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Selling and Sales Force Management
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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.”
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They provide the vital human link between the company and the customer
Because only humans can customize the market offering as per the customer
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Role of a Selling Person
Deliverer Order taker Missionary Technician Demand Creator Solution vendor
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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
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What does a selling person do?
Convince Argue Inform Cajole Persuade Guide Lead Negotiate Provide Solve
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Basic Steps in Selling Prospecting Qualifying Approach Presentation
Handling Objections Closing Taking the order Follow up
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What kind of Sales Force is required?
Routine selling Expert selling Technical selling Business scouting
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Sales Force Structure Geographical Market wise Product /Category wise
Channel
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Determining size of Sales Force
No. of accounts ( customers) Classification of account Call frequencies Location of accounts Monthly call load
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Managing Sales Force Recruitment Training Supervision Motivation
Evaluation
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Compensating Sales Personnnel
Fixed Variable Fixed + variable Commissions Incentives Bonuses Expense accounts
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Sales Productivity Call efficiency Time spent per call
Sales generated per call Expense per call Sales generated/ expenses incurred Margins( contributions)/sales person
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Sales Reporting Call reports Tour reports New accounts
Reporting on competition Identifying market opportunities Suggesting moves to counter competition Product/service complaints
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