SDM 1
SDM 1
SDM 1
MANAGEMENT
1) Production concept
2) Product concept
3) Selling concept
4) Marketing concept
5) Societal concept
Societal marketing concept
Emphasis on
(Marketing Orientation) Seller’s Needs
Emphasis on
Customer
Needs
.
Nature and Role of sales
Management
The basic function and role of selling is to
generate sales and earn revenue for an
organization.
Today`s selling approach also highlights
maintaining good customer relationship,
managing the profitability of firm, managing
customer complaints, and maintaining brand
value in the eye of customers.
Nature and Role of sales
Management
Even best marketing programmes may fail if the sales staff
is ineffective or they are improperly managed
For many customers the sales staff represents the company
and the impression it carries determines its future business
relation with customers
Nature and Role of sales
Management
There is a cost aspect also as the cost of recruiting,
training, and managing the sales force is high and
any ineffective management program will include
diseconomy of scale of enterprise.
The job of sales manager is not only to organize
sales but also to carry out management functions
such as guiding and leading a set of people to
achieve sales target
Nature and Role of sales
Management
The function of sales manager can be classified into
two: personal selling and sales management.
a) Personal selling
it entails personal communication between a
seller and a buyer for the purpose of determining and
satisfying the buyers current and latent needs.
Nature and Role of sales
Management
It involves an individual salesperson or a sales
team to establish and build a profitable and
symbiotic relationship with customer over a
time for multiple transaction cycle.
In the process of building relationship, a
salesperson must determine a buyer`s needs
and influence or persuade the buyer to
purchase his product with the assurance that
the product or service will satisfy the buyer
more than the competitors products.
Nature and Role of sales
Management
b) Sales Management
It is more strategic and a long term
consequence, as it involve planning,
organizing, directing and controlling of all the
selling activities of an organization
Management of sales force demands attention
towards the emerging roles and functions of
the salespeople in the context of an evolving
environment
Nature and Role of sales
Management
At the lowest level of the sales force is sales
executive and the next level is sales manager
who handles 10-15c sales executive. Area
manager handle a few sales managers
As the no. of hierarchy increases, more and
more management functions get added on
the primary job of selling
Nature and role of sales
management
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 personal selling
• Industrial selling
• Retail selling
• Services selling
Types of personal selling
1. Industrial Selling
It is basically termed as BtoB selling but in a
traditional business model, it is characterized
as the manufacturing sector selling.
These are grouped into four categories on the
basis of their consumer base
Types of personal selling
a)Selling to resellers
A reseller is a wholesaler or a retailer or an
intermediary who buys finished goods and
resell them to the end –users..
b) Selling to business users
This means the output of one producer enters
into production process of another producer
to manufacture a final goods for the
consumption of end users
Types of personal selling
c) Institutional selling
These institutional customers use the products in their daily
operation.
Companies such as Xerox in photocopiers, J&J in surgical
equipments, and Reynolds in office stationeries sell directly
to institutions for institutional consumption.
d) Selling to governments
company is also selling their goods in govt. organization.
such as railway canteen,defence canteen etc.
Types of personal selling
2.Retail Selling
Retailing is defined as the all the activities directly
related to the sales of goods and services to
ultimate customers for personal or non business
use or consumption
3.service selling
Services such as insurance, airline, and travel are
intangible in nature. unlike products services
cannot be separated from their source and hence
cannot be stored for future use.
Types of Selling
Inside Order Taker
Order
Takers Delivery Sales
People
Outside Order
Takers
Selling Order Missionary Sales
Function Creators People
New Business
Sales People
2.Order Creators
Missionary salespeople who normally
don’t close a sale but persuade the
customers to promote the sellers brand.
E.g. MR
In this kind of selling, the objective is to
educate and make the people aware of the
product rather than closing a sale
Types of Selling
3. Order Getters
A .Front line Sales People
a) New Business Sale people
They are the front line salespeople who go door to door
to sell products. the function is to persuade new buyers
and non-users to buy a company products and services
b) Organizational salespeople
They are industrial sellers who try to establish and
nurture a long term relationship with organizational
buyer.
The selling job involve team selling where a cross
functional sales team, sales and technical staff joined
together, does a sales presentation.
Types of Selling
Selling concept
Market concept
Sales management process
g
Sales management process
Emerging trends
Customer orientation in sales
Relationship selling
management
Technology
Selling Skills
Listening Skills
Negotiation
and bargaining
skills
Pre-
Pre-sale approach Approach to
Prospecting before the
preparation the customer
interview
Handling
Follow up Closing the Customer Sales
action Sale Objections Presentation
.
The selling Process
1.Pre-Sale Preparation
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 competitors products and prices,
The category of customers or segment he will
target,
The various selling techniques he will apply during
the sale
The selling Process
Product Knowledge
It includes knowledge about the quality of
product, SKUs, price point at which they will
sold to various customers, the USP, Value
proposition etc.
If the sales person fail to supply the relevant
information the competitor may take advantage
of the situation and make the deal
Sales mangers should train the salespersons
for acquiring adequate product information
The selling Process
The sales person should have knowledge about type
and timing of various consumer promotion tools
like coupons, contests, refund offers, price pack
and premiums
They should have adequate knowledge about
transportation charges, they can be FOB( free on
Board)
The selling Process
A salesperson has to collect information about
The competitive environment
The structure of industry
Bargaining power enjoyed by each of the
force in business
Prospecting
Successful prospecting
No Yes
Successful prospecting
Prospecting
Prospecting is the 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 successful salesperson always efficiently utilizes
the selling time by distinguishing the prospects from
suspects.
Suspects have no potential demand for the goods at
the point of probe in selling process. However, a
proper follow-up many a time results in converting
the suspects into prospects
Prospecting
A salesperson identifies three sets of customers at the stage
of prospecting
a) Lead Customer-customer with a desire and need to
purchase the product but purchasing capacity not known
A sales person needs to screening skills to identify , their
buying power, financial transaction capacity
The process of collecting customer data and checking
lead parameter to make them quqlify as prospects are
refered as prospecting
Prospecting
b)Prospect Customers
The prospects are buying units who have a current
demand for the product and can get substantial
benefits through the acquisition of the product.
A salesperson `s job in this case is to take
prospects higher in the decisions process
Salesperson identifies the current stage of decision
making of the customers and then takes them
higher in decision making process for realizing a
sale
Prospecting
c) Qualified Prospects
The qualified prospects are those who have a need for
the produt or services in offer and have the ability to
buy them, but need further persuasion about product
delivering the desired level of satisfaction
The prospect in advance stage of decision making
become a qualified prospects for the salesperson.
A good prospecting helps the salesperson to
differentiate between prospects and suspects among the
lead prospects so that his energy and efforts can be
used for achieving higher sales
The Process of Prospecting
2.Creating Interest
1. Canned Presentation
2. Organized Presentation
3. Tailored Presentation
Sales Presentation
1. Canned Presentation
It is prepared by company, and there is little
scope of modification for each prospect
It is based on the research and designed by
experienced people in the organization.
New sales people can use the presentation that
addresses all the relevant issues for the
customers. This type of presentation helps in
building the confidence of the new salespeople
This kind of presentation sounds very
mechanical, discourages the prospects
participations, and is non enthusiastic in nature
Sales Presentation
2. Organized Presentations
In this salespeople have enough scope to word
the presentation, but on the line of company
policy and systems.
This brings more flexibility and encourages
participation of the prospective customers, and
overall structure is as per company guide lines.
The presentation can be developed on the basis
of information collected from field search,
which is not available with individual
salesperson
Sales Presentation
3. Tailored Presentation
It is developed from the detail evaluation of
a prospective customer`s business and is
specifically designed for that specific
customer.
This is most common method in B to B
business selling
This method is also applicable in the case of
reseller like retailer and wholesalers
Selling Process in HUL
Planning Essentials of TSO
1. Target Planning
2. PJP Planning
3. Coverage Planning
4. Merchandising Planning
5. Planning to make an effective sales call
6. g
Planning Essentials of TSO
1.Target Planning
Based on Ops Plan
Break down the JC target RS wise- RSSM wise-
Beat wise and then finally outlet wise for different
RSSM
Before starting the day, check whether you have
plan for the day both in the terms of secondary sales
and TLSD
Takes SKU availability for the day to meet the day
target
Planning Essentials of TSO
2.PJP Planning(Market Planning)
To have a clear idea on your priorities
Optimum utilization of time at the least
possible cost
Which are the market you need to visit
For how many days you need to visit
No. of call to be made in a JC
No. of call to be made in a beat construct
Minimum No. of productive calls in a bear
TLSD
Planning Essentials of TSO
3. Coverage planning
a) Effectiveness
Planned Calls for the day : 40
Total Calls Made actual : 30
Productive Call : 20
Productivity : 20/40 = 50%, Effectiveness
Planning Essentials of TSO
b) Efficiency
Planned Calls : 40
Total Calls Made : 30
Productive Calls : 20/30 = 66.6%. THIS IS
EFFICIENCY
If we focus on effectiveness, most of our
problems in the market place in the terms
of achieving targets will be sorted out
automatically
Planning Essentials of TSO
Therefore your coverage plan should focus on
Sequential visits of outlets
Complete the beat of the day effectively
Update trade service card during each call
Be channel specific
Shelving and sachets to be put up while making the sales
call
Use RSSM effectively of merchandising/shelving while
making a call
Planning Essentials of TSO
After you have planned for all the essentials, it is
necessary that you look for these elements also, so
that your day become more effective
Trade service Card
Beat Card
Merchandising Kit
Stock Availability
Product sample for demonstration
Planning Essentials of TSO
Once you have finished all that, you are set to visit the
market. Before entering each call,plz do the following
Check
Cumulative performance and review the secondary
target for this outlet
What has been TLSD target and what has been
achievement
What are the focus packs and what is my
merchandising plan
Planning Essentials of TSO
It is also necessary for you to understand the
following before entering into an outlet
Retailers name
Have I taken care of the commitments made
earlier and what have I done towards it?
Likely reaction of the retailer/dealer
If there are customers in the shop- what do I do?
Planning Essentials of TSO
The Power of One
JUST ADD- ONE LINE per productive call
JUST ADD- ONE PRODUCTIVE CALL per
day
What happen?
Assume the cost of one line is Rs 100/-
Assume that no. of productive calls is 30
Then….by just adding one line, your value
increase to Rs. 100/- x 30= Rs 3000/-
Planning Essentials of TSO
Now adding one more productive call-say value
comes to Rs. 300/- then the increase in sale
for the day is Rs 3,300/-
There are 24 working days in a JC and hence
your increase per JC= 24X 3300= Rs.79,200
The 7 Vital Sales Tools
1.Trade Service Card
2.Trade Briefing Folder
3. Beat Card
4.Ops. Plan document
5.Samples for demonstration
6.Merchandising templates
7.TSO pass book
The 7 Vital Sales Tools
1.The Trade Service Card
Which is normally called as a `Janam
Kundali`(Life History) of the market.
You get to understand the trends in the market
place
Helps you know areas of growth, and
improvement
Reminds you of lines- in a Sales calls
The 7 Vital Sales Tools
2.Trade Briefing folder
Helps you picurise the product to the retailer
Helps you talk the Sales Story in structured
manner
Create an Audio-visual impact while presenting
The 7 Vital Sales Tools
3.Beat Card
Give you detail of beat construct
Gives you inputs on which are the outlets to
concentrate on and which packs to focus on
Help you analyze trends
The 7 Vital Sales Tools
4.Ops Plan
Gives you a detailed picture of the the
Schemes of the JC
Talks about QOC packs and where to focus on
5.Samples for demonstration
What is seen is 70% more understood that
what is told
Easy to you to discuss features and thereby
benefits
The 7 Vital Sales Tools
6.Merchandising Templates
Talks about the norms to be followed in particular type
of outlet
Gives you details on:
-what product/ what SKU
- What quantity
- Where to merchandise
7.TSI Pass Book
A one stop information bank which gives you the
picture of your entire territory
Gives you trends
Helps you track your performance better
The 7 Steps of the basic Call Procedure
Before
Before entering
entering the
the Outlet
Outlet
Salutation
Salutation
Merchandising
Merchandising &
& Stock
Stock Check
Check
Always
Always Start
Start with
with aa Promoted
Promoted Pack
Pack
Rigor
Rigor in
in Selling
Selling SKUs/lines
SKUs/lines
Trade
Trade Grievance
Grievance Handling
Handling &
& Comp
Comp Monitoring
Monitoring
Salutation
Greet the retailer by name
Introduce yourself to make sure the retailer knows who
you are
- pronounce your name
- the organization you represent
- The PC you represent
g
Salutation
Understanding 4X20 Rule
1. The First 20 feet
If you walk confident to an outlet, the shopkeeper
feels talking to you
You tend to pass on the positive energy you carry and
this helps in making the sale better
2. The First 20 Seconds
Look at the shelves and see what is happening in the
outlet, rather than playing around with the products
on the rack or just standing there
Salutation
3.The First 20 cm.
It says smile, because smile increases your
face value and take you miles ahead
4.The First 20 Words
Never ask negative questions. Don`t ask
question like…. How is sale? How is
season etc… which will normally evoke a
negative response
Merchandising and stock
Check
1. Merchandise effectively as per norms(visibility
templates)
2. This will help you to spend time in the outlet
3. Check stock when you are in
4. This will help you to build sales story
5. Sudden change in competition stocks tells you
the condition of the outlet
Merchandising and stock
Check
When you do merchandising and stock
check- ensure
Is the stock now face up?
Have you ensured product hygiene?
Shelf arrangement as per category
guidelines and merchandising templates?
Always start with a promoted
Packs
Promoted packs generate interests
It brings him to a buying mood
Helps open new outlet
when you start with promoted packs… do FAB ing
F= Features
A= Advantage
B= Benefits
g
Always start with a promoted
Packs
Feature
A feature describe characteristics of your product or
service
E.g. this JC you have special offer on LuX… a
scheme of 8.33% i.e. 12+1
Advantage
How your promotion is better than others
Benefits
Why? Easy to sell
Because? profitble
Closing Techniques
1.Direct Proposition Techniques
This is what I am sending
2.Everest Technique
You tell him that you are selling in 2 cases,
and then retailer agree to ½ casees
3 .Push Acceptance