presentation chapter 1

8/6/2019 Presentation Chapter 1

1/43

Chapter 1

Introduction to SalesManagement


2/43

Factory FactorySelling and

promotingProfits though

sales volume

Selling concept

Market concept

Market Customer

needs

Coordinated

marketing

Starting

point Focus Means Ends

Profits through

customer satisfaction

Difference between sales and marketing


3/43

British

Pheriwallahs

Greeters &

DrummersBaniyas

YankeePeddlers

Evolution of Sales Management


4/43

Role of Sales ManagementRole of Sales Management

To generate sales and earn revenueTo generate sales and earn revenue

Maintaining good customer relationshipMaintaining good customer relationship

Managing the profitability of a firmManaging the profitability of a firmManaging customer complaintsManaging customer complaints

Building brand value in the eyes of theBuilding brand value in the eyes of the

customers.customers.


5/43

Duties and Responsibilities of a

Sales Manager The determination of sales force objective and

goals

Sales force organization, size, territory, and quota

finalization

Sales forecasting and budgeting

Sales force selection, recruitment, and training

Motivating and leading the sales force

Designing compensation plan and control systems

Designing career growth plans and building

relationship strategies with key customers


6/43

Types of selling

Order taker sales people

Order creators

Order getters


7/43


8/43

Persuasion

Consultative

Selling

Partnership

StrategiesBusiness

Management

Negotiation

Evolution of personal selling


9/43

Types of personal selling

Industrial selling Retail selling

Services selling

Selling to resellers

Selling to business user

Institutional selling

Selling to government

Tangible

Inseparable

Heterogenous

Perishable


10/43

Formulation of a strategic sales programme

Implementation of the sales programme

Evaluation and control of sales force performance

Sales management process


11/43

Formulation of a strategic sales programme

The External environment

Potential Customer

CompetitionLegal and political environment

Technological environment

Social and cultural environment

The Internal environment

Objective and Missions

Human resourcesFinancial resources

Capacity utilization

R & D activities

Marketing Strategy

Product and product lines

Pricing policy

Distribution strategy

Promotion Policy

Advertising and sales promotion

Sales management functions

Account mngt

Policy

Sales force

organization

Sales planning,

Forecasting and

Quota setting

Sales force

Territory design

And route

Planning


12/43

Implementation of the sales programme

Sales persons view of

Job requirement,

Role perception

Determinants of the

Sales peoples

performance

Supervision

Performance

Sales volume

Quota allocation

Selling expenses

Profitability of

CustomerLevel of customer

Service

Sales reports

Ethical practices

Selection and

Recruitment of

Sales personnel

Sales training

Motivating the

Sales force

Compensation

System

Reward system

Aptitude

Skills

Motivation Level

Sales management Outcomes

EnvironmentalVariables


13/43

Evaluation and control of sales force

performance

Companies conductCompanies conduct

Sales analysisSales analysis

Cost analysisCost analysis

Behavioral analysisBehavioral analysis

To monitor sales programmes.To monitor sales programmes.


14/43

Chapter 2Chapter 2

Selling Skills andSelling Skills and

StrategiesStrategies


15/43

Types of buyerTypes of buyer

Innovators (2 %)Innovators (2 %)

Early Adopters (13 %)Early Adopters (13 %)

Early Majority (34%)Early Majority (34%)Late Majority (34%)Late Majority (34%)

Laggards (16%)Laggards (16%)


16/43

Selling and buying stylesSelling and buying styles

99

88

77

66

55

44

33

22

11 22 33 44 55 66 77 88 99

Concernfor

thec u

stomers

(1,9) People OrientedI am customers friend,

I want to understand him and

respond to his feelings and

interests so that he will like me. It

is the personal bond that leads him

to purchase from me.(5,5) Sales technique Oriented

I have tried an effective routine for

getting a customer to buy. It

motivates through a blended

personality and product emphasis

(1,1) Take it or Leave it

I place the product before the

customer and it sells itself as and

when it comes.

(9,1) Push the product Oriented

I take challenge of the customer

and hard sell him, polling on all

the pressure it takes to make him

buy

(9,9) Problem Solving Oriented

I consult with the customer so as to

inform myself of all the needs in his

situation that my products can satisfy.

We work towards a sound purchase

decision on his part, which yield him

the benefits he expects from it.

Concern for sales


17/43

Selling skillsSelling skills

Selling Skills

Listening Skills

Conflict management and

resolution skills

Negotiation

and bargaining

skills

Problem

solving skills

Effective

communication

skills


18/43

Trust BuildingTrust BuildingTruth of wordsTruth of words

Competency (ability/ Knowledge)Competency (ability/ Knowledge)

Intent or empathy (placing the customerIntent or empathy (placing the customer

interest etc.)interest etc.)

LikeabilityLikeability

______________________________________________________________________

What customers are sayingWhat customers are saying

Analyze their spoken wordsAnalyze their spoken words

Attentive to their non verbal expressionAttentive to their non verbal expression


19/43

Communication processCommunication process

Noise

Channel

Feedback

Intended

Message

Sent Message

Encoding

Perceived

Message

Received

Message

Decoding

Sender Receiver


20/43

CommunicationCommunicationprocessprocesscontd.

Managing body language:Managing body language:

Personal AppearancePersonal Appearance

PosturePosture GesturesGestures

Facial ExpressionsFacial Expressions

Eye ContactEye Contact

Space DistancingSpace Distancing


21/43

Personal AppearancePersonal Appearance

First ImpactFirst Impact

Individual personalityIndividual personality

Dress, hairstyle and overall appearanceDress, hairstyle and overall appearance

PosturePosturePosture = WealthPosture = Wealth

Position of hands, legs and other partsPosition of hands, legs and other parts

Good salesperson postureGood salesperson posture

Discourage, tired and worn out postureDiscourage, tired and worn out posture


22/43

Facial ExpressionFacial ExpressionSmile, Frown, Raising Eyebrows,Smile, Frown, Raising Eyebrows,

Tightening JawsTightening Jaws

Biting the lips, raising eyebrow at regularBiting the lips, raising eyebrow at regular

intervalsintervals

Blinking the eyesBlinking the eyes

Eye ContactEye Contact

Eye is the extension of brain andEye is the extension of brain andwindow to the soulwindow to the soul


23/43

Space DistancingSpace DistancingFormal Presentation must have 4-12 feetFormal Presentation must have 4-12 feet

Face to Face ConversationFace to Face Conversation

______________________________________________________________________

LanguageLanguageCourteous and cheerfulCourteous and cheerful

No strong arguments and opinionsNo strong arguments and opinions

Avoid JargonsAvoid Jargons

Dont LieDont Lie

Dont mix friendshipDont mix friendship


24/43

Listening SkillsListening Skills

Good Listeners welcomesGood Listeners welcomes

New IdeasNew Ideas

Stays InformedStays Informed

Up to dateUp to date

Out of DangerOut of Danger

Sales person spends more time inSales person spends more time in

receiving communication than inreceiving communication than in

transmitting it .transmitting it .


25/43

3 Types of Listening3 Types of Listening

Content Listening: To understand and retainContent Listening: To understand and retainthe speakers message. Exthe speakers message. Ex

Critical Listening : To understand andCritical Listening : To understand andevaluate the meaning of speakers messageevaluate the meaning of speakers message

at several level.at several level.

Empathetic Listening : To understand theEmpathetic Listening : To understand the

speakers feelings, needs and demands.speakers feelings, needs and demands.


26/43

Process of listening

Attendance

Interpretation

Evaluations

Remembrance

Response Action


27/43

Levels of listening

Feedback

Paraphrasing

Emphatic listening

Clarifications

Active Listening

Barriers to Listening !


28/43

ParaphrasingParaphrasing

Salesperson tries to paraphrase theSalesperson tries to paraphrase thequestion by mirroring the questionersquestion by mirroring the questionerspointpoint

For example:For example:

The Sales person may say, So what youThe Sales person may say, So what youare saying is you think that I am just givingare saying is you think that I am just givingthe company line, whereas what you arethe company line, whereas what you are

need is more help in financing and on theneed is more help in financing and on thespot service. Immediate response will bespot service. Immediate response will beYesYes


29/43

Clarification of the issuesClarification of the issues

Sales person involves working little harderSales person involves working little harder

with the customers words to identify hiswith the customers words to identify his

real concernreal concern

For Example:For Example:

So what I hear you saying that you haveSo what I hear you saying that you have

got two main problem..got two main problem..


30/43

Empathetic listeningEmpathetic listening

Salesperson tries to show that heSalesperson tries to show that heunderstand the feelings of the customer.understand the feelings of the customer.

For Example:For Example:

you know we have been there too. Dontyou know we have been there too. Dontforget we have worked in a bad way inforget we have worked in a bad way in

1995,1995,


31/43

Active ListeningActive Listening

Salesperson identifies the emotionsSalesperson identifies the emotionsunderlying the customers words.underlying the customers words.

Ex.: It sound like you feel really alone outEx.: It sound like you feel really alone out

there, without much support. You arethere, without much support. You arefrustrated because you are putting in allfrustrated because you are putting in all

this hard work and all I feel is that we canthis hard work and all I feel is that we can

be with you for achieving your goal. Is thatbe with you for achieving your goal. Is thatit?it?

Answer will be: YesAnswer will be: Yes


32/43

Conflict management skillsConflict management skills

Components of conflictComponents of conflictInterest, Emotions and ValueInterest, Emotions and Value


33/43

The Conflict ProcessThe Conflict Process


34/43

2005 Prentice Hall Inc. All 2005 Prentice Hall Inc. All

rights reserved.rights reserved. 14143434

Stage I: Potential Opposition orStage I: Potential Opposition or

IncompatibilityIncompatibilityCommunicationCommunication

Semantic difficulties, misunderstandings, and noiseSemantic difficulties, misunderstandings, and noise

StructureStructure

Size and specialization of jobsSize and specialization of jobs

Jurisdictional clarity/ambiguityJurisdictional clarity/ambiguity

Member/goal incompatibilityMember/goal incompatibility

Leadership styles (close or participative)Leadership styles (close or participative)

Reward systems (win-lose)Reward systems (win-lose)

Dependence/interdependence of groupsDependence/interdependence of groupsPersonal VariablesPersonal Variables

Differing individual value systemsDiffering individual value systems

Personality typesPersonality types


35/43

Stage II: Cognition andStage II: Cognition and

PersonalizationPersonalization

Positive FeelingsPositive FeelingsNegative EmotionsNegative Emotions

Conflict DefinitionConflict Definition

Perceived ConflictAwareness by one ormore parties of theexistence of conditionsthat create opportunities

for conflict to arise.

Felt ConflictEmotional involvement ina conflict creating anxiety,tenseness, frustration, orhostility.


36/43

Stage III: IntentionsStage III: Intentions

Cooperativeness:

Attempting to satisfy the other partys concerns.

Assertiveness: Attempting to satisfy ones own concerns.

Cooperativeness:

Attempting to satisfy the other partys concerns.

Assertiveness:

Attempting to satisfy ones own concerns.

Intentions

Decisions to act in a given way.


37/43

Dimensions of Conflict-HandlingDimensions of Conflict-Handling

IntentionsIntentions

Source: K. Thomas, Conflict and Negotiation Processes in Organizations, in M.D. Dunnette

and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3

(Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.


38/43

Stage III: Intentions (contd)Stage III: Intentions (contd)

Accommodating

The willingness of one party in a conflict to placethe opponents interests above his or her own.

Compromising

A situation in which each party to aconflict is willing to give up something.


39/43

Stage III: Intentions (contd)Stage III: Intentions (contd)

Competing

A desire to satisfy ones interests, regardlessof the impact on the other party to theconflict.

Collaborating

A situation in which the parties to a conflicteach desire to satisfy fully the concerns of allparties.

Avoiding

The desire to withdraw from or suppress aconflict.


40/43

Stage IV: BehaviorStage IV: Behavior

Conflict ManagementThe use of resolution and stimulationtechniques to achieve the desired level ofconflict.

St V O tSt V O t


41/43

Stage V: OutcomesStage V: OutcomesFunctional Outcomes from ConflictFunctional Outcomes from Conflict

Increased group performanceIncreased group performance Improved quality of decisionsImproved quality of decisions

Stimulation of creativity and innovationStimulation of creativity and innovation

Encouragement of interest and curiosityEncouragement of interest and curiosity

Provision of a medium for problem-solvingProvision of a medium for problem-solving

Creation of an environment for self-evaluation andCreation of an environment for self-evaluation and

changechange

Creating Functional ConflictCreating Functional Conflict

Reward dissent and punish conflict avoiders.Reward dissent and punish conflict avoiders.


42/43

Stage V: OutcomesStage V: Outcomes

Dysfunctional Outcomes from ConflictDysfunctional Outcomes from Conflict

Development of discontentDevelopment of discontent

Reduced group effectivenessReduced group effectiveness

Retarded communicationRetarded communication

Reduced group cohesivenessReduced group cohesiveness

Infighting among group members overcomesInfighting among group members overcomes

group goalsgroup goals


43/43

Procedures for handling ConflictProcedures for handling Conflict

- lumping- lumping- avoidance- avoidance

- coercion- coercion

- meditation- meditation- conciliation- conciliation

- arbitration- arbitration

- adjudication- adjudication- negotiation- negotiation

presentation chapter 1

Documents