Unit- I

Introduction to Sales Management

 Which one evolved first ?

❑ Marketing
❑ Sales
 Marketing Concepts

Production Concept
Product Concept

Selling Concept

Marketing Concept

Societal Concept
Green Marketing
Importance of Sales Management

Achievement of Enterprise Goals

Backbone of Marketing

Sound Business Planning

Life Blood
Win Over the Competition
Integration of Business and Social goals
 Evolution of Selling

Partnership
Strategies
Business
Management
Consultative
Selling

Negotiation

Persuasion
No. of Countries in World: 195

Of the 195 countries in the world:

54 countries are in Africa
48 in Asia
44 in Europe
33 in Latin America and the Caribbean
14 in Oceania
2 in Northern America
https://www.worldometers.info
/

Population = Consumer
Income = Purchasing Power

Demand = Distribution Network

Nature and Role of Sales Management

The determination of sales force objective and goals

Sales force organization, size, territory, and quota

finalization

Sales forecasting and budgeting

Sales force selection, recruitment, and training

Motivating and leading the sales force

Designing compensation plan and control systems

Designing career growth plans and building

relationship strategies with key customers
Types of Personal Selling

Industrial Selling

Retail Selling

Services Selling

12
What strategy will you prefer to
make Sales
Strategies of Sales Management

Relationship Strategies

The Double-Win Strategy

Instant Services

Hard Sell Versus Soft Sell Strategy

Integrated Sales Strategies

Client-centered Selling Strategy

Relationship Strategies
 Prepare strategically for a long-term, high quality
P relationship that solves customer’s problem.

Ask questions to get on the customer’s agenda.

A
Restates customer needs with confirmation
R questions.
Teams with support people to provide the customer
T with solutions.
Negotiates double-win solutions with joint decision
N making.
Exceeds customer expectations whenever possible.
E
Re-examines the ongoing quality of the relationship
R frequency.
 The Double-Win Strategy

Double-win strategy refers to the use of win-win

approach where salesperson and customers are
personally and professionally satisfied with the
outcome of sale transaction
 Instant Services

Providing good customer service at the point of sale

starts with thanking your customer for their business.
Use the point of sale interaction to make sure your
customer feels valued. Establish a rapport and tell
them more about your business.
 Hard Sell Versus Soft Sell Strategy

A hard sell is an attempt to get the buyer to take

action now. In contrast, a soft sell is a gradual
approach. When a sales professional embraces soft
selling they are taking their time. They are learning
about the customer, their needs, concerns, and
perceptions of value. Hard selling is rarely concerned
with these details. As a result, hard selling is often
more transactional in nature and characterized by
forceful action aimed to get the buyer to make a
purchase.
Integrated Sales Strategies
Integrated Sales Strategies
 Client-centered Selling Strategy

Client-centric, also known as customer-centric, is a

strategy and a culture of doing business that focuses
on creating the best experience for the customer, and
by doing so builds brand loyalty. Client-centric
businesses ensure that the customer is at the center of
a business's philosophy, operations, or ideas.
Personal Selling
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.
Top Management holds them responsible for
1. Obtaining Sales Volume
2. Providing Profit Contribution
3. Continuing Business Growth

Customers (most often, wholesalers, retailers or

industrial user) expect them to supply easily
resalable products and services backed up by
supporting activities (help in doing training dealer
salesforce, local advertising, credit) and assurance
that products and services are wise investments in
competitive
market place.
 Society looks to them to assure delivery of goods &
services
· that final buyers want at price
· of increasing importance
· to market products whose potential for damaging
the environment is minimal.
 Sales Management as defined by
American Marketing Association — is Planning, direction and
control of Personal selling including recruiting, selecting,
equipping assigning, routing, Supervising, paying and
motivating as these task apply to personal Salesforce.
Personal selling involves oral conversations,
either by telephone or face-to-face, between
salespersons and prospective customers.
 Contribution of Personal Selling

· Salespeople generate revenue

· Salespeople provide market research and customer
feedback
· Salespeople provide solutions to problems
· Salespeople provide expertise and serve as information
resources
· Salespeople serve as advocates for the customer when
dealing with the selling organization
Objectives of Sales Manager

•Developing Awareness while

building product
•Creating Interest

•Providing Information

•Encouraging Demand

•Reinforcing the Brand

 The Four Sales Channels
Over-the-counter selling: personal selling conducted in retail
and some wholesale locations in which customers come to
the seller’ place of business.

Field selling: sales presentations made at prospective

customers’ homes or businesses on a face-to-face basis.
Telemarketing: promotional presentation involving the
use of the telephone on an outbound basis by salespeople
or on an inbound basis by customers who initiate calls to
obtain information and place orders.

Inside selling: performing the functions of field selling

but avoiding travel-related expenses by relying on phone,
mail, and electronic commerce to provide sales and product
service for customers on a continuing basis
 Diversity of Personal-selling Situations
1. Inside Order Taker –”waits on” customers; for
example, the sales clerk behind the neckwear counter in a
men’s store. These jobs are known as technical support
staff, sales assistants, telemarketers, and telesales
professionals.
2. Delivery Salesperson – mainly engages in delivering the
product; for example, persons delivering milk, bread, or
fuel oil.
3. Route or Merchandising Salesperson – operates as an
order taker but works in the field – the soap or spice
salesperson calling on retailers is typical.
 Diversity of Personal-selling Situations
4. Missionary – aims only to build goodwill or to educate
the actual or potential user, and is not expected to take
an
order; for example, the distiller’s “missionary” and the
pharmaceutical company’s “detail” person.
5. Technical Salesperson – emphasizes technical
knowledge;for example the engineering salesperson, who
is primarily a consultant to “client” companies.

6. Creative Salesperson of Tangibles – for example,

salespersons selling vacuum cleaners, automobiles, siding,
and encyclopedia.
 Diversity of Personal-selling Situations

7. Creative Salesperson of Intangibles – for example.

Salespersons selling insurance, advertising services, and
educational programs.
 THEORIES OF PERSONAL SELLING

AIDAS theory of personal selling

“Right Set Of Circumstances”

“Buying Formula” Theory Of Selling

“Behavioral Equation” Theory

 AIDAS theory
Attention: The goal is to put the prospect into a receptive
state of mind.
Interest: The second goal is to intensify the prospect’s
attention so that it evolves into strong interest.
Desire: The third goal is to kindle the prospect’s desire to
ready-to-buy point.
Actions: Experienced sales personnel rarely try for a
close until they are positive that the prospect is fully
convinced of the merits of the proposition.
Satisfaction: After the customer has given the order, the
salesperson should reassure the customer that the
decision was correct.
 Right Set Of Circumstances

This theory, sometimes called the “situation-response”

theory, had its psychological origin and holds that the
particular circumstances prevailing in a given selling
situation cause the prospect to respond in a
predictable
way.
 Buying Formula

In contrast to the two previous theories, the third

emphasizes the buyer’s side of the buyer-seller dyad.
The buyer’s needs or problems receive major attention,
and the salesperson’s role is to help the buyer find
solutions. This theory purports to answer the question:
What thinking process goes on in the prospect’s mind
that causes the decision to buy or not to buy?

Need Product Purchase Satisfaction

 Behavioral Equation

J.A. Howard explains buying behavior in term of the

purchasing decision process, viewed as phase of the
learning process. Four essential elements of the
learning process included in the stimulus-response
model are drive, cue, response, and reinforcement,

Drive Cue Response Reinforcement

 Sales Management Function

Planning

Controlling Staffing

Leading Training
Planning for Recruitment & Selection Process
 Planning for Recruitment & Selection
Process

Having decided the appropriate number of sales

personnel, implementation requires recruiting that
number initially and replacing those that are lost.

Implementing personal-selling strategy, then, is a

never-ending process-the nature of the selling job tends
to change rather slowly, but having and keeping the
right number of sales personnel is a continual concern.
 Planning for Recruitment & Selection
Process

Recruitment - the process of generating a pool of

candidates from which to select the appropriate person
to fill a job vacancy.
Job Analysis: The process of analyzing the content to
produce an account of the tasks and competencies that
comprise a particular job via interviewing job holders
and supervisors as well as by observation
Job Analysis
Task I Job context I Knowledge I Skill I Ability
 Planning for Recruitment & Selection
Process

Job Description – The document that outlines the

purpose of the job, the tasks involved, the duties, and
responsibilities, the performance objectives and the
reporting relationships

Person Specification – A document that describes the

skills, knowledge, and qualities needed to perform a
particular job; translates the job requirements into
tangible features that applicants need to demonstrate.
 Recruitment & Selection Process

Step 1 is to evaluate the sources from which sales

personnel with good potentials are obtainable.

Step 2 is to tap the identified recruiting sources -and

build a supply of prospective sales personnel.

Step 3 is to select those who have the highest

probability of success.
Step-1-Sources of Sales Force Recruitment

Internal Sources External Sources

• Company Sales Personnel • Direct Unsolicited
• Company Executives Applications
• Internal Transfers • Employment Agencies
• Sales People Making Calls on
the Company
• Employees of Customers
• Sales Executives’ Clubs
• Sales Forces of
Noncompeting Companies
• Sales Forces of Competing
Companies
• Educational Institutions
 Step-2-Recruiting Effort
The sales personnel recruiting effort differs from one
company to another, mainly as to the sources of
recruits and recruiting methods, and stem from
management’s size up of the appropriate combination
of selling styles.

Invitations Advertisements Follow-up Calls

 Step-3-Evaluating & Hiring

Screening Resumes and applications

Initial interview

Intensive interviews

Testing (Assessment Centers, Background

Investigation, Physical Exam)

Selection Decision /Job Offer

Thank You