Transcript SM-2 - Product Management

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
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 force management -
sales related activity
personnel related
activity
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.
SALES MANAGEMENT RESPONSIBILITY
1
2
3
TO THE ORGANIZATION FOR
a
sales volume
b
profit contribution
c
business growth
TO THE CUSTOMER FOR
a
timely supply
b
support
c
service
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
SALES MANAGEMENT OBJECTIVES
1
2
3
to generate a sales volume
to contribute to profits
continuous growth
They are not fully responsible but they make
the major contribution.
Top Mgmt delegates
Mark Mgmt delegates
to
to
Marketing Mgmt
Sales Mgmt
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
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
Gathering and Processing Data on Actual
Performance
Evaluating Performance
Action to correct controllable variation
Adjusting for Uncontrollable variation
3
4
5
6
SALES CONTROL
•
Informal Control over
Policy Formulation and Review
•
Formal Control over
Sales Volume
BUDGETARY CONTROL
PERSONAL SELLING
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
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.
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
THEORIES OF SELLING
Is selling an art or a science ?
In a survey
46 percent
8 percent
46 percent
of 173 marketing executivesselling - an art
selling - a science
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
1
THE ‘AIDAS’ THEORY
A
I
D
A
S
Attention
Interest
Desire
Action
Satisfaction
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
3
‘BUYING FORMULA’ THEORY
Need or Problem
Solution
Purchase
Satisfaction
SALES APPROACHES
1 AIDA
2 Xerox’s SPANCO approach
3 Huthwaite Research Group / Xerox
S P I N approach
THE SELLING FUNCTIONS
THE STRUCTURE
A
B
C
D
E
F
G
Suspecting
Prospecting
Gaining Appointment
Opening the Sale
The Business Meeting
Objection Handling
Closing
SELLING A TANGIBLE PRODUCT
SELLING AN INTANGIBLE PRODUCT (SERVICE)
SELLING A SYSTEM
THANK YOU