SALES. Management PRADIP KUMAR MALLIK. Associate Professor, Department of Business Administration The University of Burdwan West Bengal

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1 S SALES Management PRADIP KUMAR MALLIK Associate Professor, Department of Business Administration The University of Burdwan West Bengal OXFORD UNIVERSITY PRESS

2 Contents Preface v 1. INTRODUCTION TO PERSONAL SELLING Introduction to Personal Selling Defining personal selling Importance of Personal Selling in Communication Mix Salesmanship Objectives of Personal Selling Essentials for Effective Personal Selling Knowing the company Knowledge of competition Knowledge of selling process Selling skill Sales motivation Advantages and Disadvantages of Personal Selling Role of Personal Selling in Marketing Traditional Selling Approach Modern Selling Approach Types of Selling Industrial selling Service selling Retail selling Sales as a profession Ethics in Selling 23 Case Study 1: Reebok 28 Case Study 2: Selling Strategy at ABC Inc PERSONAL SELLING APPROACHES AND STRATEGIES Selling Approaches A Theoretical Perspective Aidas approach of selling Right set of circumstances approach Buying formula approach Behavioural equation approach Need satisfaction approach Consultative approach of selling 38

3 xii CONTENTS Customer relationship-based approach Problem-solving approach Team selling approach Buyer-seller Dyad Determinants of seller buyer dyad 44 Case Study 1: A Turnaround Story 55 Case Study 2: Eureka Forbes Ltd PERSONAL SELLING PROCESS Selling Process A Stepwise Approach Prospecting Meaning, Objectives, and Sources Pre-approach A Step towards Sales Planning Customer's Need Discovery A Prime Concern for Selling Sales Presentation Scope and Methods Presentation methods Handling Objections A Natural Experience in Selling Closing the Sale Follow-up after Sales Importance and Methods 80 Case Study 1: Success in Insurance Selling, in Search of Causes 83 Case Study 2: Genesis of a Selling Problem 84 Part II Organization of Sales Force Functions 4. SALES FORCE MANAGEMENT Sales Management An Introduction Functions of Sales Management A Review Formulation of sales plan Implementation of sales plan Evaluation and control of sales operations Sales Planning An Environmental Perspective Planning Sales Operations A Useful Guideline Strategic Planning A Building Block to Sales Management Corporate level strategic plans Business level strategic plans Product/functional level strategic plan Sales Managers Tasks and Roles Qualities of a Sales Manager 770 Case Study: Dell's Success Story SALES ORGANIZATION Sales Organization Meaning, Purposes, and Types Sales Organizational Structure Different Typological Perspectives 775

4 CONTENTS xiii 5.3 Criteria and Principles of Developing a Sales Organization Organizing the Sales Force A Description Determining the Size of the Sales Force A Methodological Study Managing the Sales Force A Functional Orientation Integrating the Sales Force within the Organization A Need-based Approach 138 Case Study: Selling Phenomenon under Cross Border Enterprise SALES TERRITORIES Sales Territory Meaning and Definition Objectives, Benefits, and Imperatives of Sales Territory Management of Sales Territory Designing Sales Territory Routing and Scheduling Sales Force Automation (SFA) Opening a Vista in Lead Management 167 Case Study: Performance Paradoxes 170 Part III Managing the Sales Team 7. SALESPEOPLE AND SALES MANAGERS PROFILES, ROLES, AND RESPONSIBILITIES Salesperson A Critical Human Resource Who is a salesperson? Role of a Salesperson Duties and Responsibilities of Salespeople Qualities of a Salesperson Who is a Sales Manager? Role of Sales Managers Duties and Responsibilities of Sales Managers Skills of Sales Managers Face of Sales Force Today 757 Case Study: Profile of Sales Executives SALES FORCE RECRUITMENT Recruitment Meaning and Conception Staffing achieving the right fit Job Analysis A Prerequisite for Recruitment The process Outcomes job description and job specification Basic traits of a successful salesperson Methods for Developingjob Specifications Sources of Sales Recruits 209 Case Study: Recruitment Consultancy 216

5 xiv CONTENTS 9. SALES FORCE SELECTION Selection An Introduction Selection Process A Stepwise Journey Initial Screening The Maiden Step Interviews Backbone of the Selection Process Interview process Guidelines for Selection Important Dimensions and Issues Psychological Tests A Critical Step in Selection Essential Formalities of Selection Socialization An Imperative 234 Case Study: Narratives of an Interview Session SALES TRAINING Introduction Sales Force Training A Strategic Orientation Benefits of Sales Training Sales Training A Procedural Discourse Contents of a Training Programme Training Programme Time and Place Perspectives Training Methods A Detailed Illustration Evaluation of the Training Programme A Practical Understanding 262 Case Study: Sales Force Training in Pharmaceutical Industry SALES FORCE MOTIVATION Motivation A Conceptual Illustration Variegated Motivating Salespeople Objectives and Benefits Need A Motivation Booster Motivation A Strategic Push to Influence Salespeople Motivation Theories Its Applications to Sales Force Motivation Content tfieories Process theories Non-cognitive process 287 Case Study: Dwindling Sales DIRECTING THE SALES FORCE Direction Concept and Understanding Leadership A Conceptual Clarification Leadership and Motivation Qualities of a Sales Leader Leadership Theories at a Glance Highlight of the Leadership Theories A Practical Approach 301

6 CONTENTS XV 12.7 Sales Leadership A Futuristic Approach 309 Case Study: Vinyl Chemicals Ltd SALES FORCE COMPENSATION Compensation Concept, Definition, and Types Sales Force Compensation Plan Ah Illustration 318 / Factors Influencing Compensation Plan Aims and Characteristics of Compensation Plan A Strategic Initiative Steps in Compensation Plan A Developmental Process Compensation Schemes A Non-financial Approach Strategic Compensation System (SCS) An Imperative to Sales Force Management 340 Case Study: Compensation Dilemma SALES FORCE PERFORMANCE Performance Appraisal Concepts, Definitions, and Objectives Performance Appraisal Criteria and Benefits Steps in Sales Force Performance Appraisal An Elaboration Sales Force Control A Necessary Adjunct of Performance Appraisal Performance Appraisal Methods A Special Reference to Sales Force Traditional methods Modern methods Sales Force Performance Appraisal 369 Case Study: Bottlenecks in Sales Performance 375 Part IV Financial Aspects of Sales 15. SALES BUDGETING AND FORECASTING Sales Budget An Introductory Approach Sales Budget Basic Approaches Sales Budgets Features, Objectives, and Benefits Factors Influencing Sales Budgets Steps in Determining Sales Budget Methods of Determining Sales Budgets Intelligent Budgeting An Illustration Sales Forecasting A Preliminary Introduction Sales Forecasting Factors and Fundamentals Approaches of Sales Forecasting Top-down approach Bottom-up approach Methods of Sales Forecasting 399 Case Study: Rural Blues 407

7 xvi CONTENTS 16. SALES AND COST ANALYSIS Sales Analysis Concepts And Features Sales Analyses at Individual Units A Review Methods of Sales Analysis A Concise Description Sales Quota A Tool for Sales Analysis Methods for Setting Sales Quota Cost Analysis Concepts and Objectives Cost Control An Important Objective of Cost Analysis Methods of Cost Analysis 425 Case Study: Performance Evaluation Taking Inputs from Sales Analytics 430 Part V Strategy and Modern Approaches 17. SALES STRATEGY Strategic Orientation of Selling An Introduction Environmental Analysis A Prerequisite for Strategic Plan Sales Strategies Some Common Drivers Steps in Strategic Sales Management A Schematic Overview Understanding Competition Essential for Selling Strategy Marketing Strategy A Trigger of Sales Strategy Sales strategy focus on customer relationship Sales strategy distribution as an implementation channel Sales Strategy Social Responsibility Issues The Seed for Success 455 Case Study: Strategic Selling at Its Best MODERN SELLING APPROACHES Dynamics of Selling Tracing Its Traditional Roots Forces of Orientation Traditional to Modern Selling E-commerce A Digital Route to Contemporary Personal Selling Web-based Selling Concepts and Applications Social Media A New Vista to Modern Selling 480 Case Study: A Great Entrepreneur 483 Index 486

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