Unit 1

MKTM508
SALES AND DISTRIBUTION

MANAGEMENT
Topic: Introduction to Sales Management
Learning
Outcomes
After the session you will be able to
• understand the core concepts of sales
management and emerging trends in sales
management
Source:
https://www.timesnownews.com/education/unveiling-the-dynamics-of-sales-in-banking-institutions-article-106964874#:~:te
xt=The%20Essence%20of%20Effective%20Sales,diverse%20financial%20needs%20of%20clients.
Case let
Qualtrics was an online survey research platform and since the beginning, the company had relied
entirely on an inside sales model-sales done remotely without face-to-face contact with clients. The
low-cost inside sales model, along with an emphasis on a strong sales culture, had helped Qualtrics
to grow rapidly. However, it needed to prepare for the next phase of its growth. The company
decided to diversify its product portfolio and target different types of customers (enterprise clients).
In accordance with this change, it recognized the need to revise the inside-sales-only model by
adding a field sales component to better serve these customers. Many organizations often go
through a turning point in their strategy to explore ways for growth. The case series outlines the
best practices of scaling an inside sales model and the challenges involved in changing an
organization's sales management and strategy to initiate future growth
Discussion Questions
What are the challenges in field sales model?

Would you continue on solely inside sales model or field sales function to seek
out a large enterprise customers?
How the role of sales person has changed over the years?
Nutshell
Sales management is the process of hiring, training and motivating sales staff,
coordinating operations across the sales department and implementing a
cohesive sales strategy that drives business revenues.
MCQ
Sale has ________ function in an organization.
A. Only loss generating

B. only revenue generating
C. both loss as well as revenue generating
D. neither loss nor revenue generating
Sales
Conception – What
Management Planning – How?
will be offered?
Process
Control – How will

Execution – When
feedback and
and at what pace
contingencies be
and scale?
acted upon?
Feedback – How we
have to integrate
and reply back
activity to activity?
Sales volume
Contribution to profits
Objectives of
sales Continuing growth
management
Planning
Proper allocation of resources

LEVELS OF SALES MANAGEMENT
Emerging Trends in Sales Management
 Global perspective
Revolution in technology
CRM
Sales force diversity
Team selling approach
Managing multi channel marketing systems
Ethical and social issues
Sales professionalism
E-Selling
Success Factors in Selling
Communication Skills
Negotiation Skills
Salespeople need negotiating skills
Negotiations are needed under the following circumstances :
(a) When the buyer puts certain conditions for buying to the seller, (b)
When agreement between the buyer and the seller is needed on several factors, (c)
When the product is customized, and (d) When the final price is to be decided.
Steps needed to prepare for negotiation with customers:
(a) planning, (b) building relationship, and (c) knowing the purpose.
Styles of Negotiation
(a) I win, you lose, (b) Both of us win (or win-win style), (c) You win, I
lose, and (d) Both of us lose.
Discussion Question
Assume that you are a regional sales manager of two wheeler auto
company and you are asked by your general manager (sales and
marketing) to submit your sales force strategy and tactics to achieve
an increase in sales volume by 20 percent for the next ﬁnancial year.
What would be your response?
The Selling Process
If salespeople follow the steps shown below, their chances of success are far better.
1. Prospecting & 4.Discovering &

2.Pre-approach 3.Approach
Qualifying Understanding
7.Closing the 6.Handling 5.Sales Presentation

8. Follow-up Sale & Demonstration
Objections
• The sequence of above steps may change to meet the sales situation in hand.
• All kinds of selling do not necessarily pass through the eight steps of the selling
process shown above.
Prospecting
Prospecting is identifying prospective or potential customers for the company’s
products/services.
Methods for identifying sales leads or leads (i.e. names and addresses of prospects)
are: (1) consulting existing customers, (2) The company sources (website, ads.,
tradeshows, phones), (3) external sources (suppliers, intermediaries, trade associations),
(4) salespersons’ networking, (5) publications like industrial directories, (6) cold
canvassing, (8) world wide web’s (WWW’s) search engines.
.
Qualifying
Companies qualify sales leads to prospects by contacting them by e-mails or on
phone to find their (i) interests (or needs), (ii) financial capacity, and
(iii) ability to make a decision.
After qualifying, the sales leads are categorized as: Hot, Warm, or Cold prospects
Process of Prospecting and Qualifying
Start with leads/probable prospects (using

methods for identifying sales leads).
From leads to qualified prospects (using
need, decision making, affordability criteria).
Identify hot prospects ( criteria : sound
finance, likely to buy).
Convert hot prospects to

customers (purchased the
company’s products / services).
Sales Funnel
Successful salespeople always keep the sales funnel full.
Pre–Approach
Before approaching a prospect , a salesperson performs two tasks (1)
information gathering ,(2) planning the sales call.
Information Gathering
Salespeople collect the prospective customers’ information like location, type
of business, purchase orientation and practices, & so on.
Sources of information include the Internet, trade magazines, industrial
directories, online information services, etc
Planning the Sales Call
Whom to see?
Where to go?
What are the call objectives?
How to approach the prospect?
Approac
h
Make an appointment to meet the prospect.
Make a favorable first impression.
Which of the following ‘approach techniques’ to be used?

• Introductory.
• Customer benefit statement.
• Product.
The purpose of approach is to gain the prospect’s agreement to move forward to the next step.
Discovering & Understanding Buyers’ Needs
Customers buy products/ services to satisfy their needs or to solve their
problems.
Salespeople uncover & know buyers’ needs by asking questions.
Research based ‘SPIN Model’ suggests four types of questions :
(1) Situational questions –to know buyer’s current situation
(2) Problem questions-to discover problems or dissatisfaction experienced
by the buyer.
(3) Implication questions-to find implications or consequences of not
solving the problem.
(4) Need-payoff questions- to know the value or importance of the solution
to the problem. The purpose is to develop the buyer’s desire for a solution.
Sales Presentation Methods
The Objective of sales presentation is to persuade the customer that the

company’s product/service being sold will meet his / her needs better than
that of competitors.
Salespeople can choose from the following sales presentation methods:
(1) Stimulus Response Method/Canned Approach

• It is a memorized sales talk or a prepared sales presentation.
• The salesperson talks without knowing the prospect’s needs
• This method is used by telemarketing people, door-to-door
salespersons, and for training new salespeople with some changes.
(2) Formula Method / Formulated Approach.
• This method is also based on stimulus response thinking. Salesperson
assumes that buyers can be led through mental steps by using a well-
known formula – AIDA (attention, interest, desire, and action). However,
the AIDA model is now changed, as seen below :
From To
A. Attention Rapport
I. Interest Need
D. Desire Solution
A. Action Close
Which method would you recommend for selling washing machine?
Sales Presentation Methods (Continued)
(3) Need – Satisfaction Method
• It is an interactive sales presentation, a creative form of selling.
• Salesperson first uncovers prospect’s needs by asking questions and listening. He then makes a sales presentation
by using FAB approach: Features, Advantages, Benefits.
• It is an effective method, as it focuses on customers.
(4) Consultative Selling Method/Problem-Solving Approach

• Used as a professional selling process in the 21st century.
• Salespeople use cross-functional expertise.
• Firms adopt team selling approach.
• Sales team work in a collaborative/partnering relationship with the buying firm.
• Used by software / consulting firms.
Demonstrating the Product
Sales presentation can be improved by demonstration.

Demonstration is one of the important selling tools.
Examples : Test drive of cars; demonstrations of industrial products in use at
trade shows.
Benefits of using demonstration for selling are:
• Buyers’ objections are cleared.
• Improves the buyer’s purchasing interest.
• Helps to find specific benefits needed by the prospect.
• The prospect can experience the benefits.
Handling Objections
Objections from prospective customers may take place during presentations /

when the order is asked. If objections are handled satisfactorily, they may
result in sales.
Two types of sales objections happen :
• Psychological / hidden objections
• Logical, real or practical objections
Methods used for handling objections:
(i) For Psychological objections: ask questions to clarify the customer’s
thinking.
(ii) For logical objections: (a) ask questions, (b) turn an objection into a
benefit, (c) deny objections tactfully, (d) show third-party certificates, (e)
offer compensation.
Trial Close and Closing the
Sale
‘ Trial close ‘ checks the attitude or opinion of the prospect, before closing the
sale.
If the response to trial close question is favorable, then the salesperson should
close the sale ( i.e. ask for the order ). If not, go back to presentation.
Some of the major closing techniques are: (a) alternative-choice, (b) minor
points, (c) assumptive, (d) summary-of-benefits, (e) T-account, (f) special-offer,
(g) probability, and (h) negotiation
Closing techniques based on situations
Follow-Up
Necessary for customer satisfaction and building

loyalty.
Successful salespeople follow-up in different ways:
• Check customer order.
• Visit when the product is delivered.
• Build long-term relationship.
• Carry out account penetration.
Homework
Visit the website of sales and marketing management

www.salesandmarketing.com and make a report on current issues of
importance to sales management.

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MKTM508

SALES AND DISTRIBUTION

What are the challenges in field sales model?

Sale has ________ function in an organization.

A. Only loss generating

Control – How will

Proper allocation of resources

1. Prospecting & 4.Discovering &

7.Closing the 6.Handling 5.Sales Presentation

Start with leads/probable prospects (using

Convert hot prospects to

Which of the following ‘approach techniques’ to be used?

The Objective of sales presentation is to persuade the customer that the

Salespeople can choose from the following sales presentation methods:

(1) Stimulus Response Method/Canned Approach

(4) Consultative Selling Method/Problem-Solving Approach

Sales presentation can be improved by demonstration.

Objections from prospective customers may take place during presentations /

Necessary for customer satisfaction and building

Visit the website of sales and marketing management

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