Chapter 1

Introduction to Sales Management

Difference between sales and marketing

Starting point
Factory

Focus
Factory

Means
Selling and promoting

Ends
Profits though sales volume

Selling concept
Market Customer needs Coordinated marketing Profits through customer satisfaction

Market concept

Evolution of Sales Management

Baniyas Pheriwallahs British Yankee Peddlers Greeters & Drummers

Role of Sales Management

To generate sales and earn revenue Maintaining good customer relationship Managing the profitability of a firm Managing customer complaints Building brand value in the eyes of the customers.

Duties and Responsibilities of a Sales Manager

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

Types of selling
Order taker sales people Order creators Order getters

Types of Selling
Inside Order Taker Order Takers Delivery Sales People Outside Order Takers Selling Function Order Creators Missionary Sales People New Business Sales People Front Line Sales People Order Getters Organizational Sales People Consumer Sales People Sales Support Sales people Technical Support sales People Merchandisers

Evolution of personal selling

Consultative Selling Business Management Partnership Strategies

Negotiation Persuasion

Types of personal selling

Selling to resellers

Industrial selling Retail selling Services selling

Selling to business user Institutional selling Selling to government Tangible Inseparable Heterogenous Perishable

Sales management process

Formulation of a strategic sales programme Implementation of the sales programme Evaluation and control of sales force performance

Formulation of a strategic sales programme

The External environment Potential Customer Competition Legal and political environment Technological environment Social and cultural environment The Internal environment Objective and Missions Human resources Financial resources Capacity utilization R & D activities

Marketing Strategy Product and product lines Pricing policy Distribution strategy Promotion Policy Advertising and sales promotion Sales management functions Account mngt Policy Sales force organization Sales planning, Forecasting and Quota setting

Sales force Territory design And route Planning

Implementation of the sales programme

Sales management Determinants of the Sales peoples performance Sales persons view of Job requirement, Role perception Supervision Environmental Variables Selection and Recruitment of Sales personnel Sales training Motivating the Sales force Compensation System Reward system Performance Sales volume Quota allocation Selling expenses Profitability of Customer Level of customer Service Sales reports Ethical practices Outcomes

Aptitude

Skills

Motivation Level

Evaluation and control of sales force performance Companies conduct Sales analysis Cost analysis Behavioral analysis To monitor sales programmes.

Chapter 2 Selling Skills and Strategies

Types of buyer
Innovators (2 %) Early Adopters (13 %) Early Majority (34%) Late Majority (34%) Laggards (16%)

Selling and buying styles

9
Concern for the customers
(1,9) People Oriented

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

8 7 6 5 4 3 2

I am customers friend, I want to understand him and respond to his feelings and interests so that he will like me. It is the personal bond that leads him to purchase from me. (5,5) Sales technique Oriented I have tried an effective routine for getting a customer to buy. It motivates through a blended personality and product emphasis (1,1) Take it or Leave it I place the product before the customer and it sells itself as and when it comes.

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

Concern for sales

Selling skills
Problem solving skills Effective communication skills

Selling Skills
Listening Skills Negotiation and bargaining skills Conflict management and resolution skills

Trust Building
Truth of words Competency (ability/ Knowledge) Intent or empathy (placing the customer interest etc.) Likeability ___________________________________ What customers are saying Analyze their spoken words Attentive to their non verbal expression

Communication process
Feedback Intended Message Perceived Message

Encoding

Noise

Decoding

Sent Message

Received Message

Sender

Channel

Receiver

Communication process
contd. Managing body language:
Personal Appearance Posture Gestures Facial Expressions Eye Contact Space Distancing

Personal Appearance
First Impact Individual personality Dress, hairstyle and overall appearance

Posture
Posture = Wealth Position of hands, legs and other parts Good salesperson posture Discourage, tired and worn out posture

Facial Expression
Smile, Frown, Raising Eyebrows, Tightening Jaws Biting the lips, raising eyebrow at regular intervals Blinking the eyes

Eye Contact
Eye is the extension of brain and window to the soul

Space Distancing
Formal Presentation must have 4-12 feet Face to Face Conversation ___________________________________ Language Courteous and cheerful No strong arguments and opinions Avoid Jargons Dont Lie Dont mix friendship

Listening Skills
Good Listeners welcomes
New Ideas Stays Informed Up to date Out of Danger

Sales person spends more time in receiving communication than in transmitting it .

3 Types of Listening
Content Listening: To understand and retain the speakers message. Ex Critical Listening : To understand and evaluate the meaning of speakers message at several level. Empathetic Listening : To understand the speakers feelings, needs and demands.

Process of listening
Attendance Interpretation Remembrance Evaluations Response Action

Levels of listening
Feedback Paraphrasing Clarifications Emphatic listening Active Listening Barriers to Listening !

Paraphrasing
Salesperson tries to paraphrase the question by mirroring the questioners point For example: The Sales person may say, So what you are saying is you think that I am just giving the company line, whereas what you are need is more help in financing and on the spot service. Immediate response will be Yes

Clarification of the issues

Sales person involves working little harder with the customers words to identify his real concern For Example: So what I hear you saying that you have got two main problem..

Empathetic listening
Salesperson tries to show that he understand the feelings of the customer. For Example: you know we have been there too. Dont forget we have worked in a bad way in 1995,

Active Listening
Salesperson identifies the emotions underlying the customers words. Ex.: It sound like you feel really alone out there, without much support. You are frustrated because you are putting in all this hard work and all I feel is that we can be with you for achieving your goal. Is that it? Answer will be: Yes

Conflict management skills

Components of conflict Interest, Emotions and Value

The Conflict Process

Stage I: Potential Opposition or Incompatibility

Communication
Semantic difficulties, misunderstandings, and noise

Structure
Size and specialization of jobs Jurisdictional clarity/ambiguity Member/goal incompatibility Leadership styles (close or participative) Reward systems (win-lose) Dependence/interdependence of groups

Personal Variables
Differing individual value systems Personality types
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Perceived Conflict

Stage II: Cognition and Personalization

Felt Conflict
Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility.

Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise.

Conflict Definition

Negative Emotions

Positive Feelings

Stage III: Intentions

Intentions Decisions to act in a given way.

Cooperativeness: Cooperativeness: Attempting to satisfy the other partys concerns. Attempting to satisfy the other partys concerns. Assertiveness: Assertiveness: Attempting to satisfy ones own concerns. Attempting to satisfy ones own concerns.

Dimensions of Conflict-Handling Intentions

Source: K. Thomas, Conflict and Negotiation Processes in Organizations, in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.

Stage III: Intentions (contd)

Accommodating The willingness of one party in a conflict to place the opponents interests above his or her own. Compromising A situation in which each party to a conflict is willing to give up something.

Stage III: Intentions (contd)

Competing A desire to satisfy ones interests, regardless of the impact on the other party to the conflict. Collaborating A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding The desire to withdraw from or suppress a conflict.

Stage IV: Behavior

Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.

Functional Outcomes from Conflict

Increased group performance Improved quality of decisions

Stage V: Outcomes

Stimulation of creativity and innovation Encouragement of interest and curiosity Provision of a medium for problem-solving Creation of an environment for self-evaluation and change

Creating Functional Conflict

Reward dissent and punish conflict avoiders.

Stage V: Outcomes
Dysfunctional Outcomes from Conflict
Development of discontent Reduced group effectiveness Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals

Procedures for handling Conflict

- lumping - avoidance - coercion - meditation - conciliation - arbitration - adjudication - negotiation