Module - 1

Introduction to Sales
Management
Sales - Meaning

The exchange of goods or services for an amount of

money or its equivalent in kind
Evolution of Sales Concept
First generation (Exchange of goods)
Second generation (Store concept)
Third generation (Search of the customer started)
Fourth generation (First step to systematic selling)
Fifth generation (Need based selling)
Sixth generation (Started in 1960)
Seventh generation (Customer satisfaction came into
picture)
Selling - Nature and Role

Helps organization to achieve its goals

Enhances knowledge about both internal as well as
external environment
Information exchange among the departments
Identification of potential prospects, qualify them and
develop a long-term relationship with such customers
Selling - Image

Sales makes a vital contribution to society and the

economy, its negative image tends to overshadow the
good it does
The profession of selling is one of the most degraded,
condemned, and ridiculed professions in the society
Sales Management - Objectives

Increase sales volume

Contribute to profit
Long-term growth of organization
Improving the contribution to profit
Attaining the long term growth in market
Integrating Sales and Marketing
Management
No tandem between sales and marketing functions in an
organization
A marketing person may perceive the sales job as
One with no scope of creativity
Sales people do not understand the behavior of customers rightly
A sales person may perceive the marketing job as
Inferior because sales people make the marketing program successful
Being alienated from the actual market
A negligible communication between these two organization
Environmental Changes affecting Sales
Management
Shorter product life cycle
Longer, more complex sales cycle
Reduced customer loyalty
Intense competition among manufacturing companies
Rising customer expectation
Increasing buyer expertise
Electronic revolution in communication
Entry of Women in Sales
Management
Nowadays companies are hiring women too as a sales
personnel in selling products and services to both types of
individual as well as industrial customers
Role of Sales Manager

As a sales forecaster
As a strategic planner
As an observer of buyer behavior
A market analyst
A leader
A cost and profit analyst
A budget manager
A communicator

Sales Functions & 10

Responsibilities of Sales Manager
Hiring (recruiting sales force)
Training (Providing necessary sales training)
Coaching ( observing the training needs of sales person)
Motivating (continuous support)
Setting targets and tracking results
Recognizing and rewarding performance
Providing leads and sales support
Organizing the sales efforts
Conducting sales meetings
Allocating scares resources

Sales Functions & 11

Roles of Sales Executives
As a persuader
A service provider
An information-gatherer and reporter
An advocate
A traveler
A coordinator and scheduler
A problem definer
A customer ego builder
Arranging display for wholesaler and retailer

Sales Functions & 12

Responsibilities of Sales Executive
Identify potential customers from current data base
Identifying prospective accounts and deciding upon the
priority and frequency of making calls
Deciding upon the selling approach
Administering the sales order
Service provider
Information gathering and reporting
Skill up gradation
Administrative responsibilities

Sales Functions & 13

Policies that Impact Sales
Management
Sales-related policies pertaining to the product
Product line policy
Product design policy
Sales-related policies pertaining to the distribution
Sales-related policies pertaining to the pricing

Sales Functions & 14

Personal Selling
Personal Selling - Meaning

Personal selling is the process in which a salesperson has

a personal interaction with the customer for the purpose of
selling a product or service
It is a promotional tool in any company’s promotional
mix

Personal Selling 16
Types of Selling Jobs

Sales development
The salesperson needs to generate a perceived need for
the product in customer’s mind.

Sales maintenance
Retaining the customer for the longtime with company

Personal Selling 17
Sales Objectives

Qualitative Objectives
Effective time management
Possessing sufficient knowledge
Maintaining good customer relation
Quantitative Objectives
Increase market share
Number of sales call made
Minimize sales expenses

Personal Selling 18
Sales Force Strategies
Market access strategies
Company’s use of its own sales force
Use of distributors
Telemarketing independent sales agents
The internet
Developing hybrid marketing systems
Establishing alliances
Account relationship strategy

Personal Selling 19
Theories of Personal Selling

AIDAS theory
Buying formula theory of selling
Behavioral equation theory
Right circumstances theory

Personal Selling 20
Approaches to Personal Selling

Stimulus-response approach
Need satisfaction approach
Problem-situation approach

Personal Selling 21
Major Steps in Effective Selling

Personal Selling 22
The Personal Selling Process
Prospecting
The salesperson identifies qualified potential
customers
Pre-approach
The salesperson learns as much as possible about a
prospective customer before making a sales call
Approach
The salesperson meets the customer for the first
time
Presentation
The salesperson tells the “product story” to the
buyer, highlighting customer benefits
Personal Selling 23
The Personal Selling Process

Handling Objections
The salesperson seeks out, clarifies, and overcomes customer
objections to buying

Closing
The salesperson asks the customer for an order

Follow-up
The salesperson follows up after the sale to ensure customer
satisfaction and repeat business

Personal Selling 24
Customer Related Issue in Personal
Selling
Understanding customer types through different selling
styles
Trade selling
Missionary selling
Technical selling
New business selling

Personal Selling 25
Customer Related Issue in Personal
Selling
Finding customers
Researching customers
Communicating effectively
Providing customer services
Creating customer satisfaction

Personal Selling 26
Benefits of Sales Force Automation
Information sharing
Handling customer alerts
Reporting sales force activities
Tracking the progress of leads
Accurate routing of leads
Internet based facilities
Customer profiling
Comparison of historical data
Competitive intelligence
Sales forecasting tools

Personal Selling 27
Hiring and Training
Sales Personnel
Recruitment and Its Importance
Helps in saving cost
Helps in saving salary and other expenses
Save the image of company by selecting right people
Need to make strategies to keep the sales person for a
long time

Hiring and Training 29

Determining Specific Requirements
of Salesman
Mental Aptitude Dimension
Mental alertness
Business terms and memory recall aptitude
Communication skills
Numerically skills
Mechanical interest

Hiring and Training 30

Determining Specific Requirements
of Salesman
Personality dimension
Honesty or character
Sociability
Cynicism
High energy levels
Dominance
Competitiveness
Emotional maturity
Work habits
Work motivation

Hiring and Training 31

Sales Personnel Selection Process

Sourcing the Candidate

Screening the Candidate

Personality Test
Selection Test
Honesty Test
Background Check

Personal Interview Psychometric Test

Letters of Recommendations

Physical Examination

Making the Employment Offer

Hiring and Training 32
Importance of Sales Training

To increase the productivity of sales force

To decrease the wastage of sales force efforts
To improve the image to organization
To increase the customer relationship

Hiring and Training 33

Types of Sales Training

Initial sales training

Follow-up or refresher training
Training by the manufacturer to the distributor’s sales
force
Training by the manufacture to customer

Hiring and Training 34

 Sales Training Program

Designing Training Program

Determine the objectives of training program

Review sales activities of the organization

Determine who should be trained

Identify training needs

Determining how much training is required

Hiring and Training 35
Sales Training Program

Implementing the Centralized training

Training program
Third party training
Selecting the right Training zone
trainer
On-site training

Timing of training Training through postal

material
Satellite-delivered training
Place of training
Online training
Hiring and Training 36
 Sales Training Program

Evaluating the Training

Program

Salesperson’s reaction

Knowledge acquisition

Behavioral change/ transfer of learning

Organizational outcomes

Hiring and Training 37

Thank you