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INTRODUCTION TO SALES MANAGEMENT

Sales Management - An Overview

The art of meeting and exceeding the sales goals of an organization through effective planning, controlling, budgeting and leadership refers to sales management.

Sales Management helps the organization to achieve the sales targets efficiently.

Process of Sales Management1. Sales Planning

Marketers must plan things well in advance for the best results. It is essential to have concrete plans. Mere guess works do not help in business.

Know your product well. Sales professionals must know the USPs and benefits of the product for the consumers to believe them.

Identify your target market. Sales Planning makes the products available to the end users at the right time and at the right

place. Sales Planning helps the marketers to analyze the customer demands and respond efficiently to

fluctuations in the market. Devise appropriate strategies to increase the sales of the products.

2. Sales Reporting Sales strategies are implemented in this stage. Check the effectiveness of the various strategies. Find out whether they are bringing the desired

results or not. The sales representatives should be aware of their roles and responsibilities in the organization. It is essential for the organization to evaluate the outcome of proposed strategies for any

particular department. Organizations depend on KPI also called Key Performance Indicator or simply Performance Indicator to measure the effectiveness of implemented strategies.

Ask the sales team to submit reports of what all they have done throughout the week. The management must sit with the sales team frequently to assess their performance and chalk out future course of actions.

Mapping individual performance over time is essential.3. Sales Process

Sales representatives should work as a single unit for maximum productivity. A systematic approach results in error free work.

The management must make sure sales managers follow a proper channel to reach out to the customers. It pays to adopt a step by step approach.

Sales professionals should follow the below mentioned steps for maximum sales and better output. Do not ignore any step.

i. Initial Contact/Lead Collect necessary data of potential customers once the target market is decided.

ii. Information Exchange Inform the customers about various product offerings. Make the customers aware of your brand and its benefits.

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The information exchange can be either:

Over the telephone orFace to face interaction with the potential customer.

iii. Lead Generation Make a list of the people who show inclination towards purchasing your organization’s products

or services. The sales representatives must identify those who have the potential to buy their products.

iv. Need Identification Fix a meeting with the prospective buyers. Sit with the client and try to find out more about his

needs and expectations. Suggest them various options which would fulfill their demands.

v. Qualified Prospect Identify individuals who are keen on purchasing your company’s products or services.

vi. Proposal Once the buyer agrees to purchase particular products, the seller presents a written proposal to

him quoting the rates as well as other necessary terms and conditions. Such a document is often called a proposal.

vii. Negotiation Negotiation is a stage where two parties (buyer and seller) discuss and negotiate for the best deal

beneficial to all.viii. Closing of Deal

This is the stage where the transaction between the seller and buyer takes place. The selling happens in this stage.

ix. After Sales Service Keep in touch with the customers even after the purchase for higher customer retention.

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. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business.

Efforts put forth to attain a company’s sales objectives.Sales management can involve any of the following activities: (1) formulation of sales strategy through development of account management policies, sales force compensation policies, sales revenue forecasts, and sales plan, (2) implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets, and (3) sales force management through development and implementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs.

Sales Management: Functions and Importance of Sales Management – Explained!Sales management facilitates the directions of activities and functions which are involved in the distribution of goods and services. According to Philip Kotler, “Marketing management is the analysis, planning

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implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives.

It relies heavily on designing the organizations’ offering in terms of the target markets needs and desires and using effective pricing, communication and distribution to inform, motivate and service the market.”Sales or marketing management is concerned with the chalking out of a definite programme, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization. Further their sales plans to a greater extent rest upon the requirements and motives of the consumers in the market aimed at.

To achieve this objective the organization has to give heed to the right pricing, effective advertising and sales promotion, discerning distribution and stimulating the consumer’s through the best services.

To sum up, marketing management may be defined as the process of management of marketing programmes for accomplishing organizational goals and objectives. It involves planning, implementation and control of marketing programmes or campaigns.

Functions:

(i) Sales research and planning.

(ii) Demand creation.

(iii) Sales costs and budget.

(iv) Price fixations.

(v) Development of products.

(vi) Establishing sales territories.

(vii) Co-ordination of sales.

These functions differ from company to company according to their size and the nature of their products.Importance of Sales Management:

Sales management has gained importance to meet increasing competition and the need for improved methods of

distribution to reduce cost and to increase profits. Sales management today is the most important function in a

commercial and business enterprise.

The following are the other factors showing importance of the sales management:

(i) Introduction of new products in the market.

(ii) Increasing the production of existing products.

(iii) Reducing cost of sales and distribution.

(iv) Export market.

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(v) Development in the means and communication of transportation within and outside the country.

(vi) Rise in per capita income and demand for more goods by the consumers.

Objectives of Sales ManagementSales management entails numerous objectives which are executed by sales managers. There are mainly three such objectives1. Sales Volume2. Contribution to profits3. Continuous GrowthThe sales executives in this case are the ones who help implement these objectives. However it is the top management who has to outline the strategies to achieve these objectives of sales management. The top management should provide products which are socially responsible and are marketed in a manner which meets customers expectations and does not break it. Thus sales management involves a strong interaction between Sales, marketing and Top management.Sales Management and financial resultsFinancial Results are another objective of sales management and are closely related and therefore sales management has financial implications as well.Sales – Cost of Sales = Gross ProfitGross Margin – Expenses = Net profit.Thus the variation in Sales will directly affect the Net profit of a company. Hence maintaining and managing sales is important to keep the product / service / organization financially viable.The Objectives of sales are therefore decided on the basis of where the organization stands and where it wants to reach. It is a collaborated effort from the top management along with the marketing managers and sales managers to provide with a targeted estimate.

Emerging Trends in Sales Management

To be successful in a changing market environment, it is important that sales managers understand the importance of emerging trends in the following areas

Global Perspective

Global competition is intensifying. Domestic companies who never thought about foreign competitors are suddenly finding them in their backyard. This is a challenge which sales managers and salesperson must take on, they have to improve their personal selling efforts not only in their countries but also in foreign countries.

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Selling goods and services in global markets presents a challenge due to differences in culture, language, needs and requirements.

Technological Revolution

Digital revolution and management information system have greatly increased the capabilities of consumers and marketing organizations. Consumer today can get information about products, compare it with other brand, place an order and place an order instantly over the internet. This has led to a different kind of sales force who collects information about internet users, markets and prospects of internet buyers. It is mandatory for all companies to have their website now.

To compete effectively, sales person and managers will have to adopt the latest technology.

Customer Relationship Management [CRM]

Combining information technology with relationship marketing has resulted in customer relationship management. Interestingly, the concept of relationship marketing came about earlier by bringing quality,customer service and marketing together.

Relationship marketing aims in building long term satisfying relations with key customers distributors and suppliers in order to earn and retain their long term preference and business. CRM enable companies to provide excellent real-time service by focusing on meeting the individual needs of each valued customer, through the use of CRM software packages.

Sales Force Diversity

The demographic characteristics of sales force is changing and becoming more varied. For example, more and more women are taking up careers in sales management and selling. Also the education level of sales people is going up most of them holding a college degree or a post graduate degree. Sales managers now have to handle a sales force of these varied demographic, expectations of each and every individual is different and sales manager needs to use different motivational tools against each one of them.

Team Selling Approach

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The practice of team selling is more widely followed by most companies in recent years. Team selling approach is used when company wants to build a long term mutually beneficial relationship with major customers, who have high sales and profitable potential. It is used for selling a technically complex product or a service to a potential customer. The composition of team may vary depending upon the customer from top management, technical specialist, customer service, etc…

Managing Multi-Channels

Multi-channel marketing system occurs when organization uses two or more marketing channels to target one or more customer segments. Major benefits of multi-channel marketing system are:

1. Lower channel cost2. Increased market coverage3. Customized selling

Multi-channel may also lead to conflicts and control problems, as two or more channels may compete for same customer. A successful sales manager will have to effectively manage conflict between the channels.

Ethical and Social Issues

Sales managers have ethical and social responsibilities. Sales people face ethical issues such as bribery, deception (or misleading) and high pressure sales tactics. Today’s sales managers have no choice but to ensure ethical standards from sales force otherwise they may be out of business or even land up in legal problems.

Below diagram gives the changing trends in Sales Management

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Roles and Responsibilities of a Sales Manager

A sales manager plays a key role in the success and failure of an organization. He is the one who plays a pivotal role in achieving the sales targets and eventually generates revenue for the organization.

A sales manager must be very clear about his role in the organization. He should know what he is supposed to do at the workplace.

Let us understand the roles and responsibilities of a sales manager:

A sales manager is responsible for meeting the sales targets of the organization through effective planning and budgeting.

A sales manager can’t work alone. He needs the support of his sales team where each one contributes in his best possible way and works towards the goals and objectives of the organization. He is the one who sets the targets for the sales executives and other sales representatives. A sales manager must ensure the targets are realistic and achievable.

The duties must not be imposed on anyone, instead should be delegated as per interests and specializations of the individuals. A sales manager must understand who can perform a particular task in the most effective way. It is his role to extract the best out of each employee.

A sales manager devises strategies and techniques necessary for achieving the sales targets. He is the one who decides the future course of action for his team members.

It is the sales manager’s duty to map potential customers and generate leads for the organization. He should look forward to generating new opportunities for the organization.

A sales manager is also responsible for brand promotion. He must make the product popular amongst the consumers. A banner at a wrong place is of no use. Canopies must be placed at strategic locations; hoardings should be installed at important places for the best results.

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Motivating team members is one of the most important duties of a sales manager. He needs to make his team work as a single unit working towards a common objective. He must ensure team members don’t fight amongst themselves and share cordial relationship with each other. Develop lucrative incentive schemes and introduce monetary benefits to encourage them to deliver their level best. Appreciate whenever they do good work.

It is the sales manager’s duty to ensure his team is delivering desired results. Supervision is essential. Track their performances. Make sure each one is living up to the expectations of the organization. Ask them to submit a report of what all they have done throughout the week or month. The performers must be encouraged while the non performers must be dealt with utmost patience and care.

He is the one who takes major decisions for his team. He should act as a pillar of support for them and stand by their side at the hours of crisis.

A sales manager should set an example for his team members. He should be a source of inspiration for his team members.

A sales manager is responsible for not only selling but also maintaining and improving relationships with the client. Client relationship management is also his KRA.

As a sales manager, one should maintain necessary data and records for future reference.

Qualities of a Sales Professional

Sales Professionals are the face of an organization. They have the responsibility of making the brand popular and promoting the products amongst the end users.

They help in the successful running of organization by generating revenues and earning profits.

Let us go through some qualities which a sales professional must have:

1. Patience A sales manager needs to be extremely patient. You just can’t afford to be rude to your

customers. Clients do need time to believe in you and trust your products. Don’t get hyper and make the

client’s life hell. Give him time to think and decide.2. People Oriented

It is essential for a sales manager to be customer centric. Understand customer’s needs and expectations. Don’t simply impose things on him.

Individuals representing the sales vertical need to be caring and kind towards customers. Don’t only think about your own targets and selfish interest’s. One should never misguide the

customers. Be honest with them. Avoid telling lies and creating fake stories.3. Aggressive

A sales professional needs to be aggressive and energetic. Lazy individuals don’t make great sales professionals.

4. Go-Getter Attitude It pays to be optimistic in sales. Sales professionals need to have a go-getter attitude for the best

results. It is really not necessary that all customers would like or need your product. Don’t expect results

every time. Remember failures are the stepping stones to success. One must learn from his previous mistakes and move on. Don’t take failures to heart.

5. Value Time

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People in sales must value time. Being late for meetings create a wrong impression in the minds of customers.

It is a sin to make customers waiting unless and until there is an emergency. Start a little early and make sure you reach meetings on time.

6. Sense of Commitment A sales representative who is committed towards his work manages to do well and make his

mark as compared to others. Commitment in fact is essential in all areas of work. If you have promised someone to meet at 5pm, make sure you are there at the desired venue at

4.45 pm sharp. Don’t make silly excuses. Trust is lost when commitments are taken back. There should be no turning back.

7. Reliable The customers must be able to depend on the sales professionals. A sense of trust is important.

8. Flexible A sales professional must know how to change his sales pitch as per the client. Don’t just stick to

one plan or one idea. Learn to take quick decisions as per the situation. Be adaptable to changes. People in sales

should not be too rigid and demanding.9. Be Transparent

Don’t hide things from the customers. Transparency is essential to avoid problems later on. Convey only what your product offers.

10. Diligent Mere sitting at office does not help in sales. One needs to go out, meet people and make

prospective clients. Don’t complain if it is too hot or cold outside. A sales professional ideally should spend his maximum time in field to achieve targets in the best

possible way.11. Good Communicator

A sales professional must be a good communicator for the desired impact. Take care of your pitch and tone.

10 QUALITIES OF SALES MANAGER

It’s not unusual for a builder to look to his own sales staff when he needs to hire a sales manager. While it might

be tempting to give the position to his top producer, that’s probably not the best person for the job. The

customer-focused skills that make a person a great closer are quite different from the ones needed to keep a staff

inspired, educated, and prepared to sell. While sales associates need to master the sales process, build rapport

and trust with buyers, and be relentless at prospecting and follow-up, sales managers need to be able to set the

proper goals for their teams and give them the tools to achieve those goals.

“Salespeople are funny,” says Leigh Staley Tarullo, a former division vice president of sales and marketing for

Ryland Homes who has since founded 3D New Home Sales Systems. “The very qualities that make them great

salespeople make them very hard to manage, but despite what they say, they want to be led. It’s tough for a lot

of managers to do.”9

Here are 10 attributes of a great sales manager:

1) Passion. This is also one of the top qualities of a master closer and the only one that can’t be taught. Without

a passion for the home building industry, it’s impossible to lead and inspire a team, Tarullo says.

2) Integrity. Combined with passion, these are the two most important qualities for a sales manager. “They

need that core,” Tarullo says. “If they don’t have those, they shouldn’t be in sales management.”

3) Positive attitude. It’s up to a builder’s leadership to put smiles on the faces of the sales team and set the tone

for the company.

4) Coaching. Seventy percent of a sales manager’s time should be spent coaching, either in groups or one on

one, Tarullo says. Any sales manager who says the workload doesn’t allow that kind of time with the staff

needs to examine how the day is being spent and ditch or delegate any activity that doesn’t affect lead

generation or conversion.

5) Leadership by example. “The sales manager should be out on the sales floor with his people,” says Jim

Capaldi, director of sales for the Ventura division of Standard Pacific Homes and author of The Ultimate New

Home Sales Success Manual. “That’s where you’re most productive. Lead by example, make them accountable,

push them, and get them out of their comfort zone.”

6) Loyalty. Sales managers need to go to bat for their sales team members, says Debbie Dompke, sales manager

for Chicago-based Lexington Homes. “Let them know you’re on their side,” she says. “When they know you’re

sincere, it’s amazing the work ethic you’ll get in return.”

7) Availability. Dallas-based sales trainer Bob Hafer says paperwork has to be done, but it can’t be used as an

excuse “to not do the tough stuff.” It’s easier than dealing with people, to be sure, he says, adding,

“Administrative tasks never talk back to you.” When he was a sales manager, he got to work at 7 a.m. and spent

two hours on paperwork before the phone started ringing. Then, when the sales centers opened, he was available

to work with his sales teams in the field.

8) Motivation. This includes encouragement and recognition. Dompke says she does this in “so many ways—

contests, games, dancing, singing, dressing up. You laugh together and play together.”

9) Continuous learning. Doctors, accountants, attorneys, and other professionals keep learning their whole

lives in order to keep their skills up to date. Sales managers need to do likewise. “When you don’t grow,”

Capaldi says, “you leave the door open for someone else.”

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10) Listening and communication. This is an underpinning for most of the other qualities. You can’t be a good

coach or motivator if you’re not a good communicator; and you can’t continuously learn, lead by example, or

demonstrate loyalty without being a good listener.

“Years ago, the sales manager’s job was about paper management, organization, and managing the interest

lists,” Capaldi says. “Now, it’s about keeping the sales team accountable, motivated, and focused on the basics

of selling. I always preach to people that real estate sales is the hardest job to be good at and the easiest job to

fail at.”

And Tarullo feels that the sales manager’s job is the key to that success. “I think it’s the toughest job in the

business because you have to wear so many different hats,” she says. “You need to be a disciplinarian but also a

coach and a motivator.”

7 responsibilities sales managers must own

Shifts in the business-to-business buying process have transformed selling as we know it. In the past, salespeople had a fair amount of control. They were given a territory, a pricing structure, a margin target and a set of products and services they could offer, and then sent off into the wild blue yonder. They were responsible for managing their territory and producing results. Sales management provided oversight, facilitated requests back to corporate to ensure that orders were expedited, and generally stayed out of the way, unless additional support was needed to help underperformers. That’s how things used to be. Now, the role of sellers – and therefore sales managers – is much different.

The “State of Sales Productivity 2015” study by Docurated found that only one-third of a sales reps’ day is actually spent selling, while 31 percent of their time is spent searching for or creating content, and 20 percent is spent on reporting, administrative and CRM-related tasks. Nowadays, 82 percent of sales reps feel challenged by the amount of data and the time it takes to research a prospect, according to a study by IKO System.

If you want to thrive in this new era of sales, it is now up to you as a sales manager to view territories, customers and products as if assessing a financial portfolio that you are responsible for investing. The people involved, the marketing dollars spent and the efforts expended are all for you to decide. It is your responsibility to make your investments wisely.

Since the time and attention of your salespeople are part of that investment, it is your responsibility to own their calendar, their workflow and where they spend their time. You may be of the old mindset that this is micromanagement, but in today’s marketplace, the investment belongs to the company, not the sales rep. This

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means your role as sales manager must adapt if you want to succeed in life after the death of selling as we know it. Your new responsibilities as a sales manager include the following:

Selecting targets – There’s an adage that salespeople talk to whoever will talk to them. In the new world of selling, your responsibility is to make certain that they are talking to the decision makers who can approve large opportunities that will come to fruition in the near future. Working with sales leadership, you must establish a filter that helps to define the most likely candidates for higher-opportunity sales efforts.

Defining priorities –Help your sales force prioritize what opportunities they pursue and how much time and effort they spend on each opportunity. Good sales managers keep key opportunities that are real and relevant to the current circumstances in the crosshairs of their salespeople.

Defining time guidelines – Set and enforce guidelines for how sellers spend their time. They no longer can just meander about a territory or go on a sweep of their current account base with the intention of “checking in and finding out what’s going on.” Rather, they must undertake a strategic and surgical approach to going after identified targets in a prescribed way.

Monitoring compliance – You are responsible for providing data that allows you and other leaders in the organization to monitor what is happening in the marketplace regarding customers, competitors and surrounding regulations and technology shifts. Consistency in the execution of a sales process gives data to the organization that clarifies what works and what does not. We’re not talking about activity management and monitoring for its own sake. Your focus should be working toward compliance in the sales process to protect the integrity of the data captured so everyone has relevant data for good decision making.

Navigating the terrain – Your sales process lays out a map for action, but a map is just a two-dimensional representation of a sequential process. Good sales management also addresses the third dimension – assessing the terrain of what is going on in the marketplace based on the data you’re getting (including variant data) from the sales process. There will be occasions when you will need to send out a scouting team of select salespeople to find out new information. Then it’s up to you to analyze what they bring back and use that information to better navigate the terrain.

Securing resources – There will be occasions when competing priorities of other departments impede progress on landing a big account. It’s your responsibility to make certain that significant sales opportunities are visible to leadership and to secure from less-than-enthusiastic parties inside your organization the resources needed for a successful sales process.

Knowing when (and when not) to expedite – It’s your job to expedite what needs to be expedited—and to know when not to. If you try to expedite every opportunity, soon no one will respond. Salespeople are often

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viewed as that proverbial “boy who cried wolf.” For the sake of the organization and for the sake of your reputation and that of your salespeople, you’ll need to be the gatekeeper on when an opportunity needs to be expedited, and when everyone should simply follow the normal sales process.

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FUNCTIONS & RESPONSIBILITIES OF SALES MANAGER

The functions/ duties of a sales manager are many and varied. They may be classified under the following three heads:

1. Managerial /executive duties or functions

2. Administrative duties or functions

3. Miscellaneous duties or functions

 

1) MANAGERIAL / EXECUTIVE DUTIES OR FUNCTIONS

The main function of the sales manager is the management of sales operations including sales programmes and sales personnel. The management of sales programmes includes establishment and developing short-term and long-term sales policies and sales objectives, in consultation with other heads of related departments. He develops detailed sales programmes for his department designed to improve competitive positions, to minimize re-distribution costs and to achieve pre-determined sales goals in terms of amount and quantity. For this purpose he should review and approve and if necessary, improve sales strategies, sales policies, sales objectives and pricing policies of the respective products.

The management of sales personnel function includes recruitment, selection, training, direction, supervision motivation and control of sales personnel in the best interest of the organization. In smaller organizations, the top executive of the sales department sales manager himself, performs this function. However, in large organizations, services of staff specialists are made useful. He fixes sales territory and sales quota for every salesman, watches his performance and takes necessary timely action to correct hi performance.

 

2) ADMINSTRATIVE FUNCTION

 The administrative head of sales department is Sales Manager who is having full control over the staff of the department and administering the sales office. He establishes an effective plan of sales organization and also controls the activities of the entire sales staff working under his control. He is the leader of the sales personnel at all levels and guides, directs and provides them proper incentive so as to perform their duties effectively. 

 Administration of sales office is one of the important functions of the sales manager. It involves considerable amount of paper work and record-keeping, depending on the nature of activities assigned to sales department.

 

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3) MISCELLANEOUS FUNCTIONS

1) Maintenance of cordial and effective relationship with the heads of other departments within the company.

2) To ensure that long-term customer relationship is maintained so as to achieve the goals of the enterprise.

3) To conduct selling personally so as to increase the sales volume. For this purpose he plans, develops and implements the field sales strategy, supervisor the sales personnel and coordinates and controls the sales efforts of sales personnel.

4) To study the market conditions, problems of competition and the substitutes coming into the market. He is required to inform the top management of these facts along with his suggestions.

5) To maintain discipline in the sales organization.

6) To organize activities relating to sales promotion, such as, contests, seminars, conferences and provide incentives to the sales staff and the customers.

7) To plan and organize distribution channel in consultation with top management

8) To analyze the market thoroughly from time to time.

9) To undertake advertising campaign keeping in view the cost and sales requirements.

10) To plan sales targets in consultation with other departments, such as production department.

11) To prepare sales budget of a given period.

Thus the sales manager performs a number of functions depending on the nature of products and the size of the enterprise.

 

RESPONSIBILITIES OF SALES MANAGER

The responsibilities of a manager can be grouped under five heads :

1) Responsibility to himself.

2) Responsibility towards organization

3) Responsibility towards customers

4) Responsibility towards his staff and

5) Miscellaneous

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They may be elaborated as under:

1) Responsibility to self

The foremost responsibility of the sales manager is to make him competent for the work assigned to him by the enterprise. In this connection he must evaluate himself from time to time and take make necessary improvements accordingly. The following are the responsibilities towards himself:

1) To increase managerial abilities

2) To increase and develop selling abilities

3) To keep himself in contact with regional changes and developments

4) To have knowledge of latest marketing techniques

5) To have detailed knowledge of the products

6) To make continuous and sincere efforts for removing his weaknesses.

7) To develop the spirit of cooperation posses progressive outlook and have good temperament.

 

2) Responsibility towards Organization

Since Sales Manager is a vita; part of the entire organization, he has a number of responsibilities towards the organization. They may be summarized as under:

1. To maintain and also increase the goodwill of the enterprise among his customers

2. To prepare the records and reports etc of his department regularly and present the same before the top management accordingly.

3. To take steps of reducing sales cost.

4. To keep a constant watch on the activities of the competitors and keep the top management aware of them along with his suggestions.

5. To make sincere efforts at achieving sales targets.

6. To coordinate and cooperate with the other departments

7. To feel proud of the organization

8. To keep the organization in touch with the changes that are taking place in his region, department etc

9. To seek and also provide assistance and cooperation to the enterprise as and when required. To maintain true and complete accounts of his department.

 

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3) Responsibility towards Customers

1. To remain in constant touch with the customers through sales promotion and advertisement

2. To explain to the customers the advantages that they can have by keeping themselves in touch with the company.

3. To provide information to the customers about the miscellaneous uses of the products.

4. To keep himself in touch particularly with those salesmen who command influence on customers.

5. To take interest and listen to the complaints of the customers and make sincere efforts for solving the same satisfactorily.

 

4) Responsibility Towards Salesmen

 1. To explain the techniques of presenting the products in such a way before the customers which is less time consuming, cheeper and more effective.

2. To recruit, select, train, supervise, control, renumerate, motivate and promote the sales force so that it may perform the duties more efficiently and effectively.

3. To explain the methods of dealing with the customer’s complaints effectively.

4. To provide the detailed knowledge about the products.

5. To arrange and plan salesmen’s tours, allocate sales territories, fix sales quotas of each salesman and check the compliance from time to time.

6. To listen and remove the grievances complaints and problems of the sales force and take necessary timely steps for solving the same. He must see that no clash of interest takes place.

 

5) Miscellaneous

1) Responsibility as to maintenance of public relations

2. Responsibility as to office management

3. Responsibility as to sales planning, sales targets sales policies sales forecasting sales research etc

4. Responsibility as to reducing sales costs in view of sales volume.

5. Responsibility s to collect and analyze statistics in connection with marketing research, product research and consumer research etc.

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What is Personal Selling?

Personal selling is a promotional method in which one party (e.g., salesperson) uses skills and techniques for building personal relationships with another party (e.g., those involved in a purchase decision) that results in both parties obtaining value. In most cases the "value" for the salesperson is realized through the financial rewards of the sale while the customer’s "value" is realized from the benefits obtained by consuming the product. However, getting a customer to purchase a product is not always the objective of personal selling. For instance, selling may be used for the purpose of simply delivering information.

Because selling involves personal contact, this promotional method often occurs through face-to-face meetings or via a telephone conversation, though newer technologies allow contact to take place over the Internet including using video conferencing or text messaging (e.g., online chat).

Among marketing jobs, more are employed in sales positions than any other marketing-related occupation. In the U.S. alone, the U.S. Department of Laborestimates that nearly 14 million or about 11% of the overall labor force are directly involved in selling and sales-related positions. Worldwide this figure may be closer to 100 million. Yet these figures vastly under-estimate the number of people who are actively engaged in some aspect of selling as part of their normal job responsibilities. While millions of people can easily be seen as holding sales jobs, the promotional techniques used in selling are also part of the day-to-day activities of many who are usually not directly associated with selling. For instance, top corporate executives whose job title is CEO or COO are continually selling their company to major customers, stock investors, government officials and many other stakeholders. The techniques they employ to gain benefits for their company are the same used by the front-line salesperson to sell to a small customer. Consequently, our discussion of the promotional value of personal selling has implications beyond marketing and sales departments.

Advantages of Personal Selling

One key advantage personal selling has over other promotional methods is that it is a two-way form of communication. In selling situations the message sender (e.g., salesperson) can adjust the message as they gain feedback from message receivers (e.g., customer). So if a customer does not understand the initial message (e.g., doesn’t fully understand how the product works) the salesperson can make adjustments to address questions or concerns. Many non-personal forms of promotion, such as a radio advertisement, are inflexible, at least in the short-term, and cannot be easily adjusted to address audience questions.

The interactive nature of personal selling also makes it the most effective promotional method for building relationships with customers, particularly in the business-to-business market. This is especially important for companies that either sell expensive products or sell lower cost but high volume products (i.e., buyer must purchase in large quantities) that rely heavily on customers making repeat purchases. Because such purchases may take a considerable amount of time to complete and may involve the input of many people at the purchasing company (i.e., buying center), sales success often requires the marketer develop and maintain strong relationships with members of the purchasing company.

Finally, personal selling is the most practical promotional option for reaching customers who are not easily reached through other methods. The best example is in selling to the business market where, compared to the consumer market, advertising, public relations and sales promotions are often not well received.

Disadvantages of Personal Selling

Possibly the biggest disadvantage of selling is the degree to which this promotional method is misunderstood. Most people have had some bad experiences with salespeople who they perceived were overly aggressive or even downright annoying. While there are certainly many salespeople who fall into this category, the truth is salespeople are most successful when they focus their efforts on satisfying customers over the long term and not focusing own their own selfish interests.

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A second disadvantage of personal selling is the high cost in maintaining this type of promotional effort. Costs incurred in personal selling include:

High cost-per-action (CPA) – As noted in the Promotion Decisionstutorial, CPA can be an important measure of the success of promotion spending. Since personal selling involves person-to-person contact, the money spent to support a sales staff (i.e., sales force) can be steep. For instance, in some industries it costs well over (US) $300 each time a salesperson contacts a potential customer. This cost is incurred whether a sale is made or not! These costs include compensation (e.g., salary, commission, bonus), providing sales support materials, allowances for entertainment spending, office supplies, telecommunication and much more. With such high cost for maintaining a sales force, selling is often not a practical option for selling products that do not generate a large amount of revenue.

Training Costs – Most forms of personal selling require the sales staff be extensively trained on product knowledge, industry information and selling skills. For companies that require their salespeople attend formal training programs, the cost of training can be quite high and include such expenses as travel, hotel, meals, and training equipment while also paying the trainees’ salaries while they attend.

A third disadvantage is that personal selling is not for everyone. Job turnover in sales is often much higher than other marketing positions. For companies that assign salespeople to handle certain customer groups (e.g., geographic territory), turnover may leave a company without representation in a customer group for an extended period of time while the company recruits and trains a replacement.

Objectives of Personal Selling

       

Personal selling is used to meet the five objectives of promotion in the following ways:

Building Product Awareness – A common task of salespeople, especially when selling in business markets, is to educate customers on new product offerings. In fact, salespeople serve a major role at industry trades shows (see the Sales Promotion tutorial) where they discuss products with show attendees. But building awareness using personal selling is also important in consumer markets. As we will discuss, the advent of controlled word-of-mouth marketing is leading to personal selling becoming a useful mechanism for introducing consumers to new products.

Creating Interest – The fact that personal selling involves person-to-person communication makes it a natural method for getting customers to experience a product for the first time. In fact, creating interest goes hand-in-hand with building product awareness as sales professionals can often accomplish both objectives during the first encounter with a potential customer.

Providing Information – When salespeople engage customers a large part of the conversation focuses on product information. Marketing organizations provide their sales staff with large amounts of sales support including brochures, research reports, computer programs and many other forms of informational material.

Stimulating Demand – By far, the most important objective of personal selling is to convince customers to make a purchase. In The Selling Process tutorial we will see how salespeople accomplish this when we offer detailed coverage of the selling process used to gain customer orders.

Reinforcing the Brand – Most personal selling is intended to build long-term relationships with customers. A strong relationship can only be built over time and requires regular communication with a customer. Meeting with customers on a regular basis allows salespeople to repeatedly discuss their company’s products and by doing so helps strengthen customers’ knowledge of what the company has to offer.

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Types of Personal Selling Roles

As we noted above, worldwide millions of people have careers that fit in the personal selling category. However, the actual functions carried out by someone in sales may be quite different. In general there are four major types of selling roles:

Order Getters Order Takers Order Influencers Sales Support

The objectives of each role are often very different and within each role there are serveral sub-classifications.  A detailed discussion of each role can be found in the Types of Selling Roles tutorial.

Trends in Selling

While the basic premise of personal selling, building relationships, has not changed much in the last 50 years, there are a number of developments that are impacting this method of promotion including:

Controlled Word of Mouth Customer Information Sharing Mobile and Web Computing Electronic Sales Presentations Electronic Sales Training Use of Customer Teams

Selling Trends: Controlled Word of Mouth

One of the most influential forms of promotion occurs when one person speaks highly of a product to someone else, particularly if the message sender is considered an unbiased source of information. Until recently, marketers have had little control over person-to-person promotion that did not involve salespeople (i.e., biased source). However, marketers are beginning to experiment with new methods of promotion that strategically takes advantage of the benefits offered by word-of-mouth promotion. Unlike salespeople who attempt to obtain an order from customers, controlled word-of-mouth promotion uses real people to help spread information about a product but do not directly elicit customer orders.

With controlled word-of-mouth promotion a marketer hires individuals to spread positive information about a product but in a way that does not make it obvious to others that they are being paid to do so. The technique is especially useful when building awareness of new products and this approach has been dubbed “buzz” marketing as a way to describe its objective of building a high level of awareness for a product. For example, a brewer may form a team of word-of-mouth marketers who visit local taverns and night spots. As part of their job these marketers may "talk up" a new beer sold by the brewer and even purchase the product for some customers. But in the course of doing so they do not directly disclose that they are being compensated by the brewer for their efforts.

Controlled word-of-mouth has received a great deal of publicity though much of it has focused on potential ethical concerns. Some have expressed concern that paying people to "act" as if they are interested in a product without any indication of their relationship with the product breaches ethical standards. As more companies explore controlled word-of-mouth marketing it is expect to become an even more scrutinized form of personal selling.

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Selling Trends: Customer Information Sharing

Possibly the most dramatic change to occur in how salespeople function on a day-to-day basis involves the integration of customer relationship management (CRM) systems into the selling arena. CRM is the name given to both the technology and the philosophy that drives companies to gain a better understanding of their customers with the goal of building stronger long-term relationships. The essential requirement for an effective CRM system is the need for all customer contact points (e.g., salespeople, customer service, websites) to gather information so that this can be shared with others in the company.

But CRM has faced some rough times within the sales force for the exact reason it is important: salespeople must share their information. Salespeople have historically been very good at developing relationships and learning about customers, but often loath sharing this since, in effect, information is what makes them important. In the minds of some salespeople, letting go of the information reduces their importance to the company. For example, some salespeople feel that sharing all they know about a customer will make them expendable as a salesperson since a company can simply insert someone new into their spot at anytime.

While the attitude toward CRM has made its implementation difficult in many companies, salespeople should understand that it is not going away. CRM and information sharing has proven to be critical for maintaining strong customer relations and salespeople must learn to adapt to it.

Selling Trends: Mobile and Web Computing

The move to an information sharing approach is most effective when salespeople have access to information sharing features when they need it most. Mobile technologies, such as wireless internet (WiFi) and cellular Internet access, allow salespeople to retrieve needed information at any time. For example, if a salesperson takes a customer to lunch, the salesperson can quickly access company material to respond to questions such as how long it may take to receive product if an order is placed.

Additionally, there is a growing trend to make key business applications available through a browser rather than having programs loaded on a salesperson’s computer. This allows for the application to be accessed from anywhere at anytime. For example, many companies have moved to web-based CRM systems where simply having Internet access allows salespeople to enter and retrieve information. Also, many new office productivity applications, such as word processing and spreadsheets, are now becoming web-accessible.

New generation cellphones or smartphones along with other handheld devices, such as personal digital assistants (PDA), lighten the burden of carrying laptop computers. But because these handheld devices are web-enabled they provide access to much of the same information as a standard computer. While the computing power of handheld devices is still underpowered compared to conventional computers, the move to web-based computing may some day make the handheld the main instrument for inputting and outputting information.

Selling Trends: Electronic Sales Presentations

Technology is also playing a major role in how sales professionals reach prospects and existing customers. While audio/video conferencing has been available for many years using high-end telecommunication hookups, it has only been within the last few years that improvements in Internet access speeds, computing power and meeting software have made this method for reaching customers a practical alternative to face-to-face sales meetings. These options include:

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Online Video Conferencing – Online conferencing essentially acts in the same way as telecommunications videoconferencing, with one big exception; it is delivered over the Internet. Anyone who has an Internet connection knows that trying to deliver video over the Internet can be a trying experience as video often appears to be slow, jittery and sometimes not even recognizable. But these problems are quickly disappearing and while real time Internet video conferencing (i.e., television quality video and audio) is still not routinely accessible to most salespeople, this is expected to change.

Web/Phone Conferencing – To offset the problems associated with Internet delivery of real time audio and video, many companies deliver sales presentations using a combination of web and telecommunications. The most widely used services use the Internet, to deliver visual material (typically a slide presentation) and telecommunications, to allow for voice conversation. The process has a salesperson arrange for a conferencing time with a prospect who enters the conference by: 1) using their web browser to gain access to the visual presentation and 2) using their telephone to call into an audio conference. Splitting the visual and audio feeds allows for smoother presentations since the conference participants’ computers need only process the visual material. It should be noted, that while audio access is now being carried out over telephone connections, the emergence of telephone over the Internet (i.e., VOIP - voice over Internet Protocol) may soon help resolve some of the problems that have been encountered when delivering both.

Online Text Chat - Online chat allows for real time communication between multiple participants using text messaging. While this form of buyer-seller communication may not be very effective at getting customers to agree to make a purchase, it has proven very effective in building initial product interest. For example, potential customers visiting a website may use the chat feature to ask a few questions about the company’s products. Engaging a customer this way can then lead to the customer agreeing to receive a phone call from a salesperson to further discuss the product.

Selling Trends: Electronic Sales Training

Developing the skills and techniques needed to be successful at selling requires an extensive commitment by the individual seller and the seller's company to sales training. Sales training is the hallmark of professional selling. If there is one thing that separates the truly successful salesperson from those who are not, it is the amount of training and preparation they engage in.

Most organizations that employ a sales force offer new salespeople an extensive formal training program often held at dedicated training facilities. These training programs can range from a few days to many months depending on the industry. But once a salesperson has made the move to the field, training does not stop. Those involved in selling must continue to stay abreast of their products, customers, markets and competitors. While many companies may continue to employ the same methods used when they first trained their salespeople, a large number of firms are finding that ongoing training can be just as effective using electronic options such as delivering training over the Internet, through downloadable computer programs or through interactive CDs or DVDs.

While feedback using electronic means is not as personal as it might be with in-person training, sophisticated electronic training programs are effective in educating and testing trainee’s knowledge. Also, a live trainer can be contacted very quickly via e-mail, online chat or by a phone call if a question does arise.

Using electronic delivery, the cost to the company for adding or updating training material is inexpensive and quick compared to the cost and time needed to produce and ship paper-based materials. Additionally, the use of RSS feeds or email enables salespeople to be quickly notified when new training material is available. This is useful when the sales force must be made aware of a recent change that will impact how products are promoted such as a price change, new information to be used as comparison to competitor’s products, a potential problem that has arisen when installing or using a product or some other adjustment.

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Selling Trends: Use of Customer Teams

As we noted in our discussion of technical specialists, salespeople may require the assistance of others in their organization to effectively deal with prospects. In fact, many companies are moving away from the traditional sale force arrangement, where a single salesperson handles nearly all communication with an account, in favor of a team approach where multiple people are involved.

Teams consist of individuals from several functional areas such as marketing, manufacturing, distribution, and customer service. In some configurations all members share bonuses if the team meets sales goals. Clearly to be effective a team approach requires the implementation of customer relationship management systems that we discussed earlier.

The 8 Step Personal Selling Process

Personal selling is the most expensive form of advertising and to be effective one should use a step by step process to gain the most benefit. Personal selling can adjust the manner in which facts are communicated and can consider factors such as culture and behaviour in the approach. They can ask questions to discover the specific need of the customer and can get feedback and adjust the presentation as it progresses.

The Personal Selling ProcessThe personal selling process is a consecutive series of activities conducted by the salesperson, the lead to a prospect taking the desired action of buying a product or service and finish with a follow-up contact to ensure purchase satisfaction.

Step OneProspecting - the first step in the personal selling processThe process of looking for and checking leads is called prospecting or determining which firms or individuals could become customers.Up to 20% of a firm's customer base can be lost for reasons such as transfer, death, retirement, takeovers, dissatisfaction with the company and competition. A steadily growing list of qualified prospects is important for reaching the sales targets.Qualifying a prospect: A lead is a name on a list. It only becomes a prospect if it is determined that the person or company can benefit from the service or product offered. A qualified prospect has a need, can benefit from the product and has the authority to make the decision.

Step TwoThe Pre-approachThis stage involves the collecting of as much relevant information as possible prior to the sales presentation. The pre-approach investigation is carried out on new customers but also on regular customers. Systematic collection of information requires a decision about applicability, usefulness and how to organise the information for easy access and effective use.

Step ThreeThe ApproachThe salesperson should always focus on the benefits for the customer. This is done by using the product's features and advantages. This is known as the FAB technique (Features, Advantages and Benefits).

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* Features : Refers to the physical characteristics such as size, taste etc.* Advantages : Refers to the performance provided by the physical characteristics eg it does not stain.* Benefits : Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost.

Step FourThe Sales PresentationAfter the prospects interest has been grasped, the sales presentation is delivered. This involves a "persuasive vocal and visual explanation of a business proposition". It should be done in a relaxed atmosphere to encourage the prospect to share information in order to establish requirements. Some small talk may be necessary to reduce tension but the purpose always remains business.

Step FiveThe Trial CloseThe trial close is a part of the presentation and is an important step in the selling process. Known as a temperature question - technique to establish the attitude of the prospect towards the presentation and the product.

Step SixHandling ObjectionsObjections are often indications of interest by the prospect and should not be viewed with misgiving by salespeople. The prospect is in fact requesting additional information to help him to justify a decision to buy. The prospect may not be fully convinced and the issues raised are thus very important. It also assists the salesperson to establish exactly what is on the prospect's mind.

Step SevenClosing the SaleThis is the last part of the presentation. Many salespeople fear the closing of a sale. Closing a sale is only the confirmation of an understanding. Fear will disappear if the salesperson truly believes that the prospect will enjoy benefits after the purchase of the product.

Step EightThe Follow-upThe sale does not complete the selling process. Follow-up activities are very important and are useful for the establishment of long-term business relationships. It is important to check if the products have been received in good condition, to establish the customer is satisfied etc.

 

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Steps in Personal Selling Process

Personal Selling consists of the following steps.

1. Pre-sale preparation: The first step in personal selling is the selection, training and motivation of salespersons. The salespersons must be fully familiar with the product, the firm, the market and the selling techniques. They should be well-informed about the competitor's products and the degree of competition. They should also be acquainted with the motives and behavior of prospective buyers.

2. Prospecting : It refers to locating or searching out prospective buyers who have the need for the product and the ability to buy it. Potential customers may be spotted through observation, enquiry and analysis of records of existing customers. Social contacts, business associations and dealers can be helpful in the identification of potential buyers.

3. Approaching : Before calling on the prospects, the salesperson should fully learn their number, needs, habits, spending capacity, motives, etc. Such knowledge helps in selecting the right sales appeal. After such learning, the salesperson should approach the customer in a polite and dignified way. He should introduce himself and his product to the customer. He should greet the customer with a smile and make him feel at home. He should introduce himself and his product to the customer. In case he is busy with some other customer, he should assure the new customer that he would be attended very soon. The salesperson has to be very careful in his approach as the first impression is the last impression.

4. Presentation : For this purpose, the salesperson has to present the product and describe its features in brief. The presentation should be matched with the attitude of the prospect so that the salesman can continuously hold his attention and create interest in the product.

5. Demonstration: In order to maintain customer's interest and to arouse his desire, the sales-person must display and demonstrate the product. He has to explain the utility and distinctive qualities of the product so that the prospect realizes the need for the product to satisfy his wants. He should not be in a hurry to impress the customer and should avoid controversy. He may suggest uses of the product and may create an impulsive urge to possess the article by appealing to human instincts.

6. Handling objections: A sale cannot be achieved simply by creating interest and desire. Every customer wants to make the best bargain for the money he is spending. Presentation and demonstration of the product are likely to create doubts and questions in his mind. The salesman should clear all doubts and objections without entering into a controversy and without losing his temper. Testimonials, money-back guarantee, tact and patience are popular means of winning over s hesitant buyers. The salesman should convince the customer that he is making the best use of his money by purchasing the product. For this purpose, the salesman should prove the superiority of his product over the competitive products. He should not lose patience if the customer puts too many queries and takes time in arriving at any decision. If the customer does not buy even after meeting

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rejections, the salesman should let him go without showing temper. He must believe in the universal rule that the customer is always right.

7. Closing the sale: This is the climax or critical point in the personal selling process. Completing the sale seems to be an easy task but inappropriate handling of the customer can result in loss of sale. The salesman should not force the deal but let the customer feel that he has made the final decision. He should guide the customer in making the choice without imposing his own view. Some adjustment in price or other concession may sometimes be necessary for a successful closing. The salesman should show the same interest in the customer which he exhibited during approach stage. Sales should be closed in a cordial manner so that the customer feels inclined to visit the shop again. In closing the sale, the article should be packed properly and handed over to the customer with speed and accuracy. Once the customer has purchased the article, the salesman should show and suggest an allied product. For instance, he may suggest socks, ties, handkerchiefs, vests, etc., to a customer purchasing a shirt. This is known as additional sales and requires great skill and tact.

8. Post-sale follow-up : It refers to the activities undertaken to ensure that the customer is satisfied with the article and the firm. These activities include installation of the products, checking and ensuring its smooth performance, maintenance and after-sale service. It helps to secure repeat sales identify additional prospects and to evaluate salesman's effectiveness.

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