1. Sales Management – MAM- VI-semester
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.
The process of gathering, analyzing and interpreting information about a market, about a
product or service to be offered for sale in that market, and about the past, present and
potential customers for the product or service; research into the characteristics, spending
habits, location and needs of your business's target market, the industry as a whole, and the
particular competitors you face
It is defined as the process of estimating future sales. Accurate sales forecasts enable
companies to make informed business decisions and predict short-term and long-term
performance. Companies can base their forecasts on past sales data, industry-wide
comparisons, and economic trends.
2. Methods of sales forecasting
1. Jury of Executive Opinion. 2. Sales Force Opinion, 3. Test Marketing Result. 4.
Consumer’s Buying Plan, 5. Market Factor Analysis. 6. Expert Opinion, 7. Econometric
Model Building. 8. Past Sales (Historical Method), 9. Statistical Methods.
It is defined as a strategy that sets out sales targets and tactics for your business, and
identifies the steps you will take to meet your targets. A sales plan will help you: define a set
Sales Planning is a key function in the procedure of sales management process. Sales
planning is an effective method that involves sales forecasting, demand management, setting
profit-based sales targets, and the written execution steps of a sales plan. Sales Planning is the
process of organizing activities that are mandatory to achieve business goals. of sales targets
for your business. choose sales strategies that are suited to your target market
A sales planning that is commonly used in business strategic planning is the VMGS Model.
When your organization wants to achieve higher sales targets through their planning, then
they use this framework for reaching the desired objective.
The VMGS model is based on the observation that, when you want to create an effective
plan, you will need to follow several elements, which are −
• Goals and objectives
• Strategies and tactics
Performance Measurement [ of sales forces]
Performance refers to output results and their outcomes obtained from processes, products,
and services that permit evaluation and comparison relative to goals, standards, past results,
and other organisations. Performance can be expressed in non-financial and financial terms.
Measurement refers to numerical information that quantifies input, output, and performance
dimensions of processes, products, services, and the overall organisation (outcomes).
3. Performance measures might be simple (derived from one measurement) or composite.
Performance measurement is fundamental to organisational improvement. The importance of
performance measurement has increased with the realisation that to be successful in the long-
term requires meeting (and therefore measuring performance against) all stakeholders' needs
including customers, consumers, employees, suppliers, local community stakeholders, and
shareholders. While the importance of performance measurement is difficult to quantify it is
evident that in virtually all texts, research, and case studies on organisational improvement,
that performance measurement plays a central role. It is worth noting that performance
measurement is a requirement for benchmarking and business excellence
Sales organisation consists of human beings or persons working together for the effective
marketing of products manufactured by the firm or the products purchased for resale. Sales
organisation co-ordinates the efforts of members of a group to bring about a desirable result.
It provides an efficient, economic and flexible administrative set up to ensure timely
movement of products from the warehouse to the ultimate consumer. Thus it provides
satisfactory job to buyers and sellers.
A sales organisation performs the functions of planning, organizing and controlling
marketing and distribution of products. Sales organisation is a foundation for effective sales
planning and sales policies. Systematic execution of plans and policies and programmes of a
sales organisation control all the sales activities. As such it ensures maximum efficiency and
profitability without losing consumer service and satisfaction.
4. The following are the important functions of a sales organisation:
1. Analysis of markets thoroughly, including product and market research.
2. Adoption of a selfishly sound but defensible sales policy.
3. Accurate market or sales forecasting and planning the sales campaign, based on relevant
4. Deciding about prices and terms of sales and pricing policies.
5. Packaging for the consumer wants a container which will satisfy his desire for attractive
appearance, keeping qualities, utility, and correct price and many other factors.
6. Branding the product.
7. Deciding the channels of distribution.
8. Selection, training and control of salesmen and fixing their remuneration.
9. Allocation of Territory and quota-setting.
10. Sales programmers and sales promotion activities.
11. Arranging for advertising and publicity.
12. Order preparation and office recording.
13. Preparation of customer’s record cards.
14. Scrutiny and recording of reports.
15. Study of statistical records and returns.
16. Maintenance of salesmen’s records.
5. Sales Budget
A sales budget estimates the sales in units as well as the estimated earnings from these sales.
Budgeting is important for any business. Without a budget companies can’t track process or
improve performance. The first step in creating a master company while budget is to create a
Characteristics of good salesmen
Passionate, Ingenious, Empathetic, Accountable, Well Prepared, Tareget oriented, team sprit,
appetite for more , excellent communications, convening ability, patience, Tech-Savvy,
Highly Engaged, Goal Oriented, Relationship Driven
Unit – III
Recruiting, Selection and Training of Sales force
The recruitment and selection of a sales force often is the key to success for an organization.
A successful sales team leads to profitability and future growth. Most organizations that hire
sales professionals use a very detailed, well-orchestrated process to ensure that the candidates
selected will meet or exceed targeted sales goals.
6. Recruitment (hiring) refers to the overall process of attracting, short listing, selecting and
appointing suitable candidates for jobs (either permanent or temporary) within an
The main selection process steps are:
Receiving applications: after passing the preliminary interview the candidate is asked to fill
the standard application form. The application form generally consists the information about
the age, qualification, experience etc. of the candidate on the basis of which the interviewer
gets the idea about the candidate and this information also helps in formulating questions.
Screening of applications: after receiving the applications the screening committee screens
the applications. Only the candidates who qualify the criteria of the screening committee are
called for the interview. Usually the candidates selected for interview are four to six times
than the number of posts. Interview letter is sent to them or they are called telephonically.
Preliminary interview: the selection process generally starts with this step where the totally
unsuitable applicant is eliminated. Thus the organization is saved from the expenses of
processing the applicant through the remaining steps of selection
7. 4. Employment test: after getting the interview letter and before going to the interview there
is one more step and that is the employment tests. These tests are done to check the ability of
the candidate. These tests vary from organization to organization and change as per the need
of the particular job. these tests are intelligence tests, aptitude tests, trade tests, interest test,
personality tests etc. these tests must be designed properly otherwise they will not good
indicator of one knowledge.
5. Employment interview: the candidates who qualify the above tests are called for the
employment interview. This interview is done to get more information about the candidate, to
give him the actual picture of what is required from him, to check the communication skill of
the candidate etc. for senior position post; a panel is prepared who take the interview. At the
end of interview of each candidate the members of panel discuss about the candidate and give
him the grades.
Checking references: before selecting the employ the prospective employee generally look
out for the referees given by the candidate. To check about the candidate’s past record,
reputation, police record etc.
Physical examination: The organizations generally prefer medical examination to be
incurred of the person to avoid time and expenditure spend on the medically unfit person.
Sometimes the organization may ask the candidate to get them examined from the medical
8. Final selection: after all these steps the candidate is selected finally. He is appointed by
issuing appointment letter. Initially he is appointed on probation basis after finding his work
satisfactory he is appointed as permanent employee of the organization or otherwise he may
It involves the personal development of skills and techniques related to creating and
exploring new sales opportunities, as well as closing sales for an organization
Elements of training [ACMEE]
• Aim of the training
• Contents of training
• Methodology adopted for training
• Execution of training and
• Evaluation post training
9. Unit –IV
Areas of sales Training
A company knowledge base can function like a repository, containing critical information
for the daily functioning of your business, as well as its long-term success. It provides an
effective way to store important information regarding your customers, employees, products,
and services. It helps employees access important information to address customer service
issues, resolve problems, and gain insight for workforce collaboration.
Product knowledge is an essential sales skill. Understanding your products' features allows
you to present their benefits accurately and persuasively. Customers respond to enthusiastic
sales staff who are passionate about their products and eager to share the benefits with them
Successful salespeople need the additional edge of knowing the industry they are pitching to,
the person they are dealing with and how their product or service can benefit the individual
company to whom it is proposed. This requires knowledge of not only your own company but
your potential customer’s company.
Modern day salespeople realize it takes more than just strategy and training to succeed in the
field. It requires the four key aspects of the potential client’s business that is integral to
delivering an efficient sales pitch.
• Knowledge of the customer includes an understanding of their business and daily
aspects of their job. This is how you determine what aspects of your service to
promote as being able to solve your client’s problems.
• Knowledge of the industry involves knowing what the competition offers and the
market in general, and the role of your client’s company in the overall scheme.
• Knowledge of the product is more than just knowing what your client offers but the
various applications it has and how it is commonly used and how it can potential
serve your customer’s clients.
• Knowledge of your client’s company means you understand their message, strategy
and why their product is of value.
10. Sales Meeting / Sales conference.
A sales meeting is a gathering in which a product or service is being discussed, and the
benefits are outlined to the potential buyer. The sales meeting is not always a presentation
format; it can sometimes be an informal conversation, phone call or online interaction. The
parties involved have this meeting between the initial contact and final purchase, in order to
entice the customer.
A sales contest is a motivational program in which rewards are offered to sales people based
upon their sales and/or results. There are three types: Direct competition — the sales people
compete against each other and there is one winner. Team competition — there are teams
which are rewarded collectively for winning
Sales compensation is the combination of base salary, commission, and incentives that are
used to drive the performance of a sales organization. A sales compensation plan is the
individual plan for a sales representative within your sales organization, and it should be
designed with specific concepts and components in mind, based on their role within the sales
cycle, types of sales engagements, seniority, and more. Different sales team roles will require
plans that are unique to each rep. Sales compensation management is the method of
overseeing plans and ensuring components drive performance aligned with organizational
11. Non-monetary compensation
It include benefits, flex-time, time off, free or discounted parking, gym membership
discounts, retirement matching, mentoring programs, tuition assistance, and childcare. A
benefits plan is designed to address a specific need and is often provided in a non-cash form.
A compensation package is the combination of salary and fringe benefits an employer
provides to an employee. When evaluating competing job offers, a job-seeker should consider
the total package and not just salary. There is almost an unlimited number of potential
benefits packages offered by employers.
Sales force evaluation is the comparison of sales force objectives with results. A model of
the evaluation process is shown in Figure 17.1. It begins with the setting of sales force
objectives which may be financial, such as sales revenues, profits and expenses; market-
orientated, such as market share; or customer-based such as customer satisfaction and service
levels. Then, the sales strategy must be decided to show how the objectives are to be
achieved. Next, performance standards should be set for the overall company, regions,
12. products, salespeople and accounts. Results are then measured and compared with
performance standards, the following are the methods used for evaluation of sales force
Sales force control
Sales force control involves measuring sales force performance, comparing it with standards,
detecting deviations and causes, and, if necessary, taking corrective actions so that
performance takes place as per plan.
• Sales force controlling process involves four steps:
• Setting Sales Force Standards
• Measuring Actual Sales Force Performance
• Comparing Actual Performance with Standards
13. Unit – V
According to Prof Stephenson, “Salesmanship refers to conscious efforts on the part of the
seller to induce a prospective buyer to purchase something that he had not really decided to
buy, even if he had thought of it favourably. It consists of persuading people to buy what you
have for sale in making them want it, in helping to make up their minds
Thus, salesmanship is the process of persuading a person to buy goods or services. It does not
mean that salesmanship is applied only to personal selling; it can also be applied to
advertising- printed salesmanship. Salesmanship in its broader meaning, includes all types of
persuasion means, by a seller, viz., advertising, personal selling and other methods.
Characteristics of a good salesman:
• The principal duty is to make sales of products or services.
• He has to do the assigned duty (travelling).
• He has to make collection of bills relating to sale.
• He has to make report-Sales made, Calls made, Services rendered, customers lost,
competition and any other matters, relating to firm.
• All complainants must be satisfied peacefully.
• He has to attend sales meetings.
• A salesman with his experience must supply information in order to solve problems
relating to product or the firm.
• He must maintain a good relation with the customers.
• He must assist the customers to make good selection.
• He must develop a goodwill for the firm and the products.
• He must have cooperative habits
14. • Establishing good relationship with a variety of people.
• Learning quickly and adapting smoothly.
• Planning ahead and efficiently managing his time and efforts.
• Working hard to achieve his goals, dedicating himself to provide long-term service,
rather than having a get-rich-quick attitude.
• Communicating clearly both in speech and in writing.
• Thinking analytically and learning to break problems down to their basic components.
• Producing constantly both in quality and quantity rather than performing erratically.
• Persisting steadily his goal and not giving up easily.
• Possessing and living up to high moral characteristics that enable people to admire,,
respect and trust him.
Prospecting is the first step in the sales process, which consists of identifying potential
customers, aka prospects. The goal of prospecting is to develop a database of likely
customers and then systematically communicate with them in the hopes of converting them
from potential customer to current customer.
To make contact with sales suspects – buyers who may or may not be potential customers for
your business – there are a number of popular tools and tactics you can use, including:
• Phone calls – designed to initiate a discussion with the individual who answers the
• Automated voicemail messages – designed to try and persuade the listener to take
action to get more information, such as by visiting a website or making a phone call
• Email – designed to share information and entice the recipient to take an action that
will identify them as a prospect
15. • Direct mail – sent in the mail as flyers, postcards, or catalogs, for example, designed
to share information that may entice you to consider buying
A sales lead is the identification data gathered from a prospective buyer of a product or
service. Businesses gain access to sales leads through advertising, trade shows, direct
mailings, third-parties, and other marketing efforts. A sales lead is not a sales prospect
because further qualification of the new client possibility is necessary to determine their
intent and interest
Making a sales presentation isn't something you do on the fly. Always use a written
presentation. The basic structure of any sales presentation includes five key points: Build
rapport with your prospect, introduce the business topic, ask questions to better understand
your prospect's needs, summarize your key selling points, and close the sale. Think about the
three major selling points of your product or service. Develop leading questions to probe your
customer's reactions and needs.
16. Usually pre-arranged and face-to-face meeting between a salesperson and a customer or
prospect for the purpose of generating a sale
Types of Sales Calls
• Cold Call: An unsolicited visit or phone call made by someone trying to sell goods or
• Warm Call: Contact with a prospect through an introduction at a business event or
from a referral. ...
• Sales Appointment: A set time the prospect and salesperson agree upon to discuss the
Effective selling technique
There is a real art to selling, as any salesperson probably knows. You walk a fine line
between alienating the customer and making them feel comfortable. ... Developing a solid
and proven technique is a big part of learning how to sell efficiently. Here are five selling
techniques every salesperson should master
• Listen to the emotional side of your prospect or client:
Focus on your prospect or client's needs:
We've talked about it before, but it's worth mentioning again. You may be
• Use language that focuses on your prospect or client:
Help your prospect see the bottom line:.
• Find out your prospect's priorities:
Know your prospect:
Focus on why they should buy - not their objections:
• Sell the benefits - not the product
• Never rush the sale or the customer, Focus on your client's success
Relationship marketing is a strategy designed to foster customer loyalty, interaction and
long-term engagement. It is designed to develop strong connections with customers by
17. providing them with information directly suited to their needs and interests and by promoting
Goals of Relationship Marketing
• Identify the customers who spend above average. Find out whether they are loyal to
the company, if not find out ways to keep them with the company. The company
should try to continuously lure them to buy its product, even by offering loyalty
• Loyal customers can be even better customers if they buy more products and services
from the company over time. Loyal customers not only provide a solid base for the
organization; they may represent growth potential too.
• Find out the group of new customers, which hold better promise than the others do.
One way of doing so is to tap the customers who are buying the company’s product
not in response to a price discount. Then the company should try to nurture such
customers by finding out why they bought the product and by trying to strive to give
the customer whatever they look from it.
• As customers move from one life cycle stage from another, needs evolve, buying
pattern fluctuates and product choices shift. A smart and live relationship company
should recognize such change of needs and wants, and should gear itself up to suit the
advantage. Failure to do so might result in drifting of the customer.
Tools and tactics for Relationship Marketing
Networking, online and off, can be a powerful relationship marketing technique.
2. Cherish Each Customer
Make sure that every interaction you have with your customers shows them that they are
3. Listen to Your Customers
18. Listen to your customers, Even listening and responding to compliments can be beneficial.
People love knowing they’ve been heard.
4. Build a Brand Identity
A memorable brand will make it easy for customers to find you and your product
5. Give Your Customers Free Information
Give them answers! Identify the topics and interests your customers have!
6. Loyalty Rewards
if you want to truly succeed at relationship marketing, and you should, you need to expand
beyond the traditional types of programs. People love getting stuff and people love being
recognized. Combine the two along with something else
7. Communicate Often
Relationships marketing is truly based on communication.
8. Special Events
Holding a special event for your existing or prospective customers is a great way to build
Common personal selling tools and techniques include the following:
• Sales presentations: in-person or virtual presentations to inform prospective
customers about a product, service, or organization
• Conversations: relationship-building dialogue with prospective buyers for the
purposes of influencing or making sales
• Demonstrations: demonstrating how a product or service works and the benefits it
offers, highlighting advantageous features and how the offering solves problems the
19. • Addressing objections: identifying and addressing the concerns of prospective
customers, to remove any perceived obstacles to making a purchase
• Field selling: sales calls by a sales representative to connect with target customers in
person or via phone
• Retail selling: in-store assistance from a sales clerk to help customers find, select, and
purchase products that meet their needs
• Door-to-door selling: offering products for sale by going door-to-door in a
• Consultative selling: consultation with a prospective customer, where a sales
representative (or consultant) learns about the problems the customer wants to solve
and recommends solutions to the customer’s particular problem
• Reference selling: using satisfied customers and their positive experiences to
convince target customers to purchase a product or service
The value-added selling technique is defined as selling a product by including incentives or
Value added selling is one of several sales techniques that relies on building on the inherent
value of a product or service. By its nature the value add technique is a more flexible and
customized selling approach that requires input from a defined range of average customers.
This customer feedback helps sales and marketing professionals to outline value propositions
that are likely to benefit the largest number of customers.