UNIT: 1 SALES MANAGEMENT PROCESS the / |Nature and Importance: Sales management involves planning, implementing, and controlling personal selling activities, including recruiting, selecting, training, equipping, assigning, routing, supervising, paying, and motivating salespeople. Importance of Sales Management: + Revenue Generation: Sales are the primary source of revenue for most businesses. + Customer Relationship Management: Builds and maintains relationships with customers. + Market Penetration: Helps in exploring and entering new markets. + Feedback Loop: Provides valuable insights from customers for product improvement. Objectives of Sales Management: - Achieve Sales Targets + Enhance Customer Satisfaction + Increase Market Share + Develop and Manage Sales Force 03Personal Selling as a Career Definition of Personal Selling: Personal selling is a process of interacting directly with potential buyers to inform them about a product or service and persuade them to make a purchase. Characteristics of a Successful Salesperson: + Excellent Communication Skills + Strong Interpersonal Skills + Persuasiveness + Resilience and Persistence + Product Knowledge + Customer-Oriented Advantages of a Career in Personal Selling: + High Earning Potential through commissions and bonuses + Opportunities for Advancement + Flexibility and Autonomy + Direct Impact on Company’s Success + Diverse Work Environment Challenges in Personal Selling: + High Pressure to Meet Targets + Handling Rejection + Long Working Hours + Extensive Travel + Keeping Up with Product Knowledge 04Steps in Personal Selling Prospecting: + Definition: The process of identifying potential customers (prospects). + Methods: Cold calling, referrals, networking, social media, trade shows. + Objective: To create a list of potential customers who may have an interest in the product or service. Pre-approach and Qualifying: ¢ Pre-approach: © Researching about the prospect. o Understanding the prospect's needs and preferences. o Preparing for the initial contact. ¢ Qualifying: © Determining if the prospect has the need, authority, and financial capacity to buy. © Methods: Asking questions, analyzing data, using qualification frameworks (e.g., BANT - Budget, Authority, Need, Timeline). 05Methods of Approaching a Customer: + Cold Call: Unannounced visit or call to a potential customer. + Warm Call: Contacting a lead who has shown interest. + Referral Approach: Using recommendations from existing customers. + Email Approach: Initial contact via email to set up a meeting. + Social Media Approach: Engaging with prospects through social media platformsPresentation: Planning: Setting clear objectives for the presentation. Tailoring the presentation to the prospect’s needs. Preparing visual aids and demonstrations. Process: 1.Opening: Establish rapport, introduce yourself, and state the purpose. 2.Needs Assessment: Ask questions to understand the prospect's needs. 3.Presentation: Present the product's features and benefits, demonstrating how it meets the prospect’s needs. 4.Handling Objections: Address any concerns or objections the prospect may have. 5.Closing: Ask for the sale or a commitment. 6.Follow-Up: Ensure the prospect has all the information needed and provide any additional support. 07Styles: ° Consultative Selling: Focuses on building relationships and understanding customer needs before offering a solution. © Solution Selling: Emphasizes solving specific problems for the customer. ° Transactional Selling: Focuses on quick sales with less emphasis on relationship building. ° Adaptive Selling: Adjusting the selling style based on the situation and customer responses.Handling Customer Objections: Customer objections are concerns, doubts, or hesitations that customers express during the sales process. Types of Objections: ¢ Price Objections: Concerns about the cost. ¢ Product Objections: Doubts about the product's features or benefits. ¢ Source Objections: Preference for another supplier or brand. ¢ Time Objections: Delays in making a decision or purchase. ¢ Need Objections: Belief that the product is not needed. /, >Step Definition Example Anticipating common objections} Preparing a response for price Preparation and preparing responses in objections with a cost-benefit ladvance. lanalysis. Active Listening Paying close attention to the customer's concerns without linterrupting. Listening to a customer explain why they think a product is too complicated. Acknowledging the customer's "[understand that the Empathy feelings and showing price seems high, and it’s important to| junderstanding. st value for your money." . "Can you tell me more Clarification See he objet about why you feel this produetis 100 Addressing the || Providing clear relevant | Explaining the long-term cost \Objection |customer's concern. savings of the product, Turning the objection into a "The higher price reflects Reframing positive aspect of the product or |] the superior quality and durability of |service. ‘he product.” Using testimonials, case Sharing a case study where a Evidence studies, or data to support your |] customer saved money over time lresponse. lusing the product. Trial Close ‘Testing if the objection has been fully resolved by asking a Iclosing question. "Does this address your concern about the cost?" Follow-Up Reaching out after the initial conversation to address any lingering concerns. Sending an email with additional information and asking if there are any other questions.Negotiations: Aspect Negotiation Bargaining A dialogue between two or more parties aimed at reaching a mutually beneficial agreement. The process of discussing the terms and conditions of a transaction to reach an agreement. Scope Broad, covering a wide range of issues and interests beyond just price. Narrow, typically focused on the price or specific terms of an exchange. Objective To find a mutually acceptable solution that benefits all parties involved. To reach an agreement on a specific point, often related to price. Approach Can be integrative (win-win) or distributive (win-lose), often involving complex strategies. Usually distributive, with a competitive nature focusing on dividing resources. Complexity Involves multiple dimensions and interests, potentially including long- term relationships and ongoing cooperation. Generally simpler, focusing on immediate gains and specific terms. Strategies Used Includes collaborative, competitive, compromising, avoiding, and accommodating strategies. Primarily uses competitive strategies with tactics like lowballing, highballing, and deadlines. Outcome Focus Aimed at creating value and fostering long-term relationships. Aimed at obtai terms for a single transaction. ing the best possible Examples Negotiating a business partnership, mergers, and acquisitions. Haggling over the price of a product ina market. 09Approaches to Negotiation: ¢ Distributive Bargaining: © Definition: A competitive negotiation strategy focused on dividing a fixed amount of resources. o Example: Haggling over the price of a car. ¢ Integrative Bargaining: © Definition: A collaborative negotiation strategy aimed at creating value and mutual benefits. o Example: Negotiating a business partnership where both parties benefit from each other's strengths. ¢ Mixed-Motive Bargaining: © Definition: A combination of both distributive and integrative bargaining, where parties seek to maximize their own gains while also finding mutual benefits. o Example: Negotiating a salary that includes both a competitive base salary (distributive) and performance bonuses (integrative). 09Bargaining Strategies Strategy Definition Example c Aiming to maximize one's own gain, _ | Insisting on the lowest possible ‘ompet esting 5 often at the expense of the other price without regard for the itrategy party. seller's margin. . Worki ther to find Collaborative Seeking win-win outcomes where all | Working together to find a St arties gain from the negotiation. solution that satisfies both rategy Parties gi 8 "| parties’ needs. Compromising __| Finding a middle ground where each | giving the difference in a price 5 party gives up something to reach an | SPEDE strategy aereement gotiation. edi Deliberately avoiding confrontation | Postponing a neg woiding Strategy | 14 not addressing the contlict. later time. is Agreeing to the oth , Accommodating _| Prioritizing the other party's interests | *8°eeins to the other party's . Part terms to preserve a long-term Strategy over one’s own to maintain harmony. relationship. STRATEGY 09Bargaining Tactics Tactic Definition Example Setting a reference point around | Making the first offer to set the Anchoring which negotiations will revolve. baseline for negotiation. BATNA (Best Alternative toa | Knowing your best alternati Having another job offer when Negotiated negotiations fail. negotiating salary. Agreement) One negotiatoris tough and | One manager being very strict on Good Cop/Bad Cop aggressive, while the other is terms, while another shows friendly and cooperative. willingness to compromise. Starting with a very low or high | Offering a very low price initially Lowball/Highball | offer to manipulate the negotiation | in hopes of settling at a lower range. final price. Asking for small additional Asking for free delivery after Nibbling concessions after the main agreeing on the purchase price agreement has been reached. of a product. . Creating a sense of urgency to _| Setting a deadline for the offer to Deadline g of urgency g ot expedite the negotiation process. | encourage a quick decision. Using silence to put psychological Remaining silent after Silence pressure on the other party to _| presenting an offer to compel the speak or make concessions. other party to respond. Cy 09— PREVIOUS YEAR QUESTIONS Chapter-WisePREVIOUS YEAR QUESTIONS 1. Mention the characteristics of a Good Prospect. 2. What do you mean by Qualifying a Prospect? 3. What do you mean by Negotiations? 4. “Sales Management is considered to be an important function”. Explain. 5. Illustrate the effective Negotiation Skills required by sales person 6. Discuss the different types of selling approaches. 7. What is Pre-approach? 8. Enumerate the different negotiation approach. 9. What are the different methods of approaching a customer? 10. Describe the method to identify a prospective customer. 11. Discuss the importance of personal selling as a career. 09ANALYSIS SHEET (if any topics here, or in PYQ's, arent cover in the notes above, then just do it by yourself :) PROSPECT- method, types, etc. APPROACHES***** -Different areas, selling, methods, etc. SALES MANAGEMENT- definition, importance, types. PERSONAL SELLING *** NEGOTIATION *** 09