1. Sales Management & Personal Selling Chapter 1. Concept, Nature, Role of Sales Management in Marketing, Salesmanship, Specific characteristics of a successful salesman, the evolving face of personal selling
2. What is sales management? An earlier explanation/ definition of sales management was, directing the sales force personnel. Later as the responsibilities taken up by the sales team grew and as the sales function evolved into a more holistic function a new definition has emerged : Sales Management is management of all marketing activities including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.
3. Current day definition of Sales Management The American Marketing Association has given a current day definition of sales Management as: The planning, direction and control of personnel selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to the personnel sales force
4. Objectives of Sales management From the Organizations Viewpoint there are three general objectives of sales management Achieving the desired sales volume Contribution to profits in the organization Continuing growth
5. Sales Management Process Planning Building a profitable customer oriented sales team Performance Obtain Goals Product sales & profits Customer satisfaction Efficiency Effectiveness Controlling Evaluating the past to guide the future Resources Human Financial Raw Matls Technology Information Staffing Hiring the right people to sell and lead Leading Guiding average people to perform at above average levels Training Educating sales personnel to satisfy customers
6. Nature & importance of Sales Management Nature & Characteristics of Sales Management Its integration with marketing Management - Relationship Selling Varying Sales responsibilities
7. Integration of Sales Management with Marketing management Aligning the sales plan with the marketing plan Marketing Research Customer Service Coordination Promotions (including advertising, Sales Promotion, Publicity & PR)
8. Relationship Selling Buyers and salespersons have some type of a business or working relationship Every relationship is an exchange Relationship Marketing aims at creation of customer loyalty The spectrum of relationships include Transactional relationship (Selling) Value added relationship (Counseling) Collaborative relationship (Partnering)
9. Varying Sales responsibilities Response Selling Sales Support Technical Sales Support Demand Creator or business developer Solution vendor
10. Salesmanship Sales Management, Personal Selling and Salesmanship are all related. Sales management directs the personal selling effort which is turn is implemented largely through salesmanship Salesmanship is one aspect of personal selling and never all of it. It is one of the skills used in personal selling
11. Salesmanship Definition Salesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction. It is also defined as a seller initiated effort that provides prospective buyers with information and other benefits, motivating or persuading them to decide in favour of the sellers products or services
12. Specific Characteristics of a successful salesman People Skills – Ability to motivate, lead, communicate and coordinate effectively Managing Skills- Administrative skills like planning, organizing, controlling & decision making Technical Skills – Training, Selling skills, negotiating skills, use of IT, problem solving abilities, Product knowledge
13. Personal Selling It is a direct presentation of a product to a prospective customer by a representative of the organization selling it. It takes place face to face or over the phone and it may be directed to a business, person or a final consumer
14. Types of Objectives of Personal Selling Some of the Objectives of personal selling are: To shoulder the entire responsibility of the promotion mix (when no other element of Promotion mix is used) To maintain contact with existing customers, take orders etc (also known as servicing existing accounts) To search and obtain new customers
15. Objectives ….contd… To secure customers cooperation in stocking and promoting the product line To inform and educate customers To assist customers in selection To provide technical assistance To assist with training the middlemen’s sales personnel To collect market information
16. Diversity of personal selling situations Personal Selling situations - Service Selling Inside Order Taker , Delivery Salesperson ,Merchandising Salesperson, Missionary, technical Sales person Developmental Selling Creative sales person of tangibles, Creative salesperson of intangibles Creative Selling Political, Indirect, Back door Salesperson in multiple Sales
17. Service Selling Inside Order taker – here the salesperson waits on customers (e.g Sales Counter person) Delivery Salesperson – Engaged in delivering the product (Person who delivers Milk, Eggs) Merchandising/Route Sales Person – Works as an order taker on field mainly with retailers Missionary _Works only to create goodwill and disseminate information . Does not do any order taking Technical Sales Person – Emphasizes technical Knowledge and educates customer
18. Developmental Selling Creative sales person of tangibles – Sales person selling vacuum cleaners , encyclopedias Creative sales person of intangibles- Sales person selling Insurance, advertising services, Educational programs
19. Creative Selling (Basically Developmental) Political /Indirect/Back Door – Selling big ticket items by catering to the other interests of the customers (which have no connection with the product) Salespersons engaged in multiple sales- Where the sales person is required to make presentation to various entities of an organization (Ad agency salespersons making presentations to selection committee, creative department, product department etc)
20. Theories of selling Is selling a science which can be taught and has several basic concepts? OR Is it an art which can be learned through experience? This has led to two contrasting approaches to theories of selling The first approach relies on Experiential learning The second approach draws from fundamental concepts of behavioral sciences
21. Theories of selling Seller Oriented AIDAS theory Right set of circumstances Buyer Oriented Buying Formula Theory Behavioral Equation Theory
22. AIDAS theory A – Secure Attention I – Gain Interest D – Kindle Desire A- Induce Action S – Build Satisfaction
23. Right Set of Circumstances theory Also known as situation response theory It holds that particular circumstances prevailing in a selling situation will cause the prospect to respond in a predictable way Set of circumstances include external and internal factors (E.g Salesperson to Prospect – Let have coffee – Sales person and proposal to have coffee are external factors - Prospects desire to have coffee or to go out with salesperson are internal factors)
24. Right Set of Circumstances theory It stresses on importance of salesperson controlling situations Does not handle the problem of influencing factors internal to the prospect Fails to address the response side of the Situation-Response interaction
25. Buying Formula Theory of selling Here the buyer’s needs receive major attention Need (Problem recognition) Solution Purchase Need (Problem recognition) Solution Purchase Satisfaction
26. Behavioural Equation Theory J A Howard explains buying behaviour in terms of the purchase decision process. He uses four essential elements of the learning process namely Drives – Strong internal stimuli that impel the buyers response Innate –Physiological like hunger, thirst etc Learned – Strive for status Cues – Weak stimuli that determine when the buyer will respond Triggering – Activate the decision process (price, smell, aroma etc) Non-Trigerring- Influence the decision process but do not activate (Package, information on the cover etc) Response – is what the buyer does Reinforcement - any event that strengthens the buyer’s tendency to make a particular response B = P X D X K X V B – Act of purchasing P – Predisposition or inward response tendency D- Present Drive level K – Intensive potential ( value of the product to satisfy the need) V – Intensity of all cues
27. Prospecting The planning work which is essential in eliminating calls on non buyers is called as prospecting Steps Formulating prospect definitions Searching out potential accounts Qualifying prospects and searching out Relating company products to each prospects requirement
30. Exercise As a seller of cosmetics, do a role play for selling a bag of the newly launched Revlon lipsticks to me (Roll Nos. 1-5, 6-10,11-15, 16 -20) Consider that you are a company manufacturing Photocopiers. Carry out the prospecting exercise for a new range of office automation product like a facsimile (fax) machine (Roll Nos. 21 – 25, 26-30, 31-35, 36-40) Write down at least two examples of various types of personal selling situations (41-60)
