1. Sales Management Ppt
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ОпубликованRaman Kumar Jha
sales mngt
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Categories:Types, School Work
Published by: Raman Kumar Jha on May 11, 2012
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1
Sales Management
Sales Management
Sales Management is a part of Marketing Management.Sales Management can broadly be
defined as
–
The
Planning, Direction and Control
of the Personal Selling function in anOrganization, which includesa) Recruiting (e) Selectingb)
Equipping (f) Assigningc) Routing (g) Supervisingd) Paying (h)
Motivating ………….
the Sales Force involved directly or indirectly in the Personal Sellingfunction.Sales Management
can also be defined as
–
the
planning, Organizing, Leading and controlling
of the Personal Selling function.
Sales Management
Sales Management can also be defined as
–
the
planning, Organizing, Leadingand controlling
of the Personal Selling function.The fundamental

2. objectives of Sales Management
are :
•
Generating Sales Volume.
•
Contribution towards the profits of the Organization.
•
Ensuring continued growth in business.How Sales Management directly affects the profits of an
Organization can be judged from the following equation:(SALES)
–
(COST OF SALES) = (GROSS MARGIN)(GROSS MARGIN)
–
(EXPENSES) = (NET PROFIT)
Sales Management Ppt
Ratings: (0)|Views: 182 |Likes: 1
ОпубликованRaman Kumar Jha
sales mngt
More info:
Categories:Types, School Work
Published by: Raman Kumar Jha on May 11, 2012
Авторские права:Attribution Non-commercial
Availability:
Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
Flag for inappropriate content|Добавить в коллекцию
See less
Sales Management
Sales Management is a part of Marketing Management.Sales Management can broadly be
defined as
–
The
Planning, Direction and Control
of the Personal Selling function in anOrganization, which
includesa) Recruiting (e) Selectingb) Equipping (f) Assigningc) Routing (g) Supervisingd) Payin
g (h)
Motivating ………….

3. the Sales Force involved directly or indirectly in the Personal Sellingfunction.Sales
Management can also be defined as
–
the
planning, Organizing, Leading and controlling
of the Personal Selling function.
Sales Management
Sales Management is a part of Marketing Management.Sales Management can broadly be
defined as
–
The
Planning, Direction and Control
of the Personal Selling function in anOrganization, which
includesa) Recruiting (e) Selectingb) Equipping (f) Assigningc) Routing (g) Supervisingd) Payin
g (h)
Motivating ………….
the Sales Force involved directly or indirectly in the Personal Sellingfunction.Sales
Management can also be defined as
–

4. the
planning, Organizing, Leading and controlling
of the Personal Selling function.
Sales Management
Sales Management can also be defined as
–
the
planning, Organizing, Leadingandcontrolling
of the Personal Selling function.The fundamental
objectives of Sales Management
are :
•
GeneratingSalesVolume.
•
Contribution towards the profits of the Organization.
•
Ensuring continued growth in business.How Sales Management directly affects the profits of an
Organization can be judged from the following equation:(SALES)
–
(COST OF SALES) = (GROSS MARGIN)(GROSS MARGIN)
–
(EXPENSES) = (NET PROFIT)
Sales Management
From the above it would be clear that more the SALES higher arethe chance of increased
GROSS MARGIN. And since expenses donot necessarily increase with increase in Sales,
rather expensesreduce with increase in Sales, the NET PROFIT is bound to increase.The above
objectives are achieved by members of OrganizationThrough Personal Selling activities, which
makes it imperative tounderstand the concept of Personal Selling very clearly and
study itsbearing on the selling as well as buying process.It is to be noted that Personal Selling is
not the same asSalesmanship. Rather Salesmanship is a part of Personal Selling.
Marketing vs Sales
Marketing Approach Sales Approach
a) Identify markets a) Identify customers
•
End use analysis - Prospecting for customers
•
Desk research - Who else, where else approach
•
Market research -
Meet customer’s specific needs

5. b) Develop products b) Meet customer’s specific needs
Research & Development - Application engineeringc) Develop & maintain an effecti
ve c) Overcome the obstacles in themarketing system field of sales of the product
/service.
•
Pricing strategy -Handling objections
•
Product/service promotion - Personal selling
•
Advertisement campaign - Developing quotations
•
Distribution strategy - Submitting tenders
•
Packaging - Combating competition
•
After Sales Service -
Matching competitor’s moves
d) Ensure profitability & adequate return-on-investment d) Ensure profitability
•
Costing system - Return on time invested
•
Inventory control - Control on Accounts(clients)
•
Receivables - Margin on sales
•
Credit control - Control on selling expenses
Marketing vs Sales
Marketing Approach Sales Approach
a) Identify markets a) Identify customers
•
End use analysis - Prospecting for customers
•
Desk research - Who else, where else approach
•
Market research -
Meet customer’s specific needs

6. b) Develop products b) Meet customer’s specific needs
Research & Development - Application engineeringc) Develop & maintain an effecti
ve c) Overcome the obstacles in themarketing system field of sales of the product
/service.
•
Pricing strategy -Handling objections
•
Product/service promotion - Personal selling
•
Advertisement campaign - Developing quotations
•
Distribution strategy - Submitting tenders
•
Packaging - Combating competition
•
After Sales Service -
Matching competitor’s moves
d) Ensure profitability & adequate return-on-investment d) Ensure profitability
•
Costing system - Return on time invested
•
Inventory control - Control on Accounts(clients)
•
Receivables - Margin on sales
•
Credit control - Control on selling expenses
Marketing vs Sales
Marketing Approach Sales Approach
a) Identify markets a) Identify customers
•
End use analysis - Prospecting for customers
•
Desk research - Who else, where else approach
•
Market research -
Meet customer’s specific needs
b) Develop products b) Meet customer’s specific needs

7. Research & Development - Application engineeringc) Develop & maintain an effecti
ve c) Overcome the obstacles in themarketing system field of sales of the product
/service.
•
Pricing strategy -Handling objections
•
Product/service promotion - Personal selling
•
Advertisement campaign - Developing quotations
•
Distribution strategy - Submitting tenders
•
Packaging - Combating competition
•
After Sales Service -
Matching competitor’s moves
d) Ensure profitability & adequate return-on-investment d) Ensure profitability
•
Costing system - Return on time invested
•
Inventory control - Control on Accounts(clients)
•
Receivables - Margin on sales
•
Credit control - Control on selling expenses
PERSONAL SELLING
Personal Selling can be defined as a means for
implementing Marketing Programs
–
along with
other marketing elements such as Pricing,
Advertising, Product Development & Research
and Physical Distribution, etc.

8. Personal Selling vs Impersonal Selling
Personal Selling
involves person to person contact. It requires :1. To clarify to the buyer the unique benefits he
can get by buying the product/service.2. To satisfy the objections of the customer.3. To
understand the consequences for the buyer; i.e. the hidden, unexpressedreasons for not buying

9. and to offer solutions to overcome these.4. To convert implicit needs into explicit ones.5. To
give confidence and reassurance to the customer.6. To educate the customer and to effectively
differentiate his company,product/service, from those of the competitors.7. To solve
problems.8. To get direct feed-back from the market and be close to the customer.9. To gain a
competitive advantage.
Impersonal Selling
also does the above but not through person to person contact.These functions/activities are
done with the help of Visual, Audio and Audio-Visualaids like
–
information leaflets, advertisements in the print media, advertisements inthe
audio-visual media, voice-mail service etc.
HOW DIVERSE IS THE PERSONAL SELLING FUNCTION?
A . S e r v i c e S e l l i n g
•
Inside Order Taker
–
Counter salesmen inside a Departmental Store etc.
e.g. Sales executive at the ‘BATA’ shoes show
-room.
•
Delivery salesperson
–
mainly engaged in delivering the product/service.E.g. the person filling oil at the
Bharat Petroleum Service Station;delivering IndianOil cooking gas, person
delivering you your Credit card.
•
Route or Merchandising salesperson
–
a typical toiletries salesman whocollects order and ensures proper display of his
products at the shop.
•
Missionary salesman
–
the Medical Representative detailing the Doctorabout a new formulation. He does
not take orders but only disseminateslatest information. Door-to-door campaign
for participating in theelections/voting.
•

10. Technical Salesperson
–
strictly speaking he is a consultant to the client.E.g. project consultancy by
an Architect.
HOW DIVERSE IS THE PERSONAL SELLING FUNCTION?
B. Developmental Selling
•
Creative Salesperson of tangibles
–
selling a new software, selling a newlyinvented gadget.
•
Creative salesperson of Intangibles
–
selling insurance policy,Advertisement executive prospecting for accounts.
C.Basically Developmental Selling, not requiring
unusual creativity
•
‘Political’, ‘Indirect’ or ‘Back–Door’ Salesperson –
a salesperson selling onecommodity gets orders or another commodity because of
hisOrganizations infrastructure. E.g. an exporter of garments form India getsan order from
a client in England for canned apple juice(because of hisefficient and
ethical dealing with the client)
•
Salesperson Engaged in Multiple Sales
–
e.g. an Advertising Executive
giving many presentations to the ‘Agency Selection Committee’ of a
Company. One concept can be accepted /all can be rejected
THEORIES OF PERSONAL SELLING
a) STIMULUS RESPONSE SELLING
–

11. “Buy One Get one Offer”
–
a stimulus to the ‘prospect’ strongly influences the decision
making process and converts him into a buyer.
b) MENTAL STATE SELLING {A.I.D.A.S. Model}
–
Attention
of the customer is drawn through unique product/servicefeature;
Interest
of the prospect is developed; prospectdevelops
Desire
and converts to a potential customer;
Action
takes place (customer buys the product/service);Customer derives
Satisfaction
from the product/service.
c) NEED SATISFACTION SELLING
–
Therewasa‘need’foraT.V.
that will adjust its brightness according to the roomluminosity
–
L.G. Television being sold with ‘Golden Eye’
feature.
d) PROBLEM SOLVING SELLING
–
Pollution was a seriousproblem, CNG concept was sold to the Government.
e) CONTINGENCY SELLING
–
Distress Sale.

12. A TYPICAL PERSONAL SELLING PROCESS
There are five stages in a typical Personal Selling process:
1. Preparation:
•
Planning the itinerary
–
Time & Territory Management
•
Planning each sales call.
•
Prospecting and evaluating new customers.
2. Opening a sales call:
•
With new customers(under prospecting)
•
With existing customers - Inventory Check- What is new to offer.
3. Presentation of the Product/service:
•
Features, Advantages and Benefits of the offering/s.
•
Demonstration, if possible, of the offering
•
Handling objections - Obstacles to sales {customer is convinced but sale is not
effected becausecustomer is short of cash/customer cannot carry the
product todaysolution could be credit card/finance option and home delivery
next day}- Sales Objections{customer is dissatisfied because of some attribute of
the product detailed by the salesperson but not available. E.g. a ‘ceilingfan’
salesperson details that there are ‘double ball’
bearings present but the customer
finds only one ‘ball’ bearing and the other is a ‘bush’ bearing.
•
Negotiations
A TYPICAL PERSONAL SELLINGPROCESS

13. 3. Closing of the sales call:
•
Timing of the sales call.
•
Methods of closing.
4. Service:
•
Problem solving.
•
Marketing Intelligence.
•
Merchandising.
A TYPICAL PROSPECTING PROCESS
To economize on scarce Productive Selling time, planning work is done toeliminate calls on
non-
buyers. This ‘Planning work’ is called prospecting. The
steps involved are:
1. Formulating Prospect Definition:
Persons/Organizations who have thewillingness, the financial capacity and authority to
buy the product orservice being offered by the personal selling functionary is a PROSPECT.
2. Searching out potential accounts:
The sources can be directories of allkind; news and notes in trade
magazines/journals; membership list of Associations; friends and acquaintances;
etc.
3. Qualifying prospects & determining probable requirements:
Prospects
above a certain level of requirement are considered as ‘Qualified’ and are
pursued unless otherwise future growth/other factors are of significance.
4. Relating company products/service to each prospect’s requirements:
Finalstep is to approach the prospect and convince him that his requirement
will be satisfied by your Company’s product/service.
A TYPICAL PROSPECTING PROCESS

14. To economize on scarce Productive Selling time, planning work is done toeliminate calls on
non-
buyers. This ‘Planning work’ is called prospecting. The
steps involved are:
1. Formulating Prospect Definition:
Persons/Organizations who have thewillingness, the financial capacity and authority to
buy the product orservice being offered by the personal selling functionary is a PROSPECT.
2. Searching out potential accounts:
The sources can be directories of allkind; news and notes in trade
magazines/journals; membership list of Associations; friends and acquaintances;
etc.
3. Qualifying prospects & determining probable requirements:
Prospects
above a certain level of requirement are considered as ‘Qualified’ and are
pursued unless otherwise future growth/other factors are of significance.
4. Relating company products/service to each prospect’s requirements:
Finalstep is to approach the prospect and convince him that his requirement
will be satisfied by your Company’s product/service.
SALES RELATED MARKETING POLICIES
Sales related Marketing Policies directly influencethe jobs of the sales executives. There are
threemajor types of such policies:
1. Product Policies
–
what to sell.
2. Distribution policies
–
whom to sell.
3. Pricing policies
–
at what consideration
PRODUCT POLICIES

15. 1. Marketing Policy related to Product objectives
: The Personal Selling style would alter
if a Company changes its ‘Product Objective’ from ‘providing the customer bestvalue for money
products’ to ‘providing the customer the most economicalproduct’.
2. Marketing Policy related to Product Line:
Only ‘Cornflakes’ is a Short Product Line –
e.g. Mohan’s Cornflakes ; Whereas ‘Kellogg’s’ has a Long Product Line of ‘BreakfastCereals’. The
Personal Selling activity would vary in both cases. The Management
keeps reviewing the market scenario and the following decisions follow :a)
Changes in product offerings
: Reappraisal of the existing product lines isdone at regular intervals. Reappraisals serve two
purposes :-i) to determine whether individual items are still in tune with market demand.ii) To
identify those that should be dropped from, or added to, the line.
e.g.: ‘Fiat’ dropped their old model to come up with ‘Sienna’ and then furtherbrought
‘
Palio
’.
‘Hindustan Lever’ appraised the situation of ‘Lifebuoy’
and launched‘Lifebuoy Personal’.
PRODUCT POLICIES
b. Re-appraising the product line and line simplification
: TheProduct Lines are reviewed and appraisal is done in termsof
–
strengths & weaknesses as compared to competitors;whether product features are in line with
consumersdesirability; profitability for the Company.E.g. Scooters India Limited, which was
earlier into themanufacturing and marketing of Two-Wheeler (Vijay Superscooter) and Three
Wheeler (Vikram), re-appraised theirproduct lines and took a conscious decision to
discontinuethe Two Wheeler line and continue with the Three Wheelerline.
(Line Simplification)c. Re-appraising the product line and line diversification:
e.g.: Tata Engineering & Locomotive Company(TELCO)diversified from Trucks to Passenger
Cars.
d. Ideas for new products:

16. e.g. : ‘India Today’ weeklylaunches a ‘Daily Newspaper’.
PRODUCT POLICIES
3. Product Design Policy :
The two main policy decisions on product designare :a) The frequency of design
change.b) The extent to which design should be protected from copying.
This policy is very relevant in certain industries
–
like garments,automobiles, mobile phones, home appliances etc.Design Protection is
done through various Legal procedures
–
Trade Markregistration, Design Registration, Design/Process Patent, Copyright etc.Regular
design changes, in line with the current consumer preferences,goes a long way in
helping effective personal selling.
4. Product Quality and Service Policy :
‘
Khaitan
’ fans come with a seven
year
warranty
. ‘Crompton’ fans come with a two
-year motor
guarantee