sales managment DR.HAYTHAM

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SALES MANAGEMENT : 

SALES MANAGEMENT Dr. Haytham Abu El Onien MBA. Marketing USA 00971503377862 stimulations@gmail.com 1

SALES MANAGEMENT : 

2 SALES MANAGEMENT Chapter 1 ‘Job of Sales Management’

Figure 1-1: Positions of Personal Selling and Sales Management in the Marketing Mix : 

3 Figure 1-1: Positions of Personal Selling and Sales Management in the Marketing Mix Sales management Planning Motivating Budgeting Compensating Recruiting and selecting Designing territories Training Evaluating performance

Slide 4: 

4 SALES MANAGEMENT MODEL Defining the Strategic Role of the Sales Function Planning Implementing Control

Nature of Personal Selling : 

5 Nature of Personal Selling It is a major factor in generating sales volume. It is a part of promotion which brings human element into marketing transactions It increases customer confidence in the supplier, and simplifies the handling of individual customer problems.

Does personal selling increases customer confidence in the supplier? : 

6 Does personal selling increases customer confidence in the supplier? Since the customer is dealing directly, it builds the confidence in the product, company, personal and procedure. Forms a basis of trust and confidence with the customers. Basis for long-term relationship/retention Dr. Haytham Abu El Onien

Personal selling makes possible for the buyer to act promptly : 

7 Personal selling makes possible for the buyer to act promptly 1. Unlike other means of promotion, it can work for a desired action by the customer immediately. 2. Sales person can place an order, commit for a purchasing plan next quarter or decide on an in-store promotion for the product

Personal Selling Simplifies the handling of individual customer problems. : 

8 Personal Selling Simplifies the handling of individual customer problems. Customize sales presentation Handle buyers problems and complaints on a individual basis Every customer is different, have varying needs This is a value-added service provided to the customer.

Changes in Selling(Selling is flexible and creative – not simply persuasive) : 

9 Changes in Selling(Selling is flexible and creative – not simply persuasive) Today, salespeople are more of problem-solvers, able to meet customer’s needs and conditions of individual; they built and maintain good relationship with customers. Adopt to new market conditions Sales people are involved in other aspects also like, distribution, credit, customer’s use of promotion, pricing etc.

Marketing Concept : 

10 Marketing Concept Customer orientation – shift from internal company’s perspective to customer perspective. Understand the customer’s needs, attitude and buying behavior. Coordination of all customer related activities – coordinating between all the customer service functions of the business. Profit direction – control costs and maintain budgeted revenue/sales.

Modern Sales Approach : 

11 Modern Sales Approach 1.Partnering – sales people share the same value as customers, mutually agreed ideas, anticipate and understand customers needs 2. Relationship selling – maintaining long-term associations with customers; stronger contact with the customer 3. Team selling – for large customers, sales people work with other company personal to provide a coordinated approach.

contd.. : 

12 contd.. 4. Value-added selling – exceed customers expectation when providing service, e.g. providing after-sales service, installation facilities etc. Salespeople should go beyond selling and provide value added service. 5. Consultative selling – salesperson must adopt their products or services to address specific needs of the customers. Act as consultants Dr. Haytham Abu El Onien

Personal Selling in Marketing Mix : 

13 Personal Selling in Marketing Mix Firm’s marketing mix – product, price, promotion and distribution – is used to deliver solutions to individual customers. Marketing mix is a strategy which a company utilizes to implement its marketing plan and pursue its marketing objectives. Dr. Haytham Abu El Onien

The Role of Personal Selling in Product Strategy : 

14 The Role of Personal Selling in Product Strategy Sales person help specify desirable product features and benefits Provide guidance in the product development phase They participate in product testing and test marketing Their input is valuable when it comes to product mix decision as they are very much familiar with the marketplace, competitors, and the customers

The Role of Personal Selling in Pricing Strategy : 

15 The Role of Personal Selling in Pricing Strategy Sales people and managers can ascertain competitive pricing strategies. Gauge market reaction to alternative pricing levels and can advise senior management in pricing decisions. They can be granted some discretion in adjusting prices to market conditions.

Pricing Strategies : 

16 Pricing Strategies Cost Plus method – markup for profit is added to the products cost. Sales managers are responsible for keeping selling cost under control so that markup does not put the item in price disadvantage Demand Oriented method – based on the demand of the product and expected price. Competition oriented method – markup is based on the price the competitors will charge Dr. Haytham Abu El Onien

The Role of Personal Selling in Distribution Strategy : 

17 The Role of Personal Selling in Distribution Strategy Channel of distribution is the route from the producer to the end user, directly (ultimate buyers acquires the product from the manufacturer) or indirectly (user of intermediaries for e.g wholesalers/ retailers) A product is meaningless if it is unavailable to he customer at the right time, this is where the salespeople can facilitate They establish link in between the middle man Dr. Haytham Abu El Onien

The Role of Personal Selling in Promotional Strategy : 

18 The Role of Personal Selling in Promotional Strategy Promotion is the presentation of informative and persuasive message to a firms target market in an attempt to stimulate sales. Personal selling is an important aspect of this, along with advertising, publicity, and sales promotion.

Tasks of a Sales Manager : 

19 Tasks of a Sales Manager Analysis: review of firm’s internal sales record and sales peoples report, and keeping check of market trends. Note relevant environmental factors and conditions. Planning: Setting objectives for the firm sales efforts and mapping out strategies and tactics for achieving these objectives. Transmit objectives, strategies, and procedures to sales staff.

Slide 20: 

20 Organizing: setting up of structures and procedures for smooth efficient execution of sales programs. Create specific job descriptions for these tasks and activities. Recruit and select personal for these activities.   Direction: staffing and supervision day-to-day implementation of sales, policies and programs. Oversee the operations of the sales team to improve its performance. Issue the necessary directions and guidelines.

Slide 21: 

21 Control: performance comparison of actual and planned sales results, reasons for deviation. Collect and analyze information

External factors effecting Sales Management : 

22 External factors effecting Sales Management 1. New government rulings 2. Competitor cuts prices 3. New products introduced in the market 4. New distribution options 5. Telemarketing and e-commerce

Rewards of Sales Management : 

23 Rewards of Sales Management Sales managers get to know and work with variety of people inside and outside the company It is personally rewarded, and recognized my others (tangible) Financial rewards Training and Development

Why is Training of Salespeople important? : 

24 Why is Training of Salespeople important? Keep them competitive Career development Built various skills mentioned above Adopt to change in external environment / new trends Presentation and negotiation skills Awareness of languages and cultural differences in international selling Exchange of ideas

Challenges for Salespeople : 

25 Challenges for Salespeople Have to satisfy varying customers needs Need to be patient and polite to the customers Have to meet their budgets Their jobs are effected my changing market conditions, competitors activities, and economic factors.

A Sales Quota Manager’s Skill Set : 

26 A Sales Quota Manager’s Skill Set Willingness to Train/Coach Willingness to Make Joint Sales Calls Problem-Solving Making Presentations Answering Objections

Win-Win Relationships : 

27 Win-Win Relationships Sales person Customers Secondary decision makers Company support staff Management personnel

Win-Win Philosophy : 

28 Win-Win Philosophy Win-Win People Help others solve problems Fix what caused problems Make life a happening Learn from the past, live in the present, and set goals for the future Make and keep commitments Win-Lose People See problems in solutions Fix the blame Let life happen to them Live in the past Make promises they never keep

Slide 29: 

29 COMMUNICATION What you see or feel Facial expression Dress and grooming Posture Eye contact Touches Gestures What you hear Tone of voice Vocal clarity Verbal expressiveness

Basic Rules of Etiquette : 

30 Basic Rules of Etiquette Avoid temptation to address new prospects by first name Avoid offensive comments or stories Do not express personal views on politics or religion At business luncheons do not discuss business before the meal is ordered unless client initiates subject

Relationship Building Guidelines : 

31 Relationship Building Guidelines Be genuinely interested in other people Be a good listener Encourage others to talk about themselves Talk about other people’s interest

Slide 32: 

32 APPENDIX

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