SALES AND DISTRIBUTION MANAGEMENT

Unit I: Definition, Objectives and Scope, Role of Sales Management in Marketing Management,
Recent trends in Sales Management
Unit I: INTRODUCTION
Evolution of Sales Management
Situation before industrial revolution in U.K. (1760AD)
Situation after industrial revolutions in U.K., and U.S.A.
Marketing funtion s!lits into sales and ot"er funtions like #arket
resear", advertising, !"$sial distribution
What is Sales Management?
One defnition: %&"e #anage#ent of t"e !ersonal selling !art of a
o#!an$'s #arketing funtion.(
Another defnition: %&"e !roess of !lanning, direting, and
ontrolling of !ersonal selling, inluding reruiting, seleting,
e)ui!!ing, assigning, su!ervising, !a$ing, and #otivating t"e !ersonal
sales fore.
Nature of Sales Management
Its integration with marketing management

Relationshi Selling
&ransational
*elations"i! + Selling
,alue - added
*elations"i! + Selling
.ollaborative + /artnering
*elations"i! + Selling
Imortan!e of "ersonal Selling and Sales Management
&"e onl$ funtion + de!art#ent in a o#!an$ t"at generates revenue +
ino#e
&"e 0nanial results of a 0r# de!end on t"e !erfor#ane of t"e sales
de!art#ent + #anage#ent
Man$ sales!eo!le are a#ong t"e best !aid !eo!le in business
1t is one of t"e fastest and surest routes to t"e to! #anage#ent
Roles and Skills of a Modern Sales Manager
So#e of t"e i#!ortant roles of t"e #odern sales #anager are2
A #e#ber of t"e strategi #anage#ent tea#
A #e#ber of t"e or!orate tea# to a"ieve ob3etives
A tea# leader, 4orking 4it" sales!eo!le
Managing #ulti!le sales + #arketing "annels
Using latest te"nologies (like .*M) to build su!erior bu$er5seller
relations"i!s
.ontinuall$ u!dating infor#ation on "anges in #arketing
environ#ent
Skills of a Su!!essful Sales Manager
"eole skills inlude abilities to #otivate, lead, o##uniate,
oordinate, tea#5oriented relations"i!, and #entoring
Managing skills onsist of !lanning, organi6ing, ontrolling and
deision #aking
#e!hni!al skills inlude training, selling, negotiating, !roble#5solving,
and use of o#!uters
#$es of Sales Managers % &evels of Sales Management "ositions
Sales O'(e!tives) Strategies and #a!ti!s
&"e #ain o#!onents of !lanning in a o#!an$ are ob3etives, strategies
and tatis. &"eir relations"i! is s"o4n belo4
7.8. A o#!an$ 4ants to inrease sales of eletri #otors b$ 19 !erent, as
one of t"e sales ob3etives. (see ne:t slide)
Emerging #rends in Sales Management
8lobal !ers!etive
*evolution in te"nolog$
.usto#er relations"i! #anage#ent (.*M)
Salesfore diversit$
&ea# selling a!!roa"
Managing #ulti5"annels
7t"ial and soial issues
Sales !rofessionalis#
CEO /
President
V. P. Sales /
V. P. Marketing
National Sales Manager
Regional / Zonal / Divisional
Sales Managers
District / Branch / Area Sales Managers
Sales rainee / Sales Person / Sales Re!resentative
Unit II: Sales Organization, Type of sales Organizational Structures, nalysis of Market and
Sales !otential, Sales "uotas, Sales Territories and Sales #udgets$
Unit II: Sales Organization
*on!ets of Sales Organisation
A sales organisation assists t"e sales #anager to arr$ out
needed tasks e;ientl$ and e<etivel$ to a"ieve results
&"e basi one!ts of t"e sales organisation are2
Degree of entralisation
Degree of s!eialisation
=ine or sta< !ositions
Market orientation
7<etive o5ordination
+asi! #$es of Sales Organisations
Sales organisations are generall$ lassi0ed into four basi t$!es2
=ine >rganisation
=ine and sta< organisation
?untional organisation
@ori6ontal organisation
Ae s"all disuss #ain "arateristis, advantages, and
disadvantages of ea" t$!e of sales organisation
&ine Organisation
*hara!teristi!s2 S!eialist sta< #anagers are available for
senior #arketing + sales #anagers. Sta< #anagers' role is to
assist + advise line #anagers. Used in #ediu# and large si6e
organisations
Advantages2 Better #arketing deisions, su!erior sales
!erfor#ane
,isadvantages2 @ig" ost and oordination, slo4er deision
#aking, onCit #a$ arise if sta< #anagers' role is not lear
&ine and Sta- Organisation
."arateristis2 S!eialist sta< #anagers are available for senior
#arketing + sales #anagers. Sta< #anagers' role is to assist +
advise line #anagers. Used in #ediu# and large si6e
organisations
Advantages2 Better #arketing deisions, su!erior sales
!erfor#ane
Disadvantages2 @ig" ost and oordination, slo4er deision
#aking, onCit #a$ arise if sta< #anagers' role is not lear
"ead#Marketing
Marketing Research
Manager
Sales Manager
Pro$otional
Manager
C%sto$er Service
Manager
Area Sales
Manager#&
Area Sales
Manager#&
Area Sales
Manager#&
Sales!eo!le Sales!eo!le Sales!eo!le
"ead#Marketing
Marketing Research
Manager
Sales Manager
Pro$otional
Manager
C%sto$er Service
Manager
Area Sales
Manager#&
Area Sales
Manager#&
Area Sales
Manager#&
Sales!eo!le Sales!eo!le Sales!eo!le
.un!tional Organisation
*hara!teristi!s2 7a" funtional s!eialist "as line res!onsibilit$
over sales!eo!le. Used b$ a large 0r# 4it" #an$ !roduts +
#arket seg#ents, #ini#ising line aut"orit$ to funtional
#anagers
Advantages2 Duali0ed s!eialists guide salesfore, si#!le to
ad#inister
Disadvantage2 onfusion due to #ore #anagers giving orders to
salesfore
/ori0ontal Organisation
*hara!teristi!s2 *e#oves #anage#ent levels E de!art#ental
boundaries. 7:e!t !lanning tea#, all ot"ers are #e#bers of
ross5funtional tea#s. Used b$ 0r#s "aving !artnering
relations"i!s 4it" usto#ers.
Advantages: *edution in su!ervision, unneessar$ tasks, E
ostF 1#!roved e;ien$ and usto#er res!onses.
"ead#Marketing
Marketing
Research
Manager
Pro$otional
Manager
C%sto$er
Service
Manager
Sales Manager
Area Sales Manager '(
Sales!eo!le
Analysis of Maret an! Sales "otential
Sales 1uotas
A"at are Sales DuotasG
Sales )uotas are sales goals or targets set b$ a
o#!an$ for its #arketing + sales units for a ti#e !eriod
Marketing + sales units are regions, bran"es,
territories, sales!eo!le, and inter#ediaries
8enerall$, o#!an$ sales budget is broken do4n to
sales )uotas for various #arketing units
>b3etives of Sales Duotas
&o use )uotas as !erfor#ane standards or
!erfor#ane goals
&o ontrol !erfor#ane
&o #otivate !eo!le b$ linking )uotas to o#!ensation
!lans
&o identif$ strengt"s and 4eaknesses of t"e o#!an$
#$es of 1uotas
>rganisations set #an$ t$!es of sales )uotas2 (1) sales
volu#e, (H) 0nanial, (I) ativit$, (J) o#bination
Sales volu#e )uotas
?or e<etive ontrol, sales volu#e )uota s"ould be set
for t"e s#allest #arketing units, su" as sales!erson,
distrits + bran"es, !rodut ite#s + brands
Sales volu#e )uotas an be stated in (a) ru!ees +
dollars, (b) units, or () !oints
*u!ees + dollars sales volu#e )uotas are a!!ro!riate
4"en sales!eo!le are re)uired to sell #an$ !roduts
Unit sales volu#e )uotas are suitable 4"en
Sales!eo!le are selling a fe4 !roduts
/ries of t"e !rodut Cutuate ra!idl$
/rie of ea" !rodut + servie is "ig"
/oint sales volu#e )uotas are a!!ro!riate 4"en t"e
o#!an$ 4ants sales!eo!le to sell !roduts t"at ontribute
#ore to !ro0ts
.inan!ial 1uotas
?inanial )uotas ontrol (a) gross #argin or net !ro0ts, and
(b) e:!enses of #arketing units
8ross5#argin + Ket5!ro0t )uotas
.alulate gross #argin b$ subtrating Lost of goods
sold' (i.e. ost of #anufaturing) fro# sales volu#e.
Sales #anagers are not res!onsible for ost of
#anufaturing
Ket !ro0t )uotas are generall$ ae!ted b$ sales
#angers as it is alulated b$ subtrating diret selling
e:!enses fro# t"e gross #argin
7:!ense )uotas
1n #an$ o#!anies, e:!ense )uotas are stated as a
!erentage of sales
7:!ense )uotas to be ad#inistered 4it" Ce:ibilit$, to
#ake sales!eo!le ost onsious, allo4ing reasonable
e:!enses
A!tivit$ 1uotas
&"ese are set 4"en sales!eo!le !erfor# bot" selling and
non5selling ativities
>b3etive is to diret sales!eo!le to arr$ out i#!ortant
ativities
?or e<etive i#!le#entation, ativit$ )uotas are o#bined
4it" sales volu#e and 0nanial )uotas
7.8. .alling on "ig" !otential usto#ers, !a$#ent olletion
fro# defaulting usto#ers
*om'ination 1uotas
Used 4"en o#!anies 4ant to ontrol salesfore
!erfor#ane on ke$ selling and non5selling ativities
?ous on a fe4 t$!es of )uotas, to avoid onfusing
sales!eo!le. An e:a#!le2
&$!e of
Duota
Duota Atual /erent
Duota
Aeig"t
(1#!ortane)
/erent
Duota :
Aeig"t
Sales
,olu#e (*s)
9,00,000 J,90,000 M0 I H70
*eeivables
(da$s)
J9 90 NM H 17N
Ke4
.usto#ers
(Kos)
0J 09 1H9 1 1H9
&otal 6 97I
&otal !oint soreO97I+6OM9.9 for a sales!erson
&$!iall$ use L!oints' as a o##on #easure to resolve t"e
!roble# of di<erent #easures used b$ various t$!es of
)uotas
Methods for Setting Sales 1uotas
Several #et"ods are used for establis"ing sales )uotas
1n !ratie, o#!anies use #ore t"an one of t"e
follo4ing #et"ods to inrease t"eir on0dene in sales
)uotas
&otal #arket esti#ates
&erritor$ !otential
/ast sales e:!eriene
7:eutive 3udge#ent
Sales!eo!le's esti#ates
.o#!ensation !lan
Ae s"all brieC$ disuss ea" of t"e above #et"ods
#otal Market Estimates Method
&"e /roess follo4ed b$ establis"ed o#!anies is as under2
1) 7sti#ate ne:t $ear's total #arket de#and, or industr$
sales foreast, using sales foreasting #et"ods
H) Deide t"e o#!an$'s esti#ated #arket s"are for ne:t
$ear
I) .o#!an$'s ne:t $ear sales foreastO (1) : (H)
J) ?ind ea" territor$'s !erentage s"are out of t"e total
o#!an$ sales in t"e !revious $ear
9) &erritor$ sales )uota O (I) : (J)
#erritor$ "otential Method
&"e !roedure follo4ed b$ ne4 o#!anies is as under2
1) 7sti#ate ne:t $ear's industr$ sales foreast or #arket
!otential, using sales foreasting #et"ods
H) 7sti#ate #ulti!le fator inde: (M?1) for ea" territor$, based
on fators t"at inCuene sales of t"e !rodut. &"ese fators
are given 4eig"ts orres!onding to t"e degree of sales
o!!ortunit$.
I) 1ndustr$ sales foreast in a territor$ (or territor$ #arket
!otentialO(1):(H)
J) &erritor$ sales )uota O (I) : esti#ated #arket s"are of t"e
o#!an$ in t"e territor$
"ast Sales E2erien!e Method
&"e !roess onsists of taking !ast one $ear's sales (or an
average of !revious I to 9 $ear's sales), adding an arbitrar$
!erentage (or a !erentage b$ 4"i" t"e #arket is
e:!eted to gro4), and t"us setting ea" territor$ sales
)uota
&"e assu#!tion t"at future sales are related to !ast sales
#a$ not be al4a$s orret
&"is #et"od s"ould not be t"e onl$ #et"od used
/ast sales s"ould be one of t"e fators used for deiding
sales )uotas
E2e!utive 3udgement Method
Senior e:eutives use t"eir 3udge#ent 4"en t"e
!rodut, territories, and t"e o#!an$ are ne4 or ver$
little #arket infor#ation is available
7:eutives !redit o#!an$ sales budgets and also
territor$ sales )uotas
&"is #et"od s"ould generall$ be used along 4it" ot"er
#et"ods
Saleseole4s Estimate Method
So#e 0r#s ask t"eir sales!eo!le to set t"eir o4n
)uotas
Man$ sales!ersons eit"er set ver$ "ig" or too lo4 sales
)uotas
Saleseole4s Estimate Method 5*ontinued6
?or setting !ro!er )uotas, #an$ sales #anagers use H
or I of above #et"ods, disuss 4it" sales!ersons to get
t"eir in!uts, and deide sales )uotas
*omensation "lan Method
So#e organi6ations set )uotas to 0t 4it" t"eir sales
o#!ensation !lan
7.8. A o#!an$ 4ants to !a$ a #ont"l$ salar$ of *s
9000, and a o##ission of IP on #ont"l$ sales above
*s 1,00,000. &"e )uota of *s 1,00,000 is set in su" a
4a$ t"at sales!erson 4ould 0nd it ver$ di;ult to ross
total o#!ensation of *s N000 !er #ont" (9000QI000)
Sales )uotas s"ould not be based onl$ on t"is #et"od,
beause it 4ould %!ut t"e art before t"e "orse(
Insight into Setting 7 Administration of Sales 1uotas
Set realisti )uotas
Understand !roble#s in setting )uotas
7nsure sales!eo!le understand )uotas
B$ allo4ing sales!eo!le to !artii!ate in t"e !roess
B$ ontinuous feedbak to sales!eo!le on t"eir
!erfor#ane o#!ared to )uotas
@ave Ce:ibilit$ in ad#inistering )uotas
."ange )uotas in ases of #a3or "anges in #arket
de#and or o#!an$ strategies
Use #ont"l$ or )uarterl$ )uotas for inentives and annual
)uotas for !erfor#ane evaluation
Selet a fe4 )uotas t"at "ave relations"i!s 4it" #arketing
environ#ent and sales situations
Sales #erritories
A sales territor$ onsists of e:isting and !otential usto#ers,
assigned to a sales!erson
Most o#!anies allot sales!eo!le to geogra!"i territories,
onsisting of urrent E !ros!etive usto#ers
Ma(or Reasons % +enefts of Sales #erritories
1nrease #arket + usto#er overage
.ontrol selling e:!enses and ti#e
7nable better evaluation of salesfore !erfor#ane
1#!rove usto#er relations"i!s
1nrease salesfore e<etiveness
1#!rove sales and !ro0t !erfor#ane
"ro!edure for ,esigning Sales #erritories
Selet a ontrol unitR
?ind loation and !otential of !resent and !ros!etive
usto#ers 4it"in ontrol unitsRR
Deide basi territories b$ using
Build5u! #et"od,
>r
Break5do4n #et"od
RA ontrol unit is a geogra!"ial territorial base
RRUnneessar$ E e:!ensive for onsu#er !roduts
"ro!edure in +uild8u Method
Deide usto#er all fre)uenies
.alulate total usto#er alls in ea" ontrol unit
7sti#ate 4orkload a!ait$ of a sales!erson
Make tentative territories
Develo! 0nal territories
>b3etive is to e)ualise t"e 4orkload of sales!eo!le
"ro!edure in +reakdown Method
7sti#ate o#!an$ sales !otential for total #arket
?oreast sales !otential for ea" ontrol unit
7sti#ate sales volu#e e:!eted fro# ea" sales!erson
Make tentative territories
Develo! 0nal territories
>b3etive is to e)ualise sales !otential of territories
Assigning Saleseole to #erritories
Sales Manager s"ould onsider t4o riteria2
(A) *elative abilit$ of sales!eo!le
Based on ke$ evaluation fators2
(1) /rodut kno4ledge, (H) #arket kno4ledge, (I) !ast sales
!erfor#ane, (J) o##uniation, (9) selling skills
(B) Sales!erson's 7<etiveness in a &erritor$
Deided b$ o#!aring soial, ultural, and !"$sial
"arateristis of t"e sales!erson 4it" t"ose of t"e territor$
>b3etive is to #at" sales!erson to t"e territor$
Management of #erritorial *overage
1t #eans2 @o4 sales!erson s"ould over t"e assigned sales
territor$
1t inludes t"ree tasks for a sales #anager2
/lanning e;ient routes for sales!eo!le
S"eduling sales!eo!le's ti#e
Using ti#e5#anage#ent tools
Routing
*outing is a travel !lan used b$ a sales!erson for #aking
usto#er alls in a territor$
Bene0ts of or *easons for routing2
*edution in travel ti#e and ost
1#!rove#ent in territor$ overage
1#!ortane of routing de!ends on t"e a!!liation2
Kature of t"e !rodut - 1#!ortant for ?M.8
&$!e of 3obs of sales!eo!le - 1#!ortant for driver5u#5
sales!erson 3ob, but reative selling 3ob needs a Ce:ible
route !lan
"ro!edure for Setting u a Routing "lan
1dentif$ urrent and !ros!etive usto#ers on a territor$
#a!
.lassif$ ea" usto#er into "ig", #ediu#, or lo4 sales
!otential
Deide all fre)uen$ for ea" lass of usto#ers
Build route !lan around loations of "ig" !otential usto#ers
.o#!uterised #at"e#atial #odels are develo!ed
.o##onl$ used routing !atterns are2
S!heduling
S"eduling is !lanning a sales!erson's visit ti#e to
usto#ers. 1t deals 4it" ti#e alloation issue
@o4 to alloate sales!erson's ti#eG
Sales #anager o##uniates to sales!erson #a3or
ativities and ti#e alloation for ea" ativit$
Sales!erson reords atual ti#e s!ent on various
ativities for H 4eeks
Sales #anager and sales!erson disuss and deide "o4
to inrease ti#e s!ent on #a3or ativities
.o#!anies s!eif$ all nor#s for urrent usto#ers, based
on sales and !ro0t !otentials, and also for !ros!etive
usto#ers
#ime Management #ools
&o "el! outside sales!eo!leR to #anage t"eir ti#e e;ientl$ and
!rodutivel$, t"e tools available are2
@ig"5te" e)ui!#ent like la!to! o#!uters and ellular
!"ones
1nside sales!eo!le to !rovide lerial su!!ort, te"nial
su!!ort, and for !ros!eting, and )ualif$ing, as t"e$
re#ain 4it"in t"e o#!an$
>utside sales!eo!le an t"en s!end #ore ti#e getting
#ore orders E building relations"i!s 4it" #a3or
usto#ers
R>utside sales!eo!le travel outside t"e organisation
What is a Sales +udget?
1t inludes esti#ates of sales volu#e and selling e:!enses
Sales volu#e budget is derived fro# t"e o#!an$ sales
foreast - generall$ slig"tl$ lo4er t"an t"e o#!an$ sales
foreast, to avoid e:essive risks
Selling e:!enses budget onsists of !ersonal selling
e:!enses budget and sales ad#inistration e:!enses budget
Sales budget gives a detailed break5do4n of esti#ates of
sales revenue and selling e:!enditure
/ur!oses of t"e Sales Budget
/lanning
.oordination
.ontrol
Sales +udget "ro!ess
Man$ 0r#s follo4 a !roess for !re!aration of annual sales
and o#!an$ budgets. 1t generall$ inludes2
*evie4 !ast, urrent, and future situations
.o##uniate infor#ation to all #anagers on budget
!re!aration - guidelines, for#ats, ti#etable
Use build5u! a!!roa", starting 4it" 0rst5line sales
#anagers
8et a!!roval of sales budget fro# to! #anage#ent
/re!are budgets of ot"er de!art#ents
#he Sales "ro!ess
As a !art of selling ativities, if sales!eo!le follo4 t"e ste!s or
!"ases s"o4n belo4, t"eir "anes of suess are far better.

&"e se)uene of above ste!s #a$ "ange to #eet t"e sales

situation in "and.
So#e of t"e above ste!s #a$ not be a!!liable for selling to
t"e trade
Ae no4 disuss a!!liation of above ste!s to industrial
selling
"rose!ting
1t is identif$ing or fnding rose!ts i.e. !ros!etive or
!otential usto#ers.
Methods of rose!ting or sales lead generation are2
(1) referrals fro# e:isting usto#ers, (H) o#!an$ soures
(4ebsite, ads., trades"o4, tele!ros!eting), (I) e:ternal
soures (su!!liers, inter#ediaries, trade assoiations), (J)
sales!ersons' net4orking, (9) industrial diretories, (6) old
anvassing
1ualif$ing
.o#!anies )ualif$ sales leads b$ ontating t"e# b$ #ail or
!"one to 0nd t"eir interests (or needs) and 0nanial
a!ait$.
=eads are ategori6ed as2 /ot, Warm, and *ool
"rearoa!h
Information gathering a'out the rose!t9
Sour!es of information: t"e 1nternet, industrial diretories,
govern#ent !ubliations, inter#ediaries, et.
"re!all lanning
Setting all ob3etives
&entative !lanning of sales strateg$2 4"i" !roduts,
features and bene0ts #a$ #eet t"e usto#er needs
Aroa!h
Make an a!!oint#ent to #eet t"e !ros!et
Make favourable 0rst i#!ression
Selet an a!!roa" te"ni)ue2
1ntrodutor$
.usto#er bene0t
/rodut
Duestion
/raise
&"e a!!roa" takes a fe4 #inutes of a all, but it an
#ake or break a sale
"resentation and ,emonstration
&"ere are four !omonents:
Understanding t"e bu$er's needs
Kno4ing sales !resentation #et"ods + strategies
Develo!ing an e<etive !resentation
Using de#onstration as a tool for selling
Ae 4ill e:a#ine ea" of t"e above !oints
:nderstanding the 'u$er4s needs
?ir#s and onsu#ers bu$ !roduts + servies to satisf$ needs
&o understand bu$er's needs, ask )uestions and listen
1n business situations, !roble# identi0ation and i#!at
)uestions are i#!ortant
E9;9
@ave $ou e:!eriened an$ !roble#s on )ualit$ and deliver$
fro# t"e e:isting su!!liesG
A"at i#!at t"e )ualit$ and deliver$ !roble#s 4ill "ave on
$our osts and usto#er satisfationG
<nowing Sales "resentation Methods%Strategies
?ir#s "ave develo!ed di<erent #et"ods + st$les + strategies of
sales !resentation
Stimulus resonse method % !anned aroa!h9
1t is a #e#orised sales talk or a !re!ared sales
!resentation.
&"e sales !erson talks 4it"out kno4ing t"e !ros!et's
needs. E9;9 Used b$ tele5#arketing !eo!le
.ormula method % formulated aroa!h9
1t is also based on sti#ulus res!onse t"inking t"at all
!ros!ets are si#ilar.
&"e sales!erson uses a standard for#ula - A1DA
(attention, interest, desire, and ation).
1t is used if ti#e is s"ort and !ros!ets are si#ilar.
S"orto#ings are2 !ros!ets' needs are not unovered
and uses sa#e standard for#ula for di<erent !ros!ets.
Need = satisfa!tion method
1nterative sales !resentation
?irst 0nd !ros!et's needs, b$ asking )uestions and
listening
Use ?AB a!!roa"2 ?eatures, Advantages, Bene0ts
7<etive #et"od, as it fouses on usto#ers
*onsultative selling method % "ro'lem8solving
aroa!h
Sales!eo!le use ross5funtional e:!ertise
?ir#s ado!t tea# selling a!!roa"
1t is used b$ soft4are + onsulting 0r#s
,eveloing an E-e!tive "resentation
So#e of t"e guidelines are2
/lan t"e sales all
Ado!t !resentation to t"e situation and !erson
.o##uniate t"e bene0ts of t"e !ur"ase
/resent relevant and li#ited infor#ation at a ti#e
Use t"e !ros!et's language
Make t"e !resentation onvining - give evidene
Use te"nolog$ like #ulti5#edia !resentation
:sing ,emonstration
Sales !resentation an be i#!roved b$ de#onstration
De#onstration is one of t"e i#!ortant selling tools E;s: &est
drive of arsF de#onstration of industrial !roduts in use
+enefts of using de#onstration for selling are2
Bu$ers' ob3etions are leared
1#!roves t"e bu$er's !ur"asing interest
@el!s to 0nd s!ei0 bene0ts of t"e !ros!et
&"e !ros!et an e:!eriene t"e bene0t
Over!oming Sales O'(e!tions % Resistan!es
>b3etions take !lae during !resentations + 4"en t"e order
is asked
&4o t$!es of sales ob3etions2
/s$"ologial + "idden
=ogial (real or !ratial)
Met"ods for "andling and overo#ing ob3etions2 (a) ask
)uestions, (b) turn an ob3etion into a bene0t, () den$
ob3etions tatfull$, (d) t"ird5!art$ erti0ate, (e)
o#!ensation
#rial !lose and *losing the sale
&rial lose "eks t"e attitude or o!inion of t"e !ros!et,
before losing t"e sale (or asking for t"e order)
1f t"e res!onse to trial lose )uestion is favourable, t"en t"e
sales!erson s"ould lose t"e sale
So#e of t"e te!hni>ues used for !losing t"e sale are2 (a)
alternative5"oie, (b) #inor !oints, () assu#!tive, (d)
su##ar$5of5bene0ts, (e) &5aount, (f) s!eial5o<er, (g)
!robabilit$, and (") negotiation
.ollow8u and Servi!e
Keessar$ for usto#er satisfation
Suessful sales!eo!le follo45u! in di<erent 4a$s2 ?or
e:a#!le,
."ek order details
?ollo4 t"roug" deliver$ s"edule
,isit 4"en t"e !rodut is delivered
Build long5ter# relations"i!
Arrange 4arrant$ servie
Negotiation
Sales!eo!le, !artiularl$ in business to business selling,
need negotiating skills
When to negotiate?
(a) A"en t"e bu$er !uts ertain onditions for bu$ing to t"e
seller, (b) A"en agree#ent bet4een t"e bu$er and t"e seller is
needed on several fators, () A"en t"e !rodut is usto#ised,
(d) A"en t"e 0nal !rie is to be deided
/ow to reare for negotiation?
(a) !lanning, (b) building relations"i!, () !ur!ose
St$les of negotiation
(a) 1 4in, $ou lose, (b) Bot" of us 4in (or 4in54in st$le), ()
Sou 4in, 1 lose, and (d) Bot" of us lose