SALES MODULE 1 NOTES 👍

● Sales management refers to the administration of the personal selling component of a company's
marketing program. It includes the planning, implementation, and control of sales programs, as well as
recruiting, training, motivating, and evaluating members of the sales force.
● Sales management, apart, from the management of personal selling, encompasses marketing activities
like advertising, sales promotion, marketing research, physical distribution, pricing, merchandising and so
on.

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.

FUNCTIONS OF SALES MANAGEMENT- here are four main functions of sales management, each with a
specific purpose to ensure that a company’s sales activities are being executed with the best chance of
success. These four sales management functions are:

● Set Targets- A sales manager must be able to set realistic targets for their team, based on
previous performance and in line with the organisation’s overarching strategy. Target setting
should take into account sales team skills and each person’s track record up until that point.
● Manage The Sales Process- Customers are hardly ever going to be at the same stage of a
company’s sales process at the exact same time. A sales manager must understand the sales
process from start to finish, and be able to manage this process as and when they spot
potential conversion roadblocks.
● Improve Efficiency- This management of the steps of the sales process is another function of
sales management. It involves assessing every interaction between the brand and the potential
customers and coming up with ways to rectify hurdles and capitalise on opportunities, thereby
improving the efficiency of the sales process
● Identify Excellence- Sales management is also a people role. One function is to ensure that
the personnel conducting lower-level sales activities are managed correctly and efficiently. A
sales manager should monitor how well salespeople perform and step in to congratulate and
motivate top performers
Major Key roles of a Sales Manager:

1) Hire, fire, and train sales staff - selection, maintenance and training of the sales staff is key to anY
company's success. Sales managers must hire sales staff to competently manage the sales process
and meet or exceed quota. The Sales Manager must train and motivate the staff to perform. The
Sales Manager must also replace underreporting sales staff. Ongoing training is key to
understanding the company sales process, sales value proposition and product sets.

2) Develop and manage sales territories and quotas, and manage any conflicts that arise as a result
of customer, territory, quota or commission questions

3) Develop and implement sales compensation plans

4) Create, document and train in the company sales process

5) Interact with all departments that contribute to product delivery and support, customer service and
finance.

6) Prepare and manage a sales budget in line with company financial Objectives.

7) Coach sales staff to maximize their professional performance

8) Plan and facilitate regular sales meetings to keep staff and rest of company informed, energized
and motivated.

The role of sales management varies from company to company, but the points above should be
addressed by every senior sales manager.

Personal Selling:

● Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and
techniques for building personal relationships with another party (e.g., those involved in a
purchase decision) that results in both parties obtaining value. In most cases the "value" for the
salesperson is realized through the financial rewards of the sale while the customer’s "value" is
realized from the benefits obtained by consuming the product.

● The intention is to deliver the right product to the right customers. Depending upon the
complexity of product, personal selling plays an important role. Industries manufacturing
 technical products like laptops, computers, digital phone, gadgets, etc., likely depend on
personal selling as compared to the other manufactures.

● While millions of people can easily be seen as holding sales jobs, the promotional techniques
used in selling are also part of the day-to-day activities of many who are usually not directly
associated with selling. For instance, top corporate executives whose job title is CEO or COO
are continually selling their company to major customers, stock investors, government officials
and many other stakeholders.

PERSONAL SELLING PROCESS- here are four main functions of sales management, each with a specific
purpose to ensure that a company’s sales activities are being executed with the best chance of success.
These four sales management functions are:

● Prospecting- Prospecting involves finding and qualifying potential buyers or clients. At this
stage, you determine whether your prospective customer has a particular need or want that
your business can fulfill.For instance, if you’re selling insurance to individuals over age 65, then
you probably won't target someone in their 30s.

● Preparation or pre-approach- It's important to have all your information ready, such as
product descriptions, prices, payment options, competitor rates and dates for specific sales.Be
ready to answer any questions your prospects could have with supporting data.

● Approach- his step involves getting the potential buyer or client to interact with you by
personalizing your meeting or otherwise establishing rapport.Example: For instance, if you sell
skincare products or services, you might ask:
● Do you currently have a daily skincare routine?
● Is there anything about your daily skin regimen that you’re unhappy with?
● What are your top skin complaints

● Presentation- Your presentation might involve a tour, product demonstration, video

presentation or other visual or hands-on experience.For instance, if you’re trying to sell a house
to a growing family, you likely would show them a larger home with a yard in a family-friendly
neighborhood rather than a second-story condo.

● Handling objections- After you complete your presentation, your prospect might have some
questions, concerns or objections.. You might want to then reframe your sales pitch to address
those concerns.

● Closing- Once you've convinced the prospect that your product or service can meet their
needs, it's time to close the sale.Closing the sale might involve drafting a proposal, negotiating
terms or pricing, signing contracts, completing a monetary transaction or even overcoming
additional concerns or objections.
 ● Follow-up- It’s a continuation of the relationship between the seller and the buyer that ensures
customer satisfaction, retains customer loyalty and helps prospect for new customers. The idea
is not to continue selling at this stage, but instead to nurture the existing relationship.The
follow-up might involve sending a thank-you note or calling the customer to ask about their
experience with their new product or service.

Technology’s Impact on Sales- Technology is transforming businesses and disrupting entire industries. One
of those industries that has been heavily affected is sales. From prospecting to closing, today’s mobile, social,
big data, and cloud technologies are revamping the sales process in ways that would have been unthinkable
only a few decades ago. As a result, many sales organizations are embracing new technologies to drive
productivity, profitability, and competitive advantage to revamp the sales process .

● Big Data- big data analytics tools help organizations focus their sales efforts on the most
promising and profitable activities and customers.Traditionally, prospecting (finding and
qualifying potential customers with specific needs and wants) has been a time and
labor-intensive process.Using big data analytics tools, sales organizations can now manage
prospecting, a critical step in the sales process.

● Social Platforms- Social media platforms provide opportunities for companies to “shake
hands” with customers, engaging them in conversations about products and services for
valuable insights that could lead to a sale. Unlike conventional sales, social media makes it
possible to shake millions of hands from across the entire world all at once. Customer feedback
on social media sites also helps businesses refine and shape their messages and sales tactics
to ensure greater success in the future. Social platforms offer a unique advantage for sales
teams, and studies suggest that 78% of sales professionals who use social media consistently
outsell their peers who don’t.
● Sales Force Automation Systems- Statistics show that businesses without automation spend
71 percent of their time and resources planning and defining business processes.Sales Force
Automation (SFA) technology solutions automate many tasks, freeing up sales employees to
focus on activities that generate more sales and revenue.Armed with information provided in
real-time, managers can take action and make adjustments quickly to optimize efforts.

● Cloud-based CRM Technology- Customer Relationship Management systems are powerful

tools designed to give organizations a holistic view of the customer relationship by integrating
marketing, sales, and customer support.Thanks to the cloud, organizations can take advantage
of software packages that integrate SFA and CRM into a single, cost-effective solution.

● Mobile technology- Mobile technology gives salespeople instant access to product specs and
other tools that increase the effectiveness of their sales pitches, resulting in higher closing
rates and a better customer experience. And, when it’s contract time, mobile access makes all
documents readily available for the closing process.