volume • providing sufficient profit• ensuring continuing growth

Traditional (Old) approach:• Selling is regarded as some one way, unidirectional

process the seller does to the buyer without taking into consideration actual needs & capabilities of the buyer.

• The result of this attitude to sales is that many salespeople adapt a manipulative, almost coercive style of selling.

• Some salespeople think of selling as pushing a customer into buying, and success as a victory.

• Often, people fear salespeople and distrust them.• They think of salespeople as fast talking and slick.• They are wary of being sold something they really

don't need or want.• The final intention is just to generate money for the

organisation somehow. This is done at the cost of buyer.

• To develop a long term relation with the customer

• Clearly identify each customer's unique needs and requirements

• Tailor your goods and services to meet those needs at a fair price

• Many people make a very good living out of helping people identify which particular need may be causing a symptom, then advising them on how to alleviate it.

• This includes not only medical doctors but also good salespeople.

• Sales representatives in the healthcare industry are expected to manage their “territories” as if they were running their own business.

• To be successful in your sales territory its important to know which customers drive you more business, what their “buying” style is; so that you can match your selling style to it.

• One major goal of a medical sales representative is to be seen as a valued consultant by Doctors

• Doctors typically have full day schedules, with no direct access and they may frequently need to reschedule appointments due to medical emergencies. That makes face to face meetings rare and precious when you get a chance to have one.

Medical Reps Must have a database of: •Customer profile•Product profile: all studies , all information about the product•Doctor’s information and his field of specialization

• Must have detailed information about how your drug can be helpful and how it differs from other drugs.

• Should know details about the disease

•  It is helpful to take advantage of certain events such as knowing the doctor birthday and to time your visit at that day bringing a small gift with you.

In order to get sales the medical representative must –•prescribe his products•To greet him upon his visit.•To understand the properties of his product over competitors’ ones.•Feedback

Doctor list comprises those doctors available in each representatives territory.•Doctor list is sub divided into 3 categories –a)Super core doctorsb)VVIP doctorsc)VIP doctors

• These division among doctor is made depending upon the type of sales each doctors give and number of times the representative required to visit.

• Doctor list is finalized by both Area manager and regional manager of the organization.

• Each doctor is assigned with a code • The Medical Representative, while preparing the

daily reports, will use relevant code number assigned to each doctor

• Each medical representative will fill all the columns of the Doctor list on regular basis

A diverse nature of buying need different selling function

Selling is classified as:-• Order takers• Order creators• Order getters

• This this are the retail sales assistants

• Here a customer chooses a variety of products from a range available in store without the salesperson.

• Salesperson only complete the transaction

• He receives payment and passes the goods to customer

Further divided into 3:-• Inside order takers • Outside order takers-visits the

customers and solve their concerns rather then finding new customer

• Delivery sales person-deliver product to customer eg..milk

• Missionary salespeople are the one who do not close the sale but persuade the customer to promote sellers brand

• Rather then closing creating a awareness is more important here

• Eg.medical rep. don’t buy medicines personally but tell DR to prescribe it to patients.

Objective :- to persuade a customer to make a direct sale i.e persuade new buyer or a non user to buy the product.

2 types• Frontline salespeople• Sales support salespeople

Further classified as:-• New business sales person-Mostly are

frontline managers who go door to door selling. Convert the leads to final sales.

• Organizational salespeople-believe in establishing long term relationship, mainly industrial sellers.

• Consumer salespeople- who sell spices,enclopedia insurance etc…door to door.

Further 2 types:-• Technical support salesperson:-

support the frontline salespeople when the product is complex or it needs negotiation in financial attention.

• Merchandisers:-provides support in retail ad wholesale selling situations.

Orders are negotiated nationally and sales to individual salespeople which are supported by merchandises who give them advice on display, execution on sales promotion ,checking stock level and maintaining relation, etc…

Sales department hierarchy incorporates various departments that a company has for the sales section. Sales staff is appointed by the company under various departments depending upon their skills, experience and most importantly designations.

SALES HIERARCHY

National Sales DepartmentZonal Sales DepartmentRegional Sales DepartmentDistrict Sales DepartmentTerritory Sales Department

This is the uppermost level or department in the sales department hierarchy.

This department leads the entire sales department and is equipped with administrative authorities in the sales department.

They craft a strategic plan and vision for the entire sales department, providing support, leadership and guidance to entire team to work for the company’s benefit and profit.

Setting up of goals for the sales team and developing new innovative strategies in an effective manner lies under his responsibility.

Sales DirectorNational Sales ManagerSales Vice PresidentNational Sales Coordinator and

DistributorSenior Sales AccountantGeneral Manager SalesChief Sales Executive

This is the second highest department in the sales department hierarchy.

These professionals are head at the zonal level and handle the teams underneath them.

Zonal Sales ManagerSenior Sales ManagerSales AdministratorSales Specialist 1Senior Lead DevelopmentSales AnalystCustomer Service Manager

These professionals in the sales department hierarchy are head of a particular region of a zone.

These professionals work under the orders of the zonal officers.

They specifically handle the regional branch of that particular area and get the work done from the lower level sales department.

Such a professional is responsible to oversee all the sales outlet of the provided area ensuring the fulfilment of the targets provided at the regional level.

A regional sales manager reports directly to the national sales manager. They are also bound to answer about the failures and actions of their team.

Regional Sales ManagerSales ManagerSales Branch ManagerAssistant Sales Branch Manager Inside Sales ConsultantLead Development Officer

This is the second lowest level in the sales staff hierarchy.

These professionals work on the orders of the regional sales department.

They are incorporated with a particular district area of any region. They work in the assigned area and also have a small team to work in that assigned district.

These are the sales professionals who supervise the granted sales outlet or branch of the company.

Branch Sales Manager supervise an entire team of sales persons in their outlet and manage the team to fulfill the targets on time for the company. They are bound to report to the regional sales manager.

District Sales ManagerSales Specialist IISales ConsultantSales Clerk Junior Sales ConsultantSales Support

This is the lowest level in the sales department hierarchy.

This level incorporates persons at lowest job titles with minimal experience of the field.

A specific territory is provided to these professional and they are to work in that particular territory.

Front line professionals following the commands of the branch manager while being motivated by the team leader.

Sales Associated are bound to report to their respective team leader and are expected to achieve their goal efficiently

Senior Sales AnalystSales AnalystSales RepresentativeSales AssociateSales PersonSales Trainee

(**Please refer the attached folder for Case Study 1.2 Pg 38-40)**

About the company:• GE Countrywide is one of India’s leading

finance companies set up in 1994, & helping customers with easy & quick loans

• Pioneer of customer loan in retail segment of market

• Robust IT support, latest technology, huge database, centralized operations, simple & convenient doccumentation & innovative methods – salient features of the organisation

• Offers home equity loans, direct-to-consumer loans, home loans, car loans, educational loans & personal loans – available as flexible payment periods & schemes.

About their selling process:• Uses a combination of push & pull marketing strategies• Newspaper ads for personal loans• Robust database of customers & businesses• Toll free number to answer the queries• Marketing & sales executives collect customer

doccuments from their home • Marketing research executives process the loan

applications• Branch managers review the clear cases, Risk

managers work out the risk analysis • Customer Relationship programme for retaining

customers & cross selling other products . Eg- insurance

• Lower interest rates & special privileges for loyal customers

Answer the following questions after reading the given case.

1) What are the roles & functions of direct sales associates in GE countrywide?

2) Analyse the diagram & explain various stages of sales management in GE countrywide

3) Why should a firm like GE countrywide maintain customer database? How is it helpful?

Direct sales associates play an important role in doccument collection & analysis , & finding new customers

They, along with the marketing executives are responsible for collection of doccuments from customer homes & maintaining & updating the files

They are basically responsible for approaching the new prospects , collecting relevant information from them & converting them into customers (here, loan applicants).

They do this in form of road shows, loan melas etc & collect info. From customers

This is done for sales realisation

• In accordance to the flowchart given, the GE Countrywide conducts the sales management process in following 6 important stages:

• Application stage• Document analysis stage• Eligibility analysis stage• Capacity analysis stage• Deviation analysis stage• Risk analysis stage• Final approval stage.

PTO….

Telecallers call the target customers & invite them to branch with reqd. documents, which are collected by marketing/sales executives & the information is processed & updated by marketing research executives.

Marketing research & direct sales executives evaluate loan applications on basis of eligibility

Clear cases are forwarded to relationship managers who analyse paying capacity of clients

Branch managers review cases to check if there is any deviation in organisational norms

Forwarded files sent to Head Office are approved after the risk analysis is performed by risk managers

Final approval is sent to resp. branches There are special customer relationship management

programs for retaining of customers.

GE Countrywide needs to have a database about their customers because it gives them immediate access to customer information. All the customer data is organised.

Customer database is required to check behaviour of customers and their needs and wants. Satisfying them becomes easier through this database. All the information is accessible at one place.

GE Countrywide believes in Customer Relationship Management. This is only possible if they have a database containing information about their customers.

Also this database will help the managers to pass customer information to each other as is required for loan approval. The database also helps to analyse customer information.

Sales Management – An Overview by Dr Surender Singh Kundu & Dr V K

Bishnoi. (http://www.ddegjust.ac.in/studymaterial/mba/mm-308.pdf) “Re-Think your sales approach” by Gary

Lockwood, Business Coach, for “The Advisor”

(http://www.isquare.com/sales.cfm)

Sales & Distribution Management by TAPAN M PANDA

Case Study 1.2, Page 38-40