SALES & DISTRIBUTION MANAGEMENT SESSION 2

BRAIN TEASER Anil runs the first half of a race at 5 km per hour. Then he picks up his pace and runs the last half of the race at 10 km per hour. What is his average speed on the course?

SALES MANAGEMENT OVERALL ACTIVITIES SALES MANAGEMENT - SCOPE The Definitions Committee of the American Management Association has defined the scope of Sales Management. It covers ‘the planning, direction and control of sales personnel, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating sales force personnel.’ sales management-sales related activity sales force management-personnel related activity

GENERAL ROLE OF THE SALES MANAGER As an administrator in charge of the personal selling activity As a member of the executive group that makes marketing decisions of all types.

SALES MANAGEMENT RESPONSIBILITY 1TO THE ORGANIZATION FOR a sales volume bprofit contribution cbusiness growth 2TO THE CUSTOMER FOR atimely supply bsupport cservice 3TO THE SOCIETY, FOR ademanded goods at proper price bethically right products cenvironmentally friendly products the proper blend amongst the three factor is to be achieved

SALES MANAGEMENT OBJECTIVES 1to generate a sales volume 2to contribute to profits 3continuous growth They are not fully responsible but they make the major contribution. Top Mgmt delegates toMarketing Mgmt Mark Mgmt delegatesto Sales Mgmt

THE SALES MANAGEMENT COORDINATION 1with the overall marketing strategy 2with planning 3with other elements in the marketing process 4with the distribution network

SALES MANAGEMENT FUNCTIONS 1Situation Review awhere am I now? bhow did I get here ? cwhere do I have to go ? dhow can I reach there ? 2Setting Quantitative Performance Standards 3Gathering and Processing Data on Actual Performance 4Evaluating Performance 5Action to correct controllable variation 6Adjusting for Uncontrollable variation

SALES CONTROL Informal Control over Policy Formulation and Review Formal Control over Sales Volume BUDGETARY CONTROL

PERSONAL SELLING

Personal Selling is implemented through salesmanship ( selling skills ) SALESMANSHIP The art of successfully persuading prospects to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction BUYER - SELLER DYADS DYAD- A situation in which two people interact BUYERInteractionSELLER

RESEARCH DATA Franklin Evans covering Life Insurance ‘similarities resulted in favorable situation for a sale’ Henry Tosi researched pharma sales A customer had a perception of proper selling behavior. This behavior was influenced by past experience. A salesperson conforming to this behavior increased the sale probability.

SELLING PROFILES A SERVICE SELLING 1Inside order taker 2Delivery man 3Route or merchandise salesperson 4Missionary 5Technical salesperson B DEVELOPMENTAL SELLING 6Creative salesperson of tangibles 7Creative salesperson of intangibles C DEVELOPMENTAL SELLING WITH UNUSUAL CREATIVITY 8‘Political’, ‘Indirect’, or ‘Backdoor’ salesperson 9Salesperson engaged in multiple sales

THEORIES OF SELLING Is selling an art or a science ? In a survey of 173 marketing executives- 46 percentselling - an art 8 percentselling - a science 46 percentselling - an art evolving into a science The theories have reflected this approach. aAn experiential approach ‘what to do’ and ‘how to do’ but not ‘why’ bA behavioral approach

1THE ‘AIDAS’ THEORY AAttention IInterest DDesire AAction SSatisfaction

2SITUATION RESPONSE THEORY Also called the ‘Right Set of Circumstances’ Theory Psychological origin in experimentation with animals. Given a right set of circumstances, a proper stimuli will result in a predictable response. The set of circumstances -external factors -internal factors

3‘BUYING FORMULA’ THEORY Need or Problem Solution Purchase Satisfaction

SALES APPROACHES 1AIDA 2Xerox’s SPANCO approach 3Huthwaite Research Group / Xerox S P I N approach

THE SELLING FUNCTIONS THE STRUCTURE ASuspecting BProspecting CGaining Appointment DOpening the Sale EThe Business Meeting FObjection Handling GClosing SELLING A TANGIBLE PRODUCT SELLING AN INTANGIBLE PRODUCT (SERVICE) SELLING A SYSTEM

THANK YOU