Sales &Distribution Management,

For MBA Batch 7B. Term 6 Semester 3 Facilitator Prof: Sreekumar.B.Pillai.

Why sales management?

 Sales function is a very primary discipline of

trade that prevailied since the beginning of commercial activity.  Sales function has improved the standard of living of communities.  Sales function has opened up new markets and created new products based on feedback given by salesmen.  Sales function has created lot of entrepreneurs who had benefited from their sales expertise.

Sales management:
 Sales force is the final interphase

between the manufacturer and the consumer.They are reponsible for the exchange of goods for cash.  Sales force are the best source of market feedback for forecasting and planning.  Sales force are the best personnel to Implement Customer relationship management.

What is sales management?

 A sale can be defined as a commercial

transaction which results in a transfer of ownership in exchange for a Monetary consideration.  All functions that include the analysis, Planning,organising, directing and controlling of the sales activities of an organisation constitutes sales management.

Sales management and marketing.

 Though Sales mangement is an integral

part of marketing management the difference between the two must be made clear.

Professional selling today:

 Has to meet the

Increased sophistication of buyers .  Has to meet the intense professionalisation of purchasing management of both indivuduals and Companies.  Sales force has to understand CRM and that sale does not end at the POS.  Has to be trained in order to meet the challenges of the market.

Theories of selling practice.

 Traditional selling approach: also called the

salesmanship approach,a sales persons behaviour is regarded as the key ingredient in the sales process. a)Canned sales presentation approach. These are fully structured presentations which are memorised by the salesperson.Frequently used in door to door selling,canned sales provide a preset procedure of what is considered to be the best way to sell the product.Here the prospect is considered to be passive.

Traditional approach ..contd:

 Stimulus response theory:

This theory states that prospects are trigerred to buy upon hearing a certain set of statements-provided that the statements are presented in the correct manner.If the salesman provides the right stimulus then the prospect will respond to the stimulus by purchasing the product or service.

Traditional approach..contd.
 Selling formula approach:Proposed by Arthur Fredrick

Sheldon in 1902 as the AIDR (r for resolve) was later adapted into sales management as AIDAS.  According to this principle selling is a net result of the Following set of factors set in motion one after the other: A for Attention I for Interest. D for Desire. A for action and S for satisfaction.

Modern Viewpoint of selling:

 The Buyer seller Dyad:

The Dyad represents a situation where two people interact.This theory explains that external factors like the future expections of both the seller and the prospect can influence the sales methodology. The external and internal environments of both seller and the prospect can influence the sales approach that will have to be implemented.

Modern approaches
 Need satisfaction selling approach.

Based on notion that the customer is buying to satisfy a particular need or set of needs. The Stress is on probing the customer to understand his needs ,and only after identifyng needs the salesperson begins to offer his products for Satisfying these needs.

Modern theories:
 Problem solving approach.

This is an extension of the need satisfaction selling.It goes beyond identifying needs to developing alternate solutions for satisfying these needs.

Modern selling theories.

 Consultative selling.

Consultative selling is the process of helping customers reach their strategic goals by using the products,services and expertise of the sales organisation.this method focuses achieving strategic goals of customers not just meeting needs or solving problems.

Salesmanship:
Good salesmanship consists of the following:  Proper positioning, prospecting,and pre-call planning .  Because of the above you will be in front of the right people at the right time with the right kind of message.  Good salesmanship is about getting trust,building trust is based on proper approach and not dominating the conversation.  Professional selling is based on asking enough of the right questions and not presenting any solution till you have discovered a) What they will buy, b) When they will buy, c) How they will buy d) Under what conditions they will buy.

Salesmanship..contd.
 Properly presenting your solution based on the

conditions,terms,and parameters under which your prospect will buy is the essence of the successful sale.  People expect claims to be made by salesmen on their products but they are more impressed when someone else does it or they are able to experience the claim themselves.  No sale is made unless you ask someone to buy your product.  The real work begins after your first sale.

Key factors for effective selling

 Positioning: The relative ranking or

perception that prospects have of you,your product, and /or your organisation relative to your competition.  Prospecting:The proactive steps taken to identify,isolate and get in front of qualified prospects.  Pre-call Planning: The research ,data gathering and preparation that you must make in order to be totally prepared for a sales presentation.

Pull Vs Push Propecting:

 Pull Prospecting: Attracting prospects through a

broad based process that could include such methods as authorships,networking and gaining industry specific celebrity status.People want to do business with you if you are a busy,highly sought after person more than if you appear to be desperate ,hungry,aggressive sales person seeking your next dollar.  Push prospecting: Contacting prospects one at a time ,individually,proactively,through such methods as cold calling or phone solicitation.

Vital Questions:
 Ideally a salesman should research the

   

following issues before getting in front of any prospect: Who will I be competing against? What questions is the prospect likely to ask me? Is the person Im calling on a decision maker or influencer? How can I develop Internal advocacy?What is the biggest single problem I can help the prospect solve? How far along is the prospect in the buying process?

Aim to be trusted not liked!

 If you build trust you are in a better

position to sell value.If you seek to be liked,you are only going to sell price.  Buyer trust means that the prospect has the belief,confidence and full expectation that you ,the salesperson are a person of integrity and that you and your organisation will deliver all that you promise.

Dont overwhelm!
 Good salespeople do not dominate the

conversation.They also dont come across as aggressive.They do not offer unsolicited small talk.If the prospect wants to talk let him/her talk. If not ,simply tell the prospect why you are there and what you would like to accomplish on that call.

Knowledge sells:

 It is better to position yourself as a

business advisor,strategic partner,industry expert or productspecific Guru than to position yourself as a salesperson.Unfortunately salespeople are just not positioned nearly as well in the marketplace as the others are.

Application based selling:

 Presenting the product or service in the

context of precisely how it can be applied to solve your prospects biggest problem,agitation,or difficulty or to address a solution your prospect is seeking.this is in contrast with focusing on features ,benefits,price or design.our prospects are looking for answers.Application based selling is the essence of professional selling.

Traditional sale strategies:

 

 

Market penetration: trying to gain more market share with existing products.eg; special promotions Product development/ account penetration: creating new products to get more business out of the companys existing customers/ selling more products to the same accounts.new packing/packaging,new formats etc Market development: finding new markets eg; exports Diversification: combining new products and new markets. Eg: Kingfisher going from alco; beverages to air travel.

Strategic sales Planning.

 This is the process by which a company

attempts to match its sales operations with the realities of its internal and external environments.
 Strategic planning is unique in that it assures the

   

firm that it will be prepared to meet challenges that arise due to changes in the environment. Modern Strategic sales planning comprises of : 1)Window Driven Planning. 2) Horizontal information exchange. 3) Vertical Information exchange.

Retailing and selling .Are they the same?

 Retailing is the sum of all the marketing activity that

are undertaken by a component of the supply chain when it is involved in selling goods or services directly to the consumers for their personal, family or household use.  According to the ARA such a retailer should have more than 50% of their sales revenue through direct sale to the customer.  Though they have the same basic function retailers vary greatly in size, organisation ,nature of product/service offering and sales strategies.  Study of the Planning,implementing,controlling and directing the processes that lead to the transfer of goods from the retailer to the consumer constitutes Retail management

Factors that have to be considered as challenges to modern sales function:

 Short life cycles.  Short shelf life.  High Volatility(fluctuation of demand).  Low predictability of demand.  High Impulse purchase.  Time to market.  Time to serve  Time to react.