Introduction to Sales Management

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Personal selling strategies

1. Willingness to go to bat for the buyer within the supplier firm 2. Thoroughness and follow through 3. Knowledge of the sales persons product line 4. Market knowledge and keeping the buyer posted 5. Applying his product and services to buyers needs 6. Knowledge of the buyers product line 7. Preparation for sales calls 8. Regularity of Sales calls 9. Diplomacy in dealing with operating departments 10. Technical education
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Evolution of personal selling

Negotiation Persuasion Consultative Selling Business Management Partnership Strategies

Marketing concepts
1) 2) 3) 4) 5) Production concept Product concept Selling concept Marketing concept Societal concept

Societal marketing concept

Production

Sales

Customers

(Sales Orientation)

Customer Needs

Production

Sales

(Marketing Orientation)

Emphasis on Sellers Needs

Emphasis on Customer Needs

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Nature and role of sales management

The determination of sales force objective and goals Sales force organization, size, territory, and quota finalization Sales forecasting and budgeting Sales force selection, recruitment, and training Motivating and leading the sales force Designing compensation plan and control systems Designing career growth plans and building relationship strategies with key customers
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Types of personal selling

Industrial selling Retail selling Services selling

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Types of selling
Order taker sales people Order creators Order getters

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Types of Selling
Inside Order Taker Order Takers Delivery Sales People

Outside Order Takers

Selling Function Order Creators Missionary Sales People New Business Sales People Front Line Sales People Order Getters Organizational Sales People Consumer Sales People Sales Support Sales people
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Technical Support sales People Merchandisers

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Difference between sales and marketing

Starting point
Factory

Focus
Factory

Means
Selling and promoting

Ends
Profits though sales volume

Selling concept

Market

Customer needs

Coordinated marketing

Profits through customer satisfaction

Market concept

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MARKET ANTICIPATION Marketing mix

Producer
Marketer

Product Price Place Promotion

Consumer

Exchange offer of value

Marketing management process

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Sales management process

Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

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Technology

Customer orientation

Emerging trends in sales management

Technology

Relationship selling

Global and ethical Issues

Diversity

New selling methods

Emerging trends in sales management

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Selling Skills and Strategies

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Selling and buying styles

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(1,9) People Oriented

(9,9) Problem Solving Oriented I consult with the customer so as to inform myself of all the needs in his situation that my products can satisfy. We work towards a sound purchase decision on his part, which yield him the benefits he expects from it.

I am customers friend,

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7
Concern for the customers

6 5 4 3 2

I want to understand him and respond to his feelings and interests so that he will like me. It is the personal bond that leads him to purchase from me. (5,5) Sales technique Oriented
I have tried an effective routine for getting a customer to buy. It motivates through a blended personality and product emphasis

(9,1) Push the product Oriented I take challenge of the customer and hard sell him, polling on all the pressure it takes to make him buy

(1,1) Take it or Leave it

I place the product before the customer and it sells itself as and when it comes.

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Selling situations
Sales task and function
Maintenance selling Developmental selling

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Selling skills
Problem solving skills Effective communication skills

Selling Skills
Listening Skills Negotiation and bargaining skills

Conflict management and resolution skills

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Communication process
Feedback Intended Message Perceived Message

Encoding

Noise

Decoding

Sent Message Sender

Received Message

Channel
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Receiver
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Communication process
contd.

Managing body language:

Personal Appearance Posture

Gestures
Facial Expressions Eye Contact Space Distancing
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Process of listening
Attendance Interpretation

Remembrance
Evaluations Response Action
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Levels of listening
Feedback Paraphrasing

Clarifications
Emphatic listening

Active Listening
Barriers to Listening !
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Conflict management skills

Models of conflict Components of conflict The conflict resolution process:
- lumping - avoidance - coercion - meditation - conciliation - arbitration - adjudication - negotiation
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Conflict management process

Stage I
Potential opposition or Incompatibility

Stage II
Cognition &
Personalization

Stage III
Intentions

Stage IV
Behaviour

Stage V
Outcomes

Antecedent Conditions Communication Personal Variables Structure

Perceived Conflict

Conflict handling Intentions Competing Collaboration

Increased group performance

Overt Conflict

Felt Conflict

Compromising
Avoiding Accommodating

Partys behaviour Others reaction

Decreased group performance

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Negotiation skills
Situation and timing for negotiations Formulation for a bargaining strategy The theory and strategy of principle negotiations
separate the people from the problem focus on interests, not on positions invent options for mutual gains insist on objective criteria
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Problem solving skills

Habit I: be proactive Habit 2: begin with an end in mind Habit 3: put first things first Habit 4: think winwin Habit 5: seek first to understand, then to be understood Habit 6: synergize Habit 7: renewal
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Problem solving process

Define the problem Generate alternative solutions

Decide the solution

Implement the solution Evaluate the solution
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Problem definition techniques

Statement and Restatement 5 Dunkers diagram 4

Present desired state analysis 3

Problem Definition Techniques

Evaluate problem 6 statement Find out origin of the problem 1

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Explore the 2 problem

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Dunkers diagram
Achieve the desired state

General Solution
Possible path to the desired state

Path 1

Path 2

Path 3

Functional Solution

Solutions to implement & paths to desired solutions

Solution 1

Solution 2

Solution 3

Specific Solution

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Statement restatement technique

Relax Constraints

Perceived problems

Generalize

Make an Opposite Statement

Re Statement

Re Statement

Final problem Statement

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Components of a decision on the future course of action

Situation analysis

Problem analysis Past What is the fault

Decision analysis

Potential problem Analysis Future How to prevent future faults?

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Solution implementation process

Decision on the best solution
I M P L E M E N T A T I O N
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Approval

Planning
Carry through

Follow up
Evaluation
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The Selling Process

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Stages in the selling process

Preapproach before the interview
Handling Customer Objections

Pre-sale preparation

Prospecting

Approach to the customer

Follow up action

Closing the Sale

Sales Presentation

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Prospecting
Successful prospecting
50 potential prospects 15 Qualified prospects 6 Interviews 1 sale 50 potential prospects 25 Qualified prospects 17 Interviews 7 sales

No
Successful prospecting
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Yes

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Process of prospecting
Identify and define prospects

Search for sources of potential accounts

Qualify the prospects from the suspects

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Methods of prospecting
Cold canvassing
Endless chain customer referral Prospect pool Centers of influence Non competing sales force Observation Friends and acquaintances Lists and directories Direct mail Telemarketing Trade shows and demonstrations

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Selling process
Pre approach to selling Approach to the customer Sales presentation - approach to sales presentation

- attracting customer attention - creating interest - arousing desire and building conviction
Methods of sales presentation

- canned presentation - organized presentation - tailored presentation

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Handling customer objections

Suggested by SMITH
Start with your highest expectations

Avoid conceding first BE sure the customer understands the value of a concession Make concessions in small amounts Admit mistakes and make corrections willingly BE prepared to withdraw a concession Avoid split the difference strategy Do not advertise willingness to concede
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Methods of handling customer objections

Superior feature method YesBut method Reverse English method Indirect denial method Pass out method Comparison method Direct denial method Another angle method Narrative method Testimonial method Question or WHY method
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Closing the sale

Methods of closing the sale Follow-up action

B2B selling
Closing sale Definition A transaction in which the seller's intention is to reduce or eliminate a long position in a stock or an option series.
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Follow-Up Action What Does Follow-Up Action Mean? Any subsequent trading that affects an established position in a security or derivative. Follow-up actions are taken to change the amount of exposure an investor has in a position, or to limit a strategy's losses or profits. Investopedia explains Follow-Up Action For example, an investor who is long in shares of Company XYZ may be nervous about future losses. He or she could take the follow-up action of purchasing a put option for the stock, which would minimize losses in the event of a downturn.