ASSIGNMENT ON MARKETING MANAGEMENT

Sales objectives Sales strategies Emerging trends in sales management

SUBMITTED BY: MOHIT JAIN ROLL NO- 02714901709 BBA (GEN) V-SEM

SUBMITTED TO: Dr. RAJESHWARI MALIK

Contents of assignment: Page No. Sales objectives

Quantitative Objectives Qualitative Objectives

3-6
Setting SMART objectives

Sales Strategies

Developing Types of sales strategy

sales

strategy

7-13

Emerging trends in sales management

Global culture Knowledge management Sales Professionalism

14-20
CRM SEM Team Selling

SALES OBJECTIVES
What is sale:
Sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity.In simple language exchanging a product for a consideration is sale.

Sales objectives :
Sales entail numerous objectives which are executed by sales managers. The objectives of sales are decided on the basis of where the organization stands and where it wants to reach. It is a collaborated effort from the top management along with the marketing managers and sales managers to provide with a targeted estimate. Thus, sales objectives are derived from the goals of the company. The below grid demonstrate the same:

Company Goals

Sales Objectives

Expand the market coverage Increase sales by 10% over the next 2 years to include X Increase the number of new countries customers by 15% in the next To establish solid partner year relationships in X countries Decrease the number of back To hire and train a sales force in orders and customer complaints X countries by 5% Increase the expertise of in- country sales force by10%

In general, the sales exist to achieve dual objectives for the companies which are categorized: Quantitative(short term) Qualitative(Long term)

SALES OBJECTIVES

QUANTITATIVE OBJECTIVES

QUALITATIVE OBJECTIVES

After deciding the target market segment its important for the company to decide specific sales objectives for the segment. It can set the quantity and amount of sales it want in that segment, the profits expected from it, the satisfaction measure of the customer, increase on promotion to beat competition, increasing middlemen etc.The sales objectives thus get broadly divided into 2 components i.e. quantitative & qualitative. These dual objectives differ in the scope and time focus. While the quantitative objectives are narrow in scope and short-term focused, the qualitative objectives are wider in scope and focus on long-term achievements.

Quantitative objectives:
The quantitative objectives as the name suggests are centered on the quantity of the sales and focuses on the amount of accounts (customers) to be captured as well as the profit earning sales. They are often termed as the short-term sales objectives as they focus on operating results. Some of the quantitative objectives of the sales are: 4

To retain and capture market share To determine sales volume in ways that contribute profitability Obtain new accounts(customers) in time Keep personal expenses within certified limit To secure target % of certain accounts of business

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Qualitative objectives:
The qualitative objectives are long-term in scope and focus on providing value to customer proposition. Such objectives define the long term selling objectives and the relation in sales which company looks forward with its customers. Some of the qualitative objectives are: Do the entire selling job Service existing accounts Seek and maintain customer cooperation To assist the dealer in selling the product line To provide technical advice wherever necessary To insist on training of middlemen & sales personnel To collect and report marketing information To provide for and advice middlemen

Setting SMART Objectives:

Setting objectives are important; it focuses the sales on specific aims over a period of time and can motivate staff to meet the objectives set. A simple acronym used to set sales objectives is called SMART objectives. SMART stands for Specific, Measurable, Achievable, Realistic and Time (SMART)

SMART Meaning Examples Specific Objectives should specify what For example a soft drinks company may want to achieve 3% market they want to achieve. share in 12 months. Measurable You should be able to A 3% market share over 12 months means that each month market measure whether you are meeting the share targets can be measured against a specific goal. objectives or not. Achievable - Are the objectives you set, Is the 3% objective for the 12 months achievable? Does the company achievable and attainable? have the resources, man power and finances to achieve it? Realistic Can you realistically achieve Is the 3% objective over a 12 month period realistic or does the the objectives with the resources you company need longer? Does the company have the skills and resources have? to achieve this over the time period set. Time When do you want to achieve the In our example the company has set themselves a period of 12 months set objectives? to achieve the 3% market share target.

SALES STRATEGIES:
What is a sales strategy?
A sales strategy consists of a plan that positions a companys brand or product to gain a competitive advantage. Successful strategies help the sales force focus on target market customers and communicate with them in relevant, meaningful ways. Sales representatives need to know how their products or services can solve customer problems. A successful sales strategy conveys this so that the sales force spends time targeting the correct customers at the right time A sales strategy sets out in detail how you will get your product or service in front of people who need it. Looking at it strategically will give you a comprehensive, methodical approach to ensuring you marketing your business correctly and you are approaching the right clients. A sales strategy can be based on your business and marketing plans. It looks at how you will deliver objectives set out in your marketing plan, as well as how you have chosen to segment your target market and how you will fund you marketing activities.

Developing a sales strategy:

It involves 3 steps: 1. Market Analysis 2. Setting Objectives

3. Determining Sales Strategy Market Analysis: It involves analysis of political, social, cultural, economical, technical environment in which the enterprise is working to know the macro environment conditions. Further a SWOT analysis of the firm is carried out on the basis of above to know strengths and weakness of company. It is further find out why clients need the company. Find out who they are and the problem they needed to solve when they first approached your business. Identifying why your customers use your business will help you to approach new customers. List your clients' similarities and differences to help you create profiles for each type of client. If you are starting a new business, try to find out about competitors' clients: who are your existing, potential and key customers? Rank the groups in order of profitability to give you an idea of where you should be aiming to spend money. If a client is costing you more than you are making from them, make sure you have a good reason for selling to them. For example, if you are selling to a large company, it might be that they are providing you with regular revenue or drawing attention to your business in their promotional activities. Analyze your sales costs and try to cut down on your sales costs to unprofitable customers. This might be by using an alternative distribution method or cheaper sales channels. Set out your sales objectives The objective setting and their specificity as per SMART rule is already discussed above. We consider how we will remove barriers to sales. Barriers can be anything from not making enough calls or customer visits to the need to give your sales team better training or the need to recruit another sales person. We also look at the marketing and sales activities the business has undertaken and try to work out what the most profitable activities have been. This could be over the course of the last month, three months or year. Decide on your sales channels and sales strategy: Reaching the right customers is easier said than down. Once you have worked out what your market is and how it's broken down, you need to decide which sales channels to use: o Direct or on-site sales are face-to-face, and is the model used by most retailers 8

o o o o

The internet is a versatile way to sell Telesales can be effective for business-to-business and repeat sales, but generally has a low conversion rate Direct mail also has quite a low conversion rate but is less intrusive than telesales If you are a manufacturer, you might want to sell through an agent or intermediary. This could be a retailer, or it could be an agent abroad.

Some of the channels are: Telemarketing Direct Mail Online Advertising

TelemarketingTelemarketing campaigns help companies reach a group of targeted prospects or customers to communicate a message, gather feedback, and determine a next step for the relationship. Telemarketing can be an important part of any marketing strategy for example, you can use it to

Generate leads Qualify prospects who have downloaded information from your website or attended a webinar Follow up on a direct mail or email offer Take orders for special promotions Keep your marketing database current Conduct marketing research

In many companies, sales reps should make hundreds or thousands of cold calls every month to set appointments and/or generate leads. But busy reps usually prefer to work on closing their existing pipeline. Prospecting often slips on the priority list; as a result, the sales pipeline isnt always filled with new prospects. If cold calling is an effective way to introduce your company to new prospects, dont ignore it. Instead of forcing a sales team to devote time to prospecting, many companies use an in-house or outsourced 9

telemarketing group to make a high volume of calls, find decision makers and qualify leads for the field sales group. When telemarketers handle prospecting, salespeople can spend 100% of their time selling and closing. Your company can produce more revenue in the same amount of time; your reps earn more commission, theyre doing what they love, and theyre more satisfied with their jobs.

Direct Mail
For many years, direct mail has been an important marketing vehicle. Even though many companies have turned to email and internet marketing, a targeted and well-produced mail campaign can still be highly effective. Direct mail campaigns can generate leads, promote special offers, support other campaigns, communicate with customers and raise your visibility in your market. You can be very simple or wildly creative depending on your goals for example, you can use

A handwritten note A simple but effective sales letter A digitally-printed brochure with the prospects name printed in the headline and body copy A custom piece that you develop for a specific purpose

Direct mail can be an efficient vehicle for your company if you focus on strategic, targeted mailings instead of large bulk mail campaigns, which draw very low response rates at much higher costs than online marketing. Instead, consider using mail for small campaigns:

Invite current customers and top prospects to an event youre holding at a trade show Send product literature with the prospects name and custom specifications printed into the brochure itself (via digital printing) Announce a compelling sale

When you use the right strategy and execution, direct mail can be a strong addition to your marketing arsenal.

Online Advertising
Online advertising offers marketers an opportunity to reach very broad or very targeted prospects to generate leads,

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communicate a message and raise visibility. The term online advertising refers to three general types of campaigns:

Banner ad campaigns on websites Ads or sponsored content on targeted email newsletters Affiliate programs that enable other companies to put your ads on their sites in return for commission on clicks or sales

While a B2B marketer has a smaller universe of prospects than a B2C marketer, the value of each prospect is typically far greater. With a targeted campaign and a good offer, you may only need to generate a handful of highly qualified prospects to generate substantial revenue. Benefits of online advertising:

Timing: Reach businesspeople when theyre actively looking for information, vendors and solutions. Immediacy: You can test and launch very quickly and generate response almost immediately. Targeting: You can deliver your message to very specific audiences. Lead generation and nurturing: You can capture prospects early, provide valuable information, and nurture them throughout the sales process. Cost: You can reach a large audience quickly and at a lower cost than many other media. Scalability: You can run campaigns of any size at any budget level.

SALES STRATEGIES
After deciding the sales channel its important to set a strategy which are action plans to achieve the objectives set for such channels. Some important strategies are listed below: Triple tiered sales strategy Customer Retention strategy Pull strategy Push strategy

TRIPLE-TIERED SALES STRATEGY11

The development of any type of plan begins with research. The insight gained for a competitive advantage comes from the marketplace not from your mind. The approach to use is what is called "Triple-tiered Sales Strategy". Look at the client and the outside influences on their business. Approach all three tiers to understand your customer. Tier 1: Associations: What associations does your target customer belong to? Contact the membership director and establish a relationship not for selling but to understand their member's needs. Tier 2: Suppliers: Identify non-competitive suppliers who sell to your customer. Learn their challenges and look for partnering solutions. Tier 3: Customer: Work directly with your customer and ask them what their needs are and if your business may offer a possible solution. Example: An excellent example of developing a "triple-tiered sales strategy" is a story of a small accounting firm. This firm decided to target independent truck drivers for accounting services. The competition for this firm was a big accounting company. This small business approached the truck drivers association and learned that one concern of their membership was receiving financing for a new vehicle. A discussion with the suppliers of trucks, revealed financing was only approved after the truckers supplied financial statements. The financials were often prepared by a large accounting firm who set appointments on their time and in their office. The pieces of the puzzle were now coming together. The customer was the last piece of critical information. Truckers were frustrated by the inconvenience of visiting an accounting firm because of the time they spend on the road. The best solution was to bring the accounting service to the customer on their terms and time. The small accounting office had defined a clear sales strategy: offer inhome financial statement preparation for truck drivers seeking financing through truck manufacturers. All sales leads would be referred from the supplier. This strategy was a win-win for the association, the supplier, the customer and the accounting firm. The moral of the story is to gain a competitive advantage by looking at both sides of the equation, tactics and strategy. Use the triple-tiered approach to win business and outsell the big companies in your market. 12

CUSTOMER RETENTION STRATEGYCustomer retention is about keeping the customers youve spent that money to acquire. And if youre in an industry where they make multiple purchases over the years, your entire team should be very focused on retaining those customers:

Delivering service thats consistent with your value proposition and brand Cross-selling, up-selling and asking for referrals from existing customers Developing programs to increase customer loyalty and decrease turnover Knowing the lifetime value for different segments and using that data to improve your marketing Prioritizing retention as a major focus in your annual marketing plan

Studies say it costs ten times more to generate a new customer than to maintain an existing one. If you have a small number of customers, losing a few could cripple your company. Even if you have a large number of customers, a small increase in your retention rate should dramatically increase your profits. With strong retention strategy, its much easier to grow your revenue and profitability

PUSH STRATEGY13

Push marketing is a type of marketing sales strategy that involves using a company's distribution channels to push products out into the marketplace. In this strategy: The developer of the product will promote the product to the distributors. Then the distributors will promote the product to the resellers of these products. The resellers will then promote the products to consumers. With this type of marketing, the consumer does not request the product, but the sellers promote it to them to make sales. This type of marketing requires a talented sales staff to get the product out to the market.

PULL STRATEGYPull strategy is another type of sales marketing strategy that companies use in order to increase sales. With this type of marketing strategy, the goal is: To create a large amount of demand so that customers request the products. An example of this type of marketing is when a computer processor company advertises its own processors so that consumers look for it in their favorite brands of computer. Most consumers do not buy computer processors individually, but they want to make sure that the computer they buy contains a good processor. With this type of marketing, consumers ask for particular products by name.

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EMERGING TRENDS IN SALES MANAGEMENT:

The future of selling requires changes to keep pace with generational and cultural shifts that create behavioral changes in decisions. The selling representative of tomorrow must work efficiently and quickly to maintain the pace. Failure of change leads to competitive elimination.

Selling is slowly becoming a profession, possibly an industry nothing happens in any business without a sale. Professional sales training is now required, as is the need for useful technology that creates efficiency with customer relationships. However, the worlds challenges are changing the manner of selling. New issues await todays professional. These trends require flexibility, tenacity, and the opportunity to educate ourselves in a variety of disciplines.

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SALES MANAGEMENT TRENDS From To

The sales management trends have undergone a drastic change over a period of time. The sale is not limited to only single product transaction but building relationship with customer. The sales targets are met in teams and sales focus is shifting from volume to productivity of money spend and talent used. Since the advent of global economy a shift from local to global accounts of customer base has made seller to think globally and act locally. The emerging trends focus on following things: Global Culture Keeping pace with technology: Knowledge management Customer services Sales professionalism Search Engine marketing (SEM) Customer Relationship Management (CRM) Team Selling

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Global Culture
Selling professionals are experiencing a cultural shift in their respective account bases. It is vital for all selling professionals to think globally and act locally. The current economy is morphing faster than in the days of both immigration and the Industrial Revolution. Selling representatives must be cautious about words, dress, linguistics, and even electronic communication. Anything said or written can be misinterpreted.

Tomorrow is that selling professionals must begin the study of international cultures and languages. The acquired knowledge assists professionals to communicate articulately with global clients, which provides better relationships. Gaining a better understanding of business etiquette, linguistics, mannerisms, and culture enables selling professionals to diminish barriers and gain better insight into client issues. Moreover, the ability to engage cross-culturally enables selling professionals to competition-proof their capabilities.

Knowledge Management
As computer software developed, it enabled sales people to take data and collect useful information such as buying patterns and favored products. In todays selling world content is king. Selling professionals require a wealth of knowledge to remain competitive. Tomorrow is selling professional requires better insight into the customers world. Professionals must study competitors, the industry, and the client to help determine future needs. Using knowledge to define the customers problem help to remain

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competitive and offer provocative insights to value addition. Customers engage with those they trust.

Customer services:
Peter Drucker once stated that an organization exists for one reason: the customer. Unfortunately, the wrestlers of market focus on irrelevant profits. Customers desire to be with those they trust; this is the key differentiator in a marketplace cluttered with vendors. Customer service extends internally and externally and relies on people, processes, and physical evidence. Selling professionals and peers will need to employ a true customer orientation, from answering telephones to returning phone calls. Procrastination and avoidance will be grounds for termination as organizations attempt closeness with customers. Also, processes must be efficient and client-friendly. Lengthy forms and waiting times only add frustration. Tomorrow is leaders will constantly walk the process to eliminate tardiness and frustration. Finally, customer service requires a clean act. Selling professionals will dress differently, act differently, and speak differently. Clients make decisions on how the sale process goes which in case is duty of seller to make it go smoothly.

Sales Professionalism
The diminishing labour pool and the constant drive for profits disable organizations capability to acquire the best talent. The largest asset of any organization is talent, especially sales talent. Nothing happens in an organization without someone is selling something. Research illustrates that up to 80% of sales employees have no formal selling education. 18

 Future sales leaders will require education acquisition. Simply put, selling is a profession and must be treated as such. Future leaders must engage in the proper education to increase proficiency and effectiveness. However, training must not be event-based. The purpose for training is to decrease ineffective tendencies and provide strengths. New habits manifest over months, not hours in a classroom.

Search Engine Marketing (SEM)

Search marketing is about gaining visibility on search engines when users search for terms that relate to your business. For most companies, ranking highly in search results isnt luck its a result of solid effort in one or both categories of search marketing:

Organic search (SEO): When you enter a keyword or phrase into a search engine like Google or Yahoo!, the organic results are displayed in the main body of the page. When your prospects search for information about your products and services, you want to rank highly in search engine results. By optimizing your site, you can improve your ranking for important search terms and phrases (keywords). You can also improve your rank by getting other important sites to link to yours. Paid search (SEM) enables you to buy listings in the sponsored area of a search engine. There are a variety of paid search programs, but the most common is called pay-per-click (PPC), meaning you only pay for a listing when a prospect clicks your ad.

In search marketing, companies focus on driving more traffic to targeted areas of their website. They use search engine marketing to:

Generate new leads Sell products Build their brand Divert traffic from their competitors

Studies show that most businesspeople research their problems, potential purchases and vendors online and use a search engine in the process. And the higher the price of the product/service, the earlier they search.

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For many businesses, generating only a handful of additional serious prospects can make a substantial difference in revenue. Using search marketing may efficiently produce these additional prospects.

Customer Relationship Management (CRM) Customer relationship management (CRM) is all about managing
the relationships you have with your customersincluding potential customers. CRM combines business processes, people, and technology to achieve this single goal: getting and keeping satisfied customers. It's an overall strategy to help you learn more about your customers and their behavior so you can develop stronger, lasting relationships that will benefit both you and your customers. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.] Measuring and valuing customer relationships is critical to implementing this strategy. Many CRM vendors offer Web-based tools (cloud computing) and software as a service (SaaS), which are accessed via a secure Internet connection and displayed in a Web browser. These applications are sold as subscriptions, with customers not needing to invest in purchasing and maintaining IT hardware, and subscription fees are a fraction of the cost of purchasing software outright. The era of the "social customer" has arrives which refers to the use of social media (Twitter, Facebook, LinkedIn etc.) by customers in ways that allow other potential customers to glimpse real world experience of current customers with the seller's products and services. This shift increases the power of customers to make purchase decisions that are informed by other parties sometimes outside of the control of the seller or seller's network. In response, CRM philosophy and strategy has shifted to encompass social networks and user communities, podcasting, and personalization in addition to internally generated 20

marketing, advertising and webpage design. With the spread of self-initiated customer reviews, the user experience of a product or service requires increased attention to design and simplicity, as customer expectations have raised. CRM as a philosophy and strategy is growing to encompass these broader components of the customer relationship, so that businesses may anticipate and innovate to better serve customers.

Team Selling: Team selling can be defined as when an individual usually

charged with completing the sales transaction is now responsible for coordinating the efforts of a number of individuals, all towards the common sales goal The team sales approach has enabled the businesses to effectively mobilize the organization to get and keep customers. The team selling strategy requires the sales rep to perform in a non-traditional sales mode. To be successful is this new arena, the sales rep needs to do more than present the companys offering and follow-up. As client organizations increase in size and demand more, the sales rep often has to begin to weave through a series of new influencers and decision makers moving from committee to committee Team Selling effectively uses the full resources of company to sell an account through all of their relevant decision-makers. The goal of team selling is to establish a deep, lasting, profitable relationship between people, products and companies. The result of team selling is shorter selling cycles, larger sales, lower costs and happier clients.

RECENT CASES
NOKIA CASE:
The case of Nokia (battery -replacement) as we saw was an important part of Sales Management. On Aug 17, 2007 many nokia cell phone users complaint against the Overheating initiated by a short circuit while charging and causes the battery to dislodge & as it was the matter related to sales of 21

Nokia Cell phone in Indian Market which has very high potential of Nokia Cell phone users. Nokia planned the replacement of battery finally so that in future any of its past activity should not cause in hampering of sales. So, Nokia replaced 46 million batteries freely & due to which Nokia was able to sustain the market share. Thus present sales management not only deals in selling of goods but also managing their customer grievances & thats the best for long term survival of company.

HONDA CASE: In the second biggest recall in the Indian automobile history,
Japanese car major Honda onSep5, 2011 said it will call back 72,115 units of its mid-sized Sedan City in New Delhi to replace the defective power window switches. The recall will be for the model made in India from 2005 to 2007. "Honda extends the power window switch replacement to 72,115 units of City in India... HSCI is carrying out the part replacement as part of a global exercise by Honda Motor Company to ensure stringent quality standards for its products," the company said in a statement. The replacement will be free of cost and owners will be contacted to carry out the exercise smoothly. It shows the increasing role of sales management to handle such unforeseen circumstances

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