Introduction to Sales Management

Transcription

1 Introduction to Sales Management Session 1 Dr. Sanjeev Varshney

2 What is Sales Management Sales Management means the planning, direction and control of sales force, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating.

3 Scope of Sales Management Personal Selling (industrial as well direct) Channel Sales Force management

4 Roles of a Sales Manager Playing a strategic role Working as a member of the corporate team Working as a Team Leader A supervisor and a motivator Managing multiple sales channels Build Buyer-seller relationships through technology Managing Information

5 Changes with Time Changes in Business Environment Changes in Market Structure Changes in Consumer Expectations & Behavior Changes in Customer Expectations

6 Skills of Sales Manager People Skills Managing Skills Technical Skills

7 Desirable Changes in Sales manager Skill Set Selling skills Decision making Managing Work Skills Training & Coaching Skills Analytical skills Market Research skills Behavioural capabilities Leadership Motivational Goal orientation Team Orientation Process Orientation Relationship orientation

8 Emerging Trends in Sales Management Global Perspective Technology Revolution CRM Sales force Diversity Team selling approach Managing Multi-channels Partner Relationship Management Ethical and social issues Sales Professionalism

9 Need for Change Increase the base of the customer and build relationships Tap the Potential of the sales person Improve the level of engagement of the sales person

10 Operational Decisions in Sales Management Sales Force Recruitment Territory Design Target Setting Sales force Motivation Managing the Channel Performance Evaluation and designing the career path Training and developing the sales force

11 Effective Selling

12 Right way of selling The desire to help customers make satisfactory purchase decisions Helping the customers assess their needs Offering products that will satisfy those needs Describing products accurately Avoiding deceptive or manipulative influence tactics Avoiding the use of high pressure A shift from transaction based selling to relationship based selling

13 Effective Selling Understand the buyer purchase process and take him from one stage of decision making to another Integrate sales people with other functions in marketing to influence this purchase process Focus only on those activities which a sales man can do best

14 Role of Sales Force Sales Force Brand Management Retailer Shopper (one who involves in the act of purchase and buys Consumer (one who identifies the need and decides about the product) Shopper may or may not consume the product

15 Role of Channel Mental State Sales Step Critical Sales Task Curiosity Attention Get Prospects excited, then you Get them to like you Interest Interest Interview: needs & wants Conviction Conviction What s in it for me?, Product- Will it do what I want it to do? Price- Is it worth it? The Hassle of Change / Cheaper elsewhere Peers- What will others think of it? Priority- Do I need it now? (sense of urgency) Desire Desire Overcome their stall Action Close Alternate choice close: which, not if!

16 Product Categories & Role of Sales People Decision Process Picking/ Impulse What is the Buyer Looking for during the purchase Convenience, very little uncertainty of using untried brand Role of the Channel Ensure Availability & good display Variety Seeking Habit Sub-contract Extended problem solving Convenience plus variety, very little uncertainty of using untried brands Willing to travel for brand. High uncertainty of untried brands Buyer not knowledgeable, depends on a credible source Willing to travel for brand, High uncertainty of untried brands Ensure availability & good display as well positive word of mouth from the retailer Reassurance is required Trade motivation to help the consumer in decision making Trade Motivation, demonstration and trial to help the consumer in decision making

17 Dominant Style s Used during selling Dominance/Submissive Sociability/Analytical Thinking Patience/Drive Compliance/Independence

18 Different selling styles Trade Selling Missionary selling Technical selling New Business Selling

19 Selling Styles for Different Buying Situations Involvement of the end consumer in the decision process Low Involvement of the Salesperson required during decision process Low Trade selling High Trade selling (Variety seeking behavior) Acceptance (habitual behavior) High involvement of the sales person required during decision process Missionary selling New Business Selling

20 Selling Styles for Different Service-Buying Situations Low differences between brands Low Uncertainty of untried brands Trade selling High Uncertainty of untried brands Dominance High differences between brands Trade selling Acceptance Selling solutions (if consumer is knowledgeable) Missionary selling (if consumer is not knowledgeable)

21 Transaction Analysis

22 Transaction analysis Describes how people are structured psychologically It introduces different ego-state (Parent-Adult-Child) of an individual Explains how people function and express themselves in their behavior. Awareness on various ego states of individuals will enable you to identify and practice the most appropriate ego state for successful interaction with team members.

23 Different Behaviour Ego States Parent Adult Child

24 Parent In this state people behave, feel, and think in response to an unconscious mimicking of how their parents (or other parental figures) acted. Example: a person may shout at someone out of frustration because they learned from an influential figure in childhood the lesson that this seemed to be a way of relating that worked. Some of the Physical clues of a parent ego state are Pointing Index finger Hands on Hips Tongue Clicking Patting another on the head Some of the Verbal Clues of a parent ego state are Judgmental- based on automatic responses Evaluative Value based

25 Adult In this state people behave, feel, and think in response to what is going on in the "here-and-now," using all of their resources as an adult human being with many years of life experience to guide them. While a person is in the Adult ego state, he/she is directed towards an objective appraisal of reality. Some of the Physical clues of the adult ego state are Adult demonstrates listening attentively, by continual movement and the blinking of the eye. Some of the Verbal clues of the adult ego state are Common descriptors are: I think Possible Factual. Data based. Demonstrating Empathy. Retaining Composure. Patient. Probing Using words like what, why, where etc. Matter of Fact. Seeks information. Confirms understanding/ Clarifying Enhances Self Esteem of other person.

26 Child In this state people revert to behaving, feeling and thinking close to how they did in childhood. Example, a person being told off by the boss at work may look down and feel shame or anger, as they used to when being told off as a child. Some of the Physical clues of the child ego state are Teasing. Delight/ Laughter Nail biting High pitched voice Some of the Verbal clues of the child ego state are I wish I want Bigger Best I don t care

27 Interaction Process A Stimulus B A B Response

28 Various form of Interaction 2 people are in same ego-state P P A A C C 2 people are in different ego-state P P A A C C

29 Examples Example A: The parent says-this bus is always late. The parent response would be-what do you expect from this management. The adult response would be Have you traveled earlier by this bus. The child response would be- I wish we had aero planes that flew on the earth. Example B: In a business scenario; The parent says- you should familiarize yourself with ground realities. The adult says- how many days you spend in the field. The Child says- I do not care about ground realities as long as you are producing results

30 Outcomes of Interactions All of these interactions are not desirable But there is no general rule as to the effectiveness of any ego state in any given situation (some people get results by being dictatorial (Parent to Child), or by having temper tantrums, (Child to Parent), But for a balanced approach to life, and for success in business management Adult to Adult is generally recommended.

31 Exercise Please list down various statements that your customers make. Now we will classify them as P-A-C. Adult Responses to the same, and try to estimate how the whole discussion will go.