Transcript No Slide Title

SETTING PERSONAL
SELLING OBJECTIVES
Obj set in consultation with Marketing Department
Some Examples of Personal selling objectives:
Maintain existing customer base
Obtain 20% new customers
Motivate Dealers- maintain 1 month stocks
Keep existing customers informed of new Product
Provide technical service within 48 Hrs of call.
Train Middlemen (dealer) on Customer Care
Case on Personal Selling Objective- Case-1
A credit card company is Planning to set it’s personal selling objectives based
on the following feedback it received from the sales department and the DSAs
of the company.
Average customers are not aware of the complete product benefits of credit
cards.
The DSA,s do not have skilled and trained Manpower.
The conversion % in the assignment base chosen has been just 5%. The
industry standard is 15% conversion.
The customer base of this company ranks within the last three among the 10
players in this business.
Based on the above please prepare personal Selling Objective for this
organization
What is Market Potential ?
Estimate of maximum possible Sale opportunity in
the Market.
What is Sales Potential?
•The possible sales which can be achieved out of
Market Potential
What is Sales Forecast?
Estimate of Sales in terms of units or value in given
period of time
The above all is based on a given Marketing plan
and inputs
Market Motivation
Before fixing the forecast answer the
following
•Why do people buy?
•Why people do not buy?
•How best to present product (the sales pitch)
•Relative effectiveness of different selling appeals
•Relative appropriateness of promotional methods
Methods of Forecasting
Jury executive opinion
•Top executive estimate probable Sales
•An average is calculated
•The rationale and input material is shared.
Discuss strength & weaknesses
The Delphi Method
•Developed by Rand Corporation
•Similar to Jury Executive opinion
•But done based on structured questionnaire
•Eliminates majority opinion
Discuss Strengths and Weaknesses
Poll of Sales Force Opinion
•Each Sales personnel does an forecast of his
territory or assignment base.
•Modifications are made by Mgt
Discuss Strength and Weaknesses
Projection of Past Sales method
Add on based the current years sales performance
Could take past several years of actual performance
Next year Sales = Current Year Sales X
Example: ( figs in units)
Current Year Sales
______________
Last year Sales
110
Next year Sales = 110 X
_______
90
Next year Sales =
134
Generally is around 15% of the past years performance
Time Series Analysis
Similar to past Sales Projections but takes
following into consideration
•Long Term trends
•Cyclical Changes
•Seasonal Variations
•Irregular Fluctuations
Survey of Customer Buying plans method
•Seek customer survey
•Seek their plans to buy
•Then estimate forecast
Discuss Strengths and Weakness
EFFECTIVE SALES
EXECUTIVE
Traits of a Effective Sales Executive
•Ability to set personal goals
•Matching it with org goals
•Splitting the goals to set of activities to perform
•Review the activities and modify if needed
•Effective Time Management
•Ability to plan daily and implement
•Ability to exhibit skilled leadership qualities
Relationship with Top Management
•Should exhibit initiative and personal drive
•Keep Top Mgt informed on progress
•Need to accept responsibility
•Should not be indispensable
•Effective Problem solvers and decision makers
•Keep Management informed on decisions and
developments
•Report promptly
•Do not relay on rumors
•Do not seek help on decision making too often,
hence diluting authority.
Relation with Product Manager
•Provide vital inputs on product performance
•Product jointly decided by Mark, Finance,Production &
Sales Dept
•Periodic feedback on Product for modification
Relation with Promotion Mgt
•Provide inputs for Promotional Strategy
•Help in implementation
•Keeps sales team informed on the promotional Plans
•Takes advantage of the A & P investment.
Relationship with Pricing
•Decided jointly by Marketing and Sales
•Involves Finance, Production, Legal functions etc
•Should be aware of competitor’s Pricing
•Should have a feel of customer acceptability
•Implementation of pricing
SALES RELATED
MARKETING POLICIES
Product Policy- What to Sell
Distribution policy-Whom to Sell
Pricing Policy- What price to sell
The degree of authority for above varies in
different companies
PRODUCT POLICY
Product line Policy
•Changes in product offering
•Re organizing product / line simplification
•Re organization of Product line / Diversification
•Ideas of new Product
•Appraisal of proposal of New Products
Product design Policy
Product Quality/ Service Policy
Guarantee Policy
DISTRIBUTION POLICY
Policy on Marketing Channels
Channel wise sales volume potential
Channel wise net profitability
Policy on Distribution Intensity
Mass distribution
Selective Distribution
Exclusive agency distribution
Case-II Sales Management
Product Related Policy:
A Multi Product and Multi Brand company has eight brands
in the product range of Toilet soaps.
The contributions of various products are as follows:
PRODUCT A
PRODUCT B
PRODUCT C
PRODUCT D
PRODUCT E
PRODUCT F
PRODUCT G
PRODUCT H
% of Profit Turn over
contribution
9%
8%
11%
9%
14%
12%
6%
18%
2%
11%
-4%
22%
15%
16%
-2%
4%
Discuss on options of Product Line Policy
Policy on Distribution Intensity
•Mass distribution
•Selective Distribution
•Exclusive agency distribution
PRICING POLICY
Competition Related Pricing
Matching the competitor’s pricing
Pricing above competitor
Pricing under Competition
Pricing related to costs
Full cost pricing
Promotional Pricing
Contribution pricing (covering variable cost)
Buyer Based pricing
•Based on Volume
•Frequency of purchase
•Geographical location of customer
List Pricing (Regulated Pricing for
middlemen)
•Recommended & control dealer price
•Leads to customer satisfaction
•Helps fight competition uniformly
•Consider freight, Govt levies, taxes and other
costs of dealer
Policy on Discounts
•Wholesaler, Retailer discounts
•Turn over discount
•Selective product discount
Geographical pricing Policy
•FOB ( Free on Board) – (ex works,factory)used to heavy products industrial products.
•Delivered prices ( postage stamp pricing)
Policy on Price leadership
Industry leader sets price and other follow
Example: egg, cement, petrol etc
Product line Pricing
Multiple product pricing structure
Planned enhancement
Mutual advantage pricing
Competitive bidding policy
Closed tenders
Open tenders
PERSONAL SELLING
STRATEGY
•Kind of Sales force
•Size of the Sales force
•Appropriate deployment
Competitive settings and personal
selling strategy
•Pure Competition
•Monopolistic Competition
•Oligopolistic Competition
•No Direct Competition
Pure Competition
•Many players
•No specific player dominates market
•No single player influence demand & supply Marjory
•No Govt Regulations on pricing or supply
This hardly exists. If it does-personal selling strategy
should be:
•Better Service to the customers(Presale & Post Sale)
•Organizational efficiency
•Cost Management
Oligopolistic Competition
•Smaller groups of companies join together
•They know each other
•Makes difficult for new entrants
•Competitors activities are closing watched
•Personal selling helps in maintaining dealer cooperation, servicing distribution network
•Personal selling effectively uses promotional
strategy
No Direct competition
•No Direct Competition, but have in direct
competition through substitutes
•They would capitalize no competition situation
•Price skimming or penetration strategy used.
•Should aim at vast coverage of market
•Personal selling should use pricing and
promotion strategy to its advantage.
Personal Selling Strategy Based on
Whom to Sell
What to Sell
How to Sell
Product Market analysis-Case-III
Example for a Cellular company
CORPORATE
CorporateSMES
BUSINESS/
SMEs
PROFESSIONS
Business/
GOVTProfessiona
GROUP BOOKING
FREQUENT
CALLER SCHEME
LOW CALLER
SCHEME
PREPAID
SERVICES
Identify Whom,What and How to sell?
Determining the size of the sales force
Work load method
Decide assignment base
Classify based on time needed / calls needed
Determine calls per day/ month/ year
Divide it by assignment base to arrive at number
of Sales personnel needed.
Sales Potential method
Productivity based system
Consider average productivity
Divide the target with productivity to arrive at
sales persons needed
Incremental Method
Based on expected increase in cost/revenue per
sales personnel added
Cost Benefit compared and decision is taken
This is a good cost conscious and result oriented
method
SELECTING SALES
PERSONNEL
SELECTION PROCESS
Employment Offer
Physical Examination
Testing
Reference Check
Interview
Formal Application
Preliminary Interview
Rejection
Formal application form
Capture necessary information
•Should be structured
Should have:
•Personal Information
•General Information
•Employment record
•Educational background
•Health
•Self assessment
•Declaration
Allocate score to each set of information based on
the desired job responsibility
Interview
An interview can judge
•Common skills
•Personal appearance
•Manners
•Attitude towards selling
•General life
•Reaction to obstacles
•Personal impact on others
Other Dos in an Interview
•Read the application form
•Mark queries
•Plan a strategy for interview
•Present a ppt in case of large group
•Use un-freezing questions
•Maintain pleasant rapport
Who should interview?
Branch head with his assist—initial interview
Shortlist candidate—Reg head or sales chief
How many in the panel?
Depends on type of job
Institutional Sales- Panel recommended
Direct Sales Sales- Sales Manager with his Assist/
HR Rep
Interviewing the spouse
•Check for frequent travelling
•Check for working hours
•Check for independence
Interview Techniques
Patterned Interview
•Have a structured interview
•Job based questions
Non Directive Interview
•Open ended questions
•Seek for narration of personal info, job exp,
skills, strengths, weakness
•Judge based on responses
Interaction (Stress Interview)
Simulate Selling Environment
Set up situation to understand psychological behavior
Need trained psychologists
Rating Scales method
Rate each response in scale of suitability for job.
Physical appearance
Impact on others
Communication
Experience
Attitude
Objections handling skills
This eliminates gender, creed, religion bias.
Credit checks
•Check on credit rating
•Check for large debts
•Check for Financial Responsibility
Psychological tests
The following test can be conducted based on
type of selling assignment
•Sales aptitude test
•Attitudinal tests
•Test for creativity
•Industry knowledge
•Habitual characteristics
•Interest areas
Role Play on Interview
Each team will have to conduct an role play based on
discussion on the following aspects of selecting a front line
sales personnel for service Industry (Telecom Industry) for
handling corporate sales.
The non-directive interview should have the cover the
following aspects:
•Put the candidate at ease
•Find attitude towards selling
•Ability to handle objections
•Candidate’s positive attitude
•Customer friendly attitude
Rate on the above parameters and give your feedback.
Evaluation would be done on the Interviewer.
PLANING SALES
TRAINING
Need for Training
•Training is a means to supplement and share
experience
•Reduces initial turn over of Sales personnel
•It replaces the old method of “swim or sink”
Types of Training Programs
•Trg for new recruits
•Re orientation training for existing sales executives
Following are aspects involved in Training programs
A -C -M -E -E --
Aim
Content
Method
Execution
Evaluation
Aim
•Define job specifications
•Trainee’s background and experience
•Sales related Marketing policies
Content
•Product knowledge
•Sales Technique
•Market Information
•Company profile
Method
•Lecture method
•Personal Conference/ meeting
•Demonstration method
•Role Playing
•Case Study method
•Gaming
•On the job Training
•Programmed Training (self Interactive CD/ Internet)
•Correspondence Course
Execution
Who should conduct program
Initial Trg Program
Continuing Sales Trg
Trg for the Trainers
Training philosophies
Conditioned method
Non conditioned method
When should the Trg be conducted?
After some time in field
Before and after field experience
First Trg and then field
Module of “on the job Trg” in Trg program.
Timing of continuing Sales Trg (Reorientation program)
•New product Development
•Low productivity
•New Market segments approach
•New Product application
•Product Development
Training site
Centralized
•Branch level
•Other venue
Manuals & Training Aid
•Text of the content of Trg program
•Case study
•Exercises
•Product information
•Company profile
•Objection handling tips
Evaluation of the Training Program
FEEDBACK FORM ON SALES TRAINING TRAINING
Details of the Program___________________ Date:_____________
The Objective of the Feedback is to get an idea of the overall impact and benefit derieved from the program
INSTRUCTIONS FOR FILLING
Mark Tick above the smiling sign depending upon the feedback you want to give
Poor
TICK
CONTENT OF THE
TRAINING PROGRAM
Suggestions
TICK
SCHEDULE OF THE
PROGRAM
Suggestions
TICK
FACILITIES AND
ARRANGEMENTS
Suggestions
Average
Good
Outstanding
TICK
QUALITY OF THE
TRAINER
Suggestions
TICK
ENVIRONMENT FOR
LEARNING
Suggestions
TICK
TIME SPENT ON
CONCEPT AND ROLE
PLAY
Suggestions
TICK
TRAINING MATERIAL
AND AIDS
Suggestions
MOTIVATING
SALES PERSONNEL
Most of us need motivation periodically
Few are self starters
What is motivation?
•It is goal directed behavior
•The amount of effort a person is ready to spend
in planning, identifying prospect, sales calls, etc
•The needs and desires to achieve target
Motivation help from Management
Management needs to continuously motivate sales
personnel
Create a good motivated sales TEAM
Reasons for De-motivation
Due to the nature of Sales job
Exhilaration and depression is mixed
Turn downs
Frequent failures
Different customer profile
Face the brunt
Role conflicts
Conflicts of identification with customer company
Advocator of customer’s point of view
Repeated familiar situations
•Same product
•Same Territory
•Same Customers
Maintain feeling of group identity
Make them feel a part of the team
There is a need to be seen as performer in group
A.H Maslow, Motivation and Personality theory
Self
Actualization
Needs
Esteem Needs
Belongingness &
Social Relationship
needs
Safety and Security Needs
Basic Physiological Needs
Achievement Motivational Theory (Self
motivated people)
They like problem situation and like personal
responsibility in finding solutions
•Tend to set attainable goals
•Want feedback on how they are doing
•Can be found by (TAT )Thematic Apperception Test
•They are self driven
•They need right environment to perform
Motivation and Communication
•We need to establish communication with Sales
team
•They could have a real of an imagined problem
•Sales Personnel need freedom of expression
Interpersonal contact
•Meet Sales personnel often personally
•Identify Business or personal problems
•Arrange conferences, Regional meet to hear their
problems
Motivational interviews
•Meet Sales personnel face to face
•Find out their individual need fulfillment
•Gather information bit by bit
•Probe to motivate
Written Communication
Keep the Sales team informed
•Letters
•Bulletins
•Industry information circulars
•New developments
•Performance charts
•Top selling Sales personnel list
SALES BUGETTING
Budgeting
•Important tool for Revenue and cost control
•Prepared for calendar or financial year
•Further broken down into (monthly, quarterly
yearly)
•Corrective action needs to be taken
•No sales worth enough with no profits
•Monthly Budget monitoring a must
•Paves the road for profitable management of
business
•Budget vs. Actual to be compared & variance identified
General Budget Heads
Sales
Collection
Sales & Marketing Expenses
Employee cost
Production cost
Over Heads/ Operation costs
Depreciation
Interest Cost
Profit value/ percentages
Budget Format
Quarterly Budget
Branches
2-Apr
2-May
Apr to Jun
2-Jun 02
Total
No. of Copies (000)
Product 1
Product 2
product 3
Total Advt. Revenue A
Collection (Cash Inflow)
SALES & MARKETING
A&P
Business Promotion
Commission
Incentive
Customer Relations Mgmt/TelecomCo ordination cost
Market Research
Telemarketing
Teleselling
Provision For Bad Debts
TOTAL SALES & MARKETING AND
PRODUCTION B
BRANCH EMPLOYEE COST C
90
4.0
1.5
0.2
5.7
2.8
5.0
2.5
0.3
7.8
4.0
6.0
5.0
0.4
11.4
4.9
0.20
-
0.10
0.17
0.09
0.23
0.12
0.34
0.17
-
0.30
0.75
0.37
0.09
0.12
0.17
-
0.38
0.54
0.68
0.47
0.68
0.79
0.68
9.0
15.0
9.0
0.9
24.9
20.7
1.80
2.04
Arp 02
Branch Establishment Expenses
Accomodation/ Brokarage (FF)
Conveyance
Deputation Allowance
Hire Charges
Miscellaneous Expenses
Market Allowance
Newspaper & Periodicals
Office Expenses
Office Rent
Postage & Courier
Printing & Stationery
Recruitment Expenses
Ttraining & Development Expenses
Repairs & Maintenance
Telephone & Fax Expenses
Transit Office Expenses
Travelling
Vehicle Maintenance
Water & Electricity
Regional Office expences
Finance Charges
TOTAL OF BRANCH OPERATIONAL COST D
GRAND TOTAL OF SALES & MKT, EMP, BR
OPERATIONAL COST B+C+D
PROFIT
0.45
0.03
0.20
0.04 .
0.01
0.13
0.01
0.04
May 02 June 02 Ap-June
0.01
0.20
0.02
0.20
0.01
0.13
0.01
0.04
0.01
0.13
0.01
0.04
0.03
0.05
0.05
0.03
0.02
0.06
0.20
0.17
0.01
0.04
0.24
0.03
0.03
0.03
0.01
0.04
0.03
0.10
0.01
0.04
0.24
0.12
1.80
0.89
0.90
2.48
3.22
2.48
5.32
2.48
8.92
Total
0.45
0.06
0.59
0.04
0.03
0.38
0.03
0.12
0.10
0.05
0.05
0.08
0.03
0.14
0.20
0.37
0.02
0.12
0.73
0.04
0.04
0.24
-
3.59
7.43
9.47
SALES TERRITORIES
What is Territory Allocation?
“Sales Territory is grouping of customers and
prospects assigned to an individual Sales personnel”
Advantages of Territory Allocation
To achieve better Market Coverage
•Helps fight competition
•Economical routing possible
•Helps in Time Management of the Sales personnel
•Easier for repeat follow up
Control Expenses
•Reduces Travelling costs
•Client servicing cost lowers
•Cost per call ration falls
Helps in Evaluation of Sales Personnel
•Territory specific market potential chalked out
•Actual vs potential can be compared
•Local conditions can be considered
Contributes Morale of the Sales Personnel
•Convenient for Sales personnel to manage
•Reduces Travel fatigue factor
•Avoids inter Sales personnel disputes on accounts
•Finds more time
Co ordination of Personal Selling and Advertising &
Promotional effort
•Helps to keep his customers informed on
promotional plans
•Can have establish feedback on promotion easily
•Territory specific promotions can be planned.
Effective Database management
•Helps maintain and update Territory specific database
•Sales performance territory wise
•Customer behavior Territory wise
Geographic Territory Allocation
Basic shapes of Geographical Territories
•Road wise
•Pin Code wise
•Industrial zone wise
•Major Road and landmark wise
•Major parts of the city
•City wise
•State wise
•Region wise
Territory Allocation Based on Type of Business
(partly Geographic)
•B2B
•B2C
•B2BC
•Trading Area
•Industrial area
•Industrial Traders
•Residential Area
•Commercial Complexes
Territory Allocation Based on market Potential (Non
Geographic)
•List all prime segment based in descending order
of Priority
•Capture database of Segments
•Obtain exact numbers in each segment
•Estimate sales potential based on past
performances in each segment
•Match the profile of Sales personnel and area.
Estimating Target for Sales personnel
•Estimate number of Potential customers
•Pin down assignment base for individual Sales personnel
•Fix conversion percentage for each segment of
the assignment Base
•Project average order Value
•Covert to Sales Target for each Territory
Rules:
•Estimate potential target for area and not Sales
personnel
•This logic will help in changing Territory if needed
•The next Salesmen takes over unachieved part of
Territory