Introduction to Sales Management

CHAPTER 1: INTRODUCTION TO SALES MANAGEMENT

Sales Management- originally referred as systematic management tool used for directing sales force personnel

Personal selling- consists of face-to-face experience and group’s purchase choice involving a customer and vendor via video teleconference or web

The responsibilities associated with controlling personal selling contain:

• Setting goals
• Coordinating the workforce
• Enrolling, choosing, coaching, and paying sales staff
• Analyzing the efficiency of individual employees

Sales Staff can generate client value in numerous ways:

• Determining innovative methods to client difficulties
• Easing the client buying procedure
• Following through right after the sale

Relationship selling- is a process of creating ties to clients structured on a salesperson’s attention and dedication to client needs

7 steps of selling:

1. Prospecting- is the process by which salespeople search for new customers and probable customers
2. Pre- approach- occurs on virtually every sales call. Include talking with gatekeepers
3. Approach- consists of the strategies and tactics employed by sales people when gaining an audience and establishing initial rapport with the customer
4. Presentation- is the main body of the sales call and should occur after the salesperson has determined the needs of the customer
5. Overcoming objections- can be generally defined as customer questions and hesitancies about the product or company
6. Close- defined as the successful completion of the sales presentation culminating in a commitment to buy the good or service
7. Follow-up - to make sure the the customer is happy with the product/service and that everything that was promised is being delivered

Personal Selling Process:

Step 1: Prospecting and Qualifying

Step 2: Pre- approach

Step 3: Approaching the customer

Step 4: Presentation Step making the Sales Presentation

Step 5: 3 types of Sales Presentation

• Prepared Sales Presentation
• Need Satisfaction Approach
• Selling Formula Approach

Functions of Managing the Sales Staff:

• Planning and goal setting
• Organizing
• Motivating
• Controlling his subordinates

Personal Selling of Approaches:

• Stimulus Response Selling- uses structured questions and statements which act as stimuli for the customer and sales person get the desired response in their favor
• Mental State Selling- also uses structured question to lead the buyer to different mental states
• Need Satisfaction Selling- first of all the problem is identified then sale is closed either with positive response form the customer or negative
• Problem Solving Selling- sales person need to define it to the customer and then tell him all the alternatives even of competitors to solve the problem
• Consultative Selling- both buyer and seller works with collaboration

Advantages of personal selling:

• Two-way form of communications
• Most effective promotional method for building relationships with customers particularly in the B2B market
• Most practical promotional option for reaching customers who are not easily reached through other methods

Disadvantages of personal selling:

• Promotinal method is misunderstood
• High cost- includes high cost-per-action and training costs
• Personal selling is not for everyone

Types of Selling Roles:

• Order getters
• Order takers
• Order influencers
• Sales support

(Order getters new business development)

Positions in which the salesperson is actively engaged in using their skills to obtain orders form customers: