SALES MANAGEMENT HAND-OUT

SALES MANAGEMENT is a business discipline

which is focused on the practical application of
sales techniques and the management of a
firms sales operations. It is an important
business function as net sales through the sale
of products and services and resulting a profit
drive to most commercial businesses.

NATURE & IMPORTANCE OF SALES MANAGEMENT

1. Its integration with MARKETING

MANAGEMENT
2. Relationship Selling
3. Varying sales responsibilities

As sales management is an integral part of marketing management, sales planning should be

integrated with marketing planning. A companys marketing team typically consist of two basic
groups:

A. Field Selling/ Personal Selling

B. Headquarter Marketing Team
SALESMANSHIP-is a practice of investigating and satisfying customers need through a process that is
efficient, fair, mutually beneficial and aimed at long term productive relationship. It aims to
persuade potential buyers to purchase a product or service, and it involves oral and
face-to-face communication with customers.

Is a valuable way of understanding the needs and behaviors of potential

customers.
It provides customers with useful information about a particular product or
service. Through salesmanship, manufacturers are able to create products that
meet the demands of the target market.

A SALE is the exchange of a commodity or money as the price of a good or a service.

SALES is the activity related to selling or the amount of goods or services sold in a given time period.
The SELLER or the provider of the goods/services completes a sale in response to an
acquisition, appropriation, requisition or a direct interaction with the buyer at the point
of sale.

The POINT OF SALE (POS) is the time and place where a retail transaction is completed.

5 ELEMENTS OF SELLING

1. PRODUCT PLANNING AND DEVELOPMENT

Product planning and development is an important function in selling process. The process of identifying what to
produce for selling more quantity and earning more profit is called product planning. The product planning include the
activities such as decision on quality, design and quantity of product, necessary technology, knowledge and skill,
ascertainment on the stage of life cycle of product

2. CONTACTUAL FUNCTION

The another sub-function in selling process is to establish contact with customer. To identify potential customers, to
find their living place and to keep contact with them is the task of all sellers from producers to retailers. Contacting
customers is the first task for selling products. A seller should keep contact with innumerable customers like final
consumers, industrial users, institutional buyers, retailers etc.

3. DEMAND CREATION

Creation of demand for any product is the other sub-function of selling. Without demand in market, it becomes
difficult to sell any product. Several methods are used to create demand or stimulate feeling in customers to buy any
new product. Promotion is the strongest among such methods. Every firm remains active to increase sales quantity
of its product at certain price through promotional method.

Personal selling and advertisement are widely used methods for creation of demand for goods. Along with this
display, decoration, exhibition, trade fair, sample distribution, coupon, gift program also help to create demand. After
contacting prospective customers, demand should be created for changing them to real customers.

4. NEGOTIATION

After creating demand for goods, buyer and seller enter into negotiation for buying and selling. They reach an
arrangement. This is also a sub-function of selling process. Buyer and seller make agreement on terms and condition
of sale, quantity and quality of the goods, price, method of delivery, means of transport, time for payment etc.

5. CONTRACTUAL FUNCTION

Contractual function is the last stage of selling process. Selling signs a contract to transfer ownership of goods to the
buyer as decided by negotiation. Then goods are transferred to buyer's hand and money to seller's hand according to
the contract. Then selling function ends after seller hands over goods to buyer by taking price of the goods.
 MARKETING - PRODUCT LIFE CYCLES

The PRODUCT LIFE CYCLE is an important

concept in marketing. It describes the
stages a product goes through from when it
was first thought of until it finally is removed
from the market. Not all products reach this
final stage. Some continue to grow and
others rise and fall.

THE MAIN STAGES OF THE PRODUCT LIFE CYCLE ARE:

Introduction researching, developing and then launching the product

Growth when sales are increasing at their fastest rate

Maturity sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in
market or saturation.

Decline final stage of the cycle, when sales begin to fall.This can be illustrated by looking at the sales
during the time period of the product. A branded good can enjoy continuous growth, such as Microsoft,
because the product is being constantly improved and advertised, and maintains a strong brand loyalty.
EXTENSION STRATEGIES extend the life of the product before it goes into decline. Again, businesses use
marketing techniques to improve sales. Examples of the techniques are:

Advertising try to gain a new audience or remind the current audience

Price reduction more attractive to customers
Adding value add new features to the current product, e.g. video messaging on mobile phones
Explore new markets try selling abroad
New packaging brightening up old packaging, or subtle changes such as putting crisps in foil packets .

SALES MANAGERS JOB DESCRIPTION

Responsible for obtaining profitable results through the sales team by developing the team
through motivation, counseling, skills development and product knowledge development.
Manage the sales administration function, operational performance reporting, streamlining
processes and systems wherever possible, and advising senior management on maximizing
business relationships and creating an environment where customer service can flourish.
Responsible for managing the sales team, developing a business plan covering sales, revenue,
and expense controls, meeting agreed targets, and promoting the organizations presence
Assist in the development of the annual marketing plan, specifically advising on: realistic
forecasts for each product and territory (based on historical data, market trends, competitive
activity, promotional strategy and sales effort), realistic costs of operating the sales force; and
sales promotion program plans.
Responsible for the planning, recruitment, direction, organization and control of sales managers
and sales representatives to accomplish specific objectives.
Responsible for monitoring the performance of the sales team by establishing a system of
reports and communications involving sales reports, cyclical sales meetings, sales newsletters
and electronic bulletins.
Plan and implement a specific appraisal system that describes the responsibilities and
performance standards for each member of the sales team, set individual territory sales and
commission targets and administer the commission plan

A number of specific SELLING STRATEGIES come under the umbrella of sales or selling, including the
following:

COLD CALLING is the sales process of approaching prospective customers or clientstypically via
telephone, by email or through making a connection on a social networkwho were not expecting such
an interaction. The word "cold" is used because the person receiving the call is not expecting a call or
has not specifically asked to be contacted by a sales person. A cold call is usually the start of a sales
process generally known as telemarketing.
CONSULTATIVE SELLING is a technique in which the salesperson acts as an expert consultant for his
prospect, asking questions to determine the prospect's needs and then using that information to select
the best product or service for those needs.

DIRECT SELLING is the marketing and selling of products

directly to consumers away from a fixed retail location.
PEDDLING is the oldest form of direct selling.

GUARANTEED SALE is arrangement under which a manufacturer or supplier takes back the
goods that remain unsold after a specified period.
CONSIGNMENT SALE is a trading arrangement in which a seller sends
goods to a buyer or reseller who pays the seller only as and when the
goods are sold. The seller remains the owner (title holder) of the goods
until they are paid for in full and, after a certain period, takes back the
unsold goods

NEEDS-BASED SELLING is both a skill and an attitude, and is something that needs to be practiced by
everyone at your bank or credit union who interacts with customers. By design, it will improve and
deepen customer relationships and loyalty, resulting in increased profitability and customer retention. -

PERSUASIVE SELLING --Developing a great mindset for a salesperson is very challenging yet significant to
succeed. Obviously, the attitude of an individual plays important role in developing mindset.

It is because 90% of success is based on the mental state of an individual. On the other hand, knowledge
and skills are also necessary in achieving success as well as the salesperson should have good thinking
about selling. Good mindset is a great help in making sales and closing a deal.

A salesperson who has great mindset can easily find prospect. Likewise, convincing a prospect to buy the
product of service is never an issue as long as the salesperson guarantees that what he or she is saying is
valuable and true.

Thus, many sales people usually place advertisements such as recommended by 8 out of 10 experts.
You can also do this with your product by going to experts who have good opinion of the product you
are offering.

HARD SELLING -Advertising and sales practices denoted by

aggressive or forceful language. A hard sell is designed to get a
consumer to purchase a good or service in the short-term,
rather than evaluate his or her options and potentially decide
to wait on the purchase. It is considered a high-pressure
technique.
 PRICE BASED SELLING is a specific selling technique in which a
business exclusively reduces their price in attempt to close the
sales cycle. Price-based selling clearly exists in businesses such
as: commodity sales, auto sales, hospitality, and even some
retail stores. However, it is only recommended that commodity
items like petroleum be sold exclusively by price.

RELATIONSHIP SELLING- The concept of partnership or the

bonding of the buyer to the seller by superior post transactional
services has been well received by members of today's quality-
driven market place. However, relationship selling is a multi-
stage process that emphasizes personalization and empathy as
key ingredients in identifying prospects, developing them as
customers, and keeping them satisfied.
TARGET ACCOUNT SELLING -builds upon established theories of Industrial Buying Behavior and National
Account Marketing to establish some rationale for firms to determine whether targeting their major
customers with a separate sales force is a strategy that can work for them. It attempts to describe why
major account selling works, where it has been successful, and provides some ideas for firms to consider
when determining the organization of their sales force.

SOLUTION SELLING is a process to take the guesswork out of difficult-to-sell, intangible products and
services. It enables sellers to make the way they sell as big an advantage as their product or service.
After reading this book, salespeople and sales managers will be able to use a well-tested model that
guides them through the process of selling. No more smoke and mirrors, blind luck, or high-pressure
selling. Just a step-by-step system that ensures a higher rate of success for salespeople and a higher
probability that the buyer's expectations will be met.

AUCTIONS a higher form of selling that requires possible buyers

(bidders) to bid for a specific item. The one who can give the highest
price before a specific time of deadline will get the item. E.g. precious
jewelry, artifacts, important items with high historical value .