SALES FUNCTION

• TRADITIONAL CONCEPTS
• MODERN CONCEPTS
• SALES FORCE MANAGEMENT
• STEPS IN THE SELLING PROCESS

BACHELOR OF DESIGN

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SUBJECT: BUSINESS STUDIES

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DR. RAKHI MEHTA

SALES FUNCTION

“The section of an organization responsible for selling its products and services.”

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This is a vital function in every business. The role varies depending on the industry. Most businesses have sales targets as part of their aims and objectives. Meeting these targets is the responsibility of the sales staff or sales team.

SALES FUNCTION

• Develop sales plan & strategies for developing business.
• Provide detailed & accurate sales forecasting and tracking the same.
• Compile information and data related to customer and prospect interactions.
• Monitor customer, market and competitor activity and provide feedback to company.
• Achieve desired market share in defined areas. Keep team members highly motivated and support them to accomplish desired results.
• Work closely with marketing functions to establish channel and partner programme.
• Establishing strong customer base.
• Creating and managing list of prospects across various target client segments. Create awareness and branding of services.
• Anaging key customer relations and participate in closing strategic opportunities.
• Contacting client prospects across target client segments/markets and systematic follow up with each prospect.

TRADITIONAL CONCEPTS

According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Thus, marketing means selling of goods and services. In other words, it is the process by which goods are made available to ultimate consumers from their place of origin. The traditional concept of marketing corresponds to the general notion of marketing, which means selling goods and services after they have been produced. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is not given adequate emphasis. Viewed in this way, marketing is regarded as production/sales oriented.

TRADITIONAL CONCEPTS

TRADITIONAL CONCEPTS OF SALES FUNCTION FOCUSES ON PRODUCTS ONLY AND IT AIMS ON PRODUCTION AND SELLING OF PRODUCTS AND MORE PROFIT. TRADITIONAL CONCEPT IS PROFIT ORIENTED. IT IS BASED ON OLD CONCEPT AND REFERS TO A NARROW CONCEPT. IT IS BASED ON PUSH MARKETING. IT IS ONE DIMENSIONAL AS THEY ONLY TARGET IT IS TO SELL THE PRODUCT AND GET THE PROFIT.

MOST COMMONLY USED TRADITIONAL STRATEGIES ARE:-

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1. BUSINESS CARDS
2. TV AND RADIO ADS
3. BILL BOARDS AND LIGNAGE
4. FLYERS AND BROCHURES
5. TELEPHONE MARKETING

ADVANTAGES OF TRADITIONAL CONCEPT

• Opportunity for powerful creative efforts
• Easy to understand
• Easier reach to local target audience

DISADVANTAGES OF TRADITIONAL CONCEPT

• Little interaction
• Targeted customer is minimal

FEATURES OF TRADITIONAL CONCEPT

• This concept starts with the product or output which is produced in fac­tories.
• It stresses upon the product of the manufacturer.
• This concept focuses on the need and interests of the producer’s.
• The objective of marketing under traditional concept is maximising profit by maximizing sales.
• The means to achieve objective of marketing i.e. profit maximisation is achieved through selling and promo­ting the product.
• This concept aims to achieve short term goals.
• Traditional concept includes produ­ction concept, product concept & selling concept.
• The focus of this concept is on produ­ction.

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MODERN CONCEPT

According to the modern concept, marketing is concerned with creation of customers. Creation of customers means identification of consumer needs and organizing business to satisfy these needs.

Marketing in the modern sense involves decisions regarding the following matters:

• Products to be produced

• Prices to be charged from customers

Promotional techniques to be adopted to contact and influence existing and potential customers

• Selection of middlemen to be used to distribute goods & services.

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Modern concept of marketing requires all the above decisions to be taken after due consideration of consumer needs and their satisfaction. The business objective of earning profit is sought to be achieved through provision of consumer satisfaction. This concept of marketing is regarded as consumer oriented as the emphasis of business is laid on consumer needs and their satisfaction.

FEATURES OF MODERN CONCEPT

• This concept starts with target market selection and finding the needs and wants of the target market so selected.
• It stresses upon the needs and wants of the consumer.
• This concept stress on the need and interest of the consumer.
• The objective of marketing under modern concept is profit, but through consumer satisfaction.
• The objective i.e. consumer satisfac­tion is achieved through coordinated marketing techniques.
• This concept aims to achieve long term goals.
• Modern concept includes consumer oriented philosophy, societal oriented philosophy.
• The focus of this concept is on the consumer satisfaction.

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SIX FUNDAMENTALCONCEPT OF MARKETING

• Production concept:

The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. So, production concept oriented business concentrate on achieving high production which reduces cost and focus on mass distribution. Before a business can offer a product to consumers they must manufacture or produce said product first. This concept is based on the philosophy of the more something is produced, the less it Costs for consumers and if a business can figure out how to produce a product on a mass scale (factories) it lessons the costs for theme as factories) well of this concept could be describe in 04 words it would be, Increase profits, reduce costs.

• Product concept:

This concept holds that consumers will prefer those products that are high in quality and performance and with innovative features. Managers in these organization focus on making superior products and improving them. But the marketer must keep in mind that the customers will buy the best quality product only when they need or want it. No matter how high quality a product is the consumer essentially weighs the cost accessibility and before deciding to purchase a za a business produces luxury goods that are pricey then the number of consumers withing to buy The product will be possibly be low, making it a niche product.

• Selling concept:

Now a days, as the technology advances along with the quantity and quality of the goods, the art of selling the goods are also very essential. The firms which follow the selling concept believe that in order to motivate a customer to buy his product, he must be convinced by aggressive selling and promotional efforts. Firms following selling concept make use of advertising powers and other persuasion techniques to influence the customers. Dealing with the process of actually selling a product this concept. Following this concept alone does not lead to long-term Consumer relationships, satisfaction or consistent sales a product.

• Marketing concept

As stated earlier the marketing concept places the consumer as the main priority for business operations. All motivations for creating a product and creating a marketing strategy to reach potential consumers is all for meeting their wants and needs to increase their satisfaction. This can lead to a business being the preferred choice among its competition due to putting the consumers needs first. The marketing concept holds that the key to achieving organizational goals consist of the company being more effective than competitors in creating, delivering and communicating superior customers value.

• Consumer concept:

As per this concept, companies' aims at providing consumers separate offers or services. This is possible through one to one marketing.

• Societal marketing concept:

A company must not blindly follow the goal of customer satisfaction because it may lead to many social and environmental ills for example, a customer may want to have drugs so just to satisfy customer the firms should not supply him drugs. This concept requires that company should deliver superior value to the consumer to improve the consumer and the society. It focuses on consumer welfare. Firms should not produce harmful products. While similar to the marketing concept- in prioritizing the needs of consumer, the concept also the business to put in mind the overages welfare of the consumer and as a whole.

An example of this might be a business considering an eco- friendly way of producing it's products in order to reduce carbon emissions making the air healthier and improving breathing Conditions for consumers.

SALES FORCE MANAGEMENT

SALES FORCE MANAGEMENT IS A SUB-SYSTEM OF MARKETING MANAGEMENT. IT IS SALES MANAGEMENT THAT TRANSLATES THE MARKETING PLAN INTO MARKETING PERFORMANCES.

IT IS THE DEVELOPMENT OF A SALES FORCE THAT INCLUDES COORDINATION OF SALES OPERATIONS, AS WELL AS THE TRAINING AND APPLICATION OF SALES METHODS THAT RESULT IN ACHIEVING SALES GOALS AND OBJECTIVES.

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ACCORDING TO AMERICAN MARKETING ASSOCIATION,

Sales management is “the planning ,direction and control of professional selling including recruiting, selecting equipping, assigning, routing, supervising, paying and motivation. Motivating to the personal Sales force.”

It is often referred to as management of the personal selling part of a Company's marketing functions.

Importance of Sales Force Management

• Better Sales Operations- Efficient sales force management ensures that all moving parts of sales operations are working well to guarantee the end user a satisfactory experience. The competitive edge of thriving enterprises lies in sustaining regular customers. Whatever the product/service may be, a good sales force is able to guarantee good experiences to customers, which is a direct result of an efficient sales management system.
• Better understanding of the market- Sales force management allows for a better understanding of your market, keeping you up-to-date with new trends and the ability to apply these trends to sustain relevance within your market niche. Relevance is key to sustaining growth in competitive marketplaces. Your sales team is tasked to keep your brand and product/service relevant and moving towards excellent customer experience.
• Defined sales strategy- Aside from reaching targets, goals, and objectives for the business, sales force management formulates strategies that are designed specifically for the product/service offered. Being able to formulate strategies brings in systematic methods of continuing sales growth, expansion of market reach, and CRS or Customer Relations Systems tailor-fitted to the company. In strategizing, one size does not fit all. Enabling your sales team to create strategies to zero in on specific demographics or niches opens new doors for the enterprise.

As more companies realize the importance of efficient management of sales teams, they start to invest more in training, formulating strategies and team building. Here are some more reasons for you to invest in sales force management:

KEY BENEFITS OF SALES FORCE MANAGEMENT

• Generating Leads – Sales teams create leads and follow these leads or probable customers by getting relevant information – such as personal details, purchasing behaviors and preferences.
• Sales Forecasting – Projecting the enterprise’s sales using previous sales figures is an important tool for management to make business decisions to increase potential sales, as well as in training the sales team for specific objectives or goals. Forecasting sales also enables decision-makers to address aspects such as productivity, distribution of product/service, and even the marketing budget.
• Order Management – Order management covers the streamlining of processes to efficiently process and fulfill customer orders – resulting in an increase in sales, retaining customers, and maintaining excellent customer relations. In a nutshell, an order management system is a process of delivering a product/service with minimal to no delay.
• Conflict Resolution – While making a purchase, it is highly likely that your lead might have different ideas from you. In this case, you need to set their expectations straight. Having a record of all the conversations you have with your leads ensures that there are no conflicts later.

COMPONENTS OF SALES FORCE MANAGEMENT

• Recruitment – This is a basic part of sales team management. Recruiting the best, as well as those who can fit into the company culture, is favored. Enterprises have invested in creating selection programs and processes that include personality, managerial and behavioral tests to identify perfect candidates. They also take into account customer preferences, with regards to the personality they want to interact with.
• Training and Supervision – Effective training of a sales force serves as the linchpin to engaging, relating to, and supplying the needs of the customers. Supervision boosts the morale of the sales team. A well trained and supervised team achieves sales objectives and goals.
• Motivation and Incentives – The way to drive your sales team to success is to motivate them, compensate fairly, and give incentives. In this way, the team meets sales targets in the most efficient way possible.
• Evaluation – Sales force evaluation through sales results, product numbers and revenue reports are a key aspect of sales team management.
• Personality and behavioral elements – One fact is clear, customers prefer people they can relate to. Personality and behavioral aspects are important when building relationships as we move towards newer marketing strategies.

Sales force management’s purpose is to execute sales and marketing plans successfully, as well as to teach or train employees. It necessitates a well-trained sales team, versed with the ins and outs of the product or service, as well as the ability to answer all customer queries without hesitation. The purpose encompasses the following:

OBJECTIVES OF SALES FORCE MANAGEMENT

1. Revenue Generation- One of the main objectives of Sales management is to generate revenue for the organization. The Sales department is solely responsible to bring in the money.
2. Increase Sales Volume- Through efficient sales management, the organization wishes to increase the number of units sold. This will ensure the production facilities do not remain idle and are utilized to the fullest.
3. Sustained Profits- Sales managment has an objective of improving the profits of the organization through effective planning, co-ordination and control. Sales management strives to increase sales and reducing costs, this ensure good profits for the organization
4. Organization growth- with sustained and continous sales management techniques the organization tends to gain market share and results in growth of the organization
5. Market Leadership- With increased sales, volumes and profite. Sales management enables and organization to become the market leader

6.Converting Prospects to Consumers.- Getting prospects to become customers is an art and a science, it requires good planning and sustained efforts. This is accomplished through sales management.

7.Motivate the Sales Force- one of the core objectives of sales management is to motivate the sales force. Selling targets can become very challenging. Therefore, the sales management task is to ensure that the sales force is continuously motivated through proper incentives and reward Systems.

8. Compliment Marketing Activities- Sales management task is to support the marketing functions of the organization Marketing and Sales need to go hand in hand to achieve the desired results.

Sales Volume, contribution to profits and growth are the three major objecting the Sales function is expected to achieve. Though these are a broad corporate functions to be achieved by the top management. Sales contribute a great deal on achieving them. Corporate objectives are communicated to the marketing department who in turn passes on the responsibility to the Sales department, Sales provides invaluable feedback to the higher management while achieving these objectives.

STEPS IN THE SELLING PROCESS

Selling is a process involving the interaction between a potential buyer and a person hired by a company to sell its product to potential buyer.

Sales is a recognized business profession and ranges from a fabric or furniture, salesman to an investment banker who manages company stock with billion dollars at stake.

SALES PROCESS STEPS

1. Prospecting- The first step in the sales process is prospecting. In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford what you offer. Evaluating whether the customers need your product or service and can afford it is known as qualifying. Keep in mind that, in modern sales, it's not enough to find one prospect at a company: There are an average of 6.8 customer stakeholders involved in a typical purchase, so you'll want to practice multi-threading, or connecting with multiple decision-makers on the purchasing side. Account maps are an effective way of identifying these buyers.
2. Preparation- The next step is preparing for initial contact with a potential customer, researching the market and collecting all relevant information regarding your product or service. Develop your sales presentation and tailor it to your potential client’s particular needs. Preparation is key to setting you up for success. The better you understand your prospect and their needs, the better you can address their objections and set yourself apart from the competition.

3.Approach- Next, make first contact with your client. This is called the approach. Sometimes this is a face-to-face meeting, sometimes it’s over the phone. There are three common approach methods.

• Premium approach: Presenting your potential client with a gift at the beginning of your interaction
• Question approach: Asking a question to get the prospect interested
• Product approach: Giving the prospect a sample or a free trial to review and evaluate your service

4.Presentation- In the presentation phase, you actively demonstrate how your product or service meets the needs of your potential customer. The word presentation implies using PowerPoint and giving a salesy spiel, but it doesn’t always have to be that way—you should actively listen to your customer’s needs and then act and respond accordingly.

5. Handling objections-Handling Objections is an important part of the process objections can be useful because they fill the salesperson what to focus upon in addressing a prospects concerns Successful salespersons learn how to overcome objections through preparation and having the right information at hand to address them. This is where you listen to your prospect’s concerns and address them

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6. Closing- In the closing stage, you get the decision from the client to move forward. Depending on your business, you might try one of these three closing techniques.

• Alternative choice close: Assuming the sale and offering the prospect a choice, where both options close the sale—for example, “Will you be paying the whole fee up front or in installments?” or “Will that be cash or charge?”
• Extra inducement close: Offering something extra to get the prospect to close, such as a free month of service or a discount.
• Standing room only close: Creating urgency by expressing that time is of the essence—for example, “The price will be going up after this month” or “We only have six spots left”

7.Follow-up- Once you have closed the sale, your job is not done. The follow-up stage keeps you in contact with customers you have closed, not only for potential repeat business but for referrals as well. And since retaining current customers is six to seven times less costly than acquiring new ones, maintaining relationships is key. Follow Up Is building a long term relationship with your repeat sales customed for purposes of repeat sales.

For example You make contact with the customer sometime after the sale and make sure the product was and is in good condition Again, the idea received is not to sell at this stage, but to create a soled relationship for future sales.

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