Unit No.

1 Introduction to Sales and Distribution Management

Sales refers to the exchange of goods/ commodities against money or

service. It is the only revenue generating function in an organization. It
has formed an important part in business throughout history. Even prior
to the introduction of money, people used to exchange goods in order to
fulfill the needs, which is known as the barter system.

Example of Barter System

A has 100 kg of rice and B has 50 kg of wheat. Here, A needs wheat

and B needs rice. They agree to exchange 50 kg of rice and 25 kg of
wheat upon mutual understanding.

Conditions of Sales

 There are two parties involved in the transaction, the seller and
the buyer.
 The seller is the provider of goods or services and the buyer is the
purchaser in exchange of money.
The seller of goods has to transfer the title of ownership of the item to
the buyer upon an agreed price. A person who sells goods or services on
behalf of the seller is known as the salesman/woman.
Distribution is the process of making a product or service available for
use or consumption to the end consumer or business.
Distribution could be of the following two types −

Direct Distribution

It can be defined as expanding or moving from one place to another

without changing direction or stopping. For example, Bata has no
distribution channel; it sells its products directly to the end consumers.

Indirect Distribution
It can be defined as means that are not directly caused by or resulting
from something. For example, LG sells its product from the factory to
the dealers, and it reaches the consumers through dealers.
The following image shows the end-products stored at a warehouse,
ready for shipment to the dealers/consumers.

Sales management in an organization is a business discipline, which

focuses on the practical application of sales techniques and the
management of a firm’s sales operation. It is done in an efficient and
effective manner through planning, staffing, training, leading and
controlling organizational resources. Sales management is done by Sales
Managers and they are responsible for generating sales, profits and
customer satisfaction.

Skills of a Sales Executive

Sales management is an art where the sales executive or the salesperson

helps the organization or individual to achieve its objective or buy a
product with their skills.
The following are some skills that a sales executive needs to possess −

Conceptual Skills
Conceptual skill includes the formulation of ideas. Managers understand
abstract relationships, improve ideas, and solve issues creatively. The
sales executive should be well versed with the concept of the product
he/she is selling.

People Skills

People skills involve the ability to interact effectively with people in a

friendly way, especially in business. The term ‘people skills’ involves
both psychological skills and social skills, but they are less inclusive than
life skills.
Every person has a different mindset, so a sales executive should know
how to present the product depending on the customer’s mindset.

Technical Skills

Technical skills are the abilities captured through learning and practice.
They are often job or task specific. In simple words, a specific skill set or
proficiency is required to perform a specific job or task. As a part of
conceptual skills, a sales executive should also have a good grasp on the
technical skills of the product.

Decision Skills

Decision skills are the most important because to tackle the questions
from consumers, sales executive should always have the knowledge of
competitors’ products and take a wise decision.

Monitoring Performance

Sales executives should monitor the performance of the employees and

report to higher management to improve the performance and fill the loop
holes.
Thus, conceptual skills deal with ideas, technical skills deal with things,
people skills concern individuals, technical skills are concerned with
product-specific skills, and decision skills relate to decision-making.
Importance of Sales Management

Sales management is very crucial for any organization to achieve its

targets. In order to increase customer demand for a particular product, we
need management of sales.
The following points need to be considered for sales management in an
organization −
 The first and foremost importance of sales management is that it
facilitates the sale of a product at a price, which realizes profits and
helps in generating revenue to the company.
 It helps to achieve organizational goals and objectives by focusing
on the aim and planning a strategy regarding achievement of the
goal within a timeframe.
 Sales team monitors the customer preference, government policy,
competitor situation, etc., to make the required changes accordingly
and manage sales.
 By monitoring the customer preference, the salesperson develops a
positive relationship with the customer, which helps to retain the
customer for a long period of time.
 Both the buyers and sellers have the same type of relationship,
which is based on exchange of goods, services and money. This
helps in attaining customer satisfaction.
Sales Management may differ from one organization to the other, but
overall, we can conclude that sales management is very important for an
organization for achieving its short- and long-term goals.

Objective of Sales Management

Every organization has an objective before initializing functions. We

need to understand the goal of managing sales. Here we are discussing
Sales Management in terms of its objectives.

Sales Volume
It is the capacity or the number of items sold or services sold in the
normal operations of a company in a specified period. The foremost
objective of sales management is to increase sales volume to generate
revenue.

Contribution to Profit

The sales of the organization should contribute to profit, as it is the only

revenue generating department. It can be calculated as the percentage or
ratio of gain in total turnover.

Continuing Growth

One of the main objectives of Sales Management is to retain consumers

to continue growth of the organization. There should be regular
expansion of sales and demand for an item in the market with new
advanced formulation.
These are the major objectives a sales executive has to focus on in sales
management

Successful Salespeople: 15 Common Characteristics

A successful salesperson has a special set of characteristics that are used
to make sales. Some people have natural talent; however, these
characteristics can be learned for anyone to be successful. According
to The 15 Characteristics of People Who Succeed at Sales, a successful
salesperson has the following traits:
1. Conscientiousness
The majority of successful salespeople are conscientious. They take a lot
of pride in their job, they are organized and they are efficient. They will
continue to do their best at their job no matter what happens.
2. Initiative
Successful salespeople do not wait to be told what to do, they are go-
getters. They will constantly strive to keep doing what is necessary to sell
a product.
3. Respect
Top salespeople respect the customers. It is extremely important that the
customers are treated with respect at all times, regardless of the situation.
Even if the sale is unsuccessful at the time, treating the customer with
respect may turn them into a future prospect.
4. Good Listening Skills
The best salespeople have great listening skills. They listen to what the
customers’ needs are to help them figure navigate their options and
provide the most effective solution.
5. Persistency
Salespeople must be persistent and confident, yet not overly pushy. If a
customer says no, a persistent salesperson has more chance of making
them change their mind down-the-line.
6. Trainable
Previous sales experience is not as important for a successful salesperson
as their ability to be trained to do well in your company. They must be
able to adapt to your company culture, processes, customers and sales
goals.
7. Positive Attitude
A customer would rather make a purchase with a salesperson who has a
positive attitude then someone who is negative or down. Positivity is
contagious – it is easier to approach a customer when their positive
attitude exudes from them.
8. Passion
Successful salespeople need to be passionate about their job. When they
enjoy their job, they can easily share the company vision with your
customers and potential customers, and this will be conveyed in a genuine
manner.
9. Resourcefulness
It is important for a salesperson to be able to shift gears when a potential
sale is not going the way they want. They need to be resourceful and
change the approach quickly and creatively.
10. Independent
In general, most salespeople work on a commission basis, so they must be
independent in order for them to meet their sales goals. They must be self-
motivators and do whatever it takes to achieve their own success.
11. They Ask Lots Of Questions
High performing salespeople ask a lot of questions when they talk to
potential customers. They not only what to find out what the customer
needs, they want to make the customer comfortable, feel valued and build
a long-term relationship.
12. Time Management Skills
Top salespeople are able to effectively manage their time, so they have
the most opportunities to secure sales. They don’t rush opportunities and
they do not miss deadlines.
13. Personable
Great salespeople get along with everyone and enjoy dealing with people.
That is why many salespeople are involved with many organizations and
local events.
14. Overachievers
Most salespeople are natural overachievers. They go above and beyond
what is expected from them, and they are generally pushing for more of
everything – more clients, more people, more money, more work, etc.
15. Always Prepared
A salesperson must always be prepared for any situation that could occur
when they meet a customer or potential customer. Every customer, every
situation is different and salespeople will need to creatively navigate
every unique situation that arises.

Sales Manager Skills

 Ability to lead and supervise sales teams of any size.

 Good communication skills.
 Identifying and recruiting sales talent.
 Competency in coaching and mentoring sales representatives.
 Effective negotiation skills.
 At least 3-4 years of experience working in the field of sales.
 Analytical Skills to be able to analyze important sales data and use
it to make vital sales decisions.
 Exemplary persuasion skills.
 Ability to spot important sales opportunities.
 Expertise in closing sales deals.

Sales Manager Responsibilities & Role

 Drive the revenue-generation system of the company by consistently

meeting sales targets.
 Build strong sales teams by bringing new salespeople on board. This
includes conducting interviews, assessing candidates, recruiting and
training them.
 Overall training and management of sales teams. Help the sales team
develop the relevant skills and practices for achieving sales success.
Also, conduct regular performance reviews of sales teams.
 Frame and implement your sales strategy, ensuring that all sales
targets are met.
 Stay abreast of trends in the industry.
  Track and maintain sales volumes.
 Build long-term relationships with customers.
 Regularly carry out sales audits. Create and present sales, revenue,
and expenses.
 Conduct regular sales forecasts.
 Coordinate with different departments to explore opportunities and
streamline sales processes.

Personal Selling

The personal selling process is an extremely effective way of promoting

a product in a market and the reason for its effectiveness. It works
amazingly, because what you have to do is just put on formals, impress
your customers. Just by telling them how much potential your product is
hiding within it and persuade them to make a purchase. Even though it is
quite a great promotional tool but just like every other great thing, it also
comes at a great price.

Personal selling is the most expensive means of promotion out there but
one of the most successful ones too. However just like every other tool,
its effectiveness is also dependent upon its step by step implementation.
Otherwise, it is also possible that all of your investment that you made to
make this technique work will go to waste. Therefore, it is better if you
take your time in reading. The rest of the article in which we will be
explaining each and every step of the personal selling process.

Personal Selling Process Steps

Prospecting

It is quite a common observation in our daily life that you can’t benefit a
person from a product if he doesn’t need it. And that’ what, this first step
towards a winning personal selling deal is based on. In this step, the
companies employ different methods to formulate a list with “can-be-a-
prospect” basis. This process of looking for potential leads is also known
as prospecting. This list is generated by various means like examining
data sources e.g. Newspapers, or by gathering information from
organizations, the internet or even the existing customers.

Prospecting is a way of searching for potential customers whether they

are individuals or companies. It is extremely necessary for a brand to stay
in the market that it replaces the old customers that do not return to it.
Since studies show that a typical customer base loses 20% of itself from
time to time. And there can be any reason behind it e.g. it is very likely
that the customer is dead or has transferred somewhere else. Or it might
be because he thought your competitor’s products to be better than yours.
This all explains why a firm should always be trying to grow its client’s
list.

More From Business Study Notes:- Business Market

Qualifying a Prospect

Getting the name just means that they can be your customers, but not
necessarily. That’s why it is important to determine whether that lead
needs your product or not. This can be done by several methods like in
some cases, keen observation is all that it takes towards confirming a lead
to be your client. While on the other hand, it might also need a lot of hard
work in qualifying him as a prospect.

Pre-approach

Once a lead qualifies as a prospect, then it’s time for you to start looking
for important information and gathering necessary details. These details
can be smaller with quite a weak effect on the deal or bigger which can
ruin the whole deal if proper care is not taken. For example, if you qualify
a company as a prospect. Then it’s important to know what kind of
product that company is looking for. And who the main buyer is acting
behind the curtains, etc.

After that, call objectives should be set before you approach the company
and start persuading with all what you have got. This step of personal
selling process manages the timing and strategy of approach. Moreover,
it is also better to decide the best way to approach that prospect. Since it
will save a lot of hard work while still sparing you plenty of time for
focusing on other prospects.

Approach

In this step of personal selling process, the sales person finally gets to
move off his table to the prospect’s office. Since he is going to be the
representative of your brand to that prospect. So that’s why it is extremely
important for him to be aware of proper etiquettes of a gentle talk. He
should also know how and when to greet the buyer and how to hold off
against unexpected behavior from his side. For this purpose, he should use
a positive opening line and that too in a professional way. However more
importantly, how can he give the feel of professionalism, if he’s dressed
badly or is opposite to the buyer’s temperament.

During your approach, make sure to focus the customer’s advantage all
the time instead of your profits. Well! I’m not saying that you should leave
it all. But believe me, once he surrenders himself to become a user of your
product, it will surely pay off.

Sales Presentation and Demonstration

Once the atmosphere relaxes, then it is the best time to deliver your sales
presentation in front of the buyer. A success sales presentation requires a
well-coordinated visual and audible explanation along with a powerful
body language. Even though it is not that easy but whatever you do, just
make sure that it goes as the “AIDA formula”. Actually, which is the
short form of several consecutive steps involving gaining attention. Along
with holding interest, arousing desire and finally, obtaining the action of
the buyer. It works just like you heat the iron and then hammer it while it
is hot. This is just to obtain what you want thus leading your personal
selling process to victory.
Dealing with Objections

Everything, when forced to do something, puts up some kind of resistance

to counter that force. The situation develops when a salesperson forces the
buyer too much. This situation can arise either because of logical
reasoning or psychological resistance. The psychological resistance
develops for the same reason as mentioned above while logical resistance
is normal which can arise. Just because of price or delivery schedule or
anything that relates the product and the brand in it. It is important for the
salesperson to overcome such kinds of objections using an all-time
positive approach. While changing all objections into reasons explaining
to them that they should go for your product.

Closing the Sale

Ending a presentation with a successful business deal is a tougher task

than starting it. That’s why most of the time, salespersons end up failing
without a deal. Because they weren’t able to deliver the best of it.
Moreover it is because they didn’t believe in the fact that if the deal is
made the prospect will surely enjoy the features. And advantages of the
product.

There’s always a right moment to end the sale. So if you get it then go for
it while keeping your body language active all the time. It’s not just all
about your body language but also of your prospect. If you feel that he
was quite satisfied towards your presentation, then what else do you want?
However if you think that the customer is still facing difficulty in making
the decision. Then guide him by drawing his attention to the features of
the product again. Even then, finally taking the talk to color and size.