UNIT I

Introduction to sales management – objectives of sales management –

Difference between sales management, personal selling and salesmanship.
Buyer - seller – dyads – Theories of selling – Formulating personal selling
strategies – Determining the size of the sales force.

INTRODUCTION TO SALES MANAGEMENT

Sales management is the process of leading, motivating, and influencing people
to achieve sales objectives. 

Sales management” originally referred to the designing, planning and

directing sales force personnel to achieve the organizational objectives.
Sales management is the process of developing a sales force, coordinating sales
operations and implementing sales techniques that allow a business to
consistently hit, and even surpass, its sales targets.
 OBJECTIVES OF SALES MANAGEMENT

1. Revenue Generation – One of the main objectives of sales management is to

generate revenue for the organization. The sales department is solely
responsible to bring in the money.
2. Increase Sales Volume – Through efficient sales management, the
organization wishes to increase the number of units sold. This will ensure that
the production facilities do not remain idle and are utilized to the fullest.
3. Sustained Profits – Sales management has an objective of improving the
profits of the organization through effective planning, coordination and control.
Sales management strives to increase sales and reducing costs, this ensures
good profits for the organization.
4. Organization Growth – With the sustained and continuous sales management
techniques, the organization tends to gain market share and results in growth of
the organization.
5. Market Leadership – With increased sales volumes and profits, ‘sales
management’ enables an organization to become the market leader.
6. Converting Prospects to Customers – Getting prospects to become customers
is an art and a science, it requires good planning and sustained efforts. This is
accomplished through sales management.
7. Motivate the Sales Force – One of the core objectives of sales management
is to motivate the sales force. Selling is a very stressful task, achieving sales
targets can become very challenging. Therefore, the sales management task is
to ensure that the sales force is continuously motivated through proper
incentives and reward systems.
8. Compliment Marketing Activities – Sales management’s task is to support
the marketing functions of the organization. Marketing and sales need to go
hand in hand to achieve the desired results.
 DIFFERENCE BETWEEN SALES MANAGEMENT, PERSONAL
SELLING AND SALESMANSHIP.

PERSONA SALES
SALESMANSHI
  BASIS L MANAGEMEN
P
SELLING T

1 Meaning Personal It is an act of Sales

. selling is an being employed as management is an
act of a salesperson. act of planning,
engaging Salesmanship is an controlling,
with art and skill of directing and
customers to initiating selling coordinating the
persuade efforts. sales process.
them to buy
the product.

2 Flexibilit It is most It is comparatively It is least flexible

. y flexible as less flexible than as the rules and
the personal selling. policies are
messages formed and
could be followed strictly.
changed
according to
the
customer’s
needs.

3 Reach Only one or An only a limited It reaches to

. two number of persons masses in the
customers can be contacted. form of
can be dealt advertising and
in one time. other marketing
communications.

4 Cost per Cost per Cost is Cost per person is

. person person is comparatively very less.
 high as lower than
limited personal selling.
persons can
be reached
at a given
time.

5 Coverage It takes a It takes It takes medium

. long time to comparatively less time to cover the
cover the time to cover the market.
market. market.

6 Media It does not Makes Makes use of

. make use of comparatively less mass media.
mass media. use of mass media.

7 Feedback Direct Indirect feedback Feedback is not

. feedback can can be collected. possible because
be collected customers are not
from involved.
customers.

8 Useful More useful More useful for a Useful for all

. for for industrial technical product. kinds of product.
and
customized
product.

9 Scope Personal Salesmanship is Sales

. selling is a included under management has
part of sales personal selling. a broader scope
management as it guides both
and the personal selling
scope of and salesmanship
personal efforts.
selling is
narrower
than sales
management
.
 BUYER - SELLER DYADS

the term “dyad” to describe a situation in which two people interact. The
salesperson and the prospect, interacting with each other, constitute one
example of a “buyer-seller dyad”. Another is the interaction of a seller using
advertising with a particular prospect in the reading, listening, or viewing
audience. In both advertising and personal selling, the seller seeks to motivate
the prospective buyer to behave favorably toward the seller. Whether or not the
buyer reacts as the seller desires depends upon the nature of the interaction.
The opportunity for interaction is less in the advertising case than in personal
selling. However, advertising and personal selling often supplement or support
each other, and the buyer reacts to their combined impact.

The term dyad is used for interactions between people. Thus buyer seller
interactions can also be said as buyer seller dyads. The seller can either be a
personal salesman, or an advertisement, or any such combination of a pull or
push strategy, however, this interaction between buyer and seller is known as
buyer seller dyad.

The Buyer-Seller Dyad

Good communication is a key to successful marketing, and it is particularly

important for positive personal selling results. The buyer-seller dyad is
flexible and efficient, closes sales, and provides feedback.
Figure in the last page is a conceptual model of “salesperson-buyer” dyadic
relationships. This model, developed after an extensive literature search, views
the sales process as being influenced by both salesperson and buyer, each a
focal person influenced by personal characteristics and role requirements.
Personal characteristic include personality, values, attitudes, past experiences,
and the like. Role set requirements (for example, formal authority and
organizational autonomy) interact with personal characteristic to shape needs
and expectations. 
 THEORIES OF SELLING

The theories of selling emphasizes on “what to do” and “how to do” rather
than “why”. There are four theories of selling such as:

1. “AIDAS” theory
2. “Right set of circumstances” theory
3. “Buying-formula” theory
4. “Behavioural equation” theory.

“AIDAS” theory and “Right set of circumstances” theory is seller oriented.

“Buying-formula” theory is buyer oriented and “Behavioural equation” theory

emphasizes the buyer’s decision process but also takes the sales person’s
influence process into account.

AIDAS

Sa
Action n
Desire
Interest
Attention
AIDAS theory, after the initials of the five words used to express it (attention,
interest, desire, action and satisfaction). During the successful selling interview,
according to this theory, the prospects mind passes through five successive
mental states: Attention, Interest, Desire, Action and Satisfaction
consciously, so the presentation must lead the prospect through them in the
right sequence if a sale is to result.

The seller has to accomplish the presentation task in the following sequence
according to the theory:

• Securing Attention: The main aim is to put the prospect into a

receptive state of mind so that the prospect pay attention to the presentation.
The sales person must establish good rapport at once. Favourable first
impressions are to be assured in first step.

• Gaining Interest: The second goal is to intensify the prospect’s

attention so that it evolves into strong interest. Many techniques are used to
gain interest such as showing visual aids, flipcharts, technical aids etc.
• Kindling Desire: The third goal is to kindle the prospect’s desire
to the ready- to – buy point. The sales person must keep the conversation
running along the main line toward the sale. The objections to be handled
carefully and the desire of the buyer to be aroused.

• Inducing Actions: The presentation may arouse strong desire in

the buyer’s mind to buy but the sales person must induce the prospect to act –
that the prospect to buy as buying is not automatic. The sales person will try to
find out the right time to close the sale with the positive action from the buyer’s
agreement to buy.

• ilding Satisfaction: After the customer has given the order, the
sales person should reassure the customer that the decision was correct. The
sales person should left an impression in the buyer’s mind that he mere helped
the buyer to decide to buy.

2.Right setting circumstance- Theory of selling

This theory sometimes called “Situation-Response” theory and it emphasizes

on creating a right circumstance or situation by the sales person so that he
succeeds in securing the attention and gaining the interest of the prospect, and
if the sales person presents the proper stimuli or appeals, the desired response
(that is the sale) will result.

This is a seller-oriented theory and stresses upon the sales person controlling
the situation.
 3.Buying Formula_theory of selling

This is a buyer oriented theory and it emphasizes on the buyer’s side of the
buyer-seller dyad. The buyer’s needs or problems receive major attention, and
the sales person’s role is to help the buyer to find solutions.

This theory treats the job of a sales person as problem solving. The
purchase must solve buyer’s problem and when the purchase gives
satisfaction the buyer-seller relationship will continue.

3.Behaviour Equation- theory of selling

J.A Howard explains buying behavior in terms of the purchasing decision

process , viewed as phases of the learning process.
Four essential elements of the learning process included in the stimulus-
response model are drive, cue, response and reinforcement, described as
follows:
1. Drives : are strong internal stimuli that impel the buyer’s response, and
are of two kinds:
 Innate drives: stem from the physiological needs, such as
hunger, thirst, pain, cold and sex.
 Learned drives: such as striving for status or social approval, are
acquired when paired with satisfying of innate drives, in marketing
the learned drives are dominant in economically advanced societies.

2. Cues: are weak stimuli that determine when the buyer will respond.
o Triggering cues: activate the decision process for any given
purchase.

o Non-triggering cues: influence the decision process but do not

activate it, and may operate at any time even though the
buyer is not contemplating a purchase.

Triggering cues take a buyer to the buying point and non- triggering cues help
in selecting the product and making a purchase decision.

Non-triggering cues are two kinds:

 Product cues: are external stimuli received from the product

directly, for example colour of the package, weight, or price.

 Informational cues: are external stimuli that provide information

of a symbolic nature about the product. Such stimuli may come
from advertising, conversation with other people (including sales
personnel) and so on.
for getting the attention of the prospects. For this, the salesperson needs to
take care of the following things:
• Create the first impression by a proper and suitable dress up.
• Always start with a smile.
• Be honest and professional.
• Do not let pressure spoil the situation.

Interest: The second step is to generate the interest of the prospect. The
salesperson
can achieve this either by convincing the prospect with his talk or by handling a
sample
to the prospect, so that the prospect can use and feel the product in reality.
However, in
case the logistics do not allow the product to be carried all the way, then
alternatively
the interest of the prospect can be gained by using visual aids. If the prospect
inquires
about the product, it signifies that the product could stir interest in
the mind of the
prospect and he wants to know more about the product. Smart salespersons use
various
By doing this, the strongest sales appeal of the prospect can be identified.
The salesperson needs to think of the way the product can be useful for the
prospect
before approaching him. If the product is of technical nature and the prospect
has a
technical background and knowledge, then the salesperson needs to be fully
equipped in
terms of knowledge related to the technicality of the product. However, if the
product is
of technical nature and the prospect does not have a technical background
then the
salesperson needs to explain everything in a simple manner without using
jargons of
technicalities.
Desire: The next step is to kindle a strong desire in the prospect’s mind so that
he gets
ready to buy the product. While doing so, there is a possibility that the prospect
comes
up with certain objections. These objections can be price objection, product
objection,
source objection, money objection etc. The best way to handle these objections
by the
salesperson is to discuss all the objections beforehand while giving the
presentation and
give the solutions for the same, as well. If the prospect does not get satisfied
with the
answers, he will not buy the product. The salesman needs to be
very careful while
discussing the answers to the objections. He should provide the
answers by
understanding the needs of the prospects and it would be imperative if the talks
are
conversed in the language of the prospect.
Action: After elaborating all the three stages, the salesperson should
induce the
prospect to place the order. The action of buying the product is not usual and
therefore
should be induced. Here, while doing so, the role of the salesperson is very
important as
well as critical. The salesman needs to sense when the prospect is ready to
place the
order. If he fails to sense this and ask the prospect to buy the product before he
is
ready, then chances are that the prospect will not place the order. Also,
prospects like to
have a direct conversation instead of an indirect conversation. So, the
salesperson needs
to ask directly for the order and avoid indirect ways of asking the same.
Satisfaction: After placing the order, a salesperson aims for building
customer
satisfaction. It is natural on the part of the prospect to think whether he has
taken a
right decision by placing the order. He needs the assurance that he has made a
right
decision and for that the salesperson is required to assure the prospect
that he has
indeed taken the right decision. The prospect should not feel that he was forced
to buy
the product. Salesperson should let the prospect realise that he has only helped
him in
making the right choice. Further, the salesperson needs to thank the prospect
which
helps him in getting satisfaction regarding his decision. Satisfied prospects pay
attention
on the seller’s product and in future tell others also about the same, whereas
dissatisfied
 prospects do not pay attention to seller’s product in future.
FORMULATING PERSONAL SELLING STRATEGIES

Personal Selling Strategies

1. Be natural and personable.

2. Remember your buyer personas.

3. Ask the customer plenty of questions.

4. Focus on end benefits, not product features.

5. Personally address any customer concerns.

6. Ask for the sale.

7. Follow up after a purchase.

8. Consider an email tracking software.

1. Be natural and personable.

The first thing sales reps are selling is themselves. If a prospect doesn’t like a rep,
they won’t trust anything they say.

Encourage team to ask questions and build two-sided relationships. Having

greater connections and natural conversations allows to show empathy, all while
opening the door to sharing success stories and building trust.
2. Remember your buyer personas.

As your team prospects and qualifies leads, ensure they remember your
organization’s buyer personas. If your company typically targets customers with a
certain budget or team size, don’t waste time working with leads outside of those
specifications.
Salespeople often make the mistake of trying to sell to anyone and everyone.
However, by focusing on nurturing good-fit leads, they’re 50% more likely to
make the sale, and at 33% lower costs.

3. Ask the customer plenty of questions.

Your team should listen more than they talk. They won’t know how to help and
sell to customers if they don’t know their questions or concerns.

Also, encourage reps to ask questions about what motivates prospects. Here, you

can learn what features match your prospects’ goals and needs.

4. Focus on end benefits, not product features.

Once your team learns about what your prospect needs, have reps focus on
explaining how the prospect will benefit from your offering.

Consider making a list of all the benefits your product offers. This can help you
paint a picture of how you can help customers. This preparation will help your
reps talk with your customers instead of talking at them.

5. Personally address any customer concerns.

As your team works with potential customers, they should consider themselves
personal advocates. If prospects have any concerns or questions, your reps should
do their best to personally address each objection.
This builds trust with prospects and moves them closer to purchase. After
all, 88% of customers say trust is the most important thing, even in times of
change.

6. Ask for the sale.

Fourty-eight percent of sales calls end without an attempt to close it — which

decreases the likelihood of success.
Your team should ask for the sale after you address any concerns or objections.
Research and test various closing phrases to see what comes naturally to your
sales team.

7. Follow up after purchase.

Your relationship with your customers doesn’t end once they buy your product or
service. The simple act of following up can be a differentiator. In fact, 48% of
salespeople never follow up.

Following up with customers (via phone, email, or in person) keeps the

relationship alive.

8. Consider using email tracking software.

Personal selling involves a great deal of tailored communication and interactions
with leads and prospects. Email tracking software can alert your team when
potential customers open their emails so they know who’s interested and who to
follow up with to stay top-of-mind.
While 88% of people are more likely to respond to personalized emails, knowing
how many times each email is opened gives you strong indications about how
interested people are, even if they don’t respond.

DETERMINING THE SIZE OF THE SALES FORCE.

Sales force size determination is a process of determining the number of
salespeople required to market and sell the products of the company. The size of
the sales force would depend on the quantum of sales, type of products, methods
of marketing, etc.

Factors Affecting Sales Force Size Determination

Following are the factors which affect the size of the sales force.

 The number of customers – Basic criteria for deciding the size of the
sales force would be the number of existing and potential customers. By
considering this number and deciding the time required to deal with each
customer, the company can arrive at the optimum sales force size.
 Product – If the product is new and requires a sales person to demonstrate
or explain the technicalities, the sales force's size would be larger than an
established consumer product with sufficient demand in the market.
 Experience – Experience of the sales team as a whole would also affect
the size of the sales force. If most of the sales force members are new, the
size would be on a higher side as against the team that has experienced
sales personnel.
 Budget – The budget allocated for the sales function would affect the size
of the sales force. This is a practical consideration that will have to be kept
in mind. Higher the budget of the company, there would be fewer
restrictions in the appointment of salespeople in the team and vice versa.

Methods for Determining Sales Force Size

Following are the methods which are used for the purpose of determining the size
of the sales force.

Workload method

The workload method is also known as the buildup method. In this method, the
total workload (i.e., the number of hours required to serve the entire market) is
estimated. This is divided by the selling time available per salesperson to
forecast the size of the sales force. This method is commonly used since it is easy
to understand and to recognize the effort required to serve different categories
of customers.
 Breakdown method – In this method, total sales are divided by the sales,
which is expected to be handled by one salesperson to arrive at the size of
the sales force. In this method also, it is assumed that each salesperson has
the same level of efficiency and experience.
 Incremental method –This is a scientific method to determine the size of
the sales force. In this method, marginal profit contribution is compared
with the incremental cost for each salesperson. When the marginal profit
becomes equal to marginal cost, this level is considered as an optimum
level. The shortcoming of this method is that it is difficult to calculate the
figures exactly, and it is time-consuming.