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Sales Management

and sales promotion &


Distribution and supply chain
management
MMS / PGP III
Prof M.R.Koshti
Session no.1
40 slides

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Mark System (100)
 Written paper 30 marks each, 2 hrs each,
separate papers
1. Sales management & Sales promotion
2. Distribution & supply chain management
 Attendance 10
 Class Participation 10
 Sales assignment 10
 Presentations 10**

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Syllabus – Sales Management and
Sales promotion
1. Job and role of sales management in
organizations
2. The selling Functions – The importance of
systems selling -- in contemporary
environment, selling of services, services as
opposed to selling of tangible products –
selling process**

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Contents…..
3. Sales Management Planning – Sales
Management Information systems, Sales
management—planning—Forecasting
4. Sales Budgeting and planning for quotas
5. Manpower planning for the sales
organization and development of sales
organization**

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Contents....
6. Recruitment, selection, training and
development of sales organization
7. Time and territory management—Territory
planning, establishing, revising territories,
bases of territory design, methods of territory
design including computer models, assigning
sales people to territories, Route planning
and territory coverage**

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Contents…
8. Sales incentives and sales compensation

9. Sales force performance, evaluation and


control
10. Sales promotion strategies / consumer and
trade promotion / sales contests, coupons /
trade in discounts**

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Contents – Distribution and supply
chain management
 The role of distribution function in marketing
mix and meaning of distribution equity
 Channel design and management of
consumer, industrial products, rural markets
and services
 Tasks and responsibilities of channel
members
 Channel selection, training, development, and
performance appraisal of channel members**

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….
 Financial dimensions of dealer management
 Management issues in distribution viz.
channel conflicts, use of power bases,
disputes etc.
 Supply chain management – issues
opportunities and strategies**

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….
 Distribution budgeting and control systems –
cost of distribution, inventory, warehousing,
material handling, order processing, packing
and transportation
 Fiscal levies, regulations in distribution –CST,
LST, octroi, excise duties etc**

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Books
1. Sales and Distribution Management – Matin
Khan
2. Sales and Distribution Management – S L
Gupta
3. Sales Management, Decisions, Strategies,
and Cases – Richard R Still, Edward W
Cundiff, Norman AP Govoni
4. The new sales manager – Walter Vieira
5. Physical distribution management logistical
approach – Dr K Khanna**
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What is sale?
 Actual event when the customer purchases
(commits in writing to purchase) the product
and makes payment (commits to pay) for the
same
 Evolution – Barter system – Manufacture on
small scale – Manufacture on large scale
(World wars) – Need to sell (after war was
over) – Make customers buy what you
produce (Sales organization) – Marketing**

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Difference between Sales & marketing
 Sales is a subset of Marketing
 Sales is a part of promotional P
 Which is more important?
 Sales in short term and marketing in long
term**

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Why Sales (Management) is
important?
 No wheel turns unless a sale is made
 Excellent product ideas can go in dust been if
it can not be or is not sold (Patents)
 Sales Dept is the income producing division
of business
 Rs 1000 Cr + - 50 / 900
 Effect of sales on profit is huge (% wise)
 Everyone lives by selling something**

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What could you do to increase sales?
 Situation
 I have just joined your company as Director –
Sales.
 You are my expert sales people.
 My task is to increase sale
 I wouldn’t reject any idea on the point of
budget
 All ideas will be considered**

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Ways to increase sales
 More advertising
 TV advertising
 Newspapers and magazines
 Trade shows and publications
 Sponsorships
 New product lines
 Improve existing products
 Increase stock
 Increase number of sales people
 Increase number of locations
 Take over the competition (budget not a constraint!!)
 Reduce prices
 Better cars for sales-people
 Incentives
 More training**

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Control, Influence, and concern
(Seven habits of successful people –
Stephen Covey)
 Somethings that happen in the world are
completely outside our control – poverty,
climate change, economy, crime ……You can
certainly have a concern about them
 People who focus their attention on such
things get very depressed**

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…..
 There are some-things which I can influence,
but still can not control them e.g. you can
influence customers and colleagues
 People who focus on things they can
influence are negative and cynical
 Their focus is on what other people should be
doing**

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……
 There is something I have complete control,
100% control
 That is my own attitude.
 People who are successful in life focus on
their own attitudes**

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Ways to increase sales
 I will pick up the phone more times
 Work harder
 See more people
 Ask all of them to buy
 Learn about my own products
 Support my colleagues
 Learn about selling
 Read books about selling**

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Serious deficiencies of salesmen
 A survey conducted in US over 10,000 industrial buyers
revealed…
 96% said that the sales people did not ask for a commitment on
an order form, apparently because they “lost control” of the
sales situation
 89% said the sales people did not know their products
 88% said the sales person did not present, or demonstrate, the
products they are selling, what they appeared to be selling was
price
 85% said that the salespeople lacked empathy
 82% said that they will not buy from the same salesperson or
companies again and cited “neglect” and “indifference” as the
major reason**

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Comparative analysis of the top
problems faced by Sales force
management (ranked)
1. Poor utilization of time and planned sales effort
2. Inadequacy in sales training
3. Time wasted in office by salespersons
4. Too few calls in working hours
5. Inability of salesperson to overcome objections
6. Indifferent follow up of prospects by sales persons
7. Lack of creative, resourceful sales techniques
8. Inability to meet competitive pricing
9. Lack of sales drive and motivation
10. Faulty recruitment and selection of sales personnel**
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Sales Management
 Definition committee of American Marketing
Association
 Sales Management means the planning,
direction and control / supervision of personal
selling (salesmen), including recruiting,
selecting, equipping, assigning, routing,
supervising, paying, and motivating as these
tasks apply to personal sales-force**

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Situations of personal selling
 Industrial marketing (Business to business
marketing B2B)
 Direct selling companies (Eureka Forbes,
Amway, World book, Banking and insurance
products etc)
 Consumer durables**

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Sales manager
 Responsible for organizing sales efforts both
within and outside their companies
 Member of the executive group that makes
marketing decisions of all types**

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Objectives of Sales Management
Responsibility towards organization
 Sales Volume
 To retain and capture market share (HLL)
 To obtain new accounts (customers) of given type
 To secure targeted percentage of certain accounts of business
 Contribution to profits
 To deliver sales volume in ways that contributes to profitability
(breakeven / margin of safety)
 To keep personal expenses within specified limits
 Continuing growth
Receive orders, coordinate deliveries, collect money**

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Systems selling
 What does it mean as opposed to product
selling?
 Selling of main and complimentary products
so that the customer gets a solution under
one roof (from one seller only) to solve his
problem / need**

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Systems selling
 Why is it important in the new (contemporary) environment?
 Buying individual components of the system from individual
sellers is time consuming
 Compatibility issues
 Pointing fingers by individual vendors to each other if the
combination does not work
 Ever increasing competition has made quick response to
consumer need as a tool for survival (System Integrators-SI)**

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Selling of services
 4 I’s
 Intangible
 Inconsistent
 Inventory
 Inseparable**

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Selling process
1. Prospecting
2. Pre-approach
3. Approach
4. Presentation and demonstration
5. Proposal
6. Handling objections / Negotiation
7. Closing
8. Follow up**

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Prospecting
 Process of identifying potential buyers (have
need, will to buy ,and power to buy)**

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Methods of prospecting
 Acquaintance (satisfied customers) references
 Cold calling
 Centre of influence method – references from
politician, actors….
 Personal observation method
 Direct mail or telephone method
 Company record – old/lost/current customers
 Newspapers (tenders) Too late?
 Retailers
 Trade fairs, Exhibitions**

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Pre - approach
 Research
 Likes, dislikes
 Needs, preferences
 Habits, nature, behavior
 Economic and social status
 Process of qualification of prospect (Prospect
is qualified if he will buy within the stipulated
current time period)**

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Approach
 Prospect and salesman come in contact with
each other face to face
 Objectives – To get the attention of the
prospect, convince him to buy
 Critical requirement – Listening**

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Keys to successful approach
 Prior appointment
 Confidence, professionalism, command over
the information about the product, Formal
business attire
 Make prospect feel relaxed
 Respect the views of the prospect, no
arguments
 Patience (if no sale happens in that visit)**

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Presentation and demonstration
 Seeing is believing
 Increases customers’ confidence in the
product
 Offer the product for handling
 Sell benefits not the features**

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Proposal
 Complete in all respects
 Technical configuration
 Price
 Terms and conditions – Payment, Warranty,
After sales service**

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Tackling objections
 Objections are not hurdles
 They are opportunities
 No objection, no interest, NO SALE
 Opportunity for trial close**

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Handling objections
 Get full basket from the prospect
 Trial close
 Answer the objection
 Negotiate / Trade the offers**

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The close
 Customer signs the purchase order
 “How many should I book for you”
 When will you like to have delivery?
 Will you pay by cash or cheque?
 Which color would you go for?**

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Follow up
 Process the purchase order in the office
 Coordinate for timely delivery
 Coordinate installation and acceptance
 Collect payment**

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