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Selling and Sales Management CHP 1

The document discusses the field of sales force management and the changing nature of selling. It covers topics like modern sales approaches, the roles of personal selling in the marketing mix, activities of salespeople and sales managers, and the differences between transaction-oriented versus relationship-oriented selling. The document provides definitions and explanations of important sales concepts.

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Midhat arif
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51 views17 pages

Selling and Sales Management CHP 1

The document discusses the field of sales force management and the changing nature of selling. It covers topics like modern sales approaches, the roles of personal selling in the marketing mix, activities of salespeople and sales managers, and the differences between transaction-oriented versus relationship-oriented selling. The document provides definitions and explanations of important sales concepts.

Uploaded by

Midhat arif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SELLING AND SALES MANGEMENT

Chapter One
The Field of Sales Force Management
Sales Management : Sales management is a business discipline which is
focused on the practical application of sales techniques and the management of a
firm's sales operations. It is an important business function as net sales through the
sale of products and services and resulting profit drive most commercial business.
These are also typically the goals and performance indicators of sales management

Also known as Sales force Management and maybe also defined as the
management of the personal selling component of an organization's marketing
program.
• Personal Selling: persuasive communication between a
representative of the company and one or more
prospective customers, designed to influence the person's
or group's purchase decision.

• A personal presentation by the company’s sales force for


the purpose of making sales and building customer
relationship
THE CHANGE..?
The world of professional selling is changing dramatically.
Much of this change is driven by shifts in the way customers ,
particularly business customers, buy products.

Important changes:
• Customers have become more sophisticated and demanding
• Customers want solutions rather than products
• Companies are using fewer suppliers
• Purchases being made from foreign suppliers
• Rapid transfer of technology
• Large accounts require more sophisticated selling
We now understand ‘The Changes’, now what?
• The ‘KEY’ to success is that:
The sales force must be able to identify and develop
relationships with the high profit potential accounts.
• Successful companies will distinguish themselves by the
relationships they develop with their clients/ customers
What does all this lead us to?
This means that managing the sales force becomes more
important to the ultimate success of most companies.

Sales management will be primarily responsible for what


happens when salesperson or selling team meets the
customer.
• Along with changes in their approach to customers, sales
people will change themselves.
• They will have more in depth customer knowledge and
more sophisticated selling and service skills.
• As a result, salespeople will be highly paid, more highly
trained, and more skilled professionals.
Figure 1.1 Characteristics of modern selling
Modern sales approaches:
• The shifts in the way customers buy in 21st century
entails that sales function takes on a new robe and a novel
sales approach.

Some of the modern sales approaches include:


• Partnering
• Relationship selling
• Team selling
• Value added selling
• Consultative selling
Personal selling in the Marketing Mix

• Under the marketing concept, marketing research assumes the


task of identifying customer needs and problems, while the
firm’s marketing mix is used to deliver the solutions.

• The marketing mix is the set of strategies that a company


utilizes to implement its marketing plan and pursue its
marketing objectives.

• In line with the changes in the markets and marketing


strategies, salespeople n sales managers are being asked to
play a significant role in each component of the marketing
mix.
• The role of personal selling in product strategy: earlier limited input into
product development decisions; but under marketing concept, sales personnel
help specify desirable product features n benefits during product development
phase.
• The role of personal selling in pricing strategy: they can ascertain competitive
pricing and gauge market reaction to alternative price levels; advise senior
management in pricing decisions; or granted some discretion in adjusting prices
to market conditions.
• The role of personal selling in distribution strategy: be it direct, in which its
the salesperson calling on ultimate customer, or indirect distribution, where
salesperson works closely with intermediaries.
• The role of personal selling in promotion strategy: the presentation of
informative and persuasive messages to the firm’s target market in an attempt to
stimulate sales. Thus paving the way for the salesforce to sell the firm’s
offerings.
Fig 2. Types of sales job
Selected activities of a Salesperson
Generate Sales Provide Service Territory Professional Company
Management development service
• Pre call • Provide mgt./
planning technical • Gather Participate in: • Train new
• Prospecting consulting info. • Sales sales people
• Make sales • Oversee • Assist sales meetings • Perform
presentations installation & managers • Professional civic duties
• Overcome repair • Develop associations
objections • Check strategies/ • Training
• Closing sales inventory forecasts & programs
• Arranging levels budgets
delivery • Oversee
• Entertain product
• Arrange testing
credit/finance • Train mktg.
• Collect intermediaries
payment
• Participate in
trade shows
Strategic
Planning
Performance Organizi
Evaluation
ng
Communication
Coordination
Integration
Motivation Recruiting/
& Selection/
Supervision Assimilation

Training &
development

Fig. 3. Sales Management responsibilities


Field Sales Manager’s Activities
Analyze: the conditions of the selling situation
1. Review individual sales records n performance of salesperson
2. Assess specific market trends n conditions
3. Note relevant environmental factors n trends

Plan: short run & long run


4. Establish sales objectives n develop strategies n procedures to attain these objectives
5. Transmit objectives, strategies n procedures to salesperson

Organize: sales team to achieve the objectives


6. Break the selling tasks n supporting activities into operational jobs
7. Create specific job descriptions for these tasks n activities

Direct: the operations of the sales team


8. Issue directions n delegate authority in order to get people do things
9. Motivate people (incentives), Train them and lead them.
10. Assure quality work and ethical behavior in conduct of business.

Evaluate: sales performance


11. Create performance standards n measurement techniques
12. Analyze performance against standards
13. Take indicated remedial actions.
Crucial traits of a Sales manager

1. Motivation – enthusiasm toward all major tasks with no strong


aversion to any required tasks.
2. Human relationship skills
3. High energy levels
4. Ambition – strong personal desire to achieve n advance
5. Persuasiveness – interest in persuasive involvement rather than
tendency to bully.
6. Behavioral flexibility
7. Intellectual ability
8. Personal impact – charisma
Transaction oriented Relationship oriented

1. Get new accounts 1. Retain existing ones


2. Get the order 2. Become the preferred supplier
3. Cut the price to get the sale 3. Price for profit
4. Manage all accounts to 4. Manage each account for long
maximize short term sale. term profit
5. Sell to anyone 5. Concentrate on high profit
potential accounts

Difference between Transaction – oriented selling and relationship – oriented selling


Important Questions
1. Explain how changes in purchasing patterns have changed the
nature of the selling task?
2. How does relationship oriented selling differ from transaction
oriented selling?
3. What activities a sales manager usually perform?
4. Write down the general activities a salesperson has to perform?

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