Professional Documents
Culture Documents
Sales Management
Sales Management
Company first makes the product and then figures out Company's first determines customer needs and wants
and then figures out how to make and deliver a
how to sell it.
product to satisfy these needs and wants.
Management is sales volume oriented.
Planning is short run oriented, in terms of today's Planning is long run oriented in terms of new product,
product and markets.
tomorrow's markets and future growth.
Stresses needs of seller.
These days' customers have a wider range of alternatives. Business cannot run on the assumption that whatever
products are manufactured they are all purchased by the customers. These days customers needs and
competition are the key factors, which have decisive role in the success of modern business. A businessman
cannot succeed in his business unless the customer needs are satisfied. A satisfied customer can create ten
more customers for the product, while a dissatisfied customer creates hundred of dissatisfied customers.
Producers should produce such products in which the customers are interested, not those they can manufacture
easily; engineers should design products that the customers are interested in, not those that engineers are
interested in designing, similarly sales people should sell products that can satisfy the customer's needs, not
those that are easiest to sell or that pay higher commission.
The marketing concept teaches the sales people to consider the needs of the customers and adopt suitable sales
tactics with the customer oriented approach, so that the customers feel that they are well treated and fully
satisfied with the goods or services consumed. The salespeople willing to survive in the market for a long run
should always help the customers to solve their problems rather than pressuring them into buying whatever is
available.
Hence, the sales job in the changed business environment is challenging, creative as well as intellectually
rewarding. These are the major reasons behind the success of some salespeople in their job.
Make sure the sales function makes the most effective contribution to the achievement of companys
objective and goals.
Determination of sales force objective and goals.
Forecasting and budgeting the sales opportunities should be forecasted through market research and
other source of information by management. After calculation of sales forecasting, the budgeting is
done.
Planning, Organizing and Controlling are the main parts in sales management to operate the sales.
Selection of efficient and effective sales force.
Motivate sales people to achieve the companys objective. It is most important role of management to
motivate sales force to through various ways to make people drive towards objective. There can be
various ways to motivate people; rewards, incentive, training & development etc.
One of the most important roles of sales management is to integrate marketing. Marketing is now
integrated parts of sales. Without cooperation of sales people marketing becomes complex to
implement.
Role of Selling in the Firm / Company:Since quick growth and development of the firm or company is possible only through the personal
selling, it is important to the firm or company also. Personal selling contributes a lot to the firm or
company in the following ways1. Personal Selling is more effective and reliable than non personal promotional tools: - When
the customers need a lot of information and assistance in making purchase decision, the
personal selling becomes more effective and reliable than the advertising and other non
personal promotional tools. Because advertising can just inform about the product, but
personal selling can assure the customers by making desired goods available to them when
required.
2. Develop better understanding and relations with the publics: - Direct communication or face
to face communication with the customers is possible only through the personal selling.
Through direct contacts better understanding with the customers can be developed and
relations with the public's can be improved. Both of these are the main sources of company
success.
3. Receive Quick Response: - Personal selling establishes face to face communications with the
customers and therefore, immediate response from the customers regarding the company's
offer, policy and salesperson's behavior is possible. Quick response from the customers helps
the firm to make quick decisions regarding the concerned subject matter.
4. More Flexible than advertising: - Advertising is fixed in nature and once it is published it cannot
be changed to adjust the situation; while the personal selling has the advantage of flexibility. It
can be adjusted to the changed situation unless the understanding is established between the
two parties.
5. Personal selling is more Descriptive: - Through personal selling, detailed explanation can be
done about the firm's product, its performance, its use techniques, terms or warranty etc.
While such a detailed description of goods is not possible through advertising and other non
personal tools.
Role of Selling in Society:Selling normally indicates personal selling, where salespersons have a greater role. Personal selling
contributes a lot to the individual customer and society in the following ways:
1. Better understanding of customer and social needs: - Personal Selling establishes two way
communications between the salespersons and the customers. This type of direct
communication helps to solve their respective problems through better understandings of
customer's expectations and social needs.
2. Helps educating people properly: - Through personal selling it becomes possible for the
salespersons to communicate to the customers about the company's products, services and the
program in a desired manner. Therefore, personal selling helps to educate people properly.
3. Helps developing and introducing innovation effectively: - Since the salespeople always
remain in direct contact with the customers, they can observe and understand the customer's
actual needs. Therefore, through personal selling, a company may be able to develop a right
product and successfully introduce the company's new products and services to the customers
and the society. This will help them to make decision regarding the purchase of goods. As
compared to common products for the purchase of more technical type of products people
require more help from the salespeople. Since, the salespeople are the main source of such
information; they play a pivotal role in improving social welfare.
4. Helps increasing product value:- Salespeople not only supply information about the products
and services, they also make those goods and services available to the society in the right place,
in the right time, through the right channel and hand over the possession of goods to the
customers. Therefore, if manufacturing process provides from utility, the personal selling
provides place utility, time utility and possession utility and hence increase product value;
because, if the product remains in the store or warehouse, the product will have no value at all.
Prospecting
Prospecting is a process of identifying new customers for the products and converts them into repeat
customers. A prospect is a person or organization that might have a new for a salesperson's products or services.
Importance of Prospects Prospects are important from the following angles
Sales process begins with prospecting The beginning of the company's sales process is prospecting.
After prospecting only other sales process like pre approach, sales presentation, meeting objections and
closing sales are performed. Without identifying prospects company cannot survive long run.
The main source of potential customer includes "Suspects". When they have actual need for the
company's products, then only they become prospect of the company. When they have both ability and
authorities to make purchase, they become qualified prospects. The sales process does not end with converting
suspects into prospects; its goal is to convert the "prospects" into "customers". So the salespeople should have a
list of prospects.
Need for prospects Prospects are the integral part of the salespeople. The improvement of the
company's roles and success of salespeople is possible only through effective prospecting. With the
changes in population movement and competition, business turnover also may go on changing. Without
having a flow of new prospects into the business, company will soon be out of business. So prospecting
should be a continuous process in business.
Prospecting is more important in solving business like selling life insurance policy and high technology
business.
Characteristics of Good Prospect Experienced and successful salespersons always try to have qualified
or good prospects. A qualified or good prospect is one who has need to satisfy, ability to pay, authority to buy,
eligible to buy and who can be approached easily had favorably.
1. The existence of need or want to satisfy A potential customer must have a need or want for the
salespeople's products without which they cannot be satisfied. Customers with need or want come to
the salespeople, but by using high pressure tactics, sales may be made to those who do not need or
want the salespersons products. Such type of sales does not make benefit to the company or
salespeople.
A customer may have varied level of needs, so different customers purchase goods to satisfy their
different needs which the salesperson need to understand.
2. Ability to pay A potential customer should have not merely a need or want to satisfy, he/she must
have money or ability to pay for the products. If he has only need but not money, he will not make
purchase the salesperson's products. He may get such products on credit but not always. So while
prospecting the customers, salespeople need to analyze their level of regular income, economic status,
existence of the bank balance etc.
3. Authority to buy If a prospect has need to satisfy and also ability to pay, but if not authorized to make
purchase, he will not make purchase the salesperson's products. So he cannot be a potential prospect.
Only those members of the family or organization can be potential prospect who is authorized to
purchase along with need and ability to pay.
4. Eligible to buy In order to be a qualified prospect, he should be eligible to buy. An eligible prospect is
one who can meet all requirements of the company. For example, in order to be a qualified prospect for
life insurance policy, he should pass the necessary medical exam. This one factor alone eliminates him as
possible prospect.
Similarly, one those wholesalers and retailers can be qualified prospects, who can meet all requirements
of the manufacturer. A child cannot legally enter into any business contract, so he is not eligible for this
business.
5. Favorable Approach or Accessibility The next important criteria to identify the qualified prospect are
"can the prospect be approached favorably". Some people may have need or want to satisfy, ability to
pay, authority to buy and eligible to buy but still not qualify as prospect because they are not easily
accessible or cannot be approached. For example, the CEO of bank or big manufacturing company,
senior politicians cannot be approached easily by a young salesperson so although they possess all other
qualities of a prospect, they cannot be ranked as qualified prospects.
Methods of Prospecting Prospecting methods and sources vary depending upon the types of selling.
However, the more common methods of prospecting can be summarized as follows
1. Inquiries One of the important methods and sources of prospecting is inquiries through advertising,
telephone calls, ad catalogues. The interested person can contact the company or salespeople to
provide more information, while some may make purchases the company's products. In this way, the
salespeople may identify the prospects.
2. "Endless Chain" method Under this method, the sales representatives or salespeople try to get at
least the name, address and interest of one more person from each person they contact or interview.
This is a simple but effective method of prospecting since from each person one more prospect can be
identified. This method has been considered more effective in selling intangible or service products like
insurance, educational courses and investments. Similarly, this method has been popular in selling
industrial products also.
3. "Center of Influence" Method This method of prospecting is a modification of "endless chain"
method. In this method, some influential and well known men or women working in some important
departments or enterprises are selected or cultivated. They do not make direct purchases; they just
provide important information about the prospects and also try to motivate people to buy the
company's product. These well known and influential men or women are called "center of influence".
These centers or influence also help in appointing important salesperson by introducing their fiends
directly or through letters and telephone calls.
4. Exhibitions, Demonstrations and Trade Shows Exhibitions and demonstrating company's products in
public or trade fairs also can identify potential prospects. Interested persons may visit the show room
and make inquiries about the products exhibited or demonstrated in the show room. In most of the
public or trade fair, the salesman spend few minutes with the visitors, but this attempt may create
adequate rooms for future follow ups. Sometimes, the efforts of such salesman convert prospects into
qualified prospects. These days some of the companies of industrial products visit door to door and
demonstrate their products at free of cost. Interested persons make purchases.
5. Developing the list of prospects Under this method, individual salesperson develops the list of
prospects in their own way by the public records, telephone directories, newspaper, professional and
trade associations. These lists may be developed on the industrial categories or geographic basis. Then
they visit to the listed industries or companies and contact the targeted persons.
6. Friends and Acquaintances One of the effective methods of prospecting the qualified prospects is
through friends and acquaintances. They may serve as an important source of prospects because they
may provide the names and address of their friends and neighbors who have need for the company's
products. This method could be effective because from this source many persons of different groups can
be identified as prospects including social clubs, medical groups, trade associations, schools, colleges,
sports clubs, religious groups, professionals organizations etc.
7. Cold Canvas Method In this method, the salesman, individually or in group, travel and calls on the
persons listed individually or in group and also the listed companies and provides information about
their company and products. This method of prospecting is useful when the products have a wider use
or demand. Many suspects may have no need for the products, but some may show interest on it. So
though there is a high degree of time and information wastage, some companies use this technique to
create demand for its products. This method has one more advantage i.e. it can inform to all suspects
about the company and its products.
Method of Prospecting by Telephone Telephone prospecting is used to sell, especially the services
and expensive products such as life insurance, health insurance, accident insurance, investment etc. Some of the
methods adopted in telephone prospecting are as follows:
Developing a plan A salesperson should think about how to start, how to talk, what to talk, how much
to talk etc.
Making an opening statement Salespeople should introduce themselves first and their company and
try to create interest in the customer. For this, a salesperson should establish rapport or link between
the salesperson and the customer. Telling them about the benefits they can obtain from the company
and its products can create interest in the customer. Delivery of information should be short and
attractive.
Asking some qualifying questions After creating interest in the customer for company's products,
salesperson should ask few questions for qualifying the prospects i.e. to convert prospect into potential
prospect.
Requesting an appointment After qualifying a prospect, the salesperson closes the conversation by
requesting an appointment in convenient day, time and place because the sale will not be made over
the phone. When they meet as per their schedule, the salesperson demonstrates the goods and makes
sale the company's product.
Sales Presentation:
After the date and time for appointment is confirmed, the salesperson should be ready to meet the
prospects for sales presentation. However, in order to make sales presentation more effective and meaningful,
advanced planning is essential. Planning consists of activities how to present, what to present etc.
Planning in Sales Presentation Advanced planning in sales presentation is important from different
angles which are given below:
Saves time of buyers and sellers As we know that buyers always respect a well prepared salesperson,
the purchasing agents always expect timely and well presentation from the salesperson so that they can
function as professional buyers. The salesperson should understand that the buyer's time is valuable and
they want complete information with a limited time period. It is possible only through the well
organized and well planned presentation.
Helps salesperson to begin with Most salespersons feel certain tension regarding how to begin with
while meeting prospects for the first time, whether it should begin with story, action or share
experience. A well planned sales presentation relieves salesperson from this tension and helps to boost
his confidence since a considerable time and efforts is spent in developing each phase of sales
presentation.
Ensure effective presentation A well planned sales presentation minimizes the mistakes while
presenting the facts and products to the prospects. It makes clear that a well planned sales presentation
ensures the salesperson that the facts and product presentation is effective. A well planned
presentation may save company from loosing sales or prevents company against lost sales.
Increases company' sales A well planned sales presentation consists of complete and clear message,
appropriate illustrations or beautiful stores which may easily motivate the prospects. As such it may
help to increase company's sales.
Types of Sales Presentation There are three basic types of sales presentation.
1. The Standard Memorized Presentation It is a carefully prepared sales story that includes the entire
key selling points (sales talk to be presented) arranged in the most effective order. It is developed after a
careful analysis of the sales stories of the most successful salespeople. The best features and sales
points from various presentations are incorporated into a standard sales story, which are then
memorized.
Advantages The standard memorized presentation has the following advantages:
It ensures the complete and accurate story about the company's product and policies.
It adopts the best techniques and methods used by the most successful salesperson.
It helps the new and inexperienced salesperson.
It eliminates the repetition and saves time for both the salesperson and the buyer.
It guarantees the most presentation by having sales points arranged in a logical and systematic
sequence (orderly arrangements).
It provides effective answers to all possible objectives, which may be raised from the prospects,
and thus gives the salesperson confidence.
Disadvantages The standard memorized presentation has the following limitations.
It is inflexible and lacks originality.
It discourages the prospects from participating in the sales conversation i.e. discourages two
way communication.
The salesperson often finds it difficult to start again after being interrupted by the prospect.
Its use is not practical when many products are to be sold at a time.
2. The Outlined Presentation In this type of sales presentation, instead of preparing the whole story of
the company and its products to be presented to the prospects; some important points are noted down
in short form. It is usually a systematically arranged outline of the most important sales point to be
presented to the prospects. The salesperson need not memorize the whole thing; he is given freedom in
elaborating such points in his own way while presenting to the prospects.
Some companies provide their sales representatives with suggested outlines for each product. While
some companies provide just instructions on the techniques or developing such sales outlines on the basis of
which the salesperson develops the individual sales presentation.
Advantages The outlined presentation has the following advantages:
It is more flexible and not necessary to memorize the whole thing /facts.
Salesperson is given freedom to express his opinion in presentation.
Facilitates the salesperson to get back on the track if interrupted by the prospects.
Chance of two ways communication is high, as such the prospect's needs, opinions are highly
appreciated.
Disadvantages The outlined presentation has the following limitations:
The salesperson may not be able to express effectively since up to date facts are not prepared
for the presentation.
The new or inexperienced salesperson may not be able to prepare him for presentation.
Chance of repetition of facts is high.
Salesperson may be able to handle the prospects objections carefully since he is not well
prepared.
3. The Program Presentation The program presentation usually consists of a complete or illustrated
presentation that is developed from a detailed and comprehensive analysis or survey of the prospects or
customer's needs. This type of presentation is used extensively in trade selling, in the sale of industrial
equipment, office equipment and supplies, in management consulting work, in the sale of certain
advertising, and many similar type of selling.
Most of the prospects needs or problems identified will be supported by the visual aids, charts, graphs,
film slides etc. from sales presentation.
Presentation of the program After the program is carefully prepared it is presented to the
prospects targeted. The success of sales presentation depends upon the relevance of program
to the prospects needs or problems, quality of program prepared and the techniques of sales
presentation adopted by the sales representative.
Advantages The program presentation has the following advantages:
Emphasis is given on the identification of the prospects needs or problems.
Sufficient time is spent to gather relevant information to solve their problems or needs.
Attractive presentation is possible since sales presentation may be supported by visual aids,
charts, film slides etc.
Gets and maintain buyers interest When it becomes difficult to draw buyer's interest on products
merely by a simple sales presentation, salesperson needs to use drama in selling activity. While
dramatizing the sales presentation, he presents the products or services dramatically by using all his five
senses. In this process he may pretend something. He may act as a film actor, as a singer, as a dump
man and sometimes he may act as a magician. These activities may draw the interest of the customers
and will be helpful to maintain their interest for a long time.
Convinces the prospects The main intention of dramatizing the sales presentation is to prove that the
product will do what it is supposed to do or to prove that the product will satisfy the customers needs
and wants desired. This will assure and confirm the customers that they are getting a better product. For
example while selling a vacuum cleaner, the salesperson may show the using techniques, opening
techniques, packing techniques and so forth. While selling a ball pen he sketches a drawing in the pad to
prove the point and performance of the ball pen. In order to convince the customer about the product a
salesperson may create an unforgettable impression to the prospect. A convinced customer always buys
the product and most probably makes repeat purchase.
Improves understanding Dramatizing has a greater role in improving understanding with the
customers. Mutual understanding which cannot be developed through the simple sales presentation, it
can be developed by dramatization, especially by means of proving the performance of the product and
convincing the customers. There are certain products, which can develop a long term relationship with
the customers such as insurance. While selling insurance policy to the customer, the insurance agents
needs not only to get customer's attention and convince him about his service, but also a assure the
future of the customer and his dependants. Therefore, dramatizing improves not only immediate
relationship with the customer but also develops future relationship. In short, while dramatizing the
sales presentation, both salespeople and customers are equally involved in the sales job, so the
probability of improving understanding is high. There is an old proverb "Tell me I will forget, Show
me I may remember, but Involve me I will understand"
Makes a last impression Dramatization creates a strong impression to the customers about the
product and the company policy. Impression may be created in different ways such as by proving the
product performance in a fairer terms, by assuring them the future services, by convincing the
customers, by educating and re educating the customers about the use and performance of the product,
by presenting the factual information beautifully etc, so that the customers will remember may create a
lasting impression to the customers and the customers buy and repurchase the company's product
because of such unforgettable actions and evidences presented by the salesperson. An ordinary sales
presentation cannot create a lasting impression to the customers.
Visual Aids and Techniques for Dramatizing the Presentation:While dramatizing the sales presentation, the salespeople have to use several visual aids and techniques
to make the effort successful and effective.
Charts and Graphs Charts and graphs are diagrams representing the facts and figures about certain
objects. They suggest or indicate the particular trend or situation of an object. They are also helpful to
illustrate relationship between the variables relating to production, price, demand, supply, export,
import etc. Charts and graphs may include bars, pie diagram, semi circular diagrams, line diagram etc.
Customers or prospects who cannot understand the language of data can be impressed by these charts
and graphs. These charts and graphs may facilitate to compare a company's product or a range of
offerings with those of competitors to identify the company's position as compared to that of
competitors.
Photographic, pictures and advertisement Some companies may prepare photographs and pictures
and collect the paper pieces of advertisements made by the company and show them to prospects or
customers as evidence to illustrate the company's efforts in making customers satisfaction, to illustrate
the benefits to be received by the customers, to assure the customers about after sales services etc. For
example, a hotelier may show photographs and pictures of hotel building, rooms, external environment
or location of hotel. A resort owner may show the photographs or mountain resort, sea shore and
greenery of the spot, which may attract the customers and create interest to visit the resort.
Sales manuals and portfolios Sales manuals and the handbooks of the company containing the details
about company's workings, illustrations, facts and figures of sales and profits, charts and diagrams,
future program of the company relationships with other organizations and publics, contributions made
for social development etc. While the portfolios are the collection of sales talk and the guidebooks of
the company's working expressed in short form just to guide the prospects or customers. If customers
demand detailed information about the company, the salesperson needs to supply company's sales
manuals to them. By reading these manuals and portfolios, the customers may demand for product
offered.
Models, samples and gifts Among many visual aids and techniques used for dramatizing the sales
presentation, these models, samples and gifts are most commonly and popularly used by the most of
the companies. For most fashionable products several models of the product are prepared to
demonstrate, especially in clothing, toys, furnishing and other industrial products and equipments like
cars, kitchen equipment etc. On the basis of models demonstrated by the salespeople, the customer will
make an appropriate choice. Some companies prepare and distribute sample products like medicine,
books, paper products, food items etc. Distribution of samples also supports the company's total sales
volume and value. Similarly, some companies introduce the provision of giving gifts at the purchase of
certain value and volume of goods. Salespeople normally distribute the gifts of such products for which
they need to promote market and sales.
Film, slides, cassettes and overhead projectors When the goods are comparatively heavy and
expensive and are to be sold to group in a showroom, they are generally promoted through films and
slides. Because the operation of heavy machines and equipment is not possible for a salesperson,
motion pictures and slides are extensively used. In order to show filmstrips and motion pictures, a light
and portable overhead projector is used.
Testimonials Testimonials are the statements or letters written by the satisfied users certifying or
recommending to other prospects or customers to use the specified products or services of the
company or letter written or statements given by the satisfied customers expressing thanks and
appreciation for the performance of company and its products. In short, testimonials are the written
attestations by the satisfied users of the specified goods. Some salespeople with a view to increase sales
collect the testimonials directly from the satisfied users or through the magazines and newspapers and
produce to the prospects when needed. By reading such testimonials, the prospects may be satisfied
with company's products and they tend to buy such goods. For example Insurance company agents
normally use case histories of insurance claims, which report the injuries, or disabilities a policy holder
has suffered and the benefits the company has paid. Similarly, some new medical practitioners try to
collect such letters or statements from the satisfied patients. Similarly, company representatives who
sell air travel for major airlines and the sales representatives who sell construction materials like cement
and steel excessively use this technique to increase their sales. However, the effectiveness of a
testimonial is determined by the skill of salesperson with which it is used.
Product demonstration Product demonstration indicates performance test of the product. For the
purchase of some products the customers may have desire to prove the product's expected
performance and claims for themselves. Such a proof may satisfy or convince the customers and motive
to buy the product. Product demonstration converts salesperson's assurance into reality. Besides this, a
salesperson should always try to make the customers familiar with the product and result in a sale. For
example while selling a TV the salesperson shows the various programs and make familiar to the
customers with various systems of that TV. In this way, before making a purchase, the performance of
the product is tested on the spot. This type of dramatizing technique is applied in most of the technical
or mechanical products having many opportunities for demonstration like cars. In this case, salespeople
demonstrate as many sales features as possible including its appearance or style, comfort ability, safety
provisions, power steering and breaks, air conditioner etc. Product demonstration is not only an
effective technique of dramatization but is also one of the best forms of dramatization.