Selling and Sales Force Management
What is Selling? The AMA defines Selling as “the personal or impersonal process of assisting and/or persuading a prospective customer to buy a commodity or a service or to act favourably upon an idea that has commercial significance to the seller.”
They provide the vital human link between the company and the customer Because only humans can customize the market offering as per the customer
Role of a Selling Person Deliverer Order taker Missionary Technician Demand Creator Solution vendor
Selling has to be adaptive The nature of selling has changed. Circumstances, markets, products, services, customers have necessitated selling persons have to change to respond to customer needs
What does a selling person do? Convince Argue Inform Cajole Persuade Guide Lead Negotiate Provide Solve
Basic Steps in Selling Prospecting Qualifying Approach Presentation Handling Objections Closing Taking the order Follow up
What kind of Sales Force is required? Routine selling Expert selling Technical selling Business scouting
Sales Force Structure Geographical Market wise Product /Category wise Channel
Determining size of Sales Force No. of accounts ( customers) Classification of account Call frequencies Location of accounts Monthly call load
Managing Sales Force Recruitment Training Supervision Motivation Evaluation
Compensating Sales Personnnel Fixed Variable Fixed + variable Commissions Incentives Bonuses Expense accounts
Sales Productivity Call efficiency Time spent per call Sales generated per call Expense per call Sales generated/ expenses incurred Margins( contributions)/sales person
Sales Reporting Call reports Tour reports New accounts Reporting on competition Identifying market opportunities Suggesting moves to counter competition Product/service complaints