The document discusses sales performance of various companies. It mentions that Tata Motors global sales were up 3% in August. Rural India boosted sales for FMCG firms. United Spirits became the world's second largest spirits company by reaching sales volume of 100 million cases. Audi, Xbox 360, AT&T, Infosys, Educomp and Samsung all reported increased sales in their respective areas in the given time periods.

1.  Tata Motors global Sales up 3 pc in August
 Rural India boosts FMCG firms Sales
 United Spirits Clocks Sales Volume of 100 Million Cases to Become the
World’s 2nd Largest Spirits Company
 Audi reports best ever July Sales in US…making seventh straight
record setting month for 2011
 Xbox 360 tops US Sales in August despite PS3 price cut.
 AT & T goes door to door for Sales
 Infosys may beat Q4 guidance, FY12 Sales may grow 18-20%.
 Educomp expects FY12 Sales at Rs 1760 crore.
 Samsung eyes 30% growth in Sales during festive season
Mathew Lawrence

2. Sales Management & Personal Selling
- Prepared by Mathew Lawrence

3. Presentation Flow
Sales Management
 Introduction to Sales Management
 Sales Force- Managing the Sales Force
 Sales Manager- Duties and Responsibilities
 Formulation of sales strategy – Introduction
 Different Sales Strategy
 Problems of Sales Management
 Methods of selling – special emphasis on Personal Selling
Personal selling
 Introduction
 Changing face of Personal Selling
 Steps in Personal Selling
 Difference between Advertising and Personal Selling
 Theories of Personal Selling
Mathew Lawrence

4. Introducing the Concept Sales Management
 Sales management is a business discipline which is focused on the
practical application of sales techniques and the management of a
firm's sales operations.
 Birth of Sales Management: After the Industrial revolution and with the increase in volumes of
production, i.e production on mass scale not only for local consumption but also to cater to the demand
at national and global levels sales management came into existence.
 Sales mgt is responsible for the sale of products of a company and to add profit to the business
operation.
 Sales force should be hardworking, result oriented, well educated and competent to handle changing
situations.
Definition : “The process of planning, directing and controlling of personal selling, including
recruiting, selecting, equipping, assigning, supervising, paying and motivating the sales force”- American
Marketing Association
 Thus sales management means, the task which includes analysis, planning, organizing, directing and
controlling of the company’s sales effort.
Mathew Lawrence

5. Managing the Sales Force
 The key to any successful sales management lies on the people working in sales.
 Companies spend considerable amount of money on training and development of sales
force.
 Sales force management of any company lies on three parameters they are-
 Organisation: The key to sales force is the right level of aggregation against product lines and
geographical area. (separated product line)
 Strength and Qualification: Sales force strength and qualification significantly affect the ability to
provide competitive service level and economies of sales force.
 Compensation and Incentive system:
compensation and incentives have a significant
impact on the moral of the sales force and help in
retaining successful sales people.
Mathew Lawrence

6. Example of a hierarchy in Sales Department
Sales
Directo
r (1)
Divisional
Manager (2)
Zonal Manager
(10)
Regional Manager (25)
Territory Business Manager (50)
Territory Business Executive (50)
Mathew Lawrence

7. Duties & Responsibilities of a Sales Manager
 Sales Manager is the most important person in a sales department. All activities are
based on his functions and responsibilities.
 Sales Manager is like the captain of a team who leads from front and sets up
examples for it is subordinates.
Following are some of the principal duties of a sales manager:
 Organizing sales research, product research etc.
 Getting the best output from the sales force under him.
 Setting, achieving and controlling the targets, territories, distribution etc.
 Advising the company on various media, sales promotion schemes etc.
 Monitoring the companies sales policies.
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8. Formulation of Sales Strategy
The function of sales manager includes the task of organizing, planning and implementing the
sales efforts so as to achieve corporate goals related to market shares, sales volume and
return on investments. Following are the key decision areas on which sales strategy is
Formulated:
 Determining the size of sales force
 Determining the quality of sales force
 Determining the market share and volumes of business.
 Competitors presence.
 Recruitment and training procedures.
 Type of customer base.
 Feedback mechanism to be adopted

Mathew Lawrence

9. Different Sales Strategy
 Relationship Strategy: The major key to success in selling is the
ability to establish working relationship with customers. The sales
force that builds effective relationship with the customers and provide
valuable service are usually high performers and top achievers.
Example: Hospitality, Travel & tourism.
• The Double-Win Strategy: In this strategy both customers and the
salesperson come out of the sale with a sense of satisfaction. Both feel satisfied
that, knowing that neither has taken advantage of the other and both have
profited, personally and professionally.
Example: Insurance
 Instant Service: No matter how efficiently and effectively goods/services are produced, if
they cannot be delivered to the customer in the quickest manner, all efforts made earlier are in
vain. Also the concept of supply chain had involved from this sales strategy.
Example: Short shelf life products- Consumable products

Mathew Lawrence

10. Different Sales Strategy (continued)
 Hard Sell v/s Soft Sell Strategy:

Hard Sell Soft Sell
Concern for self only Concern for customer
Canned Presentation Questions and Discussion
Talking Listening
Pushing product Providing buying
opportunities
Presenting features Presenting benefits
Advocating without Acknowledging needs
acknowledging
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11. Different Sales Strategy (continued)
 Client centered selling strategy: This strategy focuses the entire selling process and
efforts on the client’s need and problems. It considers who the client is, what he or she
does an where, when, why and how he/she does it. It demands the fullest knowledge of the
client as an individual.
Example: Designer garments, Rolls Royce

Mathew Lawrence

12. Problems of Sales Management
 Designing and Managing sales force: The greatest challenge
for any sales manager is to maintain the attrition of his sale team.
So the sales manager must maintain a vigilant check on the
various activities of the sales force.
 Sales force Authority: Delegation of authority has to be passed on to his subordinates.
Following are some of the delegation-
 Changing prices (negotiation)
 Credit Facility
 Quality and after sales assurance
 Settlements of Claims, etc.
 Target-setting: Target setting is necessary for achieving organizational goals. Sales
targets are fixed on the basis of past experience, time period, brand positioning.
 Sales Forecasting: Sales forecasting must change according to the environmental factors.
It is also one of the factor influencing the target setting.

Mathew Lawrence

13. Methods of selling
 Telemarketing: Selling concepts on the phone- Telemarketing outfit
works through a well networked team of trained telemarketers who make
calls to potential clients and establish direct contact with them. The key lies in
convincing the customer about the value of the product or service and fixing up
appointment.
Example: Housing loan, Insurance, selling, Credit cards etc.
• Sales on the Internet: A new dimension in the selling world. Many companies
are now promoting there products through web network. The greatest advantage
of sales on the internet is the market coverage it gets.
Example: E-bay, flipkart.com.
 Mail order Sales: In this method, customers do not visit the seller’s business premise, nor do they make
a personal examination of goods, before they are purchased . Orders are received through post and
goods are dispatched usually through Value Payable Parcel.
Example: Readers Digest, Magazines.

Mathew Lawrence

14. Methods of selling (continued)
 Retail Selling: Concentration of population in urban areas, increasing
flow of manufactured goods and improved methods of organising
business have led to the expansion of retail business. At present there

are different forms of retail formats giving rise to selling of goods.
Example: departmental store, hypermarket, supermarket, co-operatives etc.
 Wholesale Selling: A wholesaler performs different activities like-
 Assembling and buying
 Storing and warehousing
 Transportation
 Financing
 Risk Bearing
 Grading, packing etc.
Example: Cash and Carry.

Mathew Lawrence

15. Methods of selling (continued)
 Direct Selling: In this method, it only takes a minute to clinch a sale but choosing the
right minute to contact the customer involves a day’s work for a direct marketer.

“I don’t care how many degrees you have on the wall if
you don’t know how to sell you are probably going to
starve.”
Heavyweight boxer George Forman’s advice to his children
Mathew Lawrence

16. What creates a satisfied customer
Competence of A total customer
the Sales Person solution
21%
37%
25% Quality of the product
and service
17%
Competitive Price
Mathew Lawrence

17. What Is Personal Selling?
 Personal selling occurs where an individual salesperson sells a product, service or solution
to a client. Salespeople match the benefits of their offering to the specific needs of a client.
 Definition : A form of person to person communication in which a salesperson works with
prospective buyer and attempts to influence purchase in the direction of his or her
company’s products or services
 Some important aspects of Personal selling:
 It provides human touch to business transaction.
 It promotes long term business relationship.
 It enhances customer confidence
 It helps in understanding the pulse of the customer.
 It helps in customizing the product.
 Helps in convincing the customer about the product.

Mathew Lawrence

18. Changing face of Personal Selling
 In today’s competitive markets, a personal seller’s role is not just confined to persuading
prospective customers to buy products. In view of above, modern sales approach is based on the
following parameters.
 Value sharing: The sales people share the same value as
their customers and perceive the customer’s needs with the
sole view to serve them better.
 Relationship Building: A sales person should be able to
maintain the relationship with customers, which culminates in
building long term relations.
 Role Playing: The sales people, in personal selling go far beyond realizing sales volume.
They act as a consultant to their prospective customers constantly advising them of new
products and updates.
 Co-ordinated approach: with a view to providing total customer satisfaction, a co-ordinated
approach of sales people with their colleagues is necessary. Example-
maintenance, installation, trouble shooting etc.
Mathew Lawrence

19. Steps in Personal selling
Successful personal selling calls for an integrated approach devised from the experience of the
sales personal. The approach comprises steps they are as follows:
Prospectin Pre Approach
g approach
Presentatio
Follow-up n/
Demonstrati
on
Handling
Closing objectives
Mathew Lawrence

20. Prospectin
Prospecting g
Prospecting is the process of identifying prospective buyers of the product. The prospects are those
who have a need or will to buy and need or will to buy and power to pay. Prospects may be
Individuals or institutions. There are different ways to identify the prospects. Some of the most
Frequently used methods are described below.
• Cold Calling
• Acquaintance of Reference
• Center of Influence
• Personal Observation
• Direct mail / Telephone
• Company records
• Newspaper
• Other Methods
Mathew Lawrence

21. Pre
Pre-approach approach
Pre-approach is the second step in the selling process which emphasizes that the salesman should
know the likes and dislikes, needs, preference, habits, nature, economic and social status of his
prospect clients. There are certain significances of pre-approach they are as follows.
• It is a method by which a salesperson concentrates only on the prospects.
• It helps a salesperson gain all the possible information about the prospect before approaching
him.
• Because of the ample knowledge of the prospects a salesperson is able to give presentation
more efficiently and effectively and with confidence.
• With good presentation a salesperson is focused around the needs of the prospect
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22. Approaching Approach
In this stage the prospect and the salesperson comes in contact with each other face to face. Here
the salesman has the opportunity to understand and interact with the prospect in a better way.
Hence getting the attention of the prospect and persuading him to buy are the two main objectives
of a salesperson.
Methods of approaching: How do we make the
• Cashing in the brand name approach Initial contact & build
rapport
• Customer benefit approach
• Innovative product approach
There is only one time to
• Premium approach make a first
• The shock approach impression
• Survey approach
Mathew Lawrence

23. Approaching (continued)
Key Guidelines
 Prior Appointments
 Timing
 Command on the subject matter
 Relaxed approach
 Open mindedness
 Courtesies
 Effective presentation
 Follow ups
Mathew Lawrence

24. Presentatio
n/
Presentation / Demonstration Demonstrati
on
 A good presentation is as important as good product. Presentation can be in different forms like-
attractive packaging and display, conspicuous placement of the product in window display etc.
Presentation also includes the interior decoration of the shop and appearance. Requirements for
a good presentation includes –
 Location of display of the product.
 Packaging of the product.
 Explanation of the feature
 Should be able to appeal the prospect.
 Demonstrating the product: Demonstration is an exercise to prove the characteristic of the
product. It highlights various attributes of the product such as utility, performance, service etc.
Hence demonstration is imperative and essential for a prospect to make a buying decision.
Mathew Lawrence

25. Handling
Handling Objection objectives
 Objections, quires, doubts are signs of interest from prospects. It can taken as positive manner or
on a negative manner. Objections do take place when there is a good presentation. Or else the
salesperson may have failed to provide adequate information, or have not demonstrated how the
product meets the needs of the prospect IF HE HADN’T TOLD
ME WHAT HIS OBJECTION
WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!
Closing
 This is the last stage of any sales presentation.
The main aim of the close is to convince the prospect
and overcome the objections to sign the sales order form.
The sales person should be alert and use his good judgment
to spot an opportunity when the prospect is in a good mood.
Mathew Lawrence

26. Follow ups Follow-up
 Follow up is as important as other pervious stages. It is this stage where the sales person
maintains the clients on a long term. Importance of follow-ups are –
 Building relationships
 Updates from clients.
 Cross selling
 Re - purchase
 Getting reference
 Helps in avoid other competitors
 Updating the market
 Develops loyal clients.
 Necessary for customer satisfaction
Mathew Lawrence

27. Difference between Advertising and Personal Selling
 On a broad prospective both advertising and personal selling are the means to communicate with
the target customers for its products. But both has its own application and uses to communicate.
Advertising Personal Selling
Marketin
g Mix One way Two way
communication communication
No direct contact Direct contact with
Produc Promotio with customer customer
Price Place
t n Cannot convince Can convince the
the customer customer
Has a large reach Has limited reach
Public Sales
Advertisin Persona
Relatio Promotio
g l Selling Costly approach Less costly
ns n
approach
Applies Pull Applies Push
strategy strategy
Mathew Lawrence

28. Theories in Personal Selling
 AIDAS Theory: This theory is based on the premise that during a sale presentation, the prospect
consciously goes through five different stages- Attention, Interest, Desire, Action and Satisfaction.
Attention Interest Desire Action Satisfaction
Attention: The sales person should attract the prospect to his presentation before he
actually goes into the details of the product.
Interest: Once the sales person has successfully gained prospect’s attention, he/she should maintain the
interest of the prospect throughout the presentation.
Desire: After gaining proper interest the sales person has to create a strong desire in the prospect’s mind to
purchase his product.
Action: At this stage a sales person should induce the prospects in to actually buying the product.
Satisfaction: Once the prospect has placed an order, the sales person ensures that the prospect carries the
impression of having taken the right decision.
Example: TATA Nano
Mathew Lawrence

29. Theories in Personal Selling (Continued)
 Right set of Circumstances Theory: The advocates of this theory define that all the
circumstances, which led to the sales were appropriate for the sales to have taken place. In
other words, if the sales person is successful in securing the prospect’s
attention, maintaining his interest and inducing his desire to buy the product, the sales will
result. Moreover, if the sales person is highly skilled, he will take control of the
presentation, which would lead to sales
 Buying Formula Theory: This theory emphasize on the buyer. This theory emphasizes on
the needs or problems of the buyer. The sales person assist the buyer in finding an
appropriate solution to the problem. This solution may be in terms of a product or service.
Mathew Lawrence

30. Assignment- 1
Case Study Analysis
Identify a company who launched its product with the
application of AIDAS theory and explain each stage?
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31. Mathew Lawrence