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Emerging Trends in Sales Management To be successful in a changing market environment, it is important that sales managers understand the importance of emerging trends in the following areas Global Perspective Global competition is intensifying. Domestic companies who never thought about foreign competitors are suddenly finding them in their backyard. This is a challenge which sales managers and salesperson must take on, they have to improve their personal selling efforts not only in their countries but also in foreign countries. Selling goods and services in global markets presents a challenge due to differences in culture, language, needs and requirements. Technological Revolution Digital revolution and management information system have greatly increased the capabilities of consumers and marketing organizations. onsumer today can get information about products, compare it with other brand, place an order and place an order instantly over the internet. This has led to a different kind of sales force who collects information about internet users, markets and prospects of internet buyers. !t is mandatory for all companies to have their website now. To compete effectively, sales person and managers will have to adopt the latest technology. Customer Relationship Management [CRM] ombining information technology with relationship marketing has resulted in customer relationship management. !nterestingly, the concept of relationship marketing came about earlier by bringing quality, customer service and marketing together. "elationship marketing aims in building long term satisfying relations with key customers distributors and suppliers in order to earn and retain their long term preference and business. "# enable companies to provide e$cellent real%time service by focusing on meeting the individual needs of each valued customer, through the use of "# software packages. Sales Force Diversit The demographic characteristics of sales force is changing and becoming more varied. &or e$ample, more and more women are taking up careers in sales management and selling. 'lso the education level of sales people is going up most of them holding a college degree or a post graduate degree. Sales managers now have to handle a sales force of these varied demographic, e$pectations of each and every individual is different and sales manager needs to use different motivational tools against each one of them. Team Selling !pproach The practice of team selling is more widely followed by most companies in recent years. Team selling approach is used when company wants to build a long term mutually beneficial relationship with ma(or customers, who have high sales and profitable potential. !t is used for selling a technically comple$ product or a service to a potential customer. The composition of team may vary depending upon the customer from top management, technical specialist, customer service,

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etc) Managing Multi"Channels #ulti%channel marketing system occurs when organization uses two or more marketing channels to target one or more customer segments. #a(or benefits of multi%channel marketing system are* +. ,ower channel cost -. !ncreased market coverage .. ustomized selling #ulti%channel may also lead to conflicts and control problems, as two or more channels may compete for same customer. ' successful sales manager will have to effectively manage conflict between the channels. Ethical and Social #ssues Sales managers have ethical and social responsibilities. Sales people face ethical issues such as bribery, deception /or misleading0 and high pressure sales tactics. Today1s sales managers have no choice but to ensure ethical standards from sales force otherwise they may be out of business or even land up in legal problems. 2elow diagram gives the changing trends in Sales #anagement

The Ps cholog o$ Selling% &h People 'u 3hat do people really buy4 They buy the benefits of a product. This chapter e$amines why and how individuals buy. !t emphasizes the need for salespeople to stress benefits in their presentations. 'fter studying this chapter, you should be able to

5$plain the difference between a feature, an advantage, and a benefit. 2e able to construct a S5,, Sequence. 6now when and how to use a trial close. 5$plain why people buy benefits rather than features or advantages. 5numerate techniques for determining a customer7s needs. ,ist factors that influence the customer7s buying decision. Show why buying is a choice decision.

Strategies ( tactics 5very business survives on the basis on a single thing* sales. 3hether the business provides a product, either to consumers or other businesses, or it offers a service, the absence of sales means the end of the business. 3hen it comes to talking about sales, though, the conversation often fi$ates on sales tactics at the e$pense of sales strategy. This is a critical problem. &or a business to generate the best possible sales numbers, it needs both a clear sales strategy and sales tactics to support that strategy. &hat is Sales Strateg ) ' sales strategy, in simplest terms, represents an idea or general approach to achieving a particular business goal. ' business might set a general goal of capturing more female buyers. !f the business operates in an industry historically dominated by male buyers, a possible sales strategy would go something like this* de%masculine or feminize the product or service. ' sales strategy often includes the content of marketing messages. ' case%in%point e$ample of a sales strategy aimed at capturing women buyers is the now%classic 8 ome see the softer side of Sears9 campaign.

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&hat are Sales Tactics) 2y contrast, sales tactics refer to the specific actions a business takes to carry out the sales strategy. 5verything from running a series of T: ads and putting up fliers around the neighborhood to talking to a customer face to face about the benefits of a product constitute sales tactics. These tactics should, on the whole, reflect the overall sales strategy. The T: ads should feature products that the target demographic needs, in settings that make sense for them. !f you aim to capture female buyers, statistically speaking, few women work on constructions sites, so advertising that features a construction site will likely not speak to women. Choosing a Sales Strateg !n theory, a business can choose any sales strategy it wants. !n practice, however, a sales strategy should take account of a product or service1s strengths and weaknesses. 3hile typically used in reference to an entire business, a basic S3;T analysis can also prove useful in analyzing strategic sales and marketing plans. ' S3;T analysis consists of a systematic assessment of the strengths, weaknesses, opportunities and threats attached to a particular business, product or plan within the larger framework of the market. This type of analysis can help show where the business can best direct its sales efforts. Considerations *o matter ho+ +ell trained the salesperson or sales sta$$, in the absence o$ a clear sales strateg , the sales tactics the emplo +ill li-el result in mediocre sales. The sales strateg o$$ers the people on the ground a clear starting place, as +ell as a clear message, the can direct at potential bu ers.

Distribution channels

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' distribution channel can have several stages depending on how many organisations are involved in it*

Looking at the diagram above: hannel + contains two stages between producer and consumer % a +holesaler and a retailer. ' wholesaler typically buys and stores large quantities of several producers1 goods and then brea-s into bul- deliveries to supply retailers with smaller quantities. &or small retailers with limited order quantities, the use of wholesalers makes economic sense. hannel - contains one intermediary. !n consumer markets, this is typically a retailer. The consumer electrical goods market in the <6 is typical of this arrangement whereby producers such as Sony, =anasonic, anon etc. sell their goods directly to large retailers such as omet, Tesco and 'mazon which then sell onto the final consumers. hannel . is called a >direct"mar-eting/ channel, since it has no intermediary levels. !n this case the manufacturer sells directly to customers. 'n e$ample of a direct marketing channel would be a factory outlet store. #any holiday companies also market direct to consumers, bypassing a traditional retail intermediary % the travel agent. &hat is the best distribution channel $or a product) 3hat factors should be taken into account in choosing the best distribution channel4 ?ere is a summary* *ature o$ the product

Technical@comple$4 omple$ products are often sold by specialist distributors or agents ustomised4 ' direct distribution approach often works best for a product that the end consumer wants providing to a distinct specification Type of product A e.g. convenience, shopping, speciality Desired image for the product A if intermediaries are to be used, then it is essential that those chosen are suitable and relevant for the product.

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The mar-et

!s it geographically spread4 Does it involve selling overseas /see further below0 The e$tent and nature of the competition A which distribution channels and intermediaries do competitors use4

The business

!ts size and scope A e.g. can it afford an in%house sales force4 !ts marketing ob(ectives A revenue or profit ma$imisation4 Does it have established distribution network or does it need to e$tend its distribution option ?ow much control does it want over distribution4 The longer the channel, the less control is available

0egal issues

're there limitations on sale4 3hat are the risks if an intermediary sells the product to an inappropriate customer

Roles and Responsibilities o$ a Sales Manager

! sales manager pla s a -e role in the success and $ailure o$ an organi1ation. 2e is the one +ho pla s a pivotal role in achieving the sales targets and eventuall generates revenue $or the organi1ation . ' sales manager must be very clear about his role in the organization. ?e should know what he is supposed to do at the workplace.

,et us understand the roles and responsibilities of a sales manager*

' sales manager is responsible for meeting the sales targets of the organization through effective planning and budgeting. ' sales manager can1t work alone. ?e needs the support of his sales team where each one contributes in his best possible way and works towards

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the goals and ob(ectives of the organization. ?e is the one who sets the targets for the sales e$ecutives and other sales representatives. ' sales manager must ensure the targets are realistic and achievable.

The duties must not be imposed on anyone, instead should be delegated as per interests and specializations of the individuals. ' sales manager must understand who can perform a particular task in the most effective way. !t is his role to e$tract the best out of each employee. ! sales manager devises strategies and techniques necessary for achieving the sales targets. ?e is the one who decides the future course of action for his team members. !t is the sales manager1s duty to map potential customers and generate leads $or the organi1ation. ?e should look forward to generating new opportunities for the organization. ' sales manager is also responsible for brand promotion. ?e must make the product popular amongst the consumers. ' banner at a wrong place is of no use. anopies must be placed at strategic locationsB hoardings should be installed at important places for the best results. Motivating team members is one of the most important duties of a sales manager. ?e needs to make his team work as a single unit working towards a common ob(ective. ?e must ensure team members don1t fight amongst themselves and share cordial relationship with each other. Develop lucrative incentive schemes and introduce monetary benefits to encourage them to deliver their level best. 'ppreciate whenever they do good work. !t is the sales manager1s duty to ensure his team is delivering desired results. Supervision is essential. Track their performances. #ake sure each one is living up to the e$pectations of the organization. 'sk them to submit a report of what all they have done through out the week or month. The performers must be encouraged while the non performers must be dealt with utmost patience and care. ?e is the one who takes ma(or decisions for his team. ?e should act as a pillar of support for them and stand by their side at the hours of crisis. ' sales manager should set an e$ample for his team members. ?e should be a source of inspiration for his team members. ' sales manager is responsible for not only selling but also maintaining and improving relationships +ith the client. lient relationship management is also his 6"'.

's a sales manager, one should maintain necessary data and records for future reference.

?ere are +C attributes of a great sales manager* +0 Passion. This is also one of the top qualities of a master closer and the only one that can1t be taught. 3ithout a passion for the home building industry, it1s impossible to lead and inspire a team, Tarullo says. -0 #ntegrit . ombined with passion, these are the two most important qualities for a sales manager. 8They need that core,9 Tarullo says. 8!f they don1t have those, they shouldn1t be in sales management.9 .0 Positive attitude. !t1s up to a builder1s leadership to put smiles on the faces of the sales team and set the tone for the company. D0 Coaching. Seventy percent of a sales manager1s time should be spent coaching, either in groups or one on one, Tarullo says. 'ny sales manager who says the workload doesn1t allow that kind of time with the staff needs to e$amine how the day is being spent and ditch or delegate any activity that doesn1t affect lead generation or conversion. E0 0eadership b e3ample. 8The sales manager should be out on the sales floor with his people,9 says Fim apaldi, director of sales for the :entura division of Standard =acific ?omes and author of The <ltimate Gew ?ome Sales Success #anual. 8That1s where you1re most productive. ,ead by e$ample, make them accountable, push them, and get them out of their comfort zone.9 H0 0o alt . Sales managers need to go to bat for their sales team members, says Debbie Dompke, sales manager for hicago%based ,e$ington ?omes. 8,et them know you1re on their side,9 she says. 83hen they know you1re sincere, it1s amazing the work ethic you1ll get in return.9 I0 !vailabilit . Dallas%based sales trainer 2ob ?afer says paperwork has to be done, but it can1t be used as an e$cuse 8to not do the tough stuff.9 !t1s easier than dealing with people, to be sure, he says, adding, 8'dministrative tasks never talk back to you.9 3hen he was a sales manager, he got to work at I a.m. and spent two hours on paperwork before the phone started ringing. Then, when the sales centers opened, he was available to work with his sales teams in the field. J0 Motivation. This includes encouragement and recognition. Dompke says she does this in 8so many waysKcontests, games, dancing, singing, dressing up. Lou laugh together and play together.9 M0 Continuous learning. Doctors, accountants, attorneys, and other professionals keep learning their whole lives in order to keep their skills up to

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date. Sales managers need to do likewise. 83hen you don1t grow,9 8you leave the door open for someone else.9 apaldi says,

+C0 0istening and communication. This is an underpinning for most of the other qualities. Lou can1t be a good coach or motivator if you1re not a good communicatorB and you can1t continuously learn, lead by e$ample, or demonstrate loyalty without being a good listener. 8Lears ago, the sales manager1s (ob was about paper management, organization, and managing the interest lists,9 apaldi says. 8Gow, it1s about keeping the sales team accountable, motivated, and focused on the basics of selling. ! always preach to people that real estate sales is the hardest (ob to be good at and the easiest (ob to fail at.9 'nd Tarullo feels that the sales manager1s (ob is the key to that success. 8! think it1s the toughest (ob in the business because you have to wear so many different hats,9 she says. 8Lou need to be a disciplinarian but also a coach and a motivator.9

4b5ectives o$ Sales Management Sales management entails numerous ob(ectives which are e$ecuted by sales managers. There are mainly three such ob(ectives +. Sales :olume -. ontribution to profits .. ontinuous Growth The sales e$ecutives in this case are the ones who help implement these ob(ectives. ?owever it is the top management who has to outline the strategies to achieve these ob(ectives of sales management. The top management should provide products which are socially responsible and are marketed in a manner which meets customers e$pectations and does not break it. Thus sales management involves a strong interaction between Sales, marketing and Top management. Sales Management and $inancial results &inancial "esults are another ob(ective of sales management and are closely related and therefore sales management has financial implications as well. Sales A ost of Sales N Gross =rofit Gross #argin A 5$penses N Get profit.

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Thus the variation in Sales will directly affect the Get profit of a company. ?ence maintaining and managing sales is important to keep the product @ service @ organization financially viable. The ;b(ectives of sales are therefore decided on the basis of where the organization stands and where it wants to reach. !t is a collaborated effort from the top management along with the marketing managers and sales managers to provide with a targeted estimate.

P26S#C!0 D#STR#'7T#4* The distribution part of the marketing mi$ if of the neglected child. #any market planers tend to take e$isting distribution strategies and channels. Distribution e$penditure and plans must always be coordinated with the other parts of the marketing mi$. =roduct ownership has to be transferred somehow from the producer to the consumer Goods also must transfer from the production site to the location where they are needed. Distribution role within the marketing mi$ is getting the product to its marketB all responsibility rests with the distribution channels. Getting the product to market entails a number of activities, most importantly arranging from its sales /and transfer of title0 from the producer to the final customer. Distribution channels ' distribution channel consists of the set of people and firms involved in the flow of title to a product as it moves from the producer to the final customer or business users. ' channel of distribution always includes both the producer and the final customer for the product in its present form as well as any middle man /such as retailers and wholesalers0. 2esides producer, middleman and final customer other institution aid the distribution process, among these intermediaries are banks, insurance companies, storage firms and transportation companies.

PERS4*!0 SE00#*G

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&2!T #S PERS4*!0 SE00#*G) The personal selling is the personal communication of information to persuade a prospective customer to buy a produce or service or idea, it is the ma(or promotional tool used to reach this goal. The effort of sales people go far beyond simply making transactions, they also include following 5$plaining product benefits Demonstrating the proper operation of the product 5ducating customers about the new product 'nswering questions and responding to the ob(ections ;rganizing and implementing point of purchase promotion. 'rranging the terms of purchase &ollowing up the purchase to ensure that customers are satisfied Developing the relationship with the buyers ollecting market and competitive information to improve marketing strategies

=ersonal selling is mostly used when* The market is concentrated either geographically , in a few industries or a few large customers The product has a high unit value, quite technical in nature or requires demonstration. The product must be fitted to the individual customers needs as in case of insurance or investments The product is in the introductory stage of its life cycle The organization does not have enough money for an adequate advertising.

FE!T7RES 8 C2!R!CTER#ST#CS 4F PERS4*!0 SE00#*G &ollowing are different features which are present in the personal seller Sales people represent their organization in the outside world attitudes about a company and its product are often based on the impression left by salespeople Sales people typically operate with little or no direct supervision therefore to be successful salespeople must be creative and persistent Salespeople are authorized to spend company funds. they spend money for transportation, food, housing, entertainment, and other e$penses Salespeople must frequently travel a considerable amount

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Salespeople often have profit responsibility today1s salesperson do much of the strategic planning for their individual territories. !n cooperation with sales manager, they decide what target market they pursue, how they will deal with each market segment.

F7*D!ME*T!0S 4F S7CCESSF70 PERS4*!0 SE00#*G Sales people must have greater fle$ibility, he must tailor sales presentations to fit the needs and behavior of the individual customers ?e must have the potential of e$plaining the product benefits, answer questions of his customers ?e must be truthful ?e must behave in a reliable manner #ust seek similarity of personality between you and the customer and the commodity interest and goals Sales person must see whether the person or his prospects has the potential to pay for the product or not.

R40E 4F PERS4*!0 SE00#*G #* M!R9ET#*G =ersonal selling is the interpersonal arm of promotion mi$. 'dvertising consists of one%way, non personal communication with target consumer group in contrast personal selling involves two way personal communications between sales people and individual consumer %weather face to face, by telephone, through video conferences, or by other means. =ersonal selling can be more effective than advertising in more comple$ situation like e$plaining product benefits, demonstrating the proper operation of the product, educating consumers about new products, answering different questions about their products and clear any doubts about it, organizing and implementing point of purchase promotion and also arranging the terms of sale, follow up the purchase to se that consumer is satisfied, also develop such a kind of personal relationship that the consumer can trust your product also it is very important because through this sales person can collect very useful competitive information. Sales people can also work with whole sellers and retailers to gain their support and to help them be more effective in selling the company1s product they serve as a critical link between a company and its consumer. Sales people also represent consumer to the company, they learn about the needs of the consumer and work with other in the company to create greater consumer value. SC4PE 4F PERS4*!0 SE00#*G !n the business there are two types of personal selling activities !nside selling ;utside selling

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#nside selling !t involves retail stores. !n this group we include the sales person in the stores and the sales people at the catalog retailers who take telephone orders. 'lso included are telephone orders takes at manufactures and wholesalers, most of whom taking e$isting customers routine orders over the telephone. 4utside selling Sales people go to the consumer. They make contact by telephone or in person. #ost outside sales force usually represents producers or wholesaling, middleman, selling to the business users and not to the house hold consumers. !n outside selling, we also include +. =roducers whose representatives sell directly to the household consumers /e.g.0 insurance companies. -. "epresentatives of retail organizations who go to the consumer1s house to demonstrate a product, give advice, or provide an estimate such as sales people for some furniture stores and home heating and air%conditioning retailers. .. "epresentative of non profitable organizations /e.g.0 charity funds raisers, workers for political candidate. C2!PTER *4 : &2!T M!9ES ! G44D S!0ES PERS4* The term sale representative covers a broader range of positions in our economy. The position range from to the least to the most creative type of selling Sales force performs one or more of the following tasks for their companies* Prospecting* Sales representatives find and cultivate new customers Targeting% they decide how to allocate their scarce time among prospects and customers Communicating% sales representatives skillfully communicate information about the companies products and services Selling% sales person know the art of the salesmanship, approaching, presenting, answering ob(ections, and closing sales. Servicing% Sales representatives provide various services to the customers A consulting on their problems rendering technical assistance, arranging financing and e$pediting delivery #n$ormation gathering% Sales representative conduct market research and intelligences work and fill in call reports

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!llocating% Sales representatives decide on which customer to allocate scarce products during product shortages.

M4T#;!T#*G S!0ES F4RCE #otivation is the process through which hidden needs are aroused. Some sales people will put forth their best effort without any coaching from the management. &or them selling is the most fascinating in the world. They are ambitious and self status, but ma(ority of sales representative require encouragement and special incentives from the management to work at the best level. This is specially true of field selling for the following reasons*

The nature o$ the 5ob The selling (ob is one of frequent frustrating, sales representatives usually work alone, their laws are irregular and they are other away from home, they confront aggressive, competing sales representative, they do not have the authority to do what is necessary to in the account they lose large orders that they have worked hard to obtain. 2uman nature #ost people operate below capacity in the absence of special incentives such as financial gain or social recognition. Personal problems Sales representatives usually preoccupied with personal problems such as sickness in the family, marital discord or debt etc. M4T#;!T#4* M4DE0 #otivation satisfaction effort =erformance reward

The above model suggest that higher the sales person motivation the greater is his or her effort , greater effort will lead to greater performance which will lead to greater rewards and greater rewards will lead to greater satisfaction which will again lead to reinforce motivation. The model implies following

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Sales manager must be able to convince sales people that they can sell more by working harder or being trained to work smarter. 2ut if sales are largely determined by economic conditions or competitive action this linkage is undermined. Sales manager must be able to convince sales people that the rewards for better performance are worth the e$tra effort , but if the rewards are too small or of the wrong kind the linkage is undermined

C2!PTER *4 < T2E PERS4*!0 SE00#*G PR4CESS #ost companies take a customer% oriented approach to personal selling as consisting of several that the sales person must master. These steps focus on the goal of getting new customers and obtaining orders from them, however most sales person mush of their account on e$isting and building long term customer relationships. STEPS #* T2E SE00#*G PR4CESS #ost selling program view the selling process as consists of several steps that the sales person must master. These steps focus on the goals of getting the new customers and obtain orders from them. =ersonal selling involves following steps Prospecting and =uali$ ing Preapproach !pproach Presentation and demonstration 2andling ob5ections Closing Follo+"up

PR4SPECT#*G

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The first step in the selling process is to identify prospects. 'lthough the company will try to supply leads, sales representatives try to make their own leads can be developed in the following ways* 'sking current customer about the names of the prospects ultivating other referral sources, such as suppliers, dealers, non competing sales persons, bankers and trade association e$ecutives. Foining organizations to which sales person belongs. 5ngaging in the speaking and writing activities. 5$amining data sources /newspapers and directories0 in search of names. <sing the telephone and mail to find leads. Dropping in unannounced on various offices.

>7!0#F#C!T#4* Sales representatives must needs skills in screening out poor leads . prospects can be qualified by e$amining the following* &inancial ability ,ocation :olume of business Special requirement ,ikelihood of continuous business. PRE!PPR4!C2 2efore calling upon the customer it is very important that the sales person should learn as mush as possible about the organization /what it needs, who is involved in the buying0 and its buyers /their characteristics and buying style0, this step is known as pre%approach. The sales person can consult standard industry and online sources, acquaintances, and other to learn about the company. The sales person should set call ob(ectives, which may be qualifying the prospects, to gather information and to make an immediate sale. 'nother step is to decide on the best approach, which might be a personal visit , a phone call, or a letter. The best timing should be considered carefully because many prospects are busiest at certain time. &inally the sales person should give a thought to an overall strategy for the account. !PPR4!C2 The sales person should know hoe to greed the customer tom get the relation up to the start. This involves the sales person appearance, the opening lines, and

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the follow up remarks and the opening lines should be positive for e$ample, 8#r.'li ! am Salem 'hmed from the = hotel =eshawar and appreciate your willingness to see me. ! will do my best to make this visit profitable and worthwhile for you and your company this might follow by key questions and active listening to understand the buyer and his her needs. PRESE*T!T#4* !*D DEM4*STR!T#4* During the presentation step of the selling process sales person tells the product story to the buyer, showing how the product will make or save money. the sales person describe the product features and concentrate on the consumer1s need and benefits. <sing need%satisfaction approach, the sales person starts with the search for consumer needs by getting the consumer to do most of the talking. This approach calls for good listening and problem solving skills. 3ith the proper pre approach information the sales person can design a sales presentation that will attract the prospects attention. The sales person will try to hold the prospects interest while building a desire for the product and when the time is right , attempt to stimulate action by closing the sale . this approach is called '!D' / an acronym formed by the first letters of 'ttention, !nterest, Desire 'nd 'ction0, is used by many organization. 'fter attracting the interest of the prospects it is very important to hold and stimulate desire for the product with sales presentation. The sales person must always know how the product will benefit the prospect. ompanies have developed three styles of presentation. Canned approach is the oldest approach in memorization of sales talk, covering the man point. !t is based on stimulus response thinking* that is the buyer is passive and can be moved to purchase by the us of right stimulus words, pictures, terms and actions .canned approach is mostly used in door to door and telephone selling. Formulated approach is also based on stimulus@ response thinking, but identifies early the buyer1s needs and buying styles and than use a formulated approach to this type of buyer the sales person initially draws the buyer into the discussion in a way that reveals the buyers needs and attitudes.. then the sales person moves into formulated presentation that shows how the product will satisfy the buyer needs. This is not canned approach but follow a general plan. *eed satis$action approach starts with a search for customer1s real needs by encouraging the customer to do most of the talking. This approach calls for good listening and problem solving skills. The sales person than the sales person takes on the role knowledgeable business consultant hoping to help the customer save money or make more money. Sales presentation can be improved by demonstration aids such as booklets, flip charts, slides, movies and audio Aand video cassettes during the demonstration,, the sales person can draw five influence strategies.

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0egitimac . The salesperson emphasizes the reputation and e$perience of his or her company. E3pertise. The sales person shows deep knowledge of the buyer1s situation and company1s product, doing this would being overly 8smart9. Re$erent po+er. the sales person build on any shared characteristics, interests, and acquaintances. #ngratiation. The sales person provides personal favor/ a free lunch, promotional gratuities0 to strengthen affiliation and reciprocity feelings. #mpression. the sales person mOnages to convey favorable personal impressions.

4;ERC4M#*G 4'?ECT#4*S ustomer almost always pose ob(ections, during the presentation or when asked for an order. This resistance can be psychological or logical. Ps chological Resistance includes "esistance to interference =reference for established supply source or brands "eluctant to giving up something Dislike of making decision <npleasant association about the other person Geurotic attitude toward money 0ogical resistance includes ;b(ection to price Delivery schedule ertain product or company characteristics.P To handle these ob(ections the sales representatives maintains a positive approach by* 'sking the buyer to clarify the ob(ections Questions the buyer in a way that the buyer has to answer his or her own ob(ection Denies the validity of the ob(ections Turn the ob(ections in to reason for buying C04S#*G

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Gow the sales person attempts to close the sale. Some sales people do not get to this stage or do not do it well. They lack confidence or feel uncomfortable about asking for an order or do not recognize the closing signal from the buyer, including physical actions, statements, comment, and questions. Sales person can use one of the following techniques They can ask for an order ;ffer to help the secretary write an order 'sk whether the buyer wants ' or 2 to make minor choices such as the color or sizes etc. !ndicate what the buyer will lose if the order is not placed now The sales person might offer the buyer specific inducements to close, such as a special price, an e$tra amount no e$tra charge or a gift

F4004& 7P !*D M!#*T!#*!*CE This last step is necessary if the sales person wants to ensure customer satisfaction and repeat business this includes* !mmediately after closing the sales person should complete any necessary details on delivery time, purchase terms, and other matters The sales person should arrange a follow up call or visit when initial order is received , to make sure there proper installation, instructions and servicing, this visit should detect any problems, and also ensures the sales person interest. The sales person should develop an account maintenance plan to make sure that the customer is not forgotten or lost.

M!*!G#*G S!0ES F4RCE *!T7RE !*D T6PES 4F S!0ES PERS4* The sales (ob is quiet different from the stereotype of the past. The image of the high pressure, fast friendship is largely outdated as in the nation of price cutting order chaser. There are following types of person seller @. T2E PR4FESS#4*!0 S!0ES PERS4* ' new type of sales person has emerged A the professional sales person. Today these reps are typically managers of designated market, which may be geographical or category of customers. They frequently engage in a total selling T6PES 4F S!0ES PERS4* Driver

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!nside order taker ;utside order taker #issionary sales person Sales engineer onsultative sales person

Driver !n this type of sale person primarily divides and supplies the product e.g. soft drink or fuels and service the account The selling responsibility of these sales person or authorized and rewarded for finding opportunity to increase sales to e$isting account.

#nside order ta-er !n this type of sales person he takes orders and assists the customer at the sellers place of business e.g. sales clerk of imperial stores 4utside order ta-er !n this type the sales person goes into the field and finds and requests for orders e.g. sales rep for a radio station selling advertising time to the local business. Missionar sales person This type of sales person is e$pected to provide information and other services to e$isting and potential customers, perform promotional activities, and build goodwill. ' missionary sales person does not solicit orders . an e$ample of this (ob is an detail sales person for pharmaceutical firm such as #erck or ,illy. Sales engineer !n this position the ma(or emphasis is on the sales person1s ability to e$plain the product to the customer and also to adapt the product to a prospective needs of the customer1s particular needs . the products involved here are typically are comple$ , technically sophisticated items. ' sales engineer usually provides technical support and works with another sales representative who calls regularly on a given account. Consultative sales person This involves the creative selling of goods and services. thMis category contains the most comple$ , difficult sDlling (ob A especially the creative selling of services, because you can1t touch, see taste or smell them . SE0ECT#*G !*D RECR7#T#*G S!0ES PERS4* 't the heart of every sales force operation is the recruiting and selecting of good sales people. The performance difference between an average sales person and

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top sales person can be substantial. in a typical sales force , the top .C percent of the sales person might bring HC percent of the sales. Thus careful selection of sales person can greatly increase overall sales force performance. 2eyond the difference in sales performance, poor selection results in costly turnover. 3hen a sales person quits, the cost f finding and training new sales person plus the cost of lost sales. RECR7#T#*G S!0ES PERS4* "ecruitment is the process of finding potential candidates to fill vacant (ob in an organization 'fter the management has decided the needed traits, it must recruit sales people . the human resource department looks for applicants by getting names from the following urrent sales person <sing employment agencies =lacing classified ads ontracting college students 'ttract top sales people Several policy and decisions are made in the recruitment phase these dimensions determine whether the (ob will filled by man or women or bothB 2y high school graduatesB business school graduatesB or university graduatesB by people who cn command highest salaries in their occupation, or by people willing to work for minimum wages. SE0ECT#*G The selecting process is not the a one%shot approach in choosing the suitable candidate for the (ob. !t involves a series of steps. 5ach step important because at each stage, information may be revealed which will disqualify the candidate a candidate has to pass through the series of barriers before getting the (ob in each of these steps (ob description matched with the (ob specification. Sales force selection involves three important tasks Determining types of people needed by preparing the written (ob descriptionB There have been many attempts to identify general set of personality attribute that e$plains selling success, however this list tends to be little practical because they consists of common sense characteristics. Some company analyze personal history of their e$isting sales representativein effort to determine the trait common to successful performers, even than when company thinks it knpows what attributes are measuring to which quality should be present on the e$tent and abondance of one set the lack of another is difficult, a better approach is to identify the specification for the practice (ob, (ust as if the company were purchasing equipment or supplies rather than manufacturing for which detailed (ob description is required.

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The description than become the basis for identifying the aptitude skills a need to perform the (ob. "ecruiting an adequate number of employeesB ' planned system of recruiting, a sufficient no of applicants is the ne$t step in the selection ' good recruiting system involvesB ;perates continually, not only when sales force vacancies occur. !t is systematic in reaching all appropriate sources of applicants =rovides flow of more qualified applicants than is needed &ollowing are the steps in the selection process +. =reliminary interview or screening -. 'pplication blanks .. Testing D. !nterviews E. "eference check H. #eeting with the departmental head I. =hysical e$amination J. !nduction RECR7#T#*G !PP0#C!*TS ' planned system for recruiting sufficient number of employees is the ne$t step in the selection process a good recruiting system* ;perates continuously, not only sales force vacancies occur. !s systematic in reaching all appropriate sources of applicants. =rovide a flow of more qualified applicants than is needed. To identify, large organizations often use placement services on college campus or professional employment agencies. Smaller firms that need fewer new sales people may place classified ads in trade publication and daily newspaper. #any firms solicit recommendations from company employees, customers or suppliers. M!TC2#*G !PP0#C!*TS &#T2 2#R#*G SPEC#F#C!T#4*S Sales managers use a variety of techniques Aincluding application forms interviews, e$aminations%to determine which applicants posses the desired qualification. :irtually all companies ask candidates to fill out application indicates areas that should be e$plored in an interview Go sales people should hired without at least one personal interview conducted by different people in different physical settings . pooling the opinions of a number of people increases the likelihood of discovering any undesirable characteristics and reduces the effects of one interviewer1s possible bias.

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The individual involved in the selection process need to be aware of the laws against discrimination in order to avoid inadvertent violations. TR!#*#*G S!0ES F4RCE Training is the organized procedure by which people acquire knowledge and @or skills for a definite purpose because competitors have much programmed. The need for the trainings program should be scientifically determined and they must be designed to meet those needs. a number of approaches have been suggested by the scholars, researchers, and e$perts for determining organization1s training needs. #oore and Dutton contend that locationB size and magnitude of training needs should be determined in order to get effective results for the money being spend for training #any companies sends their sales representatives into the field immediately after hiring them they are supplied with samples, order book, and the description of their territory but mush of the selling is ineffective and unreliable, today the customers are mush educated and more demanding and many more supplies customer e$pert sales to have deep knowledge, to ideas, to improve the customer operation and to effective and reliable, this require much higher investment in training. Training programs are off course costly, they involve large outlays for instructors, materials, and space, paying a person who is not yet selling and closing opportunity because he or she is not in the field. Today1s sales representative spends a few weeks to several months in training. The median training period is -J in service companies and D weeks in consumer =roducts ompany. Training time varies in the comple$ity of the selling task and the type of person recruited into the sales organization. The training has several goalsB Sales representative require to know the company ?e needs to know the products of the company Sales reps needs to know the customers and competitors. Sales reps need to know how to make effective sales presentation. Sales reps need to understand field procedure and responsibilities. C4MPE*S!T#*G S!0ES PE4P0E To attract sales people, a company must have an appealing compensation plan these plans vary greatly both by industry and by companies within the same industry. The level of the compensation must be close to the going rate for the type of the sales (ob and needed skills. To pay less than the going rate would attract too few quality sales peopleB to pay more would be unnecessary. MET24D 4F C4MPE*S!T#4*

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&inancial rewards are by far most widely tools for motivating sales people, it is very important to design and administer in effective sales compensation , financial rewards may be direct payments /salaries, wages0 or indirect monetary compensation /paid vacation, pension, or insurance plan0 5stablishing a compensation system cause for decisions concerning the level of compensation as well as level of compensation. Three widely used methods of sales force compensation areB Straight salary a straight salary is affi$ed payments for a period of time during which sales person is working it is typically used while compensating new sales person or missionary sales person, opening new territory, selling a technical product that require lengthy period of negotiation it provides a security and stability of earning for sales reps. This plan gives management control over reps efforts and the reps are likely to spend time on nConselling activities that caters to customer1s best interest. The drawback of this method is that it does not offers any incentives for employees. Straight commission a commission is the payments tied to specific unit of accomplishment. Thus a rep may be paid ER of every sale. a commission method tends to have (ust opposite merits and limitations of straight method !t is used whenB +. a strong incentive is needed to generate sales -. a very little non selling work is required. .. a company is financially weak and must its compensation e$penses directly to sales ' heavy emphasis on commission can cause emphasis on sales not on customers. The ideal method is the combination plan, that has the best features of both the straight salary and straight commission S7PER;#S#*G ! S!0ES F4RCE Supervising a sales people is difficult because sales people work independently at far flung areas, locations and where they cannot be observed continually, if too closely it can duly constrains the sales people, one of the attraction of the selling (ob the freedom it offers sales people to develop creative solutions to customers problems, close supervision can use this sense of independence, but also little supervision can contribute to the lack of direction sales people who are not supervised may not understand what the companies and supervisors e$pects from them./e.g.0 how mush time to spend servicing e$istence accounts, and how much developing new businesses.

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MET24D 4F S7PER;#S#4* =ersonal observation the most effective supervisory method is personal observation in the field. Typically at least half manager1s time is spend traveling with sales persons. "eports sales people and check by sales managers prepare daily, weekly and monthly reports. 'nnual calling plans it show that which prospects to call at which month and which activities to carry out. 'ctivities include taking parts in trade shows etc Time and duty analysis this shows how the sales person spend it time on different activities. !nternet the fastest growing sales force technology tool is the internet which helps to gather competitive information, monitoring customers websites and researching industrial and specific customers.

E;!07!T#*G S!0ES PE4P0E #anaging sales people include evaluating the performance of sales people. Sales e$ecutive must know what the sales force is doing in order to reward them or make constructive use proposals for improvements. 2y establishing performance standards and studding sales people1s activities, managers can develop new training programs to upgrade the performance of the sale force1s efforts. 'nd, of course, performance should be the basis for compensation decision and other rewards. =erformance evaluation can also help sales people identify opportunities for improving their efforts. 5mployees with poor sales record know they are doing something wrong. ?owever, they may not know the problem if they lack ob(ective standards by which to measure their performance. To improve the performance of the sales person it is very important for the sales manager to know the actual performance of the sales rep, some of the sources of information are B Sales reports monthly weekly and daily work plans and longer term territory marketing plans helps an e$ecutive to evaluate performance of the sales person all reports it is another source of information it shows which person or prospect to call on at which time.

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5$pense reports these reports helps to understand the activities of the sales person s. these e$penses are partly or wholly repaid to the sales person. !nternet it is now most widely used tool for gathering information. T6PES 4F E;!07!T#4* &ormal evaluation it produces several benefits it forces management to develop and communicate clear standards for (udging performance and together well balance information about each sales person. &ormal evaluation gives sales people constructive feed back that helps them to improve future performance finally sales people are motivated to perform well because they will have to sit down with sales manages and e$plain their performance. !n formal evaluation managers compares a sales person1s current performance with the Cast performance such as a comparison should directly indicate the person1s progress.

E;!07!T#4* 4* >7!*T#T!T#;E '!SES Sales performance should be evaluated in terms of inputs /effort0 and output /result0 to gather inputs such as sales volume or gross margin provide a measure of selling effectiveness. !n quantitative evaluation we measure followingB all rate* no of calls per day or a week Go of formal proposals presented Gon selling activities* no of promotional displays set or training session held with distributors and dealers Sales volume per product, customer group Sales volume as Rage of quota Gross margin per product Go of orders and amount losing rate* no of orders divided by no of calls. >7!0#T!T#;E E;!07!T#4* =erformance evaluation would be much easier if it could be based on quantitative criteria. The standard would be absolute and deviation from standard could be

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measure precisely. Qualitative measure would also minimize the sub(ectivity and personal bias evaluators. Some commonly facts are* 6nowledge of company1s products, policies and competitor. Time management and preparation ustomer relations =ersonal appearance.