SALES AND DISTRIBUTION MANAGEMENT

BY: MUKESH MISHRA

Introduction
Sales

management means the planning, direction and control of personal selling, including recruiting, selecting, equiping,routing, supervising, paying and motivating as these task apply to the personal sales force Its is basically management of sales force

Evolution of personal selling

Negotiation Persuasion Consultative Selling Business Management Partnership Strategies

Nature and Role of sales Management

The basic function and role of selling is to generate sales and earn revenue for an organization. Today`s selling approach also highlights maintaining good customer relationship, managing the profitability of firm, managing customer complaints, and maintaining brand value in the eye of customers.

Nature and Role of sales Management

Even

best marketing programmes may fail if the sales staff is ineffective or they are improperly managed For many customers the sales staff represents the company and the impression it carries determines its future business relation with customers

Nature and Role of sales Management

There is a cost aspect also as the cost of recruiting, training, and managing the sales force is high and any ineffective management program will include diseconomy of scale of enterprise. The job of sales manager is not only to organize sales but also to carry out management functions such as guiding and leading a set of people to achieve sales target

Nature and Role of sales Management

The

function of sales manager can be classified into two: personal selling and sales management. a) Personal selling it entails personal communication between a seller and a buyer for the purpose of determining and satisfying the buyers current and latent needs.

Nature and Role of sales Management

It involves an individual salesperson or a sales team to establish and build a profitable and symbiotic relationship with customer over a time for multiple transaction cycle. In the process of building relationship, a salesperson must determine a buyer`s needs and influence or persuade the buyer to purchase his product with the assurance that the product or service will satisfy the buyer more than the competitors products.

Nature and Role of sales Management

b) Sales Management It is more strategic and a long term consequence, as it involve planning, organizing, directing and controlling of all the selling activities of an organization Management of sales force demands attention towards the emerging roles and functions of the salespeople in the context of an evolving environment

Nature and Role of sales Management

At

the lowest level of the sales force is sales executive and the next level is sales manager who handles 10-15c sales executive. Area manager handle a few sales managers As the no. of hierarchy increases, more and more management functions get added on the primary job of selling

Nature and role of sales management

The determination of sales force objective and goals Sales force organization, size, territory, and quota finalization Sales forecasting and budgeting Sales force selection, recruitment, and training Motivating and leading the sales force Designing compensation plan and control systems Designing career growth plans and building relationship strategies with key customers

Types of personal selling

Industrial selling Retail selling Services selling

Types of personal selling

1.

Industrial Selling It is basically termed as BtoB selling but in a traditional business model, it is characterized as the manufacturing sector selling. These are grouped into four categories on the basis of their consumer base

Types of personal selling

a)Selling to resellers A reseller is a wholesaler or a retailer or an intermediary who buys finished goods and resell them to the end users.. b) Selling to business users This means the output of one producer enters into production process of another producer to manufacture a final goods for the consumption of end users

Types of personal selling

c) Institutional selling These institutional customers use the products in their daily operation. Companies such as Xerox in photocopiers, J&J in surgical equipments, and Reynolds in office stationeries sell directly to institutions for institutional consumption. d) Selling to governments company is also selling their goods in govt. organization. such as railway canteen,defence canteen etc.

Types of personal selling

2.Retail Selling Retailing is defined as the all the activities directly related to the sales of goods and services to ultimate customers for personal or non business use or consumption 3.service selling Services such as insurance, airline, and travel are intangible in nature. unlike products services cannot be separated from their source and hence cannot be stored for future use.

Types of Selling
Inside Order Taker Order Takers Delivery Sales People

Outside Order Takers

Selling Function Order Creators Missionary Sales People New Business Sales People Front Line Sales People Order Getters Organizational Sales People Consumer Sales People Sales Support Sales people Technical Support sales People Merchandisers

Types of Selling
1.Order taker Salespeople a) Inside order takers They are retail sales assistant's sales assistant role is to complete the transaction b) Delivery Salespeople Who delivers newspapers, magazines, and pizza. etc. c) Outside Order Taker Who visit the customers regularly and their primary concern is to respond to the customer calls rather than seek new customers. Sales people of Eureka Forbes are included in this category

Types of Selling
2.Order Creators Missionary salespeople who normally dont close a sale but persuade the customers to promote the sellers brand. E.g. MR In this kind of selling, the objective is to educate and make the people aware of the product rather than closing a sale

Types of Selling
3. Order Getters A .Front line Sales People a) New Business Sale people They are the front line salespeople who go door to door to sell products. the function is to persuade new buyers and non-users to buy a company products and services b) Organizational salespeople They are industrial sellers who try to establish and nurture a long term relationship with organizational buyer. The selling job involve team selling where a cross functional sales team, sales and technical staff joined together, does a sales presentation.

Types of Selling
c) Consumer sells people They are door to door salesperson who sells insurance and other personal product for individual consumption. B. Sales support Salespeople a) Technical sells support They support the frontline salespeople when the product is technically complex b) Merchandisers They prove sales support in retail and wholesale.

Difference between sales and marketing

Starting point
Factory

Focus
Factory

Means
Selling and promoting

Ends
Profits though sales volume

Selling concept
Market Customer needs Coordinated marketing Profits through customer satisfaction

Market concept

Sales management process

Formulation of a strategic sales programme Implementation of the sales programme

Evaluation and control of sales force performance

Sales management process

1.

Formulation of a Strategic Sales Management Programme It should consider the environmental issues affecting the business. It should organize and plan the company`s overall personal selling efforts and integrate these with the other elements of firm marketing strategies

Sales management process

The

demands of the potential customers and the strategic moves of competitors are two important external environmental factors that a sales manager should take into account. The organizational environmental factors help in determining the nature of a sales program

Sales management process

There are five key decisions that a sales manager needs to take at this stage The sales manager should decide on how the personal selling efforts can best be integrated company`s environment and other element of marketing strategy. The next decision is to find out and decide in what way the potential customer`s can best be approached, persuaded and serviced

Sales management process

Design of sales organization suitable to market to call and manage various type of customers as effectively and efficiently as possible. Decision related to level of performance each member of sales force expected to attain during the planning period under consideration. The decision involves deciding on the sales territories and allocation of these territories to the sales people

Sales management process

2. Implementation of strategic sales management program It involves selecting appropriate sales personnel, training them, leading them and motivating them, designing and implementing of policies and procedures that will direct the efforts of the salespeople towards achieving corporate objectives.

Sales management process

There are five factors that influence the job performance and behavior of sales people The ability of the salespeople to achieve the desired level of outcome is always influenced the environment they operate. E.g. situation in market, the level of competition, the market demand of category, and the condition of economy in providing consumption power

Sales management process

Perceived

quality of product, the pricing policy followed in the market, and the promotional support also influence the sales performance of the people in organization. A salesperson should be clear about his job profile and the method he should follow to execute the desired role in the organization

Sales management process

The performance of a salesperson is also influenced by his ability to perform the job. Personal characteristics, personality traits, level of intelligence, analytical ability to coprehend the selling situations will decide his success level in the market. The sales person should have adequate knowledge about product market conditions, competitors product information,and should also have knowledge about closing the sales through effective presentation

Sales management process

A salespeople should be motivated enough to stay committed to the job. People stay committed due to the expected rewards in financial terms, job enrichments, or promotion. A Sales manager should decide what kind of aptitude is required for performing a selling function and then should go to develop recruitment and selection criteria to ensure that right kind of people with right ability and capabilities are hired for the enterprise

Sales management process

3.Evaluation and Control of a strategic Sales Management Program The performance of every salesperson is measured and evaluated Company use a structured performance measurement based on all the activities of salesperson in a organization, which includes the sale call made, prospecting done, information collected on market behavior, and annual sales volume and customer satisfaction index generated by employee in his area of operation

Sales management process

Sales Analysis-Each salespersons sales volume can be monitored and measured again the quota allocated to him. Which can be broken by territory, by product line and result can be compared with quota Cost analysis- the cost can be evaluated on the basis of an individuals sales man, territory, by product line, by customer type.

Technology

Customer orientation

Emerging trends in sales management

Technology

Relationship selling

Global and ethical Issues

Diversity

New selling methods

Emerging trends in sales management

Selling Skills and Selling Strategies

Product and services can be delivered to potential customers in two ways a) Indirect Marketing- it involves a process of intermediation in which third party takes the product and delivers it to the customers on behalf of the producer, with a share in the profits. b) Direct Marketing- organization deliver products and services to the customers directly through salespeople.

Selling Skills and Selling Strategies

Salespeople with proper selling skills not only close the sales and utilize selling time effectively but also are able to project a positive image of the company through their professional selling approach. Success in selling does not depend on some inborn quality; rather it is based on application of certain skills and development of commitment and professionalism in selling

Selling Skills and Selling Strategies

Selling and Buying Styles The buying style vary depending upon the buyers capability to pay, the qualtity of purchase, the buyers ability to take risk,the bargaining power of buyer in market, and competitive landscape in the industry. People who are adventurous and have high risk capital are the overnight buyers. These buyers are the innovators in market place, who mostly buy on impulse and consider nonfunctional reason for making a choice

Selling Skills and Selling Strategies

This set of people are followed by another group who accept new product and innovations after observing in innovators using it. In B to B selling also the buying styles are different. Many govt. organization always go for buying the lowest priced commodity irrespective of quality level, where as quality conscious organizations may not give much importance to the price factor in buying situation

Selling and buying styles

9
Concern for the customers
(1,9) People Oriented

(9,9) Problem Solving Oriented I consult with the customer so as to inform myself of all the needs in his situation that my products can satisfy. We work towards a sound purchase decision on his part, which yield him the benefits he expects from it.

I am customers friend,

8 7

6
5 4 3 2

I want to understand him and respond to his feelings and interests so that he will like me. It is the personal bond that leads him to purchase from me. (5,5) Sales technique Oriented
I have tried an effective routine for getting a customer to buy. It motivates through a blended personality and product emphasis

(9,1) Push the product Oriented I take challenge of the customer and hard sell him, polling on all the pressure it takes to make him buy

(1,1) Take it or Leave it

I place the product before the customer and it sells itself as and when it comes.

Concern for sale

Selling skills
Problem solving skills Effective communication skills

Selling Skills

Listening Skills Negotiation and bargaining skills Conflict management and resolution skills

Selling Skills
1. Interpersonal skills, such as knowing how to cope With and resolve conflicts. a. Listening b. Empathy c. Optimism d. Perceptive observation

Selling Skills
2. Salesmanship skills, such as knowing how to make a presentation and how to close a sale. a. Adaptability b. Consultive selling c. Negotiation and questioning d. Salesperson cues and Communication style

Selling Skills
3. Technical skills, such as knowledge of product features and benefits, engineering skills, and the procedures required by company. a. Customer Knowledge b. Client evaluation cues c. Buyers/Seller relationship Management d. Competitive Information

Negotiation Skills

Negotiation occurs when someone else has what you want, and you are prepared to bargain for it and the vice versa. Successful negotiation is an attempt by two parties to achieve mutually acceptable solutions, which does not result in winner and a loser. The core skill required for successful negotiation includes the ability to define and prioritize a range of objectives, the ability to explore a wide range of options, the ability to prepare well and interactive competence

Negotiation Skills
Negotiation Strategy 1. Separate the people from the problem It is natural that emotions will be entangled with the objective issue in a negotiation when the parties are involved in face-to-face bargaining. Ineffective bargaining may occur when the main issue of negotiation are framed in terms of the personalities involved rather than the interests of both the parties

Negotiation Skills
2. Invent options for mutual gains By options we mean possible agreements or pieces of possible agreements. Inventing options for mutual gain involves searching for a larger pie rather than arguing over size of each piece. Developing options require innovative thinking, the brainstorming sessions that help to identify shared interest.

Negotiation Skills
3. Insist on objective criteria When the opposing negotiator is intransigent and argues over his position rather than his interests, a good strategy is to insist that the agreement must reflect some objective criteria independent of the position of either side.

Negotiation Skills
Step to their side In many instances people do not negotiate rationally. It is sometimes worth trying worth trying by salespeople also. To cope with the irrationality of the counterpart, the sales manager has to be all the purposeful and rational. So before engaging in principled negotiation, a favorable climate should be developed, so that the other party`s anger and fears are removed.
4.

Negotiation Skills
5. Reframing rather than rejection The next step is to focus on each party`s interest. Instead of rejecting the other party`s viewpoint outright, which make them more stubborn with those ideas, the sales manager can direct their attention to the problem of satisfying each party`s interst.

Selling Skills Scale

Interpersonal Skills 1. Ability to express yourself nonverbal.

2. Ability in general speaking skills.

3. Awareness and understanding of the nonverbal communications of others. 4. Ability to control and regulate nonverbal displays of emotion. 5. Ability to present yourself socially, possibly through acting. 6. Ability to manipulate others to control the situation. 7. Awareness and understanding the verbal communications of others

Selling Skills Scale

Salesmanship Skills 1. Ability to prospect for customers. 2. Ability to qualify prospects.

3. Ability to open relationships with prospects.

4. Ability to close the sale. 5. Ability to present the sales message. 6. Ability to service the account.

Selling Skills Scale

Technical Knowledge 1. Knowledge of customers' markets and products. 2. Knowledge of your own company's procedures. 3. Knowledge of competitors' products, services, and sales policies. 4. Knowledge of product line, including product features and benefits. 5. Knowledge of customers' operations, such as store and shelf layout, and employee training. 6. Imagination in supplying products and services that meet the customers' needs.

The Selling Process

Objectives To learn about the basic steps in the selling process To understand the needs of a prospect and the method of prospecting To take not of various approaches to sales presentations To learn various methods of handling objections To apply various methods of closing a sale To understand the concept of systematic selling

The Selling Process

Process The selling process is defined as a process by which a salesperson identifies and locates the prospects, separate the prospects from suspects, approaches them and makes a sales presentation, handle the objections, and close a sale The selling process can help a salesperson to identify the customers needs, arouse their interest in product or brand, and motivate them to make a purchase decision

The Selling Process

It is assumed to be a chain process that a salesperson ha s to follow step by step to have a synergistic effort. Each of these step can be called a sales proposition, it is a n orderly process in which a salesperson can respond to the decision making process of the customers and close a sale to the end of the process

Stages in the selling process

Preapproach before the interview
Handling Customer Objections

Pre-sale preparation

Prospecting

Approach to the customer

Follow up action

Closing the Sale

Sales Presentation

The selling Process

1.Pre-Sale Preparation In this stage , the salesperson prepares himself with Adequate knowledge about the product he will sell, The company he will represent, The market in which he will sell, The competitors products and prices, The category of customers or segment he will target, The various selling techniques he will apply during the sale

The selling Process

Product Knowledge It includes knowledge about the quality of product, SKUs, price point at which they will sold to various customers, the USP, Value proposition etc. If the sales person fail to supply the relevant information the competitor may take advantage of the situation and make the deal Sales mangers should train the salespersons for acquiring adequate product information

The selling Process

The

sales person should have knowledge about type and timing of various consumer promotion tools like coupons, contests, refund offers, price pack and premiums They should have adequate knowledge about transportation charges, they can be FOB( free on Board)

The selling Process

A salesperson has to collect information about The competitive environment The structure of industry Bargaining power enjoyed by each of the force in business

Prospecting
Successful prospecting
50 potential prospects 15 Qualified prospects 6 Interviews 1 sale 50 potential prospects 25 Qualified prospects 17 Interviews 7 sales

No
Successful prospecting

Yes

Prospecting

Prospecting is the process of identifying potential buyers who have a need for the products and services offered by the company, the ability to pay for it, and the adequate authority to buy it. A successful salesperson always efficiently utilizes the selling time by distinguishing the prospects from suspects. Suspects have no potential demand for the goods at the point of probe in selling process. However, a proper follow-up many a time results in converting the suspects into prospects

Prospecting
A salesperson identifies three sets of customers at the stage of prospecting a) Lead Customer-customer with a desire and need to purchase the product but purchasing capacity not known A sales person needs to screening skills to identify , their buying power, financial transaction capacity The process of collecting customer data and checking lead parameter to make them quqlify as prospects are refered as prospecting

Prospecting
b)Prospect Customers The prospects are buying units who have a current demand for the product and can get substantial benefits through the acquisition of the product. A salesperson `s job in this case is to take prospects higher in the decisions process Salesperson identifies the current stage of decision making of the customers and then takes them higher in decision making process for realizing a sale

Prospecting
c) Qualified Prospects The qualified prospects are those who have a need for the produt or services in offer and have the ability to buy them, but need further persuasion about product delivering the desired level of satisfaction The prospect in advance stage of decision making become a qualified prospects for the salesperson. A good prospecting helps the salesperson to differentiate between prospects and suspects among the lead prospects so that his energy and efforts can be used for achieving higher sales

The Process of Prospecting

Sources of prospects can be satisfied customers who are ready to give referral, websites, newspapers and technical publications, trade association membership directory, company enquiry registers, suggestions from salespeople in other territories, and the company selling plans The company selling plan includes sales forecast for specific industry in industrial market

Process of prospecting
Identify and define prospects

Search for sources of potential accounts

Qualify the prospects from the suspects

The Process of Prospecting

1.Identify and define the prospects In this process salesperson has to identify the attributes and features of the prospects, The urgency of the need of product, Ability to make payment, Expectations and practices of credit payments, Authority and department involved in making the purchase decision.

The Process of Prospecting

2.Search of Sources of potential accounts a) Primary sources- it include the immediate groups like family, friends, relatives, suppliers of goods and services, employees, business associates, shareholders, and customers of the firm. b) Secondary Sources-it includes those from which lists of prospects are generated through a deliberate process , such as surveys, replies to queries in the past, enquiries generated through ad , lists of customers published by trade associations, the directorate of commercial intelligence in the govt. at centre and state level.

The Process of Prospecting

3.Qualify the prospects from suspects In this process salesperson distinguish the prospects from the suspects and then determine the probable requirement of the prospects. It is the process by which the salesperson ranks the prospects on the basis of their payoffs. The payoff or expected value is the probability of the prospect buying multiplied with magnitude ofsales from the prospects

The Process of Prospecting

It is a process of estimating the probabilities and sales potential The salesperson will like to classify the prospects at the beginning to effectively utilize is selling time, his relationship building strategy, and also his effectiveness in handling customer objections. A salesperson will classify a lead as a prospect when the lead have a reasonable probability of buying, has sufficient needs to justify a profitable sale, has the financial resource to buy and cane classified as eligible to buy.

Methods of prospecting
Cold canvassing

Endless chain customer referral Prospect pool Centers of influence Non competing sales force Observation Friends and acquaintances Lists and directories Direct mail Telemarketing Trade shows and demonstrations

Pre-Approach Before Selling

1. 2. 3. 4.

Determination of call objectives Development of customer profile Determination of customer benefits Determination of sales presentation

Pre-Approach Before Selling

Before the salesperson approaches the customers for a sale, it is necessary to develop a sales strategy by collecting customer data and combining them with product attributes as fit for satisfying the individual and organizational needs. The more a salesperson become knowledgeable about the customer`s behavior and his requirement, he is better equipped to do a sales presentation.

Pre-Approach Before Selling

Different personality elements may be found in customers like price sensitiveness, varied level of intellect, capacity and propensity to bargain, level of self indulgence, and a salesperson has to develop different selling strategies for each type of customers. A pre approach selling strategy for each prospect requires a clear understanding of his personal characteristics and needs, and how a salesperson`s product and service will satisfy his need

Pre-Approach Before Selling

The need- benefit match is the initial process of developing a sales strategy. The salesperson contacts the customers and uses the generalized need identified beforehand as an induction method to develop a positive attention towards the product. The selling plan of the company also helps in building up the selling strategy because it expalins the call norms and objectives, additional benefits, and differential advantage to be offered to the customers and the suggested closure of the deal with various rallying pricing points corresponding to customers demand and tenure of relationship with the firm

Pre-Approach Before Selling

The

next stage of building the sales strategy is to develop the call objective Call objectives explain the action that a salesperson wants the prospect to take.

Pre-Approach Before Selling

Benefits 1.The salespeople buildup a high level of self confidence before meeting the customers 2. They are able to develop an atmosphere of goodwill and trust with the customers 3.This will help in creating an image of professionalism in the eye of customer 4.This increases the scope of achieving higher sales because people are prepaid for making a sale

Approach to customer

This step is crucial because in this step the salesperson tries to get customer`s attention and generate interest in him for the sales presentation. In the cold calls, the salesperson should try to impress the customer with manner rather than sales talk. The goals of any sales approach can be summarized as getting the prospect`s attention, removing any inhibitions, gaining the prospect`s respect and confidence, probing for the benefit most wanted by the prospect, and arousing their interest for hearing the presentation

Approach to customer
There are various approach used for this purpose a)Customer benefits approach In this approach a salesperson would like to begin by saying' would you like to save 20% by buying of this particular line of adhesives that also save the average wear and tear by 10%` b) The referral Approach-it is valid when the prospect values the status and opinion of the referee. c) Introductory approach- in this sales person introduces himself and the company and in the product approach the salesperson hands over the product to the consumer for generating interest and attention

Sales Presentation
In this process the salesperson presents his product and services before the prospects and make effort to create and modify their interest into sales realization for the company. In presentation sales people should always try to link the features and attributes of the products with customer needs so that the gap or conflict and level of customer objection can be reduced in the subsequent stages

Sales Presentation

Presentation should be always be made by keeping in mind the level of customer interest, nature of the product, and time available for the presentation and for leading the prospect in next stage If the customer agrees with the opening idea, the salesperson goes for a trial closure. If the customer looks for more information and probe furthur, the salesperson delivers additional benefits; if the customer is indifferent and the response cannot be classified, the salesperson should probe for further information

Sales Presentation

If the customer has some doubt regarding the product performance and delivery of brand promise, a proof should be demonstrated to the customer during the presentation. Objections of the customers should be classified as minor or major, and the salesperson should wait for customer response at each stage before moving to the next stage Probing helps in confirming the fit between the stated need and promised brand benefit.

Sales Presentation
Approaches to Sales Presentation A normal presentation style covers Summarization of the situation Statement of the idea Description of how the idea works Statement of promised benefits Recommended action of buying

Sales Presentation
There are three approaches used during the sales presentation 1.Attracting Customer Attention
2.Creating Interest 3. Arousing desire and conviction building

Sales Presentation
1.Attracting customer Attention It involves understanding the buyer`s mind and thought, and placing the product information so that it matches their mind The interest factors include the customers choice and preferences, personal problems, and expectation from the buying This helps the salesperson to create a positive impression that the salesperson is sensitive to the customer issue and also it helps in doing a survey whether the customer really needs the product or is on a window-shopping spree.

Sales Presentation
2.Creating interest People show in interest in things that help to solve their problems. Creating interest approach is classified further as Benefit Approach Opinion Approach Factual Approach Praise and compliment Curiosity Approach Article feature approach Dramatic Approach Premium Approach `I am here` Approach Visualization Approach Information Approach Problem Solving Approach

Sales Presentation
3.Arousing Desire and Building Conviction Customer interest takes the form of desire when The customer agree that he is in need of a product. His emotional needs will be satisfied by the buying motive The advantage of using the product have influenced his mind The salesperson has been able to generate the consumer confidence in the product

Sales Presentation
The

salesperson has to identify the consumer needs unmet by the existing product use and the sources of dissatisfaction sources make it clear that his product will satisfy his need better than the curent product used by the consumer and then make it clear to the consumer about the advantage and benefits he will receive by using this product

Salesperson

Sales Presentation

The salesperson will be able to generate conviction when the customer is convinced by his talks and has full confidence in the salesperson`s words. Such conviction can be built up only when the salesperson is able to give satsfactory answer to the complaints and objection raised by the customer. The salesperson will be able to build conviction by allowing inspection and demonstration of the product, by the offer of warranty, by giving faccts and arguments, by stating the goodwill and brand image of seller and by offering a right to consumers to claim compensation against damages

Sales Presentation
Method of Presentation
1.

2.
3.

Canned Presentation Organized Presentation Tailored Presentation

Sales Presentation
Canned Presentation It is prepared by company, and there is little scope of modification for each prospect It is based on the research and designed by experienced people in the organization. New sales people can use the presentation that addresses all the relevant issues for the customers. This type of presentation helps in building the confidence of the new salespeople This kind of presentation sounds very mechanical, discourages the prospects participations, and is non enthusiastic in nature
1.

Sales Presentation
2. Organized Presentations In this salespeople have enough scope to word the presentation, but on the line of company policy and systems. This brings more flexibility and encourages participation of the prospective customers, and overall structure is as per company guide lines. The presentation can be developed on the basis of information collected from field search, which is not available with individual salesperson

Sales Presentation
3. Tailored Presentation It is developed from the detail evaluation of a prospective customer`s business and is specifically designed for that specific customer. This is most common method in B to B business selling This method is also applicable in the case of reseller like retailer and wholesalers

Selling Process in HUL

Planning Essentials of TSO

1.
2. 3. 4. 5.

Target Planning PJP Planning Coverage Planning Merchandising Planning Planning to make an effective sales call

6.

Planning Essentials of TSO

1.Target Planning Based on Ops Plan Break down the JC target RS wise- RSSM wise- Beat wise and then finally outlet wise for different RSSM Before starting the day, check whether you have plan for the day both in the terms of secondary sales and TLSD Takes SKU availability for the day to meet the day target

Planning Essentials of TSO

2.PJP Planning(Market Planning) To have a clear idea on your priorities Optimum utilization of time at the least possible cost Which are the market you need to visit For how many days you need to visit No. of call to be made in a JC No. of call to be made in a beat construct Minimum No. of productive calls in a bear TLSD

Planning Essentials of TSO

3. Coverage planning a) Effectiveness Planned Calls for the day : 40 Total Calls Made actual : 30 Productive Call : 20 Productivity : 20/40 = 50%, Effectiveness

Planning Essentials of TSO

b) Efficiency Planned Calls : 40 Total Calls Made : 30 Productive Calls : 20/30 = 66.6%. THIS IS EFFICIENCY If we focus on effectiveness, most of our problems in the market place in the terms of achieving targets will be sorted out automatically

Planning Essentials of TSO

Therefore your coverage plan should focus on Sequential visits of outlets Complete the beat of the day effectively Update trade service card during each call Be channel specific Shelving and sachets to be put up while making the sales call Use RSSM effectively of merchandising/shelving while making a call

Planning Essentials of TSO

After you have planned for all the essentials, it is necessary that you look for these elements also, so that your day become more effective Trade service Card Beat Card Merchandising Kit Stock Availability Product sample for demonstration

Planning Essentials of TSO

Once you have finished all that, you are set to visit the market. Before entering each call,plz do the following Check Cumulative performance and review the secondary target for this outlet What has been TLSD target and what has been achievement What are the focus packs and what is my merchandising plan

Planning Essentials of TSO

It is also necessary for you to understand the following before entering into an outlet Retailers name Have I taken care of the commitments made earlier and what have I done towards it? Likely reaction of the retailer/dealer If there are customers in the shop- what do I do?

Planning Essentials of TSO

The Power of One JUST ADD- ONE LINE per productive call JUST ADD- ONE PRODUCTIVE CALL per day What happen? Assume the cost of one line is Rs 100/Assume that no. of productive calls is 30 Then.by just adding one line, your value increase to Rs. 100/- x 30= Rs 3000/-

Planning Essentials of TSO

Now adding one more productive call-say value comes to Rs. 300/- then the increase in sale for the day is Rs 3,300/There are 24 working days in a JC and hence your increase per JC= 24X 3300= Rs.79,200

The 7 Vital Sales Tools

1.Trade Service Card 2.Trade Briefing Folder 3. Beat Card 4.Ops. Plan document 5.Samples for demonstration 6.Merchandising templates 7.TSO pass book

The 7 Vital Sales Tools

1.The Trade Service Card Which is normally called as a `Janam Kundali`(Life History) of the market. You get to understand the trends in the market place Helps you know areas of growth, and improvement Reminds you of lines- in a Sales calls

The 7 Vital Sales Tools

2.Trade Briefing folder Helps you picurise the product to the retailer Helps you talk the Sales Story in structured manner Create an Audio-visual impact while presenting

The 7 Vital Sales Tools

3.Beat Card Give you detail of beat construct Gives you inputs on which are the outlets to concentrate on and which packs to focus on Help you analyze trends

The 7 Vital Sales Tools

4.Ops Plan Gives you a detailed picture of the the Schemes of the JC Talks about QOC packs and where to focus on 5.Samples for demonstration What is seen is 70% more understood that what is told Easy to you to discuss features and thereby benefits

The 7 Vital Sales Tools

6.Merchandising Templates Talks about the norms to be followed in particular type of outlet Gives you details on: -what product/ what SKU - What quantity - Where to merchandise 7.TSI Pass Book A one stop information bank which gives you the picture of your entire territory Gives you trends Helps you track your performance better

The 7 Steps of the basic Call Procedure

Before entering the Outlet Salutation Merchandising & Stock Check Always Start with a Promoted Pack Rigor in Selling SKUs/lines

Trade Grievance Handling & Comp Monitoring

Salutation
Greet

the retailer by name Introduce yourself to make sure the retailer knows who you are - pronounce your name - the organization you represent - The PC you represent

Salutation
Understanding 4X20 Rule 1. The First 20 feet If you walk confident to an outlet, the shopkeeper feels talking to you You tend to pass on the positive energy you carry and this helps in making the sale better 2. The First 20 Seconds Look at the shelves and see what is happening in the outlet, rather than playing around with the products on the rack or just standing there

Salutation
3.The First 20 cm. It says smile, because smile increases your face value and take you miles ahead 4.The First 20 Words Never ask negative questions. Don`t ask question like. How is sale? How is season etc which will normally evoke a negative response

Merchandising and stock Check

1.
2. 3. 4. 5.

Merchandise effectively as per norms(visibility templates) This will help you to spend time in the outlet Check stock when you are in This will help you to build sales story Sudden change in competition stocks tells you the condition of the outlet

Merchandising and stock Check

When you do merchandising and stock check- ensure Is the stock now face up? Have you ensured product hygiene? Shelf arrangement as per category guidelines and merchandising templates?

Always start with a promoted Packs

Promoted

packs generate interests It brings him to a buying mood Helps open new outlet when you start with promoted packs do FAB ing F= Features A= Advantage B= Benefits

Always start with a promoted Packs

Feature A feature describe characteristics of your product or service E.g. this JC you have special offer on LuX a scheme of 8.33% i.e. 12+1 Advantage How your promotion is better than others Benefits Why? Easy to sell Because? profitble

Closing Techniques
1.Direct Proposition Techniques This is what I am sending 2.Everest Technique You tell him that you are selling in 2 cases, and then retailer agree to casees 3 .Push Acceptance

Sales Organization

Principles of Organization Design

Organizational structure should reflect a marketing orientation Organization should be built around activities, not around people Responsibility and authority should be related properly Span of executive control should be reasonable Organization should be stable but not

(Figure 4-2)

Line-and-Staff Sales Organization

Chief Marketing Executive
Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Sales Analysis Manager

Salespeople
Line authority Staff advisory authority

(Figure 4-3)

Functional Sales Organization

Chief Marketing Executive

Advertising Manager

Marketing Research Manager

General Sales Manager

Credit Manager

Sales Promotion Manager

Salespeople
Line authority Staff advisory authority

(Figure 4-4)

The Horizontal Corporation

Product Design and Development Team
Customer Research Customer Analysis Design Engineering

Manufacturing Team
Systems Engineering Production Quality Control

Strategic Planning Team

VP Strategic Planning VP Finance & Information Chief Operating Officer Human Resources Administration

Customer Support Team

Information Training Service Research

Customer Fulfillment Team

Pricing and Promotion Sales Distribution

(Figure 4-5)

Geographical Sales Organization

Chief Marketing Executive
Advertising Manager
Marketing Research Manager

General Sales Manager

Sales Promotion Manager

Sales Analyst

Western Regional Sales Manager 4 District Sales Managers Salespeople each with own territory

Eastern Regional Sales Manager

4 District Sales Managers

Salespeople each with own territory

(Figure 4-6)

Sales Organization with ProductSpecialized Sales Force

Chief Marketing Executive

Advertising Manager

Marketing Research Manager

General Sales Manager

Sales Promotion Manager

Customer Relations Manager

Sales Manager Product A Salespeople Product A

Sales Manager Product B Salespeople Product B

Sales Manager Product C

Salespeople Product C

(Figure 4-7)

Sales Organization with ProductManagers as Staff Specialists

Chief Marketing Executive

Advertising Manager

Marketing Research Manager

General Sales Manager

Manager Product A

Manager Product B

Manager Product C

Assistant Sales Manager Salespeople

(Figure 4-8)

Sales Organization Specialized by Type of Customer

Chief Marketing Executive

Advertising Manager

Marketing Research Manager

General Sales Manager

Sales Promotion Manager

Customer Relations Manager

Sales Manager Transportation Industry Salespeople

Sales Manager Steel Industry

Sales Manager Petroleum Industry

Salespeople

Salespeople

(Figure 4-9)

Organizational Options for the 2000s

Strategic account management

Independent reps

Organizational Options for the 2000s

E-commerce and telemarketing

Team selling

The Relationship Between A Sales Team and a Buying Center

Organization al selling center
Salesperson Exchange Process Purchasing Agent

Information Marketing Sales Manufacturin g R&D Engineering Problem Solving Negotiation Friendship, Trust Product/Services Payment Reciprocity

Organization al buying center

Purchasing
Manufacturin g R&D Engineering

Identify prospective customers Screening, qualifying leads Sales solicitation: small customers, re-orders Order processing Product service support Account management Customer relations Competitive reporting Expense reporting

Uses of Telemarketing

Procedure for re-designing sales territories

Build-up Method The basic territories are set up by building up from the control units. The objective to be achieved is to equalize the workload of salespeople 1. Decide call frequencies It means how many times a customer should be visited by company`s salesperson per year. The factor that influence call requency are the customers sales/ profit potential, cost of visiting the customers, buying behavior of the customer, and the nature of the product or service offered.

Procedure for designing sales territories

District-X District-Y Call No. of No. of No. Of frequenc No. of call call customer Custome y per customer per per s r type month s year year A B c Total 4 2 1 3 7 20 30 144 168 240 552 4 8 28 40 192 192 336 720

Procedure for designing sales territories

2.Calculate the total no. of calls in each control unit. Total no. of sales call needed in districts x and y are 552 and 720 respectively 3. Estimating workload capacity of a salesperson A salesperson`s normal workload capacity is estimated by multiplying average no. of calls a salesperson can make in a working day by the no. of working day in a year E.g. the average no. of calls a salesperson make in a day work out to be 5 based of average travel time of 30 minute per call, the average length of one hour of each call, and 8 hours per day working. If the no. of working day in a year is 250 then estimated workload capacity for the salesperson per year work out to be 1250 calls( 250X 5)

Procedure for designing sales territories

4.Make tentative territories In this step, the company should group adjing control units until yearly no. of call needed in those control units equal th total no. of calls a salesperson can make e.g. district x and y together need 552 + 720= 1272 visits per years which is almost equal to 1250 calls of normal workload of a salesperson