Sales management is the process of developing a sales force, coordinating sales

operations, and implementing sales techniques that allow a business to

consistently hit, and even surpass, its sales targets.

PROCESS OF PERSONAL SELLING

1. Prospecting:

Searching for prospects is prospecting. Here, prospect is a person or an

institution who is likely to be benefited by the product the salesman wants to sell

and can afford to buy it.

Prospecting is the work of collecting the names and addresses or persons who

are likely to buy the firms products and services. Provide encompasses even the

discovery of special needs and multiplying the sales with existing clientele.

While collecting the details, suspects must be separated from prospects to

avoid or reduce waste of time, treasure and talent. There are definite methods of

prospecting.

2. Pre-approach:

Pre-approach is to get more detailed facts about a specific individual to have

effective sales appeals on him or her. It is a record round effort to get details

regarding the prospect such as his ability, need, authority, accessibility to buy; it

is a closer look of prospects, likes and dislikes, tastes, habits, financial status,

social esteem, material status, family background and the like.

The objectives of pre-approach are to providing additional qualifying information;

to design an effective approach strategy; to better the planning information; to

avoid serious errors and to build-up confidence.

The sources of information are his fellow salesmen, customers, local newspapers,

special investigators, sales office, directories, observation and the prospect.

3. Approach:

Approach means the meeting of the prospect in person by the salesman where

he makes face to face contact with prospects to understand them better.

Approach is such a delicate and critical stage of the sales process that the sales

are either won or lost.

Approach is stepping stone for sales presentation. It is because of this delicacy

that sales are likened to a chain where break of one link will break it into useless

lump of hooks.

Success follows the salesman who possesses courage, courtesy and confidence.

The objectives of approach are: To help the salesman to make a favourable

impression; to amplify the detailed information obtained by the salesman at pre-

approach level; to convert the favourable attention of the prospect easily and

smoothly into the sales proposition.

4. Presentation and demonstration:

Presentation implies an array and decoration of articles in the shop. It is the

heart of selling process. Effective presentation has the capacity to convince the

customer of his sales proposition. It creates and holds the interest of customers

towards the products. It would be wrong to assume that all those who enter the

shop do buy the products.

Normally, most of the prospects visit the shop to see prior to their decision to

buy. This casual visit can be a commitment visit provided products are displayed,

presented and demonstrated by the salesmen in an appealing manner.

Demonstration is a part of presentation because, more description is not enough.

Demonstration is the crucial task of providing the proofs and providing the

statements about quality, utility, performance and service of a product by

evidences of experiment, operation or a test.

The significance of demonstration lies in reducing the sales talk, facilitating the

comparison, appealing to senses, fortifying the sales talks and convincing the

fastidious customers. Here, A-I-D-A approach works wonders.

5. Overcoming objections:

For a creative and persuasive salesman, the process of selling really starts when

the prospect raises objections. In absence of sales resistance the salesman is

merely an order booking clerk. For every action of salesman there is prospects

pro-action or reaction that is, approval or disapproval.

Each salesman should understand the reasons as to why prospects raise

objections because; each objection has its roots in the buying decision. An

objection is the expression of disapproval of an action taken by salesman; it is an

adverse reason or an argument indicating clearly that the prospect is not yet

ready to buy.

These objections may be genuine or mere excuses. Overcoming objections is

really a delicate stage that makes or mars the unbroken chain of selling process.

Being a very crucial aspect, the experts have a set procedure for overcoming the

objections namely, listen to the prospect cushion the jolt anticipate the

objections and prevent their occurrence. It is the creative task of bringing the

customer to the sales track once again.

6. Closing:
All the earlier stages of sales talk namely, prospecting, pre-approach; approach,

presentation and handling the objections have been designed to induce the

prospect to make decision to buy so that a sale can be concluded.

The success in earlier stages will lead to the last stage of closing the sale and

clinch the deal. Here, close means the act of actually getting the prospects

assent to the sales proposal or he gets an order.

The underlying point of closing sale is to persuade the prospect to act right now

than postponing or delaying the action. It is here that the prospect is turned into

a customer desire into demand.

Though it sounds very easy, it is the most difficult task. It is the positive attitude

and self-confidence that plays a decisive role in converting wish into desire and

desire into demand. A poor closer is a poor salesman and salesman who cannot

close well will have to close the line.

Introducing the Concept Sales Management

Sales management is a business discipline which is focused on the

practical application of sales techniques and the management of a
firm's sales operations.

Birth of Sales Management: After the Industrial revolution and with the increase in
volumes of production, i.e production on mass scale not only for local consumption
but also to cater to the demand at national and global levels sales management came
into existence.

Sales mgt is responsible for the sale of products of a company and to add profit to the
business operation.

Sales force should be hardworking, result oriented, well educated and competent to
handle changing situations.
 Definition : The process of planning, directing and controlling of personal selling,
including recruiting, selecting, equipping, assigning, supervising, paying and motivating the
sales force- American Marketing Association

Thus sales management means, the task which includes analysis, planning,
organizing, directing and controlling of the companys sales effort.

Managing the Sales Force

The key to any successful sales management lies on the people working in sales.

Companies spend considerable amount of money on training and development of

sales force.

Sales force management of any company lies on three parameters they are-

Organisation: The key to sales force is the right level of aggregation against
product lines and geographical area. (separated product line)

Strength and Qualification: Sales force strength and qualification

significantly affect the ability to provide competitive service level and
economies of sales force.

Compensation and Incentive system: compensation and incentives have a

significant impact on the moral of the sales force and help in retaining
successful sales people
 Sal
es
Dir
ect
or
Divisional
Manager (2)
(1)
Zonal Manager (10)

Regional Manager (25)

Territory Business Manager (50)

Territory Business Executive (50)

Duties & Responsibilities of a Sales Manager

Sales Manager is the most important person in a sales department. All

activities are based on his functions and responsibilities.
Sales Manager is like the captain of a team who leads from front and sets
up examples for it is subordinates.
Following are some of the principal duties of a sales manager:
Organizing sales research, product research etc.
Getting the best output from the sales force under him.
Setting, achieving and controlling the targets, territories,
distribution etc.
Advising the company on various media, sales promotion schemes
etc.
Monitoring the companies sales policies.

Formulation of Sales Strategy

The function of sales manager includes the task of organizing, planning

and implementing the sales efforts so as to achieve corporate goals
related to market shares, sales volume and return on investments.
Following are the key decision areas on which sales strategy is
Formulated:
Determining the size of sales force
Determining the quality of sales force
Determining the market share and volumes of business.
Competitors presence.
Recruitment and training procedures.
Type of customer base.
Feedback mechanism to be adopted
 Different Sales Strategy

Relationship Strategy: The major key to success in selling is the ability to

establish working relationship with customers. The sales force that builds
effective relationship with the customers and provide valuable service are
usually high performers and top achievers.

Example: Hospitality, Travel & tourism.

The Double-Win Strategy: In this strategy both customers and the

salesperson come out of the sale with a sense of satisfaction. Both feel satisfied
that, knowing that neither has taken advantage of the other and both have
profited, personally and professionally.

Example: Insurance

Instant Service: No matter how efficiently and effectively goods/services are

produced, if they cannot be delivered to the customer in the quickest manner, all
efforts made earlier are in vain. Also the concept of supply chain had involved
from this sales strategy.

Example: Short shelf life products- Consumable products

Hard Sell Soft Sell

Concern for self Concern for customer
only
Canned Questions and Discussion
Presentation
Talking Listening
Pushing product Providing buying
opportunities
Presenting features Presenting benefits
Advocating without Acknowledging needs
acknowledging

Client centered selling strategy: This strategy focuses the entire

selling process and efforts on the clients need and problems. It considers
who the client is, what he or she does an where, when, why and how
 he/she does it. It demands the fullest knowledge of the
client as an individual.

Example: Designer garments, Rolls Royce

Problems of Sales Management

Designing and Managing sales force: The greatest challenge for any
sales manager is to maintain the attrition of his sale team. So the sales
manager must maintain a vigilant check on the various activities of the
sales force.

Sales force Authority: Delegation of authority has to be passed on to his

subordinates. Following are some of the delegation-

Changing prices (negotiation)

Credit Facility

Quality and after sales assurance

Settlements of Claims, etc.

Target-setting: Target setting is necessary for achieving organizational

goals. Sales targets are fixed on the basis of past experience, time period,
brand positioning.

Sales Forecasting: Sales forecasting must change according to the

environmental factors. It is also one of the factor influencing the target
setting.

What Is Personal Selling?

Personal selling occurs where an individual salesperson sells a product,

service or solution to a client. Salespeople match the benefits of their
offering to the specific needs of a client.

Definition : A form of person to person communication in which a

salesperson works with prospective buyer and attempts to influence
purchase in the direction of his or her companys products or services

Some important aspects of Personal selling:

It provides human touch to business transaction.

It promotes long term business relationship.

It enhances customer confidence

It helps in understanding the pulse of the customer.

It helps in customizing the product.

 Helps in convincing the customer about the product.

Pre- Approach

Pre-approach is the second step in the selling process which emphasizes

that the salesman should know the likes and dislikes, needs, preference,
habits, nature, economic and social status of his prospect clients. There
are certain significances of pre-approach they are as follows.

It is a method by which a salesperson concentrates only on the prospects.

It helps a salesperson gain all the possible information about the prospect
before approaching him.

Because of the ample knowledge of the prospects a salesperson is able to

give presentation more efficiently and effectively and with confidence.

With good presentation a salesperson is focused around the needs of the

prospect.

Approaching

In this stage the prospect and the salesperson comes in contact with each
other face to face. Here the salesman has the opportunity to understand
and interact with the prospect in a better way. Hence getting the attention
of the prospect and persuading him to buy are the two main objectives of
a salesperson.

Methods of approaching:

Cashing in the brand name approach

Customer benefit approach

Innovative product approach

Premium approach

The shock approach

Survey approach

Presentation/Demonstration

A good presentation is as important as good product. Presentation can be

in different forms like- attractive packaging and display, conspicuous
placement of the product in window display etc. Presentation also includes
the interior decoration of the shop and appearance. Requirements for a
good presentation includes

Location of display of the product.

Packaging of the product.

 Explanation of the feature

Should be able to appeal the prospect.

Demonstrating the product: Demonstration is an exercise to prove the

characteristic of the product. It highlights various attributes of the product
such as utility, performance, service etc. Hence demonstration is
imperative and essential for a prospect to make a buying decision.

Handling Objections

Objections, quires, doubts are signs of interest from prospects. It can taken
as positive manner or on a negative manner. Objections do take place
when there is a good presentation. Or else the salesperson may have
failed to provide adequate information, or have not demonstrated how the
product meets the needs of the prospect

Closing/ Follow-up

This is the last stage of any sales presentation. The main aim of the close is to
convince the prospect and overcome
the objections to sign the sales order form. The sales person should be alert and
use his good judgment to spot an opportunity when the prospect is in a good
mood.

Follow up is as important as other pervious stages. It is this stage where

the sales person maintains the clients on a long term. Importance of
follow-ups are

Building relationships

Updates from clients.

Cross selling

Re - purchase

Getting reference

Helps in avoid other competitors

Updating the market

Develops loyal clients.

Necessary for customer satisfaction

Theories in Personal Selling

 SALES MANAGEMENT Means the planning, direction and control of
personal selling, including recruiting, selecting, equipping, assigning,
routing, supervising, paying and motivating as these tasks apply to
personal sales force Powerpoint Templates Page 2

MANAGING THE SALES FORCE

Designing Sales Force Strategy and Structure2
Recruiting and Selecting Sales People3
Training Sales People4
Compensating Sales People5
Supervising and Motivating Sales People6
Evaluating Sales People
DESIGNING SALES FORCE STRATEGY AND STRUCTURE
Sales force strategy
Territorial Sales force Product structure
Customer Sales force Size Complex

RECRUITING AND SELECTING SALES REPRESENTATIVES

Enthusiasm and Self-Some Characteristics Confidence of Salespeople
Persistence
Initiative
Job Commitment
Current SalespeopleRecruiting Procedures
Employment Agencies
Classified Ads
College Campuses
Sales AptitudeSalesperson Selection
Analytical & Organizational Process Skills
Personality Traits

TRAINING THE SALES REPRESENTATIVES Help sales people know & Identify
with the company Learn How the product works Learn about Competitors
and Customers Characteristics Learn How to make effective presentations
Understand field procedures and responsibilities

1. 8. COMPENSATING SALES REPRESENTATIVES Salary Components

ofBenefits Bonus Compensation Commission Powerpoint Templates Page 8
2. 9. SUPERVISING AND MOTIVATING SALES REPRESENTATIVES Supervising
Sales Force Motivating Sales force Directing the sales force
Organisational Climate Identify customer targets Sales Quota and set
call norms Positive Incentives Develop prospect targets Honors Use
sales time efficiently Trips Annual Call schedule Merchandise/Cash
Time and Duty Analysis Awards Sales force automation Powerpoint
Templates Page 9