Sales & Retail Management, VTU,Module 1&2


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  • Excellent Presentation, Highly Informative-Thank You Sir
    B.G Venkatesh Prasad B.E., MBA., M.Phil
    Faculty- MBA-VTU Dept
    Dayananda Sagar Academy of Technolgy & Management
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Sales & Retail Management, VTU,Module 1&2

  1. 1. SALEs & RETAIL MANAGEMENT<br />By Prof. Raghavendran.V<br />
  2. 2. SADMAN<br />Sales management is defined as “ the effective planning, directing and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personal sales force.<br />By Prof. Raghavendran.V<br />
  3. 3. Managing the sales force<br />Sales force is mainly responsible for the sale of the products of a company and add to profit to the business operations and fulfill social obligations.<br />Sales force mgmt means:<br /><ul><li>The right organization & aggression against the product lines and geographies.
  4. 4. The right strength and qualification.
  5. 5. The right compensation and incentive system.</li></ul>By Prof. Raghavendran.V<br />
  6. 6. Steps in designing and managing a sales force<br /><ul><li>Objective training
  7. 7. Training the sale policies.
  8. 8. Designing sales force, </li></ul> Structure & Size<br /><ul><li>Deciding sales force</li></ul> Compensation<br /><ul><li>Recruitment & selecting sale force
  9. 9. Guiding and motivating sale force
  10. 10. Performance rating of the sales force.</li></ul>By Prof. Raghavendran.V<br />
  11. 11. sales manager duties and responsibilities <br />SM is the most important person in a sale organization. All activities are based on his functions and responsibilities and they are as follows.<br />Organizing sales research, product research.<br />Getting the best output from the sales force under him.<br />By Prof. Raghavendran.V<br />
  12. 12. Setting & controlling the targets, territories, sales experiences, distribution expenses. <br />Advising the company on various media, sales promotions and schemes.<br />Monitoring the company’s sales policies.<br />By Prof. Raghavendran.V<br />
  13. 13. Mr. Alan ReidTerritory sales manager job responsibility<br />By Prof. Raghavendran.V<br />
  14. 14. Territory sales manager job responsibility<br />By Prof. Raghavendran.V<br />
  15. 15. Territory sales manager job responsibility<br />By Prof. Raghavendran.V<br />
  16. 16. Problems in sales force management<br /><ul><li>Designing and managing sales force
  17. 17. Sale force authority
  18. 18. Target setting
  19. 19. Sales forecasting.</li></ul>By Prof. Raghavendran.V<br />
  20. 20. Formulation of sales strategy<br />The following are key decision areas in sales management which are particularly relevant to strategy formulation.<br />Determining the size of the sales force<br />Decision regarding type and quality of the sales force required<br />Designing the sales organization<br />Territory designing<br />Recruitment and training procedures<br />Task allocation<br />By Prof. Raghavendran.V<br />
  21. 21. Compensation of sales force<br />Performance appraisal and control system<br />Feedback mechanism to be adopted<br />Managing channel relationships<br />Coordination with marketing departments <br />By Prof. Raghavendran.V<br />
  22. 22. Different sales strategies<br />Relationship strategy<br />The double-win strategy<br />Instant service<br />Hard sell Vs Soft Sell Strategy<br />Integrated Sale Strategy<br />Client centered selling strategy<br />By Prof. Raghavendran.V<br />
  23. 23. Methods of selling<br />Telemarketing: selling concepts on the phone<br />Sales on the internet<br />Mail order sales<br />Sales through large scale fixed shop retailers<br />Sales through wholesalers and retailers<br />Direct selling<br />By Prof. Raghavendran.V<br />
  24. 24. Assignment time<br />Study concern from the following area<br />Two wheeler<br />Three wheeler<br />Four wheeler<br />Furniture<br />Petroleum products<br />Mobile<br />Using internet tools & resources, make a 15 companies involved in selling FMCG through internet and bring out strategies used by them.<br />By Prof. Raghavendran.V<br />
  25. 25. Presentation<br />Make a presentation by incorporating ingredients of sales concepts for a sick product of any company.<br /> Presenting day on 26th Aug’ <br />By Prof. Raghavendran.V<br />
  26. 26. Personal selling<br />By Prof. Raghavendran.V<br />By Prof. Raghavendran.V<br />
  27. 27. Personal selling<br />Personal selling can be defined as follows:<br /> Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale"<br />By Prof. Raghavendran.V<br />
  28. 28. Personal selling<br />Important aspects of personal selling are:<br /><ul><li>It enhances customer’s confidence in the seller
  29. 29. It promotes long term business relations through personal intimacy
  30. 30. It provides a human touch to business transactions.
  31. 31. It helps facilitate the seller to understand each customer’s needs and preferences more clearly
  32. 32. It helps satisfy a customer by modifying the product as per customer’s choice and preference.</li></ul>By Prof. Raghavendran.V<br />
  33. 33. Personal selling<br /><ul><li>Personal selling followed by personal service helps build long term relations between the business and the customer
  34. 34. It helps keep up with the competition in the market, based on product customization as per customer’s preferences.
  35. 35. It is a powerful and effective tool for convincing the customer about the product
  36. 36. Through PS the time lag between introducing a product through the media and actually selling it is reduced.</li></ul>By Prof. Raghavendran.V<br />
  37. 37. Personal selling<br /><ul><li>It provides prospective customers with a better understanding of the product and an interactive opportunity to liaise with the sales personnel.</li></ul>Changing face of personal selling:<br /><ul><li>Value sharing
  38. 38. Relation building
  39. 39. Role playing
  40. 40. Changing approach</li></ul>By Prof. Raghavendran.V<br />
  41. 41. Efficacy of ps:<br /><ul><li>PS with Respect to product strategy
  42. 42. PS and pricing decisions
  43. 43. PS and distribution
  44. 44. PS and product promotion</li></ul>By Prof. Raghavendran.V<br />
  45. 45. Steps in Ps:<br />By Prof. Raghavendran.V<br />
  46. 46. Prospecting<br />It is process of identifying buyers of the product.<br />Different ways to identify prospects<br /><ul><li>Acquaintance references
  47. 47. Cold calling
  48. 48. Centre of influence method
  49. 49. Personal observation method
  50. 50. Direct mail/ telephone method
  51. 51. Company’s records
  52. 52. Newspapers
  53. 53. Retailers
  54. 54. Other methods</li></ul>By Prof. Raghavendran.V<br />
  55. 55. Pre-approach, significance<br />Salesman concentrates only on the prospects and not suspects, thus saving time and energy.<br />Helps a salesman to gain all possible knowledge about the prospects before approaching. (loose talk can be avoided).<br />Sales presentation effectively, efficiently and confidently.<br />Focused, meaningful and to the point.<br />By Prof. Raghavendran.V<br />
  56. 56. Approaching<br />Salesman has an opportunity to understand and interact with the prospect in better way. Hence, the salesman should put forward his best efforts to make use of the opportunity.<br />Stages of approaches:<br /><ul><li>Approach adopted
  57. 57. Successful adopted
  58. 58. Method of approach</li></ul>By Prof. Raghavendran.V<br />
  59. 59. Approach adopted<br />Salesman are two types and they are:<br /><ul><li>Travelling salesman
  60. 60. Counter salesman</li></ul>The approach adopted by the each of these salesmen is obviously different.<br />Approach adopted by travelling salesman:<br />The different way to gain access and thus interview the prospects.<br />By Prof. Raghavendran.V<br />
  61. 61. Approach adopted<br /><ul><li>Direct approach
  62. 62. Seeking an appointment with a prospect could by sending an advance mailer explaining his product
  63. 63. Seeking an appointment through reference given by friend, relative or business prospective.
  64. 64. Give gifts and secure an appointment.
  65. 65. Sales letter</li></ul>By Prof. Raghavendran.V<br />
  66. 66. Successful approach<br />It is said approach will be successful if it attains below said objectives.<br />Successful approach enhances the sale and it is thus important for the running of a business..<br />Failed approach will give an opportunity to the competitor.<br />Enlightening the prospect by providing him ample information about the product and services<br />By Prof. Raghavendran.V<br />
  67. 67. Successful approach<br />Guidelines for successful approach are<br /><ul><li>Prior appointment
  68. 68. Timing
  69. 69. Command
  70. 70. Relaxed atmosphere
  71. 71. Open mindedness
  72. 72. Courtesies
  73. 73. Effective presentation
  74. 74. Follow up</li></ul>By Prof. Raghavendran.V<br />
  75. 75. Method of approach<br />Cashing in on Brand Name or the company’s reputation<br />Customer Benefit approach<br />Innovative product opens the door to the salesman<br />The premium approach<br />The shock approach<br />The approach of “making the prospect feel important”<br />The survey method<br />Interactive approach<br />By Prof. Raghavendran.V<br />
  76. 76. Presentation<br />Prompt quick presentation creates an impression<br />Well organized articles<br />Explain features of products and price advantage ( an Intelligent Salesman will never compare rival products)<br />Show quality product<br />Demonstrating product will +ve impression<br />Product appeal<br />By Prof. Raghavendran.V<br />
  77. 77. Demonstration & Close<br />It is an exercise to prove the characteristics of the product. It is imperative and essential for a prospect to make a buying decision.<br />The main aim of the close is to convince the prospect to sign the order form, to place an order immediately rather than future.<br />By Prof. Raghavendran.V<br />
  78. 78. Theories of PS<br />The main theories of personal selling are<br />AIDAS Theory<br />Right set of Circumstances Theory<br />Buying Formula theory<br />By Prof. Raghavendran.V<br />
  79. 79. Aidas:<br />This theory is based on the premises that during a sales presentation, the prospect consciously goes through five different stages:<br />By Prof. Raghavendran.V<br />Stages of AIDAS Theory<br />
  80. 80. Aidas<br />Attention: The sales person should attract the prospect to his presentation before actually goes into the details of the same.<br />SP should involves the prospect’s mind in the presentation, his total may go unnoticed or registered.<br />Interest: SP should ensure that the prospect remains glued to his presentation throughout its length<br />By Prof. Raghavendran.V<br />
  81. 81. AIDAS<br />Desire: SP is responsible to create strong desire in prospect’s mind to purchase the product. SP should consciously bring prospect into the stage of readiness to the buying the product.<br />Action: SP is successful in 3 stages, SP induces to buy the product. Here important task for SP to help his prospect in taking final decision.<br />Satisfaction: After placing an order or buying product, SP should appreciate the prospect for the decision.<br />By Prof. Raghavendran.V<br />
  82. 82. Right set of circumstances theory<br />The theory opines that all circumstances, which led to the sales were appropriate or “right” for the sales to have taken place.<br />In other words, if the SP is successful in securing the prospect’s attention, maintaining his interest and including his desire to buy the product.<br />( SP is highly skilled then higher sales and viceversa)<br />By Prof. Raghavendran.V<br />
  83. 83. Buying formula theory<br />This theory emphasis is on the buyer, problems of the buyer and SP assist buyer in finding appropriate solution to the problem.<br />This theory based on the analysis of the sequel of the events goes on in buyer’s mind during the presentation <br />The following graphical representation will help you learn better.<br />By Prof. Raghavendran.V<br />
  84. 84. Buying formula theory<br />By Prof. Raghavendran.V<br />(a) For one time purchase<br />(b) For continuous relational ship<br />
  85. 85. Assignment time<br />Differentiate b/w advertising and publicity. Highlight the role of public relations and personal selling in pharmaceuticals, medical equipments.<br />Explain out personal selling process, how would presentations differ in the following cases and Role Play: One each for all<br />Selling insurance products, office computers,<br />Beverages, electrical generators, foot wares,<br />Banking products, home appliances and tobacco products.<br />By Prof. Raghavendran.V<br />3rd Sept’ 2011 submission<br />
  86. 86. Sales organization<br />By Prof. Raghavendran V<br />By Prof. Raghavendran.V<br />
  87. 87. Sales organization<br />Organization means the systematic coordination of the functions essential to achieving organization objectives. The functions of sales organization can be classified as follows:<br />By Prof. Raghavendran.V<br />
  88. 88. Functions of the sales organization<br />Planning Function<br /><ul><li>Sales forecasting
  89. 89. Sales budgeting
  90. 90. Selling policy</li></ul>Administrative Function<br /><ul><li>Selecting salesman
  91. 91. Training salesman
  92. 92. Control of salesman
  93. 93. Remuneration of salesman</li></ul>Executive function<br /><ul><li>Sales promotion
  94. 94. Selling routine- execution of customer’s order</li></ul>By Prof. Raghavendran.V<br />
  95. 95. Role of sales administration<br /><ul><li>Total customer satisfaction by way of prompt and safe delivery
  96. 96. Proper maintenance of stock ensuring defect free delivery to customers
  97. 97. Effective coordination and communication between regional offices and dealers.</li></ul>By Prof. Raghavendran.V<br />
  98. 98. Role of sales organization<br />Define line of authority<br />Ensure all necessary activities are assigned & performed<br />Establish line of communication<br />Provide for coordination and balance<br />Provide insights into avenues of advancement<br />Economics of executive time<br />By Prof. Raghavendran.V<br />
  99. 99. Developing a sales organization<br />Development refers to formal, coordinating process of communication, authority and responsibility for sales groups & individuals<br />The 5 major issues are<br />Formal & informal Organizations<br />Horizontal & vertical<br />Centralized or decentralized<br />The line and staff components of organizations<br />The size of the company<br />By Prof. Raghavendran.V<br />Ask student to draw diagram<br />
  100. 100. Field sales organization<br />Geographic sales specialization organization<br />Product based sales specialization organization<br />Customer based specialization organization<br />Activity/ function based organization<br />Hybrid organization<br />Team based organization<br />By Prof. Raghavendran.V<br />
  101. 101. Geographical sales organization<br />By Prof. Raghavendran.V<br />
  102. 102. Product based sales organization<br />By Prof. Raghavendran.V<br />
  103. 103. Customer based sales organization<br />By Prof. Raghavendran.V<br />
  104. 104. Activity/ function based organization<br />By Prof. Raghavendran.V<br />
  105. 105. Hybrid sales organization<br />By Prof. Raghavendran.V<br />Functional<br />Geographical<br />Customer<br />
  106. 106. Team based sales organization<br />By Prof. Raghavendran.V<br />
  107. 107. Assignment time<br />Explain all field sales organizations with example each.<br />Brief out developing sales organizations with figures.<br />Highlight by points about functions of sales organization<br />By Prof. Raghavendran.V<br />
  108. 108. End of module 1 in Sales management, End of module 8 in industrial marketing<br />By Prof. Raghavendran.V <br />By Prof. Raghavendran.V<br />