Selling & Sales management

Selling
Selling is an exchange transaction.
Exchange of Product or service for
money.
The only business function

that generates revenue.

2

 Marketing
Advertising
Sales

 Top Management
Marketing Management
Sales Management

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 sales force.
5

Sales management
Management of the personal selling task.
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 .

6

Objectives of sales management

3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales cost of sales = gross margin.
Gross margin expenses =net profit.
7

Sales management: evolution

Industrial Revolution 1760

Small home industries Large scale manufacturing

marketing sales and sales support

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.
8

Evolution of Selling

Hard sell: Formerly thought customers had

to be forced into making a purchase

Relationship selling: Now selling requires

the development of a trusting partnership in
which the salesperson seeks to provide
long-term customer satisfaction
Dr. Rosenbloom

Sales Management in the 21st Century

Building long-term relationships with customers

Creating sales organizational structures that are more adaptable
Gaining greater job ownership and commitment from
salespeople by removing functional barriers within the
organization
Moving sales management style from commanding to coaching
Leveraging available technology for sales success
Better integrating salesperson performance evaluation to include
full range of activities and outcomes

Why choose the sales profession?

Employment in sales is growing
Sales positions offer advantages:

Good compensation
Intrinsic reward from helping customers
Flexible in day-to-day activities
High-visibility career track
Limited supervision
Travel opportunities
Increasing responsibilities

Dr. Rosenbloom

Sales Executives

Sales Executive are professionals. The professional

approach requires thorough analysis, market efficient
personal selling objectives, appropriate sales policies
and personal selling strategy.

Sales Executives have responsibilities to their

Organization, Customer and Society.

Desirable Salesperson Traits

Empathetic
Self-motivated

Competitive

Organized

Goal-oriented

Salesperson

Enthusiastic

Adaptive
Customeroriented
Dr. Rosenbloom

Selling Environments and Selling Types

Selling Environments

Selling Types

Over-the-counter

Order taker
Order getter
Professional salespeople
National account managers
Missionary salespeople
Support salespeople
Outbound
Inbound

Field Selling

Telemarketing

Dr. Rosenbloom

Over-the-Counter Selling
Order taker
Order Getter

A salesperson who only processes the

purchase that the customer has already
selected

Retail outlets that are heavily oriented toward

self-service

Over-the-Counter Selling
Order taker
Order Getter

A salesperson who actively seeks to provide

information to prospects, persuade
prospective customers, and close sales

Personal service oriented stores

May practice suggestion selling

Field Selling
Professional Salespeople
National account managers
Missionary Salespeople
Support Salespeople

Help prospective customers to define their needs and

then suggest the best means of meeting those needs,
even if that requires suggesting that the prospects use a
competitive product

Field Selling
Professional Salespeople
National account managers
Missionary Salespeople
Support Salespeople

Highly skilled salespersons who call on key

customers headquarters sites, develop strategic plans
for the accounts, make formal presentations to toplevel executives, and assist with all the product
decisions at that level.

Field Selling
Professional Salespeople
National account managers
Missionary Salespeople
Support Salespeople

They do not seek to obtain a direct order from their

customers
Primary goal is to persuade customers to place
orders with distributors or wholesalers

Field Selling
Professional Salespeople
National account managers
Missionary Salespeople
Support Salespeople

Support the sales force in a number of ways

Technical support salespeople assist with
technical aspects of sales presentations
Merchandisers may set up product displays

Telemarketing
Telemarketing

Utilizing the telephone for prospecting, selling,

and/or following up with customers
Outbound: the salesperson uses the telephone to call
customers
Inbound: Firms which have customers calling the
vendor company to place orders (toll-free phone
Dr. Rosenbloom
numbers)

The Personal Selling Process

Prospecting

PreApproach

Need
Identification

Follow-Up

Gaining
Commitment

Approach

Handling
Objections
Dr. Rosenbloom

Presentation

The Personal Selling Process

Prospecting
Prospecting involves finding qualified sales leads
Prospecting involves finding qualified sales leads
Qualified sales leads: potential customers that have a need

Qualified sales leads: potential customers that have a need

for
forthe
thesalespersons
salespersonsproduct,
product,and
andare
areable
abletotobuy
buy
Referrals: obtained by the salesperson asking current
Referrals: obtained by the salesperson asking current
customers
customersififthey
theyknow
knowofofsomeone
someoneelse
elsewho
whomight
mighthave
haveaa
need
needfor
forthe
thesalespersons
salespersonsproduct
product
Cold-calling: means contacting prospective customers
Cold-calling: means contacting prospective customers
without
withoutaaprior
priorarrangement
arrangement
Dr. Rosenbloom

The Personal Selling Process

Pre-approach

The collection of information about the potential

The collection of information about the potential

customer
customerand
andthe
thecustomers
customerscompany
companyprior
priortotothe
the
initial
initialvisit
visit
Researching the prospect and the company will
Researching the prospect and the company will
assist
assistthe
thesalesperson
salespersonininplanning
planningthe
theinitial
initial
presentation
customer
presentationtotothe
theprospective
prospective
customer
Dr. Rosenbloom

The Personal Selling Process

Approach

The development of rapport with the customer

The development of rapport with the customer
The chance to make a good first impression
The chance to make a good first impression

The salesperson should adapt to the potential

The salesperson should adapt to the potential

customers
customerssocial
socialstyle
style

Dr. Rosenbloom

Social Styles
Fact-oriented
Analytical

Driver

Risk
Adverse

Risk
Takers
Amiable

Expressive
Peopleoriented

Dr. Rosenbloom

Social Styles
Fact-oriented
Analytical

Driver

Risk
Adverse

Risk
Takers
Amiable

Expressive

People-oriented

Very fact-and-detail oriented

Very fact-and-detail oriented

Require time to make decisions

Require time to make decisions
Not interested in socializing
Not interested in socializing

The salesperson should cope the analytical with

The salesperson should cope the analytical with

facts
factsand
andfigures
figuresthat
thatcan
canbe
besupported
supportedwith
with
Dr. Rosenbloom
documentation
documentation

Social Styles
Fact-oriented

Analytical

Driver

Risk
Adverse

Risk
Takers
Amiable

Expressive

People-oriented

Action-and goal oriented, and makes quick

Action-and goal oriented, and makes quick

decisions
decisions
Basic facts and not big on socializing
Basic facts and not big on socializing
The sales person should provide the bottom-line
The sales person should provide the bottom-line
information
informationfirst
firstand
andthen
thenwork
workbackward
backwardtotofill-in
fill-in
essential
essentialdetails
details Dr. Rosenbloom

Social Styles
Fact-oriented
Analytical

Driver

Risk
Adverse

Risk
Takers
Amiable

Expressive

People-oriented

A visionary with big ideas for the future but not a detailA visionary with big ideas for the future but not a detail-

oriented
orientedindividual
individual
Hesitant to make quick decisions and will seek consensus
Hesitant to make quick decisions and will seek consensus
from
fromothers
others
Seeks to socialize with the salesperson
Seeks to socialize with the salesperson
The salesperson should provide assurances that will reduce
The salesperson should provide assurances that will reduce
the
risk
Dr.
Rosenbloom
theamiables
amiablesfeeling
feelingofof
risk

Social Styles
Fact-oriented

Analytical

Driver
Risk
Takers

Risk
Adverse
Amiable

Expressive

People-oriented

Loves to socialize and will frequently base the purchase

Loves to socialize and will frequently base the purchase

decision
decisionon
onthe
therelationship
relationshipwith
withthe
thesalesperson
salesperson
The salesperson should establish a personal relationship
The salesperson should establish a personal relationship
with
withthe
theexpressive
expressiveby
bytelling
tellingstories,
stories,by
bysocializing
socializingoutside
outside
the
theoffice
officeand
andby
byrelating
relatingpersonal
personalinformation
information
Dr. Rosenbloom

The Personal Selling Process

Need
Identification

Requires asking probing questions of the

Requires asking probing questions of the

prospective
prospectivecustomer
customertotodetermine
determineneeds
needs
The salesperson should ask open-ended questions
The salesperson should ask open-ended questions
Make sure that the customers needs and potential
Make sure that the customers needs and potential
concerns
concernsare
areaddressed
addressed
Dr. Rosenbloom

The Personal Selling Process

Presentation

The focus of the sales presentation is the

The focus of the sales presentation is the

salespersons
salespersonsexplanation
explanationof
ofhow
howthe
thefeatures
featuresof
ofthe
the
product
productprovide
providebenefits
benefits
Presentation may be flexible or memorized
Presentation may be flexible or memorized
The salesperson should be prepared to provide
The salesperson should be prepared to provide
documentation
documentationfor
forany
anystatements
statementsof
offact
factthat
thatare
are
made
Dr. Rosenbloom
made

The Personal Selling Process

Handling
Objections
The salesperson may have failed to provide
The salesperson may have failed to provide

adequate
adequateinformation,
information,or
orhave
havenot
notdemonstrated
demonstrated
how
howthe
theproduct
productmeets
meetsthe
theneeds
needsof
ofthe
theprospect
prospect
Objection as a sign of interest on the part of the
Objection as a sign of interest on the part of the
prospect
prospect
Provide information that will ensure the prospects
Provide information that will ensure the prospects
confidence
the
Dr. Rosenbloom
confidenceininmaking
making
thepurchase
purchase

The Personal Selling Process

Gaining
Commitment

Commitment is gained when the prospect agrees to

Commitment is gained when the prospect agrees to

take
takethe
theaction
actionsought
soughtby
bythe
thesalesperson
salesperson
The salesperson must ask for commitment
The salesperson must ask for commitment
Dr. Rosenbloom

The Personal Selling Process

Follow- Up

The salesperson complete any agreed upon actions

The salesperson complete any agreed upon actions

The salesperson should stay in touch after the sale by

The salesperson should stay in touch after the sale by

writing
writingthank-you
thank-younotes,
notes,mailing
mailingnewspaper
newspaperarticles
articles
of
ofinterest
interesttotothe
theprospect
prospectand
andcalling
callingon
onthe
thecustomer
customer
totoensure
ensurethe
thecustomers
customerssatisfaction
satisfaction
Dr. Rosenbloom

Sales Certification

Several organizations now offer certification

programs that are designed to increase the
professionalism and expertise of the salespeople

Sales and Marketing Executives International (SMEI)

Hospitality Sales and Marketing Association International
(HSMAI)
National Association of Sales Professionals (NASP)

Dr. Rosenbloom

Sales Management
Recruit, train, motivate, and evaluate their
sales representatives
Manage territories
Develop sales plans and sales forecasts
Identify business opportunities and create
appropriate strategies
Encourage the sales team to create addedvalue for the customer

Dr. Rosenbloom

Sales Management

Recruiting
Empathetic

Self-motivated

Organized

Competitive

Salesperson

Enthusiastic
Custome
roriented

Goal-oriented

Adaptive

Individuals with desirable salesperson traits

Individuals whose values and goals match
those of the firm

Sales Management

Sales Force Training

Train the new sales representatives on product

and customer knowledge and selling skills
Sales training is expensive but the pay off is
worth it.
All sales representatives should periodically
receive training to keep up-to-date and to keep
their skills

Dr. Rosenbloom

Sales Management

Motivating the Sales Force

Sales Force Quotas

Provide further motivation to salespeople and to

encourage salespeople to focus on the priories of
the company
Reward when the pre-specified performance level
(quota) is reached Dr. Rosenbloom

Sales Management

Motivating the Sales Force

Sales Coaching

Regular praising of salespeople and let them know

their efforts are appreciated
Rapport-building, open communication, and
modeling behavior
Good sales management
Dr. Rosenbloom
feedback

Sales Management

Sales Force Compensation

Sales
Productivity
Straight S
alary Plan
The sales force have greater security but

no desire to put extra efforts

Dr. Rosenbloom

Sales Management

Sales Force Compensation

Sales
Productivity
Commiss
ion Plan

A great deal of insecurity due to

uncontrollable factors like economic

Dr. Rosenbloom
recession

Sales Management

Sales Force Compensation

Bonus paid on
this difference

Salary plus Commission

Dr. Rosenbloom

Sales Management

Evaluation of Performance

Sales managers should provide continual

guidance and feedback
Use more quantitative methods of evaluation
to reduce bias in the evaluation process

Sales Management

Territory Organization and Management

Which method to organize the territory?

By product line or by geographical area

The salesperson calls on customers that

represent dozens of different industry
(more traditional)

Around customer

The salesperson is asked to call on

customers in one or two specific industries,
regardless of where the customer is located
geographically

Sales Management

Territory Organization and Management

Territory
Territory Allocation
Allocation

Each salesperson should feel his/her territory offers as

much potential as each colleagues territory
Each salesperson should feel the territory division does
not require that he/she work any harder than any other
salesperson

Sales Management

Territory Organization and Management

Territory
Territory Potential
Potential

The sales manager should help the sales force maximize

their territories potential
Make sure that the salespeople are not meeting their
quotas from the large purchases of one key buyer
Utilize market research to ensure no potential accounts
are being overlooked in any given territory

Sales Force Technology

The use of technology among sales
forces is growing
Sales managers must be computer
literate
Notebook computers, cellular phones,
and portable fax machines

Dr. Rosenbloom

Sales Force Technology

Palm

Computing,
Inc.

Dr. Rosenbloom

Legal and Ethical issues

Salespersons Obligations

Obey the instructions of the company

Act with due diligence
Be responsible for the companys property
Exhibit loyalty
Relay information to the company that is
relevant

Dr. Rosenbloom

Legal and Ethical issues

Companys Responsibility

Comply with any agreement made between the

company and the salesperson
Reimburse the sales expenses incurred while
carrying out the business
Warn the salesperson of any risks associated with
business practices
Protect the salesperson against legal liability
Dr. Rosenbloom

Unethical/Illegal Behaviors
Price discrimination and unfair pricing
Gifts and bribes
Misleading advertising
Unfair competitive practices
Defrauding customers
Unfair credit practices
Price collusion with competitive firms

Dr. Rosenbloom

Selling Activities
Performing the sales
function
Working with orders
Servicing the product
Servicing the account
Providing the
information to
management

Participating in
conferences/meetings
Training and
recruiting
Entertaining
customers
Traveling
Working with
distributors

Dr. Rosenbloom

Specific Types of Sales Jobs

Trade Selling

Missionary Selling
Technical Selling
New-business Selling
Retail Selling

Build sales volume

by providing
customers with
promotional
assistance in the
form of advertising
and sales promotion

Telemarketing
Dr. Rosenbloom

Specific Types of Sales Jobs

Trade Selling

Missionary Selling
Technical Selling
New-business Selling

Where trade
salespeople sell to,
missionary
salespeople sell for
its direct consumers

Retail Selling
Telemarketing
Dr. Rosenbloom

Specific Types of Sales Jobs

Often technically
trained in
Missionary Selling
chemistry,
Technical Selling
engineering, and
computer science
New-business Selling
Support the regular
Retail Selling
sales force or help
Telemarketing
sell the product
Trade Selling

Dr. Rosenbloom

Specific Types of Sales Jobs

Trade Selling

Missionary Selling
Technical Selling
New-business Selling
Retail Selling
Telemarketing

Used in industries
that have one time
or very infrequent
sales, thus,
salespeople must
constantly develop
new leads to
generate sales

Dr. Rosenbloom

Specific Types of Sales Jobs

Wide range of skills
required
Missionary Selling
Can require
Technical Selling
knowledge,
communication
New-business Selling
skills,
and
ability
to
Retail Selling
work with diverse
Telemarketing
customers
Trade Selling

Dr. Rosenbloom

Specific Types of Sales Jobs

Trade Selling

Missionary Selling

Telemarketing uses
outbound calls to:

Technical Selling
New-business Selling
Retail Selling
Telemarketing
Dr. Rosenbloom

Open new accounts

Qualify advertising
leads
Service existing
business

Salesperson Performance
Aptitude
Skills Level
Motivational Level
Role Perceptions
Personal
Characteristics
Adaptability

Dr. Rosenbloom