MODULE – 1

SALES MANAGEMENT

INTRODUCTION

History – 1760 AD in England, small scale manufacturers had a commanding influence on the
economy. Manufacturing received most of the attention, after the industrial revolution in UK and
the American Revolution in the USA, large scale manufacturing organizations started
dominating the economy. Separate functional department were established, which included
manufacturing, finance and sales. Due to manufacturing of large quantities of goods, selling to
nearby markets was not adequate and there was a need to expand market. This was possible with
the involvement of wholesalers and retailers, selling the company’s goods to consumers who
were located far away from the manufacturing unit.

In the meantime, marketing activities like advertising, sales promotion, shipping (dispatch) and
so on become not only important, but also complex. It, therefore, became necessary to split the
marketing function into sales function and other support function like advertising, sales
promotion, marketing research and marketing logistics (or physical distribution). This kind of
typical organization shown in below figure is seen even today.

Head-Marketing

1. Manager-sales
2. Manager-promotion
3. Manager-market research
4. Manager-market logistics
5. Manager-customer service

A sale is a transaction between two or more parties in which the buyer receives goods—either
tangible or intangible—services, and/or assets in exchange for money or in some cases, other
assets paid to a seller. In the financial markets, a sale can also refer to an agreement that a buyer
and seller make regarding the price of a security.

In the accounting world, the word “sales” is usually associated with total company revenue
rather than a single sale. The sales or revenue account is an equity account that increases when a
sale occurs. When a company sells a product, it debits cash for the sale price and credits
revenues for the same price.

According to Committee on Definitions, American Marketing Association, "Sales Management

is the planning, direction and control of the personal selling activities of a business unit including
recruiting, selecting, training, equipping, assigning, routing, supervising, paying and motivating,
as these tasks apply to the personal sales-force.
In the words of Hain- R. Tosdal. -Sales Management is the part of the management in which the
aim of an organization is to make provision for the sale of the produced commodities.

OBJECTIVES OF SALES MANAGEMENT

Every business firm has certain objectives to achieve. These objectives may be very explicit and
definitive, or they may be implicit or general. Although, firms have different mixes of objectives,
and they do place differing emphasis, on individual ones, the typical objectives include

(i) Profitability

Sales brings turnover for the company and this turnover results in profits. Naturally, sales
has a major contribution to profit and it is categorized as a profit function in several
organizations. But there is one more aspect to the contribution of profit by sales.

The objective of sales management is to sell the product at the optimum price. Some
companies might target a premium pricing for a product to make it premium in the
market. But if the sales team drops the price, then the objectives is not being met and the
profit is dropping. This has to be kept in check by seniors as price drops directly affect
the margin of the product.

(ii) sales-volume
Achieving sales volume is the first objective of Sales. The word “volume” is critical
because whenever a product sales start, the market is supposed to be a virgin market.
Thus there needs to be optimum penetration so that the product reaches all corners of the
region targeted. Ultimately, penetration levels can be decided on the basis of sales
volume achieved.
(iii) market share,
(iv) Corporate-image
(v) growth

A company cannot remain stagnant. There are salaries to be paid, costs have been
incurred and there are shareholders to be answered. So a company cannot survive
without continuous growth. If there is no innovation at the product level or at the
company level, then the company has to be blamed. But if the products are good, and still
the penetration is not happening, then it is the fault of sales manager and sales
executives.

It is the job of marketing to take feedback and bring new products in the market. But if
the sales team does not provide the appropriate feedback of “Why the product is not
selling”, then growth becomes impossible. This is why, more penetration and more
growth is in the hand of sales people.
NATURE AND CHARACTERISTICS OF SALES MANAGEMENT

1. Key Function—Sales management is a key function in many kinds of enterprises.

Manufacturing and wholesaling enterprises encounter a wide range of sales problems. Still and
Cundiff state, "Sales management problems exist even in companies not employing sales
personnel."
2. Responsible—It is responsible to an important part of marketing functions. It is also
responsible for the effective functioning of personal selling activities. Sales managers have still
other responsibilities. They are responsible for participating in the preparation of information
critical to the making of key marketing decisions, such as those on budgeting, quotas, and
territories.
3. Role—Sales managers participate in decisions on products, marketing channels and
distribution policies, advertising and other promotion, and pricing. Still and Cundiff write, "The
sales manager is both an administrator in charge o personal selling activities and a member of the
executive group that makes marketing decisions of all types."
4. Strategic Function—Sales management achieves personal-selling objectives through
'personal-selling strategy.'
5. Development of Human Resources—Boone and Kurtz write, "Sales management effort may
be exerted in the direction of securing, maintaining, motivating, supervising, evaluating and
controlling an effective field salesforce." Thus, the modern concept of sales management
revolves around the development of human resources.
6. Specialised Function—Sales management is a significant branch of general management. It is
one of the highly specialised functions of general management. A salesman must be expert in his
job. Hence, sales management is a field of specialised knowledge.
7. Consumer Welfare—The scope of sales management is not confined not only to self-
centered corporate goals of profit and sales maximization and sustained growth. It goes well
beyond these towards consumer welfare, satisfaction, delight and maximum social advantage by
making available the goods and services to the needy consumers in right time and at reasonable
prices, at the place wanted
8. Customer-oriented—Sales management is expected to be customer-oriented. It produces
what is needed by the customers in the quest of maximum social welfare. 'Customer delight' is
the fundamental guiding principle of sales management.
9. Functional Area—Sales management represents one of the most important functional areas
of management. It also represents all the principles of general management such as planning,
organizing, direction, motivation and control applied sales activities and sales-force for securing
better business performance, viz., reasonable profits through sales.
10. Challenging Profession—Sales management is a challenging profession. k n responsible for
obtaining sales volume, handling sales operations so as to make contributions to profits, and for
ensuring continuous growth. Sales executives inure the delivery of products with customer
satisfaction.
11. Sub-System of Marketing—Sales management is an integral sub system of marketing
management. It translates the marketing plan into marketing -performance. The sales manager is
a subordinate of the marketing manager. He advices the marketing manager on the areas of sales-
force management.
12. Synonymous with Marketing Management—Modern sales management is treated
identical with marketing management. In new age, it has attained wider and newer dimension. It
included management of all the marketing activities such as advertising, sales promotion,
marketing research, physical distribution, pricing, merchandising, and the like, in addition to the
management of sales-force.
13. Goals—the objectives of sales management includes achieving sales results giving major
contribution to profits, and experiencing continuous growth.

FUNCTIONS OF SALES MANAGEMENT

https://subjectquery.com/functions-of-sales-management/

The functions of sales management include various points such as:-

 Sales Planning
Sales Planning is the first functions of sales management and it means that the role of a
sales manager is to facilitate planning. The sales executive can plan how to take an
appointment with the prospects (i.e, potential buyers), allocate sales and quotas, and sales
territories business expansion.

 Recruitment & Selection

Recruitment is the second functions of sales organization/ management and it means that
the sales manager recruits the right person or individual with appropriate selling skills
and selects him for a sales job. This function is very essential for the sales
department because it helps to choose the effective manager or employee for the
organization.
 Internal recruitment
 Promotions
 Transfer
 Demotion
 Retired employees
 Notice board
 Job posting
 External recruitment
 Press advertisement
 Educational institutes
 Placement agencies
 Employment agencies
 Unsolicited obligations
 Employee recommendations
 Training
Training is the third functions of sales management and it means, it is a very
important function of sales manager. Since it enhances the skills, potential, knowledge,
and ability of a salesperson to take challenging jobs and perform effectively.

 Motivation & Remuneration

Motivation is the fourth functions of sales management and it is very necessary to attain
the sales target. It helps in understanding the means, emotions, sentiments, and
 expressions of a particular sales executive. While remuneration will help in the
compensation structure of a salesperson.

 Equipping
Equipping is the fifth functions of sales organization/management and it means that
the sales manager equipped the sales team so that the team is ready with
templates, brochures, price list, yellow papers, hoardings which can facilitate or increase
the volume of sales.

 Relationship Building
The relationship is the sixth functions of sales management and it means that the critical
task of a sales manager is to acquire the prospects, grow the customers, build the
customers, manage the customers and retain them through relationship marketing.

 Attainment of Sales Target

Attainment factor is the seventh functions of sales organization/management and it means
that the ultimate objective of a sales manager is to maximize the sales revenue. He will be
responsible for the attainment of sales target by himself and also by the team.

 Delegation
Delegation is the eighth functions of sales department/management and it means that the
degree of control and accountability is possible through delegation. There will be a
grouping of jobs along with the concerned authority so that work is completed within a
stipulated period of time.

 Supervising
Supervising is the ninth functions of sales management/representative and it means that
the task of the sales manager is to supervise the actions of sales executives so that he can
rectify any deviations if possible.

 Allotment of Sales Territories

Allotment strategy is the tenth functions of sales manager and it means that the sales
territories refer to the grouping of customers over a particular area. Companies allot sales
territories to sales representatives so that there is complete the coverage of the market.

 Allocation of Sales Quotas

Allocation strategy is the eleventh function of sales management and it means that the
sales quota refers to the quantitative targets assigned to individuals salesperson. These are
responsible for planning, controlling, and evaluation of personal selling activities.

 Sales Budget Preparation

The sales budget is the twelfth functions of a sales manager and it means that they
comprise of personal selling function expenses, expenses involved in transportation,
promotional expenses, tele-calling expenses and so on
  Communication
Communication is the thirteenth function of sales management and it means that the sales
manager maintains proper communication between various sales executives and inform
the top level of management about the sales targets or revenue attained.

 Sales Controlling.
The sales controlling is the fourteenth functions of sales management and it means if
there is the deviation in actual sales then the salesperson makes corrections sales targets
attained so that mismatch between actual sales and desired sales could be minimized.

TYPES OF SALES MANAGER

In the organization structure of many organizations, several levels or positions are involved in
sales management. The title “sales manager” (or field sales manager) may be applied to any sales
executive who manages sales people. There are three levels of sales managers in the
organizational hierarchy.

1. Strategic or top-level managers

The highest level in sales management is often called vice president (sales), or general
manager (sales), or national sales manager. They are responsible for long-term marketing
or sales planning, including scanning external environment, setting long-term and short-
term objectives and goals, developing strategies for achieving them, making decisions for
implementing strategies and action plans, and controlling the performance. They are also
a part of top management team for the organization’s strategic planning and coordination
between various functional areas.

2. Tactical or middle-level mangers and

These positions mostly carry the title of regional, zonal or divisional sales manager,
whose major responsibilities are to manage several branches or districts reporting to them
and also to implement the strategies and action plans approved by the top-management.
In some companies, these positions are eliminated in order to make the organization
flatter. Such organizations use cross-functional team selling for high sales potential
customers.

3. Operational or first-line managers

This is the level of sales management with titles such as branch sales managers, area sales
manager or district sales managers. They are directly responsible to achieve sales goals
and objectives by providing day-to-day supervision to sales people. They implement the
procedures and rules decided by higher levels of management.
SKILLS OF SALES MANAGER

The skills that are critical for the success of sales manager are

1. People skills: the people skills include the sales managers abilities to motivate, lead,
communicate, and co-ordinate effectively with the people around him/her. The ability to
develop team-oriented relationships is important. With respect to sale people, the sales
manager should understand their individual needs and skills, and carry out coaching or
mentoring to improve performance.
2. Managing skills: for managing the sales force, the sales manager should have
administrative or managing skills like planning, organizing, controlling, and decision
making. These skills can be learnt by attending management development programmes.
3. Technical skills: these are specific tasks or functions such as training, selling, negotiating
as well as the ability to use computers (or information technology skills) and problem-
solving abilities in the specific industry discipline.

QUALITIES OF SALES MANAGER

1. Communication skills
 Listening skills
 Negotiation & closing skills
2. Organization skills
 Plan effectively
 Prioritize your work
 Prepare cautiously
3. Time management skills
 Prepare in advance
 Schedule your time
 Start early
 Increase productivity with prime time
4. Analytical/problem solving skills
 Problem identification
 Structuring the problem
 Look for possible solution
 Making a decision
 Implementation
 Monitoring / seeking feedback
5. Team building skills
 Goals
 Dual leadership
  Team involvement
 Build trust
6. Initiative skills
 Never stand still
 Do more than is required of you
 Think as team member, not as a employee
 Consider every opportunity
 Always be prepared
 Ask too many questions
7. Motivate other skills
 Make a motive goal
 R&R
 Self-motivation
 Ideas of additional income
8. Leadership skills
 Autocratic
 Transactional
 Charismatic
 Transformational

PERSONAL SELLING

Personal Selling is the art of face-to face or other interaction with one or more prospective
purchasers for the purpose of making presentations, answering questions and procuring orders.
Personal selling is a personal (face-to-face, telephone, or Internet chat) presentation for the
purpose of making sales and building relationships.

Three major aspects of personal selling are:

1. Professionalism
2. Negotiation
3. Relationship Marketing

Professionalism: Today’s companies spend a lot of money to train sales people in the art of
selling. All sales-training approaches try to convert a sales person from a passive order taker into
an active order getter
Most sales-training programs agree on the following steps involved in any effective sales
process.
 Prospecting and Qualifying
 Pre-Approach & Approach
 Presentation and Demonstration
  Overcoming Objections
 Closing
 Follow-Up and Maintenance

Negotiation: Much business to business selling involves negotiating skills. The two parties need
to reach agreement on the price and the other terms of sale. Sales persons need to win the order
without making deep concessions that will hurt profitability. Although Price is the most
frequently negotiated issue, other issues include Contract Completion Time; Quality of Goods
and Services Offered;, Purchase Volume; Responsibility of Financing, Risk Taking, Promotion
and Title; & Product Safety.

Relationship Marketing: The principles of Personal Selling and Negotiation are transaction
oriented because there purpose is to close a specific sale. But, in many cases, the company is not
seeking an immediate sale but rather to build a long-term supplier-customer relationship. Many
companies today are moving their emphasis from transaction marketing to relationship
marketing.
Relationship marketing is based on the premise that that important customers need focused and
continuous attention. Sales people working with key customers must do more than call when
they think customers might be ready to place orders. They should call or visit at other times, take
customers to dinner and make useful suggestions about their business. They should monitor key
customers, know their problems and be ready to serve them in a number of ways.
When a relationship management program is properly implemented, the organization will begin
to focus as much on managing its customers as on managing its products.

SCIENTIFIC SELLING PROCESS

Most sales-training programs agree on the following steps involved in any effective sales
process.
 Pre-sale preparation
Some authors feel this should precede every other step and be considered as the first step
of the scientific selling process. Others, who consider ‘Prospecting’ as the first step,
prefer to club this step as a part of ‘Pre-Approach’. In a planned scientific process, any
sale is preceded by the pre-sale planning.
In this stage, the salesperson prepares himself with adequate knowledge about the
product he will sell, the company he will represent, the market in which he will sell, the
competitor products and prices, the categories of customers or segments he will target,
and the various selling techniques he will apply during the sale. Pre-sale preparation
helps the salesperson to present a much credible picture to the customer. A salesperson
with adequate knowledge about the industry, the technology involved in making the
product, and the target segment of each customer is well placed to provide valuable
information to the customers so that they can make an informed decision.
The salespersons knowledge universe should, among many things, include:
Product knowledge: Features, Benefits, Styles, Price etc.
Company knowledge: History, Management, Policies & Procedures etc.
Competitors’ knowledge: Industry structure, Market share, Market behavior etc.
 Prospecting and Qualifying
process of identifying potential buyers who have a need for the products and services
offered by the company, the ability to pay for it and the adequate authority to buy it. A
prospect list or pool, which consists of a group of names, gathered from various sources
like a telephone directory or mailing list etc., needs to be created. Identifying prospects is
also referred to as lead generation and prospects are referred to as leads. Qualified
prospects are also known as potential or prospective customers. Prospecting can be done
by the salesperson himself or by the company where he is employed. More and more
companies are taking up this responsibility for finding and qualifying leads so that the
salespeople can concentrate on the actual selling.
 Steps in prospecting
 Formulating prospect definition: Prospect definition is dependent upon the
nature and type of product. Different product categories may have
different prospect definitions. A person who has the need for a particular
type of product satisfies the definition of a prospect for that product.
 Searching out potential accounts: Using the prospect definitions, the
salesperson combs different sources for the names of probable prospects.
There are several conventional and non-conventional sources of
prospecting and every salesperson innovates over these existing sources.
 Qualifying prospects and determining probable requirements: Prospective
customers must have the willingness, the financial capacity, and the
authority to buy and they must be available to the sales person. The leads
are qualified by contacting them over mail or phone. Their level of interest
and financial capacity is assessed. As information is assembled on each
tentative prospect, it is easier to estimate the probable requirements of
each for the types of products sold by the company.
 Relating company products to each prospect’s requirements: From the
information assembled, it is usually possible to determine each prospect’s
probable needs. From what the salesperson knows about the company’s
products, their uses, and applications, he now selects those that seem most
appropriate for a particular prospect.

 Sources of prospecting
 Friends, Relations and Acquaintances: This is, probably, the most fertile
source for those who have newly entered the selling field. These are the
people whom the salesperson knows. They, in turn, know many other
people.
 Referrals – Endless Chain: A referral is a prospect recommended by an
existing customer or acquaintance who is familiar with the product. It is
easy to get an appointment and to sell to a referral.
 Cold Calling: It is an approach in which the salesperson goes from door to
door and tries to find out the prospects. Cold calling is calling on a group
of strangers who may or may not be prospects. This method is the only
alternative when referrals are difficult to come.
 Observation: In this method the salesperson looks around for the types of
prospects that he requires. E.g. EPBAX sellers look for construction sites
& newly coming up office spaces to prepare a list of prospects.
 Non-competing sales force-sales people of non-competing products are a
rich source of getting prospect names. Non-competing sales-personnel can
strike agreements to exchange information. E.g. A salesperson selling
copiers can provide information about the prospects for computers.
 Telemarketing: Prospects are telephonically contacted. At times
telemarketing is also used to verify sales leads generated by
advertisements or direct mailers. E.g. Credit card issuers, Personal and
home loan providers use telemarketing to qualify prospects for follow-up
 Lists and Directories: There are directories of telecom companies,, trade
associations, chambers of commerce, professional associations etc. There
are yellow pages, regional and local directories some free and some
bought at a price.
 Direct Mail, Direct response Advts., Sales Letters: Advertisements carry
coupons where interested people request for additional information,
catalogue and direct queries. Some companies provide self-addressed
postage-paid envelopes. Sales letters are also sent to prospects. There is a
follow-up call and an appointment is sought.
 Educational Seminars: The prospects are invited to seminars. The contents
and delivery of the seminars are carefully planned.
 Trade Publications: There are trade publications giving a detailed report
about a particular industry. E.g. ORG report for pharmaceutical industry.
 Tradeshows and demonstrations : These are tradeshows and exhibitions
either for industry in general or for one particular industry. The prospects
walk into the stalls at such shows. It is easy to identify the prospects and
close the sale here. Sometimes, prospects are qualified at the show, and a
follow-up sales call is needed to close the sale. E.g. Annual Book Fair at
Kolkata or the Auto Expo at Pragati Maidan, Delhi.
 Database: Data processing enables a company to match products and
buyer needs. Some companies maintain their own database while others
buy them from marketing research organizations. There are databases
available for specific segments.
 Internet: Many companies maintain a web-site on the internet. They are
frequently used for lead generation.
 Prospecting by Non-Sales Employees: Many organizations also involve
non-sales people in prospecting. They are made sensitive to selling
opportunities and are, sometimes, given incentive to identify prospects.
E.g. A receptionist at the bank may be trained to identify prospects and
pass on the leads to the sales team.
 Networking: A salesperson has to be social and interactive to develop a
network. Creating contacts and nurturing them is an art referred to as
networking.
 Centres of Influence: An influential individual in either social, business,
religious or political spheres, who himself may not take a buying decision
 but influences others to do so. A referral from a centre of influence is
effective as it carries a certain level of authority.
 Combination Approaches: Organizations, usually, use a combination of all
the above methods or sources to get the prospects. E.g. Prospects may be
identified at a trade show and later are subjected to telemarketing or are
chosen to receive mailers or sales letters.

 Pre-Approach & Approach

Since the initial contact made with the customer is referred to as the approach, anything
that a salesperson does before this initial contact may be considered as pre-approach. Pre-
approach is concerned with spelling out pre-sale objectives and developing a pre-sale
presentation plan. A salesperson is expected to know about his company, its products and
about competitors. [These, we have discussed under the heading Pre-Sale Preparation.]

Various Approach Styles

 Consumer benefit approach: Focuses on consumer benefit
 Referral Approach: Focuses on a third party’s recommendation.
 Introductory Approach: Focuses on the selling company and the salesperson.
 Features Approach: Focuses on the physical elements of the product.

 Presentation and Demonstration

This is the stage where the salesperson tells the ‘story’ of the product to the prospective
buyer. In a sales presentation, the salesperson presents his products and services before
the prospect and makes effort to presentation, the salesperson presents his products and
services before the prospect and makes effort to create and modify their interest into sales
realisation for the company. A salesperson usually makes use of printed sales aids
materials (brochures, prospectus, information literature, pamphlets or fliers, visual aids,
charts, slides, movie clips etc) to ‘paint a picture’ in the mind of the prospect.

Types of Presentation
The three categories of sales presentation based upon the structure of presentation are:
 Canned presentation: Prepared by the company and there is little scope of
modification for each prospect. Companies prepare printed as well as audiovisual
materials to support the sales presentation. New salespersons can confidently use
the presentation that addresses all the relevant issues for the customers.
 Organized presentation: Salespeople have enough scope to word the presentation,
but on the lines of the company policy and systems. This brings more flexibility
and encourages participation of the prospects.
 Tailored presentation: It is a customer-specific approach and the presentation is
developed from the detailed evaluation of a prospective customer’s business and
is specifically designed for that specific customer. This is the most common
method of business-to-business selling.
 Two types of sales presentation based on the form of presentation are: oral
presentation and the written presentation. Written proposals, also known as Sales
Proposals are used for selling high value industrial products and for selling to the
government. This is combined with oral presentations in solution and software
selling. Less expensive business-to-business selling and all other consumer selling
involve only oral presentation.

Sales demonstration
If presentation is ‘telling a story’ about a product, demonstration is ‘showing and telling’.
Sales demonstration is an effective communication tool that invests the product with the
sensory appeal. It attracts attention, creates interest and stimulates desire. This cannot be
achieved through verbal presentations alone. A salesperson usually makes use of printed
sales aids materials and, if possible, the product or at least a sample of the product to
‘paint a picture’ in the mind of the prospect.

Tools for Effective Demonstration

 Product Itself: Product itself is the most widely used sales aid. Videos can be
shown to illustrate the working of products. Demonstration rides are common for
vehicles.
 Models: It may not always be possible to use the product itself in demonstrations
due to constraints like size and mobility problems. Demonstration, then, is
restricted to small miniature models of the product which give an idea about the
actual working of the product.
 Photographs/Illustrations: Photographs/Illustrations are used to pass on relevant
0.22information.
 Portfolio: It is a loose-leaf binder or ca portable case containing promotional
materials.
 Reprints: Reprints of articles and write-ups about the product in media are
effective selling aids.
 Graphs/Charts, Test Results: Graphical and chart-wise information are of great
help. Test results from reliable agencies are convincing.
 Laptops and Demonstration Software: A laptop loaded with presentation software
can assist the salesperson in giving his presentation more convincingly and in a
more organized manner.

 Overcoming Objections
Objection handling is when a prospect presents a concern about the product/service a
salesperson is selling, and the salesperson responds in a way that alleviates those
concerns and allows the deal to move forward.
 Closing
Closing is referred to as the task of asking for the order. It is, typically, referred to as an
attempt to make the customer sign on the dotted lines of the order pad and making him
pay for the product. This stage signifies that the prospect, having gone through the
demonstration process, has been convinced enough to make a buying decision. A
salesperson must ask for the order in order to make the presentation a successful one.

Methods for Closing

There is no one best method for closing the sale. One has to use a method that is
appropriate. At times, a combination is used. What matters is not only the close, but also
the relationship one establishes after the close. Some common methods of closing a sale
are as follows:
 Trial Close: The customer may be ready to buy or maybe not. The opportune time
to close is to judge his readiness or otherwise. A probing or confirmation question
may be put across.
1. Which color you prefer - The blue or orange?
2. Where would like the delivery to be made – at your office or residence?
3. We can have the goods delivered by January - is that okay to you?
 Summary-of-Benefits Close: The salesperson needs to summaries the entire
presentation in terms of benefits to bring about a favorable decision. Benefits
which address the personal concerns of the buyer are highlighted
 Assumption Close: It is assumed that the customer is going to buy. It comes at the
end of the presentation. The salesperson starts writing the order and expects the
prospect to sign on the dotted line
 Special Concession Close: An additional incentive is given to close the sale. It
could be in the form of a low price, credit plan or added feature.
 Multiple Options Close: Several options are put before the customer in terms of
configuration, delivery and price. The customer examines these. When the close
comes near, some of the options are eliminated to reduce confusion. Such closes
are very common while selling office equipments.
  Direct Appeal Close: The order is sought directly. Once a direct appeal is made,
the salesperson leaves it to the customer to decide.
 Combination Closes: Two or more closing methods can be used in certain
situations, e.g. say a summary of benefits and a special combination.

 Follow-Up and Maintenance

Immediately after the close, the salesperson needs to thank the customer and reassure him
on his decision to buy. He has to restate and clarify necessary details (like the delivery
time, purchase terms and other matters that may be important to the customer). The
salesperson should, also, schedule a follow-up call for a time after the delivery would
have taken place so as to ensure proper installation, instructions and servicing. Follow-up
and maintenance takes care of reducing any cognitive dissonance or post-purchase
remorse. These steps, if carried out with sincerity and earnest, may also generate good
leads in the form of referrals. If the salesperson wants to ensure customer satisfaction and
repeat business follow-up and maintenance is a must.

Steps of Follow-Up and Maintenance

 Thank the Customer for the order.
 Congratulate him over his decision. The customer should be left with the
impression that the act of buying was his decision and that the salesperson merely
helped in the deciding process.
 Summarize the Deal. Write down in clear terms the salient features of the deal.
Mention what he is getting against what he is paying. Highlight the features and
the benefits.
 Reinforce the Deal. Equip the customer with sufficient literature and materials to
fall back upon once the salesperson leaves his premises.
 Follow-Up on promises made during the presentation.
 Maintain a good relationship with the prospect. Customer satisfaction also
includes building up a long term relation with the prospect.

TYPES OF SALESMEN

 Manufacturer’s Salesman
He is employed to sell goods directly to the consumers, wholesalers or retailers. He deals
in limited number of products and possesses specialised knowledge about the same. A
manufacturer salesman can be of three types.
1. Pioneer salesman - He is primarily concerned with the sale of the new product. He is
very competent and creative in his job.
2. Dealer serving salesman - He supplies goods of his manufacturer to various dealers.
He also imparts training to the salesmen of the dealers.
3. Specialty salesman - He sells the manufacturer’s products directly to the consumers.
He usually undertakes costly items like washing machines, televisions and calculators
 etc. He tells the consumers about the use of the product by giving practical
demonstration. He should be expert and well trained in his job.
 Wholesaler’s salesman
He is appointed by the wholesaler and deals with the retailers. He informs the retailers
about the availability of various products with the wholesaler and helps them in selecting
the articles. A wholesaler’s salesman is of two type’s viz., indoor and outdoor salesman.
1. Indoor salesman serves the retailers at the wholesaler’s premises and supplies them
goods
2. Outdoor salesman goes to various retailers in order to collect their orders.

 Retailers salesman

He is appointed by the retailer and deals directly with the consumers. He caters to the

needs of the consumers both at the retailer’s business place and attending the consumers

at their place. He also distributes free samples of the goods to the consumers and also

gives them practical demonstration of the products.

A retailer’s salesman can be either creative or service salesman. A creative salesman is

concerned with introducing a new product in the market whereas the service salesman is

concerned with maintaining the demand of the existing products in the market.