The only business function that generates
Planning, direction and control of personal
selling including recruiting, selecting,
training, equipping, assigning, supervising,
compensating and motivating as these
tasks apply to the personal sales force.
Management of the personal selling task.
Is there anything like ‘impersonal selling’ or
Selling is an exchange transaction. Exchange of
Product or service for money
Money is the revenue or the earnings of an
enterprise often called ‘turnover’ or ‘top line’
Sales therefore is the only revenue generating
function in an enterprise.
Sales management: evolution
Industrial Revolution – 1760
Small home industries – Large scale
manufacturing –marketing – sales and
Concept of hunters and farmers
The modern day sales manager is both
an administrator in-charge of personal
selling activity and a member of the
group that makes marketing decisions
of all types.
…..they make more noise and more mistakes,
create more cheer, correct more errors, adjust
more differences, spread more gossip, hear
more grievances, pacify more belligerence
and waste more time under pressure, all
without loosing their temper, than any other
class of professionals –including politicians.
…they live in hotels, cabs and tents on trains,
buses, eat all kinds of food, drink all kinds of
liquids –good and bad- sleep before, during
and after business, with no sympathy from the
They draw and spend more money with less
effort, they come at the most inopportune time,
under the slightest pretext, ask more personal
Yet they are a power in society…
With all their faults, they keep the wheels of
commerce turning, and the currents of human
emotions running. More cannot be said any
man. Be careful whom you call a salesman,
lest you flatter him.
-Donald Benenson in Ziglar on Selling
“QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
With various tasks required to be performed
the enterprise had to create a structure to
ensure that work is done. (the Sears story)
Principles of structure: authority, responsibility,
Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with one
another. An organization is oriented towards
and a co-operative endeavor and a structure
of human relationships.
Purpose of organization
Eliminate waste of effort
Permit development of specialists
Ensure that all activities get done
Types of organization structures
Line organization: line managers perform
sales and sales management activities.
Line and staff organization: Staff managers
have advisory or support responsibility.
e.g.Market research manager, Training
manager.They are not directly responsible for
achieving sales targets.
Functional organization: focus is on the
principle of specialization. Each specialist has
a functional responsibility and are permitted to
direct and control the salesperson thru their
Market or customer;
Combination of specialised structures.
Line Sales Organization structure
Area Sales Mgr
Clear authority & Responsibility
Quick response & Decision, Low Cost
Weak on marketing inputs
Sales manager controlled
Functional Sales Organization
Access to Specialists
HOD is Pressures to co-ordinate
Research & Design team
Research & Design team
Product / /Service design
Product Service design
Customer Support team
Customer Support team
Customer Satisfaction teams
Customer Satisfaction teams
Sales & Marketing
Sales & Marketing
Pricing & Promotion
Pricing & Promotion
Sales relation with marketing
Sales &Advertising: both stimulate
demand. They need to be blended.
Salespersons can improve advertising
effectiveness. Advertising needs to
support sales where and when they
need it most.
Sales & Marketing information: data is
needed for analysis of sales problems,
for determining sales potential. Raw
data is collected by sales people.
Sales and service: contributes to strategy
Sales and distribution: minimizes stock out
situation; improves inventory control; helps
sales to focus on demand generation.
Sales & Production:
Sales and R&D
a managerial function
LONG RANGE PLAN
3 TO 5 YEAR PROJECTIONS
ANNUAL OPERATING PLAN
REVISED YEAR TO YEAR
PREVIOUS YEAR SALES
CURRENT YEAR ACHIEVEMENT
PLAN BY VALUE
NEXT YEAR PLANS
PLAN BY VOLUME
PLANNING FOCUS AREAS:
A REGION OR TERRITORY CEASES TO CONTRIBUTE
DISCONTINUATION OF SALES TO AN ACCOUNT
ACCEPTING A PRIVATE BRAND ORDER
EEN BUDGET AND ACTUAL SALES
NE B INE S
W US S
*A O N PLA S
Key Deliverables of the Sales
Forecasting a key planning tool
PRODUCT LEVEL –
total sales industry sales
product line sales
product variant sales
Time period forecast
Short term (range)
Cash flow plan
Human resource plan
One of the keys to success in sales is knowing
where customers are located and being able
to predict how much they will buy.
Geographic Area forecast
Region ( REGION OR ZONE )
Territory ( BRANCH / DISTRICT )
Top - down /Break –down approach
An SBU level forecast broken down to region,
district, territory, salesperson and individual
customer sales quotas
Bottom –up /Build – up approach
Individual customer to branch to zone to
company level forecast
Methods of sales forecast
Delphi method – prediction by a panel
Sales force composite – ‘grass roots’ approach.
Test marketing –controlled or simulated
Customer’s intention and expectation are specific.
(insurance, mobile service)
Customer is contacted over phone
Customer is an organizational buyer
Customer seeking service or solution
Customer in a retail store
Cold calling situation
Creative selling ( ad.campaign)
The sales budget
To the sales department, the budget is a blue
print for making sales. It involves money
invested in distribution facilities, promotion
efforts, and sales personnel. It is the
foundation on which to plan sales objectives
and the means of achieving them during the
A budget is a quantitative expression of plans. Most
well managed enterprises use a budget which is a
comprehensive and coordinated plan for the
operations and resources of the enterprise.
It is a formal and intricate process
Approaches are either incremental or zero based.
In a volatile economic climate organizations
estimate optimistic, realistic and pessimistic
Critical factors considered:
Sales force estimates
Customers: existing and potential
Number of sales people
Decision on the size of the sales force is very
complicated because structure of the
customers vary in each territory, the level of
competition varies across territories, the
connectivity for travel varies etc.
There are 3 generally accepted approaches:
affordability, incremental and workload
Definition : A sales territory consists of existing
and potential customers assigned to a sales
person. The territory may or may not have
Reasons for territories
Increase / improve customer coverage
Control selling expenses
Effective evaluation of salesman’s
improve customer relations
Main procedural steps:
Selection of a basic geographical control
Determination of sales potential present
in each unit
Combining the basic units into tentative
Adjust for differences in coverage
difficulty and readjust the tentative
territories ( build up / break down method
Build up method:
Decide call frequency
Calculate total no of calls in the unit
Estimate workload capacity of salesman Make
Break down method:
Estimate company sales potential for total
sales potential for each control unit.
Estimate sales expected
from each salesman.
Make tentative territories.
Develop final territories.
Routing Scheduling and control
Maintain lines of communication
Improve territory coverage
Minimize wasted time
Closer scrutiny of sales force movement
Journey plans for improving customer
Quotas are quantitative goals assigned to
individual sales persons for a specified period
One of the most widely used tools in sales
Should not be confused with sales potential or
Quotas may be set equal to ,above or below
the sales forecast.
Why Quotas ?
To help management motivate sales people.
To direct sales people where to put there
To provide standards of performance
Types of Quotas
Sales volume Quotas : Rupee volume / Unit
volume-how much for what period.
Profit based Quotas: contribution / gross
Activity Quotas: calls per day; sales meetings;
product demos; ( efforts = results.)
Procedure for setting sales volume
Sales volume quotas derived from
territorial sales potentials
Total market estimate
Executive judgment alone
Sales person set own
Past sales experience alone
What is Motivation??
Drive to initiate an action.
The intensity of effort in an action
The persistence of effort over
Physical separation from company
Direct influence on quality of sales
Indirect influence on performance
Sales force motivation
“the desire to make an effort to fulfill a need is
Motivation includes three dimensions:
Direction, Intensity and persistence.
Motivation may also be Intrinsic or extrinsic
Maslow’s hierarchy of needs:
Food, clothing, shelter, health
MASLOW HIERARCHY OF NEEDS
Intense job challenge, full potential, full
expression, creative expansion.
Achievement, respect, recognition,
responsibility, prestige, independence, attention,
Belonging, acceptance, love, affection,
and group acceptance, friendships.
Security, stability, dependency, protection,
need for structure, order, law, tenure,
Hunger, thirst, reproduction, shelter,
Frederick Herzberg theory
“Two factor theory” of motivation
Hygiene ,maintenance, or job context factors.(
dis satisfiers )
Achievement, challenge, advancement,
growth in the job. (satisfiers )
THE WORD SELL IS DERIVED FROM A Norwegian WORD SELJE
WHICH MEANS TO SERVE
TO SERVE YOUR PROSPECTS YOU MUST UNDERSTAND THEIR
PEOPLE INVARIABLY BUY WHAT THEY WANT, EVEN ABOVE
WHAT THEY NEED
The sales process
Process: a sequential series of decisions and
CLOSE THE SALE
The sales process
Prospecting & Qualifying
Pre approach (pre call planning )
Presentation & Demonstration
Trial close / Closing the sale
Follow –up and Service.
the Ziglar method
Focus on Prospects NEEDS and WANTS.
Sell by design, not by chance.
Follow a proven 4 step formula:
Process of identifying potential buyers.
A prospect has a reasonable probability of
buying ,has sufficient need to justify a
profitable sale ,has financial resources to buy
and can be classified as ‘eligible to buy’
MONEY? AUTHORITY? DESIRE?
Lead generation – a three step process.
Defining the target market :what it wants;
what it buys; where and when it buys; what it
buys; how it buys;
Using communication tools to gather leads –
Advertising, Direct mail, Telemarketing,
Trade shows, buying data
Qualifying the Leads.
Selling first time to Prospects
(pre sale planning)
Adequate knowledge of the product to be sold,
company being represented, the market competition
,category or segment of customers and selling
Product knowledge: Evolution-Features-BenefitsUniqueness-Price
Company knowledge: History-Values-AchievementsManagement-Policies
Pre sale plan
Competitors knowledge :structure-sharestrategy-systems.
Customer knowledge :attitudes-preferencesbehavioural habits
Selling techniques :
Pre approach planning
Focus on understanding customer needs and
characteristics and preparing a proposal on how the
product or service offered can satisfy the need.
Steps involved are:
Determining call objectives.
Development of customer profile.
Determine customer benefits.
Determine the flow and content of the presentation.
Understanding buyer’s needs
Situational questions: questions about prospect’s
current situation. (who will decide? is it the first time ?
Changing source ?
Problem identification question: Questions to uncover
problems, difficulties or needs ( problems on quality,
Problem impact questions: questions to make the buyer
realise the impact of the problem and the need to solve
it.( what will be the impact on costs , on customer
Solution value questions :questions to help
the buyer asses the value or usefulness of the
solution ( for x benefit how much would you
Confirmation questions: (how would an error
free system help?)
At this stage you need to THINK
Prospect and Salesperson should both be
aware of the need. (remove blind spots)
Present your product
Time to stop asking questions and start
People don’t buy products, they buy what the
product does for them.
Questions are the answer
Thinking vs. feeling questions.
When you learn how the customer feels you
are more likely to find out what the person
thinks.( the seat belt case)
Tying emotion to logic.
The questioning process
Three basic types of questions enable us to
discover the needs of our potential customers.
1st The Open Door Questions.-allows the
prospect the freedom to go where ever they
like. the “who, what where ,when, how and
The closed door question: “would you tell me
more”; “what do you mean by…Answers to
these give you information to helping the
prospect and building trust.
“yes or no” questions demand a direct
response. “do you agree..” “would my
proposal..” “are we in agreement..”
They allow you to check on your progress on
the sales process. “trial close”
Stimulus response method: also called a ‘canned
approach’, a memorised sales presentation .It assumes
that if a right stimuli is made it will get a favourable
Formula method: the AIDA process.
Need-satisfaction method: an interactive sales
presentation. The most challenging and creative
method. The FAB way.
Features, Advantages, Benefits.
Building Desire and conviction
Initiate Action to buy.
Team selling method: a multi person sales team deals
with a multi person buying centre (or buying
Sales team consists of Account executive, technical
support engineer, logistics expert, IT or systems
executive and Finance executive.
Buying committee consists of materials exec.
manufacturing/operations exec. supply chain exec.
Materials manager and Finance exec.
Consultative selling method: problem-solution
Knowledge of the industry, clients company,
awareness of key members needs,
Objections , opposition , resistance to the
presentation typically happens during the
presentation or while asking for the order.
Objections should be welcomed.
Objections indicate that the prospect is
involved and not indifferent.
Objections reflect the prospect’s view.
Psychological ( hidden ) – includes predetermined ideas or beliefs, preference for
established brands, dislike of making
decisions , anxiety or resistance to spend
money , suspect about quality etc.
Logical or practical or real –delivery
schedule, high price , product availibility,
Methods of handling objections
Ask questions: listen, rephrase, reconfirm the
objection and explain.
Turn objection into a benefit and trial close.
Deny objections tactfully. (arrogance and
sarcasm to be strictly avoided)
Compensation for valid objections.
Plan – pre determine ‘firm’ and ‘flexible’
factors; define limits.
Ensure an atmosphere of trust , understanding
Define purpose and objective.