s & dm module 1

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    Module - 1

    Introduction to Sales

    Management

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

    Sales - Meaning

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    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 intopicture)

    Evolution of Sales Concept

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    Helps organization to achieve its goals

    Enhances knowledge about both internal as well asexternal environment

    Information exchange among the departments

    Identification of potential prospects, qualify them anddevelop a long-term relationship with such customers

    Selling - Nature and Role

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    Sales makes a vital contribution to society and theeconomy, its negative image tends to overshadow thegood it does

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

    Selling - Image

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    Increase sales volume

    Contribute to profit

    Long-term growth of organization

    Improving the contribution to profit

    Attaining the long term growth in market

    Sales Management - Objectives

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    No tandem between sales and marketing functions in anorganization

    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 marketA negligible communication between these two organization

    Integrating Sales and MarketingManagement

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    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

    Environmental Changes affecting SalesManagement

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    Nowadays companies are hiring women too as a salespersonnel in selling products and services to both types ofindividual as well as industrial customers

    Entry of Women in SalesManagement

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    Sales Functions & 10

    Role of Sales Manager

    As a sales forecaster

    As a strategic planner

    As an observer of buyer behavior

    A market analyst

    A leader

    A cost and profit analyst

    A budget manager

    A communicator

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    Sales Functions & 11

    Responsibilities of Sales Manager

    Hiring (recruiting sales force)

    Training (Providing necessary sales training)

    Coaching ( observing the training needs of sales person)

    Motivating (continuous support)

    Setting targets and tracking results

    Recognizing and rewarding performance

    Providing leads and sales support

    Organizing the sales efforts

    Conducting sales meetings

    Allocating scares resources

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    Sales Functions & 12

    Roles of Sales Executives

    As a persuader

    A service provider

    An information-gatherer and reporter

    An advocate

    A traveler

    A coordinator and scheduler

    A problem definerA customer ego builder

    Arranging display for wholesaler and retailer

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    Sales Functions & 13

    Responsibilities of Sales Executive

    Identify potential customers from current data base

    Identifying prospective accounts and deciding upon thepriority and frequency of making calls

    Deciding upon the selling approachAdministering the sales order

    Service provider

    Information gathering and reportingSkill up gradation

    Administrative responsibilities

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    Sales Functions & 14

    Policies that Impact SalesManagementSales-related policies pertaining to the product

    Product line policy

    Product design policy

    Sales-related policies pertaining to the distribution

    Sales-related policies pertaining to the pricing

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    Personal Selling

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    Personal Selling 16

    Personal Selling - Meaning

    Personal selling is the process in which a salesperson hasa personal interaction with the customer for the purpose ofselling a product or service

    It is a promotional tool in any companys promotionalmix

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    Personal Selling 17

    Types of Selling Jobs

    Sales development

    The salesperson needs to generate a perceived need forthe product in customers mind.

    Sales maintenance

    Retaining the customer for the longtime with company

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    Personal Selling 18

    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

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    Personal Selling 19

    Sales Force Strategies

    Market access strategies

    Companys use of its own sales force

    Use of distributors

    Telemarketing independent sales agents

    The internet

    Developing hybrid marketing systems

    Establishing alliances

    Account relationship strategy

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    Personal Selling 20

    Theories of Personal Selling

    AIDAS theory

    Buying formula theory of selling

    Behavioral equation theory

    Right circumstances theory

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    Personal Selling 21

    Approaches to Personal Selling

    Stimulus-response approach

    Need satisfaction approach

    Problem-situation approach

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    Personal Selling 22

    Major Steps in Effective Selling

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    Personal Selling 23

    The Personal Selling Process

    ProspectingThe salesperson identifies qualified potential

    customers

    Pre-approach

    The salesperson learns as much as possible about aprospective customer before making a sales call

    ApproachThe salesperson meets the customer for the first

    timePresentation

    The salesperson tells the product story to thebuyer, highlighting customer benefits

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    Personal Selling 24

    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

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    Personal Selling 25

    Customer Related Issue in PersonalSellingUnderstanding customer types through different sellingstyles

    Trade selling

    Missionary selling

    Technical selling

    New business selling

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    Personal Selling 26

    Customer Related Issue in PersonalSellingFinding customers

    Researching customers

    Communicating effectively

    Providing customer services

    Creating customer satisfaction

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    Personal Selling 27

    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 dataCompetitive intelligence

    Sales forecasting tools

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    Hiring and TrainingSales Personnel

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    Hiring and Training 29

    Recruitment and Its Importance

    Helps in saving cost

    Helps in saving salary and other expenses

    Save the image of company by selecting right people

    Need to make strategies to keep the sales person for along time

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    Hiring and Training 30

    Determining Specific Requirementsof SalesmanMental Aptitude Dimension

    Mental alertness

    Business terms and memory recall aptitude

    Communication skills

    Numerically skills

    Mechanical interest

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    Hiring and Training 31

    Determining Specific Requirementsof SalesmanPersonality dimension

    Honesty or character

    Sociability

    Cynicism

    High energy levels

    Dominance

    Competitiveness

    Emotional maturity

    Work habits

    Work motivation

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    Hiring and Training 32

    Sales Personnel Selection Process

    Sourcing the Candidate

    Screening the Candidate

    Selection Test

    Background Check

    Personal Interview

    Letters of Recommendations

    Physical Examination

    Making the Employment Offer

    Personality Test

    Psychometric Test

    Honesty Test

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    Hiring and Training 33

    Importance of Sales Training

    To increase the productivity of sales force

    To decrease the wastage of sales force efforts

    To improve the image to organization

    To increase the customer relationship

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    Hiring and Training 34

    Types of Sales Training

    Initial sales training

    Follow-up or refresher training

    Training by the manufacturer to the distributors sales

    forceTraining by the manufacture to customer

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    Hiring and Training 35

    Sales Training Program

    Designing Training Program

    Determine the objectives of training program

    Review sales activities of the organization

    Determine who should be trained

    Identify training needs

    Determining how much training is required

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    Hiring and Training 36

    Sales Training Program

    Implementing theTraining program

    Selecting the righttrainer

    Timing of training

    Place of training

    Third party training

    Centralized training

    Training zone

    On-site training

    Training through postal

    material

    Satellite-delivered training

    Online training

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    Hiring and Training 37

    Sales Training Program

    Evaluating the TrainingProgram

    Salespersons reaction

    Knowledge acquisition

    Behavioral change/ transfer of learning

    Organizational outcomes

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    Thank you