Professional Documents
Culture Documents
sales management
Planning, direction and control of personal
selling including recruiting, selecting, training, equipping, assigning, supervising, compensating and motivating as these tasks apply to the personal sales force.
Sales management
Management of the personal selling task.
Is there anything like impersonal selling or non-
personal selling? Selling is an exchange transaction. Exchange of Product or service for money Money is the revenue or the earnings of an enterprise often called turnover or top line Sales therefore is the only revenue generating function in an enterprise.
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3. GROWTH
manufacturing marketing sales and sales support Concept of hunters and farmers The modern day sales manager is both an administrator in-charge of personal selling activity and a member of the group that makes marketing decisions of all types.
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The salesman
..they make more noise and more
mistakes, create more cheer, correct more errors, adjust more differences, spread more gossip, hear more grievances, pacify more belligerence and waste more time under pressure, all without loosing their temper, than any other class of professionals including politicians.
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The salesman
they live in hotels, cabs and tents on
trains, buses, eat all kinds of food, drink all kinds of liquids good and bad- sleep before, during and after business, with no sympathy from the office. They draw and spend more money with less effort, they come at the most inopportune time, under the slightest pretext, ask more personal questions. Yet they are a power in society
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The salesman
With all their faults, they keep the wheels
of commerce turning, and the currents of human emotions running. More cannot be said any man. Be careful whom you call a salesman, lest you flatter him. -Donald Benenson in Ziglar on Selling
Sales Management
QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL SALES PERSON
Sales organization
With various tasks required to be
performed the enterprise had to create a structure to ensure that work is done. (the Sears story) Principles of structure: authority, responsibility, performance, support/coordinate.
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Sales organization
Concept of organization: Group of
individuals working jointly to achieve a defined goal and bearing formal and informal relations with one another. An organization is oriented towards and a co-operative endeavor and a structure of human relationships.
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Purpose of organization
Eliminate waste of effort
Minimize friction Maximize co-operation
Define authority
Fix responsibility
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perform sales and sales management activities. Line and staff organization: Staff managers have advisory or support responsibility. e.g.Market research manager, Training manager.They are not directly responsible for achieving sales targets.
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Organization structures
Functional organization: focus is on
the principle of specialization. Each specialist has a functional responsibility and are permitted to direct and control the salesperson thru their immediate superior.
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Organization structure
Horizontal structure.
Specialised structure:
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Sales Manager
Sales Force
Sales Force
Sales Force
Sales Force
Clear authority & Responsibility Quick response & Decision, Low Cost Weak on marketing inputs Sales manager controlled
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Marketing Services
Sales
Area Sales Managers
Promotion Brand
Market Research
Sales Force
Customer Satisfaction teams Sales & Marketing Pricing & Promotion Channels Logistics
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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. Raw data is collected by sales people.
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relationships
Sales and service: contributes to
strategy success. Sales and distribution: minimizes stock out situation; improves inventory control; helps sales to focus on demand generation. Sales & Production: Sales and R&D Sales &Finance
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SEGMENTWISE PLAN
GEOGRAPHICAL PLAN CUSTOMERWISE PLAN PLAN BY VALUE PLAN BY VOLUME
PAST TREND
PREVIOUS YEAR SALES CURRENT YEAR ACHIEVEMENT NEXT YEAR PLANS ASSUMPTIONS
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CONTRIBUTE
DISCONTINUATION OF SALES TO AN ACCOUNT DE-EMPHASISING PRODUCTS ACCEPTING A PRIVATE BRAND ORDER
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SALES PLANNING
NEW BUSINESS
VISION STRATEGY
MISSION
GOALS
*ACTION PLANS
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Motivating
Controlling Leading
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Sales planning
Forecasting a key planning tool
PRODUCT LEVEL total sales industry sales company sales product line sales product variant sales
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Planning process
Sales plan
Capacity plan Production plan Cash flow plan Procurement plan
Sales forecast
Why forecast?
One of the keys to success in sales is knowing where customers are located and being able to predict how much they will buy.
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Objective definition
Identifying critical factors (assumptions) Selecting method of forecasting Collecting, analysing, interpreting data. Concluding predictions.
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Customer
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Forecasting Approaches
Top - down / Break down approach
An SBU level forecast broken down to region, district, territory, salesperson and individual customer sales quotas Bottom up / Build up approach Individual customer to branch to zone to company level forecast
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Executive opinion Delphi method prediction by a panel Sales force composite grass roots approach. Test marketing controlled or simulated
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Selling situations
Customers intention and expectation are
specific. (insurance, mobile service) Customer is contacted over phone Customer is an organizational buyer Customer seeking service or solution Customer in a retail store Cold calling situation Pharmaceutical selling Creative selling ( ad.campaign)
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blue print for making sales. It involves money invested in distribution facilities, promotion efforts, and sales personnel. It is the foundation on which to plan sales objectives and the means of achieving them during the coming year.
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Sales budget
A budget is a quantitative expression of plans.
Most well managed enterprises use a budget which is a comprehensive and coordinated plan for the operations and resources of the enterprise. It is a formal and intricate process Approaches are either incremental or zero based. In a volatile economic climate organizations estimate optimistic, realistic and pessimistic scenarios.
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Sales budget
Critical factors considered: 1. past trends 2. Sales force estimates 3. Trade prospects 4. Present scenario 5. Customers: existing and potential 6. Government policies 7. Industry environment
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very complicated because structure of the customers vary in each territory, the level of competition varies across territories, the connectivity for travel varies etc. There are 3 generally accepted approaches: affordability, incremental and workload methods.
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Sales territories
Definition : A sales territory consists of
existing and potential customers assigned to a sales person. The territory may or may not have geographic boundaries.
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Territory design
Main procedural steps:
unit 2. Determination of sales potential present in each unit 3. Combining the basic units into tentative territories 4. Adjust for differences in coverage difficulty and readjust the tentative territories ( build up / break down method )
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Territory design
Build up method:
Decide call frequency Calculate total no of calls in the unit Estimate workload capacity of salesman Make tentative territories Develop final territories
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Territory design
Break down method:
Estimate company sales potential for total market. Forecast sales potential for each control unit. Estimate sales expected from each salesman. Make tentative territories. Develop final territories.
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satisfaction
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Quotas
Quotas are quantitative goals assigned
to individual sales persons for a specified period of time. One of the most widely used tools in sales management. Should not be confused with sales potential or sales forecast. Quotas may be set equal to ,above or below the sales forecast.
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Why Quotas ?
To help management motivate sales
people. To direct sales people where to put there efforts. To provide standards of performance evaluation
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Types of Quotas
Sales volume Quotas : Rupee volume /
Unit volume Profit based Quotas: contribution / gross margin Activity Quotas: calls per day; sales meetings; product demos; ( efforts = results.) Expense Quotas
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R-realistic
T-time bound
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What is Motivation??
Drive to initiate an action. The intensity of effort in an action The persistence of effort over
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Why motivation
Frequent rejection
Physical separation from company
support
Direct influence on quality of sales
presentation
Indirect influence on performance
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need is motivation Motivation includes three dimensions: Direction, Intensity and persistence. Motivation may also be Intrinsic or extrinsic Maslows hierarchy of needs:
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Maslows theory
Self Actualisation Esteem needs Social needs Safety needs
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factors.( dis satisfiers ) Achievement, challenge, advancement, growth in the job. (satisfiers )
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SELLING
TO SERVE YOUR PROSPECTS YOU MUST UNDERSTAND THEIR NEEDS. PEOPLE INVARIABLY BUY WHAT THEY WANT, EVEN ABOVE WHAT THEY NEED
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and or actions.
BUYING PROCESS
NEED SEARCH IDENTIFY ISOLATE SELECT BUY CONSUME
SELLING PROCESS
PREPARE FOCUS DEFINE PROPOSE/PRESENT HANDLE OBJECTIONS CLOSE THE SALE FOLLOW UP
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4.
5. 6.
7.
Prospecting & Qualifying Pre approach (pre call planning ) Approach Presentation & Demonstration Overcoming Objections Trial close / Closing the sale Follow up and Service.
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WANTS. Sell by design, not by chance. Follow a proven 4 step formula: NEED ANALYSIS NEED AWARENESS NEED SOLUTION NEED SATISFACTION
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Prospecting
Process of identifying potential buyers.
A prospect has a reasonable probability
of buying ,has sufficient need to justify a profitable sale ,has financial resources to buy and can be classified as eligible to buy MONEY? AUTHORITY? DESIRE?
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Locating prospects
Lead generation a three step process. 1. Defining the target market :what it wants; what it buys; where and when it buys; what it buys; how it buys; 2. Using communication tools to gather leads Advertising, Direct mail, Telemarketing, Trade shows, buying data 3. Qualifying the Leads.
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being represented, the market competition ,category or segment of customers and selling techniques. Product knowledge: Evolution-Features-BenefitsUniqueness-Price Company knowledge: History-Values-AchievementsManagement-Policies
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characteristics and preparing a proposal on how the product or service offered can satisfy the need. Steps involved are: Determining call objectives. Development of customer profile. Determine customer benefits. Determine the flow and content of the presentation.
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prospects current situation. (who will decide? is it the first time ? Changing source ? Problem identification question: Questions to uncover problems, difficulties or needs ( problems on quality, delivery ?) Problem impact questions: questions to make the buyer realise the impact of the problem and the need to solve it.( what will be the impact on costs , on customer satisfaction ?)
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help the buyer asses the value or usefulness of the solution ( for x benefit how much would you save ? Confirmation questions: (how would an error free system help?)
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Need awareness
At this stage you need to THINK
Prospect and Salesperson should both
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Need solution
Present your product
Time to stop asking questions and start
providing solutions. People dont buy products, they buy what the product does for them.
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you are more likely to find out what the person thinks.( the seat belt case) Tying emotion to logic.
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to discover the needs of our potential customers. 1st The Open Door Questions.-allows the prospect the freedom to go where ever they like. the who, what where ,when, how and why questions
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Questioning
The closed door question: would you
tell me more; what do you mean byAnswers to these give you information to helping the prospect and building trust.
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Questioning
yes or no questions demand a
direct response. do you agree.. would my proposal.. are we in agreement.. They allow you to check on your progress on the sales process. trial close
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Presentation methods
Stimulus response method: also called a
canned approach, a memorised sales presentation .It assumes that if a right stimuli is made it will get a favourable response. Formula method: the AIDA process. Need-satisfaction method: an interactive sales presentation. The most challenging and creative method. The FAB way. Features, Advantages, Benefits.
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The presentation
Attracting Attention
Creating Interest Building Desire and conviction
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Presentation methods
Team selling method: a multi person sales
team deals with a multi person buying centre (or buying committees) Sales team consists of Account executive, technical support engineer, logistics expert, IT or systems executive and Finance executive. Buying committee consists of materials exec. manufacturing/operations exec. supply chain exec. Materials manager and Finance exec.
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Presentation methods
Consultative selling method: problem-
solution method. Requirements are: Knowledge of the industry, clients company, awareness of key members needs,
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Objections
Objections , opposition , resistance to
the presentation typically happens during the presentation or while asking for the order. Objections should be welcomed. Objections indicate that the prospect is involved and not indifferent. Objections reflect the prospects view.
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Objections
1.
2.
Psychological ( hidden ) includes pre-determined ideas or beliefs, preference for established brands, dislike of making decisions , anxiety or resistance to spend money , suspect about quality etc. Logical or practical or real delivery schedule, high price , product availibility,
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Handling objections
Listen
Understand Negotiate
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reconfirm the objection and explain. Turn objection into a benefit and trial close. Deny objections tactfully. (arrogance and sarcasm to be strictly avoided) Testimonials, referals Compensation for valid objections.
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Negotiation
Plan pre determine firm and flexible
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Negotiation styles
Win loose
Win Win Loose - Loose
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comparison Opportunity benefit Emotional appeal Direct closure A.A.F.T.O=Always Ask For The Order
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