Module -1 Introduction

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Sales management

The only business function that generates revenue.

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SELLING

•THE WORD SELL IS DERIVED FROM A Norwegian WORD SELJE

WHICH MEANS TO SERVE.

•TO SERVE YOUR CUSTOMERS YOU MUST UNDERSTAND THEIRNEEDS.

•SELLING IS OF TWO TYPES• DIRECT• INDIRECT

Dr. Rosenbloom

A form of person to person A form of person to person communication in which a communication in which a salesperson works with salesperson works with prospective buyer and prospective buyer and attempts to influence attempts to influence purchase in the direction of purchase in the direction of his or her company’s his or her company’s products or servicesproducts or services

Personal Selling DefinedPersonal Selling Defined

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The personal selling/sales process

1. Prospecting

2. Pre approach

3. Approach

4. Presentation

5. Close

6. Follow –up

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Sales : relation with marketing activities

Sales &Advertising: both stimulate demand. They need to be blended. Salespersons can improve advertising effectiveness. Advertising needs to support sales where and when they need it most.

Sales & Marketing Information: data is needed for analysis of sales problems, for determining sales potential.

Sales and Distribution Sales and Market Research Sales and Service: contributes to strategy

success.

Cadbury’s Case Study- Who won the Battle of Worms?

In October 2003, just a month before Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant.

In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms.

But the FDA didn't buy that. The FDA commisioner told CNBC-TV18, "It was presumed that worms got into it at the storage level, but then what about the packing - packaging was not proper or airtight, either ways it's a manufacturing defect with unhygienic conditions or improper packaging.”

That was followed by allegations and counter-allegations between Cadbury and FDA. The heat of negative publicity melted Cadbury's sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.

For the first time, Cadbury's advertising went off air for a month and a half after Diwali, following the controversy. Consumers seemed to ignore their chocolate cravings.

As a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - an education initiative covering 190,000 retailers in key states. But what the company did in January 2004 is what really helped de-worm the brand.

By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's revamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury didn't hike the pack price.

Bharat Puri, managing director, Cadbury's India says, "While we're talking about a few bars of the 30 million we sell every month - we believe that to be a responsible company, consumers need to have complete faith in products. So even if it calls for substantial investment and change, one must not let the consumer confidence erode."

Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do some heavy duty endorsement putting his personal equity on the line for the brand.

The company upped ad spends for the Jan-March quarter by over 15 per cent. The recovery began in May 2004, and by June, Cadbury's claimed that consumer confidence was back.

These experts believe that the reason for Cadbury's success was that it took crisis head-on. And the consumers were more forgiving, because the brand enjoyed an emotional equity in India.

What Cadbury's set out to deliver, it goofed up once but it seemed to be very sincere in its intent to get things right.

Cadbury's could be case study of a sweet recovery from a crisis. It continues to lead the Indian chocolate market with over 70 per cent market share. However, the experts feel that today's constantly changing environment should keep the company on guard.

Sales & Integrated marketing communication

Integrated marketing communication- the synergized coordination of every communication from a firm to a target customer to convey a consistent and complete message.

Sales will enhance if IMC is well coordinated, channelized & streamlined. E.g Cadburys

Definition

Sales Management- is the attainment of sales force goals in an effective and efficient manner through planning, staffing, training, leading, and controlling organizational resources.

Goals of a Sales Manager

Increase Sales Increase Revenues Control internal costs Maximize Profits Maximize Market Share

Sales Management - Flowchart

Planning Personal Sales RepsSales

Managers

Recruiting

Training

Motivating

Supervising

Managing a sales force involves recruiting,training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly.

Overview Sales

Environment

Sales Environment

Geographic Demographic Psychographic Ethical Legal International

Evolution of Sales Management

Prior to industrial revolution not much emphasis was given on sales.

Small scale production. With the advent of industrial revolution, mass

production started Large organizations started dominating the market. Supply exceeded demand- led to salesmanship. Middlemen like wholesalers & retailers came into

picture.

…..contd With the complication in channels of distribution,

there was a realization of separate sales department. Solved the problem of market expansion. The selling process became more complex &

required special attention. Became necessary to split sales into sales & other

support functions; led to the marketing concept.

…..contd

The modern day sales manager works in an integrated manner with other marketing functions

Salesmanship challenges more in consumer durable & industrial products.

Sales Management- Career Path

Level One Sales Trainee Level Two Sales Executive/

Sales Engineer Level Three Branch Head Level Four City Head Level Five Area Sales Manager Level Six Regional Sales Manager Level Seven Zone Sales Manager Level Eight National Sales

Manager Level Nine V.P. Marketing Level Ten President/ Country

Head

Qualities of a Sales Person

Create trust & credibility Understand buyer behavior Good communication skills Creativity Logical Research oriented Knowledge

Salesmanship- both an art and a science!

Emerging Trends in Sales Management

Transactional to Relationship Individuals to Teams Local to Global Sales Force Diversity Ethical and Social Issues Online Sales