Chapter 1


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Chapter 1

  1. 1. Sales Management & Personal Selling<br />Chapter 1.<br />Concept, Nature, Role of Sales Management in Marketing, Salesmanship, Specific characteristics of a successful salesman, the evolving face of personal selling<br />
  2. 2. What is sales management?<br />An earlier explanation/ definition of sales management was, directing the sales force personnel.<br />Later as the responsibilities taken up by the sales team grew and as the sales function evolved into a more holistic function a new definition has emerged :<br />Sales Management is management of all marketing activities including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.<br />
  3. 3. Current day definition of Sales Management<br />The American Marketing Association has given a current day definition of sales Management as:<br />The planning, direction and control of personnel selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personnel sales force<br />
  4. 4. Objectives of Sales management<br />From the Organizations Viewpoint there are three general objectives of sales management<br />Achieving the desired sales volume<br />Contribution to profits in the organization<br />Continuing growth<br />
  5. 5. Sales Management Process<br />Planning<br />Building a profitable customer oriented sales team<br />Performance<br />Obtain Goals<br />Product sales & profits<br />Customer satisfaction<br />Efficiency<br />Effectiveness<br />Controlling<br />Evaluating the past to guide the future<br />Resources<br />Human<br />Financial<br />Raw Matls<br />Technology<br />Information<br />Staffing <br />Hiring the right people to sell and lead<br />Leading<br />Guiding average people to perform at above average levels<br />Training<br />Educating sales personnel to satisfy customers<br />
  6. 6. Nature & importance of Sales Management<br />Nature & Characteristics of Sales Management<br />Its integration with marketing Management -<br />Relationship Selling<br />Varying Sales responsibilities<br />
  7. 7. Integration of Sales Management with Marketing management<br />Aligning the sales plan with the marketing plan<br />Marketing Research<br />Customer Service<br />Coordination<br />Promotions (including advertising, Sales Promotion, Publicity & PR)<br />
  8. 8. Relationship Selling<br />Buyers and salespersons have some type of a business or working relationship<br />Every relationship is an exchange<br />Relationship Marketing aims at creation of customer loyalty<br />The spectrum of relationships include<br />Transactional relationship (Selling)<br />Value added relationship (Counseling)<br />Collaborative relationship (Partnering)<br />
  9. 9. Varying Sales responsibilities<br />Response Selling<br />Sales Support<br />Technical Sales Support<br />Demand Creator or business developer<br />Solution vendor<br />
  10. 10. Salesmanship<br />Sales Management, Personal Selling and Salesmanship are all related. Sales management directs the personal selling effort which is turn is implemented largely through salesmanship<br />Salesmanship is one aspect of personal selling and never all of it.<br />It is one of the skills used in personal selling<br />
  11. 11. Salesmanship Definition<br />Salesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction.<br />It is also defined as a seller initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favour of the sellers products or services<br />
  12. 12. Specific Characteristics of a successful salesman<br />People Skills – Ability to motivate, lead, communicate and coordinate effectively<br />Managing Skills- Administrative skills like planning, organizing, controlling & decision making<br />Technical Skills – Training, Selling skills, negotiating skills, use of IT, problem solving abilities, Product knowledge<br />
  13. 13. Personal Selling<br />It is a direct presentation of a product to a prospective customer by a representative of the organization selling it.<br />It takes place face to face or over the phone and it may be directed to a business, person or a final consumer<br />
  14. 14. Types of Objectives of Personal Selling<br />Some of the Objectives of personal selling are:<br />To shoulder the entire responsibility of the promotion mix (when no other element of Promotion mix is used)<br />To maintain contact with existing customers, take orders etc (also known as servicing existing accounts)<br />To search and obtain new customers<br />
  15. 15. Objectives ….contd…<br />To secure customers cooperation in stocking and promoting the product line<br />To inform and educate customers<br />To assist customers in selection <br />To provide technical assistance<br />To assist with training the middlemen’s sales personnel<br />To collect market information<br />
  16. 16. Diversity of personal selling situations<br /> Personal Selling situations -<br />Service Selling <br /> Inside Order Taker , Delivery Salesperson ,Merchandising Salesperson, Missionary, technical Sales person<br />Developmental Selling<br /> Creative sales person of tangibles, Creative salesperson of intangibles <br /> Creative Selling<br /> Political, Indirect, Back door<br /> Salesperson in multiple Sales<br />
  17. 17. Service Selling<br />Inside Order taker – here the salesperson waits on customers (e.g Sales Counter person)<br />Delivery Salesperson – Engaged in delivering the product (Person who delivers Milk, Eggs)<br />Merchandising/Route Sales Person – Works as an order taker on field mainly with retailers<br />Missionary _Works only to create goodwill and disseminate information . Does not do any order taking<br />Technical Sales Person – Emphasizes technical Knowledge and educates customer<br />
  18. 18. Developmental Selling<br />Creative sales person of tangibles – Sales person selling vacuum cleaners , encyclopedias<br />Creative sales person of intangibles- Sales person selling Insurance, advertising services, Educational programs <br />
  19. 19. Creative Selling (Basically Developmental)<br />Political /Indirect/Back Door – Selling big ticket items by catering to the other interests of the customers (which have no connection with the product)<br />Salespersons engaged in multiple sales- Where the sales person is required to make presentation to various entities of an organization (Ad agency salespersons making presentations to selection committee, creative department, product department etc)<br />
  20. 20. Theories of selling<br />Is selling a science which can be taught and has several basic concepts?<br />OR<br />Is it an art which can be learned through experience?<br />This has led to two contrasting approaches to theories of selling<br />The first approach relies on Experiential learning<br />The second approach draws from fundamental concepts of behavioral sciences<br />
  21. 21. Theories of selling<br />Seller Oriented<br />AIDAS theory<br />Right set of circumstances<br />Buyer Oriented<br />Buying Formula Theory<br />Behavioral Equation Theory<br />
  22. 22. AIDAS theory<br />A – Secure Attention<br />I – Gain Interest<br />D – Kindle Desire<br />A- Induce Action<br />S – Build Satisfaction<br />
  23. 23. Right Set of Circumstances theory<br /> Also known as situation response theory<br />It holds that particular circumstances prevailing in a selling situation will cause the prospect to respond in a predictable way<br />Set of circumstances include external and internal factors<br />(E.g Salesperson to Prospect – Let have coffee – Sales person and proposal to have coffee are external factors<br />- Prospects desire to have coffee or to go out with salesperson are internal factors)<br />
  24. 24. Right Set of Circumstances theory<br />It stresses on importance of salesperson controlling situations<br />Does not handle the problem of influencing factors internal to the prospect<br />Fails to address the response side of the Situation-Response interaction<br />
  25. 25. Buying Formula Theory of selling<br />Here the buyer’s needs receive major attention<br />Need (Problem recognition) Solution Purchase<br />Need (Problem recognition) Solution Purchase Satisfaction<br />
  26. 26. Behavioural Equation Theory<br />J A Howard explains buying behaviour in terms of the purchase decision process. He uses four essential elements of the learning process namely <br />Drives – Strong internal stimuli that impel the buyers response <br /> Innate –Physiological like hunger, thirst etc<br /> Learned – Strive for status<br />Cues – Weak stimuli that determine when the buyer will respond<br /> Triggering – Activate the decision process (price, smell, aroma etc)<br /> Non-Trigerring- Influence the decision process but do not activate (Package, information on the cover etc)<br />Response – is what the buyer does<br />Reinforcement - any event that strengthens the buyer’s tendency to make a particular response<br />B = P X D X K X V<br />B – Act of purchasing<br />P – Predisposition or inward response tendency<br />D- Present Drive level<br />K – Intensive potential ( value of the product to satisfy the need)<br />V – Intensity of all cues<br />
  27. 27. Prospecting<br />The planning work which is essential in eliminating calls on non buyers is called as prospecting<br />Steps<br />Formulating prospect definitions <br />Searching out potential accounts<br />Qualifying prospects and searching out <br />Relating company products to each prospects requirement<br />
  28. 28. Obstacles to sales<br />Sales Objections<br />Real<br />Insincere<br />
  29. 29. Closing Sales<br />Indirect Close<br />Direct Close<br />
  30. 30. Exercise<br />As a seller of cosmetics, do a role play for selling a bag of the newly launched Revlon lipsticks to me (Roll Nos. 1-5, 6-10,11-15, 16 -20)<br />Consider that you are a company manufacturing Photocopiers. Carry out the prospecting exercise for a new range of office automation product like a facsimile (fax) machine (Roll Nos. 21 – 25, 26-30, 31-35, 36-40)<br />Write down at least two examples of various types of personal selling situations (41-60)<br />
  31. 31. Case Study<br />