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Introduction
According to AMA - Sales management is the planning, directing and controlling of personal selling, including assigning recruiting, selecting, equipping, routing, supervising, paying and motivating as these tasks apply to the personal data force. According to B.R. Canfield Sales management is an activity that involves the direction and control of salesman, sales planning, budgeting, policy making, coordination of market research, advertisement, budgeting, policy making, sales promotion and the integration of all business activities that contribute to the increased sales and profits.
Cont.
According to William J. Stanton Sales management planning, implementing and evaluating sales force activities within the guidelines set by companys strategic marketing planning. According to Spiro, Stanton and Rich Sales management is the management of the personal selling effort in an organisation. Sales management is the management of the sales force and personal selling efforts to achieve desired sales objectives. The planning, organizing, leading and controlling of personal contact program designed to achieve the sales and profit objectives of the firm.
MANAGEMENT
LOCAL
LEADERSHIP
GLOBAL
Cont.
Functions:
Sales Force Staffing Sales Planning (objectives, activities, budget, territories, quotes) Sales Program Designing Sales Performance Evaluation
Cont.
Objectives:
Establishing the distribution set-up Maximization of sales Maximization of profits Increase of market share Strengthening public relation and corporate image Continuing Growth
Adv. Policy
Distribution
Marketing Mix Marketing Strategies
Cont.
VIII. IX. X. XI. Sub-system of Marketing Synonymous with Marketing Management Challenging profession Goals
Emerging Trends in sales Management: Global Perspective Revolution in Technology Customer Relationship Management (CRM) Sales Force Diversity
Team Selling Approach Managing Multi-Chanel Ethical and Social Issues Sales Professionalism
Selling Process
Personal selling is all about locating a potential buyer, making an effective sales pitch and getting the order. There are many different ways to go about making a sale, since every salesperson has his unique manner of attaining the objectives The personal selling process is a logical sequence of five steps:
Prospecting
Preapproach
Approach
Presentation
Prospecting
Preapproach
Approach
Presentation
1. 2. 3. 4. 5.
AIDAS THEORY
It is after the initials of five words used to express the stages through which the prospects mind passes during buying A- Attention I- Interest D- desire A- Action S Satisfaction. Securing Attention: It is the Goal is to put the prospect into a receptive state of mind If the salesperson has prior appointment then this phase does not offer any problem
The salesperson needs an ample supply of conversation openers Favorable first Impressions comprise of proper attire, neatness, friendliness and a genuine smile. The salesperson must have sense of direction, knowledge, listening ability and sense of humor to carry out the task successfully. Gaining Interest: It is the second goal which intensify the prospects attention so that it evolves into strong interest Samples or flipcharts, product portfolios, visual aids, catalogues may be used Main aim of this phase is to search out the selling appeal that is most likely to be effective Sometimes the prospect drops a hint which may be used in selecting the best appeal. Sales person may ask probing question to find that hint
Kindling Desire: It is the third goal which kindles the prospects desire to make ready the buyer to buy product. The development of sales obstacles, prospects objections, external interruptions, digressive remarks can sidetrack the presentation. Obstacles must be faced and ways must be found out to get around them. Objections must be answered to the
prospects satisfaction.
Inducing Actions: It means achieving the desired action. It consists of obtaining the customer agreement to buy after meeting customers objection. If the presentation has been perfect, the prospect is ready to act- i.e. to buy Experienced sales person rarely try for a close until they are fully positive that the prospect is fully convinced. It is up to the salesman to sense when the time is right. Some salesman never ask for yes or no, they ask for the order straightforwardly
Building Satisfaction: It is the stage after the customer places the order, it is the responsibility of the salesman to reassure the customer that his decision was right. He should thank the customer and make certain that the order is filled as written and following up the promises made.
RIGHT SET OF CIRCUMSTANCES THEORY : Also called as Situation-Response Theory. According to which the salesperson should give proper stimuli to secure the attention of the prospect and should mould the situation. In this theory particular circumstances are prevailing in a given selling situation then it can causes the prospect to respond in a predictable way. This theory is a seller oriented theory which stresses the importance of the salesperson controlling the situation, it does not handle the problem of influencing factors internal to the prospect and fails to assign appropriate weight to the response side of the situation response interaction.
BUYING FORMULA THEORY: The approach to this theory is based on findings from behavioral sciences and is focused on the buyer side of the buyer seller dyad. According to this theory, the buyers needs or problems receive major attention and the salespersons role is to help the buyer find solution. According to the theory mental processes involved in a purchase are interested in long term relationship which includes
Need Solution Purchase Satisfaction/ Dissatisfaction
BEHAVIOURAL EQUATION THEORY: This theory explains buying Behavior in terms of purchasing Decision process viewed as phases of learning process. This theory Is based on four elements (i) Drive, (ii) Cue, (iii) Response, (iv) Reinforcement Drives -strong internal stimuli that impels buyers response. They are of 2 kinds *Innate Drivespsychological needs e.g.. hunger, pain *Learned Drivesstriving for social status & approval, acquired when innate drives satisfied
Cues - are weak stimuli that determine when the buyer will respond *Triggering cues- activate the decision process for any purchase *Non triggering cues- influence the decision process but dont activate it a. Product cues-external stimuli received from the product directly eg. package, price b. Informational cues- external stimuli providing information, can come from advertising etc. Response -What the buyer does Reinforcement - is any event that strengthens the buyers tendency to make a particular response Equation according To Howard is- B=P*D*K*V Where, B=Response P= predisposition (force of habit)
D=Present drive level (amount of motivation) K=Incentive potential (value of the product or potential satisfaction) V=Intensity of all the cues.
4. According to Henry Tosi behavioral factors of the salesperson are most influencing factors in buyer-seller dyad relationship. Emerging Patterns of Personal Selling : Team Selling MIS (Market Information System) Direct Marketing Direct Mail Tele-marketing Relationship selling System Selling
VI.
To keep customers informed to changes in the product line To assist customers in selling the product line To do entire sales job To serve the existing customers To secure and maintain customers co-operation in stocking and promoting the product line To handle the sales personnel of middlemen
VII.
To collect and report market information on interested maters to company management VIII. To provide advice and assistance to middlemen whenever needed IX. To provide technical advice and assistance to customers X. To search out and obtain new customers.
To keep the personal selling expenses within specified limits To secure and retain a specified share of the market To obtain a specified sales volume To obtain sales volume in ways that contribute to profit objectives by selling proper mix of products.