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SALES & DISTRIBUTION MANAGEMENT SESSION 2

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

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SALES & DISTRIBUTION MANAGEMENT SESSION 2

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  1. SALES & DISTRIBUTION MANAGEMENT SESSION 2

  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?

  3. 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

  4. 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.

  5. SALES MANAGEMENT RESPONSIBILITY 1 TO THE ORGANIZATION FOR a sales volume b profit contribution c business growth 2 TO THE CUSTOMER FOR a timely supply b support c service 3 TO THE SOCIETY, FOR a demanded goods at proper price b ethically right products c environmentally friendly products the proper blend amongst the three factor is to be achieved

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

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

  8. SALES MANAGEMENT FUNCTIONS 1 Situation Review a where am I now? b how did I get here ? c where do I have to go ? d how can I reach there ? 2 Setting Quantitative Performance Standards 3 Gathering and Processing Data on Actual Performance 4 Evaluating Performance 5 Action to correct controllable variation 6 Adjusting for Uncontrollable variation

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

  10. PERSONAL SELLING

  11. 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 BUYER Interaction SELLER

  12. 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.

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

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

  15. 1 THE ‘AIDAS’ THEORY A Attention I Interest D Desire A Action S Satisfaction

  16. 2 SITUATION 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

  17. 3 ‘BUYING FORMULA’ THEORY Need or Problem Solution Purchase Satisfaction

  18. SALES APPROACHES • AIDA • Xerox’s SPANCO approach • Huthwaite Research Group / Xerox • S P I N approach

  19. THE SELLING FUNCTIONS THE STRUCTURE A Suspecting B Prospecting C Gaining Appointment D Opening the Sale E The Business Meeting F Objection Handling G Closing SELLING A TANGIBLE PRODUCT SELLING AN INTANGIBLE PRODUCT (SERVICE) SELLING A SYSTEM

  20. THANK YOU

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