By-
Dr. Govind Kumar
Assistant Professor
Faculty of Commerce & Management,
Rama University

 Importance of personal sales:
• Direct link to the customer
• Most customers see the sales person as the
company
• Designing the sales force internationally is one
of the most important functions of the marketing
department

Sales Management?
Sales management is the coordination of people and
resources to effectively produce the desired goal.
These long term goals include increasing sales
volume, contributing to the sales pipeline, and
continuing to focus on growing revenue. To achieve
these objectives, sales managers have vast
responsibilities including, but not limited to:
demand/sales forecasting, establishing
quotas/objectives, budgeting, organization,
recruitment, training, compensation, and sales
performance evaluation.

The Important Tasks in
Sales Management
A. Sales Planning
B. Recruitment of Sales Staff
C. Sales Reporting

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.

Salesmanship
Salesmanship is just persona selling – negotiating,
emphasizing inducing and making the prospective buyer to
take a decision in favor of going for the product being
offered to him.
In the words of W.G. Carter, “salesmanship is an attempt
to induce people to buy goods.”
Today salesmanship is only an effort to induce the
people to buy. Instead, to put in the words of
Whitehead, it is “the an of presenting art offering that
the prospect appreciates the need for it and that a
mutually satisfactorily sale follows.” The mutual
satisfaction is greatly emphasized in an salesmanship.

7 Key Responsibilities
of Sales Managers
1. Selecting Targets
Salespeople are capable and willing to talk to
anyone, so you have to steer them to the right
people. Are they talking to the decision makers
who have authority and budget for expenditures?
With your sales leadership, define and use a
filter for the most likely candidates for
successful deals.

2. Defining Priorities
Help your sales force prioritize what
opportunities they pursue and how much time
and effort they spend on them. Help them
understand which leads are key opportunities —
real and relevant to the current
circumstances.

3. Defining Time Guidelines
Set and enforce guidelines for how sellers spend
their time. Meandering aimlessly through a
territory or conducting leisurely “check in”
sweeps is unproductive. Salespeople should be
directed to take a strategic and surgical
approach to identifying and pursuing targets.

4. Monitoring Compliance
You are responsible for providing data that allows
you and other leaders in the organization to
monitor what is happening in the marketplace
regarding customers, competitors and surrounding
regulations and technology shifts. Consistency in
the execution of a sales process gives data to the
organization that clarifies what works and what
does not. We’re not talking about activity
management and monitoring for its own sake. Your
focus should be working toward compliance in the
sales process to protect the integrity of the data
captured so everyone has relevant data for good
decision making.

5. Navigating the Terrain (Territory)
Your sales process is the basis of action,
but it’s only the start — a two-dimensional
representation of a sequential process. The
third dimension is using data (including
variant data) from the sales process to
assess the marketplace. Sometimes you’ll
need a covert op — a team of select
salespeople — to find out new information.
Then it’s up to you to analyze what they
bring back and use that information to up
the game.

6. Securing Resources
There will be occasions when competing priorities
(including those of other departments) derail
progress on landing business. It’s your
responsibility to make sure significant
opportunities are visible to leadership. You need
to take the actions that secure these deals from
impeding parties inside your organization, and see
that your people have the resources they need for
a successful sale.

7. Knowing When (and When NOT) to
Expedite
It’s your job to expedite—and to know
when not to expedite. Like the “boy who cried
wolf,” people may become jaded to repetitive
intervention on your part. ” For the sake of
the organization, your reputation (and that of
your team), you’ll need to decide when an
opportunity needs to be expedited, and when
everyone should simply follow the normal sales
process.

Qualities of a successful Salesman
• To select personnel for international marketing
positions effectively, management must choose
individuals who have the following traits:
• To select personnel for international marketing
positions effectively, management must choose
individuals who have the following traits:
1. Maturity1. Maturity
2. Emotional Stability2. Emotional Stability
3. Breadth of Knowledge3. Breadth of Knowledge
4. Flexibility4. Flexibility
5. Cultural Empathy5. Cultural Empathy
6. Energetic &6. Energetic &
7. Enjoy Travel7. Enjoy Travel

5 Tips For Setting
Sales Goals
1. Put Your Sales Goals in Writing
2. Arrange for Sales Training
4. Conduct Efficient Recruiting
3. Control Spending
5. Ensure Consistent Follow-Through

SPIN Selling, a great model, was the
brainchild of Neil Rackham who authored
a book of the same name in 1988.
SPIN Selling proposes there are four types of questions,
thus SPIN stands for :
SPIN Model
1. Situation ( questions )
2. Problem ( questions )
3. Implication ( questions )
4. Need-payoff ( questions )

1. Situation Questions deal with the facts about the buyers
existing situation.
2. Problem Questions ask about the buyer's pain and focus
the buyer on this pain while clarifying the problem, before
asking implication questions. . These give Implied Needs.
3. Implication Questions discuss the effects of the
problem, before talking about solutions, and develop the
seriousness of the problem to increase the buyer's
motivation to change.
4. Need-Payoff Questions get the buyer to tell you about
their Explicit Needs and the benefits your solutions offers,
rather than forcing you to explain the benefits to the
buyer. Getting the buyer to state the benefits has greater
impact while sounding a lot less pushy. What these
questions do is probe for explicit needs.

SPIN Model of Selling

Transactional Selling
A term used to describe a sales strategy that involves
focusing on achieving quick sales without a significant
attempt to form a long term customer relationship. A
transactional selling strategy tends to be more common for a
business that offers a fairly generic product or service with
the objective of profiting by making a high volume of sales.

Step1.Prospecting and QualifyingStep1.Prospecting and Qualifying
Step2. Pre-approachStep2. Pre-approach
Step3. ApproachStep3. Approach
Step4.Presentation/DemonstrationStep4.Presentation/Demonstration
Identifying and Screening For
Qualified Potential Customers.
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Knowing How to Meet the Buyer
to Get the Relationship Off to
a Good Start.
Telling the Product “Story” to
the Buyer, and Showing the
Product Benefits.
Steps in the Personal Selling ProcessSteps in the Personal Selling Process

Step 5. Handling ObjectionsStep 5. Handling Objections
Step 6. ClosingStep 6. Closing
Step 7. Follow-UpStep 7. Follow-Up
Seeking Out, Clarifying,
and Overcoming Customer
Objections to Buying.
Asking the Customer for the
Order.
Following Up After the Sale
to Ensure Customer
Satisfaction and Repeat
Business.
Steps in the Selling ProcessSteps in the Selling Process

Market Demand Analysis
Companies use market demand analysis to understand how
much consumer demand exists for a product or service.
This analysis helps management determine if they can
successfully enter a market and generate enough profits
to advance their business operations. While several
methods of demand analysis may be used, they usually
contain a review of the basic components of an economic
market which are:
Market identification
Business cycle
Product niche
Growth potential
Competition

Market Identification
The first step of market analysis is to define
and identify the specific market to target with
new products or services. Companies will use
market surveys or consumer feedback to
determine their satisfaction with current
products and services. Comments indicating
dissatisfaction will lead businesses to develop
new products or services to meet this consumer
demand. While companies will usually identify
markets close to their current product line,
new industries may be tested for business
expansion possibilities.

Business Cycle
Once a potential market is identified, companies
will assess what stage of the business cycle the
market is in. Three stages exist in the business
cycle: emerging, plateau (area of stability) and
declining. Markets in the emerging stage
indicate higher consumer demand and low supply
of current products or services. The plateau
stage is the break-even level of the market,
where the supply of goods meets current market
demand. Declining stages indicate lagging
consumer demand for the goods or services
supplied by businesses.

Product Niche
Once markets and business cycles are reviewed,
companies will develop a product that meets a
specific niche in the market. Products must be
differentiated from others in the market so they
meet a specific need of consumer demand, creating
higher demand for their product or service. Many
companies will conduct tests in sample markets to
determine which of their potential product styles
is most preferred by consumers. Companies will
also develop their goods so that competitors
cannot easily duplicate their product.

Growth Potential
While every market has an initial level of
consumer demand, specialized products or goods
can create a sense of usefulness, which will
increase demand. Examples of specialized products
are iPods or iPhones, which entered the personal
electronics market and increased demand through
their perceived usefulness by consumers. This
type of demand quickly increases the demand for
current markets, allowing companies to increase
profits through new consumer demand.

Competition
An important factor of market analysis is
determining the number of competitors and their
current market share. Markets in the emerging
stage of the business cycle tend to have fewer
competitors, meaning a higher profit margin may be
earned by companies. Once a market becomes
saturated with competing companies and products,
fewer profits are achieved and companies will
begin to lose money. As markets enter the
declining business cycle, companies will conduct a
new market analysis to find more profitable
markets.

How to Organize a Sales Force

Sales Forecasting
Forecasting Is One Of The Important Aspects Of
Administration. The Comer-stone Of Successful
Marketing Planning Is The Measurement And
Forecasting To Market Demand.
According To American Marketing Association, “Sales
Forecast Is An Estimate Of Sales, In Monetary Or
Physical Units, For A Specified Future Period Under
A Proposed Business Plan Or Programme And Under An
Assumed Set Of Economic And Other Forces Outside
The Unit For Which The Forecast Is Made.”

Factors Influencing A
Sales Forecasting
I. General Economic Condition
II. Consumers
III.Industrial Behaviours
IV. Changes Within Firm
V. Period

Importance of Sales Forecasting
a) Supply and demand for the products can easily
be adjusted, by overcoming temporary demand, in
the light of the anticipated estimate; and
regular supply is facilitated.
b) A good inventory control is advantageously
benefited by avoiding the weakness of under
stocking and overstocking.
c) Allocation and reallocation of sales
territories are facilitated.
d) It is a forward planner as all other
requirements of raw materials, labour, plant
layout, financial needs, warehousing, transport
facility etc., depend in accordance with the
sales volume expected in advance.

Sales Forecasting:
Methods of Sales Forecasting
The following are the various methods of sales
forecasting:
1. Jury of Executive Opinion
2. Sales Force Opinion
3. Test Marketing Result
4. Consumer’s Buying Plan
5. Market Factor Analysis
6. Expert Opinion
7. Past Sales

Jury of Executive Opinion
One or more of the executives, who are experienced
and have good knowledge of the market factors make
out the expected sales. The executives are
responsible while forecasting sales figures through
estimates and experiences.
Sales force Opinion
Under this method, salesmen, or intermediaries are
required to make out an estimate sales in their
respective territories for a given period. Salesmen
are in close touch with the consumers and possess
good knowledge about the future demand trend.

Test Marketing Result
Under the market test method, products are
introduced in a limited geographical area and
the result is studied. Taking this result as a
base, sales forecast is made. This test is
conducted as a sample on pre-test basis in order
to understand the market response.
Consumer’s Buying Plan
Consumers, as a source of information, are
approached to know their likely purchases during
the period under a given set of conditions. This
method is suitable when there are few customers.
This type of forecasting is generally adopted
for industrial goods.

Market Factor Analysis
A company’s sales may depend on the behaviour of
certain market factors. The principal factors
which affect the sales may be determined. By
studying the behaviours of the factors,
forecasting should be made. Correlation is the
statistical analysis which analyses the degree
of extent to which two variables fluctuate with
reference to each other.
For instance, you publish a text book on “Banking”,
affiliated to different universities. The permitted
intake capacity of each and the medium through which
the students are taught are known. Is it a compulsory
or an optional subject? By getting all these details
and also by considering the sales activities of
promotional work, you may be able to declare the
probable copies to be printed.

Expert Opinion
Many types of consultancy agencies have entered
into the field of sales. The consultancy agency
has specialized experts in the respective field.
This includes dealers, trade associations etc.
They may conduct market researches and possess
ready-made statistical data. Firms may make use
of the opinions of such experts.
Past Sales
Personal judgement of sales forecasting can be
beneficially supplemented by the use of
statistical and quantitative methods. Past sales
are a good basis and on this basis future sales
can be formulated and forecast.

How to Prepare A Sales Budget?
While preparing the sales budget, a sales manager should
consider the following factors.
Past Sales Figures and Trends
Sales-men’s Estimates
Plant Capacity
Availability of Raw Materials
General Trade Prospects
Orders in Hand
Seasonal Fluctuations
Financial Aspect
Competition

Designing Sales Territories
and Sales Quota

Managing the Sales Force
The face of any organization is the sales force.
Companies spend a considerable amount of time and
money on sales force rather than on any other
promotional activity. However, sales force is
expensive and companies are looking forward to
managing them in an efficient and effective manner.
Unit- II, 26.09.2016

Designing of the Sales Force
Sales force is linking between companies and customer. Therefore, companies have to be
careful in designing and structuring sales force.
The first step is setting out an objective for sales force.
Earlier companies had a single objective increasing sale
making it objective also for sales people. Sales people are
asked to perform a search for prospective clients or lead.
Sales people are asked to balance time between a
prospective customer and current customer.
Effective communication of product and services is
essential to close the deal. Sales people also play an
important role in after sales service and can make a
difference for the company. Sales people are eyes and ears
of the company in the market gathering information about
competition and customer changing demands.

The second step is use sales people strategically.
Sales people have to combine efforts with other team
members to achieve the objective. Sales people should
be aware how to analyze market data been provided and
convert them into marketing strategies.
The third step is deciding the structure of the sales
force. The structure of the sales is dependent on the
strategy followed by the company. Common sales force
structures are as follows:-
Territorial structure is used where every sales
representative is assigned specific geographical area.
This structure is preferred for building relationships
with locals.
Product structure is used for complex and un- related
product portfolio. Here the sales people are directly
associated with research and development of the
products.

Market structure is used if the companies are operating
different industry or market segments. Every sales force
specializes in a definite market and helps push a
product efficiently across the given market. However,
the disadvantage would arise if customers are located
over a wide geographical area.
Complex structure is used when companies are in business
of selling complex product to different customer across
a large geographical area. Here sales force structure is
a combination of other structures discussed.
The next step is to design compensation for the sales
force. Compensation plays a big motivational factor for
sales people. Companies follow a structure of a fixed
amount plus a variable amount depending of success
achieved in the market. Allowances play an important
factor in the salary owing to continuous travel and
market visits.

Recruitment & Selection of
Sales Force

Motivating Sales Force
A motivated sales force can exceed your
expectations for revenue and for profit. How do
you motivate them to go above and beyond? Here are
some ideas:
1. Foster a team environment
2. Coach and mentor them
3. Create some friendly competition
4. Listen to their pain points
5. Give them the tools they need to succeed
6. Show them the money and appreciation

Sales Force Training & Compensation
1. Use E-Learning to Educate
2. Keep Training Short but Consistent With Micro-
Learning
3. Reward Specific Achievements
4. Field Train and Provide Detailed Feedback
5. Share Success Stories

Salesperson
 Salesperson is evaluated
by multiple raters
 Helps salespeople better
understand their ability
to add value to their
organization and their
customers
Internal Custom
ers
Evaluation
Evaluation
External Custom
ers
Evaluation
Evaluation
Oneself
Evaluation
Evaluation
Sales Manager
EvaluationEvaluation
Team
M
embers
Evaluation
Evaluation

BehavioralBehavioral
Professional
Development
Professional
Development
ResultsResults
ProfitabilityProfitability
Salesperson
Performance
Salesperson
Performance

What is Distribution Management ?
Determines optimal quantities of each product to be made at each
plant and to be distributed to each warehouse, such that
manufacturing.

Functions of a Distribution Channel
oInformation Gathering and distributing market research and
intelligence - important for marketing planning
oPromotion Developing and spreading communications about offers
oContact Finding and communicating with prospective buyers
oMatching Adjusting the offer to fit a buyer's needs, including grading,
assembling and packaging
oNegotiation Reaching agreement on price and other terms of the
offer
oPhysical Distribution - Transporting and storing goods
oFinancing Acquiring and using funds to cover the costs of the
distribution channel
oRisk taking Assuming some commercial risks by operating the channel
(e.g. holding stock)

Channel Management
The process by which a producer or supplier directs marketing
activity by involving and motivating parties comprising its channel
of distribution.

Types of Distributors & Strategies
Intensive Distributors
This type of distributor is normally used when the manufacturer /
vendor wants to sell their products as quickly as possible through
the widest possible channel. Intensive distributors will work with
many vendors and usually sell high volumes of goods at lower
prices and earn lower margins.
.

Distributors
This type of distribution is where manufacturers / vendors select
specialized distributors who are experienced at distributing their
products. Manufacturers / vendors may restrict the number of
retailers that a distributor can supply to in order to effectively reach
the target market, maintain a high level of service and retain high
retail pricing maximising profit margins for the whole distribution
channel.

Exclusive Distributors
This type of distributor is used when the manufacturer / vendor has
a niche market and product with targeted consumers. There will
usually be only one exclusive distributor for each territory.

Direct Distributors
With this type of distributor the manufacturer / vendor to sells and
delivers products directly to the consumer. Direct distributors usually
choose this route in order to reduce costs by negating the need for a
middle man as they would require a share of the profit margin in return
for distributing the products. However, direct distributors face several
drawbacks. Firstly they are limited to their own physical storage
capacity dictated solely by their sales volumes. Secondly they are likely
to have much less marketing exposure and significantly higher
marketing costs which may in actual fact offset any saving made by
not using other types of distributors.

Indirect Distributors
This type of distributor uses a network of wholesalers, retailers and resellers to
distribute their products to consumers, and is the most common type of distributor.
Indirect distribution enables manufacturers / vendors to concentrate on production
while the distributors focus on generating sales. The distributors sell to their existing
customer base of resellers / retailers with whom they have good relationships enabling
speedy sales and distribution of products. With this type of distribution there may also
be more than one distributor per territory.

Factors to Consider While
Selecting Distribution
Channels
Some of the factors to consider while selecting
channels of distribution are as follows:
Product
Market
Middlemen
Company
Marketing
Environment
Competitors
Customer Characteristics
Channel Compensation.

Thanks a lot…