Benefits of being in the sales profession:1) Independence: It is a lot like having your own

business2) Extreme self management skills are needed3) You get to solve other people’s problems4) Variable income5) It teaches how to get into another person’s

shoes6) The creativity and flexibility many sales people

gain makes them very eligible for executive suites

Sales management is defined as the planning, direction & control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying & motivating, as these tasks apply to the personal sales force

Basically they are responsible for organising the entire sales effort, both inside and outside the company

They have to work in close coordination with their department as well as other departments; also interact with outside world, including building & maintaining a distribution network

Particularly they have to coordinate with the marketing department, in following ways:

1) Provide information from the field and help in implementation of the marketing program

2) They are an integral part of any new marketing campaign, or new product; at times they help set the break up between advertising, distribution, price, etc.

3) Aggressive pushing of the distribution network is done by them to ensure that the company meets its objectives through the channel

Salesmanship is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, hence enhancing their total satisfaction

Personal Selling is a wider concept, which also involves coordinating with the other departments for implementation of marketing program

Diversity of personal selling roles:

Group A - Service selling: It aims to obtain sales from existing customers

a) Inside order takerb) Delivery salespersonc) Route or merchandising salespersond) Missionary salespersone) Technical salesperson

Group B - Developmental selling seeks to convert prospects into customers. It can involve selling tangibles or intangibles

Group C - Developmental selling with unusual creativity:

a) Political, indirect or backdoor salesperson, who provides services to clients not related to the product/service in question

b) Salesperson engaged in multiple sales in an organisation

It is important to understand how a relationship builds between a buyer and a seller… or what is the buyer-seller DYAD

Franklin Evans, after researching the insurance industry, concluded that:

1) Customers who knew the buyer and/or the company were more likely to buy

2) Buyers would buy often from salespeople who were more like them in factors like age, height, income, religion, education, as well as in beliefs and values

Henry Tosi studied sellers to wholesale/retail drug manufacturers, he added that if the salesperson performed in congruence with the prospect’s perception of ideal performance, the dyad would move on successfully

The buyer’s initial prejudice w.r.t. selling also plays a huge role

Sales Theories:1) AIDAS Theory: The prospect goes through the

stages of Attention, Interest, Desire, Action & Satisfaction

a) In the attention stage, look for great conversation openers and lower the buyer’s guard; generally salespeople talk favourably about the prospect’s business

b) To gain interest, the salesperson will then start the presentation; during which he has to show a contagious enthusiasm for the product, and also take hints.

c) Kindling desire: Keep the buyer focused towards the sale and remove objections, preferably before they are even raised. Should never allow the discussion to go off track

d) Inducing action: Once all objections are cleared, then we have to close the sale in a subtle way. Sense the right time to close & ask for the order straightaway; without fear of ‘yes’ or ‘no’

e) Building satisfaction: Should make the customer feel good about his decision and also help in clearing post-sales issues

2) “Right set of Circumstances theory”: Salesperson must know how to manipulate circumstances in a manner that the desirable action results

3) “Buyer Formula” Theory of Selling:

Need/problem Product/Service and/or Trade Name Purchase Satisfaction

Adequacy Adequacy

Pleasant feelings

Pleasant feelings

As per the buying formula, the stress should be on establishing a buying habit for your product/service

4) Behavioural equation theory: It defines buying behaviour in terms of the purchasing decision process, which involves a learning process. Four essential elements of this process are:

a) Drives are strong stimuli that influence the buyer’s response

b) Cues are weak stimuli from the product/salesperson/company that determine when the buyer will respond. They can be triggering or non-triggering.

c) Response is the action taken by the buyerd) Reinforcement is any event that strengthens

the buyer’s tendency to make a responseB = P x D x K x VB = response or internal response tendencyP = Predisposition or force of habitD = Present drive levelK = Incentive potential; value of the product for the

buyerV= Intensity of all cues; triggering, product or

informational

Salesperson can influence the predisposition and also the drive level, besides providing the triggering cues. The difficulty mainly comes when either the product or the salesperson-client relationship is new. In these cases, buyer dissonance is very high.

Besides selling a product, salesperson has other key responsibilities:

1)Prospecting: Searching for customers who have not purchased from the company. Sources of prospects include:

a) Existing customersb) Trade Directoriesc) Enquiries that come as a natural consequence or

through numbers given in advertisements.d) The presse) Cold canvassing

2) Customer records & information feedback: Maintaining proper records and updating them on a regular basis can never be underestimated in terms of importance. Records that are important: Name of company, potential as client, current products used, key people and contact numbers, current attitude towards company’s product, what kind of buying habits and processes, when u met last, past sales, and future follow up

3)Dealing with complaints: Realising that whoever is responsible for delayed service, the customer relationship has been built by you.

4) Providing consulting to the customer5) Implementing marketing strategies:

Salespeople cannot work in a manner that goes against the overall marketing strategy of the company.

Preparation for selling and sales negotiations:1)Product knowledge & benefits: Customise

them as per the buyer2)Competitor’s product knowledge and

benefits: Can be gained from reading their brochures, making cold calls as customers, talking to buyers (esp. those loyal to competing brand), et al. Salespeople must organise this information and keep it in a separate file for ready reference.

Sales presentation planning: It has several advantages:1) Salesperson is less likely to miss out important points.2) Visual aids can be used to reinforce specific points that

may appeal to that customer.3) Make sure you are ready for possible objections before

hand.

Setting objectives: Has to be done with respect to the sales cycle of the prospective customer and on which stage he is currently.

Understanding buyer behavior: Over time it reduces unpredictability and ensures that you can plan better and move faster into the account.

Sales negotiations: They are inevitable in the selling process. Balance of power is an important part of this negotiation process and it is determined by:

1) Number of options with each party2) Quantity and quality of information available with

each party3) Need recognition and satisfaction4) Pressure on the parties

Negotiation objectives, when clearly defined, make the job easier: Two types of objectives may be considered:

1) Must have objectives which are the minimum requirements of the bargainer

2) Would like objectives which are the maximum you can reasonably expect to get

S would like

B must have

S must have

B would like

Price

Opening

Need & problem identification Presentation &

demonstration

Negotiation

Dealing with objections

ClosingFollow up

Personal selling process

Opening:

Be professional and business-like in appearance and mannerisms. It’s useful to have a positive approach.

Avoid clumsiness If you are known to the buyer, then you may have a casual

approach, else come straight to the point. Buyers may tend to divert from the topic, but it is important

that the salesperson keeps control

Need & problem identification:

Prefer open ended rather than close ended questions – Open ended like: What are you looking for in terms of a new

house? OR What do you think about this kind of layout and location?

Close ended like: How many rooms in your current house? Or Where are you staying currently?

Close ended may not encourage a buyer to talk, and this way you cannot identify his need.

The end result of this stage should be that you have a fairly clear idea of the buyer’s primary requirements and his budget. And he should also be comfortable.

Presentation & demonstration: Sell POPs and PODs of the product by linking them to the

buyer’s needs Do try and pause between presentation and confirm the

prospect is with you; and encourage him to keep asking questions.

Buyer resistance can be reduced by:a) Reference sellingb) Demonstrationsc) Guarantees followed by penalty clauses d) Trial orders

Dealing with objections: There can be many ways – 1) Listen and don’t interrupt: It maintains buyer respect and

chances are high that the buyer will also hear you out well.2) Agree & counter: Agree with the prospect and then make

your point, “Yes, but…” technique3) Straight denial: Sometimes a buyer has an extremely wrong

perception that needs to be corrected immediately, but it must be done in a polite manner.

4) Question the objection: If the exact nature of the objection is not apparent, this technique can be used.

5) Forestall the objection: Even before the buyer raises it, you anticipate it, and clarify it at an appropriate time. But in doing so, you may raise questions the buyer was not considering.

Turn the objection into a trial close: If this is clear, will you buy?6. Hidden objections: Ask the prospect for objections since they may not raise it

otherwise.

Negotiation: a) Start high but be realb) Give and take philosophyc) Buyer’s negotiating technique: Some popular ones are: Shotgun approach: Unless you reduce prices, we are looking elsewhere for a

supplier depends on balance of power Sell cheap, the future looks bright… look at credibility Noah’s Ark: You will have to do better with the price… call his bluff

Closing the sale: Timing is of crucial importance. There are a number of techniques:

a) Ask for the orderb) Summarise and ask for the orderc) Concession closed) Alternative close: ask which alternatives he would likee) Objection closef) Action agreement: Look for a positive development in the

next meeting.

Follow up