Sales ManagemenL and 8uslness

BACKGROUND
The discipline oI marketing management emerged during the Industrial Revolution, when mass
production resulted in the creation oI large organizations, and technological advances related to
transportation and communication enhanced access to geographic markets. The two
developments contributed to a growing need Ior the management oI groups oI sales people in
large companies.
During the 20th century, some observers have described Iour evolutionary stages oI sales and
marketing management. The Iirst stage, which lasted until the beginning oI the Great Depression,
was characterized by an emphasis on engineering and production. Managers in those Iunctional
areas generally determined the company's goals and plans. They developed products and set
prices with the assumption that the customers would naturally buy whatever they could get to the
market. The job oI the sales departments, then, was simply to Iacilitate the smooth Ilow oI goods
Irom the company to the consumer.
The maxim "build a better mousetrap and the people will come," was eIIectively dashed by the
Depression, when producers Iound that selling products could be much more diIIicult than
churning them out. Sales people and managers were elevated to a new status, and their input into
product planning and organizational goal setting increased. It was also during this period that
"hard sell" tactics, which still embody the stereotype oIten ascribed to automobile and aluminum
siding salesmen, were developed. The hard sell philosophy reIlected the propensity oI most
organizations to Iocus on getting the customer to want the product that was being oIIered rather
than delivering what the customer desired. This second evolutionary stage extended Irom the
1930s into the 1950s.
During the 1960s and 1970s, companies in the United States began to embrace the concept oI
marketing, which initiated a shiIt oI the organizational Iocus Irom selling to customer
satisIaction and more eIIicient advertising and promotional practices. The adoption oI marketing
techniques essentially involved the integration oI the selling side oI business into related
Iunctions, such as budgeting, inventory control, warehousing, and product development. Despite
the emergence oI the marketing philosophy, however, most manuIacturing companies continued
to emphasize the production side oI their business.
Sales management at U.S. companies entered a Iourth evolutionary stage during the 1980s,
characterized by a marked shiIt Irom a supply-side marketing orientation to customer orientation.
Several Iactors prompted this change. Increased Ioreign competition, particularly Irom Japan,
posed a serious threat to American companies, which were comparatively ineIIicient and
unaware oI customer wants. In addition, a slowdown in U.S. market growth resulted in greater
competition between domestic rivals. Finally, a change in social orientation demanded that
companies Iocus on creating and selling products that would provide a better quality oI liIe,
rather than a higher material standard oI living. This change was evidenced by the proliIeration
oI laws protecting the environment and mandating product saIety.
The result oI changes during the 1980s and early 1990s was that sales and marketing specialists
were Iorced to concentrate their eIIorts on determining precisely what customers wanted, and
eIIiciently providing it. This change necessitated greater involvement by sales managers in the
goal-setting and planning activities oI the overall organization. This broadened scope meant that
sales managers were expected to develop a more rounded body oI knowledge that encompassed
Iinance, operations, and purchasing.
At the same time, sales managers were Iorced to deal with other pivotal economic and social
changes. ChieI among socioeconomic trends oI the 1980s and early 1990s was the evolution oI
marketing media. As the cost oI the average industrial sales call rocketed Irom less than $100 in
1977 to more than $250 by the late 1980s, marketing and sales managers began to stress other
sales tools. Direct mail and telephone sales became eIIicient direct marketing alternatives to
Iace-to-Iace selling. They also surIaced as important media that sales managers could use to
augment the eIIorts oI their sales people in the Iield.
Costs have been contained somewhat in the intervening years. As oI 1997, according to a survey
by the trade journal Sales & Marketing Management, the average sales call across all industry
segments and Ior sales agents oI all levels oI experience cost $113.25. ManuIacturing continued
to be the industry sector with the most expensive sales structure, with costs averaging $159 per
call. Wholesaling was at the other end oI the spectrum, averaging just $80 per call. As a
percentage oI total revenues, sales calls in the service industries tend to be highest, representing
13 percent on average. Sales call expenses in manuIacturing, retailing, and wholesaling all
averaged between 6 percent and 7 percent, according to the study.
Nonetheless, in the late 1990s sales cost cutting continued to be a priority at many companies.
Among the methods increasingly used to trim selling overhead were having sales reps work out
oI their own homes, at least until they built up a certain amount oI sales volume, and eliminating
(more accurately, distributing) some oI the Iunctions oI the traditional sales manager. Indeed,
some companies boasted that they could operate without sales managers, as sales Iorces were
becoming increasingly mobile and decentralized and as inIormation technology provided the
essential linkages between management and the sales Iorce. Automation oI sales-related
activities was a majorand oIten Irustratingdrive during the second halI oI the 1990s. This
so-called sales Iorce automation (SFA) was intended to maximize the eIIiciency oI sales agents'
work and to better coordinate sales activities with other Iunctions in the business. However, as
many as halI oI these soItware systems installed did not live up to the companies' expectations.
Despite this, most in the Iield now see automation as a baseline requirement Ior nearly any sales
Iorce.





nLroducLlon
Sales ManagemenL has Lwo schools of LhoughL Sales as an A81 and Sales as SC-C 8uL Lhls argumenL
ls lnvalld slnce sales personnel can be Lralned /groomed for selllng Pence lL ls sLraLeglc funcLlon

n maLure lndusLrles salespeople face more ob[ecLlons on Lhe lssues relaLed prlclng ln emerglng secLor
llke 1 cusLomer's complalnLs are relaLed Lo adapLablllLy of Lechnology n reLall selllng demonsLraLlon
efforLs are less slgnlflcanL whereas ln buslness Lo buslness Lhe seller has Lo demonsLraLe Lhe producL
and lLs funcLlon n hlLech consumer producL consumer educaLlon ls very lmporLanL

1hls lndlcaLes LhaL sales people musL work sLraLeglcally ln dlfferenL slLuaLlon and dlfferenL condlLlons
eLc 1hey are llke markeL lnLelllgence Leam whlch works closely wlLh cusLomer and posse's lnformaLlon
abouL cusLomer and Lhelr behavloral paLLern L helps Lhe organlzaLlon ln demand forecasLlng LerrlLorlal
redeslgn and collecLlng compeLlLor's lnformaLlon

Sales managemenL" ls orlglnally referred as sysLemaLlc managemenL Lool used for dlrecLlng sales force
personnel As per Amerlcan MarkeLlng AssoclaLlon's sales managemenL means Lhe plannlng dlrecLlng
and conLrol of personal selllng lncludlng recrulLlng selecLlng equlpplng asslgnlng rouLlng supervlslng
paylng and moLlvaLlng as Lhese Lasks apply Lo Lhe personal sales force"

AlLhough ln modern Llmes Lhe concepL of sales managemenL has broaden sales managers are ln charge
of personal selllng acLlvlLy Sales managers are responslble for organlzlng Lhe sales efforL boLh wlLhln
and ouLslde Lhelr companles WlLhln Lhe company's sales managers bulld formal and lnformal
organlzaLlonal sLrucLure LhaL ensures effecLlve communlcaLlon wlLh sales and oLher deparLmenLs
Good sales management is one oI the simplest ways to increase your revenue and proIitability.
Sales management is about leading the people and process your company uses to sell prospects
and service customers. Responsibilities include
O uilding the right sales strategy
O Hiring the right team
O Creating the right compensation plans, territories and quotas
O Setting the right projections
O Motivating your team
O Tracking revenue against goals
O Resolving conIlicts
O Training and coaching sales reps
O Managing processes
O Getting the sale!

Why is there a sales management chapter in our marketing process?
O our sales team is the voice oI your company. In Iact, your reps may be the only people
with direct customer interaction. They may be responsible Ior prospecting, selling and
managing existing customers. They control the dialogue with your market, gather
Ieedback, and deliver on your value proposition and brand promise.
O The sales team will make or break your marketing eIIorts. Even iI you`re not personally
responsible Ior the sales team, it`s important to understand their role and draw on that
knowledge to create better marketing programs.
O Sales and marketing serve one purpose: to generate revenue. They should be completely
aligned in their understanding oI customer needs, their messages, and the process they
use to identiIy prospects, sell, close and manage. They should work together as a unit,
providing valuable Ieedback to improve all oI their strategies.
O When departments aren`t aligned, your company wastes time and opportunity. For
example, when salespeople rewrite literature and tools to their liking, your messages are
diluted and salespeople are doing something other than selling.
Small improvements in your team`s skills and processes can oIten produce substantial results.
Even great salespeople can beneIit Irom coaching; iI your team is struggling, there`s room Ior
improvement. And with the right attention to your pipeline and goals, you can make sure you`re
on track to hit your numbers and make adjustments as needed.
Best Case Neutral Case Worst Case
our sales team is a revenue
machine. They have the right
skills and experience; they`re
motivated to come in each
day and close business. ou
coach them regularly to
improve their perIormance.
When problems arise, they`re
dealt with swiItly.
The sales team does a great
job delivering the company`s
value proposition, brand
strategy and messages.
There are strong and weak
players on the sales team.
Some require a lot more hand-
holding than you`d like; there
isn`t always time to give them
the help they need. As a
result, their close ratios are
much lower. They`re
probably not hitting their
quotas, but they`re not a
major liability to the
company.
our sales team isn`t strong.
They may not have a
dedicated sales manager to
help improve perIormance.
They may not have enough
experience, especially iI
you`re a small company that
can`t yet aIIord the big hitters.
ou have a pipeline but don`t
know what`s happening with
prospects; it takes longer than
it should to close deals. ou
suspect you need an entirely
new sales operation.


Sales Management Key Concepts & Steps
Before you begin
It`s always a good time to increase your Iocus on sales management.
our sales process and CRM are important tools that can help you
manage your team, Iorecast results and keep your team on course.
Create the right compensation plan and tie it to your
revenue goals
Great salespeople want to make money. Tie the plan to your revenue goals and make sure that
you`re compensating your reps Ior the right things. For example, iI your reps don`t earn
commission Ior managing 'house accounts, they`ll spend their time going aIter new business
and you could lose valuable existing customers.
Set realistic quotas
e realistic about what a salesperson can accomplish in a set timeIrame. Good salespeople can
be demotivated by unrealistic quotas, which can lead to turnover.
Hire the right people
To build a great team, start with a strong recruiting eIIort. Create a detailed job description so
you know exactly what you need in your candidates. Cast a wide net, use a thorough interview
process, and go aIter the candidates you really want.
Coach and provide feedback
A good manager actively works with the sales team. Train your reps thoroughly and coach them
to improve their skills. Go on calls, establish perIormance measurements, and provide Ieedback.
II a rep has trouble in a particular area, create an action plan and measure improvement.
Generate good reports
ou`ll need good sales reports to measure team and individual progress. et you don`t want your
sales reps to spend valuable sales time creating manual lists and reports. Instead, develop
automated reporting processes Ior example, create reports in your CRM system. With good
reports, you can see problems much earlier and take action more quickly.
Motivate!
Good sales reps want to get better encourage them to read, attend seminars, network, and keep
reIining their skills.
After Sales Management
eep working with your team, improving their skills, and adjusting as needed. Hire the right
people, manage them well, and enjoy their success!
%HE ROLE OF SALES MANAGEMEN%
Although the role oI sales management proIessionals is multidisciplinary, their primary
responsibilities are: (1) setting goals Ior a sales-Iorce; (2) planning, budgeting, and organizing a
program to achieve those goals; (3) implementing the program; and (4) controlling and
evaluating the results. Even when a sales Iorce is already in place, the sales manager will likely
view these responsibilities as an ongoing process necessary to adapt to both internal and external
changes.
GOAL SE%%NG
To understand the role oI sales managers in Iormulating goals, one must Iirst comprehend their
position within the organization. In Iact, sales management is just one Iacet oI a company's
overall marketing strategy. A company's marketing program is represented by its marketing mix,
which encompasses strategies related to products, prices, promotion, and distribution. Objectives
related to promotion are achieved through three supporting Iunctions: (1) advertising, which
includes direct mail, radio, television, and print advertisements, among other media; (2) sales
promotion, such as contests and coupons; and (3) personal selling, which encompasses the sales
force manager.
The overall goals oI the sales Iorce manager are essentially mandated by the marketing mix. The
mix coordinates objectives between the major components oI the mix within the context oI
internal constraints, such as available capital and production capacity. For example, the overall
corporate marketing strategy may dictate that the sales Iorce needs to increase its share oI the
market by Iive percent over two years. It is the job oI the sales Iorce manager, then, to Iigure out
how to achieve that directive. The sales Iorce manager, however, may also play an important role
in developing the overall marketing mix strategies that determine his objectives. For example, he
may be in the best position to determine the speciIic needs oI customers and to discern the
potential oI new and existing markets.
One oI the most critical duties oI the sales manager is to accurately estimate the potential oI the
company's oIIerings. An important distinction exists between market potential and sales
potential. The Iormer is the total expected sales oI a given product or service Ior the entire
industry in a speciIic market over a stated period oI time. Sales potential reIers to the share oI a
market potential that an individual company can reasonably expect to achieve. According to
Irwin, a sales Iorecast is an estimate oI sales (in dollars or product units) that an individual Iirm
expects to make during a speciIied time period, in a stated market, and under a proposed
marketing plan.
Estimations oI sales and market potential are oIten used to set major organizational objectives
related to production, marketing, distribution, and other corporate Iunctions, as well as to assist
the sales manager in planning and implementing his overall sales strategy. Numerous sales
forecasting tools and techniques, many oI which are quite advanced, are available to help the
sales manager determine potential and make Iorecasts. Major external Iactors inIluencing sales
and market potential include: industry conditions, such as stage oI maturity; market conditions
and expectations; general business and economic conditions; and the regulatory environment.
PLANNNG, BUDGE%NG, AND
ORGANNG
AIter determining goals, the sales manager must develop a strategy to attain them. A very basic
decision is whether to hire a sales Iorce or to simply contract with representatives outside oI the
organization. The latter strategy eliminates costs associated with hiring, training, and supervising
workers, and it takes advantage oI sales channels that have already been established by the
independent representatives. On the other hand, maintaining an internal sales Iorce allows the
manager to exert more control over the salespeople and to ensure that they are trained properly.
Furthermore, establishing an internal sale Iorce provides the opportunity to hire inexperienced
representatives at a very low cost.
The type oI sales Iorce developed depends on the Iinancial priorities and constraints oI the
organization. II a manager decides to hire salespeople, he needs to determine the size oI the
Iorce. This determination typically entails a compromise between the number oI people needed
to adequately service all potential customers and the resources made available by the company.
One technique sometimes used to determine size is the "work load" strategy, whereby the sum oI
existing and potential customers is multiplied by the ideal number oI calls per customer. That
sum is then multiplied by the preIerred length oI a sales call (in hours). Next, that Iigure is
divided by the selling time available Irom one sales person. The Iinal sum is theoretically the
ideal sales Iorce size. A second technique is the "incremental" strategy, which recognizes that the
incremental increase in sales that results Irom each additional hire continually decreases. In other
words sales people are gradually added until the cost oI a new hire exceeds the beneIit.
Other decisions Iacing a sales manager about hiring an internal sales Iorce are what degree oI
experience to seek and how to balance quality and quantity. asically, the manager can either
"make" or "buy" his Iorce. oung hires, or those whom the company "makes," cost less over a
long term and do not bring any bad sales habits with them that were learned in other companies.
On the other hand, the initial cost associated with experienced sales people is usually lower, and
experienced employees can start producing results much more quickly. Furthermore, iI the
manager elects to hire only the most qualiIied people, budgetary constraints may Iorce him to
leave some territories only partially covered, resulting in customer dissatisIaction and lost sales.
AIter determining the composition oI the sales Iorce, the sales manager creates a budget, or a
record oI planned expenses that is (usually) prepared annually. The budget helps the manager
decide how much money will be spent on personal selling and how that money will be allocated
within the sales Iorce. Major budgetary items include: sales Iorce salaries, commissions, and
bonuses; travel expenses; sales materials; training; clerical services; and oIIice rent and utilities.
Many budgets are prepared by simply reviewing the previous year's budget and then making
adjustments. A more advanced technique, however, is the percentage oI sales method, which
allocates Iunds based on a percentage oI expected revenues. Typical percentages range Irom
about two percent Ior heavy industries to as much as eight percent or more Ior consumer goods
and computers.
AIter a sales Iorce strategy has been devised and a budget has been adopted, the sales manager
should ideally have the opportunity to organize, or structure, the sales Iorce. In general, the
hierarchy at larger organizations includes a national or international sales manager, regional
managers, district managers, and Iinally the sales Iorce. Smaller companies may omit the
regional, and even the district, management levels. Still, a number oI organizational
considerations must be addressed. For example:
O Should Lhe force emphaslze producL geographlc or cusLomer speclallzaLlon?
O Pow cenLrallzed wlll Lhe managemenL be?
O Pow many layers of managemenL are necessary?
The trend during the 1980s and early 1990s was toward Ilatter organizations, which possess
Iewer levels oI management, and decentralized decision-making, which empowers workers to
make decisions within their area oI expertise.
MPLEMEN%NG
AIter goal setting, planning, budgeting, and organizing, the sales Iorce plan, budget, and
structure must be implemented. Implementation entails activities related to staIIing, designing
territories, and allocating sales eIIorts. StaIIing, the most signiIicant oI those three
responsibilities, includes recruiting, training, compensating, and motivating sales people.
eIore sales managers can recruit workers to Iill the jobs, they must analyze each oI the
positions to be Iilled. This is oIten accomplished by sending an observer into the Iield. The
observer records time spent talking to customers, traveling, attending meetings, and doing
paperwork. The observer then reports the Iindings to the sales manager, who uses the
inIormation to draIt a detailed job description. Also inIluencing the job description will be
several Iactors, chieIly the characteristics oI the people on which the person will be calling. It is
usually important that salespeople possess characteristics similar to those oI the buyer, such as
age and education.
The manager may seek candidates through advertising, college recruiting, company sources, and
employment agencies. Candidates are typically evaluated through personality tests, interviews,
written applications, and background checks. Research has shown that the two most important
personality traits that sales people can possess are empathy, which helps them relate to
customers, and drive, which motivates them to satisIy personal needs Ior accomplishment. Other
Iactors oI import include maturity, appearance, communication skills, and technical knowledge
related to the product or industry. Negative traits include Iear oI rejection, distaste Ior travel,
selI-consciousness, and interest in artistic or creative originality.
AIter recruiting a suitable sales Iorce, the manager must determine how much and what type oI
training to provide. Most sales training emphasizes product, company, and industry knowledge.
Only about 25 percent oI the average company training program, in Iact, addresses personal
selling techniques. ecause oI the high cost, many Iirms try to reduce the amount oI training.
The average cost oI training a person to sell industrial products, Ior example, commonly exceeds
$30,000. Sales managers can achieve many beneIits with competent training programs, however.
For instance, research indicates that training reduces employee turnover, thereby lowering the
eIIective cost oI hiring new workers. Good training can also improve customer relations,
increase employee morale, and boost sales. Common training methods include lectures, cases
studies, role playing, demonstrations, on-the-job training, and selI-study courses.
AIter the sales Iorce is in place, the manager must devise a means oI compensating individuals.
The main conIlict that must be addressed is that between personal and company goals. The
manager wants to provide suIIicient incentives Ior salespeople but also must meet the division's
or department's goals, such as controlling costs, boosting market share, or increasing cash Ilow.
The ideal system motivates sales people to achieve both personal and company goals. Good
salespeople want to make money Ior themselves, however, a trait which oIten detracts Irom the
Iirm's objectives. Most approaches to compensation utilize a combination oI salary and
commission or salary and bonus.
Although Iinancial rewards are the primary means oI motivating workers, most sales
organizations employ other motivational techniques. Good sales managers recognize that sales
people, by nature, have needs other than the basic physiological needs Iilled by money: they
want to Ieel like they are part oI winning team, that their jobs are secure, and that their eIIorts
and contributions to the organization are recognized. Methods oI meeting those needs include
contests, vacations, and other perIormance based prizes in addition to selI-improvement beneIits
such as tuition Ior graduate school. Another tool managers commonly use to stimulate their
workers is quotas. Quotas, which can be set Ior Iactors such as the number oI calls made per day,
expenses consumed per month, or the number oI new customers added annually, give
salespeople a standard against which they can measure success.
In addition to recruiting, training, and motivating a sales Iorce to achieve the sales manager's
goals, managers at most organizations must decide how to designate sales territories and allocate
the eIIorts oI the sales team. Many organizations, such as real estate and insurance companies, do
not use territories, however. Territories are geographic areas such as cities, counties, or countries
assigned to individual salespeople. The advantage oI establishing territories is that it improves
coverage oI the market, reduces wasteIul overlap oI sales eIIorts, and allows each salesperson to
deIine personal responsibility and judge individual success.
Allocating people to diIIerent territories is an important sales management task. Typically, the
top Iew territories produce a disproportionately high sales volume. This occurs because
managers usually create smaller areas Ior trainees, medium-sized territories Ior more experienced
team members, and larger areas Ior senior sellers. A drawback oI that strategy, however, is that it
becomes diIIicult to compare perIormance across territories. An alternate approach is to divide
regions by existing and potential base. A number oI computer programs exist to help sales
managers eIIectively create territories according to their goals.
CON%ROLLNG AND EVALUA%NG
AIter setting goals, creating a plan, and setting the program into motion, the sales manager's
responsibility becomes controlling and evaluating the program. During this stage, the sales
manager compares the original goals and objectives with the actual accomplishments oI the sales
Iorce. The perIormance oI each individual is compared with goals or quotas, looking at elements
such as expenses, sales volume, customer satisIaction, and cash Ilow. A common model used to
evaluate individual sales people considers Iour key measures: the number oI sales calls, the
number oI days worked, total sales in dollars, and the number oI orders collected. The equation
below can help to identiIy a deIiciency in any oI these areas:
An important consideration Ior the sales manager is proIitability. Indeed, simple sales Iigures
may not reIlect an accurate image oI the perIormance oI the overall sales Iorce. The manager
must dig deeper by analyzing expenses, price-cutting initiatives, and long-term contracts with
customers that will impact Iuture income. An in-depth analysis oI these and related inIluences
will help the manager to determine true perIormance based on proIits. For use in Iuture goal-
setting and planning eIIorts, the manager may also evaluate sales trends by diIIerent Iactors, such
as product line, volume, territory, and market.
AIter the manager analyzes and evaluates the achievements oI the sales Iorce, that inIormation is
used to make corrections to the current strategy and sales program. In other words, the sales
manager returns to the initial goal-setting stage.
ENVRONMEN%S AND S%RA%EGES
The goals and plans adopted by the sales manager will be greatly inIluenced by the industry
orientation, competitive position, and market strategy oI the overall organization. It is the job oI
sales managers, or people employed in sales-management-related jobs, to ensure that their eIIorts
coincide with those oI upper-level management.
The basic industry orientations are industrial goods, consumer durables, consumer nondurables,
and services. Companies or divisions that manuIacture industrial goods or sell highly technical
services tend to be heavily dependent on personal selling as a marketing tool. Sales managers in
those organizations characteristically Iocus on customer service and education, and employ and
train a relatively high-level sales Iorce. Sales managers that sell consumer durables will likely
integrate the eIIorts oI their sales Iorce into related advertising and promotional initiatives. Sales
management eIIorts related to consumer nondurables and consumer services will generally
emphasize volume sales, a comparatively low-caliber sales Iorce, and an emphasis on high-
volume customers.
Michael Porter's well-received book 4mpetitive Strategy lists three common market approaches
that determine sales management strategies: low-cost supplier; diIIerentiation; and niche.
Companies that adopt a low-cost supplier strategy are usually characterized by a vigorous pursuit
oI eIIiciency and cost controls. A company that manuIactures nails and screws would likely take
this approach. They proIit by oIIering a better value than their competitors, accumulating market
share, and Iocusing on high-volume and Iast inventory turn-over. Sales management eIIorts in
this type oI organization should generally stress the minimizing oI expensesby having sales
people stay at budget hotels, Ior exampleand appealing to customers on the basis oI price.
Sales people should be given an incentive to chase large, high-volume customers, and the sales
Iorce inIrastructure should be designed to eIIiciently accommodate large order-taking activities.
Companies that adhere to a diIIerentiation strategy achieve market success by oIIering a unique
product or service. They oIten rely on brand loyalty or a patent protection to insulate them Irom
competitors and, thus, are able to achieve higher-than-average proIit margins. A Iirm that sells
proprietary pharmaceuticals would likely use this method. Management initiatives in this type oI
environment would necessitate selling techniques that stressed beneIits, rather than price. They
might also entail a Iocus on high customer service, extensive prospecting Ior new buyers, and
chasing customers that were minimally sensitive to price. In addition, sales managers would be
more apt to seek high-caliber sellers and to spend more money on training.
Firms that pursue a niche market strategy succeed by targeting a very narrow segment oI a
market and then dominating that segment. The company is able to overcome competitors by
aggressively protecting its niche and orienting every action and decision toward the service oI its
select group. A company that produced Iloor coverings only Ior extremely upscale commercial
applications might select this approach. Sales managers in this type oI organization would tend
to emphasize extensive employee training or the hiring oI industry experts. The overall sales
program would be centered around customer service and beneIits other than price.
In addition to the three primary market strategies, Raymond Miles and Charles Snow claim that
most companies can be grouped into one oI three classiIications based on their product strategy:
prospector, deIender, and analyzer. Each oI these product strategies inIluences the sales
management role. For example, prospector companies seek to bring new products to the market.
Sales management techniques, thereIore, tend to emphasize sales volume growth and market
penetration through aggressive prospecting. In addition, sales people may have to devote more
time to educating their customers about new products.
DeIender companies usually compete in more mature industries and oIIer established products.
This type oI Iirm is likely to practice a low-cost producer market strategy. The sales manager's
primary objective is to maintain the existing customer base, primarily through customer service
and by aggressively responding to eIIorts by competitors to steal market share.
Finally, analyzer companies represent a mix oI prospector and deIender strategies. They strive to
enter high-growth markets while still retaining their position in mature segments. Thus, sales
management strategies must encompass elements used by both prospector and deIender Iirms.


Responsibilities of Sales Management
II you want your salespeople to start doing the job you hired them to do, then as managers, you
need to do the seven most important parts oI your job Iirst!
Create the rules and procedures for your sales department, and define their job
One oI the biggest reasons salespeople aren`t doing their jobs in most dealerships is because
management never clearly deIined the job or clearly deIined how they want the job done.
In real liIe, the porter gets a clearer picture oI what he is supposed to do at work every day than a
typical salesperson. It`s time to tell your salespeople what you want them to do and then show
them how to do it. Don`t make this tougher than it has to be. eep it simple get together with
all oI the managers at the dealership and make a list oI everything you expect them to do. Next,
explain to your salespeople how you want it done, and then teach them how to do it.
Properly staff your sales department
Once you`ve decided exactly what a job in sales at your dealership requires, it`s time to Iind the
best salespeople who are qualiIied to do the job. And it`s the word 'qualiIied that`s the catch
here, because the biggest mistake managers make in hiring is that they hire nice people, instead
oI qualiIied people. And unIortunately, a bunch oI nice people who can`t sell, will break you.
Where can you Iind more qualiIied salespeople?
1) Always be recruiting everywhere you go.
2) Set up a reIerral bonus program with all oI your employees to help bring in great candidates.
3 Properly train everyone on your sales team
ou deIined the job, wrote the procedures, and hopeIully, hired qualiIied salespeople with the
desire to succeed. Now it`s time to train them properly. Daily training is the secret to success.
Three keys to holding the best training in town: eep it interesting, inIormative, and valuable.
Here is a short list oI topics to train on: The basic steps oI the sale; closing; overcoming
objections; Iollow-up; prospecting; and handling incoming sales calls.
4 %rack and evaluate everyone on your sales team
ou`ve spelled out the job, you`ve hired the right salespeople, and you`re training them daily.
Now, to make sure they`re doing what you spelled out and taught them to do you need to track,
chart, and monitor their progress every day. ou also want to track so you`ll know what speciIic
training each person, and the team, needs to improve. What to track: 1) Sales activities the
minimum: ups, demos, write ups, and deliveries. 2) Sales results units and gross. 3) Repeat and
reIerral customers.
Motivate the sales force
Do you know why people quit your dealership? ecause they didn`t like it . ou know why most
salespeople don`t sell more? ecause there are more de-motivating things going on than there are
motivating things. To make up Ior it, managers toss up a Iew bonuses and can`t understand why
nobody likes being in 'sales. The easiest way to motivate your salespeople is to sit down with
the other managers and come up with a list oI what`s demotivating your staII right now, and then
start making the changes you know you need to make. Remember, everyone likes two things: 1)
Their (correct) paycheck on time. 2) Positive recognition Ior a job well done.
Set the goals for the sales team
Management sets the goals Ior the dealership. Once you`ve decided on the goals Ior the store,
then you do the trickle down thing with goals Ior each individual on the sales team. Their goals
must equal your goals. And then you need to make sure they hit their goals. To achieve your
goals: 1) Always write them down. 2) Always have a clearly deIined written plan oI attack
success is always in the details.
7 Lead your sales team
This is actually the easiest oI all. In Iact, leadership isn`t a separate responsibility; it`s really just
the end result oI doing everything we covered. When you help your team succeeds through good
management and coaching skills, don`t worry, you`ll earn their respect and you`ll be seen as
their leader.

Sa|es Management Iunct|ons













lannlng
1he consclous sysLemlc process of maklng declslons abouL goals and acLlvlLles LhaL an lndlvldual group
work unlL or organlzaLlon wlll pursue ln Lhe fuLure and Lhe use of resources needed Lo aLLaln Lhem
SLafflng
Staff|ng
Plrlng Lhe rlghL people
Lo sell lead
Planning
8ulldlng a proflLable CusLomer
orlenLed sales Leam
Contro|||ng
valuaLlng Lhe pasL Lo
gulde Lhe fuLure
1ra|n|ng
ducaLlng sales personnel
Lo saLlsfy cusLomers
erformance
O bLaln Coals
O roducL Sales
proflL
O CusLomer
saLlsfacLlon
O fflclency
O ffecLlveness

kesources
O Puman
O lnanclal
O 8aw
maLerlals
O 1echnology
O nformaLlon
ead|ng
Culdlng average people Lo
perform Lo above average
levels
AcLlvlLles underLaken Lo aLLracL develop and malnLaln effecLlve sales personnel wlLhln an organlzaLlon
1ralnlng
1he efforL puL forLh by an employer Lo provlde Lhe salesperson [obrelaLed culLure skllls knowledge
and aLLlLudes LhaL resulL ln lmproved performance ln Lhe selllng envlronmenL
Leadlng
1he ablllLy Lo lnfluence oLher people Loward Lhe aLLalnmenL of ob[ecLlves
ConLrolllng
MonlLorlng sales personnel's acLlvlLles deLermlnlng wheLher Lhe organlzaLlon ls on LargeL Loward lLs
goals and maklng correcLlons as necessary
1. Functions oI Sales Management Managerial Iunctions
O Planning: This involves, Iorecasting demand, sales territory planning, personal selling, and
promotional eIIorts.
O Organising: This involves, structure, resource allocation, responsibility assignment and
delegation oI authority etc.
O Direction: This involves leadership motivation, communication, and promotional steps
including personal selling.
Functions oI Sales Management Managerial Iunctions
O 4. Control: This involves, delegation, quota Iixing, perIormance evaluation, incentives and
budgets.
O 5. Co-ordination: This involves, liaison, integration oI various elements, internally, P.R. and
goodwill by contact with customer/general public
Functions oI Sales Management StaII Iunctions: This is related to staII Iunctions oI sales Iorce
such as the Iollowing:
O Recruitment and selection.
O Deployment and evaluation oI perIormance Training and development.
O Career development.
O Compensation and incentives.
O Motivation and empowerment.
Functions oI Sales Management Advisory Iunctions:
O Product attributes/quality aspects.
O Pricing policies.
O Promotional steps and personal selling aspects.
O Distribution policies and channel selection criteria.
O Advertisement policies such as media selection and target audience.
O Transportation and warehousing aspects.
Functions oI Sales Management Liaison Functions: Liaison with departments such as the
Iollowing:
O Production department.
O Finance department.
O Marketing department.
O R & D department.
O Distribution network and AIter Sales Service department
PHASES OF EVOLUTION OF SALES MANAGEMENT
roadly speaking evolution oI Sales Management developed under the Iollowing Iour phases:
1. Pre-industrial revolution period.
2. Production oriented period.
3. Sales oriented period.
4. Customer oriented period.
1. Pre-Industrial Revolution Period Small-scale industries/craIts existed prior to Industrial
Revolution period. The owner/craItsman turned entrepreneur, looked aIter all areas and Iunctions
oI management. These areas are production, Iinance and design and development. Sales and
marketing was never a serious problem in those days since demand Iar exceeded supplies.
Selling was only a part-time job Ior these entrepreneurs. This job is mostly conIined to
demonstration or display oI their craItsmanship.
2. Production Oriented Period Industrial Revolution in 1760s heralded this period. Mass
production technique introduced during this period increased the production level maniIold.
Following were the characteristics oI this period: Prevailed in developed nations in the West till
1930s. Focus was on manuIacturer and production capacity. Emphasis was laid on production
process which yielded volumes. Marketing meant "sell what is produced". Environment was that
oI a "sellers market".
3. Sales Oriented Period Economic recession oI 1930s was the starting point where demand
declined. Following are the characteristics oI this period: Prevalent in developed nations in the
past. However still prevalent in developing nations. Focus is on sales and sales promotion with
emphasis on sales volume. Marketing means "product does not sell by selI-it has to be pushed.
Customers are to be manipulated." Environment is highly competitive where "supplies are in
excess and production capacity is more."
4. Customer Oriented Period Globalisation and liberalisation have Iurther increased the
competition maniIold. Following are the characteristics oI this period: Prevalent in developed
nations aIter 1960s. Developing nations are also Iollowing this approach by 1980s. Focus is on
"customer satisIaction." Emphasis is on "problem solving" on customer "needs" and "wants' to
achieve customer loyalty. . Marketing means customer satisIaction beIore, during and aIter sales.
Environment is that oI 'buyers market having severe competition.
OJECTIVES OF SALES MANAGEMENT
Following are the three general objectives oI sales management:
1. Generate suIIicient sales volume.
2. Contribute towards current proIit.
3. Ensure continuous growth oI the organisation.
Top management has ultimate responsibility Ior the above objectives. However, this task by
authority delegation is entrusted to sales department who are the ultimate operational level
managers.
Sales Volume Objective This is the sum oI sales oI all salesmen, put together. y proper
planning, sales territories are assigned to salesmen based on sales potential and sales Iorecast
made in the planning stage. Sales volume depends on a number oI sales persons. Techniques
used by sales department are many; like personal selling and promotional steps etc. Sales persons
are motivated by various methods so that targets are achieved such as quotas, incentives like
commissions and sales management by objectives. y proper O.R. techniques, optimum sales
Iorce is Iixed.
Current ProIit Objective Sales Management and Iinancial results are closely linked to each other
as evident Irom the Iollowing Sales Cost oI Sales Gross Margin - - - (1.1) Gross Margin - Sales
Expenses Net ProIit- - (1.2) Cost oI Production Cost oI Distribution Cost oI Sales - - -
(1.3)Sales revenue has been directly linked to the perIormance eIIiciency oI the sales Iorce. All
expenses are budgeted and controlled.
Continued Growth Objective Survival and success is the basic objectives oI any organisation. A
number oI growth strategies are available such as the Iollowing: DiversiIication - Concentric or
conglomerate, Integration - Vertical or horizontal, External Growth - JV, merger or acquisition
In all such cases, perIormance oI sales Iorce and quality oI their inIormation Ieedback is vital to
know the "needs" and "wants" oI customer


SALES ORGANISATION- CHARACTERISTICS
Organisation Iorms the Ioundation oI eIIective implementation oI sales strategy, policies and
plans.
The characteristics oI an eIIective organisation:
DeIines lines oI authority, responsibility and accountability.
EIIective lines oI communication.
Control activities oI sales:
Sales management Iunctions
Sales Iorce management Iunctions.
ridging the gap between market demand and productive capacity oI the Iirm.

SALES ORGANISATION- STRUCTURE & CLASSIFICATION
Types oI Organisation Structures:
Line type organisation Most common type oI organisation structure with parity between
authority and responsibility
Line and StaII organisation As the organisation grows in size, specialists are appointed as staII
managers
Functional type organisation - sales Iunctions are grouped and placed under the direct control oI
managers who are specialists
Field Force type organisation Geographic, Product type, Customer

SALES ORGANISATION- IMPORTANCE
Sales management with proper planning, organising, direction, delivers the goods in right
quantity at the right place at the right time. This is called merchandising. Today`s salesmen need
intrinsic motivation by autonomy, dignity and recognition. Sales organisation is the "ear" and
"eyes" oI the Iirm. Right Ieedback Irom customer`s views is very important Ior the very survival
and success.
Merchandising DeIined as 'the planning to oIIer the right products in the right time with right
quality and quantity at the right place with the right price." The areas oI co-ordination on the part
oI sales persons given below. This highlights Field Sales Manager as coordinator oI marketing
mix
Coordinating Strategies Choice
Coordinating Planning
Coordinating Marketing Programme
Coordinating Sales Force Distribution
Coordinating Network ManuIacturing Divisions
Co-ordination in Strategy In globalisation, competition is severe; environment changes Iast,
opportunities and threats appear and disappear very Irequently. Top managers/strategists engage,
almost continuously to scan the environment and suitably amend and modiIy existing strategies.
Salespersons have Iirst inIormation about the market conditions, competitors strategy and
consumers reaction.
Co-ordination in Planning various activities are listed in terms oI "time Irame" and "cost Irame"
Their milestones are prepared along with PERT so that proper sequencing oI such activities,
along with quantiIication oI resources is determined. InIormation obtained based on sales
Iorecast, assists Market Segmentation, Territory Planning, Outlay on other marketing eIIorts like
Advertisement, Personal Selling and Promotional steps.
Co-ordination in Marketing Programme Many sales activities are required to be coordinated
with other activities oI marketing such as advertisement and sales promotion. Personal Selling
eIIorts are supplemented by Advertisement Promotional Displays Appointments oI Distributors
Setting up oI aIter-sales-service stations Timing oI advertisement and personal selling eIIorts are
also very important.
Co-ordination oI Sales Force EIIorts oI sales Iorce must be properly coordinated to: Avoid
overlapping Duplication Gap between their areas oI responsibility and tasks. Depending on the
market conditions, competitor`s actions and individual perIormance, it may be necessary to:
Shuttle around salesmen Re-organise territories & regions supplement the salesmen
Co-ordination oI Distribution Network Liaison and co-ordination between distributors and
retailers becomes very important tasks. This will enhance timely availability and attending to
aIter sales service by customers. Complaints oI transit damages, non-settlement oI
warranty/guaranty claims by customers etc. needs extensive co-ordination. Sharing
advertisement/promotion expenses is another area requiring co-ordination between organisation
and distribution. Co-ordination oI ManuIacturing Very oIten customers complain against quality,
reliability, maintenance and operational problems. Such matters require prompt action by
manuIacturing divisions. They in turn solicit the services oI R & D engineers, iI need be, Ior
incorporating modiIication or re-draIting "Operating and Maintenance Instructions." Many times,
distributors complain on non-availability oI spares or replacement oI item returned Ior repair.
Salesmen eIIorts with manuIacturing divisions to solve many such problems will yield customer
satisIaction and goodwill
SALES MANAGEMENT CCLE AND CONTROL
The Objective: Control is one oI the managerial Iunctions oI sales management. Imaginative
control is necessary to cut down costs without demoralising the sales Iorce.
Following are the several phases oI control: Planning phase & Setting up standards Data
collection, Analysis & PerIormance evaluation correcting controllable variables &Tackling
uncontrolled variables Pro-active MIS.
Planning Phase Sales executive Iinds answers to the Iollowing aspects:
1. The current state oI business.
2. The past experience to reach the current state.
3. The targets set Ior a given Iuture period.
4. The methods to meet the targets set Iorth.
Head oI the sales executives identiIies the strengths and weaknesses oI existing plans,
policies and procedures.
PerIormance Standard The chieI oI sales Iorce, sets up quantitative standards to measure the
perIormance. Eliminates inherent weaknesses to the existing standards. Ultimate test is to set
up a standard to suit each individual salesman/situation should contribute "more to personal
selling eIIiciency than it costs." The standards are speciIied within a range oI perIormance (a
minimum and maximum)
Data Collection and Analysis the perIormance is evaluated at periodic intervals. There is an
optimum Irequency oI such evaluation period. Too Irequent evaluation increases costs
prohibitively high compared to its beneIit. y and large, annual perIormance assessment is a
popular method. In the beginning stages perIormance oI sales personnel are evaluated at
higher Irequencies like quarterly or halI yearly etc.
PerIormance Evaluation Following are essential Ieatures oI a good control system: Timely
availability oI inIormation. Advice on actions necessary to correct poor perIormance.
Allowances must be made Ior situations beyond the control oI individuals. Only deviations
which are beyond the accepted limits must be reported to higher levels Ior intervention based
on the "principles oI management by exceptions.
Pro-active MIS Control Mechanism is primarily intended to ensure perIormance to meet
desired standards. Corrective actions need time. Hence, the higher management levels must
get the Ieedback in time so that they have the opportunity to initiate corrective actions. This
is called proactive Management InIormation System (MIS). The Iirst step oI control is to
identiIy Iactors responsible Ior perIormance. These Iactors comes under two categories viz.:
Controllable variables Uncontrollable variables
Corrective Action Ior Controllable Variables PerIormance evaluation depends on the criteria
oI measurement. Corrective action Ior poor perIormance comes under Iollowing controllable
variables: Direction Ior better methods oI management. etter guidance, training and
development. Issuing amendment to existing procedure, practices and criteria oImeasurement
to keep perIormance within desired limits.
Corrective Action Ior Uncontrollable Variables the shortIall oI production can be due to any
oI the reasons: Existing sales objective is unrealistic. Existing standard is too high to achieve.
DeIective Plans and Policies. In all such cases, management must take the responsibility to
amend editing sales objectives, plans, policies and perIormance standard to suit practical
conditions.
GENERAL SALES MANAGER General Sales Manager (GSM) or G.M. (Sales) is the
Iunctionary at corporate headquarters. GSM usually reports to the Director or Vice President,
Marketing. GSM is responsible Ior the Iollowing: Secure maximum sales volume. Develop
and implement eIIective sales policies plans and programme Ior all products at all territories.
DUTIES AND RESPONSIILITIES oI GSM Sales Programme: Lay down long-term and
short-term sales objectives in terms oI sales, proIits, growth, market share etc. Design
detailed sales programme to improve competitive position to reach laid down sales volume
objective and reduce cost oI sales and distribution. Reviews and approves sales policies,
strategies and pricing policies to ensure short-term operations are in accordance with long-
term plans.
DUTIES AND RESPONSIILITIES oI GSM Organisation: Set up and control eIIective
organisation structure, to carry out departmental responsibilities. Provide leadership to sales
Iorce to motivate them by developing appropriate reward and compensation plan which meet
the organisational objectives as well as individual aspirations.
DUTIES AND RESPONSIILITIES oI GSM Liaison Function: Sales manager must
develop eIIective liaison with superiors, colleagues and other heads oI departments like
Production, Finance, and Personnel etc. To support the sales Iorce eIIorts and customer
satisIaction. This will ensure healthy internal and external relations
DUTIES AND RESPONSIILITIES oI GSM Sales Force Management: Locate reliable
sources oI sales Iorce and establish sound selection process. Organise eIIective T&D
programme to improve their perIormance level. IdentiIy competent sales personnel Ior
promotion and other incentives to retain them and Iind continuous replacement Ior drop-outs.
Organise eIIective compensation packages and leadership Ior motivation and better
perIormance. Introduce control Ior meeting targets and weed out dead wood.
DUTIES AND RESPONSIILITIES oI GSM Communication: Continuous and eIIective
communication is established with Director (Marketing) and sales Iorce InIormation is
updated in regards to overall departmental perIormance on sales against objectives, problem
areas, special achievements, competitors actions and customer expectations etc.
DUTIES AND RESPONSIILITIES oI GSM Control: Ensures control to dovetail between
production and sales, so as to minimise inventory level. Introduce strict control on
expenditure to ensure expenses are within budgetary provisions. This will assist taking
corrective action when deviations are beyond acceptable limits.
FIELD SALES MANAGER (FSM) OR DISTRICT SALES MANAGER (DSM) Field or
District Sales Manager (DSM) reports to General Sales Manager (GSM). The primary
objective is to secure maximum sales in the Sales District (territory) in accordance with laid
down sales budget.
DUTIES AND RESPONSIILITIES OF FSM OR DSM Supervision oI Sales Personnel:
Evaluate sales opportunities in the district and assign territories to sales persons based on
equitable work load and minimum travel requirement. Supervise the work load oI sales
person by proper direction, guidance and assistance to achieve and sustain competitive
advantage. Attend to sales persons important personal problems to keep them happy and
contented, to devote Iull time to the sales work. Rate sales persons, in their perIormance, and
discuss with them, at least once in a year, Iocusing their attention to areas oI improvement.
DUTIES AND RESPONSIILITIES OF FSM OR DSM Control: Prepare short-term sales
Iorecast oI district by collecting similar Iorecasts oI territories Irom sales persons to prepare
accurate sales plans, Iixing quotas and budgets. Prepare periodic progress review oI sales
against planned targets/objectives. Report to GSM any signiIicant development and
inIormation on market intelligence received.
DUTIES AND RESPONSIILITIES OF FSM OR DSM Cost Accounting and
Administration: Responsible Ior administration oI direct sales oIIice and warehouse and
stock Iacilities as per laid down policies and procedures. EIIective liaison with technical
specialists, other DSMs and headquarters Ior team work to enhance sales turnover, reduce
costs and implement IaithIully the sales programme.
DUTIES AND RESPONSIILITIES OF FSM OR DSM Communication: Interpret sales
plans, policies and programmes received Irom corporate headquarters and explain to sales
Iorce. Convey any relevant inIormation received Irom market intelligence Irom customers,
competitors and sales Iorce which are oI signiIicant value to top management in corporate
oIIice. Promote better customer relations by participating in the activities oI social and
proIessional bodies in the district territories.
PerIormance Evaluation DSMs perIormance is evaluated based on the Iollowing: Reaching
or exceeding laid down sales targets. Limiting sales expenses within the budgeted Iigures.
Maintain proIit contribution oI district oIIice, warehouses and stock Iacilities in line with the
plan targets. Maintain turnover rate oI sales persons at satisIactory levels.
FUNCTIONS OF SALES MANAGER Planning Functions: Lays down sales objectives,
policies and strategies. Prepare a sales plans and programme to implement sales strategies.
Design and administer suitable sales organisation. Designing sales territories & deciding the
size oI sales Iorce. Formulation oI personal selling objectives. Organising sales Iorces
selection, recruitment socialising (orientation) and placement. Training and development,
career planning, transIers and promotion.
QUALITIES/AILITIES/CHARACTERISTIC OF A SALES MANAGER There are two
opinions on the success oI sales managers. 1. Sales abilities are inborn qualities 2. Sales
abilities are developed. Some oI the sales abilities like giIt oI gap, pleasing manner, extrovert
nature are inborn. However, others like analytical ability, negotiation skills, leadership, etc.
are developed.
QUALITIES/AILITIES/CHARACTERISTICS OF A SALES MANAGER
Following Iive abilities are identiIied: 1. Leadership and Supervision- 2. Planning and
Conceptual Skill 3. SelI direction and selI control 4. Organising abilities 5. Time-
management
Leadership and Supervision Motivating salesmen in competitive environment need, more
than anything else, the leadership qualities. Leadership means the ability to inIluence
subordinate willingly doing their work meticulously. This involves proper delegation oI
authority, eIIective supervision through direction and control, better communication skills
etc. y eIIective supervision, work is distributed based on capabilities and aptitudes oI each.
y proper training, individual skills and knowledge are improved. This will improve interest
and competence in them. etter human relations skill and team spirit inculcate "espirit-de-
corps" in them. All these enhance "empowerment" which is maniIested by a sense oI
belongingness and commitment by developing positive attitude.
Planning and Conceptual Skill Planning is a sine qua non Ior success in sales and the
essential ability Ior a manager is his capability to Ioresee Iar in to the Iuture which is called
"conceptual skill". The rapid changes in liIe style, aIIect market conditions. Technological
changes aIIect products. EIIective communication improves abilities oI competitors to bring
in new products in market. Consumer Iorce and political patronage oI consumers can make
matters worse. Market manager must be able to Ioresee these changes in advance and alert
his management to take corrective actions in time to attain and sustain competitive advantage
in market. Furthermore, such changes must be incorporated in the planning by updating or
amending plans.
SelI Direction and SelI Control Sales executives are the "live wire" in an organisation and are
the revenue earners. eing at the centre stage oI activities, sales manager must know what
company expect Irom him. Whether deIined or not, he must assign his own duties and
responsibilities and act accordingly. eing a specialist in his Iield, he does not look up to
anyone in his organisation to guide and control him. As and when market conditions change,
he rewrites his own agenda and assumes responsibility oI new tasks, selI-assigned by
himselI.
Organising Ability Sales manager must be a good organiser and real 'GO-GETTER". He
must organise an eIIective team, make a structure suitable Ior a given situation, recruit and
select proper salespersons to manage diIIerent territories & products, delegate authority, co-
ordinate and control their activities, motivate and compensate their work, recognise their
eIIorts and acknowledge good work. He is to develop his team giving them adequate
monopoly and Ireedom oI action and at the same time maintain strict control on their
activities keeping in mind, that the organisational objectives are not lost sight oI.
Time-Management Time is the scarcest oI all resources. One has to balance his time between
planning Iunctions, and operating Iunctions properly. SM must also Iind time Ior meeting his
salesmen, customers and distributors. Also Iind time to meet his superiors at corporate
headquarters, as well as do liaison Iunctions with other departments.
SALES MANAGEMENT CAREERS
In many ways, sales managers are similar to other marketing managers in the organization in that
they are assigned a proIit center Ior which they are ultimately responsible and Ior which they are
expected to oversee all activities. Naturally sales manager's jobs also diIIer Irom other
marketing-related management positions. Foremost among the diIIerences is the geographical
positioning oI subordinates. In order to cut sales costs, companies attempt to disperse their sales
Iorces evenly throughout the entire selling zone. This division reduces the sales manager's ability
to directly oversee their work. As a result, sales managers must spend much more oI their time
traveling than other managers.
Another distinguishing characteristic oI sales management positions is their high exposure. Sales
managers are usually on the "Iront lines" oI their company's war in the competitive market. And,
because oI detailed weekly, or even daily, reports showing sales and proIit data, their
perIormance can be easily judged by superiors and coworkers. A corollary oI the ease in
measuring their perIormance is that their compensation plans typically diIIer Irom managers in
areas such as Iinance or operations. OIten, much oI their compensation comes in the Iorm oI
bonuses linked to statistics indicative oI the success oI the overall sales Iorce. ased on
published estimates, the typical senior sales representative in 1998 earned $68,000 a year,
excluding bonuses and incentive pay, which were likely to put the Iigure at closer to $90,000. A
typical salary Ior a district sales manager was $75,000, and Ior a regional sales manager,
$80,000. Sales executives earned on average oI $110,000. Importantly, online sales managers
such as individuals who manage Internet sales activities Ior a company took in an impressive
$117,000 in the middle category oI earners, with top online sales managers averaging $150,000.
Despite their administrative orientation, many sales managers continue to spend much oI their
time selling. In Iact, at least one study made during the 1970s indicated that sales managers
spend about 35 percent oI their time engaged in sales activities, including making important sales
calls with their sales people and dealing with problem accounts. The study also revealed that
about 20 percent oI the managers' time, on average, was used to train people, establish
perIormance standards, and handle other personnel matters. The remainder oI the time was
dedicated mostly to marketing, administrative, and Iinancial tasks. How sales managers spend
their time continues to be a subject oI controversy at cost-conscious companies as they seek to
maximize the value generated by all employees and managers.
POSITIONS
Sales managers commonly begin their careers as salespeople. In some instances, particularly in
companies that sell products and services directly to customers, sales people may assume a
management role in as little as six months. Typically, however, at least a Iew years oI Iield sales
experience is required to become eligible Ior a management position. In the case oI Iirms that
market highly technical industrial products, a competent sales person may have to work in the
Iield Ior Iive or ten years beIore being promoted.
A common progression Ior a manager oI a Iield sales Iorce is district, regional, and then national
sales manager. Some companies also have unit managers, who are typically placed in charge oI
Iour or Iive sales people. All oI these territorial management positions are usually in direct
authority over the sales Iorce and generally entail the responsibilities outlined in this text. Most
companies have a chieI sales executive, or the equivalent thereoI. Regardless oI his or her title,
that person is ultimately in charge oI overseeing the successIul operation oI the entire Iield sales
Iorce program.
Some companies organize their sales Iorces by markets, products, or customer types, rather then
territories. In those instances, sales Iorce managers are commonly reIerred to as market sales
managers or product sales managers. Furthermore, high-level Iield sales Iorce managers,
particularly in large organizations, may employ one or several assistant sales managers to handle
budgeting, Iorecasting, research, and other duties. Finally, in addition to Iield sales Iorce
management positions, there are a number oI sales management proIessionals who do not
oversee sales people in the Iield. Such jobs include managers oI sales training, customer service,
and research departments.







Mod 3
Theories oI selling
AIAS theory oI selling
TIe ADAS LIeory oI seIIIng Is one oI LIe wIdesL known LIeorIes und Is LIe busIs Ior LruInIng
muLerIuIs ucross numerous orgunIzuLIons. ADAS sLunds Ior ALLenLIon, nLeresL, DesIre,
AcLIon, SuLIsIucLIon. TIe ADAS LIeory sImpIy sLuLes LIuL u prospecL goes LIrougI IIve
dIIIerenL sLuges beIore IInuIIy respondIng suLIsIucLorIIy Lo our producL. LIus Ie sIouId be Ied
comIorLubIy LIrougI uII IIve sLuges.
Attention - GuInIng uLLenLIon Is u skIII und und jusL IIke uny skIII, guInIng uLLenLIon cun be
Improved upon wILI prucLIce. A common pIruse uppIIcubIe over Iere Is IrsL ImpressIon Is
IusL ImpressIon. TIe InILIuI uLLempL oI LIe suIes person musL be Lo puL LIe cusLomer
compIeLeIy uL euse. CusuuI conversuLIon Is one oI LIe besL openers uILer wIIcI LIe suIes
person cun guIn cusLomer uLLenLIon by IeudIng IIm onLo LIe suIe.
TIere cun be z scenurIos In guInIng cusLomer uLLenLIon. One wIere you ure goIng Lo
cusLomer wILI un uppoInLmenL und oLIer wIere you ure mukIng u coId cuII. GuInIng
cusLomer uLLenLIon wILI un uppoInLmenL Is compuruLIveIy eusIer us compured Lo coId cuIIs
wIere you Iuve Lo overcome 'suIes resIsLunce`.
One oI LIe key IucLors wIIcI conLrIbuLes Lo cusLomer uLLenLIon Is your suIes pILcI us weII us
your conversuLIon ubIIILIes. TIe suIes person needs Lo esLubIIsI good rupporL us soon us
possIbIe. TIus LIe suIes person cun use muin techniqoes to get costomer uttention
1) Huve u reudy suIes pILcI - By u suIes pILcI I meun you sIouId Iuve un Ideu oI wIuL you ure
goIng Lo speuk, uIong wILI LIe normuI conversuLIon sLurLers. L sIouIdn`L be LIuL you Iuve u
oo word speecI reudy und us soon us you ure In IronL oI LIe cusLomer you sLurL recILIng IL.
A suIes pILcI sIouId greeL LIe cusLomer, usk IIm Ior IIs Iree LIme und LIen proceed. guuge
LIe cusLomer recepLIon und remember - II LIe cusLomer Is IrrILubIe, IL Is besL Lo posLpone
your pILcI Ior IuLer or vury IL on LIe spoL uccordIng Lo LIe cusLomers mood.
z) Try Lo reIux LIe cusLomer - TIe cusLomer wIII Iuve expecLuLIons Irom you. TIus IuvIng u
cuIm conversuLIon wILI IIm, uskIng IIm ubouL IIs busIness und InLeresLs und IIs IuLure
prospecLs und LIun IuLer on connecLIng YOUR producL Lo IIs vIsIon Is ImporLunL. n LIIs
munner LIe cusLomer sIowIy reIuxes und Is more prone Lo uskIng quesLIons by IImseII und II
noL, LIun uL IeusL Ie wIII be open Lo conversuLIon. You cun LIen Ieud IIm onLo LIe producL
presenLuLIon sLuge und guIn IIs InLeresL.
) Do noL uppeur Loo euger - EnLIusIusm In suIes Is ImporLunL und II you Iuve conIIdence In
your producL, your enLIusIusm sIows. However IL Is necessury noL Lo uppeur Loo euger
becuuse eugerness In ILseII cun be u Lurn oII und LIe cusLomer mIgIL Iose InLeresL. Your
upproucI Lowurds LIe cusLomer needs Lo be In uccordunce Lo LIe cusLomer. SomeLImes
dIrecL, someLImes subLIe. Remember - SIouLIng guIns uLLenLIon Ior u mInImum LIme perIod
wIereus LuIkIng sLuys In LIe memory. You LIereIore need Lo LuIk Lo your cusLomer ruLIer
LIun sIouL.
Interest - Once you Iuve guIned uLLenLIon, IL Is very ImporLunL Lo muInLuIn InLeresL. Some
suIes peopIe ure very good In LIe openIng buL us LIe LecInIcuIILIes Luke over, LIey become
uncomIorLubIe wIIIe expIuInIng LIe producL. WIereus oLIers wIo ure sLrong In LIe producL
depurLmenL mIgIL open bIunLIy buL creuLe InLeresL In LIe second sLuge. MuInLuInIng InLeresL
Is u crucIuI purL oI LIe suIes process und Ience Is IncIuded In LIe ADAS LIeory.
Present yoorselI us u proIessionul - BesIdes LIe busIcs oI personuIILy und
communIcuLIon oI u suIes persons, LIe mosL commonIy used LecInIques Is Lo muInLuIn
cuLuIogues, brocIures or some presenLubIe muLerIuI. n IIgIIy LecInIcuI producLs, suIes
persons curry LIeIr IupLops uIong wILI presenLuLIons us weII us LecInIcuI duLu Lo unswer uny
querIes on LIe spoL. TIIs IeIps In muInLuInIng cusLomer InLeresL.
z) Cutch hints - TIe prospecL IImseII drops IInLs durIng LIe openIng sLuge und u smurL
suIes person sIouId cuLcI LIose IInLs. SucI us II you Iuve u porLIoIIo oI q producLs, LIe
cusLomer mIgIL usk u quesLIon on 1 oI LIose producLs. TIIs mIgIL meun Ie Ius un ubove
uveruge InLeresL In LIuL 1 producL und LIe suIes person cun LIun sLurL LIe pILcI by sIowIng
LIe udvunLuges oI LIuL sIngIe producL. A suIes meLIod used especIuIIy by u sIoe suIesmen.
) Probe [ Ask the prospect qoestions - ProbIng Is u very ImporLunL LecInIque. CIeur
ouL IIs uLLILude Lowurds you producL und LIun proceed wILI your presenLuLIon. Your
quesLIons sIouId be smurL und sIouId unswer busIcs IIke Does Ie need your producLs? Does
Ie Iuve u preIerence Ior uny specIIIc producL? Hus Ie used your kInd producL beIore? Hus
Ie Ieurd ubouL your producL? eLc. TIese quesLIons cun IeIp you deLermIne Iow mucI
convIncIng you need Lo do.
A suIes person needs Lo undersLund busIcs sucI us cusLomer moLIvuLIon, body cues, IosLIIILy,
undersLundIbIIILy us weII us cusLomer preIerences Lo muInLuIn InLeresL Lowurds LIe producL.
CusLomer InLeresL Is un InLegruI purL oI LIe ADAS LIeory oI seIIIng.
esire - Huve you seen LIe commercIuIs wIereIn you jusL Iuve Lo geL ouL oI your Iouse und
geL LIe producL? PerIups u cur, un Ice creum or u Iouse. TIe sume Ius Lo be done by LIe
suIes person In personuI seIIIng. He Ius Lo creuLe enougI desIre In LIe cusLomers mInd sucI
LIuL Ie ImmedIuLeIy Ius Lo buy LIe producL. mugIne un uquuguurd suIes mun or u
Lupperwure suIes person. TIey IIgIIIgIL LIe producL In sucI u munner LIuL you mIgIL be
LIInkIng WIy dIdnL I buy LIIs producL beIore. TIus kIndIIng LIuL desIre becomes un
InLegruI purL oI LIe ADAS seIIIng LIeory. Reud more on Iow Lo creuLe desIre Ior LIe producL
Action - AILIougI LIere muy be desIre Ior LIe producL, LIe cusLomer mIgIL noL ucL on IL. He
mIgIL wunL Lo buy LIe producL buL Ie mIgIL NOT buy IL. n sucI cuses LIe cusLomer needs Lo
be Induced. TIere ure vurIous wuys Lo Induce LIe cusLomer sucI LIuL Ie buys LIe producL. L
Is ImporLunL Ior LIe suIes person Lo undersLund wIeLIer Lo dIrecLIy Induce LIe cusLomer or
wIeLIer Lo pusI subLIe remInders LIuL you ure LIere Ior u suIes cuII . BoLI meLIods work,
buL you need Lo know your cusLomer.
SutisIuction - WIuL wouId you do uILer LIe cusLomer Ius gIven LIe order? WIII you sLund
up, PoInL uL IIm und sIouL ooIed yu. donL LIInk so. TIe cusLomer Ius jusL purLed wILI
IIs money. JusL IIke you purL your money und expecL good servIce, Ie expecLs LIe sume Loo.
So even uILer Ie Ius bougIL LIe producL, you need Lo reussure LIe cusLomer LIuL Ie Ius
mude LIe rIgIL decIsIon. TIe producL Is good Ior LIe cusLomer und you onIy presenLed LIe
producL. L wus IIs decIsIon und Ie Is rIgIL ubouL IL. TIese smuII cues posL LIe suIes process
reuIIy gIve conIIdence Lo LIe cusLomer und Ie LIen Iooks Iorwurd Lo your producL ruLIer
LIun LIInkIng wIeLIer or noL Ie Ius mude LIe rIgIL decIsIon.
AILIougI LIe cusLomer-cenLered IIrm seeks Lo creuLe IIgI cusLomer suLIsIucLIon, LIuL Is noL
ILs muIn gouI. I LIe compuny Increuses cusLomer suLIsIucLIon by IowerIng ILs prIce or
IncreusIng ILs servIces , LIe resuILs muy be Iower proIILs.
TooIs Ior TruckIng und MeusurIng SuLIsIucLIon
Compluint und soggestion systems:
A cusLomer-cenLered orgunIzuLIon mukes IL eusy Ior cusLomers Lo regIsLer suggesLIons und
compIuInLs. Some cusLomer-cenLered compunIes-P&G, GeneruI EIecLrIc, WIIrIpooI -
esLubIIsI IoL IInes wILI LoII-Iree numbers. CompunIes ure uIso usIng Web sILes und e-muII
Ior quIck, Lwo-wuy communIcuLIon.
Costomer sutisIuction sorveys:
SLudIes sIow LIuL uILIougI cusLomer ure dIssuLIsIIed wILI on ouL oI every Iour purcIuses,
Iess LIun percenL wIII compIuIn. MosL cusLomers wIII buy Iess or swILcI suppIIers,.
ResponsIve compunIes meusure cusLomer suLIsIucLIon dIrecLIy by conducLIng perIodIc
surveys. WIIIe coIIecLIng cusLomer suLIsIucLIon duLu, IL Is uIso useIuI Lo usk uddILIonuI
quesLIons Lo meusure repurcIuse InLenLIon und Lo meusure LIe IIkeIIIood or wIIIIngness Lo
recommended LIe compuny und brund Lo oLIers.
Ghost shopping:
CompunIes cun IIre peopIe Lo pose us poLenLIuI buyers Lo reporL on sLrong und weuk poInLs
experIenced In buyIng LIe compuny`s und com-peLILors 'producLs. TIese mysLery sIoppers
cun even LesL Iow LIe compuny`s suIes personneI IundIe vurIous sILuuLIons. Munugers LIem-
seIves sIouId Ieuve LIeIr oIIIces Irom LIme Lo LIme, enLer compuny und compeLILor suIes
sILuuLIons wIere LIey ure unknown, und experIence IIrsLIund LIe LreuLmenL LIey receIve. A
vurIunL oI LIIs Is Ior munugers Lo pIone LIeIr own compuny wILI quesLIons und
compIuInLs Lo see Iow LIe cuIIs ure IundIed.

Costomer unulysis
I you Luke uny busIness pIun, murkeLIng pIun, or murkeL reseurcI, you wIII IInd LIuL LIe IIrsL
quesLIon usked Is WIo Is your LurgeL cusLomer. TIus Lo deLermIne your LurgeL, you need Lo
know your cusLomers. TIere ure severuI busIc quesLIons Lo be usked oI u demogrupIy Lo
unuIyse u cusLomer. Some oI LIese quesLIons ure
Costomer demogruphic proIile - One oI LIe reusons CRM sysLems Iuve become
udvunced over LIme Is by perIormIng cusLomer unuIysIs. AL LIe cIIck oI u buLLon you cun
know wIuL Is LIe uge oI LIe cusLomers, wIuL Is LIeIr IocuLIon und wIuL Is LIeIr gender. TIus
II you wunL Lo promoLe kILcIen equIpmenL`s, you wIII do u bunner udverLIsIng or puper InserL
N THE OCATON wIIcI Ius LIe besL buyIng record In your sLore. TIus unuIyzIng
cusLomer demogrupIy Is u prIorILy oI CRM progrums.
Costomer boying behuvior - WIuL do LIe cusLomers buy Irom us? WIuL IucLors ure
mukIng LIem buy our producLs? WIuL producLs do LIey buy Irom compeLILIon? WIIcI
compeLILor Is on LIe Lop oI LIeIr mInds? How dId LIuL compeLILor brIng ubouL sucI u good
brund recuII? WIIcI Is LIe IeuLure demunded mosL by your cusLomers? WIuL ure LIe needs
wunLs und demunds oI LIe cusLomer? oLs oI quesLIons wIIcI In LIe end expIuIn Lo you Iow
you sIouId orgunIze your busIness. TrusL me, even II you IIre LIe besL murkeLIng consuILunL,
LIese wIII be LIe quesLIons Ie wIII usk. TIese quesLIons cun be very ImporLunL II you ure
Irom u smuII busIness envIronmenL.
ew vs retorning costomers - One oI LIe mosL ImporLunL unuIysIs Ior your
orgunIzuLIon wIIcI depIcLs your quunLILuLIve success Is LIe new vs reLurnIng cusLomers
muLrIx. I your cusLomers don`L reLurn Lo your busIness, you Iuve goL u probIem In your
Iund my IrIend. TIus over Iere LIe ubove Lwo poInLs wIII be on Lo IeIp you LIe mosL. TIIs Is
LIe IInuI sLruw In LIe cusLomer unuIysIs proIIIe us IL IeIps you decIde wIuL Is LIe uIIecL oI LIe
ubove Lwo poInLs on your cusLomer und wIeLIer or noL LIey ure InducIng ucLIon. I LIey ure,
LIen wIIcI progrums ure Lo be IoIIowed und wIIcI ure Lo be dIscurded.
Lses oI costomer unulysis
1. IdentiIying WHO yoor best costomer is - CusLomer unuIysIs cun IeIp you IdenLIIy
wIo your cusLomer Is und LIereby Improve LIe segmenLuLIon LurgeLIng und posILIonIng
process. Remember - 8o% oI your busIness wIII come Irom zo% oI your cusLomers. L Is
ImporLunL you know wIo LIose cusLomers cun be.
z. Plunning oot retention pluns Ior yoor new costomers - New cusLomers ure
ImporLunL buL so ure reLurnIng cusLomers. TIus cusLomer unuIysIs cun IeIp converL your
IIrsL LIme cusLomers Lo reLurnIng cusLomers
. Indocing Iorther boying Irom yoor existing costomers - Cross seIIIng, ImpuIse
purcIuses ure some oI LIe meLIods wIIcI Increuse purcIusIng by your exIsLIng cusLomers.
ExumpIe - II you know cusLomers wIo Iuve bougIL joggIng equIpmenL, you cun cross
promoLe oLIer joggIng reIuLed IusIIon Lo LIem.
q. Improving costomer service - Once you know wIo your cusLomer Is, you cun know
wIuL kInd oI servIces wIII LIey demund. TIus cusLomer unuIysIs wIII uIso IeIp In servIce
deIIverubIIILy.
. IIective cumpuign plunning - TIe demogrupIy und purcIusIng IubILs oI your
cusLomers wIII IeIp you wILI pIunnIng u IIgIIy eIIecLIve cumpuIgn LIereby ImprovIng your
LurgeL.
6. Increusing murket shure - WIuL II wIIIe doIng cusLomer unuIysIs you recognIze u seL oI
cusLomers LIuL Iuven`L been LurgeLed by you? AL LIe sume LIme, you uIso esLubIIsI
procedures beLLer LIen LIe compeLILors. TIe eIIecL - ncreuse In murkeL sIure.
. Increusing overull proIitubility - BusInesses ure esLubIIsIed Ior proIILs. And overuII
proIILubIIILy us weII us weII beIng oI LIe orgunIzuLIon Increuses once ILs cusLomers ure
suLIsIIed. And cusLomer suLIsIucLIon wIII Iuppen onIy LIrougI cusLomer unuIysIs.

Boyer Seller yuds
TIe Lerm dyud Is used Ior InLerucLIons beLween peopIe. TIus buyer seIIer InLerucLIons cun
uIso be suId us buyer seIIer dyuds. TIe seIIer cun eILIer be u personuI suIesmun, or un
udverLIsemenL, or uny sucI combInuLIon oI u puII or pusI sLruLegy. However, LIIs InLerucLIon
beLween buyer und seIIer Is known us buyer seIIer dyud.
TIe objecLIve oI u murkeLers Is Lo opLImuIIy uLIIIze buyer seIIer dyuds or In oLIer words Lo
Iuve InLerucLIons In sucI u munner LIuL LIe cusLomer buys our producLs. TIuL Is wIy so
mucI murkeL reseurcI Is puL InLo deveIopIng un ud copy or InLo LruInIng u suIes execuLIve.
Becuuse LIey ure LIe muIn InLerucLIon poInL.
ExumpIe - ReseurcI Ius sIown LIuL In LIe nsurunce IndusLry, peopIe ure more reudy Lo
buy Insurunce Irom u represenLuLIve LIey know personuIIy ruLIer LIun Irom u compuny
represenLuLIve. TIus Insurunce compunIes Look u sLund oI mukIng suIes ugenLs ruLIer LIun
IIrIng LIem becuuse LIese ugenLs LIrougI LIeIr conLucLs ure ubIe Lo seII Insurunce mucI
beLLer.
Murketing implicutions oI boyer seller dyuds
O SuIes personneI sIouId be muLcIed wILI LIe cusLomer so us Lo Increuse InLerucLIon. Do noL
IIre u suIes execuLIve In one demogrupIy Lo represenL LIe compuny In unoLIer demogrupIy
uILogeLIer.
O A IucLor mujorIy uIIecLIng buyer seIIer dyuds Is LIe ImpressIon brougIL on Irom cIIIdIood
LIuL suIes und murkeLIng InvoIves LrIckIng LIe cusLomer InLo buyIng LIe producL. TIIs Loo
uIIecLs LIe InLerucLIon process
O SuIes peopIe ure sLereoLyped even beIore LIeIr pILcI. TIus LIey need Lo be LruIned In sucI u
munner LIuL LIey overcome LIe resIsLunce so us Lo Iuve u posILIve InLerucLIon.
SeIIIng Is u Lwo wuy process InvoIvIng boLI LIe consumer und LIe murkeLer, u buyer und u
seIIer. Hence LIe sLudy oI buyer seIIer dyuds Is exLremeIy ImporLunL.


Persora| se|||rg
Corcepl
Persora| se|||rg |s pa|d persora| corrur|cal|or lral allerpls lo |rlorr cuslorers ard persuadelrer lo purcrase producls or serv|ces.You
Wou|d agree lral |l |s lre persora| se|||rg process lral a||oWs rar|elers lre grealesl lreedor loadjusl a ressage lo sal|sly cuslorers'
|rlorral|or reeds. Persora| se|||rg a||oWs lre rar|eler orse||er lo corrur|cale d|recl|y W|lr lre prospecl or cuslorer ard ||sler lo r|s or rer
corcerrs, ar-sWer spec|l|c quesl|ors, prov|de add|l|ora| |rlorral|or, |rlorr, persuade, ard poss|o|y ever recor-rerd olrer producls or
serv|ces.ll Wou|d oe |rleresl|rg lor you lo |roW lral persora| se|||rg |s ore ol lre o|desl lorrs ol prorol|or.ll |rvo|ves lre use ol a sa|es lorce
lo supporl a pusr slralegy (ercourag|rg |rlerred|ar|es lo ouylre producl) or a pu|| slralegy (Wrere lre ro|e ol lre sa|es lorce ray oe ||r|led lo
supporl|rgrela||ers ard prov|d|rg aller-sa|es serv|ce).Lel us |oo| al roW persora| se|||rg lac|||lales rar|elers :- Tre grealesl lreedor lo adjusl
a ressage lo sal|sly cuslorers |rlorral|ora| reeds, dyrar|c. Vosl prec|s|or, erao||rg rar|elers lo locus or rosl pror|s|rg |eads. vs.
adverl|s|rg, puo||c|ly ard sa|es prorol|or 0|ve rore |rlorral|or TWo Way l|oW ol |rlorral|or, |rleracl|v|ly
Personal sellIng can be defIned as follows:
Personcl sellny s orcl communccton wth potentcl buyers o] c product wth the ntenton o] mckny
c scle. The personcl sellny mcy ]ocus ntclly on developny c relctonshp wth the potentcl buyer,
but wll clwcys ultmctely end wth cn cttempt to close the scle

o||oW|rg are sore calegor|es ol sa|es persorA. 3a|espersors ray oe order gellers, order la|ers, ard supporl persorre|. A s|rg|e |rd|v|dua|
car, ard oller does, perlorr a|| lrree lurcl|ors.1. 0rder 0ellers. Ar order geller |s respors|o|e lor Wral |s sorel|res ca||ed creal|ve se|||rg:
se|||rg lre l|rr's producls lo reW cuslorers ard |rcreas|rg sa|es lo preserl cuslorers.a. Ar order geller rusl perce|ve ouyers' reeds supp|y
cuslorers W|lr |rlorral|or aooul lre l|rr's producl, ard persuade lrer lo ouy lre producl.o. 0rder-gell|rg acl|v|l|es la|| |rlo lWo groups.1. lr
currerl-cuslorer sa|es, sa|espeop|e corcerlrale or oola|r|rg add|l|ora| sa|es.2. lr reW-ous|ress sa|es, sa|es persorre| see| oul reW
prospecls ard corv|rce lrer lo ra|e ar |r|l|a| purcrase.2. 0rder Ta|ers. Ar order la|er rard|es repeal sa|es |r Ways lral ra|rla|r pos|l|ve
re|al|orsr|ps W|lr cuslorers.a. lrs|de order la|ers rece|ve |rcor|rg ra|| ard le|eprore orders; lrey a|so |rc|ude sa|espersors |r rela||
slores.o. 0uls|de (or l|e|d) order la|ers lrave| lo cuslorers.3. 3upporl Persorre|. 3a|es supporl persorre| a|d |r se|||rg oul are rore |rvo|ved
|r |ocal|rg prospecls, educal|rg cuslorers, ou||d|rg goodW||| lor lre l|rr, ard prov|d|rg lo||oW-up serv|ce.a. A r|ss|orary sa|espersor usua||y
Wor|s lor a rarulaclurer ard v|s|ls rela||ers lo persuade lrer lo ouy lre rarulaclurer's producls.o. A lrade sa|espersor gerera||y Wor|s lor a
lood producer or processor ard ass|sls |ls cuslorers |r prorol|rg producls, espec|a||y |r rela|| slores.A lecrr|ca| sa|espersor ass|sls lre
corpary's currerl cuslorers |r lecrr|ca| rallers
.PR03 AN0 C0N3 0 PER30NAL 3ELLlN0wral are lre advarlages ol us|rg persora| se|||rg as a rears ol prorol|or? Persora| se|||rg |s
a lace-lo-lace acl|v|ly; cuslorers lrerelore oola|r a re|al|ve|y r|gr degree ol persora| allerl|or Tre sa|es ressage car oe cuslor|sed lo reel
lre reeds ol lre cuslorer Tre lWo-Way ralure ol lre sa|es process a||oWs lre sa|es lear lo respord d|recl|y ard prorpl|y lo cuslorer
quesl|ors ard corcerrs Persora| se|||rg |s a good Way ol gell|rg across |arge arourls ol lecrr|ca| or olrer corp|ex producl |rlorral|or Tre
lace-lo-lace sa|es reel|rg g|ves lre sa|es lorce crarce lo derorslrale lre producl requerl reel|rgs oelWeer sa|es lorce ard cuslorer
prov|de ar opporlur|ly lo ou||d good |org- lerr re|al|orsr|ps0|ver lral lrere are rary advarlages lo persora| se|||rg, Wry do rore
ous|resses rol ra|rla|r
sever sleps ol persora| se|||rg process :-1. PR03PECTlN02. PRE-APPR0ACl3. APPR0ACl1. 3ALE3 PRE3ENTATl0N5. lAN0LlN0
08JECTl0N3. CL03lN0 3ALEZ. 0LL0w uP1. PR03PECTlN0 - Prospecl|rg relers lo |derl|ly|rg ard deve|op|rg a ||sl ol polerl|a|
c||erls.3a|espeop|e car see| lre rares ol prospecls lror a var|ely ol sources |rc|ud|rg lrade sroWs,correrc|a||y-ava||ao|e dalaoases or ra||
||sls, corpary sa|es records ard |r-rouse dalaoases, puo||crecords, relerra|s, d|reclor|es, ard a W|de var|ely ol olrer sources. Prospecl|rg
acl|v|l|es srou|d oec|ear|y slruclured so lral lrey |derl|ly or|y polerl|a| c||erls Wro l|l lre prol||e ard are ao|e, W||||rg,ard aulror|zed lo ouy lre
producl or serv|ce. 0rce prospecl|rg |s urderWay, |l lrer |s up lo lre sa|esproless|ora| lo qua||ly lrose prospecls lo lurlrer |derl|ly |||e|y
cuslorers ard screer oul poor |eadsLel us |oo| al lre prospecl|rg relrods |r or|el : Relerra|s lror cuslorers Trad|rg |eads W|lr olrer sa|es
represerlal|ves (ror-corpel|l|ve) lrlerra| L|sls Purcrased ||sls (sore |rleresl) Co|d ca|||rg (ro pr|or |rd|cal|or ol |rleresl)2. PRE-APPR0ACl
- 8elore ergag|rg |r lre aclua| persora| se|||rg process, sa|es proless|ora|sl|rsl ara|yze a|| lre |rlorral|or lrey rave ava||ao|e lo lrer aooul a
prospecl lo urderslard as rucraooul lre prospecl as poss|o|e. 0ur|rg lre pre approacr prase ol lre persora| se|||rg process,
sa|esproless|ora|s lry lo urderslard lre prospecl's currerl reeds, currerl use ol orards ard lee||rgs aooula|| ava||ao|e orards, as We|| as
|derl|ly |ey dec|s|or ra|ers, rev|eW accourl r|slor|es (|l ary), assessproducl reeds, p|ar/creale a sa|es preserlal|or lo address lre |derl|l|ed
ard |||e|y corcerrs ol lreprospecl, ard sel ca|| oojecl|ves. Tre sa|es proless|ora| a|so deve|ops a pre||r|rary overa|| slralegylor lre sa|es
process dur|rg lr|s prase, |eep|rg |r r|rd lral lre slralegy ray rave lo oe rel|red as reor sre |earrs rore aooul lre prospecl.lr or|el pre-
approacr Wou|d |rvo|ve lre lo||oW|rg :- 0oes lre cuslorer rave a reed lral Wou|d oe l|||ed oy lre producl/serv|ce? ls |l l|rarc|a||y poss|o|e lor
lre cuslorer lo ouy? Car lre persor ra|e or |rl|uerce lre dec|s|or
2. APPR0ACl - Tre approacr |s lre aclua| corlacl lre sa|es proless|ora| ras W|lr lre prospecl.Tr|s |s lre po|rl ol lre se|||rg process
Wrere lre sa|es proless|ora| reels ard greels lre prospecl,prov|des ar |rlroducl|or, eslao||sres rapporl lral sels lre lourdal|or ol
lre re|al|orsr|p, ard as|soper-erded quesl|ors lo |earr rore aooul lre prospecl ard r|s or rer reeds.1. 3ALE3 PRE3ENTATl0N
- 0ur|rg lre preserlal|or porl|or ol lre se|||rg process, lre sa|esproless|ora| le||s lral producl 'slory |r a Way lral spea|s d|recl|y
lo lre |derl|l|ed reeds ard Warlsol lre prospecl. A r|gr|y cuslor|zed preserlal|or |s lre |ey corporerl ol lr|s slep. Al lr|s po|rl
|rlre process, prospecls are oller a||oWed lo ro|d ard/or |rspecl lre producl ard lre sa|es proless|ora|ray a|so aclua||y
derorslrale lre producl. Aud|o v|sua| preserlal|ors ray oe |rcorporaled sucr ass||de preserlal|ors or producl v|deos ard lr|s |s
usua||y Wrer sa|es orocrures or ooo||els are pre-serled lo lre prospecl. 3a|es proless|ora|s srou|d slr|ve lo |el lre prospecl do
rosl ol lre la|||rgdur|rg lre preserlal|or ard address lre reeds ol lre prospecl as lu||y as poss|o|e oy sroW|rg lral reor sre lru|y
urderslards ard cares aooul lre reeds ol lre prospecl.5. lAN0LlN0 08JECTl0N3 - Proless|ora| sa|espeop|e see| oul prospecl
oojecl|ors |r orderlo lry lo address ard overcore lrer. wrer prospecls ollers oojecl|ors, |l oller s|gra|s lral lreyreed ard Warl
lo rear rore |r order lo ra|e a lu||y-|rlorred dec|s|or. ll oojecl|ors are rol urcov-ered ard |derl|l|ed, lrer sa|es proless|ora|s
carrol ellecl|ve|y rarage lrer. urcover|rg oojecl|ors,as||rg c|ar|ly|rg quesl|ors, ard overcor|rg oojecl|ors |s a cr|l|ca| parl ol
lra|r|rg lor proless|ora|se||ers ard |s a s|||| area lral rusl oe corl|rua||y deve|oped oecause lrere W||| a|Ways oe oojecl|ors.Trusl
re Wrer l le|| you lral as soor as a sa|es proless|ora| l|rds a Way lo successlu||y rard|e 'a||r|s or rer prospecls' oojecl|ors, sore
prospecl W||| l|rd a reW, urarl|c|paled oojecl|or |l lor roolrer reasor lrar lo lesl lre rell|e ol lre sa|espersor.. CL03lN0 3ALE
- A|lrougr lecrr|ca||y 'c|os|rg a sa|e rappers Wrer producls or serv|ces arede||vered lo lre cuslorer's sal|slacl|or ard payrerl
|s rece|ved, lor lre purposes ol our d|scuss|orl W||| del|re c|os|rg as 'as||rg lor lre order. Trere are rary c|os|rg lecrr|ques as
We|| as raryWays lo as| lr|a| c|os|rg quesl|ors. A lra|| quesl|or r|grl la|e lre lorr ol, 'NoW lral l've addressedyour corcerrs, Wral
olrer quesl|ors do you rave lral r|grl |rpacl your dec|s|or lo purcrase?C|os|rg does rol a|Ways rear lral lre sa|es proless|ora|
||lera||y as|s lor lre order, |l cou|d oe as||rglre prospecl roW rary lrey Wou|d |||e, Wral co|or lrey Wou|d preler, Wrer lrey Wou|d
|||e lo la|ede||very, elc. Too rary sa|es proless|ors are e|lrer Wea| or loo aggress|ve Wrer |l cores lo c|os|rg.ll you are c|os|rg a
sa|e, oe sure lo as| lor lre order. ll lre prospecl g|ves ar arsWer olrer lrar'yes, |l ray oe a good opporlur|ly lo |derl|ly reW
oojecl|ors ard corl|rue se|||rg.Z. 0LL0w uP - o||oWup |s ar oller over|oo|ed oul |rporlarl parl ol lre se|||rg process. Allerar
order |s rece|ved, |l |s |r lre oesl |rleresl ol everyore |rvo|ved lor lre sa|espersor lo lo||oWup W|lrlre prospecl lo ra|e sure lre
producl Was rece|ved |r lre proper cord|l|or, al lre r|grl l|re, |rsla||edproper|y, proper lra|r|rg de||vered, ard lral lre erl|re
process Was acceplao|e lo lre cuslorer. Tr|s|s a cr|l|ca| slep |r creal|rg cuslorer sal|slacl|or ard ou||d|rg |org-lerr re|al|orsr|ps
W|lr cuslorers.ll lre cuslorer exper|erced ary proo|ers Wralsoever, lre sa|es proless|ora| car |rlervere ardoecore a cuslorer
advocale lo ersure 100 sal|slacl|or. 0|||gerl lo||oWup car a|so |ead lo urcov-er|rg reW reeds, add|l|ora| purcrases, ard a|so
relerra|s ard lesl|ror|a|s Wr|cr car oe used as sa|esloo|s.


wlAT 3l0uL0 A 0000 3ALE3PER30N 00 ?wral do you lr|r| ? wral are lre qua||l|es ol a good sa|espersor ?Lel us d|scuss
a leW ol lrer...1) 8e s|rcere W|lr peop|e. Too rary sa|espeop|e are la|e ard le|gr |rleresl |r lre|r prospecls. Peop|e are srarl
ard see r|grl lrrougr sucr |rs|rcer|ly. ll you are rol s|rcere ard roresl W|lr everyore you reel lrer you srou|d rol oe |r sa|es.2)
ll |s v|la||y |rporlarl lo corslarl|y rore your sa|es ard corrur|cal|ors s||||s. Corl|ruous groWlr lra|r|rg |r lorra| proless|ora|
se|||rg lecrr|ques |s a|so very |rporlarl. Ta|e lra|r|rg c|asses, ||sler lo aud|o casselle proless|ora| deve|oprerl lapes, read a|| lre
proless|ora| deve|oprerl raler|a| you car gel your rards or, ard slarl a prograr ol se|l-sludy ard deve|oprerl |r sa|es loday |l
you raver'l a|ready.3) |rsl ||sler lo your cuslorer, urderslard r|s or rer Warls ard reeds, ard or|y lrer lry lo deler- r|re Wrelrer
or rol you car de||ver lre producl or serv|ces lo reel lrose Warls ard reeds. ll you approacr a prospecl W|lr a so|ul|or oelore
urderslard|rg lre proo|er you are |||e|y lo oe Wrorg aooul lre so|ul|or.1) Tre oesl sa|espeop|e as| a |ol ol quesl|ors ard
geru|re|y ||sler lo lre arsWers oelore spea||rg aga|r.5) Your prospecls ard cuslorers are a|| d|llererl so you srou|d lreal lrer
d|llererl|y.) Tre oesl sa|es peop|e ||sler rucr rore lrar lrey la||.Z) |rd oul Wral your prospecls Warl ard lrer g|ve |l lo lrer.

Personal sellIng strategIes
Personal sellIng Is one of the oldest forms of promotIon. t Involves the use of a saIes force to support
a push strategy (encouragIng IntermedIarIes to buy the product) or a puII strategy (where the role of
the sales force may be lImIted to supportIng retaIlers and provIdIng aftersales servIce).
Push
A "push" promotIonal strategy makes use of a company's sales force and trade promotIon actIvItIes to
create consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote It to retaIlers, and the
retaIlers promote It to consumers.
A good example of push sellIng Is mobIle phones, where the major handset manufacturers such as
NokIa promote theIr products vIa retaIlers such as Carphone Warehouse. Personal sellIng and trade
promotIons are often the most effectIve promotIonal tools for companIes such as NokIa for example
offerIng subsIdIes on the handsets to encourage retaIlers to sell hIgher volumes.
A push strategy trIes to sell dIrectly to the consumer, bypassIng other dIstrIbutIon channels (e.g.
sellIng Insurance or holIdays dIrectly). WIth thIs type of strategy, consumer promotIons and advertIsIng
are the most lIkely promotIonal tools.
PuII
A "pull" sellIng strategy Is one that requIres hIgh spendIng on advertIsIng and consumer promotIon to
buIld up consumer demand for a product.
f the strategy Is successful, consumers wIll ask theIr retaIlers for the product, the retaIlers wIll ask the
wholesalers, and the wholesalers wIll ask the producers.
A good example of a pull Is the heavy advertIsIng and promotIon of chIldren's' toys - maInly on
televIsIon. ConsIder the recent 88C promotIonal campaIgn for Its new preschool programme - the
FImbles. AImed at two to fouryearolds, 1J0 epIsodes of FImbles have been made and are featured
everyday on dIgItal chIldren's channel C8eebIes and 88C2.
As part of the promotIonal campaIgn, the 88C has agreed a deal wIth toy maker FIsherPrIce to market
products based on the show, whIch It hopes wIll emulate the popularIty of the TweenIes. Under the
terms of the deal, FIsherPrIce wIll develop, manufacture and dIstrIbute a range of FImbles products
IncludIng soft, plastIc and electronIc learnIng toys for the UK and reland.
n 2001, 88C WorldwIde (the commercIal dIvIsIon of the 88C) achIeved sales of f90m from Its chIldren's
brands and propertIes last year. The demand created from broadcastIng of the FImbles and a major
advertIsIng campaIgn Is lIkely to "pull" demand from chIldren and encourage retaIlers to stock FImbles
toys In the stores for ChrIstmas 2002.
Personal sellIng skIlls
(1) ProspectIng tryIng to fInd new customers
(2) CommunIcatIng wIth exIstIng and potentIal customers about the product range
(3) SeIIIng contact wIth the customer, answerIng questIons and tryIng to close the sale
(4) ServIcIng provIdIng support and servIce to the customer In the perIod up to delIvery and also post
sale
(5) InformatIon gatherIng obtaInIng InformatIon about the market to feedback Into the marketIng
plannIng process
(6) AIIocatIng In tImes of product shortage, the sales force may have the power to decIde how
avaIlable stocks are allocated
What are the advantages of usIng personaI seIIIng as a means of promotIon!
- Personal sellIng Is a facetoface actIvIty; customers therefore obtaIn a relatIvely hIgh degree of
personal attentIon
- The sales message can be customIsed to meet the needs of the customer
- The twoway nature of the sales process allows the sales team to respond dIrectly and promptly to
customer questIons and concerns
- Personal sellIng Is a good way of gettIng across large amounts of technIcal or other complex product
InformatIon
- The facetoface sales meetIng gIves the sales force chance to demonstrate the product
- Frequent meetIngs between sales force and customer provIde an opportunIty to buIld good longterm
relatIonshIps
CIven that there are many advantages to personal sellIng, why do more busInesses not maIntaIn a
dIrect sales force:
haIn dIsadvantages of usIng personaI seIIIng
The maIn dIsadvantage of personal sellIng Is the cost of employIng a sales force. Sales people are
expensIve. n addItIon to the basIc pay package, a busIness needs to provIde IncentIves to achIeve sales
(typIcally thIs Is based on commIssIon and/or bonus arrangements) and the equIpment to make sales
calls (car, travel and subsIstence costs, mobIle phone etc).
n addItIon, a sales person can only call on one customer at a tIme. ThIs Is not a costeffectIve way of
reachIng a large audIence.

eIinition oI Sulesmunship
%he urt oI soccessIolly persouding prospects or costomers to boy prodocts
or services Irom which they cun derive soituble beneIits, thereby increusing
their totul sutisIuction.
- 1.J. Sopiro
%he plunning, direction, und control oI personul selling, incloding recroiting,
selecting, eqoipping, ussigning, rooting, sopervising, puying und motivuting us
these tusks upply to personul sules Iorce.
- The Americon Morketing Associotion
A good successful salesman should posses some certain qualities in order to achieve success.

1. SaIes personaIity
$ales personality is all about the sales man itself. Personality can be produced and improved by
developing the qualities in the positive traits. A person may not have all essential qualities of a sales
person but he has to strive in order to compensate the lacking. The positive qualities to be developed, in
order to increase and improve the salesman's personality such as kindness, courage, confidence,
honesty, loyalty, good health, and cheerfulness.
All the sales person would not have all the positive qualities they might have some negative qualities such
as fear, gloominess, cowardice etc. These qualities should be neglected from the sales person. Habits
once formed are always difficult to change. A person who has the capability to work hard will always work
without any difficulties. $o it is necessary for the salesperson to develop the positive traits which may be
difficult at the beginning, and there by building a positive personality.
Some of the important aspects to be deveIoped by the saIes person to achieve success are:
(a) PhysicaI traits
t includes health, breadth, posture, speech, and appearance. Without good health the sales person
would not have the endurance to sell the product or achieve his targets. He may also be required to move
about different places, which would be difficult for him, and as well as stand during the greater part of the
day. Offensive breadth must be avoided because it may repel the customers. t can be easily detected
and controlled by the salesperson himself. t may be caused to defective teeth or physical disorders or,
from stomach. Good posture considerably enhances the appearance and personality of the sale person's.
Good posture doesn't mean a straight and rigid posture. t means unnecessary tension of muscles should
be avoided. Voice should be very expressive, pleasant and it should attract the customers a lot. The voice
should not be high pitched, hoarse or monotonous. Neat and pleasing appearance is essential for a
salesperson in any walk of life. A good appearance of a sales person will give him confidence in
presenting his arguments in a convincing manner without being distracted by fear of his own appearance.
Appropriate way of dressing also plays a key role in appearance; it should be clean and fit well. The
salesperson should know how to smile; a good natural smile would enhance his appearance.
(b) MentaI Traits
ental traits include accuracy, alertness, imagination, initiative, observation, and self-confidence etc. The
salesman should be alert, ready to find out ways and means of serving the customers. Alertness is a part
in which the sales person should inspire confidence of the customers. Customers normally would not like
hurried salespersons as well a slow one.
t is one of the most important mental attributes, which should be developed by the salesperson.
f a salesman with imagination will have the capability to visualize the articles required by the customer,
such a customer would be relieved and so grateful for suggestions and ideas given by the salesperson.
The salesperson should be able to think and decide for himself instead of having to be told everything, he
should be self-reliant. The important quality in a good salesperson is the ego drive, which makes him
want to make the sale. He must remain enthusiastic of the job. The salesperson should have the
capability to take decisions for himself and assist the wavering customers into making his decisions by
gentle means of questions and suggestions.
The salesperson should have the attribute of keen observation. A person who is a keen observer will
immediately sort out the problems and find a solution as soon as possible. The salesman must be
interested in his work and strive to learn all the duties of the different phases. He must pay a close
attention to, the customers, the product he sells, and the enterprise he works for. $elf-confidence springs
from the knowledge. Therefore he should acquire thorough knowledge of the goods he sells, likely type of
customers. The salesperson should have confidence in himself and products he sells to the customers.
(c) SociaI traits
The ability to make friends and to get along with the people in one of the most valuable assets. $ocial
traits includes, ability to meet the public, the most important quality of a salesperson to meet the public
and speak about the product he wants to sell them. He is also required to overcome considerable
resistance, deal with the strangers in his selling activity and open up new territories. The salesman should
always be polite and generous to his work and to the customers. t deals, not to be late for appointments,
addressing customers in a friendly way. Never losing temper, saying thank you and good-bye while
leaving. All the workers should be cooperative help one another to make pleasant working conditions.
(d) Character traits
There are some important attributes in a person's character. No one can expect to be successful unless
he follows some modal characteristics. t includes honesty and reliability, enthusiasm, industry and
persistence.
. KnowIedge of goods
The salesperson should have the knowledge about the products he is selling. $ales person without
technical knowledge about the product would be a danger to he customer. Naturally he cannot explain
something prospective to the customers, which he himself doesn't understand .f the salesman has the
knowledge about the product he would be able answer all the queries raised by the customers. Even if a
single answer were not given clearly, the customer would doubt about the quality of the product. Besides
by having the knowledge it will become easier to make the customer understand about the product.
The extent of the knowledge required of a salesman depends on whether he is in selling high cost
products or low priced products. The salesperson should acquire information as to the policies behind the
products as these are reflected in the products. Knowledge of the production methods can de used by the
salesman to justify the cost of the product, he should also know about the law affecting the sales and
selling, knowledge about the firm, knowledge about tariffs delivery conditions also. There are different
methods to acquire knowledge about the products:
Personal experience.
Reading books, trade journals.
Consulting with the seniors.
$tudying advertisement.
Reading sales manual.
eetings and conferences.
. Importance buying motives
There are number of motives. The commonest motives are fear, profit, pride, comfort, fashion, health, and
habit. A salesman selling life insurance may utilize the motive of love for the family, loyalty, therefore he
should find out the fears involved in it. t may be death, fear of loss etc. Profit in this the salesman should
make the two points clear to make money, save money. He should motivate the customers to buy the
products he sell about the positive aspects and negative aspects which would provide a clear picture to
the customer, whether this product would suite them or not. And by giving suggestions and ideas to the
customers.
d I r e c t ma r k e t I n g
IntroductIon
0Irect marketIng Is concerned wIth establIshIng an IndIvIdual relatIonshIp between the busIness
offerIng a product or servIce and the fInal customer.
0Irect marketIng has been defIned by the nstItute of 0Irect |arketIng as:
The lanned recordny, analyss and trackny oj customer behavour to develo a relatonal
marketny strateyes
MEANING OF DIRECT MARKETING
Direct arketing is the interactive use of advertising media, to stimulate and (immediate)
behavior modification in such a way that this behavior can be tracked, recorded, anaIyzed,
and stored on a database for future retrievaI and use. Direct marketing is a sub-
discipline and type of marketing. There are two main definitional characteristics which
distinguish it from other types of marketing. The first is that it attempts to send its messages
directly to consumers, without the use of intervening media. The second characteristic is
that it is focused on driving purchases that can be attributed to a specific "call-to-action.
This aspect of direct marketing involves an emphasis on trackable, measurable positive
responses from consumers regardless of medium.
The process of dIrect marketIng covers a wIde range of promotIonal actIvItIes you may be famIlIar wIth.
These Include:
- 0Irectresponse adverts on televIsIon and radIo
- |aIl order catalogues
- Ecommerce (you bought thIs marketIng companIon followIng tutor2u's dIrect marketIng campaIgn!)
- |agazIne Inserts
- 0Irect maIl (sometImes also referred to as "junk maIl")
- TelemarketIng
Irect maII
Df the above dIrect marketIng technIques, the one In most wIdespread use Is dIrect maIl.
0Irect maIl Is wIdely thought of as the most effectIve medIum to achIeve a customer sales response.
Why:
- The advertIser can target a promotIonal message down to an IndIvIdual level, and where possIble
personalIse the message. There are a large number of maIlIng databases avaIlable that allow busInesses
to send dIrect maIlIng to potentIal customers based on household Income, Interests, occupatIon and
other varIables
- 8usInesses can fIrst test the responsIveness of dIrect maIlIng (by sendIng out a test maIlIng to a small,
representatIve sample) before commIttIng to the more sIgnIfIcant cost of a larger campaIgn
- 0Irect maIlIng campaIgns are less vIsIble to competItors - It Is therefore possIble to be more creatIve,
for longer
However, dIrect maIl has several weaknesses:
- A pIece of dIrect maIl Is less "InteractIve" than a televIsIon or radIo advert, although creatIve
packagIng can stIll stImulate customer response
- Lead tImes to produce dIrect maIlIng campaIgns can be quIte long
- There Is IncreasIng customer concern wIth "junk maIl" - the receIpt of unsolIcIted maIl whIch often
suggests that the rIght to IndIvIdual prIvacy has been breached.
The Irect marketIng database
0Irect maIlIng Is based on the "maIlIng lIst" - a crItIcal part In the dIrect marketIng process. The
maIlIng lIst Is a database whIch collects together detaIls of past, current and potentIal customers. A
properly managed maIlIng database enables a busIness to:
- Focus on the best prospectIve customers
- Crosssell related products
- Launch new products to exIstIng customers
How Is the maIlIng database compIled:
The startIng poInt Is the exIstIng InformatIon the busIness keeps on Its customers. All forms of
communIcatIon between a customer and the busIness need to be recorded so that a detaIled, upto
date profIle can be maIntaIned.
t Is also possIble to "buy" maIlIng lIsts from elsewhere. There are numerous maIlIng lIst owners and
brokers who sell lIsts of names. The nternet, dIrectorIes, assocIatIons and other sources are good
sources.
Direct Marketing (DM) is an interactive system of marketing that:
O Uses one or more advertising media to effect a measurable customer response
O Or transaction at any location
O And stores information about that event in a database.
Features of Direct marketing
Two way communication between customer or prospect and company.
$ometimes called interactive marketing.
No middle man.
Copy writer is the "sales person.
easurable, database always used. Direct marketer always accountable.
PORTANCE OF DRECT ARKETNG
any chain stores have dropped slow moving specialty items , creating an opportunity
for direct marketers to promote these items to interested buyers
The growth of the internet, e-mail, mobile phones and fax machine has made product
selection and ordering much simpler. or direct marketers to promote these items to
interested buyers
THE BENEFT$ OF DRECT ARKETNG TO CON$UER$
Direct marketing benefits customers in many ways
O t saves the time and introduce customers to a large selection of merchandise. They
can do comparative shopping by browsing through mails catalogs and online
shopping services .they can order for goods.
O Business costumer also benefited by learning about available products & services
without tying up time in meeting sales people.
THE BENEFT$ OF DRECT ARKETNG TO $ELLER$
O $ellers can buy a mailing list containing the names & addresses of almost groups-
- doctors
- engineers
- chief executives of companies.
they can built a continuous relationship with each customer .
$COPE OF DRECT ARKETNG
.OPERATONAL PER$PECTVE
Research should focus on direct selling as a communication process. Hypotheses involving
adapt ability, negotiation; listening, trust-building, and various rhetorical and persuasive
device could be tested in a direct selling setting.
TACTCAL PER$PECTVE
Under what condition (e.g. products or services sold, market targeted, competitive
conditions faced) are various tactical combinations most effective ? telemarketing ,
catalogs, electron merchandising.
$TRATEGC PER$PECTVE
What about with direct selling in the future ?
s direct selling emerging as the marketing strategy best suited to succeed with micro-
market segmentation ?
OTHER$
O .arketing revenues is probably significantly underestimated.
O There is a need for basis research on direct marketing.
O $ales people and consumers who purchase through direct
O selling.
O The motivations of direct salespeople and customers
O would appear to be a fertile area for research.
O nternational and Comparative Analyses of Direct marketing.
AdvanLages and dlsadvanLages of dlrecL sales
f you are lookIng to start a small busIness from home you mIght be consIderIng
lookIng Into a dIrect sales busIness. WhIle these busInesses can be successful there are
also many challenges to startIng a dIrect sales busIness. 8efore you decIde on startIng
a dIrect sales busIness you wIll need to do plenty of research about the company to
ensure that they are legItImate company and are not goIng to con you out of your
hard earned money. There are many resources you can use to research these
companIes and the best place to start Is the 8etter 8usIness 8ureau. You wIll really
want to check the 8etter 8usIness 8ureaus websIte If the company Is not a well known
company. For example Avon and |ary Kay have been around for years, so you already
know they are a legItImate busIness, but you wIll stIll want to fInd out more on the
company and what It requIres before InvestIng any money.
Another thIng to thInk about when startIng a dIrect sales busIness Is If you are goIng to
be goIng around door to door puttIng on shows to encourage people to buy your
products. Not everybody has the personalIty to talk people Into buyIng a product so
door to door sales mIght not be for you. f you are not a very outgoIng person and do
not want to put on shows for a dIrect sales busIness you can look Into companIes that
do theIr dIrect sales over the Internet. You can stIll earn money, but your competItIon
Is goIng to be a bIt hIgher. 8ut at the same tIme you can expand your customer base
by advertIsIng your websIte on other websItes.
Advantages:
PotentIal to earn an unlImIted amount of money
8e your own boss
nItIal cost Is faIrly cheap
Can receIve startup materIals for a few hundred dollars or less
DpportunItIes to meet new people
Help you buIld confIdence and become more outgoIng
You can lower your commutIng costs
Can use the Internet to Increase your sales
EmaIl potentIal customers
Can create a marketIng lIst easIly by havIng an Internet sIte by offerIng free
InformatIon to people who subscrIbe to your sIte
Customers can ask questIons and get advIce In a relaxed envIronment
Products are delIvered to the customer at home dIrectly to theIr door
There Is usually a moneyback guarantee for the customer
FlexIble workIng schedule
Some dIrect sale busInesses allow you to apply for credIt so there Is no startup fee
for you
There Is no requIred level of educatIon or experIence, anybody can succeed In dIrect
sales If the put forth the effort
You become an expert on certaIn products so you are more knowledgeable about what
you are sellIng to your customers
0Isadvantages:
PromotIng thIs type of busIness can be very tIme consumIng
ThIs type of busIness Is hIghly competItIve
UnpredIctable source of Income, but If you do your research and choose a well known
company that does not have a lot of salespeople In your local area you can Increase
your chances of earnIng a profIt
WIll get quIte a bIt of rejectIon before fIndIng people who wIll buy what you have to
offer
f you are lookIng for one onlIne It Is sometImes hard to fInd a busIness that Is
legItImate
SometImes you have to sell so many products or a set dollar amount to remaIn In
good standIng wIth the busIness
Some of the products are sImIlar to products you can fInd In the store but for a much
hIgher prIce and you wIll have a hard tIme tryIng to convInce people to purchase thIs
product Instead of one at a store.

Direct mail is a type oI advertising medium in which messages are sent to target customers
through the mail. Newcomers to the Iield oI direct mail oIten use the terms "direct mail," "direct
marketing," and "mail order" interchangeably. Perhaps the best way to distinguish these three
similar, yet diIIerent, terms is to remember that direct mail is simply an advertising medium, like
print or broadcast media. Print media messages are delivered through the printed word, usually in
newspapers or magazines, while broadcast media messages are delivered through the airwaves,
on television or radio. In direct mail, advertising and other types oI messages are delivered
through the mail.
y way oI contrast, mail order is a way oI doing business, like retail or personal selling. A mail
order business delivers its products through the mail. It may also use direct mail to send out
advertising messages, but many other businesses use direct mail without being in the mail order
business. Direct marketing is a broader term that reIers to a type oI marketing that utilizes a
variety oI advertising media to appeal directly to the consumer. Direct marketing is distinct Irom
other types oI marketing in that it makes an oIIer and solicits a direct response. Direct mail is
simply one advertising medium that direct marketers employ, although it is among the most
Irequently used.
Direct mail is a particularly attractive option Ior small business owners, as it can communicate
complete inIormation about a product or service and reach almost any conceivable target group,
all Ior a relatively low cost. Direct mail can provide the basis Ior a business, or it can be used to
supplement a company's traditional sales eIIorts. For example, a small business could use direct
mail to inIorm potential customers about its oIIerings, then Iollow up with a phone call or a visit
Irom a salesperson. Owners oI start-up businesses may Iind direct mail an eIIective method oI
creating awareness and interest in a new product, while owners oI existing companies may Iind it
useIul in generating new business outside oI their usual customers or geographic area. Another
advantage oI direct mail is that it is testable, so that entrepreneurs can try out diIIerent sales
messages on various audiences in order to Iind the most proIitable market Ior a new product or
service.
Uses oI Direct Mail
Direct mail is the most heavily used direct marketing medium, and its popularity continues to
grow despite postage increases. While most advertisers use third class mail, a signiIicant number
oI mailings are sent Iirst class, making it diIIicult to arrive at accurate statistics about the volume
oI advertising mail being sent.
The primary application oI direct mail is to reach consumers with oIIers oI traditional goods and
services. Some oI the earliest examples oI direct mail were seed catalogs sent to American
colonists beIore the Revolutionary War. More recently, direct mail has been used to oIIer
consumers a range oI Iinancial services, coupons Ior discounts on packaged goods, and requests
Ior donations to a variety oI nonproIit organizations.
Direct mail is also an eIIective medium in business-to-business marketing. Since business orders
are usually oI larger value than consumer purchases, it oIten takes more than one mailing to
make a sale. Imaginative packages are oIten used to get through to hard-to-reach executives
whose mail is screened by their secretaries. In addition to making sales, business-to-business
direct mail can be used to generate sales leads and reinIorce the personal selling eIIort.
Elements oI Direct Mail
%HE OFFER There are three key elements oI successIul direct mail: making an oIIer, selecting
the target audience among customer lists and databases, and creating the direct mail package.
Making an oIIer is one element that distinguishes direct marketing Irom general advertising and
other types oI marketing. OIIers are designed to motivate the reader to take action: place an
order, request more inIormation, etc. Writing in Successful Direct Marketing Meth4/s, ob
Stone gave the Iollowing example oI how the same oIIer could be presented in three diIIerent
ways: 1) HalI-price! 2) uy oneget one Iree! 3) 50 oII! All three convey the same oIIer, but
statement number two pulled a 40 percent higher response than statements one or three because
consumers perceived it to be the most attractive oIIer.
In direct mail the oIIer can be tailored to Iit the characteristics oI the individual recipients. Direct
mail allows marketers to target individuals with known purchase histories or particular
psychographic or demographic characteristics, all oI which aIIect how an oIIer should be made.
Some basic types oI oIIers include: optional Ieatures; a special introductory price or quantity
discount; Iree trial or bill me later; order by mail, phone, or Iax; premiums or sweepstakes; and
special conditions oI sale and types oI guarantees.
MALNG LS%S AND DA%ABASES Mailing lists and databases oIIer direct mail marketers
the opportunity Ior more selectivity and personalization than any other advertising medium. The
two basic types oI lists are in-house lists and external lists. In-house listssometimes called
response listsare those compiled by the company based on responses to its previous mailings
or to its advertising in other media. These lists, which represent prime repeat business
opportunities, are among a small business's most important assets. They are usually not available
to competitors Ior rental, though they are sometimes exchanged with other companies that oIIer
similar products. In contrast, external lists are typically compiled Ior rental by sources outside
the company. There are thousands oI diIIerent lists available that classiIy consumers according to
a variety oI demographic criteria. External lists may be rented by competitors as well.
Depending on the product being sold through direct mail, lists may consist oI the names oI
consumers or businesses. Some examples oI compiled consumer lists available Ior rental include:
buyers oI certain vehicle models, collectors oI diIIerent items, subscribers to various periodicals,
organic gardeners, or golI enthusiasts. usiness lists are typically categorized according to the
North American Industry ClassiIication System (NAICS), which assigns code numbers to
diIIerent types oI businesses.
In direct mail, lists are oIten rented Irom a list source Ior one-time use. When multiple lists are
rented, a technique known as merge/purge is used to eliminate duplications. The transaction
between a direct mailer hoping to obtain a list and a compiler hoping to rent a list may be
Iacilitated by a list broker or list manager. The list broker's job is to match the list buyer with the
most appropriate list Ior its oIIerings. Although brokers technically represent both the list buyer
and the list owner, they are usually paid by the list owner. Whereas a list broker helps a direct
mailer Iind the right list, a list manager is more like an agent who represents one or more speciIic
lists. List managers handle the rental and billing procedures Ior the list owners, and also work
with list brokers and list compilers as well as with direct mailers to arrange usage Ior the list.
Another place to Iind list data is on the Internet. There are a variety oI online sources Ior
marketing data, many oI which allow small businesses to rent customized lists to Iit their limited
budgets. List costs tend to vary with speciIicity. That is, a list oI subscribers to a particular
magazine may rent Ior $50 per thousand (lists are typically rented on a "per thousand" basis),
while a list oI women subscribers who live in certain zip codes may rent Ior $100 per thousand.
Direct mailers employ a variety oI selectivity techniques to better target their mailings.
Traditional segmentation techniques look at past behavior, including time since most recent
purchase, Irequency oI purchase, and amounts oI purchases. More advanced segmentation
techniques employ Iormulas that help predict Iuture behavior. One such technique is list
enhancement, or the process oI overlaying social, economic, demographic, or psychographic data
obtained Irom other sources on a mailing list. Adding such data to an in-house list allows mailers
to develop a customer proIile based on such Iactors as age, gender, car ownership, dwelling type,
and liIestyle Iactors. Once that process is undertaken, the in-house list becomes an in-house
database, or a collection oI inIormation about customers and prospects that can be used Ior
marketing purposes. Modeling techniques can then be applied to the in-house database to help
predict response rates Irom externally compiled lists whose individuals share some oI the
characteristics oI the company's customer proIile.
%HE DREC% MAL PACKAGE Direct mail packages come in all shapes and sizes, which
makes direct mail one oI the most Ilexible oI the direct marketing media. A standard direct mail
package includes an envelope, a letter, a brochure, and a response device. A variation on the
classic Iormat is the multi-mailera package with a number oI Ilyers each selling a diIIerent
product. Another popular Iormat is the selI-mailer, or any piece that is mailed without an outer
envelope. More complex direct mail packages are three-dimensional; that is, they include an
object such as a giIt or product sample. These three-dimensional mailings can be eIIective in
reaching top executives whose mail is screened by a secretary, and they are practically
guaranteed to be opened by consumers at home.
Catalogs ranging Irom six to more than 100 pages are used to sell a variety oI goods. They are
also used to sell services, such as seminars. A variation oI the catalog is called a magalog, which
combines a certain amount oI editorial content along with sales content to give the catalog the
appearance oI a magazine. A specialized Iield oI direct marketing, catalog marketing is a
discipline unto itselI and accounts Ior a signiIicant part oI all direct mail activity.
Looking more closely at the classic direct mail package, the envelope's job is to motivate the
recipient to open the package. The recipient's decision whether to open, set aside, or discard the
mailing piece takes just one or two seconds. Regardless oI the volume oI mail a person receives,
whether at home or a place oI business, the envelope must distinguish itselI Irom other mail by
its size, appearance, and any copy that might be written on it. Envelopes that take on the
appearance oI an invitation or telegram might grab someone's attention Iaster than a plain
envelope, Ior example. Other choices that are made concerning envelopes include color and
texture, window or closed Iace, and whether to use a preprinted indicia or a postage stamp.
The letter is a sales letter and provides the opportunity to directly address the interests and
concerns oI the recipient. In a sense the letter replaces the salesperson in Iace-to-Iace selling. The
letter typically spells out the beneIits oI the oIIer in detail. The more personal the sales letter, the
more eIIective it generally is. The letter writer must be intimately Iamiliar with not only the
product or service and its beneIits, but also the concerns and needs oI the person to whom the
letter is addressed. While the letter tells the recipient about the beneIits oI the oIIer, the brochure
illustrates them. Illustrated brochures are used to sell services as well as products. rochures
come in a range oI sizes and diIIerent Iolds. While the use oI color may increase response, the
brochure's look should Iit the product or service it is selling.
Finally, the package must include a response device, such as a business reply card or coupon,
that the recipient can send back. Response rates are generally higher when the response device is
separate Irom, rather than part oI, the brochure or letter. Toll-Iree numbers are oIten prominently
displayed to allow the recipient to respond via telephone. However, since some customers will
not use the phone to place an order, a response device should be included in addition to a toll-
Iree number. The key to a successIul response device is to keep it simple and easy to Iill out. A
"liIt letter" is oIten added to the package to "liIt" the response rate. The liIt letter usually carries a
message such as, "Read this only iI you've decided not to accept our oIIer," to grab the recipient's
attention one more time.
Other enclosures that may be added to the direct mail package include giIt or premium slips,
article reprints, a business reply envelope, and a variety oI involvement devices. Involvement
devices such as stamps, stickers, pencils, and rub-oII messages motivate the recipient to become
involved with the response device and, hopeIully, continue to take the action required to make a
purchase.
Testing Direct Mail
Since large expenditures are involved in mailing to lists oI thousands, most direct mailers take
advantage oI the medium's testing capabilities. Every element oI direct mailthe oIIer, the list,
and the pack-agecan easily be tested to avoid committing major resources to unproductive
mailings. In Successful Direct Marketing Meth4/s, ob Stone recommended testing in six major
areas: products and services, media, propositions made, copy platIorms, Iormats, and timing. The
point is that tests should concentrate on meaningIul components.
For products and services being sold by mail, pricing and payment options are oIten tested. A
test may reveal that a higher price actually produces a better response. While the product and the
price are considered the main oIIer, premiums and other incentives that enhance the oIIer are
also subject to testing.
List testing is basic to direct mail. Experts recommend testing diIIerent segments oI a particular
list, preIerably testing the best segment Iirst. The appropriate size oI a test sample is dependent
on the anticipated response. The smaller the anticipated response rate, the larger the necessary
list sample should be. A rule oI thumb is that the list sample should be large enough to generate
thirty to Iorty anticipated responses. While list testing may clearly identiIy winners and losers, it
will also reveal that some lists are marginal, or near break-even. In that case, the list may be
discarded, or another test may be conducted using diIIerent selection criteria on the list to make
it pay out better.
The direct mail package is subject to a variety oI tests Iocusing on Iormat and copy. II the mailer
has established a control package, then one element at a time is tested to see iI it liIts the
response to the package. Another type oI creative testing is sometimes called breakthrough
testing, where an entirely new approach is developed to sell a product or service.
Lists, oIIers, and packages can all be tested in one mailing when done properly. A test matrix
consisting oI individual test cells is constructed. Each test cell contains a unique combination oI
elements being tested and makes up a portion oI the overall mailing. AIter the entire mailing is
dropped, responses Irom each test cell are tracked to determine the perIormance oI the tested
elements.
When Direct Mail Works est
Direct mail oIIers marketers several advantages over other advertising media. It provides a high
degree oI measurability, Ior example, which in turn allows Ior extensive testing. OI course, Ior
direct mail to work well the direct marketer must be able to identiIy the target audience and
create or rent the appropriate mailing lists to reach them. Direct mail also gives marketers control
over the sales message and allows them to present a great deal oI inIormation about a product or
service in the sales letter and brochure. Repeat mailings can be done to take advantage oI the
product's or service's potential Ior repeat sales as well as to sell related goods and services to the
same lists. While direct marketing has grown over the years to employ a variety oI advertising
media as they became available, such as the telephone, broadcast media, and print media, it is
direct mail that remains the most heavily used medium in direct marketing today.
In the late 1990s and early 2000s, some analysts predicted that the growth oI Internet retailing
and advertising could lead to a decline in the useIulness oI direct mail. ut a study reported by
Debora Toth in raphic Arts M4nthly predicted that direct mail expenditures would grow at an
estimated rate oI 6 percent per year Irom 1998 to 2008. In addition, the study predicted that
direct mail's share oI total advertising expenditures would remain stable at 11 percent during this
period. "The Internet is only enhancing direct mail," printing company president Rick Powell
told Toth. "Corporations still need to send a campaign based on direct mail in order to drive
consumers to their Web sites. AIter the consumer receives a beautiIully printed piece, the Iirm
then can Iollow up with an e-mail message." In Iact, the Internet oIIers some beneIits to direct
mail marketers, including easy access to database lists and Web sites that automate the direct-
mail production process.










module 4
Sales LerrlLory sales promoLlon
nLroducLlon Lo sales LerrlLory
1. SegmenL of Lhe markeL for whlch a salesperson ls responslble 1errlLory asslgnmenLs may be excluslve
meanlng no oLher salesperson can sell ln LhaL LerrlLory or nonexcluslve 1errlLorles may be deflned ln
Lerms of geographlc or markeL segmenLs producL or producL llnes slze of cusLomer or by speclflc
cusLomers or prospecLs 1he besL LerrlLorles wlLh Lhe greaLesL revenue poLenLlal are usually asslgned Lo
Lhe besL salespeople 1he lndlvldual LalenLs or characLerlsLlcs of Lhe salespeople can also be used Lo
deLermlne LerrlLory asslgnmenLs L Lakes a dlfferenL sklll seL Lo make sales Lo large corporaLlons Lhan Lo
small reLallers Ceographlc LerrlLory asslgnmenLs should be made so as Lo mlnlmlze Lhe Lravel expenses
lncurred by any one salesperson When creaLlng geographlc LerrlLorles Lhe denslLy of Lhe prospecL base
wlll deLermlne Lhe slze of Lhe LerrlLory
3a|es Terr|lor|es A sa|es lerr|lory cors|sls ol ex|sl|rg ard polerl|a| cuslorers, ass|gred lo a sa|espersor Vosl corpar|es a||ol sa|espeop|e
lo geograpr|c lerr|lor|es, cors|sl|rg ol currerl & prospecl|ve cuslorers

2. Vajor Reasors / 8erel|ls ol 3a|es Terr|lor|es lrcrease rar|el / cuslorer coverage Corlro| se|||rg experses ard l|re Erao|e oeller
eva|ual|or ol sa|eslorce perlorrarce lrprove cuslorer re|al|orsr|ps lrcrease sa|eslorce ellecl|veress lrprove sa|es ard prol|l
perlorrarce

3. Procedure lor 0es|gr|rg 3a|es Terr|lor|es 3e|ecl a corlro| ur|l |rd |ocal|or ard polerl|a| ol preserl ard prospecl|ve cuslorers W|lr|r
corlro| ur|ls 0ec|de oas|c lerr|lor|es oy us|rg 8u||d-up relrod, 0r 8rea|-doWr relrod A corlro| ur|l |s a geograpr|ca| lerr|lor|a| oase
urrecessary & expers|ve lor corsurer producls Procedure |r 8u||d-up Velrod 0ec|de cuslorer ca|| lrequerc|es Ca|cu|ale lola| cuslorer
ca||s |r eacr corlro| ur|l Esl|rale Wor||oad capac|ly ol a sa|espersor Va|e lerlal|ve lerr|lor|es 0eve|op l|ra| lerr|lor|es 0ojecl|ve |s lo
equa||se lre Wor||oad ol sa|espeop|e Procedure |r 8rea|doWr Velrod Esl|rale corpary sa|es polerl|a| lor lola| rar|el orecasl sa|es
polerl|a| lor eacr corlro| ur|l Esl|rale sa|es vo|ure expecled lror eacr sa|espersor Va|e lerlal|ve lerr|lor|es 0eve|op l|ra| lerr|lor|es
0ojecl|ve |s lo equa||se sa|es polerl|a| ol lerr|lor|es

1. Ass|gr|rg 3a|espeop|e lo Terr|lor|es 3a|es Varager srou|d cors|der lWo cr|ler|a: (A)Re|al|ve ao|||ly ol sa|espeop|e 8ased or |ey eva|ual|or
laclors: (1) Producl |roW|edge, (2) rar|el |roW|edge, (3) pasl sa|es perlorrarce, (1) corrur|cal|or, (5) se|||rg s||||s (8) 3a|espersor's
Ellecl|veress |r a Terr|lory 0ec|ded oy corpar|rg soc|a|, cu|lura|, ard prys|ca| craracler|sl|cs ol lre sa|espersor W|lr lrose ol lre lerr|lory
0ojecl|ve |s lo ralcr sa|espersor lo lre lerr|lory Varagererl ol Terr|lor|a| Coverage ll rears: loW sa|espersor srou|d cover lre ass|gred
sa|es lerr|lory ll |rc|udes lrree las|s lor a sa|es rarager: P|arr|rg ell|c|erl roules lor sa|espeop|e 3credu||rg sa|espeop|e's l|re us|rg
l|re-raragererl loo|s Roul|rg Roul|rg |s a lrave| p|ar used oy a sa|espersor lor ra||rg cuslorer ca||s |r a lerr|lory 8erel|ls ol or
Reasors lor roul|rg: Reducl|or |r lrave| l|re ard cosl lrprovererl |r lerr|lory coverage lrporlarce ol roul|rg deperds or lre app||cal|or:
Nalure ol lre producl - lrporlarl lor VC0 Type ol joos ol sa|espeop|e - lrporlarl lor dr|ver-cur- sa|espersor joo, oul creal|ve se|||rg joo
reeds a l|ex|o|e roule p|ar Procedure lor 3ell|rg up a Roul|rg P|ar lderl|ly currerl ard prospecl|ve cuslorers or a lerr|lory rap C|ass|ly
eacr cuslorer |rlo r|gr, red|ur, or |oW sa|es polerl|a| 0ec|de ca|| lrequercy lor eacr c|ass ol cuslorers 8u||d roule p|ar arourd |ocal|ors
ol r|gr polerl|a| cuslorers Corpuler|sed ralreral|ca| rode|s are deve|oped Corror|y used roul|rg pallerrs are:
5. 3credu||rg 3credu||rg |s p|arr|rg a sa|espersor's v|s|l l|re lo cuslorers. ll dea|s W|lr l|re a||ocal|or |ssue loW lo a||ocale sa|espersor's
l|re? 3a|es rarager corrur|cales lo sa|espersor rajor acl|v|l|es ard l|re a||ocal|or lor eacr acl|v|ly 3a|espersor records aclua| l|re
sperl or var|ous acl|v|l|es lor 2 Wee|s 3a|es rarager ard sa|espersor d|scuss ard dec|de roW lo |rcrease l|re sperl or rajor acl|v|l|es
Corpar|es spec|ly ca|| rorrs lor currerl cuslorers, oased or sa|es ard prol|l polerl|a|s, ard a|so lor prospecl|ve cuslorers T|re
Varagererl Too|s To re|p ouls|de sa|espeop|e lo rarage lre|r l|re ell|c|erl|y ard producl|ve|y, lre loo|s ava||ao|e are: l|gr-lecr
equ|prerl |||e |aplop corpulers ard ce||u|ar prores lrs|de sa|espeop|e lo prov|de c|er|ca| supporl, lecrr|ca| supporl, ard lor prospecl|rg,
ard qua||ly|rg, as lrey rera|r W|lr|r lre corpary 0uls|de sa|espeop|e car lrer sperd rore l|re gell|rg rore orders & ou||d|rg
re|al|orsr|ps W|lr rajor cuslorers 0uls|de sa|espeop|e lrave| ouls|de lre orgar|sal|or
.
1. 3a|es Terr|lor|es
2. A sa|es lerr|lory cors|sls ol ex|sl|rg ard polerl|a| cuslorers , ass|gred lo a sa|espersor
3. Vosl corpar|es a||ol sa|espeop|e lo geograpr|c lerr|lor|es , cors|sl|rg ol currerl & prospecl|ve cuslorers
1. Vajor Reasors / 8erel|ls ol 3a|es Terr|lor|es
5. lrcrease rar|el / cuslorer coverage
. Corlro| se|||rg experses ard l|re
Z. Erao|e oeller eva|ual|or ol sa|eslorce perlorrarce
8. lrprove cuslorer re|al|orsr|ps
9. lrcrease sa|eslorce ellecl|veress
10. lrprove sa|es ard prol|l perlorrarce
Z. Procedure lor 0es|gr|rg 3a|es Terr|lor|es
1. 3e|ecl a corlro| ur|l
2. |rd |ocal|or ard polerl|a| ol preserl ard prospecl|ve cuslorers W|lr|r corlro| ur|ls
3. 0ec|de oas|c lerr|lor|es oy us|rg
1. 8u||d-up relrod,
2. 0r
3. 8rea|-doWr relrod
1. A corlro| ur|l |s a geograpr|ca| lerr|lor|a| oase
5. urrecessary & expers|ve lor corsurer producls
8. Procedure |r 8u||d-up Velrod
1. 0ec|de cuslorer ca|| lrequerc|es
2. Ca|cu|ale lola| cuslorer ca||s |r eacr corlro| ur|l
3. Esl|rale Wor||oad capac|ly ol a sa|espersor
1. Va|e lerlal|ve lerr|lor|es
5. 0eve|op l|ra| lerr|lor|es
. 0ojecl|ve |s lo equa||se lre Wor||oad ol sa|espeop|e
9. Procedure |r 8rea|doWr Velrod
1. Esl|rale corpary sa|es polerl|a| lor lola| rar|el
2. orecasl sa|es polerl|a| lor eacr corlro| ur|l
3. Esl|rale sa|es vo|ure expecled lror eacr sa|espersor
1. Va|e lerlal|ve lerr|lor|es
5. 0eve|op l|ra| lerr|lor|es
. 0ojecl|ve |s lo equa||se sa|es polerl|a| ol lerr|lor|es
10.
1. Ass|gr|rg 3a|espeop|e lo Terr|lor|es
2. 3a|es Varager srou|d cors|der lWo cr|ler|a:
3. Re|al|ve ao|||ly ol sa|espeop|e
1. 8ased or |ey eva|ual|or laclors:
5. (1) Producl |roW|edge, (2) rar|el |roW|edge, (3) pasl sa|es perlorrarce, (1) corrur|cal|or, (5) se|||rg s||||s
. (8) 3a|espersor's Ellecl|veress |r a Terr|lory
Z. 0ec|ded oy corpar|rg soc|a|, cu|lura|, ard prys|ca| craracler|sl|cs ol lre sa|espersor W|lr lrose ol lre lerr|lory
8. 0ojecl|ve |s lo ralcr sa|espersor lo lre lerr|lory
11. Varagererl ol Terr|lor|a| Coverage
1. ll rears: loW sa|espersor srou|d cover lre ass|gred sa|es lerr|lory
2. ll |rc|udes lrree las|s lor a sa|es rarager:
1. P|arr|rg ell|c|erl roules lor sa|espeop|e
2. 3credu||rg sa|espeop|e's l|re
3. us|rg l|re-raragererl loo|s
12. Roul|rg
1. Roul|rg |s a lrave| p|ar used oy a sa|espersor lor ra||rg cuslorer ca||s |r a lerr|lory
2. 8erel|ls ol or Reasors lor roul|rg:
1. Reducl|or |r lrave| l|re ard cosl
2. lrprovererl |r lerr|lory coverage
3. lrporlarce ol roul|rg deperds or lre app||cal|or:
1. Nalure ol lre producl - lrporlarl lor VC0
2. Type ol joos ol sa|espeop|e - lrporlarl lor dr|ver-cur-sa|espersor joo, oul creal|ve se|||rg joo reeds
a l|ex|o|e roule p|ar
13. Procedure lor 3ell|rg up a Roul|rg P|ar
1. lderl|ly currerl ard prospecl|ve cuslorers or a lerr|lory rap
2. C|ass|ly eacr cuslorer |rlo r|gr, red|ur, or |oW sa|es polerl|a|
3. 0ec|de ca|| lrequercy lor eacr c|ass ol cuslorers
1. 8u||d roule p|ar arourd |ocal|ors ol r|gr polerl|a| cuslorers
5. Corpuler|sed ralreral|ca| rode|s are deve|oped
. Corror|y used roul|rg pallerrs are:
11. 3credu||rg
1. 3credu||rg |s p|arr|rg a sa|espersor's v|s|l l|re lo cuslorers. ll dea|s W|lr l|re a||ocal|or |ssue
2. loW lo a||ocale sa|espersor's l|re ?
1. 3a|es rarager corrur|cales lo sa|espersor rajor acl|v|l|es ard l|re a||ocal|or lor eacr acl|v|ly
2. 3a|espersor records aclua| l|re sperl or var|ous acl|v|l|es lor 2 Wee|s
3. 3a|es rarager ard sa|espersor d|scuss ard dec|de roW lo |rcrease l|re sperl or rajor acl|v|l|es
3. Corpar|es spec|ly ca|| rorrs lor currerl cuslorers, oased or sa|es ard prol|l polerl|a|s, ard a|so lor prospecl|ve
cuslorers
15. T|re Varagererl Too|s
1. To re|p ouls|de sa|espeop|e lo rarage lre|r l|re ell|c|erl|y ard producl|ve|y, lre loo|s ava||ao|e are:
1. l|gr-lecr equ|prerl |||e |aplop corpulers ard ce||u|ar prores
2. lrs|de sa|espeop|e lo prov|de c|er|ca| supporl, lecrr|ca| supporl, ard lor prospecl|rg, ard qua||ly|rg,
as lrey rera|r W|lr|r lre corpary
3. 0uls|de sa|espeop|e car lrer sperd rore l|re gell|rg rore orders & ou||d|rg re|al|orsr|ps W|lr rajor
cuslorers
1. 0uls|de sa|espeop|e lrave| ouls|de lre orgar|sal|or


$ALE$ PROOTON
Sales promotion:
sales promotion consists oI short-term incentives to encourage purchase or sale oI a product or
service. It includes a wide assortment oI tools such ascoupons, contests , cent-oII deals ,
premiums and others. In a time when customers are exposed daily to a nearly inIinite amount oI
promotional messages, many marketers are discovering that advertising alone is not enough to
move members oI a target market to take action, such as getting them to try a new product.
Instead, marketers have learned that to meet their goals they must use additional promotional
methods in conjunction with advertising.
Other marketers have Iound that certain characteristics oI their target market (e.g., small but
geographically dispersed) or characteristics oI their product (e.g., highly complex) make
advertising a less attractive option. For these marketers better results may be obtained using
other promotional approaches and may lead to directing all their promotional spending to non-
advertising promotions.
Finally, the high cost oI advertising may drive many to seek alternative, lower cost promotional
techniques to meet their promotion goals.
Sales promotion describes promotional methods using special short-term techniques to persuade
members oI a target market to respond or undertake certain activity. As a reward, marketers oIIer
something oI value to those responding generally in the Iorm oI lower cost oI ownership Ior a
purchased product (e.g., lower purchase price, money back) or the inclusion oI additional value-
added material (e.g., something more Ior the same price).
Sales promotions are oIten conIused with advertising. For instance, a television advertisement
mentioning a contest awarding winners with a Iree trip to a Caribbean island may give the
contest the appearance oI advertising. While the delivery oI the marketer`s message through
television media is certainly labeled as advertising, what is contained in the message, namely the
contest, is considered a sales promotion. The Iactors that distinguish between the two
promotional approaches are:
1. whether the promotion involves a short-term value proposition (e.g., the contest is only
oIIered Ior a limited period oI time), and
2. the customer must perIorm some activity in order to be eligible to receive the value
proposition (e.g., customer must enter contest).
The inclusion oI a timing constraint and an activity requirement are hallmarks oI sales
promotion.
Sales promotions are used by a wide range oI organizations in both the consumer and business
markets, though the Irequency and spending levels are much greater Ior consumer products
marketers. One estimate by the Promotion Marketing Association suggests that in the US alone
spending on sales promotion exceeds that oI advertising.

Sales promotion is a tool used to achieve most oI the Iive major promotional objectives
discussed in the Promotion Decisions tutorial:
O 8ulldlng roducL Awareness Several sales promoLlon Lechnlques are hlghly effecLlve ln
exposlng cusLomers Lo producLs for Lhe flrsL Llme and can serve as key promoLlonal componenLs
ln Lhe early sLages of new producL lnLroducLlon AddlLlonally as parL of Lhe efforL Lo bulld
producL awareness several sales promoLlon Lechnlques possess Lhe added advanLage of
capLurlng cusLomer lnformaLlon aL Lhe Llme of exposure Lo Lhe promoLlon n Lhls way sales
promoLlon can acL as an effecLlve cusLomer lnformaLlon gaLherlng Lool (le sales lead
generaLlon) whlch can Lhen be used as parL of followup markeLlng efforLs
O CreaLlng nLeresL MarkeLers flnd LhaL sales promoLlons are very effecLlve ln creaLlng lnLeresL ln
a producL n facL creaLlng lnLeresL ls ofLen consldered Lhe mosL lmporLanL use of sales
promoLlon n Lhe reLall lndusLry an appeallng sales promoLlons can slgnlflcanLly lncrease
cusLomer Lrafflc Lo reLall ouLleLs nLerneL markeLers can use slmllar approaches Lo bolsLer Lhe
number of webslLe vlslLors AnoLher lmporLanL way Lo creaLe lnLeresL ls Lo move cusLomers Lo
experlence a producL Several sales promoLlon Lechnlques offer Lhe opporLunlLy for cusLomers
Lo Lry producLs for free or aL low cosL
O rovldlng nformaLlon Cenerally sales promoLlon Lechnlques are deslgned Lo move cusLomers
Lo some acLlon and are rarely slmply lnformaLlonal ln naLure Powever some sales promoLlons
do offer cusLomers access Lo producL lnformaLlon or lnsLance a promoLlon may allow
cusLomers Lo Lry a feebased onllne servlce for free for several days 1hls free access may
lnclude recelvlng producL lnformaLlon vla emall
O SLlmulaLlng uemand -exL Lo bulldlng lnlLlal producL awareness Lhe mosL lmporLanL use of
sales promoLlon ls Lo bulld demand by convlnclng cusLomers Lo make a purchase Speclal
promoLlons especlally Lhose LhaL lower Lhe cosL of ownershlp Lo Lhe cusLomer (eg prlce
reducLlon) can be employed Lo sLlmulaLe sales
O 8elnforclng Lhe 8rand nce cusLomers have made a purchase sales promoLlon can be used Lo
boLh encourage addlLlonal purchaslng and also as a reward for purchase loyalLy (see loyalLy
programs below) Many companles lncludlng alrllnes and reLall sLores reward good or
preferred" cusLomers wlLh speclal promoLlons such as emall speclal deals" and surprlse prlce
reducLlons aL Lhe cash reglsLer
Principles to sales promotion
promoLlon
lncludes all Lhe ma[or elemenLs used Lo communlcaLe Lo cusLomers
sales promoLlon
a componenL elemenL of promoLlon
ls an lncenLlve Lo move Lhe consumer Lo acLlon
consumers already have a reason Lo buy
reward
82C
consumers sales promoLlon ls dlrecLed Lo Lhe ulLlmaLe consumer or flnal user of Lhe producL
828
Lrade sales promoLlon ls dlrecLed Lo dlsLrlbuLlon lnLermedlarles Lo supporL Lhe efforLs of Lhelr resellers
also referred Lo as reseller supporL
Lhe lnLenL ls Lo moLlvaLe resellers Lo make an exLra efforL Lo promoLe Lhe producL Lo Lhelr cusLomers
b[ecLlves for consumer sales promoLlon
Lry Lhe producL
repurchase Lhe producL
buy more of Lhe producL
avold buylng compeLlLors brands
relnforce oLher markeLlng efforLs
sampllng
small quanLlLy of producL ls glven Lo consumer aL no charge Lo encourage Lrlal use
cross ruff
a sample LhaLs wlLh anoLher producL (buy shampoo geL a small boLLle of condlLloner wlLh lL)
coupons
prlnLed forms LhaL enLlLle Lhe bearer Lo cerLaln beneflLs such as a cash refund or a glfL when redeemed
lnsLanL redempLlon
buy back
scan or dellver
premlums
glfLs or merchandlse offered free or aL a reduced prlce as an lnducemenL Lo buy someLhlng else
Lher LacLlcs
conLesLs and sweepsLakes
refunds (sofL goods) and rebaLes (hard goods)
bonus packs
reward programs
deferred bllllng
prlceoff
reduced prlce of lLem
1rade sales promoLlon uSP
dlrecLed Lo dlsLrlbuLlon lnLermedlarles
manufacLurers
wholesalers
dlsLrlbuLors
reLallers
supporLlng new producLs
promoLed wlLh Lrade lncenLlves
Lo obLaln llmlLed selllng or shelf space
supporLlng esLabllshed brands
maLure producLs may be
loslng markeL share
llkely Lo have fewer adverLlslng dollars
encouraglng reLallers Lo promoLe brands
S polnL of sales
buylng allowance
prlce reducLlon on merchandlse purchased durlng a llmlLed Llme perlod encourages reLallers Lo buy
more
sloLLlng allowance
fees pald Lo reLallers Lo provlde a poslLlon or sloL Lo accommodaLe a new producL grocery sLore
lncenLlve programs
deslgned Lo lncrease Lhe sales producLlvlLy of sales assoclaLes aL Lhe reLaller level
classes Lralnlng workshops
sales conLesL
splff money
polnL of purchase maLerlals
cooperaLlve adverLlslng
cooperaLlve adverLlslng
manufacLures and reLallers work LogeLher Lo develop adverLlslng and share Lhe cosL
sales promotion programme

) Buy-One-Get-One-Free (BOGOF) - which is an example oI a selI-liquidating promotion. For
example iI a loaI oI bread is priced at $1, and cost 10 cents to manuIacture, iI you sell two Ior $1,
you are still in proIit - especially iI there is a corresponding increase in sales. This is known as a
PREMIUM sales promotion tactic.
(b) Customer Relationship Management (CRM) incentives such as bonus points or money oII
coupons. There are many examples oI CRM, Irom banks to supermarkets.
(c) New media - Websites and mobile phones that support a sales promotion. For example, in the
United ingdom, Nestle printed individual codes on IT-AT packaging, whereby a consumer
would enter the code into a dynamic website to see iI they had won a prize. Consumers could
also text codes via their mobile phones to the same eIIect.
(d) Merchandising additions such as dump bins, point-oI-sale materials and product
demonstrations.
Free gifts e.g. Subway gave away a card with six spaces Ior stickers with each sandwich
purchase. Once the card was Iull the consumer was given a Iree sandwich.
(I) Discounted prices e.g. udget airline such as EasyJet and Ryanair, e-mail their customers
with the latest low-price deals once new Ilights are released, or additional destinations are
announced.
(g) 1oint promotions between brands owned by a company, or with another company's brands.
For example Iast Iood restaurants oIten run sales promotions where toys, relating to a speciIic
movie release, are given away with promoted meals.
(h) Free samples (aka. sampling) e.g. tasting oI Iood and drink at sampling points in
supermarkets. For example Red ull (a caIIeinated Iizzy drink) was given away to potential
consumers at supermarkets, in high streets and at petrol stations (by a promotions team).
(i) Vouchers and coupons, oIten seen in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.
(k) Cause-related and fair-trade products that raise money Ior charities, and the less well oII
Iarmers and producers, are becoming more popular.
(l) Finance deals - Ior example, 0 Iinance over 3 years on selected vehicles.
Many oI the examples above are Iocused upon consumers. Don't Iorget that promotions can be
aimed at wholesales and distributors as well. These are known as %rade Sales Promotions.
Examples here might include joint promotions between a manuIacturer and a distributor, sales
promotion leaIlets and other materials (such as T-shirts), and incentives Ior distributor sales
people and their retail clients.
Steps to Create a Successful Promotion
Step 1. DeveIop A PromotionaI FiIing System.
Create a promotional folder that includes all of your past promotional direct mail pieces. Create another
for advertising that has a successful track record. Create a third folder for innovative marketing strategies
that catch your attention from other industries. When you are ready to create your own promotional
calendar, you will have a filing system FULL of proven and innovative ideas to help you brainstorm.
Step . EvaIuate And Brainstorm
Now that you have a collection of ideas to brainstorm from, you can go back and evaluate each one. As
you evaluate past promotional ideas, pay attention to why they drove traffic to your business. Also
evaluate what did not work so that you don't make those same mistakes a second time. $ometimes your
best promotion ideas fail simply because they were held on the wrong day or the wrong month. With a
little adjusting it could be a winner the second time around.
Step . DeveIop Your Strategic PIan
To be successful in retail you must plan promotional events far in advance. Plan to implement a
NU of six promotions per year. That is minimum! When had my retail stores was implementing
some type of promotional event every month. This is easy when you have a strategic plan in place. You
must keep reminding customers to come back to your store. The number one reason why customers
don't return to you time and time again is because you allow them to FORGET about you. Keep
reminding them and get them excited about shopping at your store more often.
Step 4. InvoIve Your Team
After you have outlined your promotional ideas for the year, hold a staff meeting to discuss them. $hare
your ideas on a large calendar board and let your team know that you are PLANNNG for success. Ask
your staff to share their creative ideas too. $et sales goals for each promotion and offer a bonus reward
to each salesperson that reaches their goals. Once your team buys into your promotional plans, they will
BUY into $ELLNG more customers on attending too. Plan to have enough staff on hand to make the
event run effectively.
Step 5. PIan Out The DetaiIs
Evaluate your best promotional days and months. $elect days and months that you drive the most traffic
to your store. Plan out all the details of the event. Leave nothing to chance. The more you plan out the
details and systemize your events, the easier and more successful they will be.
Step 6. Reserve And Design Advertising
Plan your advertising and direct mail well in advance. Build excitement for the event by featuring the
benefits of attending. Create a call to ACTON. Tell your customers WHAT, WHERE, WHEN and WHY.
Offer short deadlines, powerful offers and guarantees with teeth.
Step 7. Contact The Media
f you are putting on a charity event, contact the media well in advance. $end a press release about the
event and ask the media to attend. Tell them how your event will benefit the community or share details
about a cause. Take your own photos at the event as well and send them along with a follow up press
release.
Example: When collecting used clothing donations from my customers, offered them a discount for each
item of clothing they brought into the store. The event was so successful that we had a truckload of
clothes to donate to the battered women's shelter. We took photos of the staff loading the truck. The
press release and photos rewarded us with tons of FREE media exposure for months after the event.
Step 8. Create Attention Getting Direct MaiI
$pend 50 percent of your time writing a GREAT headline that is BENEFT RCH. You must HOOK their
attention quickly before your direct mail gets trashed. ake your offer and event so exciting that it triggers
a FEAR OF LO$$ in the customer's mind. Allow them to think about what they will be missing if they don't
attend.
Step 9. DeveIop Promotions Based Around A Theme
f you want to stand out from the competition, you must be DFFERENT. The more you conform to be like
everyone else, the less successful you will be. Create fun events around unique holidays. Promote when
your competition is not promoting. Your event does not have to be a $ALE. There are lots of ways to
promote without giving the store away. ake your events so much fun that your customers promote you
back with word of mouth advertising.
Example: One month created an oriental themed event. During the three-day event, served Chinese
food for lunch and decorated the store according to our theme. A huge bowl of fortune cookies was
placed on the counter. Each contained a free gift or discount fortune. The direct mail invitation was sent
out in an oriental cloth purse to our entire database. t was fun to see our customers carrying around that
little cloth purse months after the event.
Step 10. PIan An OTB Increase For SpeciaI Events
Why would you want to create more promotional events? To keep your store in your customer's mind and
to NCREA$E $ALE AND PROFT$! Therefore you must increase your open-to-buy and invest in
additional inventory. Keep giving your customers more reasons to come back to YOU time and time
again.
PromoLIon MIx
Marketers have at their disposal Iour major methods oI promotion. Taken together these
comprise the promotion mix. In this section a basic deIinition oI each method is oIIered while in
the next section a comparison oI each method based on the characteristics oI promotion is
presented.
O Advertising Involves non-personal, mostly paid promotions oIten using mass media
outlets to deliver the marketer`s message. While historically advertising has involved
one-way communication with little Ieedback opportunity Ior the customer experiencing
the advertisement, the advent oI computer technology and, in particular, the Internet has
increased the options that allow customers to provide quick Ieedback.
O Sales Promotion Involves the use oI special short-term techniques, oIten in the Iorm oI
incentives, to encourage customers to respond or undertake some activity. For instance,
the use oI retail coupons with expiration dates requires customers to act while the
incentive is still valid.
O Public Relations Also reIerred to as publicity, this type oI promotion uses third-party
sources, and particularly the news media, to oIIer a Iavorable mention oI the marketer`s
company or product without direct payment to the publisher oI the inIormation.
O Personal Selling As the name implies, this Iorm oI promotion involves personal contact
between company representatives and those who have a role in purchase decisions (e.g.,
make the decision, such as consumers, or have an inIluence on a decision, such as
members oI a company buying center). OIten this occurs Iace-to-Iace or via telephone,
though newer technologies allow this to occur online via video conIerencing or text chat.
O Promotion Summary %able
O The table below compares each oI the promotion mix options on the eight key
promotional characteristics. The summary should be viewed only as a general guide since
promotion techniques are continually evolving and how each technique is compared on a
characteristic is subject to change.
Characteristics Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Directed Coverage mass & targeted mass & targeted mass targeted
Message Flow one & two-way one & two-way one-way two-way
Payment Model
paid
limited non-paid
paid non-paid paid
Interaction Type non-personal
personal &
non-personal
non-personal personal
Demand Stimulation lagging quick lagging quick
Message Control good good poor very good
Message Credibility low-medium low-medium high medium-high
Cost oI Promotion
CPI - Low
CPTI - Varies
CPA - Varies
CPI - Medium
CPTI - Varies
CPA - Varies
CPI - None
CPTI - None
CPA - None
CPI - High
CPTI - High
CPA - High
Promotion Choice: Company ssues
With Iour promotional methods to choose Irom how does the marketer determine which ones to
use? The selection can be complicated by company and marketing decision issues. Company
issues that aIIect the choice oI promotional method include:
O Promotional Objective As we discussed, there are several diIIerent objectives a
marketer may pursue with their promotional strategy. Each type oI promotion oIIers
diIIerent advantages in terms oI helping the marketer reach their objectives. For instance,
iI the objective oI a soItware manuIacturer is to get customers to try a product, the use oI
sales promotion, such as oIIering the soItware in a Iree downloadable Iorm, may yield
better results than promoting through Internet advertising.
O Availability oI Resources The amount oI money and other resources that can be
directed to promotion aIIects the marketer`s choice oI promotional methods. Marketers
with large promotional budgets may be able to spread spending among all promotion
options while marketers with limited Iunds must be more selective on the promotion
techniques they use.
O Company Philosophy Some companies Iollow a philosophy that dictates where most
promotional spending occurs. For instance, some companies Iollow the approach that all
promotion should be done through salespeople while other companies preIer to Iocus
attention on product development and hope word-oI-mouth communication by satisIied
customers helps to create interest in their product.
Promotion Choice: Marketing ssues
Marketing issues that aIIect the choice oI promotional method include:
O 1argeL MarkeL As one mlghL expecL cusLomer characLerlsLlcs dlcLaLe how promoLlon ls
deLermlned CharacLerlsLlcs such as slze locaLlon and Lype of LargeL markeLs affecL how Lhe
markeLer communlcaLes wlLh cusLomers or lnsLance for a small markeLer servlng buslness
markeLs wlLh cusLomers wldely dlspersed lL may be very expenslve Lo uLlllze a sales force versus
uslng adverLlslng
O roducL ulfferenL producLs requlre dlfferenL promoLlonal approaches or Lhe consumer
markeL producLs falllng lnLo Lhe convenlence and shopplng goods caLegorles are llkely Lo use
mass markeL promoLlonal approaches whlle hlgherend speclalLy goods are llkely Lo use
personallzed selllng 1hus producLs LhaL are complex and Lake cusLomers exLended Llme Lo
make a purchase declslon may requlre personal selllng raLher Lhan adverLlslng 1hls ls ofLen Lhe
case wlLh producLs LargeLed Lo Lhe buslness markeL AddlLlonally as we brlefly dlscussed ln Lhe
Managlng roducLs LuLorlal and wlll laLer see ln Lhe 1he LC and MarkeLlng lannlng LuLorlal
producLs pass Lhrough dlfferenL sLages ln Lhe roducL Llfe Cycle As a producL moves Lhrough
Lhese sLages Lhe producL lLself may evolve and also promoLlonal ob[ecLlves wlll change 1hls
leads Lo dlfferenL promoLlonal mlx declslons from one sLage Lo Lhe nexL
O ulsLrlbuLlon MarkeLlng organlzaLlons selllng Lhrough channel parLners can reach Lhe flnal
cusLomer elLher dlrecLly uslng a pull promoLlon sLraLegy or lndlrecLly uslng a push promoLlonal
sLraLegy 1he pull sLraLegy ls so named slnce lL creaLes demand for a producL by promoLlng
dlrecLly Lo Lhe flnal cusLomer ln Lhe hopes LhaL Lhelr lnLeresL ln Lhe producL wlll help pull more
producL Lhrough Lhe dlsLrlbuLlon channel 1hls approach can be used when channel parLners are
heslLanL abouL sLocklng a producL unless Lhey are assured of sufflclenL cusLomer lnLeresL 1he
push sLraLegy uses promoLlon Lo encourage channel parLners Lo sLock and promoLe Lhe producL
Lo Lhelr cusLomers 1he ldea ls LhaL by offerlng lncenLlves Lo channel members Lhe markeLer ls
encouraglng Lhelr parLners (eg wholesalers reLallers) Lo push Lhe producL down Lhe channel
and lnLo cusLomer's hands MosL large consumer producLs companles wlll use boLh approaches
whlle smaller flrm may flnd one approach works beLLer
O rlce 1he hlgher Lhe prlce of a producL Lhe more llkely a markeLer wlll need Lo engage ln
personallzed promoLlon compared Lo lower prlced producLs LhaL can be markeLed uslng mass
promoLlon



MODUE -
MunugemenL oI suIes Iorce
InLroducLIon
A company's sales Iorce consists oI its staII oI salespeople. The role oI the sales Iorce depends to
a large extent on whether a company is selling directly to consumers or to other businesses. In
consumer sales, the sales Iorce is typically concerned simply with taking and closing orders.
These salespeople are not responsible Ior creating demand Ior the product, since demand Ior the
product has already been created by advertising and promotion. They may provide the consumer
with some product inIormation, but individuals involved in consumer sales are oIten not
concerned with maintaining long-term customer relationships. Examples oI consumer sales
Iorces include automobile salespersons and the sales staIIs Iound in a variety oI retail stores.
The sales Iorce takes on a completely diIIerent role in business-to-business sales. Industrial sales
Iorces, Ior example, may be required to perIorm a variety oI Iunctions. These may include
prospecting Ior new customers and qualiIying leads, explaining who the company is and what its
products can do, closing orders, negotiating prices, servicing accounts, gathering competitive and
market inIormation, and allocating products during times oI shortages.
Within the business-to-business market, a distinction can be made between selling to retailers,
industrial sales, and other types oI business-to-business sales and marketing. The concerns and
activities oI the sales Iorce tend to vary in each type oI business market. What they have in
common, however, is the desire oI the sales Iorce to establish a long-term relationship with each
oI its customers and to provide service in a variety oI ways.
In selling to retailers, Ior example, the sales Iorce is not concerned with creating demand. Since
consumer demand is more a Iunction oI advertising and promotion, the sales Iorce is more
concerned with obtaining shelI space in the retailer's store. The sales Iorce may also attempt to
obtain more promotion support Irom the retailer. The sales Iorce relies on sophisticated
marketing data to make a convincing presentation to the retailer in order to achieve its sales and
marketing objectives.
The largest sales Iorces are involved in industrial selling. An average industrial Iield sales Iorce
ranges in size Irom 20 to 60 people and is responsible Ior selling throughout the United States.
The sales Iorce may be organized around traditional geographic territories or around speciIic
customers, markets, and products. An eIIective sales Iorce consists oI individuals who can relate
well to decision makers and help them solve their problems. A sales manager or supervisor
typically provides the sales Iorce with guidance and discipline. Within the company the sales
Iorce may receive support in the Iorm oI specialized training, technical backup, inside sales staII,
and product literature. Direct mail and other types oI marketing eIIorts can be employed to
provide the sales Iorce with qualiIied leads.
In recent years, costs associated with making single business-to-business industrial sales calls
have risen dramatically. As a consequence, many businesses have redoubled their eIIorts to make
sure that they get the most possible eIIiciency out oI their sales Iorce (by expanding their
territories, increasing their duties, etc.).
Sales managers and supervisors can measure the eIIiciency oI their sales Iorce using several
criteria. These include the average number oI sales calls per salesperson per day, the average
sales-call time per contact, the average revenue and cost per sales call, the entertainment cost per
sales call, and the percentage oI orders per 100 sales calls. The sales Iorce can also be evaluated
in terms oI how many new customers were acquired and how many customers were lost during a
speciIic period. The expense oI a sales-Iorce can be measured by monitoring the sales-Iorce to-
sales ratio, or sales Iorce cost as a percentage oI total sales.
Using such criteria to evaluate the eIIectiveness oI the sales Iorce allows companies to make
adjustments to improve its eIIiciency. II the sales Iorce is calling on customers too oIten, Ior
example, it may be possible to reduce the size oI the sales Iorce. II the sales Iorce is servicing
customers as well as selling to them, it may be possible to shiIt the service Iunction to lower-paid
personnel.
In industrial and other business-to-business sales, the sales Iorce represents a key link between
the manuIacturer and the buyer. The sales Iorce is oIten involved in selling technical applications
and must work with several diIIerent contacts within a customer's organization. Industrial
salespeople tend, on average, to be better educated than their consumer counterparts, and to be
better paid. However, their cost as a percentage oI sales is lower than in consumer sales, because
industrial and business-to-business sales generally involve higher-ticket items or a larger volume
oI goods and services.
The sales Iorce may be compensated in one oI three ways: straight salary, straight commission,
or a combination oI salary plus commission. The majority oI today's businesses utilize a
combination oI salary plus commission to compensate their sales Iorces, and Iewer companies
based their sales Iorce compensation on straight commission. It appears that, as a percentage oI
all sales Iorces, the use oI straight salaries remains constant. Whatever type oI compensation
system is used Ior the sales Iorce, the important consideration is that the compensation
adequately motivates the sales Iorce to perIorm its best.


ersons responslble for selllng producLs or servlces vla dlrecL conLacL wlLh Lhe cusLomer Sales force
members may be pald a flxed salary regardless of sales volume or may recelve a small base salary plus
commlsslons calculaLed as a percenLage of revenue sold -oncommlssloned sales forces are
approprlaLe when selllng requlres Lhe lnvolvemenL of a Leam of lndlvlduals or when Lhere ls an
exLremely long sales cycle or example some complex lndusLrlal servlces may requlre several years of
efforL before Lhe prospecL ls sold Salespeople may be fullLlme employees of Lhe seller or may be
lndependenL nonexcluslve agenLs Member of Lhe sales force are asslgned a sales LerrlLory LhaL may be
segmenLed by excluslve or nonexcluslve geographlc or markeL segmenLs producL or producL llnes or by
speclflc cusLomers or prosper
Sales |anager FesponsIbIlItIes
AccountabIIIty - EasIer saId than done I know. However, whIIe It's ImperatIve to keep
you job and move up the corporate Iadder you have to hIt the numbers. An easIer way
to hIt the numbers than just poundIng on your team Is to tap Into personaI motIvatIon.
HeIp each team member defIne excItIng personaI goaIs that create commItment and
desIre. Then assIst each IndIvIduaI In seeIng how the company can be a personaI
vehIcIe to achIeve theIr personaI goaIs. uIId a covenant to hoId each person to the
fundamentaI actIvItIes that produce resuIts brIngIng them cIoser to theIr own personaI
goaIs. Dnce that Is accompIIshed we have a true partnershIp. Let's face It, It may not
be everyone goaI to work for the company forever, so Iet's fInd out what they want,
heIp them get It and as Iong as you heIp them they heIp you.

2. CoachIng - JImmy Johnson the great coach prevIousIy of the NFL saId, 'A coaches
job Is to heIp others perform at a hIgher IeveI than they can by themseIves.' A coach
Is requIred to get peopIe out of theIr comfort zone. Coaches fInd a way to keep the
team InspIred. SometImes It's tough Iove, sometImes It's encouragement, sometImes
It keepIng the focus cIear! A coach Is IIke the Ieader of an orchestra. He knows how
every Instrument Is pIayed and what each part Is supposed to be. Then he brIngs It aII
together for an awesome and exquIsIte performance.

3. hotIvatIon - In a perfect worId saIes peopIe are motIvated. ut thIs aInt no perfect
worId and saIespeopIe deaI wIth more rejectIon and negatIvIty than any other
professIon. So It's crItIcaI that the SaIes hanager be sensItIve to each team member,
theIr InteractIons wIth each other, theIr personaI IIfe and what Is reaIIy goIng on
under the surface. SaIes peopIe are motIvated by many dIfferent thIngs just as any
other group. eIIeve It or not most saIes peopIe are not as money motIvated as
everyone on the outsIde may thInk. I have found that competItIon and recognItIon are
bIgger motIvators. And then of course FPEE tIme off Is aIways good too.

4. Pre and Post rIefIng- Dne of the most Important thIngs a saIes manager can do Is
to heIp the saIes person Iearn the rIght Iesson form each seIIIng sItuatIon. Dften we
draw concIusIons from events that seem IogIcaI. However we aII know that many of
those concIusIons are Incorrect and then saIespeopIe make the same mIstake over and
over agaIn. Another probIem Is changIng to quIckIy. host saIespeopIe are creatIve and
contInue to change somethIng due to an event. Instead Iet's Iook at patterns and
defIne the root cause of the outcome. Instead of askIng typIcaI questIons that get you
typIcaI answers defIne the fundamentaI Issue and focus on that. Keep a Iog of what
events take pIace wIth each saIes person and Iook at a 30, 60, 0 day pattern. ThIs
wIII work on the rIght end of the probIem and It Is usuaIIy between the ears.

Just IIke sIghtIng In a rIfIe. host shooters when sIghtIng In wIII make adjustments after
each shot. However, the more experIence shooter wIII fIre three shots, trIanguIate
the center and adjust from there.

When pre and post brIefIng ask questIons that wIII defIne the cause In two categorIes:
A) ConceptuaI or ) TechnIcaI. A conceptuaI Issue means they saIesperson knew what
to do, but dIdn't because of some dIscomfort. A technIcaI Issue Is based on the fact
that the saIesperson just dIdn't know what they were supposed to. Now we have a
Iesson to appIy to the next seIIIng sItuatIon.

5. uIIdIng a Stronger Team - ThIs means to aIways be IookIng for stronger saIespeopIe
to add to the staff. The probIem here Is IIke most departments. The manger gets
emotIonaIIy InvoIved and It becomes dIffIcuIt to graduate non productIve or medIocre
saIes reps. SaIes recruItIng Is a must. Then we have to be abIe to determIne the
dIfference between those who not onIy can seII, but wIII. The onIy way to truIy be
effectIve wIth the fIrst 4 responsIbIIItIes Is to never be heId hostage. The onIy way to
never be heId hostage Is to aIways have a bench or a goto guy. Then thIs brIngs up the
on boardIng Issue, ramp up and traInIng. Too much to put Into thIs bIog for sure.
However I wIII promIse to dIscuss It next.

Planning tbe Sales Strategy Plan
To p|ar ar ellecl|ve 3a|es 3lralegy, We rusl l|rsl delerr|re lre goa| ol our p|ar. lr rosl cases lre goa| W||| oe sore var|al|or ol opl|r|z|rg lre
resu|ls oola|red oy lre sa|es rarager or lre|r lear. lr esserce, our p|ar srou|d d|clale Wr|cr cuslorers We sperd Wral arourl ol l|re W|lr
lo gel lre grealesl overa|| relurr lror our l|re |rveslrerl.
w|lr lre sa|es goa| del|red, We rusl rexl delerr|re lre dural|or or l|re||re lor lre p|ar. 0eperd|rg or your |rduslry ard rar|el, lre sa|es
slralegy p|ar dural|ors W||| vary. wral |s lre r|grl |rlerva| lor your |rduslry? Loo||rg al lre seasora||ly ol your ous|ress, lre lrequercy ol
crarge |r corpary goa|s, ard lre l|re||re you use lo reasure success lo goa|s or quolas are a|| lr|rgs lo |eep |r r|rd Wrer delerr|r|rg lre
dural|or ol lre p|ar. Arolrer lr|rg lo rereroer |s you ray delerr|re lral a s|x rorlr p|ar |s lre r|grl |erglr lre s|lual|or, oul lr|s does rol
rear lral you W||| or|y locus or lr|s rore |org lerr sa|es slralegy. A sa|es slralegy ol lr|s lype W||| a|so reed lo |rcorporale rorlr|y p|arr|rg
lral ro||s up lo lre s|x rorlr p|ar ard a da||y p|ar lral ro||s |rlo lre rorlr|y p|ar lo ersure lral We slay locused or lre overa|| goa|. 8rea||rg
lre sa|es slralegy |rlo lre sra||esl sleps poss|o|e W||| ra|e |l rucr eas|er lo lo||oW ard W||| a||oW lor srorl lerr reasurererl ol success.
Pre-Sales Activities Planning
Pre-8a|es Act|v|t|es, as We d|scussed |r lre arl|c|e at 8a|es Hanagers 84:|d 64ac, are |rlegra| |r lre se|||rg process. wr||e lre
corror oe||el |r 3a|es Varagererl |s lral you reed lo sperd rore l|re |rlerlac|rg W|lr your cuslorers as lre rore l|re you sperd W|lr
your cuslorer, or polerl|a| cuslorer, lre oeller your ao|||ly lo ou||d a re|at|4ns|p ard lo u|l|rale|y reel your goa|s. l suppose oe|rg |r lre|r
lace |s ore Way lo gel lre resu|ls, oul rosl sa|es reps rave Way loo rary cuslorers lo ca|| or. Tr|s |s Wry We rusl delerr|re up lrorl Wr|cr
cuslorers We sperd our l|re W|lr ard roW rucr l|re We sperd W|lr lrer. Rereroer your l|re ard lre l|re ol your lear |s a ||r|led
resourcel
As sa|es raragers, We car re|p our sa|es reps locus lre|r ellorls oy segrerl|rg our cuslorers. wro |s perlorr|rg? wro srou|d oe
perlorr|rg oul |s rol? wro |s rol do|rg ous|ress W|lr you loday? Pull|rg your cuslorers |rlo lrese 3 ouc|els W||| re|p 3a|es Varagers ard
3a|es Reps lo delerr|re rol or|y roW rucr l|re lo sperd W|lr lrer, oul a|so Wral lo locus or |r lre l|re you do sperd W|lr lrer. Vucr |||e
coacr|rg peop|e, se|||rg lo cuslorers W||| or|y gel you a cerla|r relurr or |eve| ol perlorrarce oased or lre segrerl lrey la|| |r. or rore
|rlorral|or or roW 3a|es Varagers srou|d locus lre|r sa|es reps' l|re ard lre relurr lrey car expecl
NoW cors|der your |rduslry. To ersure your sa|es reps are prepared lor lre rexl prase, corducl|rg a 642pet|t4r Ana|ys|s |s esserl|a|. Trey
srou|d oe read|rg per|od|ca|s, lrade puo||cal|ors, ard sludy|rg reporls. 0o your sa|es reps |roW Wral lre|r rar|el srare |s? As sa|es
raragers, |ls cruc|a| lral We locus our lears or la||rg lre l|re lo ara|yze lre|r corpel|l|or. wral are lre slrerglrs ard Wea|resses ol lre
corpel|lors ard roW do lrose corpare lo yours?
0rce you rave lre arsWers lo lrese quesl|ors, lre sa|es rarager srou|d Wor| W|lr lre sa|es rep lo sel goa|s lor Wr|cr cuslorers lrey W|||
allac| lr|s rorlr. As We d|scussed, you r|grl rave your sa|es reps segrerl lre|r cuslorers oy produc|rg, ror-produc|rg oul rave lre ao|||ly
lo do so, ard urs|gred cuslorers. 8y ||sl|rg lrese cuslorers oul ard delerr|r|rg Wrer lo ca|| or lrer a road rap |s crealed lral lre sa|es
reps car lo||oW ard lral lre sa|es raragers car coacr lo. wrere does eacr cuslorer la|| or lre Re|at|4ns|p 6:rve? KroW|rg lr|s W||| re|p
lo delerr|re roW oller lre sa|es rep srou|d v|s|l ard Wral approacr lrey srou|d la|e lror a re|al|orsr|p perspecl|ve.
Planning to Execute tbe Sale
NoW lral you ard your sa|es reps rave delerr|red Wro lo ca|| or, |l's l|re lo prepare lor lre sa|es ca||. Preparal|or rears lo sel qua||lal|ve
oojecl|ves, quarl|lal|ve goa|s, ard lo pr|or|l|ze oojecl|ves, goa|s, ard las|s. As a sa|es rarger, you rusl ersure your sa|es rep prepares lor lre
sa|es ca|| ard |s c|ear or lre|r oojecl|ve. loW W||| lrey use lre dala lrey rave galrered or lre |rduslry, corpel|l|or, ard or lre cuslorer |r
lre ca||? To ra|e sure lre goa| |s c|ear, ercourag|rg lre sa|es rep lo Wr|le ar oojecl|ve or lWo lor lre ca|| W||| re|p lrer rereroer lre|r locus.
You srou|d a|so slress |r lre oojecl|ve lral lre sa|es rep srou|d a|Ways lry lo gel a W|r-W|r; oolr parl|es srou|d gel sorelr|rg oul ol lre
|rleracl|ors. Aller Wr|l|rg lre oojecl|ves lor lre ca||, lre sa|es rep srou|d Wr|le doWr lre process or la|||rg po|rls lral W||| re|p lo reel lre
oojecl|ve. Tr|r| aooul lre oojecl|ors lrey are |||e|y lo rear ard re|p lrer prepare lo overcore lrese pr|or lo lrer oe|rg ra|sed oy lre
cuslorer. wrer We overcore oojecl|ors pr|or lo lre cuslorer or|rg|rg lrer up, our sa|es reps rave lre upper-rard ard |rl|uerc|rg oecores
eas|er. 0o you lr|r| you are lrrougr prepar|rg? Nol jusl yel. You rave Wr|ller doWr oojecl|ves lor lre ca|| ard oul ||red your process or
la|||rg po|rls. Nexl Wr|le doWr lre oerel|l or reasurao|e oulcore lror lre ca||. wry do lr|s you as|? 8ecause, as a sa|es rarager you
reed lo oe ao|e lo eva|uale lre ca|| aller |ls corp|ele ard lo gu|de lre sa|es rep lrrougr Wral Werl We|| or Wral cou|d rave gore oeller.
|ra||y, lre parl ol sa|es We a|| |||e; lre execul|or ol lre sa|es slralegy p|ar or ra||rg lre sa|es ca||. Aller a|| lre p|arr|rg ard preparal|or your
sa|es rep srou|d lee| very good aooul lre ca||. Tre cr|l|ca| palr lo execul|or |s urderslard|rg lre re|at|4ns|p w|t te c:st42er ard lo use
|l Wrer ra||rg lre ca||. A|so as We've d|scussed, lre sa|es rep srou|d |everage lre|r slrerglrs sucr as |rduslry |roW|edge ard cap|la||ze or
opporlur|l|es oy prov|d|rg so|ul|ors. |ra||y, |everage lre re|at|4ns|p lo ou||d corsersus ard ga|r corr|lrerl.
Post-Sale Analysis Planning
Jusl Wrer you lrougrl you Were lrrougr We gel lo lre |asl porl|or ol lre process or sa|es slralegy; lre eva|ual|or. 0o your sa|es reps la|e
l|re lo eva|uale lre|r sa|es ca||s? 0o you, as lre sa|es rarager, sperd l|re W|lr lrer do|rg lre sare? Vosl sa|es reps W||| po|rl lo lre erd
resu|l ol, sa|e or ro sa|e, as a|| lre ara|ys|s lral |s recessary. Tral |s cerla|r|y slep ore, oul lrere a leW rore lr|rgs lo cors|der oelore We ca||
|l dore. 8y la||rg lre l|re lo docurerl Wral Werl We|| ard a|so Wral d|dr'l, oolr lre sa|es rarager ard lre sa|es rep W||| rave sore corcrele
|earr|rg's ard oesl pracl|ces lor rexl l|re. Tr|s ray lee| |||e over||||, oul roW oller rave you seer your sa|es reps slep |r lre sare ro|e W|lr a
cuslorer l|re ard aga|r? 3|rce rosl sa|es reps rave lar loo rary cuslorers lo ca|| or, |l |s d|ll|cu|l lo rereroer a|| ol our |rleracl|ors ard
Wral Wor|ed. Tr|s |s Wry 3a|es Varagers rusl ercourage |eep|rg dela||ed Posl-3a|e Ara|ys|s roles. Tr|s W||| ersure lral lrey a|Ways rave a
r|slory ol lre|r |rleracl|ors al lre|r l|rgerl|ps.
|ra||y, We'|| a|so Warl lo reara|yze lre segrerl eacr cuslorer la||s |r. 0|d lrey rove cuslorers lror ror-produc|rg lo produc|rg? Are ary
cuslorers produc|rg rore? ll lre arsWer |s yes or ro, Wry? lav|rg lrese arsWers W||| a||oW lre sa|es rep lo |rcorporale lre|r |earr|rg's |rlo
lre|r sa|es slralegy p|ar ard prepare lor lre rexl day, Wee|, or rorlr |r your Pre-3a|e Acl|v|l|es.
Tactics
$ales managers tend to be very challenged in the area of tactics. There are two varieties of sales managers:
1. Those who were great salespeople - they have the ability to recognize scenarios where
they have been there and done that, but their success in those scenarios often had more
to do with them than their tactics. There is a huge difference between saying, "This is
what would do", as opposed to saying, "Here are the (time-tested, transferable) tactics
to use in this situation. Let's role play."
2. Those who were not great salespeople - They have difficulty:
O recognizing the scenarios where tactics will make a difference;
O identifying the right tactics to use;
O role-playing to effectively demonstrate their use;
O teaching as they go;
O identifying lessons;
O creating plans of action.
Tactics are the primary knowledge and experience components of sales coaching and without a wealth of simple,
effective, current and transferable sales tactics, a sales manager's ability to coach is neutralized. Although this sales
manager can mentor and strategize, those roles are more appropriate for a VP of $ales.

$o how does a $ales anager who is challenged on Tactics develop these important skills?
One option is to enroll in some comprehensive sales and sales management training where the emphasis will be on
sales tactics and sales coaching.
y guest on yesterday's edition of eet the $ales Experts was $teve Taback. $teve has another option. He is the
publisher of the Email TACTC$ Program, a tool that reinforces effective sales and people skills for successful sales
and sales management.
A third option is to hire a sales coach, like $teve, who is well-versed in both sales tactics and sales management
coaching.
$teve has 4 suggestions for becoming more effective:
1. Develop an ownership mentality as it relates to taking the time to build a business
2. Be a student of what you're doing - in this case, be a student of tactics
3. Resiliency - fail and bounce back without quitting
4. Take Responsibility - for both the good and the bad outcomes