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    Sales Territories

    Uploaded by

    Ayush Garg
    Sales territories comprise groups of customers or geographical areas assigned to sales units. Territories may or may not have geographic boundaries and represent groups of customer accounts, industries, markets, or areas. Territories allow companies to obtain complete market coverage, establish salesperson responsibilities, evaluate performance, improve customer relations, reduce expenses, and better match salespeople to customers. Factors considered in setting up territories include sales driving distance, lead management, and workload. Sales quotas provide performance targets, standards, control, and motivation for sales units defined by territories, regions, branches, districts or individuals. Quotas can be based on sales volume, expenses, activities, or combinations.

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    Sales Territories

    Uploaded by

    Ayush Garg
    20 views55 pages
    Sales territories comprise groups of customers or geographical areas assigned to sales units. Territories may or may not have geographic boundaries and represent groups of customer accounts, industries, markets, or areas. Territories allow companies to obtain complete market coverage, establish salesperson responsibilities, evaluate performance, improve customer relations, reduce expenses, and better match salespeople to customers. Factors considered in setting up territories include sales driving distance, lead management, and workload. Sales quotas provide performance targets, standards, control, and motivation for sales units defined by territories, regions, branches, districts or individuals. Quotas can be based on sales volume, expenses, activities, or combinations.

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    Sales territories comprise groups of customers or geographical areas assigned to sales units. Territories may or may not have geographic boundaries and represent groups of customer accounts, industries, markets, or areas. Territories allow companies to obtain complete market coverage, establish salesperson responsibilities, evaluate performance, improve customer relations, reduce expenses, and better match salespeople to customers. Factors considered in setting up territories include sales driving distance, lead management, and workload. Sales quotas provide performance targets, standards, control, and motivation for sales units defined by territories, regions, branches, districts or individuals. Quotas can be based on sales volume, expenses, activities, or combinations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views55 pages

    Sales Territories

    Uploaded by

    Ayush Garg
    Sales territories comprise groups of customers or geographical areas assigned to sales units. Territories may or may not have geographic boundaries and represent groups of customer accounts, industries, markets, or areas. Territories allow companies to obtain complete market coverage, establish salesperson responsibilities, evaluate performance, improve customer relations, reduce expenses, and better match salespeople to customers. Factors considered in setting up territories include sales driving distance, lead management, and workload. Sales quotas provide performance targets, standards, control, and motivation for sales units defined by territories, regions, branches, districts or individuals. Quotas can be based on sales volume, expenses, activities, or combinations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 55

    Sales Territories

    A sales territory comprises a group of customers or a geographical area assigned to a sales unit . The territory may or may not have geographic boundaries It represents a group of customer accounts , an industry , a market or a specific geographic area .

    Why sales territories ?


    To obtain entire coverage of market To establish salespersons responsibility To evaluate performance To improve customer relations To reduce sales expenses To allow better matching of salesperson to customer To benefit sales people and the company

    Factors / Considerations
    Sales Driving Distance Lead Management Workload

    Sales Quotas
    Sales Quota refers to an expected routine assignment to sales units .to territories , region , branches , districts , individuals etc . Quotas provide performance targets Provide standards Provide control Quotas are motivational

    Types of Sales Quotas


    Sales Volume Quotas Sales in Rs , volume Expense Quotas selling costs / expense budget Activity Quotas no. of presentations made / no. of new a/c opened /no. of dealers visited etc . Quota combinations

    Salesmanship

    Salesmanship : Definition

    The art and science of helping people identify their needs , create desire to fulfill these needs , find and match the product services with these needs and desire with the soul aim to obtain a maximum level of satisfaction

    Salesmanship: As an art
    Artistic quality of presentation , presenting finer aspects of the products Presentation is logically made to convince other person to become interested

    The art of social disparity is used to inculcate a sense of desire to possess .

    Salesmanship : As science
    Research on consumer behavior Action and reaction Sequential happening of events (process of buying and selling)

    Personal Selling

    Personal Selling : Qualities


    Personal Confrontations
    Interactive relationship

    Cultivation
    Growth of relationship due to personal touch

    Response
    Customer feels obligated to respond

    Features /Aspects of Personal Selling


    Enhances customer confidence in the seller Promotes long term business relations through personal intimacy Provides human touch to business transactions Helps facilitate the seller to understand each customers needs and preferences more clearly Helps satisfy the customer by modifying the product as per customers choice and preference Powerful and effective tool for convincing the customer about the product Fosters better understanding of the product and an interactive opportunity to liaise with the sales personnel.

    Process of Personal Selling


    Prospecting & Pre- Approach Approach Presentation & Demonstration Meeting of objections Closing the Sale Follow up and Maintenance

    Prospecting
    Method of finding out the likely or potential customers
    Need to Buy Ability to buy Authority to buy Accessibility

    Prospecting
    Acquaintance References Cold Calling Centre of Influence Method Personal Observation Method Direct Mail or Telephone Method Company Records Retailers Other Methods ( trade fairs , exhibitions ,newspapers etc.) Leads from Sales Manager

    Pre approach
    Getting more detailed information about the potential buyers . Needs , habits , preferences ,nature , behavior , economic status etc . Distinction between most likely prospects and general prospects Helps in planning more effective strategy for approaching the prospects Source of information : Customers , Retailers , Directories etc .

    Approaching The Prospect


    HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT

    There is only one time to make a first impression

    Approach
    Meeting the prospect in person by the sales man .
    Secures favorable attention from the prospect and creates interest Secure willingness

    Approach adopted by Travelling Sales man Counter Sales men

    Essentials of a Good Approach


    Prior appointments Relaxed Atmosphere Timing of Approach Appearance & Open mindedness Command/Complete information Courtesies/Avoid Apologizing Win Buyers undivided attention Call Back /Follow up

    Methods of Approach
    Cashing in on Brand names or Companys reputation Customer Benefit Approach Innovative Product The Premium Approach The Approach of making the Prospect feel important The Survey Approach Interactive Approach

    Presentation and Demonstration


    Arousing Interest Promptness in presentation Clarity Showing proper quantity Demonstration and dramatization Appealing to the senses Suggesting tests Handling the goods

    Sales Presentation method


    Stimulus response method /canned approach
    Memorised sales talk or prepared sales presentation The sales person talks without knowing the prospects need Eg : used by telemarking execs

    Formula method / formulated approach


    It is based on stimulus response thinking that all prospects are similar The salesperson uses a standard formula- AIDA It is used if time is short and prospects are similar Shortcomings are prospects needs are not uncovered and uses same standard formula for different prospects

    Sales Presentation Method: Contd


    Need satisfaction method (FAB)
    Interactive sales presentation Find prospects needs , by asking questions and listening

    Consultative selling method /Problem solving method


    Sales people use cross functional expertise Firms adopt team selling approach It is used by software / consulting firms .

    Overcoming Objections
    The expression of disapproval of an action taken by the sales man .

    Why ?
    Natural aversion to new and unfamiliar ideas and goods Not convinced about the product or service Test the sales mans knowledge Mere excuses Too much pressure by the sales man No Need Recognition by sales man

    Handling Objections
    Listening attentively Admitting valid objections Anticipating objections Preventing objections : Never say I am telling you , it is so ; You do not know

    Some common objections


    Price objection
    Offer substitute Justify the price Offer discount Offer installment payment Show proofs

    Payment objection Service objection Time to buy objection

    Close
    Closing is the action on the part of the sales man to close the sales transaction. Features of successful closing :
    Positive Attitude Effective presentation and Demonstration Hold the attention Allow questions Hit at the right time Let the prospect decide

    Follow up and Maintenance


    Frequently in touch Satisfied customers buy and recommend

    Qualities of a successful Salesman


    Personality of the Salesman Knowledge of the Products Knowledge of customer psychology

    Personality of the Salesman


    Personal qualities :
    physical (health , posture , voice , appearance ) mental (alertness, imagination , self confidence , initiative , cheerful) Social ( ability and eagerness to meet people , effective speech , courtesy , good manners , tact) character etc.( honesty , courage, sincerity , loyalty , determination )

    Knowledge of Products and Selling Points


    Knowledge of the organization Knowledge of the Product Background Composition and construction Use and Performance Service and Guarantee Knowledge of market conditions Knowledge of government policies Knowledge of competition

    Knowledge of customers
    Gender Age Geographical area On the basis of characteristics shy, talkative , Suspicious, friendly , sarcastic , pompous , impatient , handicapped ,ill mannered , group shoppers On the basis of purpose ( industrial / consumption buyers)

    Sales Organization

    Classification
    Function based Product Based Territory / Geography based Customer based

    Function based

    Chief Sales
    Manager

    Personnel Manager

    Marketing Research Manager

    Advertising Manager

    Production Manager

    Product Based
    Marketing Manager

    Sales Manager ( Product : Soaps )

    Sales Manager( Products: Food )

    Sales Manager ( Product : Cream)

    Assistant Sales Manager: Product A

    ASM : Product B

    ASM : Product Y

    Territory/ Geography Based


    Chief Sales Manager

    Sales Manager : North

    Sales Manager : South

    ASM : Product A

    ASM : Product B

    ASM : Product X

    Sales force staffing


    Planning
    Establish responsibilities Decide the no. of sales people needed Outline the type of sales people needed (job analysis , job description , develop job qualifications )

    Recruiting
    Identify sources of sales recruits Evaluate the sources of recruits

    Selecting
    Develop tools and procedure for measuring applicants Select the sales people

    Sales force staffing contd.


    Hiring
    Make the job offer Acceptance of the job

    Socialization
    Socialization Assimilation

    Sales force job description


    Title of the job Reporting relationship Types of products and services sold Types of customers called on Duties and responsibilities Job demands Technical requirements Location and geographical area to be covered

    Why Recruitment ?
    To replace the vacancy created To cope with the expansion programmes

    Recruitment : Process
    Job Analysis :
    Determination of job traits : nature of duties and responsibilities Job description

    Personal Analysis
    probable chracteristics and qualities General qualities :personality , sound health , integrity , honesty etc . Particular qualities : educational qualification, past experiences etc . Technical knowledge : languages known , legal implications etc .

    Recruitment : Process Contd


    Sources of Recruitment : Internal / External Careful Selection of Candidates
    Application Blank References Personal Interviews Psychological Tests Medical Examination Final Interview

    Appointment Letter

    Sales Training
    Training is the process of learning that is specifically directed to the acquiring and developing of specific attitudes ,skills and knowledge for carrying out of specific objectives and tasks

    Sales Training : Importance


    To improve Sales Performance To influence Prospects in better way Provides expert knowledge Reduces Wastage Reduces Control and Supervision Develops High Morale Low Turnover of Sales Force

    Managing the sales training process


    Assess the sales training needs Design and execute the sales training programme Evaluating and reinforcement of sales training programme

    Popular Sales training needs


    Product knowledge Competitive knowledge Sales techniques /skills Company knowledge

    Methods used for assessing the training needs


    Sales managers observation Sales force survey Customer survey Performance testing Sales force audit

    Methods used in sales training programmes


    Classroom /conference training
    Lectures Demonstrations Group discussions

    Behavioural learning
    Role playing Case studies Simulation games

    Online training
    EPSS Interactive mutimedia Distance learning

    Methods contd
    On the Job training
    Mentoring Job rotaion

    Absorption training /Self study


    Audio cassettes Manuals CD ROMs

    Limitations
    Involves Expenditure Interference with the routine work Attrition

    Remuneration of Sales men


    A good compensation or remuneration plan motivates the sales force to perform selling activities n the most productive manner and achieve the objectives of the organization .

    Essential features of a sound Remuneration Plan


    Simplicity Flexibility Economical Promptness Fair and Equitable Adequacy Incentive Oriented Controlling Capacity Stability Low administration cost

    Methods of Remuneration
    Time spent on the job The volume /amount of sales made

    Modes /Methods
    Straight Salary method Straight Commission Method Salary and commission method Bonus /Profit Sharing/Other benefits Travelling/ Reimbursement

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