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Sales and Distribution
Management
Narayan Madhusudan
Sales: Concepts
• In daily life, a layman deals with different transaction in terms of
selling and purchasing of goods and services. In these transactions
the second one persuades the first person. Therefore, selling may
be defined as persuading people to satisfy the want of first one.
The person, who does this act, is called as the salesman, the
result of this action as sales, while these activities of the person,
are supervised and controlled by sales-management.
• Sales management is the attainment of sales force goals in an
effective and efficient manner through planning, training, leading,
and controlling organizational resources
• Sales management is planning, direction and control of personal
selling. This essentially includes recruiting, selecting, equipping,
assigning, supervising, compensating and motivating the sales
force.
• The art of meeting and exceeding the sales goals of an
organization through effective planning, controlling, budgeting and
leadership refers to sales management.
Sales: Concepts
• Selling concept proposes that customer will not buy
enough of an organization's products unless they are
persuaded to do so through selling effort. Where as
Marketing concept proposes that to achieve success, the
focus should be on organization's ability to create,
communicate and deliver a better value proposition
through its marketing offer.
• Personal selling involves a two-way flow of
communication between a buyer and seller, often in a
face-to-face encounter, designed to influence a person’s
or group’s purchase decision. With advances in
telecommunications, however, personal selling takes
place over the telephone, through video teleconferencing
and interactive computer links between buyers and
sellers.
Marketing Vs Selling
Advertising Vs Promotion
Basis for Comparison Advertising Promotion
Meaning
Advertising is a technique
of driving public attention
towards a product or
service, through paid
network.
The set of activities that
spread a word about the
product, brand or service is
known as promotion.
What is it? Subset
Superset
Objective
Building brand image and
boosting sales.
Short term sales push
Strategy Promotional strategy Marketing strategy
Effects Long term Short term
Results
Generally slow, can be seen
over time.
Instant
Cost involved Highly expensive Cost Effective
Best suited for Medium and big enterprises All enterprises
Benefits of selling activities :
• Benefits to the society: economic growth and maximum employment are the
basics for national development. The achievement of both these goals means jobs
and incomes for a nation’s labour-force. The number of people, who need jobs,
continues to expand, and also some jobs are being eliminated, because of the
introduction of computers and abolition of obsolete technology. If jobs are to be
made available for all those, who want and expect them, the economy must
continuously expand its production of goods and services, which can only be done
by adopting sound government-policies and efficient use of people. Equally
important here is the fact, that an economy needs individuals, to sell what is
produced. Through their persistent efforts to create and stimulate demand,
salespeople could be said to be the life and blood of a productive economic-
system. The large number of workers, in factories, and offices, would not be
needed, if someone were not selling their products.
• Benefits to consumers: professional people may not know every fact of a
product, but they, at least know its major uses, limitations and benefits; so they
can easily serve their customers, quite effectively. For exan1ple, an insurance
agent can analyse the hazards and risks that confront a client’s business or home-
situation, examine existing coverage and offer helpful advice, in order to eliminate
the gaps or overlaps in coverage, in addition to saving the client’s money. The
sales-engineers are qualified to analyse technical-problems, which may be
confronting a particular organisation and they can give the right recommendations
for developing efficient operations. Like-wise, the medical representatives may
help the busy doctor, by keeping him abreast of new drugs in the market. The list
of sales-people who can offer assistance to customers is practically without end.
Benefits of selling activities :
• Benefits to business firms; their sales-persons and customers:
salespersons are owned by their companies, while customers are the end-
users of the company’s product(s) and/or services, all these people, in the
chain of marketing, stand to benefit by sales-activities. A business firm can
be profitable only if its revenues exceed its costs. The prime responsibility
of the salespersons is to sell the goods, produced by the organisation, at a
profit. The creative sales-person, tries to penetrate his territory, and adopts
suitable means and techniques of profitable-selling of goods and/or
services. Business firms, derive various other benefits from, non-selling
activities of sales-persons. The salesperson, in the field, is an ideal person,
to keep the company abreast, or ahead of competition. He, thus, becomes
an important source of field-intelligence by providing important (and
sometimes very crucial) information, about the nature of 6 competitive-
activities, and also about the changing needs of customers. The sales-force
has the additional responsibility of serving the needs of customers that buy
the film’s product(s). Most firms cannot survive, only on the basis of one-
time sales; repeat-sales are necessary. This is possible only if the customers
are served in a professional manner. A customer-oriented sales-person has
to perform such activities as: providing customers with ‘product-information’
and ‘demonstration(s); training customers-employees, in product-use;
providing customers with sales-advice; and assisting customers in
maintaining ‘inventories’.
Skills of a Sales Executive
• Sales management is an art where the sales executive or the salesperson
helps the organization or individual to achieve its objective or buy a
product with their skills.
• The following are some skills that a sales executive needs to possess:
• Conceptual Skills
Conceptual skill includes the formulation of ideas. Managers understand
abstract relationships, improve ideas, and solve issues creatively. The sales
executive should be well versed with the concept of the product he/she is
selling.
• People Skills
People skills involve the ability to interact effectively with people in a
friendly way, especially in business. The term ‘people skills’ involves both
psychological skills and social skills, but they are less inclusive than life
skills. Every person has a different mind-set, so a sales executive should
know how to present the product depending on the customer’s mind-set.
Skills of a Sales Executive
• Technical Skills
• Technical skills are the abilities captured through learning and practice.
They are often job or task specific. In simple words, a specific skill set or
proficiency is required to perform a specific job or task. As a part of
conceptual skills, a sales executive should also have a good grasp on the
technical skills of the product.
• Decision Skills
• Decision skills are the most important because to tackle the questions
from consumers, sales executive should always have the knowledge of
competitors’ products and take a wise decision.
• Monitoring Performance
• Sales executives should monitor the performance of the employees and
report to higher management to improve the performance and fill the
loop holes. Thus, conceptual skills deal with ideas, technical skills deal
with things, people skills concern individuals, technical skills are
concerned with product-specific skills, and decision skills relate to
decision-making.
Sales and Distribution
Management
Narayan Madhusudan
• Selling ideas or products to known people involves
different dynamics than selling to strangers does.
• A sales person needs to interact convincingly and
effortlessly with strangers
• However, a sales person needs to interact
convincingly and effortlessly with strangers and get
them to believe in a product or a service and finally
persuade them to purchase the same.
• Selling involves
 People
 Package of emotions and feelings
 Selling involves people and with them comes a
package of emotions and feelings that cannot be
overlooked. Managing those feelings and
emotions is certainly an art.
Qualities of Salesmanship
A successful sales person needs
 Domain knowledge
 Proficiency in skills
 Right attitude
• To be a successful sales person, one needs to have
adequate knowledge of the domain, be proficient in the
skills required and have the right attitude. All the three are
equally important though we tend to underestimate the
importance of having the right attitude to be successful.
10 Traits of Effective
Salespeople
1. Ego strength: a healthy self-esteem that allows one to bounce
back from rejection.
2. A sense of urgency: wanting to get it done now.
3. Ego drive: a combination of competitiveness and self esteem.
4. Assertiveness: the ability to be firm, lead the sales process, and
get one’s point across confidently.
5. Willingness to take risk: willing to innovate and take a chance.
6. Sociable : outgoing, friendly, talkative, and interested in others.
7. Abstract reasoning: ability to understand concepts and ideas.
8. Skepticism: a slight lack of trust and suspicion of others.
9. Creativity: the ability to think differently.
10. Empathy: the ability to place oneself in someone else’s shoes
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.
Roles and Responsibilities of a Sales Manager
o 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.
o 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.
o 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.
o 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.
Roles and Responsibilities of a Sales Manager
o 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 through out the week or
month. The performers must be encouraged while the non performers
must be dealt with utmost patience and care.
o 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.
o A sales manager should set an example for his team members. He should
be a source of inspiration for his team members.
o 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.
o As a sales manager, one should maintain necessary data and records for
future reference.
Domain Knowledge needed by the sales person
Knowing the product
• Knowledge of products is extremely important for any sales
person. They need to know everything about the product or
service they are selling - its features, advantages and the
specific benefits that the customer is likely to get from the
product or service.
Knowing the process
• Successful sales people understand the sales process. They
not only understand the sales process but also know how to
apply the same in the context of their product
 Understanding customers’ objections
• Sales people face many road blocks in terms of objections by
clients. Having prior knowledge about them will help them
to prepare convincing explanations providing missing
information. Removing such misunderstandings will take
them one stop closer to clinch the deal.
ATTITUDES REQUIRED FOR SALESMANSHIP
 Confidence
• Confidence helps them to take rejections in their stride and bounce back with
enthusiasm.
• The first and perhaps the most important attitude that a sales person needs
to possess is confidence. Sales people are confident about their abilities and
about the product or services that they sell. Sales people are bound to face
rejections during the course of their work and it is their confidence that helps
them to take rejections in their stride and bounce back with enthusiasm.
Persistent and determinant
• The determined person refuses to accept defeat and goes on to attain what
he wants.
• Persistence and determination need to be the second nature of a sales
person. There are innumerable obstacles that come along and it is the
determined person who refuses to accept defeat and goes on to attain what
he or she wants.
ATTITUDES REQUIRED FOR SALESMANSHIP
Maintain a long-term relationship with customers
• Need to view each sale as a stepping stone towards earning the goodwill of their
customers.
• Successful sales people value the relationship with customers and maintain a long-
term relationship with them through regular follow-ups. They understand the
bigger picture and view each sale as a stepping stone towards earning the
goodwill of their customers who could provide valuable referrals to future
prospects.
Having a friendly personality
• Sales people need to have a personality that is amicable so that people are
comfortable talking to them. They need to ask the right questions to understand
the situation of their customers and their buying needs.
Accountability
• Accountable for themselves, their customers and their organization
• Another important trait of successful sales people is that they are accountable for
themselves, their customers and their organization. They are more forthcoming in
Sales and Distribution
Management
Narayan Madhusudan
Sales Process
• Selling is a process involving the interaction between a potential buyer
and a person hired by a company to sell its products to potential buyers.
Sales is a recognized business profession, and ranges from a shoe
salesman to an investment banker who manages company stock with
billions of dollars at stake.
• Certainly no magical formula exists for making a sales. Many different
factors may influence a purchase decision. Yet most sales trainers believe
logical , sequential steps do exists that , if followed can greatly improve
the chance of making a sale. This is called a sales process. This sequential
series of actions by sales person leads to customer taking a desired action
and ends with a follow up to ensure purchase satisfaction.
• There is a certain way in which sales person needs to attend his function.
It involves few steps. A sales person need not follow all steps .Depending
on his nature of job he goes about the personal selling process.
• Sales Process : Professional selling involves a series of seven distinct
steps. They are :
• Prospecting
• Pre – approach
• Approach
• Presentation and Demonstration
• Handling Objections
• Closing
• Follow-up and Service
Prospecting
• Prospecting is finding and qualifying potential customers. Qualifying is the process
of determining whether a potential customer has a need or want that the company
can fulfill, and whether the potential client can afford the product.
• A prospect is a person or business that needs the product a salesperson is selling
and has the ability to buy it. A sales person constantly looks for new prospects for
two reasons. One is to increase sales. The other is
to replace the customers who will be lost over time. Prospects may come as
referrals from existing customers, from suppliers, dealers, etc. Sometimes they
come from analysis of public sources such as directories, newspapers, or public
activities of the firm. Once prospects have been identified, they need to be qualified
or screened to see if they are good prospects.
• It is identifying or finding prospects i.e. prospective or potential customers.
• Methods of prospecting or sales lead generation are: (1) referrals from existing
customers, (2) company sources (website, ads., tradeshow, tele-prospecting), (3)
external sources (suppliers, intermediaries, trade associations), (4) salespersons’
networking, (5) industrial directories, (6) cold canvassing etc.
• Preparation involves preparing for the initial contact with a potential customer.
You will need to collect and study relevant information, such as product
descriptions, prices, and competitor information. You will also need to develop your
initial sales presentation.
• Companies qualify sales leads by contacting them by mail or phone to find their
interests (or needs) and financial capacity.
Pre approach
• once the prospect has been identified and qualified the next step in selling
process is pre approach. During pre approach the sales person is gathering
information to use in the attempt to make the sale. Salesperson
investigates the prospect in greater depth and plans the sales call. Pre
approach is planning the sales presentation to meet the customer’s wants
or to solve the customer’s problem. It involves gathering research about
the prospect. The salesperson must determine where the specific target
market consumer is in the purchasing process. In the approach, the
salesperson meets and greets the buyer and puts the buyer at ease. At this
meeting, the salesperson asks some key questions to get some essential
information before getting the buyer’s attention and launching into the
presentation.
• Information gathering about the prospect.
• Sources of information: the Internet, industrial directories, government
publications, intermediaries, etc.
• Pre-call planning : Setting call objectives, Tentative planning of sales
strategy: which products, features and benefits may meet the customer
needs.
• Sales persons should carefully plan their sales call . Although numerous
reasons exists for planning the sales call , four of the most frequently
mentioned are:
• Helps build a salesperson confidence.
• Develop an atmosphere of goodwill and trust with the buyer.
• Help create an image of professionalism.
• Increase sales because people are prepared.
Approach
• Approach is the first face-to-face interaction you will have with the
potential customer. In the approach stage, salesman make first contact
with their client. Sometimes this is a face-to-face meeting, sometimes it’s
over the phone. There are three common approach methods.
• Premium approach: Presenting your potential client with a gift at
the beginning of your interaction
• Question approach: Asking a question to get the prospect
interested
• Product approach: Giving the prospect a sample or a free trial to
review and evaluate your service
• The idea behind all of these approaches is to get the prospect involved in
the interaction quickly.
Presentation and Demonstration
• Presentation is actively listening to the needs and wants of the
potential customer and demonstrating how your product can meet
those needs and wants.
• Purpose of presentation is to provide knowledge about the
features , advantages and benefits of the product . Telling the
product “story” to the prospect, showing how the product
will solve a problem for the product. The salesperson must
build a case for how the product can serve the needs of the
buyer. A need-satisfaction approach involves carefully listening
to the buyer’s needs and then clearly explaining how the product
can satisfy those needs. Questioning and listening are more
important than talking. Presentations using Microsoft’s PowerPoint
significantly enhance the professionalism of the presentation.
• It includes
• Understanding the buyer’s needs
• Knowing sales presentation methods / strategies
• Developing an effective presentation
• Using demonstration as a tool for selling
Handling Objections
• Theoretically salesperson presentation should show the prospect that the
product is required by him and it should be bought. Very few presentations
end that successfully and very few prospects are that easily convinced
Usually prospect will raise objections. Objections raised by the prospect
takes a great deal of skill and training. Experienced sales person welcome
objections . The salesperson must be able to identify the real reasons for
an objection, respond to the objection, and overcome it. Objections provide
the salesperson with the opportunity to learn more about the customer’s
needs and provide information about the product to satisfy those needs.
The most difficult prospect is one who does not say anything during the
presentation , refuse to buy and gives no reason for the decision. The best
way to deal with objections is to avoid them by building answers to
common questions in to the formal sales presentation.
• Handling objections is an important part of the process. Objections can
be useful because they tell the salesperson what to focus upon in
addressing a prospect's concerns. Successful salespeople learn how to
overcome objections through preparation and having the right information
at hand to address them.
Handling Objections
• Objections take place during presentations / when the order is asked
• Two types of sales objections:
• Psychological / hidden
• Logical (real or practical)
• Methods for handling and overcoming objections:
(i) For Psychological objections: ask questions.
(ii) For logical objections: (a) ask questions, (b) turn an objection into a benefit, (c) deny
objections tactfully, (d) third-party certificate, (e) compensation.
• Perhaps the most underrated of the seven steps of a sales process is
handling objections. This is where you listen to your prospect’s concerns
and address them. It’s also where many unsuccessful salespeople drop
out of the process—44% of salespeople abandoning pursuit after one
rejection, 22% after two rejections, 14% after three, and 12% after four,
even though 80% of sales require at least five follow-ups to convert.
Successfully handling objections and alleviating concerns separates good
salespeople from bad and great from good.
Closing
• Closing involves identifying closing signals from the prospect that indicate it's
decision time. There are different approaches to closing. In the alternative
choice close, you assume the sale and offer the prospect a choice such as, 'Will
this be a cash or credit transaction?' An extra inducement close involves you
offering something extra to get the buyer to agree, such as a discount or a free
product. In the standing room only close, you inform the prospect that time is
of the essence because some impending event, such as a price increase, will
change the terms of the offer.
• Closing refers to asking for the order. After making an effective sales presentation,
the salesperson is ready to ask for the order. Closing is the sum total of all the sales
presentation steps. It is the very reason for which the prospect was contacted.
Many salespeople, perhaps because they lack confidence, feel uneasy, fail to
perceive the positive cues indicating the prospect’s readiness, and fail to take the
step of asking for order.
• Salespersons should learn to interpret meanings of queries, comments, statements,
or prospect’s body language signals. As soon as possible, the salesperson must try
to close the sales. During the presentation, at some point the salesperson may use
a trial close. This involves assuming that the prospect is ready to buy and might ask
which model, size, colour, financial terms, quantity, and delivery etc., the prospect
prefers. The prospect’s response to such questions indicates how close the prospect
really is for making the purchase. The salesperson might also indicate the
advantage of buying now, or offer some incentive to act just then. The salesperson
may also repeat strong points of agreement and take a decisive and confident
approach and ask for an order.
Closing
• In most business-to-business (B2B) buying situations, salespersons need to be
skilled negotiators during the sales presentation. The negotiations may involve
factors concerning price, quality, service, delivery, payment terms etc. The
salesperson should be able to negotiate and work out a final settlement to which
both buyer and seller are willing to agree to its terms and conditions. It is a win-
win situation for both the parties when negotiations are concluded successfully.
• Closing follows once the objection have been handled. It is at this point that the
sales person should ask for order. Unfortunately , many sales persons are to
reluctant to close : in fact one study revealed that 50% of salespeople failed to
directly ask for the order. The major reason the salespeople are so resistant to close
seems to be is fear of rejection . If sales people do not ask for an order they cannot
be turned down and thereby they avoid embarrassment or disappointment .
However all professional purchasing agents expect a sales representatives to
attempt a close. Closing the sale is asking the prospect for an order. The
salesperson must be able to recognize the signals that indicate the prospect is
ready to close. Successful salespeople learn to time their closing remarks on the
basis of signals given by the buyer . These cues can take the form of a gestures (
Customer nods in agreement , picks up the product and examines it closely ) or
they can be verbal comments . When prospect makes comments like “Shipment
must be completed in five months?” ”We like the speed control feature?” ”Do you
have custom model in stock?” Sales person should recognize these comments as
signs of interest and shift to closing techniques.
Follow-up and Service
• Follow-up is building a long-term relationship with your customer for purposes of
repeat sales. For example, you make contact with the customer sometime after the
sale and make sure the product was received and is in good condition. Again, the
idea is not to sell at this stage, but to create a solid relationship for future sales.
• Objectives:
• customer gain short term satisfaction
• referrals are stimulated
• in the long run, repurchase
• prevent cognitive dissonance
• Follow up activities are critical to the success of salespeople and sales
managers . Customers expect after-sale service and it is frequently the job of
sales people to make sure these activities are carried out.
• Post-purchase follow up is very important in building customer confidence and long-
term relationship with the company. The salesperson contacts customer to learn if
there are any problems and answers any questions that the customer does. He
also contacts customers regularly to ascertain that they are happy with their
purchase and offered services. Relationship selling not just focuses on selling the
product but to understand changing customer needs, and solving their problems.
All the company departments must understand the value of customer and provide
appropriate backup to sales people to strengthen this relationship. As long as both
the customer and the seller are successful in achieving their goals, the relationship
continues to prosper.
Sales and Distribution
Management
BUYER SELLER DYAD
• Fundamental to understanding salesmanship is recognition that it involves
buyer-seller interactions. Sociologists use the term “dyad” to describe a
situation in which two people interact. The salesperson and the prospect,
interacting with each other, constitute one example of a “buyer-seller
dyad”. Another is the interaction of a seller using advertising with a
particular prospect in the reading, listening, or viewing audience. In both
advertising and personal selling, the seller seeks to motivate the
prospective buyer to behave favourably toward the seller. Whether or not
the buyer reacts as the seller desires depends upon the nature of the
interaction. The opportunity for interaction is less in the advertising case
than in personal selling. However, advertising and personal selling often
supplement or support each other, and the buyer reacts to their combined
impact.
• Good communication is a key to successful marketing, and it is
particularly important for positive personal selling results. The buyer seller
dyad is flexible and efficient, closes sales, and provides feedback.
•
BUYER SELLER DYAD : CASES
• Franklin Evans researched buyer-seller dyads in the life insurance business. Prospects
who bought insurance knew more about salespersons and their companies, and felt
more positively toward them, than did prospects who did not buy, Furthermore, the
more alike salespersons and their prospects were, the greater was the likelihood that a
sale would result. This was true for physical characteristics (age, height), other objective
factors (income, religion, education), and variables that relate to personality factors
(politics, smoking).
• Evan’s findings have significance for sales management. Whenever possible, sales
personnel should be assigned to prospects whose characteristics are similar to their
own, thus improving the chance of successful dyadic relationships. Pairing salespersons
with customers of similar backgrounds is more easily accomplished in industrial selling,
where there are fewer prospects about whom information is needed, than in consumer-
goods selling, where the number of prospects and customers per salesperson is much
larger.
• Henry Tosi studied dyads of wholesale drug salespeople and retail pharmacists who
made buying decisions. When the buyer perceived the salesperson’s performance to be
similar to his or her concept of “ideal” performance, the number of sources from which
purchases were made was low. Although this did not necessarily result in a larger
percentage of purchases from the salesperson, customer satisfaction with the
salesperson’s behaviour did at least allow the salesperson to get into the store. Tosi
concluded that, in addition to the physical characteristics and personality and objective
factors cited by Evans, the customer’s perception of what that behaviour should be is a
necessary condition for the continuation of dyadic interaction. Another factor influencing
buyer-seller dyadic interactions is the buyer’s initial conditioning with respect to selling.
Salespeople have been maligned and the butt of nasty stories for generations. People
Conceptual model of Salesperson – Buyer Dyadic Relationship
• Figure in the last page of slide is a conceptual model of “salesperson buyer” dyadic
relationships. This model, developed after an extensive literature search, views the
sales process as being influenced by both salesperson and buyer, each a focal
person influenced by personal characteristics and role requirements. Personal
characteristic include personality, values, attitudes, past experiences, and the like.
Role set requirements (for example, formal authority and organizational autonomy)
interact with personal characteristic to shape needs and expectations. Focal
persons’ perceptions of each other’s needs may lead to adjustments of their own
(see the “feedback” mechanism represented by the broken lines in Figure).
• Based on individual needs and expectations, each focal person develops a strategy
aimed to negotiate a favourable exchange. That strategy may embrace persuasion,
ingratiation, communication of facts or offers, friendship, and other elements. If
the strategies are compatible, an exchange takes place. Otherwise, the salesperson
and the buyer may stop interacting, or based on feedback from the unsuccessful
negotiation, either or both may adapt by altering strategy, attempting to adjust
needs and expectations, or modifying role requirements. Role requirements, as well
as needs and expectations, often are determined by forces beyond the focal
person’s control, so one or both may find it impossible to adapt. For instance, to
meet a buyer’s expectations, a salesperson may need to set prices, yet this may be
against company policy and beyond the salesperson’s control. When the particular
round of negotiations is terminated regardless of its outcome, the experience
becomes input into future interactions of the salesperson.
Conceptual model of Salesperson – Buyer Dyadic Relationship :
Figure Explanation
Diversity of Personal-selling Situations
• Diversity of Personal-selling Situations Considerable diversity
exists among personal-selling situations, and it is helpful to
distinguish between service and developmental selling.
Service selling aims to obtain sales from existing customers
whose habits and patterns of thought are already conducive
to such sales. Developmental selling aims to convert
prospects into customers. Developmental selling, in other
words, seeks to create customers out of people who do not
currently view the salesperson’s company favourably, and
who likely are resistant to changing present sources of
supply.
• Different sales positions require difference amounts and kinds
of service and developmental selling. McMurry and Arnold
classify positions on a spectrum ranging from the very simple
to the highly complex. They categorize sales positions into
three mutually exclusive groups each containing subgroups, a
total of nine subgroups in all.
Diversity of Personal-selling Situations
Group A (service Selling)
• Inside Order Taker –”waits on” customers; for example, the sales clerk
behind the neckwear counter in a men’s store. These jobs are known as
technical support staff, sales assistants, telemarketers, and telesales
professionals.
Order taker : A salesperson who only processes the purchase that the
customer has already selected. Retail outlets that are heavily oriented
toward self-service
Order Getter : A salesperson who actively seeks to provide information
to prospects, persuade prospective customers, and close sales. Personal
service oriented stores.
• Delivery Salesperson – mainly engages in delivering the product; for
example, persons delivering milk, bread, or fuel oil.
• Route or Merchandising Salesperson – operates as an order taker but
works in the field – the soap or spice salesperson calling on retailers is
typical.
• Missionary – aims only to build goodwill or to educate the actual or
potential user, and is not expected to take an order; for example, the
distiller’s “missionary” and the pharmaceutical company’s “detail” person.
• Technical Salesperson – emphasizes technical knowledge; for example the
engineering salesperson, who is primarily a consultant to “client”
companies
Diversity of Personal-selling Situations
Group B (developmental Selling)
• Creative Salesperson of Tangibles – for example, salespersons selling vacuum
cleaners, automobiles, siding, and encyclopaedia.
• Creative Salesperson of Intangibles – for example. Salespersons selling insurance,
advertising services, and educational programs.
Group C (Basically developmental selling, but requiring unusual
creativity)
• Political, indirect, or Backdoor Salesperson.
• Salesperson engaged in multiple sales.
The more developmental selling required in a particular sales job and the more
complex it is, the harder it is to make sales. The amount and kind of
developmental selling depends upon the natures of prospects and customers, on
the one hand, and the nature of products, on the other hand. The easiest sales are
self - service sales: customers know their needs, know the products capable of
satisfying these needs, sell themselves, and go through the checkout line. The
most difficult sales require developmental selling and creativity – where sometimes
the sales must be made on something other than the product’s merit, or “multiple”
sales are necessary to get the order, and where continual effort is required to keep
the account.
Recent Trends In Selling
• Relationship selling : Regular contacts over an extended period to
establish a sustained seller-buyer relationship. The success of tomorrow’s
marketers depends on the relationships that they build today Relationships
are built upon trust.
• According to Stephen X. Doyle and George Thomas Roth (“Selling and
Sales Management in Action: The Use of insight & Coaching to improve
Relationship Selling,” Journal of Personal Selling & Sales Management,
Winter 1992, p. 62) there are five characteristics of trust-building in
salespeople.
• Customer Orientation means that the salesperson places as much
emphasis on the customer’s interests as on the salesperson’s interests.
Presentations balance the pros and cons. The salesperson doesn’t
push a product that the buyer doesn’t need.
• Competence includes the salesperson’s ability, knowledge, and
resources to meet customer expectations. The salesperson displays
technical command of products and applications.
• Dependability is the predictability of the salesperson’s actions. His or
her words and actions are consistent with a professional image.
• Candor is the honesty of the spoken word. The proof used to support
claims is credible. Subsequent events prove the salesperson’s
statements to be true.
Recent Trends In Selling
• Likability is rooted in each party’s perception of “having something in
common” with the other. This is an emotional factor, yet a powerful force
in buyer and seller relationships.
• Consultative Selling : Meeting customer needs by listing to them,
understanding — and caring about — their problems, paying attention to
details, and following through after the sale.
• Team Selling : Combination of salespeople with specialists from other
Combination of salespeople with specialists from other functional areas to
promote a product. Team selling is the use of teams made up of people from
different functional areas to service large accounts.. Increasingly, sales
representatives who lack technical expertise work as a team with a technical
expert. In this arrangement, the duties of a sales representative are to make
the preliminary contact with customers, introduce the company’s product, and
close the sale. The technical expert will attend the sales presentation to explain
and answer questions and concerns. In this way, the sales representative is
able to spend more time maintaining and soliciting accounts and less time
acquiring technical knowledge. After the sale, sales representatives may make
frequent follow-up visits to ensure the equipment is functioning properly and
may even help train customers’ employees to operate and maintain new
equipment. Useful in sales situations that call for detailed knowledge of new,
complex, and ever-changing technologies.
Recent Trends In Selling
• Sales Force Automation (SFA): Applications of computer and other
technologies to make the sales function more efficient and competitive
Many salespeople need to go to the prospective customer in order to
demonstrate or illustrate the particulars about the product. Technology
makes salespeople more effective and productive because it allows them
to provide accurate and current information to customers during sales
presentations. Sales automation (also known as customer asset
management and total customer management) implies that
technology can be used to speed up previously inefficient operations.
The Internet and related technology have affected the personal selling
process. Product information on Web sites is available to customers and
prospects. In the past, salespeople delivered this information to the
customer. The Internet frees salespeople to focus on the most important
aspects of their job (such as building long-term relationships with
customers and focusing on new accounts).

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Sales and Distribution Management

  • 2. Sales: Concepts • In daily life, a layman deals with different transaction in terms of selling and purchasing of goods and services. In these transactions the second one persuades the first person. Therefore, selling may be defined as persuading people to satisfy the want of first one. The person, who does this act, is called as the salesman, the result of this action as sales, while these activities of the person, are supervised and controlled by sales-management. • Sales management is the attainment of sales force goals in an effective and efficient manner through planning, training, leading, and controlling organizational resources • Sales management is planning, direction and control of personal selling. This essentially includes recruiting, selecting, equipping, assigning, supervising, compensating and motivating the sales force. • The art of meeting and exceeding the sales goals of an organization through effective planning, controlling, budgeting and leadership refers to sales management.
  • 3. Sales: Concepts • Selling concept proposes that customer will not buy enough of an organization's products unless they are persuaded to do so through selling effort. Where as Marketing concept proposes that to achieve success, the focus should be on organization's ability to create, communicate and deliver a better value proposition through its marketing offer. • Personal selling involves a two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision. With advances in telecommunications, however, personal selling takes place over the telephone, through video teleconferencing and interactive computer links between buyers and sellers.
  • 5. Advertising Vs Promotion Basis for Comparison Advertising Promotion Meaning Advertising is a technique of driving public attention towards a product or service, through paid network. The set of activities that spread a word about the product, brand or service is known as promotion. What is it? Subset Superset Objective Building brand image and boosting sales. Short term sales push Strategy Promotional strategy Marketing strategy Effects Long term Short term Results Generally slow, can be seen over time. Instant Cost involved Highly expensive Cost Effective Best suited for Medium and big enterprises All enterprises
  • 6. Benefits of selling activities : • Benefits to the society: economic growth and maximum employment are the basics for national development. The achievement of both these goals means jobs and incomes for a nation’s labour-force. The number of people, who need jobs, continues to expand, and also some jobs are being eliminated, because of the introduction of computers and abolition of obsolete technology. If jobs are to be made available for all those, who want and expect them, the economy must continuously expand its production of goods and services, which can only be done by adopting sound government-policies and efficient use of people. Equally important here is the fact, that an economy needs individuals, to sell what is produced. Through their persistent efforts to create and stimulate demand, salespeople could be said to be the life and blood of a productive economic- system. The large number of workers, in factories, and offices, would not be needed, if someone were not selling their products. • Benefits to consumers: professional people may not know every fact of a product, but they, at least know its major uses, limitations and benefits; so they can easily serve their customers, quite effectively. For exan1ple, an insurance agent can analyse the hazards and risks that confront a client’s business or home- situation, examine existing coverage and offer helpful advice, in order to eliminate the gaps or overlaps in coverage, in addition to saving the client’s money. The sales-engineers are qualified to analyse technical-problems, which may be confronting a particular organisation and they can give the right recommendations for developing efficient operations. Like-wise, the medical representatives may help the busy doctor, by keeping him abreast of new drugs in the market. The list of sales-people who can offer assistance to customers is practically without end.
  • 7. Benefits of selling activities : • Benefits to business firms; their sales-persons and customers: salespersons are owned by their companies, while customers are the end- users of the company’s product(s) and/or services, all these people, in the chain of marketing, stand to benefit by sales-activities. A business firm can be profitable only if its revenues exceed its costs. The prime responsibility of the salespersons is to sell the goods, produced by the organisation, at a profit. The creative sales-person, tries to penetrate his territory, and adopts suitable means and techniques of profitable-selling of goods and/or services. Business firms, derive various other benefits from, non-selling activities of sales-persons. The salesperson, in the field, is an ideal person, to keep the company abreast, or ahead of competition. He, thus, becomes an important source of field-intelligence by providing important (and sometimes very crucial) information, about the nature of 6 competitive- activities, and also about the changing needs of customers. The sales-force has the additional responsibility of serving the needs of customers that buy the film’s product(s). Most firms cannot survive, only on the basis of one- time sales; repeat-sales are necessary. This is possible only if the customers are served in a professional manner. A customer-oriented sales-person has to perform such activities as: providing customers with ‘product-information’ and ‘demonstration(s); training customers-employees, in product-use; providing customers with sales-advice; and assisting customers in maintaining ‘inventories’.
  • 8. Skills of a Sales Executive • Sales management is an art where the sales executive or the salesperson helps the organization or individual to achieve its objective or buy a product with their skills. • The following are some skills that a sales executive needs to possess: • Conceptual Skills Conceptual skill includes the formulation of ideas. Managers understand abstract relationships, improve ideas, and solve issues creatively. The sales executive should be well versed with the concept of the product he/she is selling. • People Skills People skills involve the ability to interact effectively with people in a friendly way, especially in business. The term ‘people skills’ involves both psychological skills and social skills, but they are less inclusive than life skills. Every person has a different mind-set, so a sales executive should know how to present the product depending on the customer’s mind-set.
  • 9. Skills of a Sales Executive • Technical Skills • Technical skills are the abilities captured through learning and practice. They are often job or task specific. In simple words, a specific skill set or proficiency is required to perform a specific job or task. As a part of conceptual skills, a sales executive should also have a good grasp on the technical skills of the product. • Decision Skills • Decision skills are the most important because to tackle the questions from consumers, sales executive should always have the knowledge of competitors’ products and take a wise decision. • Monitoring Performance • Sales executives should monitor the performance of the employees and report to higher management to improve the performance and fill the loop holes. Thus, conceptual skills deal with ideas, technical skills deal with things, people skills concern individuals, technical skills are concerned with product-specific skills, and decision skills relate to decision-making.
  • 11. • Selling ideas or products to known people involves different dynamics than selling to strangers does. • A sales person needs to interact convincingly and effortlessly with strangers • However, a sales person needs to interact convincingly and effortlessly with strangers and get them to believe in a product or a service and finally persuade them to purchase the same. • Selling involves  People  Package of emotions and feelings  Selling involves people and with them comes a package of emotions and feelings that cannot be overlooked. Managing those feelings and emotions is certainly an art.
  • 12. Qualities of Salesmanship A successful sales person needs  Domain knowledge  Proficiency in skills  Right attitude • To be a successful sales person, one needs to have adequate knowledge of the domain, be proficient in the skills required and have the right attitude. All the three are equally important though we tend to underestimate the importance of having the right attitude to be successful.
  • 13. 10 Traits of Effective Salespeople 1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2. A sense of urgency: wanting to get it done now. 3. Ego drive: a combination of competitiveness and self esteem. 4. Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently. 5. Willingness to take risk: willing to innovate and take a chance. 6. Sociable : outgoing, friendly, talkative, and interested in others. 7. Abstract reasoning: ability to understand concepts and ideas. 8. Skepticism: a slight lack of trust and suspicion of others. 9. Creativity: the ability to think differently. 10. Empathy: the ability to place oneself in someone else’s shoes
  • 14. 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.
  • 15. Roles and Responsibilities of a Sales Manager o 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. o 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. o 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. o 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.
  • 16. Roles and Responsibilities of a Sales Manager o 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 through out the week or month. The performers must be encouraged while the non performers must be dealt with utmost patience and care. o 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. o A sales manager should set an example for his team members. He should be a source of inspiration for his team members. o 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. o As a sales manager, one should maintain necessary data and records for future reference.
  • 17. Domain Knowledge needed by the sales person Knowing the product • Knowledge of products is extremely important for any sales person. They need to know everything about the product or service they are selling - its features, advantages and the specific benefits that the customer is likely to get from the product or service. Knowing the process • Successful sales people understand the sales process. They not only understand the sales process but also know how to apply the same in the context of their product  Understanding customers’ objections • Sales people face many road blocks in terms of objections by clients. Having prior knowledge about them will help them to prepare convincing explanations providing missing information. Removing such misunderstandings will take them one stop closer to clinch the deal.
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  • 19. ATTITUDES REQUIRED FOR SALESMANSHIP  Confidence • Confidence helps them to take rejections in their stride and bounce back with enthusiasm. • The first and perhaps the most important attitude that a sales person needs to possess is confidence. Sales people are confident about their abilities and about the product or services that they sell. Sales people are bound to face rejections during the course of their work and it is their confidence that helps them to take rejections in their stride and bounce back with enthusiasm. Persistent and determinant • The determined person refuses to accept defeat and goes on to attain what he wants. • Persistence and determination need to be the second nature of a sales person. There are innumerable obstacles that come along and it is the determined person who refuses to accept defeat and goes on to attain what he or she wants.
  • 20. ATTITUDES REQUIRED FOR SALESMANSHIP Maintain a long-term relationship with customers • Need to view each sale as a stepping stone towards earning the goodwill of their customers. • Successful sales people value the relationship with customers and maintain a long- term relationship with them through regular follow-ups. They understand the bigger picture and view each sale as a stepping stone towards earning the goodwill of their customers who could provide valuable referrals to future prospects. Having a friendly personality • Sales people need to have a personality that is amicable so that people are comfortable talking to them. They need to ask the right questions to understand the situation of their customers and their buying needs. Accountability • Accountable for themselves, their customers and their organization • Another important trait of successful sales people is that they are accountable for themselves, their customers and their organization. They are more forthcoming in
  • 22. Sales Process • Selling is a process involving the interaction between a potential buyer and a person hired by a company to sell its products to potential buyers. Sales is a recognized business profession, and ranges from a shoe salesman to an investment banker who manages company stock with billions of dollars at stake. • Certainly no magical formula exists for making a sales. Many different factors may influence a purchase decision. Yet most sales trainers believe logical , sequential steps do exists that , if followed can greatly improve the chance of making a sale. This is called a sales process. This sequential series of actions by sales person leads to customer taking a desired action and ends with a follow up to ensure purchase satisfaction. • There is a certain way in which sales person needs to attend his function. It involves few steps. A sales person need not follow all steps .Depending on his nature of job he goes about the personal selling process. • Sales Process : Professional selling involves a series of seven distinct steps. They are : • Prospecting • Pre – approach • Approach • Presentation and Demonstration • Handling Objections • Closing • Follow-up and Service
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  • 24. Prospecting • Prospecting is finding and qualifying potential customers. Qualifying is the process of determining whether a potential customer has a need or want that the company can fulfill, and whether the potential client can afford the product. • A prospect is a person or business that needs the product a salesperson is selling and has the ability to buy it. A sales person constantly looks for new prospects for two reasons. One is to increase sales. The other is to replace the customers who will be lost over time. Prospects may come as referrals from existing customers, from suppliers, dealers, etc. Sometimes they come from analysis of public sources such as directories, newspapers, or public activities of the firm. Once prospects have been identified, they need to be qualified or screened to see if they are good prospects. • It is identifying or finding prospects i.e. prospective or potential customers. • Methods of prospecting or sales lead generation are: (1) referrals from existing customers, (2) company sources (website, ads., tradeshow, tele-prospecting), (3) external sources (suppliers, intermediaries, trade associations), (4) salespersons’ networking, (5) industrial directories, (6) cold canvassing etc. • Preparation involves preparing for the initial contact with a potential customer. You will need to collect and study relevant information, such as product descriptions, prices, and competitor information. You will also need to develop your initial sales presentation. • Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity.
  • 25. Pre approach • once the prospect has been identified and qualified the next step in selling process is pre approach. During pre approach the sales person is gathering information to use in the attempt to make the sale. Salesperson investigates the prospect in greater depth and plans the sales call. Pre approach is planning the sales presentation to meet the customer’s wants or to solve the customer’s problem. It involves gathering research about the prospect. The salesperson must determine where the specific target market consumer is in the purchasing process. In the approach, the salesperson meets and greets the buyer and puts the buyer at ease. At this meeting, the salesperson asks some key questions to get some essential information before getting the buyer’s attention and launching into the presentation. • Information gathering about the prospect. • Sources of information: the Internet, industrial directories, government publications, intermediaries, etc. • Pre-call planning : Setting call objectives, Tentative planning of sales strategy: which products, features and benefits may meet the customer needs. • Sales persons should carefully plan their sales call . Although numerous reasons exists for planning the sales call , four of the most frequently mentioned are: • Helps build a salesperson confidence. • Develop an atmosphere of goodwill and trust with the buyer. • Help create an image of professionalism. • Increase sales because people are prepared.
  • 26. Approach • Approach is the first face-to-face interaction you will have with the potential customer. In the approach stage, salesman make first contact with their client. Sometimes this is a face-to-face meeting, sometimes it’s over the phone. There are three common approach methods. • Premium approach: Presenting your potential client with a gift at the beginning of your interaction • Question approach: Asking a question to get the prospect interested • Product approach: Giving the prospect a sample or a free trial to review and evaluate your service • The idea behind all of these approaches is to get the prospect involved in the interaction quickly.
  • 27. Presentation and Demonstration • Presentation is actively listening to the needs and wants of the potential customer and demonstrating how your product can meet those needs and wants. • Purpose of presentation is to provide knowledge about the features , advantages and benefits of the product . Telling the product “story” to the prospect, showing how the product will solve a problem for the product. The salesperson must build a case for how the product can serve the needs of the buyer. A need-satisfaction approach involves carefully listening to the buyer’s needs and then clearly explaining how the product can satisfy those needs. Questioning and listening are more important than talking. Presentations using Microsoft’s PowerPoint significantly enhance the professionalism of the presentation. • It includes • Understanding the buyer’s needs • Knowing sales presentation methods / strategies • Developing an effective presentation • Using demonstration as a tool for selling
  • 28. Handling Objections • Theoretically salesperson presentation should show the prospect that the product is required by him and it should be bought. Very few presentations end that successfully and very few prospects are that easily convinced Usually prospect will raise objections. Objections raised by the prospect takes a great deal of skill and training. Experienced sales person welcome objections . The salesperson must be able to identify the real reasons for an objection, respond to the objection, and overcome it. Objections provide the salesperson with the opportunity to learn more about the customer’s needs and provide information about the product to satisfy those needs. The most difficult prospect is one who does not say anything during the presentation , refuse to buy and gives no reason for the decision. The best way to deal with objections is to avoid them by building answers to common questions in to the formal sales presentation. • Handling objections is an important part of the process. Objections can be useful because they tell the salesperson what to focus upon in addressing a prospect's concerns. Successful salespeople learn how to overcome objections through preparation and having the right information at hand to address them.
  • 29. Handling Objections • Objections take place during presentations / when the order is asked • Two types of sales objections: • Psychological / hidden • Logical (real or practical) • Methods for handling and overcoming objections: (i) For Psychological objections: ask questions. (ii) For logical objections: (a) ask questions, (b) turn an objection into a benefit, (c) deny objections tactfully, (d) third-party certificate, (e) compensation. • Perhaps the most underrated of the seven steps of a sales process is handling objections. This is where you listen to your prospect’s concerns and address them. It’s also where many unsuccessful salespeople drop out of the process—44% of salespeople abandoning pursuit after one rejection, 22% after two rejections, 14% after three, and 12% after four, even though 80% of sales require at least five follow-ups to convert. Successfully handling objections and alleviating concerns separates good salespeople from bad and great from good.
  • 30. Closing • Closing involves identifying closing signals from the prospect that indicate it's decision time. There are different approaches to closing. In the alternative choice close, you assume the sale and offer the prospect a choice such as, 'Will this be a cash or credit transaction?' An extra inducement close involves you offering something extra to get the buyer to agree, such as a discount or a free product. In the standing room only close, you inform the prospect that time is of the essence because some impending event, such as a price increase, will change the terms of the offer. • Closing refers to asking for the order. After making an effective sales presentation, the salesperson is ready to ask for the order. Closing is the sum total of all the sales presentation steps. It is the very reason for which the prospect was contacted. Many salespeople, perhaps because they lack confidence, feel uneasy, fail to perceive the positive cues indicating the prospect’s readiness, and fail to take the step of asking for order. • Salespersons should learn to interpret meanings of queries, comments, statements, or prospect’s body language signals. As soon as possible, the salesperson must try to close the sales. During the presentation, at some point the salesperson may use a trial close. This involves assuming that the prospect is ready to buy and might ask which model, size, colour, financial terms, quantity, and delivery etc., the prospect prefers. The prospect’s response to such questions indicates how close the prospect really is for making the purchase. The salesperson might also indicate the advantage of buying now, or offer some incentive to act just then. The salesperson may also repeat strong points of agreement and take a decisive and confident approach and ask for an order.
  • 31. Closing • In most business-to-business (B2B) buying situations, salespersons need to be skilled negotiators during the sales presentation. The negotiations may involve factors concerning price, quality, service, delivery, payment terms etc. The salesperson should be able to negotiate and work out a final settlement to which both buyer and seller are willing to agree to its terms and conditions. It is a win- win situation for both the parties when negotiations are concluded successfully. • Closing follows once the objection have been handled. It is at this point that the sales person should ask for order. Unfortunately , many sales persons are to reluctant to close : in fact one study revealed that 50% of salespeople failed to directly ask for the order. The major reason the salespeople are so resistant to close seems to be is fear of rejection . If sales people do not ask for an order they cannot be turned down and thereby they avoid embarrassment or disappointment . However all professional purchasing agents expect a sales representatives to attempt a close. Closing the sale is asking the prospect for an order. The salesperson must be able to recognize the signals that indicate the prospect is ready to close. Successful salespeople learn to time their closing remarks on the basis of signals given by the buyer . These cues can take the form of a gestures ( Customer nods in agreement , picks up the product and examines it closely ) or they can be verbal comments . When prospect makes comments like “Shipment must be completed in five months?” ”We like the speed control feature?” ”Do you have custom model in stock?” Sales person should recognize these comments as signs of interest and shift to closing techniques.
  • 32. Follow-up and Service • Follow-up is building a long-term relationship with your customer for purposes of repeat sales. For example, you make contact with the customer sometime after the sale and make sure the product was received and is in good condition. Again, the idea is not to sell at this stage, but to create a solid relationship for future sales. • Objectives: • customer gain short term satisfaction • referrals are stimulated • in the long run, repurchase • prevent cognitive dissonance • Follow up activities are critical to the success of salespeople and sales managers . Customers expect after-sale service and it is frequently the job of sales people to make sure these activities are carried out. • Post-purchase follow up is very important in building customer confidence and long- term relationship with the company. The salesperson contacts customer to learn if there are any problems and answers any questions that the customer does. He also contacts customers regularly to ascertain that they are happy with their purchase and offered services. Relationship selling not just focuses on selling the product but to understand changing customer needs, and solving their problems. All the company departments must understand the value of customer and provide appropriate backup to sales people to strengthen this relationship. As long as both the customer and the seller are successful in achieving their goals, the relationship continues to prosper.
  • 34. BUYER SELLER DYAD • Fundamental to understanding salesmanship is recognition that it involves buyer-seller interactions. Sociologists use the term “dyad” to describe a situation in which two people interact. The salesperson and the prospect, interacting with each other, constitute one example of a “buyer-seller dyad”. Another is the interaction of a seller using advertising with a particular prospect in the reading, listening, or viewing audience. In both advertising and personal selling, the seller seeks to motivate the prospective buyer to behave favourably toward the seller. Whether or not the buyer reacts as the seller desires depends upon the nature of the interaction. The opportunity for interaction is less in the advertising case than in personal selling. However, advertising and personal selling often supplement or support each other, and the buyer reacts to their combined impact. • Good communication is a key to successful marketing, and it is particularly important for positive personal selling results. The buyer seller dyad is flexible and efficient, closes sales, and provides feedback. •
  • 35. BUYER SELLER DYAD : CASES • Franklin Evans researched buyer-seller dyads in the life insurance business. Prospects who bought insurance knew more about salespersons and their companies, and felt more positively toward them, than did prospects who did not buy, Furthermore, the more alike salespersons and their prospects were, the greater was the likelihood that a sale would result. This was true for physical characteristics (age, height), other objective factors (income, religion, education), and variables that relate to personality factors (politics, smoking). • Evan’s findings have significance for sales management. Whenever possible, sales personnel should be assigned to prospects whose characteristics are similar to their own, thus improving the chance of successful dyadic relationships. Pairing salespersons with customers of similar backgrounds is more easily accomplished in industrial selling, where there are fewer prospects about whom information is needed, than in consumer- goods selling, where the number of prospects and customers per salesperson is much larger. • Henry Tosi studied dyads of wholesale drug salespeople and retail pharmacists who made buying decisions. When the buyer perceived the salesperson’s performance to be similar to his or her concept of “ideal” performance, the number of sources from which purchases were made was low. Although this did not necessarily result in a larger percentage of purchases from the salesperson, customer satisfaction with the salesperson’s behaviour did at least allow the salesperson to get into the store. Tosi concluded that, in addition to the physical characteristics and personality and objective factors cited by Evans, the customer’s perception of what that behaviour should be is a necessary condition for the continuation of dyadic interaction. Another factor influencing buyer-seller dyadic interactions is the buyer’s initial conditioning with respect to selling. Salespeople have been maligned and the butt of nasty stories for generations. People
  • 36. Conceptual model of Salesperson – Buyer Dyadic Relationship
  • 37. • Figure in the last page of slide is a conceptual model of “salesperson buyer” dyadic relationships. This model, developed after an extensive literature search, views the sales process as being influenced by both salesperson and buyer, each a focal person influenced by personal characteristics and role requirements. Personal characteristic include personality, values, attitudes, past experiences, and the like. Role set requirements (for example, formal authority and organizational autonomy) interact with personal characteristic to shape needs and expectations. Focal persons’ perceptions of each other’s needs may lead to adjustments of their own (see the “feedback” mechanism represented by the broken lines in Figure). • Based on individual needs and expectations, each focal person develops a strategy aimed to negotiate a favourable exchange. That strategy may embrace persuasion, ingratiation, communication of facts or offers, friendship, and other elements. If the strategies are compatible, an exchange takes place. Otherwise, the salesperson and the buyer may stop interacting, or based on feedback from the unsuccessful negotiation, either or both may adapt by altering strategy, attempting to adjust needs and expectations, or modifying role requirements. Role requirements, as well as needs and expectations, often are determined by forces beyond the focal person’s control, so one or both may find it impossible to adapt. For instance, to meet a buyer’s expectations, a salesperson may need to set prices, yet this may be against company policy and beyond the salesperson’s control. When the particular round of negotiations is terminated regardless of its outcome, the experience becomes input into future interactions of the salesperson. Conceptual model of Salesperson – Buyer Dyadic Relationship : Figure Explanation
  • 38. Diversity of Personal-selling Situations • Diversity of Personal-selling Situations Considerable diversity exists among personal-selling situations, and it is helpful to distinguish between service and developmental selling. Service selling aims to obtain sales from existing customers whose habits and patterns of thought are already conducive to such sales. Developmental selling aims to convert prospects into customers. Developmental selling, in other words, seeks to create customers out of people who do not currently view the salesperson’s company favourably, and who likely are resistant to changing present sources of supply. • Different sales positions require difference amounts and kinds of service and developmental selling. McMurry and Arnold classify positions on a spectrum ranging from the very simple to the highly complex. They categorize sales positions into three mutually exclusive groups each containing subgroups, a total of nine subgroups in all.
  • 39. Diversity of Personal-selling Situations Group A (service Selling) • Inside Order Taker –”waits on” customers; for example, the sales clerk behind the neckwear counter in a men’s store. These jobs are known as technical support staff, sales assistants, telemarketers, and telesales professionals. Order taker : A salesperson who only processes the purchase that the customer has already selected. Retail outlets that are heavily oriented toward self-service Order Getter : A salesperson who actively seeks to provide information to prospects, persuade prospective customers, and close sales. Personal service oriented stores. • Delivery Salesperson – mainly engages in delivering the product; for example, persons delivering milk, bread, or fuel oil. • Route or Merchandising Salesperson – operates as an order taker but works in the field – the soap or spice salesperson calling on retailers is typical. • Missionary – aims only to build goodwill or to educate the actual or potential user, and is not expected to take an order; for example, the distiller’s “missionary” and the pharmaceutical company’s “detail” person. • Technical Salesperson – emphasizes technical knowledge; for example the engineering salesperson, who is primarily a consultant to “client” companies
  • 40. Diversity of Personal-selling Situations Group B (developmental Selling) • Creative Salesperson of Tangibles – for example, salespersons selling vacuum cleaners, automobiles, siding, and encyclopaedia. • Creative Salesperson of Intangibles – for example. Salespersons selling insurance, advertising services, and educational programs. Group C (Basically developmental selling, but requiring unusual creativity) • Political, indirect, or Backdoor Salesperson. • Salesperson engaged in multiple sales. The more developmental selling required in a particular sales job and the more complex it is, the harder it is to make sales. The amount and kind of developmental selling depends upon the natures of prospects and customers, on the one hand, and the nature of products, on the other hand. The easiest sales are self - service sales: customers know their needs, know the products capable of satisfying these needs, sell themselves, and go through the checkout line. The most difficult sales require developmental selling and creativity – where sometimes the sales must be made on something other than the product’s merit, or “multiple” sales are necessary to get the order, and where continual effort is required to keep the account.
  • 41. Recent Trends In Selling • Relationship selling : Regular contacts over an extended period to establish a sustained seller-buyer relationship. The success of tomorrow’s marketers depends on the relationships that they build today Relationships are built upon trust. • According to Stephen X. Doyle and George Thomas Roth (“Selling and Sales Management in Action: The Use of insight & Coaching to improve Relationship Selling,” Journal of Personal Selling & Sales Management, Winter 1992, p. 62) there are five characteristics of trust-building in salespeople. • Customer Orientation means that the salesperson places as much emphasis on the customer’s interests as on the salesperson’s interests. Presentations balance the pros and cons. The salesperson doesn’t push a product that the buyer doesn’t need. • Competence includes the salesperson’s ability, knowledge, and resources to meet customer expectations. The salesperson displays technical command of products and applications. • Dependability is the predictability of the salesperson’s actions. His or her words and actions are consistent with a professional image. • Candor is the honesty of the spoken word. The proof used to support claims is credible. Subsequent events prove the salesperson’s statements to be true.
  • 42. Recent Trends In Selling • Likability is rooted in each party’s perception of “having something in common” with the other. This is an emotional factor, yet a powerful force in buyer and seller relationships. • Consultative Selling : Meeting customer needs by listing to them, understanding — and caring about — their problems, paying attention to details, and following through after the sale. • Team Selling : Combination of salespeople with specialists from other Combination of salespeople with specialists from other functional areas to promote a product. Team selling is the use of teams made up of people from different functional areas to service large accounts.. Increasingly, sales representatives who lack technical expertise work as a team with a technical expert. In this arrangement, the duties of a sales representative are to make the preliminary contact with customers, introduce the company’s product, and close the sale. The technical expert will attend the sales presentation to explain and answer questions and concerns. In this way, the sales representative is able to spend more time maintaining and soliciting accounts and less time acquiring technical knowledge. After the sale, sales representatives may make frequent follow-up visits to ensure the equipment is functioning properly and may even help train customers’ employees to operate and maintain new equipment. Useful in sales situations that call for detailed knowledge of new, complex, and ever-changing technologies.
  • 43. Recent Trends In Selling • Sales Force Automation (SFA): Applications of computer and other technologies to make the sales function more efficient and competitive Many salespeople need to go to the prospective customer in order to demonstrate or illustrate the particulars about the product. Technology makes salespeople more effective and productive because it allows them to provide accurate and current information to customers during sales presentations. Sales automation (also known as customer asset management and total customer management) implies that technology can be used to speed up previously inefficient operations. The Internet and related technology have affected the personal selling process. Product information on Web sites is available to customers and prospects. In the past, salespeople delivered this information to the customer. The Internet frees salespeople to focus on the most important aspects of their job (such as building long-term relationships with customers and focusing on new accounts).