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Sales &Distribution

Management,

For MBA Batch 7B.

Term 6 Semester 3Facilitator Prof: Sreekumar.B.Pillai.

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Why sales management?

Sales function is a very primary discipline oftrade that prevailied since the beginning of

commercial activity.

Sales function has improved the standard of

living of communities. Sales function has opened up new markets and

created new products based on feedback given

by salesmen.

Sales function has created lot of entrepreneurswho had benefited from their sales expertise.

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Sales management:

Sales force is the final interphasebetween the manufacturer and the

consumer.They are reponsible for the

exchange of goods for cash.

Sales force are the best source ofmarket feedback for forecasting and

planning.

Sales force are the best personnel to

Implement Customer relationship

management.

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What is sales management?

A sale can be defined as a commercialtransaction which results in a transfer of

ownership in exchange for a Monetary

consideration.

All functions that include the analysis,Planning,organising, directing and

controlling of the sales activities of an

organisation constitutes sales

management.

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Sales management and marketing.

Though Sales mangement is an integral

part of marketing management thedifference between the two must be

made clear.

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Professional selling today:

Has to meet the Increasedsophistication of buyers .

Has to meet the intenseprofessionalisation of purchasing

management of both indivuduals andCompanies.

Sales force has to understand CRM andthat sale does not end at the POS.

Has to be trained in order to meet thechallenges of the market.

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Theories of selling practice.

Traditional selling approach: also called thesalesmanship approach,a sales persons

behaviour is regarded as the key ingredient in

the sales process.

a)Canned sales presentation approach.These are fully structured presentations which are

memorised by the salesperson.Frequently used

in door to door selling,canned sales provide a

preset procedure of what is considered to be

the best way to sell the product.Here theprospect is considered to be passive.

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Traditional approach ..contd: Stimulus response theory:

This theory states that prospects are

trigerred to buy upon hearing a certain set

of statements-provided that the

statements are presented in the correctmanner.If the salesman provides the

right stimulus then the prospect will

respond to the stimulus by purchasing

the product or service.

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Traditional approach..contd.

Selling formula approach:Proposed by Arthur FredrickSheldon in 1902 as the AIDR (r for resolve) was lateradapted into sales management as AIDAS.

According to this principle selling is a net result of the

Following set of factors set in motion one after the other:

A for AttentionI for Interest.

D for Desire.

A for action and

S for satisfaction.

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Modern Viewpoint of selling:

The Buyer seller Dyad:

The Dyad represents a situation where two

people interact.This theory explains that

external factors like the future expections

of both the seller and the prospect caninfluence the sales methodology.

The external and internal environments of

both seller and the prospect can

influence the sales approach that willhave to be implemented.

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Modern approaches

Need satisfaction selling approach.

Based on notion that the customer is buying to

satisfy a particular need or set of needs. The

Stress is on probing the customer to understand

his needs ,and only after identifyng needs the

salesperson begins to offer his products forSatisfying these needs.

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Modern theories:

Problem solving approach.

This is an extension of the need satisfaction

selling.It goes beyond identifying needs to

developing alternate solutions for satisfyingthese needs.

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Modern selling theories.

Consultative selling.

Consultative selling is the process of helping

customers reach their strategic goals by

using the products,services and expertise ofthe sales organisation.this method focuses

achieving strategic goals of customers not

just meeting needs or solving problems.

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Salesmanship:

Good salesmanship consists of the following:

Proper positioning, prospecting,and pre-call planning

.

Because of the above you will be in front of the right

people at the right time with the right kind of

message.

Good salesmanship is about getting trust,buildingtrust is based on proper approach and not

dominating the conversation.

Professional selling is based on asking enough of the

right questions and not presenting any solution till

you have discovered

a) What they will buy,

b) When they will buy,

c) How they will buy

d) Under what conditions they will buy.

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Salesmanship..contd.

Properly presenting your solution based on theconditions,terms,and parameters under which

your prospect will buy is the essence of the

successful sale.

People expect claims to be made by salesmenon their products but they are more impressed

when someone else does it or they are able to

experience the claim themselves.

No sale is made unless you ask someone to buyyour product.

The real work begins after your first sale.

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Key factors for effective selling

Positioning: The relative ranking orperception that prospects have of

you,your product, and /or your

organisation relative to your competition.

Prospecting:The proactive steps taken toidentify,isolate and get in front of

qualified prospects.

Pre-call Planning: The research ,data

gathering and preparation that you mustmake in order to be totally prepared for a

sales presentation.

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Pull Vs PushPropecting:

Pull Prospecting: Attracting prospects through abroad based process that could include such

methods as authorships,networking and gaining

industry specific celebrity status.People want to do

business with you if you are a busy,highly sought

after person more than if you appear to bedesperate ,hungry,aggressive sales person seeking

your next dollar.

Push prospecting: Contacting prospects one at a

time ,individually,proactively,through such methods

as cold calling or phone solicitation.

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Vital Questions:

Ideally a salesman should research the

following issues before getting in front of anyprospect:

Who will I be competing against?

What questions is the prospect likely to askme?

Is the person Im calling on a decision maker orinfluencer?

How can I develop Internal advocacy?What isthe biggest single problem I can help the

prospect solve? How far along is the prospect in the buying

process?

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Aim to be trusted not liked!

If you build trust you are in a betterposition to sell value.If you seek to be

liked,you are only going to sell price.

Buyer trust means that the prospect has

the belief,confidence and full expectationthat you ,the salesperson are a person of

integrity and that you and your

organisation will deliver all that you

promise.

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Dont overwhelm!

Good salespeople do not dominate the

conversation.They also dont come across as

aggressive.They do not offer unsolicited small

talk.If the prospect wants to talk let him/hertalk. If not ,simply tell the prospect why you

are there and what you would like to

accomplish on that call.

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Knowledge sells:

It is better to position yourself as a

business advisor,strategic

partner,industry expert or product-

specific Guru than to position yourself asa salesperson.Unfortunately salespeople

are just not positioned nearly as well in

the marketplace as the others are.

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Application based selling:

Presenting the product or service in thecontext of precisely how it can be

applied to solve your prospects biggest

problem,agitation,or difficulty or to

address a solution your prospect isseeking.this is in contrast with focusing

on features ,benefits,price or design.our

prospects are looking for

answers.Application based selling is theessence of professional selling.

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Traditional sale strategies:

Market penetration: trying to gain more market share withexisting products.eg; special promotions

Product development/ account penetration: creating newproducts to get more business out of the companys existingcustomers/ selling more products to the same accounts.new

packing/packaging,new formats etc Market development: finding new markets eg; exports

Diversification: combining new products and new markets.Eg: Kingfisher going from alco; beverages to air travel.

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Strategic sales Planning.

This is the process by which a companyattempts to match its sales operations with therealities of its internal and external environments.

Strategic planning is unique in that it assures thefirm that it will be prepared to meet challengesthat arise due to changes in the environment.

Modern Strategic sales planning comprises of :

1)Window Driven Planning.

2) Horizontal information exchange.

3) Vertical Information exchange.

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Retailing and selling .Are they the same?

Retailing is the sum of all the marketing activity thatare undertaken by a component of the supply chainwhen it is involved in selling goods or services directlyto the consumers for their personal, family orhousehold use.

According to the ARA such a retailer should have more

than 50% of their sales revenue through direct sale tothe customer.

Though they have the same basic function retailersvary greatly in size, organisation ,nature ofproduct/service offering and sales strategies.

Study of the Planning,implementing,controlling anddirecting the processes that lead to the transfer ofgoods from the retailer to the consumer constitutesRetail management

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Factors that have to be considered as challenges to modern

sales function:

Short life cycles. Short shelf life.

High Volatility(fluctuation of demand).

Low predictability of demand.

High Impulse purchase.

Time to market.

Time to serve

Time to react.