SJ Ma'am's PPT enhanced

1. Sales Management
Vinit Khandelwal

2. Recruitment and Selection Process
• Forecast People
• Job Analysis
• Job Description
• Job Qualification
• Recruitment
• Communication

3. Definition
• Process
– Formulation of Sales Strategy
– Implementation
– Sales Force Management

4. Recruitment and Selection Process
• Number
• Job Description
• Sources
• Application form
• Interviewing
• Offer

5. Forecast People
• Plans
• Current Strength
• Promotions n Transfers
• Quits n Retirements

6. Job Analysis
• Duties and Responsibilities
• Activities
• Behaviour
of Sales Person

7. Preparation of Job Description
• Product/Service Nature
• Customer Type
• Frequency to contact
• Duties and Responsibilities
• Reporting Pattern
• Intellectual and Physical Demands
• Location and area
• Compensation

8. Job Qualification
Skills needed to perform a particular job
Job Qualification for Sales Person (MAASHEEPI)
– Memory
– Alertness
– Achievement Oriented
– Self Confidence
– Hard Working
– Energy Level - High
– Emotional Maturity
– Perseverance
– Intelligence

9. Recruitment
• Number
– Need
– Positions/(% Application Selected * % accepted)
– Eg, 2 / (0.1 * 0.8) = 25
• By whom?
• Sources
– Inside
– Recruitment Agencies
– Competitors
– Educational Institutes

10. Communication
• Press
– National
– Regional
• Trade Journals
• Agencies
• Radio
• Educational Institutes/Universities

11. Application Form
• Personal
– Name
– Age
– Address
– Gender
– Marital Status
– Date of Birth
• Educational
– School
– Higher Education
– Qualification
– Specialized Training
– Membership of Professional Bodies
• Employment History
– Companies
– Dates and Duration
– Position & Responsibilities
• Interests and Other Activities
– Sports
– Hobies
– Membership of Clubs

12. Interview
• Tests
– Personality
– Intelligence
– Ability
– Aptitude
– Emotional Intelligence
• Interview
– Probes
– Silence
– Neutral Questions

13. Types of Interviews
• Structured
• Semi-Structured
• Group
• Panel
• Stress
• Field

14. Job Offer
• Formal Letter
• Deadline acceptance
• Salary Description
• Additional Facilities Description
• Training Schedule / Probation Period
• Performance Review Timeline

15. Maslow’s Hierarchy of Needs

16. Herzberg’s Dual Factor Theory

17. Vroom’s Expectancy Theory
Effort
• Increased call rate, longer working days
Performance
• Increased Sales, increase in no of active
accounts, higher sales call ratio
Reward
• Higher Pay, sense of
accomplishment, respect, promotion
Value of Reward
Expectancy
Instrumentality
Valence

18. Expectancy – Instrumentality - Valence
• Expectancy
– A person’s Perceived relationship between Effort
and Performance
• Instrumentality
– A person’s Perceived relationship between
Performance and Reward
• Valence
– Value placed upon a reward by a person

20. A Salesperson can feel inequity
• Monetary rewards
• Workload
• Promotion
• Degree of recognition
• Supervisory behaviour
• Targets
• Tasks

21. Motivation
• Monetary Incentives
• Quota
• Meetings
• Contests
• Employee Promotion

22. Training
• Performance Improvement
– Definite
– Fast
• Increased Output per Employee
• Reduced Recruitment and Selection Cost
• Improved Customer Relationship

23. Definition (SACK)
The effort an employer puts forth to provide
salespeople job-related
• Skills
• Attitudes
• Culture
• Knowledge
that should result in improved performance in
the selling environments

24. Why Train?
• Decreased Sales – Increase
• Customer Relationship Enhancement
• Reduce Cost
• Morale Boosting
• Time and Effort Efficiency
• New Sales Personnel
• Knowledge
• Feedback

25. Training Program (PACTMANS)
• Aim Where to reach
• Needs What is missing
• Contents What to add
• Method How
• Trainer Who
• Schedule When
• Place Where
• Aids Using what material

26. 2. Training Needs
• Job Specifications
• Trainees’ background and experience
• Marketing Policies related to Sales
• Continuing Training Needs Identification
• Performance Measure
• Sales Volume
• Objectives of Organization
• Observation of Skills

27. 3. Training Content
• Product Details
– Application
– Drawbacks
– Competitors
– Substitutes
• Sales Techniques
• Market Segments
– Demographical
– Geographical
– Psychological
• Company Details
– History
– Unions
– Competitors
– Image
– Policies
– Compensation

28. 4. Methods (LCD COCRG)
1. Lecture
2. Case Study
3. Demonstration
4. Conferences
5. On the Job Training
6. Correspondence Courses
7. Role Playing
8. Group Discussions

29. 5. Trainer – Who?
• Top Sales Executive
• Managers
– Assistant Sales Manager
– District Sales Manager
• Directors
– Personnel Director
– Sales Training Director
• Outside Experts

30. Evaluation
• Performance Against Standards
• Before and After
• Written Test
• Rating on Role Playing
• On the job observation

31. Key to Successful Selling
• Ask
• Share Product Information
• Compare
• Show Evidence
• Acknowledge Customer’s Viewpoint
• Comfort Customer

32. Knowledge
Product
1. Product Development History
2. Product Performance
3. Maintenance and Service Contracts
4. Price
5. Delivery
6. Quality
7. Cost-Benefit Analysis
Competition
1. Attitude towards Competition
2. SWOT

33. Knowledge
Company
1. Culture
2. Structure
3. Support for Product
4. Image
5. SWOT
Customer
1. Behavior
2. Response
3. Interest

34. Buyer’s Behavior
• Needs
• Motives
– Rational
• Quality
• Price
• Design
– Emotional
• Brand Preference
• Social factors
• Cultural factors
• Personal factors

35. Buyer’s Decision Making Process
• Need Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decision
• Post Purchase Behavior
– Satisfaction
– Dissatisfaction

36. Personal Selling Process
1. Opening
2. Need/Problem Identification
3. Presentation/Demonstration
4. Dealing with Objectives
5. Negotiations
6. Closing
7. Follow Up

37. Presentation/Demonstration
• Objectives
– Aware
– Persuade
– Remind

38. Important Points for Demonstration
• Customize
• Balance Verbal and Visual
• One Idea at a time
• Need to Desire to buy Conversion
• Purchasing Benefits – display
• Involve prospect
• Ask to check understanding
• Summarize imp points
• Re-emphasize purchase benefits
• Ask for Order/Further communication

39. QUOTAS
Types (PEAS C)
• Profit
– Gross Sales – COGS
– Net Sales – (COGS + Direct Expenses)
• Expense eg, 4% of sales
• Activity No of activities to be done
• Sales Volume eg, 1000 units in a month
• Combination

40. How Quotas are Set
• Forecast
• Forecast and Potential
• Past Experience
• Judgment
• Compensation equivalent

41. Administer Quota System
• Set Quota - Accurate, Fair & Attainable
• Acceptance by Salesperson
• Control

42. Purposes of Compensation
• Connect individual with Organisation
• Influence work behavior
• Organisational choice
• Influence satisfaction.
• Feedback on performance
• Reinforcement

43. Sales Force Compensation
Pay dissatisfaction may lead to
1. Poor performance
2. Absenteeism
3. Grievances
4. Job dissatisfaction
5. Increased Atteration
6. Psychological withdrawal
7. Stress anxiety
8. Poor mental health

44. Compensation Types
• Straight Salary
Advantages
– Sense of Security
– Simple to administer
– Projection of Compensation Expense is possible
Disadvantages
– Lacks Motivation
– Fixed Expense, Cannot reduce in bad times
When to use?
– More like delivery
– Pre-sales and post-sales services major part
– Team oriented Sales efforts

45. Compensation Types
• Straight Commission
Types
– Amount per sales
– %age of Sales amount
– Level Changing amount
Advantages
– Motivation
– Sense of Achievement
– Selling cost in proportion to sales
Disadvantages
– Uncertainty of Sales
– Salesperson pressurize customer for sales
– Reluctances in transfers
When to use?
– Low Expense affordability
– High Convincing Job

46. Compensation Types
• Combination
Design
– Able to live on Salary alone
– Top performer: 25%-50% of salary
– Commission (as per sales)
or Bonus (as per sales and time)
– Set lower and upper Limit
– Consider profitability

47. CRM Cycle
• Customer Need and Acquisition
• Customer Development through
Personalization and Customization
• Customer Equity through cross selling and up
selling