Introduction to Sales

Management

Introduction to Sales Management 2

Objectives

Evolution of Sales Concept Nature and Role of Selling Image of Selling Objectives of Sales Management Integrating Sales and Marketing Management Environmental Changes Affecting Sales

Management Entry of Women in Sales Management

Introduction to Sales Management 3

Sales - Meaning

The exchange of goods or services for an amount of money or its equivalent in kind

Introduction to Sales Management 4

Evolution of Sales Concept

First generation (Exchange of goods) Second generation (Store concept) Third generation (Search of the customer started) Fourth generation (First step to systematic selling) Fifth generation (Need based selling) Sixth generation (Started in 1960) Seventh generation (Customer satisfaction came into

picture)

Introduction to Sales Management 5

Selling - Nature and Role

Helps organization to achieve its goals Enhances knowledge about both internal as

well as external environment Information exchange among the departments Identification of potential prospects, qualify

them and develop a long-term relationship with such customers

Introduction to Sales Management 6

Selling - Image

Sales makes a vital contribution to society and the economy, its negative image tends to overshadow the good it does

The profession of selling is one of the most degraded, condemned, and ridiculed professions in the society

Introduction to Sales Management 7

Sales Management - Objectives

Increase sales volume Contribute to profit Long-term growth of organization Improving the contribution to profit Attaining the long term growth in market

Introduction to Sales Management 8

Integrating Sales and Marketing Management

No tandem between sales and marketing functions in an organization

A marketing person may perceive the sales job as One with no scope of creativity Sales people do not understand the behavior of customers

rightly A sales person may perceive the marketing job as

Inferior because sales people make the marketing program successful

Being alienated from the actual market A negligible communication between these two

organization

Introduction to Sales Management 9

Environmental Changes affecting Sales Management

Shorter product life cycle Longer, more complex sales cycle Reduced customer loyalty Intense competition among manufacturing

companies Rising customer expectation Increasing buyer expertise Electronic revolution in communication

Introduction to Sales Management 10

Entry of Women in Sales Management

Nowadays companies are hiring women too as a sales personnel in selling products and services to both types of individual as well as industrial customers

Introduction to Sales Management 11

Personal Selling

Personal Selling 12

Objectives Buyer Seller Dyads Types of Selling Jobs Sales Force Objectives Sales Force Strategies Theories of Personal Selling Approaches to Personal Selling Personal Selling Process Customer Related Issues in Personal Selling Automation in Personal Selling

Personal Selling 13

Personal Selling - Meaning

Personal selling is the process in which a salesperson has a face to face interaction with the customer for the purpose of selling a product or service

It is a promotional tool in any company’s promotional mix

Personal Selling 14

Buyer Seller Dyads

Whenever a seller and a potential buyer interact, they constitute a dyad, which is called a ‘buyer-seller dyad’

Pair / Group of 2 People

Personal Selling 15

Types of Selling Jobs

Sales development The salesperson needs to generate a perceived need

for the product in customer’s mind.

Sales maintenance Retaining the customer for the longtime with

company

Personal Selling 16

Sales Objectives

Qualitative Objectives Effective time management Possessing sufficient knowledge Maintaining good customer relation

Quantitative Objectives Increase market share Number of sales call made Minimize sales expenses

Personal Selling 17

Sales Force Strategies

Market access strategies Company’s use of its own sales force Use of distributors Telemarketing independent sales agents The internet Developing hybrid marketing systems Establishing alliances Account relationship strategy

Personal Selling 18

Theories of Personal Selling

AIDAS theory (Attention-Interest-Desire-Action-Satisfaction)

Buying formula theory of selling Behavioral equation theory Right circumstances theory

Personal Selling 19

Approaches to Personal Selling

Stimulus-response approach Need satisfaction approach Problem-situation approach

Personal Selling 20

Major Steps in Effective Selling

Personal Selling 21

The Personal Selling Process

ProspectingThe salesperson identifies qualified potential customers

Pre-approachThe salesperson learns as much as possible about a prospective

customer before making a sales call

ApproachThe salesperson meets the customer for the first time

PresentationThe salesperson tells the “product story” to the buyer, highlighting

customer benefits

Personal Selling 22

The Personal Selling Process

Handling ObjectionsThe salesperson seeks out, clarifies, and overcomes customer objections to buying

ClosingThe salesperson asks the customer for an order

Follow-upThe salesperson follows up after the sale to ensure customer satisfaction and

repeat business

Personal Selling 23

Customer Related Issue in Personal Selling

Understanding customer types through different selling styles Trade selling Missionary selling Technical selling New business selling

Personal Selling 24

Customer Related Issue in Personal Selling

Finding customers Researching customers Communicating effectively Providing customer services Creating customer satisfaction

Personal Selling 25

Benefits of Sales Force Automation Information sharing Handling customer alerts Reporting sales force activities Tracking the progress of leads Accurate routing of leads Internet based facilities Customer profiling Comparison of historical data Competitive intelligence Sales forecasting tools