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MS-62 SALES MANAGEMENT
1. A) Discuss the role and importance of sales management function in a large sized FMCG Company with national
operations.
The role and importance of sales management function in a large sized FMCG company is mainly depending on the role of the
sales manager. So now let us concentrate on the roles of sales manager.
The Role of the Sales Manager

The two primary responsibilities of the sales managers are to achieve the company’s goals and to develop the people reporting to
them. Many sales managers operate without a sales management process. On this one day Sales Managers Masterclass the sales
manager will learn how to put in place a sales management process where he can clearly define the activities and responsibilities of
the sales force and construct a formal organisation of the sales operation. The sales manager will learn how to lead and motive his
sales team for success.
On this Masterclass the Sales Manager will learn:
• How to lead the sales force

• Manage the right things - Time and People
• Leadership Styles
• Strategic planning and budgeting
• Four Pillars of sales support
• Basics of sales approaches
• Account relationship management
• Sales ethics
• Managing the difficult employee
• Motivating sales people
• Team building
• Developing the sales culture
The Role of Sales Management:
Although the role of sales management professionals is multidisciplinary, their primary responsibilities are:
(1) setting goals for a sales-force;
(2) planning, budgeting, and organizing a program to achieve those goals;
(3) implementing the program; and
(4) controlling and evaluating the results.
Even when a sales force is already in place, the sales manager will likely view these responsibilities as an ongoing process
necessary to adapt to both internal and external changes.
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Goal Setting:
To understand the role of sales managers in formulating goals, one must first comprehend their position within the
organization. In fact, sales management is just one facet of a company's overall marketing strategy. A company's marketing program is
represented by its marketing mix, which encompasses strategies related to products, prices, promotion, and distribution. Objectives
related to promotion are achieved through three supporting functions:
(1) advertising, which includes direct mail, radio, television, and print advertisements, among other media;
(2)sales promotion, such as contests and coupons; and
(3) personal selling, which encompasses the sales force manager.
The overall goals of the sales force manager are essentially mandated by the marketing mix. The mix coordinates objectives
between the major components of the mix within the context of internal constraints, such as available capital and production capacity.
For example, the overall corporate marketing strategy may dictate that the sales force needs to increase its share of the market by five
percent over two years. It is the job of the sales force manager, then, to figure out how to achieve that directive. The sales force
manager, however, may also play an important role in developing the overall marketing mix strategies that determine his objectives.
For example, he may be in the best position to determine the specific needs of customers and to discern the potential of new and
existing markets.
One of the most critical duties of the sales manager is to accurately estimate the potential of the company's offerings. An
important distinction exists between market potential and sales potential. The former is the total expected sales of a given product or
service for the entire industry in a specific market over a stated period of time. Sales potential refers to the share of a market potential
that an individual company can reasonably expect to achieve. According to Irwin, a sales forecast is an estimate of sales (in dollars or
product units) that an individual firm expects to make during a specified time period, in a stated market, and under a proposed
marketing plan.
Estimations of sales and market potential are often used to set major organizational objectives related to production,
marketing, distribution, and other corporate functions, as well as to assist the sales manager in planning and implementing his overall
sales strategy. Numerous sales forecasting tools and techniques, many of which are quite advanced, are available to help the sales
manager determine potential and make forecasts. Major external factors influencing sales and market potential include: industry
conditions, such as stage of maturity; market conditions and expectations; general business and economic conditions; and the
regulatory environment.
Planning, Budgeting and Organising:
After determining goals, the sales manager must develop a strategy to attain them. A very basic decision is whether to hire a
sales force or to simply contract with representatives outside of the organization. The latter strategy eliminates costs associated with
hiring, training, and supervising workers, and it takes advantage of sales channels that have already been established by the
independent representatives. On the other hand, maintaining an internal sales force allows the manager to exert more control over the
salespeople and to ensure that they are trained properly. Furthermore, establishing an internal sale force provides the opportunity to
hire inexperienced representatives at a very low cost.
The type of sales force developed depends on the financial priorities and constraints of the organization. If a manager decides
to hire salespeople, he needs to determine the size of the force. This determination typically entails a compromise between the number
of people needed to adequately service all potential customers and the resources made available by the company. One technique
sometimes used to determine size is the "work load" strategy, whereby the sum of existing and potential customers is multiplied by the
ideal number of calls per customer. That sum is then multiplied by the preferred length of a sales call (in hours). Next, that figure is
divided by the selling time available from one sales person. The final sum is theoretically the ideal sales force size. A second
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technique is the "incremental" strategy, which recognizes that the incremental increase in sales that results from each additional hire
continually decreases. In other words sales people are gradually added until the cost of a new hire exceeds the benefit.
Other decisions facing a sales manager about hiring an internal sales force are what degree of experience to seek and how to
balance quality and quantity. Basically, the manager can either "make" or "buy" his force. Young hires, or those whom the company
"makes," cost less over a long term and do not bring any bad sales habits with them that were learned in other companies. On the other
hand, the initial cost associated with experienced sales people is usually lower, and experienced employees can start producing results
much more quickly. Furthermore, if the manager elects to hire only the most qualified people, budgetary constraints may force him to
leave some territories only partially covered, resulting in customer dissatisfaction and lost sales.
After determining the composition of the sales force, the sales manager creates a budget, or a record of planned expenses that
is (usually) prepared annually. The budget helps the manager decide how much money will be spent on personal selling and how that
money will be allocated within the sales force. Major budgetary items include: sales force salaries, commissions, and bonuses; travel
expenses; sales materials; training; clerical services; and office rent and utilities. Many budgets are prepared by simply reviewing the
previous year's budget and then making adjustments. A more advanced technique, however, is the percentage of sales method, which
allocates funds based on a percentage of expected revenues. Typical percentages range from about two percent for heavy industries to
as much as eight percent or more for consumer goods and computers.
After a sales force strategy has been devised and a budget has been adopted, the sales manager should ideally have the
opportunity to organize, or structure, the sales force. In general, the hierarchy at larger organizations includes a national or
international sales manager, regional managers, district managers, and finally the sales force. Smaller companies may omit the
regional, and even the district, management levels. Still, a number of organizational considerations must be addressed. For example:
• Should the force emphasize product, geographic, or customer specialization?

• How centralized will the management be?
• How many layers of management are necessary?
The trend during the 1980s and early 1990s was toward flatter organizations, which possess fewer levels of management, and
decentralized decision-making, which empowers workers to make decisions within their area of expertise.
Implementing:
After goal setting, planning, budgeting, and organizing, the sales force plan, budget, and structure must be implemented.
Implementation entails activities related to staffing, designing territories, and allocating sales efforts. Staffing, the most significant of
those three responsibilities, includes recruiting, training, compensating, and motivating sales people.
Before sales managers can recruit workers to fill the jobs, they must analyze each of the positions to be filled. This is often
accomplished by sending an observer into the field. The observer records time spent talking to customers, traveling, attending
meetings, and doing paperwork. The observer then reports the findings to the sales manager, who uses the information to draft a
detailed job description. Also influencing the job description will be several factors, chiefly the characteristics of the people on which
the person will be calling. It is usually important that salespeople possess characteristics similar to those of the buyer, such as age and
education.
The manager may seek candidates through advertising, college recruiting, company sources, and employment agencies.
Candidates are typically evaluated through personality tests, interviews, written applications, and background checks. Research has
shown that the two most important personality traits that sales people can possess are empathy, which helps them relate to customers,
and drive, which motivates them to satisfy personal needs for accomplishment. Other factors of import include maturity, appearance,
communication skills, and technical knowledge related to the product or industry. Negative traits include fear of rejection, distaste for
travel, self-consciousness, and interest in artistic or creative originality.
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After recruiting a suitable sales force, the manager must determine how much and what type of training to provide. Most
sales training emphasizes product, company, and industry knowledge. Only about 25 percent of the average company training
program, in fact, addresses personal selling techniques. Because of the high cost, many firms try to reduce the amount of training. The
average cost of training a person to sell industrial products, for example, commonly exceeds $30,000. Sales managers can achieve
many benefits with competent training programs, however. For instance, research indicates that training reduces employee turnover,
thereby lowering the effective cost of hiring new workers. Good training can also improve customer relations, increase employee
morale, and boost sales. Common training methods include lectures, cases studies, role playing, demonstrations, on-the-job training,
and self-study courses.
After the sales force is in place, the manager must devise a means of compensating individuals. The main conflict that must
be addressed is that between personal and company goals. The manager wants to provide sufficient incentives for salespeople but also
must meet the division's or department's goals, such as controlling costs, boosting market share, or increasing cash flow. The ideal
system motivates sales people to achieve both personal and company goals. Good salespeople want to make money for themselves,
however, a trait which often detracts from the firm's objectives. Most approaches to compensation utilize a combination of salary and
commission or salary and bonus.
Although financial rewards are the primary means of motivating workers, most sales organizations employ other motivational
techniques. Good sales managers recognize that sales people, by nature, have needs other than the basic physiological needs filled by
money: they want to feel like they are part of winning team, that their jobs are secure, and that their efforts and contributions to the
organization are recognized. Methods of meeting those needs include contests, vacations, and other performance based prizes in
addition to self-improvement benefits such as tuition for graduate school. Another tool managers commonly use to stimulate their
workers is quotas. Quotas, which can be set for factors such as the number of calls made per day, expenses consumed per month, or
the number of new customers added annually, give salespeople a standard against which they can measure success.
In addition to recruiting, training, and motivating a sales force to achieve the sales manager's goals, managers at most
organizations must decide how to designate sales territories and allocate the efforts of the sales team. Many organizations, such as real
estate and insurance companies, do not use territories, however. Territories are geographic areas such as cities, counties, or countries
assigned to individual salespeople. The advantage of establishing territories is that it improves coverage of the market, reduces
wasteful overlap of sales efforts, and allows each salesperson to define personal responsibility and judge individual success.
Allocating people to different territories is an important sales management task. Typically, the top few territories produce a
disproportionately high sales volume. This occurs because managers usually create smaller areas for trainees, medium-sized territories
for more experienced team members, and larger areas for senior sellers. A drawback of that strategy, however, is that it becomes
difficult to compare performance across territories. An alternate approach is to divide regions by existing and potential base. A
number of computer programs exist to help sales managers effectively create territories according to their goals.
Controlling and Evaluating:
After setting goals, creating a plan, and setting the program into motion, the sales manager's responsibility becomes
controlling and evaluating the program. During this stage, the sales manager compares the original goals and objectives with the actual
accomplishments of the sales force. The performance of each individual is compared with goals or quotas, looking at elements such as
expenses, sales volume, customer satisfaction, and cash flow. A common model used to evaluate individual sales people considers
four key measures: the number of sales calls, the number of days worked, total sales in dollars, and the number of orders collected.
The equation below can help to identify a deficiency in any of these areas:
An important consideration for the sales manager is profitability. Indeed, simple sales figures may not reflect an accurate
image of the performance of the overall sales force. The manager must dig deeper by analyzing expenses, price-cutting initiatives, and
long-term contracts with customers that will impact future income. An in-depth analysis of these and related influences will help the
manager to determine true performance based on profits. For use in future goal-setting and planning efforts, the manager may also
evaluate sales trends by different factors, such as product line, volume, territory, and market.
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After the manager analyzes and evaluates the achievements of the sales force, that information is used to make corrections to
the current strategy and sales program. In other words, the sales manager returns to the initial goal-setting stage.
Environment and Strategies:
The goals and plans adopted by the sales manager will be greatly influenced by the industry orientation, competitive position,
and market strategy of the overall organization. It is the job of sales managers, or people employed in sales-management-related jobs,
to ensure that their efforts coincide with those of upper-level management.
The basic industry orientations are industrial goods, consumer durables, consumer nondurables, and services. Companies or
divisions that manufacture industrial goods or sell highly technical services tend to be heavily dependent on personal selling as a
marketing tool. Sales managers in those organizations characteristically focus on customer service and education, and employ and
train a relatively high-level sales force. Sales managers that sell consumer durables will likely integrate the efforts of their sales force
into related advertising and promotional initiatives. Sales management efforts related to consumer nondurables and consumer services
will generally emphasize volume sales, a comparatively low-caliber sales force, and an emphasis on high-volume customers.
Michael Porter's well-received book Competitive Strategy lists three common market approaches that determine sales
management strategies: low-cost supplier; differentiation; and niche. Companies that adopt a low-cost supplier strategy are usually
characterized by a vigorous pursuit of efficiency and cost controls. A company that manufactures nails and screws would likely take
this approach. They profit by offering a better value than their competitors, accumulating market share, and focusing on high-volume
and fast inventory turn-over. Sales management efforts in this type of organization should generally stress the minimizing of expenses
—by having sales people stay at budget hotels, for example—and appealing to customers on the basis of price. Sales people should be
given an incentive to chase large, high-volume customers, and the sales force infrastructure should be designed to efficiently
accommodate large order-taking activities.
Companies that adhere to a differentiation strategy achieve market success by offering a unique product or service. They
often rely on brand loyalty or a patent protection to insulate them from competitors and, thus, are able to achieve higher-than-average
profit margins. A firm that sells proprietary pharmaceuticals would likely use this method. Management initiatives in this type of
environment would necessitate selling techniques that stressed benefits, rather than price. They might also entail a focus on high
customer service, extensive prospecting for new buyers, and chasing customers that were minimally sensitive to price. In addition,
sales managers would be more apt to seek high-caliber sellers and to spend more money on training.
Firms that pursue a niche market strategy succeed by targeting a very narrow segment of a market and then dominating that
segment. The company is able to overcome competitors by aggressively protecting its niche and orienting every action and decision
toward the service of its select group. A company that produced floor coverings only for extremely upscale commercial applications
might select this approach. Sales managers in this type of organization would tend to emphasize extensive employee training or the
hiring of industry experts. The overall sales program would be centered around customer service and benefits other than price.
In addition to the three primary market strategies, Raymond Miles and Charles Snow claim that most companies can be
grouped into one of three classifications based on their product strategy: prospector, defender, and analyzer. Each of these product
strategies influences the sales management role. For example, prospector companies seek to bring new products to the market. Sales
management techniques, therefore, tend to emphasize sales volume growth and market penetration through aggressive prospecting. In
addition, sales people may have to devote more time to educating their customers about new products.
Defender companies usually compete in more mature industries and offer established products. This type of firm is likely to
practice a low-cost producer market strategy. The sales manager's primary objective is to maintain the existing customer base,
primarily through customer service and by aggressively responding to efforts by competitors to steal market share.
Finally, analyzer companies represent a mix of prospector and defender strategies. They strive to enter high-growth markets while still
retaining their position in mature segments. Thus, sales management strategies must encompass elements used by both prospector and
defender firms.
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Regulation:
Besides markets and industries, another chief environmental influence on the sales management process is government
regulation. Indeed, selling activities at companies are regulated by a multitude of state and federal laws designed to protect consumers,
foster competitive markets, and discourage unfair business practices.
Chief among anti-trust provisions affecting sales managers is the Robinson-Patman Act, which prohibits companies from
engaging in price or service discrimination. In other words, a firm cannot offer special incentives to large customers based solely on
volume, because such practices tend to hurt smaller suppliers. Companies can give discounts to buyers, but only if those incentives are
based on savings gleaned from manufacturing and distribution processes.
Similarly, the Sherman Act makes it illegal for a seller to force a buyer to purchase one product (or service) in order to get
the opportunity to purchase another product, a practice referred to as a "tying agreement." A long-distance telephone company, for
instance, cannot necessarily require its customers to purchase its telephone equipment as a prerequisite to buying its long-distance
service. The Sherman Act also regulates reciprocal dealing arrangements, whereby companies agree to buy products from each other.
Reciprocal dealing is considered anticompetitive because large buyers and sellers tend to have an unfair advantage over their smaller
competitors.
Also, several consumer protection regulations impact sales managers. The Fair Packaging and Labeling Act of 1966, for
example, restricts deceptive labeling, and the Truth in Lending Act requires sellers to fully disclose all finance charges incorporated
into consumer credit agreements. Cooling-off laws, which commonly exist at the state level, allow buyers to cancel contracts made
with door-to-door sellers within a certain time frame. Additionally, the Federal Trade Commission (FTC) requires door-to-door sellers
who work for companies engaged in interstate trade to clearly announce their purpose when calling on prospects.
What do understand by the term ‘Salesmanship’? Elaborate
Salesmanship:
Definition: Salesmanship is an art of influencing another person for the object of persuading him to buy specific product. It may
be regarded as the process of winning the confidence of consumer. According to whitehead "It is a method regard to the desirability of
some article, service of idea." Salesmanship may also refer to convincing a customer by certain technique and he is really persuaded
for buying the particular product.
Importance:
Salesmanship helps to create demand for new products or new brands. It influences to change in patronage from one source
of supply to another which results concentration of purchases of specific product.
As it wins the buyer's confidence so it helps to make regular and permanent customers.
The person who is engaged in convincing the public desirability of a specific product is called salesman. He informs the
customers about the usefulness ofcommodity with a view to inducing him to buy the goods.
He establishes the good will of firm in the market. So the sales volume may easily be increased.
He constantly observes the fashion, taste, like and dislike of customers and informs the producer about their choice.
He helps to establish close relationship between the manufacturer and consumer.
Importance of salesmanship
Before the Industrial Revolution, the goods were purchased in small quantities. They are sold in the local market without any
problem. After the Industrial Revolution, the position is entirely changed. The goods are purchased in large scale.
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There is a keen competition among the producers of the goods. Each manufacturer tries to outbid other from the market. In
order to survive in the market, the manufacturers must know the promotional strategy of the market. Selling is no more if or miss
business. It is an art of influencing people, persuading them to purchase the product.
With the revolution in the means of transport, the importance of sales function has further increased. Goods are produced not
only for selling in the home market but also in different other countries. There too, the manufacturers face stiff competition.
The success of business now depends as to how well the goods are sold in the market. Salesmanship can be defined as the art
of personal persuasion employed to induce others to buy. In other words, according to Prof. Whitehead,"Salesmanship is the art of so
presenting an offer that the prospects appreciate the need for it and a mutually satisfactory sale follows."
Salesmanship is a personal action or effort on the part of an individual which is intended to bring about the sale of the goods for
sale. More broadly speaking, salesmanship is the art of selling something to somebody, and everything which contributes to the
consummation of this exchange is necessarily a part of salesmanship.
Salesmanship differs from demonstration in that the latter may not include the former, and it is like demonstration because good
salesmanship usually includes some form of demonstration. Salesmanship is not unlike the plea of the lawyer before the court or the
jury. Both contain arguments; and, in both cases, the presenter, either of arguments or of goods or of both, is attempting to make the
party addressed do what he asks him to do.
On the one hand there is something for sale, whether it be a life insurance policy, an automobile, a suit of clothes, or a barrel of
potatoes. The owner of what is for sale, or his representative, desires to sell what he has to somebody who wants it or can be made to
want it. To do this, he employs every method which will in any way influence the buyer, including printed matter, e-mail, websites,
pay-per-click advertising, television commercials, radio ads, handsome office fittings, and, most important of all, a proper presentation
of the thing for sale adding personality and voice to the selling argument.
The salesman exists for two reasons: first, custom; secondly, because it is obvious that even the best informed buyer cannot know
everything, and the well- posted salesman is in a position to give him information about the article for sale. There is opportunity for a
discussion person-to-person, and for the presentation of argument; and this information and these arguments cannot be given with any
degree of fullness by the printed page or advertisement. Or, if they could be, they would not even then take the place of personal
information-giving and custom-made argument.
Salesmanship cannot be analyzed with chemical or other exactness. To define it, to separate it into its component parts, would be
as difficult as it would be to analyze ability and to tell what it consists of. Yet we all know what salesmanship is, and we are able to
measure the results of its qualities and quantities.
Have you ever had a customer buy WAY more product than he needs ?What would you do? Would you leave him to his own
devices, or would you hunker down and help ?
What if he had bought 10 times more than he could use in a year ? Then what would you do
Would you try to forget the whole thing, try and justify letting them drown in the pool of their mistake? Would you take back some of
the surplus? Or would you get in there and help that customer find new avenues for selling the surplus? I’d choose that route and
here’s why. If you can help the customer sell 10 times more than they need once, there’s a good chance that they’ll be able to sell
somewhere close to that amount again. They’ll also feel a unique bond with you, which should parlay into more sales in the future.
And you can use that same avenue with other customers in other areas and hopefully put a strain on your manufacturing
division and become a sales hero.
The last time I had the good fortune to have a customer buy WAY too much product, I checked into a hotel and worked with
them every day for a week.
Write new ads, built displays, came up with a few promotions, called radio stations and worked the phones and sales desk.
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Within a week, we had sold all his stock. The customer was relieved and I was enlightened.
I’ve oversold several customers since then. Then I moved in and moved the product out the door! THAT is
salesmanship.
2 a) Explain the different types of selling skills that a salesperson should posses in order to discharge his/her core
responsibilities effectively.
Selling Technique:
Selling technique is the body of methods used in the profession of sales, also often called personal selling. Techniques used
in selling interviews vary from the highly customer centric consultative selling to the heavily pressured "hard close".
All techniques borrow a bit from experience and mix in a bit of guesswork on the psychology of what motivates others to buy
something offered to them. Mastery in the techniques of selling can offer very high incomes, while failure in it is nearly proverbial.
Coverage of the latter is popularized in works such as Death of a Salesman.
Because selling faces a high level of rejection, it is often difficult for the practitioner to handle emotionally, and is usually
cited as the most common reason for leaving the profession. Because of this many selling and sales training techniques involve a lot of
motivational material.
The Various Steps:
A selling interview based on counseling needs to be done in several steps, in a consistent order, from the identification of the
needs to a close in which the prospect accepts the seller's proposal. The following is an example of such steps, however the list is not
exhaustive, nor would all strategies include all of the following. For example, the Sandler approach takes a relatively unusual stance
when it comes to objections. While many sales techniques offer specific advice on how to handle objections and stalls, Sandler
suggests that only the objecting client is able to remove the objection.
 Prospecting
 Referrals
 Qualifying
 Sales Presentation
 Questions
 Selling the sizzle
 Closing
 Pre-closing questions
 Tie downs
 Handling objections
 Handling prospect attitudes
 Confidence
 Empathy
 Reading people
Some Requisites:
Good selling involves asking questions to elicit the prospect's needs and desires and finding the
appropriate product or service that meets those needs and that the prospect is willing to pay for. If good prospecting (qualifying) is
done, then the prospect may already be well suited to the product or service and the salesperson simply needs to lead the prospect to
act on the desires and needs he/she has. A good salesperson is much more knowledgeable about their product or service than the
prospect could ever likely be and can offer valuable information and insight to the decision making process.
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Several universities now offer courses, or degrees, in selling. The annual National Collegiate Sales Competition is held at
Kennesaw State University. This event draws student contestants from Canada, the USA and Mexico.Establishing a good first
impression is the singular most important part of a sales presentation. Basically, being in the
cleaning business dictates its own statement; you must appear clean. All vehicles must be neat
and clean, the ttechnicians and equipment, likewise, should be a statement of cleanliness. A
businesslike approach with a friendly attitude is needed to make a customer feel at ease during
a sales presentation. .ACY sales brochures are a must. A method of displaying services and
products for your customers to review helps to organize a sales proposal. During the time you
spend measuring and inspecting, a sales brochure is working like a second salesman with your
client. I have often gone back and measured twice for my literature to do its work. Further
into a sales presentation, pictures can be great assets as visual aids. The technical equipment
which we are so familiar with is often foreign to most customers.
Even after a sales that old "buyer's remorse" can be put aside with a brochure that reaffirms the values gained for the dollar
proposal. Many times a sales presentation is only done for half of a decision making team. When the husband or wife needs to review
a job quote, without the salesperson present, a sales brochure will help reiterate the fact behind the figures.
There are many techniques that can be used to gain a sales in the cleaning business. There are probably as many methods as
there are different types of personalities. Keep in mind the main objective in a sale is that all parties concerned need to experience that
winning feeling. I have learned that it's easier to have a person buy a product or service from me, than it is to sell it to them. Simply
advocate the positive features of your service. Let them tally up the benefits they can acquire by dealing with you. Your objective
should be as a helpful technical advisor. Now your customer can make an educated decision for themselves. Allowing the consumer
to be their own judge makes them comfortable with their decision.
A well thought out program of the proper questions can methodically build a sale best suited to your customer's particular
situation. By seeking out the basic wants and needs of a customer, you can tailor a package of services best suited for them.
Explanations of the pros and cons of various products and/or services will help the consumer make a smart decision, for both of you. It
is our responsibility to know the products and materials we work with thoroughly. This means their capabilities and limitations.
Conveying this knowledge to others will help establish their confidence in your abilities. The fact that we must sell a cleaning package
of services without showing what the end result might look like is by itself an intriguing concept. So you see, you must first sell
yourself then back up your promises.
Communication skills must be developed constantly. There are always different people with different problems for you to
solve. A subtle approach of questions and answers allows the consumer to participate. Planting seeds for thought is the way I like to
describe it. All of those "add-ons" should be discussed up front. This will allow the customer to consider them or, at least, have
questions about them ready for later. I begin my preparation to close with the initial phone contact. At the ed of a sale, more times
than not, the dollar amount is hard to rise again and again. If the need and benefits of a product warrant it's purchase, all you have to
do is offer it. Let the customer decide what they are comfortable spending. Remember you don't have to sell! Just demonstrate the
benefits and offer your products and services with confidence.
Once you and your company have been received in the home of your customer, don't stop selling yourself. Maintain a
friendly rapport all year round. Send thank you and reminders to keep them thinking of you. Be sure that they are aware of any other
services you have to offer. Basically sell, sell and sell!
b. Trace the reasons for the rapid growth in retail communication since the last one decade in the Indian business
environment.
The reasons for the rapid growth in retail communication
Retail Scenario in India
The Indian retail industry is currently estimated to be US $ 350 billion. Organized retailing is a mere 5% of it and US $ 17
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billion now. It has been growing at 20% every year since 2000-2001 as the Indian consumer now exercises choice preferences and
demands value for money. Organized retailing is projected to reach US$ 23 billion by 2010 according to management consultants AT
Kearney in their 'Global Retail Development Index (GRDI) 2006.' According to them India has remained the most attractive retail
investment destination among 30 emerging markets.
These projections have foreign retailers like Wal-Mart, Carrefour SA, and Tesco Plc, the largest retailers from the US,
Europe and UK respectively getting ready to commence operations here. Given the momentum in this sector, one is likely to see
tremendous growth and fierce competition driven by innovative business models, formats, services and the overall product offerings.
Retailing as a Career
With big players in the sector, a career in retailing is certainly more appealing now than it was a few years ago. Retailers are
now looking for bright, motivated and capable individuals who can provide the necessary impetus to the industry in response to
growing competition and innovation. This has increased the demand for specially trained employees. Retailers are offering a slew of
benefits, comfortable working conditions, and opportunities for career and educational advancement to attract talented employees.
Managing a retail organization is a challenging job. Customer focus, product differentiation, innovation and brand
management are critical. A retailing professional has to multitask as an economist, a fashion expert, IT manager, financial analyst,
distribution- logistics and supply chain manager, real estate manager apart from being a competent marketing and merchandising
person with the ability of carrying a team forward. No other occupation, perhaps, offers such a wide array of opportunities and
challenges as retailing. Even though it is at a nascent stage in India, it is expected to become the second largest employer, after
agriculture overtaking the information technology (IT) and information technology enabled sector (ITES).
The store manager or management team is responsible for departmental or overall establishment. Store planning and
management, merchandise planning and management, staffing, administration, and financial functions are important functional areas
for retailers. Management positions can be earned through experience or a specialized college degree.
Retail Communication
Retailers and manufacturers compete amongst themselves to get a piece of customers’ wallet. Communication from the
manufacturers creates an impact till outside the store and thus creates a strong brand preference even before a shopper visits the store.
There is a difference in the communication objective of manufacturers and retailers. Manufacturers aim at strong brand preference for
their products while retailers’ objective is to get the shoppers in their stores. Consumers have developed a ‘hand-raising’ attitude
towards marketing in general as a reaction to the increasing amount of information they are receiving and the decreasing amount of
time they have to process it. When they’re ready to buy, they will seek out the information and look for easy ways to access it.
The Internet and P-O-P are among the beneficiaries of this trend. Some of the very good options for advertising offered by
retailers within the retail space are the following:
1. Events: Retail spaces are designed for offering the atriums and other spaces for conduct of events. Events are a craze in the
mall based urban culture. They play an important part in the Below the Line (BTL) promotions. They can generate trials and samples.
2. Space on Hire (SOH): Space on Hire (SOH) is the latest trend catching up with retailers with large format retailing.
Though the costs are high, brands are willing to pay premium prices to get the right place inside the store or mall to put across his
message. Within the store various spaces are available to carry messages offering a three dimensional use of retail space.
3. Kiosk Cafes: One of the latest media being added to the retailers and brand marketers arsenal is the kiosk internet cafes.
Set up within a large format retail establishment like a mall or a large shopping center or a public place the kiosk operator offers free
internet surfing to shoppers. As the potential shopper surfs the net or checks and responds to emails, advertising messages in a non
intruding manner stream through on the screen offering information on special offers and schemes that may be on offer within the
premises or at neighborhood retail establishments. Apart from these, there are In-Store Audio-Visual Communication facilities
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available in various retail stores which can also be used to communicate effectively with the consumers who spend a lot of time in
today in retails stores and malls.
Two of the most important modes of this kind are:
1. Retail TVs: Numbers of retailers have shown great innovation by installing TV sets at strategic locations within the store.
This can add to the recall of the place that they are shopping. More bold retailers have started appointing retail jockeys, similar to
radio jockeys that conduct entertainment and retail communications programs within the store environment.
2. Digital Signages: Digital Signage is a mechanism for distribution of digital media by allowing motion pictures, graphics,
scrolling text and audio to be displayed simultaneously at multiple locations using high definition digital displays, standard displays,
plasma displays or large LED displays.
These enable store owners to install channels of digital signage displays that deliver specific departmental advertising
focused at the customer at the critical last mile of the Retail buying decision, the point-of-purchase. The above mentioned
communication mediums can be included under a broad frame work of Point of Purchase. They allow retailers to focus on delivering
the RIGHT message to the RIGHT audience at RIGHT time Changing Scenario Point-of-purchase (P-O-P) advertising is not just one
of the oldest forms of advertising; it has evolved to become one of the most powerful, most effective media available to marketers. It
is uniquely effective as a marketing communications tool because it presents the brand message at precisely the right moment - when
the consumer is in the store, actively engaged in the process (both mentally and physically) of purchasing a product.
This is a decided advantage for P-O-P advertising, as all other media depend upon the consumer’s memory being effective at
the point of sale. P-O-P is the means to influence the ‘Last 3 feet’ before consumer makes the decision. Marketing research on impulse
purchases, conducted to determine how consumers behave, has found many influences on the purchase decision. Factors such as
anxiety level, physical surroundings, and whether or not the shopper is alone can influence the purchase’s-O-P is a tool consumers use
and then forget. It is also a tool that fills very specific consumer need states that may or may not be present at the time of exposure.
Constituents of the Industry Vertical Any form of advertising, signage or communication within a retail environment that is
designed to influence or assist the consumer in locating or purchasing a product or service is termed as P-O-P. It is important to
differentiate a P-O-P from P-O-S here. P-O-P is where the shopper makes a buying decision and P-O-S (Point of sale) is where
shoppers make the transaction.P-O-P in India was essentially a complimentary tool, absolute spend levels were low; didnot get much
attention from marketer or communication agency. Budget allocations were adhoc. Though the industry is still in nascent stage it is
growing fast.
The main players in the business the client or the Brand marketer: Brands are the engines of modern marketing. In this
capacity, brands have become the focal point of all marketing communication and promotion efforts. With changing power equations
between the marketer and the retailer, and growing competition, it has become increasingly important for a brand to be present where
it matters the most, at P-O-P. This has led to a change in attitude of brand marketers. The Retailer: There is no mass in the mass media
these days. There are increasing instances of people switching channels or muting advertisements. These consumers can be reached by
P-O-P. Relationships between the brand marketer and the retailer have become critical to the success of both parties: brand marketers
need the retailer to reach the consumer. Conversely, the retailer needs brand marketers to supply them with product that is timely and
relevant to their customer. The Design agencies/P-O-P Agencies: The P-O-P firms that specialize in design, development, and
engineering of P-O-P are specialists in understanding all of the challenges of creating point-of-purchase displays. As P-O-P displays
become more high tech and require more sophisticated design expertise, brand marketers and retailers are increasingly looking for
suppliers who understand the total P-O-P solution—from design through installation.
The Manufacturers: From the simple shelf dangler to the most complex interactive display, the manufacture of displays and
in-store marketing vehicles is the next player in the value chain. The evaluation of a display company should be focused on its ability
to service the needs of its customers, its creativity, its experience, its existing client base, how well it can meet the budget, and its track
record on past promotions. The Emerging trader: These are the small traders, either the retailer side or the suppliers for the materials
required for the production of P-O-P. The Retail Solutions Companies: The retail marketing consultants service not only retailer but
also the marketer. They could be full service agencies, i.e. from ideation to design to production or specialize in any of these areas.
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Other services: Research and Marketing Know-How- Research and marketing knowledge are essential parts of the core services that
P-O-P manufacturers and direct brokers provide. Typically, brand marketers, retailers, and producers/ suppliers are all interested in
trends relative to consumer-buying behavior.
3 a) Discuss the importance of compensation and its influence on the sales force performance and productivity with suitable
illustrations.
A. Importance of a Good Sales Force

There are various things to consider when searching for a good sales force.
Growing Your Business
1. A good sales force will meet and exceed its sales goals. In doing so, your company will see a consistent growth in profits.
Building Client Loyalty
2. A good sales force is loyal to its company, and loyal salespeople often attract loyal clients. Clients also prefer to work with
professionals who know their product.
Department Morale
3. Good sales professionals earn the respect of their peers by working hard. Work environments that foster mutual respect have
high morale and are more productive.
Lower Cost to the Company
4. A good sales force works efficiently. Efficient employees understand that their salaries are investments, and will make good
use of their time. This will lower the cost involved in running your department and help you keep your department's expenses
under budget.
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Building Your Reputation
5. If you hire an excellent sales force, its stellar performance will be viewed as a reflection of your talents. This will help you
maintain job security, and it will assist you with career advancement at the appropriate time
Key Performance Indicators for Sales Force Performance Management
The series of blog posts on Marketing Performance Measurement continues in 2010 with an insight on sales force
management, as part of the front-end facet of the marketing process.
Sales force and sales channel management is a crucial part of marketing, especially when dealing with a push approach
towards the marketplace. Monitoring the effectiveness of the sales system is essential for business as on its success relies the future of
the business.
Category 1. Sales force efficiency
It represents a generic name for metrics used for monitoring salesperson or sales team performance by means of various
criteria, such as calls or contacts made, accounts (potential, activated, re-activated), revenue generated etc. Examples:
% Agent utilization
$ Revenue per successful call
# Hourly sales
Category 2. Sales compensation
Compensation measures the amount of payments made to a sales person or to a sales team. Sales force is usually
compensated by bonuses or commissions, added to the baseline salary, and those are proportional to their sales results. Monitoring
compensation spending is important as it helps assessing whether progress of the sales crew is in accordance to the set goals and the
costs associated with their activity are generating the results desired.
Category 3. Sales goals or objectives
In accordance to their compensation, sales people have to meet sales goals, representing the sales target for the following
period, as is follows:
$ Sales goal = % Share of the sales person in the territory in the prior year * $ Forecated sales in the territory
Goals are set to motivate sales people and establish benchmarks, but set too high or too low would make the effort of no relevance
and even damaging. Thus, some rules have to be followed when setting sales goals so as they are SMART:
• Specific to a sales person/team/territory

• Measurable in numbers
• Achievable considering the resources of the person/team and the market potential,
• Realistic so as not to be considered too high and
• Time-bound, attainable in a clear time-frame, with a precise deadline.
Example: % Sales quota attainment

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Category 4. Sales workload
The workload of the sales person/team should be taken into consideration when setting sales goals and providing sales
compensation. Workload generally defines the amount of work of a person/team and, in the context of sales, this it influenced by the
number of active accounts that need to be served, on one hand, and the number of potential accounts that are targeted, on the other
hand:
# Sales workload = (# Active accounts * # Average time to serve an active account) + (# Potential accounts * # Average time to
convert a prospect into an active account)
Successful sales people bring in lots of deals, no matter at what cost. Productive sales people bring in lots of high-profit
deals, at manageable costs, retain more customers, and are happier at their jobs. Here are the Ten Golden Rules of Sales Force
Productivity.
SALES FORCE PRODUCTIVITY:
1. Know what your selling time is worth. It's worth a whole lot more than your billable hours, your payroll, or your commission
check. Selling time is Opportunity Value - and it's probably worth $1,100 an hour or more.
2. Selling time is an investment. Don't bet an $1100 hour on a $100 win.
3. Be selective with your prospects. Choose prospects that match your ideal customer; otherwise you'll blow more of those expensive
hours.
4. Time spent qualifying the right customer beats time spent flogging the wrong customer.
5. If you're going to lose, lose early. With good qualifying skills, you can find out if the prospect is worth the effort, early in the
relationship. Walk away before you invest in a demo, proposal, or negotiations.
6. Take NO for an answer. If the prospect's not right for you, don't pursue it.
7. It's NOT all about the money. Money is the result of your effort, not the goal.
8. It IS all about the customer. If the customer wants what you've got, you'll succeed - as long as you focus on delivering value.
9. Create metrics. Set targets for all aspects of the sales process. If you can't measure it you can't manage it. And if you can't manage
it, you can't improve it.
10. Track performance. Once you set your targets and metrics, track performance relentlessly. Be honest with yourself.
These are the importance of compensation and its influence on the sales force performance and productivity that which has to
be followed in a company.
b. Explain the need and purpose of monitoring system in an Enterprise where personal selling is extensively used in promoting
the firm’s products.
Personal selling is the process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a
product or service. The main thing that sets personal selling apart from other methods of selling is that the salesperson conducts
business with the customer in person. Though personal selling is more likely to be effective with certain types of products or services,
it has important applications for nearly all kinds of small businesses. In fact, most of history's successful entrepreneurs have been
skilled salespeople, able to represent and promote their companies and products in the marketplace.
Personal selling is one part of a company's promotion mix, along with advertising, sales promotion, and public relations.
Advertising is any form of paid sales presentation that is not done face-to-face. Television and radio commercials, newspaper and
magazine advertisements, and direct mail inserts are well-known forms of advertising. Sales promotion is the use of incentives—such
as coupons, discounts, rebates, contests, or special displays—to entice a customer to buy a product or service. Public relations is the
act of building up a company's image in the eyes of the community in the hopes of translating the feelings of goodwill into sales. An
example of public relations might include a company sponsoring a charity event.
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Personal selling offers entrepreneurs both advantages and disadvantages in comparison with the other elements of the
promotion mix. On the positive side, personal selling allows the salesperson to target the message specifically to the audience and
receive immediate feedback. In this way, it is more precise than other forms of promotion and often has a greater persuasive impact.
Conversely, personal selling cannot reach as many potential customers as advertising, plus the cost of each contact is much higher.
Another advantage is that personal selling can be an important source of marketing information. Salespeople may learn about
competitors' products, for example, or about emerging customer needs that may lead to the development of a new product. If the sales
force is well trained—acting as problem solvers and advisors for customers rather than using hard-sell tactics—personal selling may
help a small business build loyal, long-term relationships with customers.
A small business may choose to use any or all of the promotion mix elements in selling its products. Deciding how to allocate
resources for each component involves a number of factors. Some of the things entrepreneurs should consider when deciding on the
ideal promotion mix include the type of product or service, the value of the product or service, and the budget allotted for marketing.
NEED:
Personal selling is used to meet the promotion in the following ways:
• Building Product Awareness – A common task of salespeople, especially when selling in business markets, is to educate
customers on new product offerings. In fact, salespeople serve a major role at industry trades shows (see the Sales Promotion
tutorial) where they discuss products with show attendees. But building awareness using personal selling is also important in
consumer markets. As we will discuss, the advent of controlled word-of-mouth marketing is leading to personal selling
becoming a useful mechanism for introducing consumers to new products.
• Creating Interest – The fact that personal selling involves person-to-person communication makes it a natural method for
getting customers to experience a product for the first time. In fact, creating interest goes hand-in-hand with building product
awareness as sales professionals can often accomplish both objectives during the first encounter with a potential customer.
• Providing Information – When salespeople engage customers a large part of the conversation focuses on product
information. Marketing organizations provide their sales staff with large amounts of sales support including brochures,
research reports, computer programs and many other forms of informational material.
• Stimulating Demand – By far, the most important objective of personal selling is to convince customers to make a purchase.
In The Selling Process tutorial we will see how salespeople accomplish this when we offer detailed coverage of the selling
process used to gain customer orders.
• Reinforcing the Brand – Most personal selling is intended to build long-term relationships with customers. A strong
relationship can only be built over time and requires regular communication with a customer. Meeting with customers on a
regular basis allows salespeople to repeatedly discuss their company’s products and by doing so helps strengthen customers’
knowledge of what the company has to offer.
USES:
In general, if a product has a high unit value and requires a demonstration of its benefits, it is well suited for personal sales.
For example, an encyclopedia is a high-priced item and most people do not feel they need one. After a demonstration, however, most
people agree it would be a useful item to have. Therefore, encyclopedias are well suited to a promotion mix that emphasizes personal
selling. Highly technical products, such as computers and copiers, are also primarily sold through personal sales methods. Products
that involve a trade-in, like automobiles, are usually handled through personal selling to help facilitate the trade-in process. Finally, a
company that cannot afford a mass-advertising campaign might consider personal selling as an alternative to advertising. Since sales
force compensation is largely based on actual sales, personal selling may require less money up front than other parts of the promotion
mix.
PROCESS OF PROMOTING THE FIRM’S PRODUCTS:
A Five Stage Personal Selling Process.
Stage One - Prospecting.

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Prospecting is all about finding prospects, or potential new customers. Prospects should be 'qualified,' which means that they need to
be assessed to see if there is business potential, otherwise you could be wasting your time. In order to qualify your prospects, one
needs to:
• Plan a sales approach focused upon the needs of the customer.

• Determine which products or services best meet their needs.
• In order to save time, rank the prospects and leave out those that are least likely to buy.
Stage Two - Making First Contact.
This is the preparation that a salesperson goes through before they meet with the client, for example via e-mail, telephone or letter.
Preparation will make a call more focused.
• Make sure that you are on time.

• Before meeting with the client, set some objectives for the sales call. What is the purpose of the call? What outcome is
desirable before you leave?
• Make sure that you've done some homework before meeting your prospect. This will show that you are committed in the eyes
of your customer.
• To save time, send some information before you visit. This will wet the prospect's appetite.
• Keep a set of samples at hand, and make sure that they are in very good condition.
• Within the first minute or two, state the purpose of your call so that time with the client is maximised, and also to
demonstrate to the client that your are not wasting his or her time.
• Humour is fine, but try to be sincere and friendly.
Stage Three - The Sales Call (or Sales Presentation).
It is best to be enthusiastic about your product or service. If you are not excited about it, don't expect your prospect to be excited.
Focus on the real benefits of the product or service to the specific needs of your client, rather than listing endless lists of features.
Try to be relaxed during the call, and put your client at ease.
Let the client do at least 80% of the talking. This will give you invaluable information on your client's needs.
Remember to ask plenty of questions. Use open questions, e.g. TED's, and closed questions i.e. questions that will only give the
answer 'yes' or the answer 'no.' This way you can dictate the direction of the conversation.
Stage Four - Objection Handling.
Objection handling is the way in which salespeople tackle obstacles put in their way by clients. Some objections may prove too
difficult to handle, and sometimes the client may just take a dislike to you (aka the hidden objection). Here are some approaches for
overcoming objections:
• Firstly, try to anticipate them before they arise.

• 'Yes but' technique allows you to accept the objection and then to divert it. For example, a client may say that they do not like
a particular colour, to which the salesperson counters 'Yes but X is also available in many other colours.'
• Ask 'why' the client feels the way that they do.
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• 'Restate' the objection, and put it back into the client's lap. For example, the client may say, 'I don't like the taste of X,' to
which the salesperson responds, 'You don't like the taste of X,' generating the response 'since I do not like garlic' from the
client. The salesperson could suggest that X is no longer made with garlic to meet the client's needs.
• The sales person could also tactfully and respectfully contradict the client.
Stage Five - Closing the Sale.
This is a very important stage. Often salespeople will leave without ever successfully closing a deal. Therefore it is vital to learn the
skills of closing.
• Just ask for the business! - 'Please may I take an order?' This really works well.
• Look for buying signals (i.e. body language or comments made by the client that they want to place an order). For example,
asking about availability, asking for details such as discounts, or asking for you to go over something again to clarify.
• Just stop talking, and let the client say 'yes.' Again, this really works.
• The 'summary close' allows the salesperson to summarise everything that the client needs, based upon the discussions during
the call. For example, 'You need product X in blue, by Friday, packaged accordingly, and delivered to your wife's office.'
Then ask for the order.
• The 'alternative close' does not give the client the opportunity to say no, but forces them towards a yes. For example 'Do you
want product X in blue or red?' Cheeky, but effective.
4 a) What are the attributes of a good sales quota plan?
a. SALES QUATO PLAN
Minimum sales volume goal is established by the seller. Sales quota may be expressed in terms of dollars or units sold.
Quotas may also be set for sales activity (number of calls per day), sales costs and profitability in addition to sales volume. A sales
quota may be required of a salaried or commissioned salesperson or may be a goal set for a brand, a product line, or a company
division. Sales quotas are used to ensure that company sales goals are met even though they may exceed an individual salesperson's
personal goals or abilities. Sales quotas also ensure that the volume sold will cover the fixed costs of producing the product or service.
Sales quotas should be high enough to encourage excellence but not so high as to be unachieveable, thereby discouraging the sales
force. Failure to meet sales quotas is an immediate call for action on the part of the seller. If a salesperson fails to meet quota, the
salesperson may be given a smaller or less desirable prospect territory or may be terminated. A salesperson may receive a bonus for
exceeding the sales quota.
ATTRIBUTES OF A GOOD SALES QUATO PLAN
1. Company revenue goals and the business plan should be the basis of and tied to the quota.
2. An achievable quota is required before it can be deemed an effective quota. The sales people must view the quota as achievable.
Quotas that are impossible to meet are ignored. Unrealistic quotas will make you look foolish.
3. Industry typical sales quota attainment should be considered in setting the quota assignment.
4. A simple, clear and easy to understand quota and compensation system is required to ensure sales person focus on the right goals.
5. Define the sale, the event for which quota is paid, in the context of determining how the quota attainment commission is going to
be paid.
4. Don't penalize successful sales people by pushing their quota out of reach. They may retaliate by selling less.
5. Don't threaten by using a quota system as a weapon against poor performers. It will not solve the problem.
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The following are some considerations for building the best quota system for your company.
1. Establish parameters for developing quotas
• Historical trends: How much of each product and each service have been sold in total and in your various sales territories
over time?
• Last year's revenue: What was the total revenue from all products, services and sales territories?
• Industry standards: How much did all vendors (selling the same types of products and services) sell?
• Territory analysis: How much do the sales people think they can sell in their individual sales territories based on their
existing pipeline and recent successes?
• Simplicity: Keep it simple. The easier it is to understand the better it will be to guide the actions of the sales people.
• Life cycles: Particularly in high tech industries such as computer hardware/software, telecommunications, biotech and
others will also impact revenue performance trends and should therefore, be considered.
2. Add a growth expectation
• Realistic: What is doable for your products in the current state of your market? Some industries can realistically expect sales
growth of 5% while others may see 100%.
• Challenging: The goals you set should require each member of your team to work hard to meet the assigned goals.
3. Adapt the quotas to each sales rep
• Assigned job: If you have different types of salespeople within your team, you may need to adjust quotas based on the type
of job. The potential for sales of telemarketing people may be different from that of outside sales people. The potential for
product sales vs. services sales may be different.
• Sales skills: Some members of your team just have better sales skills than others. Having better sales skills is more likely to
result in higher sales results and therefore higher quota assignment.
• Market potential: Each territory may be different in its needs and appetite for acquiring each of your products or services.
• Competition: In some territories, the competition may be strong and thereby reduce the potential for sales. In other
territories, competition may be weak or non-existent.
4. Adapt quotas to market conditions and company revenue plan
• Roll-up: The quota of all sales people added together should be at least equal to the company revenue plan.
• Over assignment: Since some sales people will not make their quota the total quota assigned should be more than the
company revenue plan.
• Market conditions: As market conditions change (up or down) the quotas may need to be adjusted. This is so sales people
don’t significantly over achieve quota or become demoralized because of under achievement.
5. Other considerations
• Sales resources: Completing the research listed above, you may discover that you need more sales people in order to
achieve your company revenue goals.
• What’s included: Determine what is included in the quota – products, services, maintenance, long term sales, follow-on
sales, out of territory sales, etc.
• Guide behavior: The quota and compensation plan should guide and motivate the sales people to achieve the specific goals
of the company business plan.
• When paid: Decide when sales quota attainment triggers payment of commissions – monthly, quarterly, yearly.
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• Quota sharing: Decide if it’s possible for more than one sales person to be paid if two or more sales people work on the
same sale.
• Ramp up: When assigning new sales people a quota or when introducing new products/services the quota should ramp up –
start lower and increase to a higher number as traction is attained.
6. Sales management
• Management vs. staff: Sales executives or managers should be on a quota. The sales managers can have their own
individual sales quota assignment, a quota equal to the sum of the quotas of the sales people reporting to the manager or a
combination of the two.
7. Get buy-in from your sales team
• Explain quota: If quotas are imposed on your salespeople without an explanation of how they were developed and defined,
the result could be resistance.
• Planning meeting: In one of your sales meetings, outline the process you'll be using to set quotas. Describe each of the steps
you will be taking and the likely completion date. Most importantly, explain how your team will be involved in this process.
• Involve sales people: Have your sales people help gather information for the quota-setting process. Let your sales people
gather the information about their individual territories that you will use as one of the parameters for setting your quotas.
• Individual meeting: Meet with each person to determine an individual quota. In the meeting, discuss any factors that might
influence the setting of that person's quota. Make it a joint decision, if possible, to gain buy-in and commitment from the
sales person.
After reviewing this list of considerations you my think quota planning is a complex process? It is and you should consider
getting help if you are not experienced in the process. Contact Paladin and Associates if you would like to discuss how we can help.
b) Discuss the commonly used methods of sales control. How should sales analysis be done for multi Product Company selling
consumer durables through nationwide retail network?
The commonly used methods of sales control

Formal and Informal Control
Alternatively, Jaworski defines control as "attempts by managers and other stakeholders within the SBU (strategic business
unit) to influence the behavior and activities of marketing personnel to achieve desired outcomes" (1988, p. 58). Jaworski proposes
formal and informal forms of management controls. Formal control is comprised of output and process (which appears to be similar to
behavior-based control), and formal control is a written, management-initiated mechanism. Informal control includes social, cultural,
and self-controls, and is an unwritten, worker-initiated mechanism.
Given these two control conceptualizations in sales and marketing, it is interesting to note that Anderson and Oliver (1987)
focus on consequences of their formal control construct, whereas Jaworski (1988) relates the formal and informal controls in use to
antecedents and consequences. Stathakopoulos (1996) and Darmon (1998) undertook further theoretical efforts to synthesize distinct
management control theories such as the effects of situational variables on sales force governance systems.
Management Control Measures
Based on the Anderson and Oliver (1987) Conceptualization
Cravens et al. (1993), utilizing the Anderson and Oliver (1987) conceptualization, employed three variables (extent of monitoring,
extent of direction, and percent of salary in total compensation) as indicators of a formal control construct. Interestingly, their factor-
analytic empirical analysis revealed a two-factor solution: management and compensation control.
Also referring to the Anderson and Oliver (1987) control system, Robertson and Anderson (1993) developed a control
measure comprising the extent of supervision, contact between salespeople and their managers, subjective evaluation methods, and
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proportion of salary in the pay package. Based on their findings from factor analysis, they combined supervision, contact, and
subjectivity of evaluation to a behavioral control index and used the salary component as a separate construct.
Oliver and Anderson (1994) developed a comprehensive formal control measure utilizing the Anderson and Oliver (1987)
conception. They constructed a control index consisting of six dimensions (the extent of emphasis on supervision, results, attitude,
effort [behavior], information feedback [reporting], and percent of salary in total compensation of salespeople). The 23 items of the
control index were considered as formative indicators representing the control system with outcome and behavior control as polar
opposites.
Also in line with the Anderson and Oliver (1987) control conceptualization, Babakus et al. (1996) operationalize sales
management control strategy (SMCS) as the extent of sales manager monitoring, directing, evaluating, and rewarding of salespeople.
In contrast to Oliver and Anderson (1994), the Babakus et al. (1996) scale includes 25 items reflecting the four control dimensions as a
higher-order control construct. The items comprising the scales for measuring the control dimensions display several similarities with
the Oliver and Anderson (1994) measure. The greater the extent of the control activities utilized by the manager, the more behavior-
based is the sales management control strategy.
Krafft (1999) introduced yet another control measure. In the spirit of Anderson and Oliver (1987), Krafft includes four control
dimensions (fixed salary percentage, span of control, extent of reporting, and evaluation) and developed a formative index, which he
used as the dependent variable for examining the effect of several antecedents on control.
Based on the Jaworski (1988) Conceptualization, A management control measure based on Jaworski (1988) was first
introduced by Jaworski and MacInnis (1989), who operationalized four forms of control (two formal--output and process, and two
informal--professional and self controls). The measures consist of multi-item reflective scales.
The researchers propose and provide some empirical support for differences in the consequences of the four control
combinations. However, there are nonsignificant findings and differences in hypotheses versus test results. In contrast, based on the
four control combinations, Cravens et al. (2004) offer strong support that the high control combination consistently leads to the most
favorable consequences. Importantly, there are substantial differences between the studies concerning the control combination
predicted to have the strongest effects on different consequences.
Building on Jaworski's (1988) conceptualization, Challagalla and Shervani (1996) consider output, activity, and capability
(development of individual skills and abilities) aspects of control. The output and activity measures are the Jaworski and MacInnis
(1989) components of formal control. Challagalla and Shervani (1996) also include in their conceptualization information (goals,
monitoring, and feedback) and reinforcement (contingent rewards and punishments) to create nine control dimensions. They observe
that although control definitions emphasize the information and reinforcement dimensions, empirical studies have typically not
addressed the effect of reinforcements. The empirical findings from Challagalla and Shervani (1996) suggest that the capability
dimension plays a dominant role in sales management control. However, in a subsequent analysis on the same data set, the authors
focus only on the informational aspects of control, again considering output, activity, and capability control (Challagalla and Shervani
1997).
Accordingly, our examination of the alternative conceptualizations of management control and differences in the measures
used in empirical studies highlights several important research issues:
* both formal and informal dimensions of SMCS are relevant from managerial and research perspectives;
* a greater extent of both formal and informal management control appears to be linked to favorable consequences;
* compensation control is a relevant form of management control, and its consequences require research attention; the development of
a unified conceptualization of management control is essential to guide future research;
* assessment of the consistency of management control measures and development of a set of measures for the relevant forms of
control are major research needs.
ANTECEDENTS OF SALES MANAGEMENT CONTROL STRATEGY
The role of antecedents in guiding the choice of SMCS has received limited research attention (e.g., Agarwal and
Ramaswami 1993; Bello and Gilliland 1997; Jaworski, Stathakopoulos, and Krishnan 1993; Krafft 1999; Ramaswami 2002). The
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antecedents that have been examined are very consistent with the relationships proposed in the Walker, Churchill, and Ford (1979)
model of salesperson motivation and performance.
Sales Analysis
Sales managers conduct sales analysis to decide how companies can effectively increase sales. Sales analysis involves
analyzing markets, examining the sales process, recruiting sales representatives, evaluating the sales skills needed to be effective and
determining the appropriate size of the sales force.
Recruiting
Sales managers must first recruit sales representatives before analyzing their potential for success, according to the
University of West Florida. Recruiting sources include sales conferences, professional development organizations for salespeople and
job boards for sales representatives.
Staff Size
Sales managers must determine how many sales representatives they need. Methods of determining this involve assessing the
number of customers the company expects to contact and how long it takes for sales pitches to reach customers, according to the
University of West Florida. However, another method is to estimate how much sales volume each representative will generate and to
compare that to how much the sales representative will cost the company.
Job Description
A job description is usually needed when recruiting a sales representative, regardless of whether he is hired through social
networking or a job posting, according to the University of West Florida. In selecting candidates to interview, the sales manager uses
criteria such as experience, education and people skills.
Evaluation
Several methods can be used to analyze how successful a sales representative is. The amount of sales she generates can be
determined by the average sales quota for the region. This analysis gives the company realistic expectations of how many sales the
representative will likely make, according to the University of West Florida. Also, the representative's sales can be compared to the
industry average, which is more feasible when the sales representative's coverage extends beyond territories.
Sales Process
The effectiveness of the sales process needs to be assessed for training and mentoring purposes. Successful sales methods can
be determined by comparing the success of past marketing techniques.
Market Research
Market research is necessary to make sales decisions. Market research can be conducted through phone interviews and
surveys of customers. Market research can also be conducted by studying sales statistics. Products that continue to sell or sell out
might need to be expanded. Products that are waning in sales might need a more aggressive advertising campaign or need to be
discontinued so sales representatives can focus on selling other products.
Modern Managers have several different methods available for Sales Forecasting.
Popular methods are:
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VK.
1. Jury of Executive Opinion Method

2. The Salesforce Estimation Method
3. Time Series Analysis Method
Jury of Executive Opinion Method:
In the Jury of executive opinion method of Sales Forecasting, appropriate managers within the organization assemble to
discuss their opinions on what will happen to sales in the future. Since these discussion sessions usually resolve around hunches or
experienced guesses, the resulting forecast is a blend of informed opinions.A similar, forecasting method, which has been developed
recently is called the DELPHI Method. Delphi Method also gathers, evaluates, and summarizes expert opinions as the basis for a
forecast, but the procedure is more formal than that for the jury of executive opinion method.
The Delphi Method has the following steps:
STEP 1 – Various Experts are asked to answer, independently and in writing, a series of questions about the future of sales or
whatever other area is being forecasted.
STEP 2 – A summary of all the answers is then prepared. No expert knows, how any other expert answered the questions.
STEP 3 – Copies of summary are given to the individual experts with the request that they modify their original answers if they
think it necessary.
STEP 4 – Another summary is made of these modifications, and copies again are distributed to the experts. This time,however,
expert opinions that deviate significantly from the norm must be justified in writing
STEP 5 – A third summary is made of the opinions and justifications, and copies are once again distributed to the experts.
Justification in writing for all answers is now required.
STEP 6 – The forecast is generated from all of the opinions and justifications that arise from step 5.
SALES FORCE ESTIMATION METHOD:
The Sales Force Method is a sales forecasting technique that predicts future sales by analyzing the opinions of sales people as
a group. Salespeople continually interact with customers, and from this interaction they usually develop a knack for predicting future
sales.
As with the jury of executive opinion method, the resulting forecast normally is a blend of the informed views of the group.
The sales force estimation method is considered very valuable management tool and is commonly used in business and industry
throughout the world. This method can be further improved by providing sales people with sufficient time to forecast and offering
incentives for accurate forecasts.
Companies can make their sales people better forecasters, by training them to better interpret their interactions with the
customers.
TIME SERIES ANALYSIS METHOD:
The time series analysis method predicts the future sales by analyzing the historical relationship between sales and time.
Although the actual number of years included in a time series analysis will vary from company to company, as a general rule,
managers should include as many years as possible to ensure that important sales trends do not get undetected.
Thus these are the commonly used methods of sales control and sales analysis method for multi Product Company selling
consumer durables through nationwide retail network. And these can be followed in a company and be successful in their business
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MS-62 SALES MANAGEMENT

The Role of the Sales Manager

On this Masterclass the Sales Manager will learn:

• How to lead the sales force

The Role of Sales Management:

(1) setting goals for a sales-force;

(2) planning, budgeting, and organizing a program to achieve those goals;

(3) implementing the program; and

(4) controlling and evaluating the results.

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(2)sales promotion, such as contests and coupons; and

(3) personal selling, which encompasses the sales force manager.

Planning, Budgeting and Organising:

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• Should the force emphasize product, geographic, or customer specialization?

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Controlling and Evaluating:

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Environment and Strategies:

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What do understand by the term ‘Salesmanship’? Elaborate

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The reasons for the rapid growth in retail communication

Retail Scenario in India

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Two of the most important modes of this kind are:

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A. Importance of a Good Sales Force

Growing Your Business

Building Client Loyalty

Lower Cost to the Company

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Building Your Reputation

Key Performance Indicators for Sales Force Performance Management

Category 1. Sales force efficiency

$ Revenue per successful call

Category 2. Sales compensation

Category 3. Sales goals or objectives

• Specific to a sales person/team/territory

Example: % Sales quota attainment

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Category 4. Sales workload

SALES FORCE PRODUCTIVITY:

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Personal selling is used to meet the promotion in the following ways:

A Five Stage Personal Selling Process.

Stage One - Prospecting.

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• Plan a sales approach focused upon the needs of the customer.

Stage Two - Making First Contact.

• Make sure that you are on time.

Stage Three - The Sales Call (or Sales Presentation).

Stage Four - Objection Handling.

• Firstly, try to anticipate them before they arise.

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Stage Five - Closing the Sale.

4 a) What are the attributes of a good sales quota plan?

a. SALES QUATO PLAN