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8/14/2019 Sessions 1- 3
1/45
NATURE & SCOPE OF
SALES MANAGEMENTSessions 1 - 2
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BOOKS AND REFERENCES:
Sales and Distribution Management Tapan Panda, & SunilSahdev (Oxford), TPSS Text book
Sales & Distribution Management Dr Matin Khan,Excel Books (Rs.200/-)Marketing Channels Coughlan, Anderson, Stern, El-Ansary7 th . Edition, PearsonMarketing Channels ( A Management View) - BertRosenbloom, The Drydon Press ABC's of Selling - Charles FutrellSales Management: Decisions Strategies and Cases - Still,Richard RGupta, S.L. Sales and Distribution ManagementRampal, M.K., Gupta, S.L. Cases and Simulations in MarketingManagement
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Nature and scope of SalesManagement The importance of salesmanagement Responsibilities of a sales manager
Selling and Marketing thedifferenceOrganization for Sales &Marketing
Nature of sales organizationUnderstanding different types of sales& marketing organization structures
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FOR SUCCESS IN ALLAREAS OF LIFE
ATTITUDE IS MUCHMORE IMPORTANT
THAN APTITUDE
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GIVE ME SOME ATTITUDE1. There are a lot of different elements to asuccessful sale, but amongst the most
important is attitude2. The way you present yourself, your posture,
your clothing, your tone, even the way youlook at a customer- gives off subtle signals3. If you act like a loser slumped over, not
looking at prospect straight in the eyes- youcome across negativity and people react toyou negatively
4. Conversely, if you come out with a can doattitude and confidence, prospect will reactpositively towards you
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CREATING ATTITUDE- I1. You cant tell yourself you want to be confidentand boom you are. It doesnt work that way2. The right attitude is not just mental, its physical
too3. If you are not well dressed it will reflect upon you
in the same manner as the lack of confidence.Given a choice, people want to deal with someonewho projects a positive vibe
4. This is your livelihood. Invest in it. Get yourself acouple of really good suits, expensive shirts, andsilk ties. Your customers will notice- and so will you. You will feel better about yourself when you lookin the mirror
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CREATING ATTITUDE- II1. Get back to your fighting weight. You can look in themirror and tell yourself the problem is in your jeans.
But if you cant fit into your jeans, it doesnt make adifference why. If you are overweight you come acrossas a person who lacks self control and cant be trusted
2. Reading will improve your communication skills. It willmake you a better writer and a better speaker. Thesebenefits come no matter what you read- evenmysteries or science fictions
3. However, reading news papers and news magazineshas an added benefit; they make you a betterconversationalist. You will be better informed aboutwhats going along in the world.
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SOME FAMOUS QUOTES OFEARL NIGHTINGALE
1.People with goals succeed becausethey know where they aregoing Its as simple as that
2.You become what you think about 3.Whats going on inside shows on
the outside
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START WITH A QUERY
The task of a salesmanager is to increase
sales, the task thatconfronts a marketing
manager is to increase
Is marketing & sellingsynonymous?
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Marketing begins with consumer need identification.Sales on the other hand begins with the product in hand.The heart of any marketing activity is the exchangeprocess, completed and facilitated by the sales function
Marketing is defined as the conception, production,promotion and distribution of goods & services to the enduser at a profit.Thus mark eting aims at satisfying the need of theconsumer at one end and generate profits at the other endfor the manufacturer and other intermediaries associatedin the process.Marketing and sales are inseparable functions. Both arecomplimentary to each other. Marketing as well as salescannot exist in vacuum.The sales function also acts as a market feedback formarketing personnel. The actual test of a product in termsof quality, attributes, expectations, price worthiness andso on result only when it is sold to the consumer.Therefore consumer feedback is considered a very vitalingredient in formulating marketing policies.A product increases in sales only when it is marketed well.Thus it is very apt to conclude that the task of a salesmanager is to increase sales and that of a of marketingmanager is to increase profits. For this it is important that
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WHEN WE ARE MARKETING,WE ARE:
1. Deciding what products we are going to sell2. Determining the prices at which we are
going to sell3. Deciding whom we are going to sell4. Estimating the likely result of the profit
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DIFFEREN E BETWEENSELLING & MARKETINGORIENTED COMPANIES
SELLING MARKETINGEmphasis on product Emphasis on consumer needs and
wants
Company manufactures theproduct first and then decides to
sell it
Company first determines customerneeds and wants and then decides
how to deliver a product to satisfythese wants
Management is sales volumeoriented
Management is profit oriented
Planning is short-term oriented
in terms of todays products andmarkets
Planning is long-term oriented in
terms of new products, tomorrowsproducts and future products
Stresses needs of a seller Stresses needs and wants of a buyer
Views business as a goodsproducing process
Views business as a consumersatisfying process
Emphasis on staying withexisting technology and
Emphasis on innovation in everysphere, on providing better value to TPS S
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DIFFERENCE BETWEENSELLING & MARKETING
SELLING MARKETING
Different departments work ashighly separate watertightcompartments
All departments of a business operatein an integrated manner, the solepurpose being generation of consumer satisfaction
Cost determines price Consumers determine price, pricedetermines cost
Selling views customers as thelast link in business
Marketing views the customers as thevery beginning of a business
TPSS
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Session- 2
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THE SELLING CONCEPT
Startingpoint Focus Means Ends
Factory Factory Selling
& promoting
Selling
& promoting
Profits
throughsales
volume
Market Customerneeds
Coordinatedmarketing
Profitsthrough
customersatisfaction
THE MARKETINGCONCEPT
TPSS
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NEW TRENDS AFFECTINGPERSONAL SELLING
1. Buyers are more aware and demanding2. Customer expectations are rising3. Revolutionary advances in telecommunications and
computer technology are happening all the time4. Sales force for consumer product is shrinking5. Women are flooding the sales profession6. Domestic markets are undergoing micro-
segmentation7. Foreign competition is intensifying8. Markets are being international
A wise sales person will keep these trends in mind while going about his work
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SALES JUST DONTHAPPEN
1. 80% of all sales are made afterthe fifth call
2. 48% of all sales persons callonce, and quit
3. 35% call twice, and quit
4. 10% keep on callingThese 10% make 80% of the
sales
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SUCCESS CAN CAUSEFAILUREPhilip Kotler- Many times as corporations grow larger,
they begin to forget the very lessons which have madethem a success1.Increase in the no. of levels in the hierarchy makes itdifficult to make ultimate consumers voice heard2.When it does get heard, communication gets distorted3.Only information that is liked by top management is fed4.Salesman becomes overconfident because product ispopular and sells. They make fewer calls, travel less. Theythink about their own convenience and not that of thecustomer5.Salesmen begin to take customer for granted. Develops atake it or leave it attitude6.Sales man and company twists customers arms tying upslow moving product with fast moving ones7.Sales man becomes insensitive and unobservant aboutcompetition. End us as tortoise and hare 8.Salesman rely on improvising rather than on system
planning- again a sign of over-confidence
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WHO IS APROFESSIONAL?
1. Must have the will to learn and keep onlearning throughout his professional career2. Must serve a period of internship , to learn
the ropes and the details from someonesenior and more experienced
3. Must specialize because even in sellingthere is need to have expertise in specificproduct or services
4. Must take time to fraternize , to meetothers in the same profession
5. Must have the desire to contribute- to thecommunity, to the society . Selling is justnot a selfish job.
DISTINGUISHING FEATURES OF
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DISTINGUISHING FEATURES OFMARKETING- BASED
COMPANIES1. Use market share, rather than volume as measure of marketing success2. Analyse and use market segmentation principals3. Research the process of monitoring customer needs,
usage, trends as well as competitive activity4. Evolve a structure or process of coordinating all non-
marketing functions5. Have a set of specific marketing goals and targets6. Follow a corporate style and culture where marketing
plays a key role7. Follow a market-based business concept that provide
unique value to the customer8. Sales managers are termed as relationship mangers
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THE SELLING FUNCTION
Insideorder-takers
Order-
takers
Order-
creators
Order-
getters
DG 5
THE SELLING
FUNCTION
Delivery
salespeople
Missionary
salespeople
Outside
order-takers
Newbusin
esssales
Organisa-tional
salespeople
Consumer
salespeople Tech
supportsales
people
Merchan-
isers
Front-linesales
people
Salessupportpeople
Respond toalready committed customers
Do not directly receive orders- talk to specifiers rather than buyers
Attempt to persuadecustomers to
place an order
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Inventory, channels of
distribution, no. of intermediaries-
Price levels,credit terms,
discounts, price
changes
Features, packaging,
quality,range
Advertising, publicity, sales
promotion, personal selling
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TIME OF ADOPTION OFINNOVATORS
8-24
8-3
DG-18
Innovator
s(2.5%) Early adopters(13.5%)
Early
majority (34%) Late
majority (34%)
%a
gefirst-time
adopters
Laggards
(16%)
Closely related to PLC concept
Time taken for diffusion process
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PRODUCT LIFE CYCLE
8-25
8-3
DG-18
Introduct ion
%a
gefirst-time
adopters Growth
Maturity Decline
Profit
Sales
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THE DEMAND CURVE
D
1Quantity
000
Price (Rs)
DG
D
432
If demand determinesthe upper threshold for
price, then costs
determine the lower one
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A SIMPLE BREAK-EVENCHART
Profits
Loss
Sales Revenue
Fixed Costs
(a)
Variable Costs(b)
Total Costs(a+b )
Break-even
Output
Sales
RevenueCost
DG
Sales managers must understand different
costing concepts
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Area wheresubstantial
improvements and cost savin s can be
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-SALESMAN Thinker in addition to being a doer
Begins with a plan- finds out whom to see, where and when and
estimates what he hopes to achieveFor industrial products in a highly competitive environment: 30% time is spent on planning 70% in implementingIf he does not do this: 100% of field work will yield only 30% productivity
Offer something new always Newness in a selling situation lies in the eyes of the salesperson
(feature/ benefit) No two prospects are ever the same
Strike empathy Define the customer profile- background, level of education,temperament, interests etc, weaknesses, needs & wants
Helps gain trust so that the customer will buy his products Target for the heart
When all brands are about the same, differentiate the product fromthose of competitors in ways external to the product
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Select territories and customersWhich areas to cover and within the area who are the potentialcustomers, how often and in what manner (market mapping)Planning the work working the planClassify customers:The A-customers will perhaps be the busiest and most difficult to
meet and they have to be met the most and for the longestperiod
Identify the influencers, deciders, purchasers and users:MAN (Money Authority & Need)
Who can initiate the decisionWho can influence itWho can decide
Who will be the formal purchaser Who will be the user Most times industrial selling and in large corporations these rolesare performed by different persons
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THE NATURE AND ROLE OFSALES MANAGEMENT
The basic function and role of selling is to generate salesand earn revenue for an organization. Todays approachincludes:Maintaining good customer relationsManaging profitability of a firmManaging customer complaintsBuilding brand value in the eyes of the customerBest marketing programs can fail if sales staff is
ineffective or improperly managed.For customers sales staff represents the face of thecompany and impressions determine future businessrelations.Functions of a sales manager are classified into:
1.Personnel selling Individual or team to establish andbuild a profitable relationship over time through multipletransactions
2.Sales management Planning, organizing, directing andcontrolling all sales activities
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ORGANIZATION FORMARKETING
Referred to as:DirectionalManagerialFunctional structureLines of authority & responsibility
Factors for consideration are:1.Will the need for a decision be recognized and givenadequate consideration by the appropriate members of theorganization?2.Will there be sufficient time for the decision makingprocess?3.Whether the necessary data on existing and alternativecourses of actions are available and utilized?
4.Will the skills, knowledge and potential of the organizationalmembers be used to maximize their contribution to the
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ORGANISATIONAL IMPLICATIONSOF ADOPTING THE MARKETING
CONCEPT
DG
Production
Managing Director
Sales Marketing Finance H.RManagem
ent
Field Sales Force
Sales Office Administratio
n
Advertising
Market Research
Publicity
SALES ORIENTED COMPANY
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ORGANISATIONAL IMPLICATIONSOF ADOPTING THE MARKETING
CONCEPT
DG
Production
Managing Director
Sales
Marketing Finance H.RManagem
ent
Field Sales Force
Sales Office Administratio
n
Advertising
Market Research
Publicity MARKET-ORIENTED COMPANY
Sales promotion
Publicity
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EXAMPLE OF A SALESORGANIZATION STRUCTURE
NATIONAL SALESMANAGER
REGIONAL SALESMANAGERS
DISTRICT SALESMANAGER
DUTIES AND
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DUTIES ANDRESPONSIBILITIES OF A
SALES MANAGER Determining sales force objectives and goals Finalizing sales force organization, size, territory, and quota
Forecasting and budgeting sales
Selecting, recruiting, and training of the sales force
Motivating and leading the sales force Designing compensation plan and control systems
Designing career growth plans and building relationshipstrategies with key customers
SALES MANAGEMENT
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SALES MANAGEMENTMODEL
DESCRIBING THE PERSONNEL SELLINGFUNCTION
DEFINING THE STRATEGIC ROLE INPERSONAL SELLING
DESIGNING THE SALES ORGANISATION
DEVELOPING THE SALES FORCE
DIRECTING THE SALES FORCE
DETERMINING SALES FORCE EFFECTIVENESS &PERFORMANCE
PRACTICAL MARKETING
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PRACTICAL MARKETINGORGANISATION STRUCTURE
MANAGING DIRECTOR
Production
Director
Financial
Director
Marketing
Director
HumanResource
DirectorMarketing Manager General Sales
Manager
Market ResearchProduct
PlanningSalesforecastingProductionSchedulingSales BudgetingPricingAdvertising
Field SalesForce
CustomerServiceProductService
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ORGANISATION STRUCTURESCUSTOMER ORIENTED MANAGING DIRECTOR
EngineeringProduction R &DDesignMarketResearchFinancePurchasingCredit ControlAdvertisingSalespromotionPhysicalDistribution
SalesCustomer
Marketing
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Sales Director
Regional Sales Manager
Area Sales Manager Area Sales ManagerArea Sales Manager
SalesPeople
SalesPeople
SalesPeople
Product SalesManagers
SalesDirector
Fans Radiators Water Pumps
Sales People Sales People Sales People
Geographical Structure
duct Specialization Structure
DG
t B d St t
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Industry Sales
Managers
SalesDirector
Banking Manufacturing Retailing
Sales People Sales People Sales People
ustomer Based Structure
Geographical Structure:Sales person is required to sell full range of company productsCosts low but such people are relatively weak in interpreting buyerbehaviourProduct Specialization Structure:Problem of route duplication (higher travel costs) if products sellessentially to the same customerMay cause customer annoyanceCustomer-based Structure:Often used in industrial selling marketsSpecialization by markets served allows sales people to gain greaterinsights into the factors of a particular industryMore training for increased customer knowledge and increased travelexpenses DG
LINE VS STAFF
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National SalesManager
Regional SalesManagers
District Sales
Managers
Sales TrainingManager
Sales TrainingManager
Salespeople
Staff PositionLinePosition
LINE VS. STAFFPOSITIONS
AN ORGANIZATION STRUCTURE OF A 2
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AN ORGANIZATION STRUCTURE OF A 2-WHEELER COMPANY
DIRECTOR MARKETING
GMMarketin
g
GMSales
GMService
GMCommerci
alAdvertisin
g
GM(Spar
es)
Retailing
Network Developm
entSales
Mgmt.Statistics
CreditControlPricing
MarketResearch
Goods
MovementBranches
(12)
BranchManage
r
RuralMarketin
g
Area Mgr.
Comm.Asst.ServiceEngg.Depot
InchargeSpare Part
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DISTRIBUTION ITS ROLE &IMPORTANCE
Creating a dealer network Preparation of annual Dealer Network
Development (DNM) plan
Appointment of dealer network Categorization of the dealers Initial support to new dealers
Dealer productivity norms Termination of dealers
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END OF PRESENTATION
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