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
