Introduction to sales management
The process of planning, coordinating ,directing and reporting the exchange of goods and services between two parties , i.e. buyer and seller, with the purpose of satisfying the wants of the buyer.
What is Sales Management?
It is a process of predetermining the sales scientifically on the basis of past data of the firm and / or the industry by employing quantitative and /or qualitative methods.
what is sales forecasting?
Opening a sales call
sales proposition
presentation
motivating the customer
closing the sales
What are the steps involved in selling?
1.identifying the market demand
2. sales forecasting
3. product and pricing decision
what is the role of sales department?
short term forecasts
medium term forecasts
long term forecasts
What are the methods of closing a sale?
Asking for the order
Summarise presentation and asking for order
Narrowing down the choices
Action Agreement
Objection Close
Trial Close
Concession close
suggestive close
side close
alernative close
Qualities of sales manager
Physical Characteristics: Healthy, good personality, alert
Psychological Characteristics: Calm and composed, should be able to comprehend the gravity of situation and respond accordingly.
Intellectual Characteristics: Analytical skills, observation and excellent communication skills
other skills: management, technical and HR skills
what are the methods of forcasting?
Qualitative Methods
Jury of Executive Opinion
Sales Force Composite Method
User Expectation Method
Delphi Method
Consumer Survey Method
Sales Hierarchy Estimate
Quantitative Methods
Correlation Analysis
Simple projection Method
Time Series Analysis
Moving Averages Method
Sales Ratio Method
Regression Analysis
State any three resons for unsuccesful closing.
Wrong attitude
external interruption
Misinterpreting the prospect
What are the recent development in the field of sales management?
1. effectiveness to efficiency
2. multi-disciplinary approach
3. Internal Marketing
4. Increasing dependence on Internet
5. CRM
6. Professionalism in selling
what is a sales quota? what are its types?
Sales Quota is the target or goals set for its 'marketing units' such as a territory, salesman, distributor, dealer etc.It can be of the following types on the basis on which it is set:
Financial Quota or Sales value -Gross margin or profit contribution,expense quota
sales volume quota - Sales Volume( in currency), sales volume(in units), Point sales volume
Activity quotas
Combination Quotas
what are the theories of selling? explain each in one to two lines
stimulus response theory
product orientation theory
Need satisfaction theory
what are the different sales organisation structure?
Functional structure
Product based structure
Market based structure
Territory based structure
Hybrid structure
What is sales territory? on what basis is such assignment of territories done?
It is a set of existing and potential customers assigned to a sales person. It may or may not be geographically allocated.
Such assigning is done on the basis of:
ability of the salesperson
compatability of a salesperson to particular domain/territory
Use of Information Technology in territory management
what are the selling startegies?
Hard-sell vs soft-sell
Client -centred startegy
product-price startegy
win-win startegy
Negotiation startegy